How may I protect a business idea?

Question

Before establishing a company, it is common sense to write a business plan that details the product/services offered together with the business concept to be implemented. Can ideas and concepts (as described in the business plan) critical to the survival of the would-be company be protected? I'm an aspiring entrepreneur and I would be most grateful if someone with an entrepreneurial background could advise on this matter.

Answer 1

Products are generally protected through patent, intellectual property by copyright, but protecting the way you operate is nebulous. I assume you are concerned about revealing your ideas to possible investors or even banks and wondering what's to stop someone with more resources from coopting your ideas as their own .....

I personally know of a situation where that happened to someone I know. He approached a group to show them how he could help them make money by handling their products in a certain way. They said "Thanks", and proceeded to do it without him.

Otherwise, you are taking some risks anytime you expose your ideas to others. This is one of the reasons we make such a big deal about our own general non-disclosure policies. We get referals from our local SBDC offices and this is a common question.

Does this help?

Answer 2

Here is a video explaining whether you should protect business ideas, when, and how:

http://youtu.be/3LQtO7q8xug

And taking it one step further, here is how to protect your employees from stealing ideas or clients with a non compete agreement.

http://youtu.be/ljIAdWeoOqA