One of my best guys is starting a business doing the same work we do very close to our area. They are doing weekend jobs that are bleeding into the work week. How does this hard converation look with them. How should I react.
If this employee is truly a rockstar, I would first ask why they feel the need to leave. Sometimes top performers are looking for more responsibility, more income, or a path to ownership. That conversation could reveal opportunities for both sides.
I was on the other side of this as I was the employee who wanted to start his own but my situation is a little different. I started working for a company in 2002 cleaning natural gas compressors and repairing louvers I worked my way up the ladder with hard work and an open mind. When I got to the supervisor position I was told that I needed to buy my own truck and tools in order to take on that responsibility so I did what was asked yes I was compensated for the truck thru a certain amount per kilometer but not for the commercial insurance or upkeep on the truck as that fell completely on my shoulders also since I had to use my personal vehicle I needed to have a single propireship company name for tax purposes so I did that for 20 yrs I worked like that until the boss got sick and his son took over completely uprooting everything I had accomplished so I made the decision to finish out 2024 year and start my own in 2025 yes I needed to get the saftey compliance and wcb as well as changing from the single propireship to a limited company it was a little bit of a head ace but once the steps were completed I had former customers calling to hire my company as the new man running the old company was rude unprofessional and completely disrespectful. My business has been getting busier as last I heard he might be shutting his doors now but I still hear that I am to blame for their failures. I am glad I started my own or I would have been in financial trouble if I would have stayed.
That is the story of how Alberta Louver Inspections and Repairs Ltd was started
Everyone deserves a chance.As his mentor,give him a few tips.Be a good guy.
First reaction? Be happy for him. Someone on your crew watched how you operate and decided to bet on himself for his family. That's a reflection of the culture you built, even if it stings a little right now.
The real issue isn't that he started a business, it's that his weekend work is bleeding into hours he owes you. So separate the two: lead with support, then get clear on the expectation. When he's on your clock, he's all in. That's the line.
But here's where I'd lean in instead of clamp down. This guy is now an operator in your market. That's not automatically a threat. There's room to mentor him, send him overflow that isn't your sweet spot, or partner on jobs neither of you could land alone. The ones who win long term build networks, not walls.
Handle it with respect and you keep a good man in your corner either way.
TRIGGER WARNING!!! We train our staff to intentionally start a business on the side and offer coaching services. We can talk more on that if you want.
Regarding your question:
(1) Get feedback from them on why they want to start a business? Depending how honest they are, consider offering to help them get started on the right foot
(2) Reclarify terms of employment moving forward from this date (in writing with their signature).
(3a) Either do performance review and don't tolerate their jobs to interfere with their day job, OR, (3b) offer flexibility of his/her schedule to help accommodate their jobs without ruinning your schedule. *note, once they get reduced hours to do their own thing, you have to stay on top of performance and I recommend weekly GSR's to help them grow into managing their schedule better so it doesn't impact yours as much (they will most likely end up leaving within 30-60 days after). Don't keep them at all if they are toxic. This may be too little/too late.
Reasoning for Issue:
(1) Employee has cuase to disconnect and leave (devalued, wrong position, conflict, personal issues, lifestyle change, bad fit, etc.)
(2) Employee sees no future (personal financial stress bleeding into job, lack of clarity for career path, low ceiling, etc.)
*GSR meetings and clarity are huge for 360 deg. feedback. Exit interviews (not by direct supervisor) help too.
If you have given employees the tools and resources to succeed then they have no excuse other than to look in the mirror. Document performance reviews and get initials to validate termination with cause. Also make sure you have termination causes in employee agreement. More on the topic of HR too if needed....
-Brandon
If someone is truly a rockstar and has proven loyal, I would offer equity earning through time to mitigate flight risk.
I agree with the point that many small start-ups fail once people realise the work is not just the trade itself, but also pricing, sales, scheduling, payroll, client management, insurance, compliance and cash flow.
That said, if he is genuinely one of your best people, I would also look at the retention side before making it purely adversarial. A strong employee usually starts thinking this way because they want more control, more upside, more recognition, or more say in how the work is done.
The conversation does not have to start as a hard one. I would separate the issues clearly: support the ambition, but set firm boundaries around availability, performance, client contact, use of company resources, and anything that affects your business.
If you value him, it may be worth showing that clearly before assuming the only options are confrontation or losing him.
I've had several former employees start their own cleaning businesses over the years.
Personally, I don't get too worked up about it. Most people see the cleaning part of the business every day, but they don't see the sales, marketing, hiring, payroll, scheduling, client issues, bookkeeping, compliance, and everything else that comes with actually running a company.
A lot of the time, they're out of business within a few months once they realize what ownership really requires.
For me, the bigger concern wouldn't be that they're starting a business. It would be whether it's affecting their performance, availability, or commitment while they're still employed by you.
If they're still showing up, doing great work, and honoring their responsibilities, I'd have an honest conversation about expectations. If their business is bleeding into the workweek and impacting their role, then that's a performance issue that needs to be addressed.
Support the ambition, but protect your business.
I think you probably need to look at what performance based incentives you have or could have to make it an awesome place to work. I would probably echo the sentiment that you should just look at their performance and make sure to document any calling off, showing up late, etc in case you have to let them go and you don't want them to collect unemployment off you.
I literally had this same situation happen to me. Honestly, I encouraged it. My situation was a little different because they were going to do it out of state but we should want the best for the people we are shepherding. They want to bet on themselves, I would encourage it. As long as they aren't taking customers which would be lame but honestly your business should be too rock solid to loose significant business to someone who used to work for you.
I agree 100% It always works out the way it’s supposed to as long as you just focus on your business, treat people right and keep doing right by your customers.
As mentioned, do you have a non-compete or non-solicitation agreement in place?
If not, I’d focus less on the fact that he’s starting a business and more on whether it’s impacting his performance, availability, or creating conflicts with your customers. The fact that he’s starting a company isn’t necessarily the issue. The fact that weekend jobs are bleeding into the work week may be.
I’d have a direct conversation about expectations and make sure there’s clarity around customer relationships, company resources, and work performance moving forward.
Did you have them sign a non compete or non solicitation agreement during onboarding?
May help prevent someone from trying it, but not very enforceable (at least in Florida).
Non competes have no legal ground in most states. I don’t think you need to put steps in front of your employees following the same path as you did. Instead offer the assistance you didn’t have and allow them to show you what they can do with their own location.
If an employer is doing quality work, they have no need to worry about a new competition across the road. I think you should worry about building for yourself a fantastic company that is way above completion. The customers who value quality over mediocrity will always remain loyal to you.
