Intangible assets are not physical assets (like equipment) or financial assets (like a certificate of deposit). Intangible assets can include patents, trademarks, copyrights, trade secrets, proprietary processes and good will. Frequently, a company’s financial statements will not include the true market value of its intangible assets.

To learn more about how intangible assets affect business value, read Chapter 7 of Start on Purpose: Everything you Need to Know and Do to Startup with Strength.