I'm doing a small presentation for a grad class, and I am interested in hearing your stories. Architects/Entrepreneurs, what'chu got?
With work hard to come by, more architects are expanding the services they offer. Do you work at a firm that has taken on projects outside of the traditional realm of architecture? If so, what have you done? Furniture Design, Product Design? Graphic, or renovations? Web Design?
I'm especially interested in people who work at firms who have been able to adapt to the current economy. If you work or head one of these firms, I'd love to hear your story.
About a year ago, I remember reading about Architecture5cents, and I've been interested in hearing what others are doing to stay afloat/succeed and create strong business relationships. What skills have you developed/refined in order to expand your business? Have you found a role in a niche market? Have you used your architecture degree for something tangentially related/completely unrelated to the realm of architecture?
Thanks guys, and I'm really interested in hearing some of your stories.
i'm a partner in a firm, but i don't even know how to approach making what we do into a story, newguy. we just power on, trying to keep our profit/loss at a point where we can afford to keep everything and everyone we have. so far, so good.
i don't know that it makes much sense to branch out from something at which you're highly skilled (architecture) into something in which you're less skilled (graphic, web, product, etc). if you're good at those things, you should have been marketing them and doing them anyway.
as a fairly conventional architecture firm, we find that we're just having to look farther away for work. we'll drive three hours to and from a job now where we wouldn't usually have sought that work before.
we also find that a lot more of our spending is going toward marketing. some firms will reduce this spending as much as possible in lean times, but we've made the decision that it's important to keep our name out there, to introduce ourselves to more prospective clients. this costs, both in resources and in time, but we think/hope it's what is keeping us thriving while others in our immediate vicinity have contracted.
As Steven suggests, make sure that you are fully qualified in what you are pursuing. As someone that does graphic/web/3D professionally, I too often see firms trying to do things in house or have an inexperienced 'graphic' person on hand that they've expanded the duties of. Just know what you do and do it well.
We've had to look at different markets, as most of our clients were large developers that are near dead now. Bumpy road, but by 'following the money' we've been able to use our talents/skills to move into markets where we stand out on quality and services.
Keep nimble. Learn a lot, know what you know and know what you don't know. I've structured my business to be nimble and adapt, as I've seen too many layoffs and other companies go under.
I hope things will be better soon, but I fear we'll see a larger downturn as the optimism in the stock market fades and all the other nasties come to light (latest unemployment numbers, commercial real estate, inflation/deflation, etc., etc.). I pray not, but that is what I am hearing and I've seen no signs to contradict that.
This is a transition period. I don't think we're going to see a second bottom to the depression, I think we're past the bottom...
This month, GDP went up by 3%. The bulls and the bears are fighting it out right now in the markets. Retail sales are up a bit, but I think what we are seeing is a cultural transformation so we as a society are in a mode of transition... E-retailers are seeing huge growth, and malls are lagging... I think we're going to see a move towards denser urban livng as oil prices go up, less travel, more telecommunications, regionalized resources...
Regarding firms: I don't think most architecture firms would expand into *Furniture Design, Product Design? Graphic, or renovations? Web Design?* unless they already had that business and expertise and were trying to grow it... Although I've never worked at a tiny couple man shop, I'd imagine if you were small enough and had enough ability, you could probably venture into something totally new... There are definitely enough unemployed talents out there that you could partner with... :P
I think what we are seeing though is architecture firms are trying to #1. expand into different markets, #2. going after projects they wouldn't normally go after, #3. competing on fee, value hunting... You're seeing everybody going after everything... High end residential design firms are going after small office TI projects... Alot more firms competing on government and institutional work, expanding into Science and Technology markets, Healthcare, etc... every design competition or RFQ now has 10 strong teams going after it, and they are all competing aggressively, partnering with different expertise, etc... competition is getting more fierce... Project scales are different in the market in the short term... smaller projects, lower fees, more competition... This might be the new environment for a while... Project experience and the resume and portfolio of past work is becoming more and more important too... it's just alot more competitive... Are you willling to do more for less? How can that be possible...? Streamlining, cutting costs... Making use of new technologies to increase efficiency / productive power...
One thing I do see is, I think client relationships are getting more and more essential... Business relationship building... Relationships with past clients, repeat clients, etc... Well while this has always critical, but now even more... Firms which burned alot of brdges, or even fired alot of people who had those client relationships are going under... Firms that are faring better are those who are seeing past clients start to phone them up with work as the market turns past the bottom and is moving upwards, their financial abilities are coming back and they want to make use of lower interest rates, cheaper construction costs... Clients are looking to firms they've worked with in the past sometimes because they're wanting that level of certainty... Clients are more *risk averse.... But as clients are struggling with their own budgets, they are wanting more value... Sometimes project work might come, but it might be smaller in scale, or trickles in, it might be built out in phases if clients are taking smaller steps into the pool... fee proposals may need to be more incremental, and ongoing fostering of client relationships and work needs to be ongoing before, during and after project work...
On the other hand, employment is now 10.2% in the States which is a worry... Probably much higher in our industry...
We're not out the woods yet, economic stimulus programs need to be continued...
AEC industry is also usually lagged behind the rest of the economy... Even once the economy recovers, we are going to be in a tough market for a while... We probably are not going to see relief for another half year or so or more... Just because people have access to credit and their equity is returning doesn't necessarily mean they will be starting up a bunch of new projects, or building stuff... The competitive market is just a reality, deal with it or you're out...
Sorry for being a downer guys... Keep chins up! :)
if you are not good at it it makes no sense to try branching out to make money at a game where there are already many very good practitioners to compete against. you will probably loose.
our main change is that we are becoming much more heavily involved in real-estate side of things, finding land and dealing with banks and finding investors to do projects for which we are architects. it seems the only way to move forward right now (ask me in a year if it works). but my partner is a developer so this is really an extension of work he was already involved in and not something we are tackling without expertise. if we did this without that background i think we would be eaten alive by clients and brokers. business is not a game for dilettantes. or at least it isn't right now and right here.
I'm still marketing and pitching but to little success. The biggest challenge I've had in the residential renovation market is contractors turning to Design Build teams. This started a long time ago but in the last 5 years my market has almost entirely shifted to contractor lead design build or in house design. I will have no choice but to partner up in 2010 in order to do any work at all. The contractors simply offer a more attractive model for this type of work, it resonates with today's buyers. I wrote in another thread my wife and I invested in a pizza parlor and from that we actually are doing pretty good this year. In fact the steady income is something I never had as a practicing architect. It was always kill and eat then starve then kill again. The guy we invested in wants to open a second location ( buy an existing pizza place 2 towns over). By this time next year I may be doing pizza full time but earning the same as my good years or even more. It also helps to have a spouse with a government pension ( teacher ) if your looking ahead to retirement. As the owner of a small firm retirement funds often become credit lines to make payroll.
it's off topic, but design-build is absolutely killing the architecture profession right now. i'm seeing it almost everyday - why hire an architect when my contractor can do it for me? sadly i don't believe the profession is adequately addressing the problem.
if you want to diversify your business these days, go design-build. if you can't beat 'em, join 'em.
bRink - I hope you are right. I was optimistic 6 months ago, but after seeing nothing really improve on a day to day level I've begun to pay closer attention to those that are speaking of the big picture (negatively) vs. the day traders/economists.
When I see lending actually start again, even it if is just old projects (banks have more or less frozen their distributions, so projects that were moving very nicely a year ago, or even 6 months ago, are dead).
Unemployment I've heard several say is really near 16-17%. And what happens when the extension for unemployment disappears and those people are still out of work? No more unemployment checks and no jobs, they'll all be moving home with mom and dad and leaving everything behind.
Credit is just not there and is worse now than a year ago, at least in my small piece of the world. CIT going into bankruptcy, even though it was expected to some degree, is not good news.
No credit, no growth, no jobs, no development or construction.
"The real US unemployment rate is 16 percent if persons who have dropped out of the labor pool and those working less than they would like are counted, a Federal Reserve official said Wednesday.
"If one considers the people who would like a job but have stopped looking -- so-called discouraged workers -- and those who are working fewer hours than they want, the unemployment rate would move from the official 9.4 percent to 16 percent, said Atlanta Fed chief Dennis Lockhart. "
And that was in August.
Damn, maybe I should find a cabin in the mtns and hibernate!
Orhan - If i got one of those on my door I'd be checking with the state licensing department to see if they had an architectural license, and if not I'd file a complaint for misrepresenting themselves as architects.
those design-build contractors hire architects, but they're essentially rubber stamps to ensure the design meets code and can be permitted. the contractor controls the process. that's what concerns me - the architect is really only there to take on liability. for the majority of architects, this is where the profession is headed.
design build should be the way most small firms should work any way. you end up with the control and can make changes if needed on the fly without crazy change orders.
maybe some folks just like to design.....some like to build... some like to do both....
it's really about diversifying yourself and your out-look on the fields.
at our place we get two kinds of flyers in the mail: one for "escort" services with pictures of the ladies on call (weird!) and another for gravestones and home-shrines (scary). i am often left wondering what kind of demographic the census has turned up for my area. It must be quite a mix.
jump - what makes you say that? If they are a contractor who doesn't have an architecture license but claiming they can provide architectural services they are endangering the health safety and welfare of the public, plus providing competition to me and my business without being properly accredited. We as a profession never defended the language of architecture in relation to IT jobs and now trying to reclaim our title would be a lost cause. If we start letting unlicensed individuals in the construction industry get away with saying they provide architectural services then pretty soon our licenses and education will mean nothing.
to provide architectural work is not the same as claiming you are a licensed architect. they probably have an architect working for them who stamps the stuff which makes it legal.
Why can't they provide architectural services? You don't need to be an architect to provide those services, you just need to be licensed to do the actual work.
And this is silly semantics, anyway. Does a builder provide architectural services? He designs and builds a house for someone, or many homes, is that not "architectural services"?
Actually, in Virginia to advertise that you provide "architectural" work means that you are claiming to be an architect. The use of any form of the word architecture or its derivatives is protect and limited to the use by an individual licensed by the state or a company with a business license to practice architecture.
Randomized - they would still need to be registered as a licensed entity with the Virginia Department of Professional and Occupational Regulation and have a license to practice architecture in the state.
trace - no, its not the same according to the law. Depending on your state, in most places single family structure under 5,000 square feet is not considered architecture and required to be stamped and signed. It is instead called "home building" and "home designing". Only a licensed architect working as a sole practitioner or a licensed architectural firm can provide "architectural services", anyone else can only provide "design services". "Architectural" implies a higher level of understanding of codes as well as design, and as such a license is required to be able to call your work "architectural" to guarantee that you meet the minimal standards of care.
Nov 9, 09 12:38 pm ·
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Architecture, and then some...
I'm doing a small presentation for a grad class, and I am interested in hearing your stories. Architects/Entrepreneurs, what'chu got?
With work hard to come by, more architects are expanding the services they offer. Do you work at a firm that has taken on projects outside of the traditional realm of architecture? If so, what have you done? Furniture Design, Product Design? Graphic, or renovations? Web Design?
I'm especially interested in people who work at firms who have been able to adapt to the current economy. If you work or head one of these firms, I'd love to hear your story.
About a year ago, I remember reading about Architecture5cents, and I've been interested in hearing what others are doing to stay afloat/succeed and create strong business relationships. What skills have you developed/refined in order to expand your business? Have you found a role in a niche market? Have you used your architecture degree for something tangentially related/completely unrelated to the realm of architecture?
Thanks guys, and I'm really interested in hearing some of your stories.
i'm a partner in a firm, but i don't even know how to approach making what we do into a story, newguy. we just power on, trying to keep our profit/loss at a point where we can afford to keep everything and everyone we have. so far, so good.
i don't know that it makes much sense to branch out from something at which you're highly skilled (architecture) into something in which you're less skilled (graphic, web, product, etc). if you're good at those things, you should have been marketing them and doing them anyway.
as a fairly conventional architecture firm, we find that we're just having to look farther away for work. we'll drive three hours to and from a job now where we wouldn't usually have sought that work before.
we also find that a lot more of our spending is going toward marketing. some firms will reduce this spending as much as possible in lean times, but we've made the decision that it's important to keep our name out there, to introduce ourselves to more prospective clients. this costs, both in resources and in time, but we think/hope it's what is keeping us thriving while others in our immediate vicinity have contracted.
As Steven suggests, make sure that you are fully qualified in what you are pursuing. As someone that does graphic/web/3D professionally, I too often see firms trying to do things in house or have an inexperienced 'graphic' person on hand that they've expanded the duties of. Just know what you do and do it well.
We've had to look at different markets, as most of our clients were large developers that are near dead now. Bumpy road, but by 'following the money' we've been able to use our talents/skills to move into markets where we stand out on quality and services.
Keep nimble. Learn a lot, know what you know and know what you don't know. I've structured my business to be nimble and adapt, as I've seen too many layoffs and other companies go under.
I hope things will be better soon, but I fear we'll see a larger downturn as the optimism in the stock market fades and all the other nasties come to light (latest unemployment numbers, commercial real estate, inflation/deflation, etc., etc.). I pray not, but that is what I am hearing and I've seen no signs to contradict that.
This is a transition period. I don't think we're going to see a second bottom to the depression, I think we're past the bottom...
This month, GDP went up by 3%. The bulls and the bears are fighting it out right now in the markets. Retail sales are up a bit, but I think what we are seeing is a cultural transformation so we as a society are in a mode of transition... E-retailers are seeing huge growth, and malls are lagging... I think we're going to see a move towards denser urban livng as oil prices go up, less travel, more telecommunications, regionalized resources...
Regarding firms: I don't think most architecture firms would expand into *Furniture Design, Product Design? Graphic, or renovations? Web Design?* unless they already had that business and expertise and were trying to grow it... Although I've never worked at a tiny couple man shop, I'd imagine if you were small enough and had enough ability, you could probably venture into something totally new... There are definitely enough unemployed talents out there that you could partner with... :P
I think what we are seeing though is architecture firms are trying to #1. expand into different markets, #2. going after projects they wouldn't normally go after, #3. competing on fee, value hunting... You're seeing everybody going after everything... High end residential design firms are going after small office TI projects... Alot more firms competing on government and institutional work, expanding into Science and Technology markets, Healthcare, etc... every design competition or RFQ now has 10 strong teams going after it, and they are all competing aggressively, partnering with different expertise, etc... competition is getting more fierce... Project scales are different in the market in the short term... smaller projects, lower fees, more competition... This might be the new environment for a while... Project experience and the resume and portfolio of past work is becoming more and more important too... it's just alot more competitive... Are you willling to do more for less? How can that be possible...? Streamlining, cutting costs... Making use of new technologies to increase efficiency / productive power...
One thing I do see is, I think client relationships are getting more and more essential... Business relationship building... Relationships with past clients, repeat clients, etc... Well while this has always critical, but now even more... Firms which burned alot of brdges, or even fired alot of people who had those client relationships are going under... Firms that are faring better are those who are seeing past clients start to phone them up with work as the market turns past the bottom and is moving upwards, their financial abilities are coming back and they want to make use of lower interest rates, cheaper construction costs... Clients are looking to firms they've worked with in the past sometimes because they're wanting that level of certainty... Clients are more *risk averse.... But as clients are struggling with their own budgets, they are wanting more value... Sometimes project work might come, but it might be smaller in scale, or trickles in, it might be built out in phases if clients are taking smaller steps into the pool... fee proposals may need to be more incremental, and ongoing fostering of client relationships and work needs to be ongoing before, during and after project work...
On the other hand, employment is now 10.2% in the States which is a worry... Probably much higher in our industry...
We're not out the woods yet, economic stimulus programs need to be continued...
AEC industry is also usually lagged behind the rest of the economy... Even once the economy recovers, we are going to be in a tough market for a while... We probably are not going to see relief for another half year or so or more... Just because people have access to credit and their equity is returning doesn't necessarily mean they will be starting up a bunch of new projects, or building stuff... The competitive market is just a reality, deal with it or you're out...
Sorry for being a downer guys... Keep chins up! :)
what steven says rings true to me too.
if you are not good at it it makes no sense to try branching out to make money at a game where there are already many very good practitioners to compete against. you will probably loose.
our main change is that we are becoming much more heavily involved in real-estate side of things, finding land and dealing with banks and finding investors to do projects for which we are architects. it seems the only way to move forward right now (ask me in a year if it works). but my partner is a developer so this is really an extension of work he was already involved in and not something we are tackling without expertise. if we did this without that background i think we would be eaten alive by clients and brokers. business is not a game for dilettantes. or at least it isn't right now and right here.
I'm still marketing and pitching but to little success. The biggest challenge I've had in the residential renovation market is contractors turning to Design Build teams. This started a long time ago but in the last 5 years my market has almost entirely shifted to contractor lead design build or in house design. I will have no choice but to partner up in 2010 in order to do any work at all. The contractors simply offer a more attractive model for this type of work, it resonates with today's buyers. I wrote in another thread my wife and I invested in a pizza parlor and from that we actually are doing pretty good this year. In fact the steady income is something I never had as a practicing architect. It was always kill and eat then starve then kill again. The guy we invested in wants to open a second location ( buy an existing pizza place 2 towns over). By this time next year I may be doing pizza full time but earning the same as my good years or even more. It also helps to have a spouse with a government pension ( teacher ) if your looking ahead to retirement. As the owner of a small firm retirement funds often become credit lines to make payroll.
it's off topic, but design-build is absolutely killing the architecture profession right now. i'm seeing it almost everyday - why hire an architect when my contractor can do it for me? sadly i don't believe the profession is adequately addressing the problem.
if you want to diversify your business these days, go design-build. if you can't beat 'em, join 'em.
we get two or three of these put on our door knob every week.
bRink - I hope you are right. I was optimistic 6 months ago, but after seeing nothing really improve on a day to day level I've begun to pay closer attention to those that are speaking of the big picture (negatively) vs. the day traders/economists.
When I see lending actually start again, even it if is just old projects (banks have more or less frozen their distributions, so projects that were moving very nicely a year ago, or even 6 months ago, are dead).
Unemployment I've heard several say is really near 16-17%. And what happens when the extension for unemployment disappears and those people are still out of work? No more unemployment checks and no jobs, they'll all be moving home with mom and dad and leaving everything behind.
Credit is just not there and is worse now than a year ago, at least in my small piece of the world. CIT going into bankruptcy, even though it was expected to some degree, is not good news.
No credit, no growth, no jobs, no development or construction.
"The real US unemployment rate is 16 percent if persons who have dropped out of the labor pool and those working less than they would like are counted, a Federal Reserve official said Wednesday.
"If one considers the people who would like a job but have stopped looking -- so-called discouraged workers -- and those who are working fewer hours than they want, the unemployment rate would move from the official 9.4 percent to 16 percent, said Atlanta Fed chief Dennis Lockhart. "
And that was in August.
Damn, maybe I should find a cabin in the mtns and hibernate!
Someone please provide contradictory data!
Orhan - If i got one of those on my door I'd be checking with the state licensing department to see if they had an architectural license, and if not I'd file a complaint for misrepresenting themselves as architects.
those design-build contractors hire architects, but they're essentially rubber stamps to ensure the design meets code and can be permitted. the contractor controls the process. that's what concerns me - the architect is really only there to take on liability. for the majority of architects, this is where the profession is headed.
power tools....design..ideas... knowledge.....
design build should be the way most small firms should work any way. you end up with the control and can make changes if needed on the fly without crazy change orders.
maybe some folks just like to design.....some like to build... some like to do both....
it's really about diversifying yourself and your out-look on the fields.
i am sorry to hear you say that, s.selophane.
at our place we get two kinds of flyers in the mail: one for "escort" services with pictures of the ladies on call (weird!) and another for gravestones and home-shrines (scary). i am often left wondering what kind of demographic the census has turned up for my area. It must be quite a mix.
jump - what makes you say that? If they are a contractor who doesn't have an architecture license but claiming they can provide architectural services they are endangering the health safety and welfare of the public, plus providing competition to me and my business without being properly accredited. We as a profession never defended the language of architecture in relation to IT jobs and now trying to reclaim our title would be a lost cause. If we start letting unlicensed individuals in the construction industry get away with saying they provide architectural services then pretty soon our licenses and education will mean nothing.
to provide architectural work is not the same as claiming you are a licensed architect. they probably have an architect working for them who stamps the stuff which makes it legal.
Why can't they provide architectural services? You don't need to be an architect to provide those services, you just need to be licensed to do the actual work.
And this is silly semantics, anyway. Does a builder provide architectural services? He designs and builds a house for someone, or many homes, is that not "architectural services"?
Actually, in Virginia to advertise that you provide "architectural" work means that you are claiming to be an architect. The use of any form of the word architecture or its derivatives is protect and limited to the use by an individual licensed by the state or a company with a business license to practice architecture.
Randomized - they would still need to be registered as a licensed entity with the Virginia Department of Professional and Occupational Regulation and have a license to practice architecture in the state.
trace - no, its not the same according to the law. Depending on your state, in most places single family structure under 5,000 square feet is not considered architecture and required to be stamped and signed. It is instead called "home building" and "home designing". Only a licensed architect working as a sole practitioner or a licensed architectural firm can provide "architectural services", anyone else can only provide "design services". "Architectural" implies a higher level of understanding of codes as well as design, and as such a license is required to be able to call your work "architectural" to guarantee that you meet the minimal standards of care.
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