I learnt my first hard lesson prior to setting up on my own consultancy in October 1995, when I was offered the chance to purchase an existing firm based on a handshake agreement with a person whom I trusted.  Unfortunately, that trust was misplaced, as, after I obtained written legal and accounting advice to support a loan application, the person reneged on the deal.  I was out of pocket with nothing to show for it.

Lesson learnt

Ensure ALL contractual arrangements are confirmed in writing.

As soon as I commenced my practice, I prepared a simple but effective ISO9001 quality system, as accreditation was necessary to procure government consultancy work.  By January 1996 there was a fully accredited quality system in place that satisfied all requirements with a total of 20 pages (not small print or closely spaced) including all procedures.  That system (updated as required) has been continuously successfully assessed without issue, and remains the same number of pages today, 27 years later. 

Lesson learnt 

Say what you are going to do (QA), and do it without taking a hundred words when 10 will suffice.

Invaluable advice that wise heads provided included firstly ensuring that the consultancy presented a professional appearance in all aspects.  A graphic designer was engaged, who prepared a simple professional suite of outputs including logo, stationery, recommended layouts, colours and fonts.  Only minor changes have been made over the years.

The second involved getting the best consultancy structure in place, but not to rush the process.  I registered a business name and commenced business as a sole trader in October 1995.  By May 1996 it was apparent that a company structure was the best option.  The set up included a unit trust of 120 units to allow maximum flexibility for including future shareholders in varying degrees of ownership if desired.  

Lesson learnt

Pay for good practical legal, accounting and graphic design advice.

Throughout the duration of the practice I have endeavoured to build business relationships with a wide range of contacts.  These include both large and small engineering and other design consultancies, associated service providers, state and local government agencies, professional associations (particularly conferences), businesses and private individuals.  From this network opportunities arise for commissions from clients (including by referral), for collaboration to provide services to our own clients or to offer sub-consultancy assistance to other firms.  These relationships have been enhanced by our reputation for providing an honest, practical and cost-effective approach to problem solving.

Lesson learnt

Always make time to work ON the business, not just in the business. Opportunities that arise based on relationships can be very rewarding.

Finally, become a practitioner of the5W&H (Who, What, Where, When, Why, How) approach to all aspects of engineering. Listen to all personnel involved in a project – even the labourer may have a useful insight to contribute. Be prompt, honest and practical with your advice, and remember the old saying, “There’s more than one way to skin a cat” (apologies to animal lovers)!