Encouragement

Questions from a CPA trying to break free…

This question was posted recently on LinkedIn. Can’t help myself … I just had to jump in… marketing a consulting practice is a favorite topic!

I am a CPA who would like to would like to own my own CPA firm, but clients have been hard to come by.  Any ideas on a proven marketing program?

Here is my reply:

Yours is the first question asked when people find out I’m an independent consulting engineer. But after 30+ years in business, I’ve concluded there is no “magic bullet” or “proven marketing program.”

But don’t despair – you can do it as many have before you. It just takes time and effort.

One big advantage you have is a professional license, in an area where almost everyone can use your help. The big questions are WHO do you go after, and HOW how do you reach them?

The key is to focus. You need both strategies and tactics.

STRATEGIES — Try to define your ideal market(s), subdividing into niches. For example:

  • Business (B2B) or personal (B2C)?
  • Local or nationwide?
  • Special services like tax, audit, financial planning, estate planning, or???
  • What about specialty markets, like accounting for medical practices, or??? (Heard of one accountant who specialized in homeowner associations, and owned his local market – now that is a clever niche.)

TACTICS – Its all about credibility and visibility. That can be done through:

  • Speaking (such as local professional groups)
  • Writing (focused tutorial articles or white papers)
  • Teaching (adult education,seminars, webinars)
  • Networking (LinkedIn of course, along with cultivating live contacts.)

It won’t happen overnight, but it is worth it. Pick a couple and start working on them.

Incidentally, many of these can be done while you are still employed. We spent several years “laying pipe” before breaking free in 1987. Even though the market crashed (the very first day in business!) we still survived thanks to those previous efforts.

So it is doable, but it takes work. Is it worth it? I certainly think so – no regrets here!

Several other replied, but here is my favorite, from Carl Harrington, another tax accountant. Great nuts and bolts advice – my favorite kind.  These ideas apply to other disciplines too.

Couple of brief comments based upon my myopic view.

1. People don’t want to pay CPA’s to do the tax work because they didn’t want to pay the taxes in the first place.

2. Many people don’t understand the limited FAT privilege. The people who need you the most (in trouble) can’t hire you or share with you as you are not privileged. I would target every tax attorney in town and offer assistance, to come and meet the client at their office as part of their virtual staff or under a kovel letter. I would do this for free, or else you are not helping to facilitate their employing you.

3. You have a great chapter 9 going on in Detroit, probably with enough accounting and audit work for 30 CPA’s. Have you scoped it out yet? Why not? That work is not only huge, it would be fun too. They are re-negotiating thousands of contracts…..

4. Start volunteering with VITA, Start volunteering with public law firms who do things for indigent people. Soon your reputation will precede you. Go to small business meetings, become a volunteer for SCORE and other similar organizations. Teach classes on tax and accounting. Teach areas of taxation for attorneys, CPAs and EAs.

5. Shadow the local CPA; EA; TAX ATTORNEY meetings. Look for office space opportunities (a) to find what’s out there, (b) as a pretext to meeting new people.

6. Get the tax prep software (demos) and become familiar. Take free training from Drake etc. Get all your computers organized to go into business and clone everything so that you will have backup.

You will have a lot to do, and you will be able to open the CPA office “naturally” as you become so in demand that it is the greater of your choices.

Get busy and sustainedly busy before you launch.

Lot of work to do this……no time to slack off…….but you will be in demand…..

Of course, I invited Max and the others following the discussion to visit us here.

If you are one of those readers, welcome.  If not, you are also welcome!

© 2013, https:. All rights reserved.

Consulting as a Side Hustle…

Thinking about consulting, but not ready to go full time? Then consider consulting as a side hustle. You will learn a lot, and it will be much easier if/when you make your full-time JumpToConsulting.

First heard this phrase back in 2010 from fellow Arizona blogger Pam Slim at Escape From Cubicle Nation. I’ve sung her praises before, and will continue to do so. Unlike too many Internet bloggers/marketers, Pam is the real thing —  genuine, caring, and full of great advice and insights on starting ANY business.

But enough of the accolades. When I heard the term, it immediately resonated — for that is exactly how I got started in consulting over 30 years ago. Not ready to jump in full time, the part time route was a great way to test the waters to see if I would even like consulting in the first place.

The side hustle also brought in some extra bucks. With two kids at the time, any extra moolah was welcome. It even provided a tax shelter of sorts, by investing profits in some new fangled personal computers. (Have we come a  long way from that first Apple II…)

But most important, the side hustle provided a place to try ideas. Some worked, and some didn’t. The biggest disaster was a foray into computer seminars — but I learned an important lesson about barriers to entry. The biggest success was learning how to market consulting —  different from most traditional businesses.

So what was the original side hustle? We began teaching adult evening electronics classes at a vocational school (now part of the University of Minnesota system.)  My business partner had just started, and recruited me when another instructor had to drop our at the last minute.

Although I never taught before, it sounded like an interesting challenge. The challenge turned out bigger than expected, but I survived (as did my first students.) Actually, we all learned together, and my class reviews were positive.

That following spring, the school asked for help in organizing their evening electronics curriculum (a bit of a mess.) Recognizing an opportunity, we submitted a proposal. We had just  recently attained our PE (Professional Engineer) licenses, so we felt a nominal fee was warranted. We called ourselves Kimmel Gerke Associates.

The school jumped at it. When the dust all cleared, we probably earned a few dollars an hour. But we had tasted blood, and we had our first job under our belts.

We did many subsequent projects for the school (at improved rates). These included developing/presenting on-site training for several local companies (anybody remember BASIC?) The capstone was winning a state grant to develop a multi-year program on printed circuit board design, which was a nice chunk of change.

Other consulting projects began to emerge too. We were approached by a local county medical society to help them select a computer system. A small manufacturer asked us to develop a marketing white paper. Our side hustle was starting to generate some serious side income.

So why didn’t we break free? Well, actually I did — for three months. It took that long to realize I still needed to learn a LOT more about consulting, and I also needed to have a LOT more money in the bank.

Back to the corporate world I went, sadder but wiser — and also more determined that ever to make my own JumpToConsulting. It finally happened several years later, but it might never have happened without the original side hustle.

What about YOUR side hustle? Here are some things to consider:

  • Do you enjoy it? No sense doing it if it isn’t fun. After all, it is YOUR hustle.
  • Can you make money at it? The  bottom line.  But if your are not sure, a side hustle can be a good way to test a market without risking everything.
  • Any conflicts of interest? This is both an ethical issue, and a practical issue. Not a good idea to risk you day job over a side hustle. Keep it legal too.

Make a list of possibilities. A good place to start is Pam Slim’s original post, “What’s Your Side Hustle?” Be creative, and add your own ideas – even if the seem esoteric. Who knew there was a market for a couple of Electromagnetic Interference engineers?

Finally, give some thought to WHO your potential clients are, and HOW you would reach them.  This is called marketing — the linchpin of small consulting practices. No clients — no business.

Hustle on!

© 2013, https:. All rights reserved.

Consulting as a Path to Financial Independence – Part II…

In my last post, I discussed how consulting eventually led me to Financial Independence. The primary focus was prior to making my JumpToConsulting. In this post, I’ll elaborate on things done at and after my break for freedom.

First, I put away a startup stash. This is key, as there is nothing worse than having to give up too soon because you’ve run out of money. In my case, I had enough for six months with no revenue, or a year with half revenue.

Although I was pretty sure I’d make it this time (after a false start a few years earlier), a safety net still made sense. That also made Mrs. JTC more comfortable, although she was behind me right from the start. Plus as an engineer, it is always good to have a Plan B.

As it turned out, we never really needed to dig into the startup stash. Thanks to all the plans and a couple of startup contracts, we ran in the black right from the start. And although I stepped out first, my business partner was able to join me in a few months.

Next, we watched our income/outgo like a couple of hawks. No fancy offices – we both used spare bedrooms in our homes. No fancy cars either. Neither were really necessary, as most of our business was on-site, and often out of town.

Each month we would review both our bookings and our billings. The latter is really important for cash flow. Unfortunately, clients often delay paying (particularly their smaller vendors), so you need to stay on top of your receivables.

We did spend money on necessities, such as collateral (business cards, brochures, etc.) but even then we did not overspend. No fancy multicolor brochures — just two colors (blue and gray) on gray stock. We did hire a graphics artist for a logo and typesetting, and it all turned out very professional looking.

After two years, we set up retirement accounts. By that time, we knew we were going to make it, and the income was more predictable. Our accountant suggested Keogh plans, which let us put away up to 25% of our income in tax deferred accounts.

To even out the personal cash flow, we both drew modest salaries – about 80% of our previous corporate salaries. This forced us to be frugal, and helped maintain a cushion in the business account for slow months. It also assured that the Keogh funds would be available at year end.

Any additional profits were distributed as a bonus. Since we were a Subchapter S corporation, these were not “retained earnings” so we paid taxes on the bonus. These funds were put into our regular savings/investments.

At our accountant’s advice, we eventually hired a “fee only” financial advisor. Good thing we did — when the market went sour, he minimized our losses. That lets us focus on making money, while he manages it. Like us, he is a professional who knows his stuff and does his job well. We consider it money well spent.

A word of caution! You need to discuss these issues with financial professionals – your accountant, attorney, and financial advisor (if you have one.) The laws are constantly changing, and unless you are a financial professional yourself, you need their advice. The last thing you need is to tangle with the IRS.

Finally, we didn’t win the lottery — our incomes were comparable with corporate salaries for engineers, plus a reasonable profit for our risk. It was the combination of regular savings in the tax deferred retirement plan plus self-enforced frugality that eventually led to Financial Independence.

You can do it too, and you don’t need to be a consultant. But you do need to exercise some financial discipline and planning. Trust me, it is worth it! Good luck…

© 2013 – 2020, https:. All rights reserved.

You don’t need to outrun the bear…

One of my favorite stories, I often share this with wanabee or newbie consultants. It goes like this:

Pat and Mike are out in the woods hunting. They hear a lot of noise in the brush, and suddenly a bear appears fifty yards away.

They decide to run. But after a few yards, Pat stops, drops his backpack, and removes his heavy boots.

Mike says, “Fool, you can’t outrun the bear that way.”

To which Pat replies, “I don’t have to outrun the bear. I just have to outrun YOU.” (With apologies to me Irish friends and ancestors.)

Yes, it is an old story, and a bit corny too. But it does capture the essence of what we do as consultants. You don’t need to know everything about everything — you just need to know enough to help your clients.

Too many people worry about the bear. Rather than jump in, they hold back. They already know enough to be a successful consultant, but they keep spending more time and more money on more seminars, more workshops, more books, more programs, more CDs, more DVDs, or more ???

And there are plenty who feed on those insecurities — particularly in the on-line world.  Ever wonder why they aren’t out there doing it for themselves?

In fairness, there are a few (VERY few as near as I can tell) who have actually done what they promote, and who are willing to share what they know at a reasonable price (sometimes even for free.) Those are the ones you want to follow and learn from!

No, you don’t need to outrun the bear. But you do need to get into the hunt. And best to do so with those who already know how to hunt, and how to outrun the other guy in the first place.

Happy hunting!

© 2013, https:. All rights reserved.

Top 10 Reasons to Become an Independent Consultant…

With apologies to David Letterman…

10 – MONEY Can lead to Financial Independence. It ultimately did for me.

9 – PLACE Choose your own work location. Worked out of my home for the past 30+ years, and must say I really enjoy the commute. The view from the patio is nice too.

8 – TIME – Set your own schedule. Never did like the idea of 8 to 5. Or worse, never liked the idea of unpaid overtime. Much better to be PAID for working on a panic project.

7 – SECURITY – Can’t be fired. Took two layoffs to figure this out. Real security is having multiple “bosses” — no single client can put you out of business.

6 – SATISFACTION –
Do some good, have some fun, make some money. Nuff said.

5 – INDEPENDENCE – Call your own shots. Stop cleaning up messes made by others. As a minimum, you at least have the fun of making the messes in the first place.

4 – LEADERSHIP –
Be a leader, not a follower. Be the captain of your own ship, even if it is just a rowboat.  Besides, little rowboats can often go where the big boys can’t.

3 – LEGACY –
Make the world a better place.
Leave the world better than you found it. Your counsel and advice may well outlive you.

2 – LIFESTYLE –
No need to conform. Work when you want, where you want, and as much or as little as you want. You can even wear goofy hats!

1 – FREEDOM –
That is what really drives Uncle Daryl. Rule your world! Do it YOUR way!

Upon reflection, these top ten rules apply to almost ANY small business!

© 2013 – 2019, https:. All rights reserved.

You don’t need an MBA to consult…

I’m living proof. No MBA, and in fact, I’m an MBA dropout. But more on that later.

This post was precipitated by a post by Martin Zwilling at Startup Professional Musings, where Martin discusses the pros and cons of an MBA for entrepreneurs.

His advice is right in the title – Don’t Delay Your First Startup to Get an MBA. I could not agree more — don’t delay a JumpToConsulting for the same reason.

Now my personal dropout story.

I had just started a new job as a Field Sales Engineer.  My new boss, who I admired, was an EE with an MBA from a local university. When asked, he spoke highly of the program, and encouraged me to take advantage of the evening program and the tuition reimbursement.

So I enrolled. The first courses were interesting, and I learned some good stuff about finance and accounting. However, it was apparent that the MBA was designed to prepare one to move up in the corporation – not to start your own venture.

By that time in my career, I was already smitten with the entrepreneurial  itch. Unfortunately, you can’t shake it.

So I was faced with a decision — spend the next two years studying to become a corporate rat, or spend the next two years plotting and planning my eventual escape to independence through consulting. As you may have guessed, I did the latter. Damn glad I did, too!

Incidentally, this is not meant to disparage the MBA, or any other advanced degree. (My older son has an MBA, and it has helped him immensely.) If you already have one, toot your horn. After all, you worked hard for it and you earned it!

But as Martin points out, if you are itching to be an entrepreneur, more education may actually slow you down. Unfortunately, many people use getting an advanced degree as a crutch in lieu of just jumping in and starting something.

Some advice for my fellow geeks. I agree with Martin — if you have NO business background, the MBA can give you basic business knowledge. But so can a few good business books.

Or, you can do like I did, and get a job as a Sales Engineer. I learned more about business, sales, and marketing in the first year that I had in the previous ten years as a design engineer. Plus the real world sales experience was far more valuable than any theoretical MBA class could provide. Nothing quite like doing it to really learn it!

Finally, if you really want an MBA, the go for it. But just make it will take you where you want to go.

PS – If you have the entrepreneurial itch, sign for Martin Zwilling’s blog. It is a daily dose (yes, every single day) of solid business advice from a fellow Arizona Baby Boomer with a ton of experience as a successful entrepreneur.

© 2013 – 2021, https:. All rights reserved.

Why critics don’t count…

This post was written in response to a troll. Did not post his comment, but he did inspire this little missive.  


Did you ever notice that there are no statues for critics?

President have them. Statesmen have them. Military heroes have them. Even business leaders have them. But NOT critics. Hmmm… there must be a lesson here.

So what propels critics? In some cases ego. In other cases a desire to tear you down. And occasionally, an honest desire to actually help you improve. Often it is hard to determine the underlying motives.

Not saying you should ignore critics. If the criticism is valid, take it and learn from it. If the criticism is invalid or comes from someone unqualified, just ignore it. Either way, don’t dwell on it or take it as a personal attack (even if it is…).  It is often the price you pay for visibility and success.

Here is a story from early in my career.

I was transferring to a job where I would be dealing directly with customers, rather than being a back room engineer.

Stan, my boss (and a wise retired Marine colonel,) offered some unsolicited advice which later proved invaluable. As he wished me good luck, he added, “You are now going to be highly visible. Don’t take any criticism personally — to those critics, you are just a target.”

At the time, I wondered why he said that. But it wasn’t long before I was hit by some undeserved criticism. Thanks to Stan, I saw it for what it was, and didn’t take it personally. I was just a convenient target.

Fast forward 30 years, and here is another story.

In this case, I was only an observer. One of our colleagues had just published a book, which became quite successful. Unfortunately, that success prompted some petty jealousies within our engineering community.

Another colleague was whining about how the book wasn’t really that good. To which my business partner said, “Well, it’s better than your book.” Miffed, the whiny critic replied, “Well, I haven’t written a book.” The touché by my business partner, “That’s my point.”

As a consultant, you will often be the target of criticism — often unjustified. If so, you can always comfort yourself with this century old quote from Teddy Roosevelt:

It is not the critic who counts…

Not the man who points out how the strong man stumbles,
Or where the doer of deeds could have done them better.

The credit belongs to the man who is actually in the arena,
Whose face is marred by dust and sweat and blood,
Who strives valiantly, who errs, who comes short again and again,
Because there is no effort without error and shortcoming.

But who does actually strive to do the deeds,
Who knows great enthusiasms, the great devotions,
Who spends himself in a worthy cause,
Who at the best knows in the end the triumph of high achievement,
And who at the worst, if he fails, at least fails while daring greatly.

So that his place shall never be with those cold and timid souls who neither know victory nor defeat.

That quotation has hung in my office for years, as a reminder of what is REALLY important!  

© 2012 – 2021, https:. All rights reserved.

How long does it take to make it?

I once posed that question to an attorney, about the time we were starting out in consulting. I knew this was not going to be an overnight success, but was curious about what to expect. The attorney had run his own small practice for many years, so I figured he was a good person to ask.

He responded, “Good question. Let me think. For me, it was five years. After working hard to launch and build the practice, one day I woke up and realized that I was established, and that I was going to make it. Yes, it was five years after I started.”

I often recalled his comment in those early years after making my own personal JumpToConsulting. wondering when I would feel like that. Things were moving along pretty well, and at the five year point, I FINALLY felt the same way — we were established.

But then, disaster struck. The business suddenly stopped.  It didn’t slow down — it came to a screeching halt. Two major clients suffered business setbacks, and cut back on using outside consultants.

The main niche we were pursuing — personal computers — dried up as the inevitable market shakeout occurred. So did a secondary niche. And finally, an uncertain presidential election put many client business decisions on hold.

Fortunately, we had put enough money aside to weather the storm — a short one, anyway. We used the time to regroup and refocus.

Since we’d done a bit of work on medical devices, we asked how could we expand that business. That led to writing a series of articles for a leading medical magazine, which ultimately led to a book and a nice bunch of new business.

We also looked into several other areas for potential business, and started some focused marketing efforts there as well. The result — within six months we were back on our feet.

So, how long is enough? For us, it was five years to get TO, and then THROUGH, the first big crisis. And having weathered the storm, we realized we were no longer novices — we had truly made it — and were here to stay.

P.S. Don’t despair in the early years — it is a lot of fun starting and building a practice. But it is also very satisfying when you realize you “made it” too!

© 2012, https:. All rights reserved.

On Turning 60…

When making several career changes (including my own Jump to Consulting), I often justified my actions with “Well, I don’t want to wake up one morning and discover that I am 60 years old, and I never did that…”

Well, I’m now past 60, and guess what — I am damn glad I took those chances!

© 2012, https:. All rights reserved.

Today – Celebrating 25 years as a full-time consultant…

Monday, October 19, 1987… the day the stock market crashed… was also my first day as a full time consulting engineer with the company I confounded. The crash was scary, but we obviously survived. Now we just reminisce that the first day in business was the worst day in business. It has been better ever since.

After consulting part time for nine years, it was time to take the plunge. At age 41, the time seemed right. I didn’t want to wake up at 60 regretting that I had not even tried. Besides, the worst possible outcome was not fatal — it just meant having to crawl back into the corporate world again.

Since we didn’t want to sink the business right away, I stepped out first. The original plan was to for me to work on projects while drumming enough additional business to support both of us. We thought this might take six months or more, but we were wrong.

In spite of the market crash, my business partner was able to jump in a few months later. We had done a lot of planning, and it paid off. We also had socked away enough money to sustain us for several months with no business, and a year with moderate business. That let us focus on building the business, rather than worrying about paychecks.

Looking back, there have been quite a few adventures that most likely would have been missed in a regular job. These include several interesting foreign assignments:

  • Korea – Two trips to teach classes to about 100 engineers. What a pretty and gracious country!  And who knew there were so many types of kim chee?
  • Kuwait – One trip to teach a class for the Kuwait National Petroleum Company. This was after the Iraq/Iran war, but just before Kuwait was invaded. Met a bunch of fine young engineers there, and I hope they all survived the Iraq invasion.
  • Singapore – Ten days working on an experimental plasma incinerator. Boy, did that ever cause some interesting electromagnetic interference issues. Fixed it though, and enjoyed the multicultural influence on this very interesting city-state.
  • Alaska – OK,  technically not a foreign country, but spent two weeks teaching classes at Prudhoe Bay, the wellhead of the Alaska pipeline. This was a treat, as my brother (a civil engineer) was responsible for many of the buildings in the oil camps. Also experienced -50F, even colder than Minnesota.
  • Others – Several trips to the UK, Germany, Amsterdam, Canada, and Mexico for both teaching and consulting projects. Enjoyed them all.

There have also been a number of very interesting engineering projects across a wide range of industries. Here are some memorable ones:

  • Diesel locomotives. A highlight was sitting in the cab, looking for the cord to blow the whistle.  Disappointed, however, when I discovered it was jut a button on a console. Oh well…
  • Airplanes. Worked on a lot of avionics projects, but another highlight was sitting in the cockpit of a Gulfstream pretending I was a pilot. My client even said it was OK to make airplane sounds.  Now do engineers know how to have fun, or what?
  • Spacecraft. Worked on a bunch of these too. A highlight here is knowing one of those projects is still orbiting overhead gathering scientific data, and well in excess of its expected life.
  • Nuclear power plants. One time when I asked where the reactor was, I was told it was only a few feet away through solid concrete. No, I don’t glow in the dark, but the real disappointment was that I didn’t start regrowing hair.
  • Medical devices. Probably among the most satisfying projects, realizing that my efforts have helped improve products that save lives.

In total, I’ve worked on a couple of hundred projects across a wide range of industries (details here), yielding several lifetimes of engineering experiences. In addition, my business partner and I have trained over 10,000 engineers in our technical specialty — sharing what we’ve learned with a new generation of engineers — a reward in itself.

Would I do it again? In a heartbeat.  It has been quite the adventure!

Incidentally, this post was not meant to brag, but rather to offer an example and encouragement to anyone considering their own JumpToConsulting.

What will the next 25 years bring you?

P.S. – Won’t be posting for a couple of weeks – time for a little vacation. But, like the Terminator, “I’ll be baaack..”

© 2012, https:. All rights reserved.

A Thought for Today…

Great advice! Saw this today at the gym where I work out.

If you REALLY want to do something, you’ll find a way.  If not, you’ll find an excuse.

So how about it — do you REALLY want to start your own business? If it is a consulting practice, we’ll help you find the way. Any other business, we’ll still offer you encouragement.

© 2012, https:. All rights reserved.

From the mailbag…re “Are Engineers Really in Demand?”

This is a response to Jim, who commented on “Are Engineers Really in Demand.” Thought this deserved a blog post, rather than just a response from me.

Of all the things that offer consulting opportunities Engineering, with the exception of Civil, is way down on the list. With all the non disclosure agreements and req 4 security clearances its almost impossible to be a real engineering consultant. Besides Companies find engineering the most outsourced, easily replaceable ppl prod today. Companies can hire temp Engrs today by the handful. Unlike things that take that special personality to make it successful Engrs have finally become the new grunt labor seen by Mgmt as “the ppl not smart enough 4 a real business career.” Wake up its 2012 not 1962!

Thanks for the comment, and for reading my blog! In fact, you’ve given me ideas for a new post.

First, I respectfully disagree that engineering consulting is not viable. Having done this full time for 25 years (and having made a very good living at it), I’ve also met a number of other successful full time engineering consultants across multiple disciplines — electrical, mechanical, civil, and more.  Even collaborated on projects with some, when we needed to leverage our individual strengths.

I also disagree that nondisclosures and security clearances are a barrier. We regularly sign nondisclosure agreements, although we do NOT sign non-compete agreements. (If we agreed to work with only one auto company, one medical company, one computer company… we’d soon be out of business.)

Regarding security clearances, we’ve worked on classified programs without clearances. We’ve held clearances in the past, so we appreciate this concern.  Fortunately, our engineering specialty does not deal with classified data, so we work around it.

But the military/defense sector is only a small part of industry — there are a myriad of opportunities in other areas (commercial, facilities, medical, industrial controls, and much more) that do not require security clearances.

Incidentally, we decided early on NOT to focus solely on defense, and have been better off for it. (Didn’t want all our proverbial eggs in one basket.)

I do agree that engineering is being outsourced, and to I share your concerns. But is it realistic to expect that we in the US should “own” all the engineering?

After all, there is a world wide market for our products.  My experience with non-US engineers has been positive — smart, innovative, and driven with a passion for engineering. (Maybe that explains some of the outsourcing — companies seek talent where they can.)

At the same time, there are many medium and smaller companies who employ local talent. In fact, they are among my favorite clients. Many of the engineers are refugees from big companies, and are more interested in changing the world than climbing the ladder.

Ditto the management. Many are engineers themselves and appreciate the contributions of their employees — and also their consultants!

Regarding the latter, these companies are often fertile ground for consulting, particularly if you have unique talents and experience such as power electronics, analog design,  RF design, EMI/EMC (our area), etc. These smaller companies often need help, but not on a full time basis. Yes, they often “outsource” too, but to consultants.

Finally, I agree with your displeasure with unenlightened management. I spend the first half of my career in the corporate environment (big and small), and was twice suddenly out of a job due to corporate bungling and egotism.(Also two reasons why I eventually decided to hang out my own consulting shingle.)

But I also worked for several good companies with great bosses where I learned a lot. Ditto my clients — I’ve seen some great managers in both large and small companies.

So if you don’t want to be on your own, rest assured there are good managers out there — but you do need to seek them out.

I hope this helped. When I responded to the IEEE article (Are Engineers Really in Demand?), I sensed a lot of frustration, just as in your comments. That’s OK — I’ve been there too. But my goal was to show there are viable alternatives, with consulting as one of them. Good luck in 2012, and beyond!

© 2012 – 2013, https:. All rights reserved.

Do You Want It So Bad You Can Taste It?

When people tell me they are thinking about consulting, I often share this story with them. It  helped me on several occasions, including making my own personal JumpToConsulting.

In high school, I worked as a “soda jerk” at the drugstore in our small town. Since we were next door to the town doctor, he often stopped by for a soda or malt. He was an interesting fellow, and we would chat about various things.

One time, I asked what prompted him to go into medicine. He suddenly got serious, and then responded:

“I don’t know where this conversation is going, Daryl, but if you are thinking about medicine, let me share some advice. I love medicine, and I’m glad I chose to go this route. But is was a lot of work — much more than I ever thought it would be.

So, if don’t want it so bad you can taste it, don’t even start.”

Actually, I wasn’t interested in a medical career, and had already decided on engineering. But it was not going to be easy, either academically or financially. His advice often rang in my ears as I pursued my engineering studies at the university.

Did I still want it so bad I could taste it? The answer was always yes.

Almost twenty years later I made my personal JumpToConsulting, as a full time consulting engineer. There had been a lot of work to get to that point — and like the doc, it had taken more effort that I thought it would.

There had been a false start a few years earlier, and then, on the first day in full time practice, (October 1987), the stock market crashed. It was panic time. What should I do?  Grovel perhaps, and try to get my old job back? But then I recalled the old doc’s advice:

Did I still want it so bad I could taste it? The answer was still yes.

That was 25 years ago. The consulting part of my career has been particularly satisfying and rewarding. It wasn’t always easy, and it was even scary at times.

But overall, it has been great fun.

So, if you are thinking about making the JumpToConsulting (or any business venture for that matter) ask yourself if you are REALLY committed.

Do YOU want it so bad you can taste it?

© 2012 – 2017, https:. All rights reserved.

Advice from a fortune cookie…

From lunch this week at a favorite Chinese restaurant:

Joy comes from the adventure today. Time to shake up the world.

Really liked this fortune cookie quote.  How about you?  It captures my feelings about small consulting practices in particular — and micro-businesses in general.

PS – Well, as of today our downsizing move is finally done. Everything is out of the old place, and much of our “stuff” has moved on. Still sorting to do, but we purged a lot.

Soon off to a technical conference where I’ll be presenting a short technical tutorial — one of my favorite marketing tactics. (See Rule #3).

Then I hope to get back on track and devote more time to the JumpToConsulting project. In the meantime, thanks for riding along!   


© 2012, https:. All rights reserved.

Create your own luck…

We’ve often been told we’re lucky to have our own business. But luck really has very little to do with it.

Here is a response made to a recent guest post at Man vs Debt, an inspiring blog by Adam Baker on his challenges of overcoming a big load of debt acquired at a relatively young age. Not unusual — you hear of the financial plight of young college grads all the time. But Baker decided to DO something about it (Sell Your Crap, and more…)

To keep on course, Baker even started a blog. Now, a couple of years later, he has built up a very successful business. His most recent adventure is creating a documentary (I’m Fine, Thanks.) My response follows:

  • A little over 25 years ago, and just before jumping into full time consulting, my business partner was in a precarious position in his full time job. The layoffs were coming, and everyone knew it.
  • For the previous several years, we had been moonlighting and developing a small engineering consulting business. By that time, we were both ripe for the jump anyway. One of his colleagues commented, “You’re lucky — you have something else you can do.” To which he replied, Luck has nothing to do with it. I’ve worked long and hard to get into this position. If the ax falls today, my shingle will be out tomorrow.”
  • As it turned out, I jumped first — the day the market crashed in 1987. Bad luck? No, we had laid enough plans and lined up enough clients to survive that fiasco (but emotionally, our FIRST day in business was probably the WORST day in business.) In fact, business was so good (and so much more fun) that within a couple of months we were both in full time practice.
  • The lessons learned — planning and flexibility are much more important than “luck”. And twenty five years later we’re still at it. Not bragging — just offering some encouragement. You can create YOUR own luck!

One more piece of advice. If you are considering a JumpToConsulting, do something TODAY to move you in that direction. Doesn’t need to be a big step — even a tiny step counts. Then do something else tomorrow (or at least next week.)

Every journey starts with small steps that are repeated. I am repeatedly frustrated by those who tell me they are “thinking” about consulting (or any other venture) but who never even take that critical first step.

So go create your own luck! You can do it…

P.S. – Been a little lax on posting here. We recently moved/downsized and it has been a big effort. Now getting resettled, and looking forward to getting back to normal – whatever that is.

© 2012 – 2014, https:. All rights reserved.

Two quick observations on starting out…

When asked about becoming an independent consultant, my business partner and I often share these two observations from our early days:

  1. We thought we would work 20 hours a week and get rich. Instead, it often seemed like we worked 20 hours a day just to make a living.
  2. We thought we’d find wealth and security. Instead, it often seemed like we were six weeks away from bankruptcy.

The latter is also a good personal test — if the fear of failure paralyzes you, probably best to stay with your day job. But if that fear gives you a little jolt of adrenaline… well, you’ve got “the itch”,  for which there are only two known cures.

Don’t despair – things eventually get better. When starting out, plan on working hard and even being scared at times. But isn’t that the lot in life for most entrepreneurs?

© 2012, https:. All rights reserved.

Questions from a reader on starting out…

Here is a recent email exchange that I though some of you might find of interest. I’ve hidden the name for confidentiality, but I’m sure S will recognize himself.

Hi Daryl,

My name is S.  I’m also a follower of  your blog. How are you doing with that these days?

I’ve noticed you’re an engineer who had a lifestyle-enabling consulting business. Were you able to liberate yourself with the income and time required to live your ideal lifestyle?

Always love to learn what my fellow community members are up to, and the obstacles they are facing.

S

Hi S,

So far, so good. After 25 years as a full time consulting engineer, I think it might work 🙂

Seriously, it has worked well. The consulting business has been a lot of fun — probably more than had I stayed in the corporate environment. Freedom is more important to me than status or a lot of money. I prefer to be the captain of my own ship, even if it is just a little rowboat.

A couple of secrets I’ve learned. Live below your means, and sock away money for retirement and/or lean times. I draw a relatively low salary to cover living expenses, which usually leaves a bonus at year end for savings and funding a Keogh, etc. This also smoothes out the cash flow, and prevents the lifestyle from rising to the income peaks.

No great obstacles. The biggest initial challenge was bringing in the business, which required a lot of up-front marketing effort. Now that I’m established, that part is easier but it still requires some attention. Kind of like tending a garden.

I assume you are an engineer, too. I’ve found consulting a great way to practice the profession. It took me a while to make it work, but it has been worth it.

Best Wishes,

Daryl

Daryl,

I’m not an engineer… I am however focused on using the recipe to make more free time for myself.

I enjoyed reading your answers. There is one thing that I would like to learn more from you: how did you specifically bring in the business and execute the up-front marketing initially?

Thanks,

S

Hi S,

Ah, the number one question I hear — how do you get the business? The short answer — peddle, peddle, peddle…

Seriously, we have used a number of methods to get business over the years. There is no simple “silver bullet”, and it takes both time and effort. Here are some things we’ve done:

  • Write – articles, newsletters, books
  • Speak – local meetings, national symposiums
  • Network – professional organizations, trade shows
  • Internet – Web site, blog, LinkedIn
  • Collateral – business cards, letterhead, simple brochure

Many of these are discussed in more detail in my blog. Not all have been addressed yet.

We didn’t do all of these at once. We started with writing tutorial articles for the local business magazines and for the “second tier” technical magazines. Both can get you published in 90 days or less. We also got active in our local professional organization.

Probably more important in the very beginning, however, was identifying a couple of potential clients, and then working with them. Our first two major clients were a test lab and a training company. We subcontracted to both of them for several years.

  • For the test lab, we were like substitute teachers, filling in as needed. That meant we did a lot of second and third shift work, often called at the last minute.
  • For the training company, we spent a lot of time on the road the first couple of years. Neither were full time. In our “spare time”, we actively pursued other clients.

So, as you can see, at first it was a lot of work. To be blunt, if your goal is more free time, starting a business may NOT be the way to go. In the early years, you’ll likely work much harder than you ever would with a full time job, and probably make less money.

In closing, I’m fond of analogies. Starting a business is a like the old pioneers who homesteaded on the prairie (as several of my great-grandparents did out in Nebraska.)

  • First, you start out in a dirt (sod) house, made after you busted the sod yourself.
  • Next, you plant a garden & orchard, but you scrape by until they start to produce.
  • Soon after that, you build a barn for your cow and horse, and then work from sunup to sundown to feed and tend them.
  • Finally, if you are lucky (no tornadoes, droughts, or other disasters), in several years you start to get ahead.

But even then, you don’t get rich. Such is the price of freedom to do your own thing. Would I do it again? Absolutely! But it was a LOT of work, with very little free time in the beginning.

Good luck in your pursuits,

Daryl

PS – It just occurred to me that my message might be a bit negative.

Yes, if you want to start a full time consulting practice, plan on a lot of work. On the other hand, if you are looking for a PART TIME practice, and don’t need to make a full time living, then consulting can be a very viable way to make more free time for yourself.

I’m kind of slipping into that mode myself, as I become “semi-retired.” The real goal, of course, is to free up time to do other stuff I want to do — such as this blog.

Daryl,

No worries. I’ve been emailing enough people to hear similarly toned opinions before.

I can currently live on a part-time income while spending the rest of my time on a product (i.e. front-loading my work time right now so that I’m not making decisions based on financial consequences later).

Best wishes to you too,

S

And good luck to all of you! Similar questions?  Drop me an email at daryl (at) jumptoconsulting (dot) com, and maybe you’ll appear here too.

© 2012 – 2013, https:. All rights reserved.

Need a Job??? Create Your Own…

This is what 40 attendees of the recent “Start Your Business Workshop” in Chandler AZ are considering. As an aside, all 40 had recently lost their jobs. But rather than sulk or wait for the government to intervene, these 40 budding entrepreneurs were taking matters into their own hands. On a beautiful spring day in Arizona, no less. Bravo, I say!

The workshop was an extension of Laid Off Camp/Phoenix , a program staffed by volunteers intent on helping those who have recently lost their jobs. This special session focused not on getting another job, but on starting your OWN business. It was my privilege to discuss consulting as a small business possibility.

The group (attendees and speakers) ranged in age from the 20’s to 60’s. While I was probably oldest person in the room, my boomer colleagues were well represented. Unfortunately, the new boomer reality is often “Too old to hire — too young to retire.” 

Almost all of the speakers (like me) had been laid off at least once. In addition to offering “nuts and bolts” advice, we also shared our stories — the zigs and zags of starting and building our businesses. The talks were both practical and inspiring.

The session was kicked off by Arizona’s own Pam Slim (Escape From Cubicle Nation.) Her insights are priceless — over the years, she has helped hundreds launch/build successful small businesses of all types. I’ve sung her praises before, and gladly do so again.

The most inspiring talk of the day came from Randy Walters, the founder and owner of Pittsburgh Willy’s Gourmet Hotdogs. Laid off at 53 (boomers take note), Randy had an epiphany while watching a TV commercial. Rather than look for another job, he decided it was time to follow his dream — running a hot dog stand like his father had done in Pittsburgh in the 1930s.

So he plunged in and bought a hot dog cart — but then didn’t sell his first hot dog for six months. He described, with great humor, the Catch-22 bureaucracy along with the bad business advice he chose to ignore (gourmet hotdogs — never work — keep the menu simple–etc.) But Randy stuck with his dream, and five years later, he now has a full restaurant that is a “must visit” here in the Valley of the Sun.

Several people expressed interest in consulting. One was a former HR person, another was a retired teacher interested in tutoring, along with a fellow geek (engineer.) Of course, many of the speakers were consultants, and included a newly minted lawyer, a graphics artist, a former car salesman, a couple of web experts, and an accountant who also runs a women’s exercise studio. What an interesting bunch!

Here were some key points gleaned from the presentations. While several of us emphasized these, it was probably good to hear them repeated.

  • Marketing is key — No, the world won’t beat a path to your door. You’ve got to light the way. Remember, without customers you don’t have a business.
  • Follow your dream — Don’t compromise, and be true to yourself.  Don’t wake up at 60 wishing…
  • Don’t give up — As Pittsburgh Willy said several times, if one way is blocked, just hunt for another way to get there.
  • Don’t be afraid — Probably the most important. A little fear is perfectly normal, but don’t let it overwhelm you.  And don’t be afraid to ask for help.

So, if you are looking for a job, why not consider creating your own?  Many of us have already done so — consultants and others — and we’re having a ball.

P.S.Best wishes to all who attended — yes, you CAN do it!  And while happy to share my perspective, I’m sure I gained more than I gave. Special thanks to organizer Susan Baier (www.audienceaudit.com), who does this as a labor of love.

Now, off to Pittsburgh Willy’s for a hot dog…

© 2012 – 2015, https:. All rights reserved.

Are Engineers Really In Demand?

Here is my reply to a recent IEEE article “Are Engineers Really in Demand?” The authors posed this question in response to a recent  Washington Post story that discussed unemployment among engineers. Being a geek myself,  I was intrigued.

What disturbed me, however, were the comments that followed.  Way too much griping about how the government, big business, or foreigners (H1B visas) were to blame. Whoa!  What happened to being responsible for your own career?

So here was my response:

Lot’s of complaining here. Let me offer an alternate (more positive) view.

After being laid off twice early in my career, I decided to hang out my shingle as a consulting engineer. After 30+ years (25 in full time practice,) I can say it has been great. The technical work is interesting, the pay is better, and the respect is even better yet. Not only that, as you get older, the perception is that your experience is even more valuable — rather refreshing.

The down side is that you no longer have the “security” of a company behind you. But as most of us know, that is a myth anyway. In fact, with consulting it is quite the opposite — no one client can put me out of business.

But you DO need to hustle for the business, something that frightens many engineers. I just look at getting new business as another technical challenge. After all, we’re supposed to be problem solvers, right?

Frankly, I wish more engineers would adopt the mindset of working for themselves, rather than depending on the corporate bean counters for sustenance. If doctors, lawyers, and accountants can be in practice for themselves, why not engineers?

Food for thought. Finally, if you are considering this, get your PE license. You’ll need it to open some doors. Then start hustling — you might be pleasantly surprised with the results. I’ve certainly enjoyed my way of practicing engineering. Good luck!

The results? A bit disappointing. One troll did respond with a rather bizarre comment “… You escape for now. The giant vampire squid of capital is seeking the small leaks next…”  Huh?  Missed the point, or really bitter I guess.

But I shall remain positive. If you are reading this, you are presumably not willing to depend on  “the man” to give you a job.  Creating your own can be a satisfying alternative — consulting or otherwise. You have my encouragement…

P.S. Will do a talk on consulting at the Start Your Own Business Workshop this Saturday in Chandler AZ. The workshop is sponsored by LaidOffCamp, a great program for those who have lost their jobs.

Who knows — maybe we’ll even help launch some new consultants!

© 2012 – 2013, https:. All rights reserved.

It was not Obama’s fault that you failed…

Nor was it Bush’s, or Clinton’s, or anybody else’s. If your business failed, it was YOUR fault. But don’t sulk about it — figure out what you did wrong, fix it, and try again!

This rant was precipitated by a recent comment on a business blog. The author whined that his new venture failed because Obama had “tinkered with the health care system.” What a crock — I just wanted to reach out and slap some sense into him.

Time to grow up or shut up!

Just for the record, it took me two times to get the consulting business right, and four times to get the training part of the business right. And there have still been the occasional rocky times since then.

In 1987, on the first day in full time business (the second time around) for my consulting business, the stock market crashed. Scared of failing again? Yes, but this time we succeeded, and we now joke, “The first day in business was the worst day in business.”

Failures are merely learning experiences. Sure, they may hurt at the time, but if we let them, they almost always teach us something. Furthermore, I don’t trust anyone who “never failed.”  Either they are lying, or they are very good at placing the blame on others. (Had a boss like that once… one reason I went out on my own.)

Here is a quick story that has served me well over the years. It was my first engineering sales job, and my new boss sent me to a multi-week sales training class. One evening at a break, I asked an older (wiser) and very experienced salesman how he handled the inevitable setbacks and failures.

  • He smiled, and said, “Just pick yourself up, dust yourself off, and move on.”  He went on, “If you never fail, you’ll never learn, and you’ll never make progress. By the way,” he added, “I’ve been at this for over twenty years, and I still fail to make the sale more often than not.” His advice alone was worth the price of the class.

So if you are serious about running your own show (consulting or otherwise), expect failures along the way. Try to manage the risk and minimize the damage, but know that you WILL have failures. And when you do, LEARN from them.

But don’t blame Obama, or anyone else! Finally, remember the immortal words of Harry Truman, “If you can’t stand the heat, stay out of the kitchen.” And I’d like to add, “If you can’t stand the failures, don’t start a business…”

P.S. Off to DesignCon 2012 in Santa Clara to present “Consulting for Geeks”. Watch my blog for follow-on webinars on consulting.

© 2012, https:. All rights reserved.