How I started on my own. 3

[bvanhiel]

Here's my story. It might be more helpful than the ethics arguments that make up the bulk of every other 'starting out' thread.

I've always been interested in product design. I even played with the idea of being an industrial designer in school. I had worked in a lab on campus that gave me exposure to Pro/E, so I graduated in '96 with a leg up.

My first job out of school was designing industrial equipment. It gave me the basic documentation skills that school failed to teach. I was laid off after 3 years.

My second job was with a medium sized product design consultancy. I learned how to design/model plastic parts well enough that I could consider myself an expert. I was laid off after two years as the company closed all of its satellite offices.

My third job was with a medical device company. There I saw documentation/testing/quality taken seriously.

While I was at my third job I started doing jobs on the side. Many of them were modeling and part design tasks that I was able to get through contacts at the product design firm. Those jobs were typically overflow work from other firms.

Jobs were in the 20 hour range, and I could usually get them done in a week or so.

I quit after about 5 months of part timing with a promise of 3-4 months of work at contractor rates ($45/hr) and the ability to work from home. I was still able to do the other overflow jobs as they came in at consulting rates ($70/hr). My wife also worked full time, so we could cover some of our expenses on her income.

My contracting job provided me access to a license of Pro/E, so I was able to put off purchasing my own.

After my contract had been extended once I was offered a job at the firm I was contracting with. I turned them down, saying that I wasn't interested in a salaried job. They made up about 50% of my income, the other 50% coming from the less steady, but better paying work that was coming in.

After my contract had been extended again, they offered an equity stake in the company. I agonized for a little while, but realized that joining them (there were two partners prior to me) would allow me to hire and therefore grow. I would have been incredibly difficult to hire on my own with little experience, no office, no software, and no time to do anything but work.

So that's it. No real trials. No horrible slow periods yet. I kept my expenses low and worked like a dog (and still am), and had enough cash to buy in for a share.

I've learned a couple of things. The first is that the safety of a corporation is an illusion. You're only safe if you're not dependant on a paycheck to make ends meet. The second is that a reputation for being good at what you do is the best marketing you can have.

-b

 

[INBCPE]

Here's my story. It's all true. Nothing made up. Movies were made of lesser tales. Put your seatbelt on and read away.

I earned a 4 yr degree in ME, and chose to spend a year in grad school because I had some money tucked away from my college-era job. After that ran out, I got a job at a local engineering firm doing design work. Heat exchangers, pumping systems, chillers. It was all thermo and stress analysis. Very much in my comfort zone. I finished my MSME at night, and I was still a bachelor. But after 3 years, I was going nuts from boredom. I decided to challenge myself by getting a job "in the field", in a Fortune 500 chemical plant.

In the 5 years employed at the plant, I took advantage of every management training course or seminar - in house or 3rd party - that a Fortune 500 company can offer and my superiors would let me take. PSM, HAZOP, Mechanical Integrity, I got my boiler operator's license, you name it, I took it. I even paid for some myself. I also went back to school and got my MBA, and passed my PE exam, and got married, bought a house, and had 3 kids.

In 1999 I started doing side work. I let my superiors know, and they were cool with it. Basic inspections, some documentation. Not much money, but I liked the autonomy.

In 2000 we were told our plant was going to shut down and close up in one year, and when the door shut I was going to get 6 months of severance. That gave me 12 months to come up with what I wanted to really do with my life, and a 6 month cushion to get it rolling. I chose industrial contracting. I fell in love with it when I started working at the plant, and I love it today just as much, 10 years later.

So in 2001 I hooked up with welder that had done some work in our plant. He was independent at the time (worked for himself), and when the plant closed I approached him. I would do the engineering and project management, he would handle the field. 50-50. We started out small, just me, him, and two other guys.

Four years later, we had 28 people in the company. We had growing pains, but we were in demand. And I was workig the lion's share. 90 hour weeks versus his 40. But I wasn't going to rock the boat. I had a people-pleaser personality back then (please note that this is foreshadowing), so I didn't bring it up. My goal was long term success.

Then my partner went insane.

His substance abuse problem (that I didn't really know about until it was too late) reared up in 2004. Picture the owner of a $3 million construction company showing up on site under the influence, and pushing the operator of a piece of equipment out of his way and him getting behind the wheel. My dream started to unravel. No matter what we (me and a few of the other PM's) did, he wouldn't change. It all came to head when - the day after the best financial meeting the company ever had - my partner gets blasted, I catch him and order him home, he gets in a fight with his wife when she walks in the door, she starts packing her bags, and he hops in his truck, drives to the second highest bridge in the state, parks in the middle lane during rush hour, walks over to the railing, and jumps.

Front page of the paper. Strangers stopping our employees at traffic lights, asking if this was "the guy" (company was his last name). Customers looking at me funny. Business crisis consultants. Work volume takes a nose dive. My partner lives, but ends up in rehab. The writing was on the wall. It was over.

The last straw was after his return from rehab, he gets a DUI in the company truck at 9:00 am on a Monday. Within a month the company folded. Belly up. Corporate bankruptcy, trustees, judges, process servers at 10:30 at night ringing my doorbell. Bankruptcy is a whicked experience. The worst part is the very end when you're sitting in front of the judge and she's asking you pointed questions about what happened.

But the story doesn't end here.

Soon after the decision was made to fold, I approach two of the managers. I propose a 3-way partnership, because I couldn't do it all alone. In the span of two weeks, we sign a lease on a shop. We buy six trucks. A complete compliment of tools for 15 men. We embark on a whirlwind tour of the state to ensure there'd be work when we opened our doors. Opening day comes, and we're up and running. Within 2 quarters, we're showing a profit. Right now we're on our fifth straight quarter of making a profit (modest, but a profit).

But again, the story doesn't end.

I am being approached left and right to do engineering work, above and beyond what I do for the new firm, in areas that have nothing to do with the construction contracts we execute. This time, instead of me working like a madman at 11 at night for free, I'm doing it different. I have a 1/3 stake in the construction firm. But now I also have my own firm (no partners) for performing work independently. A steady, dependable salary in a company I own, and a separate firm to do special projects. Working until 11 at night now appeals to me, because there's money it. There's also talk now of the 3-way firm subbing out engineering to me. I don't know how that will pan out. That discussion is next week.

So my story will continue. I could have went and got a job in another plant, and stayed an employee. I chose this path. Would I have done certain things differently? Hell yes. Will I ever go back to being an employee? Hell no. Once you get a taste, you're hooked.

 

[ProEDesigner00]

Great Story INBCPe! I do not envy the part about the disparaging partner but the rest I admire. I believe part of my trouble with such immediate success is the populas of my area, very sparce and poor.

 

[arunmrao]

INBCPE
I can relate personally to your experiences though in a different world, I am still carrying on with some of the judicial cases due to earlier deliquencies (A legact left behind by partners) .

But joining a job in exchange no way and I have been making profits and clearing my past dues.. My wife supports the family and I have very modest expenses.

I do not continue to work till midnight for others unpaid but do it now as a rewarding work.

Such experiences enable you to take life headon and living becomes worthwhile.

 

[ProEDesigner00]

everyone
An update to my start. Last Monday I noticed that one of the council members of the town I live near scheduled a meeting for that evening by posting a notice in our little grocery. I quite turkey hunting early that evening so I could attend. (The choices we make!!!!!!!!!!!)

I was asked by several of our county chamber members of what I offered and whether I had any pamphlets. I gave all I had on hand. I was then asked to attend a breackfast scheduled for tomorrow morning to present my company to a new product manufacturer coming into our area. It is believed from the understanding the chamber rep understood thatthis company is looking for an outside design service to take on responsability they dot want to hire for at this point.

I have a 2 minute on stage sales pitch to do then one on one with them.