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Why You Need to Use NDAs to Protect Your Business

Don't think of them as aggressive -- instead, think of nondisclosure agreements as a fast-track toward trust.

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This story appears in the October 2018 issue of Entrepreneur. Subscribe »

Q: I’m a small-business owner, and we’re in a stage of growth. Do I really need employees and potential partners to sign NDAs? -- Chris P., New Jersey

Federico Gastaldi

There are many big-business practices that don’t necessarily apply to smaller companies. When you’re a startup, you can cut a lot of red tape without worrying about repercussions. The use of NDAs -- that is, nondisclosure agreements, which serve as legal contracts of confidentiality -- is not one of those cuttable corners. 

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