If you’ve got a great business idea and you’re worried that somebody might steal it from you, here are my three cents on whether or not you need a non-disclosure agreement (also known as NDA).
You might be hesitant to share your ideas with others. But if you don’t share ideas, you will be rolling solo and it’ll take much longer to reach your goals. So let me tell you, you’re not alone. A lot of entrepreneurs wrestle with the same problem, especially when it’s about something new and different.
I’m going to share three suggestions and give you a little bit of background on my experience with NDAs.
NDA is important because the other person you’re going in business with, might not respect it. But before they disclose your idea, they will think twice. I understand that it takes a lot of money to go to courts, and only big companies do it – because they’ve got the money. But it’s still important to protect your idea and proceed formally.
I run a series of startups groups here in London and I make everybody sign an NDA before they come to the first meeting because in the groups we start talking about sensitive business matters that you wouldn’t want other people to know, share or leverage.
Secondly, it’s more about execution. If you’re able to execute your idea first, you’ll win. VCs don’t sign NDAs because they are in bed with so many different startups!
Third, you need to understand the person you’re going into business with. Do not bet a lot on them if you’re not familiar. Communicate with them more often and be formal. And execute fast. Take your idea to the market and validate it. You don’t need to share too much information. Just enough to get them interested and then slowly as they earn your trust, you divulge more and more.
So, here were some tips that I wanted to share. You can create a free non-disclosure agreement using free NDA templates at ContractAwesome.