Entrepreneurship and the NDA

If you are an entrepreneur, at some point in the future (if it hasn’t already happened), you will need to sign a Non-Disclosure Agreement, or you will want to have another party sign one for you. Non-Disclosure Agreements are essential for protecting information, and that is why having an NDA ready is essential for any start-up.  You need to protect your information, and that is what an NDA does.

 

Entrepreneurs Need NDAs

If you are an entrepreneur, chances are you will be outsourcing a lot of work.  This makes sense because you are just starting out and don’t have the huge infrastructure behind you that is offered at major companies.  However, outsourcing projects involves a risk that many people take for granted – your contractor can steal your ideas.

The most common types of outsourced work includes programming, web development, writing, and accounting.  Each of these types of work requires access to information that is most likely confidential in a start-up.  You are likely going to need to build your software or hardware, develop a website, write copy and press releases, and many other types of activities BEFORE you even launch.

Many entrepreneurs rely on being first to market for success.  If someone were to steal your ideas pre-launch and beat you to market, it could be devastating to your business.  This is where Non-Disclosure Agreements are so important.

 

Getting a Non-Disclosure Agreement

There are many different ways to write up a non-disclosure agreement.  You can have a lawyer draft one, you could use a service like LegalZoom, or there are many free ones available on the web.  Depending on the level of security you require, you should make an informed choice about what path to take in getting a non-disclosure agreement drafted.

Once you have one drafted, it is essential that you get any contractors and freelancers you use to sign the form and return it to you BEFORE any work takes place, and even before you discuss the scope of work involved.  If the agreement isn’t signed, and the contractor steals your idea, you could be out of luck moving forward.

 

The sad fact is that, while there are many good contractors out there, there are just as many scrupulous individuals who are looking to make a quick buck.  Don’t fall victim to having your intellectual property stolen, protect it with a non-disclosure agreement.  It can save you millions in the future.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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