2 failures, 1 success: My Onramp into the Fastlane

[cmh]

Good evening. I'm an engineer from the Southern US. Like most of you, I had a good chunk of the Unscripted /Fastlane philosophy floating around in my brain even before reading the books, but the books just tied it all together. Like most millennial Americans, I was conditioned early to seek success in institutions, and it's been a lifelong process breaking that habit. The Idiocracy-state of the country has helped.

My first attempt to break free and be my own man was an algorithmic trader I made in 2011. It was a technical success on Intrade, but the founder of the website died on Everest and the website imploded. I could not get the trader to work on the US equities market, and I eventually just had to move on with life. In hindsight an endeavor like this probably needed a bigger team than 1, and it violated the N of CENTS -- I wasn't adding anything to the world, just trying to digitally clip coins essentially.

My second try was making a ballistics app for iOS in 2017. I did this in college for project credit, but also tried to commercialize it. The product was excellent (as an engineer and prior professional shooter I have oodles of domain knowledge). Unfortunately it also violated the N of CENTS -- most shooters just want to blast at some cans and really don't need or care to be all that accurate.

My third try was an onramp from the slow lane where I scored domain knowledge into a fastlane. At this point in life I had a family to take care of, but knew I would want to return to entrepreneurship one day. So while working for the man, I got my PE license (needed to practice engineering on your own), and slowly built my little LLC. When you do work on the side, make yourself known as a business owner, and do great work in a sea of shitbags, you tend to get more 'luck'. That's what happened. I've had to take on some partners in the process, but I am now at the head of a company that grossed low 8 figures last year. I'm really lucky to have the spouse I do -- she's been willing to make do with Spartan conditions while I build my business and investments. I couldn't have done this with the stress of huge debts.

I am remaining monogamous right now to this biz, and jotting down my 'good ideas' for a time when my company requires a bit less of my TLC to make it run just right.

My motto? It pays to be a winner and it sucks to suck.

Thanks in advance for the warm welcome and useful knowledge. Ask away if you have questions.

 

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[DonyaSze]

Welcome!

Wow your story is a good one. Glad to hear you’re kicking butt!

 

[HoneyBadger302]

Great story, and awesome to hear of finding success in your journey!

 

[Deleted137598]

Great story, and awesome to hear of finding success in your journey!

HoneyBadger AffiliateFix?

 

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[cmh]

Thanks for the congrats guys. It definitely took a huge stroke of luck for my third venture to succeed so meteorically. But, as we learned in Unscripted , life is like a gumball machine. I stacked the deck so that I was more likely to get that gold gumball.

I did forget to post my "F*** this experience," so here it is:

While working as an engineer, I started to get a bit comfy. Life was going ok, and I was not building my business very quickly. Then, management changed at my day job, and they were really just awful in all ways: incompetent, greedy, and cliquish. It was so bad that some of my colleagues were actually developing stress-related physical maladies.

So I changed jobs, but after a while I could see that the new company was going absolutely nowhere, and I had nowhere to promote to. I think the owner was just wringing what value he could out of the big project before he shut the doors. I wasn't sure what to do, but the money was nice and I was living a great slowlane existence. To be fair, I had just gotten my PE and my kids were just past the highly intensive toddler stage.

One morning, I was eating with my family at the local greasy spoon breakfast joint. While awaiting my meal, I sipped coffee and read Seniorific, the free old folks' newspaper. In it was an article called "The First 7 Seconds of Retirement." It was this really depressing article about how happy this old guy was on his first day of retirement when he yanked the alarm clock's cord out of the wall. The article was just paragraph after paragraph of regret. Here it is, on his blog:

The first 7 second of retirement

A choice quote:

Never again having to live under the tyranny of a supervisor’s moods. Never again counting to ten before responding to a provocative email. No more heart palpitations as I frantically search my crashing computer for the CYA email that will exonerate me from responsibility for some misbegotten project that has finally exploded into the flaming fiasco it was always destined to be. No more weekends and holidays ruined by a work crisis. Never again staring forlornly out my office window at sultry summer, crisp autumn, snowy winter, and balmy spring days. No more Microsoft Office updates. No more searching for lost files and documents. Never again fearing that the last thing I’ll see in this beautiful world are life-sucking fluorescent lights as I’m gurneyed feet first out of my office.

Due to how I folded the paper, on the back was this picture of diabetic feet with nasty holes in them. It was an ad: "Do you have wounds that will not heal? call us, etc." Is that what I'm working for, 40 years of misery and to be rewarded with holes in my feet? Reading that article, combined with my previous 2 years of slowlane misery, absolutely lit a fire under me. I still have the paper I read that day. I acted rapidly, and within a few months I:

1. Got a remote job with a raise so that I could use the time and stress saved to work on my company
2. Pitched a plausible route to starting the company full-time with my partners and got them engaged
3. Gently forced out a partner who was not committed.
4. Got my website professionally done, and starting quoting a lot of work. A big improbable job hit through a prior work connection, and we were off.

 

[Gadnuk]

The first 7 second of retirement

A choice quote:


Due to how I folded the paper, on the back was this picture of diabetic feet with nasty holes in them. It was an ad: "Do you have wounds that will not heal? call us, etc." Is that what I'm working for, 40 years of misery and to be rewarded with holes in my feet? Reading that article, combined with my previous 2 years of slowlane misery, absolutely lit a fire under me. I still have the paper I read that day.

oh wow, I ve read the article. It really hits

 

[DonyaSze]

Thanks for the congrats guys. It definitely took a huge stroke of luck for my third venture to succeed so meteorically. But, as we learned in Unscripted , life is like a gumball machine. I stacked the deck so that I was more likely to get that gold gumball.

I did forget to post my "F*** this experience," so here it is:

While working as an engineer, I started to get a bit comfy. Life was going ok, and I was not building my business very quickly. Then, management changed at my day job, and they were really just awful in all ways: incompetent, greedy, and cliquish. It was so bad that some of my colleagues were actually developing stress-related physical maladies.

So I changed jobs, but after a while I could see that the new company was going absolutely nowhere, and I had nowhere to promote to. I think the owner was just wringing what value he could out of the big project before he shut the doors. I wasn't sure what to do, but the money was nice and I was living a great slowlane existence. To be fair, I had just gotten my PE and my kids were just past the highly intensive toddler stage.

One morning, I was eating with my family at the local greasy spoon breakfast joint. While awaiting my meal, I sipped coffee and read Seniorific, the free old folks' newspaper. In it was an article called "The First 7 Seconds of Retirement." It was this really depressing article about how happy this old guy was on his first day of retirement when he yanked the alarm clock's cord out of the wall. The article was just paragraph after paragraph of regret. Here it is, on his blog:

The first 7 second of retirement

A choice quote:


Due to how I folded the paper, on the back was this picture of diabetic feet with nasty holes in them. It was an ad: "Do you have wounds that will not heal? call us, etc." Is that what I'm working for, 40 years of misery and to be rewarded with holes in my feet? Reading that article, combined with my previous 2 years of slowlane misery, absolutely lit a fire under me. I still have the paper I read that day. I acted rapidly, and within a few months I:

1. Got a remote job with a raise so that I could use the time and stress saved to work on my company
2. Pitched a plausible route to starting the company full-time with my partners and got them engaged
3. Gently forced out a partner who was not committed.
4. Got my website professionally done, and starting quoting a lot of work. A big improbable job hit through a prior work connection, and we were off.

That is amazing. I love it.

 

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[Andy Black]

@ZCP ... another engineer!

 

[Andy Black]

@cmh

Welcome to the forum.

What advice would you give a student or someone in a job who wants to transition into self-employed or otherwise start a business?

What advice would you give those trying to grow their business?

 

[cmh]

@cmh

Welcome to the forum.

What advice would you give a student or someone in a job who wants to transition into self-employed or otherwise start a business?

What advice would you give those trying to grow their business?

I have to think carefully about this... I'd hate to give sorry advice. I might add to this later.

In General:

1. Be light on your feet and open to change. Just because you got a certain degree doesn't mean you have to do that work forever. Just because you live in a certain place doesn't mean you have to. Think inside the box to understand the box, then once you understand the box, you must think outside the box.
2. I once read that if you put in an extra 10 minutes at the end of every workday just studying your craft, you will quickly rise to the top of your field. This is mostly correct. Most people are just going through the motions. Distinguish yourself by being better. If you won't put in the effort to be the best, you deserve to be an employee.
3. From the perspective of business success, marketing and networking is more important than capabilities. You still have to have capabilities, and build capabilities. It's OK and even preferred to market something that you are still in the process of building.

Specific Actions:

1. If you are a student, pick a field that actually suits self-employment. You don't have to have a perfect plan today, but having a plausible path is important. My path was to get my Mech E degree, get my PE license as quick as possible, then consult and build to bigger jobs. From the time I started as a 26 year old with kids, it was about an 8 year plan. Not the most Fastlane of routes, but I hadn't read the book yet and it was still a more intelligent plan than "work 40 years barely making it, then die."
2. Don't let your job eat up all your time. Don't stress about your job. It's not your company. If your job is eating you alive, or the commute is horrible, get a new one. Remote jobs are really good for budding entrepreneurs. Do a good, solid, fair job for your employer. Build knowledge and contacts. When I left my very last wagie job, the employer sent work with me to my company! Tim Ferris (4-Hour Workweek) is dead-on right about this one.
3. Write down your goals, and logical sub-goals, and just turn it into a checklist. Start checking boxes. (Make sure the boxes actually matter and will lead to your goal). Ultimately, you have to just do the work. Make the website. Make the LLC. Make the sales calls. Make the documents, procedures, etc. Make a Linux server and install open source biz software on it. Build a shop, program the app, find the used production equipment and refurbish it. Etc.
4. I make a CENTS analysis for every biz idea I have. Each letter is scored 0-5 points, for a total max of 25. If it's below 70% I hard pass, if above 80% I get excited. Be honest. You don't want to waste years of your life building something that really doesn't stand much chance.
5. Lower your expenses. Having low expenses and debt gives you the freedom to deploy capital, and take risks. My newest car right now is a 2008 with 200,000 miles. I'm at that point where I'm about to buy a new (gently used) vehicle with cash and have it customized to my liking. That's only because I know I cannot take clients to lunch in a total jalopy.
6. Get good at Microsoft Word, Excel, PowerPoint, and Teams. If you have really nice, clean documents, it will impress your clients. Well-run meetings and calls will impress your clients. Well-made templates will tighten your workflows.

 

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[MJ DeMarco]

Upgraded to NOTABLE for some value bombs.

 

[RightyTighty]

This is good stuff, and I’m impressed. (FYI, I had a small but successful electrical/mechanical engineering firm for 25 years). It’s rare for a new firm to experience such rapid growth unless principals combine and bring business with them. Eight figures gross is strong, and I assume from your post your KPI’s are well within accepted ranges.

If you’re comfortable telling us more: What markets are you practicing engineering in? Are you involved in activities beyond design that allow for leveraging income (design/build, product development, lucrative niche markets, testing, continuing regulatory compliance contracts, other)?

I retired from “regular work” several years ago. As for the first seven seconds, I had been already been indulging in most of those for a few years. Today I’m playing hard at product development and having fun with the young inventors on this forum.

Congratulations on your success!

 

[ZCP]

Good evening. I'm an engineer from the Southern US. Like most of you, I had a good chunk of the Unscripted /Fastlane philosophy floating around in my brain even before reading the books, but the books just tied it all together. Like most millennial Americans, I was conditioned early to seek success in institutions, and it's been a lifelong process breaking that habit. The Idiocracy-state of the country has helped.

My first attempt to break free and be my own man was an algorithmic trader I made in 2011. It was a technical success on Intrade, but the founder of the website died on Everest and the website imploded. I could not get the trader to work on the US equities market, and I eventually just had to move on with life. In hindsight an endeavor like this probably needed a bigger team than 1, and it violated the N of CENTS -- I wasn't adding anything to the world, just trying to digitally clip coins essentially.

My second try was making a ballistics app for iOS in 2017. I did this in college for project credit, but also tried to commercialize it. The product was excellent (as an engineer and prior professional shooter I have oodles of domain knowledge). Unfortunately it also violated the N of CENTS -- most shooters just want to blast at some cans and really don't need or care to be all that accurate.

My third try was an onramp from the slow lane where I scored domain knowledge into a fastlane. At this point in life I had a family to take care of, but knew I would want to return to entrepreneurship one day. So while working for the man, I got my PE license (needed to practice engineering on your own), and slowly built my little LLC. When you do work on the side, make yourself known as a business owner, and do great work in a sea of shitbags, you tend to get more 'luck'. That's what happened. I've had to take on some partners in the process, but I am now at the head of a company that grossed low 8 figures last year. I'm really lucky to have the spouse I do -- she's been willing to make do with Spartan conditions while I build my business and investments. I couldn't have done this with the stress of huge debts.

I am remaining monogamous right now to this biz, and jotting down my 'good ideas' for a time when my company requires a bit less of my TLC to make it run just right.

My motto? It pays to be a winner and it sucks to suck.

Thanks in advance for the warm welcome and useful knowledge. Ask away if you have questions.

awesome! dm me. fellow engineer. let's see if our companies can help each other!

 

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[cmh]

This is good stuff, and I’m impressed. (FYI, I had a small but successful electrical/mechanical engineering firm for 25 years). It’s rare for a new firm to experience such rapid growth unless principals combine and bring business with them. Eight figures gross is strong, and I assume from your post your KPI’s are well within accepted ranges.

If you’re comfortable telling us more: What markets are you practicing engineering in? Are you involved in activities beyond design that allow for leveraging income (design/build, product development, lucrative niche markets, testing, continuing regulatory compliance contracts, other)?

I retired from “regular work” several years ago. As for the first seven seconds, I had been already been indulging in most of those for a few years. Today I’m playing hard at product development and having fun with the young inventors on this forum.

Congratulations on your success!

Thank you sir for the kind words. We had a major stroke of luck without a doubt. The principals all brought work to the table. We are very low 8 figs, will prolly be high 7 this year.

Downstream oil and gas, energy, and then some general industry. Part of the way we are able to make big revenue and profit is through equipment sales. The hourly stuff and field service is our "in" to sell major equipment and get the markup on that. When I say "equipment sales" I mean the front end engineering, then requisitioning and installing the equipment (similar to design/build). Now we are having a lot of refineries sniffing around for us to help them get their absolute mess of paperwork in order. It's good steady engineering work.

I have a question for you: how do you go about getting more engineering work? I use my contacts and LinkedIn, and we do get a lot of repeat business. We have hired a BD guy and go with him to client sites to build up 'accounts'. I'm about to start doing Google Ads as well (thanks @Andy Black !). Any other ideas you have as an experienced guy are very valuable. Thanks!

 

[RightyTighty]

I have a question for you: how do you go about getting more engineering work? I use my contacts and LinkedIn, and we do get a lot of repeat business. We have hired a BD guy and go with him to client sites to build up 'accounts'. I'm about to start doing Google Ads as well (thanks @Andy Black !). Any other ideas you have as an experienced guy are very valuable. Thanks!

O&G.....I loved that hard-charging get-it-done environment! Prior to consulting, I was a Schlumberger Engineer for several years and then a Drilling and Production engineer for one of the Majors for several more (that's where I had my "to hell with this" epiphany). As a consultant, we did a bunch of Architectural work (brrr) and slowly migrated to industrial work. Feed mills, paper mini-mills, chicken/beef processing, wood saw and pellet mills, textiles.....a little bit of everything. I was geographically limited due to my domestic situation, but we hit everything we could reach hard. As you're already in the industrial arena and have a lot of muscle to flex, two ways of growth immediately come to mind:

(My) Rule #1 of Marketing: It's easier to get into new areas with existing relationships than it is with cold calls.
Form informal but close strategic alliances with the players you collaborate with now; select contractors, vendors, and especially the environmental and site/civil firms - they're usually the first ones aware of new projects and expansions. I loved industrial clients for their sophistication priorities; they really appreciate a team that works together for optimal outcome. If you're doing this already, do it harder and with more players. You'll find that there are always opportunities to bring each other to the table.

Reach out to other industries. You're doing this now, but a few thoughts on that. As you are crushing it like a boss in O&G, I'd recommend diversifying slowly and carefully so you don't rock the boat that is carrying the golden goose. Make sure you're attacking O&G sectors that you're not currently involved in. The easiest way to do this is through your current clients and strategic partners. If you've got that covered (or don't care to go there for whatever reason) reach out a little farther. So if you're in petro-chem now, look hard at other chemical process industries. Move incrementally to areas that are similar enough to your knowledge base that will afford a steep but quick learning curve.

I've seen some firms your size do well by establishing a strong brand presence with social media. Hopefully your BD guy is banging it with high-end news letters and social media. On LinkedIn, follow @Andy Black 's example: put emphasis on providing values and not tooting your horn. People that see you there will think of you as the "Value Guys".

Finally, I would definitely recommend some diversification. O&G is a harsh mistress.

I realize there's probably not much here that's new to you, but sometimes hearing it from a different perspective can be useful. Good luck - you will do well!

 

[Andy Black]

On LinkedIn, follow @Andy Black 's example: put emphasis on providing values and not tooting your horn. People that see you there will think of you as the "Value Guys".

Just to clarify, I use LinkedIn like a landing page.

My goal is to create a profile so people who check me out can understand what I'm about. They could have been refered to me, or I've reach out to them for whatever reason and they're checking I'm legit.

I want to be seen as a fellow business owner so try not to post too much (I'm busy right?) and don't try to format posts like content creators or LinkedIn influencers do.

 

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[cmh]

O&G.....I loved that hard-charging get-it-done environment! Prior to consulting, I was a Schlumberger Engineer for several years and then a Drilling and Production engineer for one of the Majors for several more (that's where I had my "to hell with this" epiphany). As a consultant, we did a bunch of Architectural work (brrr) and slowly migrated to industrial work. Feed mills, paper mini-mills, chicken/beef processing, wood saw and pellet mills, textiles.....a little bit of everything. I was geographically limited due to my domestic situation, but we hit everything we could reach hard. As you're already in the industrial arena and have a lot of muscle to flex, two ways of growth immediately come to mind:

(My) Rule #1 of Marketing: It's easier to get into new areas with existing relationships than it is with cold calls.
Form informal but close strategic alliances with the players you collaborate with now; select contractors, vendors, and especially the environmental and site/civil firms - they're usually the first ones aware of new projects and expansions. I loved industrial clients for their sophistication priorities; they really appreciate a team that works together for optimal outcome. If you're doing this already, do it harder and with more players. You'll find that there are always opportunities to bring each other to the table.

Reach out to other industries. You're doing this now, but a few thoughts on that. As you are crushing it like a boss in O&G, I'd recommend diversifying slowly and carefully so you don't rock the boat that is carrying the golden goose. Make sure you're attacking O&G sectors that you're not currently involved in. The easiest way to do this is through your current clients and strategic partners. If you've got that covered (or don't care to go there for whatever reason) reach out a little farther. So if you're in petro-chem now, look hard at other chemical process industries. Move incrementally to areas that are similar enough to your knowledge base that will afford a steep but quick learning curve.

I've seen some firms your size do well by establishing a strong brand presence with social media. Hopefully your BD guy is banging it with high-end news letters and social media. On LinkedIn, follow @Andy Black 's example: put emphasis on providing values and not tooting your horn. People that see you there will think of you as the "Value Guys".

Finally, I would definitely recommend some diversification. O&G is a harsh mistress.

I realize there's probably not much here that's new to you, but sometimes hearing it from a different perspective can be useful. Good luck - you will do well!

Thank you for this, it was a relief to read. We are basically doing exactly this except that our social/email presence isn't great. I guess I'm just getting impatient. We are reaching to many nearby O&G and chemical plants, and getting work to quote. We are teaming with some vendors to quote things that they cannot quote alone. That is brilliant about getting with civil and environmental firms.

Earlier, you said you assume "my KPI's are within acceptable ranges." I'm just going to have to flat out ask and look like a newbie. What should my KPI's be, and what are their acceptable ranges?

 

[RightyTighty]

Earlier, you said you assume "my KPI's are within acceptable ranges." I'm just going to have to flat out ask and look like a newbie. What should my KPI's be, and what are their acceptable ranges?

I was tactfully interjecting an unasked question with my KPI comment. Your tone certainly infers that your firm is doing well, but I was honestly surprised to see everyone on FLF accepting that at face value and congratulating you on gross receipts without questioning expenses, debt, or overall financial health. Per your question, a few KPI’s:

**Disclaimer: I had to look up most of the “industry norms” because I measured my firm by our norms and didn’t compare us to the “average guy”. The lesson here is to challenge yourself to exceed your own expectations.

Net multiplier (net revenue/direct labor cost): This is one of the easiest KPI’s to derive and is usually the most common yardstick. It’s generally accepted that this number should be 2.5 to 3.0. I will tell you that my number was almost always above 4.0 and usually closer to 5.0. The main reason for this was a system of lump sum billing I developed over the years, along with a high-grade stable of clients. One would also surmise from this number that I paid my employees poorly but that’s not the case. I paid my employees well and kept them happy (more on this below), but we were in a desirable, medium-sized town without a lot of alternative options for a consultants skill set. Therefore while I paid well I did not have to pay premium salaries to retain my people.

Utilization Rate (percentage of total hours that are billable): This one should be tracked, but can drive you crazy as workflow varies month to month. The firm’s average number should typically be in the 75-95% range. I never paid much attention to any individual’s number (unless they dipped sharply) because it’s not a good measure of how effective an employee is or of his overall value to the firm.

Project Profit Margin (Profit on projects as a percentage of project revenue): 15-20% is the norm. I usually did a heck of a lot better than this. Besides my greater than normal revenue, I ran an extremely lean operation.

Client Retention Rate (repeat clients): The norm here is 80%. Honestly, that’s probably reasonable. But look at the other 20% carefully. Hopefully you lost them because (1) they’re chasing lower fees (good riddance) or (2) you chose to no longer work with them.

Employee Retention Rate (turnover): This varies a lot by industry and location, but if you’re churning you’ll know it, and the firm will suffer. Salary is important, but fostering flexibility and growth can be more so. Giving your folks the freedom to accommodate their family’s schedule or to come in late occasionally without stress makes them feel valued. And make sure every individual is given a path for growth/advancement; it will cost you if you don’t

Aged Receivables - Your accountant will have to tell you what is “good” for you. If you don’t have any receivables that are 90+ days in this business you are a magician. Hopefully you have a bulldog working this one to keep this number down. One of the things that always pissed me off was that the people who were the most capable of paying were usually the slowest to do so.

Pro tip #1: Consider adding “Deduct 11/2% from bill if paid in 10 days” to your invoices. It’s amazing what that can do for your cash flow.

Pro tip #2: For the assholes who pay in 30 but deduct the 1 1/2%, on all future bills add 3%; attribute it to consumables or whatever. They’ll feel like they’re really sticking it to you when they’re not, and you’ll get paid in 30 days instead of 90-120+. Like my dad used to say, “Somebody’s got to pay for the Maalox.”

Also, one thing no one tracks is HOW GOOD the aged receivables are. If you know they’re worth fighting for you’ll fight harder and longer. The only way to improve this factor is to high grade your clientele; dump the true deadbeats and NEVER allow yourself to chase sunk costs (do additional work for someone who is perpetually slow to pay).

There are definitely more financial KPI’s a firm the size of yours should be tracking religiously. Your accountant can advise.

So you asked for a few numbers and I gave you a sermon. I expect some “TLDR” but that’s okay. Hope this helps.

 

[Jinzou]

I have to think carefully about this... I'd hate to give sorry advice. I might add to this later.

In General:

1. Be light on your feet and open to change. Just because you got a certain degree doesn't mean you have to do that work forever. Just because you live in a certain place doesn't mean you have to. Think inside the box to understand the box, then once you understand the box, you must think outside the box.
2. I once read that if you put in an extra 10 minutes at the end of every workday just studying your craft, you will quickly rise to the top of your field. This is mostly correct. Most people are just going through the motions. Distinguish yourself by being better. If you won't put in the effort to be the best, you deserve to be an employee.
3. From the perspective of business success, marketing and networking is more important than capabilities. You still have to have capabilities, and build capabilities. It's OK and even preferred to market something that you are still in the process of building.

Specific Actions:

1. If you are a student, pick a field that actually suits self-employment. You don't have to have a perfect plan today, but having a plausible path is important. My path was to get my Mech E degree, get my PE license as quick as possible, then consult and build to bigger jobs. From the time I started as a 26 year old with kids, it was about an 8 year plan. Not the most Fastlane of routes, but I hadn't read the book yet and it was still a more intelligent plan than "work 40 years barely making it, then die."
2. Don't let your job eat up all your time. Don't stress about your job. It's not your company. If your job is eating you alive, or the commute is horrible, get a new one. Remote jobs are really good for budding entrepreneurs. Do a good, solid, fair job for your employer. Build knowledge and contacts. When I left my very last wagie job, the employer sent work with me to my company! Tim Ferris (4-Hour Workweek) is dead-on right about this one.
3. Write down your goals, and logical sub-goals, and just turn it into a checklist. Start checking boxes. (Make sure the boxes actually matter and will lead to your goal). Ultimately, you have to just do the work. Make the website. Make the LLC. Make the sales calls. Make the documents, procedures, etc. Make a Linux server and install open source biz software on it. Build a shop, program the app, find the used production equipment and refurbish it. Etc.
4. I make a CENTS analysis for every biz idea I have. Each letter is scored 0-5 points, for a total max of 25. If it's below 70% I hard pass, if above 80% I get excited. Be honest. You don't want to waste years of your life building something that really doesn't stand much chance.
5. Lower your expenses. Having low expenses and debt gives you the freedom to deploy capital, and take risks. My newest car right now is a 2008 with 200,000 miles. I'm at that point where I'm about to buy a new (gently used) vehicle with cash and have it customized to my liking. That's only because I know I cannot take clients to lunch in a total jalopy.

Just read through your posts and got some amazing value out of them. Above all, your advice strengthened my attitude to what I'm currently doing.

I want to thank you for that. And congratulations on everything you have achieved, it's very inspiring to read about your journey. Keep it going.

 

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[cmh]

Net multiplier (net revenue/direct labor cost): This is one of the easiest KPI’s to derive and is usually the most common yardstick. It’s generally accepted that this number should be 2.5 to 3.0. I will tell you that my number was almost always above 4.0 and usually closer to 5.0.

Doing good here, close to 5.

Utilization Rate (percentage of total hours that are billable): This one should be tracked, but can drive you crazy as workflow varies month to month. The firm’s average number should typically be in the 75-95% range. I never paid much attention to any individual’s number (unless they dipped sharply) because it’s not a good measure of how effective an employee is or of his overall value to the firm.

Awful. We are well below this. Some of that is due to partners engaging in "building the business" since we grew quickly, and BD efforts. This is my pain point: we do well on projects, but have too many gaps and slow spots.

Project Profit Margin (Profit on projects as a percentage of project revenue): 15-20% is the norm. I usually did a heck of a lot better than this. Besides my greater than normal revenue, I ran an extremely lean operation.

Solid here.

Don't get me started on these receivables. We just fired a client. I have no desire to work for my money twice -- once doing the work, twice fighting for every penny. They do that with everyone, so I know it's not a legitimate dissatisfaction problem.

We are tracking most of this, but really not 'religiously'. The last year was a total whirlwind, so now is a good time to start steadying the boat. These KPIs can be part of that, along with our current BD strategy. Thank you for the posts.

 

[Andy Black]

Just to clarify, I use LinkedIn like a landing page.

My goal is to create a profile so people who check me out can understand what I'm about. They could have been refered to me, or I've reach out to them for whatever reason and they're checking I'm legit.

I want to be seen as a fellow business owner so try not to post too much (I'm busy right?) and don't try to format posts like content creators or LinkedIn influencers do.

Just adding to this...

Say I have a chat with someone in a business about becoming a service provider and they go up the chain to get approval. It helps them to be able to point to my LinkedIn profile to justify their decision.

"He seemed good on Zoom, but don't take my word for it. Here's his LinkedIn profile. You can see who he worked for, and all his testimonials."

Make it less risky for them to hire you.

 

[ZCP]

just had a great call w/ @cmh . This dude is killing it!!
listen to this man!

 

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[cmh]

just had a great call w/ @cmh . This dude is killing it!!
listen to this man!

Dude, you pumped me up. I feel like I'm ready to sprint through a brick wall right now

 

[ZCP]

Dude, you pumped me up. I feel like I'm ready to sprint through a brick wall right now

let's F*cking crush it! what are your big 3 to get done this week to move the needle?

 

[cmh]

let's F*cking crush it! what are your big 3 to get done this week to move the needle?

I wish only 3. Big 4:

1. Lock down small job we are bidding. Good filler work, builds trust with a smaller local refinery. (DONE)
2. Lock down big job we are bidding that will keep my company's lights on for 2024 (so close...)
3. Start and finish @Andy Black 's class on AdWords. I don't want to be 'the guy' for this forever, as I am spread too thin. But, this satisfies some PD hours and also "get's the ball rolling." That way, I can assess, iterate, and eventually hand the task off. As I discussed with @ZCP , my company saw 10 years of growth in 18 months, and now I'm struggling to get everything else caught up, especially marketing and BD.
4. Email my 2 new contacts, set up meetings, see how I can help them. I don't have to worry about them helping me. In this world of increasing demands and decreasing competence, I just need to earn their trust on a little thing. Then, they need me and I make their team bigger and better.

 

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[Andy Black]

just had a great call w/ @cmh . This dude is killing it!!
listen to this man!

Dude, you pumped me up. I feel like I'm ready to sprint through a brick wall right now

This is what this forum is about! Well done guys.

 

[cmh]

I've had this itch for about 2 years right now to just start driving my truck with no plan, and follow my nose to some clients. I drive all over Texas and pass facilities that I know I could serve, but never have the time or marketing materials ready to just barge in. I figured by just getting out there and giving away some breakfast tacos and a handshake I might meet some friends.

So my BD guy, another engineer, and I got in a car with a loose map of refineries, and just followed our nose. No contacts, no meetings, nothing. Just a twinkle in our eyes and a handful of cheap amphetamines (kidding). We went to 5 sites and just sort of BS'd our way in. It's not unethical or time-wasting, because my company can do excellent work for a really fair price. It's good for them, the public, and me.

Final result out of 5:
1 told us to not come back without an appointment
1 gave us a frosty reception
2 gave us a cordial/enthusiastic reception
1 is poised to award us a small job in the next week or so

I'm happy with it. Next time we'll have a more drilled down plan, and try to plan meetings in advance, but this was nice to just prove the concept. It's such a rush when luck hits and you go from being held in the parking lot by security to backslapping with big project managers in the blink of an eye.

 

[Andy Black]

I've had this itch for about 2 years right now to just start driving my truck with no plan, and follow my nose to some clients. I drive all over Texas and pass facilities that I know I could serve, but never have the time or marketing materials ready to just barge in. I figured by just getting out there and giving away some breakfast tacos and a handshake I might meet some friends.

So my BD guy, another engineer, and I got in a car with a loose map of refineries, and just followed our nose. No contacts, no meetings, nothing. Just a twinkle in our eyes and a handful of cheap amphetamines (kidding). We went to 5 sites and just sort of BS'd our way in. It's not unethical or time-wasting, because my company can do excellent work for a really fair price. It's good for them, the public, and me.

Final result out of 5:
1 told us to not come back without an appointment
1 gave us a frosty reception
2 gave us a cordial/enthusiastic reception
1 is poised to award us a small job in the next week or so

I'm happy with it. Next time we'll have a more drilled down plan, and try to plan meetings in advance, but this was nice to just prove the concept. It's such a rush when luck hits and you go from being held in the parking lot by security to backslapping with big project managers in the blink of an eye.

Reminds me of this:

HOT! - Spend your money on diesel and coffee

"Spend your money on diesel and coffee" (Blaise Brosnan of The Management Resource Institute Wexford) Just getting started? Wondering what to spend your time and money on? Hustle. Build relationships. Make stuff happen. You'll be amazed what happens when you get out of the building...

www.thefastlaneforum.com

 

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