This tutorial explains what is a non compete agreement. Please visit http://www.problemio.com to check out my mobile apps for starting a business.
In this video I explain what is a non compete agreement, and how to prevent your employees from stealing your clients with a Non Compete Agreement.
Quite often, people using my apps come to me and ask me what tools they have to prevent their employees from potentially stealing their client lists, or divulging company secrets to the competitors of that business. There are a few options, and one of those is a non compete agreement.
There are two strategies that I typically recommend to people. The first strategy is the legal approach. Specifically, it is to use a non compete agreement. A non compete agreement typically prevents people from competing with your company or working for competitors of your company for two years. Of course, the terms of the non compete contract can be negotiated. The negotiation of the non compete agreement clauses typically happens during the hiring process of the employee because that is essentially the only time that this employee has negotiation leverage since you want to hire them.
The other way to prevent your employees from stealing your clients, or going to work for a competitor and taking your business secrets there is a much more simple one. It is simply to work with people who have a good reputation and who are honest. That kind of an approach will take you a long way in making sure that your employees don't turn on you. So work with honest and trustworthy people, and you will not need to invoke your non compete agreement.
And remember, even if you do have a non compete agreement, to enforce it you actually have to litigate. And that is expensive. So you really want to take preventative measures to ensure that your employees do not begin stealing your clients.
The business apps I created are available on Android's GooglePlay, the App Store from iOS, and the Kindle app store. Here are the links:
iOS business plan app:
https://itunes.apple.com/us/app/business-plan-and-coach/id554845193
And here is our 4-app business starting course on the Kindle:
http://problemio.com/business/kindle_business_apps.php
And here is our 4-app business starting course on the NOOK:
http://glowingstart.com/best-nook-business-apps/
Non compete agreement
Here is the entry from Wikipedia about what is a non compete agreement, in what states the non compete agreement is valid, and how to enforce a non compete agreement: http://en.wikipedia.org/wiki/Non-compete_clause
And here is the http://www.entrepreneur.com entry on the non compete agreement:
http://www.entrepreneur.com/encyclopedia/noncompete-clause
And here is the legal dictionary's definition of the non compete agreement:
http://legal-dictionary.thefreedictionary.com/Noncompete+Agreement
Need to learn what is a non compete agreement? This video explains it!
What is the difference between LLC and S Corp
https://www.youtube.com/watch?v=S0IeyPyMWGw
What is an EIN number:
https://www.youtube.com/watch?v=eTwtTugsIJE
Doing business as self:
https://www.youtube.com/watch?v=R91f60Klgzw
Difference between patent, copyright and trademark
https://www.youtube.com/watch?v=Vov9JeX-WF8
How to protect business ideas with NDA
https://www.youtube.com/watch?v=3LQtO7q8xug
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