Engineer to Entrepreneur: Success Strategies to Manage Your Career and Start Your Own Firm

This chapter covers three different types of courses offered in school that will be beneficial to an entrepreneur later in life: courses that focus on or utilize computer software and programming, courses that develop management and/or leadership skills, and courses that teach us the core principles of our chosen engineering discipline. Specific courses to focus on, where computer software is required, are those that expose us to, or teach us, necessary entrepreneurial skills such as word document creation, presentations, accounting, web design and marketing. More important for entrepreneurs than learning computer software, programming and the technical aspects of engineering is learning how to be a good manager and leader. In order to be a successful engineering entrepreneur, we have a solid technical educational foundation, especially in our specific engineering discipline. This can be achieved simply by focusing on our Science, Technology, Engineering and Math (STEM) courses.

Certain activities, outside of the college curriculum courses, are ideal for learning the management and non-technical soft skills needed for becoming a good manager and leader. Most of the basic management and leadership skills can be learned and honed by actively participating in student organizations at the school. Any leadership position is acceptable such as secretary, treasurer, committee chair, event chair, captain, but one should always strive to grow within the organization and move up the ranks. There is no substitute for practical experience and working on real life projects. One must focus on getting summer or part time jobs that involve clerical, management or accounting duties. In fact, students have more to gain from networking than the average graduate or professional engineer. The average graduate or professional engineer, when he/she networks, is looking for contacts that may lead to potential business or collaboration.

In order to start the career off right, with entrepreneurship in mind, one need to begin to identify potential specialty or niche practice areas in their specific field of practice. A niche can be established in any of the known disciplines but it should be in an industry in which you have experience and/or connections. One can attain specialized knowledge through experience and connections and learns to provide a useful and needed service. This chapter exposes and raises the people’s awareness of some of the different engineering disciplines available such as mechanical engineering, aerospace engineering, civil engineering, structural engineering, environmental engineering, computer engineering and architectural engineering, including some of the responsibilities and useful services of each, in today’s society. It stimulates and inspires people to come up with their own unique idea though research and application.

The first job is very important in setting the pace for and guiding the career. Working for a small niche firm serves two important purposes, it will more than likely provide ample experience and also will more than likely be working under a very experienced individual. Small niche firms will tend to seek individuals that are versatile and can handle numerous responsibilities. A good mentor will help people avoid major pitfalls and be a great resource. The right firm is one that not only provides good and continual learning opportunities but can also offer the opportunity to work with a mentor, provide interaction with clients, give increasing responsibilities, provides management training and exposes people to a specialty or niche market. Two of the most important and vital qualities of an individual or company are honesty and dependability. Business cards are an essential marketing strategy even in this era of technology.

This chapter explores how one has specialty or niche that involves a specific idea, product or service. It examines how one needs necessary knowledge to become an expert and entrepreneur in their chosen field. The chapter provides an idea of how one can create an efficiently trained team and staff to follow and adhere to the quality and standards. One should not let impatience that ruins a great idea. One must be fully prepared and versed in their chosen specialty or niche. Keeping up with the latest technology, attending conferences, getting involved in committees and engaging with the peers are important to become an expert and entrepreneur in the chosen field. The business of entrepreneurship, in most cases, involves having a good relationship with the clients. They have to feel comfortable and trust with their business.

This chapter provides an overview of the steps to funding the startup company. One must determine their net worth and establish a personal budget surplus by finding how much funds they have. One should determine their start-up expenses by finding out how much funds they need. Start-up expenses will vary from business to business, city to city and state to state. One must determine their available sources of funding by finding out where to get the funds they need. Liquid assets are the easiest form of financing a startup company. The biggest fixed asset one could use to help with the company startup expenses is ones’ home or condo. The small business administration offers support including loans to qualifying companies. One must create and stick to a personal budget and establish a goal oriented financial plan by finding out how to get the funds they need.

Setting up the company and setting up the office are two totally different things. The former entails the formation of a virtual entity, the latter entails the structuring of a physical space in which that virtual entity will operate. This chapter focuses on setting up the company. Company startup logistics can be tedious, time consuming and confusing. A partnership is governed by a written or oral partnership agreement. The chapter provides the terminology, process and filing requirements for a corporation, one of the most typical of the legal company structures for engineering firms. When forming a corporation one must file an Articles of Incorporation application form. Board certification for engineers is done by taking and passing the principles and practice exam and obtaining licensure and registration as a professional engineer. The chapter discusses some aspects of starting and operating the company that requires professional advice.

There are many critical steps involved in properly setting up an office, most are logistical, and involve establishing procedures for the proper functioning of an engineering office based on the services it offers. This chapter focuses on the logistical aspects of setting up an office to function efficiently. A well-conceived and detailed budget is one of the most important items one will need to prepare prior to starting their own company. Creating a company sponsored health plan, is optional, and not required by law, for small businesses, subject to the affordable care act. A good project proposal for services should spell out a very specific scope of services and the project terms and conditions. Collections issues can turn into cash flow issues when clients do not pay on time and project flow slows down. This can be the most challenging and difficult aspect of owning the own firm.

It is important to understand that marketing and communications may be the difference between a successful firm and one that struggles. A good engineer can stop at what he is expected to earn, degrees and licenses, but a good entrepreneur will choose to go beyond that and create and earn his own credentials. Marketing is more of a personal human interaction and relationship building process. Professional non-engineering associations can be valuable parts of the networking strategy. One needs to mingle with and associate with those who do business with their potential clients. The professional networking site, LinkedIn, is a very useful resource that all entrepreneurs should take full advantage of. Today it is much easier to setup a functional and attractive website relatively quickly and inexpensively. Business cards are extremely important, even in this age of online access.

Management skills are needed in a variety of situations and they are all critical to success, but proper and detailed tracking is what allows for effective management. The office environment is an extension of the management style and skills. Cash Flow management is one of the hardest of the management areas to control and predict. Projects are the life blood of the company and what generates revenue. All project submittals to the governmental review agency should be clear and concise and provide the reviewer with all necessary information to make an informed decision, including citation of references used. Setting initial pay rates, raises and bonuses is important to keep up office morale and employee satisfaction and retention. Utilizing contract workers instead of employees is one way of reducing payroll expenses and saving on benefits. Profit management involves establishing and setting a fee structure for the services the company provides.

Among the traits of a good leader that are critical to entrepreneurship are great communication skills, honesty, empathy, humility, philanthropy, philosophy and self-awareness. This chapter explains how these qualities can manifest themselves in business by providing unique definitions of each, which may differ from the standard, along with real life examples. It shows how one can cultivate them and incorporate them to run business. A great communicator can change or drive minds, by being prepared with the facts and eloquently and concisely conveying a message with empathy, tact and confidence. Entrepreneurial philanthropy is not only a good business practice but also internally and spiritually rewarding and should be the duty of all successful entrepreneurs. A good leader or a good entrepreneur will never put himself or his company at risk for the promise of wealth, if that promise means compromising integrity.