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Starting design business help

Anonymous Member

Anonymous Member06-06-2018 03:15 PM

  • 1.  Starting design business help

    Posted 06-05-2018 10:17 AM
    Edited by Tirza Austin 06-05-2018 10:16 AM
    I am interested in starting my own civil engineering design business.  I would like to do stormwater work (permit, SWPPP, reports etc.) and site development. I only want to do small residential projects for now. I would like help with the following:

    Resource material recommendations for starting up a small residential design business.
    "Words of Wisdom" from experienced designers-owners of what to watch out for and pay special attention too.

    Thank you for any help.

    ------------------------------
    Mark Westover P.E., M.ASCE
    Belfair WA
    (360)373-5677
    ------------------------------


  • 2.  RE: Starting design business help

    Posted 06-06-2018 10:32 AM
    Edited by Tirza Austin 06-06-2018 10:32 AM
    Mark,

    That's great that you are starting to think about opening your own shop. I too am in the same mindset. In my brainstorming/research I haven't come across any 'how to' books, but rather have relied on more senior engineers and general business owners as mentors. I'm very interested to hear what others may have to offer as "Words of Wisdom" on this thread.

    I'm not sure where you are in your career, but I turned 31 earlier this year and have been in the industry for 9 years now. When I got out of school, a few buddies and I thought we would be good to go in opening a firm as soon as we obtained our PEs... very naive of us.  My college colleagues have stayed in contact and at this time we are strategically discussing the logistics of starting a firm in the next 5 years. Some may say there's no time like the present, but there is so much to gain through experience and opportunity with our current employers during this time.  Part of me wants to go for it as soon as possible, but at the same time, it's probably not the smartest business choice at this time.

    Good luck with your venture. Thanks for starting this conversation.

    ------------------------------
    Trae Livick P.E., M.ASCE
    Civil Engineer
    Roanoke VA
    ------------------------------



  • 3.  RE: Starting design business help

    Posted 06-11-2018 04:32 PM
    Edited by Tirza Austin 06-11-2018 04:32 PM
    Thank you Trae for the input and best of luck to you what ever you decide.

    Mark

    ------------------------------
    Mark Westover P.E., M.ASCE
    Belfair WA
    (360)373-5677
    ------------------------------



  • 4.  RE: Starting design business help

    Posted 06-06-2018 10:35 AM
    Edited by Tirza Austin 06-06-2018 10:35 AM
    ​A few years ago, I was in a difficult position with a company that seemed to be going into a death spiral and took steps towards the same idea. I ended up with a better job with a better company and didn't go that route in the end, but I can pass on what I did learn in the process.

    • Incorporate to protect your personal finances from any threat of litigation. Legal Zoom is what I used and I was pleasantly surprised by the support they provide.
    • You need insurance. This was the final step for me and I never took it. You need to sit down with an agent who specializes in business insurance and discuss the type and value of the work you expect and also any requirements specific to your state.
    • Office location. Many small firms are basically one man shows run out of a home office, but depending on how you are zoned and local laws, you may need a business license.
    • If you have employees, that kicks in a whole bunch of additional expenses and rules you need to follow. I suggest networking with other local small businesses and freelancers to do the work you don't actually do yourself...CAD, Survey, Structural Work, etc. This can also help bring you work when they need a hand with something you are proficient in that they need help with.
    • Mentioning CAD...My model was built on farming this out to freelance CAD operators who are better and cheaper than me. Software is very expensive if you are just starting out. Most print shops and office type box stores can print for you. To avoid printing issues with line styles, etc. get the drawings plotted to PDFs at the correct size and scale. If the PDF looks correct, the paper version should look correct.
    • Try to get any certifications that may help get work. This includes things like LEED AP or NGICP, but also any DBE certifications you may qualify for. I don't always agree with some of the DBE policies, but I fault no one for taking advantage of it. I am a veteran and was going to register as a veteran owned business.
    • If you are a stormwater guy like me, don't forget municipal work. MS4 and stormwater utilities are a big thing now and this can be longer term steady work compared to the feast and famine nature of private development. Reviewing other people's plans on the behalf of a municipality or utility is also a pretty good gig for a small outfit.

    I hope this helps and I can't wait to see what other people have to add to this.

    ------------------------------
    Ron Zagrocki P.E., M.ASCE
    Engineer
    Aliquippa PA
    (717)580-5736
    ------------------------------



  • 5.  RE: Starting design business help

    Posted 06-11-2018 04:33 PM
    Edited by Tirza Austin 06-11-2018 04:32 PM
    Thank you Ron for the input.  I like the suggestion about hiring out the CAD work.  Unfortunately, from the research I have done so far the local government agencies do their stormwater work in-house.

    ------------------------------
    Mark Westover P.E., M.ASCE
    Belfair WA
    (360)373-5677
    ------------------------------



  • 6.  RE: Starting design business help

    Posted 06-06-2018 02:02 PM
    Mark:
    Congrats on the epiphany that working for yourself is the best way to go.

    A couple of things I did wrong:
    1. I quit too soon from my paying job.
    2. I didn't quit soon enough from my paying job.

    Starting a company takes some time.  You need to register a name, get a tax number, register the company at the PE board, get professional liability insurance.  In Texas, you cannot start advertising or marketing until you do all that.  I suggest that you start this stuff as soon as possible.  It takes about 60 days in Texas to get all this done.  Do not talk to potential clients until all this is in place. I lost two potential clients at the start because I was not ready.  After you have all this in place, tell the employer.

    If you are questioning whether you should or should not leave a job, you probably should.  I stayed about a year too long at the corporate engineering office before I took the plunge.  I spent every vacation trying to figure it out, and therefore ruined them, as I hashed things out again and again with my wife.  My problem was I liked the people with whom I worked.

    You can start small, and grow slowly.  My company has grown over a 4 year period from one employee looking for work to one employee, looking to find ways to have other people work, and 3 very busy contract employees.  Contract employees are great because they only get paid when they work.  Of course, you pay them more per hour because they need to purchase their own benefits.

    If you can, get benefits from your spouse.  Benefits are very expensive until you have been in business for 3 years.  The exception to that is disability insurance, and life insurance.  Replace what you had at the previous job at a minimum.  Disability will be expensive, and limited in the first couple of years.  Get good term life or variable term life.  Variable term increases the payment every year.  Term life has the same payment for the whole term so it started out more expensive, but stays level.  I got some of both, thinking I would probably drop the variable at some point when I had enough full-time employees to warrant benefits. 

    Professional Liability is expensive, but you will probably be able to find a payment plan. Note, it increases in price every year as you have more projects behind you.

    Join groups that need engineers that do stormwater.  I think builders and engineering organizations will help.  ASCE has helped me.  Greater Houston Builders Association will help too.



    ------------------------------
    Dwayne Culp, Ph.D., P.E., P.Eng, M.ASCE
    Culp Engineering, LLC
    Richmond TX
    (713)898-1977
    ------------------------------



  • 7.  RE: Starting design business help

    Posted 06-06-2018 03:47 PM
    I'm actually trying to do the same thing in New Jersey. Below are some links I found helpful. 

    Hydrology Software - Storm/Flood engineering - Eng-Tips
    Starting a Business on the Side - Using a Website - Engineer Business Practices and Issues - Eng-Tips
    Insurance coverage for part time desiogn work? - Structural engineering other technical topics - Eng-Tips
    Web Soil Survey
    Storm Water Management Model (SWMM) | US EPA
    Home | ICC publicACCESS


    ------------------------------
    Thank You,

    Vincent Milano

    KWINPAK CONSULTING
    609-929-0615
    Professional Engineer License # NJ 24GE05373800 and PA PE084298
    Certificate of Authorization 24GA28289600
    NJ LLC #2183986
    kwinpakconsulting@...
    ------------------------------



  • 8.  RE: Starting design business help

    Posted 06-11-2018 04:34 PM
    Edited by Tirza Austin 06-11-2018 04:33 PM
    Thank you Vincent.  I really appreciate all of the links you posted. I just got back from vacation so I have not had a chance to check them out yet.  I really do appreciate your response.  Thank you again.

    ------------------------------
    Mark Westover P.E., M.ASCE
    Belfair WA
    (360)373-5677
    ------------------------------



  • 9.  RE: Starting design business help

    Posted 06-11-2018 04:33 PM
    Edited by Tirza Austin 06-11-2018 04:33 PM
    Thank you Dwayne for the help.  I admire your "intestinal fortitude" to start your own firm and keep it going.  I really want to do something to augment my retirement income and give me something to do part-time, something very low key.

    ------------------------------
    Mark Westover P.E., M.ASCE
    Belfair WA
    (360)373-5677
    ------------------------------



  • 10.  RE: Starting design business help

    This message was posted by a user wishing to remain anonymous
    Posted 06-06-2018 03:15 PM
    Edited by Tirza Austin 06-06-2018 03:47 PM
    This post was removed


  • 11.  RE: Starting design business help

    Posted 06-07-2018 10:34 AM
    Edited by Tirza Austin 06-07-2018 10:34 AM
    As an ASCE member (which I assume you are), I encourage you to read Engineer to Entrepreneur: Success strategies <g class="gr_ gr_224 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace" id="224" data-gr-id="224">for</g> <g class="gr_ gr_211 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace" id="211" data-gr-id="211">manage</g> your career and start your own business by Rick de la Guardia. This book describes, what I believe, is the path you want to follow.

    I also encourage you to become active in your local ASCE chapter or other professional organizations to begin growing your network. 

    Best luck,

    ------------------------------
    Carlos Zuluaga C.Eng, S.M.ASCE, CMIT
    Ph.D. Candidate, Civil Engineering
    North Carolina State University
    ------------------------------



  • 12.  RE: Starting design business help

    Posted 06-11-2018 04:34 PM
    Edited by Tirza Austin 06-11-2018 04:33 PM
    Thank you Carlos for your post.  I just got back from vacation so I have not had a chance to check on the link.  Thank you again for your response.

    ------------------------------
    Mark Westover P.E., M.ASCE
    Belfair WA
    (360)373-5677
    ------------------------------



  • 13.  RE: Starting design business help

    Posted 06-07-2018 02:24 PM
    Edited by Tirza Austin 06-07-2018 02:24 PM
    ​I also forgot to mention that the local office of the Small Business Administration is a great help. It helps to sit down and spend time writing a business plan to figure out your needs. When you actually sit down and do this, you see things you may be overlooking. I know I found it helpful and I'm not the list writing type.

    Small Business Administration
    Small Business Administration remove preview
    Small Business Administration
    We support America's small businesses. The SBA connects entrepreneurs with lenders and funding to help them plan, start and grow their business.
    View this on Small Business Administration >


    ------------------------------
    Ron Zagrocki P.E., M.ASCE
    Engineer
    Aliquippa PA
    (717)580-5736
    ------------------------------