Your skills are yours. The paperwork says otherwise

It all kicked off after a long day at work.

Those late nights began piling up, filled with a few side projects here and there. At first, it wasn’t much - just some casual tinkering once the day job wound down.

Maybe it’s a tool to simplify some annoying process you deal with daily, or a service to fill a gap you noticed in the market.

Or perhaps it’s just that spark of entrepreneurship lighting up your desire to create something totally your own.

This is how a lot of folks in the IT world start their journey.

You start to realize something big:

You’re not just a cog in the corporate machine. Your skills and know-how are worth more than just the logo on your business card.

You begin to see the value in yourself - invaluable knowledge and experience just waiting to be put to use.

Then, out of the blue, the big idea hits you:

What if I could turn this passion into a full-time gig?

But before you get too excited and think about ditching your job, hold on a second.

What Most IT Service Providers Miss On

There’s one super important step many future founders forget about:

The employment contract you signed when you first started.

That contract might have clauses that could seriously affect your plans to launch your new business, like:

• Ownership claims over any side hustles you work on during evenings or weekends

• A notice period that could stretch from 30 to 90 days, which could put a brake on your launch plans

• Non-compete clauses that might limit what you can do afterward (though, many of these clauses may not hold up in India once you leave your job)

So, it’s important to take a good look at your contract.

Few Points I Recommend Checking Out

Here are some key points that I recommend you check out:

1) Intellectual Property (IP) Clauses

See if your contract claims ownership over anything you create, including projects you kick off outside of work hours.

Are there rules about using any insider knowledge you gained while working there?

For example, if you’re in fintech, does your agreement stop you from building payment processing tools on your own?

2) Notice Periods

Is there a notice period that lasts from 30 to 90 days? It’s a good idea to negotiate for a shorter notice period if you can or try to use any vacation time you have to speed things up when the time comes.

Also, watch for any penalties for leaving early. Some contracts might hit you with salary deductions if you bail before your notice period is over.

3) Non-Compete Clauses

While many of these post-employment non-compete clauses might not hold up in court thanks to Section 27 of the Indian Contract Act, the ones that are active while you're employed could still matter.

Just know that launching a competing venture when you’re still on the job might lead to legal headaches.

4) Confidentiality Terms

Pay attention to any confidentiality rules. Are you not allowed to use industry knowledge or skills you picked up during your time at the company?

Could your side project inadvertently use company IP? Think about whether it relies on code snippets, client lists, or proprietary processes you learned at work.

My Action Plan You Could Follow

On top of checking your contract, here are some tips to be proactive:

a) Document Everything - Work on side projects on your own devices and outside of work hours to dodge those ownership claims.

b) Negotiate Upfront - Before you sign that employment contract, negotiate hard to keep personal projects out of those IP clauses.

c) Exit Properly - Use your notice period wisely to wrap up your product, onboard some initial clients, or line up the funding you need for your new venture.

Final Note Before You Leave

Keep in mind, that your skills and know-how belong to you. But legal documents might hint otherwise.

So, before you jump into building your own company, take the time to fully read through and understand the contract that’s linked to your paycheck.

Plan your exit carefully.

Get familiar with the rules.

Only then can you genuinely consider breaking free and chasing those entrepreneurial dreams.