I'm considering going out on my own as a solo operator. I love surveying, but I don't love working under a company where surveying is a support role for other activities. I essentially have been doing all my own field work, project management, etc. My employer just supplies a phone number for the public to reach me (yeah I know there's more to it than that.) Point is, I decided I really don't need them to do what I love.
I've read the other posts on this site and got some good ideas, but at this point I'm just looking for big-picture type stuff. I know there's a million things to consider, but my main questions are these:
How much work do you need to pull in? I know that's a generic question with many qualifiers, but in general, I know what I want my take-home pay to be. How do I relate that to the amount of contracts? I know what I bill out at now at my present employer, and it's about 5 times what my hourly take-home rate figures out to be.
Second, how much money is needed to start up? The equipment costs (if everything was bought new) I'm guessing would total around $100k. I would be needing a GNSS rover/base, and maybe a robotic. (The surveying around here is about 80% gps) Now I realize there are leasing options or maybe used equipment, but how much does it take?
I know I must sound like a real naive dummy who doesn't know what he's getting in to (and I guess I am, and I don't) but at this early point I'm just considering it and trying to figure out if it's even feasible.
Thanks for any advice!
As much as I hate to suggest this, visit the "other board", and do a search for Tall Guard. I posted alot of information over there while I was planning my solo company.
I would lease your equipment. Hayes Instruments has a great "Worry Free Lease", where you can turn it in if something happens.
Work out of your house if at all possible. I bought a small building and put it in my backyard, and turned it into a nice office. Working out of the house was not an option, space wise.
Start buying the small stuff now. A prism and pole here, a handful of pocket tapes there, a tripod. You get the idea.
Line up clients now. Network, network, network.
August will be 5 years on my own. It has been a wild ride. I would do it over again, but I would do some things differently.
Best of luck
If you maintain the same billing rates as at the large company, but do all of the work yourself, you need about 16 hours a week to have the same income. Work out of your home - it is so much easier than commuting to an office. You don't need a large investment to start; you can wing it with rent-as-needed or highly used equipment for the first few survey projects, then when you are confident you can lease or purchase. If you are experienced and efficient you will be able to do the work much faster than your previous survey crews and drafters.
You do need to think about insurance, like health, life, disability, liability, and equipment. Don't skimp on that, even though it will mostly be money down the drain until you need it.
I have never, not for one second, regretted going solo. It was the perfect match for me.
> I'm considering going out on my own as a solo operator. I love surveying, but I don't love working under a company where surveying is a support role for other activities. I essentially have been doing all my own field work, project management, etc. My employer just supplies a phone number for the public to reach me (yeah I know there's more to it than that.) Point is, I decided I really don't need them to do what I love.
>
> I've read the other posts on this site and got some good ideas, but at this point I'm just looking for big-picture type stuff. I know there's a million things to consider, but my main questions are these:
>
> How much work do you need to pull in? I know that's a generic question with many qualifiers, but in general, I know what I want my take-home pay to be. How do I relate that to the amount of contracts? I know what I bill out at now at my present employer, and it's about 5 times what my hourly take-home rate figures out to be.
>
> Second, how much money is needed to start up? The equipment costs (if everything was bought new) I'm guessing would total around $100k. I would be needing a GNSS rover/base, and maybe a robotic. (The surveying around here is about 80% gps) Now I realize there are leasing options or maybe used equipment, but how much does it take?
>
> I know I must sound like a real naive dummy who doesn't know what he's getting in to (and I guess I am, and I don't) but at this early point I'm just considering it and trying to figure out if it's even feasible.
>
> Thanks for any advice!
If you're going solo all the math doesn't matter. You really can't anticipate what's going to happen. I started 10 years ago part time but if I had to do it over again I would have started the business 10 years earlier. Your best asset is you love surveying, if you love what you do that's 75% of it. What I would do or should have done: buy all your stuff USED, not new. You can get used ashtech and trimble gps stuff dirt cheap (don't worry if it isn't rtk, ppk is fine). The same goes for robotics...dirt cheap. Work out of your house to start. The longer you are in business the more work will come in, surveying takes time to establish. After 10 years I think I'm established but it was slow going the first five years. Lastly don't, DO NOT market your business on price. Don't ever make the comment "I can do it cheaper". If you market price you'll get a reputation as the cheap guy and you'll end up with all the cheapskates and headaches. You price your business this way, how long will the job take me and what is my hourly rate and your hourly rate is your costs + your salary.
Sound advice from both posters.
Bruce and I emailed back and forth quite a bit when I was planning my business. He has a very successful business model. I followed his advice, along with several others, and I jumped in.
One thing that I must say, is that you MUST have the support of your spouse. It will be long hours trying to get things up and running, and there will be periods when you may not have a regular paycheck. Your weekly paychecks will now be 30-45 days out on some jobs, sometimes longer.
Plan, and you will be okay.
I took the leap 15 years ago and I should have done it 10 years sooner. My biggest obstacle was I didn’t know how to run a business. The surveying is the easiest part of the business. Under capitalization is the biggest reason small businesses fail. I would recommend having at least 6 months living expenses put away when you start. Anyone who has made the leap will tell you it’s a 24/7 proposition. You are never not a work. You will need a good accountant/bookkeeper. If you’re not familiar with how to set up the books find someone to help you. Decide if you want to be a sole proprietor or incorporate. There are advantages and disadvantages to both.
Working out of your house has it’s draw backs. Remember it’s a 24/7 deal. You may want to leave the office behind sometimes. Although surveyors these days don’t need drafting tables we do have to produce plots of our work products. If you don’t have a resource capable of providing printing services in a timely fashion do you have room for a plotter? Another drawback to a home office is client meetings. Depending on your client list in can be awkward to have meetings at the local Starbucks, especially with new clients. You don’t get a second chance to make a first impression.
Having said all that, If you’re determined, dedicated and have boundless energy, go for it.
Good luck
I never went out on my own. In some of my employment I was able to run things as if it was my own company. Other times I have been a part owner and have made that work out. Some of my employees have gone into business for themselves and some have made it and some have failed. Interesting thing is that just because they were a "good surveyor" didn't mean they were a good businessman/businesswoman. Success requires a good business sense. You can get that by education and preparation or you are just a natural. Figure that out for you first. If you need preparation and/or education, get that first so you can be successful.
Just because others have made it does not mean you will. Just because you are a good surveyor doesn't mean you will make it. Just because others have failed, does not mean you will. I think you get the picture. If your wife has a good job and can bring home the bacon sometimes, that seems to work well for many. Jimmy has solid advice to get real buy-in from her.
You might ask what skills you will need for this effort besides surveying. You may get some good ideas from the surveyors here. You already have the idea that it will be hard work. Good luch on what you decide.
I count my blessings every day, including my solo business. My wife counts her blessings every day, including being the bookkeeper so she doesn't have to teach anymore. Smartest thing we ever did together, after getting married.
Business plan, robot, good surveying program that produces real AutoCAD files, QuickBooks Pro (setup by your accountant), insurance, a few good clients to start,
a good meeting place, a good looking survey vehicle (you don't want to look like a "ham and egger"), GPS, and advertising.
Some things you will want to have ready when its time to hang the shingle.
Never leave a job unfinished if you can complete it today. You never know what will come in tommorow and its very easy to get backed up. This is where the long hours come in. The big thing for a new surveyor is a quick turnaround.
Go for it and never look back.
I went solo 4 yrs. ago and haven't looked back. I invested in equipment for 2-3 yrs. prior so all I needed was an instrument when I started. I used a total station and bipods for half a summer to see if the work was going to be there. Stepped up to a used Leica 1105 robot for around $5000 for the rest of that summer and now a VRS system, both of which have made life easier on me. I work out an office in my home. You can have meetings with clients on site or at their place of business. Get professional and general liability insurance right from the start. You dont have to start with $1m coverages, but get something. Most subcontracting work will dictate the coverage amounts. Google adwords and a free web page that quotes can be requested on generate work almost instantly. Don't low ball yourself out, you won't make it doing lot surveys for $250.
BTW - I can't imagine sleeping at night with a $100K loan and buying all the equipment before starting out. If the work is there, you can buy the equipment straight out or have a much bigger down payment for the financing.
Cash flow: So you land a huge job, great. Getting the job done will take time, and you may not see a paycheck for weeks. Be prepared. Fill in small jobs with big jobs if possible. Keep the cash coming in. Imagine your income on a graph. Right now it probably looks like the topography in Florida; steady and flatlined. Your about to move to the Rockies.
Unbillable hours: This is one area I was in the complete dark about. Far too many hours each day can be consumed returning calls, upgrading software, filling out insurance forms, etc etc.
Watch out for sharks: As a new start-up, there may be contractors, etc that will try to take advantage of you. Maybe they have a huge bill at the survey company down the street. You will be eager to get work, but be careful.
It's been 16 years for me. Would I do it again? You bet. But it has not been a bed of roses. Just ask my wife.
Wow, thanks everyone for the very helpful replies. I was not expecting such encouraging comments. As I suspected, the actual survey work is the easiest part, and failure will likely come as a result of bad business practices.
I am not afraid of all the work and long hours. The big sticking point for me is the lack of income I will have when starting up. I'm living paycheck to paycheck as the saying goes, and like everyone else, I have a ton of bills already.
The way I imagine this going in my mind is like this:
ME: Ok, I'm open for business - come on in!
PUBLIC:
ME: Oh boy, 3 months later and I got paid for my first job - $800. Crap, I have meanwhile racked up $4000 in debt.
In my current job, I get maybe 20% of the bids I put out, mainly because our rates are substantially higher than everyone else in town. All the time I'm thinking I could easily do this job by myself for half the money and have plenty left over. But that's the trick I guess is getting the calls coming in.
Again, thanks for all the advice. It is greatly appreciated.
Watch out for sharks: As a new start-up, there may be contractors, etc that will try to take advantage of you. Maybe they have a huge bill at the survey company down the street. You will be eager to get work, but be careful.
:good:
> Never leave a job unfinished if you can complete it today. You never know what will come in tommorow and its very easy to get backed up. This is where the long hours come in. The big thing for a new surveyor is a quick turnaround.
No doubt... I was beat to death yesterday, and I just wanted to leave that job, but I only had one more set up to close and about 30 pavement shots... I pushed myself to do it, got 'er done and thankfully I did. It's raining this morning and I calculate my project without having to try to finagle an umbrella or some other rig to finish that last set up.
Try to clean up that debt before or it will be very tough the first few years.
>
> In my current job, I get maybe 20% of the bids I put out, mainly because our rates are substantially higher than everyone else in town. All the time I'm thinking I could easily do this job by myself for half the money and have plenty left over. But that's the trick I guess is getting the calls coming in.
>
> Again, thanks for all the advice. It is greatly appreciated.
If you start getting much more than 20% of what you bid, you're prices are probably too low. Just because you're solo doesn't mean you should be the cheapest. If you get every job you bid you'll be far greater trouble than if you only got 20%.
Ralph
I think you are going to be successful, but because you are smart, you are going to wait while getting ready to go into business for yourself. That will be a lot easier for you than some of the surveyors here who were laid off and had to go out on their own without the luxury of getting ready like you now have.
Clean up debt and get some savings.
Take some accounting and marketing courses.
Take some business courses.
Take an active part in Chapter Surveying Organization to learn more about leadership.
I think you are headed in the right direction.
I went solo a couple of months ago. Even though I work just a little harder it is nice to know that I and I alone benefit from that extra hard work. An added bonus is I get all the credit too, whether for the good or the bad. I always hated when I would do all the work for a company and someone else above me got all the credit for my hard work and expertise when all they did is field phone calls all day. I do things the way I want to do them and I don't have anyone but the client looking over my shoulder. That's the way I've always thought it should be once you reach professional status.
Things are moving a little slower than I would like at the moment, but it is the best decision I ever made concerning my career path. Good luck.
Young Buck
I would agree. There was some excellent advice. I seem to remember there being some advice involving cow manure.
> The big sticking point for me is the lack of income I will have when starting up. I'm living paycheck to paycheck as the saying goes, and like everyone else, I have a ton of bills already.
>
Some great suggestions from others already. I would recommend that you first address the 'living paycheck to paycheck' issue. If it is in fact actually waiting on payday to get bills paid just by the due date, that will only be more stressful when you either are waiting on an invoice that is reaching the 30 day due date or are waiting on a client to commit and provide the percent down to start the job.
Work on getting a good 6 months of operating expenses saved before hand or find a part time job that can help while you are getting started. If you are waiting on a project to come through and are dipping into the savings to pay a business loan, personal loans, and everyday bills, the money can go very quickly.
Keep in mind that a huge chunk of what you bill out is not actually what you get to keep. There is a big cost to doing business - supplies, insurance, equipment, advertising, taxes, etc... Make sure you keep on top of these things by NOT using every dollar that comes in as if it was 'personal income'. Keep detailed records separating business and personal expenses.
Depending on what type of work you anticipate, I would look at immediate equipment needs, including office equipment/software. If you can reasonably work without it, put it on the wish list for when you have a good income stream going on.
It can be very worthwhile and financially better for some people in some cases. It is a trade off of types of reward and types of stress.
Good luck.
