Corporate America vs Small Business: Decisions, decisions...... 7

[lacajun]

I may have to make that decision again soon.

I've been working my own company for about five months now. I've made some good connections and continue to through surprising avenues. It's been fun and interesting.

I see the challenges of small business. I'm attending a monthly small business meeting to listen and learn from more experienced owners. It's a challenge and at times seems awfully daunting. Most of them wouldn't do anything else.

I keep hearing the rewards, financial and freedom, of running your own business eclipse working at a job. I get the freedom part and am working on the financial part. ;-)

When I think my path is set, a job with a company rolls around. This one has orbited around me for some time. I declined any contact in the past thinking I wouldn't qualify. In addition, the recruiter that contacted me was exceptionally offensive, which cast a bad light on the company, too. A different recruiter called this time and I responded. So, I'm going to have to decide how far to go with different paths. Nothing is firm so it may be a pointless post.

I am unsure that I fit into Corporate America any longer. My values don't seem reflected there.

As I progressed from job to job, the effort to perform increased more dramatically than the pay. Indeed, the pay increases were more infrequent and much smaller. Promotions were accompanied by much smaller pay increases than during the first ten years of my career. I've heard business owners say that was one of many key reasons for starting their own business. I didn't bring it up; they did. They were on higher rungs of the ladder than I was and had a higher, broader view. Their words make me think long and hard about this decision, if it does materialize.

Life is never dull! Prayer is always required.

 

[MikeHalloran]

Most of the small business owners I know stay with it mostly because they just flat can't stand taking orders from people whom they can't respect.



Mike Halloran
Pembroke Pines, FL, USA

 

[ajack1]

I agree with Mike on that, also in my experience most small owners are risk takers and like making the decisions and knowing they will succeed or fail on that and also enjoy the wearing many hats side of it.

I really believe some peoples personalities tend to make them better at running small firms and others are more at home in a larger concern.

Do which you enjoy more and it becomes less like work.

 

[Ron]

Mike has nailed it, as usual. I've owned my own business twice. The first time I ran it for 6 years and sold to my former employer (international, ranked engineering firm), then became their employee. I lasted for 12 years or so. Then went to another, smaller (regional firm), ENR ranked, and lasted for 4 years....I guess I'm just not good at corporate BS. This time I've had my business for 6 years...I'm happy thus far with the results.

The first couple of years I got a lot of calls from head hunters. They wanted "Chief Engineer" types, they wanted "Director of Engineering" types, they wanted corporate Presidents with technical backgrounds. I actually talked to two firms...one want a Director of Engineering and the other a President. I qualified for both...I wanted neither.

I'm an engineer. I'm happy when I'm doing stuff that produces tangible results....solving problems. To me, whether the client pays in 30 days or 45 days is not an issue until I get hungry...then it is critical! But for corporations, this process drives their decision matrix.....I don't buy in to that.

 

[jmw]

My own take is that I am no longer employable by the big single source companies as my ethics and theirs don't match.

Of course, I haven't helped that situation by some of my articles and blog comments recently and I've probably managed to tick off the Coriolis R&D gurus and their sales and marketing teams with at least two global manufacturers (one of whom almost offered me a high level job at conference a couple of years ago.....whether he is of the same opinion still and would do it again if the opportunity arose, is another matter).

My concerns are the corporate single source supplier business model are that I would be required to offer the best fit from the available products and not allowed, as I used to be in a smaller company many years ago, to represent the client in discussions with a client (remember those management posters that proclaimed "The Customer Pays The bills!"?)

When I dealt with a client, it was his best interests I looked out for. Of course, back in those days, his, mine and my companies interests were mostly aligned even if I did say "Try a coriolis meter" which we didn't make because this approach resulted in customer returns and customer trust.

This behaviour doesn't suit modern big company business models.
I'm not saying it is wrong, not between consenting big suppliers and big clients, it just doesn't suit me. Plus I suspect that while big clients can mitigate the worst effects by special pricing deals, the smaller clients are being bulldozed and are not consenting but unwitting victims.

Of course I've outlined these views in a couple of places, including the blogosphere so I am no doubt well and truly unemployable today....

......except I have had some hints dropped to me by one of my clients that they might be doing some things soon that could see them wanting me inside.

So who knows? maybe there is hope for me yet, of going it alone finally proves unrealistic.

One thing I recognise as a self-employed is that within a company there is a resource for the skills you lack. When you go it alone, you have to make the best of the skills you do have and find ways to mitigate the worst effects in those areas where you are weak.
This means the most difficult period is when you are a solo operator. If you can grow, then you can recruit in the missing skills, maybe just as part of the skills set of the hire.


JMW

http://www.ViscoAnalyser.com

 

[SNORGY]

lacajun:

Based on what I've seen, whether you go by your heart or go by your brain, you will be fine either way.

Regards,

SNORGY.

 

[msquared48]

Just remember though, that when you work for yourself, although you call the shots, well, ok, the clients really do this too, there is no paid vacation. You don't work, you don't get paid. And sometimes you don't get paid when you do work.

Mike McCann
MMC Engineering

 

[ctopher]

"I am unsure that I fit into Corporate America any longer. My values don't seem reflected there."

If you own a company, what values do you have?

Chris
SolidWorks 10 SP5.0
ctopher's home
SolidWorks Legion

 

[moltenmetal]

You should not have been surprised that the pay raises leveled off after the 1st 10 years. Analyze the salary survey data and that's the pay curve typical of your average wage slave engineer: once you remove the time value of money (i.e. inflation), you get 10% per year for 10 years, leaving you at 2x your starting salary for the rest of your life- unless you move up the corporate food chain.

Assuming a move into non-technical business management is out for interest or personal reasons, the only way you're going to earn significantly more than that wage track is if you can keep more of the profit you generate. Ownership is the only way to accomplish that.

As to being at odds with the "ethics of corporate America", if you're in a for-profit business, whether as owner or employee, you're in "corporate America" with all its warts, whether you like it or not. You will find that customers are little different than bosses in all but one very important way: it's way easier to get rid of a bad customer than it is to get rid of a bad boss.

 

[SomptingGuy]

I'm 21 years with the same company and slighty more than 4x starting salary. Is that above or below 2x, with inflation included?

- Steve

 

[CastMetal]

Here's a rough estimate.
starting salary 1990
90's inflation 3%
2000's 2.5%
Factor accounting for inflation 1.72
2x1.72= 3.44 times increase in salary needed for 2x over 21 years

Looks like you came out ahead but not by much.

Comprehension is not understanding. Understanding is not wisdom. And it is wisdom that gives us the ability to apply what we know, to our real world situations

 

[moltenmetal]

Somptinguy: sounds like you beat the trend a bit (good for you!). But you probably got ripped off in your first 10 years a bit, not getting 10%/yr plus inflation in every single year. Time value of money being what it is, the early money counts for a LOT, and you're not likely to be as far ahead as you thought. Mind you, there's no accounting for the fact that we probably would have just blown most of that early money on booze and frivolity, youth and wisdom being as they often are.

Yes, you can get a little more than that 2x starting salary if you move up the engineering responsibility chain, even if you don't make the full leap from eng to business. But on average, we collectively don't (if you believe the numbers), since some of us don't even keep pace with the normal curve. And there's always managerial responsiblity thrown in there even if you rise up that lovely "parallel technical ladder" that most of us only dream of.

Man, who knew that 4th year eng economics class project would be as useful, even this many years into my career!

 

[jmw]

Of course, when it comes to pensions, the later years make the largest contributions to your money fund.

JMW

http://www.ViscoAnalyser.com

 

[moltenmetal]

Yeah, right. Pensions. I've heard of those things, but never experienced one. All I've ever had from an employer is some matching money to play the market with and hope for the best. In that case, the early money matters way more. That's true in theory, mind, but perhaps not at all in reality depending on how you invested it...

 

[SomptingGuy]

My fixed benefit scheme was killed off a while back, so I can only bank on 1/3 of final salary. Any extra will come from gambling on the stock exchange, with most of the winnings taken by brokers.

- Steve

 

[jmw]

Bank robbery comes to mind.

JMW

http://www.ViscoAnalyser.com

 

[lacajun]

I have taken orders from people I have not respected, completely, for years. If they were egregiously wrong, I did what was right technically and let them figure out the rest. I will never knowingly compromise my customer and it's my business to know what I am doing for them to provide the best job for the resources available.

What I cannot handle is corporate BS and politics. Fools feel the need to politik. I never did and was not raised that way. My family called a "spade a spade." They had to as there was always a lot more work on the farm/house than people to get it done. I was the last grandchild and the older grandchildren were through college and doing their thing, by the time I was working age. I am from a long line of Southern Baptists, too, which had a big influence. Those were my formative years and they really shaped me. Therefore.........

My values can be found in the Bible. Don't lie. Don't steal. Don't covet. Admit mistakes. The Golden Rule. Love your enemies. Don't subvert someone else and their efforts. Be a team player. Don't be an alcoholic or drug addict. You'll find some of these values in the code of ethics for professional engineers.

I can "could've, should've, and would've" myself to death on knowledge base, decisions, etc. I've learned not to minimize that as it mires me in lethargy, self-pity, and self-doubt.

My salary continued to increase, too. My zenith was unanticipated as a kid. I think it was hard work that produced it. However, had the pay increases kept pace with the 1st 10 years, things would have been much, much different. The percentage of pay increases were best through the first 5 years and tapered after that. I made some intra-company moves, which I ultimately had to leave the company to recover from. The first 5 years any company will not reap that much from a new engineer. From year 7 on, I produced a lot of money for employers but their compensation began to lag. From a merit perspective, if someone consistently provides you with hefty ROI, that person should be compensated beyond the norm. I wasn't. Therefore, my attitude began to suffer.

My attitude also suffered due to discrimination in the workplace. Being called a token isn't a big deal but it does work on your mind, when you hear it often. I was also told often that I was not part of the good ol' boy network because I was female. I was accused of thinking I was a member but told I was not. I never thought about anything but my job. I am not a management chaser and rarely talked with any manager. Nasty politiks and psychology stinks. I don't normally pay attention to things and believe in free speech. But even I have limits and they were reached, with no help from management or HR ever. I thought my attitude contributed to the lower pay increases with promotions and reviews in spite of my performance. I don't think that any longer because I've heard otherwise from too many others that's the norm for everyone.

Through my company, I've run into manufacturers who are highly undesirable. I pity the people who fall prey to their wares. One talked to me so rudely I felt like a dog with its tail tucked firmly between its legs. I decided it was best to avoid him in the future. He is what I would call a fool. But it's nice to be able to say, "I'll look elsewhere." It's a choice.

I have an appointment and will continue later.

 

[jmw]

I produced a lot of money for employers but their compensation began to lag.

The more you make them, the greater the disparity.
Though they would never come out and say so, it must be a co-incidence, at one company I drove through a new product development almost single handedly only to have the Sales Manager and the Business manager f**k it all up because they couldn't do their own jobs.
The directors had over £250,000 invested but would rather have a scapegoat than a solution. After outlasting three business managers and by sticking with it I was able to close the deal the sales manager failed to close and got the orders started. If they hadn't made me redundant then they would have had to pay me a fortune in bonuses because sales took off after that and it became a market leader (seriously upsetting the previous market leader who had had 90% of the market for 40 years and now had dregs).
I also solved the problems enabling another new product to hit the market which, after I had left, proved so successful they shifted manufacture to another site better able to handle the high volumes.

The right response would be to reward me and keep me doing the same but maybe successful subordinates represent a serious threat to higher managers.

Stupidty rules elsewhere.
Our company recruited a new salesman. At his previous company he was paid a low basic and a good bonus. Each year he drove a coach and horses through his targets (the others scraped through). And each year they upped his targets and reduced his territory (the old "he has all the best territory" gripes, never for one minute considering maybe he as a good salesman).
The real problem was that his bonus scheme often meant he earned more than his manager.
So they made life difficult and he finally left.
Our company was no brighter. He stayed long enough to see the weaknesses and then set up his own manufacturing company making all the things the clients wanted but the company wouldn't make.

There are far far more bad decisions made for bad reasons than good decisions made for any reason.
Fact of life.


JMW

http://www.ViscoAnalyser.com

 

[ajack1]

It is always good to hear examples like the salesman jmw mentions, where someone with ability and drive thinks I am worth more than this and gets off their backside and does something about it. Hopefully he will be very successful and earn a good living not only for himself but for all the people he employs. The really great thing is nearly all of us also have that opportunity.

The downside is you need to be as good as you think you are and also be able to convince others, clients, of that fact. Owning a business is a great way of finding out your own shortcomings as it is all pretty much down to you.

That is the pleasure and the pain of owning a business, there is no one else to whinge about, it is the true measure of how good you are, that is probably why it does not suit all.

 

[lacajun]

My disrespect didn't come from their lack of technical abilities as much as conduct in the workplace. They didn't treat others with respect. Rudeness is unacceptable.

I can accept ignorance, to some degree, and stupidity, which is genetic. I know who I am and who I answer to ultimately.

Some disrespect came from getting into my business, when the education and experience was far from it, and acting like the expert and telling me what to do. Emerson Process Management ate the cost of one such event in spite of my desire for my boss to pay for it so he would learn a lesson.

I don't view myself as better than anyone else technically. Technically I am rusty. I'm reviewing material and working through some problems presented here, when I have time. I've not done anything significant in a few years now due to a lay off. I don't feel as though I am in the best position now. I'll continue to work on it.

I want to see if I can do it. Some days it is overwhelming. Other days are better.

I bid on a project with another firm and lost it. It would have been an interesting project and enjoyable. Out of eight potential bidders only two got a phone interview. We were one of the two so I feel pretty good about that, as a first timer.

jmw, I hear you. I've watched similar situations from the manufacturing side.

SNORGY, I think you gave me a vote of confidence. At least, I'm going to take it that way. Thank you!