When to Tell the Boss You’ve Started a Company

Dear J.T. & Dale: I’m starting a company but need to keep my current job for the benefits. I have a great relationship with my boss, and I think I should be honest with him about my plans, but my wife thinks I’m crazy. Opinions? — Wallace

Dale: Tell your boss about your new business and he’ll say he’s happy for you … but, without his intending it, his opinion of you will start to shift. You are no longer his beloved employee but, rather, a soon-to-be former employee. Unbidden, suspicions will arise. Will you sneak company time for your outside endeavors? Will you set a precedent and encourage others to seek self-employment? If you succeed, will you steal away co-workers?

J.T.: In fact, if your new company will compete with your current employer, you might be violating company policies. Check your employee handbook. Beyond that, most people who start companies while employed are very careful to make sure it doesn’t affect their current performance. You should do your best not to allow your entrepreneurial undertakings to creep into your workday with your employer. Resist the urge to do your own business e-mails or phone calls. The first time you get caught, your manager could begin to question your loyalty and effectiveness.

Dale: I’ll take that as another vote for silence. But I want to think ahead, about who else to tell. Here’s the principle: Tell anyone, and you tell everyone. And when your boss discovers that you’re leaving and didn’t tell him, it will be doubly difficult to remain sympathetic. So, here’s my conclusion: Go kiss your wife and thank her for being right, then tell no one at work.

One Response

  1. Jason Cohen Says:

    I disagree with the idea of hiding information from your employer.

    When your boss finds out, you’ll be open to a lawsuit, particularly if your employment contract talks about who owns the work you did.

    Here’s a detailed post defending this argument:

    http://blog.asmartbear.com/blog/starting-up-while-employed-admit-it.html

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