By Kevin
Harris, FAIA
As architects, we are all familiar with the process and benefits of modeling our
designs prior to construction. Models are an effective medium to study proposed creations and help communicate those concepts to our clients.
Constructing
a model takes time however, it can give us an opportunity to take a break,
reflect on new insights, and manipulate the parts until all seems right.
Working with a model is a process that helps us elevate our plans from good to
better.
As part of
their ongoing effort on identifying what information could best benefit members
of the AIA, the Small Firm Exchange (SFx) distributed its Small Firm Survey
(Beta version) during the 2016 AIA Convention. Its purpose was to identify and
measure the variety and commonalities existing in small firm models with the
goal of providing meaningful insight to all architects practicing in small
firms. It collected data on firm location; staff number, credentials, and
commitment; project numbers, types, locations, and budgets; business plan
existence and update frequency; contract usage; fee methods; gross revenue; and
identified interest areas for additional studies.
The surveys
were distributed as paper copies in both the SFx and AIA Fellow/VIP Lounges at
the convention. Participants in this “Beta” test group formed a small sampling
however, one large enough to reveal certain patterns of important concern to
small firm practitioners.
Most notable
is the fact that very few responded as having,
or updating, a business plan. Those that did have one admitted, at best, to
infrequent review or updating of this important planning tool. A business plan
is widely acknowledged as a basic guide that is to be used throughout the
lifetime of any business. In order to be of value, the plan must be kept
up-to-date!
This brings
up the rhetorical question that, as a profession, why don’t architects apply those
concepts of creative process improvement modeling, used to arrive at better
designs, to plans used to guide their own businesses? Why indeed!
I am also guilty
of spending little to no time on developing, studying, or “modeling” my own
business plan. This SFx survey has piqued my interest on what other things I might
learn from observing other practices. What
patterns are applicable to my own firm?
For example, since I want to improve my financial success, is there a
correlation between firm income and the number of projects each year? Or does
the number of staff in my outfit restrict the types and sizes of projects I can
best handle? What type of contracts do others use? Are there better patterns to distribute the
responsibility hats worn by a sole proprietor when in a firm of 2-4 people, or is
it any better with 5-10? Is a larger firm
more profitable than a sole practitioner without support staff? The data
sampling of small firms must be greatly enlarged to properly study these and
other relevant questions.
Below is a
sample “dashboard” that visually communicates the data gathered from the
initial “Beta” version. Similar outputs will be applied to the digital version,
and will be made available to all who participate. Follow this link to the survey.
Answering basic business questions and conducting mid-stream course corrections is required for your basic business survival. Having access to a database illustrating how your peers address these same issues will go a long way towards guiding you towards a more financially sustainable practice.
Take the survey NOW!
Updated small firm model statistics will follow in a future issue of the CRAN Journal.
Go back to July 2016 CRAN Chronicle