A fresh approach to Payroll Services!!!

Hi all,

I have been reading the books and the, extremely useful, posts on this site for the past few weeks with the intention of starting trading towards the end of the year. Events of the past few days have broght the launch date forward somewhat.

I am currenlty, whilst operating as a sole-trader, providing payroll services to a software house offering HR and payroll solutions. For the past 3 years I have been responsible for 'all things payroll' including implemention for in-house solutions, project management, product direction, and payroll bureau services. During this time I have found the customer service elements to be the most rewarding and have built up some strong relationships with colleagues and clients alike.

Recently my Jerry Maguire'esqe rants to the 'powers that be' have led to an agreement that we would go our separate ways, with the managing director even showing a desire to invest in my new company. When asked to bring my business plan for discussion it quickly became apparent that the interest in investment was not there and instead attempts to persuade me to stay followed. I think the agreement to split was intended to scare me into submission but instead really pushed me 100% into following my ambitions and dreams.

One important point that I am keen to stress is that I do not intend to compete in any way wih the client that I currenlty service.

They provide solutions and systems to large clients whereas I plan on targeting small employers for payroll bureau services and all customers for training and consultancy services (not software specific!) It seems like I am following a Flying Startups trend as I, like others whose logs I have read, am now prepared to offer customers what THEY NEED, not what SUPPLIERS want to sell!

All sounds great so far, now I just need a little help so if you have another couple of minutes please keep reading.

An item in the confidentiality agreement that my client is now asking for me to sign suggests that I cannot 'offer ANY services to any existing customers of the client for a period of 5 years after the termination of our contract of services'

Are there any lawyers out there that could advise whether it would be considered as reasonable expectation for me to sign this? As I say although I do not want to compete for ethical reasons, I also do not want to sign away a potential customer base. I would be happy to sign that I would not offer any services currently being offered. I can just see this opening up a potential legal minefield and so need to weigh up the pros and cons becuase I am reluctant to spend a large proportion of generated revenue in the court room. Who normally wins such cases?

Anyway thanks to anybody that read through this essay, I would greatly appreciate any advice that anybody has, and I am sure you will all be subjected to more of the same over the coming weeks and months.

Steve