I want to start a new buisiness but need to know a few things first

michael1983l

First of all I believe I have come up with a unique Idea that will be very useful for everybody, but I need to know a few things before I know it is viable. Obviously I am not going to give away what my idea is.


Questions

1) When you take a pre authorisation payment by debit/credit card (like for when you put a deposit down on a car, where they block the money so they can take it in future if you damage the car) how long will the banks allow you to have this block on the account for and once the authorisation request is issued will the banks honour the transaction 100%?

2) Obviously online fraud is rife these days and my buisness could be potentially at risk to fraud, how can I protect myself against this... Insurance? Will the bank protect me?

3) I will be looking for an investor, however I am reluctant to give them my idea because they could just go out and by-pass me. How do I protect my idea whilst seeking investors?

Thanks in advance for your help guys.

steve1980

If you're not going to tell anyone what you're doing how on earth can they help you?

michael1983l

steve1980 wrote: »

If you're not going to tell anyone what you're doing how on earth can they help you?

If you read the question again I am not saying I won't tell them I am asking how to protect my idea when I do? Or how to go about protecting my idea whilst doing this process.

Horace

If it is a product then you can patent it.

If it is a service and you have a quirky name then you could apply for it to become a trade mark and you would do this through the Intellectual Property Office (av. cost is £250, however, if you used a specialist lawyer then they can charge £600 upwards plus VAT). https://www.ipo.gov.uk

If you are using paypal then you have some protection but I don't think it is much. Why not ring a bank and ask what protection they would give you if you say held credit card details before processing the sale? Actually, I don't think that when you book a hotel for instance and they take your credit card details that they actually do anything with those details until you actually turn up - if you don't turn up then as long as they have told you that they will take money from your card then they will take payment from your card.

I wouldn't worry about investors (business angels) pinching your ideas, I don't think that they would if they did that to every person who approached them for funding then they wouldn't be investors.

Your first stop would be the Intellectual Property Office and then go from there. I am aware that if you tell people without protecting your intellectual property then it is considered to be in the public domain and you can no longer protect it.

michael1983l

Horace wrote: »

If it is a product then you can patent it.

If it is a service and you have a quirky name then you could apply for it to become a trade mark and you would do this through the Intellectual Property Office (av. cost is £250, however, if you used a specialist lawyer then they can charge £600 upwards plus VAT). www.ipo.gov.uk

If you are using paypal then you have some protection but I don't think it is much. Why not ring a bank and ask what protection they would give you if you say held credit card details before processing the sale? Actually, I don't think that when you book a hotel for instance and they take your credit card details that they actually do anything with those details until you actually turn up - if you don't turn up then as long as they have told you that they will take money from your card then they will take payment from your card.

I wouldn't worry about investors (business angels) pinching your ideas, I don't think that they would if they did that to every person who approached them for funding then they wouldn't be investors.

Your first stop would be the Intellectual Property Office and then go from there. I am aware that if you tell people without protecting your intellectual property then it is considered to be in the public domain and you can no longer protect it.

Thanks, that is useful. It is a service that will be offered. I am busy putting a buisiness plann together to approach the bank. I am hoping that if we offer 50% of the setup costs that they might put up the second half.

paddyrg

Ask your bank about #1

#2 is a HUGE question and will depend so much on the way you do business, nature of the service, etc.

#3 you can ask your lawyers to draw up an NDA/no compete agreement, frankly it won't stop anyone stealing the idea, but it will make it less convenient to do so. But most investors aren't interested in doing your idea for themselves if they can see the idea already working and you having a head start, it is easier to invest, let you do all the work, and cream the upside!