Experience with business needed
Experience with business needed
(OP)
I started one year ago my engineer business working alone as a project manager in the construction industry. Now I am feeling I need to take another step, thus needing to grow my business. There are several options but I am a little confused about what option to take, since each one as their advantages and disadvantages.
The options are:
1) Subcontracting more work
2) Hiring workers
3) Establish a company with a new partner (or partners)
I am open for other options.
The options are:
1) Subcontracting more work
2) Hiring workers
3) Establish a company with a new partner (or partners)
I am open for other options.





RE: Experience with business needed
1) Why do you "need" to expand?
2) What option is most appealing to you?
RE: Experience with business needed
1) spreads risk, increases flexibility
2) profits go in your pocket
3) spreads risk, increase resources
Cons:
1) less control
2) payroll, workman's comp, more management
3) less control
Don Phillips
http://worthingtonengineering.com
RE: Experience with business needed
1) Why do you "need" to expand?
2) What option is most appealing to you?
1) It is natural to expect a business to expand, at least, I hope so.
2) Since I only have 1 year of business experience (and 9 years working for a salary), I feel that having a parter could kill the business since I do not have much business experience. If I subcontract most of the work my clients could perceive that I am not doing the actual work and going elsewhere. In the option of hiring workers, I feel I haven't secured enough work to hire people, and could get on the red tape very fast.
RE: Experience with business needed
RE: Experience with business needed
RE: Experience with business needed
RE: Experience with business needed
I am turning away business or pricing myself rather high because I do not want to grow since I may go back to being an employee next year. Otherwise, I need a part-time drafter and I would hire one so those projects would not go to friends of mine. If I pay an intern $15/hr and charge out at $45, that makes better financial sense since I charge myself out from $75 to $100/hr, depending on the project. That is my reason for not growing - hiring someone for only 18 months would not be fair to that person and my clients would have to find someone else.
Then again, growth is natural if people are demanding your services. It means you are doing something right.
Don Phillips
http://worthingtonengineering.com
RE: Experience with business needed
RE: Experience with business needed
RE: Experience with business needed
I recently did a small mechanical/electrical job I quoted at $2700 that I thought was high but a competing architect wanted $6000. I guess I'll have to raise my rates again - perhaps $75/hr for drafting.
Don Phillips
http://worthingtonengineering.com
RE: Experience with business needed
I've always been advised against having a partner because of the complications. I appreciate having someone to share thoughts with, oh yeah, and being able to take a week off once in awhile. We share many opinions with regards to personal and business finances so that has helped with one of the biggest partner pitfalls. Just sharing...