How to bootstrap without risking your full time job?
I have an idea I'm working towards on my personal time (mostly weekends). Before I launch (if it ever happens...) I want to make sure my employer is fine with that. From reading the articles on IH it seems that many people do that.
The problem is that many employers, mine included, sign employees on agreements that forbid them from starting a new business, doing consulting, etc. Open source projects are usually OK, but a side business isn't. Obviously I'm talking about something that doesn't compete with my employer in any way (which can be challenging if working for one of the big tech companies).
I'm planning telling my employer about it. I hope they will be OK with that, but it's hard to predict since it's a large organization.
Can people here share how they handled a similar situation?
Thanks!
IANAL but:
First, as others have suggested, I'd advise reviewing your employment contract. It might spell everything out for you.
But if not, I would be completely upfront about my intentions, and I'd work out a basic script of what I was going to say in advance. To craft this script, I'd start by empathizing with my employer and identifying the major liabilities — from their perspective — of letting employees work on their own side businesses. I'd make sure to explicitly address these liabilities in my ultimate script.
For example, here are some obvious risks of employees starting their own companies:
Based on these reasonable employer concerns, I'd be sure to include the following talking points:
Note: I deliberately used the term "side project" above, and not "side business" or "startup." Connotations matter. Unless you're seeking venture capital, premium Google ad placements, or LinkedIn recruiters, I wouldn't use buzzwords that suggest these activities. (If your project gains some traction down the road and starts paying for your room and board, I'd update my employer and talk tracks accordingly.)
This is spot on. "I would be completely upfront about my intentions" is the key. Once upon a time I built something, then showed it to my employer, and they then claimed ownership through a couple provisions in the employment agreement. Mind you, the product had not even launched. I had not built it on company time nor equipment, didn't matter.
One thing I would add if they give you permission to pursue your project, get it in writing.
Last thought, the next time I got serious about building something, I left that job.
This is great, thanks a lot! The three points you made make a lot of sense. And it's indeed just a side project at the moment. I will take this advice and update here once I hear back from them.
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Maybe the ultimate insurance is to focus on building an audience first. You could go for a Sidekiq-style "open source core" strategy and only build the paid part after leaving your current employer. You could also probably write an ebook or ebook + video course without getting fired.
If you did get fired or they demanded ownership of your ebook, you'd still have your audience, reputation and skills gained in the process.
I've heard of companies that try and do this. Personally, if my employer did this, I'd quit and find a more understanding company. No employer is going to tell me what I can and can not do after hours.
I understand non competes, but that's where I'd draw the line. Read your employment agreement and see if they forbid competing side businesses, or all side businesses. There is a big difference.
Most reasonable companies support their employees and understand they have their own ambitions and dreams.
I read mine. It clearly states I cannot carry other professional activities like self employment, unless they give me permission in advance. It even says that it owns all my inventions, regardless when I worked on them. I think it's pretty standard so not sure that switching employers would help. And at least for the time being I'm happy where I am.
In theory they should approve it if they are convinced that my offering doesn't compete with them in any way. But when it comes to legal in large companies you never know.
I wonder if others here who are working for a large company asked permission from their employer and what was the outcome.
Wow! I also work for a large company and it's not that restrictive.
Fuck that.
In that case, I like @thomasm1964's suggestion. Run it under a family member's name for now and get it going.
You're lucky then. From my understanding it's pretty standard. I just found an article by Joel On Software that explains it:
https://www.joelonsoftware.com/2016/12/09/developers-side-projects
I live in Massachusetts. I will check if we have some laws like the one he mentions in California.
This comment was deleted 5 years ago
My contract has a non-compete but thats it. I would never sign the "we own all the IP you create variety".
Actually I recently found out some managers are cool with it and some see it as back stabbing the company and take it personally.
I dont let on if im upto anything. As far as im concerned its my life and thats that. Sounds like you need a new employment contract.
Every company is different. I would suggest that you read your employee manual to see what it says. Then I would ask HR or the legal department about side projects and outside business. Just because you think you understand a policy, it does not mean what you think it does. It’s important to get clarification from your companies legal department. Do not mention what you want to do or your idea yet. If they say you are allowed to do a side project or outside business, great! Then just get in writing the proper permission etc. IF they say you cannot have a side project or say that they own all your ideas, you have not risked anything. You will of course have to decide if you want to leave the company to pursue a side project.
Good luck
I work for a provincial healthcare agency and they actually have a conflict of interest form. I filled it out and they didn't get back to me (which according to the form means they didn't see any conflict of interest). Your company may have the same thing.
Have a conversation with your boss and let them know what you're doing. 9/10 your boss will be excited about what you're doing. 1/10 find a new job with a better boss.
Only work nights and weekends and to be safe, never use company equipment or resources to develop your projects. You don't want a Richard's girlfriend in the shop issue.
Most Employers don't mind you have side projects, actually most of them are supportive!
This comment was deleted 7 years ago
I'm not worried about them suing me. It's more that I might get fired for violating my employment agreement (worse case scenario).
Asking someone else to front the business is a good idea. However, I will still need to hide the fact I'm working on it and it's going to make it harder when I try to get some visibility.
Sorry to revive, how did it go? I'm also in MA, which unfortunately means "employment at will", so they can fire me for any reason they want