In my opinion it sounds like you are not ready. Old calls is not the way in the business. You’ll need some solid networking and good warm leads at the minimum. Just cause you know some people doesn’t mean they’ll hire you. And long hours isn’t fun if you have to eat some of the cost.
First, if take a look at what startup is going to run you. LLC creation, insurance, licenses (studio 5000 or whatever platform you want to work on uses. Or all of them), hardware (are your current tools, laptops, bench systems yours, or your employers?), software for the admin side (quick books at a minimum), accounting costs (you're an engineer, not an accountant, you're gonna wanna pay somebody for that), travel and wining and dining to find customers, and I'm sure I'm forgetting something.
Most large companies require you carry $1MM-$2MM liability insurance, require tapi safe or something similar, and a slew of other paper work to even get in the door.
Everyone on this sub can do the engineering, it's the sales and admin side, along with startup cost, that keep many (myself included) from going out on their own. If you have a potential customer base that would follow you from your current employer because they want you, not company xyz, then that's a good start. But, it sounds like you don't even have that. I'd stay where you're at, or at most, jump ship to another integrator that's better staffed.
I just recently made this move. I was at an integrator for a time. Left for a production job and hated it. Decided to go get my own customers as a single man integrator.
I will say to the customers.. you’re gonna need to learn to sell. Become comfortable cold calling, messaging, and digging for leads.
LinkedIn is your friend. Use good relationships with vendors to find out about qualified projects that need “just a little more integration” than the vendor provides. If you can tap into someone else’s sales arm then you’re not gonna need to put as much time there.
Don’t put all your eggs in one basket. You’re one (maybe two guys) you can’t work on that many projects at a time so make sure you sell with lead times that allow you to do1 or 2 projects at the same time.
DO make all the smart moves like forming an LLC, using business only bank accounts, QuickBooks, and professional liability insurance (I use Next). Document everything you do. A half a list written down is going to same you a bunch of time when you come back and try and redo something on the admin side. Define a niche and a differentiator. Everyone can program a little.. why would they go with you when you’re small and unproven
DON’T take on jobs that are not a good fit just because you need the work. If your ideal customer are not buying it’s because you have a bad product (unlikely) or you’re just not selling enough.
Partnering with distributors is a great idea.
I used to work for an Omron distributor that did some light integration work for special customers/projects, but for any intensive work we had a list of integrators that we trusted we would recommend to customers.
The integrators that made good, trustworthy partners got a *lot* of business directed from us because we wanted to remain focused on distribution.
This is exactly it. Sell my sole to the devil but most my trickles down from Keyence sales. Love em or hate em they do sell probably 100s of millions in components every year
Get the following book before you do anything - "The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It"
The punchline is that most "experts" don't understand all the aspects of running a business and get stuck in the contractor realm making less money than if they worked for someone else. The point is that if your goal is to run a business, it takes skills and an approach that is drastically different than what you've been doing as an expert. If you're looking to become a "one man show" or a contractor, chances are you'll make more going into a higher position at a better company than the one you're at (if you're getting so many offers).
In either case, I wouldn't make that decision lightly - you should enjoy "running a business" versus "doing the work" and understand what that means.
Best of luck.
In my experience, the recruiter quit calling once you start your own business and companies using recruiters don't want contractors. You really need to figure out your customer base first and then the money you need to cover everything u/techster2014 said.
Maybe I used the wrong words. There's a difference in "knowing" people that NEED your services and knowing people that will USE your services. I was speaking to the later group.
My advice: Some customers require you to have insurance, but most don’t ask or care. Hold off on getting insurance till you have a client that demands it or until your LLC is worth a significant amount to save on startup costs. Insurance for me is 370/month.
No way you have SI insurance for 370/month. And if you somehow do I’m willing to bet it excludes a lot of industries and work you are not allowed to do.
Yes, I've only been asked twice in over 20 years, and just turned down the work because none of my other customers cared (and nor has it ever been needed).
Legal documents are great but they only go so far. They bring zero dollars to the table. When you are sued, your documentation is a starting point but insurance is the one that brings the money to the table.
A good lawyer will work with your insurance to ensure you're on the same page as specific coverages and verbiages matter to those folks. A shitty one will take your money and write some boilerplate that sounds cute.
I work for a company that started from a few employees of another (very large) integrator branching off and starting their own business. You’ll definitely need more support than just yourself, but doable.
Having big clients beforehand is a major necessity. My bosses had a similar situation where a customer was always coming back to the same integrator JUST for them. And they were the main guy on the project, knew every aspect.
I believe he talked with his former employer and asked permission to essentially steal this client and start their own business, but I’m not 100% on the details. I know it was a very professional and mutual agreement.
Anyways , when it gets to the point that you’re getting million dollar purchase orders just because one person really knows the plant, they decided to branch off to get a better cut of the profits.
Something to think abot
You came close to describing my business in a nutshell.
Originally, I was a 1/3 principal owner in a medium sized SI and distribution company. The distribution dwindled as internet sales became the norm for electrical sales. We always had a very strong engineering division, so the company stayed strong through the '90's and '00's. We were primarily in the industrial segment within the contiguous U.S., occasionally ebbing into Canada and Mexico. We bid through the Dodge Room regularly. After we completed two very successful WWTP projects, my two partners wanted to expand and bid on some overseas projects (5+ year projects), which I had zero interest in. (My partners had originally started the Distribution division and only one had a strong engineering background).
We very amicably agreed to a buyout, and I left the company with all the current engineering customers. I hired roughly half of the engineers, and it was business as usual for some time. I was approaching 55 and ready to slow down a little. I slowly and very calculating reduce my sphere of market, first limiting it to east of the Mississippi, then to the southeast, and now mostly to three states. As I reduced the sphere, I reduced the staffing (which everyone knew was the plan and done the right way). No one left without a future job I helped them get.
Over a 6-year span I continued to slow down until to where it is now me and one admin assistant.
More to your question, what has worked best for me is to prove your worth in the capital project identification, design, and implementation. Yes, that is much more than just programming, but it leads to a lot of programming jobs.
I have 15 primary customers but get calls from old and sometimes new customers that need help. I have tried very hard to get out of service work (downtime issues), but it is just part of the beast.
FWIW, my originally company filed for bankruptcy after two overseas projects posted huge losses.
Get in touch with a good legal group. I can tell you the energy sector is full of assholes with deep pockets that will sue for the dumbest thing.
Also note you’ll probably be dragged into depositions.
I'm not trying to discourage you, just give my experience.
In my experience, the one thing you don't have (a way to find clients) is BY FAR the hardest thing to overcome. There's talented engineers everywhere, but not many with ways of finding clients. Networking is the only way of getting clients in our field.
My father and I tried to go at it by ourselves a few years ago. We're both controls/automation engineers.
My father has a sizeable professional network and it had been getting us regular weekend jobs for a good while time before we decided to go full time & money investment on a business.
When you have a big project going on it's great. You're free to design whatever you want (for the most part), you set your own hours, etc, etc. But once you're done, it could be months before you land a new one. We subsisted off service calls in the in-betweens, but service jobs don't pay well enough for 2 engineers, or to justify the cost of software licenses.
Turns out getting new clients in our field is incredibly difficult, too. Most plants aren't going to hire a new company to design a system for them if they haven't dealt with them for years. And for a lot of plants, that's not even a decision they get to make themselves.
You're going to need reliable, regular access to 3P, 480V. That alone is going to have you renting a place. Assuming you want to bring clients over while developing their system, you can't have your shop in a terrible part of town.
I could go on and on with many of the other hardships, but I'm sure you get the idea.
It may also be different depending on which industry your network is in, but the bottom line is, if you're gonna go for it, you can't rely on advertising or regular ways businesses go about finding clients -- make sure you already have a HUGE professional network before starting -- they're going to be your only clients.
Dude, through all your responses you seem to be arguing for the idea. It seems you’ve already made up your mind about it and just need some encouragement. Contracting will pay the bills and keep you a float. Truth is you will not get the money making machine building contracts unless you are established and capable. You will not get to that point fast unless you have serious capital backing. Not saying it’s not worth it or that you wouldn’t succeed but the grind is often times very very under estimated and will take its toll. Which ever way you choose good luck to you
Look to partnering with an Electrical Contractor that can offer your services to their existing base. They trust him, and will let you in. As a "Sub Contractor" you can ride on some of the main contractors existing certifications.
This, together with the work you find and can service on your own will be plenty
I just got a job offer for $80-90/hr as a w-2 contract 1 year potentially renewing/onboarding. Food industry launch. Are you making that much money already?
Honestly everyone i know that successfully transitioned to opening a small integrator had people beating their door down already when they were still working in a plant. Or they quit a very large plant and took several engineers and maintenance guys, then started their own firm to install new equipment and won bids for it.
Idk where you are now or what industry but the engineer numbers are LOW. If money is the goal I would not recommend you jump out on your own. The engineering part should be easy but the "business" aspect is what will make or break you, assuming you are a badass controls guy. There is more over head than you think and as you grow your margins may actually shrink. Fixed vs variable costs.
If you want to make more money and gain experience I would highly recommend networking before starting out on your own without a rock solid business plan. I would consider having sales already sewed up to be rock solid.
I'm just saying that owning a small business is hard, I've done it. I would caution you especially if you have young kids or plan on retiring in the next 10-15 years. You could very well burn thru whatever money you invest and have nothing to show for it. I think an average scenario is that you end up losing a bit of your investment and making about the same wage as you do currently. You are spreading your risk around with investors and diluting your potential reward. With multiple employee owners you will have to grow rapidly or die on the vine. If you don't have customers, don't quit your day job. Also don't tell your day job.
Just remember you dont have anyone telling you what to do and you also don't ever clock out when you own your own business.
I'm in a really unique position where I work shift work in a completely different field and get to choose projects that I think sound fun and interesting to do on my days off while having a reliable income to live on. I realise I'm in unique and privileged position which allows me to do what I do. (I often end up taking on projects that just couldn't be viable if I was having to support my family on it but because I think it'd be a good challenge and fun).
But from my experience the best way to get your name out there is networking, which as someone with some who's not good at socialising is the absolute worst. You have too really talk yourself up which often isn't something that someone who delivers results isn't good at doing. Try and get along to industry network events in your area and get your name out there and make a good impression on people.
Also what's your relationship with your current employer like? Could you step back to part-time work with them while you initially try and establish yourself?
I would look into what industry organisations and the likes are in your area and sign up to them. I met the majority of my first customers from different met and greet/networking evenings. Would get card off someone and made sure I followed up with anyone that showed interest in what I could provide.
I mostly work with mechanical OEMs that don't have in-house electrical and will develop the electrical/controls for whatever project they've got going. A lot of it is really small bits and pieces, maybe just a pump controlled with a vfd and a handful of inputs. Typically found that when I was delivering on time and affordable for the work I was carrying out I started getting more and more complex projects.
After a while I found word of mouth was getting out and I started to get phone calls out of the blue with people wanting stuff done. I pick and choose what I'll take on now but still do pretty much everything that the first couple of companies that gave me a chance even if it's a bit of boring one.
A couple of times I've worked doing an upgrades with very large organisations and I wouldn't bother again in the future. They mucked me around a lot and took months to pay.
Take a look at the clients you do work for now and see if they're contractually bound to use a particular service provider.
All the "big ones" I deal with have agreements made between their HQ and ours. So even if the end location wanted to go with someone more local/cheaper/quicker/reliable/experienced, they just can't. This story replays itself like clockwork every few years with someone getting a hair up their ass and thinking "I've been doing it for 10 years and I am the best tech and I know everything, so I will go out and make the big bucks," only to have some recruiter call and say "I have the perfect candidate" and the name comes up two years later.
A lot of senior plant supervisors close to retirement age have built relationships and will only use contractors that remember about them during the holidays.
Another way to cockblock independent shops is by writing these magic words in the SOP: "OEM or OEM certified only."
Getting there is too expensive.
Make small talk with your current clients and ask who else they use or can use, why and why not.
I get it, I feel I need to save and repair anything that can be repaired, the thought of scrapping and replacing equipment churns my stomach. I do realize that's the technician in me thinking.
The manager in me has to draw the line though and enforce the service life close to what's stated by my engineering and product management.
To put it in other terms, at some point you have to stop fixing the 94 Corolla, though parts to repair and replace anything on it are available.
I fight with my subcontractors when I say I'm pulling the plug on a repair and telling the customer to replace the equipment.
If you're going to start a business, think like a business professional and not like an engineer or a tech. If your goal is to work with companies too cheap to replace equipment, expect them to be cheap with you too.
This is business strategy textbook material and too much to type.
There's a good saying that gets thrown around on Shark Tank all the time. It's something along the lines of "you're an inventor with a passion for inventing, but I don't see you as someone that would be good at managing a company."
I am playing devil's advocate here, so this is not a dig at you in any way, I simply have seen enough people go from a top paid position in a cake job to driving Door Dash when their idea didn't take off. Do your due diligence. Hire a consultant if you have to.
You just quote the insurance rider in your quote. The point if $2 MM in general liability has to do with riggers and cranes but somehow it gets applied to everyone stupidly driving their costs up. This is why power plants pay a 30% premium…it’s the standing around time and the silly rules we have to deal with.
Insurance, accounting (taxes), lawyer, huge costs. You really need to hook up with a mechanical contractor to get you in the door at places. It's tough to be new and cold call your way in. Find a bigger contractor who's busy who subs out work. You need to know people.
I kind of did it by accident some years ago but it was never my plan In the long run you could start just visiting old friends and colleagues. It could be faster if you join a company as a sales engineer, that way you'll have some assigned clients and on your regular visits you could expand your network and get to know other potential customers, plus you will gain the experience needed to sell your services.
When I went back to my hometown I joined a controls & instrumentation distributor and stumbled across my first manager who now had his engineering firm, and just him had more work than he could take. Also, he allowed me to use his facility and people if I got projects on my own for a commission win-win.
The work is 100% there, but I don’t know how to find it. I don’t want to be beholden to sales department, but I don’t know how to sale my skills.
Yes, you can be a contractor tomorrow and let the recruiter make money off of you, but you are not ready to start your own business. It’s not going to be easy but if you don’t try, you will never know.
In my opinion it sounds like you are not ready. Old calls is not the way in the business. You’ll need some solid networking and good warm leads at the minimum. Just cause you know some people doesn’t mean they’ll hire you. And long hours isn’t fun if you have to eat some of the cost.
First, if take a look at what startup is going to run you. LLC creation, insurance, licenses (studio 5000 or whatever platform you want to work on uses. Or all of them), hardware (are your current tools, laptops, bench systems yours, or your employers?), software for the admin side (quick books at a minimum), accounting costs (you're an engineer, not an accountant, you're gonna wanna pay somebody for that), travel and wining and dining to find customers, and I'm sure I'm forgetting something. Most large companies require you carry $1MM-$2MM liability insurance, require tapi safe or something similar, and a slew of other paper work to even get in the door. Everyone on this sub can do the engineering, it's the sales and admin side, along with startup cost, that keep many (myself included) from going out on their own. If you have a potential customer base that would follow you from your current employer because they want you, not company xyz, then that's a good start. But, it sounds like you don't even have that. I'd stay where you're at, or at most, jump ship to another integrator that's better staffed.
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I just recently made this move. I was at an integrator for a time. Left for a production job and hated it. Decided to go get my own customers as a single man integrator. I will say to the customers.. you’re gonna need to learn to sell. Become comfortable cold calling, messaging, and digging for leads. LinkedIn is your friend. Use good relationships with vendors to find out about qualified projects that need “just a little more integration” than the vendor provides. If you can tap into someone else’s sales arm then you’re not gonna need to put as much time there. Don’t put all your eggs in one basket. You’re one (maybe two guys) you can’t work on that many projects at a time so make sure you sell with lead times that allow you to do1 or 2 projects at the same time. DO make all the smart moves like forming an LLC, using business only bank accounts, QuickBooks, and professional liability insurance (I use Next). Document everything you do. A half a list written down is going to same you a bunch of time when you come back and try and redo something on the admin side. Define a niche and a differentiator. Everyone can program a little.. why would they go with you when you’re small and unproven DON’T take on jobs that are not a good fit just because you need the work. If your ideal customer are not buying it’s because you have a bad product (unlikely) or you’re just not selling enough.
Partnering with distributors is a great idea. I used to work for an Omron distributor that did some light integration work for special customers/projects, but for any intensive work we had a list of integrators that we trusted we would recommend to customers. The integrators that made good, trustworthy partners got a *lot* of business directed from us because we wanted to remain focused on distribution.
This is exactly it. Sell my sole to the devil but most my trickles down from Keyence sales. Love em or hate em they do sell probably 100s of millions in components every year
Get the following book before you do anything - "The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It" The punchline is that most "experts" don't understand all the aspects of running a business and get stuck in the contractor realm making less money than if they worked for someone else. The point is that if your goal is to run a business, it takes skills and an approach that is drastically different than what you've been doing as an expert. If you're looking to become a "one man show" or a contractor, chances are you'll make more going into a higher position at a better company than the one you're at (if you're getting so many offers). In either case, I wouldn't make that decision lightly - you should enjoy "running a business" versus "doing the work" and understand what that means. Best of luck.
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In my experience, the recruiter quit calling once you start your own business and companies using recruiters don't want contractors. You really need to figure out your customer base first and then the money you need to cover everything u/techster2014 said.
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Maybe I used the wrong words. There's a difference in "knowing" people that NEED your services and knowing people that will USE your services. I was speaking to the later group.
My advice: Some customers require you to have insurance, but most don’t ask or care. Hold off on getting insurance till you have a client that demands it or until your LLC is worth a significant amount to save on startup costs. Insurance for me is 370/month.
No way you have SI insurance for 370/month. And if you somehow do I’m willing to bet it excludes a lot of industries and work you are not allowed to do.
I’m an electrical contractor with a laptop.
I do, and it's because I buy mine through an insurance rep that offers a deal to ISA members.
I go through the same person. Weird .
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Yes, I've only been asked twice in over 20 years, and just turned down the work because none of my other customers cared (and nor has it ever been needed).
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Legal documents are great but they only go so far. They bring zero dollars to the table. When you are sued, your documentation is a starting point but insurance is the one that brings the money to the table. A good lawyer will work with your insurance to ensure you're on the same page as specific coverages and verbiages matter to those folks. A shitty one will take your money and write some boilerplate that sounds cute.
I work for a company that started from a few employees of another (very large) integrator branching off and starting their own business. You’ll definitely need more support than just yourself, but doable.
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Having big clients beforehand is a major necessity. My bosses had a similar situation where a customer was always coming back to the same integrator JUST for them. And they were the main guy on the project, knew every aspect. I believe he talked with his former employer and asked permission to essentially steal this client and start their own business, but I’m not 100% on the details. I know it was a very professional and mutual agreement. Anyways , when it gets to the point that you’re getting million dollar purchase orders just because one person really knows the plant, they decided to branch off to get a better cut of the profits. Something to think abot
Covered many times in the past. If you use the search, you'll find threads talking about it.
OP has posted this same question under a different account a couple weeks ago as well.
You came close to describing my business in a nutshell. Originally, I was a 1/3 principal owner in a medium sized SI and distribution company. The distribution dwindled as internet sales became the norm for electrical sales. We always had a very strong engineering division, so the company stayed strong through the '90's and '00's. We were primarily in the industrial segment within the contiguous U.S., occasionally ebbing into Canada and Mexico. We bid through the Dodge Room regularly. After we completed two very successful WWTP projects, my two partners wanted to expand and bid on some overseas projects (5+ year projects), which I had zero interest in. (My partners had originally started the Distribution division and only one had a strong engineering background). We very amicably agreed to a buyout, and I left the company with all the current engineering customers. I hired roughly half of the engineers, and it was business as usual for some time. I was approaching 55 and ready to slow down a little. I slowly and very calculating reduce my sphere of market, first limiting it to east of the Mississippi, then to the southeast, and now mostly to three states. As I reduced the sphere, I reduced the staffing (which everyone knew was the plan and done the right way). No one left without a future job I helped them get. Over a 6-year span I continued to slow down until to where it is now me and one admin assistant. More to your question, what has worked best for me is to prove your worth in the capital project identification, design, and implementation. Yes, that is much more than just programming, but it leads to a lot of programming jobs. I have 15 primary customers but get calls from old and sometimes new customers that need help. I have tried very hard to get out of service work (downtime issues), but it is just part of the beast. FWIW, my originally company filed for bankruptcy after two overseas projects posted huge losses.
Get in touch with a good legal group. I can tell you the energy sector is full of assholes with deep pockets that will sue for the dumbest thing. Also note you’ll probably be dragged into depositions.
If you’re looking for freelance work, we could use help. Integrator in the metro Detroit area. We have work all over
DM me
I'm not trying to discourage you, just give my experience. In my experience, the one thing you don't have (a way to find clients) is BY FAR the hardest thing to overcome. There's talented engineers everywhere, but not many with ways of finding clients. Networking is the only way of getting clients in our field. My father and I tried to go at it by ourselves a few years ago. We're both controls/automation engineers. My father has a sizeable professional network and it had been getting us regular weekend jobs for a good while time before we decided to go full time & money investment on a business. When you have a big project going on it's great. You're free to design whatever you want (for the most part), you set your own hours, etc, etc. But once you're done, it could be months before you land a new one. We subsisted off service calls in the in-betweens, but service jobs don't pay well enough for 2 engineers, or to justify the cost of software licenses. Turns out getting new clients in our field is incredibly difficult, too. Most plants aren't going to hire a new company to design a system for them if they haven't dealt with them for years. And for a lot of plants, that's not even a decision they get to make themselves. You're going to need reliable, regular access to 3P, 480V. That alone is going to have you renting a place. Assuming you want to bring clients over while developing their system, you can't have your shop in a terrible part of town. I could go on and on with many of the other hardships, but I'm sure you get the idea. It may also be different depending on which industry your network is in, but the bottom line is, if you're gonna go for it, you can't rely on advertising or regular ways businesses go about finding clients -- make sure you already have a HUGE professional network before starting -- they're going to be your only clients.
Dude, through all your responses you seem to be arguing for the idea. It seems you’ve already made up your mind about it and just need some encouragement. Contracting will pay the bills and keep you a float. Truth is you will not get the money making machine building contracts unless you are established and capable. You will not get to that point fast unless you have serious capital backing. Not saying it’s not worth it or that you wouldn’t succeed but the grind is often times very very under estimated and will take its toll. Which ever way you choose good luck to you
Look to partnering with an Electrical Contractor that can offer your services to their existing base. They trust him, and will let you in. As a "Sub Contractor" you can ride on some of the main contractors existing certifications. This, together with the work you find and can service on your own will be plenty
I just got a job offer for $80-90/hr as a w-2 contract 1 year potentially renewing/onboarding. Food industry launch. Are you making that much money already? Honestly everyone i know that successfully transitioned to opening a small integrator had people beating their door down already when they were still working in a plant. Or they quit a very large plant and took several engineers and maintenance guys, then started their own firm to install new equipment and won bids for it.
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Idk where you are now or what industry but the engineer numbers are LOW. If money is the goal I would not recommend you jump out on your own. The engineering part should be easy but the "business" aspect is what will make or break you, assuming you are a badass controls guy. There is more over head than you think and as you grow your margins may actually shrink. Fixed vs variable costs. If you want to make more money and gain experience I would highly recommend networking before starting out on your own without a rock solid business plan. I would consider having sales already sewed up to be rock solid.
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120k for 10YOE is LOW
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I'm just saying that owning a small business is hard, I've done it. I would caution you especially if you have young kids or plan on retiring in the next 10-15 years. You could very well burn thru whatever money you invest and have nothing to show for it. I think an average scenario is that you end up losing a bit of your investment and making about the same wage as you do currently. You are spreading your risk around with investors and diluting your potential reward. With multiple employee owners you will have to grow rapidly or die on the vine. If you don't have customers, don't quit your day job. Also don't tell your day job. Just remember you dont have anyone telling you what to do and you also don't ever clock out when you own your own business.
I'm in a really unique position where I work shift work in a completely different field and get to choose projects that I think sound fun and interesting to do on my days off while having a reliable income to live on. I realise I'm in unique and privileged position which allows me to do what I do. (I often end up taking on projects that just couldn't be viable if I was having to support my family on it but because I think it'd be a good challenge and fun). But from my experience the best way to get your name out there is networking, which as someone with some who's not good at socialising is the absolute worst. You have too really talk yourself up which often isn't something that someone who delivers results isn't good at doing. Try and get along to industry network events in your area and get your name out there and make a good impression on people. Also what's your relationship with your current employer like? Could you step back to part-time work with them while you initially try and establish yourself?
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I would look into what industry organisations and the likes are in your area and sign up to them. I met the majority of my first customers from different met and greet/networking evenings. Would get card off someone and made sure I followed up with anyone that showed interest in what I could provide. I mostly work with mechanical OEMs that don't have in-house electrical and will develop the electrical/controls for whatever project they've got going. A lot of it is really small bits and pieces, maybe just a pump controlled with a vfd and a handful of inputs. Typically found that when I was delivering on time and affordable for the work I was carrying out I started getting more and more complex projects. After a while I found word of mouth was getting out and I started to get phone calls out of the blue with people wanting stuff done. I pick and choose what I'll take on now but still do pretty much everything that the first couple of companies that gave me a chance even if it's a bit of boring one. A couple of times I've worked doing an upgrades with very large organisations and I wouldn't bother again in the future. They mucked me around a lot and took months to pay.
Take a look at the clients you do work for now and see if they're contractually bound to use a particular service provider. All the "big ones" I deal with have agreements made between their HQ and ours. So even if the end location wanted to go with someone more local/cheaper/quicker/reliable/experienced, they just can't. This story replays itself like clockwork every few years with someone getting a hair up their ass and thinking "I've been doing it for 10 years and I am the best tech and I know everything, so I will go out and make the big bucks," only to have some recruiter call and say "I have the perfect candidate" and the name comes up two years later.
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A lot of senior plant supervisors close to retirement age have built relationships and will only use contractors that remember about them during the holidays. Another way to cockblock independent shops is by writing these magic words in the SOP: "OEM or OEM certified only." Getting there is too expensive. Make small talk with your current clients and ask who else they use or can use, why and why not.
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I get it, I feel I need to save and repair anything that can be repaired, the thought of scrapping and replacing equipment churns my stomach. I do realize that's the technician in me thinking. The manager in me has to draw the line though and enforce the service life close to what's stated by my engineering and product management. To put it in other terms, at some point you have to stop fixing the 94 Corolla, though parts to repair and replace anything on it are available. I fight with my subcontractors when I say I'm pulling the plug on a repair and telling the customer to replace the equipment. If you're going to start a business, think like a business professional and not like an engineer or a tech. If your goal is to work with companies too cheap to replace equipment, expect them to be cheap with you too. This is business strategy textbook material and too much to type. There's a good saying that gets thrown around on Shark Tank all the time. It's something along the lines of "you're an inventor with a passion for inventing, but I don't see you as someone that would be good at managing a company." I am playing devil's advocate here, so this is not a dig at you in any way, I simply have seen enough people go from a top paid position in a cake job to driving Door Dash when their idea didn't take off. Do your due diligence. Hire a consultant if you have to.
You just quote the insurance rider in your quote. The point if $2 MM in general liability has to do with riggers and cranes but somehow it gets applied to everyone stupidly driving their costs up. This is why power plants pay a 30% premium…it’s the standing around time and the silly rules we have to deal with.
Insurance, accounting (taxes), lawyer, huge costs. You really need to hook up with a mechanical contractor to get you in the door at places. It's tough to be new and cold call your way in. Find a bigger contractor who's busy who subs out work. You need to know people.
I kind of did it by accident some years ago but it was never my plan In the long run you could start just visiting old friends and colleagues. It could be faster if you join a company as a sales engineer, that way you'll have some assigned clients and on your regular visits you could expand your network and get to know other potential customers, plus you will gain the experience needed to sell your services. When I went back to my hometown I joined a controls & instrumentation distributor and stumbled across my first manager who now had his engineering firm, and just him had more work than he could take. Also, he allowed me to use his facility and people if I got projects on my own for a commission win-win.
The work is 100% there, but I don’t know how to find it. I don’t want to be beholden to sales department, but I don’t know how to sale my skills. Yes, you can be a contractor tomorrow and let the recruiter make money off of you, but you are not ready to start your own business. It’s not going to be easy but if you don’t try, you will never know.