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Architect Student with Green Architecture Business Questions

  • 1.  Architect Student with Green Architecture Business Questions

    Posted 11-18-2013 01:58 PM
    Hello! 
    I am currently going to school majoring in Architectural Engineering, Architecture, and Business Administration; and one day I have dreams of being CEO of my own firm.  I am taking a class this semester called "Employee to Entrepreneur," and for it we are to design our own business from the ground up.  With the world becoming more green, I was wondering if anyone could give me advice as to if being a "Green Architect" would be a good idea for a business model and if you think it would continue to see increased business. 
    Also, if anyone had advice on better and more details of "starting" this firm and getting my name out there in the market.  
    I have attached the first version of my Powerpoint Presentation that I would eventually like to present to the class, if there are things you think I should add I would very much appreciate any suggestions!  On slide 11, I have a first-year cash flow statement.  I have projected that the first month would only see 10 hours of business (Possibly one client, $175/hr) and it increases at a rate of ten additional hours per month.  Do you feel that this is in any way accurate or could a potential first project of a small green home take many more hours? Accurate pay rate?  
    As you can see, I need a little help with a few of the nitty-gritty details, and I figured AIA would have some great individuals that would be able to help me!

    I appreciate any and all help,
    Thank you!

    -------------------------------------------
    Jake Lara
    Student
    "Lara Engineering and Architecture"
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  • 2.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-19-2013 05:41 PM


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    Rand Soellner
    Architect/Owner/Principal
    Home Architects
    Cashiers NC
    -------------------------------------------
    Jake, my hat's off to you for adopting a business-like attitude.  However, like many of the other Architects in the AIA, ArCH and elsewhere, there is nothing you can really rely on in terms of a yearly income in this business. 
    If you research the Boom and the Bust of 2008-2013 (just now starting to come out of it), you will discover that small, medium and large firms ALL suffered tremendously and it would be naive for anyone in this business to assume that you can expect a steadily increasing income forever, when the unpredictable flow of clients is what actually determines your cashflow.  You can work hard at marketing and at creating excellent architecture; that is the core of a successful practice: being good/great at what you do.  That takes heart, soul, brains, and artistic capability, all of which you can improve on by working hard at it. 

    Regarding "green" architecture as a marketing tool only: is not in your best interests or your clients.  And you may find much indifference out there in the real world when you talk about such things.  Creating environmentally sensitive architecture always will be a good idea, and not just for marketing, but because it's a good thing to do, for you, me, our clients and the world. 
    "Green" as a buzzword may have been invented during the last decade or so, but I assure you, for those of us who have been Architects for much longer than that, most of us have been creating ecologically oriented designs for decades. 
    The catch-phrases may change, but the core values remain the same. 
    But to answer your question: sure: having green/ecological/environmental principles as part of your design philosophy is a good idea.  Just don't expect that to necessarily fuel your business like a rocket.  You may get yawns, even though those are important values that all Architects should hold dear.

    Regarding business: most great Architects earned their success by starving first, doing what they knew was right long before they became superstars.  They became starchitects because of their deeply ingrained design philosophies that resulted in an honest expression of what they were trying to accomplish. Is is okay to want to become a financial success?  Of course!  Who doesn't want that?  But you need to start first with great ideas, not the assumption that this will necessarily turn you into a superstar. You have to have heart. 

    I wish you luck and a bright future.







  • 3.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-20-2013 10:25 PM
    Thank you so much for the advice!  The hardest part about this is finding my "niche" 

    -------------------------------------------
    Jake Lara
    Architect/Engineer/CEO
    Lara Engineering and Architecture
    Laramie WY
    -------------------------------------------








  • 4.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-19-2013 07:25 PM


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    Ron Neggers AIA
    Ron Neggers, Architect
    Evanston IL
    -------------------------------------------
    Ah, to be young and idealistic.

    Sorry, I don't mean to rain on your parade, but I've got ask you, is an architecture practice a good business model to begin with?
    It's a crowded, highly competitive field. Most everything that needs to be built in the US has already been built. You're going to be dealing with a lot of existing buildings. New ground up commissions are few and far between. Most people don't even think of working with an architect when they want a new home. They go to a subdivision and buy a model from a builder.

    All that said, it can be done. You will need tremendous drive and desire. You'll need to find sophisticated clients who value what an architect can bring to the project. As far as compensation goes, look at the AIA compensation guidelines. It ain't pretty. Green is good, but it often seems like many people don't want to pay extra for it. It is becoming more common as new codes are mandating environmental performance.
     
    As a small practitioner, you may want to think of some related types of practice approaches, such as architect as developer. Or design build. Owning income property. Assets to provide multiple streams of income when the economy dips and people hold off on construction. Do some hard research and find your niche.







  • 5.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-20-2013 10:30 PM

    What do you mean as architect as a developer or design build?
    With that said, thank you so much for your input!

    -------------------------------------------
    Jake Lara
    Architect/Engineer/CEO
    Lara Engineering and Architecture
    Laramie WY
    -------------------------------------------








  • 6.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-19-2013 07:34 PM
    Jake -

    I admire your get-up-and-go! The world of architecture is big but not the most lucrative. Whatever you do, it's important to do it because it's important to YOU - not because "the world is getting more green," but because you believe the world SHOULD be getting more green.

    Good luck!
    Judith (70 years old and 27 years in practice)
    -------------------------------------------
    Judith Wasserman AIA
    Bressack & Wasserman
    Palo Alto CA
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  • 7.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-20-2013 10:32 PM
    I couldn't agree more!
    Thank you for in encouragement!


    -------------------------------------------
    Jake Lara
    Architect/Engineer/CEO
    Lara Engineering and Architecture
    Laramie WY
    -------------------------------------------








  • 8.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-20-2013 10:32 AM
    Hi Jake,
    I'm intrigued by your presentation.  Unfortunately it will be a week before I can really get into it to offer feedback.  But quickly, you need to build in some assumptions about the number of projects and workload and test your model.  What if you don't have any work for six to 9 months?  You have nothing listed for rent so I'm assuming you will be working out of your home.  If so, you should probably moonlight for the first year or so.  Also, don't be too quick to borrow money.  Better to save what you need to get started and fight like hell to keep your expenses down.  Lastly, as a sole proprietor, you can't do pro-bono work.  You can only bill your hours so you need to use them to generate cash.  Once you have a bunch of employees, you can get into the pro-bono stuff.

    Also, green is a little played out.  We now just call it common sense.

    -------------------------------------------
    Richard McKay AIA
    Subtlecraft
    New York NY
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  • 9.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-20-2013 03:22 PM
    Hi Jake,

    You have (and will continue no doubt) to receive a wealth of information and advice from the practicing architects on this forum. In addition to the real world experience they've provided in their comments, I would like to point you towards another resource you may also find helpful: the AIA Best Practices

    There are over 400 so I've tried to pull out those most helpful to a start-up practice below.
    In addition, the Small Project Practitioners group has a collection of smaller, more digestible bits of knowledge called the SPP Tips. Here are just a few that could help spark/nourish your entrepreneurial spirit:

    -------------------------------------------
    Ann Harris
    Manager, Knowledge Communities
    Washington, DC
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  • 10.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-20-2013 10:38 PM
    I very much appreciate all of your information and help!
    I will definitely take a look at all of those!!
    Thank you! 

    -------------------------------------------
    Jake Lara
    Architect/Engineer/CEO
    Lara Engineering and Architecture
    Laramie WY
    -------------------------------------------








  • 11.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-20-2013 10:35 PM

    Not even a little pro bono work to get my name out there?
    Thank you for the advice!
    -------------------------------------------
    Jake Lara
    Architect/Engineer/CEO
    Lara Engineering and Architecture
    Laramie WY
    -------------------------------------------








  • 12.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-22-2013 09:17 AM
    Mr. McKay - I'm a little concerned that you mentioned moonlighting to an architecture student. My career goal is to work in the residential sector and since most homes don't need a licensed architect, I've looked into the possibility of doing some moonlighting work to help me get to that goal. What I discovered was that I'm not able to get liability insurance because I'm not licensed and don't have enough experience. Beyond that, there's currently a perception that my employer should be aware of my moonlighting activities, even if I've not shared that information. We all know that it's not our employer's responsibilty to watch over our lives outside of work, but moonlighting activities may still put my employer at risk. They worked just as hard at getting their license as everyone else and ultimately do not deserve to have it put into jeapordy based on the outside actions of one individual.

    I understand many architects get their start through moonlighting, but I caution recommending it as it carries a great deal of risk, risk that you may be unknowingly transferring to those who have had no knowledge of your activities.

    -------------------------------------------
    Brenda Nelson Assoc. AIA
    Woodruff Design, LLC
    Ankeny IA
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  • 13.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-25-2013 06:39 PM
    Jake,

    I agree with Brenda on moonlighting.
    and Mr. McKay is correct too. Live way below your means and have some cash saved up. The only way to make money as sole practitioner is work, work your butt off. Marketing, and beating the bushes takes time and is not billable.

    I have an office policy that officially prohibits moonlighting and that in no way should moonlight work be done on office time or using office supplies, computers, software or any part of the office as a resource. Nor do I allow moonlight phone calls to be taken during office hours. It is also very hard to restrict a moonlight client from calling you during work hours. Should  a moonlight project  get in trouble, I have done my best to insulate DDA from the employee.

    Some people may think because you  work for me, they can get a DDA product without paying for it by using DDA talent on the side at a much reduced rate.

    I would encourage you to try to sell your office and become a more valuable employee. When I sold jobs that could have moonlighted at my old office, they were mine to design and be  responsible for, and I had my employers supervising my work.You hope your employer will recognize your contribution and reward you financially along with letting you do the fun part. It also could get you fired and hurt your reputation, even so far as being accused of steeling. You never know how this can go.

    I would also say, do not under cut professional rates moonlighting. You will learn these are not the people you want to work for anyway. It is very hard to raise your rates if your start out low. 

    As soon as you become employed, the cost to do business goes up fast.
    Business license, FICA doubles, taxes go up, city, state, local, taxes on office contents, an accountant/cpa, computers and software, Healthcare, your car, what about Healthcare? You do get some write offs too. Do not mix personal and work money.There are plenty of people will not pay professional rates nor value the professional process and quality of work it leads too. You learn these are not the people you gnat to work for anyway.

    I will say moonlighting is great way to practice and develop your skills. Practice the key word here. It is definitely a risk reward adventure.
    Will client take on the risk? Will you be able to transfer the risk to the builder or owner. Meeting a client for the first time, helping to create a vision, selling your worth, doing the work, figuring out technical details and the implications. Work with very good engineer,  Collecting for your work is always fun, Can you wait 30 days for pay or 60 or 90 days. Or the best of all,  not  getting paid for what ever excuse the client will have. do have the money to pursue collections, and the time.

    The big one, manning up when you make an error that cost somebody money. Can write the check to cover your error? You will quickly learn to charge serious money for your work after paying to fix architecture where you made an error. It is serious business and many people are counting on your instructions to be accurate and correct.


    -------------------------------------------
    Donald Duffy AIA
    Don Duffy Architecture
    Charlotte NC
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  • 14.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-26-2013 06:16 PM
    Why hasn't anybody mentioned to Jake that his "firm name" (I'm assuming that if Jake is still a student, he isn't registered &/or licensed yet) is illegal in all 50 states & opens him to charges of unlawful practice  of architecture &/or engineering?

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    Carl Handman AIA
    Owner
    Eyerman, Csala, Hapeman & Handman- Architects, LLC
    Forty Fort PA
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  • 15.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-27-2013 05:20 PM

    I told him as much yesterday

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    John Stewart AIA
    Stewart Associates Architects
    San Carlos CA
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  • 16.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-27-2013 05:36 PM
    Good point Carl,

    And Jake are you attending an accredited college of architecture and or engineering program. Or are you in a undergraduate course of study with the intent of transferring to an accredited program for a Master of Architecture?

    Jake, I applaud the work you are doing now, it will pay off.  Many of us wake one day find that self employment, entrepreneurship, ceo, president, owner,  what ever one calls oneself  is a result of life and not that planned out.


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    Donald Duffy AIA
    Don Duffy Architecture
    Charlotte NC
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  • 17.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-27-2013 09:47 AM
    I find it humorous that we look at other professions and compare salaries. Can you image a doctor or attorney moonlighting while while under employment. They would probably be fired and, or sued on the spot. No in these professions employees try to prove worth to the firm by bringing in work in hopes of someday being partners. As Don has said in architecture we allow this which in fact lessens the value of our profession, drives down fees and keeps salaries relatively low.

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    Robert Moore AIA
    Robert E. Moore Architect
    Monroe NC
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  • 18.  RE:Architect Student with Green Architecture Business Questions

    Posted 11-29-2013 01:26 PM
    Doctors moonlight in ER's and doc in the boxes all the time. It's a known way to pick up some major cash for young docs.

    I see most architects moonlighting for additional income, or pro bono work for their church or other social services group, or to start to become established to go out on their own. Unless married to an attorney or doctor, having some work ongoing seems essential to being able to make the leap away from a salary.

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    Pamela Leonard AIA
    Architect
    Jackson MS
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