Former employees competing against you...

[earlthegoat2]

Non-competes are really only for upper managers.

It doesn’t take a genius to understand what a company CFO could do to his former employer if they decided to go work for a competitor in a similar role.

Often, since a non-compete clause heavily favors the employer, they are offset by severance packages.

 

[sinclair1]

I was under non compete in the trucking business. It was void when I moved 4 hrs away. They were unable non compete anything but the local market. They can’t make you not do what your profession is outside the local market if you have been doing that profession for many years.

Mine was very specific to certain competitors. I imagine they can write what ever, but my attorney got a laugh out of mine.

 

[BeerThirty]

Non-competes are really only for upper managers.

It doesn’t take a genius to understand what a company CFO could do to his former employer if they decided to go work for a competitor in a similar role.

Often, since a non-compete clause heavily favors the employer, they are offset by severance packages.

I have seen non-competes frequently on the sales side in large manufacturing companies. Those pesky sales guys usually own the relationships so, when they leave a company, often times they can take the business with them.

A few of the guys I know were offered generous severance packages like you said, up to a full year of regular pay as long as the non-compete contract is honored.

I also know one of those guys broke his non-compete contract. The company he went to ended up using their lawyers to fight on his behalf. They fought it for him for 6 months and then it got too expensive with legal fees so they ended up just letting him go. Problem is, it's a small world and word gets round easy. He's had a hard time finding work.

 

[hopper]

I've had a few leave and try to start their own. It's natural to feel a bit stabbed in the back. I like the suggestion out bid him, out work him and out sell him. I had one leave then came back. After a good beating of trying on his own he was done with that. I was always in a niche coatings market most that came to work for me I had to teach them. I did have them sign a no compete but mostly as a scare tactic. Never actually followed through with enforcing it. I was not the guy who wished them well and hoped they made it though as much as I don't want my current competition to make it. I have a small market and try to stay on top of it.

 

[earlthegoat2]

My business was lawn care. I am still in it but dont have employees anymore.

Lawn companies are a dime a dozen. If one of my own former employees didnt start a new lawn business then someone I didnt know would instead. It is a hot and highly competitive market.

Knowing how to do back end work is more important because nearly anyone can run lawn care equipment.

The biggest competition is Latin American companies who have no papeles for anything underbid you. It must be nice to just show up, cut grass, and collect money without having to do books, have insurance, keep track of expenses, etc.