Engineering Business Marketing
Engineering Business Marketing
(OP)
I'm in the planning stages of starting a consulting business to provide companies with technical guidance on improving their processes. I plan to create a report with recommendations on how to improve their business and then sell machine design and project engineering services to them based on my recommendations. I have a BS in Mechanical Engineering without a PE license so I know I can't offer "engineering" services but don't want to limit myself to "Mechanical Designer" work either. What would be the best way to market myself in this situation? Also what kind of insurance do I need to carry when doing this type of work and where does one purchase it from?





RE: Engineering Business Marketing
Dan - Owner
http://www.Hi-TecDesigns.com
RE: Engineering Business Marketing
RE: Engineering Business Marketing
Cheers
Greg Locock
New here? Try reading these, they might help FAQ731-376: Eng-Tips.com Forum Policies http://eng-tips.com/market.cfm?
RE: Engineering Business Marketing
Check the laws in your jurisdiction, and maybe even apply for your PE. If your local jurisdiction will permit what you are doing, you won't be as mobile in your consulting as you would be with the P.Eng. Nearly every jurisdiction grants temporary licenses for out of jurisdiction P.Engs who are consulting within their jurisdiction.
RE: Engineering Business Marketing
The issue of insurance is arguable for this endeavor and depends on what type of work you do and your level of tolerable risk to your business. Besides a Liability Insurance policy (for when you knock over a ladder while touring a facility), the insurance you seek is "E&O" or "Errors & Omissions" insurance (for when you royally screw up). Many sources for this, many prices, search the forums for many discussions. I had a policy quoted years ago from my broker who provided my Liability policy. I chose not to get it because I was freelancing doing small machine design projects that I felt did not fall into the "Public Safety" aspect. I also aggressively managed my own risk by telling potential customers "No, thanks" to risky projects. The typical dollar value was low. But grow the business large and your project dollar value is large, it makes sense to acquire E&O.
Advice about your marketing. What worked (the 2nd, or 3rd time I "started") was to start small and build a loyal clientele who can provide referrals. Else you will be like any of a hundred other jokers out there telling potential clients that they can work miracles and solve all problems...if they'd only give you the purchase order. The response is usually Yeah, right . But if your potential client was referred by a happy customer...that's a whole 'nother thing.
Then the whole market: machine designers & system integration is a tough business. My experience is that those companies have a half-life of about 18 months. Until you are large enough to have sufficient cash flow cushion, it is very harsh & risky (IMHO). One misstep, and blooey. If possible, seek a niche and do superlative work at it.
TygerDawg
Blue Technik LLC
Virtuoso Robotics Engineering
www.bluetechnik.com
RE: Engineering Business Marketing
My company is MuleShoe Engineering and in order to have that name there has to be a P.E. in responsible charge of the company. I could have called it "David's Consulting" without a P.E. A friend of mine got a pretty substantial fine from the State when his P.E. left and there wasn't a P.E. as an officer of the company with "Engineering" in the name. He only did work for companies (didn't even have a Yellow Pages ad), but the name of the company was "holding itself forth to the public offering engineering services". Even if the stuff you are doing is generally done by company (i.e., "exempt") engineers, doing it for someone else is "holding forth" and generally covered.
Differentiating yourself from the herd is a major problem. I did it by writing papers, presenting at conferences, being active in engineering societies, and being active on eng-tips.com. I've never gotten work from a cold call/e-mail/letter. I've heard it works for others, but I've never seen it work.
David Simpson, PE
MuleShoe Engineering
Law is the common force organized to act as an obstacle of injustice Frédéric Bastiat
RE: Engineering Business Marketing
TTFN

FAQ731-376: Eng-Tips.com Forum Policies
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RE: Engineering Business Marketing
I've seen boards (in other states) interpret that section to mean "contractors that work for a single client at at time", so it is a good idea unless you are working for a single client (usually spending considerable time in their offices) to assume that the industrial exclusion doesn't apply.
David Simpson, PE
MuleShoe Engineering
Law is the common force organized to act as an obstacle of injustice Frédéric Bastiat