“Making Money Happens During the Purchase, Not at the Sale.”

“Making Money Happens During the Purchase, Not at the Sale.” June 3, 2022Leave a comment

“Making Money Happens During the Purchase, Not at the Sale.”

I’ll tell you what this means and what it has to do with intellectual property in a second.


But first….


Let me tell you a story.


After engineering school and interning at NASA, 


I took some time off, studied abroad and worked in the nonprofit sector for a few years.


After realizing the non-profit education sector wasn’t for me…


I spent a couple of years working with a community development nonprofit as a project manager.


I was a team member on a complex commercial real estate acquisition/rehab/tax credit deal.


This was an amazing new experience full of the intrigue of city, county and state politics…


Meeting and networking with all types of professionals and investors from all types of businesses…


It also involved selling and working to secure financing for our seven-figure deal.


At this point, I was new to most of this and wasn’t involved in all the big negotiations, wheeling and dealing.  I was a team member and executed the strategy I was responsible for implementing.  I also oversaw the tasks, responsibilities, and management of those other employees under my purview.


I had no idea that at this moment, I would learn something that would be so profound and hold true almost universally in my business and professional life more than fifteen years later.


In one of the many quick lessons to get me up to speed on the business, after a key meeting where the negotiations focused on a key point of contention on our side, my boss and RE mentor told me plainly


“Tariq, you have to understand, making money happens during the purchase, not at the sale.”


He said a lot more that I didn’t completely grasp at the time, but this I jotted down and was forever embedded in my brain.


As I know now, what he was trying to tell me was that…

for a buyer, the potential profits, the future equity, or windfall of money in an exit is established at the time of purchase.


You only buy the house once (I know you can refinance, but follow me here)


Your profit or loss is determined based on the purchase price and sale price.


All profits are measured against this acquisition cost. 


As an IP strategist, Patent Insider, and fractional IP manager…


This means that most of your intellectual property value is created at the outset and in the early stages of your company.


It starts at the beginning.


Just like how choosing to 

create an S-Corp


incorporate in Delaware

set up a SAFE


All impact how you can raise money, exit or sell your company…


Your intellectual property asset value starts from day one.


⁉️How are you thinking about your intellectual property?


⁉️Are you starting with the end in mind?


For a complementary strategy on how to get started, dm me or comment below




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