Protecting Your Business 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. While this behavior happens less than you would think, it is worth taking some basic steps to protect yourself.
Businesses can take a few steps 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.