What to do if an employee steals a client base

I've said it many times: small businesses are a training ground. People come in, gain experience, and often move on to competitors. This is a normal process. But sometimes an employee's departure is accompanied by a low blow—when they take the client base with them.

I've experienced this myself. Over the years, several consultants left and continued to sell services to our clients. My first instinct as a business owner was to punish and sue. But if you approach the problem strategically, the goal isn't just to "get revenge" but to strengthen your business system.

Step 1: Speak openly

Gather your employees and tell them what happened. People need to understand that the former colleague is stealing not only from the company but from them personally. After all, everyone put in the effort to acquire that client. I held these meetings weekly. When rules are followed in practice, not just on paper, a new culture begins to form, and that is key to business success.

Step 2: Gather the facts

It’s pointless to go to court without proof. In my experience, there was a case where a former employee was clearly poaching clients. We collected correspondence, documented contacts, and prepared a claim. Even if the court outcome is uncertain, it's important to show the entire team that agreements are upheld and the company is ready to defend them.

Step 3: Work with clients

Assign a strong salesperson and give them dedicated time. Have them call every client the departing employee worked with. We created special offers: temporary discounts and personalized terms. You don't need to explain the reasons to the client; a loyalty program for regulars is enough. Retaining a client is cheaper than losing one.

Ethical Hiring and Legal Protection

Don’t hire people who come with a stolen client base. Today they bring you clients from their former employer; tomorrow, they'll take yours. I've seen this dozens of times. It's better to search longer but hire ethical employees with whom you can build a future together.

Large companies have long learned to protect themselves. At Microsoft and Google, employees sign not only NDAs but also non-compete agreements. But even there, the main protection is the strength of the brand and systematic management methods. When a person leaves, the client stays because they were buying from the company.

Conclusion

If a client leaves with an employee, it means they were buying from a specific person, not from the company. This is a sign of weak PR and poor systematic processes. At Apple, for example, no one buys an iPhone "from John in sales." People buy the brand, the company, and the team. Your task is to make the same shift in focus from the individual to the system.

A stolen client base is unpleasant. But use it as a diagnostic tool. If your client base follows an employee, you need to work on your PR and systemic processes. If the client stays with you, your business is built correctly.

I've built my business so that it doesn't depend on one salesperson or business architect. This is the only way to mitigate risks. And if you also want to build a systematic business and strengthen your team, come to my masterclass, "How to strengthen your team, build a solid business foundation, and reach a new level."