Practice Management Member Conversations

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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I have started firms (3) times in my career. The first was in the late 70's and there was a recession in Michigan.  I found that I picked up enough work to pay the overhead, but no profit.  You need to have enough money to see you through the tough times.  The work I picked up was work that other architects did not want, so you need to be open-minded about what work you will take when starting out.
The last time I started a firm began when I left a partnership.  I had a couple jobs to take with me, so I had cash to pay the overhead.  Still, it's not easy pounding on doors to find work, but with patience and persistence, you can find work.
As for this recession, let's just say that it is different than any I have been through in my 40 years of practice.  We had some good years and fortunately were able to put some of it away.  When the end of 2008 came, we found we were without enough work to pay the overhead.  It has not gotten better.  I feel like I am starting all over again like I did in the 70's. 
So, is this a good time to start a practice?  Let's just say, there is work, but not much out there.  Most clients are very tentative and funding from banks is still a major problem. There is work, though.  You just need to find it.  With many firms going out of business, that leaves an opening for the time when the climate turns around.  If you're there when it turns around, then you will be a success.  If you wait until the business climate is really good, then you may find that the work has already gone to architects that are in business.   Finding individual clients may be tough, but you may find that you can partner with some contractors that do design / build and get some work that way.  I have found a number of relationships with contractors recently who are looking for an architect to work with because their architect that they worked with previously is not in business.
Best of luck in your decision. 
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David Wulff AIA, LEED-AP
David H. Wulff, Architect, Inc.
Lakeland FL
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