how you can protect your business plan

• United Kingdom
• Latin America
• Benefits accounts
• Corporate payments
• Travel payments

Protect your bottom line from payments fraud

A staggering 80% of organizations experienced payments fraud in 2023, according to the Association for Financial Professionals. This is a 15% increase from 2022 and the highest rates of fraud since 2018 . Business security is critical now more than ever.

B2B commerce operates on a different scale than everyday transactions. Million-dollar deals are common, and trust between businesses is essential. However, this trust can be exploited due to fraud, making the need for prevention tools an absolute necessity. While streamlining transactions is important to simplifying business, the need for extra security measures in B2B transactions remains important.

A layered approach to fraud prevention

A variety of fraud prevention tools should be used to make up a comprehensive security strategy. Creating a multi-layer transaction process can help fortify payment security, protecting both business and customer information. Here are some measures to strengthen your fraud prevention efforts:

Multi-factor authentication for additional verification 

Add an extra layer of security by requiring additional verification steps beyond just the card information. This requires users to verify their identity through multiple methods, such as a password and a unique code sent to their mobile device.

Transaction monitoring for faster fraud detection

Be vigilant about transactions with high order values or those coming from unfamiliar locations. With WEX, you can analyze transaction patterns, quickly identify anomalies, and flag any suspicious activities, providing real-time insights with greater security.

Use virtual cards for greater control and transparency

WEX virtual cards, including single-use and lodge cards , offer advanced security by limiting usage to specific vendors and amounts. This reduces the risk of fraud and unauthorized transactions by providing highly customizable spending controls. 

Virtual cards can be limited to specific vendors, amounts, and transaction types, reducing the risk of payments fraud and unauthorized transactions. They are particularly effective for one-time transactions, as they expire after use, minimizing the chance of misuse.

Enforce a strong password policy

Include strong password requirements for customer accounts and require regular updates. Educating customers about the importance of unique and complex passwords can further enhance security. 

A 2024 Forbes report found that 46% of surveyed Americans admitted to having their passwords stolen this past year. The study further revealed that many people reuse passwords across accounts or use weak passwords.

To help support and protect against hackers, enforce strong password policies. Through this, businesses can reduce the risk of unauthorized access and protect sensitive information.

Accounts payable (AP) automation

Your AP department is the anchor of your business’ finances. WEX’s AP automation solutions enhance security by minimizing manual processes, which are prone to errors and fraud. With automated reconciliation, custom spend limits, and real-time transaction monitoring, you can build a defense against fraudulent activities. 

By integrating these automated solutions, businesses can reduce the risk of internal and external fraud, improve operational efficiency, and maintain better oversight of their financial transactions.

Address verification

Address verification is typically used to prevent card-not-present (CNP) fraud in transactions conducted online, over the phone, or wherever the physical card is not handed to the merchant. This real-time check helps identify discrepancies that could signal fraudulent activity.

When a customer makes a purchase, they provide their billing address along with their credit card information. The address verification system compares the provided address to the one on file with the card issuer. If the addresses match, the transaction proceeds. If there is a discrepancy, the transaction is flagged for further review. This simple yet effective process helps businesses catch fraud in action.

WEX is here to help you build and maintain customer loyalty

A smooth and efficient transaction process is important for building and maintaining trust with your customers. By employing effective fraud prevention tools, you can minimize disruptions and enhance the overall experience, which strengthens your relationship with customers. 

Without adequate fraud prevention measures, the increased risk of fraudulent activities can lead to frequent interruptions and dissatisfaction, potentially damaging your business reputation and financial performance.

Don’t let payments fraud impact your business’ bottom line

Payments fraud has serious consequences for businesses. Financial losses from fraudulent transactions can be substantial, often leading to chargebacks and additional fees. Beyond the immediate financial impact, there’s a loss of trust. 

When a business falls victim to fraud, its reputation can suffer, making customers weary of future transactions. This erosion of trust can have long-term effects on customer relationships and overall business success. 

A secure approach that layers multiple security measures can effectively protect B2B transactions and ensure relationships remain intact. A secure fraud prevention strategy is not simply a recommendation; it’s a necessity.  

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• Current trends in finance
• Accounts payables: Terms you need to know

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

Stay up to date on the latest in business payments by subscribing to our blog! Simply hit the “Subscribe” button above or submit your email address in the form below.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

Sources: Association for Financial Professionals Investopedia Federal Bureau of Investigation (FBI) Forbes

Related posts

How to create an anti-fraud culture within your business

Can you manage peak credit demand? Here’s what you can do.

The basics of ACH and how you could benefit

Why you need to use virtual cards to cut down your businesses costs

New to virtual cards? Here are 5 best practices to help you get started

Tips to secure credit (and ensuring it’s the right credit)

Stay connected.

Subscribe to our corporate payments blog to stay on top of payment innovations. 

" * " indicates required fields

Learn how to increase value from every business value with WEX

Subscribe to our corporate payments blog.

Google Privacy Policy and Terms of Service .

Forward Contracts Explained

Michelle Ang

Content Marketing Manager

Based in Sydney, Michelle has a decade of experience in writing, content planning, and online publishing for the B2C and B2B market.

By being proactive and staying informed, you could turn currency fluctuations into opportunities for growth. Here’s how Forward Contracts could help protect your money from market volatility.

What is a Forward Contract?

Simply put, a Forward Contract is a buy now, pay later option for individuals or businesses trying to take advantage of a beneficial rate today on a future payment. Forward Contracts can be a valuable currency hedging tool for individuals or businesses dealing with foreign exchange (FX).

What is a Forward Contract for currency hedging?

A Forward Contract lets you lock in an exchange rate for up to 12 months to protect against market moves. Forward Contracts are primarily used to hedge the risk of exchange rate movements . This can help you or your business avoid the risks and uncertainties associated with adverse currency movements.

It is always worth noting that locking in an exchange rate now for a future transfer could mean losing out if the market rate improves.

Hedge: In the context of foreign exchange risk, a hedge is a strategy used to mitigate potential losses due to currency fluctuations.

When is a Forward Contract useful?

Forward Contracts are often used by importers, exporters or business owners looking for a higher level of certainty in their future cash flow. Forward Contracts can also be used if your business needs to lock in an exchange rate in advance when buying supplies for the next busy season.

A Forward Contract may be useful in the following scenarios:

• Importing and exporting goods where the invoice is in a foreign currency
• Investing in foreign currencies
• Buying or selling property overseas
• Receiving pension payments from an overseas jurisdiction
• Sending or receiving funds to or from a family member or
• Repatriating salary or interest payments received overseas

Fix your rate to protect against market moves with a Forward Contract today. Learn more here .

Forward Contract Pros and Cons

A Forward Contract could be a helpful tool that saves your business money. When exchange rates are beneficial, you can lock in a rate to hedge against uncertainty in the future. This means avoiding the risks associated with adverse exchange rate movements that could impact your business’s bottom line.

You could also use Forward Contracts to fix all your known foreign exchange costs for the year ahead or use it to fix a portion of your FX costs as a way to partially hedge against exchange rate volatility . 

For example, to avoid missing out on further beneficial rate movements, some businesses may use a Forward Contract for a smaller portion of their total payment (say 50%).

Volatility: Exchange rate volatility refers to the tendency for foreign currency to increase or decrease in value, which  ultimately affects the profitability of an international transfer.

Here are some helpful things to consider when evaluating whether a Forward Contract is right for you or your business:

Please note all Forward Contracts need to be settled before the Maturity Date. The Maturity Date is the date the Forward Contract expires. Therefore the funds must be sent by this date.

Need to make a money transfer now? Move money quickly at competitive rates with our Spot Transfers. Send money now

How your business could benefit from a Forward Contract

Download our Forward Contracts fact sheet to learn how it can help you save more.

Let’s say you run a company based in the US that imports materials from the UK to produce your goods. You have a fixed monthly invoice of £50,000 to pay in USD. This exposes your business to FX risk .

If you pay the invoice in pounds when the GBP is strong , that £50,000 invoice could cost you more than paying it at a time when the GBP is weak.

By using a Forward Contract*, your business locks in an exchange rate that can help ensure predictable costs for your imports over a prolonged period. This could help your business forecast expenses and avoid potential financial setbacks caused by negative currency movements.

Take Marina Beck, a small business owner who runs Wine Alliance in Canada. When she first began working with OFX, Beck was only using spot transfers as a quick, easy, and affordable way to transfer money to vendors or pay bills. 

Later on, Beck’s OFXpert Jeff identified an opportunity to help her save more and protect her bottom line from the volatility of foreign grape prices due to harvest fluctuations through the use of Forward Contracts.

When I learned about Forward Contracts it was such an interesting shift in thinking …They are useful for me because of purchasing seasons for wine and when those bills need to be paid.” – Marina Beck, Proprietor of Wine Alliance

Using Forward Contracts to save more

See how Canadian-based business Wine Alliance found success in the volatile grape industry with OFX Forward Contracts.

Using Forward Contract for an overseas property purchase

A Forward Contract doesn’t just help businesses, it could also be advantageous for personal use.

For example, if you’re living in the United States and bought an investment property in Canada, paying your settlement fee in CAD means you’re exposed to rate fluctuations between the US dollar and the Canadian dollar.

By using a Forward Contract, you can protect yourself from adverse movements in exchange rates and take advantage of a great rate between the date of sale and the settlement date.

So no matter how the rate changes in that period, you know exactly how much you’ll need to convert to cover your settlement payment. 

When Stan, an expat living in Sydney sold his house, he needed to get the funds back to Singapore. There was a 12-week settlement period, he decided to lock in a Forward Contract with OFX, which worked to his advantage.

I locked in a Forward Contract with OFX and it was very seamless … Because of the Forward Contract, it did better than the market rate when we did get our settlement funds, and the transfer back to Singapore was very easily done.” – Stan, an OFX client who invested in a Sydney property

A better way to manage your forex risk

OFX’s Forward Contracts can help you or your business manage currency risk. All you need is an OFX personal or business account to lock in a great rate.

How a Forward Contract works

Decide the amount and the future transfer date (up to 12 months)

Get a quote at the current exchange rate and lock it in

Make the payment at the guaranteed rate on the scheduled date

Booking a Forward Contract

If you want to make a plan for future currency exchange, or ask a question, our OFXperts are here to help, 24/7 .

At OFX, we require Forward Contracts to be booked over the phone with an OFXpert to ensure you understand the risks involved. Once booked, Forward Contracts can’t be terminated.

Advance Payments in a Forward Contract

An Advance Payment or deposit is required when booking a Forward Contract. This is a fixed percentage of the value of the transaction. This is normally 5% for a corporate account and 10% for a personal account. However, this amount may differ depending on the duration and assessment of the Forward Contract. 

If the exchange rate moves adversely during the life of your Forward Contract you may be asked to pay a further deposit, also known as a “ margin call ”.

Margin call: A margin call is when OFX’s equity in a margin account falls below the financial institution or the bank’s required amount. Margin calls are requests for more funds to be added to a margin account in order to meet the margin requirements due to adverse currency movements.

Help protect yourself from foreign exchange risk with Forward Contracts

Managing foreign exchange risk is crucial for individuals and businesses with large international transactions. By understanding how Forward Contracts work and what the advantages and disadvantages are, you can make informed decisions to better manage your cash flow. 

Teaming up with a reliable partner like OFX gives you or your business peace of mind. On top of great exchange rates and effective risk management tools , our OFXperts are here for you 24/7 , to help provide support so you can achieve confidence and success in your global business transactions.

Explore a risk management strategy with OFX

Our OFXperts can help you find the right currency risk management strategy for your business.

IMPORTANT:  The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. OzForex Limited (trading as OFX) and its affiliated entities make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

Other articles that may interest you

Currency Outlook July

6 factors influencing exchange rates and what you can do about it

Types of hedging strategies: A comprehensive guide

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

When Cyberattacks Are Inevitable, Focus on Cyber Resilience

• Keri Pearlson

Preparing for an attack that breaches your defenses is the best way to minimize the damage it can do.

Cybersecurity experts and the companies that employ need to let go of their prevention mindset and adopt one focused on resilience. A prevention mindset means doing all you can to keep the bad guys out. A resilience mindset adds a layer: while you do all you can to prevent an attack, you also work with the expectation that they still might break through your defenses and invest heavily preparing to respond and recover when the worst happens. Companies that have successfully built resilience have done a few things differently: built a culture of cybersecurity, prepared and practiced their responses to cyber attacks, embraced “secure by design” principles, and put in place communication processes so they can respond no matter what happens.

There’s a common — but serious — mistake cybersecurity experts make: they focus all their resources on keeping malicious actors out of our system. It’s an understandable misstep. Protecting ourselves from potential cyber breaches is a critical part of the job. Even so, it’s impossible to be completely protected from every vulnerability. That’s because the good guys must protect against every possible vulnerability, while the bad guys only need one small crack in a company’s armor to get in.

• KP Keri Pearlson is the executive director of the research consortium Cybersecurity at MIT Sloan (CAMS). Her research investigates organizational, strategic, management, and leadership issues in cybersecurity.  Her current focus is on the board’s role in cybersecurity.

Partner Center

How can I pay for nursing home care?

Medicare generally doesn't cover  long-term care in a nursing home. Even if Medicare doesn’t cover your nursing home care, you’ll still need Medicare to cover your hospital care, doctor’s services, drugs and medical supplies while you’re in a nursing home.

You can switch Medicare drug plans at any time while you’re living in a nursing home. If you aren't able to join a drug plan on your own, your authorized representative can enroll you in a plan that meets your needs. Fill out and mail us an authorization form or log into your Medicare account to give us permission to talk to a person you trust (like a spouse, family member, or caregiver).

Most people who enter nursing homes start by paying for their care out-of-pocket.

Other ways to pay for nursing home care:

Medicaid is a joint federal and state program that helps pay health care costs if you have limited income and (in some cases) resources and meet other requirements. Some people qualify for both Medicare and Medicaid. Most, but not all, nursing homes accept Medicaid payment. Even if you pay out-of-pocket or with long-term care insurance, you may eventually "spend down" your assets while you’re at the nursing home, so it’s good to know if the nursing home you chose will accept Medicaid.

Medicaid programs vary from state to state. Most often, eligibility is based on your income and personal resources. Many states have higher Medicaid income limits for nursing home residents. You may be eligible for Medicaid coverage in a nursing home even if you haven’t qualified for other Medicaid services in the past.

If you have both Medicare and full Medicaid coverage, and you don’t choose a Medicare Advantage Plan with drug coverage or a Medicare Drug Plan on your own, Medicare will automatically enroll you in one. If you live in a nursing home and have full Medicaid coverage, you pay nothing for your covered drugs after Medicaid has paid for your stay for at least one full calendar month.  

To get more information on Medicaid eligibility in your state, contact your state Medicaid office .

Long-term care insurance

This type of insurance policy can help pay for many types of long-term care, including both skilled and non-skilled care. Long-term care insurance can vary widely. Some policies may only cover nursing home care, while others may cover a range of services, like adult day care, assisted living, medical equipment, and informal home care.

If you have long-term care insurance, check your policy, or call the insurance company to find out if the care you need is covered. If you're shopping for long-term care insurance, find out which types of long-term care services and facilities the different policies cover. Also, check to see if your coverage could be limited because of a  pre-existing condition . Make sure you buy from a company that's licensed in your state.

Federal employees, members of the uniformed services, retirees, their spouses, and other qualified relatives may be able to buy long-term care insurance at discounted group rates.  Get more information about long-term care insurance for federal employees.

Life insurance

Some insurance companies will let you use your life insurance policy to pay for long-term care. Contact your insurance provider for more information about your options.   

You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

3 Reasons to Seriously Consider Using a Living Trust to Pass an Inheritance to Your Family

• A living trust allows you to keep your control over your assets while you're alive.
• It allows your family to avoid probate, and could help you protect their privacy.
• Consult an estate planning attorney to see if a living trust is worth it for you.
• Motley Fool Issues Rare “All In” Buy Alert

A living trust might seem like something you don't need, but it could benefit you and your heirs in a number of surprising ways.

This article is intended for educational purposes only and is not legal advice. For guidance on your personal situation, please contact a lawyer.

If you have a family, you may be inclined to take certain steps to protect them financially. One of those might be buying life insurance. Another might involve coming up with a plan to pass your assets on to your heirs as smoothly as possible.

To that end, you may want to consider using a living trust instead of simply writing a will. Here are a few reasons why a living trust might be a great solution for you.

Image source: Getty Images.

1. You want to maintain control of your assets while you're still alive

Moving assets into a living trust allows you to pass them on to your loved ones seamlessly. The trust becomes the owner of the assets you place in it, but you as the grantor have control of it, so you're also allowed to change your mind along the way about how those assets are managed, and who the beneficiaries should be, among other things. The beauty of a living trust is that you maintain control of your assets and the trust itself while you're still alive, so you're not locked into the decisions you make at any specific point in time.

2. You want to spare your loved ones from going through probate

When you use a will to pass along your assets, your heirs are put through a notoriously painful process called probate, which is a court system's way of proving that will's validity. That could result in it taking longer for your heirs to inherit the assets you're passing on. It could also be a stressful thing for them to deal with at a time when they're also trying to process their grief. A living trust isn't subject to probate, so your loved ones are spared that ordeal.

3. You value your privacy -- and that of your family

When a will is subject to probate, it becomes a matter of public record. To put it another way, if you leave $2 million to your heirs in a will, other people have the potential to find out about that. So if you're someone who values your privacy and wants to extend that privacy to your loved ones, then a living trust may be a better bet.

One reason you may not want a living trust

At this point, a living trust is probably sounding like a pretty decent alternative to writing a will and calling it a day. But one thing you should know is that setting up a living trust can be more costly and complex than crafting a standard will. So you'll need to weigh that drawback against the benefits. But if you're looking to pass on a substantial amount of money, then it may be more than worth the time and expense.

Even if you have modest assets, a living trust could still be a better solution for you than a regular will. Living trusts aren't just for the wealthy.

Either way, if you're not sure what to do (which is completely understandable), your best bet would be to consult an attorney who focuses on estate planning . They should be able to walk you through the pros and cons of a living trust versus a will. And if you decide to move forward with a living trust, they should be able to help put one in place so you get the peace of mind you deserve.

The Motley Fool has a disclosure policy .

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.

Why ATM withdrawal limits exist

How atm withdrawal limits vary, managing your atm withdrawal limit, what to do if you hit your atm withdrawal limit, navigating atm withdrawal limits: what you need to know.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

• You may only withdraw a specific amount of cash from ATMs daily.
• Most financial institutions have a daily ATM withdrawal limit between the range of $300 to $3,000.
• If you need to withdraw more money from your account, get cash back from a store or visit a branch.

ATMs provide an easy way to access your money quickly if you don't want to step into a bank.

But if you're planning to take out money for a trip or to make a big purchase, you may want to double-check your bank's ATM withdrawal limit so you don't end up short on cash.

ATM withdrawal limits are restrictions financial institutions set for ATMs. This means you are only able to withdraw a certain amount of money from ATMs in a 24-hour period.

Withdrawal limits are a way for banks to control their cash flow since they only keep a portion of their deposits on hand at any given time. The majority of their money is typically lent to other financial institutions, allowing them to earn interest on the funds, which they can return to customers.

There are also security reasons for ATM limits. Withdrawal limits can keep banks and customers safe from scammers and identity thieves. If an unauthorized person gets a hold of your debit or ATM card and PIN, your loss is limited to the daily withdrawal limit.

Most banks and credit unions will let you take out between $300 to $3,000 daily at ATMs, but your limit ultimately depends on your account type and your relationship with the financial institution.

It may also depend on the ATM you're using — out-of-network ATM operators may set separate limits to ensure they don't run out of cash before they're replenished.

For example, your bank may limit your ATM withdrawals to $500 a day, while an independent ATM operator allows you to withdraw only $200. In that case, you would need to visit more than one ATM to hit your maximum withdrawal.

If you have a debit or ATM card tied to a savings account , you also may have to keep tabs on the number of monthly withdrawals you make.

Even though the Federal Reserve eliminated its previous requirement to have a transaction limit on savings accounts, some banks may still limit you to six transactions per month.

Plan for large cash needs

Think ahead: If you're going to need a large amount of cash, make several withdrawals in the days or weeks leading up to the purchase.

If you go this route, consider taking the extra precaution of letting your bank know ahead of time that you're going to be making a series of withdrawals so it doesn't get flagged as suspicious activity.

Use multiple accounts

If you regularly need cash, consider spreading your deposits across two or more banks or credit unions. Each account will have its own daily ATM withdrawal limit, increasing the potential cash you can get each day.

Request a limit increase

If you don't need cash immediately, increasing your ATM limit is an option. Call your bank to ask for an increase in your withdrawal limit beforehand. Several banks allow you to increase your ATM withdrawal limit if you tell them you'll need to make a big purchase.

If you need to withdraw more cash than your bank allows, here are your options:

• Visit a branch location and withdraw money inside with a bank teller. Separate limits apply to these types of withdrawals, but they're often much higher than daily ATM limits.
• If a branch location isn't open, get cash back at a store. Even though this may not be ideal, stores let you get up to $200 in cash if you use a debit card to make a purchase. This may be a worthwhile option if you need cash immediately and your bank or credit union isn't open.
• Consider whether you really need cash. You may be able to transfer money to another account, write a check , or use a debit or credit card instead.

ATM withdrawal limit FAQs

An ATM withdrawal limit is the maximum amount of cash your bank will allow you to withdraw from an ATM in a 24-hour period. If you're using a non-bank owned ATM, the ATM operator may set its own limit.

Withdrawal limits protect financial institutions and consumers alike by managing a bank's cash flow and liquidity and reducing account access by unauthorized users.

Your online account dashboard will typically display your daily withdrawal limit. You can also call your bank or check your account agreement documents. Generally, banks and credit unions will let you take out between $300 to $3,000 daily at ATMs, depending on your account type and relationship with the institution.

Your bank may be willing to temporarily or permanently increase your daily ATM cash withdrawal limit if you call customer service or submit a request through your online account.

If you need more cash and can't wait until your ATM withdrawal limit resets, consider making a purchase at a store that offers cash back on purchases or go into a physical bank branch and withdraw money from a bank teller.

• Bank accounts
• Savings and CD rate trends
• How banks operate

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

• Main content

Education | Two new laws crack down on sexual harassment at…

Share this:.

• Click to share on Facebook (Opens in new window)
• Click to share on Twitter (Opens in new window)
• Click to print (Opens in new window)
• Click to email a link to a friend (Opens in new window)

Today's e-Edition

• Latest News
• Environment
• Transportation

Breaking News

Education | sources: sen. menendez to resign on aug. 20, education | two new laws crack down on sexual harassment at california universities, bills follow sexual misconduct at san jose state.

The new laws Gov. Gavin Newsom signed July 15 require Cal State University officials to expand current sexual assault prevention training, standardize investigation and reporting processes, track cases and address unprofessional conduct that doesn’t fall under sexual harassment.

“The signing of these bills is a significant first step to fostering cultural change, accountability and trust at these institutions,” said Assemblyman Mike Fong, an Alhambra Democrat who chairs the Assembly Higher Education Committee and coordinated a 12-bill package addressing sexual harassment.

Amy Bentley-Smith, a Cal State University spokeswoman, said “CSU has worked very closely with the Legislature on this bill package for the last year and are pleased to see both bills signed.” San Jose State declined to comment on the bills.

San Jose State, the oldest CSU campus, made headlines in 2020 when an investigation revealed that the Spartans’ sports medicine director and head athletic trainer, Scott Shaw, had sexually harassed at least ten former and current SJSU student-athletes.

The scandal led to a U.S. Department of Justice investigation, the resignations of the school’s president, Mary Papazian, and Athletic Director Marie Tuite and forced the university to pay more than $5 million to over two dozen athletes Shaw had treated. In November, Shaw was sentenced to two years for sexually abusing students under the guise of treatment.

Controversy hit the Cal State University system again in 2022 when a USA Today investigation found the system’s then-chancellor, Joseph I. Castro, had mishandled sexual harassment claims while he was president of Fresno State. Castro resigned shortly after, along with several other top officials across the university’s 23 campuses.

To address the growing problem, Cal State University paid San Francisco-based law firm Cozen O’Connor around $1 million to conduct a systemwide investigation into how its campuses were handling sexual misconduct complaints. The 236-page Cozen O’Connor report — released July 2023 — found failures across the entire university system that resulted in the mishandling of hundreds of sexual misconduct complaints.

A separate July 2023 report by the California State Auditor — which focused on Cal State University’s Chancellor’s Office and three campuses, including San Jose State — found similar concerns with how campuses were investigating allegations and disciplining employees who had engaged in sexual harassment or misconduct.

The state auditor report included eight recommendations for the CSU Chancellor’s Office to improve the university’s policies, including requiring case tracking, consistent investigation and reporting processes and establishing requirements for addressing conduct that is unprofessional but does not fall under sexual harassment.

One of the bills Newsom signed, AB 1790 by Assemblyman Damon Connolly, a San Rafael Democrat, requires California State University to implement the auditor’s recommendations by July 1, 2026. The university system also must submit an initial report of the status of implementation by July 1 of next year.

“This legislation will ensure that survivors are heard, perpetrators are held accountable, and our educational institutions uphold the highest standards of justice and support,” Connolly said in a news release.

Newsom also signed AB 2608 by Assemblyman Jesse Gabriel, an Encino Democrat, which will expand current sexual assault prevention training at colleges and universities to include topics related to alcohol- and drug-facilitated sexual assault and increase students’ access to confidential support and resources. Bentley-Smith said Cal State University officially supported the bill.

Fong said the 12-bill package aims to address and prevent sexual harassment at higher education institutions across the state, improving the campus climate at all California colleges and universities, not just Cal State University.

He added that improving how California addresses and prevents sexual discrimination and harassment at colleges and universities has been a priority of the Assembly Higher Education Committee for many years.

The other bills in the 12-bill package are working their way through the state Legislature, including some that would require a systemwide Office of Civil Rights to oversee policies and establish a Title IX office at CSU and UC campuses, and a few that would have implications for employees who have engaged in sexual harassment.

One aims to target “pass the harasser” policies — a well-known practice referred to by the Chronicle of Higher Education as “higher ed’s worst-kept secret.”

Currently, a college faculty, staff or administrator found to have committed sexual harassment can resign and still get a new job at a different campus because universities don’t share previous misconduct of former employees.

AB 810, by Glendale Assemblywoman Laura Friedman, a Burbank Democrat, would require applicants to disclose if they had previously been found guilty of sexual misconduct. Friedman said the bill does not prohibit a college from hiring the applicant, but ensures administrators are aware of that applicant’s history.

The Cal State Student Association, which represents nearly half a million students in the CSU system, voiced support for nearly every bill in the 12-bill package, including Friedman’s bill.

“We commend the efforts put forth in the Call to Action Report by the committee,” the association said. “The findings underscored significant shortcomings in addressing discrimination and inequitable treatment within the CSU system which deeply concern us.”

Fong said he is hopeful the entire legislative package will be signed into law, but knows it will be a multiyear effort.

“There is still much work ahead,” Fong said, “but I am confident in the impact this legislative package will have for our campus communities.”

• Report an error
• Policies and Standards

More in Education

Local News | Youth at Berkeley/Oakland AileyCamp learn much more than just dance

Education | Broken trust: Cal State is mending how it handles sexual discrimination cases

National Politics | What is Project 2025, and how does it target California?

Education | Recall vote ousts 2 East Bay school board members who pushed to ban gay Pride flags

Advertisement

Supported by

What We Know About the Global Microsoft Outage

Airlines to banks to retailers were affected in many countries. Businesses are struggling to recover.

• Share full article

By Eshe Nelson and Danielle Kaye

Eshe Nelson reported from London and Danielle Kaye from New York.

Across the world, critical businesses and services including airlines, hospitals, train networks and TV stations, were disrupted on Friday by a global tech outage affecting Microsoft users.

In many countries, flights were grounded, workers could not get access to their systems and, in some cases, customers could not make card payments in stores. While some of the problems were resolved within hours, many businesses, websites and airlines continued to struggle to recover.

What happened?

A series of outages rippled across the globe as information displays, login systems and broadcasting networks went dark.

The problem affecting the majority of services was caused by a flawed update by CrowdStrike , an American cybersecurity firm, whose systems are intended to protect users from hackers. Microsoft said on Friday that it was aware of an issue affecting machines running “CrowdStrike Falcon.”

But Microsoft had also said there was an earlier outage affecting U.S. users of Azure, its cloud service system. Some users may have been affected by both. Even as CrowdStrike sent out a fix, some systems were still affected by midday in the United States as businesses needed to make manual updates to their systems to resolve the issue.

George Kurtz, the president and chief executive of CrowdStrike, said on Friday morning that it could take some time for some systems to recover.

How a Software Update Crashed Computers Around the World

Here’s a visual explanation for how a faulty software update crippled machines.

How the airline cancellations rippled around the world (and across time zones)

Share of canceled flights at 25 airports on Friday

50% of flights

Ai r po r t

Bengalu r u K empeg o wda

Dhaka Shahjalal

Minneapolis-Saint P aul

Stuttga r t

Melbou r ne

Be r lin B r anden b urg

London City

Amsterdam Schiphol

Chicago O'Hare

Raleigh−Durham

B r adl e y

Cha r lotte

Reagan National

Philadelphia

1:20 a.m. ET

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .

Disagreement over new U.S. border rules for dogs could halt canine travel

Canadian government agency says it can't sign forms required by u.s..

Social Sharing

Unless an agreement can be reached, Canadians travelling with dogs may not be able to cross the American border come August.

Recently announced rule changes by the American Centers for Disease Control that go into effect Aug. 1 require any dog owners to equip their pets with a microchip and present CDC dog import forms, among other requirements.

However, part of the CDC import form requires one section to be filled out by the dog's veterinarian, with an endorsement from an "official government veterinarian" in the exporting country.

But the Canadian Food and Inspection Agency, which would be the government agency to approve the CDC form, has said it's unable to offer the signoff.

"Please note that the CFIA is currently unable to provide endorsement for export documents for dogs entering the U.S., as the process is being discussed with the CDC," the CFIA website says.

"The CFIA recognizes the concerns and impact that the CDC requirements have on Canadians. We have shared this information with the CDC to support the development of a more streamlined process for Canadians."

• N.B. dog owners prepare to be hounded by new U.S. border requirements

The website says the CFIA is "continuing to actively work" with the CDC to develop a specific process for dogs going from Canada to the U.S., and that more information for travellers with dogs is anticipated by mid-July.

In an emailed statement, CDC spokesperson Dave Daigle said the agency is aware of concerns about the dog importation rule.

"We value the feedback received from various countries, industry partners, and the public, and are actively working with federal and international partners to discuss the feedback received," Daigle said.

The new rules are designed to protect the public from diseases that can spread from dogs to humans, including rabies, he said.

"Dog rabies is a deadly disease that has been eliminated from the United States for 17 years. These measures are designed to allow for continued dog importation while minimizing health risks,' Daigle said.

In an email statement, a CFIA spokesperson said they anticipate "more information to be available in the coming week" and encouraged dog owners to check the agency's website for updates.

N.B. veterinarian association 'left in the dark'

"The new sudden changes are something we were not expecting," said Nicole Jewett, registrar with the New Brunswick Medical Veterinary Association.

She said the Canadian Veterinary Medicine Association and CFIA have been in discussions with the CDC to try and find a solution before the deadline.

"As soon as we have the final rules, we'll be able to institute a plan into how to execute it. But until then, we don't really know what might change week to week until Aug.1," Jewett said.

She urged dog owners to keep checking the CDC website for updates, and said she understands the stress they may be experiencing.

"We're kind of in the dark," Jewett said.

In addition to the uncertainty around the CFIA, she's unsure if New Brunswick veterinarians will have the capacity needed to fill out the forms required of them.

There's no data on how often New Brunswick dog owners cross into the U.S., Jewett said, so it's hard to tell how frequently vets will need to fill out the form.

"It's definitely possible that everything's going to work out, we're going to figure out a way that works for both our countries, and it's going to be easy and simple," Jewett said. "Or it might still be complicated. And we don't know yet."

Veterinarian on border says wait for clarity

Natalie Rosamund is one New Brunswick veterinarian whose clients may be impacted more than others. Based at Mayfield Veterinary Clinic in Dufferin, just outside St. Stephen, she sees clients in both New Brunswick and Maine.

"Right now, what I'm honestly telling people is to avoid crossing the border for the first little bit of August, if they can, until things settle down," Rosamund said.

While she and other vets are trying their best to assure clients, there's just not enough information yet, she said.

While strict regulations around animals crossing international borders are not uncommon, "I think the difference here is the close relationship between Canada and the U.S. and how fluid the border has been," Rosamund said.

She said she is unsure how her Maine clients will be affected and if they will have to arrange paperwork for their return trip home from her clinic.

Clients on Campobello Island are also a concern for Rosamund, since they can only access the rest of New Brunswick by driving through Maine, outside of summer months when a ferry runs to the mainland.

She said the CVMA is organizing a seminar for Canadian veterinarians on the new U.S. border rules next week, and she hopes there will be more clarity from the CFIA after that.

"I don't want people to panic. It's not the CFIA saying 'we're not going to help you.' They're saying 'hold on and let us figure it out,' is my interpretation of it," Rosamund said.

ABOUT THE AUTHOR

Sam Farley is a Fredericton-based reporter at CBC New Brunswick. Originally from Boston, he is a journalism graduate of the University of King's College in Halifax. He can be reached at [email protected]

Related Stories

• New U.S. border rules for dogs starting Aug. 1 have health minister concerned
• U.S. border rules have dog breeders thinking twice about taking their business south
• U.S. drops rules for dogs entering from rabies-free countries
• U.S. delays tough new border rules for dogs — but could revive them in nine months, minister says

How to Really Protect Your Business Idea

7 min. read

Updated May 3, 2024

How do I protect my business idea?

How can I find investors without giving it away? How can I get people to join me without telling them all about it?

What if they steal my idea?

Here’s the hard truth about protecting your business ideas:

You don’t own your idea, and you can’t sell it

You don’t own your idea.

An idea is like a summer breeze—you can enjoy it, maybe use it to power your windmill or sailboat, but you can’t own it. And you can’t steal it. An idea is like a good joke—using somebody else’s joke is not stealing it.

Yes, there are rare exceptions to this rule. The exceptions are that you can patent an invention, copyright a creative work (songs, movies, books, software), and trademark a commercial phrase, image, sound, or video.

I’m not dealing with those exceptions in this article. That’s all for some other time.

Important note: Sharing an idea is giving it away.

You can’t sell an idea; the first reason is because you don’t own it. The second reason is because you can’t find anybody who will buy it.

If you don’t believe me, do a good web search. You’ll find thousands of people—no, probably millions—saying (or posting) that they have a great idea they want to sell to an existing company. And you’ll find nothing, not one example, of a company actually buying an idea.

Companies buy companies, products, websites, software, startups with traction, and occasionally startups with just an idea and a team, but not ideas. 

So, get this straight: You are supposed to build a business with that idea, add value, gather a team, and get going. Get customer commitments, early sales, and traction.

Daunting indeed…so what? Do nothing? Give up?

Seriously, if you’re thinking you can sell your idea as such, stop reading this post. I’m not writing this for you. You are wasting your time. Businesses and people that cater to that pipe dream are almost all plain scams.

The only exceptions to that rule are a few legitimate businesses that help inventors apply for and market patents—and this article isn’t about patents.

If, on the other hand, if you’re ready to execute your idea, then read on. I want to help you protect it as much as you can while you build on it.

That’s worth discussing.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

Don’t let the cat out of the bag.

The first thing you do with your big idea is shut up. Borrow from all those spy movies and adopt a “need to know” policy that covers who you share with and how much you share. Remember, people who hear your idea and execute it before you do didn’t steal your idea; they executed it.

They deserve to win. And if you did nothing but talk, you deserve to lose. 

The next thing to do is figure out who needs to know and tell those people carefully and appropriately. If you can execute your idea all by yourself, do that. If you need a team to build it, gather your team carefully.

Talk to people one at a time. Start with people you trust.

Feel them out first, for their interest, before sharing the whole idea.

• Who can you trust?

Don’t get paranoid—you’ll never gather a team if you can’t trust anybody with your idea. Legitimate investors won’t steal your idea; they need teams to execute, not naked ideas (remember, an idea has no value; the work gives it value, and sometimes a team gives it value).

I’ve been in business for more than 30 years now, and I’ve had a lot of success with the straight-in-the-eye moral and ethical commitment. Asking, “Can I trust you with this?” isn’t an iron-clad solution, for sure; so many people give secrets away without even having bad intentions.

Moral and ethical commitments get broken, as do legal and written commitments, especially around ideas and non-disclosure. And, sometimes, I suspect the straight-in-the-eye method is more binding than legalese in letters (but that’s just me, and I’m not an attorney).

Not to mention, is it possible that some people interpret an allegedly binding document as a rule of a game to be circumvented?

Use common sense with investors and investor groups. I’m really serious that legitimate investors won’t steal your idea—but, on the other hand, when you pitch to a group of 30 or more investors, there can be leakage. Despite all good intentions, when there’s a group of people listening, responsibilities get diluted. At the very least, discuss it with a group quickly to bring up the possibility of conflicts of interest.

If the two paragraphs above sound dicey, good.

That’s why I say shut up and deal on need-to-know only. There are risks, but it comes with the territory. You can’t keep an idea secret and execute it at the same time, but you can be smart about how much you say.

• Register the entity and the domain name

Registering the entity protects your business name to some extent, as long as you are the first in the world. It can cost as little as $50. Registering the domain name, if you have a good one, protects you for that domain but not against copycats with similar names.

• Create the proof of what and when

Here’s something easy to do that provides some limited protection: write your idea down and mail yourself 10 copies via registered mail. Don’t get me wrong: proving you had an idea first doesn’t give you ownership and may not matter in court.

Even so, this can possibly help in certain cases, with sloppy problems that come up, showing legal proof of what your idea was on what date.

• Should you make it legal?

Some legitimate experts will insist on having people sign confidentiality and non-disclosure documents before you share anything with them. They are often attorneys, and I’m not, so maybe they know better.

I say do what you can. Do the legal end when it’s practical, but don’t trust it. Don’t think it solves the problem.

You’ll never get a legitimate investor to sign one of those documents before you pitch. If an investor signs off on a non-disclosure, she’s just ruled out a whole class of business she can never invest in without risking legal action. They just don’t do it.

And, I think lots of people who you might want as team members would be put off by the idea of signing a legal document before talking about it. I would.

On the other hand, some kinds of situations, such as starting to work with a business ally doing co-promotion, or working with vendors, lead almost naturally to non-disclosure documents and confidentiality. In some situations, people expect to sign those documents before discussing a deal.

Work with an experienced small business or entrepreneurship attorney who gets it. Let your attorney tell you when to get signatures first and when not to. And if the attorney says you need potential investors to sign off before you pitch, then change attorneys.

Bottom line: Don’t talk about it. Do it.

In my decades of doing businesses, I’ve seen thousands of would-be startups derailed by excess secrecy. Not one failed because its idea was stolen.

Don’t get all balled up with idea constipation, worrying about who’s going to steal your idea. Get going and build a business. Be smart about protecting your idea, but understand that if you don’t risk sharing, your chances go way down.

Have you had a business idea that you were worried about protecting? How did you handle it?

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• You don’t own your idea, and you can’t sell it
• Daunting indeed…so what? Do nothing? Give up?
• Don’t let the cat out of the bag.
• Bottom line: Don’t talk about it. Do it.

Related Articles

9 Min. Read

Going Beyond the Napkin: How Do You Know If Your Idea Is Any Good?

5 Min. Read

10 Tools to Design Your Best Product Yet

6 Min. Read

5 Steps for Entrepreneurs with an Idea, but No Funding

8 Min. Read

How to Move on When Your Business Idea Fails

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• Brand Protection Remove counterfeits
• Impersonation Removal Take down scammers
• Domain Management Reclaim your Name
• Social Video Growth Monetize videos
• Anti Piracy Eliminate Pirates
• NFT Protection Stop NFT abuse
• Revenue Recovery Program
• Domain takedown
• Copyright Infringement Protection
• Trademark Monitoring Software
• DMCA takedown service
• Intellectual Property Protection
• Social Media Protection software
• Domain Monitoring Service
• Trademark Protection Services
• Amazon Brand Protection Services
• Anti Counterfeit Solution
• Marketplaces
• Social Media
• Fake Websites
• Search Engines
• Mobile App Protection
• Video platforms
• Cyberlockers
• Red Points Reviews
• Corporate Social Responsibility
• Entertainment
• Food & Beverage
• Toys & Games
• Brand Protection
• Impersonation Removal
• Gray Market
• How To’s
• IP Insights
• Market Research
• Product Guide
• Industry Insights
• What’s new in Red Points
• Customer Stories
• Business Impersonation Removal
• Request demo

Get the latest strategies to protect your revenue in your inbox

Finish your request and join the Newsletter

Thank you for subscribing.

How to legally protect a business idea

Table of Contents:

Last updated on: April 2, 2024

Have a great business idea? Whatever you do, don’t let it fall into the wrong hands and lose your hard work and innovation to someone else. There are countless scammers, bad actors, and legitimate competition who could steal your idea, along with your revenue if you don’t protect it properly. 

When it comes to protecting business ideas, what many business owners fail to prepare for is enforcing ownership of their ideas and content. We have compiled this guide on how to legally protect a business idea, as well as enforce your ownership and stop infringements when they occur. 

How to legally protect your business idea 

• Register your intellectual property (IP) portfolio
• Monitor for infringements of your protected business ideas 

Enforce IP ownership and take down infringements 

• Employ a brand protection software 

Register your intellectual property portfolio

The first step to legally protect a business idea is fairly straightforward: you want to register ownership of your intellectual property. Intellectual property refers to the ownership of intellectual creations, ideas, and concepts. Common examples of business IP include brand logos and names, inventions, product design, and more. 

Having formal registrations for each of your business ideas will help you stop infringements of your intellectual property . There are four distinct types of IP that will protect your business ideas, and it’s important you register them correctly. The four types of intellectual property are copyrights, trademarks, patents, and trade secrets. 

Copyrights protect original creations. There are many types of content that would fall under copyright protection as it pertains to your business. Blog articles, web content, unique patterns, and graphic designs are all forms of business copyright content you can register. 

Copyrights protect your unique business content from being replicated. This means that someone can’t legally make a copy of your creation, whether they go on to sell it or simply copy it for themselves. 

While copyright actually applies automatically to the creator, it’s still a good idea to get it registered in order to best protect your copyright content . This will create a record and make it easier to prove your ownership of creations if you have to take down an infringement. 

Trademarks protect the content and ideas that help customers distinguish your brand from others. Common business trademark examples include brand names, logos, slogans, and particular product packaging and/or design. 

Trademarks, like copyrights, are automatically applied and protect your unique brand identifiers from being used by scammers or competition. 

Again, we do recommend you officially register your business trademarks if you want the best protection for your business ideas. Registering your business trademarks allows you the right to take legal action against anyone infringing on your IP and using it for themselves. 

Patents protect inventions that may or may not yet exist, and therefore help protect ideas and concepts vs. creations like copyrights and trademarks. 

Unlike the former types of intellectual property rights, patents aren’t automatically applied to inventions and require registration with the United States Patent and Trademark Office .

Patents are necessary to protect your invention and keep it from being stolen and replicated. To enforce a patent and take down anyone stealing your idea, you’ll need this legal registration in your IP portfolio. 

Trade Secrets

Trade secrets protect the particular processes and information a business uses to operate and succeed. Common examples of trade secrets include recipes, processes used to create or analyze content, and client lists used for sales. 

Trade secrets are another type of intellectual property that is automatically granted to the owner. To be considered a trade secret legally, you must ensure the information is:

• Beneficial to your business because it is a secret
• Beneficial to others (like consumers) who can’t access the information
• Be reasonably protected by the owner to ensure the information does not become public knowledge

If someone steals your trade secrets, you have the legal right to enforce your ownership and take legal action against them. This is vital to ensure your competition cannot benefit from your unique business ideas.

Once you have the proper registrations for all of your intellectual property, ensure you keep a detailed record. Developing an IP portfolio will ensure you and the rest of your team knows exactly which of your content is protected. It will also be necessary to prove ownership of your IP if you have to deal with infringements. 

Monitor for infringements of your protected business ideas

Registering your IP will help you claim legal ownership of your business ideas, but it won’t necessarily stop bad actors from stealing your IP anyway. It’s especially easy for scammers to steal your content and business ideas and infringe on your IP online, where counterfeits and brand impersonation is rampant. 

To protect a business idea from being stolen, you must be on the lookout for anyone infringing on your content. Monitor for infringements across all of your sales channels, as well as places you don’t currently sell your products or operate your business. 

Common places for IP infringements to occur include fake websites , Ecommerce marketplaces like Amazon and Shopify , and social media platforms like Facebook and Instagram . To best protect your business ideas and content, it’s important to monitor for infringements on as many of these channels as possible. 

If you do notice someone infringing on your intellectual property, enforce your ownership and take it down immediately. If left alone, someone can completely damage your brand reputation and steal your revenue.

How are intellectual properties enforced? 

One of the most universal ways to enforce ownership of your IP is to send a cease and desist letter to the infringer. This notifies them that they have unlawfully used your protected content and will face legal repercussions if they don’t take down the infringement. It also creates a record for you to use in court if you need to proceed with legal action. 

You can also report an infringement to any platforms the stolen content appears on, if applicable. You can report an infringement on Instagram , for example, and other social media platforms, Ecommerce marketplaces, and search engines. 

No matter what methods you use to enforce your intellectual property, it’s important to keep following up until the infringement is taken down. If you aren’t successful with these tactics, it’s a good idea to invest in an IP lawyer or brand protection expert . 

Employ a brand protection software

With the volume of scammers and bad actors online, protecting your business ideas from being stolen can be nearly impossible alone. Employing a brand protection software like Red Points can help you monitor for infringements on the scale you need to properly protect your business ideas. 

Red Points software can change the way you enforce your IP by making the process completely automatic. Instead of spending days scouring thousands of sites and platforms yourself, this software keeps a constant monitor for infringements all across the web. It also sends automatic takedown requests when infringements are identified, so you don’t have to waste time writing and sending C&D letters. 

What’s next

There are thousands of scammers, bad actors, and even industry competition out there who can easily steal your intellectual property. It is vital to protect your business ideas and enforce your IP to ensure others aren’t stealing your revenue and profiting off your ideas.  Red Points can help protect your business idea with 24/7 infringement monitoring and automatic takedowns that save you time, stress, and money. Learn more about our services and see how you can protect your business with the most widely used Brand Protection Software .

More like this on:

Jordan Safranski

You may like...

Today, bad actors are using every tool at their disposal to commit brand abuse and…

Have an innovative idea for your new business? It’s important to ensure your unique business…

If your company has finished the process of filing for a patent, you might be…

Something went wrong

Thanks for subscribing!

Join our weekly newsletter for new content updates, how-to's, exclusive online event invites and much more.

Please complete these required fields.

You’ll receive a confirmation mail.

• Starting a Business
• Growing a Business
• Small Business Guide
• Business News
• Science & Technology
• Money & Finance
• For Subscribers
• Write for Entrepreneur
• Tips White Papers
• Entrepreneur Store
• United States
• Asia Pacific
• Middle East
• South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

Writing a Business Plan & Protecting Your Idea Don't know where to start? Here are the first steps, plus how to protect your business idea.

By Stever Robbins Jul 17, 2000

Opinions expressed by Entrepreneur contributors are their own.

Q: I'm a budding entrepreneur, and over the years, I've brainstormed about many different business ideas. What's the first step in getting my concepts rolling? Is it setting up the Web site and launching a direct-mail campaign, forming the company structure or writing a business plan?

A: Unfortunately, there's no magic formula. Successful companies use every combination, and then some. Here's my recommendation, but check with your lawyer and accountant before making final decisions.

• First, create the business plan. A plan structures your idea. It lets you think through your market assumptions, product, distribution, management and financial needs. Even if you never need to raise outside money, now may be your only chance to think through everything from top to bottom and know where and how you're going. You can also work with a lawyer to choose a corporate structure that's most suited to your operational and financial needs.
• Next, incorporate. That way, start-up expenses clearly belong to your business and not to you as an individual. Incorporating early will also start your company's legal history, which can make it easier to get credit and raise bank financing later on. Furthermore, lawyer Joe Volman ( [email protected] ), a specialist in early-stage deals, points out that incorporating limits your liability once you start dealing with customers. In addition, he says you want as much time as possible between incorporation and outside investment to justify a low share price at incorporation. Your founder's shares are considered income by the IRS, and it's hard to value them at a penny per share two weeks before outside investors pay $1 per share. But always check with your own lawyer who knows your situation and your state's tax laws before deciding when to incorporate. Doing this properly at the start can save thousands (if not millions) of dollars down the road.
• Finally, build your site and market it. Your business plan is your chance to identify your customers, value proposition, financials and the response rates you need to be successful. If you begin building and marketing without the up-front thought, you won't know if your time and money are going toward the right things. A 3 percent direct-mail response rate is incredibly good, but if your business plan requires a 10 percent response to be profitable, it's best to know that before you pay for a direct-mail campaign.

Q: I'm also uncertain about showing my plan around once it's completed. Should I take measures to protect my ideas and concepts at that stage, and if so, what types of actions can I take to ensure my concept stays mine?

A: Protecting intellectual property (IP) is best done early by using a good intellectual capital lawyer. IP protection covers many areas, including the business idea, technology ownership and trademarks.

Entrepreneurs often ask investors to sign nondisclosure agreements (NDA) to protect the business idea. Few angels and almost no venture capitalists will sign an NDA. If one of their portfolio companies is already working on a similar idea, they can't sign it. If they did, you could show up years later claiming they stole your idea.

VCs also say you can trust them anyway since breaking confidentiality would hurt their deal flow. Really? If a VC has track record of making entrepreneurs multimillionaires in 18 months, would you talk with them even if you heard rumors they steal ideas? Probably. Especially since those rumors can be dismissed as sour grapes from unfunded entrepreneurs. Indiscretion might tank a VC's deal flow, but I doubt it would be as devastating as they portray.

Business Plan Guide »

• How Long Should Your Plan Be?
• When Should You Write It?
• Who Needs A Business Plan?
• Why Should You Write A Business Plan?
• Determine Your Goals and Objectives
• How To Write A Business Plan
• Marketing Plan
• Updating Your Business Plan
• Enhancing Your Business Plan
• Business Plan Software
• Books and How-to Manuals
• Business Plan Templates
• Sample Business Plans

But they have a much more solid argument: The idea doesn't make the difference-entrepreneurship is all about execution. And I agree wholeheartedly. Dreamers with good ideas are a dime a dozen. But in my daily work with entrepreneurs, it's the day-to-day implementation that makes or breaks them, not the grand ideas.

Specific technology is easier to protect than ideas. You can apply for patents and trademarks to protect proprietary technology you bring to the table. Patents protect, and they become assets that increase your valuation. Patents may even protect your business models. One company I've worked with has been told that some of their ways of doing business are patentable.

Caution: Don't rely too much on patents or trademarks in a practical sense. If someone infringes, your patent is only as good as your ability (time and legal resources) to prosecute infringements.

If your idea is all you have, as soon as you start sharing it to raise money, hire employees or establish trade accounts, then it's time to start executing for everything you're worth.

As an entrepreneur, technologist, advisor and coach, Stever Robbins seeks out and identifies high-potential start-ups to help them develop the skills, attitudes and capabilities they need to succeed. He has been involved with start-up companies since 1978 and is currently an investor or advisor to several technology and Internet companies including ZEFER Corp., University Access Inc., RenalTech, Crimson Soutions and PrimeSource. He has been using the Internet since 1977, was a co-founder of FTP Software in 1986, and worked on the design team of Harvard Business School's "Foundations" program. Stever holds an MBA from Harvard Business School and a computer science degree from MIT. His Web site is a http://www.venturecoach.com .

The opinions expressed in this column are those of the author, not of Entrepreneur.com. All answers are intended to be general in nature, without regard to specific geographical areas or circumstances, and should only be relied upon after consulting an appropriate expert, such as an attorney or accountant.

Stever Robbins is a venture coach, helping entrepreneurs and early-stage companies develop the attitudes, skills and capabilities needed to succeed. He brings to bear skills as an entrepreneur, teacher and technologist in helping others create successful ventures.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick Red Arrow

• He Didn't Want to Lead His $1 Billion Business the Same Way Anymore — Here's How the High-Stakes Switch-Up Paid Off
• Lock Your Workplace Is Just Pretending to Care — and You're Part of the Problem, Too. Here's Why.
• Can ChatGPT Help Start a Business? I Tried the Latest Version, GPT-4o, to Find Out.
• Lock Her Startup's Product Was Better and Cheaper Than the Competition, So Why Wasn't It Selling? The Answer Would Bring in $25 Million a Year.
• Taylor Swift Just Gave a Masterclass in Crisis Management — Turning an Onstage Disaster Into a Highlight
• Fast-Food Chains and Their Menus Barely Resemble Those of the Past — And This Viral Post Reveals How Stark the Difference Is

Most Popular Red Arrow

63 small business ideas to start in 2024.

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Four Takeaways for the Franchise Industry From My Time at the Republican National Convention

Matt Haller, President and CEO of the IFA, says the stakes are high for franchisors and franchisees in the upcoming presidential election.

The Top 5 AI Tools That Can Revolutionize Your Workflow and Boost Productivity

Discover the top 5 AI tools for marketing and content creation that every marketer needs to know.

How to Build a Successful Startup, According to an Investor Who Made Early Bets on Twitter, Lyft, and Twitch

He's found a few patterns after nearly two decades of investing in startups.

Jake Paul Says He's 'Scared' to Fight Mike Tyson, But This Mindset Hack Helps Him 'Embrace' Fear and Make Millions: 'Let It Fuel You'

The social media star and "W" founder spoke to Entrepreneur about his latest ventures in boxing and business.

10 Effective Growth Marketing Hacks and Strategies for Your Startup

Working at a startup can feel like building a plane while you're trying to take off. Use these ten marketing tips to effectively grow and sustain your startup.

Successfully copied link

Original text

Whether you’re starting your new business, or your company has been up and running for a while, protecting the business you have worked hard to build is essential.  However, in the excitement of managing a small business, many entrepreneurs may skip this very important step.

Here are seven ways you can protect your small business from risk.

1. choose the right form of business..

Operating as a sole proprietorship is the default business structure for a one-person business. But while this option may be easy, it's not necessarily the best choice to protect your business. For one thing, the sole proprietorship structure doesn’t shield your personal assets. That means if a customer decides to sue you or a vendor demands payment that your business can’t afford, your savings, home and other assets could be fair game.

Depending on your future goals for your business, a corporation or limited liability company (LLC) could be better for you. Learn more about  how to choose the right form of business .

2. Get legal help.

For some basic legal matters, an online legal resource can provide helpful guidance and tools, such as Rocket Lawyer , Nolo or LegalZoom . You’ll typically find:

• Access to information. The specifics vary by the legal websites, but most include articles, blogs, checklists, templates and legal forms including non-disclosure agreements, business contracts and LLC operating agreements. This information can help you understand your legal rights and obligations and provide guidance to help you navigate your legal needs.
• Legal tools. These kinds of legal websites can offer tools such as business formation documents, trademark, copyright and patent information, as well as annual reports that you’ll need to file and more.
• Helpful compliance resources. You’ll typically find sample privacy policies, terms of service and website cookie notices.

However, there may be times you need a lawyer to represent you. If that happens, here are some steps to follow:

• First, identify the specific legal issues your business is facing. Do you need help with business formation, contract review, employment law, intellectual property or something else?
• Ask your friends, family and business associates for recommendations for lawyers who specialize in the area of law you need help with. Check with your local bar association or chamber of commerce for referrals.
• Once you have a list of potential lawyers, schedule interviews to learn about their experiences working with small businesses, expertise and fees. Ask about their availability and who in their office will handle your case.
• Be upfront about your budget. If cost is a concern, discuss payment options — many attorneys have affordable solutions or may be able to refer you to a less expensive colleague.

3. Find an accountant.

Even if you plan on doing business bookkeeping yourself, getting a good accountant is worth the price. Who has time to keep up to date on tax law changes? You sure don’t — but accountants do. Not only can they ensure you take advantage of any tax breaks, but they can also provide valuable advice on how to structure your business, the best way to finance business expansion, and how much you should pay yourself.

During your startup phase, an accountant can help you assess your financing needs, advise whether your financial projections are realistic, and help you assemble documentation and a presentation that will convince investors and lenders to finance you. 

4. Buy business insurance.

Most businesses need general liability insurance, which protects the business from a variety of claims that can arise from business operations. A business owner’s policy combines general liability with property coverage and is a popular solution for many small business owners. If you provide advice or professional services to customers, you may also need professional liability insurance, also known as E&O (errors and omissions) coverage. If you use a vehicle for business purposes, such as traveling to customers to perform services, transporting materials or people or delivering products, you will likely need commercial auto insurance. Depending on which state you operate in, you may be required to have workers’ compensation insurance. Other insurance products to consider include employee life insurance, business interruption insurance and cyber insurance. Learn about protecting your business from common and uncommon risks in Progressive’s Prepare and Protect Guide . An independent agent in your area can also help you determine which coverages will best serve your business .

5. Be smart about new customers and clients.

Small business owners can face cash flow issues due to late or unpaid invoices. Fortunately, there are some things you can do to mitigate the risk.

• Start with a contract.  A written contract outlines the terms of your agreement, including the scope of work, the price, the payment terms and any deadlines. Considering having an attorney review your master contract template before customizing it for clients.
• When the contract is signed. (Your deposit.)
• When the work begins.
• Interim milestones. These will vary by the type of business you own. For example, for a home remodeler, the milestone could be finishing one room; for an accountant, it may be completing an audit; and for a graphic designer, it could be developing a specific number of website pages. 
• When the project is finished.
• Send invoices promptly.   S end an invoice for every payment milestone. The invoice should be clear and concise and include all relevant information, including the date, invoice number, contact information and payment terms. Remember to thank the customer for their business.

6. Protect your employees.

From an electrical fire that destroys your inventory to a natural disaster like a flood or hurricane, disaster can strike your business at any time. That’s why having a disaster plan for what you will do in an emergency is important. A good disaster plan protects both your business and your people. Create a plan and assign responsibilities for how to get employees and customers out of the building safely, what to do if a disaster keeps you and employees from getting to your business, and how you will keep running even if you can't get to your physical location.

Ready.gov, an official website of the U.S. Department of Homeland Security, offers business disaster toolkits for hurricanes, earthquakes, flooding, power outages and other types of hazards.

7. Protect your business data.

Cyber threats are on the rise, and small businesses are frequent targets. To protect your business, start by backing up your company data and documents and storing them securely. A cloud-based file storage solution keeps your data safe off-site and accessible no matter where you are. To protect your business from cybercrime and hackers, install appropriate firewalls, use business-grade computers and antivirus software, and train your employees in cyber security measures, such as creating strong passwords. SCORE’s  Small Business Guide to Cyber Security  can help you get started.

Your  SCORE mentor  can help you determine additional ways to manage risks and protect your business.

Progressive Commercial Insurance

With over 50 years of experience,  Progressive Commercial Insurance  offers a full range of business insurance products featuring competitive rates and first-class service. They offer customized insurance solutions for both heavy and light commercial vehicles, as well as business insurance coverages including general liability and business owners policies, professional liability, workers’ compensation and more. Progressive is a Fortune 100 company and trusted by thousands of small business owners to protect their livelihood.

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Keep Your Business Safe from Cybersecurity Threats

According to the National Cybersecurity Alliance , many small to medium-sized businesses (SMBs) have the misconception that their data is not valuable and that, in turn, they are unlikely to be the target of a cyberattack. However, 28% of cyberattacks involve small business victims. In short, all data is valuable – and there are simple steps that small business owners can take to protect theirs. This Cybersecurity Awareness Month , we encourage you to leverage the following tips and resources to ramp up your cybersecurity safeguards.  

Understand the Most Common Types of Cyberattacks

To effectively prevent cyberattacks, you must first understand some of the ways these threats can present themselves. The most common types of cyberattacks include:

• Phishing: Phishing is when cybercriminals send an email or text that appears to be from a legitimate organization or known individual. These emails often entice users to click on a link or open an attachment containing malicious code. After the code runs, your computer may become infected with malware (i.e. software intentionally designed to cause damage to a computer, server, client, or computer network).
• Viruses: Viruses, a type of malware, are harmful programs that spread from computer to computer, giving cyber criminals access to systems.
• Ransomware: Ransomware is a type of malware that restricts access to a computer until a ransom is paid.  

Assess Your Cybersecurity Vulnerabilities

Once you understand what cyberattacks can look like, the next step is to evaluate your own operation’s cybersecurity risks. A cybersecurity risk assessment can identify where a business is vulnerable and help you create a plan of action, which should include employee training, a strategy for securing email platforms, and a path forward to protect your business’s information assets.

Here are a few government tools you can use for your cybersecurity risk assessment:

• Federal Communications Commission (FCC) Planning Tool : The FCC offers a  cybersecurity planning tool  to help you build a strategy based on your unique business needs.
• Cyber Resilience Review : The Department of Homeland Security’s (DHS)  Cyber Resilience Review  is a non-technical assessment to evaluate operational resilience and cybersecurity practices.
• Cyber Hygiene Vulnerability Scanning : DHS also offers free  cyber hygiene vulnerability scanning  for small businesses.
• Cyber Essentials: Cybersecurity & Infrastructure Security Agency’s (CISA) Cyber Essentials is a guide for leaders of small businesses as well as leaders of small and local government agencies to develop an actionable understanding of where to start implementing organizational cybersecurity practices.  

Implement Best Practices

While your risk assessment will help you develop tailored cybersecurity plans based on your unique needs, there are also general best practices that all businesses can adopt to reduce vulnerability to a cyberattack. These include:

• Beefing up existing cybersecurity protections: Simple acts like changing passwords with stronger ones made up of random letters, numbers, and special characters can help prevent cybercriminals from gaining access to your data. Using multifactor authentication for your accounts and services. Additionally, update anti-virus software and secure your Wi-Fi networks.
• Training employees: Cybersecurity is a team effort.  Make sure your employees know their roles and responsibilities in preventing breaches, too.
• Protecting sensitive data and backing up the rest: While firewalls and other tech protections are important to warding off cyberattacks, physical protections can be just as essential. For example, lock up company laptops when they are not being used to prevent unauthorized access. Additionally, make sure that your files are backed up regularly to reduce your business’s susceptibility to ransomware attacks.

Being a small business owner is all consuming, and it can be difficult to find a spare moment. However, making cybersecurity a priority can save you time and money down the line. Visit sba.gov/cybersecurity , along with the Cybersecurity Awareness Month site , for more valuable tips and tools. 

About the author

U.s. small business administration.

10 Best Ways to Protect your Business idea in South Africa

By: Author Tony Martins Ajaero

Coming up with a brilliant, cash-spinning idea is not always easy. Unfortunately, there are always people lurking around the corner looking for business ideas to steal and profit from. It is always easy to get your business idea stolen in the process of sourcing for funds, creating product prototypes, or during the process of business documentation. To avoid this, you have to take some preventive measures to prevent your business ideas from getting snatched off your hands.

1. Make Sure You Register Your Business

Registering your business would make it eligible to be recognized as a corporate entity with its own assets. It would also give you access to all the necessary licenses that you need to make your business legitimate.

2. Trademark Your idea

Trademarking involves developing a unique phrase, logo, word, design, symbol, or image for your business or product. If anyone decides to use these elements, then you can take legal action against them. Trademarking your product designs, images and logos can keep people from using them without authorization. To trademark your product in south africa, you can visit www.cipc.co.za .

3. Copyright Your Work

You can protect your creative work by registering it as a copyright. Copyright helps to protect your intellectual property and ideas from unauthorized copying, and prescribes the steps that must be taken should anyone decide to copy your work.

4. Apply for a Patent

You can also apply for a patent for your product or business idea with CIPRO, the organization responsible for registering patents in South Africa. When you apply for a patent with CIPRO, they check to ensure that the product idea hasn’t been patented by someone else in South Africa or in other countries in the past, then they issue you with a patent certification that shows that you now have exclusive rights to the product/idea, and no one else can use them without your permission.

You can register your patent in South Africa by visiting www.cipro.gov.za . It costs between R7,000 and R10,000 to file a patent in South Africa and afterwards, you also have to pay an annual maintenance fee of about R200.

5. Sign a Non-Disclosure Agreement

When pitching your business ideas to potential investors, you should have them sign a non-disclosure or confidentiality agreement. This document is legally binding, and prevents any of the investors from using your ideas without your permission. A non-disclosure confidentiality agreement allows you to take legal action against investors who may go against this agreement.

6. Mark Documents with Appropriate Notices

You can opt for a simple business protection approach like marking your business plans and other related documents with the word ‘Confidential’ or ‘Proprietary’. This serves as a legal warning to readers that the contents of the document are not to be copied or disclosed to third parties.

7. Protect Your Computers

You also have to protect your computers, email accounts, and social media accounts from unauthorized access by hackers. Hackers can easily break into your accounts to steal important information about your business or product ideas for themselves.

8. Sign Non-Compete Agreements

If you need to hire someone during the process of developing your business idea, for instance, if you need to hire someone to develop a product prototype for you, you should have them sign a non-compete agreement. This agreement prevents them from setting up a business similar to yours or using your business ideas in any way. You can take legal action against them if they go against this agreement.

9. Work-for-Hire Agreements

You should also have the people you hire to develop your product sign work-for-hire agreements to show that you only hired them to work for you, and they are not responsible for developing or formulating any of the ideas. This can help to protect your business in the future when it becomes successful and someone comes up to say that they were involved in developing the business or product idea.

10. Hire a Lawyer

Nothing beats professional legal advice when trying to protect your business idea from intellectual property or idea theft. A lawyer would be able to prescribe some adequate measures to take in order to protect your business.

Sometimes, when people know that you have a lawyer at your beck and call, they simply avoid messing with you in order to avoid legal battles and consequences, so always throw in some subtle hint about the fact that you have a lawyer at your beck and call during pitches and business meetings to keep intending business idea or intellectual property thieves from going through with the plans because they know that there would be legal consequences.

Related Posts:

• How to Start a Gold Mining Business in 20 Steps
• How to Start a Business in South Africa Without Money
• How to Register a Scrapped Vehicle in South Africa
• How Long It Takes to Register a Trademark in South Africa
• How Much It Cost to Start a Business in South Africa
• How to Get a Butcher License – Steps & Requirements

Table of contents

Safeguard your business idea: expert tips for protection.

Have questions on formation, banking and taxes?

Schedule a FREE consultation with a formation and compliance expert today 📞

Intellectual property rights are important to protect your bottom line. From the proprietary recipe for coke to famous patents for the lightbulb, telephone, gas motor engine, and refrigerator, entrepreneurs and investors have worked to protect their business ideas for centuries, and you should, too. 

As of 2022, Samsung is the world’s largest patent holder, with 6,248 patents granted during the year. Protecting your business concept is important even if you haven’t invented a new cell phone or lightbulb. Read on to know about how to protect a business idea and grow your business.

Why Is Protecting a Business Idea Important?

Protecting a business idea is crucial as it helps prevent others from copying or stealing your concept, ensuring that you have a competitive advantage in the market. For example, while “smartphone” is a broad idea, and most perform similarly to the end user, key differences drive Apple, Samsung, and every other major cellphone producer to protect their unique offering. 

Whether you’re developing a line of children’s clothing, a hair business , planning to become a nurse entrepreneur , creating a seasonal business , or developing a type of business coaching, you’re bringing something into the market that is fundamentally unique and valuable. 

When you protect those business ideas, mass producers in China or stores down the street can’t legally replicate it and sell it for half the price, driving away your business. From design patents and trademarks to intellectual property rights, read on to learn how to protect a business idea. 

How to Protect a Business Idea in 7 Ways

Businesses, including Wyoming LLCs and other LLCs and corporations, rely on IP protection, patents, copyrights, and trademarks to protect their ideas, logos, and other intellectual property. Here’s how each of these work:

1. Intellectual Property (IP) Protection

According to the World Intellectual Property Organization , intellectual property or IP refers to creations of the mind or intellect, including inventions, literary or artistic works, designs, symbols, names, and images used in commerce. Patents, copyrights, and trademarks are the primary means companies use to protect IP, although companies may also hold IP rights for trade secrets, geographical indications, or industrial designs. 

IP law allows individuals and businesses to earn recognition or financial benefit from what they invent or create.

Patents are generally granted to the inventor of something new. When someone invents something unique, a patent gives the owner the right to decide how or whether others can use the invention. Interestingly, to hold a patent, the patent owner must make technical information about the invention publicly available in the patent documentation. 

Meanwhile, widely used inventions that have patents include the slinky (toy), hula hoop, and television. 

Trademarks are signs that distinguish the goods or services of a company. Think of Nike’s swoosh symbol or the Starbucks logo as common examples of trademarks. Interestingly, the history of trademarks dates back to ancient times. Artisans would put their signatures or marks on their products, making them the first trademarks. 

Copyrights are used to protect the rights of creators over their literary and artistic works. Works covered by copyright can include books, music, paintings, sculptures, films, computer programs, databases, advertisements, maps, and technical drawings.

2. Trade Secrets Law

Trade secrets are specific IP rights related to confidential information that may be sold or licensed. According to the US Patent Office , trade secrets include any information with actual or potential independent economic value that is not generally known. It must also have value to others who cannot legitimately obtain the information, and a company must demonstrate reasonable efforts to maintain its secrecy. 

The unauthorized acquisition, use, or disclosure of trade secrets is considered unfair business practices and a violation of trade secret protection. You can file claims against an individual or company who has illegally acquired company trade secrets. 

3. Non-Compete Agreements

A non-compete agreement, non-compete clause, restrictive covenant, or clause is commonly used with employees. Under a non-compete agreement, the employee, who could also be a trade partner, generally agrees not to enter into or start a similar profession or trade in competition against the company requesting the non-compete agreement. 

For example, a software company may ask employees to sign non-compete agreements for five to ten years after they stop working at the company before allowing them to see its proprietary software or other trade secrets. 

4. Non-Solicitation Agreements

Non-solicitation agreements are another way businesses protect their connection with employees and client bases. A non-solicitation agreement is a contract clause that states, again usually for employees, that if they move to work for a competitor, they won’t solicit any current business clients or employees. Non-solicitation agreements usually extend to confidential information connected to the employee’s current job, adding additional protection to trade secrets. 

In the example of the software company employee above, with a non-solicitation agreement, the employee can’t share details about the original company’s clients, employees, or trade secrets if they went to work for a new software company.

5. Non-Disclosure Agreements

A non-disclosure agreement (NDA) is signed between companies or with an employee. It simply states that one or more parties agree not to disclose confidential information related to the business. For example, if two companies enter into a partnership or collaboration, both may agree to sign a non-disclosure agreement to protect their IP. 

6. Work-For-Hire Agreements 

A work-for-hire agreement is a one-time contract that allows companies to hire freelancers or other professionals for a set upfront cost or another form of payment in return for their services. Work-for-hire agreements are commonly used for writers, actors, or other professionals who create unique work. 

In the case of a work-for-hire agreement, the copyright or trademark is passed on to the company. For example, if you hire writers to produce a screenplay or write regular blog posts for your company, with a work-for-hire agreement, your company owns the screenplay or blog posts. 

7. Provisional Patents 

According to the US Patent Office, when you apply for a provisional patent , you may file without a formal patent claim, oath, declaration, or any information disclosure statement. Generally, a provisional patent filing will protect your company for 12 months after which you need to file a non-provisional patent application. 

Other Tips to Protect Your Business Ideas

In addition to the legal protective structures, there are other steps you can take to protect your business, including:

1. Employ Secure Communication Channels

Employing secure communication channels includes secure, password-protected company wifi and strong and unique passwords for real-time communication channels, including email and chat. Basic security precautions and company-wide protocols can help ensure information doesn’t fall into the wrong hands.  

2. Timestamp Your Ideas 

Timestamping allows businesses to secure and protect ideas and includes the ability to record the current time of an event from any computer. Common mechanisms, such as Network Time Protocol, allow networked computers and applications to communicate effectively while securely protecting information. 

3. Only Share Your Idea Once It Has Received Protection

This is the simplest protection. Until you’ve established IP protection for your company’s idea, don’t tease it on social media or tell investors or anyone else about it. Ensure the protection of company ideas, and then move on to the next steps, from securing funding to marketing. 

4. Monitor for Infringements of Your Protected Business Ideas

There are various software protocols online to monitor for infringement of your protected business ideas. Brand protection software like PhishLabs, Adthena, Allure Security, Corsearch, EBRAND, and Red Points can help you monitor for infringements on a large scale to help protect your business ideas and IP.

What to Do if Someone Steals Your Business Idea?

If you suspect someone has stolen your business idea, consult an attorney to understand your legal options, gather relevant evidence, and consider pursuing legal action if necessary. The sooner you take action, the better. Specialized IP lawyers can help you take the relevant actions and secure your IP, even without going to court.

Building in Business Protection

From starting a small business to developing one-person business ideas , Doola business formation and compliance services can take your idea into reality. While working to protect your intellectual property, Doola can help you secure the legal structure, EIN, and business bank account to get your company up and running. It can also ensure legal compliance. Get Doola formation services here!

What legal documents can help protect my business idea?

You can protect your business idea by filing for the relevant copyrights, trademarks, patents, and trade secrets.

How do I prevent others from stealing my business idea?

You can prevent others from stealing your business ideas with copyright protection, trademarks, patents, trade secrets, and provisional patents, as well as non-compete, non-solicitation, non-disclosure, and work-for-hire agreements. 

How can I prevent employees from using my business idea for personal gain?

You can prevent employees from using your business ideas with non-compete and non-solicitation agreements. 

Is it safe to discuss my business idea with potential investors?

Discussing business ideas with potential investors is safe if they have signed a non-disclosure or non-compete agreement. You can speak with an IP lawyer to ensure you protect the company with the best possible options.

Can I protect my business idea forever?

Yes, you can protect your business idea indefinitely with copyright, patent, trademark, or trade secret laws. 

Free e-book

How to form a US LLC in 5 minutes

A beginner-friendly guide on the basics of LLCs. Learn about formation, banking, and taxes.

Schedule a FREE consultation with a US CPA today 📞

Keep reading

Start your dream business and keep it 100% compliant

Turn your dream idea into your dream business.

A beginner-friendly guide on the basics of LLCs. Learn about formation, banking, and taxes. Get ready to turn your dream idea into your dream US business.

Cookie consent

By continuing to browse this website, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Learn more.

BreachSight

Vendor risk, trust exchange, product features, vendor risk assessments, security questionnaires.

• Security Ratings

Data Leaks Detection

• Integrations

AI Autofill

• Financial Services

eBooks, Reports, & more

10 ways to reduce cybersecurity risk for your organization.

Axel Sukianto

‍ Cybersecurity breaches have been on the rise, and it's expected that by 2023, they'll have grown to 15.4 million . While technological advancements have made it easy for organizations to upgrade their security measures, malicious hackers are now using sophisticated tools. This means that in addition to implementing strict cybersecurity policies, you also have to take proactive measures to reduce your cybersecurity risks.

Download our guide on scaling third-party risk management despite the odds

As an organization, you can't afford to leave your data security up to chance. The business impact could be astronomical, it could result in lost revenue, operational disruption, and stolen customer data. Data breaches also cause reputational damage that, in some cases, could take you out of business. So, with everything that's at risk, how can you reduce cybersecurity risk for your organization ? Here are 10 practical strategies that you should implement.

1. Encrypt Your Data and Create Backups

Make sure all your sensitive data is encrypted . Saving your data in normal-text format only makes it easy for hackers to access. Data encryption, on the other hand, limits data access to parties that have the encryption key. It also ensures that even when unauthorized parties gain access to the data, they can't read it. Some data encryption software even lets you know when other people try to alter or tamper with the information.

You should also conduct regular backups for your important information. Sometimes cybersecurity breaches can result in data loss. When this happens, and you don't have a reliable and secure backup, it could result in operational disruptions that could cause your organization a lot of lost revenue. One of the most effective data backup strategies is the 3-2-1 rule . Based on this strategy, you should have at least 3 copies of your data stored. 2 of them should be stored on different media, and one should be in an offsite location.

2. Conduct Regular Employee Training

One of the common ways malicious hackers gain access to your database is through phishing emails sent to your employees. In fact, statistics show that over 3.4 billion phishing emails are sent globally. These emails contain malicious malware in the form of links that give hackers access to user data, including login credentials.

Phishing emails are often hard to detect as they seem legitimate. For instance, a hacker may send an email impersonating leaders in the organization asking for personal details . Without proper training, the employee may end up divulging this information. This is why it's vital that you conduct cybersecurity awareness training. Let your employees know of the main forms of cybersecurity attacks and the best ways to prevent them.

You should also emphasize the importance of checking email addresses before replying to them and checking links before clicking on them. Finally, don't forget to highlight the organizational policy when it comes to sharing sensitive information, even on social media.

3. Keep Your Systems and Software Updated

Software and system updates highly impact your cyber security and digital safety. This is because they not only add new features but also fix bugs and help patch security flaws and vulnerabilities that can be exploited.

Malicious hackers write code that they use to exploit the vulnerabilities. Most of the time, this code is packaged in the form of malware which can affect your entire system. So, make sure you use a patch management system to automatically manage all updates and uphold information security.

4. Use Strong Passwords

Here's an interesting fact; o ver 80% of organizational data breaches result from weak passwords . Hackers don't need much to gain access to your systems. They only require a small gap, and they'll exploit it fully.

Password cracking technology has greatly advanced, and simple passwords don't cut it anymore. Instead, you need to use complex passwords and deploy multi-factor authentication strategies to discourage cybercrime in your organization. You should also discourage password sharing among employees so that even if one desktop is hacked , the rest remain secure.

Some of the security risk mitigation strategies you should implement when it comes to passwords include;

• All passwords should contain at least 8 characters.
• They should contain alphanumeric characters.
• They shouldn't contain any personal information.
• They should be unique and never used before.
• They should ideally not have any correctly spelled words.

Don't forget to keep your password safely stored in an encrypted format.

With many employees now working from home, bring-your-own-device (BYOD) is becoming increasingly common. Advise iOS users to enable the Security Recommendations feature to monitor the strength of their saved passwords.

5. Assess and Monitor Your Vendors

Chances are that your cyber security is highly dependent on third-party vendors, which is why you can’t afford to ignore vendor risk management . This will help you mitigate third-party risk instead of solely relying on incident response.

Your main focus should be on:

• Cybersecurity risk: onboard vendors using the right strategies and monitor them throughout your relationship.
• Legal, regulatory, and compliance risk: ascertain that the vendor will not impact your compliance with regulations, agreements, and local legislation.
• Operational risk: if the vendor is a critical aspect of your organization, ensure that they won't disrupt your operations.
• Strategic risk: ensure the vendor will not impact your ability to meet your organizational objectives.

Don't leave your cybersecurity to chance, so make sure you manage your third-party exposure as soon as possible.

6. Reduce Your Attack Surface

Your attack surfaces are the vulnerabilities or entry points that malicious hackers can use to access sensitive data. They could be anything like IoT , software, web application systems, and even employees that are often susceptible to social engineering attacks such as whaling and phishing .

There are 3 main types of attack surfaces :

• Physical attack surface: this includes organizational assets that a hacker can get if they have physical access to your premises.
• Digital attack surface: these are assets that are accessible through the internet and live outside a firewall. Digital attack surfaces include known assets such as your corporate servers/ operating system, unknown assets such as a forgotten website, and rogue assets such as apps that impersonate your company.
• Social engineering attack surface: this is one of the most critical yet often overlooked attack surfaces. In this case, the hackers exploit human psychology and manipulate your employees into divulging sensitive information.

Make sure you conduct an attack surface analysis to determine your threat landscape , identify all your security gaps and reduce the attack vectors .

7. Pay Close Attention to Physical Security

Most organizational cyber risk management policies focus on the digital aspect of cyber risks and entirely neglect their physical premises. Conduct a security assessment and determine whether your critical infrastructure is safe from security breaches. You should also analyze your data protection policy and decide whether or not it has data disposal strategies.

Think of a scenario where your online systems are safe from cybercriminals, but you experience a breach because someone broke into your offices and rummaged through your file cabinets. That would be tragic! There are even other instances where janitors go through the garbage and obtain customer and employee personal information.

If you have any restricted areas, make sure they are protected using high-value systems. You should also use 2-factor authentication such as keycards and biometrics . This way, even if the keycard is lost or stolen, no one will be able to access the area.

8. Put a Killswitch in Place

Having a killswitch protects you from large-scale attacks. It is a form of reactive cybersecurity protection strategy where your information technology department shuts down all systems as soon as they detect anything suspicious until they resolve the issues.

Most of the time, cybercriminals don't cover their tracks, especially when they don't expect to be caught. So, have your IT security teams analyze all server logs frequently and conduct cybersecurity framework audits to make sure their integrity is intact. You should also invest in network forensic analysis tools that analyze information flow through your network.

Most malicious firewall and ransomware attacks are a result of human error. Some of them are even caused by your employees. In fact, statistics show that around 94% of organizations have suffered cyber security threats due to insider breaches. Make sure you scan all new hires to ascertain that they aren't a cyber risk to your organization. You should also put measures to discourage employee negligence, which is a major contributor to cyber risks.

9. Install Firewalls

Cyber security threats are becoming more sophisticated, and everyday hackers come up with new ways of accessing data. So, you should defend your networks from cyber attacks by installing firewalls. A reliable system will effectively protect you from brute attacks or prevent security incidents from causing irreversible damage.

In addition to this, firewalls monitor your network traffic to identify any suspicious activity that could compromise your data integrity. They also prevent complex spyware from gaining access to your systems and promote data privacy.

Be very careful when choosing the right firewall for your organization. Go for a system that gives you full security control and visibility of your application and networks. It should also have protection and prevention capabilities as well as a streamlined security infrastructure.

10. Create A Secure Cybersecurity Policy

Your organization's cybersecurity is highly influenced by the policies that you have in place. Do you have guidelines for data breach prevention and detection ? How often do your IT teams conduct risk assessments or penetration testing? It all starts with your guidelines!

Go through your existing policies and identify any loopholes they may have. Some of the guidelines you should have in place include;

• Disaster recovery : If a breach occurs, a disaster recovery plan ensures that your employee and IT teams know the next course of action. It's aimed at reducing the amount of time that you are offline, thereby ensuring that your operations resume as soon as possible.
• Access control/management : this policy highlights the parties that can access sensitive information, reducing the risk of unauthorized access. Data mishandling has both financial and legal consequences, so make sure your access management policy specifies which stakeholders are allowed access to what and under which circumstances they can share this information.
• Security testing : the policy should state the frequency of your cybersecurity tests. This allows you to uncover vulnerabilities before it’s too late. Some of the security tests that you should conduct include; vulnerability scanning, security posture assessment, penetration testing, ethical hacking, cybersecurity assessments, etc.
• Incident response plan : this is documentation of the steps and procedures that should be implemented in case of a breach. It also highlights the responsibility of key information security players and reduces your organization's response time. Learn how to create an Incident Response Plan >

Make sure your plan also has a clause that highlights the consequences of data mishandling as well as the legal steps that will be taken on employees that are the cause of a breach. This will discourage insider attacks.

Tips to Develop Your Cyber Risk Management Strategy

In addition to these 10 ways to reduce your cybersecurity risk, consider these tips when developing your cyber risk management strategy.

Protect Your Organization From Cybersecurity Risks Today

During the first half of 2021 alone, over 118 million people were impacted by data breaches. In fact, statistics of this year’s data breaches were significantly higher than those of the past year. The best way to ensure that your organization is safe is by taking proactive measures. This includes:

• Creating data backups and encrypting sensitive information.
• Updating all security systems and software.
• Conducting regular employee cybersecurity training.
• Using strong and complex passwords.
• Installing firewalls.
• Reducing your attack surfaces
• Assessing your vendors
• Having a killswitch in place.
• Creating solid cyber risk policies and strategies.
• Protecting your physical premises.

Reviewed by

Kaushik Sen

Ready to see upguard in action, ready to save time and streamline your trust management process, join 27,000+ cybersecurity newsletter subscribers, a complete guide to cybersecurity.

Related posts

What are security ratings cyber performance scoring explained.

How to Manage Third-Party Risk in a World of Breaches

What is third-party risk management (tprm) 2024 guide, introducing upguard's new sig lite questionnaire.

Scaling Third-Party Risk Management Despite the Odds

11 third-party risk management best practices in 2024.

• UpGuard Vendor Risk
• UpGuard BreachSight
• Product Video
• Release notes
• SecurityScorecard
• All comparisons
• Security Reports
• Instant Security Score
• Third-Party Risk Management
• Attack Surface Management
• Cybersecurity

More From Forbes

14 smart ways to manage business risk.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

It’s impossible to truly eliminate risk when it comes to economic decisions that are best for your business. Decisions have to be made even when we don’t know all the facts and are unsure of the future. For instance, market regulations are an uncertain environment where the stakes are higher and risk-taking isn’t optional if you want to move forward.

So how do you account for those uncertainties when trying to make informed, smart decisions for your business? Below, 14 Forbes Business Development Council members explain how to manage risk in uncertain economic situations.

Forbes Business Development Council members share tips on managing risk in business.

1. Look To Past Situations

In every business decision, you have risks and uncertainties. First, you should try to define all risks. If you have had similar situations and experiences, have a look at the past to look for solutions. Create backup plans for different scenarios and be flexible enough to adjust your decision. - Hendrik Bender , Sovereign Speed GmbH

2. Think Through Multiple Scenarios

You’ll never have 100% of the information you need to make a decision. The goal is to manage the risk and make calculated decisions. I’ve found thinking through at least three different scenarios helps me understand potential risks. Best-case, likely-case and worst-case scenario planning is a good way to flush out possible outcomes. I also try to consider unplanned consequences that could arise. - Julie Thomas , ValueSelling Associates

Best Travel Insurance Companies

Best covid-19 travel insurance plans.

Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?

3. Eliminate Business System Silos

Siloed business systems are too rigid to handle uncertain risk. Signals often exist but in disparate places and forms—such as from regulators or affected customers talking with your sales, support or finance teams. Businesses should feed signals from across functions into a unified view for visibility into cash position, future cash inflow and actions that can influence deals or renewals. - Dan Brown , FinancialForce

4. Control Whatever Variables You Can

Stay informed and analyze past data sets that are similar. Most importantly, control the variables that you can while being sure that you fail fast. Each failure brings you one step closer to success! Just don't make a habit of accepting failure. - Donald O'Sullivan , Pegasystems

5. Trust Your Intuition

This is the exact capability of visionary leaders, who search not only data but facts as well, learn from historical businesses or projects, apply SWOT, calculate risk and determination of mitigations and make a Plan B for consequences. These leaders not only trust their intuition but also never stop learning, taking risks and setting the future. - Majeed Hosseiney , Elements Global Services

6. Be Prepared For A Pivot

I recommend a combination of approaches when managing risk. A SWOT analysis can help steer a company or team in a promising direction. I also recommend a pivot strategy if market regulations drastically change. Start with Plan A, but quickly pivot to Plan B if necessary. Do quarterly or even monthly evaluations to determine if you are staying on track. - Matthew Rolnick , Yaymaker

7. Research And Assess Market Trends

The future is always uncertain. Leaders must research the market and trends and then assess the information at hand today and make a decision. Sometimes, the best decision is to wait until the future is a bit more certain. - Jan Dubauskas , Healthinsurance.com 

8. Engage Regularly

Managing uncertainty requires being engaged and remaining informed so decisions can possess the flexibility needed to accommodate change. Being engaged with customers, regulators and suppliers enables you to help shape their direction in a manner positive to your business. Remaining informed of their leanings enables you to build in the flexibility needed to accommodate their changing positions. - Nathan Ives , DataGlance, Inc.

9. Embrace And Accept Change

Leaders should embrace change as the market will change, in good times or tough times. Accept this change and be able to pivot when needed to adapt to new normals, new regulations and other conditions. No one will ever have 100% of the information needed to make decisions, so thinking through different scenarios that could present themselves is always beneficial. - Michael Hines , Demand Management, Inc (DMI)

10. Make A Risk Management Plan

Apply standard project management and institute best practices for risk management. Make a risk management plan for your business by identifying potential risks and quantifying them the best you can. Plan how to best mitigate those risks based on their likelihood. Create a risk register to track it all and revisit the plan on a regular basis to keep it current as conditions change. - Michael Fritsch , Confoe

11. Break Potential Risks Into Smaller Risks

One strong point in favor of managing risk is to go by experience. Experience does help, but the same experiences will not work for Covid. Depending on the situation, I strongly suggest breaking risks into smaller risks. For smaller risks, identify what impact will be caused. Go back and check if any of the experiences of an individual or an organization will help. If it will, apply it. If not, address the risk. - Ashok Bhat , Acronotics

12. Prioritize Contingency Planning

Contingency planning has to be part of a firm’s armor when it comes to managing uncertainty. Starting early to plan through what-if scenarios and having pseudo-teams focused on contingency and implementation will be essential. Firms can also work with industry peers and industry bodies to ascertain industry assumptions; these will be critical for benchmarking through contingency planning. - Oluchi Ikechi , Accenture

13. Determine If You Can Manage The Risk

Weigh the risk and determine if you can manage it. Start by identifying and evaluating risk, which includes assessing its probability and impact. What do you then do with it? Based on your cost-benefit analysis, you may choose to accept it, take steps to reduce it or transfer it to someone else. A practical analysis will lead to more informed strategic decisions in the face of uncertainty.  - Chor Meng Tan , Wiley

14. Think Through The Worst-Case Scenario

Paralysis by analysis can cause unnecessary indecision. Asking yourself, “What is the worst that could happen,” can put circumstances into perspective and help you be more decisive during times of uncertainty. Oftentimes, the worst-case scenario is manageable. - Brandon Rigoni , Lincoln Industries

• Editorial Standards
• Reprints & Permissions