Start your own firm?

[SUPRCiv]

For those who have done their own consulting firm, what advice would you give? (a sole prop. or partnership)

The pros as I see them would be:

You eat what you kill, potential for more pay.

A little more freedom, no boss.

You set your time, if your project is done go fishing if the schedule allows.

The cons:

You eat what you kill..

The time to get the billing cycle going...

Insurance, taxes, bills.

More time at the office.

Firm marketability, SOQs would be limited.

Others?

Thanks.

 

[cableguy]

First and foremost rule of starting / running a business... make friends with a CPA you can trust. Have them handle the gov't paperwork. Worth every penny to just have a "sign here" sticker attached to paperwork.

 

[solomonb]

This one requires some careful thought. Eat what you kill is correct-- in today's world, you might starve-- I would if I did not have other income. Yes, I am in private practice, engineering and management consulting. Licensed in 2 states, graduate education, professional certification. I have a nice office at home, as nice as any office downtown, which I would like, but cannot justify the overhead costs. The home office is very comfortable, no kids or pets, so no problems that way.

Finding work is tough-- I am in the upper Rocky Mountains-- things are tough here anyway-- people do not want to pay for your services.

The having no boss deal is pure fiction-- your new boss is the client and she/he can be much more demanding than the old pointy haired boss (Think Dilbert). I have had some teaching and course development gigs that have paid a little, however, if I did not have other income, I would be screwed.

If you have not had any business training, I would take a night school class in FAST TRAC, a curriculum developed by the Kauffman foundation. I have taught this for 4 years-- it is very very good for an entrepreneur getting started. Call your Small Business Development Center or School District Adult Education dept. Google FAST TRAC and check find location-- it will tell you where a course is offered near you. This is well worth its weight in gold if you are going into business. The tuition is peanuts, $500 or so, however, if you are going into private practice, this is just the first of many little costs you will eat.

There are many more snakes in the business for yourself gig than you might imagine. However, carefully entering the game by being real analytical is very worthwhile!

As I said, if I did not have other income, I would be screwed-- and I am out every day looking for the next gig. Granted, geographically this is not a great spot, maybe I have the wrong skill set, however, don't jump before you carefully analyze everything. I work with way too many folks that are in business for themselves and have no foggy clue about what they are doing, let alone able to tell me that they are making any money.

Good Luck on your future endeavors.

 

[jeb6294]

First and foremost rule of starting / running a business... make friends with a CPA you can trust. Have them handle the gov't paperwork. Worth every penny to just have a "sign here" sticker attached to paperwork.

But before that, I would make sure you find a good secretary to keep everything running smoothly...

 

[SUPRCiv]

Thanks for the replies. The secretary would have to wait, but someday... :dancingnaughty:

 

[Slugger926]

Once you go into business for yourself, your career is no longer "engineer" but "money generator". If engineering work isn't paying the bills alone, and you see other investment opportunities that are worth the risk after developing a business plan, you shouldn't hold yourself back to only engineering work.

Develop a solid business plan before jumping out on your own. Only 34% of businesses make a business plan, and is one of the reasons many fail because the pitfalls were not identified and accounted for while ignoring some opportunities. Also, do due diligence in the business plan. I know one guy that failed after building a million dollar business on a 6 page business plan, but is really thriving with a sustainable business the second time around with a 60 page business plan.

 

[SUPRCiv]

I know one guy that failed after building a million dollar business on a 6 page business plan, but is really thriving with a sustainable business the second time around with a 60 page business plan.

So double space the business plan, got it. I am working on that now, thanks for the input. I would really like to develop other streams of income to deal with the feast/famine phenomenon.

 

[Road Guy]

I think about it daily lately..

In Georgia there is an referrendum to be voted on in 2012 to create seperate tax districts for a 1% statewide sales tax (or for the regions that vote yes)

For the metro atlanta area the estiimated revenue generation is $10 Billion over 10 years...

If it passes I am going to find a woman and beg her to start a DBE firm and get our foot in the door..

Although I think you have to have enough $$ to survive a year or longer without any income

thats my 4 sentence business plan...

 

[cableguy]

thats my 4 sentence business plan...

So to summarize:

1. Find Woman

2. ?????

3. Profit!!!

That's it?