When did you go out on your own? 3

I had a total of 10 years experience, having passed my structural exam six years before.

The thing that motivated me was the sincere desire to control my life and provide for my family from a basis I could control since, as an employee, I had been laid off three times in four years due the Reagan Economy. I worked for firms that balanced their budgets on the backs of their employees. I was tired of paying someone elses bills.

I have been a one man operation ever since, doing my own thing, mainly residential, multi-family, commercial, industrial, log homes, inspections, reports, storm drainage, short plats, you name it. Tried to diversify as much as possible to expand my market, clientelle, and network.

Started in 1986, and it took me about five years to get into six figures, but been there ever since. I think nmy first year was 60K back then. Managed to weather the ups and downs, and my network has helped with that a lot.

Mike McCann
MMC Engineering

Thanks for the input, Mike.
Were you scared when you made the decision to go on your own?
If you try and don't succeed, are you less desireable to another employer?
How many hours do you typically work to make your 6 figures?

I started my own one-man business 19 years ago. At the time, I had about 12 years of fairly varied experience, and I had passed the CA S.E. five years before. My practice has been in the CA east bay area, doing primarily small projects like large custom homes, small commercial buildings, redevelopment agency work including mixed-use projects, etc. I made the decision to stay small because I wanted to have a family life, and do other things besides work. My first year I made well into six-figures. I was able to do that because I had been doing a fair amount of moon-lighting for years. Also, I found that several clients elected to go with me when I started out. I had some discussions with these clients shortly before I left, not asking them if they would use me, but just getting advice about starting my own business. Several of them let me know that if I did go out, they would follow.

The Good:

I really like the ability to control the kind of projects I work on, and who I work for. When I worked for others, I always seemed to be the “fireman”, taking over projects that were already in trouble or that had difficult clients. I got tired of that quickly. I also like the idea that the reputation I have built is my own, not someone else’s. When I started out, my kids were very young, and they got to see me nearly everyday in the morning before school, right after school, and quite a bit during summer. I never missed a single soccer game or gymnastics meet. For me, the payoff in terms of family life has been priceless.

I have found that I appreciate the relationships with clients much more in my role as a sole proprietor much more than when I was an employee. I decided years ago that I would only work with clients that I like and respect, and that in turn respect me.

The Bad:

I feel like I couldn’t really go back to work for someone else in a design capacity again. Also, I don’t think it likely that I would be brought in by a mid-size firm into an management/ownership position, something that I likely would have had by now with 31 years experience. From a career standpoint (as opposed to family life), I should have grown my business. I would be looking at the opportunity to sell off to employees at this point.

Being a one-man firm, it is very hard to significantly grow my income. Also

Think about:

What do you want to get out of life, and how does your professional career fit into that?

Are you the type of person that can deal with a huge variation in work load? Can you and your family deal with the uncertainty of next month’s income. Are you able to say “no” to people?

StructuralEIT:

A little, but I had a pretty good network and experience behind me when I was laid off the last time. Clients in thenetwork, when they found out, actually helped to pass the word in addition to my cold calls. I had enough work to keep me busy within a week or so. I do not suggest that this will be the same for you, particularly in this economy.

The number of yours - about half time or 1000 hours was enough to generate that figure for me, but it depends on your hourly rate and how you bid the projects too.

Even if you do not "succeed", you still have a network and the experience under your belt. In analyzing your situation, you may think that you are more of a risk to another employer, but remember that the potential employer also knows that you have already tried to go out on your own and did not succeed. You are not likely to try again.

Mike McCann
MMC Engineering

if structuraleit will allow me to ask on his/her thread:

to expand on the question at hand (since my question applies to overall bottom line of any business), how did you deal with your liability/exposure and cost of coverage without the "help" of a larger entity (i.e established engineering firm) when you first went out on your own? what would you do differently (using the knowledge you've obtained over the years) if you had to start your own business today (with today's ambulance chaser litigation style mentality)?

if you'd prefer i ask the question on a new thread, just let me know. thanks in advance.

Getting coverage is not too difficult nor too expensive. Mine does a good job educating me to reduce my exposure and encourage me to turn high risk contracts away.

Don Phillips

msucog:

I did not do Government, Medical or Government jobs requiring liability insurance, as, at the time, it would have been too expensive for me to obtain it (1986) - from 12K to 15K per year - just after the Hyiatt Regency walkway collapse debacle.

I just had to pick and choose my clientelle, not take any risks design wise, and be conservative in my designs.

I have had no problems going bare. I try to keep the clients happy, keep those who are, and weed out the possible problem makers. Takes a little gut instinct regarding situations and personalities here. I also try not to burn any bridges or make enemies that will come back to bite you.

Mike McCann
MMC Engineering

Did any of you posess a Master's Degree in engineering when you went out or did you just have a Bachelor's. Also, did you go for the MBA and was it worth it?

I had a Masters in Business and Public Administration, and was one quarter short of a Masters in CE.

The MBA was worth it.

Mike McCann
MMC Engineering

Although a MBA would be helpful, I believe the MS in engineering is more important for running your own engineering firm. You are offering engineering services. Therefore, you need to be an expert in engineering. Assuming you have sufficient common sense, I think that an engineering mistake could be more costly and hurt you more quickly than a business related mistake. You can always lean on your accountant for business advice.

Go out on your own when and only when you love what you do, so you can do what you love. But make darn sure that you will not have to eat pet food or dumpster dive to do it!

The best way to test something is to squeeze it, slowly, until it breaks!

I'm 31 and have been self employed for about two years now. I had about six years of experience when I started, although one of those years was spent in land development, and another was spent in construction management, so in actuality I had about four years of relevant experience.

Like you, I was nervous about pay when I started, but made $60k (net) my first year, while working part time on my masters degree and spending a lot of time remodeling my house. This year I expect to make six figures. If you have any business sense, you wont have any problem making your current salary (or at least in the same ball park).

For me, the glamour of working on fancy projects is far surpassed by the fact that I call all of the shots and don't work overtime making other people wealthy. I paid my dues as an EIT, and now I can work hard for myself.

If you know you want to start your own firm, you should do it as soon as possible. It's not like you're starting some obscure business - it's a solid profession that is in high demand. If you fail at it, so what?