In tricky situation, prepare for both best and worse scenario

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Dear Joan,
I enjoy reading your column and many of your suggestions have been very helpful. I wonder if you might address the question of starting a small business. Particularly, the delicate issue of informing one’s employer of such intentions.

I am in the process of writing my business plan, and I have already lined up several potential clients and projects. The services I will provide will be similar to my current situation, but offering "more." Even though I will have to notify my accounts, I was not planning to "take" the company’s clients with me.

I have spoken to a few individuals whom I have worked for and with in the past ten years, and they were very receptive to the idea of working together again. My small business could be an asset to my current employer as well, but I am concerned that when my boss learns of my plans to leave (early 2000), I will be immediately terminated out of spite. The person I work for is somewhat self-centered and very controlling. (Most incoming and outgoing communication must go through the boss and I have heard this person speak of being "betrayed" by other employees who have left the company to get married and start families.)

Does the two-week notice rule apply to leaving a position to start a small business? Does an employer have to provide health insurance coverage for 18 months after an employee leaves a company for whatever reason? Would it be wise to not seek projects from my current employer should "hard feelings" develop?

Answer:
Congratulations on your new venture! If your actions so far are any indication, you are likely to be very successful. Many people try to start a business without writing a business plan first. They don’t take the time to line up some potential clients before they leave. And, by the way, many people are successful because they decide to offer services or products their past employers offered, but they add more value or put a new twist on it. You’re not a traitor; you’re a classic, American entrepreneur.

When you leave, it’s still appropriate to give two week’s notice. The purpose is to give the employer a chance to hire someone else, or at least make plans for who will cover your work when you leave. Whether your manager chooses to take advantage of that two week window is another story. If your manager felt betrayed by someone who left to raise a family, he or she could come apart at the seams when your reason for leaving becomes clear.

I wouldn’t be surprised if you are fired on the spot. I suspect a boss like this will even accuse you of sneaking around, stealing clients while you were doing your job. Let’s assume a worse case scenario: If the person is extremely insecure (and I’ll bet that’s the case) he or she will probably proclaim you a villain to your former co-workers, in the hope that they won’t dare to follow in your footsteps. Your manager could even attempt to discredit you to customers. He or she might do this in a number of ways, from the subtle to the blatant. For example, your boss won’t want you to notify your accounts of your departure, for fear you’ll bad mouth the company and steal clients.
Instead, your boss may tell clients you were fired, or is glad you left, and hint at shoddy work or unscrupulous business practices.

Prepare for the worst. Make sure you take the ethical high road, when it comes to approaching potential clients. Give your current accounts the very best service up to the minute you decide to leave. Don’t count on your current employer for future business. Prior to leaving, get commitments from potential clients, and if possible, start the work on the projects in the evenings. (If your boss does try to badmouth you with your clients, they will have already experienced some of your good work.) Make sure your relationships with co-workers and clients are so good, no amount of sabotage will discredit you.

Now a best case scenario: When you approach your boss with the news, position yourself as a potential "partner" who could enhance his or her services to clients. Hopefully, your manager will see the wisdom of joining forces.

On the question of health insurance coverage, COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that in most situations requires employers to offer coverage under the company plan for up to 18 months. The former employee pays the premiums to the past employer. The employer then pays the insurance company. In some cases, employers can charge an additional 2% administration fee.

Best of luck to you in your new venture. Hopefully, your boss will realize attempts to hurt your new enterprise will only make him or her look insecure and vulnerable. In any event, you will be prepared.

Your career is your responsibility.  Create your own job security by acting more like an entrepreneur at work. Learn how to “sell” your skills to your organization, add more value on the job, develop your internal advocates and identify your personal motivators with Joan Lloyd’s You, Inc. – Success Strategies to Boost Your Career. Take charge of your career, today!