You have a brilliant idea that you think if executed can make a profitable business enterprise. Unfortunately, you have no capital to turn your dream into reality. Who do you turn to? A potential investor, partner or even enter a business plan competition. Can you trust them with your idea? Seasoned entrepreneurs will tell you that holding onto your idea is not the solution.
Sharing your idea with the right people or in the right environment gives you exposure and a platform to meet and interact with other entrepreneurs, business leaders and potential customers. It is also an opportunity that helps you streamline your ideas with real market needs on the ground. Here a few tips to protect your business plan.
Don’t Tell All
When talking to potential investors, one of the best ways to reduce the risk of your idea being duplicated and implemented by another company is to limit the amount of information you disclose, especially during the early stages of discussions. For instance, instead of sending an entire business plan to an investor you can send a detailed executive summary. Later, as discussions progress, you can reveal more information.
When talking to potential investors, one of the best ways to reduce the risk of your idea being duplicated and implemented by another company is to limit the amount of information you disclose, especially during the early stages of discussions. For instance, instead of sending an entire business plan to an investor you can send a detailed executive summary. Later, as discussions progress, you can reveal more information.
Include a Confidentiality Notice
You should include a disclaimer in your business plan to avoid wrongful distribution or use. The financier you are presenting the business plan to should sign the disclaimer.
You should include a disclaimer in your business plan to avoid wrongful distribution or use. The financier you are presenting the business plan to should sign the disclaimer.
For instance, you can write the following:
The content of this business plan is confidential. The information herein has been prepared for review by XYZ Bank and should not be shared without written permission.
XYZ Bank
____________ (signature)
Date
____________ (signature)
Date
Seek Legal Advice
Have a great idea that you think can be of use to a big company and at the same time generate money for yourself? Before you pitch talk to a lawyer. A big company probably has the finances needed to execute the plan, hence it is important to get legal advice and find out how safe your idea is once you disclose it to another party.
Have a great idea that you think can be of use to a big company and at the same time generate money for yourself? Before you pitch talk to a lawyer. A big company probably has the finances needed to execute the plan, hence it is important to get legal advice and find out how safe your idea is once you disclose it to another party.
Understand Intellectual Property Rights
Intellectual property rights simply means that if you come up with an idea, you have the exclusive right to implement the idea for a period of time. For instance, if you have a technology business and come up with a new innovation it is important to patent or copyright your innovation, so as to have exclusive rights to exploit the commercial benefits of the innovation.
Intellectual property rights simply means that if you come up with an idea, you have the exclusive right to implement the idea for a period of time. For instance, if you have a technology business and come up with a new innovation it is important to patent or copyright your innovation, so as to have exclusive rights to exploit the commercial benefits of the innovation.
0 comments:
Post a Comment