Unit 5 Preview and Introduction
This Unit will cover the following topics:
- Mentally Making the Change
- Non-compete Agreements
- Confidentiality (IP Concerns)
- Fiduciary Duties
- Non-solicitation Agreements
- Using 401(k) Retirement Money for Seed Funding
This Unit will focus on our client who is transitioning or shifting from being an employee to becoming an entrepreneur. Each of the above-indicated topics will be discussed with that scope in mind.
If you are fortunate enough to be meeting with the entrepreneur before they leave employment, you can be of more help than afterward. However, as lawyers, we do not have the luxury of choosing when a potential client comes to see us. If we do have the opportunity to advise the entrepreneur before they leave employment, we can be more proactive. We can advise as to what actions will constitute a breach of fiduciary duties, and we can review any employment agreement they may have had. We would want to look for a covenant not to compete, a confidentiality provision, or a non-solicitation provision.
This Unit will discuss the aforementioned contractual provisions as they pertain to an entrepreneur and include a discussion on using 401(k) money for seed funding. This topic is included here because it directly pertains to the shift from employee to entrepreneur and whether the entrepreneur would like to use their retirement savings to start the business.