As a small business owner, it makes more sense for you to work with freelancers rather than to hire many in-house employees for things you don’t require every day. However, certain risks come along with hiring a freelance. For example, they may not have the same kind of vested interest in seeing your business succeed as an employee does.
Therefore, if your partnership with a freelancer will require them to learn secrets about your company, it is essential to have them sign an NDA (non-disclosure agreement). Here are some of the ways an NDA protects your business.
- Confidentiality – The agreement ensures that your private business information stays private.
- Good communication – The agreement allows for clear communication between the freelancer and the business so that both know what behavior is expected.
- Improved business relationships – Clear communication results in better relationships between the business and freelancers, allowing you to work with the same freelancers long-term or repeatedly.
- Money-saving – Leaked data can lead to financial loss, and so can poor relationships with your freelancers. Therefore, these agreements serve to save your business money in the long run.
No one wants to have to pursue legal action due to a leak of private company information. So an NDA is a good practice because it also works as a deterrent.
The Legal Assistance Your Small Business Needs in San Diego
To get the best contracts and agreements for your small business, partner with Pokala Law APC. We are southern California’s small business law firm. Just call 1.844.695.1487 to get started today, or you can request an appointment from our website.