Starting a business in your current field is risky

Aug 08, 2008

Many people think that starting a business similar to their current job is the simplest way of starting. Big mistake. When employed, many of us have absolutely no knowledge of the trade secrets within a particular industry.

Many people think that starting a business similar to their current job is the simplest way of starting. Big mistake. When employed, many of us have absolutely no knowledge of the trade secrets within a particular industry.

Do not think that since you have been a technician you can become the boss. Running a business takes much more than being a credit manager in the bank and starting your own bank. I know for those of you who know me may say "yah right'! how come you left your job to start a competing company?" I did that because I didn't know better.

Although the law is clear that if someone is currently working for a company, particularly if she is a key employee, they cannot operate a business in the same field, in Uganda this does not apply strongly. Still, starting a direct competing business may spark a lawsuit from the current employer.

Even after leaving the current employer, you still cannot use or disclose the company’s trade secrets. However, if someone has been exposed to trade secrets at their job, it’s inevitable to use the information in their new position.

So, for those of you who have the vision of starting a similar business, I strongly advise you to check your current contract to see if the ‘covenant not to compete’ was not tucked into a signed non-disclosure agreement.

This can make you face an injunction prohibiting you from starting a business until a number of months go by. When all is said and done, remember starting and maintaining a business with direct competition from your former employee is very tricky.

If you must, identify that unmet need, capitalise and develop it so that you leverage on your past experience, something that is complimentary not competing.

For instance, if you have been working for a telecom company where customer care is weak, that is an opportunity for you to start a customer relationship management agency or even a distributorship to sell airtime for them. Believe me, it is not only your former employer will look for you, but all the other service providers.

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