How to Protect Your Idea

As a business grows, pitching becomes increasingly important. As the business seeks investors, new clients, or even new employees, a business owner must repeatedly reveal details about the company to others. Idea theft is an ongoing concern for entrepreneurs. A competitor could snatch the idea. An investor could take it and fund it.
Here are some basic steps to protect yourself.

“By living in fear of that theft, you’re actually inhibiting your ability to sell that idea.” 

There are a few steps businesses can take to help prevent theft as they begin to share their ideas with others.

  • Avoid Revealing Too Much: One of the best ways to secure your idea is to only reveal what is absolutely necessary. If you’re pitching an idea to a potential client, give only the details necessary to convey the idea. It’s not necessary to share every detail of how your product works, for instance, when you can get the same information across by revealing the need your product or service fulfills. One exception to this may be when you’re pitching to investors or lenders, who will likely want to know everything about your product before taking a financial risk on it.
  • Use Non-Disclosure Agreements: A non-disclosure agreement can help protect your idea before revealing it to workers or other associates. However, it’s important to note that many investors will balk at signing an NDA before you speak with them. Since the balance of power is in their favor, this may be something you’ll have to give up if you want investors. The same holds true for potential clients.
  • Trademark Your Name. A trademark can provide an additional layer of protection, since a company’s name is often tied closely with its idea. In addition, by establishing a trademark, you also have added protection in the event a legal issue should arise. The documentation required to register a trademark can serve as written proof that your business idea was in the works at a specified time. These dates will be crucial in establishing the exact date your idea was in the works in the event someone else tries to dispute this fact.
  • Research the Recipients. Do your part in researching the recipient of information prior to your appointment. Information is so easily available now, a business owner can determine someone’s reputation before deciding to do business with that person.

If you’re truly concerned about your idea being stolen, by taking a couple of the above-mentioned steps, you can give yourself a little peace of mind. Chances are, your idea is safe. Few people have an interest in stealing other people’s business concepts and putting them into action. Be proud of your invention but share it only with those who can help you in your dream of making your vision a reality.

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