5 Ways Businesses Can Protect Their Trade Information
When you go into business, you will develop a lot of systems and procedures that are specific to your company. Those are things that you will probably want to keep a secret from your competition so that you can maintain your business. As your business grows, though, it can be difficult to keep those secrets since more people will have to know at least the basics of how you run your company. Knowing a few ways to protect your business's information will help keep competitors from stealing all of your secrets and information.
1. Determine What You Need to Protect
Before you can start implementing strategies to protect your trade secrets, you need to know what those secrets are. The specifics vary based on the business, but it includes any sort of intellectual property from formulas you use to how you execute certain tasks in your business. Make sure you know what information you need to stay secret so that you can take the proper means to protect that information. If you're not sure, make more information secret than you think because once something's public knowledge, you can't take it back.
2. Only Tell People Who Need to Know
If you have a larger company, odds are you have many employees at all levels of your business, from executives down to entry-level associates. In many businesses, not all employees have to know the details of everything your company does. When it comes to trade secrets, only tell the people that need to know those secrets to do their jobs. Most entry-level employees don't need to know the secret formula to a restaurant's best selling dish, and retail employees don't always need to know the names of manufacturers that you work with.
3. Decide on Different Levels of Knowledge
Of course, your entry-level employees won't need to know much company information if any at all. On the other hand, top executives will probably have access to all of your business's secrets. However, there should also be a middle ground for management and other employees who need some information but not all of it. As you figure out what information can be shared with employees, consider who should know what. You can create different levels of confidentiality within your company, and that can help you ensure people have access to the information they need and nothing more.
4. Require Written Agreements
Before you give employees or executives access to your company's secrets, have them sign an agreement stating that they won't share the information. This way, you have written proof that they will protect your company, and they will know how serious and important the information is. A written agreement is an essential tool if your information does leak and you need the help of a lawyer specializing in trade secret law. If one of your employees goes to work for a competitor, this agreement should prevent them from sharing your secret, and it gives you legal protection if not.
5. Take Action When Information Gets Leaked
While no one wants their business's trade secrets to get out, it can and does happen, and you should be prepared in case you have to face that. To prepare, make sure you enforce any agreements that you make with employees so that they know you're serious. If your competitors get ahold of your trade secrets, contact a lawyer, and they can advise you on what steps you need to take to protect your information. Assuming you have a written agreement with employees, you can use that to back up your case. As soon as you think your trade secrets might be compromised, don't wait until it's a sure thing. Instead, acting fast will help you clean up the potential mess or even keep the information from getting to even more people than necessary.
Protecting your business's trade secrets is almost as important as protecting your business itself. While you should be able to trust your employees with confidential information, make sure you have a confidentiality agreement and that you enforce it. That way, you can do your best to protect your business and its intellectual property.
