Success Story – Bill Gnan, PE

Time for another success story. This one is about Bill Gnan (PE) who started his engineering consulting firm 16 years ago.

Obviously, he has been a success, and proof that it can be done. Engineers, take note!

Met Bill at an engineering seminar I taught last week. Even in semi-retirement, I remain involved through teaching. At this stage in life, it is most satisfying to share my years of experience, just as I do with JumpToConsulting.

Actually, we first met almost 20 years ago, when Bill worked for a past client. He reminded me of a long forgotten design guide I developed for them, and which he graciously shared with me. Kind of neat that he kept it, and proof that our consulting efforts can live on for years. And a sincere pleasure to reforge an old connection.

Here is Bill’s success story: 

(1) What prompted you to consider consulting? Was there an event, like a layoff, or was it just a general itch to be on your own?

My wife and I were middle managers with significant commutes. We had young children (6 and 4) who were in after school and pre -school care (dropped off at 7:30 and picked up between 5-6PM). It was a struggle.

We were involved with our kids in church, Cub Scouts and youth sports – something was going to break (our marriage or our kids). The pressure of being a middle manager (all responsibility – very little control) were tremendous. One of us needed to have more schedule flexibility.

We decided that as a PE with good reputation in a niche field (facility electrical engineering), I could work from home – that was the genesis of the need to be “on my own”.

(2) How has it been going? Since started sixteen years ago, you are obviously well established in your business.

It has gone very well.

Early on it was about having more time for my family and for leadership roles in volunteer organizations and making similar (a bit less) money to my previous job.

It took 7-8 years (as kids became more independent) for it to be lucrative.

(3) What do you like MOST about consulting?

The schedule freedom.

(4) What do you like LEAST about consulting?

That we are always on the job!

(5) How do you get your clients? (BTW, the number one question I get asked when someone finds out I’m a consultant.) What marketing techniques work best for you?

When I started I was able to keep my employer as a client which was key (in fact they are still a client)!

I had been working so long in our area that I had many contacts and specific expertise in unique niche areas that are subsets of the electrical facilities engineering discipline (theme park, health care, water wastewater) where engineering services are not a commodity.

(6) How do you set your fees? (Second question I get asked.)

I initially charged my former employer a rate slightly higher than my hourly rate (adding my contribution to FICA, and a small amount for overhead), wanted to keep them as a client.

Slowly over time I increased my rates to what the market would bear (even large firms). Determined that I would not attempt to compete on fee/price. Goal was and is to be the very best at what we do.

(7) How did you decide what to consult about? And why? (Third question I get asked.)

Simply offered services for which I had become or was becoming viewed as an expert.

(8) Lessons learned since you started consulting?

Wow – too many to list…

• Don’t compete on price, it is a downward race to the bottom for those who get involved in such a race.
• Set up my practice as something like a country physician’s medical practice, I know, care for and even love my clients, the service is what is important. I make house calls and accept emergency calls in the middle of the night, payment secondary matter – give preliminary advice over the phone.
• Don’t go along with foolishness, we are professionals (like doctors), We must listen to the patient, but the patient doesn’t direct treatment unless I agree.
• Walk away from bad or risky deal. Write proposal carefully (include what you will do, what others will do and what you will not do).

(9) What next? Do you plan to do this the rest of your career (like I did?) Or is this a stepping stone to other things?

Will do it for the rest of my career.

Currently have two other employees who work on large, long term design projects. I plan to scale back to just me doing niche studies/consulting – selectively accepting assignments.

So, within the next 5-10 years, I will look to hand off many of my large projects (6 months – 1 year in schedule duration, 100’s of design drawings) type clients to trusted younger engineers in our area who I am trying to coach into becoming consultants!

(10) Finally, what one piece of advice would you give to our fellow engineers who might be thinking about consulting?

Helps to have some security (dual income/working spouse with benefits, etc) to lessen the pressure to earn money, provide stable cash flow, so that you can make good long term decisions not panicky short term decisions (like acceptably risky or undesirable work or cutting fees to get work).

(Ed. Note – If married, VERY important to have the support of a spouse. Would not have made it without the support I got, for which I am forever grateful! — Daryl) 

Thanks, Bill. It was great to reconnect with an old client who went on to bigger and better things. And glad you were so successful in your JumpToConsulting.

Do you have a success story to share? If so, please send it in…

Here is Bill’s contact information:

Gnan Engineering Services, Inc.
3521 Wild Eagle Run 
Oviedo, FL 32766 
407.971.1861 
www.gnanengineering.com 
info@gnanengineering.com 

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