Career Advice

I am nearing a fork in the road career wise and need some advice. I can either keep working as an engineer for state government or in 3-5 years pursue the dream of having my own engineering firm. I need to decided on what I want to do know so I can get the basics done while still working. There will be a time where I will be out of job and not getting paid until I get contracts. I want to keep that time to a minimum.

Problem:

-I have no idea on how to start a business (LLC vs Inc; obtaining loans; etc....)

-I have not come up with what engineering services I would like to offer (roadway design, traffic engineering, consulting, etc...)

-I basically need a mentor

My plan:

-Obtain PE license (test is in October, I will be studying overtime!!!)

-Apply for a new job in the Engineering Procurement office

Working there I should be able to learn exactly what a firm needs to get contracts and how much they make $$$

-While working there do the initial steps in starting a business (taking a class, getting business name, website, LLC, tax ID, etc...)

What do you think?

I have worked as a Civil Engineer in the Trasportation field for 5 years. 4, years of Roadway Design (large projects Microstation all day) and 1 year of Project Management of System Preservation projects (resurfacing, sidwalks, etc...)

Be sure to read up on revolving door policies your state has regarding procurement work. I have done some procurement reviews on the technical side of things for my state agency and I cannot work in any capacity for any of the bidding companys for 5 years if I remember correctly.

Obtaining a MBA should help with the business side of things

snickerd3 said:

Be sure to read up on revolving door policies your state has regarding procurement work. I have done some procurement reviews on the technical side of things for my state agency and I cannot work in any capacity for any of the bidding companys for 5 years if I remember correctly.

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Yes, I do need to check into this. I guess I will have to ask my suporvisor.

snickerd3 said:

Obtaining a MBA should help with the business side of things

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I thought about this. From what I have been told MBA programs are not geared toward Engineering to give enough help to justify the tuition cost. I am looking at a Masters in Engineering Management, which my employer will pay for. My father went from government employee to CEO of his own contracting busniess and he can give me some knowledge on something.

OK, here is how I would proceed. GO SLOW-- there are a lot of potholes in the road--however, with some guidance, we can get you through them. Get the PE license--that is first. Check with your superiors and see if your state has a revolving door policy as addressed above. You DO NOT need an MBA or MS/Eng to begin a business, however, you do need to have some business savvy. Go to your Small Business Development Center (SBDC). They have all of the tools and documents to begin a business, however, they are NOT going to do the work for you. You can use a firm such as ours, or as you intimate, find a mentor, perhaps a senior partner in a firm who is about to retire.

The SBDC has business classes-- some are called FAST TRAC or NEXT LEVEL-- I have taught both of them. They cost about $500, last about 12 weeks, 3 hours a nite, 1 nite a week. They give you a great overview of how to put together a business plan--- the guiding document to run your business. There is homework here and lots of it, if done properly. If you really apply yourself and pay attention to what is taught, you will do well. Sadly, I had many that thought that this was just a "nite school" class. It could be if you so desire, however, if you really apply yourself, you will learn a lot.

Check out SCORE-- Senior Corps of Retired Executives-- they too will give you some guidance on getting started. I would check all of this out now, priior to you beginning your business. Why? You have a job, are making money and are not under any pressure to perform.

Both the SBDC and SCORE are FREE! There is lots of FREE help, however, you normally need to pay for some guidance as well. However, you can get 77% of the way home with this help. If you are real good, you will not need any help, however, in 99% of the cases, some professional consultation is very, very valuable.

Recall that when you are in business, you do it all! I do mean all-- IT, marketing, bookkeeping, business development, cleaning the bathroom, in addition to whatever engineering you decide to offer. If you are shy, don't like talking to strangers each and every day, trying to find new business, this may not be for you. YOu might as well know this now. DO NOT assume that just because you put you shingle out, the door will be broken down with clients. 99.99999% of the time, that does not happen. Don't be misled into believing that it will.

You will also have to buy a desk, computer, chair, software in addition to whatever else you may need. You will have to have some office supplies as well. There are books on how to do that as well. You can buy used furniture for a song; will work just fine. That is what we have done many times. I do always buy a good chair; you back and butt deserve the best-- a cheap chair will ruin your body.

OK, does this help to get you thinking?

In general, if I have an LLC in one state, what do I need to file, if anything, in another state to do consulting (non-PE-stamping) work there?

My 2 cents:

Focus on PE first

Get as much job experience as you can, IMO for transportation you will need a solid 10 years of high level exposure work to create a name for yourself.

Manage projects like your life depends on it, use the phone more than email whenever possible

Network like crazy, professional associations are always looking for volunteers, get on a committee if you can, work up in the food chain of some organization

Take advantage of your state job to network, always think about the people you meet as future clients or future teaming partners..(businss to business marketing). Usually proposals consists of teams of firms. It's harder than one might think to get on a successful team..

Think about the MBA, even at a smaller school where it won't cost so much, the thing about an MBA is it's good that it's not geared for engineering, it's geared for business. I did my MBA in finance, but if I had to do it over again I would have taken more class's that were geared towards starting your own business.. I took a small business consulting class one semester to fill my electives and it was really good. They had us create proposals to help out small businesses in the area that needed some help, we got selected to create a franchising plan for a mom and pop pizza chain that later took off and the current owners, while they haven't franchised like subway, they now have about half a dozen stores, it seemed really cheesy at first but it ended up being one of the best classes I took.

I know a lot of people that create a site design firm with a few years experience, but my honest opinion is that it's going to take a little more time for transportation, you need to have several projects managed successfully that have been constructed without issues to gain some street cred..

Good luck!

As an update to this topic I started...... I never started my own firm. I still want to though. I did pass PE. I left state government and now work the Feds doing engineering and LOVE IT. Never knew a work environment could be so friendly and relaxed and flexible.

Thanks for the update!

Starting your own firm is tough but with the Feds you can at least make some contacts.

I wouldn't recommend a MBA for someone wanting to run your own firm.

MBA teaches you more how to be a middle manager for a large corporation, not how to be an business owner.

willsee said:

I wouldn't recommend a MBA for someone wanting to run your own firm.

MBA teaches you more how to be a middle manager for a large corporation, not how to be an business owner.

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Depends on the program. Mine (albeit officially an engineering management program, not an MBA) was really aimed toward entrepreneurship (presumably centered around the bright idea you developed in your technical engineering background).