Starting an Engineering Company
This is a guest post by Brandon Lee Walter where he discusses the process of starting an engineering company.
I decided to try to make the move to a company that sounded like they would be prepared to ride out the upcoming recession in May of 2008. After being let go from that company, I wasn’t sure what to do, especially since the company was supposed to have had the type of clients who would not be hit so hard by the down economy. I had always wanted to start my own company, however didn’t think I had enough experience at the time. I had also not known of any single-owner civil engineering firm that had been around for a substantial amount of time. After talking with a buddy who had a government job (public works) as well as other previous co-workers, I decided why not dip my feet into the craziness that is known as the building industry and give it a shot starting an engineering company. I was able to get in contact with a civil engineer who by chance was about to close his shop because of unforeseeable events. The perfect storm brewed which resulted in me starting an engineering company, my very own LLC.
The LLC did pretty well from the beginning as I had always kept in contact with everyone that mattered to me along the way. We had job referrals coming from all different directions as we built up our brand awareness. We even started gaining a great reputation with repeat clients. All of this, with a new company that was less than one year old during the “Great Housing Depression Part 2” in Southern California. Then the partnership began to become wobbly. A partner had some events happen where he had to leave the state and take care of his personal life.
With two partners left, the falling apart of the LLC began. Now there wasn’t that third opinion, that we originally had, on what we would charge or how we would approach projects. We decided to drop a couple of large Downtown Los Angeles projects, and then began to proposing prices that were too high for new work. This approach quickly reduced our income! This is where I learned that not all engineers make good business-people. We basically ran ourselves into the ground even though we had this great reputation and client base. Not to mention the Architects we were working with preferred us to competing civil engineering companies in the area.
After dissolving the LLC, I wasn’t sure what I would do. I was pretty depressed as I put my all into it. I spent almost 18 hours a day 6 days a week trying to do anything I could to find more business, work on plans, and make more money. Fast forward about four months later with some pretty dark times in between and no real direction, I decided why not go for my own company again. I told myself that the outcome couldn’t be any worse. Plus I had a good friend that has his own Mortgage Company, telling me that it takes multiple business tries before you are successful. I learned a lot, saw a lot, and wanted to make sure that I would not repeat the same mistakes from the original company. So here I am today, one civil engineering company dissolved that I started at the age of 29, starting a new venture at the age of 32, keeping very positive that my old mistakes will not be repeated.
I hope this story gives hope to all of those who have struggled so hard in this difficult environment.
[widgets_on_pages id=”New AdSense 9-2016″]Featured Guest Blogger:
Brandon Lee Walter, in his 9-year career has become most interested in the challenges involving Hillside Grading in the greater Los Angeles area. Currently he runs his own small Civil Engineering company, B+W Engineering and Design. He also has an interest in Poetry and published an eBook of poems. Brandon may be reached at [email protected] or on LinkedIn.
Engineer to Entrepreneur: Success Strategies to Manage Your Career and Start Your Own Firm | ||
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We would love to hear any questions you might have or stories you might share on starting an engineering company.
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
Brandon, it’s great to see that you didn’t give up on your dream even though the first attempt did no go as plan. Whether it’s starting your own company, or being an employee of a different engineering company, we have to remember that every person involved won’t always have the same drive and motivation. If you decide to have other partners again, I suggest doing an interview session with them, as if you were going to higher them to work for you as opposed to be a partner with you. That way you can get a sense of their work ethics and what they feel is the right way for the company to go and how you should treat clients. While I can see that you are dedicated and are willing to put over 100 hours a week into the business, other people may see that as an easy way to invest in the company and let you put in all the extra hours while they reap the rewards. When you are an employee it’s hard to prevent others from reaping off all of your hard work, but as owner you will have more control.
Brandon, you have the soul of a serial entrepreneur in you! Many initial business ventures fail and it also takes the heart of a warrior to press on. In watching several of my colleagues go through what you describe, I must advise that “a stool has three legs.” Unfortunately, two person partnerships can suffer for many reasons, which you so honestly and succinctly describe. I strongly feel that a third element is involved in every partnership: the partner who provides financial oversight and the discipline to move forward. You will find that if you, yourself, have grounded your reputation in integrity, ethics and honesty as well as being very competent that you will have loyal customers who are anxious for you to emerge again. You are so correct. Not everyone is cut out to be an entrepreneur. But then again, if it were easy, everyone would be one. I agree with Bill, you have the most control over yourself and the final product when you are running the show.
Thanks Anthony for sharing Brandon’s story.
Is very motivating to know there are still professionals willing to face hard time with a proactive attitude. I personally believe in innovation as the way to improve consultancy services and business practices.
Brandon I wish you the best in your venture.
fernando
You’re right about engineers not being good business people. One reason is because there is often very little logic in the way business is done!
Lucky Balaraman
CEO
TMG, India
Providers of engineering, architectural and publishing services
http://TheMagnumGroup.net
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Thank You everyone for your feedback on this post, yes it is extremely inspirational and it is people like Brandon who follow their dreams that give us all hope and inspiration!
Thanks Anthony for sharing this. Your article inspired me lot…!
Your welcome!
Hello Anthony,
Seems you had a pretty good start. I started a Designing company in 2006 with three of my friends as partners, the two were overwhelmed and became silent, by 2008 we had been lot of projects and had 30 employees. By 2010 I had to let them go, and vacate the office.
As you said rightly “multiple tries” this is my second lap, still I am making the same mistakes out of desperateness, since I have nothing to lose now I should be not be desperate and “click” ..finding the difference…
All the best for you.
Thanks
Siva
Wow Siva – sounds like a roller coaster ride, go you for giving it a second lap. Best of luck – thanks for sharing!
Good morning,
Thank you for sharing your story. I am 30 years old and for years now I have been thinking of starting my own business. I get encouraged all the time, and people mention the benefits of women owned businesses, but I am not sure where to begin. I simply depend on my pay check to pay the bills right now, so financially how well off do you need to be in order to start a business, and I understand borrowing from the banks concept but still need to have a good idea of when is the right time.
In summary, I am seeking a mentor to lay out the do’s and don’ts , as well as review the business plan and provide tips. I am not afraid of failure, and I enjoy change as well as taking risks.
Thank you!
Mia, you should consider joining the IECD, we can help you with this and membership is very inexpensive.
http://engineeringcareerdevelopment.com/pricing
this is wesome great article and thanks for sharing
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