How to Start an Engineering Consultancy: A Comprehensive Guide

An Owner

Are you an experienced engineer looking to venture into the world of entrepreneurship? Starting your own engineering consultancy can be a rewarding and challenging path to take. Whether you prefer to be hands-on with the projects or focus on business development and management, there are various approaches to establishing a successful engineering consultancy. In this article, we will delve into the essential steps and considerations for aspiring engineering consultants.

Defining Your Consulting Model

Owner-Operator Model

In the owner-operator model, you act as the sole consultant, directly involved in the project work. This approach allows you to leverage your technical expertise and build a personal brand in the industry. As a consultant through your Limited Company, you have full control over the projects you undertake and the clients you engage with.

Owner-Manager Model

Alternatively, the owner-manager model involves focusing on business development, networking, and securing contracts while hiring staff to carry out the project work. This approach enables you to scale your consultancy by delegating tasks to a team of engineers, allowing you to take on more projects simultaneously.

Building Your Team

Hiring Graduates

When starting out, consider hiring talented engineering graduates whom you can train and mentor. By investing in developing the skills of young professionals, you not only create a skilled workforce for your consultancy but also instill your company values and work ethic from the outset.

Continuing Professional Development

Continuous learning and professional development should be at the core of your consultancy. Encourage your team members to attend industry conferences, pursue further qualifications, and stay up-to-date with the latest technological advancements. This commitment to ongoing improvement will set your consultancy apart in a competitive market.

Developing a Competitive Edge

Specialisation

Identifying a niche or specialization within the engineering field can give your consultancy a competitive edge. Whether it's renewable energy, structural design, or transportation engineering, focusing on a specific area can position your consultancy as experts in that particular field, attracting clients seeking specialized services.

Client Relationship Management

Building strong relationships with your clients is crucial for the success of your consultancy. Listen to their needs, communicate effectively, and deliver high-quality work consistently. Satisfied clients are more likely to provide testimonials, referrals, and repeat business, enhancing your consultancy's reputation in the industry.

Client Acquisition - The Most Important Part

Government Contract portals

Governments around the world have online government contracts portals for businesses or entrepreneurs to search through, find a contract wanting products or services and bid for. To find a country's government contract portal just type into google "*Specific Country Name* government contracts". It is that simple. Then you are going to need to read through hundreds or thousands of contracts, find a few that you think you have a good shot at competing for and then create a bid to send to the specified person to contact by email, then the bidding process begins. Government contracts are open to everyone and anyone who can get the job done so do not feel like they will always pick the huge manufacturer or consultancy that you will be competing with. You have your own skills, knowledge, and advantages as a smaller entity. Some contracts will inspire your entrepreneurial side, and others will be exactly what your normal job description is.

So if you work in a big consultancy and have great experiences or could hire a great team, you could apply for the same government consultancy contracts your large multi-national firm is applying for, compete with them, and even win. Some contracts will inspre your entrepreneurial side, for example, maybe the contract wants some Personal, Protective, Equipment (PPE) delviered at a time and place, lets say you dont have a PPE manufacturing and distribution company. Well, you can be the entrepreneuar that finds a manufacturer and finds a distributor, and be the middle person that utilises their operations to compete for the contract. You will have to offer a price or accept a price that will cover the costs of the manufacturer, distributor and then give you a profit.

Networking

Networking plays a vital role in establishing your consultancy and expanding your client base. Attend industry events, join professional associations, and engage with potential clients to build a robust network of contacts. Word-of-mouth referrals and positive recommendations are valuable assets in the consultancy business. Engineering organisations often prioritise existing relationships over new ones. So if you want to focus on private industry contracts instead, it may be a good idea to immediately start seeding relationships with operations managers that will be looking for products or services to outsource and spend company money on, that you could fulfil for them. There are two options for this route - either you spend decades in industry building these trusted relationships or you get in touch with your entrepreneurial side and partner up with someone that has built these relationships already. Either way, this shows you the importance of networking with people far and wide within your indsutry or beyond it.

Online Presence

In today's digital age, having a strong online presence is essential for reaching a broader audience. Create a professional website showcasing your services, projects, and team members. Utilise social media platforms to share industry insights, engage with followers, and promote your consultancy to a global audience. I advise creating a linkedin business profile for your Private Limited company, creating a mission, and using this as a basis to hire good talent if you need to. Hiring talent can also bring in clients if you hire people with existing connections but be prepared to compensate them if they are both doing the work and client acquistion. Other options include finding a partner through platforms like Linkedin, you may have met these people from engineering events, previous jobs, or simply engaging with their online content and approaching them to discuss a partnership. In those scenarios, be prepared to discuss equity.

Conclusion

Starting your own engineering consultancy requires a strategic approach, a commitment to quality, and a passion for innovation. Whether you choose to be a hands-on consultant or focus on business development, the key to success lies in delivering exceptional service, building strong client relationships, and continuously adapting to industry changes. By following these steps and staying true to your vision, you can establish a thriving consultancy that makes a significant impact in the engineering sector. Lastly, I do not recommend quitting your day-job until youre making money from this as a side hustle first. All businesses need start up capital, and although you won't need much to get this started if you are really entrepreneurial, you always need savings to keep you afloat.

Remember, Rome wasn't built in a day, and neither will your consultancy. It takes dedication, perseverance, and a willingness to learn from both successes and setbacks. Embrace the challenges, celebrate the victories, and always strive for excellence in all that you do.

** Disclaimer: The opinions expressed by the author of this post, on this blog and community are solely his own and do not reflect the views of any past, present, or future employers or any other organisations with which he is associated. The content here is provided for informational purposes only and is not intended as professional advice. **