Setting rates and real cost of work

This episode takes you inside the reality of becoming a systems integrator and growing a technical services business from the ground up. Vlad and Dave share their personal experiences launching and running integration companies, the lessons they learned as engineers moving into business ownership, and the challenges that come with finding customers, choosing technologies, setting rates, managing cashflow, and hiring the right people. This is a detailed and candid look at what the journey actually requires. It is also a practical conversation that breaks down how technical professionals can evolve beyond pure engineering work in order to build a sustainable integration practice in the world of manufacturing and industrial automation.

The episode begins by grounding the definition of a systems integrator in the context of modern industrial environments. Vlad and Dave explore the many different shapes and levels of integrators across the ISA eighty five and ISA ninety five landscape, from controls and PLC programming to SCADA development, MES implementations, and specialized software delivery. They also explain why customers hire integrators, why the most valuable asset is always the people, and why the hardest part of the work is rarely technical. Vlad shares insights from his decade in engineering and operations roles at Procter and Gamble, Kraft Heinz, and Post Holdings, followed by senior engineering and management positions at multiple systems integration firms. Dave brings his experience from aerospace, OEM machine building, distribution, and running his own integration business focused on manufacturing execution systems and ignition development.

The conversation then shifts to the earliest stages of starting an integration company. Vlad and Dave describe the moment when most professionals decide to go out on their own, which usually begins with feeling constrained by corporate structures or wanting more autonomy over the projects they work on. They break down the difference between being a contractor and building a long term business and why many technical founders underestimate the reality of sales, marketing, legal administration, cashflow management, and relationship building. The discussion highlights how timing and relationships drive early opportunities far more than technical ability and why every contract carries its own risk profile that needs to be negotiated with care.

Listeners are then guided through the real startup requirements for a systems integration company. This includes liability insurance, business registration, accounting and bookkeeping tools, mileage and expense tracking, choosing an internal technology stack, managing licenses, and understanding when to invest in programming software or rely on customer owned licenses. Vlad and Dave explain the role of net thirty, net ninety, and even net one hundred eighty payment terms and why long payment cycles can destroy cashflow if not anticipated correctly. They also share practical frameworks for setting hourly rates, pricing time and materials versus fixed projects, and calculating the true cost of travel, administration, and sales time that erode billable hours.

Timestamps
00:00 Introduction to systems integration month
01:10 Vlad background and career in manufacturing and automation
03:00 Dave background and experience running an integration company
04:40 What a systems integrator actually is in modern manufacturing
07:50 The blurry line between integrators machine builders and software providers
08:50 Why people decide to start a systems integration company
12:40 Contractor mindset versus building a real business
16:50 Early startup requirements insurance registration tools licenses
22:00 Sales marketing and the challenge of finding early customers
27:00 How timing relationships and visibility drive new work
30:00 Referrals partnerships and brand building for technical founders
33:20 Understanding financials hourly rates project rates and risk
40:00 Negotiating payment terms net cycles and cashflow management
43:30 Technology choices internal tools external platforms and vendor ecosystems
51:10 Should you specialize or learn every platform
54:20 When to say no and how to evaluate incoming work
58:00 Hiring your first employee and the reality of scaling
01:03:20 The future of systems integration over the next three to five years
01:08:00 Final career advice for engineers considering integration
01:12:00 Resources and closing thoughts

Systems integrators article
https://www.joltek.com/blog/system-integrators

Manufacturing consulting insights
https://www.joltek.com/blog/manufacturing-consulting

Digital transformation in manufacturing
https://www.joltek.com/blog/digital-transformation-in-manufacturing

Industrial cybersecurity fundamentals
https://www.joltek.com/blog/industrial-cybersecurity-ics