What about your previous company non-compete?

Berkonomics

Entrepreneurs tend to remain in the business niche they know best. Some of these entrepreneurs starting a new company are alumni from companies that would be a competitor to the enterprise being created or joined. Rules about non-compete agreements . So, what are the rules about those pesky non-compete agreements signed upon your discharge, or upon the sale of your previous company?

What about your previous company non-compete?

Berkonomics

Entrepreneurs tend to remain in the business niche they know best. Some of these entrepreneurs starting a new company are alumni from companies that would be a competitor to the enterprise being created or joined. Rules about non-compete agreements . So, what are the rules about those pesky non-compete agreements signed upon your discharge, or upon the sale of your previous company?

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Non-competes, gray areas, and salvaging a failed purchase

Berkonomics

Last week we introduced the subject of non-compete agreements. Certainly, the buyer’s asset purchase documents included a non-compete clause, usually valid for two years from the date of the closing. After the non-compete expires. Email readers, continue here…] How about after the two-year limitation in your non-compete agreement? The non-compete agreement does expire when stated.

Non-competes, gray areas, and salvaging a failed purchase

Berkonomics

Last week we introduced the subject of non-compete agreements. Certainly, the buyer’s asset purchase documents included a non-compete clause, usually valid for two years from the date of the closing. After the non-compete expires. Email readers, continue here…] How about after the two-year limitation in your non-compete agreement? The non-compete agreement does expire when stated.

What about previous company non-competes?

Berkonomics

Entrepreneurs tend to remain in the business arena they came from. What is the rule about those pesky non-compete agreements signed upon discharge or sale of the previous company? The good news is that if you were not a significant (usually 5% or more) selling shareholder of a previous company, many states specifically exempt non-compete agreements signed between companies and their employees or minority shareholders.

Schrödinger’s Start-Up — Why VCs Don’t Sign NDAs or Non-Compete Agreements

Austin Startup

Every so often, I get an email from an entrepreneur that starts something like this: “By reading further, you agree to the terms of our non-disclosure and non-compete agreement” My immediate reaction is to delete these emails with prejudice. Asking for one, in and of itself, demonstrates a lack of sophistication on the part of an entrepreneur.

Massachusetts Has An Innovative Approach To Immigration Reform

Feld Thoughts

First, he’s proposing to ban non-competition agreements. Even though I often say that was 11 years and 364 days too many for my “non-big city, non-east coast” personality, Boston still has a sweet spot in my heart. The Massachusetts non-competition situation has always been stupid. In 2009, my partners and I at Foundry Group joined a coalition of VCs to try to eliminate non-competition agreements in MA.

Should Entrepreneurs Attend Business School?

Up and Running

As I read stories of college dropouts who had successfully sold tech companies, or entrepreneurs with innovative ideas who made it big on Shark Tank, it became clear that there was no set path to startup success. While there is no substitute for operating experience, there are many parts of the business school curriculum that are directly useful to the way an entrepreneur should think about the business they are starting. Do you think entrepreneurs should go to business school?

26 Entrepreneurs Share Their Tips and Tricks of Staying Motivated

Hearpreneur

Here’s the various ways entrepreneurs and business owners stay motivated in business. #1- So I make working out, sleep and meditation all non-negotiable. Every entrepreneur is lured into business ownership for similar reasons like being their own boss and financial freedom. They keep me motivated to do the hard work it takes to be a successful entrepreneur. 16- Being part of the Entrepreneurs’ Organization (EO). How do you stay motivated as an entrepreneur?

How to Take Your Business to the Next Level

Women Entrepreneurs Can

Join Forces with a Non-Competing Company. Teaming up with a business in a similar niche – but one that is non-competing – so you can promote each other’s products can really give your business a boost and help you make more money.

5 New Venture Mistakes That Can Cost You The Business

Startup Professionals Musings

Entrepreneurs often put off the hassle and the cost of filing a patent until first funding. Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket.

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How To Scale Your Startup Far Beyond Organic Growth

Startup Professionals Musings

Every entrepreneur tries to maximize his startup growth by building and selling more product and services for the widest geographic area that he can support. Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies.

Merger 259

Entrepreneur Helps Businesses Focus on Passion Points Instead of Pain Points to Get Results

Hearpreneur

Especially with changes from Google and the introduction of platforms like LinkedIn Pulse, content has a lot of value for entrepreneurs and business owners when leveraged correctly. Lisa Manyon through her company Write On Creative provides coaching, consulting and copywriting services for entrepreneurs and business owners helping them to communicate accurately and effectively to be successful. Share. “Content is King.”

10 Keys To Building Unstoppable Startup Partnerships

Startup Professionals Musings

A common challenge faced by every entrepreneur is that they don’t have the bandwidth, interest or skills to do everything that is required to build their startup. Investors worry about a single entrepreneur getting overloaded, disabled or led astray, with no balancing and supporting partner.

7 Ways Getting In Bed With The Enemy Can Be Win-Win

Startup Professionals Musings

Entrepreneurs seem to have blinders on when looking at competitors. Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement.

Merger 263

10 Steps To Finding The Right Startup Co-Founder

Startup Professionals Musings

A common challenge faced by every entrepreneur is that they don’t have the bandwidth, interest or skills to do everything that is required to build their startup. Investors worry about a single entrepreneur getting overloaded, disabled or led astray, with no balancing and supporting partner. Yet from my own years of experience in the startup community, here are 10 common steps that have worked for other entrepreneurs: Write a "job description" for that ideal partner.

5 Startup Legal Shortcuts That Can Be Expensive

Startup Professionals Musings

Entrepreneurs often put off the hassle and the cost of filing a patent until first funding. Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers. Taking money from unknown or non-professional investors. entrepreneur startup legal shortcuts investor founder business

Five Legal Pitfalls That Sink Many Good Startups

Startup Professionals Musings

Entrepreneurs often put off the hassle and the cost of filing a patent until first funding. Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers. Taking money from unknown or non-professional investors. legal problems entrepreneur founders stock business

Questions To Ask Before Signing a Commercial Lease

Women Entrepreneurs Can

Don’t sign a lease for a particular property only to discover that a similar, competing business will open next door to your own. Negotiate a non-compete type clause that ensures your business will be the only one of its type on the property.

10 Keys To Finding That Perfect-Fit Business Partner

Startup Professionals Musings

In my experience, the initial idea for a new product usually comes from a single entrepreneur, but the implementation plan for a new business requires a team, or at least a co-founder. I may indeed be able to mention a couple of possible names from my meeting with others, but I believe that finding the right co-founder or partners is more critical than any other task for a new entrepreneur, and it needs to be done personally. Support local university entrepreneur organizations.

Startups Need Mergers And Acquisitions For Growth

Startup Professionals Musings

Every entrepreneur tries to maximize his startup growth by building and selling more product and services for the widest geographic area that he can support. Many entrepreneurs are paranoid about the partnership approach, and think that M&A is only an alternative for large companies who are flush with cash. Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies.

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When is a Startup Non-Disclosure Really Required?

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. You won’t last long as an entrepreneur in this category, since a startup is all about taking risks. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions. NDA entrepreneur startup CDA non-disclosure agreement business

Accelerate Startup Growth by Looking Outside the Box

Startup Professionals Musings

Every entrepreneur tries to maximize his startup growth by building and selling more product and services for the widest geographic area that he can support. Many entrepreneurs are paranoid about the partnership approach, and think that M&A is only an alternative for large companies who are flush with cash. Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies.

Merger 186

Tough Competitors Are Your Best Strategic Partners

Startup Professionals Musings

Entrepreneurs seem to have blinders on when looking at competitors. Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Typically, there are market opportunities that neither of your core competencies can win alone. Expand core competency and solidify strengths.

7 Shortcuts That Can Kill A Startup Business

Startup Professionals Musings

Clarify up front the potential for a conflict of interest or violation of a non-compete clause, and confirm the answer in writing. Remember that all businesses, even non-profits, require revenue to survive and prosper. Too many entrepreneurs assume they can save money or time by shortcutting these early, and catching up later after the business has more traction. Actually, the biggest shortcut I see in new entrepreneurs is a lack of planning ahead.

For a Startup, Two Heads are Always Better Than One

Startup Professionals Musings

If you are a first-time entrepreneur, I recommend that you team with a co-founder with experiences, connections, and a skill set that complements, but doesn’t duplicate yours. Even experienced entrepreneurs need a partner to back up each other and improve fundability. Actively participate in local business groups and events, like The Indus Entrepreneur (TiE) and entrepreneur forums. Watch out for non-compete clauses, and conflicts of interest with the current employer.

7 Ways That Startup Competitors Can Win By Partnering

Startup Professionals Musings

Entrepreneurs seem to have blinders on when looking at competitors. Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Typically, there are market opportunities that neither of your core competencies can win alone. Expand core competency and solidify strengths.

Idea Non-Disclosure Demands Kill Investor Interest

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. You won’t last long as an entrepreneur in this category, since a startup is all about taking risks. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions. non-disclosure entrepreneur investor CDA business

Demand 182

Don’t Ask Known Investors to Sign Non-Disclosures

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. You won’t last long as an entrepreneur in this category, since a startup is all about taking risks. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions. non-disclosure NDA entrepreneur startup business plan

NDA 185

Paranoid Companies Miss the Best New Opportunities

Startup Professionals Musings

It’s a great survival strategy for small companies or entrepreneurs, and a good expansion strategy for even the largest companies. Others will now buy your travel magazine over a travel book, for example, which competes with both your magazine and the video individually. If your "competitor" isn't really competing with your direct market, you can refer business to each other without anyone losing customers.

Merger 196

Ten Steps in Choosing the Right Startup Partner

Startup Professionals Musings

If you are a first-time entrepreneur, I often recommend that you team with a co-founder with experiences, connections, and a skill set that complements, but doesn’t duplicate yours. Even experienced entrepreneurs need a partner to strengthen their position. Actively participate in local business groups and events, like The Indus Entrepreneur (TiE) and entrepreneur forums. Watch out for non-compete clauses, and conflicts of interest with the current employer.

For a Startup, Two Heads are Always Better Than One

Gust

If you are a first-time entrepreneur, I recommend that you team with a co-founder with experiences, connections, and a skill set that complements, but doesn’t duplicate yours. Even experienced entrepreneurs need a partner to back up each other and improve fundability. Actively participate in local business groups and events, like The Indus Entrepreneur (TiE) and entrepreneur forums. Watch out for non-compete clauses, and conflicts of interest with the current employer.

Your Toughest Competitor May be Your Best Partner

Startup Professionals Musings

It’s a great survival strategy for small companies or entrepreneurs, and a good expansion strategy for even the largest companies. Others will now buy your travel magazine over a travel book, for example, which competes with both your magazine and the video individually. If your "competitor" isn't really competing with your direct market, you can refer business to each other without anyone losing customers. entrepreneur startup competitor coopetition business

Tips For Hiring An Independent Contractor

YoungUpstarts

While you don’t need to withhold payroll taxes from an independent contractor, you are responsible for issuing them at 1099-NEC Form for Non-Employee Compensation at the end of each calendar year. For example: A non-disclosure agreement (NDA). by Lesley Pyle, MSc.,

Hiring 207

Legal Mistakes Every Startup Can Avoid

Startup Professionals Musings

Entrepreneurs often put off the hassle and the cost of filing a patent until first funding. Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers. Tags: legal mistakes entrepreneur startup business

5 Ways To Protect Your Idea From Theft

YoungUpstarts

With the constantly increasing ease in which information can be shared, it’s becoming harder for business owners and aspiring entrepreneurs to secure their business ideas to ensure competitors or other people do not unfairly steal them. But even with this ongoing problem, businesses owners and aspiring entrepreneurs should not just keep their ideas to themselves, just so they can protect them from those who will pilfer them. Have they supported any competing businesses in the past?

7 Reasons To Turn The Enemy Into A Strategic Partner

Startup Professionals Musings

Entrepreneurs seem to have blinders on when looking at competitors. Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Typically, there are market opportunities that neither of your core competencies can win alone. Expand core competency and solidify strengths.

Startup Non-Disclosure Agreements are Overrated

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. You won’t last long as an entrepreneur in this category, since a startup is all about taking risks. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions. Tags: non-disclosure entrepreneur startup business

How to Select an Ideal Startup Co-Founder

Startup Professionals Musings

If you are a first-time entrepreneur, I often recommend that you team with a co-founder with experiences, connections, and a skill set that complements, but doesn’t duplicate yours. Even experienced entrepreneurs need a partner to strengthen their position. Actively participate in local business groups and events, like The Indus Entrepreneurs (TiE) and entrepreneur forums. Watch out for non-compete clauses, and conflicts of interest with the current employer.

You’ve Reopened Your Business… But Where Are Your Customers?

Women Entrepreneurs Can

There are lots of other non-competing businesses that are in the exact same boat. It’s the nightmare scenario that small business owners have been dreading.

Why Lawyers Don’t Run Startups

Steve Blank

Why Entrepreneurs Hate Lawyers. Our conversation led us to Scott Walkers post Why Entrepreneurs Hate Lawyers and why we both recommend that entrepreneurs print it out and tape it to their wall. When I was a younger entrepreneur my answer would have been, “Ok. We could easily agree to a 90-day non-compete as a sign of good faith (what Visio didn’t know is that we had no bandwidth to take on another customer while we were getting their software installed.).

How to hire the right developer for your tech startup

The Next Web

Attend meetings in your area for entrepreneurs in technology and you will find that there are many people who might just be looking for this kind of position. Check out LegalZoom for tutorials how to make a non-disclosure and non-compete agreement. Entrepreneur How-To's

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Texas Startup Manifesto 2.0

Austin Startup

It’s like a dam has broken and now there is a flood of new entrepreneurs, investors, and big companies moving to Texas. In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before.

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