Why Transparency Is Non-Negotiable
If you are a C-suite executive with a side project, your board will find out eventually. The question is whether they find out from you—in a controlled, professional conversation that demonstrates integrity—or from someone else, in a context that creates suspicion and erodes trust.
Proactive disclosure is always the right move. Board members universally respect executives who are transparent about outside activities. What they do not respect is discovering that their CEO has been running a side business without disclosing it. Even if the venture is completely separate from the core business, the lack of transparency creates a trust problem that can be career-ending.
The legal dimension is equally important. Most executive employment agreements include disclosure requirements for outside business activities. Failure to disclose can be a termination event and, in publicly traded companies, can create fiduciary duty violations with serious legal consequences.
Framing the Conversation
Frame your side project as evidence of entrepreneurial drive that benefits the company, not as a distraction from your primary role. Emphasize three things: complete separation from company resources, no competitive overlap, and zero impact on your performance and availability.
Present it factually: "I have been developing a software product in [industry/area] that is completely outside our business domain. It is built and operated entirely with external resources. I wanted to disclose this proactively and answer any questions you may have."
Be prepared to explain the time commitment (5-10 hours per week maximum), the resource separation (no company resources used), and the market separation (no competitive overlap). Have your employment agreement handy to reference the specific disclosure provisions you are satisfying.
Handling Board Concerns
The most common board concern is distraction. Address it by pointing to your performance metrics—if your numbers are strong, the evidence speaks for itself. Many board members will note that entrepreneurial executives are often more energized and effective, not less.
Conflict of interest concerns require clear documentation of market separation. If there is any conceivable overlap—even tangential—prepare a written analysis explaining why the side project does not compete with or cannibalize the core business.
Some boards may request formal approval or ongoing disclosure as a condition. Accept these requirements gracefully—they are reasonable governance practices, not personal affronts. Regular updates (quarterly is typical) keep the board comfortable and demonstrate that you take your disclosure obligations seriously.
Turning Disclosure into an Advantage
The most sophisticated executives turn side project disclosure into a strategic advantage. Board members are often experienced operators and investors who can provide valuable advice on your venture. By disclosing transparently, you gain access to their expertise and networks.
Some executives have found that their side project experience makes them more effective in their primary role. Building a product from zero provides empathy for early-stage challenges that improves how you evaluate new initiatives at your company. The board sees a leader who is investing in continuous growth.
Ultimately, the executive who discloses a side project and continues to deliver exceptional results in their primary role demonstrates a level of capability and integrity that strengthens—rather than weakens—their position.
Ready to Build Your Side Project?
Executives across every industry are turning side project ideas into real products—without pulling a single engineer off their core team. The key is working with a partner who understands both the technical execution and the strategic context of building alongside a day job.
Sizzle Ventures helps executives go from idea to launched product in as little as 90 days. Our MVP Sprint is built specifically for leaders who need speed without sacrificing quality—and without touching their internal dev team.
Ready to explore what's possible? Start a conversation with Sizzle about bringing your side project to life.