The NDA or Non-Disclosure Agreement is a staple for almost every business. It’s a legal document that comes in handy when you have sensitive information to share with another party, and you wish for them to respect your confidentiality. Although not every idea you come up with has to be protected with an NDA, it’s good to know when you’d need to prepare one, or specifically who you should prepare one for.
Here are a few parties that you’d most likely use a non-disclosure agreement for:
So your business is running smoothly, it’s fairly successful in its field, and you’ve got great employees that work hard to keep it that way. But who’s to say they can’t take what they’ve learned from your company, resign, and start businesses to potentially rival yours? They might not even want to compete; maybe they just casually run their mouths to friends who also have friends, and one of these connections could spill the tea about your company to the rest of the world. I’m sure you wouldn’t want to find yourself in either situations, so you can bet a handsome dollar that an NDA is especially useful for your current employees and newly-hired rookies.
You can draft an NDA using the many tutorials available online, or you can type something along the lines of confidentiality agreement form singapore on google, where you can find a template that’s either free to download or one that comes with online support at a reasonable price.
Although most investors or potential partners are easily turned off by even just the mention of a non-disclosure agreement, you should have one ready if you plan on going deep into the business with them, where financial or personal information is of importance in the conversation. If they don’t agree to signing the form, it’s either because they’re considering multiple deals and you just happen to be one of them, or they have ulterior motives they don’t want you to know about.
Maybe your business isn’t doing well, and you’d be better off if you sell it to another company. The buying company would want to look at everything in your company, and that includes all the sensitive information you could be hiding behind a vault. To protect yourself from unsure buyers, or even those with good intentions, make sure to have an NDA ready for them to sign before you give out any nuggets for them to chew on (or save for later.)As a responsible entrepreneur, you should do whatever it takes to safeguard your information. As they say, knowledge is power, and you wouldn’t want that power to fall into the wrong hands.