How an NDA Can Protect Your Business

How an NDA Can Protect Your Business
How an NDA Can Protect Your Business

In an ideal world, everyone would play fair and we wouldn’t have to worry about things like Non-Disclosure Agreements. Unfortunately, not everybody does play fair. The best way to protect your company’s private and proprietary information is to have all players sign an NDA.

Some company owners look at Non-Disclosure Agreements as a negative thing. They’re afraid it will look as if they don’t trust their business partners and associates if they ask them to sign an NDA. This couldn’t be further from the truth.

There is nothing negative about an NDA. There is a certain amount of risk involved in any business transaction. You’d be naïve to think your company doesn’t need protection from time to time.

Whether you’re hiring a new manager or signing a contract with a marketing agency, you need to protect your company. You’ve worked hard and spent a lot of money to get your business to where it is today. Nobody should have the ability to exploit your hard work and investment.

Connecticut business law attorneys understand how important an NDA can be for your business. They can craft these agreements so they meet your needs. Since it’s not wise to use a generic NDA for all purposes, it’s important that you have an experienced business attorney handcraft them for each business relationship.

Sale or License of Your Products and Technology

In order to stay competitive, you need to create products and technology that is innovative and unique. If other companies had access to your proprietary information, they would surely capitalize on your hard work and ingenuity.

This is why you need to prevent potential buyers from using your private information to duplicate your products. You also want to make sure they don’t take your information to other manufacturers who can take advantage of your proprietary information to improve their own products and technology.

Your Employees May Need to Sign an NDA

You are going to hire and fire tons of employees over the course of your career. As much as you want to trust your staff, you can never be too careful. It’s important that you have new and existing employees sign Non-Disclosure Agreements to protect your company.

Even long-term employees should sign these agreements. For example, when you promote someone to a position in management where they’re going to have access to proprietary information, you should have them sign a new NDA. Your Connecticut business lawyer can review your agreements and customize them for new hires and promoted employees.

An NDA Can Protect You in Engagements with Prospective Partners and Investors

When you meet with prospective partners and investors, you’ll have no choice but to protect your interests. Even before you get to the point where a contract is imminent, you need to get them to sign an NDA.

During negotiations, you’re going to have to divulge private information, including financials, upcoming projects, and trade secrets. The last thing you need is the potential investor to take your information elsewhere and sign on with your competition instead.

You Should Have All Servicers Sign a Non-Disclosure Agreement

Your company is going to have to rely on third parties to meet your business needs. You’ll need to hire payroll companies, accountants and advertising firms. These partners are going to need to have access to very private information.

Your Connecticut business lawyer will help draft agreements that can protect you from proprietary theft. For example, you don’t want your accountant divulging your financial problems to third parties. An NDA can be the perfect way to prevent this from happening.

Your Company Needs Protection from Potential Buyers

The day may come when you choose to sell part or all of your business to a third party. In order to make an educated decision as to whether to make you an offer, they’re going to need to review pertinent and private information.

You should never enter negotiations to sell your company without an effective NDA in place. This is why it’s important to rely on an experienced business law attorney in Connecticut to represent your company’s interests.

Contact a Skilled Business Law Attorney in Connecticut Today

Whether you need to draft new NDA or revise existing agreements, you should call and speak with a skilled business law attorney in Connecticut. Your lawyer can review any existing agreements you already have in place. They can also draft new agreements for potential business relationships and partnerships.

You’ve worked hard your all life to grow your business. Let an effective Non-Disclosure Agreement help protect your hard work and investment.

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