Smart Start - Creating an IP Business

Provides a general overview of IP issues for those starting a standard goods and/or services business.

Provides information for those who have developed a new idea and need to make a decision about whether to start a business with that idea, or to sell, license or franchise the idea.

Provides IP information for those purchasing an existing business or looking to buy into a franchise.

10 Steps to Making Money from Smart Ideas guides you through the process of turning your new idea into profit!

IP, business and legal terms explained.

Points you in the right direction for further help and advice for your business.

Browse through the real-life case studies of small business owners dealing with their IP issues.

Useful tools to help you gather and use information regarding IP

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> Home > Case Studies > As Safe as Houses > On the Cutting Edge > Icing on the Cake

> Sunny Side Up > Staying Ahead of the Pack

Creating an IP Business

Lynn Scott and her husband Ron own the franchise Creative Wardrobes.

Lynn admits that at the beginning they weren't really IP savvy. But this changed as their franchise system developed.

"Certainly we knew enough to register business names and trade marks" she recalled.

"We have policies in place to keep distinct areas of the business confidential, to ensure that we don't make it easy for our competitors to copy our products and the way we do business”

Lynn is aware of local businesses that have been forced to change their name or even go out of business as a result of action taken by overseas companies if domain names or a business was too similar.

“If it happened to us I’d be angry that we didn’t protect ourselves against multinationals and took a name that was internationally branded,” she said.

“Years back we bought an existing franchise. It was a master licence from the USA , which meant we could operate and sell franchises in Australia . Support, systems and advice were nonexistent

and we had to learn and research business issues such as how to hire people and how to effectively market ourselves,” Lynn said.

The Scotts grew their business to the stage where they were selling franchises to others.

“If you are looking to buy a franchise it is essential to have a solicitor experienced in franchising to help you, and always join the Australian Franchise Association,” Lynn said. “You can avoid horrific pitfalls by learning from others,” she added.

Lynn has a word of warning to prospective franchisees. “The old business adage ‘buyer beware’ is sound advice for the uninitiated. Due diligence or having the books inspected by your accountant is a step all franchise systems should recommend. It is not good enough to accept the word of the franchisor on what sales are possible and what profits are. If you are interested in a franchise but the franchisor does not recommend this, be very cautious about the professionalism of the franchise.”