Forums: Discussions for entrepreneurs and small business.

Hello everyone!  Newbie here and thoroughly inspired by this site! I work for a small computer consulting company of about 12 employees. The company is very successful however within the past 4 or 5 months changes have been made that I don`t particularly agree with. Our manager/supervisor left to pursue a new career who had the operation running at tip top shape. Since then, the president/owner has taken over the role. He tends to think more about the business in numbers than the company`s actual vision. This has brought changes that brings employee morale down, more stress, etc, etc. It`s a lot of talk but not a lot of action. I`m all for his vision of growing the company but not the way he is doing it. I`ve been thinking about starting my own consulting company for a while now. By myself first and then eventually hiring more techs. Some of the techs I oversee now are already asking me to bring them on!

I know I should seek out legal advise, but I wanted to see what fellow entrepreneurs had to say or if anyone else has been in a similar position. I really believe I can be successful at this but am weary of quitting the company on bad terms due to the competitiveness of our industry.

Couple of things I have researched on my signing paperwork with the company:
- Signed a proprietary information and inventions agreement
- Offer letter states that I cannot engage in any activities competitive to the company (I`m only planning my company so I`m assuming this does not apply)
-  Employment is at will

I guess what it comes down to is that I`m afraid of my boss suing me (because he can be a baby like that) and ruining my credibility within the industry. Also cutting the security of a steady paycheck to support a family and bills frightens me. I want to start full time the beginning of the year!

Starting  a consulting company makes things easier since I can startup with minimal overhead and work from home. I`ve got almost everything I need to start my company today even a handful of clients that have followed me through the years.

I just need that extra nudge to do it. Thank you in advance!


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Solution A - "Your answer to home office and small business IT support." http://www.solution-a.com

When you say the offer letter states no engagement in competitive activities - explain. Is this a non-compete agreement only during your employment with the company or does it cover a period after you leave the company?

If it does not cover the period after you leave the company, you are clear to go out and compete.

If you are passionate about starting your own company, do it. Sounds like you have the knowledge, experience and even some clients to get started.

I suggest a man-to-man conversation with your current boss/owner. In explaining your reasons for wanting to break out on your own, I would only speak to your personal reasons - stay away from any comments about him, his management style, internal issues like morale, etc. It will do no good to try to show him up and make him think he`s a bad operation manager.

Keep the conversation positive and all about the "whys" you have made the decision to start your own business. Being a business person, if he is honest, he should wish you well on your new adventure and journey. Keep your personal opinions on the old work environment to yourself and move on. Because in reality, once you make the decision to leave and go your own way, what is happening at the old place is not important - forget about it and him. Break away clean and on the best terms possible. Burning bridges is a bad habit to start.

If the boss decides to turn this conversation into a true exit interview, be honest in your opinions but don`t go personal. State your opinions and observations briefly. If he asks questions, give him answers - you will be doing him a favor and your leaving and a good exit interview could help him to make some changes if he feels they are necessary.

Hope this helps and I wish you much success if you make the decision to start it up!

R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

If you signed a non-compete agreement then you should honor it until you have an attorney read it to see how binding it is.

Definitely don`t talk to any of the company`s clients about the situation or you might be accused of poaching.

People sue at the drop of a hat these days so just be sure to exercise caution in everything you do and with everyone you talk to.  Get legal advice before you get much further in your planning.

I definitely wish you the very best of luck. 

 

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Thanks for your responses. In regards to the non-compete agreement. There are no terms other than during the time of employment. I will be seeking legal advise for sure. What would that cost for a lawyer to review all the paperwork?

Keycon - I agree that I should man up and have a one on one meeting with him. But I almost already know he`s not going to be very happy about it. He has a very short fuse. So I guess if it does turn into an exit interview, so be it, the more motivation for me to succeed!


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Solution A - "Your answer to home office and small business IT support." http://www.solution-a.com

Personally, I really don`t see a need for a lawyer and spending money for nothing. Don`t compete while you are employed with your current employer - it`s that easy. That`s money you can save for your new business.

You may think you know what he will say and you may be dead on ... but keep those thoughts out of your mind. By going to him with a definite end of employment date you go into the conversation in control. Just have what you plan to say laid out. Resist the temptation to anticipate what you think he will say and just stay on YOUR message. If he starts drilling you, ask him if he would like to do an exit interview - that is an entirely different conversation AFTER you tell him of your new plans. Be in control. You might as well start now - it is a necessary trait as a small business owner.

R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

You mention a handful of clients that have followed you through the years. Are they clients of your current employer?

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I would NOT quit your job until you have accomplished 3 things. The first is to read a book called "E-Myth" by Michael Gerber. The second is to write a  Business Plan and get the help of an accountant for the financial projections part of the plan. And 3rd, to save money to get you through at least 6 months, and preferably 9 months or more, during which you may very well be getting $0 income!

Please spare yourself the pain and suffering, and even heartache, that can ensue from just jumping into a business without really knowing what you are getting into.

The advice I am offering you has the potential to save you years of work and thousands of dollars and I hope you`ll heed it.

Good luck!







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-Danny E-Synthesis: Marketing + Web Design Web Design and E-Marketing Services for Small Business

If I`ve read it right, most consultants get their start and bulk of their initial work through the company they left. In my case, I left under adversarial conditions, to work with a single client. Being naive at the time, I had no understanding of just how important it was to have an agreeable relationship with the place I`d worked for then left.

If you don`t like the way your "home" company is doing business, then you should definitely go out on your own and do it better. The problem is that if you expect a fight with that home company, you`re going to have to be a whole lot more sure of your next-step income than if you have a nice friendly relationship.

Would it be possible to have a meeting of the minds with your current owners and say that you`re contemplating leaving, but without saying that you`re starting a competing business? How valuable are you to the company, and would they consider changing their policies based on your disagreement?

The idea here would be to instead of walking away in annoyance, to walk away with their blessing, and at least a recommendation. They may have too much work, actually, or some of the work isn`t worth their while, in which case they`d hand it off to you. Maybe?

Keycon - Thanks again for the advice. I already have a tentative exit date and ready to meet with him after the holidays. I don`t plan on competing and haven`t yet. I`ve mainly been networking with future clients I run into and the list is growing!

Steve - The clients I have are using the services of the company specifically for my abilities. It is the client`s choice as to who they want to hire so I don`t see it becoming a problem if they move on with me.

Craig - It would be great if I could work out some type of relationship with the company however that`s not what the owner is all about. I`d also still feel like I`m working for "the man".

I`ve made a significant contribution to the company in it`s processes and growth that my leaving the company would put them through a bit of a struggle until they`ve caught up or hired someone that can handle the workload.

Thanks again for everyone`s comments. I`m getting more excited as things progress!


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Solution A - "Your answer to home office and small business IT support." http://www.solution-a.com

In the music business, it`s not uncommon for one musician to stand out, gain a following, and really pull in the audience. In that case, there comes a time when that single musician comes into conflict with the other members of the band. The one who`s the `draw` begins to feel pulled down by the less interesting players. The band, however, feels resentful that the one player is becoming a "star."

What usually happens is everyone tries for an equitable agreement. But it really depends entirely on how wide is the gap between the two talents. If the developing star is very different from the "backup band," then it`s time for that one player to leave.

So what results? The audience follows that player, and the remaining band ends up either breaking up or figuring out how to get better. Typically, they break up.

Competition, whether in business or Nature, is a hard thing. It has no "feelings," isn`t "fair," and doesn`t connect at all with political correctness, legalities, and anything else humanity comes up with. It`s the single remaining place where talent, skill, and merit are the only values.

If your business` clients are customers only because they want your skills, then regardless of non-compete contracts, feelings, and a sense of possible loyalty, you`re going to have to make a decision in favor of that skill of yours, or keep it hidden under a barrel.

You can either set out on your own and become a star, or stay with the backup band and keep yourself hobbled. Either way, from what you`ve described, people`s feelings are going to get hurt. The problem is to do what`s best in your rational self-interest, but to STILL keep a healthy ego intact without becoming a "legend in your own mind." :-)