Businesses are founded on ideas. And considering the competitive nature of entrepreneurs — and the business world in general — ideas can be more valuable than money. For this reason, you might want to think about a non-disclosure agreement or NDA. This legal form helps keep your business’s private information under wraps so that you’re the only one who capitalizes on your inspiration.
A non-disclosure agreement is basically a contract. Its main purpose is to establish a confidential relationship with a subcontractor, new employee, business partner or anyone who’s getting a behind-the-scenes look at the great ideas that aim to put you ahead of the competition. In these situations, you’re really letting people into your confidence, and luckily a non-disclosure agreement can legally safeguard your valuable information.
For example, are you launching your business with a new product, like a drink with an incredible new formula? Or does your product have a special design that really stands out? Are you putting together an innovative workflow process or manufacturing system that’s never been done before? All of these things, sometimes called trade secrets, can be listed in writing as information that needs to stay in-house. But the non-disclosure agreement can cover anything you designate — like personal information about your employees, partners or anyone else involved with the startup. Continue reading