Help & How-To

Unfortunately, this is a dilemma that faces all business owners large and small. It doesn't matter if your business is window tinting or architecture, developing expertise and a reputation within a specific area and then transfering that knowledge to someone that works for you invites the risk of either having that person recruited by another company for better compensation or having them go into business as a competitor. Either way, it is not a very appealing thought; however, the plain truth of the matter is you can't grow without bringing on additional talent.

So, the question isn't whether or not you hire and train people in order to grow your business, but how do you reduce the risk of having that employee go into competition against you? There are myriad answers to that question. You can try to prevent competition through the addition of a noncompete clause within your employment contract. Although states like California tend to ignore noncompete clauses, it may deter an employee from working for a competitor or using your trade secrets/knoweldge against you by starting their own business.

Another way to handle this would be to reward a key employee through better compensation or an equity stake in the company. An employee that is content usually is not anxious to trade that comfort level for the risk of starting a new business or helping to build another business if they are already well rewarded for current efforts.

In the end though, if you want to grow your business, you will need competent help that will provide value to your business and increase your reputation. If you are good at what you do, have competitive prices, treat your customers well so they stay loyal to you and recommend you and any employees you bring on increase that reputation, your company should grow and withstand any defections from any employees you hire.