r/Entrepreneurs • u/JackiiAirheart • 9h ago
My top employee and friend is opening a competing business 20 minutes away. What would you do?
I’m in a difficult situation and would love some perspective from business owners or anyone who has dealt with something similar.
I own a business, and one of my employees—who is also a close friend—is opening her own business in the exact same industry about 20 minutes away.
She was actually one of our first students. When we were starting out, she was unemployed and helped us in exchange for classes. We saw her potential, invested in her certification, and over the past 3.5 years she grew with the company. She eventually became our top instructor and GM, handling scheduling, documents, and a lot of our day-to-day operations.
We're also close friends outside of work. I've supported her through major life events and even attended her wedding, so this isn't just an employee leaving. There's a lot of personal history and trust involved.
Recently, she told me she's opening her own business at the end of this month. What caught me off guard is that she apparently knew this was coming but didn't mention it until now.
My first reaction was actually happiness for her. I genuinely want her to succeed, and I feel like she deserves the opportunity.
What I'm struggling with is that she's still asking to continue instructing at our business and remain part of our community while running a competing business.
This creates a huge conflict of interest for me. She's our GM, knows our systems, processes, documents, scheduling, customers, etc., and will now be operating a competing business nearby.
I'm not necessarily upset that she's starting her own company. People grow and move on. I'm more hurt that she didn't tell me sooner, especially given our friendship and everything we've been through together.
So what would you do?
- Would you let her continue instructing while she runs her own business?
- Would you remove her from the GM role and restrict her access to company information?
- Would you end the working relationship completely?
- Or am I overreacting and should I simply support her and let her continue working with us?
I want to handle this professionally without destroying the friendship, but I also need to protect the business I've built.