Starting a consulting firm

[pklein]

I want to start my own HVAC/R consulting firm. While I plan on moonlighting at first, I want to position the firm for quick growth to about 10 engineers/designers. My idea is not to compete with the existing firms, but become a subcontractor. My partner and I are both PEs with about 12 years experience between us. My question is directed to the HVAC/R consulting firm community: What specific products/services are existing firms looking for?

 

[TheTick]

FYI there is another eng-tips forum, "Methods of developing an engineering business", that may be more applicable.

 

[austim]

I would have thought that '12 years experience between us' is not a good basis for starting up a genuine consultancy.

During the period when I used to hire temporary engineering staff (to supplement our own fulltime engineers) I would very rarely hired engineers with less than ten years appropriate industry experience, and then only at times of dire emergency.

I would never have treated any offer of consulting services from a pair of seriously under-experienced engineers with any respect at all.

 

[RDK]

Autism is right. If you want to make it as a consultant you better either have some grey hairs or advanced degrees. If you had advanced degrees you would already be specialized and not be asking the question.

You might get a PE or P.Eng in four years, but its necessary to have 10 to 15 to be a successful outside consultant. In Saskatchewan you need your P.Eng and then many years professional experience before you would be allowed to consult.

If I wanted to give job assignments to someone who is still learning the profession, I would hire them directly and pay salary, not consulting rates.

Targeting being a sub consultant is also not usually a viable way to go. They will only be able to charge the going rate for your experience and qualifications and will need to take some mark-up from this rate before passing it on to you. Also they would have to have their in house staff fully tasked before they would look outside. (or it’s a less desirable project for some reason)

I would also doubt is a total of 12 years will be sufficient to be able to get errors and omissions (professional liability) insurance. If it’s available then it will be at a high-risk premium.

If you were able to get started and get some assignments you would most likely delegated to the small stuff. Once you get a track record in the small stuff its hard to be taken seriously for the big stuff which is both a lot more fun and more profitable.

My advice is to get some specialty within your area of practice. i.e. become known as a real good control designer or start-up/commissioning specialist. Then expand on this reputation and make lots and lots of contacts. (You can never have too many) This will make you more valuable employee and at the same time help you when you have the experience to start out on your own.

You can also totally ignore this advice and start out on your own anyway. If you really have what it takes to succeed then you will do this. The worst that can happen is that you will fail and as engineers we always learn more form our failures than from our successes.

Good luck



Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com