Start-up entrepreneurs and small business owners have a lot on their plates, and protecting all of the hard work and resources that have gone into the business needs to be a priority.
One way to protect confidential information from being exposed to those outside your organization is to have a non-disclosure agreement (NDA) at-the-ready.
With a NDA, the intent is to keep private information private. The agreement should be used whenever engaging with contractors, outside investors, or other business partners or suppliers who could unduly expose proprietary company information, including intellectual property or other business assets.
More Reasons Why You Need a NDA
While the primary purpose of a NDA is to ensure confidentiality, it can also instill a level of trust in the people you engage with – be it for negotiations or potential investment opportunities.
That said, you should always insist on a signed NDA even with people you inherently trust. You simply never know what could go wrong, and having a NDA is an easy and inexpensive risk mitigation strategy you can use to protect yourself and your business.
Moreover, NDAs offer clarity regarding the expectations of the relationship. A thorough agreement should clearly spell out what information needs to remain confidential and define the scope of the confidentiality obligation. To read more about other important elements to include in the confidentiality contract, be sure to read this post.
As your Florida business grows, make sure you put in place important safeguards to protect your proprietary information and business assets. A NDA is one way to do that. For help with all of your small business contract needs and legal matters, get in touch with our commercial law team at Silverberg|Brito, PLLC.