Questions about starting my own Automation Company

Be fully aware that you are going to be working MANY, MANY more hours than you could possibly imagine!
Maintaining all aspects of running a small company is VERY time-consuming.
I reckon at least 40% of my time is consumed with Accounting, Taxes, Customer Quoting, Contract Preparation, Inventory etc. etc.

On another note regarding business Insurance. I have experienced a few last minute disappointments where the customer suddenly dumped an Insurance binder to the contract that far exceeded the level of my Insurance and had to cancel as additional Insurance cost was prohibitive or unavailable. This is particularly common with large corporations and especially true of any medical applications.

My 2 Cents
 
Purchashing parts for business

For most jobs I request 35% down, which sometimes covers parts cost. Problem is, I invoice them for the 35%, order parts, receive parts, pay for parts, and I still don't have my 35% payment yet. In that situation right now. Ready to tell my panel guy to stop building. I am expecting the customer to call any day asking when the install is happening.

Yea I had the same problem with parts costs and eventually figured out how to deal with it.

You are NOT going to make much profit on parts as your customer has equal access to their costs and will question every cent you have charged for each component.

I do however charge to build and assemble enclosures to NFPA and NEC standards.

With each quote I provide a complete Bill of Materials including wire and other consumables required for the project and where to buy them. [Building a network of distributor/suppliers is crucial here].

Per the contract the customer is fully responsible for purchasing and shipping them to my business.

This approach has been a Godsend. Once they committ to purchase parts the project is in the bag.
 
Clearly spell out your terms and get to know the person paying the bills, net30 upto net90, collecting money is a pain in the ***, I hate it

It took over 1 year to collect from one company out of Michigan and they are a very large company and I had to take payments

I dont like calling people and having to beg for my money, 11 years later I still hate it
 
You are NOT going to make much profit on parts as your customer has equal access to their costs and will question every cent you have charged for each component.

I've seen in the past and every now and then have to remind people that we need other companies to provide certain services and them, like us, need to turn a profit.

However, when I show an half empty PLC enclosure and a room full of PLC cabinets with empty space and you quote for two additional junction boxes to terminate a fibre cable between these locations, I am going to drill down every single aspect as I don't like being taken for a ride.
 
One of the reasons you should stay away from the word "Engineer"..

Some states, like Arizona, require proof of degree before you can call yourself an "Engineer".
I got nailed on this with a former employer....because my business card said "Field Service Engineer"....where do you get a degree in "Field Service Engineering"?
 
I stand corrected! (I want to apologize) in statement #21 I opened my mouth before I knew what I was talking about.

Arizona, does require a degree before you can use the word engineer, so there is probably other places on this planet that has the same set of rules.

Does not make since to me. Who would you want to do the job? Someone with 40 yrs experience or someone who just graduated with 4 yrs training but now called an engineer??
 
I stand corrected! (I want to apologize) in statement #21 I opened my mouth before I knew what I was talking about.

Arizona, does require a degree before you can use the word engineer, so there is probably other places on this planet that has the same set of rules.

Does not make since to me. Who would you want to do the job? Someone with 40 yrs experience or someone who just graduated with 4 yrs training but now called an engineer??


This is my issue...
Experience...... or piece of paper??

Yes...several countries are like Arizona....Singapore for example.
 
This is my issue...
Experience...... or piece of paper??

Yes...several countries are like Arizona....Singapore for example.

I used to work for a large manufacturing company the had very specific rules to be called an engineer: You had to hold a Professional Engineering license!

No PE Stamp, no engineer title...
 
I charge for parts well above cost.
If they want to buy them - they can but they won't be getting a list from me.
If they want me to order and collect them on their account, they'll be charged for my time.
If any of these parts go faulty - it's me that has to pay for replacements.
Hence the markup.
I found an online wholesaler that gives a great discount - all money in my pocket.
 
First off you don't have to have a degree to be an ENGINEER!

In the English speaking word... yes. Which is ridiculous as an engineer can be anything between a plumber and someone with a university degree in engineering.
The rest of the world, not a chance... engineer is as protected as medical doctor.

Think about it... would it make sense to call a pharmacy assistant a doctor because she's in the same line of work as one that went to University and all the rest for the title?
 
If she's treating patients, and prescribing things, what would you call her?
bare foot doctor!

The joke aside, it's a good reminder that some states in the US take the the engineer title seriously. Just as they do for plumber, electrician, hair dresser, etc... It's about business risk management and doesn't speak to competence.

For example, chiropractor needs to be license in my state. Image that, like getting an endorsement for being a witch doctor.
 
A pharmacy assistant picking pills off the shelf according to a prescription from a proper doctor is not treating patients, it's simply attending a counter.

I think you missed the point on that one. She is probably not writing prescriptions, etc....but......

I have no engineering degree yet I am responsible for complete system design and integration. I do everything from drawing the wiring diagrams, building the panel, PLC, HMI, Motion control, Vision, and Robotics programming, to machining parts and assembling the system. Then I commission and debug, install, and support. No "degreed engineer" has designed the system for me, I do it myself.

That being said, my title is engineering technician, but I feel what I do is the work of an engineer even if I didn't go into debt with student loans and such to learn how to do it.

My 2 cents...
 

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