Running a business ...
 

  You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more

[Closed] Running a business on the side - anyone see anything wrong with this scenario...

30 Posts
24 Users
0 Reactions
93 Views
Posts: 13617
Full Member
Topic starter
 

I am currently employed in print and design (basically running a one man band print shop!), the main core of the business is a completely unrelated market. I've worked bloody hard for the last five years and have made a good profit each year in difficult trading time in the print industry. But I see no sign of any wage rise, bonus or extra holidays.

Basically the core business loses money each year and any profit I make helps sub this business (my part probably accounts for 25% of the overall turnover). So until the main business makes money I won't see a pay rise 'as its not fair to the other staff members'. I can't see a time when the core business will make money! (my MD is very wealthy and treats it as a bit of a play-thing).

I have now decided that I'll work hard during the hours I am paid to do, but any evening and weekend work will be for my benefit alone. I ran a family print business for over 25 years so have no problem working for myself, but need to ease myself back in (with the idea of being working for myself again in 2 to 3 years).

So my thoughts are...
• Start my own website.
• Make it clear that I only work part time evenings and weekends.
• Any work customers I pick through this website are mine.
• Any work I pick up socially is mine.
• I have [b]absolutely no intention[/b] of taking work from the company I work for.
• Basically keep the two things completely separate.

For reference - I have no contract of employment.

I don't see any point busting a gut any more for no return, although I am a bit torn over this as my MD helped me out of a hole 5 years ago - but the promises he made then haven't materialised.

All opinions gratefully received!


 
Posted : 04/01/2014 4:42 pm
Posts: 31056
Free Member
 

If I were him, I'd probably let you go the second I found out.

If I were you, I'd just start up and nick all his business before he knows whats even hit him.


 
Posted : 04/01/2014 4:50 pm
Posts: 0
 

As dd said, you'll probably be superfluous the moment the MD twigs. The MD helped you out of a hole, you've kept his business afloat. That debt's paid.


 
Posted : 04/01/2014 5:04 pm
Posts: 0
Free Member
 

"My friend" did the same thing doing side work for himself, not stealing customers or using the company parts or tools BUT when it came to light and the bosses found out he very quickly learnt that the law and employment law are very different and proof wasn't required in the same way as you would suspect!!!
Be very careful, do it by all means but understand if/when it comes to light your going to be self-employed the next day!!! If you have no kids/mortgages go for it start your own biz and hopefully it will be the best thing you ever done but understand the risks!!!


 
Posted : 04/01/2014 5:14 pm
 DT78
Posts: 10064
Free Member
 

Most contracts will have stuff in the around conflicts of interest, which this sounds like. How about doing something related but couldn't be construed as the same business? I dunno something like cool bike tshirts or decals?


 
Posted : 04/01/2014 5:19 pm
Posts: 13617
Full Member
Topic starter
 

I have no contract of employment - so there are no conditions. I have no idea if there is an implied contract under employment law.

The business was set-up from the what remained of our family business. Even now 60%+ of the current customers were originally mine. My MD has no experience of print whatsoever - he couldn't even turn the digital printer or computers on.


 
Posted : 04/01/2014 5:25 pm
Posts: 31056
Free Member
 

Most contracts

For reference - I have no contract of employment.

Strength and a weakness in this case.


 
Posted : 04/01/2014 5:25 pm
Posts: 13
Full Member
 

Why not tell your MD your thoughts and intentions? If you are booted then 'his' customers are open season, alternatively he may decide he wants you to stay and work only for him and incentivise you accordingly.
Or he accepts your plans and you go ahead.
Not without risk of course...but as others have said if you work on the side for yourself and are found out your employer will assume the worst and look to get you out very quickly.


 
Posted : 04/01/2014 5:27 pm
Posts: 0
Free Member
 

set up by your self and take all your contacts. you and your family come first


 
Posted : 04/01/2014 5:29 pm
Posts: 254
Free Member
 

If he promised things that haven't materialised then I think it's fair to poach the customers and do as you wish. If he's a friend in some way then maybe you owe him more than that?


 
Posted : 04/01/2014 5:39 pm
Posts: 3834
Free Member
 

You don't have to have a written contract of employment. By accepting the job you have entered into an employment contract and there are "implied terms" within that. Not having a part time job could be an implied term.


 
Posted : 04/01/2014 5:44 pm
Posts: 0
Free Member
 

Ask again for a pay rise...tell them if the answer is no, that you'll leave. if they say go ahead tell them you will open up a print firm near them which would potentially force them to close. You can be sure they know all about the 25% you make..


 
Posted : 04/01/2014 5:51 pm
 Drac
Posts: 50352
 

Work twice as hard for a little return.

Or

Work the same for a guaranteed wage

Or

Leave, invest in setting up on your own and hope you can find the business in what you call a difficult time.

Tough one but I'd not be working extra for little return on top of my 9-5 if I was you.


 
Posted : 04/01/2014 6:00 pm
Posts: 806
Free Member
 

Ask your boss for a commission based on revenues generated. That way, you get the extra money you deserve for operating a profitable business within the overall organisation, and the other staff can't complain as you are on a performance related pay structure.

Saves the risk of losing it all and also keeps your weekends free.


 
Posted : 04/01/2014 6:19 pm
Posts: 0
Free Member
 

Just set up by yourself then once your website and office is up and running leave your job and take all the work all the contacts and all the profit with you. Don't tell your current employer whatever you do. Nothing unethical about that - it's simple business.

You must remember this, even if there is currently a restrictive employment contract in place, any customers are free to give their business to whomever they choose. If you have no contract then things become even easier. Go for it 🙂


 
Posted : 04/01/2014 6:55 pm
Posts: 5297
Full Member
 

To be honest, forgetting all of the above, any time I have taken on small jobs for people outside of work, I've realised how little time I have outside of the working day. It can take a long time to do even the smallest of tasks sometimes.

You may have done it already. But I'd take on a couple of jobs as a taster before setting up business properly.


 
Posted : 04/01/2014 7:07 pm
Posts: 621
Free Member
 

Why not offer to buy out the bit you work for from his business? You don't say what the other parts of his business are, but if they're not print then he could be open to it.


 
Posted : 04/01/2014 8:04 pm
Posts: 0
Free Member
 

My cousin did the same, he is now runs a successful business with about 30 staff working for him.


 
Posted : 04/01/2014 8:07 pm
Posts: 0
Free Member
 

What dd said, take all his clients and make a complete break from it.


 
Posted : 04/01/2014 8:08 pm
Posts: 0
Free Member
 

The business was set-up from the what remained of our family business. Even now 60%+ of the current customers were originally mine. My MD has no experience of print whatsoever - he couldn't even turn the digital printer or computers on.

To be harsh - so what? That was then, this is now. You had plenty of experience of print and ended up in a hole. He has no experience but has kept you in work for five years.


 
Posted : 04/01/2014 11:24 pm
Posts: 0
Free Member
 

Grab it by the balls and go for it....IF....you are confident that you have a valid business model.

Your boss is laughing his way to the bank every month, keep that mental picture when you realise the debt has been long paid.

Don't give him a hint, get everything setup-and then go live overnight.

take on a couple of jobs as a taster before setting up business properly.

If you can do this without him knowing this is a really good way of ensuring you are 100% setup and ready.

Take your contacts with you (this is legal), make sure you contact existing contacts personally and explain how you (the person they pay to deal with) can now be contacted.

Life is short, if you are confident then do it!


 
Posted : 05/01/2014 12:40 am
Posts: 0
Free Member
 

Take your contacts with you (this is legal)

It's not as simple as that...


 
Posted : 05/01/2014 12:45 am
Posts: 0
Free Member
 

Without a signed contract specifying not to profit/contact active business contacts after termination other than the moral debate how would this be complicated
(genuinely interested as considering the same)


 
Posted : 05/01/2014 1:50 am
Posts: 13617
Full Member
Topic starter
 

Bump for the weekday folk...


 
Posted : 06/01/2014 11:20 am
Posts: 251
Full Member
 

I may have missed this but are you proposing to use any machinery/computers owned by your employers business as a part of this new venture?

If you're buying complete kit to run your own print business part time then why not maximise the return on it and run it full time?


 
Posted : 06/01/2014 11:24 am
Posts: 12865
Free Member
 

It's not really clear to me from your OP whether your side business will be "design only" i.e. you can do it 100% from home in your own time or "design/print" using the company equipment (outside of normal working hours). If it's the former then I would say it's fine, if it's the latter I would say you definitely need to get the OK from the MD.

Of course there is also the fact that (reading between the lines somewhat) you had a family business that was either failing or had a financial crisis for some other reason. Your current boss (a friend?) put up money to keep you employed despite not needing the business and not knowing anything about it! If you're unhappy with the current situation, broken promises, etc. then that's understandable but it sounds to me you at least owe the boss to be straight with him.


 
Posted : 06/01/2014 11:28 am
Posts: 13617
Full Member
Topic starter
 

I may have missed this but are you proposing to use any machinery/computers owned by your employers business as a part of this new venture?

No - I have enough trade contacts to be self-sufficient.


 
Posted : 06/01/2014 11:30 am
Posts: 5559
Free Member
 

Nothing illegal and you can [ pretty much ] do as you please as you have no contract

I agree they will sack you as soon as they find out, DD's advice is the best if you want to really make a go of it, but its your shout


 
Posted : 06/01/2014 11:30 am
Posts: 0
Free Member
 

So reading between the lines it sounds to me like...

Your family firm was unprofitable/in trouble
New MD rescues firm and keeps you in employment
Firm continues to be unprofitable in its original guise but with some diversification (which you have lead) you can reach break even.

So why not see this as an oportunity to work together, he as a valuable source of capital, you as the brains and manpower behind the operation. See if he will agree to some sort of revenue sharing deal, maybe you get a pay rise in the form of equity in the business, at the very least try to agree a bonus based on company performance.

Then rather then trying to make a small off shoot work, work on building the new work up from 25% as part of the overall business. Offload unproffitable customers and retain the ones that do make some money. You both benefit, he stops losing money, you don't have the risk/cost of setting up something new and can keep your reliable wage and benefit from any future success.

If he doesn't want to go for it then leave and set up on your own, above board, but why create an issue when there is a mutually beneficial solution available.

Just make sure you get it in writing. A contract of employment isn't just about getting shafted, it will be of benefit to you as well. Even if nothing changes.


 
Posted : 06/01/2014 11:47 am
Posts: 12
Free Member
 

You don't have to have a written contract of employment. By accepting the job you have entered into an employment contract and there are "implied terms" within that. Not having a part time job could be an implied term.

True, though (I'm no employment lawyer BTW) I'm pretty certain your key terms do have to be put in writing. So, if you have nothing, your employer is in breach of its legal duties. It's worth remembering this, as it could have a bearing if you fall out.

It is true that almost every contract (whether written or unwritten) - including employment - will have terms implied by law. I don't know whether restrictions on having another job can be implied.

Non-compete and non-solicitation provisions (aka restrictive covenants) are unlikely to be implied into any contract, other than in very limited circumstances. If nothing like this has ever been mentioned or explained (or hinted at) then you could have a strong argument there isn't anything to stop you setting up and allowing any number of existing customers come to you.

If it was me, I'd set it up and, accepting the difficulties of running a business outside my main employment, see if there's any appetite for any customers to "come back". And then either hit the boss with pay and rations request (EDIT: as jfletch describes) or just naff off and poach everyone.

The risk you run is how much he'd attempt to tie you up with (potentially spurious) legal claims.


 
Posted : 06/01/2014 11:48 am
Posts: 0
Free Member
 

Without a signed contract specifying not to profit/contact active business contacts after termination other than the moral debate how would this be complicated

Because contractual terms don't all always have to be written and because employees' duties don't all arise only from contract.


 
Posted : 06/01/2014 12:45 pm

6 DAYS LEFT
We are currently at 95% of our target!