Success Stories on Starting up your Business 1

[Slugger926]

I would like to see some of the stories from those of you that started up your own engineering businesses.

I may be forced to jump in and start my own business a few years down the road thanks to the industry I work for now is shrinking.

What are some of the do's and dont's? What are the pitfalls to look out for? How do you fish for customers?

Why aren't there any decent materials out there on how much to charge for engineering projects except for textbooks that are 40 years old?

 

[Mililani]

What do you charge for engineering services???

What are your competitors charging? Who are your competitors?

I am competing with employees, a company can hire employees instead of my business. This limits what I can charge.

If I am competing against other consultants then my rate goes up.

 

[dig1]

Hi Slugger,

You write that your industry is shrinking so I assume you will be branching out into other areas.

The best way to get clients is contacts. Obviously, you need to do good work and these contacts need to have in what you do before they will consider hiring you.

Get your name out there as an "expert" in your field now; before you make the leap.

In addition to what is charged, you need to show what value you can bring to your client. Charge out rates are just an initial measuring stick; albeit an important one.

Total cost is what is important. If you have a better mouse trap or can bring better value to your clients you need to prove it.

Before you set a charge out rate, determine what are your costs. Determine what you need to charge to make your expected income/profit and cover your overhead, including benefits and insurance. Then find out what the going rate is. If you are lower than the going rate that is an immediate advantage. If not, re-evaluate your proposed overhead structure to see if you can lower your rates or justify why your rates are higher.

I'm just starting out on my own right now and have people asking when I can start on their projects. Right now I'm just waiting for the legal paperwork. The reason I have people calling me is contacts. It is a nice position to start. Now it is time to execute and find more clients.

Don't be afarid to look beyond your geographical region. I'm in the northeast and have some potential work in the southeast.

Look to form partnering agreements with firms where your speciality does not overlap so you both can benefit.

There is a book titled, I believe, Inside the Technical Consulting Business by Harvey Kaye. My copy is about 10 years old but it is still relevant in many areas.

Hope some of this helps.

 

[David]

Never jump into a sinking industry. It is much better to bide your time with a company cutting you a W-2, using your spare time to open/start a new entity on the side with hopefully a different market twist that pulls you towards a growing industry.

Some "give up" or get "fed up" with a "start up". My advice is to never "let up" once you've made your "mind up". Keep your "chin up" and remember not to use redundant words when quoting your engieering clients -- many have heavy grammar attitudes. <grin>

Dave

 

[manofstl]

I just made the transition from six-figure engineering manager to poor-but-honest consultant with no guarantee of anything. I thought about this move for proabably 5 years before deciding now or never. I began planning for the move by starting out cold-calling on clients. Did pretty well by strictly word of mouth. Made the decision last year to take the jump. I probably could have stayed at the corporate trough until retirement. But I'm having a blast, even if the money is harder to come by.
Would I do the same thing given a second chance? Absolutely!