Many entrepreneurs fear that their great new business ideas will be stolen and then their dream of starting a company is going to be destroyed. But, the problem is that you need to speak about your business idea to possible workers, shareholders, investors to begin your organization. Also you are going to want to make the most of the company mentors and business experts and show them your product ideas and get their advice for improvements.
However, you’re fearful that somebody will steal your thought that is precious. No worries newcomer entrepreneur, keep reading to find seven methods to protect your enterprise idea and construct your business – without delay and the legal costs of a patent application.
Obtaining a patent to secure your new business idea is excellent but often unobtainable for many entrepreneurs as a result of high expenses, legal regulations in addition to the waiting period for issuance of a patent. Some entrepreneurs with lean startup budgets simply cannot use the legal and expensive applications for trademark registration and patents.
Instead smart bootstrapped entrepreneurs, like you, can use these effective, and inexpensive, tips to secure your intellectual property and get your new product launched.
- Get to Know the Person First– Before you meet with prospective investors or manufacturers take the time to study them online. Enter the owner’s names and see about their business dealings and their personalities. Learn if they’re trusted and have practiced business ethically. Start online and look at what you find. You’ll be able to find a sense of the sort of person that you’re addressing, and if you would like to work together or not, by studying their profiles, forum opinions and news articles.
- Get Competitors in Your Team – Believe it or not, your opponents might be your very best partner in securing your company trade secrets if you make them a part of your success team. Hire them as distributors or vendors so that they have a vested interest in maintaining your idea protection since they will also profit from your success.Existing companies will be the people most likely to steal your idea. They can take it to market quickly with their resources and contacts.
- Know that an Idea isn’t a Company – While a great idea can be the beginning of a great company, it isn’t yet a real or profitable firm. Not all businesses that were excellent were created of ideas that were new or different. Starbucks didn’t invent the concept of the local coffee shop. They improved an already established concept. Your business idea is the grain of sand that when the oyster works hard, over time become a pearl. Nobody wants to steal grains of sand.
- Not Everyone wishes to be An Entrepreneur – New entrepreneurs erroneously feel that since they’re excited about starting a company that everyone they tell will also want to launch a company. However, the majority of the type of people they will need to disclose their ideas to just aren’t. Employees, venture capitalists, and bankers aren’t inclined to change professions and become business owners. They are just not interested in entrepreneurship.
- Investors Are The Safest Bet – All VC, investors and Venture Capital firms are the safest location to talk about your thoughts because their excellent industry reputation and standing is at stake. So that they did not even contemplate the treachery of stealing your business ideas. If they stole inventors inventions they’d be out of business in a heartbeat. But, remember that if you speak about your idea, someone may have told them of a similar idea last month.
- Do not Tell Them Everything – If you talk about your product ideas do not show every detail and production procedure. Keep some important facts to yourself. At the beginning phases of interviewing and investment pitches, job candidates full disclosure is not necessary nor advisable. As you move forward to hiring or accepting investor, then you can use legal documents, such as NDA or Non-disclosures to protect your trade secrets and business ideas fully.
- Utilize Non-Disclosure Agreements Flexible – The type of legal document utilized in such instances to keep secrecy is known as an NDA or Non-Disclosure Agreement. It’s a contract between you the owner of the intellectual property, the business idea or invention, and the individual whom you’re telling. They agree to not disclose or inform anyone about your idea or invention by signing this agreement. Be warned that most venture capitalists will refuse to sign an NDA. A future business partnership can be ruined by you, the entrepreneur, being paranoid. The very best way is to add a copy of the arrangement in our business plan which you distribute at pitch investor presentations and meetings.
About the Author
Marsha Kelly sold her first business for more than a million dollars. She has shared hard-won experiences as a successful serial entrepreneur on her Best4Businesses blog. Marsha also regularly posts business tips, ideas, and suggestions as well as product reviews for business readers. As a serial entrepreneur who has done “time” in corporate America, Marsha has learned what products and services really work well in business today.