Starting a new company while full time work - possible conflict issues

[David Goodall]

Hi All,

I hope you can help me.

I'm looking to start my own Telecoms company, however, I'm currently in full-time employment for a Telecom company.

My contract states I cannot contact any existing customer for the first year after leaving my job.

Would it be possible for me to start up a company and contact new customers while being employment or does this count as a conflict of interest and would, therefore, be illegal and open me up to being sued?

Thank you in advance.

 

[The Byre]

Well, firstly, the word 'illegal' refers to a criminality and contravening your contract of employment is not a crime (unless you steal of otherwise misappropriate data or goods from your employer).

I assume that in order to start this new venture, you will leave your current employer and, unless your contract of employment places limitations on what you can do after leaving them (other than pinching existing customers, as you have mentioned) you should be OK.

N.B. Overly-severe limitations are not enforceable.

 

[David Goodall]

Hi,

Thank you for your reply however I would not be able to afford to leave my current job until the new business is producing money.

So my question would be can I start a Telecoms company myself while I work for a Telecoms company?

Thank you.

 

[Socio South West]

On the face of it, provided you respect the terms of your agreement with your current employer there is nothing to stop you.... but you are earning (presumably) a reasonable salary...

It is well known that new businesses take time to start earning money to the point where principals can start living off them: Almost without exception the Owners of new businesses will work all the hours they can to try and make the business a success: By definition this will have to come from what is currently your leisure time. Are you prepared for this?

The practicalities don't stop there - how will you service customers during working hours? Are you able to follow up new leads quickly during your working hours?

Crucially... have you budgeted for your Fixed Costs? This is where so many businesses of this type fail - The Owners totally underestimate the Fixed Costs of running a business, and realise after a while that all their profit is being swallowed up in running the business.... as is their leisure time....... weekends, holidays etc all spent working....

And, if your employer finds you in breach of your contract, are you prepared to accept summary dismissal for what amounts to gross misconduct and loss of employed income ?

My advice would be to work hard, build up capital to support you while the business establishes, then make the break from your employer and do it independently and full time from day one.

 

[billmccallum1957]

Telecoms is a big field, will you be doing exactly the same work as your employment?

If you are there would be a conflict of interest IF you worked for your employers existing customers.

If your current job involves generating new business then there would be a clear conflict.

 

[David Goodall]

Thank you and i'm currently in a Technical Support Role and not generating new business however because its a small Telecoms company (Reseller of the bigger players BT, Talk Talk Ect) I would want to start the exact same thing.

My employment contracts states that I cannot contact existing customers within a year of leaving however it does not say anything about starting a business.

Please correct my if I'm wrong I thought it was not allowed to start the same business as the current employer while being employed?

Thank you.

 

[David Goodall]

If I start a Telecoms company and do NOT approach any existing customers would this be possible? - Currently employed by a Telecoms Company

 

[Root 66 Woodshop]

I'm not 100% certain, but I'm pretty sure if you were to contact your existing customers from the new company you'll be breaking some Data Protection laws...

 

[Annoying Donkey]

If I start a Telecoms company and do NOT approach any existing customers would this be possible? - Currently employed by a Telecoms Company

Of course you can. You made a career choice, do you think that would tie you to one and only one company...?

 

[Socio South West]

Please correct my if I'm wrong I thought it was not allowed to start the same business as the current employer while being employed?

There's nothing in law to stop you starting in the same business as your current employer - however, you have a contract of employment with certain restrictions: Can you tell us where you got this impression?

 

[David Goodall]

So its possible in the eyes of the law to start a Telecoms company and remain employed by a Telecoms company while my company grows?

Thank you

 

[Socio South West]

So its possible in the eyes of the law to start a Telecoms company and remain employed by a Telecoms company while my company grows?

In a word.... yes.....

 

[The Byre]

Though, if I found that someone working here was starting a rival business behind my back, I would give them notice. I would be nice, wish them well in their new endeavour and even give them a glowing reference, but I would want them out of the building asap. We would of course have to pay them their notice period, but given the circumstances (e.g. access to customer records and other sensitive information) they would have to leave the building at that very moment.

I would not even allow you to clear your desk.