Can I sell my client list from an existing home based business?
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Can I sell my client list from an existing home based business?
I have a small skin care salon located in my home. I am in approved zoning and am fully licensed. I will be 65 in April and want to retire. My most valuable asset is my client list. Could you offer suggestions as to how I might sell this client list to a person starting up her own business?
Asked on January 25, 2011 under Business Law, Wisconsin
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
1) Can you sell your client list? Sure--as long as in getting those clients, you did not promise them or otherwise agree in some fashion that you would not sell or share the list. If you did, you must abide by your committment; otherwise, you're ok.
2) In terms of gettinig potential customers, try advertising (probably online--less expensive) on any websites that list businesses for sale or any website catering to your industry. You could also try to market through the local chamber of commerce and possibly at any local schools which train people in your field or provide support to entrepreneurs. Also consider directly contacting other people in your field locally, either owners or existing businesses or their employees who may wish to open up on their own.
3) Be sure to have anyone execute a confidentiality and non-disclosure agreement before sharing any information with them. The agreement should recite that the information is yours and is confidenntial; that any discussions or documents or information is provided only so the other party can evauate a potential business deal; that the other party will not use or disclose the information to others; and that if there is a breach, you may sue for both a certain amount of liquidated damages (e.g. $10k) and for injunctive relief (an order that they can't disclose). If you do a websearch, yoiu should be able to find model or sample agreements.
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