Starting a new job..how do I steal my current employers customer?

[biggeemac]

This is a continuation of this thread https://www.thefastlaneforum.com/general-business-discussion/39481-i-think-im-gonna-sick.html

So, I was offered a position at a new company. I want to build my own company's infrastructure and procedures and solicit business from my current boss. What is the best way to make contact with the powers that be of the clients and let them know that I am leaving their current provider and starting my own business and would...at some point when everything is ready, like to provide services to them?

Has anyone here ever "stolen" clients from a former employer and how did you approach it?
Is it appropriate for me to disclose the skeletons in the closet here where I work?
Should I contact the decision makers or influencers of our customers and let them know that I am departing the company because I am dissatisfied with the level of service that we provide the customers?

Any help here would be appreciated.

 

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[Mike39]

Maybe its just the silly kid talking but I would much rather build a new client base, I would't enjoy having to look over my shoulder on a daily basis but that's MHO. Also, it will be more difficult because to convince people to switch, you will have to beat your current bosses prices and that will reduce your margins somewhat

 

[leono]

How would you feel if one of your employees did this to you?

It's one thing for former clients to hear great things about a new business (you), and decide to try you out. It's another thing entirely to steal business away from your former employer.

I'd think long and hard about this. Is this really how you want to start out your business?

 

[Runum]

Hi biggeemac. Not sure if we have responded to each other before or not. I am in your neck of the woods occasionally.

Most people I know believe stealing is something you don't do even though you can. You were the one that started this thread using the word steal in the title. If you use the word in the context you did then you know it's wrong or you would not have called it stealing. Seems like you're asking us to give you permission to do something you know is wrong.

I hope you don't begin your business under the guise of stealing customers. Not a good way to build a reputation.

 

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[Likwid24]

If customers decide they like you better and want to follow you wherever you go, that's one thing. If you start telling your customers that your leaving and trash the company your with now, Aka "stealing them", that's another.

Your starting off on the wrong foot. If that's the way you think of doing business, then you doomed before you even start. Hopefully you don't go that route.

 

[biggeemac]

ok, well, please try and understand what im saying even if the word "stealing" isnt the best word. My motivation for starting this company is because of the horribly broken service that my current employer provides. I want to build something that really works, provide a service that my current employers customers would be attracted by, and perhaps convince some of them to switch providers. I called it stealing for the sake of shortening the description of my intent, but the bottom line is that I think I can provide a valuable service that works and treat the customers like they are important....they dont get either one of those currently.

 

[biggeemac]

@runum....I wasn't looking for someone to tell me its ok to do something I know is wrong. Let me state for the record that if I was able to convince ALL of my current employers customers and get his business shut down....I would sleep very well that night with a clear conscience. When someone blatantly pisses on his customers as well as his employees, I dont feel too bad when they lose everything. It doesnt make me happy to see that happen to them, but sometimes, they bring those events on themselves by not caring for anyone but themselves.

 

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[Amail]

If the service you'll provide is head and shoulders above your current employer's, the customers will abandon him and come to you. You won't need to steal anything.

I'd go about it this way:

1) Once you're on your own, get in touch with several of your employer's customers and tell them you've started your own business. This isn't unethical - you already have a relationship with these people. Tell them why going with you is better than staying with him. Paint yourself as a savior, but whatever you do, don't bash your old employer's business. You want to get the point across that you know the business, you know how to service them, and you know the flaws in the system they're currently using. You just don't want to come across as a spiteful jerk. Never bad mouth your competition - you're the consumate professional.

2) With a few customers into the fold, get some testimonials that support your pitch. Get them into your marketing materials. This will help pull in new customers.

3) Continue wooing customers week by week.

4) As you build momentum, you need to decide if there's "Room enough in this town for two of us". Do you need your employer's customers, or are there plenty to go around? If you need his customers, you should wait until you've got evidence to support the notion that he's already losing his customer base to you. If he's smart, he may be receptive to a buyout offer. Unless he thinks he can beat you at this game (and he might think that), he would be best off selling you the business. As time goes by and his customer base further erodes, his buyout price gets lower and lower. If you don't need his customers, then you're golden.

In any event, don't take his customer list, don't bad mouth him to his customers, and do everything you can to deliver twice the value to your clients.

 

[LamboMP]

.how do I steal my current employers customer?

Firstly, you need to NOT use the word "steal". They will come your way when your value proposition exceeds the current one they are receiving at your former employer.

 

[Steve W]

In your situation I would make a point of letting your existing customers know you are moving on and thanking them for their past business. If they enquire let them know what you are doing but don't force it on them and word your reasons for leaving positively rather than negatively. If they value your service enough they will do their best to remain loyal to you although it may take time for you to build up their confidence in a new business.

There is nothing wrong with competing against your previous employer when you start your business but do so by providing better value and service than them. Trashing your old employer will only cause bad feeling & antagonism & will lose you custom.

Best of luck!

 

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[Vigilante]

I thought the problem was that the guy didn't give you the huge raise you deserved. Had he given you the huge raise you wanted (the subject of your original email) you would have stayed there... so how bad could it be? You're not leaving for integrity reasons, you're leaving for salary reasons.

Please note that these are not all original thoughts, but a compilation of things I have read elsewhere on this topic with my own spin added.

Do not take anything out of the company that belongs to the employer. Customer lists, price lists, rolodex, spec sheets, forms, anything. Trade secrets are protected whether you have a non-compete or not. Trade secrets stolen typically have to be PHYSICAL, like a customer list. They DON'T own your memory, but they do own all of their physical assets. Don't remove as much as a paperclip. No electronic files, no emails, no quotations, nothing. Give them back ANYTHING of theirs you have, including ALL files, and especially your computer. If at all possible, if there is anything you have to turn into them, get a signed acknowledgement that you have given them back everything you had in your possession.

Make your own customer list, from memory. You can build your OWN database from your head, and then backfill it with publicly available information (address, phone #, etc...)

Do not use the old company name in any announcement or promotional material. Don't say: "After 14 years with Acme Widget, I am now on my own." Say: "I am pleased to announce the formation of my own business and hope that I can serve your widget needs in the future." You can't use THEIR name to promote your new business, or they can sue you for a variety of things from infringement to interference with contracts, etc...

If clients move to YOU after your change, that's fine. If you "take them" that's not. Don't "take" any clients. Let the clients switch to your new company of their own volition.

Don't discuss your business plans with ANYONE. No friendly co-workers that you think you can trust, no friendly customers, no industry contacts. NOBODY, until you leave. Trust NOBODY. Above all else... worth repeating... don't talk to a single customer about it before you quit and are no longer with the company. I wouldn't even discuss this on a forum. I would have the admins here delete a thread that you started about stealing customers as soon as you can. This thread alone is enough for someone to sue you over if you so much as poach a single customer. The thread title here is enough for you to lose a case.

Please note that NONE of the above is legal advice. I am not a lawyer, and not qualified nor able to dispense legal advice in any form. If you have any questions as to what you can and cannot do, you might want to discuss it with an attorney just to make sure you are beyond reproach.

 

[biggeemac]

Yeah, the raise was the straw that broke the camels back. We were already planning a meeting to tell him that he really sucked at running his business and how it could be fixed....raise or no raise. I am leaving because of the salary, because of how the business is being operated, and because its a very unstable environment. I cant focus on my own business when i am stressed that my employer may not last another six months.

Good information....I may or may not go after his customers. I probably will not, but if I wanted to, I wanted to know what other people had to say about it.

 

[andviv]

Vigilante, rep++

 

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[Runum]

So, how is this going for you?

 

[biggeemac]

Great, much more grown up in the head from a year ago.....anything else you wanna dig up since you have a lot of free time to dedicate to an internet forum feud? LOL

 

[biggeemac]

Speed PLUS !

 

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[Runum]

Great, much more grown up in the head from a year ago.....anything else you wanna dig up since you have a lot of free time to dedicate to an internet forum feud? LOL

No feud. I asked because I really wanted to know.

Did you succeed in your goals or did you change?

Just FYI. A year ago, I lost 50% of my customers. I had two major rehabs going at the time. My wife and I physically worked in the rehabs with our employees. They worked 40 hours and week. My wife and I worked 16 hour days/ 7 days a week for June and half of July. I was up at 6:00 am and in bed about midnight. My employees would gripe if I was 5 minutes late to the job site not knowing I had been at the site, working until midnight. Did I bitch some to my wife, hell yeah. I was bleeding cash and working 80+ hours a week for the privilege.

I didn't respond to many posts last summer because I was getting my butt kicked. I worked and survived it so far. Still bumps in the road.

I always like to see people progressing.

 

[biggeemac]

Ok, yeah, life sucked a bit a year ago. I did quit and went somewhere a LITTLE BIT less stressful. Things that have changed.....

1. I dont give a shit about my employers businesses.....its a paycheck. I give them what they pay for.
2. I stopped over-analyzing risk
3. I came up with some ideas about how to generate income outside working for an employer
4. I learned that talk was just talk and put my money where my mouth was. Committed our savings to our new import and retail business
5. I agreed to let my wife quit her job and focus on the business which has already replaced half of her income with very little effort.

Im excited because we are still building our foundation and havent really even opened our business yet, and are still able to easily profit. We're still small fish right now, but we are executing and I believe we have a great shot at dominating DFW and beyond with our niche.

I hope to have some amazing things to report a month from now. Amazing to me anyway......especially from a year ago.

 

[CommonCents]

where does it say your old employer owns those customers? Knowing a customer base in an industry is not proprietary. no other competitors call on those customers? as long as you dont have a non compete why wouldn't you let the customers know you have a new gig? I wouldn't trash any former employers, just offer the opportunity to the customers to consider a new offer. I wouldn't take any internal info with you etc.... but people do it all the time. I had a former employee leave to compete directly and he bought a similar used laptop to turn back in, and kept the company laptop w/ all the information. He got a big spanking for that.

Be honest and ethical but compete like hell!

 

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[biggeemac]

You know what.....if I was really interested in the managed I.T. services niche, I could probably do that. but I think im sick of looking at this kind of stuff. I could pretty easily set up a rock solid infrastructure and run someones entire I.T. dept out of a colo, I'm working on other things. Maybe I'll do this some other time. One of my co-workers wants to start a business like this with me, but im not interested right now......could be because im burned out doing it as my day job.

 

[TurboTT]

I didnt read all the replies, but probably should have. Anyway, not sure who you are working for but most places have you sign a form stating you cant directly quit and try to take clients from your employer. To my knowledge from past work experience there is a time frame in so many years that you cant be a direct competitor etc. need to know about what you do I guess.


My apologies after I wrote this I did go back and read others to find out this post was a year ago... sorry