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Architecture Firm Business Plan

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NW Architecture

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

NW Architecture will be an architectural firm specializing in residential, commercial and industrial architecture in domestic and international markets based out of the Bay Area near San Francisco, California. The firm will provide architectural services using technologically superior processes, providing greater value for clients and enhanced design and construction.

The target client is segmented into four categories; home owners, developers, government, and contractors. NW Architecture’s competitive edge will be the knowledge of digital-based design resources. Superior customer service will also be a point of firm differentiation.

First year sales are expected to reach $102,000 and increase to $500,000 by the third year of operation. We will be profitable within three years of starting.

The most significant challenges ahead include securing a suitable location, establishing the initial client base, and ultimately positioning the firm to be able to have a presence in a larger, global market.

This business plan outlines the objective, focus, and implementation of this start-up firm.

1.1 Mission

NW Architecture offers a new type of digital interactive media for both the client and the builder. This media will clearly show the client and the builder exactly what the design will look like and the method of construction.

With this new form of media the client doesn’t have to know anything about architectural graphics or terminology (floor plans, sections, elevations & construction documents) to have a clear understanding of what the end result will look like. This is possible through the use of computer-rendered images and interactive video.

This media will be taken one step further by using it in the construction documents as well. The builder will be provided with an interactive video rendering of the entire building containing both visual photographic quality images and construction specs. Every last detail will be worked out in three dimensions in such a way that anyone who knows how to use a computer will be able to access and understand this new means of architectural presentation.

1.2 Keys to Success

• Provide a service that is technologically superior to the competition’s.
• Utilizing a diverse staff of architects to provide a wide variety of product styles.
• A large array of global connections.

1.3 Objectives

• Sales of $500,000 in Year 3 and $700,000 by Year 4.
• Market expansion of 20% per year via the Internet.
• Creating new niche in market by Year 4 of three dimensional construction documents and interactive digital presentation to clients.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

NW Architecture will provide a service of architectural design via digital media to the limits of technology. This approach will offer optimal efficiency to the firm and superior value, design processes, and construction methods to the client.

2.1 Company Ownership

NW Architecture will be created as a California corporation based in the Bay Area near San Francisco. It will be owned by its principal investor and operator, Nathan Sawyer.

2.2 Start-up Summary

NW Architecture’s start-up costs total $36,540. The most significant purchases needed are a blueprint machine, plotter, and drafting supplies. Nineteen thousand dollars is needed in cash to sustain the business for the first year to cover rent and wages until a profit is made.

2.3 Company Locations and Facilities

The interim office of NW Architecture will be located in Walnut Creek, California until dedicated office space is secured.

NW Architecture will provide many levels of service to cater to large and small corporations, along with making it affordable for middle and upper socioeconomic classes.

3.1 Service Description

In order for NW Architecture to provide this new innovative service of digital media, the company will use high speed computers running programs such as AutoCad and Form-Z. To keep up with changes in technology, NW Architecture will investigate all up and coming software related to digital 3-D design to stay at the forefront of the market.  Again, this is a key strategic component to differentiate the firm and to optimize productivity and efficiency.

Market Analysis Summary how to do a market analysis for your business plan.">

NW Architecture will provide it’s service to home owners who are looking to remodel, as well as developers, contractors and government agencies in the domestic and international markets. Although we are going to cater to a relatively broad scope of customers, the company will decide what the target market is based on sales and trends experienced in the initial months of operation.

4.1 Market Segmentation

Potential clients for NW Architecture’s market is broken down into four categories: home owners, developers, government, and contractors. Home owners are the largest group based on shear population and this will be emphasized in all of the firm’s marketing and promotional efforts. Targeting the remaining three groups will be dependant upon establishing meaningful relationships, and responding and qualifying for request for proposals.

4.2 Service Business Analysis

The architecture business across the country is primarily made up of small- to mid-sized firms specializing in a particular architectural type. But there are also a few large firms that have almost dominated the design of large commercial and industrial facilities.  NW Architecture’s main competitors will be the larger firms.  The reason for this is that the larger firms have more capital to work with, which enables them to keep up with technological changes much quicker than a small firm.

Strategy and Implementation Summary

In the first year of business, NW Architecture will focus on the bay area in California. As the firm grows, sales will expand throughout California and across the country, eventually spreading worldwide.

5.1 Sales Strategy

“Sales” in this business is a direct result of exceptional client service. It is based on the firm’s image and the referrals that result. The more clients this company pleases, the more referrals are given. We will work to provide a positive experience in all cases so our clients will refer and return to us for future work as well.

5.1.1 Sales Forecast

Sales are broken down into three categories: design, production, and construction. These three categories put together make up one architecture project. The totals for each project are based on a 10% cut from the total construction costs of each job. The following table and chart provides an overview of our forecast sales.  Actual sales could vary depending on the project size and budget.

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5.2 Competitive Edge

This company will have a competitive edge over both the larger and smaller firms because it will be composed of the new generation of architects which are fluent in the digital world. Many firms today employ an older generation of architects which find the computer a mystery, and those that do use the computer only have the ability to design in 2-D.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

This company will start with one AutoCAD/Form-Z architect and the founder. In August of 2007, a clerical position will be added. By 2010, Other CAD/Form-Z architects will be hired to compensate the increased work load.

6.1 Personnel Plan

The following table summarizes our personnel expenditures for the first three years of operation.

Financial Plan investor-ready personnel plan .">

NW Architecture will increase growth and technology with cash flow as it increases through the years. Further money will be set aside to pay for further consulting as needed.

7.1 Important Assumptions

The annual assumptions made in the following table are based on a stable economy. We will adjust these assumptions as changes occur in the now tumultuous ecomony the Bay Area is experiencing.

7.2 Key Financial Indicators

The following benchmark chart indicates our key financial indicators for the first three years.

7.3 Break-even Analysis

The following chart and table summarize our break-even analysis.

7.4 Projected Profit and Loss

Net profit is virtually nonexistent for the first two years of operation, with respectable increases after that time. Our projected profit and loss is shown on the following table, with sales starting at $102,000 for the first year and climbing to $500,000 the third year.

7.5 Projected Cash Flow

Cash flow is vital to the well being of this company because of the duration of payment. The following chart and table below show cash flow projections.

7.6 Projected Balance Sheet

The following table shows our projected Balance Sheet and net worth over the next three years.

7.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7383, Independent Artists (including Architects), are shown for comparison.

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Architecture Business Plan Template

Written by Dave Lavinsky

Architecture Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their architecture firms. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an architecture business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Architecture Business Plan?

A business plan provides a snapshot of your architecture business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Architecture Firm

If you’re looking to start an architecture business, or grow your existing firm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your firm in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Architecture Businesses

With regards to funding, the main sources of funding for an architectural firm are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the bank will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for architecture firms.

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How to write a business plan for an architectural firm.

If you want to start an architecture business or expand your current one, you need a business plan. Below we detail what you should include in each section of your architecture firm business plan template.

Executive Summary

Your executive summary provides an introduction to your architecture firm business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of firm you are operating, and its status. For example, are you a startup, do you have a firm that you would like to grow, or are you operating a firm in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the architecture industry. Discuss the type of architecture business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of firm you are operating.

For example, you might operate one of the following types of architecture firms:

• Residential Architecture : this type of architecture business will focus on designing and developing homes. These architects collaborate with homeowners, builders and developers and design various types of houses.
• Commercial Architecture: this type of architecture specializes in projects for businesses entities. The most common non-residential building projects are office buildings, though hospitals are a close second.
• Municipal and Historical Architecture: this type of architecture company works on local government buildings or focuses on historic building restorations.

In addition to explaining the type of architectural firm you will operate, the Company Analysis section of your architecture firm business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start your own business?
• What architectural services will you provide?
• What milestones have you achieved to date? Milestones could include the number of buildings designed, number of positive reviews, number of projects completed, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the architecture industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the architecture industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your business plan:

• How big is the architecture industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your architectural firm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your architecture firm business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners, governments, businesses, contractors, developers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of architectural firm you operate. Clearly, a homeowner would respond to different marketing promotions than a local government, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most architecture firms primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other architecture firms.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes interior designers, home builders, and construction managers. You need to mention such competition as well.

• What types of customers do they serve?
• What types of architecture services do they specialize in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a wider variety of architectural services?
• Will you provide special discounts or perks for customers?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an architecture firm business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of architecture company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to architectural services or products, will you provide other services such as interior design consultations or landscape planning?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the architectural services you offer and their prices.

Place : Place refers to the location of your architecture company. Document your location and mention how the location will impact your success. For example, is your firm located in a busy commercial district, an upscale office building, etc.? Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your firm, including marketing your business, working on current projects, preparing for upcoming projects, and overseeing the entire project.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to design your 100 th building, or when you hope to reach $X in revenue. It could also be when you expect to expand your firm to a new city or expand your architectural services.  

Management Team

To demonstrate your architecture firm’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in architecture. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in overseeing construction projects or successfully running their own architecture or engineering businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your architecture business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an architecture business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or an overview of upcoming projects.  

Putting together your own business plan for your architecture company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert architecture firm business plan; download it to PDF to show banks and investors. You will really understand the architecture industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow your own business.  

Architecture Firm Business Plan FAQs

What is the easiest way to complete my architecture business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Architecture Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of architecture business you are operating and the status; for example, are you a startup, do you have an architecture business that you would like to grow, or are you operating a chain of architecture businesses?

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Architecture Business Plan

Starting an architecture business can be a lucrative venture, but the process of starting a business may feel complex and overwhelming to get started.

You should thoroughly understand the legal regulations, client acquisition strategies, and industry and business dynamics before you start crafting designs.

Having a foolproof business plan will not only help you understand your business better but will also play a key role in raising capital for your business.

Need help writing a business plan for your architecture business? You’re at the right place. Our architecture business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How To Write An Architecture Business Plan?

Writing an architecture business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Architecture services:.

Highlight the architecture services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Residential Architecture
• Commercial Architecture
• Landscape Architecture
• Interior Designing
• Industrial Architecture

Describe the legal structure of your architecture company, whether it is a sole proprietorship, LLC, partnership, or others.

Mission Statement:

Business history:.

If you’re an established architecture service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Competitive analysis:, market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your architect business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the architecture services your business will offer. This list may include services like,

• Architectural design
• Site analysis and planning
• Construction documentation
• Interior design
• Sustainable design and green building
• Urban design

Describe each service:

Quality measures.

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your architecture plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your architecture firm business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your architecture business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for architecture, such as computer hardware and CAD/BIM software, large format printers, presentation equipment, measuring tools, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your architecture business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your architecture services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more.These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the architecture industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your architectural firm business plan should only include relevant and important information supporting your plan’s main content.

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This sample architecture business plan will provide an idea for writing a successful architecture plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our architecture business plan pdf .

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Frequently asked questions, why do you need an architecture business plan.

A business plan is an essential tool for anyone looking to start or run a successful architecture business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your architecture company.

How to get funding for your architecture business?

There are several ways to get funding for your architecture business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your architecture business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your architecture business plan and outline your vision as you have in your mind.

What is the easiest way to write your drone business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any architecture business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Write a Killer Business Plan: Your Step-by-Step Guide

By Danine Alati

All products featured on Architectural Digest are independently selected by our editors. However, when you buy something through our retail links, we may earn an affiliate commission.

If you're wondering how to write a business plan, you’ve likely been considering launching your own design firm for quite a while. You have a ton of ideas—you’ve seen how others have done it, and you’re ready to take a crack at striking out on your own. But where to begin? When getting your new business off the ground, one of your initial steps should be learning how to write a business plan. It’s crucial to structure your ideas formally into a road map for your firm’s success. If you plan to seek funding for your company, you’ll need to draft a traditional business plan; if you’re self-funding, a simple outline will suffice. Scroll on to find AD PRO’s guide, filled with strategies and details on what to include.

Typically, business plans fall into one of three categories:

1. A one-page business plan

This document summarizes your business goals in a simplified format. It’s ideal for introducing your concept to potential investors, who may not have time to peruse a lengthy document. This easy-to-read format, viewable at a glance, is perfect for initial meetings, and it offers a substantial jumping-off point—though you may need a more detailed plan in the future.

2. A lean startup plan

Slightly longer than the one-page plan, this one includes a summary and a bulleted list that contains your firm’s financial information, business strategies, metrics, and forecasts. Since this type of business plan mainly functions as an internal tool, it’s not necessary to include all the sections and information of a formal traditional business plan (see below). This simple-to-navigate five- to 10-page document should contain your strategy, the tasks you need to complete to achieve your goals and their due dates, projected sales, spending, and cash flow. It’s advisable to update this plan regularly (at least twice a year), as it is intended to guide the growth of your company—and help keep all internal members of your team in the loop. As such, it should evolve organically as your business does.

3. An external business plan (a.k.a. a traditional standard plan)

You'll need to create a more formal business plan if you intend to share company information with key players: potential investors to fund your endeavor, banks to support loan applications, or even future employees. Since you’ll be using this document to explain your strategies for your business with those who may finance or join your company, you’ll want to clearly delineate your plan in detailed sections.

Where to begin?

Your business plan is a living document that will evolve with your business. It should plot out how your business will operate, state your goals, and precisely express your vision for your company. Regardless of the type of plan you opt to create, check out these solid tips before you begin drafting the document.

1. Keep it simple

No need to complicate the already stressful process of starting your own business by constructing a convoluted plan. Create a simple bulleted plan that cites goals and your strategies for achieving them, then update it as your company grows. If you choose to draft a traditional business plan, keep it to less than 40 pages. If you’re having trouble distilling the essence of your company down to 30-35 pages, consider hiring an expert to help you write it. Fit Small Business lists Wise Business Plans as its top-choice service, but keep in mind this argument about why it’s often better to do the writing yourself.

Even if you go with a traditional, external business plan, keep it concise. Cut to the chase as quickly and efficiently as possible—you don’t want to lose a potential investor out of boredom! And don’t spend too much time making your business plan pretty. As a designer, your instinct may be to focus on stunning graphics, and while they can indeed enhance the appearance of the document, the actual content is what’s most important. Use graphs, charts, and photos to break up the text and illustrate your message without obscuring it.

2. Know your audience

Tailor your business plan to suit your needs, and craft it so that the intended audience can clearly understand it. Avoid using lingo only an A&D professional would understand—especially if you intend to use the plan as a pitch to investors or for a loan application. Use straightforward rather than insider-y language to avoid alienating your target audience.

3. Know your competition

Never speak disparagingly about your competitors. Get familiar with who they are, know what they are doing well (and poorly), and make it evident in your business plan how you will distinguish your brand from the rest. What makes your company stand out against the competition? Perhaps your firm offers online design services, specializes in custom millwork, or provides clients with assistance from a personal account director. Highlight whatever sets you apart transparently in your business plan.

4. Keep it real

Keep your expectations in check and never inflate your financials. While we encourage you to think positively and believe that your business will succeed financially, do not overestimate your earning potential and revenue forecast. What services will you offer, and how much will you bill for them? What do comparable companies bill for similar services? Make your projections realistic, particularly if you are seeking funding. Explain your business model and how you plan to earn money, as well as the reasoning behind your figures. And be certain to root all financial information in solid facts.

5. Work backward

Figure out what you want to accomplish and by what date, and then backtrack from there. Consider: Where would you like your company to be financially one year from now? What revenue goals would you like to achieve by that time? Then determine what you must do in 12 months, six months, and three months to arrive at your objective in a timely fashion. Work these milestones into your business plan. You'll be pleased as you see results accumulate throughout the year—even more so when you realize your objective by your firm’s one-year anniversary.

6. Just get it started

Don’t let the task of drafting your business plan paralyze you. If you sit down to write and come up empty, start jotting down your ideas—remembering what inspired you to launch your company in the first place—and worry about shaping your formal business plan later.

If it helps you to get started, begin with a simple one-page plan; you can always use that document as an outline and go back and fill in more details later. Remember: No one knows your business better than you do. Let your passion for starting your new company motivate you as you begin writing and don’t be afraid to let that emotion to come through in the final document. It will better convey your vision and help your readers understand what your small business is all about.

The essential components of a business plan

Now that you have an idea of what type of business plan will be right for your company and understand how to approach the task, the question remains: What do you need to include in your business plan? Entrepreneurs have varying ideas on what’s essential and what you can skip. But when starting your first-ever business, consider following the advice of the U.S. Small Business Administration, and make sure that your business plan contains these nine recommended sections.

1. Executive summary

As the single most important part of your business plan, the executive summary should pique the curiosity of your audience. It should be a brief synopsis of your company’s mission, your immediate as well as long-term goals, and your strategies for attaining these goals. Make it evident what exactly your business is: What’s the product or service? Why will your company be successful? What sets it apart from the competition? What do you plan to do differently? Get this information out there immediately. Also, include basic facts about your employees, leadership team, location, and financial statistics.

Sometimes investors will ask to see only your executive summary as they consider whether or not to grant you funding. If they are intrigued by what they read, they will ask for your entire business plan. So be sure to hit the highlights in the executive summary. And while this summary appears first in the document, it’s actually smart to write it last, since it encompasses all components of your plan, whittled down to a brief synopsis. Think of it as the whole document in a nutshell. Don’t let it exceed a page or two.

2. Company overview

Here’s where you go into detail about the concept behind your business, what you do, and what you plan to accomplish. What problem does your firm address? And what are your solutions? What target audience will your small business serve? Name specific businesses, design firms, organizations, and/or clients. Explain what you have to offer and what you’re selling. Be sure to use concrete examples and eliminate superfluous language. Outline what makes your company distinct from the competition. You’ve touched on this point in the executive summary, but go into specific detail in this section. It’s the place where you can toot your own horn—tastefully and succinctly, of course—so take advantage of the opportunity, play up your strengths, and sell your company.

3. Market research

Demonstrate that you understand your industry by doing comprehensive market analysis. Look for emerging trends and themes in the marketplace. Have a crystal-clear picture of who your customer is. Research your potential competitors, see what their strengths and weaknesses are, and determine how you can create more effective solutions. It’s critical that you stay on top of what the competition is offering.

When attempting to discern who your target audience is and who your ideal consumers are, a strong small business plan will identify market segments, the size of each, and additional segments that could be interested in your business. The typical way to distinguish market segments is to use a method called the TAM, SAM, and SOM approach, defined as:

• TAM: Your Total Available or Addressable Market. This group includes everyone you wish to reach with your product/service.

• SAM: Your Segmented Addressable Market or Served Available Market. This is the portion of the total available market you will target.

• SOM: Your Share of the Market. This is a category within your SAM that you will realistically reach in the early days of your business.

Once you establish your market segments, figure out who your ideal customer, or “buyer persona,” is within each segment. In this exercise, you should attribute specific demographics to your buyer persona—for example, a name, gender, income level, and preferences in the marketplace. This fictitious persona of your ideal customer will help you to better understand your consumer base, create stronger marketing and sales tools targeted to your consumer, and be able to attract the right type of client to your business.

4. Organization and management

Delineate your company’s business structure—whether it’s set up as a sole proprietorship, partnership, LLC, C-corp, or S-corp. Explain who is in charge, list your employees by job function, and elaborate on each person’s responsibilities. If you already have staff in place, include employees’ names and experiences, describe what each of your workers is contributing to your small firm, and how each will help it succeed. This is your opportunity to demonstrate how you’ve amassed a stellar team or explain your strategy for attracting and retaining one.

You know the old axiom: A company is only as good as its employees. Kathryn Minshew, CEO and cofounder of career-planning platform The Muse, elaborates on this tenet in a widely circulated piece of advice that was published in Colleen DeBaise's book, Inc.: Start a Successful Business : “The hard part is actually building the team that will embody your company culture and propel you forward.” This is a critical point: You must hire good people who understand your vision and who are dedicated to helping your small business flourish.

5. Description of products or services

Outline the products or services your company offers as specifically as possible. Focus first on what you will initially bring to market, rather than long-term plans. Though it’s exciting to speculate on just how big your company can become—after all, it’s that type of guts, vision, and big thinking that enabled you to launch your own business in the first place—there's no point in focusing too heavily on the distant future in the initial business plan.

You do, however, need to illustrate exactly what your company is offering, so spend a few paragraphs expanding on your concept for products and services. Discuss your service or product’s life cycle, be very specific about how it will impact consumers, and divulge whether you plan to file for copyrights or patents. Also, describe the research and development you plan to do to enhance your offerings in the near future.

6. Marketing and sales

Spelling out your complete sales and marketing strategy will provide you with a point of reference for the future. You’ll likely refer to this section and continue to tweak and update it as your company grows. Here, discuss how you plan to reach your target audience. Be sure that you have your buyer persona explicitly defined before doing this (see number 3 above).

Within the marketing strategy portion of your business plan, delineate how you plan to position your company to consumers and how you will deliver the goods and/or services you will offer. Include a positioning statement that expresses your essential value proposition and distinguishes your competitive edge. According to Bplans , a free online resource for entrepreneurs, your positioning statement needn’t be lengthy; Bplans recommends using this simple formula to construct your statement: “For [target market description] who [target market need], [this product] [how it meets the need]. Unlike [key competition], it [most important distinguishing feature].”

This sales and marketing section is the place to address product and service pricing. Although there is no exact science to setting your pricing, consider the following:

• You must break even. Plan to charge customers enough to cover your costs in creating and delivering goods or services.

• Plan for primary and secondary profit center pricing. You may decide to sell your product or services at cost or less-than-cost to offer an appealing price— but then require support or maintenance that would push the price over the amount that would make it profitable for you.

• Adhere to market rate. Your pricing should be aligned with what your audience expects. You’ll walk a fine line here: You don’t want to alienate potential customers with high pricing, yet you shouldn’t devalue your offerings with pricing that’s too low.

How you will promote and advertise your business should also be addressed in this section. Do you plan to rely on traditional advertising avenues, such as print media? Would an online platform better suit your business and reach your target audience? How about public relations? Outline how you'll get the word out about your new company.

You can also market yourself online through social media channels. It’s a business necessity to have an online presence, and deciding which social media platform will serve you best depends on your target audience. Consider your consumer demographic when deciding on where to focus your time and efforts. You’ll want to make sure to keep your brand message and voice consistent across all marketing, advertising, and promotional materials—in print and online.

7. Funding request

If you’re using your plan to seek funding, this section is where you clearly express how much you need and how you will use it. Will you opt for debt or equity? This is a question you should ponder ahead of time: Are you willing to relinquish equity in your company for the funds to get your business off the ground? What are the terms you’re seeking? What is the length of time in business that your request will cover? Make note of collateral you have to put against loans, if any. Be prepared to explain to potential investors in depth how you will use their funds. Paint them a picture in broad strokes, and highlight the major areas that need funding (for example, purchasing an inventory, funding a marketing budget, etc.).

8. Financial projections

Follow up your funding request with a detailed explanation of future financial plans. Investors want to believe they’re making a sound decision by supporting your business. When do you plan to pay off debt? Do you intend to build up your business and then sell it? Include projections for the next five years.

Don’t fret if you do not have a solid foundation in finance. It’s not as complex to create these financial projections as you might assume. This section is where you might employ some of your design savvy to create visuals such as charts and graphs to spice up otherwise dull financial details.

Your financial forecast should include the following (this information can be projected if your business is not yet established enough to have the actual documents):

• Income statement (a.k.a., profit and loss or P&L): This document essentially shows whether you’re making money. It includes a compilation of all your numbers and data, and shows your expenses deducted from your earnings to reveal whether you’re poised to be profitable.

• Cash flow statement: This statement differs from your P&L in that it’s the record of how much money you have in the bank at any given moment. In this document, you’ll calculate cash you have plus cash you receive minus cash you pay out, which equals your total cash flow. This cash flow statement helps you to understand at what points you may be low on cash (for example, while you’re waiting for a client to pay a bill), indicating that it may not be the optimal time to spend on non-urgent expenses. This document can help you determine how much funding you may need to get your small business up and running.

• Balance sheet: This statement helps determine the net worth of your company. It subtracts your assets and equity from your liabilities to arrive at your company’s net worth. From this balance sheet, investors can see the overall financial picture of your endeavor.

9. Appendix

Here you’ll include any requested documentation, such as résumés, reference letters, credit reports, permits, licenses, contracts, patents, or other legal paperwork. It’s also where you can add any supplemental information that an investor might want or need when considering whether or not to help you with funding.

Keeping these strategies in mind, you should be ready to get started on your business plan. This documentation is essential to plotting the future of your company, so it's important to spend time on it and make sure it represents you and your business in the best way possible.

By Meaghan O'Neill

By Sarah Lyon

By Maya Ibbitson

By Jesse Dorris

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Starting an Architecture Firm: How to launch a successful new practice

• Updated: July 27, 2023

Starting an architecture firm can be an exciting yet challenging endeavor that transforms your professional life. As an architect, you may have dreamt of having your own firm, where your creativity and leadership can truly take shape, unrestricted by external influences.

However, the journey from dream to reality requires careful planning, substantial knowledge, and meticulous execution.

The purpose of this article is to provide a comprehensive guide to launching your own architecture firm . It will delve into key aspects of the process, from understanding the basics of the business and the professional requirements, to financial planning, team building, and risk management.

Remember, starting your own firm is not just about expressing your creativity and designing stunning buildings. It’s also about managing a business, handling legal requirements, acquiring and retaining clients, managing finances, and much more. So, if you’re ready to embark on this journey, read on to uncover the steps involved in starting…

Understanding the basics of an architecture firm

Before embarking on the journey of starting a firm and/or practice, it’s crucial to understand the foundational concepts that underpin such an organization. An architecture firm and practice provide professional services that extend beyond the simple design of buildings and structures.

They encompass a range of activities including conducting an architecture feasibility study and environmental impact studies, designing functional spaces , planning interior and exterior environments, and more, all while ensuring compliance with zoning laws and building codes.

The structure of an architecture firm can vary significantly based on its size and scope of work. In smaller firms, the firm owner or a small group of partners might be directly involved in every project. They would take on roles such as designing, drafting, and meeting with clients.

On the other hand, larger firms may include a variety of professionals like project managers, junior and senior architects, drafters, interior designers, and even landscape architects. These larger teams are often divided into smaller teams, each focused on different projects.

The operation of an architecture firm within the broader architecture and construction industry also needs consideration. A successful business must establish and maintain strong relationships with a network of other professionals, including civil engineers, construction managers, contractors, and more.

These connections ensure a smooth process from the designing phase to the construction and final delivery of architectural projects.

In addition, an architecture firm operates under the professional and ethical guidelines set out by industry associations such as the American Institute of Architects (AIA). The firm must comply with local, state, and federal laws, particularly in areas of building codes, health and safety regulations, and environmental standards.

Preliminary steps in starting an architecture firm

Before diving into the intricacies of establishing your own firm, it’s crucial to carefully plan and prepare. This stage lays the foundation for your business and plays a pivotal role in determining its future trajectory.

Conducting market research – The first step is to conduct thorough market research. This involves understanding the architectural landscape in your desired location, including the number and type of existing firms, their specialization areas, and the gaps in the market. Look at the potential clients in your region and their needs.

What types of buildings are in high demand? Residential, commercial, institutional? Understanding these dynamics can help you position your firm to address an unmet need in the market.

Defining your unique value proposition – Based on your market research, you should be able to define what sets your firm apart from the competition. This unique value proposition could be a particular architectural style, a focus on sustainability, an emphasis on client collaboration, or a combination of these and other factors.

It is crucial that your firm stands out in a crowded marketplace. Your unique value proposition will guide your brand, services, and overall business strategy.

Identifying your target clientele and market – Your target market will be determined by a combination of your unique value proposition and the needs you identified in your market research. Are you aiming to serve private homeowners, large corporations, government entities, or non-profit organizations?

Your target market will impact the way you structure your firm, your pricing strategy, and your marketing efforts .

Evaluating financial feasibility – Starting an architecture firm requires significant capital for software, office space, employee salaries, marketing, and more. It’s crucial to realistically estimate these costs and compare them to your projected income. Creating a financial model will provide a clearer picture of your firm’s potential profitability and the financial feasibility of starting your firm.

Building your network – Even before formally launching your firm, start networking with potential clients, contractors, suppliers, and other industry professionals. Attend industry events, join professional organizations, and leverage social media platforms to get your name out there. These relationships will be invaluable when it’s time to secure your first projects.

While these preliminary steps involve a considerable amount of work, they’re an investment in the success of your future firm. By thoroughly understanding your market, defining your unique value proposition, identifying your target clients, evaluating your financial feasibility, and building your network, you’re setting your architecture firm up for success from the very start.

Starting an Architecture Firm

Professional requirements.

Starting an architecture firm goes beyond the design and creative aspects of the profession. Architects must also be well-versed in various professional requirements that determine the legality and integrity of their practice. Here are the key professional requirements to consider when starting an architecture firm:

Licensing and registration – Before you can start practicing as an architect, you need to have the appropriate professional license. This typically involves earning a professional degree in architecture, gaining relevant experience through an internship or a similar program, and passing the Architect Registration Examination.

Licensing requirements can vary by state, so it’s crucial to understand the specific requirements in the state where you plan to set up your firm.

Professional obligations – As a professional architect, you have specific obligations to uphold, many of which are established by your state’s architecture board and professional organizations like the American Institute of Architects (AIA). These obligations may include ethical guidelines, continuing education requirements, and guidelines for professional conduct.

Contractual obligations – Running an architecture firm involves entering into various contracts, including client agreements, vendor contracts, and employment contracts. Understanding your contractual obligations is essential to ensuring the smooth operation of your firm. Make sure to have legal advice when drawing up and signing these contracts to protect the interests of your firm and prevent potential legal disputes.

Standard of care – In the field of architecture, the standard of care refers to the level of skill and diligence that a reasonably prudent architect would exercise in the same situation. As an architecture firm owner, you are obligated to provide services that meet this standard. This means staying up to date with industry trends, codes, regulations, and best practices, and ensuring that all work is done to the best of your professional ability.

Compliance with building codes and regulations – Your firm must adhere to the local, state, and federal building codes and regulations for every project it undertakes. This includes ensuring that designs are environmentally sustainable and safe, meet zoning requirements, and adhere to other regulatory standards. Keeping abreast of changes in these codes and regulations is crucial.

Building a solid business plan

A business plan is like a blueprint for your architecture firm. It outlines your business’s objectives, strategies, and financial forecasts. This document is not just important for you as the business owner but is often required by investors and financial institutions when applying for funding.

Importance of a business plan – Just as an architect wouldn’t construct a building without a detailed blueprint, an entrepreneur shouldn’t start a firm without a comprehensive business plan. This plan helps you understand your market, identify challenges, develop strategies, and chart a course for growth. It also provides a clear picture of your firm’s financial needs, projected revenue, and profitability.

Key components of a successful business plan

• Executive Summary: This section provides a brief overview of your business plan. It should include your business’s name, the services you will offer, your mission statement, and basic information about your company’s leadership team, employees, location, and history.
• Business Description: Here, you should go into more detail about your architecture firm. What type of architecture will you specialize in? Who are your target customers? What makes your firm different from others?
• Market Analysis: This section requires thorough research into your industry, market, and competitors. You should identify trends, estimate the size of your target market, and evaluate your competition’s strengths and weaknesses.
• Organization and Management: Outline your business’s organizational structure. Who are the owners and what are their roles? If you have a team, briefly describe each member’s role and experience.
• Services: Detail the architectural services your firm plans to provide. How will these services meet the needs of your target market? What are the costs involved in providing these services?
• Marketing and Sales Strategy: How will you attract and retain clients? What marketing and advertising strategies will you use? How will you approach sales? This section should provide a comprehensive view of your strategy for bringing in business.
• Financial Projections: This is one of the most critical sections of your business plan. You should provide projected income statements, balance sheets, and cash flow statements for the first few years. This will help you identify how much funding you need and when you can expect to turn a profit.

Using the business plan to secure financing or investments

A strong business plan can help you secure the necessary funding to start your architecture firm. Investors and financial institutions want to know that they’re investing in a viable business with a clear path to profitability. Your business plan should convince them that your architecture firm is a sound investment.

Additionally, your business plan isn’t a static document. As your business grows and changes, your plan should be updated to reflect new goals, strategies, and financial projections. This updated plan can be used to secure additional funding or to guide your business through its next stages of growth.

Legal considerations for starting an architecture firm

Starting an architecture firm involves navigating a variety of legal considerations to ensure your business is compliant and protected from potential legal disputes. Here are some essential legal factors to bear in mind as you establish your architecture firm.

Choosing the right business structure

The first step to starting any business, including an architecture firm, is deciding on the right legal structure. The structure you choose will impact your taxes, the amount of paperwork your business is required to do, and the personal liability you might face.

Common business structures for architecture firms include:

• Sole Proprietorship : This structure might be suitable for individual architects planning to work independently. It’s the simplest form to establish but offers no personal liability protection.
• Partnership : Ideal for two or more architects coming together to start a firm. Each partner shares the business profits, losses, and liabilities.
• Limited Liability Company (LLC) : This structure provides personal liability protection, separating your personal assets from your firm’s debts and obligations. It also offers flexibility in tax management.
• S Corporation or C Corporation : These structures might be suitable for larger firms. They offer liability protection but involve more complex management and regulatory requirements.

Consulting a business attorney or an accountant can help you select the structure that best aligns with your business goals and personal circumstances.

Understanding local regulations – Every jurisdiction will have its own set of laws and regulations that govern the operation of businesses, including architecture firms. These may include zoning laws, building codes, permit requirements, and environmental regulations. It’s essential to research these requirements thoroughly and ensure that your firm is compliant.

Licensing and certification – As an architect, you’ll need to be licensed in the state where you plan to practice. The specific requirements vary by state but generally involve education, experience, and examination components. Some states also require firms to obtain a “Certificate of Authorization” to provide architectural services.

Insurance – Insurance is a critical consideration when starting your firm. At a minimum, your firm will need professional liability insurance, which covers you in case a client claims your services caused them financial harm due to mistakes or omissions. Other types of insurance may also be necessary, such as general liability insurance, property insurance, and workers’ compensation insurance if you have employees.

Legal agreements and contracts – Finally, your architecture firm will deal with numerous legal agreements, from employment contracts to client service agreements. It’s crucial to have well-drafted contracts that outline each party’s rights and responsibilities. This not only protects your firm from potential disputes but also helps set clear expectations with clients and employees.

Financial planning for your architecture firm

Financial planning is a pivotal aspect of starting and running any business, and an architecture firm is no exception. It encompasses various dimensions, from budgeting for startup costs, developing a financial safety net, planning for ongoing expenses, to understanding project-based finances and key performance indicators.

Budgeting for startup costs – Before setting up an architecture firm, you must calculate the total cost required to start your business. This includes all necessary expenses like office rent, purchasing software and hardware, drawing materials, marketing costs, legal and accounting fees, and so on.

You should also budget for the cost of hiring staff if you plan to hire immediately. A detailed budget helps you understand the initial capital required and guides your funding decisions.

Developing a financial safety net – Creating a financial safety net is equally important. An architecture firm may not generate profits immediately after its launch. It might take a few months to years to reach a break-even point. Hence, having a safety net for at least 6 to 12 months of operation can provide financial stability during this phase.

Planning for ongoing expenses – Running a successful architecture firm comes with ongoing costs. These include staff salaries, rent, utilities, software subscriptions, taxes, insurance, marketing, and maintenance expenses. Keeping track of these costs and budgeting for them ensures that the business stays financially healthy. Regular financial reviews will help you manage your expenses effectively and identify areas for potential savings.

Understanding project-based finances – In the architecture industry, understanding project-based finances is essential. Each project has its budget, and effectively managing these budgets can significantly impact your firm’s profitability. It involves understanding the financial intricacies related to labor costs, material costs, overheads, and so on. It also includes efficiently billing your clients, tracking payments, and managing cash flow.

Key performance indicators (KPIs) – KPIs allow you to measure the financial health and success of your firm. Some critical financial KPIs for architecture firms include net profit margin, utilization rate, overhead rate, and accounts receivable aging. Regular monitoring of these KPIs will give you insights into your firm’s financial performance and help you make informed business decisions.

Assembling your team

Starting an architecture firm is not a solo endeavor; it necessitates the assembly of a competent and passionate team. An ideal team will not only complement your own skills and expertise, but also contribute fresh perspectives and specialties, ensuring a broader service offering to your clients.

Understanding the key roles in an architecture firm

To start with, it’s crucial to comprehend the key roles in an architecture firm. This typically includes architects, architectural technologists, junior designers, project managers, and administrative staff. Each role serves a unique function:

• Architects are responsible for creating designs, meeting with clients, and overseeing the overall vision of a project.
• Architectural technologists, or architectural technicians, focus on the technical and functional aspects of building design.
• Junior designers assist with drafting and rendering, often bringing fresh ideas to the design process.
• Project managers oversee the execution of projects, coordinating between various stakeholders to ensure timely and within-budget completion.
• Administrative staff handle the operational aspects of the business, such as finance, marketing, and human resources.

Hiring strategies for top talent

With an understanding of the roles required, you can then devise a hiring strategy. This process begins with crafting clear and compelling job descriptions that accurately reflect each role’s responsibilities and desired qualifications. When considering candidates, remember to evaluate both their technical skills and their cultural fit. It’s equally important that your team members can work harmoniously together and align with your firm’s values.

Furthermore, consider utilizing various hiring platforms, such as LinkedIn, architectural job boards, and industry networking events, to broaden your reach and attract a diverse range of talents.

Building a strong company culture – Creating a robust company culture is a cornerstone of successful team-building. From day one, establish a set of values and principles that will guide your team’s work. This might include a commitment to innovative design, sustainable practices, or superior client service.

In fostering a healthy work environment, it’s important to encourage open communication, collaboration, and continuous learning. Also, regularly acknowledge your team’s accomplishments and provide constructive feedback to motivate and foster their professional growth.

Ongoing staff training and development – Investing in your team’s continuous learning and professional development is key to staying abreast of industry trends and maintaining a competitive edge. This could involve facilitating in-house training sessions, encouraging participation in seminars and workshops, or providing resources for further learning.

Marketing and client acquisition

Starting an architecture firm is not just about design, it’s also about marketing your services and acquiring clients. The most successful architecture firms are those that can combine architectural brilliance with effective marketing strategies and a deep understanding of their clients’ needs.

Building a strong brand – Before you start marketing your services, you need to develop a strong brand identity. This includes your firm’s name, logo, and the overall message that you want to communicate to potential clients.

Your brand should reflect the unique selling proposition of your architecture firm. What makes your firm different from the rest? Is it your design style, your expertise in a specific area of architecture, or your approach to customer service? Use your unique selling proposition to shape your brand and make it stand out in the marketplace.

Implementing a marketing strategy

Your marketing strategy is your roadmap for attracting and retaining clients. It should include a variety of tactics, including online marketing, networking, and direct outreach.

• Online Marketing : In the digital age, a strong online presence is essential. This starts with a professionally designed website that showcases your work, introduces your team, and provides information about your services. You should also consider utilizing social media, online advertising, and content marketing to increase your online visibility. SEO (Search Engine Optimization) is a must to ensure potential clients can find you when searching for architectural services in your area.
• Networking : Building relationships is a critical part of any marketing strategy. Attend industry events, join local business organizations, and participate in community activities. The more you network, the more likely you are to meet potential clients and generate referrals.
• Direct Outreach : Don’t hesitate to reach out directly to potential clients. This might include developers, real estate agents, and other professionals in the construction industry. You can also target specific industries or types of businesses that are likely to need your services.

Developing client relationships

Once you’ve attracted potential clients, the next step is to build strong relationships with them. This starts with understanding their needs and expectations and delivering on them.

• Client Meetings : Always be prepared for client meetings. Showcase your work, provide a clear process, and convey your understanding of their project vision and requirements.
• Delivering Value : Ensure you meet project deadlines, communicate regularly, and go above and beyond to deliver exceptional service.
• Post-Project Follow-Up : Once a project is completed, maintain the relationship. Follow-up with clients to ensure they’re satisfied with the work and keep in touch to be top-of-mind for any future projects.

By developing an effective marketing strategy and focusing on client relationships, your architecture firm will be well-positioned to attract and retain the clients you need to grow and thrive.

Risk management

Managing risks is a vital aspect of running an architecture firm. Risks come in many forms, including project uncertainties, financial instability, regulatory changes, and operational mishaps, among others. This section will address how to identify potential risks in running an architecture firm and strategies for mitigating these risks. It will also highlight the importance of planning for the future and setting up contingency plans.

Risk identification – The first step in risk management is to identify potential hazards. These can be internal, such as employees leaving or financial mismanagement, or external, such as regulatory changes, market downturns, or client disagreements. Regularly conducting a risk assessment can help you identify potential threats before they become problematic. This involves scrutinizing your firm’s operations, financial position, market trends, and regulatory environment, among other aspects.

Risk mitigation strategies – After identifying potential risks, the next step is to develop mitigation strategies. One such strategy is securing professional and general liability insurance to protect against claims of professional negligence and other risks. Workers compensation and auto insurance may also be necessary, depending on your firm’s operations.

Additionally, implementing strong internal controls and governance practices can help prevent financial mismanagement and ensure operational efficiency. Regular audits, either internal or external, can further enhance this control.

Also, it’s essential to have effective human resource practices to manage the risk of losing key staff members. This might include competitive salaries, clear career progression paths, and a healthy work environment.

Lastly, diversifying your client base and service offerings can help mitigate the risk of market fluctuations. A diversified portfolio can help your firm weather economic downturns and keep revenue flowing even if one client or project falls through.

Planning for the future – Mitigating risks also involves preparing for your firm’s future. This can include succession planning to ensure a smooth leadership transition when key members retire or leave. It also entails setting aside emergency funds to cover unexpected costs or financial downturns.

Moreover, continually investing in your team’s professional development can help future-proof your firm. By keeping skills and knowledge up-to-date, your firm can adapt to industry changes and continue to deliver high-quality services.

Contingency planning – Despite your best efforts at risk mitigation, some risks may still materialize. Having a contingency plan in place allows your firm to respond quickly and effectively when things go wrong. This could involve backup plans for project delays, budget overruns, or client disagreements, for example.

To sum up…

Launching an architecture firm is a rewarding journey that combines creativity, entrepreneurial spirit, and a solid understanding of the business environment. It’s a challenging process that necessitates a significant commitment, not only to the discipline of architecture, but also to the nuances of business, legal considerations, and financial management.

Each step, from understanding the basics of an architecture firm and fulfilling professional requirements, to crafting a robust business plan and managing risk, plays an integral part in establishing a successful practice. Moreover, remember that assembling a dedicated team and building strong relationships with clients will be the backbone of your firm’s success.

Keep in mind, starting an architecture firm is not merely about pursuing economic prosperity but also about bringing value to the community through sustainable and innovative designs. It’s about creating spaces that not only meet functional needs but also enhance quality of life.

Lastly, patience is key. Your firm may not become an overnight success, but with diligence, commitment, and resilience, you can shape and mould your practice into a fulfilling and profitable venture. Draw inspiration from industry leaders and continue to learn and adapt in the face of changing market trends and client needs.

As you embark on this exciting journey of starting your own architecture firm, keep your passion for design at the heart of all you do, and watch as your firm evolves and grows over time. The road may be winding, but the destination is certainly worth the effort.

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How to write a business plan for an architecture company?

Putting together a business plan for an architecture company can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing architecture company, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for an architecture company?

• What information is needed to create a business plan for an architecture company?
• How do I build a financial forecast for an architecture company?

The written part of an architecture company business plan

• What tool should I use to write my architecture company business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write an architecture company business plan in the first place.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for an architecture company is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your architecture company to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To get visibility on future cash flows

If your small architecture company runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your architecture company's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your architecture company business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your architecture company's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed architecture company business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your architecture company has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for an architecture company, let's take a look at what information is needed to create one.

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Information needed to create a business plan for an architecture company

Drafting an architecture company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for an architecture company

As you consider writing your business plan for an architecture company, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your architecture company.

Your architecture company's market research may reveal that there could be an increased demand for sustainable materials and design elements in the near future. Additionally, research could suggest that people may prefer to work with local architects for their projects.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your architecture company.

Developing the sales and marketing plan for an architecture company

Budgeting sales and marketing expenses is essential before creating an architecture company business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and equipment needs of an architecture company

Whether you are at the beginning stages of your architecture company or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A architecture company might incur staffing costs such as salaries for architects, engineers, administrative staff, and other personnel. They might also incur costs for equipment such as design software, computers, printers, scanners, and other office equipment. Additionally, they may incur costs for things like furniture, supplies, and other materials.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your architecture company.

What goes into your architecture company's financial forecast?

The financial forecast of your architecture company's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a architecture company are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for an architecture company shows how much revenue and profit your business is expected to make in the future.

A healthy architecture company's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established architecture company.

The forecasted balance sheet of your architecture company

The projected balance sheet of your architecture company will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your architecture company projected balance sheet provides an understanding of your architecture company's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your architecture company's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your architecture company has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your architecture company business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your architecture company business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting an architecture company.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the architecture company, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your architecture company business plan, let's have a look at the written part of the plan.

The written part of an architecture company business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of an architecture company business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your architecture company's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your architecture company, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

In your architecture company business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your architecture company, you could highlight the potential for growth in the area. You may want to cite the availability of resources and infrastructure that could support the business, such as access to transportation, potential customers, and a skilled labor force. Additionally, you could emphasize the potential for increased visibility and recognition in the area, as well as the potential for expanded market share. Finally, you could mention the potential for tax benefits that may be available in the area. All of these factors could be attractive to potential financiers.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your architecture company might offer 3D modelling and design services to its customers, providing them with detailed visuals of their desired project. It could also offer construction planning, helping customers to create a timeline for their project and to plan out the materials and labor needed. Finally, you could offer technical drawings and documents, ensuring that customers have everything they need to obtain any necessary permits or approvals.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When outlining your market analysis in the architecture company business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your architecture company, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your architecture company targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include urban homeowners looking to upgrade their existing homes. These customers are often looking to add an extra room to their home, or to update existing rooms in their house to create a more modern and inviting look. They may also be interested in more comprehensive renovations, such as a complete remodel of the kitchen or bathroom.

In the competition subsection, introduce your main competitors and explain what sets your architecture company apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your architecture company.

5. The strategy section

When you write the strategy section of your architecture company business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your architecture company may face a number of risks. For example, the company could be exposed to financial risks if it fails to secure payment for its services. If the company takes on too many projects, it might not have the capacity to fulfill them all, resulting in a loss of reputation. It is important to prepare for these potential risks by taking steps to ensure payment, and by managing the workload in a responsible way.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your architecture company.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your architecture company's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You may have key assets such as blueprints for designs of buildings and other architectural structures. These blueprints could be protected as Intellectual Property (IP) if your company has a patent for the designs. Additionally, your company might have an extensive library of design and engineering documents, which could also be protected as IP.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of an architecture company business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my architecture company's business plan?

In this section, we will be reviewing the two main options for writing an architecture company business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your architecture company's business plan

Using online business planning software is the most efficient and modern way to create an architecture company business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your architecture company's business plan

Outsourcing your architecture company business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the architecture company business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your architecture company's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your architecture company business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your architecture company business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
• Having an up-to-date business plan is the only way to keep visibility on your architecture company's future cash flows.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your architecture company. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

• In-depth business plan structure
• Example and tips to present your management team in a business plan
• Guide to milestones in your business plan
• How to write the suppliers section of your business plan?
• Key steps to write a business plan?
• Free business plan template

Know someone who owns or wants to start an architecture company? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Aug 15 2017

How to Write a Business Plan for Your Architecture Firm in 60 Minutes or Less

A simple business plan for architects.

No one told me that I needed to know how to run a business. I’m an architect. I just need to tack up my shingle, design great buildings and clients will come knocking. Right?

Maybe… but whether clients come knocking or not, its not so simple to keep them knocking.

The solution? Write a business plan.

I know, I know; “I don’t need a business plan,” you say. “It takes too much time and effort.”

The knowledge you gain by the process of developing a business plan may be more valuable to you than the actual plan itself.

Wait! Before you discount my suggestion, think about it from a different perspective. A simple, stripped down perspective. Your first business plan doesn’t need to be a 100 page document, with financial projections and fully developed marketing strategies. In fact, I recommend that it not be.

Start with just one page.

Jim Horan, author of The One Page Business Plan series of books says, “The greatest value in creating a business plan is not the final document. It’s the communication, prioritization, focus, clarity and learning that make the process worthwhile.”

A 5 Step Process for a Simple Business Plan for Architects

Here is a simple 5 step process to develop a completed business plan for architects in 60 minutes or less.

• Get started by taking a single sheet of paper and writing a single paragraph describing your vision . What will your business someday look like?
• Then scribe your mission . Why are you starting this business?
• List a few simple strategies . How do you get there?
• Then a few specific goals ; benchmarks that will lead you to executing your strategies.
• With goals set, commit to paper an action plan . What specific tasks will you accomplish to reach your goals? When will you accomplish them? Who will accomplish them?

That’s it… a business plan. Done. It really is that simple.

Revisit your Business Plan Often

I revisit and revise my business plan at least twice a year. As our firm grows and evolves, priorities change, markets shift, economies collapse. My business plan needs to evolve too.

It’s also a great source of inspiration and motivation. A periodic reminder of my big ideas and reasons-for-being, keeps me focused and wanting to push my architecture firm to the next level.

So, go do it. Reach over and grab a sheet of paper. Do it now… Don’t wait. It will take less than 60 minutes.

What’s your vision?

Question: Do you have a written business plan for your architecture firm?

Photo Credit: Shutterstock /  Jan Faukner

January 21, 2019 at 2:31 AM

yes i want to make business plan

November 17, 2021 at 2:40 AM

I want to make plan

February 14, 2022 at 9:19 AM

I want to prepare a business plan for a very high ended Architectural firm. I want to target elite projects in uk.

October 3, 2022 at 1:46 PM

I like the idea that “a business plan is less complex than your anxiety is telling you, so just into it and you’ll suddenly be done!” So this is very appealing. I’d been envisioning this more as a living document. Something like an employee handbook or BIM Execution Plan, it’d contain steps, resources, standards, etc. I’d imagine this also as a tool for investor relations, something that can be shared with insiders to show that it’s worth putting money into. Writing one page over the course of 60 minutes – I get this as a get-started exercise, but couldn’t it be doing much more for you once you get it to a certain point?

October 3, 2022 at 1:49 PM

Yes. 100%. The intent is to prepare a document that you can call “done”, then use as the basis for a more detailed guiding business plan.

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Here is a free business plan sample for an architect practice.

If you're an aspiring architect with a vision for your own firm but are unsure of the first steps to take, you've landed on the right page.

In the content that follows, we will present to you a comprehensive sample business plan tailored for an architectural practice.

As you might be aware, a meticulously developed business plan is a cornerstone of success for any entrepreneur. It serves as a roadmap, guiding you through the establishment of your vision, objectives, and strategies for your architectural firm.

To craft a robust plan with clarity and precision, you can utilize our architect business plan template. Our team of experts is also at your disposal to review and refine your plan at no extra cost.

How to draft a great business plan for your architect practice?

A good business plan for an architectural firm must reflect the unique aspects of the architecture industry.

Initially, it is crucial to provide a comprehensive overview of the architecture market. This includes up-to-date statistics and an analysis of emerging trends within the industry, similar to what we have outlined in our architectural firm business plan template .

Your business plan should articulate your firm's vision clearly. Define your target market (such as residential, commercial, or governmental clients), and establish your firm's distinctive approach to design (sustainable practices, innovative use of materials, focus on certain architectural styles, etc.).

Market analysis is a key component. This section should delve into the competitive landscape, identifying potential competitors, understanding market demands, and recognizing the preferences of your client base.

For an architectural firm, it is important to detail the services you will offer. This could range from initial design concepts to full project management services, including 3D modeling, interior design, and landscape architecture. Explain how these services cater to the needs of your clients.

The operational plan is vital. It should outline the location of your office, the structure of your design and project teams, partnerships with contractors or engineering firms, and your project management approach.

Emphasize the expertise of your team, the technology and software used in design processes, and the standards of quality and compliance with building codes and regulations.

Address your marketing and client acquisition strategies. How will you build your firm's reputation and secure projects? Consider networking within the industry, participation in architectural competitions, and methods for client retention.

Incorporating digital strategies, such as a professional website showcasing your portfolio, and an active presence on platforms relevant to the industry, is also crucial in the digital age.

The financial plan is another critical element. It should include the initial capital required, revenue projections, operational expenses, and the point at which the firm will become profitable.

In architecture, project timelines can be long, and cash flow management is essential, so a thorough understanding of your financials is imperative. For assistance, you can refer to our financial forecast for an architectural firm .

Compared to other business plans, an architectural firm's plan must pay special attention to the portfolio of past projects, the firm's design philosophy, compliance with specific industry regulations, and the cultivation of client relationships.

A well-crafted business plan will not only help you clarify your firm's direction and strategy but also attract clients, investors, or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear understanding of how the firm will manage projects and grow over time.

By presenting a detailed and substantiated plan, you showcase your professionalism and dedication to the success of your architectural firm.

To achieve these goals while saving time, you can start with our architectural firm business plan template .

A free example of business plan for an architect practice

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an architect .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The architecture industry is a dynamic and evolving sector with significant impact on the economy.

Recent studies have shown that the global architecture market is valued at over 300 billion dollars, with projections indicating steady growth in the coming years. This is driven by urbanization, the redevelopment of urban spaces, and the need for sustainable and innovative design solutions.

In the United States, there are over 100,000 architectural firms, contributing to an annual revenue of approximately 40 billion dollars. This underscores the vital role of architecture in shaping the built environment and influencing the quality of life for individuals and communities.

Current trends in the architecture industry highlight a move towards more sustainable and technologically integrated designs.

Green architecture is gaining momentum, with an emphasis on energy-efficient buildings, the use of renewable materials, and designs that minimize environmental impact. Biophilic design, which incorporates natural elements into the built environment, is also becoming increasingly popular.

Technological advancements such as Building Information Modeling (BIM), 3D printing, and virtual reality are transforming the way architects design and communicate their visions, allowing for greater precision and client engagement.

There is also a growing trend towards adaptive reuse, where old buildings are repurposed for new uses, preserving history while meeting modern needs.

Moreover, the demand for smart cities and mixed-use developments reflects a desire for multifunctional spaces that promote convenience and community engagement.

These trends demonstrate the architecture industry's adaptability and its commitment to addressing the evolving needs and values of society.

Success Factors

The success of an architectural firm hinges on several critical factors.

First and foremost, design excellence is paramount. Firms that consistently deliver innovative and aesthetically pleasing designs are more likely to build a strong reputation and attract clients.

Understanding and integrating the latest industry trends, such as sustainability and smart technology, can also set a firm apart in a competitive market.

Location and networking play a significant role, as a firm that is well-connected within the community and industry can leverage these relationships for new opportunities.

Client service is another key element, with successful firms providing clear communication, transparency, and collaboration throughout the design and construction process.

Lastly, effective project management and financial planning are essential for delivering projects on time and within budget, ensuring the firm's profitability and longevity.

The Project

Project presentation.

Our architectural firm project is designed to cater to the increasing demand for sustainable and innovative living spaces. Situated in an urban area with a burgeoning real estate market, our firm will specialize in creating eco-friendly, energy-efficient residential and commercial structures. We will offer a comprehensive range of services, from initial design to project management, ensuring that each building is not only aesthetically pleasing but also functionally superior and environmentally responsible.

The emphasis will be on utilizing cutting-edge design principles and green technologies to deliver spaces that enhance the quality of life for occupants while minimizing environmental impact.

Our architectural firm aspires to become a leader in sustainable design, setting new standards for environmentally conscious construction and urban development.

Value Proposition

The value proposition of our architectural firm is centered on delivering innovative and sustainable design solutions that resonate with the modern-day client's desire for eco-friendly and smart living spaces.

Our dedication to sustainability, aesthetic excellence, and functional design offers a unique proposition in the architecture market, while also promoting the well-being of our clients and the planet.

We are committed to fostering a culture of sustainability in architecture, aiming to inspire our clients and the community to embrace green living and to contribute to the global effort of reducing the carbon footprint of the built environment.

Our firm seeks to be a beacon of innovation, offering a compelling alternative to conventional architecture and improving the quality of life for our clients and future generations.

Project Owner

The project owner is an architect with a passion for sustainable design and a deep understanding of the complexities of modern architecture.

With a background in environmental science and years of experience in architectural design, he is determined to establish a firm that stands out for its commitment to innovation, sustainability, and client satisfaction.

With a vision of creating spaces that are in harmony with the environment, he is resolved to deliver projects that are not only beautiful and functional but also contribute positively to the ecosystem.

His dedication to excellence and his passion for sustainable architecture make him the driving force behind this project, aiming to redefine the standards of the industry and to enhance the living standards of the community through responsible design.

The Market Study

Target market.

The target market for this architectural firm encompasses several distinct segments.

Firstly, there are private clients looking to design or renovate their homes with a unique architectural vision that reflects their personal style and needs.

Secondly, the firm caters to real estate developers seeking innovative and sustainable architectural designs for residential or commercial projects.

Additionally, the market includes government and institutional clients requiring architectural services for public infrastructure, educational facilities, or cultural buildings.

Lastly, the firm can attract collaborations with interior designers and landscapers who require architectural expertise to complement their projects.

SWOT Analysis

A SWOT analysis of this architectural firm highlights several key factors.

Strengths include a strong portfolio of past projects, expertise in sustainable design, and a reputation for creativity and attention to detail.

Weaknesses might involve the cyclical nature of the construction industry and the firm's reliance on economic conditions affecting building investment.

Opportunities can be found in the growing trend towards eco-friendly and smart buildings, as well as in the potential for international projects.

Threats may include intense competition from other architectural firms and the challenge of staying abreast of rapidly evolving building technologies and regulations.

Competitor Analysis

Competitor analysis in the architectural sector indicates a highly competitive environment.

Direct competitors include other architectural firms with similar service offerings, ranging from boutique studios to large multinational corporations.

These competitors vie for clients by showcasing their design innovation, technical expertise, and successful project delivery.

Key competitive advantages may involve a firm's specialized knowledge in certain types of architecture, its track record of on-time and on-budget project completion, and its ability to secure high-profile projects.

Understanding the competitive landscape is crucial for carving out a niche and ensuring client acquisition and retention.

Competitive Advantages

Our architectural firm's competitive edge lies in our commitment to sustainable and context-sensitive design.

We offer personalized service that ensures each client's vision is brought to life with precision and artistry.

Our expertise in the latest architectural technologies and trends allows us to provide innovative solutions that are both aesthetically pleasing and environmentally responsible.

We also pride ourselves on our collaborative approach, working closely with clients, engineers, and builders to create cohesive and functional designs that stand the test of time.

You can also read our articles about: - how to start an architect practice: a complete guide - the customer segments of an architect practice - the competition study for an architect practice

The Strategy

Development plan.

Our three-year development plan for the architectural firm is designed to establish us as a leader in sustainable and innovative design.

In the first year, we will concentrate on building a robust portfolio and establishing strong relationships with local clients and contractors. We aim to be recognized for our unique design solutions and customer service excellence.

The second year will be focused on expanding our services to include interior design and landscape architecture, thereby offering a comprehensive design package to our clients.

In the third year, we plan to leverage our growing reputation to enter new markets and explore international projects. We will also invest in research and development to integrate cutting-edge technology such as virtual reality presentations and advanced 3D modeling in our design process.

Throughout this period, we will adhere to our core values of sustainability, functionality, and aesthetic excellence to serve our clients' needs and stay ahead of industry trends.

Business Model Canvas

The Business Model Canvas for our architectural firm targets clients seeking innovative and sustainable architectural solutions for residential, commercial, and public projects.

Our value proposition is centered on delivering environmentally responsible and aesthetically pleasing designs that are tailored to the specific needs of each client.

We offer our services through direct consultations, project management, and collaboration with construction firms, utilizing our key resources such as our skilled design team and state-of-the-art design software.

Key activities include client consultations, design conceptualization, project management, and ongoing client support.

Our revenue streams are generated from design fees, project management services, and consulting, while our costs are primarily related to staffing, technology investments, and marketing.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on showcasing our design expertise and sustainable practices.

We aim to engage our target audience through a strong online presence, including a portfolio of our past projects and client testimonials. We will also participate in industry events and competitions to gain visibility.

Networking with real estate developers, construction companies, and environmental organizations will be a cornerstone of our strategy to secure referrals and partnerships.

Additionally, we will leverage social media and architectural publications to reach a wider audience and establish thought leadership in sustainable design.

Risk Policy

The risk policy for our architectural firm is designed to mitigate risks associated with project delivery, client satisfaction, and regulatory compliance.

We will ensure adherence to all building codes and regulations, maintain professional indemnity insurance, and implement rigorous quality control processes throughout the design and project management phases.

Our financial risk will be managed through careful project costing, diversified revenue streams, and prudent financial planning.

Ultimately, our goal is to deliver exceptional design services while managing the inherent risks of the architecture industry.

Why Our Project is Viable

We are committed to establishing an architectural firm that stands at the forefront of sustainable and innovative design.

With a focus on client satisfaction, environmental responsibility, and design excellence, we believe our firm is well-positioned to succeed in a market that increasingly values these qualities.

We are prepared to adapt to the evolving demands of the architecture industry and are excited about the opportunity to shape the built environment for the better.

We look forward to a future where our firm is synonymous with cutting-edge, sustainable architecture.

You can also read our articles about: - the Business Model Canvas of an architect practice - the marketing strategy for an architect practice

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an architect and our financial plan for an architect .

Initial expenses for our architectural firm include acquiring state-of-the-art design software, setting up a professional office space that fosters creativity and client engagement, obtaining necessary business licenses and insurance, investing in high-quality marketing materials, and developing a robust website to showcase our portfolio. Additionally, we will incur costs for ongoing professional development to stay abreast of the latest design trends and building codes.

Our revenue assumptions are based on a thorough market analysis of the demand for innovative and sustainable architectural services, considering the increasing interest in eco-friendly and energy-efficient building designs.

We anticipate a gradual increase in project contracts, starting with smaller residential assignments and expanding to larger commercial developments as our firm's reputation for quality and sustainability grows.

The projected income statement reflects expected revenues from our architectural design services, project management fees, and consultation charges, minus the costs of operations (software subscriptions, salaries, office maintenance), and other expenses (marketing, insurance, professional fees).

This results in a forecasted net profit that is essential for assessing the long-term viability of our architectural firm.

The projected balance sheet provides a snapshot of our firm's assets, such as office equipment, software licenses, and accounts receivable, against liabilities including business loans and accounts payable.

It demonstrates the overall financial position of our architectural firm at the conclusion of each fiscal period.

Our projected cash flow statement details the inflows from client payments and outflows for expenses like salaries and software licenses, enabling us to predict our financial needs and maintain a healthy cash reserve.

The projected financing plan outlines the mix of personal investment, business loans, and possible grants we intend to secure to fund our startup costs.

The working capital requirement for our architectural firm will be diligently managed to ensure we have sufficient funds to support day-to-day operations, such as paying staff, purchasing office supplies, and maintaining our professional licenses.

The break-even analysis for our firm calculates the number of projects we need to complete to cover all our costs, including initial investments, and begin generating profits.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the average project margin, the current ratio to evaluate our short-term financial resilience, and the return on equity to measure the profitability of the capital invested in our firm.

These metrics will assist us in gauging the financial health and success of our architectural practice.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an architect practice .

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Free Download: Architect Business Plan

• Enoch Sears
• • June 10, 2013

If someone asked me a few years ago whether as an Architect I ever considered having a business or marketing plan in place, I would be very tempted to snap back saying we are designers and not measly marketers or businessmen.

Well, however true that might sound even today, let me ask you a simple question, how do you get new clients?

Let’s look at it this way – say you are thinking of taking a short holiday with your spouse and kids. What if you just step out one fine day without any idea as to where you are going (business plan) & how will you get there (marketing plan)? You will be clueless as to what you’ll need and how much money the trip will cost, it just wouldn’t work. Just as a charted course will keep a ship from the shore, your business plan will help you reach your goals.

Well, this article is not about throwing a bunch of business jargon at you but to give you an overview of some of the useful aspects of a business and marketing plan. You won’t believe how simple yet powerful this small exercise could be for the growth of any business until you do it. Let’s take a quick look at the various elements that I have tailored exclusively for architecture firms.

• Company Vision, Goals and Objectives – This defines where the company is going in terms of facts and figures e.g. To become a leading architecture firm in town by year 2020 or generate 15% profit on 100 million dollars by 2020.
• Company Mission – This states what the company does and how they do it. You could identify services you offer and clients you cater to e.g. XYZ firm offers contemporary business interiors for mid sized corporates.
• Market Overview or Audit – This section helps put together an analysis of the overall market, competition and internal assessment of the company itself. Here you can learn how much business in your niche is available for grabs using various research tools. You will lay the groundwork for marketing your architecture firm .
• Market Segmentation – Select the segments or niche that your firm can best serve in terms of geographic location, industry or any other measurable e.g.: New corporate interior projects in Northern California.
• Competitive Advantage – This is an extremely critical aspect of a business plan in any industry as it identifies what are the firm’s strengths and weaknesses compared to that of competition. Why should any customer come knocking to your door and not go to the architecture firm down the street? How are you better or different?
• Strategies and Tactics – Now that you’ve identified your niche and point of differentiation, its time to list how to get those customers in the door. Lunch meetings, scouting for references, free consultation offers, social media outreach – what is it that will bring in new customers?
• Budget & Timelines – Here, you can allocate resources to achieve maximum return on investment. It’s better if you can account for the smallest overheads and tentative time frames for each project. This will help you determine realistic fee quotes per project and cut down on unnecessary expenses.
• Tracking and Monitoring – It is important to keep track of what works, what doesn’t and how much has been allocated to each project. A simple way is to establish quantifiable goals and budgets for each project and review the performance metrics after each big project or at least twice a year.

Free Business Plan Worksheet

To help you get started with your architect business plan, join the Business of Architecture email list for solo architects and small architecture firms and I’ll send you a free business plan worksheet. Just tell me where to send it:

YES! SEND ME THE BUSINESS PLAN TEMPLATE

Just as a ship needs to chart a course to reach it's destination, an architect without a business plan runs the risk of ending up shipwrecked on the shore. Don't feel like you have to make an exhaustive business plan 100 pages thick. That might keep you from ever getting started. The important thing is to answer the 8 questions above, write them down, and review them on a regular basis with your partners and team members.

So what do you say? Do you have a business plan? If you don't, why not? Do you think a business plan is important for a solo architect? Tell me your thoughts in the comments below!

ENOCH SEARS

Enoch Bartlett Sears is the founder of the Architect Business Institute, Business of Architecture and co-founder of the Architect Marketing Institute . He helps architects become category leaders in their market. Enoch hosts the #1 rated interview podcast for architects, the Business of Architecture Show where prominent guests like M. Arthur Gensler, Jr. and Thom Mayne share tips and strategies for success in architecture.

5 Responses

Great, simply put, important advice.

In a business plan, should we mention the strategy including how the business will run? ex: partnership, associates, or other business model, because we know that architect is well known as a self employee, but the other side the business and its services could be as bigger as a big scale corporation with a lot of employee.

Regards, Miphz

Great question! I would definitely consider those factors if they heavily impact my finances. And with a firm as big, the business plan in general will have to much more detailed along with a financial growth plan for next three to five years. The above post is intended to jump start small firms on a thought trail that will help them be on track and potentially grow. Hope this answers your question.

Thanks for this- very simple prompts on subjects requiring thought for successfully development of a growing practice

I agree with you

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Architectural Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting an architectural company? If YES, here’s a complete sample architectural firm business plan template & feasibility report you can use for FREE to raise money .

Okay, so we have considered all the requirements for starting an architectural business . We also took it further by analyzing and drafting a sample architectural service marketing plan template backed up by actionable guerrilla marketing ideas for architectural firms. So let’s proceed to the business planning section.

All over the word the real estate business is such that have done so well in terms of patronage and it isn’t a news that those in the architectural line are one of the people who makes erecting buildings possible. It is for this reason that a lot of people are known to throng into the trade from all parts of the world. It is indeed a great business to delve into as well as live on.

One of the first steps to take in starting the business is to first of all be sure that you are conversant with the trade. You may want to consider studying an architectural related course in school so that you can learn all the basic ropes that have to be learnt.

Thereafter, you will need other researches to pull through. Run a feasibility research on the industry in general; speak with experts and what have you. As you plan to launch out in trade, you will also need to write a good and detailed business plan.

This might pose a threat especially if you do not know a thing about drawing up a plan. This is where working with a template comes to play Here is a sample Architectural business plan for your use:

A Sample Architectural Firm Business Plan Template

1. industry overview.

Architects play a major role in the construction industry, as a matter of fact, architects are responsible for the planning and designing of residential, institutional, recreational, commercial and industrial buildings and structures by applying their knowledge of design, construction procedures, zoning regulations, building codes and building materials et al.

Hence, the architectural services industry is made up of firms who primarily engaged in planning and designing residential, institutional, leisure, commercial and industrial buildings and structures by applying knowledge of design, construction procedures, zoning regulations, building codes and building materials.

A close watch shows that he Architectural Services industry has finally begun to experience steady recovery from the economic downturn, although revenue remains below the industry’s 2007 peak due to the prolonged effects of the market crash of the real estate industry.

On the other hand, the construction market has recently shown sign of recovery, with the values of both residential and nonresidential construction rising over the last five years. Furthermore, firms’ cost-cutting efforts during the economic downturn have improved profit margins, even as the industry’s workforce has once again begun to expand.

Going forward, environmentally friendly design will increase in importance to architecture firms as downstream construction markets continue to improve and the industry proceeds with its recovery. The Architectural Services industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, France, Italy, Holland, Switzerland, Japan, China, Germany, and Canada et al.

Statistics has it that in the united states of America alone, there are about 80,948 registered and licensed Architectural Services firm responsible for employing about 217,640 and the industry rakes in a whooping sum of $38 billion annually.

The industry is projected to enjoy 2.9 percent annual growth. It is important to state that there is no establishment in this industry that has a lion market share. Over and above, the Architectural Services industry is characterized by many small-scale consultants, often individual proprietors and partners who operate in narrow geographic markets.

Although a majority of industry establishments do not have a payroll, non – employers generate only about 10.0 percent of the industry revenue. The fragmented nature of this industry is also evident when comparing the size of enterprises that have employees.

IBISWORLD projected that in 2016, an estimated 67.4 percent of firms with a payroll have fewer than five employees and only 1.0 percent of firms have more than 100 workers. The industry’s low level of concentration means that no firm holds a dominant position in the market.

It was also estimated that the four largest players in this industry account for less than 5.0 percent of the total revenue to be generated in the industry in 2016

One thing is certain about starting an architectural firm, if you are able to conduct your market research and feasibility studies , you are more likely not going to struggle to secure clients because there are always individuals, constructions companies  and corporate organization who would want to hire your services from time to time.

Lastly, as an architectural firm, you can afford to partner with other firms that are into construction and building services. You can partner with construction companies, you can partner with real estate firms and you can partner with the government et al.

The bottom line is that, if you have a robust network and you are well positioned, you can indeed maximize your architectural services business.

2. Executive Summary

Kent De Clark® Architectural Firm, LLP is a registered and licensed architectural services firm that will be based in New York City – New York.

The firm will handle all aspect of architectural design related services; services such as planning and designing residential, institutional, leisure, commercial and industrial buildings and structures by applying knowledge of design, construction procedures, zoning regulations, building codes and building materials and other related tax return preparation services.

We are aware that to run a standard architectural services firm can be demanding which is why we are well trained, certified and equipped to perform excellently well. Kent De Clark® Architectural Firm, LLP is a client – focused and result driven architectural services firm that provides broad- based services at an affordable fee that won’t in any way put a hole in the pockets of our clients.

We will offer a standard and professional architectural design services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they hire our services.

At Kent De Clark® Architectural Firm, LLP, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the architectural services industry

Kent De Clark® Architectural Firm, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become the leading brand in the architectural services industry in the whole of New York City – New York, and also to be amongst the top 20 architectural firm services businesses in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that New York City – New York is the right place to launch our architectural services firm before sourcing for clients from other cities in The United States of America.

Kent De Clark® Architectural Firm, LLP is founded by Kent De Clark and Willy Brian, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business.

Kent De Clark has well over 5 years of experience working at various capacity within the architectural services industry in the United States of America.

Kent De Clark is a graduate of Columbia Graduate School of Architecture, Planning, and Preservation Columbia University and Willy Brain graduated from Yale School of Architecture, Yale University. They both have the required experience and qualifications to build a world class architectural firm.

3. Our Products and Services

Kent De Clark® Architectural Firm, LLP is going to offer varieties of services within the scope of the architectural services industry in the United States of America. Our intention of starting our architectural services firm is to favorably compete with leading players in the architectural services industry both in the United States of America and in the world at large.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offering are listed below;

• New project architectural services
• Renovation and rehabilitation architectural services
• Basic designing
• Providing construction phase services
• Planning and providing predesigned services
• Interior designing and providing building fit-out services
• Construction project management
• Planning and predesigned
• Feasibility studies
• Landscape and urban design
• Building and Facility restoration
• Building architectural design services
• Other architectural design services consulting and advisory related services

4. Our Mission and Vision Statement

• Our vision is to build an architectural services brand that will become the number one choice for both smaller businesses and corporate clients in the whole of New York City – New York. Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to position our architectural services firm to become the leading brand in the architectural services industry in the whole of New York City – New York, and also to be amongst the top 20 architectural services firms in the United States of America within the first 10 years of operations.

Our Business Structure

Normally we would have settled for two or three staff members, but as part of our plan to build a standard architectural services firm in New York City – New York, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of architectural services business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around New York City – New York as long as they are willing and ready to work with us to achieve our business goals and objectives.

Below is the business structure that we will build Kent De Clark® Architectural Firm, LLP;

• Chief Executive Officer

Admin and HR Manager

Marketing and Sales Executive

• Customer Care Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for creating building designs and highly detailed drawings both by hand and by using specialist computer-aided design (CAD) applications
• Responsible for liaising with construction professionals about the feasibility of potential projects
• Responsible for working around constraining factors such as town planning legislation, environmental impact and project budget
• Works closely with a team of other professionals such as building service engineers, construction managers, quantity surveyors and architectural technologists
• Applies for planning permission and advice from governmental new build and legal departments
• Responsible for writing and presenting reports, proposals, applications and contracts
• In charge of choosing the materials to be used and specifying the requirements for the project
• Adapts plans according to circumstances and resolving any problems that may arise during construction
• Responsible for making sure the project is running according to schedule and budget
• Plays a part in project and team management
• Travels regularly to building sites, proposed locations and client meetings
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversee the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• create reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive/Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Kent De Clark® Architectural Firm, LLP engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured architectural services firm that can favorably compete in the highly competitive architectural services industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Kent De Clark® Architectural Firm, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Kent De Clark® Architectural Firm, LLP

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained, qualified and equipped to pay attention to details and to deliver excellent architectural designs. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new architectural services firm, it might take some time for our organization to break into the market and gain acceptance especially from big corporate clients in the already saturated architectural services industry; that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.

• Opportunities:

The opportunities in the architectural services industry is massive considering the number of construction and real estate companies who can’t do with key services provided by only the architectural industry. As a standard and well – positioned architectural service firm, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as an architectural service firm operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The architectural services industry is indeed a very large industry and of course it is one industry that works for businesses basically within the real estate industry and construction industries.

It means that to survive as an architectural firm, you would need to network with major players in the aforementioned industries and not ignoring government because in most countries of the world, the government at all level are the major players in the construction industry.

It is a bit challenging for new entrant to come into this industry; the primary barrier to the entry for new establishment is the stiff registration requirements applicable in most countries not just the United States of America.

As a matter of fact, architectural firms cum Architects must comply with local licensing criteria set out by registration boards and professional associations to obtain registration in their country or the state they want to operate from. This usually requires applicants to hold an accredited tertiary qualification before they can undertake written tests of skills, knowledge and abilities; and often to gain practical experience working with a local architect’s office.

A close watch of happenings in the architectural services industry shows that over the last five years, global investment into commercial building developments collapsed, leading to faltering demand for the industry’s services, particularly in the United States, Europe and Japan.

However, growth in emerging economies mitigated some of the industry’s declines. In the coming years, rising business sentiment will boost investment in building construction and for architectural design services. In addition, rising demand for environmentally friendly building will provide growth opportunities for operators.

8. Our Target Market

The demographic and psychographics composition of those who need the services of architectural services providers cuts across both small businesses and large corporations.

Kent De Clark® Architectural Firm, LLP will initially serve small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading architectural service firms in the United States.

As a standard and licensed architectural service firm, Kent De Clark® Architectural Firm, LLP offers a wide range of financial consulting services hence we are well trained and equipped to services a wide range of clientele base.

Our target market cuts across businesses of different sizes in both the construction and the real estate industries. We are coming into the industry with a business concept that will enable us work with the small businesses and bigger corporations in and around New York City – New York and other cities in the United States of America.

Below is a list of the businesses and organizations that we have specifically design our products and services for;

• Construction Companies
• Real Estate Firms
• Individuals
• Blue Chips Companies
• Corporate Organizations
• Religious Organizations
• Hotels and Restaurants
• The Government (Public Sector)

Our Competitive Advantage

The level of competitions in the architectural services industry depends largely on the location of the business and of course the business model . If you can successfully create a unique brand identity for your architectural services firm or carve out a unique market, you are likely going to experience less competition.

For instance if you are one of the few architectural service firms in your locations that has the most qualified and experienced architects under your payroll, you are likely going to have a competitive advantage over your competitors.

We are quite aware that to be highly competitive in the architectural services industry means that we should be able to deliver consistent quality designs and services, our clients should be able to pay for our services and we should be able to meet the expectations of clients.

Kent De Clark® Architectural Firm, LLP might be a new entrant into the architectural services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified architects and design experts in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups architectural services firm) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Kent De Clark® Architectural Firm, LLP is established with the aim of maximizing profits in the architectural services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients especially government clients.

Kent De Clark® Architectural Firm, LLP will generate income by offering the following architectural services for construction companies, real estate firms, and the government and for corporate organizations et al;

10. Sales Forecast

One thing is certain, there would always be construction companies, real estate firms, and the government and for corporate organizations et al who would need the services of professional architectural services providers.

We are well positioned to take on the available market in New York City – New York and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City to other cities in New York and other states in the U.S.

We have been able to critically examine the architectural services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York City – New York.

Below are the sales projection for Kent De Clark® Architectural Firm, LLP, it is based on the location of our business and the wide range of architectural related services that we will be offering to our clients;

• First Fiscal Year-: $250,000
• Second Fiscal Year-:  $450,000
• Third Fiscal Year-:  $1 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst architects and architectural service providers and other related building design service providers in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent designs and job deliveries speaks for us in the marketplace; we want to build a standard and world – class architectural service firm that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our architectural service firm to become one of the top 20 architectural service firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the New York City – New York, but also in other cities in the United States of America.

Kent De Clark® Architectural Firm, LLP is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our architectural services business by sending introductory letters alongside our brochure to construction companies, real estate firms, corporate organizations, households and key stake holders in New York City and other cities in New York.
• Promptness in bidding for architectural design contracts from the government, construction companies, real estate firms and other corporate organizations
• Advertise our business in relevant construction and real estate related magazines, newspapers, TV stations, and radio station.
• List our architectural services firm business on yellow pages ads (local directories)
• Attend relevant international and local finance and business expos, seminars, and business fairs et al
• Create different packages for different category of clients (start – ups and established corporate organizations) in order to work with their budgets and still deliver quality architectural design cum services to them
• Leverage on the internet to promote our architectural services firm
• Engage in direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our architectural services firm business. Below are the platforms we will leverage on to boost our brand and to promote and advertise our business;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that we position our banners and billboards in strategic positions all around New York City – New York
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact construction companies, real estate firms, and the government and corporate organizations et al by calling them up and informing them of Kent De Clark® Architectural Firm, LLP and the services we offer
• Advertise our business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pay per design, project and hourly billing for architectural design services is a long – time tradition in the industry.  However, for some types of architectural design services, flat fees make more sense because they allow clients to better predict service costs.

As a result of this, Kent De Clark® Architectural Firm, LLP will charge our clients a flat fee for many basic architectural design services et al.

At Kent De Clark® Architectural Firm, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients that would need regular access to architectural consultancy and advisory services and assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs. So also, we aware of government contracts, we will ensure that we abide by the bidding requirement for such contracts.

• Payment Options

The payment policy adopted by Kent De Clark® Architectural Firm, LLP is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Kent De Clark® Architectural Firm, LLP will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting an architectural firm, there are some key factors that should serve as a guide. Factor such as have printing machine you need in house or outsourcing your printing jobs to other services providers.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an architectural services firm business; it might differ in other countries due to the value of their money. Below are some of the basic areas we will spend our start – up capital in setting up our architectural services firm;

• The total cost for hiring Business Consultant – $2,500
• The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
• The Total Fee for incorporating the Business in the United States of America – $750.
• The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• Marketing promotion expenses for the grand opening of Kent De Clark® Architectural Firm, LLP in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for purchase of the required software applications (CAD Software, Architectural software, CRM software, and Accounting Software et al) – $10,500
• The Cost of Launching your official Website – $600
• Budget for paying  at least three employees for 3 months plus utility bills – $10,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need over one hundred and fifty thousand ( 150,000 ) U.S. dollars to successfully set – up a small scale but standard architectural services firm in the United States of America.

Generating Funding / Startup Capital for Kent De Clark® Architectural Firm, LLP

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Kent De Clark® Architectural Firm, LLP is a business that will be owned and managed by Kent De Clark and his business partner Willy Brain. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Kent De Clark® Architectural Firm, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our architectural design services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Kent De Clark® Architectural Firm, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress.
• Application for business license and permit: Completed
• Securing a standard office facility (renovation of the facility inclusive): Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress.
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress.
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress.
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In Progress.
• Creating Official Website for the Company: In Progress.
• Creating Awareness for the business (Business PR): In Progress.
• Health and Safety and Fire Safety Arrangement: In Progress.
• Establishing business relationship with vendors and key players in the industry: In Progress.

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Architecture Firm Business Plan Template

Sep.06, 2013

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Table of Content

Architecture Firm Business Plan for Starting Your Business

Do you want to start an architectural firm? An architecture firm provides interior and exterior designing services varying from small works like designing a room, to larger projects such as designing a complex structure. Whereas, several tasks can also require expertise in the latest architectural software. So, if you have decided to enter this venture, you are required to make a business plan for architecture firm . By doing so you can avoid certain problems that can come up with the initiation. In case you are confused about how to start an architecture business , read the following sample business plan for a startup named, Michael Architects, based in New York.

Executive Summary

To give you a summarized view on how to start a business architecture and take the decisions appropriately we are sharing details about Michael Architects startup. So, if you want to know how to run an architecture firm efficiently, you can get a lot of help from here.

2.1 The Business

Michael Architects will be a registered and insured architectural firm based in Buffalo, New York. The company will work for improving and enhancing the structures and communities in which we live – utilizing proper technical approach to plan and design big and small structures

2.2 Management of Architectural Firm

Michael Architects will be owned by Michael Craig. Craig will be managing the firm by himself. Craig wants to use his skills to run his business as he acknowledges that starting an architectural firm is a much easier task than running it.

2.3 Customers of Architectural Firm

Target customers of Michael Architects will be the homeowners, government agencies, construction company business , and contractors. Knowing the importance of marketing for architectural firms to attract the desired community, our company will be taking effective steps to attract these target groups.

2.4 Business Target

Before you even think about how to start an architecture firm , set your goals for your business as it can help you a lot in taking major decisions. Michael Architects aims at providing the best experience to both its customers and workers. Moreover, becoming a renowned company and recovering the investments within one year of the launch is the company’s main goal.

Company Summary

3.1 company owner.

Michael Craig will be the owner of Michael Architects. Craig has an MBA degree from Stanford University. Besides just a degree, Craig has exceptional managing skills along with 6-year experience of working as a manager in a famous architecture agency , Perkins and Will.

3.2 Why the Architectural Firm Business is being started

Based on his experience in an architectural firm, Craig had realized that the architecture business is a business which had a never-ending scope. From the small task of deigning a corridor – to a larger one such as planning a road, people will always need the services of architects. So, to invest his and his employee’s energies into a work that the world needed frequently and to make a profit in this domain, Craig had decided to start a business in the architecture domain.

3.3 How the Architectural Firm Business will be started

A building owned by Craig himself in Buffalo, a city of New York, was supposed to be interiorly decorated and designed to convert it to an extremely beautiful artifact. The building will serve as a sample to attract target customers. Moreover, Craig has decided to hire the required crew 2 months before the launch so that he could get the work of engineering his firm’s building done by the professionals of his own company. Michael Architects will be financed by the owner himself. The firm will be ensuring a strong web presence to show its work and expertise to a wider audience. Moreover, effective steps will be taken to make an influential architecture marketing plan. The detailed start-up information is given below:

Services for Customers

Before starting your own architectural practice , it is essential to know how does an architecture firm work . Deciding your services even before the launch can help you in exploring the ways through which you can facilitate your customers. Moreover, it can help you in devising an effective architecture marketing plan for marketing architectural services . To give you a notion of services that an architectural firm provide, we are enlisting some from the plan of Michael Architects.

• Interior Design: Our architects will be using their brainstorming ideas to add beauty and value to your roofs, floors, doors, windows, corridors any other space interior design business to your building.
• Restoration of old buildings: Our workers will repair the defects and will do more than just ‘restoration’. We know which antique structures, doors, and windows have to be replaced to modernize your existing property.
• Modern Architecture Design: We will be using innovative techniques to design your buildings according to the modern world. Using the high-quality glass, steel, wood and reinforced concrete we can give your property a view that you had only imagined.
• Landscape Designing: To give your property a complete, natural, look, our architects will be working on any outdoor area. Our workers can transform any piece of land for environmental or aesthetic purposes.

Along with these services, we will also open a small store for selling pet-related products like shampoos, foods, medicines, ties, chains, and clothes for the dogs.

Marketing Analysis of Architecture Firm Business

A common component of all successful business plans for architects is an accurate marketing analysis. Analyzing your market before the actual launch can help you in making major decisions such as what quality you will have to provide to your customers to make them come again – and which sort of architectural design ideas you have to offer to keep pace with the demands of your community. Though for a fresh architecture startup , it is hard to recognize the things which must be noticed to analyze the market properly. So, to give you an idea about which things should be under your vigilant observation, we are providing a detailed sample of the marketing plan of Michael Architects.

5.1 Market Trends

According to a report by IBISWorld, more than 71 thousand architecture firms are currently operating in the United States. The outlet also revealed the exact stats showing the revenue generated by architecture firms on an annual basis in the United States this year – which is $46 billion. The amount is no doubt, more than that anybody could expect because this is the sort of business which can earn great profit even from a single project if done properly Though more than 233 thousand people are servicing in architectural firms, there is still demand for many. IBISWorld has reported a 4.1 percent growth rate in the business of architecture firms this year, which means more people can still enter the domain. These satisfying stats and figures demonstrate that one cannot be at a loss if they prepare well before starting their firm.

Operational and Strategic Planning

5.2 marketing segmentation.

As an entrepreneur the biggest question on your mind would be, how to find architecture clients ? It can easily be figured out by you, yourself if you divide the wide range of people into three and four groups. Such segmentation will help you to recognize their demands and devising your marketing strategy according to them. The groups which can become our potential customers are:

The detailed marketing segmentation comprising the company’s target audience is as follows:

5.2.1 Real Estate Owners

The people who own any sort of building for public and personal use will be our topmost target. Such as a person running a restaurant will need our constant services to make their place attractive for their customers. Several homeowners also require architecture firm services for implementing a new staircase or installing modern flooring.

5.2.2 Contractors & Construction Companies

The second group of our target customers will comprise of the construction companies and contractors who will need our services whenever they get some project. A constructor just builds the idea of an architect, so in collaboration with our architecture firm they can build the designs which can amaze everyone.

5.2.3 Government Agencies

To maintain and preserve the art in old historic buildings, government agencies will be needing our services of restoration. Moreover, our services will be a permanent requirement for them to keep the city’s structures appearing as maintained architecture models. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Michael Architects aims at providing the best services to its customers and the best environment for its workers. Within the next three years, we want to be a renowned figure in the world of architecture firms.

Our financial goals are:

• To balance the startup costs with earned profits by the end of the first year
• To get the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year

5.4 Product Pricing

Although the market demands for new architecture firms is high, we still have priced our services low for the first eight months of our launch. Our pricing will also be used as a tactic for marketing architecture firm and it will also be helping our startup to get introduced to the people who can become our potential clients in future.

Architecture Marketing Strategy

If you are passionate for creating an architecture firm, the part you must focus on is the sales strategy. In define a strategic plan , you have to look up for architectural marketing ideas and decide which would suit your startup the most.

From this sample business development plan for an architecture firm, you can get the idea of how others are publicizing their architectural services.

6.1 Competitive Analysis

Under the extensive experience of our staff and architects and managing skills of our firm owner, we will be ensuring top quality work even in limited resources.

Our workers are highly collaborative and will keep in touch with you during the project so that you can get exactly the work which you want. Moreover, using design software like AutoCAD, Revit, etc. we can give you a view before implementing your idea so that you can introduce any changes.

Lastly, our prices are extremely low in the first year providing a golden chance for you to try our services even if you require small works like modernizing a corridor or a balcony.

6.2 Sales Strategy

To get introduced to our target customers, we will:

• Keep our prices low in the first year
• Advertise our services through local newspapers, magazines, and social media
• Display various views of our own-designed firm as proof of our experience and skills
• Use SEO techniques to ensure a strong web presence

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast.

If you are thinking about how to set up an architectural practice which will not end up as a failure you must focus on the staff you hire.

Personnel plan

After all, it is the personnel that decided the future of a startup.

The same can be applied for if you are worrying about how to manage an architecture business because the construction management business can be effective only if you hire the right person for the right job.

7.1 Company Staff

Michael will be the owner and manager by himself, however, he will hire the following people:

• 1 Accountant to keep financial records
• 3 Architects to work on the projects
• 5 Field Employees to work as laborers
• 1 Technician to upkeep the machinery
• 1 Structure Engineer to help in providing sustainable solutions
• 2 Drivers for transportation works
• 1 IT Expert to manage the company’s online record, website and social sites

7.2 Average Salary of Employees

Financial plan.

The final part in developing your <strong>architecture firm business plan<strong> is to make a financial plan. A financial plan must cover the details about how much money will be spent by you in certain situations and on which portion of your startup you will be spending the most. It must also contain the details about your plans to balance your investments with the earned profits.

Though, Michael himself was a person of this domain, yet, he had decided to have this task done by a person who was a professional financial expert and had much more experience than him. The sample financial plan of Michael Architects is given here for help.

8.1 Important Assumptions

8.2 brake-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

Download Architecture Firm Business Plan Sample in pdf

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Sample Architecture Firm Business Plan

Architecture firm business plan sample.

In setting up an architectural firm, a lot of things must be put into consideration. This has to do with your business structure.

A well laid out plan for the business will have a major positive impact on the business. Success begins with your plan. The better the plan, the more likely you are to excel with your business idea.

As an architect, one of the likely business concepts you may seek to establish is starting your architectural firm. The real estate-related venture requires a lot of experience.

This article seeks to provide help with writing your business plan using this as a template.

Executive Summary

Exquisite Designs is an architectural firm located in Wilmington, Delaware. We provide a variety of construction and architectural services for both individual and commercial clients. Our clients consist of local, state, and national clients.

We plan on expanding our capacity to include foreign operations within a decade.

As a business that has zero tolerance for nothing less than the best, our operations are guided by global best practices all geared towards satisfying our clients. Every client we come in contact with is given the very best of architectural service. We believe the more satisfied our clients are, the better for business.

Although our doors were opened for the business not more than 4 years ago, we have a pool of experts with remarkable expertise and experience.

The painstaking process of putting together our team of experts has significantly benefited the business with lots of impressed and satisfied clients to show.

Products and Services

At Exquisite Designs, we offer a wide range of construction and design-related services.

These range from planning and design of buildings and spaces, initial consultation, pre-design, and schematic design, design development, construction documentation, contract negotiation, and bidding as well as contract administration among others.

All these are provided in such a way that the client is given the very best service within their budgets.

Vision Statement

Our vision as an architectural firm is to establish a world-class company that caters to every construction needs of our clients. This will target both individual and major corporate clients.

With our culture of excellence, we plan on breaking into the top league consisting of the biggest architectural firms in the United States.

We hope to achieve this within a decade.

Mission Statement

The construction industry is one that is driven by innovation. It is also highly competitive.

At Exquisite Designs, we seek to contribute our quota towards creating more effective housing and structural solutions to existing problems. Our clients, as well as their needs, are our main focus.

We hope to meet these needs the best way possible while also giving them value for money.

Capital Requirement

Since inception, we’ve been able to make modest achievements.

However, we’re far from achieving our goals which includes creating a world-class brand known for excellence and having the capacity to serve client clients across the globe. This expansion plan falls under our medium-term goal aimed at becoming a regional player.

This will result in expanding our presence to the neighboring states of Pennsylvania, Maryland, and New Jersey.

The capital requirement for this expansion will cost about $6,000,000.00. About 80% of this amount will be sourced through a bank loan at an interest rate of 5%. The rest of the amount (20%) will be sourced from our revenue.

SWOT Analysis

From the first day, we opened our doors for business, we’ve been driven by productivity, efficiency, and client satisfaction. This resolve has helped impact our operations significantly. We have also assessed our operations so far.

This has been examined in the following key areas;

Our strength lies in the quality of our workforce.

These consist of highly experienced architects led by the founder of Exquisite Designs Davis Kavanaugh. This experience of several decades has enabled the management to effectively steer the company’s operations despite the many challenges.

This has created a growth in revenue, client base, and several contracts won. We hope to continue this tradition by seeking better ways to improve.

Despite successes made, we’ve also had a few failures resulting from our inability to attract major clients. Such clients have a multinational presence with major architectural design requirements.

Although we’re a growing business, our size and capacity are limited.

This weakness is being addressed through the infusion of capital and expansion of our reach and capacity. We hope to reach an appreciable level of progress with such expansion within a year.

Opportunities

The boom in construction has created a corresponding demand for architectural expertise. We are taking advantage of this opportunity to establish a thriving business with operations spanning every state within the U.S and beyond.

A housing crisis such as the one of 2008 that led to global economic collapse will negatively impact on our operations. This was mainly caused by predatory private mortgage lending among other things.

With an unregulated market, it could cause serious problems for our business.

Sales Projection

One of the several reasons why we’re in business is to attract sales.

Using current realities within the construction industry as well as our expansion plans, we’ve projected a steady rise in sales. This covers 3 years immediately following the completion of our expansion plans. The results are summarized below;

• First Fiscal Year $2,900,000.00
• Second Fiscal Year $7,800,000.00
• Third Fiscal Year $25,000,000.00

Competitive Advantage

Without a doubt, the construction industry is highly competitive.

There are lots of architectural firms competing for clients. The good news is, our reputation and brand speak volumes. Our previous projects tell our story. As such, we can still flourish despite stiff competition.

Marketing And Promotional Strategy

We have a world-class marketing department that will be coordinating all our marketing campaigns. This will make use of online platforms which include social media accounts in addition to our website.

Also, electronic and print media will be used to sell our services in addition to billboards and business cards among other tools.

We’ve been able to greatly summarize our architectural firm business plan to help you get an idea of how to go about the process. This should serve as a template to help you put together an effective business plan.

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The mission of the AIA Small Firm Exchange (SFx) is to advance the mutual interests of architects practicing in small firms. The objectives of the AIA SFx are three-fold:

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Approximately 75% of all firms within the AIA are small firms (less than 10 employees), which equates to 14,459 small firms within the organization.

~26.8% = sole practitioners = 5,173

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For context, small firms share of staff is 16.0% and share of billings is 12.0%

We need to find ways to leverage that size for collaboration and influence, just like the individual large firms do.

Business Plan Beta Template for Small Architecture Firms 

SFx has been exploring which business models are most appropriate to sustain the practice of architecture for small firms. Specifically modified for small architecture firms, SFx developed a beta version business plan template and a small firm business model dashboard to assist small firms in creating and evaluating sustainable business practices. Additional business plan templates and tips are available in  Practice FAQ: How do I create a business plan to start an architecture firm?

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