As a former attorney to entrepreneurs (tech & entertainment), I was asked about NDA’s and sharing ideas probably more than any other topic. If you’re trying to start a business, should you share your idea with other people, or should you try to get an NDA to protect it?
INVENTION VS. INNOVATION
If your idea is patentable, then get NDA’s up until the time you finish your patent application. Patentability means you have 17 years to monetize your market for your idea so time is somewhat on your side.
However, if you’re innovating on an idea and it’s not actually patentable (which is 1000% more likely the case in a business setting) – then STOP WORRYING ABOUT NDA’s because time IS NOT on your side, and asking for an NDA means:
- by default, you’re moving too slow, and
- you’re not ready to actually share your idea with anyone.
A valuable business idea is one that you put into practice now – not later – and start carving out value for yourself. Start building your audience or customer base. Start determining your pricing strategy. Start finalizing an attractive design for your solution. If you can’t share an idea without fear of someone stealing it – then you haven’t done enough with the idea to actually move it into “build” phase with the help of other people.
So, if you’re Innovating and not Inventing:
- move quickly
- share wisely, but openly
- validate the idea with potential customers
- build a team around the product, and
- get it to market before the market shifts away from your solution or people find a better workaround.
You can get better details of this analysis on this blog post.