Forums: Discussions for entrepreneurs and small business.

Good morning to all from Long Island, New York!

This is my first posting, so bear with me here...

My dilemma: I can`t seem to find a non-compete / discolsure agreement that deals with the following issues:

Me, (for the purpose of ths agreement, shall be referred to as Me  ) need to protect my accounts from an Independant Contractor. However, we are already technically competing in the same market, so that whole end of it is useless. 

Essentially, I am in a position that leads me to disclose information about my accounts to another company that is in essence, competing in the same industry as I am, just a different angle.

Any advice on this would be fantastic, or perhaps at least someone to point me in the direction of that goose!

Thanks for checking out my post!

 

 

Gooooood morning Vietn...(no, that was a movie ) Long Island!

Ey! you got my dilemma! . Mj.. maybe...we can share it! And share is all about here.

If... I believe you are talking about `independent Contractor` working with you as subcontract by you to provide service to your own customers.

You mentioned that you are a tech, and probably in the same field like I am.

Let me share a short Story. A real one.

I worked for few small Computer Service companies as a Tech Support.

What I saw, and also what it will be still happening is: Customers will migrate to Whomever give them the best price/service. I left those companies and some customer track me down just to say "Claudio I don`t want service from nobody else but you".

And this happen for 2 reasons:

* You provide them person to person service with a care-solution to their problems, always.

* The others simply didn`t care as much as you do.

* Customers as any human-being want to give away their problems to someone else, that know how to resolve those problems, including if they have to paid for that.

Call it: Peace of mind.

That`s why service companies exist. And that`s also why these are moving, changing part in a business.

And this is beyond the plain understanding. IF the company who provide the service give the service, but still in some way they are a `pain in the neck`, means the service is not...m..good enough, if the service company DOESN`T OWN THE PROBLEM, that customer will be looking for someone else that do.

Trying to keep customers captive as they were our property, is as old as humanity. But it never works.

You CAN do some complex, well-done disclosure to protect your company as much as possible.

You can do many things.

But you cannot avoid customer looks to get cheaper-still-good-service rate on services and someone else provide them with that.

What you have to see is abundance, for you, your customer and also your business partner (or independent Contractor).

What I mean is, you have to see the way to show them that`s everybody winning cooperating each other, and we (& they) won`t if not.

If you can`t, that triangle won`t work and you`ll see what you fear.

I give you my example: I work with others independent Companies that do what I do, but I see on them (and that`s why I subcontract them) what they do THE BEST that I don`t or I don`t want to get involve.

Example: I have a Computer Service Company that provide a FULL computerized System Service. And I mean full because if I don`t know something (that is true for anyone else) I will call `the` guy who does.

I do wiring for network as part of the service as an example, when the things goes smooth. If I have to wire thru a concrete wall, or some challenge place`s layout, I call my `specialist` who will charge to the customer the same as I do, but they keep a commission for me for providing them with my customer. They earn a little less, but they get more jobs and keep busy. Customer get same fair rate and get the job done. I expand my Company`s Service and I help everybody.

It`s unbelievable how customer see my service. They call me if I know who provide this or that service (many of them not even close what I do, such as gardeners, carpenters, etc) because they trust me. They trust that I will give them a solution. The Peace of mind.

You have to see the benefit to work together above all.

But I`m not saying you don`t have to watch your business.

I do, I call my customer to feel their satisfaction with my `partner`. I call my partner and hear from them the good and bad of anything and I try to change the bad to good in a heartbeat if it`s possible. Cooperating even if I don`t earn a dime. Many time my partners give me jobs to do with their customers, since I know things or I`m the specialist in certain things.

But you have to build in mutual trust. It works for me. I got new friends between them, customers and third parties that work with me. You have to see them as friends, regardless how they see you. You are not competitors, you are complementary business partner. That`s why you sub-contract them. And you will love also, sometime, prefer they take care of your customer, rather than someone else. They will be some kind of ...your own family. That customer will be in you own circle.

You will pass inevitavily thru bad experience, but that is part of the grow.

There is no way to avoid the risk of loosing something. But you will grow in exchange.

Risk will be your teacher.

I wish this note help you.

Fantastico Claudio!

Thank you for that reality check, and for reminding why I started this business in the first place.

For so long I have let my reputation precede me, that I forgot to catch up with it!

Dealing with cut-throat corporate contractors has embittered me to the point of hoarding my customer base as if it were the last pint of Haagen Daaz on earth!  I guess in that chocolate induced frenzy, I may have lost sight of some of those key elements that have put me in that freezer in the first place.

Thank you. Thank you. Thank you.

Albeit, I will continue to draft a non-solicitation agreement, simply to protect my proprietary "flavors". But, I realize I must redirect all that energy spent on shielding my most valuable assets, into building and fortifying those dynamics that have fashioned this fantastic orchestra of contractors, customers and organizations that I have the privledge to play with every day!

I genuinely appreciate your insight, and wish the very best for you and your business.

Many Thanks,

Rachel

 

I feel really great it help you.

I couldn`t imagine that your business would be so different from mine. Wow...

But I believe there are basic rules that is the same for everyone.

Oh, by the way. I`d like also to share with you a book that my coach (in business) asked me to buy, and I did.

It`s called: The E Myth Revisited "Why most small business don`t work and what to do about it" by Michael E. Gerber

It catched my attention completly when it start to say all the problems small business will pass and why people fail to pass just a couple of years on it. From the sole businessman to small business company.

It amazed me so much see myself reflect, including my actual situation and feelings, and I say wow....it makes sense to me, IT IS NOTHING WRONG with my feelings. It`s just the way to look at things.

So it`s helping me in the whole concept.

Maybe it will help you as well. The books is cheap and it worths to read it.

Rachel,

At the risk of stating the obvious, please be sure to have your attorney review it prior to use. A contract that is not enforeable is not worth the paper it`s written on and non-compete agreements are damn difficult to enforce at best. Good luck!

-------------------------

Don Norman "The great aim of education is not knowledge but action." Herbert Spencer

Claudio, thanks for the tip, I have both E-myth Revisited as well as E-Myth Manager and I agree, they are fantastic primers.  Thanks again!

 

Don,

I appreciate the advice, know any good attorneys?

I have heard how difficult it is to enforce a non-compete, and I have seen it play out with some of my colleagues and their employees ( It was my original intention to modify the employer/employee non-conpete to suit my needs).  Needless to say, disasterous results on both accounts!

I keep hearing that old handyman axiom "measure twice, cut once" in the back of my mind....

Best regards!

Rachel Amo

I think you really want to get with a lawyer.

Don`s advice is exactly on the mark...

However, I will add this...

If you are offering a good deal for the contractor there is little reason for them to leave and compete. In all honesty if you are offering a bad deal and, thus, being short sighted in your business practices you are going to get knocked out of the game by other competitors.

If the turkeys who do not work well leave you, who cares? They may grab a few accounts but they are not going to be real competition. If they fail with you, how in the world will they do it on their own?

If they are that good you`d better make sure you are taking great care of them. If you lose a star performer because you would not take excellent care of them, you kind of asked for it; and again if one is that short sighted your competition is going to eat you up any way.

In the end is it worth the time if someone leaves to go after them? Probably not. If they take a couple of clients and you do the legal thing, you drag your former clients into it; and then they share it with others. The money, the time and the damage to your reputation are just not worth it.