| Is your engineering firm meeting its goals in this | | | | experience which determines how much the company |
| recession? Do you have more business or less? | | | | can expect to profit. This is established by quantifying |
| When do you expect the economy to recover? If | | | | the amount of services and products to be sold minus |
| your company is like many other engineering | | | | the expenses. It is one of the business owner's primary |
| companies, you were caught off guard at the | | | | responsibilities to work on the business through the |
| beginning of the recession. Are you sure that the | | | | process of reviewing and updating the business plan. |
| current and expected market changes are reflected in | | | | A detailed description of the engineering firm's direction |
| your business plan? These are all questions that need | | | | and purpose is found in the business plan. Without a |
| to be answered in your business plan; your company's | | | | plan the company can and often will wonder aimlessly, |
| business road map. | | | | and may eventually fail. A slowing economy can be |
| Without a doubt most business owners know that | | | | very damaging to poorly structured companies |
| they need to have an up-to-date business plan. All that | | | | whether they are large or small. These companies are |
| is required of any business owner to keep the plan | | | | usually not in a position to handle the changing market |
| current is the time to review, analyze, and update the | | | | conditions, and end up closing their doors. The stronger |
| plan, which can be difficult. So if you have not already, | | | | companies are usually better managed with an |
| now is the time to review your plan and periodically | | | | operations plan in place to handle the ups and downs |
| make modifications. | | | | of the economy or the changing target market |
| In a prolong recession a proficiently ran business is | | | | conditions. Companies following good business plans |
| more important than ever. Professional engineers are | | | | whether small or large tend to survive a recession, and |
| extremely knowledgeable about their career, but are | | | | are set to expand during the economy's recovery |
| rarely the experts in operating their company's. An | | | | period. |
| engineer will have spent 8 to 10 years in college and | | | | There are many resources on the subject of writing a |
| post graduate training before being licensed as a | | | | business plan, including websites, computer software |
| Professional Engineer without ever taken one class in | | | | and books. Unfortunately most of these sources |
| business. | | | | address the generic business such as retail or service |
| When the projection of incoming revenues slow or | | | | businesses. Engineering is unlike any other professional |
| stop coming in the door your first reaction is to find | | | | service business or any type of business. |
| more clients from the same source and second to cut | | | | A very good resource is the United States Small |
| costs by downsizing. This may not be the right | | | | Business Administration website According to the |
| business steps to take. Usually the better action is to | | | | website, the minimal requirements for a business plan |
| re-examine each of your markets and clients in those | | | | are as follows: |
| markets, and to determine if those markets change in | | | | |
| direction is temporary or long term, and then to careful | | | | 1. Description of the business: What is the structure of |
| review your company's services and products. | | | | the business, and what are the services and products |
| Operating any business should be a constant review | | | | it provides? |
| of the process of that business, and whether it is | | | | 2. Marketing: What are the potential clients and how will |
| operating at its best. Mistakes in the operation of the | | | | the business communicate with them? |
| business during the good times are easy to | | | | 3. Finances: What are the expected revenues sources |
| compensate, but during the not so good times the | | | | and what are the expenses? Also what are the |
| same mistakes can close the business. A careful | | | | potential profits and losses? |
| review may also show that your company is relying | | | | 4. Management: Who are the key personnel and who |
| on one market to heavily and may need to diversify | | | | is responsible for the various functions of the |
| into other markets. | | | | company? The best way to get through the recession |
| The kitchen table sketch may have been the | | | | is to have a plan. Now is the time to review your |
| beginnings of an engineering business plan, but as the | | | | business plan, and, if necessary, revise some or all of |
| company continues to operate and grow, the business | | | | the sections. Write out the strategies that will improve |
| plan needs to be formalized and updated periodically. | | | | all four areas of your business. Next implement those |
| The engineering business plan is nothing more than an | | | | strategies, and monitor their daily, weekly, monthly, and |
| outline, summarizing how the company will operate to | | | | quarterly results. If the results are not meeting your |
| be a successful business. Within the plan there are | | | | standards, then make adjustments. |
| estimates based on industry research and personal | | | | |