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Business Plan Non-Disclosure Agreement Template

Business Plan Non-Disclosure Agreement

Published December 18, 2023 Written by Josh Sainsbury | Reviewed by Brooke Davis

A business plan non-disclosure agreement  is a document intended to protect private information about your business plan. It notifies the other party that you intend to share confidential information. It lays out potential penalties that the other entity, often a company or a potential business partner, will have to pay if they disclose information about your business plan.

Your business plan NDA allows you to share potentially sensitive information about your business or upcoming business without worry that the person you’re sharing it with will use that information for their ends or disclose it to your competitors.

When To Use

  • Before sharing your business plan with a potential investor.
  • Before sharing information about your future business with potential customers.
  • Before discussing information about a future business with a potential partner.
  • When sharing your business plan with a bank before receiving a loan.

What Can a Business Plan NDA Protect?

Key elements of your business plan non-disclosure agreement, sample business plan non-disclosure agreement, tips for negotiating and enforcing a business plan non-disclosure agreement.

A business plan non-disclosure agreement can protect confidential information about your business or future business, including:

  • Business strategies, including any strategy intended to help set your business apart from the competition
  • Marketing plans, branding, and other critical information about how you intend to reach out to potential customers
  • Customer lists
  • Any trade secrets or proprietary technology relevant to the future of your business
  • Financial information, including potential earning projections

Your business plan may contain a great deal of information about your business that could give your competitors an edge if they had access to it. Your business plan non-disclosure agreement helps protect that vital information.

There are several essential elements that your non-disclosure should cover to maximize protection for your business.

  • Classification of confidential information. Ensure you describe what is considered classified and what the other party should keep private.
  • The length of the agreement.
  • Any circumstances under which the other party can share vital information. (For example, sharing it with shareholders in another business or with a lawyer or accountant.)
  • Who owns the information shared in the business plan?
  • What occurs if your relationship with the other party ends? Include information about what should be done with any copies of information shared, including both paper and digital copies.

Both you and someone with legal authority to act for the other party should sign the NDA.

Business Plan Non-Disclosure and Confidentiality Agreement

If you plan to share confidential information about your business plan, ensure a business plan NDA is in place.

  • Avoid sharing any confidential information before signing the agreement.
  • Clearly define the confidential information.
  • Define how the other party is expected to use the information you have shared, which will help determine when they have stepped outside that agreement.
  • Require the other party to return confidential information or show proof of its destruction if the agreement is terminated.
  • Lay out clear terms regarding what will happen if the agreement is breached.

React quickly to any infractions of your business plan non-disclosure agreement so that you can continue to protect your business.

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Business Plan Non-Disclosure Agreement

The document above is a sample. Please note that the language you see here may change depending on your answers to the document questionnaire.

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Business Plan Non-Disclosure Agreement (NDA) Template

nda template for business plan

The business plan non-disclosure agreement is a document that restricts any individual from divulging proprietary information that is shared through a business plan. Lets say for example, that an entrepreneur is starting a new company and would like to run their idea by a colleague or friend, the only legal way for that business plan to be kept confidential is by the 3rd party to sign a non-disclosure. If after signing the agreement the Recipient of the business plan shares the information contained in it with anyone else the entrepreneur that created the business plan would be entitled to seek damages usually resulting in a monetary gain.

How to Write

Step 1 – Download in Adobe PDF or Microsoft Word (.docx) .

Adobe PDF – Microsoft Word (.docx)

Step 2 – In the 1st paragraph write the name of the business or individual that is sharing the business plan.

Step 3 – Enter the name of the person or entity that is receiving the business plan.

Step 4 – The person or entity that received the plan must sign , print , and date on the bottom of the form. After the signature of the receiving party the agreement is complete.

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Business Plan Non-Disclosure Agreement

nda template for business plan

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A business plan non-disclosure agreement (NDA) is a form used by businesses to permit a 3rd party (be it a person or company) to view their business plan without the fear of the 3rd party sharing the contents of their plan with other entities. Business plans contain a massive amount of information regarding the disclosing company. The document typically includes financials, pricing, short and long-term strategies, goals, competitive advantages, and information on their customers, to name a few. In short, a company’s business plan going public could be severely damaging to their ability to compete in the market.

A business may share their business plan to those interested in purchasing their company, to investors (for the purpose of receiving funding), bankers, and lawyers, to name a few. While an NDA can go a long way in preventing their plan from going leaked to other parties, nothing is ever 100% secure. A company should only go about sharing their business plan if there is a necessary reason for doing so.

How to Write

Step 1 – Download

Save the template in PDF , WORD , or RTF .

Step 2 – Identifying the Parties

On the first line of the document, write the name of the company (or individual) sharing the business plan. If a company, the full legal name of the entity should be listed. On the next line, enter the name of the entity receiving permission to view the business plan. As before, this can be a person or a business.

Step 3 – Applicable Law

Enter the names of the county and state in which the NDA will be legally covered.

Step 4 – Signature

The only signature required for the form is that of the 3rd party. In addition to their signature, they will need to record the date in which they signed the document followed by their printed name.

nda template for business plan

Using an NDA when you're building a business plan

Starting a new company requires you to share your business plan with a variety of investors, banks, and potential partners. Here's how to protect your confidential information.

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Brette Sember, J.D., practiced law in New York, including divorce, mediation, family law, adoption, probate and estat...

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Updated on: January 22, 2024 · 4min read

Creating a basic business plan

Understanding nondisclosure agreements, what to include in a nondisclosure agreement, refusal to sign a nondisclosure agreement.

Starting a business is exciting, but there are a lot of steps to take to get from brilliant idea to successful company. The most important building block of your new venture is your business plan, which you'll be sharing with a lot of people. Because of this, you'll want to use a nondisclosure agreement (NDA) to ensure your hard work and planning remains confidential.

Hand holding a piece of chalk on a black backdrop with white letters spelling "N.D.A."

Creating a strategic business plan not only allows you to think through every aspect of your business, it provides a tool you can use to get investors, funding, new customers, and partners.

A well-developed business plan helps you recognize and deal with many possible impediments to your success in advance. It also helps you sharpen your strategy so that you can hit the ground running. A good business plan takes weeks or months to create and requires a lot of research and planning. A basic business plan should include:

  • M arket analysis and strategy. This section looks at market trends, the segment of the market you will target, and the strategies you'll use.
  • C ompetitors. List the companies you see as your direct competitors and how you will differentiate yourself from them.
  • Staffing and employees. You might list specific people who will join your team or identify key roles and skills you need in employees.
  • Financial data. Include sales predictions, capital, debts, and more—basically all the financial details of your company.

You can create a business plan using a template or work with a legal service provider or an attorney to create one. Be sure the document is thorough and complies with your state's laws.

A nondisclosure agreement states that your business will give an individual or another business information that they agree to keep secret. If the agreement is breached , you can seek compensation. Using an NDA signals that the information you're sharing is private and critically important to your business.

An NDA is usually one-sided , meaning you're providing confidential information to the other person only. However, it could be two-sided, or mutual, if both parties are sharing confidential information with each other, such as if you're in talks with a potential partner.

Before sharing your business plan with potential investors, customers, partners, or banks, you should first have them sign an NDA , which should include the following information:

  • Definition. Describe clearly what you are characterizing as confidential so that there can be no misunderstanding. Generally, you want to state that your entire business plan is confidential, as well as any supporting material you provide and any discussions you have about the business plan.
  • Jurisdiction. The agreement should indicate which state's laws apply to the agreement.
  • End of relationship. If you and the other party receiving the business plan decide not to work with each other and terminate your business relationship, the information you provided should be returned to you, destroyed, or deleted.
  • Length of agreement. An expiration date is normally included, as NDAs cannot be open-ended.
  • Ownership of the information. The NDA should make it clear that just because you're sharing information, you're not giving the receiving party any ownership rights in the information.
  • Other people. The party you're sharing the business plan with may need to show it to people who work for or with them, such as their accountant or lawyer. The agreement should state that the NDA is binding on those third parties as well.
  • Signatures. The agreement should be signed by you and someone from the receiving party who has legal authority to enter into the agreement. The NDA should make it clear that this person has the authority to do so and that their signature is binding on their company.

You may find that large banks or investors won't sign your NDA. This can be frustrating, but because such large funders review hundreds of business plans or pitches every month, they may see doing so as an undue burden.

To protect yourself, you could bring a digital copy of your business plan to your meeting and not allow them direct access.

Another idea is to put the business plan online behind a password, making sure to change the password often. You could also withhold as much confidential information as possible until the investor is seriously interested.

An NDA offers an important way to protect yourself as you share your business plan and seek investors or partners. Taking this extra step can ensure your ideas and data are not stolen or shared without your permission.

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Understanding Business Plan Non-Disclosure Agreements (NDA)

Written by Dave Lavinsky

Growthink.com Business Plan Non-Disclosure Agreements

When it comes to starting or expanding a business, creating a comprehensive business plan is crucial. A business plan is a written document that outlines the goals, strategies, financial projections, and other key details of a business venture. However, sharing sensitive business information, such as trade secrets, proprietary methods, or financial data, with potential investors, partners, or employees can pose risks. That’s where a Business Plan Non-Disclosure Agreement (NDA) comes into play.

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This article will explain to you what an NDA is and provide a sample NDA. However, before discussing that, it is important to note that most investors and lenders will not sign an NDA. So,  you’ll need to keep that in mind.

Typically on the cover of a business plan , we’ll include the following:

CONFIDENTIAL 

This document includes confidential and proprietary information of and regarding [Your Company Name].  This document is provided for informational purposes only.  You may not use this document except for informational purposes, and you may not reproduce this document in whole or in part, or divulge any of its contents without the prior written consent of [Company Name]. By accepting this document, you agree to be bound by these restrictions and limitations.

While such a statement is far from 100% legal protection, it may provide dissuade readers from divulging information about your business plan and company.

What is a Business Plan Non-Disclosure Agreement

A Business Plan Non-Disclosure Agreement, also known as a Confidentiality Agreement or NDA, is a legal contract that aims to protect the confidential and proprietary information shared in the plan from being disclosed or used by third parties without authorization. It establishes a legally binding agreement between the parties involved, and it helps to ensure that the sensitive information shared in the business plan remains confidential and is not misused.

The main purpose of a Business Plan NDA is to safeguard the intellectual property and confidential information of a business. This may include, but is not limited to:

  • business strategies
  • financial projections
  • marketing plans
  • customer lists
  • trade secrets
  • proprietary technology
  • other sensitive information that gives a business a competitive advantage 

By signing a Business Plan NDA, the recipient agrees to keep the information confidential and not to disclose, use, or exploit it for any purpose other than the intended business relationship.

What Key Elements are included in a Business Plan Non-Disclosure Agreement

A well-drafted Business Plan NDA typically includes the following key elements:

Definition of Confidential Information: Clearly specifying what information is considered confidential and protected under the agreement. This may include a broad or specific definition of confidential information, depending on the needs of the parties involved.

Obligations of the Receiving Party: Outlining the responsibilities of the recipient of the confidential information, including the duty to maintain confidentiality, restrictions on disclosure and use, and the requirement to return or destroy the information after the business relationship ends.

Permitted Disclosures: Identifying situations where the recipient may be allowed to disclose the confidential information, such as to legal or financial advisors, or as required by law.

Term and Termination: Establishing the duration of the NDA and specifying the conditions under which it can be terminated, such as by mutual agreement or by breach of the agreement.

Remedies for Breach: Outlining the consequences of breaching the NDA, such as damages, injunctive relief, or other remedies available under the law.

Governing Law and Jurisdiction: Specifying the applicable law and jurisdiction that will govern any disputes arising from the NDA.

Sample Business Plan Non-Disclosure Agreement:

Below is a sample business plan non-disclosure agreement (NDA). Since we are not lawyers, we recommend that have a lawyer review any NDAs you plan on using.

[Your Company Name]

[Recipient Name]

This Non-Disclosure Agreement (the “Agreement”) is made and entered into as of [Date] by and between Your Company Name (“Disclosing Party”) and Recipient Name (“Receiving Party”).

Definition of Confidential Information: The term “Confidential Information” shall mean any and all information disclosed by the Disclosing Party to the Receiving Party, including but not limited to business strategies, financial projections, marketing plans , customer lists, trade secrets, proprietary technology, and any other information that is not publicly available.

Obligations of the Receiving Party: The Receiving Party shall use the Confidential Information solely for the purpose of evaluating the possibility of a business relationship between the parties and shall not disclose or use the Confidential Information for any other purpose without the prior written consent of the Disclosing Party.

Permitted Disclosures: The Receiving Party may disclose the Confidential Information to its employees or advisors on a need-to-know basis, provided that such employees or advisors are bound by similar confidentiality obligations.

Term and Termination: This Agreement shall remain in effect for a period of [insert duration, e.g., 2 years] from the date of execution, unless terminated earlier by mutual written agreement or by breach of this Agreement. Upon termination, the Receiving Party shall promptly return or destroy all Confidential Information and provide written certification of such return or destruction to the Disclosing Party.

Remedies for Breach: In the event of a breach of this Agreement, the Disclosing Party shall be entitled to seek equitable relief, including but not limited to injunctive relief, as well as damages for any losses incurred as a result of the breach.

Governing Law and Jurisdiction: This Agreement shall be governed by and construed in accordance with the laws of [insert applicable jurisdiction such as “California”]. Any disputes arising out of or in connection with this Agreement shall be resolved exclusively by the courts of [insert applicable jurisdiction].

Entire Agreement: This Agreement contains the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether oral or written, relating to the Confidential Information.

Binding Effect: This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

By signing below, the parties acknowledge and agree to the terms of this Agreement:

[insert name, signature and date lines]

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Business Plan Confidentiality Agreement

A business plan confidentiality agreement (or NDA) is used when sharing a business idea or plan with consultants, investors, or anyone else that is evaluating your business. It establishes what information cannot be shared and prevents any misunderstandings. This confidentiality agreement is used as a legally binding document with the parties that are meeting each other. It will help establish definitions about trade secrets and when information can be shared.

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The Importance of a Business Plan NDA

Risks of not using it, what to include in a business plan non-disclosure agreement.

Even when a business is new, there can still be plans or ideas that can be stolen. Having an NDA agreement for a business plan prevents your unique ideas from being misused by another party.

As with any confidentiality agreement, a business plan NDA will keep your information safe. You will know that your business idea will not be used by someone else. Your plan may have potential trade secrets and other company secrets that you do not want public. A statement of confidentiality will prevent that from happening.

Using a business plan disclosure agreement can prepare you for using NDAs for your business career, both with third parties and employees. Many businesses have trade secrets and confidential information that you want to control the release of. Using the nda template from the beginning will help your business establish good practices.

A business plan covers many different ideas and aspects of running a business. Marketing, competition, and finances are all included. This is valuable information that you want to protect, in many cases for the entire time you are running your business.

Business plans cover a lot of important information that you will want to protect, oftentimes for the entire time it’s operating. Keeping these plans safe will help your business have a successful start and continue to grow.

Aspects of your business plans that you will want to be protected by a business plan confidentiality agreement include market analysis and strategy, list of competitors, staffing and employee plans, and financial data.

This research and planning cover not only your business idea but what you have discovered about other businesses in a similar market. These plans can be protected with a non-disclosure agreement for a business plan to help you keep the right information safe.

When you don’t use a business plan confidentiality agreement you have the risk of your business idea being used or sold without your permission. It would be a shame if all of the time and energy that you spent on developing just the right ideas were used by someone else. Business plans being stolen is a real threat and you want to protect yourself from it.

If the worst-case scenario occurs and the business idea is stolen from you, a business plan confidentiality agreement will also give you recourse options, including compensation. It will save you time and money to establish what information was publicly known and what was revealed during the business plan meeting.

With a confidentiality agreement, all parties have agreed to what information was not allowed to be shared, making getting legal help easier. There will be less confusion with NDAs signed before any confidential information is shared.

Template Preview

A business plan non-disclosure agreement should include many similar aspects of other statements of confidentiality. These agreements define the terms of what is confidential and what can happen if there is a breach of contract.

1. Define Confidential Information

The first item to include in a non-disclosure agreement for a business plan is to define confidential information and how it applies in this document. It can include revenue predictions, spending plans, and predicted future trends among many other aspects of running a business. Without these terms being defined.

2. The Agreement of Confidentiality

The next item to include is the agreement of confidentiality on the receiving parties. This includes talking about what is the meeting, making copies of any documents, or making commercials from the topics discussed. This will also cover how the receiving party will handle being asked about confidential information.

In cases where documents and materials are being shared, a confidentiality agreement will also disclose that these materials be returned within a time frame. The receiving party cannot make copies or share this information without the consent of the business owner.

3. Exclusions

Exclusions are included in a business plan confidentiality agreement to cover what the receiving party already knew before the agreement, if information becomes public knowledge, or is available through other sources legally.

4. Duration

A non-disclosure agreement for a business plan also covers how long the agreement is in effect. This can be until a specified date or certain provisions are met, such as being released from the confidentiality agreement or the information stops being a trade secret.

5. Courts and Contracts

A statement of confidentiality will also include general provisions about if the agreement is determined to be void by a court and an agreement that the current contract supersedes previous contracts and agreements.

6. Legal Ramifications

Legal ramifications for a breach of the confidentiality agreement are also included. This can include legal action and pay for legal fees. These fees will be paid to the disclosing party or business owner, from the receiving party to cover damages and loss of business from the broken contract.

Once the business plan confidentiality agreement is signed and dated, the contract is placed into effect unless otherwise made void.

When drafting a confidentiality agreement for a business idea, you want to use the right language and organize it correctly. They can cover a lot of information and you want to ensure that all the right information is accounted for to protect your business plans.

nda template for business plan

Free Business Plan NDA Template

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In the dynamic landscape of entrepreneurship, the conception and execution of a business plan are akin to orchestrating a symphony. However, with innovation comes the need for protection, and that’s where Business Plan Non-Disclosure Agreements (NDAs) play a pivotal role. This comprehensive guide aims to unravel the complexities surrounding NDAs, exploring their significance, key components, and the delicate balance between safeguarding intellectual property and fostering collaboration.

Understanding the Business Plan NDA: A Fundamental Overview

Before delving into the intricacies of Business Plan NDAs, let’s establish a foundational understanding of their purpose. An NDA , also known as a confidentiality agreement, is a legally binding document that outlines the terms and conditions under which one party discloses confidential information to another, with the expectation that the recipient will not disclose or use the information for unauthorized purposes. 

A Business Plan Non-Disclosure Agreement (NDA) is a legal document safeguarding confidential information shared during business collaborations. It establishes terms under which one party discloses proprietary data, such as business strategies or financial details, to another party. The NDA ensures the recipient refrains from unauthorized disclosure or use of the information, fostering trust in collaborative ventures while protecting the intellectual property integral to a business’s competitive edge.

Why utilize a Business Plan NDA

Here are a few real-world examples illustrating the need for a Business Plan Non-Disclosure Agreement (NDA):

1. Startups Seeking Investment:

Imagine a tech startup, InnovateTech, developing a groundbreaking application. When approaching potential investors, InnovateTech shares its detailed business plan, including proprietary algorithms and market strategies. Utilizing an NDA in such scenarios ensures that the startup’s innovative ideas are protected, instilling confidence in investors without fear of intellectual property theft.

2. Partnership Discussions:

XYZ Consulting, an established consulting firm, enters into discussions with another company, ABC Solutions, for a potential partnership. As they explore collaborative opportunities, XYZ Consulting shares intricate details of its client acquisition strategies and proprietary methodologies. By implementing an NDA, both parties can freely exchange information, fostering trust while safeguarding sensitive business strategies.

3. Joint Ventures in the Pharmaceutical Industry:

In the pharmaceutical industry, companies often engage in joint ventures for research and development. Consider Pharma Innovations collaborating with BioGen Solutions to explore a groundbreaking drug discovery project. A well-crafted NDA ensures that confidential information related to proprietary formulas, research findings, and clinical trial data is protected throughout the collaborative effort.

4. Technology Companies Collaborating on Product Development:

In the fast-paced world of technology, companies frequently collaborate on product development. For instance, Tech Solutions and Cyber Innovations may join forces to create a cutting-edge cybersecurity product. Employing an NDA in this scenario helps both companies share technical specifications and proprietary code without the risk of unauthorized use or disclosure.

5. Entrepreneurs Pitching to Accelerators or Incubators:

Entrepreneurs participating in startup accelerators or incubators often pitch their business plans to mentors and industry experts. For instance, a health-tech startup, HealthVanguard, might share its business plan with a healthcare-focused accelerator. Implementing an NDA ensures that HealthVanguard’s innovative solutions and market strategies are protected during these critical stages of growth.

These examples underscore the versatile applications of Business Plan NDAs across various industries and collaborative scenarios. Whether seeking investments, exploring partnerships, engaging in joint ventures, or participating in accelerators, businesses can use NDAs to strike a balance between open collaboration and safeguarding proprietary information.

Significance of Business Plan NDAs:

1. Protection of Intellectual Property:

A business plan often encapsulates proprietary information that forms the core of a company’s intellectual property. An NDA serves as a legal shield, deterring unauthorized disclosure or use of this valuable asset.

2. Fostering Trust in Collaborative Ventures:

In collaborative ventures, such as seeking investors or entering into partnerships, an NDA establishes a foundation of trust. It assures the disclosing party that their confidential information is handled with the utmost care and professionalism.

3. Encouraging Open Communication:

Entrepreneurs can freely share their innovative ideas, growth strategies, and market insights when backed by the protection of an NDA. This encourages open communication without the fear of unauthorized dissemination.

4. Attracting Potential Investors:

For startups and businesses seeking investment, an NDA is a tool to instill confidence in potential investors. It demonstrates a commitment to protecting sensitive information, making the business a more attractive prospect for funding.

Common Misconceptions About Business Plan NDAs:

1. Universal Applicability:

Some entrepreneurs mistakenly believe that a one-size-fits-all NDA can be used for any situation. In reality, NDAs should be customized to the specific context of each business relationship, taking into account factors such as industry norms and the nature of the information being shared.

2. Absolute Protection:

While NDAs provide a crucial layer of protection, they cannot guarantee absolute security. The effectiveness of an NDA relies on its enforceability, and breaches may still occur. Hence, complementary measures like careful vetting of partners and continuous monitoring are essential.

3. Overlooking State-Specific Laws:

NDAs are subject to state-specific laws, and entrepreneurs should be aware of the legal nuances governing confidentiality agreements in their jurisdiction. Failing to consider these variations can impact the enforceability of the agreement.

Navigating the Creation and Execution of Business Plan NDAs:

1. Tailoring NDAs to Specific Relationships:

Recognizing that not all business relationships are the same, entrepreneurs should craft NDAs that align with the specific context of each collaboration. Tailoring the agreement ensures relevance and enforceability.

2. Consulting Legal Professionals:

Given the legal intricacies involved, it is prudent for entrepreneurs to seek legal counsel when drafting and executing NDAs. Legal professionals can provide valuable insights, ensuring that the agreement adheres to applicable laws and stands up in court if needed.

3. Educating Parties Involved:

Establishing a shared understanding of the NDA’s importance is crucial. Educating all parties involved about the significance of confidentiality and the terms outlined in the agreement helps foster a culture of respect for sensitive information.

Key Components of a Business Plan NDA:

1. Identification of Parties:

The agreement should clearly identify the disclosing party (the business sharing the plan) and the receiving party (the entity or individual receiving the confidential information). Accurate identification ensures that the terms are enforceable and understood by all involved.

2. Definition of Confidential Information:

Precisely define what constitutes confidential information within the context of the business plan. This can include proprietary business strategies, financial data, market research, product details, and any other sensitive information crucial to the business’s competitive edge.

3. Purpose of Disclosure:

Clearly state the purpose for which the confidential information is being shared. Whether it’s for evaluating a potential partnership, seeking investment, or exploring collaboration, specifying the purpose adds clarity to the agreement.

4. Duration of Confidentiality:

Establish a timeline for how long the confidentiality obligations will last. This can vary depending on the nature of the information and the business relationship. Common durations range from one to five years, but this should be tailored to the specific needs of the parties involved.

5. Obligations of the Receiving Party:

Clearly outline the obligations of the party receiving the confidential information. This includes a commitment not to disclose the information to third parties and to use it solely for the agreed-upon purpose. Additionally, the NDA may impose restrictions on the duplication or reproduction of the confidential material.

6. Exclusions from Confidentiality:

Specify any exceptions to the confidentiality obligations. This may include information that is already in the public domain, independently developed by the receiving party, or disclosed with the written consent of the disclosing party.

7. Consequences of Breach:

Clearly articulate the consequences that will follow if the receiving party breaches the terms of the NDA. This can include financial penalties, injunctive relief, or other legal remedies. The severity of consequences should be proportionate to the potential harm caused by the breach.

In the intricate dance of innovation and collaboration, the Business Plan NDA emerges as a guardian of intellectual property, fostering trust, and promoting open dialogue. As entrepreneurs embark on the journey of sharing their vision, strategies, and proprietary insights, the judicious use of NDAs becomes a strategic imperative. With careful crafting, clear communication, and legal guidance, businesses can navigate the delicate balance between collaboration and protection, ensuring that their innovations thrive in a secure environment.

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  • Non-disclosure (NDA)

Share business plan by using NDA agreement

Share business plan by using NDA agreement

If you have an idea running around in your head that refuses to go away and you want to create a startup, small business, a nonprofit or some other type of commercial enterprise, you’ll likely have heard someone tell you that you should create a business plan.

A business plan is a high-level roadmap for your business that covers many different aspects of a business such as market research, sales, target market, competitor SWOT analysis (strengths, weaknesses, opportunities, threats), human resources, financial plans and a management team.

Creating a business plan is a very useful exercise in itself because it helps you to think ahead and consider where you would like be, the potential possibilities as well as the gaps in your business. Besides internal planning purposes, some business plans are created for the purpose of seeking funding from banks, investors and other financial institutions.

On top of this, business plans can also be created for the purpose of sharing your vision and plans with potential customers, joint partners and potential buyers of the business.

For example, you may be looking at creating a joint partnership with another person or inviting another entrepreneur to join you in a key position within your startup.

Business plans often include a few key elements that are highly confidential .

  • 1.1 Market strategies and analysis
  • 1.2 Main competitors
  • 1.3 HR/Personnel Information
  • 1.4 Financial information
  • 2.1 Definition of Confidential Information
  • 2.2 Duration
  • 2.3 No Grant of Rights
  • 2.4 Authority
  • 2.5 Binding on Others
  • 2.6 Jurisdiction
  • 2.7 Termination of Contractual Relationship
  • 3 If the other party refuses to sign a NDA

Information in the business plan

Market strategies and analysis.

A business’s marketing strategies and market research is normally detailed in a business plan. Information can range from market segmentation and types of ideal customers, market trends to analyses of how marketing strategies can be used to reach these groups more effectively.

Here’s an example of a market analysis chart for a technology business plan:

Example of a market analysis from a business plan

Main competitors

Business plans can also contain valuable information on competitors within the market, niche or industry.

Here’s an example taken from a template business plan:

Example of Main Competitors information from a business plan

HR/Personnel Information

Human resource planning and high-level personnel information may also be listed in the business plan as illustrated from this example :

Example of Personnel information from a business plan

Financial information

Business plans also provide sensitive financial data such as balance sheets, projected cash flow forecasts and projected profit and loss statements.

Here’s an example of a projected cash flow graph:

Example of Projected Cash Flow information from a business plan

Here’s another example of extremely confidential information that is normally included in a business plan. In this example, sales forecasts, current liabilities, capital and cash flow data are listed in the appendix of this example of a plan for software publishers. The full appendix is on Bplans website :

Example of confidential data from appendix from a business plan

Enter the Non-disclosure agreement (NDA)

Since business plans often reveal the heart, soul and secrets of a business , you probably want to make sure that anyone that you share your business plans with will keep your information confidential.

One of the legal tools that you may find useful to help you achieve protection for your sharing of confidential information is a non-disclosure statement (NDA) .

A NDA is a contract between parties wherein the party receiving confidential information (“Receiving Party”) promises the party that is divulging information (“Disclosing Party”), to keep the information secret.

In the case of a breach, the NDA can be drafted to allow you to seek monetary remedies but more importantly, you have the opportunity to seek equitable and injunctive remedies that force the Receiving Party to stop sharing or disclosing your confidential information without your permission.

Although you may never actually enforce a NDA against another person, requiring another party to sign this kind of agreement can a great way to give advanced notice to another party that the confidentiality of the details in your business plan is vital.

You’ll probably only be looking at using a unilateral agreement, also known as a one-way NDA , unless the other party is intending to be sharing confidential information with you as well, in which case, you would use a mutual NDA .

Here are some important points to note and useful clauses that you should have in this legal document.

Definition of Confidential Information

You should include in your NDA agreement a definition of what would be considered confidential information.

You want to make sure that your definition covers all the confidential information that you intend to reveal but is also not too broad and vague as this may come across as unreasonable by certain courts.

You have to be prepared to justify why the information needs to be protected by confidentiality, if ever questioned by the courts.

For example. in Lasership, Inc. v. Watson , the court in Virginia were not happy that the scope of the definition of confidential information in the agreement before them was applied too broadly.

Confidentiality can normally extend to things such as documents, designs, sketches, analyses, source codes, marketing plans, manufacturing processes and technical procedures.

However, in your case, you should probably state that confidential information refers to all information within your business plan as well as any discussions regarding the details of the plan.

Here’s an example of a clause defining what would be considered confidential for the parties in Accuride Corp’s Confidentiality and Non-Disclosure Agreement.

Definition of confidential information from agreement of Accuride

Another important clause that impacts the scope and reasonableness of a NDA is the duration for which the requirement of confidentiality is imposed.

A court may consider a NDA unreasonable if the restriction on disclosure of confidential information is too long .

In Augusta Medical Complex, Inc. v. Blue Cross of Kansas, Inc. , the Kansas court was against contracts with indefinite time durations.

As most business plans are subject to ongoing change and revision as a business evolves, it’s likely that a short time duration for your agreement would be sufficient.

It’s also unlikely that you will be revealing any trade secrets when discussing your business plan but if you do intend to share trade secrets, then you can disregard the limited time duration and apply a perpetual duration requirement to protect your trade secrets.

A trade secret is entitled to confidential protection as long as it continues to remain a trade secret and efforts have been suitably made to maintain its confidentiality.

No Grant of Rights

It’s also useful to clarify that the sharing of your confidential information through your business plan does not grant any rights to the Receiving Party to the information.

Here’s an example of a clause in an agreement:

Example clause of No Implied Grant of Rights in Confidential, Non-disclosure, Non-use

If the Receiving Party is an entity, the NDA needs to be signed by a person who is legally authorized to do so on behalf of the entity .

To cover for cases of mistake and fraudulence, you can insert a clause in your agreement that the parties affirm that the individuals signing the agreement have binding authority.

Here’s a simple clause from the Canadian Corporate Counsel Association’s Mutual Confidentiality and Non Disclosure Agreement template:

Parties have the right to bind from the NDA of Canadian Corporate Counsel

Binding on Others

The Receiving Party may wish to consult with their attorney, accountant or other third parties to determine if your business plan makes sense and is viable.

To enable them to carry out their consultation without sacrificing your confidentiality, you can insert a clause that this NDA is to be binding on anyone that the Receiving Party shares your business plan with.

Here’s an example of a clause from Accuride’s Confidentiality and Non-Disclosure Agreement again:

Binding agreement clause from Accuride Corporation

Jurisdiction

If you ever needed to enforce the terms of your NDA against the Receiving Party in court, the jurisdiction and governing law that would apply to your agreement will be enormously important.

Jurisdiction refers to the court that will have authority to rule over your case. Governing law refers to the laws of a particular state or country that will be apply to the NDA.

The jurisdiction does not have to match the governing law.

For example, you may state that you wish English law to apply and the jurisdiction to be the New York courts. This means that you are granting authority to a New York court to apply English law when assessing the terms of the NDA.

If you omit to include a clause specifying the jurisdiction or governing law, you may be looking at additional costs and time spent in court trying to determine this issue.

Different jurisdictions and governing laws can results in different outcomes.

Most Disclosing Parties choose a jurisdiction or governing law that would be favourable to their cause.

However, there’s one thing to note. Article 25 of the Brussels regulation requires that there must be consensus reached between contracting parties when it comes to jurisdiction.

Because your NDA is most likely going to be a unilateral agreement, make effort to point out the jurisdiction and governing law clause to the Receiving Party and make note of their consent in case it is ever needed as evidence.

An example of a clause that provides for jurisdiction can be found in a NDA from Harvard Business School :

An example of a Jurisdiction clause in the NDA template of Harvard Business School

Termination of Contractual Relationship

If both of you choose not to work together after the sharing and discussion of your business plan, then you should think about what you want the Receiving Party to do with that plan and all the confidential information you shared.

You could require them to return to you all copies of your business plan or to destroy any copies or records of information that are in their possession.

An example of such a clause can be found in Accuride Corp’s Confidentiality and Non-Disclosure Agreement.

Ownership and Return of Confidential Information clause in agreement from Accuride Corp

If the other party refuses to sign a NDA

Due to the nature of confidential information within a business plan, a NDA can be highly important for confidentiality.

However, in reality, we know that when it comes to investors, venture capitalists and banks (basically anyone you are asking money from), they will generally refuse to sign a NDA just to listen to a pitch.

Most investors may be looking at over 20 pitches in a week and they’re aware that there’s often a lot of cross-polarization and similar ideas in the industry, but it’s the execution of the idea that many people fail on.

Most investors, venture capitalists and larger companies want to uphold their reputation and would not be interested in stealing your idea anyway. If an investor or venture capitalist is involved in a project that’s similar to yours, they normally decline to meet with you to avoid any conflicts of interest.

If the investor or venture capitalist refuses to sign your NDA, but you’re worried about keeping your information confidential, instead of emailing them the business plan, put it on your laptop and share it with them during your meeting that way.

That way, there are no copies of your confidential information floating around.

Alternatively, grant them access to the document online with a password that you can then revoke once your meeting is completed. However, as much as possible try to limit the amount of confidential information that you share until they have confirmed that they’re truly interested in investing in your idea.

As for potential co-founders and partners that you’re thinking of partnering with, try to test them out first to see if you think you want to take the relationship deeper.

Keep your chat to a brief and informal one to find out what the other party thinks about the general idea of what you are saying.

You don’t need to share too many confidential details, just share the ‘ what ‘ and not necessarily the ‘ how ‘.

Once you’re confident that you want to work with them, and them with you, then you can negotiate a NDA agreement.

Jan 30, 2017 | Non-disclosure Agreements

This article is not a substitute for professional legal advice. This article does not create an attorney-client relationship, nor is it a solicitation to offer legal advice.

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Free business plan template (with examples)

Alan Bradley

Sierra Campbell

Sierra Campbell

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 3:37 a.m. UTC Feb. 12, 2024

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Featured Image

AzmanL, Getty Images

Starting a business can be a daunting undertaking. As with so many large projects, one of the most difficult challenges is just getting started, and one of the best ways to start is by putting together a plan. A plan is also a powerful tool for communication and can serve as a cornerstone for onboarding new partners and employees or for demonstrating your philosophy and priorities to potential collaborators. 

A solid business plan will not only provide a framework for your business going forward but will also give you an early opportunity to organize and refine your thoughts and define your mission statement, providing a guidepost that can serve as a beacon for your business for years to come. We’ve provided a business plan template below to help guide you in the creation of your new enterprise.

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Business plan template

What should a business plan include?

Regardless of the type of business you own or the products and services you provide, every business plan should include some core elements:

  • Mission statement. The definition and executive summary of your business.
  • Market analysis. A breakdown of the market segment and customers you hope to reach, built through primary (gathered by you) and secondary (gathered from outside sources) research.
  • Organization and logistics. The nuts and bolts of how your business is operated
  • Products or services. What your company provides its customers.
  • Advertising and marketing. How you intend to get your products in front of your customers.
  • Forecasting. Revenue forecasting for partners or potential investors.

Why do you need a business plan?

A business plan is a framework for success. It provides a number of key benefits:

  • Structure. The outline around which to design your business.
  • Operational guidance. A signpost for how to run your business from day to day.
  • Expansion. A vision for the future growth of your enterprise.
  • Definition. A platform to consider every element of your business and how best to execute your plans for them.
  • Collaboration. A synopsis of what’s exceptional about your business and a way to attract funding, investment or partnerships.
  • Onboarding. An efficient summary of your business for new or potential employees.

Business plan examples

We’ve created two fictional companies to illustrate how a business might use a business plan to sketch out goals and opportunities as well as forecast revenue.

Bling, Incorporated

Our first hypothetical example is a jewelry and accessory creator called Bling, Incorporated. A hybrid business that manufactures its products for sale both online and through physical retail channels, Bling’s mission statement is focused on transforming simple, inexpensive ingredients into wearable statement pieces of art. 

Market analysis includes gathering data around sourcing sustainable, inexpensive components, aesthetic trends in fashion and on which platforms competitors have had success in advertising jewelry to prospective customers. Logistics include shipping products, negotiating with retailers, establishing an e-commerce presence and material and manufacturing costs. 

Bling, Incorporated advertises initially through social platforms like TikTok and Facebook, as well as with Google AdSense, with plans to eventually expand to television advertising. Revenue forecasting is structured around a low overhead on the basis of inexpensive materials, no dedicated storefront and broad reach through digital platforms.

Phaeton Custom Cars

Phaeton is a custom car builder and classic car restoration business with a regional focus and reach. Its mission statement defines it as a local, family-owned business serving a community of auto enthusiasts and a broader regional niche of collectors. 

Market analysis breaks down the location and facilities of other competitor shops in the region as well as online communities of regional car enthusiasts likely to spend money on custom modifications or restoration projects. It also examines trends in valuations for custom parts and vintage cars. Logistics include pricing out parts and labor, finding skilled or apprentice laborers and mortgaging a garage and equipment. 

Phaeton advertises in regional publications, at local events and regional car shows and online through Facebook and Instagram, with an emphasis on a social presence highlighting their flashiest builds. Revenue forecasting is built around a growing reputation and high-value commissions.

Frequently asked questions (FAQs)

A business plan may not be a prerequisite for every type of business, but there are few businesses that wouldn’t benefit from one. It can serve as an important strategic tool and help crystalize a vision of your business and its future.

Business plans do just that: they help you plan the future of your business, serve as a platform to brainstorm ideas and think through your vision and are a great tool for showcasing why your business works to potential investors or partners.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Alan Bradley

Alan is an experienced culture and tech writer with a background in newspaper reporting. His work has appeared in Rolling Stone, Paste Magazine, The Escapist, PC Mag, PC Gamer, and a multitude of other outlets. He has over twenty years of experience as a journalist and editor and is the author of the urban fantasy novel The Sixth Borough.

Sierra Campbell is a small business editor for USA Today Blueprint. She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs). She also owns Editing by Sierra, where she offers editing services to writers of all backgrounds, including self-published and traditionally published authors.

How to start a small business: A step-by-step guide

How to start a small business: A step-by-step guide

Business Eric Rosenberg

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