Thoughts on breaking free and going freelance / consulting? 6

[bradpa77]

I'm thinking of working towards breaking free of the corporate world and going the freelance / consulting route. I have almost 20 years experience. I have my PE in my state. I don't have a masters degree. I have spent a lot of time doing design and FEA work and I think that is likely where I could offer the most value to a company. I'm thinking of focusing my time and energy on design and FEA as I start to build up enough of a nest egg to take a crack at breaking free.

I'm intimidated by the whole term "consultant". I associate that term with people who have doctorates and a very deep and specific knowledge base. I wish I could say that I fulfill that description, but unfortunately I can't. I've been mostly a generalist but I do have strengths that I know would be of value. So, even though I may not be traditional consultant type material, I do think that I could find work given my skillset. I'm just not exactly sure of what the reality of the whole consultant world is.

Does anyone have any experience with trying to break out on your own? Do you have any tips or words of caution? Am I being naive in thinking that I can do this?

 

[Compositepro]

I have my own business. It does not sound like you are ready. Do you know anyone now, after 20 years of experience, who needs your services and would hire you? Consultants rely on their reputation in the industry for work. If you have nothing unique to offer, you are a commodity, which is chosen for the lowest price. You should have been thinking about this for the last 20 years.

You will also have to take care of your own accounting, office management, insurance, etc. The experience, however, might make you better appreciate what you have now.

I manufacture a very niche high tech product that sells for very good margins. You will never get rich by charging for your time by the hour.

 

[BrianPetersen]

You need to know who your customers are going to be. I'm not talking about "who" in the broad-market-segment sense, I mean names and phone numbers.

Provided that doing so doesn't violate any employment agreements, a discussion with a few of those people could reveal their level of interest in a venture of this sort.

If you don't have a list of names and phone numbers of who your first customers are going to be ... do what you need to do to get such a list before you commit. Otherwise, you're going to have no work.

 

[CWB1]

IME outsourcing happens for one reason - lack of available manpower. That lack of manpower may be bc niche knowledge is lacking/unavailable or simply bc a small manufacturer's staff engineers dont have time for new projects. The first are where your Phd "consultants" work, the second tends to be where "generalists" like yourself work. I have been on both sides of outsourcing and IME the folks with niche knowledge are the ones who can generally survive as a 1-2 person firm. If you want to chase the general design market my advice would be to get at least 4-5 engineers together for your new firm.

 

[IFRs]

My experience has been overwhelmingly positive. As soon as I got my PE I began consulting, with the full knowledge of my employer. When I broke away from that merry-go-round after about 18 years I got O&E insurance and started making more money doing more things although in the same general industry segment. It's been a long run now (about 25 more years) and I keep getting new clients. I'm kind of the old guy in the room and my industry needs more of us, not fewer. As I approach retirement age, I see cutting back to the more pleasant work with the more pleasant customers before quitting altogether. I was lucky I guess...

 

[SwinnyGG]

My experience has been overwhelmingly positive. As soon as I got my PE I began consulting, with the full knowledge of my employer. When I broke away from that merry-go-round after about 18 years I got O&E insurance and started making more money doing more things although in the same general industry segment. It's been a long run now (about 25 more years) and I keep getting new clients. I'm kind of the old guy in the room and my industry needs more of us, not fewer. As I approach retirement age, I see cutting back to the more pleasant work with the more pleasant customers before quitting altogether. I was lucky I guess...

It seems like for someone determined to get into consulting but without a rock solid potential client base and no reputation, finding someone like IFR (who it sounds like has a solid client base and an excellent reputation) who may be at a point where retirement planning is starting to enter the picture could be a potential path to success.

In other words, if you know someone who has been consulting for 30+ years and is doing well, maybe speak to them about taking you on and letting you absorb some workload as they transition toward retirement. This would potentially allow you to develop your own reputation under the umbrella of someone who is a known quantity. In 5 years (or whatever) when they decide they're done, you get to continue handling their extensive client list.

Probably a difficult situation to find, but potentially could get you where you want to go.

 

[desertfox]

Hi bradpa77

Things are probably different here in Europe to where you are but I had my own limited company for about 15 years, I got my work through agencies because I had no client base and like yourself was a generalist but I learned a lot about different industries aerospace, oil rigs, steel making plant etc. I had to have accounts, liability insurance etc like other posters here, which obviously is company expenditure whether I had work or not.
The problem I see for you at present,is this wretched covid19 virus because a lot of engineering firms here in Europe are laying off staff and nobodies placing any orders, I presume its pretty much the same where you are but I cant be sure, my advice would be sit tight for now unless you are 100% sure of getting work and reading your post it doesn't sound like you are.

“Do not worry about your problems with mathematics, I assure you mine are far greater.” Albert Einstein

 

[EnginSoft]

Hi bradpa77,
My suggestion is that before you make that leap you should build your network. Get a few papers published, speak at some conferences etc. and try to meet people (virtually for now). Build up a following on LinkedIn by having some good technical and original posts. Join some groups that are in line with your field of specialization - FEA, CAD etc. You may find that people start contacting you for work that is similar to your posts. Then when you are ready to go out on your own you have an established reputation of expertise in an area and a few contacts established.

EnginSoft is a CAE company with over 250 engineers and 4,000 completed projects.

https://enginsoftusa.com/

 

[rb1957]

damn you ! Back to your galley bench, and row !!

my 2c … it is very much a personality thing. Do you want/need to reassurance for a "steady" job ? Do you want/need more freedom of movement ? Are you prepared to Have to move to where ever the job is ? These are not things to be taken lightly.

The other cent would be … don't burn any bridges !

another day in paradise, or is paradise one day closer ?

 

[IFRs]

If anyones wants to be mentored by me and take over my business, contact me NOW !!!

 

[hacksaw]

Brad, there are a number of firms that are already setup for that sort of service. To learn the the ropes, hire on with them. You'll discover that starting your own company these days, unless you have family connections at a major foirm, is like sky diving without a chute, and quite the adventure.

 

[oldestguy]

Good advice from above. This quote should stand out.
You should have been thinking about this for the last 20 years.
You are not ready to be on your own - period.

 

[chicopee]

rb 1957 has hit on one statement "...it is very much a personality thing..." A high school classmate of my wife had his own drafting business and he was doing reasonably well. He sold his business of thirty years and I asked him how the new owner was doing. He said that the new owner went belly up and the main reason was that he sat in his office waiting for telephone calls instead of "gum shoe" the streets to contact customers. Now "gum shoe the street" is a generic term that I use for telephone calls, advertisement, word of mouth or any other means such as offering lunch or dinner to solicit business.