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How to start a network engineering business
Here’s what you need to know to turn your computing experience into a profitable enterprise.
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If you have expertise in IT, starting your own network engineering business can be a great way to monetise your skills. However, after years of working for someone else, venturing out into the world of entrepreneurialism can seem daunting. In this guide, we've broken down the steps you need to take to get your business up and running, from choosing a name to organising the legal side of things.
What is a network engineering business?
A network engineering business is responsible for building and maintaining an organisation’s IT system. This can involve various tasks, from introducing secure physical and wireless networks and daily troubleshooting, to researching and implementing new technologies.
How to start a network engineering business?
Here’s a quick checklist of essential steps to starting a network engineering business:
- Choose your niche. While network engineers can work in almost any industry, you may want to pick a niche for your business so you can cater your services to your target market.
- Set up your business. To meet the legal requirements for a business in Australia, you’ll need to register for an Australian Business Number (ABN) and choose a structure. To make sure you have a viable business, it’s also important to think carefully about choosing your name and logo, and setting up a website.
- Put together a business plan. Writing up a business plan can help you to perfect your business strategy. It should include a detailed look into your finances, an overview of your marketing strategy and set goals for the future.
- Consider your funding options. Initially, you may need to invest some money into your business to buy equipment and software or onboard staff. If you don’t have personal savings to cover these costs, you could look into a small business loan.
- Set your rates. Before you start to work with any customers, it’s essential to know what your rates are. Will you charge clients by the hour or provide a fixed rate for the job?
- Organise your legal documents. To make sure your business is legally sound, you can get in touch with a small business lawyer who will guide you through the papers and procedures you need to have in place to operate within Australian law.
- Market your business. Once everything is in place, it’s time to find some customers. Advertising your services can be done through your own website, using a third party website such as Oneflare, or by cold calling businesses in your local area.
Equip yourself with crucial industry skills
To start a network engineering business, you will need to have experience working in IT. You should have a general understanding of how to plan and implement computer networks, and provide technical support for organisations. Designing and operating a network requires good communication, leadership and project management abilities.
Network engineers require IT skills that include:
- Computer servers and storage
- Network hubs
- Network switches and cables
- Routers
- Firewalls
Running your own business also requires administration, sales, management and marketing skills. It's important to come up with a detailed business plan that will help you stay on track for success and a marketing plan that will build up your customer base. We touch on how to implement these key skills later on in this guide.
Complete the key industry qualifications
A network engineer will typically have a degree in computer science, computer engineering or information systems. A diploma in network engineering will give you the computer skills and knowledge to get started. A diploma typically costs around $20,000, while degree course fees are usually closer to $60,000.
Alternatively, industry certifications from technology companies, including Cisco, Microsoft, Citrix, Red Hat, and VMware, provide training on different types of devices and network security systems.
Diploma of Applied Information Technology
A diploma of applied information technology from training.com.au could help start your network engineering career.
Give your business a name
A well-thought-out business name can make all the difference when it comes to success. Here are a few things to consider before you settle on one:
- Keep it relevant. Your name must reflect the service that you're offering, so prospective customers know what your business does.
- Make it easy to remember. Your business name should be easy for customers to remember. Don't make it too long, complicated or difficult to spell.
- Do some market research. Ask family, friends and people from the industry what they think about your name to determine whether it is right for your business.
- Double-check that it's unique. Do some research and make sure no-one else is using your chosen business name. This is important for finding a relevant website domain name and to avoid legal issues.
Choose a business structure
Before you start selling your computer engineering services to clients, you need to make sure that your business is fully registered. To do this, you will need to decide which legal structure to operate the business under. Your business structure will determine who makes the key decisions and how to pay tax, among other things.
If you're opening a network engineering business by yourself, you'll need to register as a Sole Trader. This will give you absolute control of the business, including taking responsibility for important decisions, as well as any profits and losses. When you open your business with a friend or family member, you will need to register it as a Partnership instead. In this case, two people will be sharing the responsibility.
Alternatively, you can choose to register as a Company. Generally, this is reserved for businesses that will grow and expand into a national or international enterprise. Companies can be more expensive to set up and are owned by different shareholders who share the business's financial burden.
Once you have decided on the name and legal structure, you should register for an Australia Business Number (ABN). Government authorities, including the tax office, use this to identify your business.
Put together a business plan
Your business plan doesn't need to be a complicated or lengthy document, but it should give you an overview of how your business will function, and how it will grow and evolve over the years. If you want to start a network engineering business, here are some key questions to answer in your business plan:
- What is your business? Explain what your business does in a few sentences.
- How will your business make money? Describe the services your business will offer and how much you'll charge customers.
- Who is your target demographic? State the type of customers your business will work with.
- How will you find your customers? Define your marketing strategy. Will you depend on social media or invest time into creating an email marketing campaign?
- What are your projected earnings? Analyse the earning potential of your business over the next five years.
- How will your business grow and expand? Explain how you see your business growing its customer base and service offerings.
- What are your goals for the future? Set milestones for your business, and explain where you'd like your business to be in the future.
Purchase any necessary equipment
To start a network engineering business, you'll need a special set of tools and equipment. Some essential items to have in your toolbox include:
- Cable tester to help verify electrical connections.
- Wirecutter, stripper and crimper for handling wires safely.
- Screwdriver to dismantle hardware systems.
- Two-way radios to communicate with colleagues on the job.
- Phone line tester to measure and test existing phone connections.
- Tone probe to help trace a cable route through a building.
- Cable snake to neaten up wires.
- Torch/headlight to help light up any dark spaces.
You will also need a particular type of computer software to help with troubleshooting and analysing networks. For this, you can choose from software such as SolarWinds, Nmap, PuTTY or EVE-NG.
Organise the legal side of your business
To protect your customers and your business, it's important to have all of the correct legal procedures and documentation in place. You can organise this yourself using online legal templates or onboard professional help by consulting a small business lawyer.
Here are a few legal documents to get started with:
- Partnership Agreement. You'll need to write up a Partnership Agreement if you decide to open your network engineering business with a family member or friend. This document will outline both parties' rights and responsibilities to avoid any legal disputes later down the line.
- Independent Contract Agreement. If you decide to hire network engineers to work with on a contractual basis rather than hire them as full-time employees, you will need an Independent Contractor Agreement.
- Cancellation Policy. Using a Cancellation Policy can help minimise your loss due to last-minute cancellations by customers.
Get access to legal services and documents online
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Price up your services
For your business to succeed, you'll need to price your services so that they are competitive with other network engineering companies. Start by researching businesses already serving the market you are looking to enter and see what they charge. Is there a gap in their offering that you can target?
You will also need to make sure you can generate enough revenue to cover the costs of running the business, such as equipment, office supplies, transport costs, etc. Annual salaries for network engineers can range from $90,000 to well above $100,000, depending on experience, so you could use your expected salary as the basis to calculate an hourly rate by adding a mark-up to cover costs.
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Having a clear marketing plan with a combination of offline and online strategies will help you to identify and attract customers. Focusing on a specific niche will also help you stand out among the multitude of computer service firms in the market.
As well as setting up a website to market your services, register with online directories and make use of social media, so that potential customers can find you. Business cards and brochures are also an effective way to market IT services offline, for example, by distributing them to office managers at companies in your local area.
Most recently, a new wave of online marketplaces has created a hassle-free space to find local customers. Websites such as hipages, Airtasker and Oneflare allow you to create a profile to advertise your services or respond to local queries in your area.
Frequently asked questions
How do I build up a team for my network engineering business?
You will likely want to hire several engineers with different skill sets to operate your network engineering business. Outline the type of employees you need and write job descriptions with the qualifications, experience and qualities you are looking for to help define their roles. Start by inviting industry colleagues you know to join you, then you can approach recruitment agencies or online employment sites.
Are network engineers in demand?
As the world becomes more and more reliant on digital technologies, the need for network engineers will continue to grow at an exponential rate. In fact, some specialists have gone as far as calling it a "future-proof" career, with 11,100 more people expected to be working in the sector by 2024.
What areas could my network engineering business specialise in?
Choosing a niche can help you to differentiate your business. Some of the areas you can specialise in include:
- Network security monitoring
- Cloud networking
- Wireless networking
- Internet telephony engineering
- Full-stack network engineering
- Office renovation consulting
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