How to protect yourself from potential investors stealing your business?

[MrDoctor]

Hey all,

So I am putting together my first business. Unfortunately I do need a couple of investors the help me start up initially, so I obviously need to explain to them my business to them. However, my business is a great idea. No one in the field does it and it will be a hit :icon_super: . I am going to change an industry.

My question to any fastlaners who have started a business, is how would you get potential investors from stealing your business idea?

A non disclosure agreement? Is that even going to hold up in court if a situation arises?

It's a long shot, since you never know if the person with the money would even want to backdoor you and use your business plan as his/her own. However, from experience, I don't trust too many people.

 

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[Nick]

Most pro investors won't even bother to sign a NDAs unless you have a reputation, as there are too many time-wasters and too many people coming to them with ideas. --> Which should give you a clue of much value is put on an idea in the business world, if some people consider spending 2 minutes of their time to sign a NDA not worth the effort to hear an idea. Also, signing a NDA is a risk for them for litigious reasons, as you never know in what will they invest in the future, or have invested in the past, and do not want a trail of signed NDAs to haunt you forever or being used with malicious intent.

Investors are in the business of investing money, they will not take your business plan and turn into entrepreneurs to execute on your idea.

The truth of the matter is an idea does not guarantee you any sort of protection against competitors, unless you get a patent.

So your best bet is to execute well, since copycats will appear anyway once you launch publicly.

People can't "steal" your idea, cause you do not own an "idea" in the first place. For every idea in the world, no matter how revolutionary it seems, there are probably at least 10 other people having thought off that. Whoever gets to execute it, and execute it well, reaps the rewards.

 

[MrDoctor]

Most pro investors won't even bother to sign a NDAs unless you have a reputation, as there are too many time-wasters and too many people coming to them with ideas. --> Which should give you a clue of much value is put on an idea in the business world, if some people consider spending 2 minutes of their time to sign a NDA not worth the effort to hear an idea. Also, signing a NDA is a risk for them for litigious reasons, as you never know in what will they invest in the future, or have invested in the past, and do not want a trail of signed NDAs to haunt you forever or being used with malicious intent.

Investors are in the business of investing money, they will not take your business plan and turn into entrepreneurs to execute on your idea.

The truth of the matter is an idea does not guarantee you any sort of protection against competitors, unless you get a patent.

So your best bet is to execute well, since copycats will appear anyway once you launch publicly.

People can't "steal" your idea, cause you do not own an "idea" in the first place. For every idea in the world, no matter how revolutionary it seems, there are probably at least 10 other people having thought off that. Whoever gets to execute it, and execute it well, reaps the rewards.

Exactly what I was thinking. Sounds good!

 

[tido]

If you think your idea is valuable, why not cough up $110 to file a provisional patent? You have a year to turn it into reality. See my thread about the new first-to-file rule.

https://www.thefastlaneforum.com/in...first-file-better-little-guys.html#post273420

 

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[DeletedUser2]

alot of professional investors I know, see 10 shitty ideas a week.

they just want 1 decent execution guy.

patent pending is a good way to go if its patentable.
cheap too.

Learn to tell a SHORT compelling story around it. be investment worthy.


the money will find you.


Z

 

[JEdwards]

Forget what Zen says.. The idea should speak for itself.. Just lay it out and ask for money. Tell them they are lucky to meet you at this point.

And I surely would not go in without an NDA signed and make sure their Secretary Signs one also. I once had a sec steal an idea I had on a Pineapple cart set up.. I lost like at least 200 bucks..