Business Plan Non-Disclosure Agreement
A business plan non-disclosure agreement (NDA) is a form used by businesses to permit a 3rd party (be it a person or company) to view their business plan without the fear of the 3rd party sharing the contents of their plan with other entities. Business plans contain a massive amount of information regarding the disclosing company. The document typically includes financials, pricing, short and long-term strategies, goals, competitive advantages, and information on their customers, to name a few. In short, a company’s business plan going public could be severely damaging to their ability to compete in the market.
A business may share their business plan to those interested in purchasing their company, to investors (for the purpose of receiving funding), bankers, and lawyers, to name a few. While an NDA can go a long way in preventing their plan from going leaked to other parties, nothing is ever 100% secure. A company should only go about sharing their business plan if there is a necessary reason for doing so.
How to Write
Step 1 – Download
Step 2 – Identifying the Parties
On the first line of the document, write the name of the company (or individual) sharing the business plan. If a company, the full legal name of the entity should be listed. On the next line, enter the name of the entity receiving permission to view the business plan. As before, this can be a person or a business.
Step 3 – Applicable Law
Enter the names of the county and state in which the NDA will be legally covered.
Step 4 – Signature
The only signature required for the form is that of the 3rd party. In addition to their signature, they will need to record the date in which they signed the document followed by their printed name.