I hate NDAs.

Why do so many entrepreneurs think that these are good documents to have everyone and anyone sign before talking about their business?  

Previously, I get it.  You're eager and you think that your idea is the next best thing to sliced bread.

Entrepreneurs work long and hard to develop something that he/she sees as unique and highly valuable. If you’re talking to a lawyer while starting your company then it is likely that they have persuaded you to have every investor and advisor sign an NDA.  So far, this probably seems like it makes sense.  

On the other hand, I believe you are doing yourself a disservice hiding behind NDAs. One of my successful mentors once told me that the best way to approach any new business is to tell everyone you meet in order to get candid feedback. Invite people to rip it apart for all the good and bad that they could offer as free consulting.  Brilliant advice!

At Near Me , our customers come to us regularly to sign NDA's before building their business on our platform. One of the biggest reasons why I don’t like NDAs is because their ideas have merit, but often require polish to develop further. With our experience in these areas, we’ve learned that it’s important for us to fully understand an idea and help them define the value proposition.

All the NDA does is slow down the development and maturation of their business plan. We expect that our customers can explain their business without revealing their “secret sauce” and only reveal part of what makes their idea the winning deal!  Ultimately, we are a platform and the secret sauce to any successful business is the execution and customer service. This doesn’t warrant an IP protection. If anything, they are squandering a first mover advantage (if they have it) as their slower progress (due to NDA) allows competitors to catch up instead of moving & improving quickly and building a lead!

Ideas and technologies are like cabs on a summer day - there are plenty and there’s always another one coming along!  Each idea is blessed with a similar likelihood of failure or success and it never seems to be related to an NDA.

If you prioritize the value of the “idea” over the value of the people you hire and technology you build then you might be headed in the wrong direction.  

So, let me save you a lot of reading time and money with lawyers - ditch your NDA.

An NDA is non-disclosure agreement.