Doing your own programming.

Just curious, if a person is wanting to go into business for themselves and do programming, panel building etc how does one go about it? I mean from what I have seen this is not really a business that conforms to the brick and mortar style business and the vendors we have used are super busy all the time but never advertise or do anything like that....Just wondering how folks break into this type of work on their own.

Do you know anyone other than your current employer who would be a potential customer? You really need to have a pretty good idea where your gigs are going to come from before making the jump from a steady paycheck to the uncertainty of the marketplace.
In my case I spent a decade as the applications specialist for a distributor where I built up a network of potential customers and demonstrated my capabilities to them.

Adding to that,

you MUST have 6-12 months of funds handy while your business takes off.
You also need business license, liability insurance, accounting software, cad software, plc software and cables, panel view type software, Scada software
in the future.

Big question is, what plc's are you comfortable with programming?
not everyone uses AB as their standard.

try this for an exercise.
look at a control panel and sketch it out.
write down the components.
look up the devices and their space requirements.
look up the devices and see what their foot print is.
How would you mount the components to the backpanel?
how would you punch the push button holes in the box?
ask questions like that.

james

These questions are simply my curiosity..

Whats your end game ie, Why do you want to be self employed (or the USA equivalent).

No holiday or sickness pay, no security etc etc, are obvious downsides.

As a start up you will spend alot of time chasing work and chasing getting paid for work and very long hours generally.

I can't offer advice but I am genuinely interested in your thought process as over here a highly thought of self employed controls guy / fixer, with a bit of luck and a fair wind can literally name his price and have work until he drops dead.

How you get into that position, I couldn't say.

To me the freedom of not having to be at the same place at the same time every day is appealing. I don't mind hard work or long hours, especially knowing I control where I go and how often I work or don't work(when the work is available). Knowing my salary is based on my abilities and not my title or how long I have been employed is very self rewarding.

It's a tough road for sure, but you have to have contacts at the factories and a thriving factories in your area. Our first customer wrote us two hot checks... took a year to get paid. Like others have said if you can survive for a year or two on savings you may not make it. We made flyers and mailed them to every factory we could find... it took a few years but we made it.

JT

alot of our work has come from word of mouth. For the most part, I think people like helping other people... especially when the owner is out and about alot.

I would advise incorporating as an LLC or a Subchapter S corporation. This gives you protection for your personal assets without extra tax liability.

I started out in my basement. You may not need 12 months in the bank, depending on your cash requirements and your spouse's income, if any.

Have a target market in mind. In my case, I had some unique expertise and some recognition in my industry. You can't be all things to all people, so have your prospects in mind before you get started. Be prepared to knock on every door you can think of, and get your references in order.

Profit and loss isn't a problem for most new businesses. Cash flow is the killer. If possible get progress payments - say 25% with the order, 25% on approval of drawings, 35% on shipment, and 15% on completion of commissioning. That may or may not be feasible depending on your target industry, but try for it.

If you are married make sure your spouse understands the risks and problems and is 100% supportive. That will be the biggest factor in success.

If you worry about money and getting work and customers and cash flow and expenditure and the future - you'll never do it.
Most self employed 'technicians' don't have 2 weeks work ahead.
Could you live with that?

Could you live without a regular wage/salary where you don't look at how much you earned this week but how much you earned this year.

As for getting customers, if we knew that definite answer, we'd all be rich men.

I've been self-employed since I wrote an april fools resignation letter in 2011. Last year I averaged 10 billable hours a week. I get by. All word of mouth.

ganutenator said:

Last year I averaged 10 billable hours a week. I get by. All word of mouth.

Click to expand...

10 hours a week? You must be good at charging then

Dirt said:

10 hours a week? You must be good at charging then

Click to expand...

yup, only actually charge for constructive hours.

Your physical location helps considerably. I don't know the demands for controls help in Arkansas, but if you were in one of the rust belt states (MI,OH,PA,IN,IL,W.NY) right now your chances of survival as a self employed contractor would be better. We're still reeling from the 2008 downturn; shortage of skilled help available to satisfy demand.

To add on to this, getting someone just to make a program change would somewhat limit your appeal as usually customers will want at least a panel where the automation devices would be.
So being on good terms with a panel builder would definitely help you with this.

This being said, at least in the UK there's plenty of contract work going around.

Check on insurance first

Before you even start thinking about it, check and see how much good insurance is. When I stopped my business the insurance was out of this world due to then liabilty of injury or death.

If you can find a few medium size companys and keep prices low you can have unlimited work.

Remember.

Setting your own hours is nice but customer hours come first.
Be prepaired for long days ( 29 hours straight was my record)
Lots of unbillable hours
Software costs are very high.
If you don't have the money for hardware let the customer buy it on there account, you get no markup but bills get paid.
( this can be a cost saving incentive trick to get a job)
Don't use your retirement money to start up.
Do not get a second morgage or put your house up for a loan.
Do pay ALL your house bills first before the business.
DO get your spouses buy in 200 percent.