Business plans set forth an outline of a new business venture. Business plans often help a new business obtain financing. The problem with presenting business plans around town to banks and private investors is the disclosure of intellectual property.
Intellectual property is the property of a business that results from original and creative thought. It is the “big idea” that has the commercial value for the business. Many times the intellectual property outlined in business plans is what gets a funding source interested in financing the venture in the first place.
New businesses often face the challenge of getting banks and investors to sign “non-disclosure agreements.” By signing a non-disclosure agreement, a funding source agrees to keep the intellectual property (or “big idea”) a secret. Many new businesses feel the need to ensure confidentiality when it comes to their intellectual property.
The following ideas may help a business wishing to protect intellectual property in business plans without the use of a non-disclosure agreement.
When dealing with intellectual property, business plans to obtain financing can avoid confidential and/or crucial aspects of the intellectual property. Business plans should always outline the benefits of the intellectual property, as confidential details may not be as important to a funding source as are the benefits to the customers. Business plans should also detail the differences in similar products and services on the market.
Business plans can also avoid giving away aspects of intellectual property by outlining how the customer benefits of the intellectual property fill the wide needs of customers. Detailing the wants and needs of customers in business plans will work to prove how the business and intellectual property can succeed.
Include information on the size of the market where the intellectual property will meet customer needs in business plans. The confidential and crucial aspects of the intellectual property can be withheld while still effectively explaining the market for the product or service.
Business plans can prove the intellectual property will be more profitable than similar competitors will without giving away the idea of the intellectual property. Business plans can outline the negatives of a competitor while detailing the positives of the new business's intellectual property.
To avoid a non-disclosure agreement to protect intellectual property, business plans should outline the accomplishments of the owners and management team. This gives the funding source a good idea of how well the staff of the new business may successfully execute the business plans.
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