It is a question that numerous entrepreneurs have toiled with: do you need a Confidentiality statement business plan? That is, a document ensuring that the contents with your business plan remain secure and, yes, confidential. To cut right to the chase, the short answer is – no. In fact insisting upon a confidentiality statement in a business plan can actually hurt your chances with investors or lenders. That is because it suggests that you do not trust your investor, and it implies that you think they intend to steal your idea. As we can all agree, that is not the best foot to start out on with someone who you intend to solicit for money. The following is a list of additional reasons you should nix the confidential agreement in your business plan:
• It makes it clear that you're a novice
• Many investors or lenders find it offensive
• Most investors don't have the time or energy to steal your idea
• If you actually intend to secure funding, your idea will not remain confidential
The bottom line is that most veteran or seasoned entrepreneurs would not even considering interesting a confidentiality statement business plan before submitting it to an investor. Just do a quick search on the Internet and you will turn up more than one forum, blog, or article where an investors gripes about a confidentiality agreement or non-disclosure agreement (NDA). If you truly want to secure funding, leave it out.
Want to learn more about the dos and do nots of investing, and how you can secure the funding you need to launch your start-up? Call MasterPlans, the business plan experts. All great start-ups began with a business plan – and yours should be no different. We have written thousands of business plans that have helped our clients get noticed. To join their ranks, give us a call today at 877-453-2011.
