In addition to the tangible assets that your business has, it also most likely has a number of intangible assets, which include everything from customer lists to the way you produce what you sell. These intangible assets are usually called trade secrets or intellectual property, with intellectual property being the broader term that includes patents, copyrights and trademarks.
These trade secrets are a very valuable asset to your business. Think how happy your competition would be to learn about them. If you don't protect yourself, they easily could, simply by losing one of your employees to a competitor. There is a legal basis for prosecuting trade secret violations called the Uniform Trade Secrets Act, which has been adopted by many states. However, no one wants to go down the path of a lawsuit if it can be avoided. Here are some ways that prudent businesses protect their business trade secrets.
Identify what is confidential and label it as suchEveryone needs to understand what specific information you don't want to go outside of the business. Employees cannot be expected to guess what they shouldn't say. Communicate it clearly and reinforce the message regularly.
Train new employees about expectations
When you hire someone new, make certain that learning about confidentiality and your expectations about it are part of the training for their job. Be explicit about how important it is to the company and their success in it.
Have employees sign a nondisclosure (confidentiality) agreement
A nondisclosure agreement is a legal document that puts in writing what information you want kept confidential. Not only is this an opportunity to put in writing exactly what your expectations are, but it also legally binds the employee to adhere to the rules.
Limit access
Employees should only have use of trade secrets that are vital to them performing their job. They should also know not to share that access with anyone who is not authorized. Lock up vital documents they are not in active use.
Change passwords regularly
Password protect everything that is important. Get creative with your passwords, changing them frequently and using multiple ones for different types of files.
Shared documents
It is amazing how many secrets are discovered by simply going through someone's trash. Paper shredders are invaluable. Have one and use it.
Conduct exit interviews to debrief parting employees
Business owners often miss a huge opportunity when they don't conduct exit interviews. Of course, it is difficult, but it is very beneficial. Not only can you gain valuable information from them about what is working and not working in your business, but it is also a chance to remind them of their obligations not to disclose information about your business.
Review security systems annually and when major changes occur
As with every aspect of your business, how you secure your trade secrets should be looked at every year. And, as your business changes, so should your systems for keeping it safe.
In a competitive world people will often go to great lengths to gain a small edge. Adding a few simple preventive procedures to your daily business operation can make a huge difference in protecting your business from predatory competition.
