A Start Up Life

Okay, so this one’s not really an interview, but I had the opportunity to listen to a presentation and question and answer session given by the CEO, Alan Boeckmann, of one of the Engineering and Construction Industry’s most successful companies, Fluor Corporation. It is very valuable and interesting to learn about how a business functions in general and how we can apply this to startup businesses. Additionally, I’m sure there are many of you who, like we will be once we’re out of school, are still working your proverbial nine to five job. You might as well know how to do it right.

Alan Boeckmann is chairman and chief executive officer of Fluor Corporation and has been with the company for nearly 33 years. As a young electrical engineer he never dreamed of becoming CEO, but his aspirations were high. He desired to become the head of the electrical department and joked that he never actually achieved that goal. His practical experience in construction from earlier in his life helped him to better understand the designs he made as an electrical engineer. Throughout his career, he accepted assignments overseas, promotions and transfers to other departments, and finally got into one of the company’s executive training programs.

He advised young engineers that wanted to progress in their career to be responsible for their own careers, and develop a network of mentors. Future CEOs will be those who are flexible to experience new situations, are mobile within the company, and are team builders. Working hard to make your group succeed will get you much farther than playing by yourself.

Apparently now is a great time to be young and starting out. Companies are hiring new graduates to be the future managers and executives, as baby boomers near retirement and leave high-level positions open. Boeckmann stated that it is decision and willingness to step into those roles that will get you promotions. Get on the ball guys, take advantage!

Boeckmann stated that talented employees in industry help a company get a jump on its competitors in both design and execution of a project. At the same time, a company and all its competitors receive a boost or a drag from the market. He estimated that market trends account for fifty to sixty percent of a company’s growth and profits, while talent accounts for forty to fifty percent.

What can a company rely on in times of market fluctuation? The same as anyone will tell you about investing in stocks…you have got to diversify. This is not the easiest thing for startup businesses who want to stay in a tight niche, but as you grow your business it is a concept that should be applied.

Maybe it is just my newfound love for business that’s talking, but hearing Boeckmann speak made me think, “Man if I ever work in industry, my goal will be to become CEO of my company.” Executives have all the fun driving a company towards progress.

The E-Myth Revisited: Why Most Small Business Don’t Work & What to Do About It
by Michael E. Gerber

This book is great for making you think properly about starting a business. Think about all the people you know who have started a business. Most continue to this day to work more hours and have more stress, because they keep working in their business and they’ve begun to hate it. Michael Gerber teaches how to “work on your business, instead of in it.”

Most people try starting businesses in things they are good at. Perhaps they do their job every day and think, “I could run this business on my own, do a better job at it than my manager and have all the profit for myself.” So they start a business doing the work they always did, but they now also have the responsibilities of managing, marketing, hiring and procuring supplies. They go nuts, and they start to hate what they used to love.

Sometimes they try hiring someone to do some of their work. That person is good at it, so the owner keeps piling more stuff on that person and not handling the responsibility of it. That person ends up getting tired of their job and the fruitless, unorganized way you run the company they work for. They quit, and the business grows small again. Then the owner really goes nuts.

Gerber gives the formula of the franchise prototype. By thinking about each position your business needs in it to operate, whether it is sales clerk, waitress, cook, or accountant, and by setting up and writing down a system by which that person does their job, you free yourself from doing the work. You can hire anyone to do it and teach them how. You don’t need to hire professionals that will run things their way. Hire amateurs and train them.

The best strategy is to start from the bottom, writing up a system for the easiest jobs and getting someone to do those, then move on to the more complex ones. Once your system is working smoothly, you can replicate your entire business by hiring a whole new team of people to run it. Thus you are like a franchise.

This is most applicable to any business with a physical storefront. Web-based businesses might not profit from trying to replicate themselves, but the way of thinking is correct. Work on making your business run without you. Then you can really grow and you are not stuck doing all the work. Sound crazy?! It worked for Steve Jobs. He even got kicked out of his own company for a while.

Too busy to read the entire book? Read my notes for a summary of the most useful points.

As Scott and I continue to learn about businesses the best resource we have are books.  When I was commuting 70 miles to school after we got married, my sanity was saved by books on tape.  I listened to every book I had ever wanted to read and then some, and I became a complete convert and devoted fan of the best invention in the world…the public library.  Scott and I have been reading everything we can get our hands on about business and finances.  So go get yourself a library card, and start using it as frivolously as some use credit cards.  Also, some public libraries let you download audio books for free, so there’s not even a chance of late fees.

I’m going to be posting reviews of the majority of the books I read, so you can be introduced to some new ones and see how they’ve helped us.  In addition, I plan on posting a link to the notes I typed up while reading or listening to some books.  I’m not making those fancy or anything, and they’re not short, but if you don’t have time to read 300 pages, you’ll get the main points from the 5 or so pages I’ve condensed it to.

If you’re just interested in books in general check out this site I found.  It has any classic novel you could want.  I’m not sure how they get around copyright laws and all that, but that’s their thing.

Have you ever wanted to start your own business? Don’t know how? Neither do I, but I’m about a month ahead of you on research. Here’s what I’ve learned so far:

1. Read everything you can. I mean EVERYTHING! Any advice you can get from anywhere will help you learn to select what is good advice and what is bad. In no time, you will know more than most of your friends.
2. Seek advice from others. Take advantages of any opportunity to talk with executives in companies, people just starting a business, people who grew their business from a startup to a mature company, and even those whose business failed.
3. Budget your time. If you want to start a business, you have got to find the time to do it. Use your lunch breaks at work, while you’re waiting in line at the store, anytime to make plans for your business.
4. Budget your money. Personal finances are directly connected to starting your own business. Learn to budget your money and control your spending, so you can invest in your business.
5. Becoming financially independent is easy. I knew nothing about finances a month ago. Now, my husband and I know more than the average Joe. The average person knows so little about finances you’ll be way ahead of the game in very little time.

Want to learn more about starting a business? Stay tuned as I continue to update you on the progress my family and I have made with our own.

Learn more about what my plans are here.

Hi! I’m Cat, and this is going to be the busiest year of my life. If all goes according to plan, by this time next year I will have my master’s degree, a fledgling business and possibly a child.

I am a 23-year old, recent college graduate in Chemical Engineering, and I’m starting an M.S. in Materials Science and Engineering this fall. My husband Scott will finish his B.S. in Electrical Engineering next June, so I have one year to finish my masters before we move across the country for his graduate school.

My sister Sara is an undergraduate student of Vocal Performance and Education, and her husband Jon is an undergraduate Creative Writing major. Scott and I were married last December; Sara and Jon tied the knot last February. We’re all young and just starting life. They are our business partners. So what do two engineers, a writer and a singer know about business? Absolutely nothing!

One fateful day about a month ago, we came up with a brilliant, fun and exciting business idea while vacationing in beautiful Fort Bragg, Ca. That’s why we started our quest for knowledge about how in the world you start a business, how you make people realize it exists and what you do once you’ve got one.

We’re complete novices. If you’re a novice too, I want your questions and feedback on what you’ve tried in your business. If you’re an expert, I want your advice! I’ll keep you posted as we go along.

As for the child…well we’ll see what happens with that. I’m not expecting one yet, but Scott and I have talked seriously about that being in our near future. I have to laugh every time I think of myself as the stunningly beautiful, pregnant woman, poring over materials engineering textbooks, while making calls to potential clients!

Join me for the journey.

P.S. I want to help you learn everything we are about starting a small business. You can learn as we make mistakes so you don’t have to.