Possible To Sell Product To Current Employer?

Why don't you try to sell it to your current company before you build it. Tell them that if they like the idea, you'll leave to work on it and they'll be the first customer. Ask them to make a deposit that is enough to fund development of the first version--enough to pay your living expenses for however long it would take you to get a workable prototype. Make sure it's clear that you plan to own this product outright, but as your flagship customer, they will have early access.

That way there is no conflict of interest and your current company won't have any reason to worry about you "moonlighting."

If you can't sell it to your current company, well, there may be something wrong with the idea. This is a good time to find out!

Good question Jetti.

Terms of employment contract... one thing to check with your HR people is whether you are allowed to do work on the side. Some employment contracts don't allow you to spend any significant time doing other paid work. Also there can be a conflict of interest if you intend on taking the product to your competitors. The best thing to do is be open with your employers. On the other hand if you don't tell them you are doing this you'll be fine - however you'll always have the risk if you decide to tell them (so you can sell it to them).

What is the current process... is a question you need to ask - for implementing efficiency and productivity software at your company? Most companies will already have a process for implementing productivity software - the remit may lie with IT or Finance. Be careful that this doesn't step on any toes - especially if you already have an in-house software team that could implement this idea if they had the specifications.

A product for the masses... is a different proposition to writing a system for a single company. If you are writing a system that fits the workflow of a single company you can tailor it to fit exactly the processes they use. If however you are creating software to be sold into multiple companies and organisations you will need to offer a certain level of flexibility and customisation. The two software products are very different things and something you should consider early on. A system you want to sell to the masses needs to be more polished and well supported.

The only thing is I can't see them actually buying a license to my product because I work for them and would benefit directly from using the product (conflict of interest).

I am not sure, but if you are not the one that decides to buy the product, then it does not sound like conflict of interest to me.

Focus more on testing your product in the market. Set up a simple landing web page with your product features and advertise to potential customers. When they visit your website, make sure to ask them for their email address so they can be notified when the product is launched. You should get a minimum number of potential customers (3-10) before I'd even talk to the company I work for. This will give you more leverage and confidence when you approach your manager or HR. Once you start the talks with them, just know that they might not act favorable to your extra activities during non business hours and they might make you sign non compete contracts or even demand a share of the product profits. Bottom line is test out your product ideas to other potential customers first and if your current company doesn't like it or reacts negatively, you should be in a position to walk out on them.

If this is truly a product that would work in the marketplace, I would develop it with someone and would set up a company to handle it. Then I'd treat your employer just like any other customer. I'd let my business partner be the contact person with your current company so that it doesn't create awkwardness/issues.