Starting new business in same area as my current boss

[Coari]

Hi Guys,

I'm working in marketing/web agency. This is rather small company and I'm responsible for web development but 3 years ago got also involved in PPC management so in fact work on two positions at the same time. It is probably more paid search management now than web development.

I'm thinking of starting my own business. I live close from my current workplace so I will be operating in the same area. Not sure if this is important as my customers will probably come from different parts o the country.

Is there anything that can stop me from setting up company in the same industry and area?

Thanks

 

[S2K]

Yes, it could be your employment contract.

 

[Coari]

Couldn't find anything in my contract referring to starting own business. Actually I'm self-employes as well for longer than working in the current company.

 

[TomJ83]

If there is nothing in the contract stopping you from starting your own business, then go ahead.

 

[Coari]

The website is ready so we will start promoting it soon then.

Thanks

 

[tony84]

If nothing in your contract you should be fine.
Just dont go poaching your bosses customers, even if there is nothing stopping you doing it, it is poor form.
Never burn your bridges and dont dump on people on the way up, you never know if you will see them again on the way back down.

 

[effie9]

It really depends on your contract. Check the contract and your "status" permissions. I would also speak with tax office to do the double check.

 

[Paul Norman]

If your contract, and/or staff handbook, do not say anything about it, then your current company can do nothing about it.

Apart from, potentially, out market you if they have the budget to do so.

Do not get into a fight with them.

 

[Newchodge]

It really depends on your contract. Check the contract and your "status" permissions. I would also speak with tax office to do the double check.

Certainly check your employment contract, but it has absolutely nothing to do with the tax office and there is nothing they can check.

 

[Coari]

It is not my intention to poach customers at all, I wouldn't do it.

 

[MikeJ]

Are you planning on leaving your current job?

That's not clear from your post.

 

[MartinCivil]

Are you planning on leaving your current job?

That's not clear from your post.

Very valid question

When I started my business I was working for a company in the same industry. I made sure that there was no dodgy business behind the scenes. Gave my notice and stopped working for them on a Friday, started working for my own company on the Monday.

I was self employed, so obviously nothing in an employment contract to prevent it.

 

[BTON Agency]

Depends on your employer and contract, you may have a non-compete clause in your contract for a specified time.

To be honest most of these non-competes are unenforceable as it is a restriction of trade AND your employer probably does not want the publicity or expense of trying to enforce it.

As with most things communication is key, if you have made up your mind you are doing it, speak to your boss, tell him you will be doing it and promise not to go after their clients.

Best of luck on the new venture!

 

[Coari]

For now I won't be leaving current job.

 

[Newchodge]

For now I won't be leaving current job.

And will you tell your boss about your business?

 

[Coari]

No, not going to.
He knows I'm also self employed and do other staff already.

 

[ADW]

If he knows you do other stuff then why wouldn't you tell him? If you want to hide that fact from him then it sounds like you believe you are doing wrong. If you have no intention of taking his clients do you think he would get rid of you and you can't be without that income source?

Many do this type of thing. Build a similar business on the side whilst working. Whether it is right or wrong for you is down to your own morals. It is business after all. Being your own backyard, I would be upfront personally.

 

[Coari]

I don't think I'm doing wrong but I don't know if they change how they treating me after nowing I'm starting new business. In my opinion they shouldn't care what I'm doing in my spare time and I certainly don't feel I should be explaining what I'm doing after work.

 

[The Byre]

In my opinion they shouldn't care what I'm doing in my spare time and I certainly don't feel I should be explaining what I'm doing after work.

And IMO you are asking for trouble and you are also asking to be shown the door!

 

[Revell Cornell]

Unless you've signed a contract to the contrary, you can start up next door if you like. Be wary about approaching your old company's customers. Said customers could be offended that you could think they are so fickle as to jump ship, just because you've started up on your own

 

[Coari]

And IMO you are asking for trouble and you are also asking to be shown the door!

Not really. Without me this company almost doesn't exist.

 

[ADW]

Your employers company wouldn't exist without you? If so, what do you think is going to happen when you do leave to go full time in your own company, that is then setting up in competition?

You have some big decisions to make and only you can decide the best way forward. Many get a leg up in business by stepping on others. Lots get away with it and go onto do well whilst others live to regret it.

 

[Coari]

Well, my boss will have to employ 2 people to do my job. He will survive. The problem is that he will have less money. But I can't just be tasked with new responsibilities all the time he figures out I'm able to do yet another thing. It very convenient for him having one person doing two jobs but I don't have to like it, do I?

I wish them well, I'm not going to approach his customers, so I can't see anything wrong with me leaving and setting up own company.

 

[MikeJ]

There's nothing wrong with you leaving and setting up your own company.

There's lots wrong with you staying there, and also working in competition without telling your boss.

 

[STDFR33]

I don't think I'm doing wrong but I don't know if they change how they treating me after nowing I'm starting new business. In my opinion they shouldn't care what I'm doing in my spare time and I certainly don't feel I should be explaining what I'm doing after work.

I think they would want to know that you intended on being their competition.

Don't come on the forum whining when they find out and sack you.

 

[ADW]

Well, my boss will have to employ 2 people to do my job. He will survive. The problem is that he will have less money. But I can't just be tasked with new responsibilities all the time he figures out I'm able to do yet another thing. It very convenient for him having one person doing two jobs but I don't have to like it, do I?

I wish them well, I'm not going to approach his customers, so I can't see anything wrong with me leaving and setting up own company.

But that is the key part, you are not leaving and setting-up in competition. You are staying and setting-up in competition. What if whilst you are there you get talking to some potential new customers where bigger contracts might be won. There will be crossover inevitably where further key decisions will be made. Whilst you say you wouldn't take their customers, what if local customers you are targeting for your own business also ask for quotes from the existing business?

You sound like you have made your mind up anyway. Just make sure you know what you are getting into as life is not always that easy the other side of the fence.