On NDAs and My NDA Policy

My NDA Policy ~ I have decided to starting signing them! : Texas Startup Blog discusses Non-Disclosure Agreements and how the author has decided to react to it.

I think it is brilliant.

Also of interest are the other linked articles such as To NDA or Not to NDA? That is the question.

My stance on NDAs is that i only sign specific ones that actually relate to confidential information. And i only do that to make newer clients feel more at ease. Frankly, i have turned down some projects before because of this.

Honestly, if the strength of your business idea relies on the assumption that people won’t find out about it. Then I don’t think you have much of an idea. Certainly not one to base a business on.

I often brought in Gary Hoover, founder of Hoovers, BookStop, and TravelFest as well as author of Hoover’s Vision as a guest speaker. He says he talks to so many businesses and students that when someone asks him to sign an NDA he proceeds to ask them ‘Why?’ and immediately wonders about the viaObility of the concept.

This quote from the linked article shows that i am not the only one who thinks this way. And this quote comes from a serial entrepreneur!

One designer i was working with, after telling him that the project is funded by an angel investor, expressed interest in meeting the investor to tell him about all his “great ideas.” He pitched his greatest idea to me, and it was neither original nor did it have any revenue model(or even a future one). I do agree with the “1% inspiration and 99% perspiration” saying, and it is often the case that people who choose not to do the 99% part are the ones with the most “great ideas.”

Now, i didn’t even talk about the legal aspects of an NDA. But even with those issues aside, NDAs are no protection whatsoever. They are just plain stupid(using Linus’s term). I won’t go as far as saying “ideas are worthless,” but i will say that an idea without a proper implementation plan is.

Recently, a new client decided against using an NDA after i expressed that i am uncomfortable with generic NDAs. Certainly, a smart decision. I am very fortunate to have such clients.

One thought on “On NDAs and My NDA Policy

  1. Fingal

    I am very happy I found your website on msn. Thank you for the sensible critique. Me and my wife were just preparing to do some research about this. I am very glad to see such reliable information being shared for free out there.
    Regards,
    Firdos from Kansas City city

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