Posted by: Mark Sorenson | February 27, 2010

Should You Use an NDA?

I have come to the conclusion that most entrepreneurs give themselves a lot more credit than they deserve. They have to. How else are they going to get people to buy into their game-changing ideas? I have seen countless entrepreneurs give presentations or talk about their ideas without actually explaining what it is. They want people to sign a Non-Disclosure Agreement before they will share with you their stroke of genius. While there may be some risk in divulging your “secret sauce” to just anyone, you will find that most people don’t care about your idea like you do. No one else will have the passion for your idea like you do.

Another misconception that many entrepreneurs have is that they are the only ones who have thought of their idea. Chances are there are at least 10 other people who have not only thought of the exact same thing as you, but are also trying to start a business around it.

These are signs of inexperienced entrepreneurs and you find them young as well as old. If your idea is as good as you think it is, then you should be sharing it with as many people as you can. The truth is that successful entrepreneurs excel at executing their ideas, not thinking up ideas.

If you ask any serious investor if the will sign an NDA with someone prior to them pitching their idea, they will tell you “no”. And why would they? They see so many deals from eager entrepreneurs every day. Why would they be held liable for something that they don’t care about? The wouldn’t. So if you’re trying to get funding from investors you can rest assured that your idea is relatively safe with the investors.

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