How to start a business as an architect?
1. Understand your Goals
Meaning, you need to identify what projects you want to undertake. There are different project categories you need to identify in order to focus on what you can do with your resources.
Getting started will be the biggest challenge where you have to do all the work in order to get the right project and the right client.
It would be good to create a profile where you can showcase your capabilities and the services you are offering. The profile will speak for itself. Clients look for the right person to entrust their hard-earned money for the construction of the structures they will require. The categories will vary from residential, commercial, institutional, recreational etc.
2. Make an Action Plan
The most important thing to do is to make an action plan. This is to define How will you get started? After defining your goal, the action plan will set the stage in making your dreams of establishing a Design Consultancy Business a reality. As an architect, you are well trained in making plans, this will also be a good quality you can adopt in doing actions towards achieving your goals.
How to Get Started?
Apart from organizing your portfolio to showcase your services, the next step is to write a business plan. Aligned with your goals, you can define clearly what you need to accomplish in a given time.
- When do you intend to start your business?
- What will be your Marketing Strategy?
- Where do you get your clients?
- How do you promote your services?
- How much financial requirements you need to raise?
These are important factors you need to identify in order for you to get started. Which will lead us to the next step in the process.
Getting Organized
Organize yourself in terms of securing a license for your business and create your marketing portfolio. The business permit is your legal representation that you are ready to do business with your future clients. Then you can also create your office environment. To be physically visible to the market. This will include financial requirements and that will also be a big factor to know if you are ready to start your design consultancy business. There are some occasions where some architects started with small capital investments, they started from minimal investments using the social media platform to promote their services.
Formulate Memorandum of Agreement (MOA)
Contact agreements are integral part of the business. This will save you from future mistakes and responsibilities. Having a well-documented contract agreement will be beneficial in both parties because it:
- Clarifies Your Relationships with the Client - as it outlines the expectations and responsibilities of each party to avoid misunderstandings in future endeavors. The project is duration is usually done from its initial idea up to the completion of the project. This will cover a longer process and having a clear understanding of your business deal will give a more lasting relationships with the client that can be a potential recommendation to future projects.
- It will also provide legal clarity - as it can serve as evidence of the parties' intentions if disputes arise. Though not always a legally binding document.
- Facilitates Communication - this will encourage an open dialogue and collaboration between two parties.
- Defines Roles and Contributions. It will definitely specify what both parties are bringing whether its resources, expertise or other forms of support.
There are different key elements required to formulate an effective Memorandum of Agreement. These are the following:
- Introduction - This will be a brief statement about the purpose of the MOA and who are the parties involved
- Objectives - A clear description of the goals and outcomes expected from the memorandum of agreement.
- The Scope of Work - The detailed list of the professional services rendered, contributions or actions that each party agrees to perform.
- Roles and Responsibilities - Specifies the specific roles and responsibilities of each party. The architects' responsibilities are outline in the professional practice manual that clearly defines the architects' legal responsibilities in relation to the client, the public, colleagues and other allied professionals including the practice of the Code of Ethics. Whilst the client's responsibilities are outlined from their decision making and most importantly their manner of payments to the professionals involved in the whole process.
- Timeframe; The duration of the contract and the schedules of payments
- Financial provisions: Every step of the way involves money. The MOA outlines the schedule of payments upon completion of each stage in the design and construction process. Before the end of each stage, the architect submits a progress report that entails progress payments.
- Amendments and Termination: This outlines the terms which the MOA can be modified or terminated.
- Disputes Resolution: This outlines the procedures for handling disputes or disagreements that may arise.
- Signatures: Legal signatures from both parties involved indicates the acceptance and understanding of the terms in the MOA.
The Memorandum of agreement is usually signed in the presence of a legal counsel, if not, have it reviewed before it is finalized. This is to ensure that the agreements meet the necessary legal requirements of both parties.
The Business Venture
This is getting more exciting; all your dreams projects will be captured here. Making your design a means for you to earn a living and get recognition of your outstanding projects. A well-organized business means that you have organized a team of designers, entrepreneurs, construction personnel and many more people who will be involved in your design and build career. The most fulfilling venture is to see your design built. There will be more agencies involved in the process, so your organizational structure and business venture system will have the biggest impact in sustaining your business. More satisfied clients mean more endorsement to your services. The word-of-mouth advertisement works well with your projects built showcase it all. This is the most dreamed situation for young aspirants.
As early as possible, create a mindset of becoming an entrepreneur with your craft. Designers often acquire business skills through experience and education, allowing them to successfully manage their own businesses or work in corporate environments. The Designers strong and creative problem-solving skills are beneficial to business.
Create a scope of services based on your resources. It would be better to scale up your scope of services when you are getting leads to a bigger design query.
How does your Business Plan Looks like?
Formulating your business plan is exciting and challenging. The business plan outlines the following.
- Executive Summary
- Branding (Business and Domain Name)
- Market Analysis and Research
- Operational plan
- Marketing and Advertising Plan
- Financial Plan
Target Market
The starting point of your marketing strategies is in your target market. This will help you identify where you do you find them. How will you create your presence and get noticed by prospective clients. You need to strategically get in front of them. Intentionally get involved in the place where they can be reached, get connections, make yourself known.
Licensing and Permits
This will be the licensing of the projects you will undertake. Apart from your business permit, the licensing required for the construction of the structure you are designing should be acquired. This will incorporate the necessary building laws that should be integral in your design approach.
The Marketing Plan
The most exciting part of your business. You need to have a well-defined cash flow. How much will you be charging for your professional fees. This will cover accounting your income and expenses to know if your business plan will become successful. This will also guide you in your business strategies. What you need to invest and how you will continually expand your business.
