Small business owners may find a diverse array of benefits from requiring all employees to execute a non-compete agreement. While sometimes viewed as crass or overkill by businesses with only a few employees, a solid non-compete agreement can make all the difference when just one employee goes rogue.
One of the many benefits of a non-compete agreement is the business value. Consider a scenario where you are interested in purchasing a business. You know the customer base is strong, and some insider secrets keep the accounts coming back year after year. How much more secure would you be in your purchasing decision if you knew that every employee of that business had executed a non-compete agreement? In other words, you can purchase the business with the knowledge that none of the employees will take the customer account information and run to a competing business. And, if they do, the non-compete agreements give you a basis for filing suit. An expertly drafted non-compete agreement can give you the benefit of value and trust.
Further, these types of agreements can give the clients confidence and a basis for building trustworthy relationships. For small businesses, in particular, even just one great client account could make or break the business. Let your clients know that you have their best interests in mind and will take the necessary steps to protect their accounts.
If you are a small business owner, or are thinking of becoming one, consult with a business law attorney who can draft an air tight non-compete agreement and help make sure that your assets, and your customers, are protected for the life of your business.