Small Project Design

  • 1.  Do you think it's wise to start an architecture firm in this economic climate?

    Posted 11-02-2011 08:52 PM
    This message has been cross posted to the following Discussion Forums: Small Project Practitioners and Practice Management Member Conversations .
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    Architecture Exchange East kicked off the Pre-conference Workshops today and I participated in the seminar W04 So You Think You Want to Start a Firm presented by Laura Davis, AIA, IFDA and Larry Paschall, AIA.

    They opened up discussions and brought to light a simple question that is relevant at this moment in time in our profession. They started their own firm at the height of the recession. Some of you may wonder if it's really a great idea to do so.

    I pose the question back to some of you who are thinking about striking out on your own.

    Do you think it's wise to start an architecture firm in this economic climate?

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    A. Lira Luis, AIA (2011 AIA Knowledge Scholar to Practice Management)
    Principal Architect
    Atelier Lira Luis, LLC
    Chicago IL
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  • 2.  RE:Do you think it's wise to start an architecture firm in this economic climate?

    Posted 11-03-2011 08:57 AM

    I started my firm during the last recession - 2003. I figured that i should try to start my own business rather than go work for someone else. It paid off and we have been in business over 8 years. That being said, I can't imagine starting a firm now - this recession is like no other. I have been an architect for 28 years and this is a rough time. If i were you i would spend 3 , 6, 9, months getting ready to start your own firm and then as things start to look a little better, go for it! Having a business boils down to a few basic issues: 1. Do you have people that will hire you ( without stealing them from your current firm) 2. Do you have enough money to provide a buffer if income is not there (i don't encourage you going into debt) 3. Can you keep your expenses low ?

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    Joel Sims AIA
    Lancaster PA
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  • 3.  RE:Do you think it's wise to start an architecture firm in this economic climate?

    Posted 11-04-2011 06:31 AM
    I've been spilling the beans on how I survived going full time with my business in this disaster and I hope it can help some of you. I live in a city in the top 10 of foreclosed areas in the country and I've been living off residential renovation work which always leads to new residences and some commercial. This is perfect for a sole proprietor with little equipment or cash. Despite the terrible housing start numbers, there is a wealth of middle class people who can't sell homes, but they're still moving on with their lives and renovating is the only option. At least 60% of my clients are pregnant. You're not going to find Requests for Proposals on this type of stuff. The best way to get rolling is to find a good builder that is currently renovating. Renovators are naturally used to doing unique projects and many of my builders would rather someone else do the drafting like I'd rather someone else do my drywall work, as mudding a wall takes more skill than you think. Strip your services down to the bare minimum of what's required for a building permit. If you just do the heavy lifting, you become affordable to these guys and they will feed you work. They compete with each other by the way they trim out a house and sometimes they will pay you to help select finishes and equipment from their resources. My best builder went from small renovations to good sized end user houses. When she builds at spec, she sells her spec houses for the most in my neighborhood. Each spec is unique and it's putting the squeeze on the cookie cutter guys. We need more people out there designing lower end residences if we want to change anyones mind about the value of Architecture. Designing for the 1%ers only isn't making regular folks more excited about good design. I'm proud to be the Architect of the 99%. We need to make good design available to everyone. Remember, Less is More. The less work you do on each project, the more work the builders will feed you. Instead of bundling services for a discount, you're charging the minimum set up fee for a premium. I make better money per hour on this type of work than I do on wealthy end user houses and especially commercial. Go out there and get some of that regular people work!

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    Eric Rawlings AIA
    Owner
    Rawlings Design, Inc.
    Decatur GA
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  • 4.  RE:Do you think it's wise to start an architecture firm in this economic climate?

    Posted 11-07-2011 05:19 PM
    Thank you , Mr Rawlings for sharing your experiences with us.  I especially appreciate what you have to say about designing for the 99%.  This is where my practice has been.  And now that I am living in a working class, midwest city, I will be lucky to have clients in the 99%. 

    Unfortunately the AIA seems to focus on the 1%, and this is what I find to be most frustrating.  The "C" in CRAN stands for custom.  I think it really implies "high-end" or "avante-garde", or better yet, "Eurobox" custom.  This why I bemoan that the AIA just doesn't "get" residential design!

    The AIA published a beautiful brochure years back about hiring an architect for a custom home.  It featured "record Homes, most of which could not be built by a residential contractor.  Most of the 99% will run right to a contractor when they see this type of material indicating that they should work with an architect.  Yes, we architects love the boxy homes made with palnar walls of brick and concrete and voids of mullionless glass, but guess what?  most prospective clients don't.

    I have been advised by two attorneys (both of whom are FAIA members) at AIA seminars,  to run from the AIA small contract documents.  Instead, they advise using an A201 and B141, which we all know are overkill for a small residential project.  Do they really think a carpenter/contractor who works from his kitchen table is going to sing a 17 page contract?!?  You gotta be joking!

    I question whether the AIA understands the challenges of having a small residential practice and whether it supports it.  I look at $650 and wonder if it is better spent on nice books and magazine subscriptions.  Since I relocated I am now strapped with $2,200 in reciprocity fees and will have to pay NCARB membership fees (something I really don't want) for the rest of my career.  It's hard in this economy to justify another $650, if there isn't much value in it.

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    Edward Shannon AIA
    Waterloo IA
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  • 5.  RE:Do you think it's wise to start an architecture firm in this economic climate?

    Posted 11-08-2011 06:29 AM
    When you're talking about a master suite addition or a small, unique spec house for a builder, I think these contracts are overkill and tend to frighten people off. We're not talking about a large fee amount that people try to get out of paying. I've found that a simple email proposal that is agreed upon with a reply is binding enough and not scary at all for the client.

    It used to get very frustrating designing people out of their budgets and not seeing projects emerge from the ground. When it comes to residential work, I believe good design is not about shopping for the newest, most unobtainable material or equipment to make your project stick out. Good design is about taking the same kit of parts and arranging it better than the next guy. This philosophy has helped me get many more projects built than killed.

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    Eric Rawlings AIA
    Owner
    Rawlings Design, Inc.
    Decatur GA
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  • 6.  RE:Do you think it's wise to start an architecture firm in this economic climate?

    Posted 11-09-2011 10:11 AM

    I always think it's a good idea to start your own firm whenever you can ..... if you can. When I got licensed that's what I wanted to do. As an "I got my license" present for myself, I went out and got a new computer, small monotone plotter and my own license of AutoCAD. I got a business phone line (with yellow page listing) in my house and obtained liability insurance. The result; a bunch of crappy side jobs that until recently just barely paid the cost of being an architect, and that has dried up. Ten years later I still haven't figured out how to get good clients and still work for the same firm I was in before I started. Due to some rather expensive family issues I could never save up a cash buffer and now the cash situation is worse than ever. I am starting to think the only way to start a firm is if someone in your family knows someone that needs an architect for a large project, that's how the only people I personally know have been able to do it, one firm starting job. If anyone knows of any resources to learn this stuff please let me know. Can we start a "how to start you own firm" forum?

     

    A word on contacts; you have to have something. On one of the side jobs I managed to get; the contract saved my butt when the home improvement contactor got sued by the home owner. The builder didn't want a contract but luckily I got him to sign one. Wish I never got that job.

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    Thomas Streicher AIA
    Thomas Streicher, Architect
    Monroe NY
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  • 7.  RE:Do you think it's wise to start an architecture firm in this economic climate?

    Posted 11-09-2011 03:55 PM
    Thomas,

    Any user can create a new group on AIA KnowledgeNet. But what has made these discussion forums so successful is the number of architects you already subscribe - for SPP that is over 8,000 AIA members. (You can see the number of subscribers for each Knowledge Community and Member-Created Group on the Discussions main page.)

    AIA San Francisco created a great new resource on starting a firm in their area, but there are many details that can be a resource to an architect in any state: http://aiasf.org/documents/StartingAFirm.pdf

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    Kathleen Simpson
    Manager, Knowledge Communities
    The American Institute of Architects
    Washington DC
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  • 8.  RE:Do you think it's wise to start an architecture firm in this economic climate?

    Posted 11-10-2011 11:26 AM


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    Stacey Clear AIA
    Clear Architecture
    Saint Louis MO
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    Answer to the question: it depends.

    I started my own firm in 2007 after leaving a firm that I had been with for 20 years.  My previous firm and I agreed that I would take 3 particular clients that I had been responsible for bringing to the firm.  One year later, all of those clients had shut down, most of my work dried up and I moved out of a small office I was renting to work from home.  I've been scratching for smaller jobs (ANYTHING!), expanding my network of contacts, taking time to build my skills sets and learning a LOT about myself and the business side of architecture since then.  I work almost all the time, haven't taken a vacation in a couple years and my house has accumulated quite a bit of "deferred maintenance".  Though my wife and 9 year old son love having me around, I am not able to "be" at home as much when I am at home.  My wife and I are tiring of the stressfulness of financial challenges such as self-insurance and sporadic (or no) cash flow.  My business is growing though very slowly.  
     
    I love what I do and find it very, very satisfying to do the work and work directly for my clients - even on very simple projects.  I have met some delightful folks and developed work/friendships that have been a blessing and lead to more referrals.  I have worked for some jerks too, of course.  It is a challenge to not "burn bridges" in those cases.  Some jerks have turned out to have friends that respect my work, pay on time and refer me to other non-jerks.
      
    I have also kept in touch with a few other "graduates" of my previous firm who also started their own businesses.  One in particular has been very successful: in addition to being a talented designer and having won some local awards, he now has employed 4 architects to help get his work done.  I am fascinated to see how my former colleagues have approached their respective practices and the things they have done to be successful.

    Here's my latest understanding of the least you must have - or be willing to develop in yourself -to make a decent living and have a chance at some greater success.  If you want to stay with your spouse/partner, it is very important for them to understand what you are planning to get yourself into.

    Ambition: not just for doing excellent work, but for succeeding in business!  This means you must enjoy and spend almost as much time GETTING THE WORK as doing the work (RFP's, networking, cold calls, post cards, emails, facebook, twitter, entertaining - whatever it takes).  If you can't do this, I wouldn't recommend starting without a partner who can.  Also includes a willingness to creatively apply your talents and find ways to sell your expertise in non-traditional ways.
    Lots of energy and perseverance:  the more work you can do, the more people you can meet, the greater your chances of succeeding.  Includes pushing through those times when no one is calling and the bills are mounting up - and doing this for as many years as it takes.
    Be a Leader:  make yourself the kind of person people want to be around, develop communication skills, be a team player (lead, but play well with others), speak carefully, respect your clients, contractors and building officials, be trustworthy (do what you say), be fair, do the right thing.  
    Design talent: constantly check your work against others you respect and challenge yourself to study the work that non-architects gravitate towards.  Hire or contract talent if necessary.  You are in business: people should want to buy what you are selling.
    Technical competence: seems like a no-brainer, but must include a desire to constantly learn and acquire knowledge and the ability to communicate it to others.

    As architects, we work in an extremely competitive business and this in a depressed/recessed economy.  There are more and more unemployed and underemployed architects scrambling for the same opportunities.  It will be a long time before this changes - if at all.  I'd say that if you don't believe that you have or are able to acquire at least what I've listed above, then keep your day job - or get one.  Life is too short.  If are ready to do all of the above, go for it! -or- if you're already doing it, hang in there!