New Business 3

[EmpiricalEngineer]

Working on starting my own business doing structural engineering on the side of my day-to-day normal job. Looking for any tips or advice from others who’ve taken this journey. Already in the process of setting up an LLC and getting E&O insurance.

Thanks in advance to anyones reply!

 

[Travis Roberts]

I'm just starting out as well.... although been doing what I do for 20 years

One tip I would say is to give your repeat clients a better deal (contractors, architects, draftspeople, realtors, etc)

Actively try and form relationships with those kinds of people because you will each be doing the other one a favor.

It's always easier to charge less than you estimate than it is to charge more...

Make sure you get paid when you give them the final product... it's just easier that way

Get a deposit for jobs... It helps ensure they won't change their mind half-way through.

I'll probably follow this thread to see what others say too....

Good luck.... it's really nice working for yourself

 

[phamENG]

This may be semantics, but I disagree with the giving repeat clients a better deal. Figure out what you're worth and charge that. Now if you want to charge a premium for one offs where you are burning valuable relationship building time with a client you'll never speak to again, that's your call. The result is essentially same, but I find that this approach lays a better psychological foundation for you to build from.

None of my business mentors who are successful do 'favors' for anyone but their business partners. They also don't view work coming in the door as favors. It can set an uncomfortable atmosphere when you're swamped with work and somebody calls in a 'favor'.

Other than that, I agree with Travis. Bear in mind that since off those things (deposits, immediate payment) may be difficult to enforce, especially with architects, and pushing it may alienate some. Just have to test the waters.

 

[NorthCivil]

If you try to win clients by low pricing, you will develop a rolodex of clients that hired you because you have the lowest fees. and those will be the clients from whom you source of all your return work. You can get pretty busy, pretty fast taking this approach.

If you try to win clients with outstanding service and value, you will develop a rolodex of clients that hire you because of the value you bring. regardless of whether or not you're the cheapest. It will take much longer for you to get busy taking this approach.

A "blended" approach? Well, never really seen that. Usually firms that compete based on price get very busy very fast, and are constantly operating at full capacity, rushing to get things out regardless of quality, late on deadlines, putting out fires left and right.

It's hard to identify a client that will pay for good service, until you price them. If you price them low, give them poor service, the clients that are willing to pay well for good service won't come back again, they will just go elsewhere.

 

[Ron]

Agree with phamENG....value your services and stick to it. Don't bid! We are not contractors...we're professional engineers. If you get an opportunity to propose on a project and they are looking for multiple bids, respectfully decline and explain why if asked.

 

[JStructsteel]

I Agree, just because its a 'side job' dont sell your worth short. Also, always provide costs lump sum, never do a job by the hour. Manage scope, and then additional fees if they ask for more.

 

[phamENG]

NorthCivil is spot on - and once you pick one it isn't easy to switch. I went out on my own about 3 years ago, and priced myself too low. I knew I was low - I had been out of the area for a little bit and didn't have the reputation to grab enough work with higher prices - but I wound up setting my number too low and I became very busy very fast and have had some issues with deadlines. That creates a mindset and it can become hard to get out of it. I was fortunate - I found a client I had worked with before and who took an interest in the success of my business. He called me out on my low fees, admonished me for being too low, and worked with me to bring them up a bit more on par with the rest of the market (at least for reputable firms doing residential). I'm now comfortably busy, and I've been using his fees as a basis for my other clients. Some have balked and are calling me less, but others have gone right along with it. It has probably helped that I started raising my prices while everything else was going up, so I was able to blame it on that the few times it was questioned.

Hourly projects do have their place, and sometimes a hybrid model can work. On a lot of repair work, I'll charge hourly for the investigation and then give them a lump sum for the repair design and contract documents.

 

[MotorCity]

I have seen a few folks try the moonlighting gig and it never ends well. Most people cannot step away from their full time job, to run to a jobsite for their side jobs. I say cut the cord and go all in or stay put at your regular job. What is your motivation for moonlighting?