Start my own company vs. trudge through the mud 7

[TestChamberEngineer6]

Hello

I am looking for advise from current owners of engineering firms. I have nearly 10 years of experience in multiple engineering area. I have spent time writing software, designing custom actuators for pneumatic and hydraulics, designing test chambers, designing construction equipment and creating control systems. My degree is in mechanical but I have branched out into other areas. I don't hate the products I am working with but what I am finding is I don't really agree with the corporate cultures and cheer leading that goes on at these companies. "Teamwork makes the dream work" only really applies to whomever gets kickback from the sales, and engineering rarely does. My dream is not to make someone else a ton of money nor is it to put someone elses' company on top of the market. I feel like everyone around me is content but I want more. I don't like when I make good points about how a process should be or the direction the business go is met with awkward silence followed by "well, we're going to do it this way" or more accurately "I want to do it this way." Meanwhile my only option is to shrug my shoulders and say ok.

What my question is, is did you go through these feelings before embarking on your journey? I know I'm not the only person ever who has felt this, and I've considered trying to go out on my own for a long time. But I am concerned that I might be confusing my displeasure with a drive to start out on my own. I have worked for 6 different companies and it really hasn't changed across the board.

I have some intimidating hurdles though.
1.I don't have a lot of money saved up in case things go south. Nor do I have a lot of money to put forth on any types of machines, so I think I would have to be strictly design if I did.
2.I do not have an advanced degree nor a PE and I would prefer not to pursue either of them
3.My contacts list is alright, but I am not sure the people I know would be able to throw work my way or point me in the correct direction to get work.
4.I am not sure what I would advertise as my main competency. I do not know what the market would support. i.e. If I tried entering the market as a bolt designer, I doubt I would get much business. A specialty bolt designer is a different story, but it was merely to illustrate the point.

 

[SlideRuleEra]

TCE6 - In my opinion, your "intimidating hurdles" list is too long at this time. Suggest you work on the "money" part of #1 and reconsider the PE aspect of #2.

Also, you may have a "Number 5" hurdle to add to the list... do you know how to operate the administrative aspects of a small business? Even for minimal support, you don't want to have to hire any more accountants, tax professionals, lawyers, etc. than absolutely necessary.

http://www.SlideRuleEra.net

http://www.VacuumTubeEra.net

 

[Jboggs]

Also, in most jurisdictions in the US, if you intend to use the word "engineer" in any description of the services you intend to offer, you must have a licensed PE on staff. There is a long list of companies in each state that have been shut down because they called themselves engineers of one type or another and didn't have a PE on staff. Not just degreed, licensed.

 

[TestChamberEngineer6]

Thanks SlideRuleEra. I thought the money issue was probably an important one, but not impossible. Number 5 is not really a concern.

Jboggs, thank you especially for that piece of advice, I had forgotten about that law.

 

[MJCronin]

For five years, I had my own consulting business in southern Maine and coastal NH. I ended up working mostly alone....on a lot of very interesting and moneymaking assignments

While my wishes to develop a small company never really came about, I learned the following:

1) Success is mostly determined by your geography and market timing. You may be great in what you do, offer cheap rates etc. but if your skills are not needed where you live or if the market is not ready, you will fail. You cannot work all over the country.

2)Consider an engineering partnership. Blend skills and share expenses. Is there an electrical/structural/etc guy out there who has the same feelings ? The partnership need not be formal. Work can be done on a project by project basis.

3)Consider working with people who will work part time. CAD drafters frequently have facilities at home and can produce high quality drawings. Pay them by the job as independent contractors via 1099s.

4) Network, network, network..... with everybody. From real estate people to equipment suppliers and vendor reps. I have gotten many leads from these people as the seek out information on what is going on, what projects are new and who may get work..

Develop formal agreements that assign work scope, schedules and payments.

Consider visiting a layer about personal liability insurance...

That's my two cents !!!

MJCronin
Sr. Process Engineer

 

[MJCronin]

Ooops... visit a lawyer !

MJCronin
Sr. Process Engineer

 

[TestChamberEngineer6]

Thanks MJ for the insight. I definitely have some engineering friends in other fields that I could pull over for side work as resources and had already thought about that. This wasn't anything I was planning on jumping into right away. I just feel like I'm living a real life "Office Space" at every company I go to and wondered what motivated others to start their own business. I realize some need no motivation whatsoever while others might need a little nudge. It's just I'm not a fan of job hopping or having one foot out the door, which has basically what my career has been so far.

 

[zdas04]

I treated my 23 years in corporate life to be an apprenticeship for what I'm doing now. I "retired" and started MuleShoe Engineering 12 years ago this month, and I'm very happy with that decision. Some of the things I did during my apprenticeship included:
[ul]
[li]Develop a business plan for MuleShoe Engineering. What would I sell? For how much? Who would buy it? How will I get customers? How much start up money do I need and where will it come from? What type of organization would I have? What are legal impediments (one was mentioned above, to call it "Anything Engineering" you not only have to have a P.E. on staff they have to be the Owner, a Partner, or a Corporate Officer)? What equipment/space would I require? Will have employees?[/li]
[li]Got my Masters while the company would pay for it (and more importantly I could do my thesis project on their equipment on their time with support from the company staff)[/li]
[li]Got my P.E. on the company dime (that was a go/no-go, if I'd failed the test I would have delayed my retirement)[/li]
[li]Got a loan from my 401K while still employed to finance the start up. Made sure that I had 6 months of family living expenses separate and segregated from the company funds.[/li]
[li]Joined SPE, NACE, ASME and was active in the local sections (an officer in one and a frequent presenter in the others)[/li]
[li]Went to conferences and did my best to stay away from people from my company to expand my network. When I retired my Outlook Contacts list was over 1,000 names, dozens of whom have hired MuleShoe Engineering.[/li]
[li]Wrote papers to present at conferences[/li]
[li]Started designing MuleShoe Engineering website[/li]
[/ul]

Then I got really lucky and my business has been successful enough to have survived the global economic crises in 2008-2009 and the 2014 crash in oil prices. It was just luck. The preparation was just my OCD manifesting itself. To do it my way you would have to be prepared to "trudge through the mud" for another 13 years or so. Your 5 hurdles look like you are not taking this seriously at all.

To me your number zero hurdle should be "I haven't even thought about a business plan". Without that you should do yourself a favor and forget this idea. If you are prepared to develop a plan, start with my list and add the 200 things that I left off and really think about each item. Really think about it. Put the question and answer in writing. When you can provide a viable answer to every question that comes to you then you might be prepared to take the leap.


David Simpson, PE
MuleShoe Engineering

In questions of science, the authority of a thousand is not worth the humble reasoning of a single individual. Galileo Galilei, Italian Physicist

 

[rotw]

zdas04,

Thank you for this; to me this is precious post ;

I like it because it is a legacy and I see this as a good reminder and a Landmark for us to go back to the foundations; it helps recenter our focus on the core and old values of engineering like hard work and solid preparation.

I will use it for my long term career plan.

 

[brandonbw]

From early on I wanted my own company. It was easy working for someone else, but didn't always agree with everything going on.

I was let go from a job, which told me one thing and did something completely different. Thought that was a good time to give this a go. Starting mentioning to anyone I could and fell into another person who was already doing this. We partnered with one other guy and had a go for a few years. Things didn't quite work out, as it was slow. Started this during the housing bust. But I felt there was enough work to stick it out.

A few months of once again figuring out what to do, I ended up running across another guy who I told the story to, and asked did he want to start up. On the spot he said sure, didn't have to think about it. 5+ years later B+W is still here, and we are busy, because I did whatever I could think of to bring in business.

Our business plan was to charge something reasonable, keep overhead as low as possible, and stay lean for as long as we can. I have seen some other business startup costs and am shocked. You don't need the best of everything, expensive computers, expensive plotters, fancy office, expensive gadgets. Some of our larger clients like that they know we are keeping the price low because we still don't have an office. Now the problem is we don't have enough free time to find an office.

If someone asked me should I start a business? I would say go for it. If you have any hurdles you aren't ready. A client will see right through hesitation.

B+W Engineering and Design | Los Angeles Civil Engineer and Structural Engineer

http://civilengineer.la