Starting an Engineering Firm: How to Manage and Own One
Originally posted on https://menaentrepreneur.org/2019/10/starting-an-engineering-firm-how-to-manage-and-own-one/
Are you an engineer with a desire to be your own boss?
It might be time to go out on your own and start your own engineering firm. There are more than 75,000 engineering firms in the United States. Starting an engineering firm and making it successful is a tough task.
You may be an expert in engineering, but you now need to be an expert in other areas to make it work. You’ll need to understand basic business principles, marketing, and sales.
Are you ready to learn more about what it takes to build a successful engineering firm from the ground up?
Keep reading to learn the top tips to start an engineering firm.
Why Start an Engineering Firm?
When you talk to people about starting an engineering firm, they’re going to want to know one thing. Why? Why start a business that competes with thousands of other engineering firms?
There are dozens of reasons to start your own firm. You may have seen how other firms work and believe that you can offer something different and better.
You could want to be your own boss and have the flexibility that comes with running a business. There are new challenges and exciting (and stressful) days running your own firm. You might decide that it’s time to take your skills to the next level and be a leader in your industry.
Whatever your reason is, it’s important to know why you’re throwing your hat into a crowded ring. This is often the one thing that will motivate you on the really bad days when you question everything and feel like giving up.
Know What Makes Your Firm Special
The next question that you need to answer is what makes your firm different from the pack. This is one of the most difficult questions to answer.
Businesses that get this right will go on to be successful. Businesses that don’t sound just like everyone else and will struggle to get clients. That goes for your engineering firm.
How do you answer that question? Start by doing research into your competition. You have to know what they do in order to find ways to position yourself. Find out about the services they offer, their prices, and how they deliver their services.
You may find that firms in your area often over promise and under deliver. They may not deliver projects on time or over budget.
Next, you’ll want to research your target audience. These are people, businesses, or organizations that you would love to work with. Do you know what they look for in engineering firms or if there are specific services they need?
You want to find that out because it sheds a lot of light on how you can set yourself apart.
After you understand your clients and competition, you need to gain insights into your services. What are your firm’s strengths and weaknesses? What makes your engineering firm different from the competition?
You might specialize in avionics and back that up with a DO-178 certification.
Once you answer all of these questions, you can create one sentence that sums everything up. This is called your unique selling proposition (USP). You can use this sentence in all of your marketing efforts, which will help you reach and connect with your ideal clients.
Be a Self-Aware Leader
You need to stop thinking like an engineer every once in a while. You’re going to have to think like an entrepreneur and a leader.
This may not occur to you at first, especially if you’re starting as a solopreneur. You will be leading projects and people in the community will look to you for your opinion and expertise.
The sooner you embrace this fact, the faster your firm will grow.
Being a leader requires self-awareness. You need to know your own personal strengths and weaknesses. Take the time to reflect on what you personally do well, what your weaknesses are, and how you like to work with people.
Plan for Everything
You never know when you’re going to experience hard times. In any business, it is bound to happen. The economy may collapse, or your major client may decide to pull its business for no apparent reason.
One of the top reasons why businesses fail is because they lack cash flow. They’re just getting by each month and have nothing set aside to handle these challenges.
You have to assume that you’ll have cash flow issues. You want to avoid that by setting aside a percentage of your revenue into an account that’s touched only when things hit the fan.
Network Everywhere
You need to get your business out to the masses. When you’re starting an engineering firm, personal relationships serve as a great way to get to know the community.
Start by networking everywhere. Tell people who you are and what your firm is about. The more people you can reach early on, the better.
The thing to understand about networking is that it takes time to get introductions. You have to keep showing up to the same networking events for months.
Once people get to know you, trust you, and realize you’re not a fly by night firm, you’ll get the introductions.
Starting an Engineering Firm That’s Built to Last
Much like your engineering projects, you want your business to last a long time. Maybe you create a legacy business that you can retire from and have other people run the day to day business.
In order to make that dream a reality, you need to have a strong start. starting an engineering firm requires both bravery and meticulous planning.
You want to make sure that you understand what sets your firm apart from the thousands of other firms out there. You also need a strong sense of financial responsibility and plan for anything and everything.
You’ll be able to survive the hard times and come out of them stronger than before.
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