How to start a startup – seems simple enough – but starting a business can be a very different experience for most people. Not only do you have to consider the legal, financial, and social aspects of it all, but you also have to consider the long, complicated, and sometimes expensive process of getting your company off the ground.
Once you do that, though, you’re only halfway there. So how do you get good profits? That’s the real challenge. You need to figure out how to make money quickly and efficiently, but not at the expense of sacrificing quality or customer service.
And that’s where we come in. Because we did the research for you, we can give you the 5 ways and ideas to start a profitable engineering startup and get good profits quickly.
1. Distribution and Installation of Machinery
We can no longer imagine life without machines. For example, in the previous decade alone, global demand for machine tools has increased by more than 100%, reaching an estimated 181 billion US dollars in 2019.
From washing clothes to driving cars, machines have become a significant part of our everyday lives. And this is why they are high in demand.
Stating a distribution company that installs machines can be quite profitable. But, especially when you’re in the beginning phases of the business, making a significant profit from selling products alone can be challenging. So, by combining both, you can find a way to get considerable profits in no time.
It can be very profitable, but you’ll most likely want to use a distributorship or installers for a one-time project. So many small companies end up with low overhead and high profit because they specialize in one area (e.g., windows, insulation, ducting). They know everything about their products and are often willing to work with anyone.
However, if you don’t have that type of company, you’ll need to look into what is called “direct sales.” And while this does make a lot more work, it will allow you to be more flexible and adaptable in terms of customers. But be careful, and make sure you can handle any issues yourself.
2. Industrial Water Treatment System
Every year, companies lose millions of dollars through inefficient water treatment systems. In fact, those losses could be significantly reduced on some major US water utilities. The problem is that no single product solution can handle all water treatment needs.
So…what if there was a way to help all these small water utilities solve this problem? Industrial Water Treatment System is a service-based business idea.
We all know the importance of having clean drinking water. Also, with an increasing population, we are all aware of the scarcity of potable water. In the US, each citizen loses over 10 gallons of water daily because of poor management. That’s a lot of wasted water. That’s where this comes in. The engineering startup’s idea is to build an industrial water treatment system that will utilize the latest technology to remove impurities from water.
3. Engineering Consultancy
This is one of the best engineering startups because it can become quite profitable, even more so when choosing your customers carefully.
You basically set yourself up as an engineering consultant and provide services to other companies. This is called a “project” and can be done as an individual (self-employed) or through a consulting company.
This might sound like just another business idea for entrepreneurs. Let’s look at why this is one of the best engineering startup ideas:
- It’s a great business idea because it can be started today (in fact, there are many consulting companies already out there today) and has excellent growth opportunities.
- In addition, if you do your market research well, you’ll find that many people already need your services and are happy to pay for them.
- And last but not least, the work can be very creative, fun and rewarding, because you’ll get to work on some exciting projects.
4. Smart Product Development
You’re probably already familiar with this one. This kind of engineering startup idea has been tried a million times before. In fact, there’s an entire industry based around this kind of idea. There’s already an open source project, and there are already a lot of websites that offer smart product development services. So, this is not a new concept.
But here’s the thing: It still works because it’s just a matter of putting it slightly differently. Most smart product development services don’t have any specialized engineers or scientists on their teams. And so they’ll use advanced technology like artificial intelligence, machine learning, and big data analytics to do a lot of the grunt work for them.
That gives them time to focus on things requiring human expertise, like coming up with the actual product idea and creating a plan. After that, they can pass on all the technical details to their open source partners, who will do all the heavy lifting. In essence, it’s just an improved version of outsourcing.
5. Recycling of E-Waste
The total number of active mobile devices in the globe increased to over 15 billion in 2021 from slightly more than 14 billion the year before. Most of these are no longer in use. So when they reach the end of their lifespan, they are generally not recycled but instead sent to landfills or simply discarded. This is quite wasteful.
What if we could recycle these devices and reuse them for other purposes? And since the e-waste population is growing at the rate of 3-5% per year, this is becoming an increasing concern.
To earn a living while simultaneously doing your part to protect the planet from hazardous materials, consider starting an e-waste recycling company.
This engineering business strategy proposes establishing a recycling company for electronic trash to facilitate the recovery of precious metals, polymers, and glass from discarded electronics via the use of low-input, high-return processes.
Conclusion
There are several startups out there these days, but none of them are making a profit unless they’re doing something that everyone needs and desires. That’s why choosing a profitable business model is crucial before you even start creating your product.
About the Guest Author
After cooperation with the different manufacturers, Amir Jones decided that field service engineering services are efficient for the nowadays industry. Moreover, it is very interesting to write about it. So, he helps to clarify the basic principles and details of the process in such a way today, enjoying the process of writing and assisting people.
