August 2, 2011

It wasn't an easy decision—especially since she faced a non-compete agreement and complicated legal issues—but Jody Diamond couldn't be happier that she finally launched Diamond PR.

“I found myself in a situation where the choice became either staying where I was and becoming obsolete in my field," she says, "or stepping out on my own, which would then give me the freedom to evolve and grow in my field and embrace the new direction public relations was heading."

She offers up some tips on how to survive and triumph through all the litigious extra details while striking out on your own:

Hire a lawyer who always has your best interests in mind

When dealing with a non-compete and any other legal matters, it is paramount that an excellent lawyer who understands specifically what you are up against is batting for your team.

“Be involved and question things,” says Diamond. “Ultimately employers are in a tough position. You invest in your employees—teach them, foster them—and the non-compete serves to protect the employers' interest, which is understandable. That said, some employers can take it too far just out of anger or spite. It's important to keep in mind, it's just business and if they try and make it personal, don't. Keep it business and act accordingly.”

Secure a strong support system

With a team of friends and trusted supporters at your side, the sacrifice and the challenges of starting a business will be easier to tackle. These people should include your attorney, an accountant, IT genius and another business owner—whether in your line of work or not—who has been through the process and can be a sounding board.

“It's hard to run your own ship," she says. "Especially because it then consumes your life and becomes everything you do. It's your work, your hobby, your social life. You sacrifice everything. It gave me a new appreciation for all of my former employers."

Prepare yourself for scrutiny

“There is a lot of competition, but there is also room for everyone,” says Diamond. “In going on your own, you will be held to the standards you set, and if you have worked with the clients before, they will compare past to present. Be ready for that. Your first clients are key. They are your references, your word of mouth. They believe in you, embrace that and be thankful for it.”

Create a positive experience for your staff

You want to design an environment for your staff where they feel they can grow and have a sense of ownership and success within the company. “I don't want to live in a big castle on the hill by myself,” says Diamond. "I want them there with me. Our company is a group effort, we wouldn't be here or have experienced this level of success if it was just me.“

“I have been told many times by my advisers that I spend far to much energy and money on my team and their personal growth, that it's not a smart business move. I disagree. I still have an employee's mentality and try to treat them in ways I would want to be treated."

Kindly tell your boss that you'll soon be new competition

“[You want to] see if there could be a synergy or way to work together for added success,” says Diamond. “I think it's far more important to try and foster that within the company. If it doesn't happen, it's always nice to see if you can find a common ground.”

Every situation is different, but consider the situation from an employer's perspective: Was this employee vital to the growth of the company? Did they bring in business? Were they self-managing? Did they act like an owner or an employee?

“If they were simply an employee it's tough because they are just taking what you taught them and running with it, which is why things like non-competes exist,” says Diamond. “If they were instrumental in the company's growth, you need to ask yourself as an employer why couldn't I foster them here."

Congratulate yourself when you’ve done well

As owner of the business, Diamond finds she works five times as hard as anyone else, but that “there is no one around to really notice it. Sometimes you aren't even paid, but that's the game.

"You're the first one in every morning and the last one out, you sacrifice weekends, vacation and sometimes even a salary,” says Diamond. “I wasn't paid the first two years the company was open, my company simply didn't have the receivables and with a staff of three—including me—we simply couldn't afford it. I couldn't ask the other two to work for free, but they were vital to getting our ideas and culture off the ground.

Learn to play multiple roles—and own your new title

After working as the account manager for her clients, when Diamond went solo, she was struck by the sometimes-awkward discomfort of playing dual roles.

“Many of them I had known for years, but in a different capacity,” says Diamond. "Now I was their AE, but also the business owner. I have to ask for payment if a client is late or discuss things that are sometimes uncomfortable. It was initially hard to find that balance."

Find a mentor

Align with someone who has gone through similar hurdles. “I had no idea how much is involved in just opening a business,” says Diamond. “There are licenses, permits, tax forms, decisions to be made as to your structure S Corp, LLC, Sole Proprietorship and all the tax implications that come along with those. It was a huge learning experience and I had to learn on my feet. I paid a couple of penalties that first year for not having filed for certain licenses etc., but I had no idea until the city showed up."

Open a business account

Looking back, Diamond realizes how much easier a little cushion would have been had she had the time to raise money to dedicate toward a decent savings account, along with a line of credit, and if she wanted, a small business loan.

“A few months worth of living expenses in the bank is vital, as you don't want to start a business from a point of desperation—then you have to sacrifice too much."

Realize that sometimes, it's just business

This one is tough for Diamond as she often makes her clients and employees family. “Fight the emotion that will try and seep in,” she says. “Too often, as a business owner, I have made concessions to foster loyalty that a year later is not remembered or reciprocated. Clients and employees will always look at their reality, and not the company’s."

Image credit: djclear904

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