This is the predicament....

I've been a strong sales person for a consulting company for four years. I feel that I would drive myself more and my career would excel if I opened my own consulting business (I've talked to many peers and business partners, most of whom concur with my business plan). However, I have a non compete with my present company.

The non compete states that I cannot practice in my industry for at least 3 months. Also I cannot attract the company's consultants or my present clients for one full year. I am cogniscent of the ramifications of starting over, but I know I will enjoy the challenge.

Has anyone ever had to tell an employer you personally/professionally respect that you are leaving to start your own business? How did they take the news? Did anyone else have to deal with a non compete before?

Thanks for the feedback.

Melissa Saultzer

-- Melissa Saultzer (saultys@peoplepc.com), August 30, 2001

Answers

Ever get an answer on this? Very curious to know as I am in a similar predicament.

-- Not Important (flimflam36@hotmail.com), August 31, 2001.

Melissa,

This can be a sticky one. I know, because I have dealt with a non- compete, and fortunately for me when I started my consulting business, it was enough outside the lines of my previous employer to avoid most of the issues of the non-compete.

I would like to start by offering a few different ideas. First, it might be helpful to define in clear terms why you would do better on your own. What I am getting at here is there might be an opportunity to differentiate yourself from your present employer sufficiently to avoid the non-compete clause. If you have identified some way of doing it better, faster, or from a new angle, you may not really be targeting the same clientele, or industry, etc.

Second, you need to evaluate the market you operate in (how large is it? How much impact will you realistically have on your current employer when you leave? Are you a real threat to this business?) and try to arm yourself with logical and factual rationale to support any discussion you may enter into regarding the perceived effects of your leaving to start another business. Many times, people (employers) tend to think in very negative terms about these topics. Let's face it, many employers hold their control over employees very near and dear to their hearts. If you can find some way to show a benefit to the employer, or at least disarm their fears, it might shed a ray of hope on your plans.

Another avenue is to get familiar with your state laws on non- competes. Many states restrict the applicability of non-compete clauses. An employer in my state, for instance, cannot by contract restrain a lawful business without compensation. By mutual consent, a party to an agreement can consent to a restraint of trade with some form of consideration, usually cash. You may find that your state laws contain some similar language, and you may want to research case findings in non-compete enforcement actions. It may help you to understand more clearly the real (enforceable) implications of the non-compete.

One more idea is to evaluate your relationship with your current employer, and visualize to yourself the best possible outcome and the worst possible outcome. Write them down, and try to quantify the effects of each scenario. Be realistic. Then ask yourself: Am I willing to risk the worst scenario to gain the best scenario?

In my own life, the survival of my exit was a refining experience and it helped to equip me for success in my own practice. I work in the area of developing people, which means that I deal extensively with Attitude Development, Interpersonal Skills, and Achievement Planning. I can say with confidence that your approach to this decision will, to a very large degree, determine its outcome. You need to gather all of your professionalism (research, confidence, calm manner, and determination)and take the time to plan. Approach your employer with the same level of professionalism that you would use on an A-list (high potential) prospect. If you can gain collaboration, you will gain a powerful ally. If you can gain independence, you will have won your freedom. If you can achieve nothing more than to disarm their fears, you will create for yourself an escape hatch. Contracts are expensive and sometimes difficult to enforce. This fact is in your favor. If you can be perceived as something less threatening than a direct competitor, you will probably avoid the enforcement of the non-compete. Otherwise, your best hope is to know your options inside and out, make your choice and then stick to it.

My best wishes go out to you. I know this is not easy. But you must be true to yourself. Don't let your fears consume your passion. If your heart is longing for a business of your own, and you can build a fact-based and reasonable plan to achieve your dream, then find a way to get it done. In my own life, I found a great deal of satisfaction in being on my own.

Positively Yours,

Bruce Eberle

-- Bruce Eberle (beberle@myavista.com), September 06, 2001.