When many of us think of trade secrets, we think of it refers just to secrets big corporations have, like the secret formula for Coca-Cola. But the reality is that small businesses also have trade secrets, information that, if it is stolen, could cause big problems.
Say, for example, you operate a bakery that is known far and wide for its fantastic breads and cookies that are based on recipes handed down from your grandma. You carefully guard these recipes, of course, so then imagine your consternation if an employee leaves, set up his own bakery on the other side of town and starts making those exact same breads and cookies.
Or suppose you run a small marketing agency that has developed a special method for doing consumer research that gives you a distinct competitive advantage. What would it mean if your partner walked out the door with that process and set up her own shop down the street? And to make matters worse, she also took your carefully guarded client contact list with her.
Sadly, employees perpetrate an estimated 50 to 60% of trade secret thefts. Former business partners are also major source of such thefts. Here’s an informative infographic with much more information on what trade secrets are and best practices you can put in place to protect the secrets that give your small business its uniqueness.
Source: Kelly Warner Law