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Hi lowtek,Welcome to the forum, Ed. It's a rare breed to have talent in both software engineering and graphic design.
How enforceable is that clause in your employment contract? If the product you're going to sell doesn't conflict with their core business, I'd be inclined to speak to a lawyer to see how that works in the real world. Just because the contract says something, doesn't necessarily mean it's iron clad.
If you really can't do the business, can you perhaps start it up in someone else's name? How about a sibling / wife / other really close associate?
I think you are right. It is most likely not iron clad, because it doesn't interfere with their business. My initial thought was to avoid the confrontation, but maybe I should be less nervous about it. It s more about the initial phase where it is not clear whether or not this will be successful. As it is a Saas product, in worst case scenario, I might have to jump in to get problems fixed during business hours. So in that sense it could have an impact for my employer.