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Hey Entrepreneurs, make sure to request to sign an NDA!

Updated: Jun 27

If you've spent time in the land of corporate culture you'll be very familiar with Non-Disclosure Agreements (NDAs) Simple form or Mutual, but maybe not if you are starting as an Entrepreneur. Why is it important?

What is it?

The Non Disclosure Agreement, also known as a confidentiality agreement, is a legal contract between at least two parties, that enables to talk openly about confidential material that may include your plans, your ideas and your metrics with a third party without fear of exploitation or your material being copied or used.

By signing an NDA, parties agree not to disclose or use the confidential information for any purpose other than what is outlined in the agreement.

NDAs are commonly used in business settings to protect sensitive information, such as trade secrets, business plans, client lists, and proprietary information. But does an NDA offer the startup entrepreneur real protection?

Why is it important?

While you might be just starting as an entrepreneur and the potential of dispute may not be what you want to think about right now, it is still key to protect yourself and protect your business.

The barrier to entry for new businesses is very low and you have not established your brand in the market place yet. As such, you want to be very careful and very choosy about who and what information you share about your business.

In the case where you have to share confidential information, you may be surprised to know that your NDA will remind the other party that your discussions are confidential and need to remain as such. It is an important step depending on who you are engaging with, because:

  1. They may genuinely not be aware that the information is confidential and hence you have taken the initiative to gently and kindly let them know.

  2. They understand the concept of NDA but would like get information about your venture and how you may have solved a particular challenge. In this case, you will have to make a decision as to whether you wish to share or not share the information.

  3. It demonstrates that you have done your homework, that you have a certain level of professionalism and signals that you are ready to defend your business.

While in certain cases, asking the other party to sign an NDA could put them off, particularly if it is not something they have seen before, your Intellectual Property / Trade Secrets / Client Lists and the likes are your assets and you need to protect your assets. In these cases, present the ask as necessary and refrain from sharing confidential material if the other party is not comfortable signing.

How Can I Use it?

Just having an NDA signed certainly doesn't prevent anyone from taking the information you have kindly shared and exploiting it for their own advantage, copying it, using it and even engaging in the market with it (that is the worst case scenario, and hopefully you have done something with it before it got to that point).

While you may not have the time or inclination to engage in disputes, the NDA has just offered you a mechanism to pursue legal recourse and provided you with negotiating power to find a solution.

Take the Next Step: Book a Free Demo!

Ready to take the next step in your business journey? Our team is here to help you get started. Book a free demo with our experts to explore how we can support your vision and set you up for success. Discover tailored solutions and personalized strategies that will give you a head start. Don't wait—reach out today and let's turn your dreams into reality!

urBIZassist believes in the power of "know-how" to transform lives and positively impact the world around us.

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