Suggested reading for starting my own consulting business. 4

[arh13p]

I was wondering if anyone has any suggestions for some books they recommend reading for starting your own civil engineering business?(just me) I am researching this idea but want to read up and get some ideas that would be helpful. Thanks!

 

[oldestguy]

A nice post, but my suggestion is a new post, perhaps in another room. I'd ask for experiences of successful consultants as they started, pit-falls, and mandatory factors, what worked and what didn't. The more detail in the title, the more relevant the comments may be. One interesting successful guy, not an engineer, wrote books on cooking, but he did write one about how to succeed in business (any business) and has given lectures on Public TV. I can't seem to find it, but he is Dave Anderson of Famous Dave's restaurants.

 

[Ron]

I would suggest you read the terms and conditions that you want to use in your contracts. If you're good, you'll get work. If you screw up, you'll get sued (even if you don't screw up...you can still get sued!). Protect yourself as best you can. Protecting yourself means not getting invited to the party (usually prevented by contract language and good client relations coupled with competent service). Once you get the invitation, the details of your engagement become extremely important.

Attached is a booklet that will help you through some of the details....

 

[arh13p]

Thanks for the file you sent! I was a project manager for a consulting firm for over 7 years, then went to government for another 7 years. I understand the importance of service agreements that is why I will have a good attorney review before ever sending one out. I am reading a book on starting your own business and it is very good. I was just wondering if anyone had any more suggestions. The file you sent will be very helpful. thanks again!

 

[oldestguy]

ARH:

I just speed read the Ron article. If you spent a week at an Engineering Extension course for which you paid, I doubt that you'd see as much valuable information in one place, and FREE!!! wow!!!

 

[Ron]

OG...thanks. That's very kind of you. That one is due for editing as soon as I get time. I have more to add from the last few years of dealing with same!

 

[SlideRuleEra]

arh13p - Ron has offered such outstanding advice on the essentials of consulting, I'll present only general comments. Forty years ago my family organized a heavy construction business (highway bridges & similar work), my father had this recommendation:

"There are two things that are worse than not having enough work:
1. Too much work.
2. Any work at too low a price."

This applies to many businesses, including engineering consulting. Don't get overly anxious if your business gets off to a slow start.

On another subject. More recently, I organized and operated a one-person engineering consulting business as a Limited Liability Company (LLC) for nine years, before retiring. Assuming your business will be in the USA, you will have tax issues to deal with. Here is a good place to start your readings on that aspect:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed

This is very important since business decisions should always consider (but not be dictated by) tax consequences.

Finally, you have mentioned getting an attorney involved. Excellent idea, but pick and choose the occasions carefully. Controlling business expenses is essential. Hiring other professionals (attorneys, accountants, etc.) will rapidly send expenses through the roof.

Good Luck

http://www.SlideRuleEra.net

http://www.VacuumTubeEra.net

 

[msquared48]

War And Peace.

Mike McCann
MMC Engineering

 

[oldestguy]

Since a few comments show up now, here is one more. As I started on my own after some 24 years in State and with a consulting firm, I didn't have sufficient funds free to afford professional liability insurance, so I went "cold". However, with the help of an attorney, transferred all my investments and other holdings to the wife. Then each proposal or invoice, depending, had a statement to the effect that this was the case and that no claim against me also would include the wife. During the next 20 and more years only one claim came (a real big one)(but I did have insurance by that time), yet no claim included wife. I came out OK on the big one, slept nights. Worked alone, but had occasional tech help hired as outside contractors, so no employees. BE CAREFUL WITH THAT, SINCE IRS WANTS THOSE ESTIMATED TAXES EARLY ON. THEY NEED TO HAVE OTHER "EMPLOYERS".

 

[cieg22]

Totally agree with the old-dude. I may be stating some obvious stuff here, but professional liability is the biggest hiccup. I believe it varies by state, but in these parts you are liable for your design for up to 12-14 years. If you haven't been covered by insurance continually during that period, you won't be protected. For example, if you design something in 2014, stop paying insurance from 2015-2016 and then get sued because your 2014 design fails in 2018, I don't think you'd be covered.

Even if you're practicing as a corporation/LLC, whatever, if you're not insured, the plaintiff can "pierce the corporate veil" and come after you.

Obviously, the odds of a lawsuit diminish as time goes on, and if you decide to close up shop, you can cover yourself with a cheaper policy-tail, but count on the insurance commitment as a long-term investment.

I like the old-dude's idea of joining forces with wifey to protect assets. However, I've only heard about that joint entity thing applying to protecting your home - I'm not sure if it would make you bullet-proof. I'd make a terribly lawyer though, and I can't wait to hear what others think about all of this.

Good luck in your decision!

 

[beej67]

An accounting textbook.

Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East -

http://www.campbellcivil.com

 

[ryanjanoch]

Ben Horowitz's book on the Hard Thing About Hard Things is a good quick read on the ups and downs of business

Ryan Janoch
Mapistry

http://www.mapistry.com

 

[brandonbw]

The hardest part of starting out is finding clients. You can start out with relatively low expenses; computer, software, website, internet connection, VOIP phone, business license (whatever those fees are), and insurance. You should be able to find contracts online. We are maxed out on insurance and its about the same cost as my car insurance per year. We were lucky in getting referred to an accountant that seems to deal with only small businesses.

Book: Think and Grow Rich. Or any other book that motivates someone to do and not just say. Richard Branson's book, Losing My Virginity, was a very good read too.


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

http://bwengr.com