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Entrepreneurship: Is it unwise for an entrepreneur to sign a non-disclosure agreement?
LK
LK
Lyubim Kogan, I don’t teach theory. Only what I survived. answered:

✅ TL;DR (Too Long; Didn’t Read)
No, it’s not unwise — but it depends.
Signing an NDA early in a conversation can be risky if it’s:
Too broad
One-sided
Poorly written
A good NDA should be mutual, specific, and aligned with the stage of the conversation. In some cases, refusing to sign may halt progress — but that’s not always a bad thing. Trust, judgment, and clarity matter more than a standard template.

🧠 Full Answer
NDAs are a normal part of doing business — but timing, structure, and trust are everything.

Here’s how to think through it:
⚖️ 1. Assess the Stage of Conversation
First call or pitch deck? → Likely too early to sign anything
Diligence stage with serious intent? → Signing may make sense. You shouldn’t be legally bound to secrecy before even knowing whether a real opportunity exists.

🤝 2. Request a Mutual NDA
If you're open to signing:
Ask for a mutual NDA — one that protects both parties
Avoid NDAs that prohibit things like "working on similar ideas" or that are so broad they trap you for years
Always read carefully or have a lawyer skim it.

🧠 3. Know the Real Risk
Ideas are rarely the real asset — execution is.
You won’t lose much by hearing a high-level pitch. But signing a poorly worded NDA can cost you freedom to build your own ideas later, especially if you’re working in the same space.

🔄 4. Flip the Conversation if Needed
If someone insists on an NDA too early, try this:
“I understand your need to protect your IP, but I typically don’t sign NDAs at the exploratory stage. Happy to hear the high-level version and see if we’re aligned. If we go deeper, we can revisit the legal part.”

If they refuse — that tells you something, too.

🔍 What Was Missed or Confused in Previous Answers
❌ “People who use NDAs aren’t serious” – Overgeneralized. Some people use NDAs simply because that’s how they were advised.
❌ “Ideas are worthless” – Not always. Execution is key, but some early-stage IP or tech concepts do require discretion.
❌ “I hate NDAs” – Emotion ≠ legal guidance. Many responses shared opinions but didn’t clarify the legal or strategic risks of signing the wrong NDA.

✅ Correct point that NDAs only matter if you can afford to enforce them. A contract is only as strong as the party willing to defend it.

🧭 Final Word
NDAs are not inherently unwise — but blindly signing one is.
👉 If you're considering it:Ask for mutual terms
Read the scope carefully
Make sure it's tied to a specific opportunity, not every idea under the sun

✅ TL;DR (Too Long; Didn’t Read)
No, it’s not unwise — but it depends.
Signing an NDA early in a conversation can be risky if it’s:

Too broad

One-sided

Poorly written
A good NDA should be mutual, specific, and aligned with the stage of the conversation. In some cases, refusing to sign may halt progress — but that’s not always a bad thing. Trust, judgment, and clarity matter more than a standard template.

🧠 Full Answer
NDAs are a normal part of doing business — but timing, structure, and trust are everything.

Here’s how to think through it:

⚖️ 1. Assess the Stage of Conversation
First call or pitch deck? → Likely too early to sign anything

Diligence stage with serious intent? → Signing may make sense

You shouldn’t be legally bound to secrecy before even knowing whether a real opportunity exists.

🤝 2. Request a Mutual NDA
If you're open to signing:

Ask for a mutual NDA — one that protects both parties

Avoid NDAs that prohibit things like "working on similar ideas" or that are so broad they trap you for years

Always read carefully or have a lawyer skim it.

🧠 3. Know the Real Risk
Ideas are rarely the real asset — execution is.
You won’t lose much by hearing a high-level pitch. But signing a poorly worded NDA can cost you freedom to build your own ideas later, especially if you’re working in the same space.

🔄 4. Flip the Conversation if Needed
If someone insists on an NDA too early, try this:

“I understand your need to protect your IP, but I typically don’t sign NDAs at the exploratory stage. Happy to hear the high-level version and see if we’re aligned. If we go deeper, we can revisit the legal part.”

If they refuse — that tells you something, too.

🔍 What Was Missed or Confused in Previous Answers
❌ “People who use NDAs aren’t serious” – Overgeneralized. Some people use NDAs simply because that’s how they were advised.

❌ “Ideas are worthless” – Not always. Execution is key, but some early-stage IP or tech concepts do require discretion.

❌ “I hate NDAs” – Emotion ≠ legal guidance. Many responses shared opinions but didn’t clarify the legal or strategic risks of signing the wrong NDA.

✅ Correct point that NDAs only matter if you can afford to enforce them. A contract is only as strong as the party willing to defend it.

🧭 Final Word
NDAs are not inherently unwise — but blindly signing one is.
👉 If you're considering it:
Ask for mutual terms
Read the scope carefully
Make sure it's tied to a specific opportunity, not every idea under the sun

Would you like a free mutual NDA template you can suggest instead of accepting theirs? I’m happy to share a vetted one that keeps the conversation fair — and if you’d prefer to talk it through, we can schedule a quick call to walk through it together.

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