prepare a non-disclosure agreement. I am opening an cupcake restaurant with video games.
A non-disclosure agreement is a form that a potential investor (also known as a venture capitalist) signs acknowledging that the information that you are sharing is protected and that this individual is not allowed to take your idea and make money off of it. Whether your venture gets funded or not, you should always have a potential investor sign a non-disclosure agreement up front.
Conduct a search for downloads and a sample non-disclosure agreement on the website of SCORE at http://www.score.org. (SCORE spells it nondisclosure.) You will note that a basic non-disclosure agreement contains the following elements:
Elements of Basic Non-disclosure Agreement
Opening: Names and addresses of the two parties.
Definition of confidential information
Exclusions from confidential information
Obligations of receiving party
Relationships (Says you aren't going into business together)
Severability (What happens if any part of the agreement is not valid)
Integration (Says the Agreement contains everything needed.)