Looking for a confidentiality agreement for business plans? Confidentiality agreements, also referred to as Non-Disclosure Agreements or “NDAs,†are commonly appended to business plan drafts and finished products to give the entrepreneur or business owner some assurance that any proprietary information discussed in the document can be kept between the company and its potential investors. This is sometimes a false sense of security, however, for several reasons: first, proving damages sustained from any wrongfully disclosed information is extremely difficult, so the legal recourse you think you have may be hollow. Second, unless you keep the signed copy, you will not have the evidence you need even if a breach IS applicable (scan any NDA you get back so you have an electronic version, but also keep the original in a safe place). Third, and most importantly, a lot of investors won't sign them. Period. If you're serious about getting an audience with a venture capital firm or private investment group, don't be surprised to hear that they won't touch a confidentiality agreement, no matter who drafted it. That said, if you insist on using one, there are several ways to go about it:
(1) Search online. There are templates and samples available for download at several different websites.
(2) Consult with SCORE. Retired business executives most likely can create an NDA with you.
(3) Go to the library. Business books will have formulaic NDAs you can rework to suit your purposes.
(4) Write one from scratch. It's easier than it sounds – if you know what you're trying to protect against, you can make it specific to your business. Have a lawyer review for accuracy.
If you want to discuss how best to tailor a confidentiality agreement to your business plan or the optimal way to append it to the document itself, a business plan consultant is available to talk through it with you at MasterPlans. We have worked with 8,000 clients in the public and private sectors, writing business plans for venture capitalists, angel investor audiences, and bank loan officers at branches coast to coast. Our in-house group of expert business plan writers, editors, and financial modelers has encountered every scenario imaginable. Give us a call at 877-453-2011.
