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Ask HN: Approaching day job's customers about startup?
I'm posting this from a fresh account, hope that's OK. I've been a HN member for 2+ years.
I'm in a situation that I hope some of you have been in as well. I have a day job but spend nights and weekends building out different ideas.
I've identified a need from my work at the day job, but it's not the company I work for that experiences the pain I'd want to solve, but some of the customers.
Now, my question is: what would you think about me approaching my day job's customers about being beta customers for my new app? Is it unethical, business-wise?
I wouldn't be competing with my day job, as this is a new offering that they don't have, but I would be using the fact that the customers know me from working with me at company X to sell them on idea Y, while still being employed by X.
- swombat 17y agoYes, it would be unethical. Simply put yourself in the shoes of your employer - what would you think if you were in their place? You've used the detailed business knowledge you gained through their business to develop a product that competes in the same space (it doesn't matter if it's not a direct competitor - it might be part of their future development plans). And now you're going to also use the contacts you made through your job with them to sell your new product!? Of course they'll think it unethical. I think the only way to do this ethically would be to leave your employment and either go full-time on your new product, or do some freelancing in your current industry to support yourself, or find employment in a different industry before you start approaching potential customers. I'd go for the second option, myself, if you can.
- k123 17y agoThanks for the reply. It might just come to that, although like we discussed on #startups, I don't think there is an ethical difference since I will be using knowledge and contacts gained through my employment anyway.
- _delirium 17y agoWhat kind of customers are we talking about? I think it's more likely to run into trouble if the customers are themselves large companies. If the customers are small---individuals or mom-and-pop restaurants or something---it's probably easier to reuse the contacts. That's just a guess, though. The current company would probably not be happy about it either way (though that's not necessarily determinative, because companies are unhappy about anything that remotely smells like competition, regardless of whether it's ethical or not).
- hga 17y agoI think it really comes down to the degree in which your idea competes or potentially does so with the company you are currently work for. If it's completely unrelated ... to come up with something wild off the top of my head, say you've noticed something that could improve the landscaping you see as you go to the targets' front door, and your company sells business software of some sort, sure, go for it with care and the points that _delirium made. But if it's something you could suggest to the company you're working that they add to their lineup, then you really need to separate from it before pursuing this. And states have very strong and enforceable laws about using the customer lists of your old company (note this doesn't have to be codified in your employment agreement), I'd consult a law library and lawyer for that. And of course if you live outside of California you may have to wait a year or two for a non-compete to expire.
- dkersten 17y agoAs far as I know, many employment contracts specifically disallow the use of the employers clients regardless of if you compete or not - but I'd check your contract with your current employer.
- hga 17y agoAnd get some legal advice. Just because they put it in a contract doesn't mean the provision is enforceable. Lots of things employers try in this area are held to be against public policy (e.g. you can't sign away your right to be employed by anyone or to be employed in your general field of e.g. programming). Other restrictions are held to be over broad, i.e. duration and territory stuff, but that would generally take a court case to hash out. The contract must also be a real contract, e.g. there must be consideration on both sides. Signing one when you get a new job is OK, your consideration is the new job. Being presented one after you're hired with a "sign it or lose your job" is not, they've got to give you something in return.
- dkersten 17y agoSome good points! Thanks for pointing them out.