Print this page Owning and Operating a Small Engineering Company
William N. Weaver, P.E. and John C. Huang, Ph.D., P.E.
Course Outline
The course covers the idea of owning a small engineering company from the selection of a name and logo through the various requirements for employees, contracts and work output. The benefits and effort required by the new owner are laid out in various sections.
Information is presented on insurances and various state and government impacts on operations and permitting. Discussions of working relationships with clients and contract type selection plus development of billing rates is covered. Some guidance is presented on establishing the type of company to be created along with the effects of company growth.
This course includes
a multiple-choice quiz at the end, which is designed to enhance the understanding
of the course materials.
Learning Objective
When completed the following learning objectives should have been achieved:
- A basic understanding of the many aspects of owning and operating a company;
- An understanding that legal requirements vary from state to state;
- An understanding of the importance of creating a company legal structure capable of growing and changing;
- An understanding of the importance of name selection and some pitfalls associated with the choice;
- An understanding of the importance of a logo and some things to avoid;
- An understanding of how the owner’s work changes as the company grows;
- An understanding of the difference between a specialty and a full service engineering company;
- An understanding of the importance of a proper billing rate;
- An understanding of the basics of calculating billing rates;
- A basic understanding of the different types of contracts;
- A basic understanding of the various types of insurances required; and
- A basic understanding of the factors affecting the location of an office for the company.
General Course Information
The course contains a broad introduction to the creation and operation of a small engineering company. The impacts of the various activities required to operate and pitfalls associated with them are discussed.
Points covered include legal, sales and advertising, contracts, insurances and selection of the type of company to be created. Particular emphasis is given to the reasons for creating the company as well as the need to create a structure which can change and grow.
An introduction to billing rates and how they are generated and what must be included for the company to be profitable. The importance of controlled growth and adding employees is explored.
Intended
Audience
The course is directed at engineers considering going out on their own and building their own future their way.
Benefits to Attendee
The intended audience will receive the following benefits from this course material.
- A basic understanding of the pieces required to operate a company
- Some indication of the effort and commitment required to operate the company
- The basic information required to understand the various types of insurance
- An understanding of the types of employees and what support they will need and how they can help expand the company
- A basic understanding of the various relationships required between the company and clients including billing rates and various types of contracts
- An understanding of the selection process for company name and logo
- A brief introduction into sales and advertising
- The necessity of quickly resolving conflicts with clients
Course Introduction
This course material is designed to introduce the engineer to the benefits and activities involved with owning and operating a small engineering company. A brief exposure is provided to the various sales, insurance, licenses, employee relations, billing rates and bid types for work required. Cautions about various pitfalls and the critical nature of planning ahead for company growth and change are included.
Course Content
The course content is in the following PDF files:
Owning and Operating a Small Engineering Company
You need to open or download above documents to study this course.
Course Summary
Completion of this material will provide the engineer with sufficient information to understand the scope of and how to begin the process of establishing his / her own company. Many of the details of owning and operating a company are presented which are normally not seen by employees. Pitfalls and problems are presented along with some ideas as to their solution or avoidance.
Quiz
Once you finish studying the above course content, you need to take a quiz to obtain the PDH credits.
DISCLAIMER: The materials contained in the online course are not intended as a representation or warranty on the part of PDH Center or any other person/organization named herein. The materials are for general information only. They are not a substitute for competent professional advice. Application of this information to a specific project should be reviewed by a registered architect and/or professional engineer/surveyor. Anyone making use of the information set forth herein does so at their own risk and assumes any and all resulting liability arising therefrom.
