Life jackets make us feel safe. Protected. Like we can do anything. But there are dangers they can’t protect against: weather, cold water – and waterfalls.
Even with a life jacket, we need to understand the situation, assess risk, and have a plan.
Non-disclosure agreements (NDAs) also make us feel safe. Like we can say anything. But just like life jackets, we still need to understand the situation, assess risk, and have a plan.
Because startups who must enforce an NDA in court often die in the process – secrets exposed, high legal costs, business distracted.
So, here’s how to ‘wear’ your NDA more safely:
1) Understand the Situation
You are actually the main source of ‘leak’. It’s not theft or hacking. Feeling safe leads to verbal diarrhea and rabbit holes. Even under NDA, need-to-know is your guide.
2) Assess Risk
Customers, vendors and partners seem like friends, so you let your guard down. But they’re actually the most likely to misuse your information, and could even become competitors. You need them – but they are not your ‘friends.’
3) Make a Plan
Engaging in meaningful discussion while protecting your information takes serious preparation:
- Focus on ‘what’ you deliver, not the ‘how’
- Emphasize customer problems and benefits – not technical details
- Share use cases and analogies, to convey value safely
- Stay as high-level as you can, and focused what’s needed for decisions
- Be transparent about what you will and won’t share.
4) Be cautious, but not fearful
A time will come when you will have to disclose more than you’d like, because the reward will be worth the risk. But even then, always weigh value before disclosing. Avoid giving all the puzzle pieces to one player. And don’t be shy to say “let me get back to you” on sensitive questions that you don’t want to answer, but you don’t yet know how to respond.
If you understand the situation, assess risks, and have a plan, you’ll be far more protected than just hoping the NDA will save you.