The value of your brand
Measuring the value of your brand is a necessary task if you want your company to be noticed not only for its capital but also for the intangible assets related to its products and services.
From the financial point of view, investment in every asset should be represented by a value reflected in the accounts. When we talk about intangible assets we understand that this is a particular challenge for financiers who find it difficult to take them into consideration since they have no fixed value. In fact, they vary from business to business.
Fortunately, specialists and methodologies do exist that give us proven formulas. Some are based on probability and statistics, others on economic criteria. Whichever one chooses I believe that measuring intangible assets is very much a question of personal choice, and one that is always charged with a certain degree of subjectivity.
Brands are clearly an example of these intangible assets; every company has one. In many instances it’s common for the brand to be valued higher than the company’s infrastructure, especially those active in the most commoditized sectors or very similar to their competitors and their offers.
So, once the value has been determined, regarding investment in brands in particular, I recommend reflecting it in the financial dashboard in such a way that it will not be omitted when it’s time to take important business decisions. At key moments, for example, when selling a company, the value of these assets can become very relevant. They may be considered an unknown element if time has not been dedicated to determining their value. Moreover, we mustn’t forget that - as the Income Tax Law mentions - any investment that has to do with the brand (corporate identity projects or market research) carry fiscal benefits for the whole organization.
Without doubt your brand is a reflection of your organization; don’t forget this intangible asset. It’s much better to determine the value that the brand brings to the company and to include it in all business decisions. Remember, too, that investment in productive assets are synonymous with economic benefits and indispensable for achieving better and healthier financial results for your company.