When Mary (my bride of 40+ years) came into my office, she looked sad.

“Whats wrong?” I asked.

“Upon opening a Christmas card,” she replied, ” I just learned that an old high school friend died suddenly this past year. The one we meant to visit. ”

Her friend lived in Las Vegas, and for the past several years we had talked about making a trip to see her and some other friends. After all, Las Vegas is only a few hours away, and people from Phoenix go there all the time. Now it was too late.

I was reminded of my own  procrastination when a cousin passed away twenty years ago. Diagnosed with cancer, he was home from the hospital and doing better.

When I called his home, I got the answering machine. Rather than leave a message, I thought “I’ll call again in a few days.” But he took a sudden turn for the worse, and died the next day.

This was not meant to be morbid or sad, but rather to serve as a reminder.

Don’t wait too long… to visit a friend, to hug your kids (or grandkids), or to start that new consulting practice.

© 2012, https:. All rights reserved.

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.

Just finished reading this book. A great resource for anyone (including consultants and wannabe consultants) seeking financial freedom along with occupational freedom. This is the latest book by Dr. Thomas Stanley, author of the bestsellers The Millionaire Next Door and The Millionaire Mind.

Unlike too many financial guides with their special formulas on getting rich, Dr. Stanley’s book shows HOW others have already done it. For the past 20+ years, he has conducted extensive research on the lifestyles and behaviors of the affluent. As an engineer, I love it — don’t just give me a theory — show me the data!

His results are revealing. As it turns out, most high net worth individuals are not who you think they are. Surprisingly, your plumber or hardware store owner driving the beat up pickup truck may well be a multimillionaire — while your doctor in the McMansion with the Mercedes, (or even your corporate boss) may be worth a lot less.

The difference is in what Stanley calls balance-sheet affluence (BA) versus income-statement affluence (IA). It turns out that many who earn high incomes squander their wealth in high consumption (or as he calls it, hyperconsumption.) As a result, they fail to convert their high earnings into wealth.

• Among the worst offenders — doctors, attorneys, and mid-level managers. With their high incomes and high status jobs comes an expectation of high consumption. They often live beyond their means, with big houses, fancy cars, expensive suits,  gourmet food and wines, and more.

• Among the best wealth builders — business owners (including independent consultants),  engineers (yea my fellow geeks), and college professors. Although by no means poor, many of these folks practice frugal living, living below their means and investing the difference. One day they wake up wealthy — and not from winning the lottery.

Stanley’s arbitrary criteria for affluence is a million dollars in net worth (assets minus liabilities). He likes to exclude non-investment real estate, since as we have seen in the past few years this  represents illusionary wealth that can quickly evaporate.

The real question, of course, is how long can you live off your assets and their passive earnings? With proper management, a million dollars in assets can last a LONG time…

So what does this have to do with consulting?

• First, you don’t need a million dollars to start a consulting business. You do need, however, to have your finances under control. That means minimal debt combined with a frugal mind set. A modest mortgage is OK, but big car payments and lots of credit card debt are NOT OK.

• Second, if you are not in a solid financial condition, I suggest fixing your financial problems prior to making a JumpToConsulting. And when you do make the jump, you’re not likely to get rich right away, but done right you can make a decent living and untimately create your own financial independence.

• Third, once you do make the jump, keep the frugal mind set. Don’t put your money into a fancy car or office to impress clients. Rather, put your time and money into building your business through diligent sales, marketing, and delivery of services. Continue to live below your means.

• Fourth, as soon as you can, set up a Keogh or other retirement plan, and treat it as a necessary business expense. If you set aside 25% of your W-2 income every year, it forces you to live on 80% of the full income (plus that 25% is tax deferred) As Stanley points out, the 80% method is a great way to build wealth in a relatively painless way.

For those of you who love stats and examples, here are just a few:

• Only about 3.5 % of the US population has a net worth of over a million dollars. This translates to about 3.5 million households.

• Only about 0.1% of the US population has a net worth of over ten million dollars. And only a tiny fraction of those are sport stars or celebrities. According to Stanley, you are more likely to catch malaria in the US that to have a net worth over ten million dollars.

• Most true millionaires (not the pretenders) live in houses that cost under $400,000, drive Toyotas or Hondas, wear Timex or Seiko watches, and have never paid more than $400 for a suit. So much for emulating the lifestyle of the rich and famous.

Finally, why did I include this in a blog on consulting?

Because Uncle Daryl Wants You — To Be Free. Starting and building your own consulting practice is one way to do this, and I wanted to share my experiences and advice here. There are a multitude of other ways, but virtually all of them share a common theme of managing your finances wisely to create your wealth.

And in case you are wondering — yes, my wife and I are financially independent. That was not the case when I started my consulting practice 30+ years ago, but thanks to working hard,  a successful practice, and frugally living beneath our means, we made it. You can too!

Stop Acting Rich… and Start Living Like a Real Millionaire
Thomas J. Stanley, Ph.D.. — Wiley — 2009
ISBN 978-0-470-48225-1

Web Site: http://www.thomasjstanley.com/

PS – Interested in more of this? Check out Mr. Money Mustache, a blog I just discovered on financial independence by a fellow geeky engineer who retired eight years ago at age 30.  Married, with a kid no less, so it can be done by a family — not just single persons.

© 2012, https:. All rights reserved.

Life is way to short and goes by way too fast.

Or, as Bob Parson, the founder GoDaddy says, “We’re not here for a long time, we’re here for a good time!” ” See Rule 16.

Good advice from a very successful businessman (twice over) who also enjoys life!

© 2012, https:. All rights reserved.

Teaching can be a great lead generator. It is how I got started in consulting over thirty years ago, and it continues to a nice source of business and income today. Here are five good reasons to consider teaching.

1 – You can begin right away. You don’t need to do extensive marketing or build a customer base. Just check your local university, junior college, or adult education program. Many are begging for consultants (or potential consultants) to share their real world experience, and would love to add you to their catalogs.

2 – Gives you immediate credibility and visibility. Teaching a class implies you know what you are doing, and that you have been vetted by the teaching organization. Of course, you do need to deliver, but if you have the right experience, you are already on the right track.

3 – You can make a few bucks. You won’t get rich teaching, but you can make this marketing method pay for itself, and help support your other marketing efforts.

4 – Develops your presentation skills. This is a very important skill for consultants, and there is nothing like practice to improve those skills. (With over 200 classes under my belt, I’m still learning…)

5 – Showcases your knowledge and experience to potential clients. No, don’t do a hard sell, but if they need more help, you’ll be among the first they will ask. After all, presumably you have already helped them through your teaching.

This marketing method is ideal for potential or part time consultants. Teaching a class presents a very low threat to your employer, and even enhances your value. Along with skills and experience, you’ll be seen as someone with initiative to improve both yourself and your students.

Teaching is how it all began for me. My business partner was already teaching an adult evening class at a local vo-tech (vocational technical school), and recruited me to teach a class. These were introductory electronics classes, so as electrical engineers we were pretty well qualified.  The real challenge was to keep it simple.

Even so, at first  I wasn’t sure. I’d never taught, but it sounded interesting. Besides, the school was in a bit of a panic, as the instructor for my class had to back out at the last minute due to health problems. So I jumped in, and have never regretted it.

The teaching assignment led to several interesting projects, which only served to whet our appetites for consulting. For several years, the school was our primary client.  And yes, we got paid for these extracurricular projects.

• Our first project was to clean up the adult electronics curriculum for the vo-tech. The classes were disjointed, and they wanted to make them more cohesive. We identified several new classes to fill in the gaps, and even recruited engineering colleagues to teach them. Both the school and our colleagues were delighted.

• A big project emerged to develop a two year program on printed circuit board design.  Unknown to us, the school had received a state grant, and needed someone to do the technical work. It turned out to be a lot of work, but the grant was generous enough that we made a very nice  profit on the project.

• Another interesting project was to develop a seminar on how to select a business computer. This was when the IBM PC first arrived, and the local business community was hungry for unbiased advice. The school wanted to do a semester class, but we suggested a three hour seminar instead. This was quite successful, and gave us or first experience with focused seminars.

• The classes started to generated external consulting. Our first independent project was helping  select a computer system for a local medical society. The clients had attended our computer  seminar. Other similar projects followed.

As a bonus, the teaching experience gave us the confidence and the skills to offer our own seminars and workshops some years later as full time consultants. These eventually became a significant part of our income. (We have now trained over 10,000 students in our technical specialty, greatly enhancing our client base.) But without the early teaching, we might not have done it.

So where do you start? Check out your local adult education programs (colleges, junior colleges, libraries, etc.)  They make it simple for you, as they provide the venue and do all the marketing.  They may have prepared classes they want taught, such as introductory accounting, business law, web design, computer programming, etc. They may also have some elementary training for new instructors.

Another option is for-profit training companies. These companies often use contract instructors to deliver their materials. Most are also open to new classes if you are ready to develop your own materials. Keep in mind, thought, that this can turn into a lot more work than expected. Nevertheless, if you have a topic you feel strongly about, this can be a good option.

Can you do this? Yes, if you have the interest and experience. I had a speech class in college and hated it, but when I started teaching basic electronics, I was amazed at how easy and fun it was.  The latter is important — there is no thrill quite like seeing the “light go on” when a student “gets it.”

Finally, keep it simple. Stick to the basics. You are not trying to impress your peers — rather, you are trying to convey introductory information. If your students want more advanced information,  they may eventually turn into clients. But if not, you’ll still have the satisfaction of helping someone learn more about your subject.

In closing, consider teaching as a potential stepping stone to your own JumpToConsulting.

P.S. – What about your own seminars/workshops/webinars? Another variation on teaching, but much more work up front. As such, generally not recommended until you are establisehd.  We’ll cover those in more detail in a  future post.

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

To be avoided at all costs! Your credibility and reputation depend on avoiding even the hint of a conflict of interest.

Your primary responsibility is to your client. Period. No ifs — ands — or buts. Keep your mouth shut about their business, and protect their proprietary information. If something just doesn’t feel right, then don’t do it. This includes even simple things like using client office supplies, or worse, padding time or travel expenses.

What about Nondisclosure (NDA) Agreements? We regularly sign standard NDAs, and treat clients who don’t request them as if they have one. By standard agreements, we mean those that simply limit disclosures of proprietary information for a limited amount of time (typically 1-3 years.) Data already known or in the public domain is excluded.

If you don’t like the terms, modify them. Don’t make this a confrontation — just be professional. But do have everything in order before you proceed with your efforts

What about Non-Compete Agreements? We do NOT sign them. If we only agreed to work for one computer company, one medical company, etc… we’d soon be out of business. We also do not sign patent terms, agreeing to give up patent rights, etc. Sometimes a lawyer may try to include those terms, but we simply cross them out before signing any agreement.

Most of our consultations are short term. The non-compete/patent issues might be appropriate for a long term contract. If faced with this issue, have your lawyer review any contract first. He or she will probably include some reasonable limitations.

• We’ve never lost business over these administrative issues. Once had a case, however, where a small company lawyer was pushing hard for a non-compete. He insinuated perhaps I had something to hide. My comment to the engineering manager – “Well, if your lawyer is so smart, perhaps he can fix your problem.” Incidentally, I got the job after the young hot-shot was overruled.

What about part-time consulting? This adds extra concerns. In addition to client issues, you should avoid consulting for your company’s customers, competitors, or suppliers. You also need to avoid using your company’s resources or working on company time.

An acid test for part time consulting is to ask yourself, “What would I feel if confronted by the president of my company?” If you can honestly say it is none of the company’s business what you do with my your free time, you are on a solid ethical footing.

If you have singed an employment contract that prohibits outside activities, however, you may be stuck. Unfortunately, many companies today (large and small) think they own you 24/7. You may want to review any agreements with your lawyer. Nevertheless, any outside consulting may jeopardize your full time job, regardless of the legal status. So tread carefully.

One final piece of part-time advice.  Keep a low profile with your outside activities. Office politics and petty jealousies can and do cause problems. We’ve seen it happen — enough said.

The bottom line — be ethical! Trust and reputation are fragile. The test is simple — if your actions might embarrass you with your client (or your mother), then don’t do it!

© 2012, https:. All rights reserved.

Been a while since I did a resource review. For this month, I’ve selected the Happiness Project by Gretchen Rubin. It seems appropriate, since happiness (as in job/career satisfaction )is a common goal for those making a JumpToConsulting.

Recently picked this book up at the Omaha airport (Go Huskers…) Although vaguely aware of the book and her accompanying blog, I’d never read her materials. What a pleasant surprise! And a bit inspiring too, as it got me off the dime regarding what I wanted to focus on next.

A successful writer with a loving family, Gretchen was already reasonably happy. But one day (while riding a bus) she had an epiphany summarized as “The days are long, but the years are short.” Was life passing her by, and was she enjoying the journey as much of it as she could?

So, she initiated the Happiness Project, a year long effort which she documented in a blog and later as a book. To avoid being overwhelmed, she picked twelve topics and focused on one topic per month. Certainly better than making twelve New Year’s Resolutions and giving up by mid-February.

She measured and recorded her progress, using Benjamin Franklin’s methods as a model. Equally important, she supplemented her personal experiments with in-depth research. This ranged from modern psychology to the wisdom of the ancients.

The result — a delightful and thought provoking journey of self discovery, with a range of  ideas we can all put into place as applicable. Two that resonated with me were “Do what you TRULY like, not what you think you should like,” and “Be Yourself.”

Both good advice if/when you make your own JumpToConsulting.

The Happiness Project, by Gretchen Rubin
Harper, 2009
ISBN-10: 0061583251
ISBN-13: 978-0061583254
www.happiness-project.com

PS – Gretchen just released a sequel titled Happier at Home. Haven’t read it yet but plan to soon.

© 2012, https:. All rights reserved.

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.

When you finally make client contact (marketing becomes sales), you often need simple stuff you can hand out or mail – business cards, brochures, folders, letterhead, envelopes, labels, etc.

Since these create first impressions of your business, they should be an integral part of your sales and marketing process.

These items are often referred to as sales collateral. Some people include web content, pricing and data sheets, white papers, and more in this definition. In this post, we’ll focus on the simple printed materials.

Before we get specific, here are some general comments:

• Keep it simple. Like a doctor or lawyer, you are trying to present yourself as a professional.  One exception — if you are in a highly creative business, you may want to showcase your creativity. Otherwise, simpler is safer.

• But don’t skimp on quality. This is NOT the place to cut corners. Go with high quality paper stock with a fine finish, such as textured or matte. Just make sure the printing looks good on it. (I prefer a light colored stock to plain white.)

• Coordinate the look and feel. This applies to both printed and electronic marketing materials. You want consistency among the colors, fonts, and logos (if applicable). Subtle, but this is all part of your branding process.

• Put contact information everywhere! One of my biggest pet peeves is having to hunt for contact information. This is particularly true with web sites, but I’ve also had to hunt on printed brochures and even letterheads. In the latter case, I suggest full contact info on the bottom of the page — address, phone number, and web site.

Here are some suggestions based on what we have done:

1. Business Cards – Don’t be cute — use a standard size in a suitably heavy stock. You don’t want your card to feel flimsy, and you want to make it easy for people to file or scan. Although increasingly popular, I prefer NOT to use a picture on the card (but definitely put that in your brochures.)

We settled on a  light gray linen finish with two print colors — dark gray and dark blue, with a simple dark blue logo. Although the second color adds a small cost, we felt it conveys a more professional image.

2. Letterhead/envelopes – Should match your business card, although the paper stock may be lighter. We use 20#  stock which feeds well with most printers and copiers. We also use a matching letterhead for electronic communication, which we usually send as PDF files.

3. Brochures – Should also match your business card and letterhead. As a minimum, I feel you should have a simple three fold brochure that fits in a standard envelope. Yes, many argue this is not necessary with web sites, but there are times when a printed brochure makes sense.

Keep the content simple. Include a BRIEF background with a professional photograph. The photo can be black and white, but you will also want matching color copies for article biographies, press releases, etc.

The rest of the brochure should be simple too. Use bullet points to summarize capabilities, and include a short testimonial or two if available. Regarding clients — get permission FIRST if you use their names. Incidentally, we do NOT use client names to protect confidentiality. Instead, we include a list of typical past projects.

In addition to a general brochure, we also developed a special brochure describing our training classes. We also developed a special mini-brochure with some tables of technical information.  Dubbed UBI (Useful Bits of Information), we find our engineering colleagues often keep these for years – long after throwing out cards and brochures.

Of course, ALL of these brochures should have full contact information on both sides, as people often photocopy them. Always make it easy for potential clients to contact you!

4. Other – These can include mail labels, presentation folders, etc. Once again, these should match your other printed collateral. As an aside, we rarely use presentation folders any more, but when you want to make an impression, they are very useful. We printed a couple hundred with our name/logo for a nominal amount, and they have lasted us for years.

Some final thoughts. You may want to engage a graphics designer for help. We did, and got good advice on colors, fonts, and even a simple logo. It was money well spent.

We also use a small commercial printer. Nothing wrong with the large print chains, but we’ve found the extra service invaluable. They have also referred us to other vendors as needed – mail houses, etc. In fact, our graphics designer was on their staff.

So what is the cost of all of this? Depending on quantities, you should be able to outfit yourself for $500-$2000 depending on quantities and amount of graphics design.

Remember, “You never get a second chance to make a first impression.”

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

Not really… Who says you need to grow to be successful? Children grow, but then they stop growing (physically) when they are “grown up.”

The question was posed by a fellow business owner in the mid 1990’s. Thanks to new government regulations, our business was booming. Our plates were filled, and other consultants were actually asking us to hire them. The boom times were here!

But it was obvious that boom times would not last. Eventually, the rush would be over and business would return to previous levels. Which is exactly what happened a few years later.

Still, it was an opportune time to consider growth, so my business partner and I discussed it. (Over beer, of course.) If we grew, what other opportunities should we pursue? Who might we hire? How big should we grow?

But then we asked the more fundamental question — do we even want to do this?

Eventually, we decided NOT to grow. Both of us enjoyed working with clients on their technical problems and opportunities. Neither of us really relished managing others, and letting them have all the technical fun. Which is probably why others wanted us to hire them — they didn’t want to manage either, or to drum up the business themselves.

To get us through the big bulge in business, we subcontracted for a couple of years. This allowed us to stay involved with clients while serving their needs. But even that was less than satisfactory at times. To be blunt, subcontractors (or even employees) don’t always have the same motivation as owners, and clients often prefer working with the principals.

The result — we remained a small boutique consulting firm. Could we have made more money by growing? Perhaps — or perhaps not. But I’m pretty sure it would not have been nearly as much fun for us.

Incidentally, we’re not alone on this issue. Over the years, other colleagues have reached the same conclusion. One even grew his firm to over 40 employees, and then later shrunk it back to a sole practice. More fun, less stress.

On the other hand, if you truly want to grow, go for it. Just make sure growth is what you REALLY want. As the old saying goes — Be careful what you wish for — you might get it.

One final thought — the focus here is on physical growth,  not intellectual growth. Without the latter, you will soon be out of business!

P.S. – What about the business owner who chided us for not growing? Went bankrupt a few years later. Nuff said.

© 2012 – 2020, https:. All rights reserved.

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.

Today this Baby Boomer declares he is OFFICIALLY SEMI-RETIRED…

For the past several years, I’ve been grappling with my occupational status. Thanks to the recession, consulting activities have been less than full time, meaning I had more free time. Discovered I rather enjoyed that.

But when people assumed I was retired, I’d correct them. Guess I wasn’t ready to join the ranks of the old geezers. However, a  couple of recent events changed my thinking.

The first event was a college reunion last week. About fifty of us lived in a housing co-op that was a “poor man’s fraternity.” We had two old houses that might even be classified today as slums. We were definitely at the bottom of the social strata, but who cared? (Think Animal House...)

Most of us were poor but ambitious, and willing to work hard. But we played hard, too, and had a great time. We drank a lot of beer, and pulled off our share of stunts. We bonded, and formed life long friendships.

A few years ago, we started holding annual reunions. This time, about 25 showed up for the weekend. While many were retired, nobody was sitting around in a rocking chair. Everyone was enjoying a wide range of activities. Most confessed they were busy as ever.

We also toasted those who were no longer with us, including John of green shirt fame. Several months ago, John was planning to finally join us this year, but cancer won. A sad reminder of our mortality, and a bit of a wake up call.

The second event was reading the Happiness Project by Gretchen Rubin. Her book describes her research and personal experiments on finding happiness. It was a year long journey of self-discovery that she documented and shared.

She had numerous key points and suggestions, but two that resonated were “Do what you TRULY like, not what you think you should like,” and simply “Be Yourself.” I decided it was time to do both. The consulting biz has been fun, but it is no longer a top priority.

This declaration is strangely liberating, and even a bit exciting. To me, this represents a critical shift. My priority will no longer be on earning my living as a consultant, but rather on other activities such as grandchildren, travel, and the JumpToConsulting project (and activities it may spawn.)

In simple terms, here is a thought that summarizes my new direction:

I care more about making a difference than simply making a living.

You are welcome to ride along, regardless of your age or retirement status. We’re all on this life journey together!

P.S. So how does this affect my consulting business? Not much, really. I’ll still stay involved with the practice, but on a secondary basis to other  pursuits.  Won’t be actively pursuing new clients, but will still take care of existing clients as time permits. Will also be active in our training activities.

Furthermore, my business partner is NOT retired, so I’ll back him up as needed.

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

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.

Need some immediate exposure? Is your market primarily local? Do you serve a niche market that is tightly focused? Big trade shows – local or otherwise – too expensive?

All good reasons to start your OWN local mini-trade show.

We did this in 1986, just prior to launching our engineering consulting business. Like most startups, we did not have much cash and we needed to gain exposure. We needed to make a splash — FAST — to let people know we were in business.

So, we cooked up the First Annual Minnesota EMC Event, realizing there might not be a second one. It made the splash we wanted, and all these years later, the show is still going strong. In fact, the show has outlived several much larger trade shows in the Minnesota market.

And, it was easier than you might think.

• First, we checked with a local with a local hotel, and they quoted us $300 for a room for a late afternoon/evening (4-7 PM) meeting. But get this — the room was FREE is we bought $300 worth of food. It was amazing how much food you could get for $300 in 1986!

• Next, we invited five local vendors to join us, which now reduced our share of the hotel cost to only $50. We also leveraged all of our local contacts. We then printed flyers, and mailed them out to members of our local professional organization, adding another $100 or so in costs. (Today you could use email.)

• The result? Over 100 people showed up for our glorified cocktail party. And we now had a bunch of fresh leads, plus several vendors who would recommend us.

• As an aside, we did not provide alcohol. No moral issue — rather it kept costs down and limited our liability against somebody imbibing too much.

We considered the show such a success that we did it again the following year. Only this time we joined forces with a local test lab (one of the original vendors), and turned it into a full day show, complete with speakers and about 20 vendor exhibits. With over 200 people this time, we dubbed it an even bigger success.

By the way, 100 or 200 people at a trade show may not sound like much compared to the big shows, but the attendees were very focused on our engineering niche. The vendors agreed — one even landed a multi-million dollar contract as a result of the second show.  Needless to say, they became one of our most ardent supporters.

The show continued over the years. In addition to the local visibility, it also enhanced our national visibility as our vendors recommended us to their larger markets. I should add many vendors became our friends.  We always look always look forward to seeing them at our local show, along with larger national symposiums.

We no longer run the show, but we actively support it.  Several local firms with administrative staffs now cover the very important detail work to make it a success.

But it all started with about $150 our of our pocket, and a little bit of work!

One final comment — we did not do this to make money, but rather to simply market our practice.  Although we charged the vendors a modest amount (attendees were free), our goal was simply to break even.  In recent years, a modest attendee fee was added to cover some of the costs. Had we become greedy and tried to “monetize” the show in a big way , I’m not sure it would still be around.

So, if you need a jump start for a local market, consider starting your own local mini-trade show. Keep it simple — keep it inexpensive — and keep it fun.

P.S. Click here for info on the latest Minnesota EMC Event.

© 2012 – 2016, https:. All rights reserved.

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.

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.

Warning — Geek Story Ahead! My brother Jim is a retired civil engineer. When we get together, we often share war stories. This one has a good lesson for consultants.

“It was Friday afternoon, and it was time to head into town for a cold beer and hot meal,” Jim began. He was working on a new power plant out on the North Dakota plains. It was hot and dusty, and that cold beer sounded great.

“Time for one final pass around the construction site. Hmmm — that hole they dug today for new building footings just didn’t look right.” The cold beer called, but Jim decided he better check this out. Good thing he did, too.

During his college years, Jim had worked summers with the county surveyor’s office.  As such, he was pretty handy with a transit. So he decided to confirm a few measurements.

Sure enough, the hole was in the wrong place — by about 50 feet! And the schedule called for pouring concrete that weekend. So, rather than enjoying that frosty brew, Jim shut down the project.

As he explained, “Catching this mistake more than paid my salary for my entire career with my company. Had they filled those footings with concrete, the cost to fix that mistake would have been many millions of dollars.”

The following week, the hole was “moved” to its proper location, and the project proceeded on schedule.

The lesson for consultants is this – if something doesn’t look right, it probably isn’t. As a consultant, you are paid for your professional judgment. So follow your hunches, which are often the result of years of professional experience.

The cold beer can wait!

© 2012, https:. All rights reserved.

“Behind every successful man is a woman who is still amazed.” Or so the old joke goes. In reality, success as an entrepreneur is often highly dependent on a supporting spouse. If you don’t have that support, it may never happen.

This post was inspired by a Mother’s Day e-mail from Perry Marshall of AdWords fame. Perry tells how his wife Laura continually supported him — through thick and thin — in his many entrepreneurial adventures. What a great tribute!

Similar story here. More than once,  my co-conspirator Mary (see the story on the goofy hat) gave me the nudge I needed. That support and confidence made all the difference.

To wit:

–1978- Frustrated in my engineering position, I saw an ad for a sales engineer. Even though I’d never done sales, I ranted and raved that I could probably do the job. Finally, Mary piped up and said, “Why don’t you just send in your resume, and see what happens?”

• She was right, of course. Incidentally, I didn’t get the job, but eventually I did get into technical  sales. (Persistence pays.) That experience was a great help later when making my own JumpToConsulting.

-1982- Fired from the technology startup I had helped get off the ground, I ranted and raved about working for others. Having moonlighted in the past, I floated the idea of hanging out my shingle. Mary said, “Why don’t you try it and see what happens?”

• Once again, she was right. (Did I mention she also saw the writing on the wall at the startup several months prior to my firing?) I promised not to gamble the house, so I gave myself three months to book business or it was back to Corporate Land. It didn’t work, but eventually I did make the final JumpToConsulting. (Once again, persistence pays,)

-1987- Two corporate jobs later, I was REALLY itching to do my own thing. It looked like my corporate sales job might disappear, so I started making alternate plans. More ranting and raving, and more support from Mary —“Why don’t you try it and see what happens?”

• Success this time! But, the first day in business the stock market crashed, which was very SCARY. But we survived, and we’re now closing in on almost 30 years as full time consulting engineers. Behind the scenes, Mary kept the books and ran my office. (And as a bonus, I get to sleep with the bookkeeper – she just groans when I say that.)

Along the way, Mary also found time to mother two boys into successful young men, who now have their own families and who blessed us with six wonderful grandchildren.

So thanks, Mary!  With all my love and gratitude,

Daryl

P.S. Happy Mother’s Day to all of you who support your entrepreneurs… and all who are entrepreneurs in your own right!

© 2012 – 2016, https:. All rights reserved.

Chris Guillebeau’s latest book (The $100 Startup) contains a wealth of information for anybody considering the jump to ANY small business (not just consulting.) It is a mix of inspiration and real-world examples backed up with proven business advice.

This is Chris’s second book. The first, the Art of Nonconformity, encourages people to follow their passions and live their lives with gusto. But it is not just talk — Chris actually lives that way.  In addition to starting several successful businesses along with a very successful blog, he is but a few countries from personally visiting EVERY country in the world. All this at under 35 years old!

The $100 Startup, however, is not about Chris nor his latest adventures, but is based on real business research. This book details 50 case studies on successful micro-businesses started from modest investments (many under $100.) The case studies were derived from a survey Chris conducted of over 1500 people who, like Chris, have built businesses earning $50,000 year or more. (Yes, some were even consultants.)

In addition to the success stories, the book is loaded with useful charts, checklists, and other tools to help you start your own business. All practical nuts and bolts stuff. The stories or tools alone would make the book worthwhile, but couple those with his insights and advice, and you have a winner.

Two thumbs up! (Enjoyed is so much, I actually read it through twice.)

The $100 Startup, by Chris Guillebeau
Crown Business, 2012  (Available May 8, 2012)
ISBN 978-0-307-95132-6
book website: 100startup.com
blog website: chrisguillebeau.com/3×5/

P.S. – Chris  does address consulting in his book, and even includes an Instant Consultant Biz template (pages 43-44), which is also available for download.

© 2012, https:. All rights reserved.

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.