I would love to ask, but what about other commercial interest stealing business?

[The Real Andy]

I have an absolute cracker of client who we are supplying with a
proposal to develop, install and maintain some equipment. The contract
is not huge in monetary terms, however, we are looking into a third
phase which could potentially be worth millions.

I have done some research and have found that some technology is
available, albeit maybe not good enough for what we want. I really
want to contact some companies for further information, but being a
small business looking into a contract that is usually handled by big
business. I am a little concerned that the larger companies may just
come in over the top of us and go straight to the client. I would also
love to put the question forward here too. How does one go about
protecting potential business from a larger company when you are the
one that has the idea and has found the client?

The big bonus is that if we could pull this off, there is potential
for other clients to get involved also. There is also a lot of
'spin-off' business opportunity too. Is not often that this kind of
potential business opportunity comes around for a small company, so I
don't want to let it slip.

Andy

 

[DaveC]

How does one go about
protecting potential business from a larger company when you are the
one that has the idea and has found the client?

Here is where lawyers get involved (they're like cockroaches -- you find them
in everything, sometimes).

Get a good non-disclosure agreement from (where else?) a lawyer. Indicate on
the agreement the penalties the signee agrees to if they disclose any of your
idea, or contact any person at the your client firm. Of course, this doesn't
keep the engineering firm from telling a 3rd (4th?) party and having them
approach the client.

If the client is contacted by anyone and develops a relationship around you,
it would be difficult to disclose how this occurred, short of investigating
and filing a suit and subpoenaing records of the two companies.

Can you develop this equipment with the engineering firm without input from
the client (ie, can you avoid having the two companies meet)?

The best way, I'd think, is to make it lucrative for the engineering firm to
work with you. Don't be greedy; share the profits generously, such that the
added advantage of going around you, plus the risk of law suit, is
less-than-attractive.

Good luck,

 

[John Fields]

I have an absolute cracker of client who we are supplying with a
proposal to develop, install and maintain some equipment. The contract
is not huge in monetary terms, however, we are looking into a third
phase which could potentially be worth millions.

I have done some research and have found that some technology is
available, albeit maybe not good enough for what we want. I really
want to contact some companies for further information, but being a
small business looking into a contract that is usually handled by big
business. I am a little concerned that the larger companies may just
come in over the top of us and go straight to the client.

---
Why do you have to tell anyone who your client is in the first place?

I wouldn't, and all anyone needs to know is that _you_ want the
information and what you're going to do with it is your own business.
---

I would also
love to put the question forward here too. How does one go about
protecting potential business from a larger company when you are the
one that has the idea and has found the client?

---
Just keep your business to yourself and don't blab about who your
clients are to potential competition.

Remember: _You're_ in charge and what you tell or don't tell is up to
you, not them.
---

 

[DaveC]

Why do you have to tell anyone who your client is in the first place?

Might require on-site evaluation of client's location (ie, manufacturing
equipment, etc.).

Other than that, I agree: fermez la bouche (keep the mouth shut), as my
French teacher used to tell the kids.

 

[John Fields]

---
And NEVER, EVER, even _hint_ at what your idea is to potential
competition, or _anyone_ for that matter. Some folks are pretty good
at constructing complete sentences from a few carelessly tossed-out
words, (loose lips really _do_ sink ships) and you certainly don't
want that to happen. As far as divulging to your client goes, you'll
need a good NDA and an attorney to make sure you've got your ass
covered. If your client wants exclusivity and their own NDA, then
it's a no-brainer; get a lawyer, or theirs will see to it that you're
thoroughly raped.

 

[Spehro Pefhany]

I have an absolute cracker of client who we are supplying with a
proposal to develop, install and maintain some equipment. The contract
is not huge in monetary terms, however, we are looking into a third
phase which could potentially be worth millions.
Okay.

I have done some research and have found that some technology is
available, albeit maybe not good enough for what we want. I really
want to contact some companies for further information, but being a
small business looking into a contract that is usually handled by big
business. I am a little concerned that the larger companies may just
come in over the top of us and go straight to the client. I would also
love to put the question forward here too. How does one go about
protecting potential business from a larger company when you are the
one that has the idea and has found the client?

There are some situations where the best action is not to do anything-
you can't (or are very unlikely to) win. Make sure you're not in such
a situation first. For example, if your client has elements within the
company who will shop your ideas after/during the first phase, you may
be spinning your wheels. I'm sure we've all seen RFPs that are written
to strongly favor one supplier over another. Hopefully you know your
opposition and how quickly they respond. Some are unbelievably
lethargic (months or even years before top management knows you exist
in their market space), others can react surprisingly quickly if their
structure is set up to accommodate the action.

Then, if you must contact potential competitors (as potential
suppliers to you) to proceed, try to get to the technical people (not
the sales people), and construct a viable cover story that will allow
you to get the information you need without disclosing too much.
Change the industry, change some other stuff, play dumb ("my boss
asked me to find out..."). Make sure you know enough to make this
work, and think a couple of steps ahead (at worst, "get back" to them
with more information if you're stuck.

There are some good techniques outlined in "Competitor Intelligence"
(Fuld) and the aging, but still useful, "Entrepreneur's Manual"
(White).

The big bonus is that if we could pull this off, there is potential
for other clients to get involved also. There is also a lot of
'spin-off' business opportunity too. Is not often that this kind of
potential business opportunity comes around for a small company, so I
don't want to let it slip.

Andy

Check it out, and if it's a go, go for it 110%, don't let up until you
make it. Bulldog tactics.

Best regards,
Spehro Pefhany

 

[JeffM]

don't blab about who your clients are to potential competition.

And NEVER, EVER, even _hint_ at what your idea is to potential
competition, or _anyone_ for that matter.
John Fields

I was pretty sure we were going to hear from Fields on this one.
The voice of experience on a client trying to screw you.
http://www.google.com/search?&q=Austin-Instruments-v-Loral
(John won.)

 

[Ken Taylor]

I was pretty sure we were going to hear from Fields on this one.
The voice of experience on a client trying to screw you.
http://www.google.com/search?&q=Austin-Instruments-v-Loral
(John won.)

Cool - rates a mention in law courses.

Ken

 

[The Real Andy]

There is two companies in my area that are involved in this business.
Both turn over sums of money that I cant even contemplate. It doesn't
take much skill to find out which of the two companies we are dealing
with.

I wouldn't, and all anyone needs to know is that _you_ want the
information and what you're going to do with it is your own business.

That's the problem, i ask the manufacturer to send me information
about a very unique line of business to my address. 1+1=2 and they are
directly approaching my client. We have pretty much won the contract
for the first two stages, it's the potential third stage that we have
provided some ideas for that is worth the real big bucks.

---


---
Just keep your business to yourself and don't blab about who your
clients are to potential competition.

Remember: _You're_ in charge and what you tell or don't tell is up to
you, not them.

Unless you do semi fab, then you probably can't help, sorry.

 

[The Real Andy]

The best way, I'd think, is to make it lucrative for the engineering firm to
work with you. Don't be greedy; share the profits generously, such that the
added advantage of going around you, plus the risk of law suit, is
less-than-attractive.

A joint venture would be my preference. However, its like asking TI or
Motorola to join up with a small company that turns over 1.2M anually.
We have about 15 staff. They would probably laugh and walk all over
us. You never know though, do you?

 

[Rich Grise]

A joint venture would be my preference. However, its like asking TI or
Motorola to join up with a small company that turns over 1.2M anually.
We have about 15 staff. They would probably laugh and walk all over
us. You never know though, do you?

Write up a plan that shows how it's beneficial to _them_ to do business
with you, and present that.

And it's true, you never know. What's the worst that could happen?
And, maybe more importantly, what might happen if you do nothing?

Good Luck!
Rich

 

[Guy Macon]

That's the problem, i ask the manufacturer to send me information
about a very unique line of business to my address. 1+1=2 and they are
directly approaching my client. We have pretty much won the contract
for the first two stages, it's the potential third stage that we have
provided some ideas for that is worth the real big bucks.

I (among others) provide the service you are looking for. I have
been hired by companies and individuals who for various reasons
don't want to ask for information directly but who need the person
asking to be able to answer technical questions. It's usually a
four hour (my minimum) job spread out over a week or so to call, get
the information plus whatever literature is available, get it in
the mail, and remail it to you. This is fairly standard consulting
work, and any number of people who use this newgroup can do the
same job for you.

 

[John Fields]

I was pretty sure we were going to hear from Fields on this one.
The voice of experience on a client trying to screw you.
http://www.google.com/search?&q=Austin-Instruments-v-Loral
(John won.)

---
Fortunately (unfortunately?) it wasn't us...

There's another Austin Instruments in Reading, MA

http://www.austinst.com/

so it's probably them.

 

[JeffM]

There's another Austin Instruments in Reading, MA

so it's probably them.
John Fields

Oh. Well, that's different. Never mind.
http://www.gothamist.com/images/2003_7_gilda.jpg