Utilizing the Full Force Of An Arizona Non-Compete Agreement
Phoenix’s Trusted Business Lawyers Discuss The Benefits Of a Non-Compete Agreement For Your Arizona Company
Selling the best product or providing the best service is not all you need to do to succeed in business. The sad truth is that as soon as you start to excel with your product or your service, your competitors will look for ways to take what you have to make some of the money you are making. Some people won’t stop at imitation. Some will actually try to take what you have developed and try to make it their own.
Working with a business attorney in Chandler to put together a non-compete agreement can offer some protection, in addition to putting some other measures in place. Here are some of the things that a non-compete agreement can do for your business:
Protect Proprietary Information
Say you have developed a unique process for manufacturing the products you sell. Because of this manufacturing process, you have been able to save money on production, and you can pass those savings along to your customers. You are able to sell your product for less than the competition, and that makes more people want to buy from you.
An employee or vendor might sell information about that proprietary process to a competitor, who would then use it to lower their own costs and take some of your market share. With a non-compete agreement, you could protect against this happening. The non-compete agreement would prevent employees or partners from selling or sharing information about your proprietary information, such as how you create your products, provide your service, or perform some other aspect of your business.
Retain Your Talent
Your employees are a large part of the success of your company. You spend a lot of time and resources on finding and attracting the very best people to work with your company, and you put more time and resources into keeping them happy so that they stay with your company. By utilizing a non-compete agreement, you can be sure that you don’t lose any of your employees to people who leave your company and try to take your best workers with them.
A non-compete agreement can prevent people from soliciting your employees, vendors, contractors, and even your customers. This type of agreement is most often applied to current employees, prohibiting them from leaving and then hiring people that they worked with at your company. The agreement often comes with a time limit. So the person who signed it would be free to hire people after the agreement expired, say after one or two years.
Creating the Right Agreement with a Business Attorney
You may feel tempted to draft your own non-compete agreement. However, this can be a grave mistake. Without the proper legal training and experience, most business owners simply do not know what to include in the non-compete agreement, nor how it should be drafted to stand up to legal scrutiny if it is challenged. In addition, laws regarding non-compete agreements vary significantly from state to state and from industry to industry. And they are commonly interpreted very differently depending on whether they are part of a business sale, or a vendor relationship, or an employment relationship.
You should always hire an experienced Phoenix business attorney to create all your non-compete agreements. Your attorney will advise you about what needs to be included in the agreement to accomplish your goals and provide your company with long-lasting protection. Your attorney will also be able to draft the document in such a way that it can withstand legal challenges later.
You are likely to learn that you will need different types of non-compete agreements and perhaps additional agreements or documents to offer your company full protection against disputes, the sharing of trade secrets, the solicitation of your workforce, and other issues. Work closely with your Chandler business attorney to determine what protections you need to put in place for your business.
The experienced attorneys at Denton Peterson Dunn in Phoenix are ready to help you put the appropriate measures in place to protect your business. We can draft all documents and agreements that your business needs, including non-compete and non-disclosure agreements. If you are involved in a dispute that alleges violation of one of these documents, our attorneys can represent you in litigation. We are experienced business attorneys who are committed to helping protect your business. We serve clients throughout the Phoenix area, and we represent businesses both small and large. Call Denton Peterson Dunn today to schedule a consultation with a business attorney to learn how we can help you.