How do i protect an idea ?

[Giulio Taranto]

Hey all,

i have an idea for a mobile retail business. What i wanted to know is say its a huge hit and i decide to set up another and another ect. How do i stop others from copying the idea? Is there even a way to stop them ? Or at the very least make sure you get some % of profits from them? I dont want to jump to far ahead and say i want to create a new franchise, but who knows....

All i know is what i dont want to happen is that i start up this business and the next joe blow grabs the idea and runs with it. How do i protect myself ?


Is it even possible ?

[NeeJam]

You can't protect an idea but you can patent a product.

You can protect your idea if your showing to investors by getting them to sign a non-disclosure agreement.

[CP Mr Ofevaw]

You're pretty much stuck... Like "n-james" said, you can patent a product or even a process - but NOT an idea. On a side note, most (if not all) VC's will NOT sign a non-disclosure agreement. Do some basic research and you'll find out why.

Other than that, just take your idea to the next step. If it's something that requires millions just to startup, then forget about it unless;

1. You're an experienced entrepreneur with a proven track record
2. You have the ability to secure a multi-million dollar loan
3. You know someone with any of the above attributes

[SSM]

There will always be ppl trying to copy a good business...that's what capitalism tries to promote (free enterprise). Otherwise you'd have what we call a "monopoly". If it is a hit, make sure you stay on top of your game, be smart with your early earning, and prepare for competition from day 1.

[Bored]

This is the least of your worries considering your business is only in "idea" stage.

[SSM]

This is the least of your worries considering your business is only in "idea" stage.

Very true.

[Giulio Taranto]

it wont take much to get up and going id say its around 60k start up. If there is no way to protect a good business idea then i guess i have to just get out there and do it.

[EntrePR]

I know it can be very tempting to feel like your world would end if someone "steals" you idea. Unless, however, your business model is patenting a product then selling or licensing the patent, in most cases, having your idea copied is actually beneficial.

I would even go so far as to say that if you were planning a new type of retail offering, it could be highly advantageous to try to get as many people as possible doing the same thing.

Sound strange? Hear me out.

First, when you are starting a truly new type of business, you have to not only convince the client to purchase from you, but also sell them on the idea of the business, which is much more expensive. If a client already accepts the business as valid from hearing about it, then they will be much easier to sell to.

Second, having other people doing the same thing is about the cheapest market validation you can have. That is very important in lowering your perceived risk to potential investors. Also, it lowers your personal risk of failure. Again, increasing your value to investors.

Third, you can learn from the successes and failures of your competitors. I can tell you first hand that I would take learning from someone else's mistakes over learning from my own any day of the week.

Fourth, if you study new product or technology releases, you will realize that first to market is almost never number one in market share five years later. They spend all their capital educating the market place and pave the way for better faster competitors down the road.

And the final, but not last, reason, if other people are doing the same business, then you can get valuable "hot nationwide trend" type press.

Now, of course, there is a window of opportunity in this whole gambit. You don't want to wait very long to get in the game. You want to be the better faster competitor, not Johnny came late. Your instinct to go out there and do it is solid, however, I do recommend having an experienced businessman, whether through this board or SBA, take a look at your business model. It can be easy to overlook seemingly trivial details that can make or break your business.

Happy New Year.