What should I do to start a business in the same industry as my current employer?

[Anonymous]

I work for a small, privately owned professional service company. Over the past 10 years, I have launched and successfully established a completely new business that did not previously exist. Today, this new business generates stable annual revenue and maintains the highest profit margin within the company.

For example, over the past five years, revenue from this new business has doubled but my annual salary has only increased by 10%. Considering inflation, this effectively amounts to a pay cut, and I am highly dissatisfied with my current compensation.

I have discussed this with the management several times, and they have mentioned the possibility of considering me as a partner. However, there has been no progress, and I am considering spinning off the new business and starting my own company. Are there any issues with this?

I signed a non-compete agreement when I joined the company. However, it is different from stealing the business that my current employer has built up. This is a business that I started and grew on my own.

What would you do in my situation?

Are there any conditions that would make it easier for my current employer to allow me to become independent? I would appreciate advice from those with similar experience. Do I need a lawyer?

[Anonymous]

Definitely consult counsel with regard to the applicability of the non-compete you signed. It may or may not be enforceable against you, but if your employer merely attempts to enforce it, you will be required to spend significant money on legal fees defending yourself - proceed with your eyes open.

[Anonymous]

You absolutely need a lawyer. It sounds like you set up and launched this business as part of the overall business You work for. This makes things tricky

[Anonymous]

Anonymous wrote:Definitely consult counsel with regard to the applicability of the non-compete you signed. It may or may not be enforceable against you, but if your employer merely attempts to enforce it, you will be required to spend significant money on legal fees defending yourself - proceed with your eyes open.

This.

[Anonymous]

Your new business is your employer's business...you created it on payroll.

[Anonymous]

Another entitled millenial.

Yes. You are stealing this from your employer. It isn't tricky, it is black letter law.

[Anonymous]

You absolutely need a lawyer. If you created this business on company time and for this company, it's going to be very hard to take it from them. If you leave and then recreate it, I would imagine that blatantly violates the non compete.

This isn't DIY territory or even try to talk it out with them without talking to a lawyer first. Everything is in their favor right now.