Should i start my own business? College student seeking advice. 1

[eatdesignsleep]

I was recently "permanatly layed off" from my job working as a custom machine designer and builder. I was working on average 50 hours a week and still attending college full time. not to mention that i just bought fix er up house and only 21. the work load became to much and i was late a few times because of studying late at night. Instead of collecting unemployment, i got the idea i should start my own drafting buisness. Just something from home and nothing to complicated. Basically my services would be dimensioning parts, creating drawing packages of assembly's, and creating 2d drawings into 3d.

I did this when i first started out and am very proficient in solidworks. the way i see it, a company could outsource this job(india, ect) or have the designer finish the drawings after the designing process and pay them full wage or they could pay me to do it. this would keep buisness in the states, and also reduce cost for the company because i would be doing the job an engineer would be doing just as good for a fraction of their wage. they would also help out a college student further his education.

The only problem i'm worried about is the demand for a buisness like this. I am from the West Michigan area and my intent would be local buisness around here. Possibly elsewhere but i feel communication would be difficult and being able to have face to face interviews would produce less misunderstanding.

I understand that a buisness takes money and i have $2000 in savings that i'm willing to use. Any thoughts or opinions would be greatly appreciated. Thank you.

 

[SteelPE]

I am probably going to get blasted for this.

I don't quite know exactly how unemployment works or even if you can collect if you are a full time student. I should learn this because I may be in a similar situation soon. Taking the student approach out of the equation, couldn't you collect unemployment and continue with the consulting work? As you sell work and collect the money, you just report it to UE and they make the necessary adjustments (like taking you off for a while).

Again, I have never been on UE so I do not know how it exactly works. I'm sure others will be here soon to smack me around.

 

[KENAT]

I'd double check on the liability aspect and potentially any issues relating to offering engineering services to the public without PE.

Not saying you can't do it but make sure you don't get yourself into trouble.

Posting guidelines faq731-376

http://eng-tips.com/market.cfm?

(probably not aimed specifically at you)
What is Engineering anyway: faq1088-1484​

 

[SteelPE]

Kenat

Is doing CAD work considered engineering? In my side of the engineering field it isn't, but I am not sure about you mech guys.

Also about my previous post. It may tack some tact, but you might want to discuss what I said above with the UE office.

 

[TheTick]

A "drafting business" in my state would probably require a PE.

 

[dvd]

I recommend that you choose one thing that you want to do. Don't try to do everything at once. Your schooling should have been your priority at your age. Don't end up as a drafting hack at age 50.

 

[KENAT]

Steel PE, my guess would be that if you're careful in how you offer your services and what you call yourself etc. that you can work around it. However, I'm just saying to keep it in mind.

As to the implied issue of engineers not doing their own drafting, at least in the exempt/machine design part of mechanical engineering a lot of engineers need to do their own drafting/CAD work.

Posting guidelines faq731-376

http://eng-tips.com/market.cfm?

(probably not aimed specifically at you)
What is Engineering anyway: faq1088-1484​

 

[rowingengineer]

$2,000 seems very small, I just wonder with such a small investment where you plan on getting clients. Also what is you buy in for the solid works package?

http://www.nceng.com.au/

"Programming today is a race between software engineers striving to build bigger and better idiot-proof programs, and the Universe trying to produce bigger and better idiots. So far, the Universe is winning."

 

[casseopeia]

You can collect unemployment as long as you do not have to report NOT being available for full time work (such as being a student during the day). School and studying at night is OK.

You can collect your full unemployment benefits as long as you do not have to report any income you might receive, such as income that may be reported on a 1099 or CASH income that you self-report. Let me emphasize that last point, CASH income that you SELF-REPORT.

Unemployment benefits for me barely cover my rent. It does not cover food, gas, utilities, cell phone, and medical insurance. The IRS wiped out my savings in November (long story. I expect to eventually get most of it back, but it will take about 6 months and a lot of fighting. And I might not win). So I do what I have to do, like sell my furniture for half of what I paid for it just to pay for my cell phone, gas, and food.

Starting a business takes capital, and lots of it. $2,000 is nothing, $20,000 is more like it. No one is out there just dying to help a poor college student. You will get the work if you are good, fast and cheap. Start by putting a business plan together, and filing for your benefits.








"Gorgeous hair is the best revenge." Ivana Trump

 

[bigTomHanks]

Depending on what type of companies that you have in your area you may be able to make this work. The more you listen to people who have spent their life working for companies the more discouraged you may get. Stick your neck out there and start offering your services up to smaller businesses and you may just find one who needs someone like you to come in and help them get projects off the ground. If you did a good job you would probably end up working for one of those companies OR you could expand your business and hire some people to help you. I wouldn't limit yourself to CAD work either but don't expect at you age to get a lot of hardcore design because you don't have the experience. I have worked for smaller companies who have big ideas that they needed a smart person or two to get things off the ground but not necessarily full blow engineers. Kinda like interns but more focused on getting work done and less on learning. So I say pick up the phone and start talking to people. You will be surprised at how helpful people will be to you most of the time.

 

[eatdesignsleep]

first off, thanks for all the replys. its good to get a lot of opinions on this before i actually do it if i decide to. Too clarify things, i WOULD NOT be on unemployment if i start this business. i am hoping it would be the only source of income for me and not unemployment. Second, my intent is to do this for as long as i'm still in school. I should get my Degree in 2 more years, but if i get alot of business, i hope i could continue this business and expand and offer more services.

The only thing im after is just the "documenting" portion of engineering. I'm not sure if other companies are like this but when i first started working at my previous job, once the machine was designed and built, i would take the assembly file, make sure all the dimensions on the drawings were up to date and correct, create views of the assembly and then balloon every part out and include a BOM. this also included creating all the custom properties and when done, i would print every drawing on a tablet sized page and put it all into a binder for the customer.

I plan on using the educational version of solidworks since i get it free being a student at my school. Or if that edition didn't have the things i needed in it, i might be able to purchase the software myself.

thanks for all the feedback and i hope i receive more. i'm going to research everything more in depth this weekend and next week and hopefully i will be able to decide if this is a route i should go. Thanks again!

 

[patprimmer]

You already lost one job trying to do to much and failing. Make sure you learned that lesson. You can do three major things in your life, but you need to set priorities and a schedule for each that is attainable and viable re both finances and health.

You seem to be willing to sail dangerously close to the wind on a number of issues, several being legal issues. For instance, I would expect a software educational license excludes commercial use.

Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &

http://eng-tips.com/market.cfm

for site rules

 

[SteelPE]

I'm not sure solid works would like you using the student version of their software to make money. After all, you usually sign some agreement that allows you to use their software for the purpose of your education (at a greatly discounted fee).... and not to make money.

 

[berkshire]

If you are using the Solidworks Student edition when you print models or drawings . It will have a watermark that says " Student edition not for commercial use."
B.E.

The good engineer does not need to memorize every formula; he just needs to know where he can find them when he needs them. Old professor

 

[MacGyverS2000]

berkshire hit one point I was going to make... add on top of that, if anyone finds out you're using an educational version for commercial purposes (jealous rivals, companies losing business to you, etc.), they can report you and bad things start to happen. You agreed to a legally binding document when you start using that software (the Terms of Service), and they almost always state that commercial use is prohibited.

I encounter quite a few people like yourself trying to break into my line of work... they want to use educational software for commercial enterprises, thinking they can slide under the wire. It rarely works out in the long run.

Not to poo-poo on your idea, but it sounds like you need to re-evaluate what you want from life and set a more reasonable timeline. Owning a home at 21, particularly one that needs repairs, is a major issue unto itself. Add in a full college schedule and trying to make enough money at a job to pay for it all is pure folly, IMHO. It may make sense to sell the house (even if at a loss), move into an apartment, take a part-time job, take out student loans, and concentrate on the schooling for the next two years.

Dan - Owner

http://www.Hi-TecDesigns.com

 

[TheTick]

There is some potential middle ground here. For a time, I owned my own seat of SW on a laptop. I was able to get contract work with companies that needed CAD work done, but did not have the resources to install another seat of SW.

 

[eatdesignsleep]

i totally forgot about the student edition not being able for commercial use. i looked it up on their website and it even says that they put the watermark on there to stop cheating companies. I agree with them on that one! i wouldn't cheat solidworks out of their money even if i could. i heard their are torrents of it but even if it is easy to go that route, i would rather pay the full licence amount and be honest. i wasn't raised trying to "steal" every penny i can from someone.

So i have decided this is something i would enjoy. i have taken serious time to think over if i would be getting my self into trouble with balancing school and being a homeowner as well as a small business owner all at once and i feel i can do it comfortable. The house repairs are easy weekend projects and studying for school i can do anytime. i am very quick at learning and don't need to re-read things. The only thing preventing me from starting up is the price of the Solidworks Software. My parents are willing to cosign on a small business loan but i'm not sure if i actually want to sink $4000 into possibly a 2 year company. does anyone know of any alternatives(legal!) that would work in creating drawing packages or grants, ect?

thanks again guys. You have no idea how much you are helping me out!

 

[MacGyverS2000]

If you're unwilling to sink a mere $4k into a company that will last 2 years, business ownership is not for you. Others are free to disagree, but that's a paltry sum to be in business for one's self. You also can't forget the amount of money needed to set up your business licenses, personal property tax (you have to pay taxes every year on the seat you sit in, the computer you use, likely the software... everything required to do business), etc.

Dan - Owner

http://www.Hi-TecDesigns.com

 

[eatdesignsleep]

the way i see it, i would be making an average of $10 an hour. working probably 30 hours a week. being a college student with tuition and all, i don't know if the 4K program would let me profit anything. prove me if i'm wrong but make $10 an hour for 2 years and having to pay a 4K+ loan seems like i would break even.

about the taxes, my buddy started his own photography business and he writes such expenses off come tax time. He also said business licences was like $50 total. Again, i would be working at home and i would be the only employee. Not going and renting office space, ect.

 

[SnTMan]

eatdesignsleep I got two things:

1) If you are going to take on that much stuff, do it while you're young and have the energy

2) At $10/hr, I think you would be way underpricing your time.

Regards,

Mike