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Home based business question....Please read details (sorry, it's kind of long)...?

My fiance is currently working as a body shop technician (painter, etc) at a local body shop. For all intents and purposes, he is considered self-employed there. We live on 2 acres of land outside of town, and he (and I) are VERY interested in putting a body shop out here. The problem is, our land is zoned residential and not commercial. There is one specific account that my fiance has his eyes on "stealing" from his current employer. My fiance would have to undercut his current employers labor rates to get it, but even if he cuts his rates in HALF, he will still make a killing. The problem is, his current employer knows where we live, and also knows that we're only zoned residential, so if we put a shop in and start advertising it, he could have us closed up since we're not zoned right. My question is this: Could my fiance put up a shop, steal the account (by word of mouth only - no advertising), and "get away" with the zoning if he doesn't put a business sign up in the lot, or advertise in the newspaper, phone book, or on the radio? I know that home based businesses are allowed in residential areas and am trying to find a loophole that he'd fall into. Thanks in advance!

Update:

I might have used the wrong term here...it's not really an account. It's just a VERY regular customer.

I see nothing wrong with him "stealing the account", for lack of a better term. Businesses everyday try to offer goods and services at a lower cost than their competitors. What my fiance would actually be doing is nothing worse than Walmart selling a gallon of milk for 3 cents less than the price of Kroger's gallon of milk!

4 Answers

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  • 1 decade ago
    Favorite Answer

    If your fiance signed a non compete agreement he might get sued for "stealing" a customer however without one his employer can do nothing if he does. There is nothing immoral or illegal about it. Accounting firms and Attorneys leave and take clients all the time. BUT he is burning the bridge with that employer and can pretty much guarantee not getting a reference. Before he burns that bridge he better be sure the client will come with him and stay with him.

    You need to contact your zoning board and find out what the rules are. You may be able to petition for an exemption or get the zoning changed. The zoning laws can be so different from town to town only they can tell you if their is a way to have the shop. Don't put the shop there if they say no.

    I know he thinks he will make a killing by undercutting his boss but remember there are lots of hidden expense in running your own business. He has to buy the supplies, the tools, the paint pay someone to keep the books and a CPA to do the taxes. He needs to have insurance for liability ( incase the garage burns down with someones car in it) He'll need a business license and he'll have to sign up to take credit cards and pay those fees. He has to meet all licensing requirements for an auto body shop. If people work for him he has to pay someone to do the payroll and payroll taxes. Then there is the electricity, separate business phone lines, computers to track jobs,sales and expenses. Business signs.

    Then what happens if he loses this one customer? How will he market his business?

    Not trying to rain on your parade just shining a light on what you will be looking at

    Hope it works out for you

  • Anonymous
    5 years ago

    You may have the best parents in the world, that bought you everything you ever needed since you were a child. Loved you, offered you comfort, security, a future. You have the perfect life. And then you realize that your parents cheated on each other ... or your dad's money comes from scams or lies or mob affiliated. Now how would you feel? if you are a selfish egocentric ignorant looser you won't give a crap ... if you are a hard working intelligent person you would be devastated for you had invested all your hopes and love in those two. The American people ARE that child who has been robbed, lied to, manipulated behind false truth and make belief. THAT is what the 2/3 are fed up with. You can bring as much happiness and sunshine in ones life, if it is fake or from a rotten source, it is worthless. On that instance, Jay Leno can talk ... he has a secured job that pays him millions, he is set for at least 2 or 3 generations after him, he CAN afford health insurance, a safe brand new car, a home paid off the day he signs the contract, He doesn't have credit card debts, or medical bills up to the ceiling and if he gets fired he gets hired in the very next hour. I love when words of comfort come from someone who simply has it all.

  • 1 decade ago

    There is no way he could do this prior to fixing the zoning problem.

    Also he is going to need to set aside money to lawyer up, stealing the account will lead to a lawsuit, one he won't be winning.

  • 1 decade ago

    Nothing your fiance is trying to do is legal or ethical and he will only get away with it until he gets caught and your legal problems start. he and you can go to jail and the costs may be excessive compared to the potential profits. I suggest you rethink the whole idea.

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