I’m leaving to create my own company: how to negotiate my exit

I’m leaving to create my own company: how to negotiate my exit

I’m leaving to create my own company

Introduction

The desire to win more independence, revenue, maneuver margin or creativity may push some of us to be entrepreneurs. This is no doubt one of the best professional way for accomplishment.

Reasons to go down that route are numerous:

  • The sentiment that you have seen and done everything about a job or a company;
  • Hierarchy is more and more a burden for you;
  • You want more control over your life;
  • You can’t find a satisfactory job as an employee;
  • Etc.

In this case it is key to have the necessary financial means/reserves that you need to get on that project as relaxed as possible and therefore a good severance package from your current job is important.

Now at this point one very common mistake is to be avoided: “I’m going to talk to my current boss about my project and he’ll support me”, or “Let’s put the cards on the table with my current employer”.

Coaching

I’m going to talk to my current boss about my project and he’ll support me

Highly unlikely!

And, why would he do it anyway?

Even if he is entrepreneurial-oriented himself, chances are he’ll give a rather cold welcome to your project. Even if he’s a very cool fellow (which happens), why would he be happy about your project since he needs you right now? He may even be worried that you’re about to create some additional competition by doing so, or even use some of the information or techniques you have learned where you are now.

So, be careful. Even if creating your own business is a very valuable and blooming experience for you, don’t mention it to your boss before you leave.

Unless he wishes you to go (but for other reasons), he is probably not going to help you since this will be posing him a short-term, organizational problem as he needs you right now so He’s going to have to hire your replacement.

He may also cast you away from information, client cases & projects, and useful knowledge which could help you and your future project particularly if he saw you now as a potential competitor.

Not only is he probably not going to help you but will he wait for your resignation as he will not see why, under the circumstances, he should negotiate a costly severance package through a Mutually Agreed Contract Beak-up or even a firing process.

At best, if he’s got good intentions, he may suggest an extra bonus providing he can justify it to his own management but it will be probably lower than what you could have got by other means.

Now your business inception requires some savings. It may be hard to pay yourself at first and you may have to make significant investments. So, you’ll be a lot more serene if you go with an allowance.

To achieve this, you’ll have to lay a favorable ground to negotiation. It is your current employer who needs to see an interest into letting you go, not the other way around.

As an example, pointing out malfunctions or dissatisfactions, may leverage such as discussion. On the other hand, talking about your project of creating your own business offers little if not no ground for negotiation.

Beyond a trust issue your boss may have, he’ll be tempted to just wait for you to leave at no direct financial cost to him.

Let’s play cards on the table with my employer

Your desire to be frank (or compulsively say it all) reinforced by the potentiality of doing business with your current boss or company on the future may lead you to share your project with him.

May be also that you reckon that you need to license your business before you leave your current job. Now this may be a bad idea as he may come across that information and easily check it. Your current HR may see your motivation dropping and wonder if you weren’t investing your energy into something else and check it also.

If licensing your corporation is needed now then have it done under one of your associate’s name so that you don’t namely appear on the official company registry extract (Kbis).

Conclusion

You have nothing to gain at first sight by divulging your project to your current employer. Something else must be used to lay the ground of a good negotiation. Otherwise there would be a risk that your boss damages your reputation on the market you’re targeting.

To know more about how to negotiate exit please use the enclosecontact form.

 

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