Question for business owners/managers

[The Dude]

I’m going to cut to the chase and then do some explaining so that a lot of you won’t have to read my whole post. I’m looking for a combination of answers and advice on a new career which, regrettably, I have to call “consulting”, even though I consider it to be much beyond that (I usually refer to “professional services”, not sure if that’s better). This is targeted to business owners and those managers capable of making decisions, or being able to influence, the hiring of outside services.

I also want to clarify that I’m not considering this any type of advertisement as (of yet), I am not a sponsor on PM. As such, I’m not giving out business name, website, location (okay, that’s in my profile I think), etc. I would ask that you PM me if you are interested in more specifics about that. I’m also getting ready to go on vacation for about 5 days so I likely won’t be able to respond until Oct 4th or 5th.
My basic questions (feel free to answer any/all) are:

1. Under what circumstances have you hired, considered hiring, or would consider hiring (please clarify that in your answer) a consultant, engineer, or other type of professional service? I’m not referring to “typically non- optional” services such as financial or legal, but more “optional” type of services (e.g. marketing, programming, etc.). I already know that many of you would reply “over my dead body”, so please resist the urge to reply as such.
2. If someone that you really trusted said “I’ve got/know this guy”, and he really know how to make a process efficient/make your business more profitable/improve service, quality and delivery, etc. (something that perks your interest), would you ask for contact info and potentially contact that person? Regardless of whether your business was currently profitable?
3. If you have (or might) search for someone that performs services in my arena (which I’ll explain), what would you look for?
4. If you do read through the material below, I’d appreciate any suggestions on what specific types of services you think I could “package” that business would be interested in.
5. If I put together a “mailer” (email or postal), of my services, would that potentially prompt you to contact me? I do know the low success rates of these types of advertising.

If you’re okay answering some of these, I’d like you to read the rest of what I wrote to help you frame your answers. I recently left (mostly mutual decision) my engineering manager position in a small (family owned) business to go “all in” on my new gig, which is self-employment. I was already doing this on the side and formerly was a consultant in the MEP system for over 13 years (mostly doing lean manufacturing). Previous to that I was handling major process/machinery projects for a large OEM. (BSME degree, practice as a mfg engineer). I am marketing myself as a labor/materials/equipment/information flow specialist. For over 30 years, I have done a ton of custom machinery, process, special database, etc. etc. etc. projects. My motto is “turn problems into profits” but I may have to rewrite that as it’s often more “opportunities”. I’ve had past clients tell me “That was the last place we ever thought we had a problem” (after I successfully changed their process). On my website, there are two past clients that admit, looking back, they likely wouldn’t have remained in business if they hadn’t worked with me. For most of my work, I retain long relationships as their confidence grows in me. The best way to describe my work is “manufacturing engineer on steroids”. My target customers are manufacturing and services companies, those that don’t have engineers (at least mfg), need a special process and are typically private/family owned.
So, if you haven’t figured it out, my biggest problem is that potential customers don’t even really know to look for me. I am in early stages yet on my website, blogs, SEO, etc. so I expect that to improve but I am still certain that what I ultimately need to do is get in front of people. I do think that, eventually, word-of-mouth will become my best advertising but I still have to get things going before then. Thankfully, I have one customer that is keeping me a bit more than just “afloat” but that’s quite dangerous to rely on that.
Here’s some other things I’d like you to consider in your responses or that may just help you understand better what I’m offering:

• I don’t want this to become a discussion of my capabilities and qualifications. This is more about advertising and your response to it. I’d kindly ask that you assume my qualifications and experience is suitable for what I offer. I certainly have sufficient testimonials/referrals to back that up to anyone that needed more info.
• Here’s how companies benefit from my work: they are more profitable (often by lowering costs but also increased capacity = increase sales), improvements to quality/cost/delivery (without necessarily doing “lean” work), employees are happier and more involved (if you want them to be)), your business is more valuable, information systems improve (better utilization), etc. The owners and managers have more time to focus on things they should be doing and also sleep better at night (I often ask, “What keeps you up at night?”).
• My work is generally suited more for OEM’s (the custom process stuff) but, especially on the information side, is quite effective for job shops as well (e.g. implementing a standard or custom ERP system).
• While I am extremely capable in lean manufacturing, I prefer that not be my usual service. I did primarily that in the MEP system and, unfortunately, too many companies either have the “wont’ work here syndrome” (sorry, but you’re wrong!) or don’t really have what it takes to do implement it. Ultimately, I want to develop a new system that’s easier to adopt for small companies (something that I’m just casually working on at the moment) which, when I launch, will get me in serious trouble with a lot of lean consultants out there.
I really do appreciate any honest feedback. One thing I’ll throw in, is that if you have a business-related question, I’ll be happy to take that but preferably on a PM.

Thanks for any answers/opinions/feedback!
The Dude

 

[michiganbuck]

Here is what you are (may be )talking about...Bought the stock for around $9 and now around $34.plus over 2% dividend or a 8% div from my original price..
A business improvement outfit that has a track record.. that is what you need because anyone can write a spheel that sounds like the cat's meow..


Enterprise Software Solutions: ERP, MRP, Lean Manufacturing | QAD Business Software | Investor Relations

Here is the track record
Cloud ERP Specialized for Manufacturing | QAD

Thinking that the ability not enough .. You may need a formal/fancy plan written out so the executive types can see the value and with a plan put it into play....as they are often running the companies..
I don't think much of QAD's web site but they have a following..

 

[Econdron]

No offense, but the services you offer are often looked down upon. Many people have hired people like you and had terrible experiences and wasted a lot of money. I personally would never hire a consultant to come in and tell me to change my business UNLESS a friend strongly recommended them to me. I'm sure you've had some very happy customers, but how many of the "other" customers do you have, who feel as though they just wasted a ton of time and money with your services?

Honesty though, I would love it if someone could come in to my shop, analyze my process, put a couple new processes to the test, then give me a detailed report showing what my estimated efficiency is, and some options for different improvements, and the estimated efficiency improvements along with them, but I think the only one who could do something like that in my shop is me, because no one knows my shop like I do, and someone coming in and analyzing my company for a few weeks isn't going to do much good. Guess I better start consulting myself!

 

[AA+]

I have consulted for years, even having a representative to get me some of my jobs. Other jobs I came by word-of-mouth. Most consulting was in Minneapolis, MN even though I live 150 miles north in Superior, WI. I mostly consulted in physics, electronics, or science-related field, PhD in physics. I had my own electronics shop and own machine shop. I did not hire as a machinist, but instead used the shop as part of my value-added service.

I felt I was effective in consulting in three ways:

(a) I communicated that I knew what a deadline was. I worked hard to beat that deadline. I had no competition in this, because all other consultants got their jobs done after the deadline.

(b) Most clients were initially worried that they would pay large fees for little apparent progress. So I gave them a quick outlet, as, I would work for a short time, show them my progress, then they would have sufficient idea of success to continue or terminate the project.

(c) I communicated that I would get the job done.

I met another consultant that I respected that only bid by fixed-price job, but I always worked by time and materials. I felt that way I could deliver my most quality product.

For me consulting had times of plenty and times of scarcity, both lasting quite a while.

Best wishes for your business --- Allen

 

[michiganbuck]

We had a few such come to the big shop..The bigger I think was Statistical Process Control. We spent some big bucks on that and it was soon forgotten.

I believe that I could cut tooling costs perhaps 10 to 15% (perhaps more) in a mainly cast iron heavy machining, or steel. iron and aluminum machining shop.. Getting some one to have any confidences in me would be a task.

 

[adama]

My experiance with consultants is a mixed bag, its not a easy job to get people to change how and what they do. Equally way too many come in with very much a fixed game plan, not a heres some new tricks and this is what it could result in - has resulted in else were.

It generally seams to work best with second generation business owners, these are who you want to marketing too, there generally more open to new ideas and approaches than the people that got things going. They often want too take things up a notch and in a bit of a different direction and need some guidance on ways to go. You will find these types of people at the local business groups - clubs, typically sub 40's age range looking for - shareing ideas and contacts Lots oftern get together monthly for a buis related talk or similar, Get into thoes as a guest speaker and you will soon pick up some work.

Other way in is local accountants, make friends with them and get them to recommend you to there clients they think your skill set could benefit.

Its way easier to work as a drug counsellor at a drop in center than it is to try and work as one in a crack den, you need to find the people - potential customers that realise they have a issue they need help with than the ones that have not even realised they have a issue. hence go the places they go!

 

[plastikdreams]

They hired one where I work...they changed the schedule around and now there's 200 pissed off workers and 2 unionizing attempts in 6 months lol.

 

[garyhlucas]

I've been ripped off by a business consultant and it was sad. Sad because he actually had the skills and knowledge to help us, but was so focused on scamming us that he was useless.

I've done some consulting work because I had various people ask me to do it. When I've been asked the results have been very good. I currently work in a job where I watch the owner make every mistake I have ever made but won't take a single bit of advice because of his ego. We are going 90 and accelerating but the concrete wall has really hardened. I may be looking for a new job real soon. Too bad because I really enjoy what I do.

I currently have a consulting job through my employer. Seven years ago my previous employer hired me out to a manufacturer to help them fix a plant they built. They took none of my advice and the plant never worked. The plant owner though is finally desparate enough to listen. So I have a contract to do the stuff I recommended 7 years ago. I've been doing the work incrementally and demonstrating success they have never seen before, and spending little money, so they are happy.

I see your problem as simply that you need to be really good at sales, and that effort is going to take a really huge chunk of your time. Also I have found that customers like to cherry pick your advice. You make a recommendation that you KNOW solves 90% of their problems and they choose to execute 20% of it getting 10% of the results, and justifying whey they didn't do the rest. I found that very unsatisfying so I gave up the consulting unless the customer was actually desperate.

 

[countryboy1966]

Hey The Dude,

I'm writing this not stire up anything, but to show a side of people you will encounter that think like me.

1.) Consultation is only as good as the management support to enact change. If management thinks they are going to fix their behaviors as a means to improve through onboarding a consultant, short term gain, long term losses... imo.

2.) If someone was so good at optimizing manufacturing, why in the heck are they not entrenched in the business leading the pack where the real $ is?

I do respect and understand where you are going, but thought I'd share the first two things that come to mind.

 

[awake]

Okay, here is a wild idea - I can't decide if I'm half serious, or this is completely out to lunch, but I'll throw it out there anyway:

Sell it to one of the cable channels as a reality show.

Why not? There are fixer-uppers who fix up houses as a reality show; bridal dress outlets that sell dresses as a reality show; restaurant turnarounds - reality show; and on and on it goes. Thus far, I don't recall seeing or hearing about a manufacturing consultant reality show ... so the market is wide open.

 

[countryboy1966]

Okay, here is a wild idea - I can't decide if I'm half serious, or this is completely out to lunch, but I'll throw it out there anyway:

Sell it to one of the cable channels as a reality show.

Why not? There are fixer-uppers who fix up houses as a reality show; bridal dress outlets that sell dresses as a reality show; restaurant turnarounds - reality show; and on and on it goes. Thus far, I don't recall seeing or hearing about a manufacturing consultant reality show ... so the market is wide open.

We constantly throw this around as an idea. No TV producer could make up the shit we all see in the shop right?!

 

[michiganbuck]

Had a friend now retired who was a insurance consultant and made a good living at that...

 

[The Dude]

Thanks guys, I only had some time to glance through these as I'm headed out on vacation tomorrow. Not surprised to see some of the responses about the "C" word. There are some companies out there who have not done anyone offering honest services any favors (I won't name any names but I've seen rants about them and my former employer almost got sucked down that drain). Couple of clarifications real quick:

1. I am pretty good at sales. It's the opportunity to get in front of someone (i.e. more the marketing) that I need and that's at the root of the question (because you have to have that opportunity before you can really even sell yourself). If you look at my questions, they basically boil down to, "How do I get the opportunity to talk to you?".
2. Having said that, I also don't waste my time on hard sales. I abide (as I am "The Dude", you know) by Sandler Sales principles which basically say, "Don't waste your time on trying to influence people to finally say 'yes'". You give your spiel and maybe a follow-up, that's it. Don't waste your time. That's a very quick summary but it's always served me well.
3. Where I distinguish myself (from typical consultants) is that I don't just do recommendations or write reports, I deliver a "new process". That might mean writing specs for a new machine, bidding it out, managing the inquisition, etc. all the way through the final punch list. Or you might buy an off the shelf machine. Maybe just some new "toys" on the shop floor (small stuff). Maybe change the product design. I have a Tool & Die guy who I consider to be my "trade secret" as he is extremely cost-effective in making my jigs & fixtures. I have a database/VBA programmer who is also very skilled and low-cost. I don't do the things myself that are better off hired out (my clients know what I do and what I hire out, there's no mystery there).
4. For the record, I've never had an out-and-out disaster. I've had some very "bumpy" projects. The worst was a machine builder who went bankrupt in the middle of a build. My client bought the machine half-finished and I finished it for him. That machine has saved his business and made over a million parts and does a lot of things it was never supposed to. The bottom line is this: is everything always went perfect, you're simply not trying hard enough. You only fail when you quit and don't try something else. I would say well over 90% of my projects "hit the paper" and then "hit the bull's eye" with a few adjustments. And even those that never hit the target still had valuable knowledge that was gained and they always acquired that knowledge in the prototype/trial stage.

I do appreciate the responses, keep them coming.
The Dude

 

[The Dude]

Hey The Dude,

I'm writing this not stire up anything, but to show a side of people you will encounter that think like me.

1.) Consultation is only as good as the management support to enact change. If management thinks they are going to fix their behaviors as a means to improve through onboarding a consultant, short term gain, long term losses... imo.

2.) If someone was so good at optimizing manufacturing, why in the heck are they not entrenched in the business leading the pack where the real $ is?

I do respect and understand where you are going, but thought I'd share the first two things that come to mind.

Mostly because I love to farm but don't want to own a farm. I'm a "fix it" guy, not a manager. I hate going into the same place every day and I'd probably end up firing too many people. I like working with lots of people and lots of different things. I don't need to make millions, just enough to have fun and a decent retirement. On the side, I am working on a few inventions but those will be licensed out if they become successful (not going to "run the farm").

Okay, here is a wild idea - I can't decide if I'm half serious, or this is completely out to lunch, but I'll throw it out there anyway:

Sell it to one of the cable channels as a reality show.

Why not? There are fixer-uppers who fix up houses as a reality show; bridal dress outlets that sell dresses as a reality show; restaurant turnarounds - reality show; and on and on it goes. Thus far, I don't recall seeing or hearing about a manufacturing consultant reality show ... so the market is wide open.

You are not far off on your idea. Countless times I have told people I work with that their "situation" would make an awesome reality show. In "reality" (no pun intended), I would absolutely LOVE to do a business "fix-up" show that concentrated on the manufacturing processes and information flows. There have been some out there but they were a bit more on the financial side of things (not really process/engineering driven). Great idea. In my wildest dreams, my success would lead exactly to that.

The Dude

 

[countryboy1966]

Mostly because I love to farm but don't want to own a farm. I'm a "fix it" guy, not a manager. I hate going into the same place every day and I'd probably end up firing too many people. I like working with lots of people and lots of different things. I don't need to make millions, just enough to have fun and a decent retirement. On the side, I am working on a few inventions but those will be licensed out if they become successful (not going to "run the farm").



You are not far off on your idea. Countless times I have told people I work with that their "situation" would make an awesome reality show. In "reality" (no pun intended), I would absolutely LOVE to do a business "fix-up" show that concentrated on the manufacturing processes and information flows. There have been some out there but they were a bit more on the financial side of things (not really process/engineering driven). Great idea. In my wildest dreams, my success would lead exactly to that.

The Dude

I get it! Sometimes I want to burn the farm for the same reason you don't want to own it! lol Good luck Sir!

 

[Chip Chester]

Stealing generously from the 'second generation shop owner' posts and the 'fix-it show' posts, you could turn yourself and your team into the Gordon Ramsay of the manufacturing renaissance. Yup-er. Have production assistants scour the country via craigslist with ads that say "Do you have a mfg/production business that is in trouble? Do you want to save it? Do you want to be on TV? Then call this number!" That will get you a bunch of leads, which you can vet and then take to a producer and make the pitch. Even if the producers don't go for the pitch, you've still got all the numbers...

Chip

 

[PeteM]

I had a half-dozen senior management positions in engineering and manufacturing companies, before starting a consulting company -- and ran that company for three decades. My experience:

- The folks that can pay consultants (large firms) want unique expertise, familiarity with cutting edge methods, and a track record of success. They already have thousands of employees for the basics (such as "lean" - which you already recognize won't be your focus).

- These larger companies probably wouldn't have hired me if I called myself the Dude. Might work for you . . . don't know.

- Smaller companies are the most fun and rewarding to work for -- because the connection between your work and their results is more direct. However, they simply aren't in the habit of hiring pricey consultants . If you want to work for smaller companies it can help to have some sort of umbrella organization (vendor, government agency (particularly for work outside the US), trade association, etc.) to make introductions and perhaps share costs.

- You'll want to figure out where you can make an impact, not just a sale. For example, basket-case companies may need lots of help -- but chances are you won't be able to help that much. Even if you get paid, you won't have repeat business and referrals. My own targets were competent companies that were #2 or #3 in their market and wanted to be #1 -- or market leaders facing some disruptive new technology. Point is, you won't get a track record of success unless the majority of your customers are successful.

- Large companies go through cycles of feeling they need to catch up on something. For most, the manufacturing execution, planning, etc. stuff is a bit in their rear view mirror. Instead they may be looking ahead to some issue like "how do we make all our systems, both internal and customer facing, absolutely positively unhackable." The most successful consultants often "surf" technology waves, while complementing that with the basics in problem analysis, overcoming resistance to change, implementation, etc.. You want to ride the wave that's coming in, not the one that's just passed most companies by. This also means you may have to "retool" every few years.

- Educational marketing seems to work best for consultants. In my day it was writing papers, books, giving keynotes etc. that demonstrate insight to your industry. These days it might be an on-line presence.

 

[motion guru]

We have hired a manufacturing engineer consultant (local Portland guy Nualach Engineering) to help us when we didn't have enough bandwidth to stay on schedule with a new machine design. He and his son did great work for us . . . and we would hire them again.

We do such a broad range of low volume / high end specialty machine development projects that every attempt at lean apart from our panel shop has had significant negative impact on our flexibility and ability to innovate.

We are cynically reconciled to our ERP system "Encompix" and if we were to really dig into reporting beyond what we have already done, I'd want the person here full time so they can keep pushing it forward iteratively as we learned along the way. Our most useful reporting now is in the form of Excel spreadsheets that query and assemble the data in user friendly formats.

We need help in project management . . . with a mix of jobs that vary from $30k to $2million and everything in between - some just a retrofit, some a turn-key manufacturing solution . . . a single optimized approach would be a recipe for disaster.

 

[Toolroomguy]

formerly was a consultant in the MEP system for over 13 years

Google wasn't much help in finding out what MEP stands for:
MEP. Mechanical, Electrical and Plumbing (engineering services)
MEP stands for Multi Editor Project.
MEP stands for Mechanical, Electrical and Plant (construction)
344 meanings of MEP acronym and MEP abbreviation

 

[Mcgyver]

2.) If someone was so good at optimizing manufacturing, why in the heck are they not entrenched in the business leading the pack where the real $ is?
.

I'd think a consultant could make a lot more than an employee, and getting to be a principal isn't just something you wake up one day and its there. Its like financial planners, "if you're so smart why aren't a billionaire hedge fund manager"...life's more complicated than that and it that they are not doesn't mean they don't have expertise that can be of value to you.

To the OP, I would target mid to larger businesses (yeah, I know, easier said than done). In our small businesses, say under 50, maybe 100 employees, we all think our brains are the most awesome there is and the business is small enough that they can be pretty much all places at once. Whether they are awesome is almost moot. The leader of a larger business knows he need to hire good brains because his can't be everywhere.