Like most individuals new to the architectural profession (2 years since receiving my M.Arch), these days, I am just grateful to be employed. However, I don't want the present to quash any chances or hopes I have of one day establishing and growing my own business when things eventually improve.
I currently have many more questions than answers and my plans are still optimistically open - I am in my late 20s living in the mid-Atlantic region, no children, and only 'moderate' student loan debt. The only formal goal I have for my future business is to resist falling in to the standard, status quo definition of the practicing architect. Ideally, I would like to pursue a model that encompasses, fabrication/construction, property development, and a broad, all-inclusive design element.
I would be interested to hear from any individuals who have gone down a similar road. How did things begin? What initiatives did you have to take to get started? What have others tried? What failed? What worked? And most importantly, what did design school NOT teach you that was vital to achieving your goals?
Learning how to build a business is something that you need to practice. If you want to get good at something, do you only do it once? Start a business today! Sell newspapers. Sell lemonade! Sell psychiatric advice! Sell anything! a Good test for your negotiating capabilities is to buy something on craigslist for at least 20% less than it is worth. Then go back and sell something on craigslist for 20% more than it is worth. You can plan and talk and dream about your architecture business for years, but if you really want to have a business, you need to learn how to operate a business. Without sales a business does not exist. Don't worry about failing. Fs are good. Small Fs. Hopefully not big Fs. Create a plan and do it. Check out SCORE.org.
Not sure I'd approach it with the attitude that you'll fail, start over, fail, and eventually succeed.
Business is a combination of luck, hard work experience, learned skills, hard work, luck, luck, luck and more luck. Some can get by with only two of those, but things are a lot easier if you have some knowledge to start with.
My advice (as a business owner):
1. Start reading, reading, reading, without being taught business skills in school, you'll need to catch up. I have a minor in biz, but certainly could have used an MBA (that's my only regret with my education). There are many good books and resources out there.
2. For the development world, you'll need to understand finances, spreadsheets, etc. There are some good books out there, but you'll really either need school or someone to show you. Not rocket science by any means, but its real dollars and the people that are going to look at your documents (investors, banks, etc.) will be quick savvy and smell out any errors.
3. Start putting together some business plans, ideas, think through the process of starting to profit - are you going to borrow? Start with investments? Start on the side? Partners? Do you need them/are they advantageous (forget friends, just a bad idea, also forget duplicate skills)??
4. Keep overhead low! Whatever you do, don't spend a penny you don't need to. Office space, for example, is a massive waste in most cases.
5. Adapt and re-evaluate - always be prepared to roll with the punches. Life will through them and the better you can react, the quicker you'll emerge stronger on the other side (there is truth to the 'successful entrepreneur's fall and fail many times before success', but that's certainly not an absolute)
To WF's points, there is a lot to be said for 'just do it', but there's also a lot to be said for planning and preparation.
6. Dream big - never be afraid to dream big. As a client recently told me - there's no difference between a 5mill project and a 500mill project, just more zeros.
"Aim for the stars and maybe you'll land on the moon" as my dear mother says.
Your questions:
Money - you need that to start. The rule is 6 months of expenses (that's to freelance, forget an 'office', etc.), but in today's world I'd go for more.
Clients - you'll need them to get more money, which you will always need more of.
Portfolio and Professional image - you'll need a port to show, regular business docs (no excuse not to have a professional website, business cards, etc., these days - that's probably all you really need)
School - design school taught me absolutely nothing about the real world, about how to run a business, etc. Nothing. The only thing it taught me was how to persevere and face a challenge, establish a process and solve a problem (which, ironically, is 90% of what business is). My biz classes have helped, I think, but most is from the dozens of books I've read and just experience, talking with people, etc.
There are lots of threads on this forum addressing this topic.
My experience was pretty simple: We had clients who wanted to give their money to us and not our bosses. Everything from there fell into place. Cash flow is everything - if you have it, your business runs. Remember that your salary is an expense of the business, not a luxury and not something to be taken as "profit". You deserve to make money, and you can if you approach your business as a business. Find mentors. If you can find a mentor that is also a repeat client, cherish those people and hold them close, they will take you far. Remember the world is not design school, there's more to your business life than your design life. Let your design attitudes find their proper place in your business life. No matter how hungry you are, turn down work that you really don't want to do - you'll either do poorly, which will hurt your reputation, or you'll do great, which will hurt your reputation. For the work you do take on, serve your clients to the best of your ability. Fall on your sword when you have to. Take spankings when you have to. Stand up for your failures and be modest about your successes. Forget about fame and fortune, serve your community.
Clark9: you've already received some very sound advice above. In addition, there are several reference sources you may wish to add to your library over time:
slightly off topic, but did any of you have work lined up before you went out on your own? i mean, do you just do all the city paperwork, get a phone listing, and wait for it to ring?
There are also some helpful worksheets, etc. at the SBA: http://www.sba.gov/
Especially if you're doing something different from traditional architectural practice, it could be a good resource to consult. Also, second on the mentor thing; local mentors in construction and real estate sound like they'd be very helpful!
Not the voice of experience here (yet), but still reading up a lot on the process.
@Due 89 - This is part of learning to run a business that I mention. Learning how to make the phone ring is one aspect of this. It's generally called Marketing.
It helps to have clients if you are going to jump ship and cut all ties with a current employer. I am going the moonlighting route. Still have a 9-5 while I build my client base and do projects after hours and with vacation time. I am also launching a second business that has nothing to do with Architecture, but will allow me to have multiple income streams so I am not relying on one business to support me.
Keeping a lid on my other business until it is launched which is scheduled for October. But your business can be anything. If you take an inventory of your life, you will see that you are surrounded by businesses, from the plates that you eat on to the clothes that you wear to the water that you drink. And for the most part these are not big evil corporations, but people like you and me who had a dream and made it happen. Find a need or a niche and fill it. If you are successful, you will create a cash cow that will allow you to pursue your design ideas with more control and satisfaction than you could ever get working for someone else. Greater risk and greater reward.
Marketing is largely getting to know people. Introduce yourself and your firm, build a relationship and always be presenting ways for your service to fill a need for them. Ask for a project. This can be very hard for architects, because many of us are introverted. Its a skill that I've had to develop. That being said, moonlighting doesn't give a lot of time for marketing so you have to be very focused. I have picked one client to pursue to get my feet off the ground. I have already spent many hours meeting with them and presenting my capabilities and discussing future opportunities. My goal is $40k in revenues in year one. 90-100% of this will be put back into the business.
Jul 8, 11 8:01 pm ·
·
I will simply say that all the basic principle of operating an architectural firm also applies to operating a building design firm. Whether the firm starts off as a sole-proprietoriship/practitioner to multi-partner with lots of employees corporate firm.
Any basic business principles applies. Here, it is more than just project management but business management, financial management, process management and where applicable human resource management.
Building Design / Architectural practice is a business. So, it is important to charge what is fair for yourself and your costs - NOT whatever it takes to simply get the job by whoring yourself for peanuts. You need to cover costs, pay taxes, pay consultants as they may arise, employees and sub-contracted staff.
You need to think about this as a business and remain sustainable as a business. If clients can't afford an architect / building designer fee regardless of the range, then they really can't afford the project. You should NEVER be doing this for peanuts. You are a professional (regardless of licensure status), charge like a professional. You didn't get the education to work for minimum wage.
Jul 18, 11 1:16 am ·
·
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planning/laying the foundation of your own business
Like most individuals new to the architectural profession (2 years since receiving my M.Arch), these days, I am just grateful to be employed. However, I don't want the present to quash any chances or hopes I have of one day establishing and growing my own business when things eventually improve.
I currently have many more questions than answers and my plans are still optimistically open - I am in my late 20s living in the mid-Atlantic region, no children, and only 'moderate' student loan debt. The only formal goal I have for my future business is to resist falling in to the standard, status quo definition of the practicing architect. Ideally, I would like to pursue a model that encompasses, fabrication/construction, property development, and a broad, all-inclusive design element.
I would be interested to hear from any individuals who have gone down a similar road. How did things begin? What initiatives did you have to take to get started? What have others tried? What failed? What worked? And most importantly, what did design school NOT teach you that was vital to achieving your goals?
Thanks in advance.
Learning how to build a business is something that you need to practice. If you want to get good at something, do you only do it once? Start a business today! Sell newspapers. Sell lemonade! Sell psychiatric advice! Sell anything! a Good test for your negotiating capabilities is to buy something on craigslist for at least 20% less than it is worth. Then go back and sell something on craigslist for 20% more than it is worth. You can plan and talk and dream about your architecture business for years, but if you really want to have a business, you need to learn how to operate a business. Without sales a business does not exist. Don't worry about failing. Fs are good. Small Fs. Hopefully not big Fs. Create a plan and do it. Check out SCORE.org.
Not sure I'd approach it with the attitude that you'll fail, start over, fail, and eventually succeed.
Business is a combination of luck, hard work experience, learned skills, hard work, luck, luck, luck and more luck. Some can get by with only two of those, but things are a lot easier if you have some knowledge to start with.
My advice (as a business owner):
1. Start reading, reading, reading, without being taught business skills in school, you'll need to catch up. I have a minor in biz, but certainly could have used an MBA (that's my only regret with my education). There are many good books and resources out there.
2. For the development world, you'll need to understand finances, spreadsheets, etc. There are some good books out there, but you'll really either need school or someone to show you. Not rocket science by any means, but its real dollars and the people that are going to look at your documents (investors, banks, etc.) will be quick savvy and smell out any errors.
3. Start putting together some business plans, ideas, think through the process of starting to profit - are you going to borrow? Start with investments? Start on the side? Partners? Do you need them/are they advantageous (forget friends, just a bad idea, also forget duplicate skills)??
4. Keep overhead low! Whatever you do, don't spend a penny you don't need to. Office space, for example, is a massive waste in most cases.
5. Adapt and re-evaluate - always be prepared to roll with the punches. Life will through them and the better you can react, the quicker you'll emerge stronger on the other side (there is truth to the 'successful entrepreneur's fall and fail many times before success', but that's certainly not an absolute)
To WF's points, there is a lot to be said for 'just do it', but there's also a lot to be said for planning and preparation.
6. Dream big - never be afraid to dream big. As a client recently told me - there's no difference between a 5mill project and a 500mill project, just more zeros.
"Aim for the stars and maybe you'll land on the moon" as my dear mother says.
Your questions:
Money - you need that to start. The rule is 6 months of expenses (that's to freelance, forget an 'office', etc.), but in today's world I'd go for more.
Clients - you'll need them to get more money, which you will always need more of.
Portfolio and Professional image - you'll need a port to show, regular business docs (no excuse not to have a professional website, business cards, etc., these days - that's probably all you really need)
School - design school taught me absolutely nothing about the real world, about how to run a business, etc. Nothing. The only thing it taught me was how to persevere and face a challenge, establish a process and solve a problem (which, ironically, is 90% of what business is). My biz classes have helped, I think, but most is from the dozens of books I've read and just experience, talking with people, etc.
There are lots of threads on this forum addressing this topic.
My experience was pretty simple: We had clients who wanted to give their money to us and not our bosses. Everything from there fell into place. Cash flow is everything - if you have it, your business runs. Remember that your salary is an expense of the business, not a luxury and not something to be taken as "profit". You deserve to make money, and you can if you approach your business as a business. Find mentors. If you can find a mentor that is also a repeat client, cherish those people and hold them close, they will take you far. Remember the world is not design school, there's more to your business life than your design life. Let your design attitudes find their proper place in your business life. No matter how hungry you are, turn down work that you really don't want to do - you'll either do poorly, which will hurt your reputation, or you'll do great, which will hurt your reputation. For the work you do take on, serve your clients to the best of your ability. Fall on your sword when you have to. Take spankings when you have to. Stand up for your failures and be modest about your successes. Forget about fame and fortune, serve your community.
Clark9: you've already received some very sound advice above. In addition, there are several reference sources you may wish to add to your library over time:
Professional Practice 101:(http://www.amazon.com/dp/0471683663/ref=rdr_ext_sb_pi_sims_1)
Architect's Essentials of Starting, Assessing and Transitioning a Design Firm:
(http://www.amazon.com/Architects-Essentials-Assessing-Transitioning-Professional/dp/0470261064/ref=pd_sim_b_6)
How to Start and Operate Your Own Design Firm:
(http://www.amazon.com/Start-Operate-Your-Design-Firm/dp/1581154747/ref=pd_sim_b_1)
Architect's Essentials of Marketing:
(http://www.amazon.com/Architects-Essentials-Marketing-Professional-Practice/dp/0471463647/ref=pd_sim_b_6)
Good luck.
the best advice I ever got when I was fresh from under grad: 'if you don't like doing something, don't do it well', and 'don't work for free'.
slightly off topic, but did any of you have work lined up before you went out on your own? i mean, do you just do all the city paperwork, get a phone listing, and wait for it to ring?
There are also some helpful worksheets, etc. at the SBA: http://www.sba.gov/
Especially if you're doing something different from traditional architectural practice, it could be a good resource to consult. Also, second on the mentor thing; local mentors in construction and real estate sound like they'd be very helpful!
Not the voice of experience here (yet), but still reading up a lot on the process.
@Due 89 - This is part of learning to run a business that I mention. Learning how to make the phone ring is one aspect of this. It's generally called Marketing.
It helps to have clients if you are going to jump ship and cut all ties with a current employer. I am going the moonlighting route. Still have a 9-5 while I build my client base and do projects after hours and with vacation time. I am also launching a second business that has nothing to do with Architecture, but will allow me to have multiple income streams so I am not relying on one business to support me.
just out of curiosity, what kind of business is it?
did you have to market yourself for the moonlighting, or did it just come from knowing people.
Keeping a lid on my other business until it is launched which is scheduled for October. But your business can be anything. If you take an inventory of your life, you will see that you are surrounded by businesses, from the plates that you eat on to the clothes that you wear to the water that you drink. And for the most part these are not big evil corporations, but people like you and me who had a dream and made it happen. Find a need or a niche and fill it. If you are successful, you will create a cash cow that will allow you to pursue your design ideas with more control and satisfaction than you could ever get working for someone else. Greater risk and greater reward.
Marketing is largely getting to know people. Introduce yourself and your firm, build a relationship and always be presenting ways for your service to fill a need for them. Ask for a project. This can be very hard for architects, because many of us are introverted. Its a skill that I've had to develop. That being said, moonlighting doesn't give a lot of time for marketing so you have to be very focused. I have picked one client to pursue to get my feet off the ground. I have already spent many hours meeting with them and presenting my capabilities and discussing future opportunities. My goal is $40k in revenues in year one. 90-100% of this will be put back into the business.
I will simply say that all the basic principle of operating an architectural firm also applies to operating a building design firm. Whether the firm starts off as a sole-proprietoriship/practitioner to multi-partner with lots of employees corporate firm.
Any basic business principles applies. Here, it is more than just project management but business management, financial management, process management and where applicable human resource management.
Building Design / Architectural practice is a business. So, it is important to charge what is fair for yourself and your costs - NOT whatever it takes to simply get the job by whoring yourself for peanuts. You need to cover costs, pay taxes, pay consultants as they may arise, employees and sub-contracted staff.
You need to think about this as a business and remain sustainable as a business. If clients can't afford an architect / building designer fee regardless of the range, then they really can't afford the project. You should NEVER be doing this for peanuts. You are a professional (regardless of licensure status), charge like a professional. You didn't get the education to work for minimum wage.
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