Engineer Your Freedom

Which One Bottleneck Is Actually Stopping Your Engineering Firm?

Busy is not moving. Mike explains the four stages of an engineering business and how to find the one bottleneck to fix next.

Collage of four site photos: a roadside equipment cabinet on a concrete pad, concrete formwork in an excavation, piping on a pad, a pond, and a trench in a pine forest.
Collage of four site photos: a roadside equipment cabinet on a concrete pad, concrete formwork in an excavation, piping on a pad, a pond, and a trench in a pine forest.

Your firm has one top bottleneck at a time. If revenue is zero, my view is that the bottleneck sits in the first stage, getting paying clients, and a website is not where your week should go. Find the stage you are stuck in, spend your week on that, and say no to the rest. Busy is not the same as moving.

Why is being busy not the same as moving?

I used to live in a basement. I ran all over the place building websites and doing all sorts of other work. I had no work. I was not spending any time with potential prospects or working on the business.

Engineers love to tinker and build. It feels like progress because something gets finished. But we run a service business. Clients anchor everything we do, and without them there is nothing to deliver.

What are the four stages of an engineering business?

I think about it as four questions, in order:

  1. Do you have paying clients?
  2. Do you have the capacity to deliver the work?
  3. What systems can run even when you are not there?
  4. Do you have a predictable sales engine?

The first one comes first. If there is no money coming in the door, that is where I would look before anything else on the list. With no paying clients, the first stage is your bottleneck, and that is my view, not a rule.

Technically there is only ever one top bottleneck stopping your growth. Your job is to name it.

How do you find your bottleneck?

I use a few quick checks. None needs special software.

Look at your backlog

Take the work people have signed and subtract what you have built. I look at that gap to see where the pressure sits.

Look at your evenings

If you are staying up late to get jobs out the door, you may be oversold. That points at the second stage. You may need to trade money for time and hire someone.

Look for repeated mistakes

If the same errors keep happening and you keep working late to fix them, you might have a systems problem. Write down what keeps going wrong, for yourself or your team, so the pattern gets fixed once.

Look at your calendar

If those do not fit, check how you spent the last month. Count the calls and ask what share went to new prospects and new relationships. You can probably have AI go through your calendar and work out the percentage.

When I audited my own time, I saw a lot of delivery and not much time on a predictable sales engine. We had a backlog, so I decided to get someone in to cover delivery so I could focus on building the sales engine.

What does hiring do to a bottleneck?

Our bottleneck is a systems and training one: getting people into the system. As that clears, the bottleneck becomes improving our predictable revenue machine. I am fighting those two at once.

If you do not have a good system for bringing people in, every hire pulls you back in to get them up to speed. Then it happens again with the next hire. You are playing yo-yo.

So after a hire, I ask two things. Have I documented this so well that the next time is quick? And what can I automate in it?

The sales handoff is a good example. When a sale comes in, the team needs the scope and how I want the work done. How much you must spell out depends on how repeatable the work is. I have been tweaking ours for about two months, because a clean handoff is how clients stay happy.

Is this a Grandfather Engineering problem?

This is my view, not a fact I can prove. Grandfather Engineering runs on the owner. The founder is the bottleneck, the evenings go to pushing jobs out, and every new hire means pulling the owner back in to explain it all again. Late nights get treated as the price of growth.

Modern delivery works the other way. Documented systems, a clear sales handoff and AI-assisted checks of your own calendar mean the firm does not depend on you being in the room. That is what I am trying to build, and I am not finished.

What do you say no to?

Naming a bottleneck means declining things that do not fit it. This week a team member needed help within a two-hour window. I told him I had to keep working on the systems and the sales machine.

That upset him. I did not leave him empty-handed, though. We talked about how to prevent that kind of fire in the first place, and about other release valves, like other team members who can take the work.

Ask yourself what you declined this week because it did not fit. If the answer is nothing, you are probably not working on a single bottleneck.

What should you do next week?

On Friday, decide which tasks next week serve the bottleneck you named. I do my own prep on Sunday afternoon so I am dialed in on Monday.

Then check your task list against it:

  • If the bottleneck is getting clients, how much of next week is spent getting out and talking to prospects?
  • If it is process, how much of next week goes to fixing the process?
  • Whatever does not serve it, can it wait, move to someone else, or get declined?

It is a good gut check. If your tasks do not match your bottleneck, change the tasks.

I am in the thick of this myself, and I felt stuck in two stages at once. Ask which one would stop money coming in the door first, and work on that one. Faster, steadier revenue makes for a healthier firm.

From the book Engineer Your Freedom

Michael Groselle, P.E., is the founder of Modern Engineering Solutions, a multi-state water and wastewater engineering firm. He left salaried engineering in 2017 and built the firm from one resignation letter and zero clients to more than $2M in annual revenue, with 40+ team members and 300+ completed projects.

Sold on Amazon. Prefer the Kindle edition? Buy it on Amazon ($9.99).