How to Start an Engineering Company
The following is a brief summary of a previous episode of the Engineer Your Own Success Radio Show for engineers entitled How to Start an Engineering Company: Owning and Managing an Engineering Business Through a Tough Economy. Sorry the show is no longer available but notes are below:
During the latest session of my Engineer Your Own Success radio show I had the opportunity to interview Rick De La Guardia owner of DLG Engineering to find out not only how to start an engineering company, but how to run an engineering company that thrives in any economy.
To give you some background, Rick De La Guardia is founder of DLG Engineering, Inc., a structural consulting firm, whose goal is to educate and raise awareness of the importance of the proper design, review and installations of our nation’s building envelopes. He obtained his bachelors of Science in Architectural Engineering from the University of Miami and currently serves as president of the University of Miami College of Engineering Alumni Association.
Rick took a job in a very specific field of building envelope consulting out of college and when he realized that he wasn’t being compensated fairly for his abilities he left the company and started his own company.
Below are the questions in bold that I asked Rick as well as his responses directly below the question:
What are the most important attributes of a successful engineering business?
Self-Awareness: Understand your capabilities, strengths and weaknesses
Foresight: Be aware of coming trends both economically and in your field
Adaptability: Do not limit yourself or be afraid to grow or expand
Integrity: Never sacrifice quality for financial gain
Honesty: Always be upfront with your clients
What advice do you have on marketing for an engineering company?
Put yourself out there (Facebook, LinkedIn, Professional Organizations, University and High School Alma Maters, Blog, and list your company on every free site available).
Network with people outside of your field or profession.
Keep people constantly informed of your progress and what you are working on.
As owner of an engineering company, how have you managed to not only survive but thrive in a down economy?
- Adapting and offering diverse services
- Providing discounted fees with the understanding that you are building a future working relationship
- Aggressive networking and marketing
- Relaxing on the terms and conditions of payment
- Finding a niche and researching and continually learning and staying atop of the trends and changes in that specific field
- Instilling a family like atmosphere and morale with employees and paying myself last
- Developing diverse contacts outside of my field
- Putting myself out there by writing and speaking to raise awareness of what we do and why we do it
- Giving back without asking for something in return just for the sake of self promotion
What are the pitfalls of owning an engineering firm in a tough economy?
- Collections and cash flow issues
- Delicate client relation issues
- Asking your employees to make sacrifices
- Dealing with creditors and obtaining loans
What is your unique insight and strategic plan?
I started my firm when many said it was crazy to do so. I knew that I was in a niche market and could offer no less or better quality than my competitors at a REDUCED rate due to having a smaller overhead. I also developed personal relationships with each client.
What advice do you have for someone thinking of starting an engineering company in tough times?
- Make sure you have a niche
- Be prepared to make sacrifices
- Assemble the RIGHT team and do not discount chemistry
- Have a financial backup plan to carry you through the tough times
- Pay yourself last
- Give your employees a say in the direction of the company and make them feel like it is a family
If you were looking for advice on how to start an engineering company, I hope this post provided it.
Helpful products related to this content:
Engineer to Entrepreneur: Success Strategies to Manage Your Career and Start Your Own Firm | Project Management for Engineering, Business, and Technology | ||
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We would love to hear any questions you might have or stories you might share on owning and managing an engineering business through a tough economy.
Please leave your comments, feedback or questions in the section below.
[widgets_on_pages id=”TECC Free Resources”]To your success,
Anthony Fasano, PE, LEED AP
Engineering Management Institute
Author of Engineer Your Own Success
i am emerging…. let me just finish my civil engineering course….
hello do I need a degree in engineering to own an engineering company an existing one? because I was wondering to invest an engineering company in the UK but was questioning myself. I have no degree I’m just an investor.
thanks
Martin Mothalib
Martin – I am not sure. I know in the US in many states you must have a license to own an engineering company but not sure about the UK. This site might help:
http://targetjobs.co.uk/career-sectors/engineering/training-and-development/becoming-a-chartered-or-incorporated-engineer-af
Enjoyed the post my partners and I started an engineering company in 2007 and have been doing great. You list having financial back up plan as one of the key requirements for success and I agree completely. For us this came in the form of a few well defined partners where we could offer highly customized design solutions on an ongoing basis. We established these relationships before we started so we always had a pool of work to keep us going through slow times. This was the foundation that allowed us to build our business.
If you are interested I have expanded on a particular angle of starting an engineering firm here:
http://www.spartaengineering.com/starting-an-engineering-department/
Great stuff – thanks for sharing Jason!
hello sir, am a polytechnic graduate and just about to finish my national service so as you can see am about to enter the job market,am from ghana west africa and i want to start an air condition servicing company together with my friend, can you please give us any advice.
Please take advantage of all of the info on the site.
Anthony
Please sir, my name is Vilimaina and I am from Vatukoula, Fiji and I would like advise from you. My father in law is planning to put a steel engineering company somewhere here in Fiji, and he has asked me to manage the company with family members as workers. I have no qualification in engineering but I am studying at the moment doing Diploma in Office Administration.
Please what shall I do to accomplish the family’s wishes and I am looking forward to your reply
Villamaina you should consider joining our community here so we can give you advice on a regular basis
http://engineeringcareerdevelopment.com/pricing-2/
Hello Antony,
I am s.kumar from India. I am graduate engineer. I am working in engineering consultant company
The way of approach is impressed me and it will syncronize me into became a entrepreneur
i will keep in touch with for more infromation sharing
Br,
S.KUMAR
Hello Sir,
My name is Luis, i am still in high school and i am 15 years old, for the last couple of years i have wanted to own my own engineering business, as i plan to study engineering in college i also want to invent something new as to have my company known for, and to also have my name known for a better chance of entering a good college. If you should have any tips or pointers they’d be very much appreciated.
Hiya i am bjorn from zimbabwe, i in the middle of my diploma in manufacturing under mech engineering. I plan to follow city and guilds courses to the final which is equal to doctorate. After that i want to start my own company of engineering, carpentry and construction. Not in zimbabwe ofcourse. What i would like to know is how best to start the business and how do i make it survive in fierce competition and economic struggles?
Bjorn – check out these articles:
http://engineeringcareerdevelopment.com/category/for-engineering-business-owners
I am a cad tech. I work for an abusive company and want to start my own business. I use to be a traffic engineering tech for a couple of years. Lots of engineering companies not only pay low but tend to be unprofessional at times. I want to offer manual, automatic traffic counting, accident studies, sign inventories, field drawing in AutoCAD, Mechanical & electrical / electronics drafting. I am not sure how to set up the business in upstate New York and if it has to be an LLP. I do not intend to hire anyone. I am not sure how to bill customers. Rate will be 18-25/hr. Any advise?
Your rate needs to be higher.
Brian you should contact an attorney and CPA in your local area to get these questions resolved. They will be able to help you for sure. Good luck!
My name is Jordan, and am currently working for a company that designs and builds agricultural feed plants and agricultural implements. I have a technical certificate in drafting/design, and would like to start doing small design projects on the side for extra income. I live in Idaho, and the licensure laws here are unspecific about what I want to do. I don’t want to go get a degree in mechanical engineering, because I don’t have time, but know that I can always get my designs checked by a licensed engineer to satisfy the legal issues. My question is, how do I approach companies that need my type of help, and where can I find them? Are there any specific organizations that could help me?
Hi Jordan,
You should consider joining our community here, with a yearly membership of $129 you get one coaching call with me and I know we can help you.
http://engineeringcareerdevelopment.com/pricing
Anthony Fasano, PE
Author of Engineer Your Own Success
I would like to start my own small Engineering business. I have the skills to work on Engineering machines. But I am not sure where I should start.
I have a consulting company that i run. i mostly sell energy efficiency lighting and controls. I am an engineer as in a i graduated with computer and electrical engineering degrees and i have my eit, just not my pe. my company is the word consulting in it. is that not allowed in new york?
Sir, i am a mechanical engineering student from bhopal,india. sir, i want some basic advice regarding my passion to start and run an engineering solutions firm. please,guide me.thank you.
Sir,
I’m a seasoned PE myself, albeit an EE, with a solid 13yrs of experience since I left college; I’m also in the Reserves as an Officer, so I have leadership experience. I’ve had my own business since 2006, though it has been more of a hobby than an actual business. While I do make just over $100k and work a 40h work week for my employer, I find that every year they want more of my freedom with less compensation. When I brought this up to my supervisor, he said that’s just the way it is and has stalled on any promotion or raise above 2%. Since I’m in a dead-end job, I need my Engineering business to get off the ground. What do you see as the most valuable method and resource for really launching an Engineering business?
Thank you for your time.
Tim – great question, the answer is probably very detailed, so I am going to answer it in one of my podcasts and will share the link here – thanks! I will say though you have to utilize LinkedIn!
Dear Anthony, My name is Chyrice and i have just recently opened up a company with my Father Westar Manufacturing where we do CNC Machining and investment casting amongst other manufacturing solutions. Previously I had my own business in the supply of Steel Pallets and the model of finding work by seeing 5 clients a day with marketing material and samples and selling your “product” is very different to finding work for the engineering/manufacturing market. You don’t have a “product” or “product range” to market. How do you find work? It would be much appreciated if you could assist me in this regard.
Thank you and I look forward to your response.
Hi Chyrice, you really need to become an expert in your field – check this out:
http://engineeringmanagementinstitute.org/expert
Hi! my name is Johnson Friday, an currently working on REGISTERING A CALIBRATION COMPANY WITH less fund on me but i believe i can make it to the top with little start. i have all the experience in testing and calibration still working in a calibration company too presently. please what is your advice on this?