Starting my own side-business, while working full-time for a major corporation...

[Irvine]

I plan to start my own business while working full-time for, let's say "Sony Walkman". I would like to sell aftermarket accessories to my current "Sony Walkman" client base.
I would do this indirectly: 1) I would never advertise to "Sony Walkman" that I own this side-business,2) My spouse would run the day to day operations, and sales for this new business(the public side),3) I would solely be a "silent partner" so to speak- possibly "guiding" my side-business to my current "Sony Walkman" clients.
What risks would I be taking? Am I risking termination or litigation from "Sony Walkman"?
Note: OEM accessories for "Sony Walkman" account for approximately 5% of their revenue. "Sony Walkman" has not made any formal expectations (in writing, or in the form of a quota), to sell "Sony Walkman" OEM accessories. In fact, it is widely known through out the office that 95% of "Sony Walkman's" sales representatives sell these aftermarket accessories to their current "Sony" clients for their own personal gain, under the counter (illegally). It's almost approached by everyone at "Sony" as "one of the secret perks of the job".
I don't want to do this illegally (according to the IRS)-Please help

 

[JETX]

In my opinion.. this would be a big 'NO-NO' and, upon discovery, would probably subject you to termination and even possibly civil and even riminal charges.

The problem is that you will be using THEIR property (the client list), for YOUR personal benefit. This will probably violate a number of your employment policies and would be considered theft.

Let's reverse the roles for a second... let's say that your 'new venture' took off and was selling like gang-busters. In fact, it was doing so well, you had to hire additional help to take orders and calls from YOUR customers. As a part of doing your business and for your marketing needs, you had your employees gather customer information into YOUR customer database. However, unknown to you, one of the employee's had decided to start a new business and was using YOUR client information garnered from YOUR database for HIS sales. Would you say, "Hey, no problem, keep up the good work.". Probably not!

Also, I don't think the courts (or the prosecutor) would accept a "But.... everyone does it" and "Its a 'secret' perk" defense.

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Steve Halket
Judgment Recovery of Houston
[email protected]
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!

[This message has been edited by Halket (edited July 09, 2000).]