How can I ask an investor for money without revealing my idea so he can't steal it?

Question

I have a great idea for a website which I think will make lots of money. I need some investment to employ a couple of people as I don't have all the skills necessary to develop it myself. I am worried that if I go and ask someone then they will steal my idea and go develop it themselves as it is a fairly simple plan. Is there anyway to protect my idea or do I just have to bite the bullet, tell them, and hope they won't steal it. Once I have the employees, I am also worried that I will be no longer needed having come up with the idea - how do you think I should protect myself and my position?

Answer 1

You need to have this person sign a confidentiality agreement or an non-disclosure agreement. These are standard business agreements. This person will more than likely be familiar with documents like these and be happy to sign them. There are plenty of generic ones on the net that you can adapt to your needs.
These are legal binding contracts that cover you for anything that is confidential and not already public information. The length and terms of the agreement are what's key. If your investor will not sign this then there is either something fishy or they are under other agreements that will not allow. Either way move on to another investor. This is how it is done. you have to share your idea for people to invest otherwise they will be giving you money on blind faith and that doesn't happen Trust me.
As far as employees you will need to make sure you are following standard HR practices for your state. Most will allow you to legally bind against trade secrets but not working for competitors. You need to establish your business with you as a stakeholder and a role that allows you to have operational duties beyond the idea. Everyone has ideas what you need to keep you in the game is implementing the ideas. whether it's management or development or other crucial areas of the business you need to establish your strength and take that role. If you have set up your business with LLC or incorporation you will be a member with stake (% ownership) in the business. If they want to get rid of you they will have to buy you out.
My suggestion is get a book from nolo press at Borders on opening a small business in your state before you do anything. There are a lot of simple things that can be very time and money saving as well. If you do not have a business advisor (if your asking this forum you don't) then start there.
Good Luck and remember you must share your ideas to make them grow. Be smart and do your homework!

Answer 2

First step is to work out a total business plan for your website. During the planing of it, you will deal with No Disclosure agreements and such things.

No investor is going to just give you coinage with out a business plan to work from.

And another thing, any investor that steals ideas will not last long in the business, because the news that he steals other people ideas will come out and cause people to stop dealing with him.

So, first business plan, then look for investors.

Answer 3

The other posts are correct. You can self finance or you can have any investor sign a Nondisclosure agreement (or Confidentiality agreement) prior to your revealing any information. Consult an attorney for the agreement.

Be aware that many investors will not sign one as these agreements bind their hands.

Or you could just sell your idea.

By the way, the investor could be a 'she.'

Answer 4

Use a confidentiality agreement CA

Show your potential investors your business plan with a CA and just hope they like your ideas.
Google for it.

Answer 5

Have him sign a non-disclosure agreement before you actually present anything. If he steals your ideas, he is in breach of the agreement and you can sue him.

Answer 6

I agree with max b

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Answer 7

credit cards, or take loan on a car or house or ask parents or friends for help