Are you planning on starting a business? Have you figured out how to protect your unique business idea and make sure that it does not get stolen? If the idea gets stolen, you could be facing much worse consequences than just losing out on an opportunity to build your own business. You could be facing fraudulent charges.
In the future, when you do come up with new ideas, there are chances that your investors will have lost faith in you. Would you really want to take such risks?
WHAT BRILLIANT WAYS CAN YOU EMPLOY TO PROTECT YOUR BUSINESS IDEAS AND INVESTMENTS?
If you want your business idea to take shape, you would need to pitch your business idea. As you seek new investors and clients for your business venture, you would need to share the scope and other details of your idea.
Idea theft is a concern that many business owners need to face at the start of their business. You also need to be wary of such competitors. Here are some smart ways of preventing idea theft and protecting the money from investors along with personal investments:
1. Refrain from Revealing Too Much Information: Securing your business idea can be a difficult task if you keep revealing too much information to new investors and clients. When pitching your idea, just pass on information, which will provide an outline of your business venture. Do not go deep and reveal the working intricacies of your business idea. Once, you become sure about investment guarantees, you might reveal some more information to cement strong bonds and investments.
2. Provisional Patent: For any startup, a patent can burn a hole through the finances, even before you start your business. While you pitch your idea to investors, you could apply for a provisional patent, which costs less but expires within the first year, without extension options. A year should provide you enough time to find your footing and bring in investments to get your business started without the tension of idea theft.
3. Trademark Your Name: Having a trademark can add another layer of protection to your business venture. A company’s name is usually related to the products and services that you plan to offer. A trademark will also protect your brand in the instance of a legal issue. Documentation will help provide a timestamp for when your business idea was in the works. The timestamp will provide an exact date for your venture and nullify any fraudulent disputes.
4. Non-Disclosure Agreements: Non-disclosure agreements help shield your idea before it is revealed to workers and other associates. You could also think about confidentiality statements, which can be printed and signed by investors and potential clients.
5. Research about the Recipients: Before you decide to pitch your idea to a potential investor or client, make sure that you have researched about the person and his or her company. Modern time has provided you with various means that make gathering information about your investors, an easy task. Their reputation will help you decide about setting up an appointment.
CAN YOU PROTECT YOUR BUSINESS IDEA AND CREATE A SUCCESSFUL BUSINESS?
The market is quite competitive, so idea theft should not come as a surprise to anyone. Apart from protecting your business idea with patents and documentation, you also need to be fast. You have to plan and execute it as soon as you get investments.
Another important aspect is instinct. If your research sends red flags flying in your mind, then it would be best to research further and then take your decision. Also, have a look at the paper trail of the potential investors and clients. It would be a good idea to keep documentation of all kinds of correspondence between you and the investor or client.
If you are careful and take care to follow the above steps, then your business ideas will stay safe. Once you have started your business venture, you could always look for loans to further enhance your business.
Author Bio: Renier Botha is the owner of Finance 27, one of South Africa’s leading online payday loans companies who offer some of the fairest rates in the market. He has a wealth of experience working in finance and as managing director of a hugely successful nationwide business.
