Last Wednesday Sidel announced that they will be closing the Bradenton facility (it's only US manufacturing plant) in March of 2005. They are sending our product lines to the other facilities including Montreal and France. This means I'll be unemployed no later than June of 2005.

It hasn't been much fun this last week having to tell my employees that they will be jobless in March but it could have been worse. They could have given us a lot less warning. However now I'm in the position of having to help my guys find jobs but also get machines built for the next 5 months.

While I have been considering starting my own firm (custom automation, engineering and consulting) for the last few years I have recently been giving it a lot more thought. So in the upcoming weeks I'll be asking a lot of questions of SBO (small business owners) to get their opinions and advice on a few things.

I'd appreciate any help you could offer in this endeavor.

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Sean Dotson, PE
RND Automation & Engineering
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Speaking from grim experience
I was an employee for just nine years and self-employed for nineteen since.

Pay. Bank on charging between 150% to 200% of what your net wage was, if you don

the biggest productivity killer is site visits to lots of small jobs.
Civil engineers have to build up a relationship with several architects. this starts by doing small nuisance jobs.
I am fortunate to have one big client at the moment . I turned a small job away today.(some guy wanted a report on a crack in his house's floor for the insurance.) You can charge for about a quarter of your time, otherwise the client squeals like hell.
There is unfortunately a big downward pressure on professional fees.

The trick is to be diplomatic and inform the client that what he is paying for is not just one signature, but the fact that the engineer is responsible for the safety of the structure for many years.
they like cutting fees, but when things go wrong they claim in full.

You can survive on cut fees if you work from home, but as soon as you have an office, you need full fees.

You need to start looking right now and start moonlighting. Otherwise you are going to need to finance yourself for 3 months. (the fee lag)

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Frans X LIebenberg
Structural Engineer
Cape Town, South Africa

Yep, you need to start moonlighting now.....You shouldn't have any problem Sean....You have a lot of contacts.

Well let me explain the situation a bit more.

I have worked for Aidlin/GEBO/Sidel for 6 years total. In these 6 years I have steadily seen our custom machine business drop off. Not do to lack of interest but due to our pricing. When I started here were were charging $80/hr. We are now up to $120/hr for a senior designer. Some of my competition is charging $70/hr and making money. Sidel can't compete with that.

We have never had a customer turn us down due to concept. In fact we have had more than a few who have taken our concept and given it to a lower bidder and told them to "build this". It's always the money.

And despite these prices we have a stable of loyal customer who know the people in the design group and who trust them. They pay the extra money because they know they will get a quality machine and good service.

It's these customers whom I believe will LEAP at the chance to purchase a machine from a company who has all the same designers and engineers but at 1/2 the labor cost. I have gotten good feedback from more than a few of them in this regard.

So it's not just me who is going out on my own. There is a group of 4-6 others who would like to join me and form our own company. We have a built in customer base and we think there will be no issues in getting work.

So as you can see it's not as simple as moonlighting currently. This is a big venture...

Does that change your opinions' ?

_________________
Sean Dotson, PE
RND Automation & Engineering
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I've found that the most important "assett" of my buisness is the relationship I have built with my customers over the years. This is one of the "intangible" things that you and your potential partners will be bringing together.

If you are going to form a "partnership" - make sure you define jobs and responisbilities and have enough working capital up front. (Speaking from experience) Nothing is more destructive than working long hard hours while your partners do not - what is worse is when they get paid and you do not.

Plan for the worse and hope for the best!

Yeah, what NickR said.

Make sure you have a leader (I assume you) and don't run by committee.

Looks like you've done your homework now all you have to do is pull the trigger. Sometimes that's all that seperates us from success.

oh, and..
Hurry up and get going so you can afford to hire an overpaid developer.
You'll be too busy wooing clients and making bank deposits for any programming..

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Oh Yeah!

Overpaid developer? Only if he's overworked as well...

Yeah I have a structure in mind. I get 10 votes. The 5 other guys get one each.



That and find a rich uncle or a bank that doesn't require collateral.

_________________
Sean Dotson, PE
RND Automation & Engineering
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Most people who I know, who have been successful....dont look back. On the plus side, to run your own business gives one a great sense of pride, independence and accomplishment.

If you are one, or have an engineering mind, be prepared that much of that will go away and you will have to put your business hat on. This is a lot easier said than done and goes wihtout saying just how many engineers are in fact, businessmen. If you decide that you want to be the top dog, you will have not only caution yourself with dabbling in engineering matters at the expense of running or marketing efforts your business will require. I have heard a number of 30% or more from SBA, of your resources that need to go into marketing alone. This is where many businesses fail. Sometimes one can be so busy that at the end of the day, one easily loses sight of this, costing you down the line.

Looks like the media got wind of it...

http://www.bradenton.com/mld/bradenton/ ... 992799.htm

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Sean Dotson, PE
RND Automation & Engineering
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Sounds like the usual corporate dribble, everyone will be taken care of... lah-dee-dah...
Looks like the infrastructure for finding another job is being put in place. I had a lay-off like that once. Facility went from 4700 to 1200.
3500 people put on the streets. Whew... that was an undertaking of many months, there were so many people in the job market it took me 5 months to find a job.

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Bill Bogan
B2 Design
http://www.b2-design.biz
I'm thinkin' about it....

I have headhunters call me daily asking for people. Problem is I still have machines to be built. While I want them to find jobs I need to fulfill commitments. A tough balance.

_________________
Sean Dotson, PE
RND Automation & Engineering
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While that's true... who's decision was it to close the shop in the first place? So, letting the people go to their next job is really showing appreciation for their loyalty in the past. And if you can't meet the production schedule, it isn't your fault - essentially they sent people packing when they announced the closing.

Years ago I worked for a company called MDT (Medical Dental Technology). The Pres. decided to buy a company in So. Carolina with the idea that the Tualatin mfg site would easily move to the east coast, including the assumption that most of the employees would gladly move. Well, after announcing the transfer he was very fortunate to get three people to agree to going to So. Carolina for up to 3 months to train the people there. The projected cost of purchasing and move was $1.5M, in reality it was well over $5M. That action cost several of us our jobs - he closed the R&E Center when they started hitting the major overrun. The company did not display loyalty to the employees who had worked there for many years. So, why would anyone expect the employees to act any different?

_________________
Bill Bogan
B2 Design
http://www.b2-design.biz
I'm thinkin' about it....

That's not how they'll see it.

_________________
Sean Dotson, PE
RND Automation & Engineering
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Don't know if you have any pull with upper management - but - push for a severance package that the employees cannot refuse. We had a local drug manufacturer close / move one of its divisions - employees were given like 6 months pay to stay on until the end.