Intellectual capital refers to an intangible value at your company. It includes elements you can’t include on a balance sheet, such as the talents, experience, and knowledge you and your employees bring to the company. Intellectual capital takes into account the human element of a company, but it isn’t just about intelligence and ideas. It may also include a business’s relationships and intellectual property. If you run a small business, you may want to develop your organization’s intellectual capital. For instance, imagine you have a marketing team that’s primary experienced in traditional marketing, and you are planning to hire an additional team member. In this case, you may want to expand the intellectual capital of your company by hiring an expert in social media marketing or someone who brings another dimension to your marketing efforts. Many companies rely on their intellectual capital to drive sales. For example, a marketing company may need to prove its intellectual prowess in that field to entice clients. Similarly, a plumber also relies on special knowledge or intellectual capital to handle jobs. To demonstrate your company’s intellectual capital, you may want to develop a portfolio of past work or a collection of customer reviews. You should also work on making your intellectual capital part of your brand. Every business has some degree of intellectual capital. Although intellectual capital isn’t quantifiable, it’s still important to grow and develop. Look for ways to relay your intellectual capital to clients, prospective investors, and others.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.