architectural firm business plan sample

Architecture Business Plan Template

Written by Dave Lavinsky

Architecture Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their architecture firms. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an architecture business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Architecture Business Plan?

A business plan provides a snapshot of your architecture business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Architecture Firm

If you’re looking to start an architecture business, or grow your existing firm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your firm in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Architecture Businesses

With regards to funding, the main sources of funding for an architectural firm are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the bank will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for architecture firms.

Finish Your Business Plan Today!

How to write a business plan for an architectural firm.

If you want to start an architecture business or expand your current one, you need a business plan. Below we detail what you should include in each section of your architecture firm business plan template.

Executive Summary

Your executive summary provides an introduction to your architecture firm business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of firm you are operating, and its status. For example, are you a startup, do you have a firm that you would like to grow, or are you operating a firm in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the architecture industry. Discuss the type of architecture business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of firm you are operating.

For example, you might operate one of the following types of architecture firms:

• Residential Architecture : this type of architecture business will focus on designing and developing homes. These architects collaborate with homeowners, builders and developers and design various types of houses.
• Commercial Architecture: this type of architecture specializes in projects for businesses entities. The most common non-residential building projects are office buildings, though hospitals are a close second.
• Municipal and Historical Architecture: this type of architecture company works on local government buildings or focuses on historic building restorations.

In addition to explaining the type of architectural firm you will operate, the Company Analysis section of your architecture firm business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start your own business?
• What architectural services will you provide?
• What milestones have you achieved to date? Milestones could include the number of buildings designed, number of positive reviews, number of projects completed, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the architecture industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the architecture industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your business plan:

• How big is the architecture industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your architectural firm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your architecture firm business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners, governments, businesses, contractors, developers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of architectural firm you operate. Clearly, a homeowner would respond to different marketing promotions than a local government, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most architecture firms primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Architecture Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other architecture firms.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes interior designers, home builders, and construction managers. You need to mention such competition as well.

• What types of customers do they serve?
• What types of architecture services do they specialize in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a wider variety of architectural services?
• Will you provide special discounts or perks for customers?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an architecture firm business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of architecture company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to architectural services or products, will you provide other services such as interior design consultations or landscape planning?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the architectural services you offer and their prices.

Place : Place refers to the location of your architecture company. Document your location and mention how the location will impact your success. For example, is your firm located in a busy commercial district, an upscale office building, etc.? Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your firm, including marketing your business, working on current projects, preparing for upcoming projects, and overseeing the entire project.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to design your 100 th building, or when you hope to reach $X in revenue. It could also be when you expect to expand your firm to a new city or expand your architectural services.  

Management Team

To demonstrate your architecture firm’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in architecture. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in overseeing construction projects or successfully running their own architecture or engineering businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your architecture business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an architecture business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or an overview of upcoming projects.  

Putting together your own business plan for your architecture company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert architecture firm business plan; download it to PDF to show banks and investors. You will really understand the architecture industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow your own business.  

Architecture Firm Business Plan FAQs

What is the easiest way to complete my architecture business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Architecture Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of architecture business you are operating and the status; for example, are you a startup, do you have an architecture business that you would like to grow, or are you operating a chain of architecture businesses?

Don’t you wish there was a faster, easier way to finish your Architecture business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

8+ SAMPLE Architect Business Plan in PDF

Architect business plan, 8+ sample architect business plan, what is an architect business plan, different types of business plans, how to make an architect business plan, reasons to have a business plan, why is an architect business plan important, what is the role of a business architect, what is the architect’s vision for the building.

Re Architect Business Plan

Sample Architect Business Plan

Landscape Architect Business Plan

General Architect Business Plan

Architect Business Plan Template

Architect Final Business Plan

Standard Architect Business Plan

Small Architect Business Plan

Architect Business Strategy Plan

Step 1: state your executive summary, step 2: add a company overview, step 3: do your market research, step 4: description of products or services, step 5: tabulate your funding request and financial projections, step 6: appendix, share this post on your network, file formats, word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates, you may also like these articles, 5+ sample investment company business plan in pdf.

What do you do when you have tons of spare cash lying around your home or burning a hole in your wallet or expensive jeans pocket? For some people, the…

41+ SAMPLE Unit Plan Templates in PDF | MS Word

As a teacher, you might know about every school policy, the steps to keep classrooms safe for intellectual development, how to set up an organized classroom, and the proposed…

browse by categories

• Questionnaire
• Description
• Reconciliation
• Certificate
• Spreadsheet

Information

• privacy policy
• Terms & Conditions

Architectural Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting an architectural company? If YES, here’s a complete sample architectural firm business plan template & feasibility report you can use for FREE to raise money .

Okay, so we have considered all the requirements for starting an architectural business . We also took it further by analyzing and drafting a sample architectural service marketing plan template backed up by actionable guerrilla marketing ideas for architectural firms. So let’s proceed to the business planning section.

All over the word the real estate business is such that have done so well in terms of patronage and it isn’t a news that those in the architectural line are one of the people who makes erecting buildings possible. It is for this reason that a lot of people are known to throng into the trade from all parts of the world. It is indeed a great business to delve into as well as live on.

One of the first steps to take in starting the business is to first of all be sure that you are conversant with the trade. You may want to consider studying an architectural related course in school so that you can learn all the basic ropes that have to be learnt.

Thereafter, you will need other researches to pull through. Run a feasibility research on the industry in general; speak with experts and what have you. As you plan to launch out in trade, you will also need to write a good and detailed business plan.

This might pose a threat especially if you do not know a thing about drawing up a plan. This is where working with a template comes to play Here is a sample Architectural business plan for your use:

A Sample Architectural Firm Business Plan Template

1. industry overview.

Architects play a major role in the construction industry, as a matter of fact, architects are responsible for the planning and designing of residential, institutional, recreational, commercial and industrial buildings and structures by applying their knowledge of design, construction procedures, zoning regulations, building codes and building materials et al.

Hence, the architectural services industry is made up of firms who primarily engaged in planning and designing residential, institutional, leisure, commercial and industrial buildings and structures by applying knowledge of design, construction procedures, zoning regulations, building codes and building materials.

A close watch shows that he Architectural Services industry has finally begun to experience steady recovery from the economic downturn, although revenue remains below the industry’s 2007 peak due to the prolonged effects of the market crash of the real estate industry.

On the other hand, the construction market has recently shown sign of recovery, with the values of both residential and nonresidential construction rising over the last five years. Furthermore, firms’ cost-cutting efforts during the economic downturn have improved profit margins, even as the industry’s workforce has once again begun to expand.

Going forward, environmentally friendly design will increase in importance to architecture firms as downstream construction markets continue to improve and the industry proceeds with its recovery. The Architectural Services industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, France, Italy, Holland, Switzerland, Japan, China, Germany, and Canada et al.

Statistics has it that in the united states of America alone, there are about 80,948 registered and licensed Architectural Services firm responsible for employing about 217,640 and the industry rakes in a whooping sum of $38 billion annually.

The industry is projected to enjoy 2.9 percent annual growth. It is important to state that there is no establishment in this industry that has a lion market share. Over and above, the Architectural Services industry is characterized by many small-scale consultants, often individual proprietors and partners who operate in narrow geographic markets.

Although a majority of industry establishments do not have a payroll, non – employers generate only about 10.0 percent of the industry revenue. The fragmented nature of this industry is also evident when comparing the size of enterprises that have employees.

IBISWORLD projected that in 2016, an estimated 67.4 percent of firms with a payroll have fewer than five employees and only 1.0 percent of firms have more than 100 workers. The industry’s low level of concentration means that no firm holds a dominant position in the market.

It was also estimated that the four largest players in this industry account for less than 5.0 percent of the total revenue to be generated in the industry in 2016

One thing is certain about starting an architectural firm, if you are able to conduct your market research and feasibility studies , you are more likely not going to struggle to secure clients because there are always individuals, constructions companies  and corporate organization who would want to hire your services from time to time.

Lastly, as an architectural firm, you can afford to partner with other firms that are into construction and building services. You can partner with construction companies, you can partner with real estate firms and you can partner with the government et al.

The bottom line is that, if you have a robust network and you are well positioned, you can indeed maximize your architectural services business.

2. Executive Summary

Kent De Clark® Architectural Firm, LLP is a registered and licensed architectural services firm that will be based in New York City – New York.

The firm will handle all aspect of architectural design related services; services such as planning and designing residential, institutional, leisure, commercial and industrial buildings and structures by applying knowledge of design, construction procedures, zoning regulations, building codes and building materials and other related tax return preparation services.

We are aware that to run a standard architectural services firm can be demanding which is why we are well trained, certified and equipped to perform excellently well. Kent De Clark® Architectural Firm, LLP is a client – focused and result driven architectural services firm that provides broad- based services at an affordable fee that won’t in any way put a hole in the pockets of our clients.

We will offer a standard and professional architectural design services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they hire our services.

At Kent De Clark® Architectural Firm, LLP, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the architectural services industry

Kent De Clark® Architectural Firm, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become the leading brand in the architectural services industry in the whole of New York City – New York, and also to be amongst the top 20 architectural firm services businesses in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that New York City – New York is the right place to launch our architectural services firm before sourcing for clients from other cities in The United States of America.

Kent De Clark® Architectural Firm, LLP is founded by Kent De Clark and Willy Brian, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business.

Kent De Clark has well over 5 years of experience working at various capacity within the architectural services industry in the United States of America.

Kent De Clark is a graduate of Columbia Graduate School of Architecture, Planning, and Preservation Columbia University and Willy Brain graduated from Yale School of Architecture, Yale University. They both have the required experience and qualifications to build a world class architectural firm.

3. Our Products and Services

Kent De Clark® Architectural Firm, LLP is going to offer varieties of services within the scope of the architectural services industry in the United States of America. Our intention of starting our architectural services firm is to favorably compete with leading players in the architectural services industry both in the United States of America and in the world at large.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offering are listed below;

• New project architectural services
• Renovation and rehabilitation architectural services
• Basic designing
• Providing construction phase services
• Planning and providing predesigned services
• Interior designing and providing building fit-out services
• Construction project management
• Planning and predesigned
• Feasibility studies
• Landscape and urban design
• Building and Facility restoration
• Building architectural design services
• Other architectural design services consulting and advisory related services

4. Our Mission and Vision Statement

• Our vision is to build an architectural services brand that will become the number one choice for both smaller businesses and corporate clients in the whole of New York City – New York. Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to position our architectural services firm to become the leading brand in the architectural services industry in the whole of New York City – New York, and also to be amongst the top 20 architectural services firms in the United States of America within the first 10 years of operations.

Our Business Structure

Normally we would have settled for two or three staff members, but as part of our plan to build a standard architectural services firm in New York City – New York, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of architectural services business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around New York City – New York as long as they are willing and ready to work with us to achieve our business goals and objectives.

Below is the business structure that we will build Kent De Clark® Architectural Firm, LLP;

• Chief Executive Officer

Admin and HR Manager

Marketing and Sales Executive

• Customer Care Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for creating building designs and highly detailed drawings both by hand and by using specialist computer-aided design (CAD) applications
• Responsible for liaising with construction professionals about the feasibility of potential projects
• Responsible for working around constraining factors such as town planning legislation, environmental impact and project budget
• Works closely with a team of other professionals such as building service engineers, construction managers, quantity surveyors and architectural technologists
• Applies for planning permission and advice from governmental new build and legal departments
• Responsible for writing and presenting reports, proposals, applications and contracts
• In charge of choosing the materials to be used and specifying the requirements for the project
• Adapts plans according to circumstances and resolving any problems that may arise during construction
• Responsible for making sure the project is running according to schedule and budget
• Plays a part in project and team management
• Travels regularly to building sites, proposed locations and client meetings
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversee the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• create reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive/Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Kent De Clark® Architectural Firm, LLP engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured architectural services firm that can favorably compete in the highly competitive architectural services industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Kent De Clark® Architectural Firm, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Kent De Clark® Architectural Firm, LLP

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained, qualified and equipped to pay attention to details and to deliver excellent architectural designs. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new architectural services firm, it might take some time for our organization to break into the market and gain acceptance especially from big corporate clients in the already saturated architectural services industry; that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.

• Opportunities:

The opportunities in the architectural services industry is massive considering the number of construction and real estate companies who can’t do with key services provided by only the architectural industry. As a standard and well – positioned architectural service firm, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as an architectural service firm operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The architectural services industry is indeed a very large industry and of course it is one industry that works for businesses basically within the real estate industry and construction industries.

It means that to survive as an architectural firm, you would need to network with major players in the aforementioned industries and not ignoring government because in most countries of the world, the government at all level are the major players in the construction industry.

It is a bit challenging for new entrant to come into this industry; the primary barrier to the entry for new establishment is the stiff registration requirements applicable in most countries not just the United States of America.

As a matter of fact, architectural firms cum Architects must comply with local licensing criteria set out by registration boards and professional associations to obtain registration in their country or the state they want to operate from. This usually requires applicants to hold an accredited tertiary qualification before they can undertake written tests of skills, knowledge and abilities; and often to gain practical experience working with a local architect’s office.

A close watch of happenings in the architectural services industry shows that over the last five years, global investment into commercial building developments collapsed, leading to faltering demand for the industry’s services, particularly in the United States, Europe and Japan.

However, growth in emerging economies mitigated some of the industry’s declines. In the coming years, rising business sentiment will boost investment in building construction and for architectural design services. In addition, rising demand for environmentally friendly building will provide growth opportunities for operators.

8. Our Target Market

The demographic and psychographics composition of those who need the services of architectural services providers cuts across both small businesses and large corporations.

Kent De Clark® Architectural Firm, LLP will initially serve small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading architectural service firms in the United States.

As a standard and licensed architectural service firm, Kent De Clark® Architectural Firm, LLP offers a wide range of financial consulting services hence we are well trained and equipped to services a wide range of clientele base.

Our target market cuts across businesses of different sizes in both the construction and the real estate industries. We are coming into the industry with a business concept that will enable us work with the small businesses and bigger corporations in and around New York City – New York and other cities in the United States of America.

Below is a list of the businesses and organizations that we have specifically design our products and services for;

• Construction Companies
• Real Estate Firms
• Individuals
• Blue Chips Companies
• Corporate Organizations
• Religious Organizations
• Hotels and Restaurants
• The Government (Public Sector)

Our Competitive Advantage

The level of competitions in the architectural services industry depends largely on the location of the business and of course the business model . If you can successfully create a unique brand identity for your architectural services firm or carve out a unique market, you are likely going to experience less competition.

For instance if you are one of the few architectural service firms in your locations that has the most qualified and experienced architects under your payroll, you are likely going to have a competitive advantage over your competitors.

We are quite aware that to be highly competitive in the architectural services industry means that we should be able to deliver consistent quality designs and services, our clients should be able to pay for our services and we should be able to meet the expectations of clients.

Kent De Clark® Architectural Firm, LLP might be a new entrant into the architectural services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified architects and design experts in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups architectural services firm) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Kent De Clark® Architectural Firm, LLP is established with the aim of maximizing profits in the architectural services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients especially government clients.

Kent De Clark® Architectural Firm, LLP will generate income by offering the following architectural services for construction companies, real estate firms, and the government and for corporate organizations et al;

10. Sales Forecast

One thing is certain, there would always be construction companies, real estate firms, and the government and for corporate organizations et al who would need the services of professional architectural services providers.

We are well positioned to take on the available market in New York City – New York and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City to other cities in New York and other states in the U.S.

We have been able to critically examine the architectural services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York City – New York.

Below are the sales projection for Kent De Clark® Architectural Firm, LLP, it is based on the location of our business and the wide range of architectural related services that we will be offering to our clients;

• First Fiscal Year-: $250,000
• Second Fiscal Year-:  $450,000
• Third Fiscal Year-:  $1 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst architects and architectural service providers and other related building design service providers in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent designs and job deliveries speaks for us in the marketplace; we want to build a standard and world – class architectural service firm that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our architectural service firm to become one of the top 20 architectural service firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the New York City – New York, but also in other cities in the United States of America.

Kent De Clark® Architectural Firm, LLP is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our architectural services business by sending introductory letters alongside our brochure to construction companies, real estate firms, corporate organizations, households and key stake holders in New York City and other cities in New York.
• Promptness in bidding for architectural design contracts from the government, construction companies, real estate firms and other corporate organizations
• Advertise our business in relevant construction and real estate related magazines, newspapers, TV stations, and radio station.
• List our architectural services firm business on yellow pages ads (local directories)
• Attend relevant international and local finance and business expos, seminars, and business fairs et al
• Create different packages for different category of clients (start – ups and established corporate organizations) in order to work with their budgets and still deliver quality architectural design cum services to them
• Leverage on the internet to promote our architectural services firm
• Engage in direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our architectural services firm business. Below are the platforms we will leverage on to boost our brand and to promote and advertise our business;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that we position our banners and billboards in strategic positions all around New York City – New York
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact construction companies, real estate firms, and the government and corporate organizations et al by calling them up and informing them of Kent De Clark® Architectural Firm, LLP and the services we offer
• Advertise our business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pay per design, project and hourly billing for architectural design services is a long – time tradition in the industry.  However, for some types of architectural design services, flat fees make more sense because they allow clients to better predict service costs.

As a result of this, Kent De Clark® Architectural Firm, LLP will charge our clients a flat fee for many basic architectural design services et al.

At Kent De Clark® Architectural Firm, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients that would need regular access to architectural consultancy and advisory services and assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs. So also, we aware of government contracts, we will ensure that we abide by the bidding requirement for such contracts.

• Payment Options

The payment policy adopted by Kent De Clark® Architectural Firm, LLP is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Kent De Clark® Architectural Firm, LLP will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting an architectural firm, there are some key factors that should serve as a guide. Factor such as have printing machine you need in house or outsourcing your printing jobs to other services providers.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an architectural services firm business; it might differ in other countries due to the value of their money. Below are some of the basic areas we will spend our start – up capital in setting up our architectural services firm;

• The total cost for hiring Business Consultant – $2,500
• The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
• The Total Fee for incorporating the Business in the United States of America – $750.
• The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• Marketing promotion expenses for the grand opening of Kent De Clark® Architectural Firm, LLP in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for purchase of the required software applications (CAD Software, Architectural software, CRM software, and Accounting Software et al) – $10,500
• The Cost of Launching your official Website – $600
• Budget for paying  at least three employees for 3 months plus utility bills – $10,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need over one hundred and fifty thousand ( 150,000 ) U.S. dollars to successfully set – up a small scale but standard architectural services firm in the United States of America.

Generating Funding / Startup Capital for Kent De Clark® Architectural Firm, LLP

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Kent De Clark® Architectural Firm, LLP is a business that will be owned and managed by Kent De Clark and his business partner Willy Brain. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Kent De Clark® Architectural Firm, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our architectural design services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Kent De Clark® Architectural Firm, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress.
• Application for business license and permit: Completed
• Securing a standard office facility (renovation of the facility inclusive): Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress.
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress.
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress.
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In Progress.
• Creating Official Website for the Company: In Progress.
• Creating Awareness for the business (Business PR): In Progress.
• Health and Safety and Fire Safety Arrangement: In Progress.
• Establishing business relationship with vendors and key players in the industry: In Progress.

Related Posts:

• Dump Truck Business Plan [Sample Template]
• Diamond Cutting and Polishing Business Plan [Sample Template]
• Home Remodeling Business Plan [Sample Template]
• Excavation Company Business Plan [Sample Template]
• Mechanical Engineering Business Plan [Sample Template]

• Sample Business Plans
• Construction, Architecture & Engineering

Architecture Business Plan

Starting an architecture business can be a lucrative venture, but the process of starting a business may feel complex and overwhelming to get started.

You should thoroughly understand the legal regulations, client acquisition strategies, and industry and business dynamics before you start crafting designs.

Having a foolproof business plan will not only help you understand your business better but will also play a key role in raising capital for your business.

Need help writing a business plan for your architecture business? You’re at the right place. Our architecture business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How To Write An Architecture Business Plan?

Writing an architecture business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Architecture services:.

Highlight the architecture services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Residential Architecture
• Commercial Architecture
• Landscape Architecture
• Interior Designing
• Industrial Architecture

Describe the legal structure of your architecture company, whether it is a sole proprietorship, LLC, partnership, or others.

Mission Statement:

Business history:.

If you’re an established architecture service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Competitive analysis:, market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your architect business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the architecture services your business will offer. This list may include services like,

• Architectural design
• Site analysis and planning
• Construction documentation
• Interior design
• Sustainable design and green building
• Urban design

Describe each service:

Quality measures.

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your architecture plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your architecture firm business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your architecture business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for architecture, such as computer hardware and CAD/BIM software, large format printers, presentation equipment, measuring tools, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your architecture business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your architecture services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more.These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the architecture industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your architectural firm business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample architecture business plan will provide an idea for writing a successful architecture plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our architecture business plan pdf .

Related Posts

Interior Design Business Plan

Construction Company Business Plan

Write a Customer Analysis Section

Guide for Making a Business Plan Presentation

Main Parts of Business Plan

How to Write a Business Problem Statement

Frequently asked questions, why do you need an architecture business plan.

A business plan is an essential tool for anyone looking to start or run a successful architecture business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your architecture company.

How to get funding for your architecture business?

There are several ways to get funding for your architecture business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your architecture business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your architecture business plan and outline your vision as you have in your mind.

What is the easiest way to write your drone business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any architecture business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Item added to your cart

Here is a free business plan sample for an architect practice.

If you're an aspiring architect with a vision for your own firm but are unsure of the first steps to take, you've landed on the right page.

In the content that follows, we will present to you a comprehensive sample business plan tailored for an architectural practice.

As you might be aware, a meticulously developed business plan is a cornerstone of success for any entrepreneur. It serves as a roadmap, guiding you through the establishment of your vision, objectives, and strategies for your architectural firm.

To craft a robust plan with clarity and precision, you can utilize our architect business plan template. Our team of experts is also at your disposal to review and refine your plan at no extra cost.

How to draft a great business plan for your architect practice?

A good business plan for an architectural firm must reflect the unique aspects of the architecture industry.

Initially, it is crucial to provide a comprehensive overview of the architecture market. This includes up-to-date statistics and an analysis of emerging trends within the industry, similar to what we have outlined in our architectural firm business plan template .

Your business plan should articulate your firm's vision clearly. Define your target market (such as residential, commercial, or governmental clients), and establish your firm's distinctive approach to design (sustainable practices, innovative use of materials, focus on certain architectural styles, etc.).

Market analysis is a key component. This section should delve into the competitive landscape, identifying potential competitors, understanding market demands, and recognizing the preferences of your client base.

For an architectural firm, it is important to detail the services you will offer. This could range from initial design concepts to full project management services, including 3D modeling, interior design, and landscape architecture. Explain how these services cater to the needs of your clients.

The operational plan is vital. It should outline the location of your office, the structure of your design and project teams, partnerships with contractors or engineering firms, and your project management approach.

Emphasize the expertise of your team, the technology and software used in design processes, and the standards of quality and compliance with building codes and regulations.

Address your marketing and client acquisition strategies. How will you build your firm's reputation and secure projects? Consider networking within the industry, participation in architectural competitions, and methods for client retention.

Incorporating digital strategies, such as a professional website showcasing your portfolio, and an active presence on platforms relevant to the industry, is also crucial in the digital age.

The financial plan is another critical element. It should include the initial capital required, revenue projections, operational expenses, and the point at which the firm will become profitable.

In architecture, project timelines can be long, and cash flow management is essential, so a thorough understanding of your financials is imperative. For assistance, you can refer to our financial forecast for an architectural firm .

Compared to other business plans, an architectural firm's plan must pay special attention to the portfolio of past projects, the firm's design philosophy, compliance with specific industry regulations, and the cultivation of client relationships.

A well-crafted business plan will not only help you clarify your firm's direction and strategy but also attract clients, investors, or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear understanding of how the firm will manage projects and grow over time.

By presenting a detailed and substantiated plan, you showcase your professionalism and dedication to the success of your architectural firm.

To achieve these goals while saving time, you can start with our architectural firm business plan template .

A free example of business plan for an architect practice

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an architect .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The architecture industry is a dynamic and evolving sector with significant impact on the economy.

Recent studies have shown that the global architecture market is valued at over 300 billion dollars, with projections indicating steady growth in the coming years. This is driven by urbanization, the redevelopment of urban spaces, and the need for sustainable and innovative design solutions.

In the United States, there are over 100,000 architectural firms, contributing to an annual revenue of approximately 40 billion dollars. This underscores the vital role of architecture in shaping the built environment and influencing the quality of life for individuals and communities.

Current trends in the architecture industry highlight a move towards more sustainable and technologically integrated designs.

Green architecture is gaining momentum, with an emphasis on energy-efficient buildings, the use of renewable materials, and designs that minimize environmental impact. Biophilic design, which incorporates natural elements into the built environment, is also becoming increasingly popular.

Technological advancements such as Building Information Modeling (BIM), 3D printing, and virtual reality are transforming the way architects design and communicate their visions, allowing for greater precision and client engagement.

There is also a growing trend towards adaptive reuse, where old buildings are repurposed for new uses, preserving history while meeting modern needs.

Moreover, the demand for smart cities and mixed-use developments reflects a desire for multifunctional spaces that promote convenience and community engagement.

These trends demonstrate the architecture industry's adaptability and its commitment to addressing the evolving needs and values of society.

Success Factors

The success of an architectural firm hinges on several critical factors.

First and foremost, design excellence is paramount. Firms that consistently deliver innovative and aesthetically pleasing designs are more likely to build a strong reputation and attract clients.

Understanding and integrating the latest industry trends, such as sustainability and smart technology, can also set a firm apart in a competitive market.

Location and networking play a significant role, as a firm that is well-connected within the community and industry can leverage these relationships for new opportunities.

Client service is another key element, with successful firms providing clear communication, transparency, and collaboration throughout the design and construction process.

Lastly, effective project management and financial planning are essential for delivering projects on time and within budget, ensuring the firm's profitability and longevity.

The Project

Project presentation.

Our architectural firm project is designed to cater to the increasing demand for sustainable and innovative living spaces. Situated in an urban area with a burgeoning real estate market, our firm will specialize in creating eco-friendly, energy-efficient residential and commercial structures. We will offer a comprehensive range of services, from initial design to project management, ensuring that each building is not only aesthetically pleasing but also functionally superior and environmentally responsible.

The emphasis will be on utilizing cutting-edge design principles and green technologies to deliver spaces that enhance the quality of life for occupants while minimizing environmental impact.

Our architectural firm aspires to become a leader in sustainable design, setting new standards for environmentally conscious construction and urban development.

Value Proposition

The value proposition of our architectural firm is centered on delivering innovative and sustainable design solutions that resonate with the modern-day client's desire for eco-friendly and smart living spaces.

Our dedication to sustainability, aesthetic excellence, and functional design offers a unique proposition in the architecture market, while also promoting the well-being of our clients and the planet.

We are committed to fostering a culture of sustainability in architecture, aiming to inspire our clients and the community to embrace green living and to contribute to the global effort of reducing the carbon footprint of the built environment.

Our firm seeks to be a beacon of innovation, offering a compelling alternative to conventional architecture and improving the quality of life for our clients and future generations.

Project Owner

The project owner is an architect with a passion for sustainable design and a deep understanding of the complexities of modern architecture.

With a background in environmental science and years of experience in architectural design, he is determined to establish a firm that stands out for its commitment to innovation, sustainability, and client satisfaction.

With a vision of creating spaces that are in harmony with the environment, he is resolved to deliver projects that are not only beautiful and functional but also contribute positively to the ecosystem.

His dedication to excellence and his passion for sustainable architecture make him the driving force behind this project, aiming to redefine the standards of the industry and to enhance the living standards of the community through responsible design.

The Market Study

Target market.

The target market for this architectural firm encompasses several distinct segments.

Firstly, there are private clients looking to design or renovate their homes with a unique architectural vision that reflects their personal style and needs.

Secondly, the firm caters to real estate developers seeking innovative and sustainable architectural designs for residential or commercial projects.

Additionally, the market includes government and institutional clients requiring architectural services for public infrastructure, educational facilities, or cultural buildings.

Lastly, the firm can attract collaborations with interior designers and landscapers who require architectural expertise to complement their projects.

SWOT Analysis

A SWOT analysis of this architectural firm highlights several key factors.

Strengths include a strong portfolio of past projects, expertise in sustainable design, and a reputation for creativity and attention to detail.

Weaknesses might involve the cyclical nature of the construction industry and the firm's reliance on economic conditions affecting building investment.

Opportunities can be found in the growing trend towards eco-friendly and smart buildings, as well as in the potential for international projects.

Threats may include intense competition from other architectural firms and the challenge of staying abreast of rapidly evolving building technologies and regulations.

Competitor Analysis

Competitor analysis in the architectural sector indicates a highly competitive environment.

Direct competitors include other architectural firms with similar service offerings, ranging from boutique studios to large multinational corporations.

These competitors vie for clients by showcasing their design innovation, technical expertise, and successful project delivery.

Key competitive advantages may involve a firm's specialized knowledge in certain types of architecture, its track record of on-time and on-budget project completion, and its ability to secure high-profile projects.

Understanding the competitive landscape is crucial for carving out a niche and ensuring client acquisition and retention.

Competitive Advantages

Our architectural firm's competitive edge lies in our commitment to sustainable and context-sensitive design.

We offer personalized service that ensures each client's vision is brought to life with precision and artistry.

Our expertise in the latest architectural technologies and trends allows us to provide innovative solutions that are both aesthetically pleasing and environmentally responsible.

We also pride ourselves on our collaborative approach, working closely with clients, engineers, and builders to create cohesive and functional designs that stand the test of time.

You can also read our articles about: - how to start an architect practice: a complete guide - the customer segments of an architect practice - the competition study for an architect practice

The Strategy

Development plan.

Our three-year development plan for the architectural firm is designed to establish us as a leader in sustainable and innovative design.

In the first year, we will concentrate on building a robust portfolio and establishing strong relationships with local clients and contractors. We aim to be recognized for our unique design solutions and customer service excellence.

The second year will be focused on expanding our services to include interior design and landscape architecture, thereby offering a comprehensive design package to our clients.

In the third year, we plan to leverage our growing reputation to enter new markets and explore international projects. We will also invest in research and development to integrate cutting-edge technology such as virtual reality presentations and advanced 3D modeling in our design process.

Throughout this period, we will adhere to our core values of sustainability, functionality, and aesthetic excellence to serve our clients' needs and stay ahead of industry trends.

Business Model Canvas

The Business Model Canvas for our architectural firm targets clients seeking innovative and sustainable architectural solutions for residential, commercial, and public projects.

Our value proposition is centered on delivering environmentally responsible and aesthetically pleasing designs that are tailored to the specific needs of each client.

We offer our services through direct consultations, project management, and collaboration with construction firms, utilizing our key resources such as our skilled design team and state-of-the-art design software.

Key activities include client consultations, design conceptualization, project management, and ongoing client support.

Our revenue streams are generated from design fees, project management services, and consulting, while our costs are primarily related to staffing, technology investments, and marketing.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on showcasing our design expertise and sustainable practices.

We aim to engage our target audience through a strong online presence, including a portfolio of our past projects and client testimonials. We will also participate in industry events and competitions to gain visibility.

Networking with real estate developers, construction companies, and environmental organizations will be a cornerstone of our strategy to secure referrals and partnerships.

Additionally, we will leverage social media and architectural publications to reach a wider audience and establish thought leadership in sustainable design.

Risk Policy

The risk policy for our architectural firm is designed to mitigate risks associated with project delivery, client satisfaction, and regulatory compliance.

We will ensure adherence to all building codes and regulations, maintain professional indemnity insurance, and implement rigorous quality control processes throughout the design and project management phases.

Our financial risk will be managed through careful project costing, diversified revenue streams, and prudent financial planning.

Ultimately, our goal is to deliver exceptional design services while managing the inherent risks of the architecture industry.

Why Our Project is Viable

We are committed to establishing an architectural firm that stands at the forefront of sustainable and innovative design.

With a focus on client satisfaction, environmental responsibility, and design excellence, we believe our firm is well-positioned to succeed in a market that increasingly values these qualities.

We are prepared to adapt to the evolving demands of the architecture industry and are excited about the opportunity to shape the built environment for the better.

We look forward to a future where our firm is synonymous with cutting-edge, sustainable architecture.

You can also read our articles about: - the Business Model Canvas of an architect practice - the marketing strategy for an architect practice

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an architect and our financial plan for an architect .

Initial expenses for our architectural firm include acquiring state-of-the-art design software, setting up a professional office space that fosters creativity and client engagement, obtaining necessary business licenses and insurance, investing in high-quality marketing materials, and developing a robust website to showcase our portfolio. Additionally, we will incur costs for ongoing professional development to stay abreast of the latest design trends and building codes.

Our revenue assumptions are based on a thorough market analysis of the demand for innovative and sustainable architectural services, considering the increasing interest in eco-friendly and energy-efficient building designs.

We anticipate a gradual increase in project contracts, starting with smaller residential assignments and expanding to larger commercial developments as our firm's reputation for quality and sustainability grows.

The projected income statement reflects expected revenues from our architectural design services, project management fees, and consultation charges, minus the costs of operations (software subscriptions, salaries, office maintenance), and other expenses (marketing, insurance, professional fees).

This results in a forecasted net profit that is essential for assessing the long-term viability of our architectural firm.

The projected balance sheet provides a snapshot of our firm's assets, such as office equipment, software licenses, and accounts receivable, against liabilities including business loans and accounts payable.

It demonstrates the overall financial position of our architectural firm at the conclusion of each fiscal period.

Our projected cash flow statement details the inflows from client payments and outflows for expenses like salaries and software licenses, enabling us to predict our financial needs and maintain a healthy cash reserve.

The projected financing plan outlines the mix of personal investment, business loans, and possible grants we intend to secure to fund our startup costs.

The working capital requirement for our architectural firm will be diligently managed to ensure we have sufficient funds to support day-to-day operations, such as paying staff, purchasing office supplies, and maintaining our professional licenses.

The break-even analysis for our firm calculates the number of projects we need to complete to cover all our costs, including initial investments, and begin generating profits.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the average project margin, the current ratio to evaluate our short-term financial resilience, and the return on equity to measure the profitability of the capital invested in our firm.

These metrics will assist us in gauging the financial health and success of our architectural practice.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an architect practice .

• Choosing a selection results in a full page refresh.
• Opens in a new window.

Free Download: Architect Business Plan

• Enoch Sears
• • June 10, 2013

If someone asked me a few years ago whether as an Architect I ever considered having a business or marketing plan in place, I would be very tempted to snap back saying we are designers and not measly marketers or businessmen.

Well, however true that might sound even today, let me ask you a simple question, how do you get new clients?

Let’s look at it this way – say you are thinking of taking a short holiday with your spouse and kids. What if you just step out one fine day without any idea as to where you are going (business plan) & how will you get there (marketing plan)? You will be clueless as to what you’ll need and how much money the trip will cost, it just wouldn’t work. Just as a charted course will keep a ship from the shore, your business plan will help you reach your goals.

Well, this article is not about throwing a bunch of business jargon at you but to give you an overview of some of the useful aspects of a business and marketing plan. You won’t believe how simple yet powerful this small exercise could be for the growth of any business until you do it. Let’s take a quick look at the various elements that I have tailored exclusively for architecture firms.

• Company Vision, Goals and Objectives – This defines where the company is going in terms of facts and figures e.g. To become a leading architecture firm in town by year 2020 or generate 15% profit on 100 million dollars by 2020.
• Company Mission – This states what the company does and how they do it. You could identify services you offer and clients you cater to e.g. XYZ firm offers contemporary business interiors for mid sized corporates.
• Market Overview or Audit – This section helps put together an analysis of the overall market, competition and internal assessment of the company itself. Here you can learn how much business in your niche is available for grabs using various research tools. You will lay the groundwork for marketing your architecture firm .
• Market Segmentation – Select the segments or niche that your firm can best serve in terms of geographic location, industry or any other measurable e.g.: New corporate interior projects in Northern California.
• Competitive Advantage – This is an extremely critical aspect of a business plan in any industry as it identifies what are the firm’s strengths and weaknesses compared to that of competition. Why should any customer come knocking to your door and not go to the architecture firm down the street? How are you better or different?
• Strategies and Tactics – Now that you’ve identified your niche and point of differentiation, its time to list how to get those customers in the door. Lunch meetings, scouting for references, free consultation offers, social media outreach – what is it that will bring in new customers?
• Budget & Timelines – Here, you can allocate resources to achieve maximum return on investment. It’s better if you can account for the smallest overheads and tentative time frames for each project. This will help you determine realistic fee quotes per project and cut down on unnecessary expenses.
• Tracking and Monitoring – It is important to keep track of what works, what doesn’t and how much has been allocated to each project. A simple way is to establish quantifiable goals and budgets for each project and review the performance metrics after each big project or at least twice a year.

Free Business Plan Worksheet

To help you get started with your architect business plan, join the Business of Architecture email list for solo architects and small architecture firms and I’ll send you a free business plan worksheet. Just tell me where to send it:

YES! SEND ME THE BUSINESS PLAN TEMPLATE

Just as a ship needs to chart a course to reach it's destination, an architect without a business plan runs the risk of ending up shipwrecked on the shore. Don't feel like you have to make an exhaustive business plan 100 pages thick. That might keep you from ever getting started. The important thing is to answer the 8 questions above, write them down, and review them on a regular basis with your partners and team members.

So what do you say? Do you have a business plan? If you don't, why not? Do you think a business plan is important for a solo architect? Tell me your thoughts in the comments below!

ENOCH SEARS

Enoch Bartlett Sears is the founder of the Architect Business Institute, Business of Architecture and co-founder of the Architect Marketing Institute . He helps architects become category leaders in their market. Enoch hosts the #1 rated interview podcast for architects, the Business of Architecture Show where prominent guests like M. Arthur Gensler, Jr. and Thom Mayne share tips and strategies for success in architecture.

5 Responses

Great, simply put, important advice.

In a business plan, should we mention the strategy including how the business will run? ex: partnership, associates, or other business model, because we know that architect is well known as a self employee, but the other side the business and its services could be as bigger as a big scale corporation with a lot of employee.

Regards, Miphz

Great question! I would definitely consider those factors if they heavily impact my finances. And with a firm as big, the business plan in general will have to much more detailed along with a financial growth plan for next three to five years. The above post is intended to jump start small firms on a thought trail that will help them be on track and potentially grow. Hope this answers your question.

Thanks for this- very simple prompts on subjects requiring thought for successfully development of a growing practice

I agree with you

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

HTML tags are not allowed.

708,256 Spambots Blocked by Simple Comments

JavaScript must be turned on to leave a comment.

Free video reveals:, how to double your architecture firm income in the next 12 months.

Fill out the form below to get free, instant access:

Related articles, the ultimate guide to marketing for architects (with examples).

If you’ve been an architect for any amount of time you know what it feels like to be price-shopped, to have clients question your architectural

• Terms of Service

Copyright All Rights Reserved

4216 S. Mooney Blvd #320

Architect Business Institute, LLC

WHERE SHALL I SEND YOUR FREE

Business plan template, we value your privacy.

EntreArchitect // Small Firm Entrepreneur Architects

Business training and resources for small firm entrepreneur architects.

Aug 15 2017

How to Write a Business Plan for Your Architecture Firm in 60 Minutes or Less

A simple business plan for architects.

No one told me that I needed to know how to run a business. I’m an architect. I just need to tack up my shingle, design great buildings and clients will come knocking. Right?

Maybe… but whether clients come knocking or not, its not so simple to keep them knocking.

The solution? Write a business plan.

I know, I know; “I don’t need a business plan,” you say. “It takes too much time and effort.”

The knowledge you gain by the process of developing a business plan may be more valuable to you than the actual plan itself.

Wait! Before you discount my suggestion, think about it from a different perspective. A simple, stripped down perspective. Your first business plan doesn’t need to be a 100 page document, with financial projections and fully developed marketing strategies. In fact, I recommend that it not be.

Start with just one page.

Jim Horan, author of The One Page Business Plan series of books says, “The greatest value in creating a business plan is not the final document. It’s the communication, prioritization, focus, clarity and learning that make the process worthwhile.”

A 5 Step Process for a Simple Business Plan for Architects

Here is a simple 5 step process to develop a completed business plan for architects in 60 minutes or less.

• Get started by taking a single sheet of paper and writing a single paragraph describing your vision . What will your business someday look like?
• Then scribe your mission . Why are you starting this business?
• List a few simple strategies . How do you get there?
• Then a few specific goals ; benchmarks that will lead you to executing your strategies.
• With goals set, commit to paper an action plan . What specific tasks will you accomplish to reach your goals? When will you accomplish them? Who will accomplish them?

That’s it… a business plan. Done. It really is that simple.

Revisit your Business Plan Often

I revisit and revise my business plan at least twice a year. As our firm grows and evolves, priorities change, markets shift, economies collapse. My business plan needs to evolve too.

It’s also a great source of inspiration and motivation. A periodic reminder of my big ideas and reasons-for-being, keeps me focused and wanting to push my architecture firm to the next level.

So, go do it. Reach over and grab a sheet of paper. Do it now… Don’t wait. It will take less than 60 minutes.

What’s your vision?

Question: Do you have a written business plan for your architecture firm?

Photo Credit: Shutterstock /  Jan Faukner

January 21, 2019 at 2:31 AM

yes i want to make business plan

November 17, 2021 at 2:40 AM

I want to make plan

February 14, 2022 at 9:19 AM

I want to prepare a business plan for a very high ended Architectural firm. I want to target elite projects in uk.

October 3, 2022 at 1:46 PM

I like the idea that “a business plan is less complex than your anxiety is telling you, so just into it and you’ll suddenly be done!” So this is very appealing. I’d been envisioning this more as a living document. Something like an employee handbook or BIM Execution Plan, it’d contain steps, resources, standards, etc. I’d imagine this also as a tool for investor relations, something that can be shared with insiders to show that it’s worth putting money into. Writing one page over the course of 60 minutes – I get this as a get-started exercise, but couldn’t it be doing much more for you once you get it to a certain point?

October 3, 2022 at 1:49 PM

Yes. 100%. The intent is to prepare a document that you can call “done”, then use as the basis for a more detailed guiding business plan.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Practice Management

• Community Home
• Discussion 2.8K
• Library 111
• Our Events 2
• Members 14.1K

Quick Links

• PMKC Leadership
• Best Practices
• PM Digest: Research in practice
• PM Digest: Business basics
• PM Digest: HR in practice

The Practice Management Knowledge Community (PMKC) identifies and develops information on the business of architecture for use by the profession to maintain and improve the quality of the professional and business environment.  The PMKC initiates programs, provides content and serves as a resource to other knowledge communities, and acts as experts on AIA Institute programs and policies that pertain to a wide variety of business practices and trends.

PM Discussion Board ->

Practice FAQ: How do I create a business plan to start an architectural firm?

By ashley harvey posted 06-01-2018 06:13 pm.

When discussing the creation of their firms, many architects will state “I went to school to be an architect, not a business owner.” Ironically, that is the exact position aspiring leaders find themselves in when they’ve decided to start their own firms. A business plan is one of the key components to convey the organizational structure and goals for your new business.

Creating your business plan

The AIA Small Firm Exchange has researched various business models to determine which are the best options to sustain an architectural practice. The SFx Business Plan Template has been created to assist architects in developing and evaluating sustainable business practices. Though created with small firms being the primary audience for the business plan template, the information provided can be adapted to firms of any size.  

Other resources to explore when creating a business plan offer various tips to consider when building your plan.  In “ How to Draft a Business Plan ”, Nate Berg states a good business plan is a living document and should be updated to keep up with the changes of the firm, market and business goals.

Find a mentor

A mentor is an effective way to tap into knowledge from a firm owner that can provide firsthand experience with developing a business plan as well as provide effective business strategies. The significance of a mentoring program is described in the Architect’s Handbook of Professional Practice. One of the key benefits of a mentoring program is stated as “helping a firm achieve its vision by supporting… long-range strategic and business plan goals” (DeBernard, 491).

Building your firm

Setting aside time to thoroughly map out the potential course of your business will make a great impact in the future. Planning for the highs and lows associated with running a business as discussed in “ How to build a small firm ” will help you think critically about your business’ future and give you the foresight to handle any situation accordingly.

Works Cited:

Berg, Nate. “How to Draft a Business Plan.” Architect Magazine , July 15, 2014, http://www.architectmagazine.com/practice/how-to-draft-a-business-plan_o

DeBernard, Deborah M., AIA, NCARB, Architect-AIBC, LEED BD+C “8.4 Professional Development and Mentoring”.

Privacy Policy Terms of Use Code of Ethics Contact Us

AIA Network

AIA Conference on Architecture AIA Contract Docs AIAU AIA Foundation AIA Design Shop AIA Trust

Need a business plan? Call now:

Talk to our experts:

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB1 Business Plan
• EB2 Visa Business Plan
• EB5 Business Plan
• Innovator Founder Visa Business Plan
• UK Start-Up Visa Business Plan
• UK Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Start-Up Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Planning 
• Landlord Business Plan 
• Nonprofit Start-Up Business Plan 
• USDA Business Plan
• Cannabis business plan 
• eCommerce business plan
• Online Boutique Business Plan
• Mobile Application Business Plan
• Daycare business plan
• Restaurant business plan
• Food Delivery Business Plan
• Real Estate Business Plan
• Business Continuity Plan
• Buy Side Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Architecture Firm Business Plan Template

Published Sep.06, 2013

Updated Apr.19, 2024

By: Noor Muhammad

Average rating 5 / 5. Vote count: 2

No votes so far! Be the first to rate this post.

Table of Content

Architecture Firm Business Plan for Starting Your Business

Do you want to start an architectural firm? An architecture firm provides interior and exterior designing services varying from small works like designing a room, to larger projects such as designing a complex structure. Whereas, several tasks can also require expertise in the latest architectural software. So, if you have decided to enter this venture, you are required to make a business plan for architecture firm . By doing so you can avoid certain problems that can come up with the initiation. In case you are confused about how to start an architecture business , read the following sample business plan for a startup named, Michael Architects, based in New York.

Executive Summary

To give you a summarized view on how to start a business architecture and take the decisions appropriately we are sharing details about Michael Architects startup. So, if you want to know how to run an architecture firm efficiently, you can get a lot of help from here.

2.1 The Business

Michael Architects will be a registered and insured architectural firm based in Buffalo, New York. The company will work for improving and enhancing the structures and communities in which we live – utilizing proper technical approach to plan and design big and small structures

2.2 Management of Architectural Firm

Michael Architects will be owned by Michael Craig. Craig will be managing the firm by himself. Craig wants to use his skills to run his business as he acknowledges that starting an architectural firm is a much easier task than running it.

2.3 Customers of Architectural Firm

Target customers of Michael Architects will be the homeowners, government agencies, construction company business , and contractors. Knowing the importance of marketing for architectural firms to attract the desired community, our company will be taking effective steps to attract these target groups.

2.4 Business Target

Before you even think about how to start an architecture firm , set your goals for your business as it can help you a lot in taking major decisions. Michael Architects aims at providing the best experience to both its customers and workers. Moreover, becoming a renowned company and recovering the investments within one year of the launch is the company’s main goal.

Company Summary

3.1 company owner.

Michael Craig will be the owner of Michael Architects. Craig has an MBA degree from Stanford University. Besides just a degree, Craig has exceptional managing skills along with 6-year experience of working as a manager in a famous architecture agency , Perkins and Will.

3.2 Why the Architectural Firm Business is being started

Based on his experience in an architectural firm, Craig had realized that the architecture business is a business which had a never-ending scope. From the small task of deigning a corridor – to a larger one such as planning a road, people will always need the services of architects. So, to invest his and his employee’s energies into a work that the world needed frequently and to make a profit in this domain, Craig had decided to start a business in the architecture domain.

3.3 How the Architectural Firm Business will be started

A building owned by Craig himself in Buffalo, a city of New York, was supposed to be interiorly decorated and designed to convert it to an extremely beautiful artifact. The building will serve as a sample to attract target customers. Moreover, Craig has decided to hire the required crew 2 months before the launch so that he could get the work of engineering his firm’s building done by the professionals of his own company. Michael Architects will be financed by the owner himself. The firm will be ensuring a strong web presence to show its work and expertise to a wider audience. Moreover, effective steps will be taken to make an influential architecture marketing plan. The detailed start-up information is given below:

Services for Customers

Before starting your own architectural practice , it is essential to know how does an architecture firm work . Deciding your services even before the launch can help you in exploring the ways through which you can facilitate your customers. Moreover, it can help you in devising an effective architecture marketing plan for marketing architectural services . To give you a notion of services that an architectural firm provide, we are enlisting some from the plan of Michael Architects.

• Interior Design: Our architects will be using their brainstorming ideas to add beauty and value to your roofs, floors, doors, windows, corridors any other space interior design business to your building.
• Restoration of old buildings: Our workers will repair the defects and will do more than just ‘restoration’. We know which antique structures, doors, and windows have to be replaced to modernize your existing property.
• Modern Architecture Design: We will be using innovative techniques to design your buildings according to the modern world. Using the high-quality glass, steel, wood and reinforced concrete we can give your property a view that you had only imagined.
• Landscape Designing: To give your property a complete, natural, look, our architects will be working on any outdoor area. Our workers can transform any piece of land for environmental or aesthetic purposes.

Along with these services, we will also open a small store for selling pet-related products like shampoos, foods, medicines, ties, chains, and clothes for the dogs.

Marketing Analysis of Architecture Firm Business

A common component of all successful business plans for architects is an accurate marketing analysis. Analyzing your market before the actual launch can help you in making major decisions such as what quality you will have to provide to your customers to make them come again – and which sort of architectural design ideas you have to offer to keep pace with the demands of your community. Though for a fresh architecture startup , it is hard to recognize the things which must be noticed to analyze the market properly. So, to give you an idea about which things should be under your vigilant observation, we are providing a detailed sample of the marketing plan of Michael Architects.

5.1 Market Trends

According to a report by IBISWorld, more than 71 thousand architecture firms are currently operating in the United States. The outlet also revealed the exact stats showing the revenue generated by architecture firms on an annual basis in the United States this year – which is $46 billion. The amount is no doubt, more than that anybody could expect because this is the sort of business which can earn great profit even from a single project if done properly Though more than 233 thousand people are servicing in architectural firms, there is still demand for many. IBISWorld has reported a 4.1 percent growth rate in the business of architecture firms this year, which means more people can still enter the domain. These satisfying stats and figures demonstrate that one cannot be at a loss if they prepare well before starting their firm.

Operational and Strategic Planning

5.2 marketing segmentation.

As an entrepreneur the biggest question on your mind would be, how to find architecture clients ? It can easily be figured out by you, yourself if you divide the wide range of people into three and four groups. Such segmentation will help you to recognize their demands and devising your marketing strategy according to them. The groups which can become our potential customers are:

The detailed marketing segmentation comprising the company’s target audience is as follows:

5.2.1 Real Estate Owners

The people who own any sort of building for public and personal use will be our topmost target. Such as a person running a restaurant will need our constant services to make their place attractive for their customers. Several homeowners also require architecture firm services for implementing a new staircase or installing modern flooring.

5.2.2 Contractors & Construction Companies

The second group of our target customers will comprise of the construction companies and contractors who will need our services whenever they get some project. A constructor just builds the idea of an architect, so in collaboration with our architecture firm they can build the designs which can amaze everyone.

5.2.3 Government Agencies

To maintain and preserve the art in old historic buildings, government agencies will be needing our services of restoration. Moreover, our services will be a permanent requirement for them to keep the city’s structures appearing as maintained architecture models. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Michael Architects aims at providing the best services to its customers and the best environment for its workers. Within the next three years, we want to be a renowned figure in the world of architecture firms.

Our financial goals are:

• To balance the startup costs with earned profits by the end of the first year
• To get the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year

5.4 Product Pricing

Although the market demands for new architecture firms is high, we still have priced our services low for the first eight months of our launch. Our pricing will also be used as a tactic for marketing architecture firm and it will also be helping our startup to get introduced to the people who can become our potential clients in future.

Architecture Marketing Strategy

If you are passionate for creating an architecture firm, the part you must focus on is the sales strategy. In define a strategic plan , you have to look up for architectural marketing ideas and decide which would suit your startup the most.

From this sample business development plan for an architecture firm, you can get the idea of how others are publicizing their architectural services.

6.1 Competitive Analysis

Under the extensive experience of our staff and architects and managing skills of our firm owner, we will be ensuring top quality work even in limited resources.

Our workers are highly collaborative and will keep in touch with you during the project so that you can get exactly the work which you want. Moreover, using design software like AutoCAD, Revit, etc. we can give you a view before implementing your idea so that you can introduce any changes.

Lastly, our prices are extremely low in the first year providing a golden chance for you to try our services even if you require small works like modernizing a corridor or a balcony.

6.2 Sales Strategy

To get introduced to our target customers, we will:

• Keep our prices low in the first year
• Advertise our services through local newspapers, magazines, and social media
• Display various views of our own-designed firm as proof of our experience and skills
• Use SEO techniques to ensure a strong web presence

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

If you are thinking about how to set up an architectural practice which will not end up as a failure you must focus on the staff you hire.

Personnel plan

After all, it is the personnel that decided the future of a startup.

The same can be applied for if you are worrying about how to manage an architecture business because the construction management business can be effective only if you hire the right person for the right job.

7.1 Company Staff

Michael will be the owner and manager by himself, however, he will hire the following people:

• 1 Accountant to keep financial records
• 3 Architects to work on the projects
• 5 Field Employees to work as laborers
• 1 Technician to upkeep the machinery
• 1 Structure Engineer to help in providing sustainable solutions
• 2 Drivers for transportation works
• 1 IT Expert to manage the company’s online record, website and social sites

7.2 Average Salary of Employees

Financial plan.

The final part in developing your <strong>architecture firm business plan<strong> is to make a financial plan. A financial plan must cover the details about how much money will be spent by you in certain situations and on which portion of your startup you will be spending the most. It must also contain the details about your plans to balance your investments with the earned profits.

Though, Michael himself was a person of this domain, yet, he had decided to have this task done by a person who was a professional financial expert and had much more experience than him. The sample financial plan of Michael Architects is given here for help.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Architecture Firm Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Ice Vending Machine Business Plan

OGScapital at the National Citizenship and Immigration Conference

How to Start a Plumbing Business in 2024: A Detailed Guide

Vegetable Farming Business Plan

Trading Business Plan

How To Write A Textile Manufacturing Business Plan

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

• About company
• GENERAL CONTRACTOR

+7 (495) 526-30-40 +7 (49657) 0-30-99

THE HISTORY OF THE COMPANY CREATION

1993 how the construction company remstroy was created   the year 1993 was a period when a lot of construction companies, which had been working successfully during the soviet times and had rich staff capacity, were forced to cease their activity for various reasons. a lot of capable specialists either had to look for another job or change their field. but there were also those who were willing to realise their potential in the field of construction in accordance with the received degree and the experience they had accumulated. thus, in 1993 in elektrostal (moscow oblast) a group of specialists and people sharing each other’s ideas, who had enormous educational background and the highest degree in architecture, organized and registered ooo firm erg which began its rapid development and successful work, offering its service both on the construction market and other areas. 2000 industrial construction is the main area   seven years of successful work have shown that combining different types of activities in the same company is not always convenient. and in the year 2000 the founders of ooo firm erg decided to create and register a monoprofile construction company ooo remstroy construction company. industrial construction was chosen as the priority area. it was in this area that the directors of ooo sk remstroy began their working life and grew as specialists. in order to achieve the set goal, they selected a mobile team of professionals in the field of industrial construction, which allows us to cope with the tasks assigned to ooo sk remstroy throughout russia and the near abroad. 2010 manufacturing of metal structures   we possess modern equipment that allows us to carry out the entire cycle of works on the manufacture of metal structures of any complexity without assistance. designing – production – installation of metal structures. a staff of professionals and well-coordinated interaction of the departments let us carry out the work as soon as possible and in accordance with all customer’s requirements.” extract from the list of members of self-regulatory organizations, construction.

LICENSE OF MINISTRY OF EMERGENCY SITUATIONS

Certificates, system of managing quality.

SYSTEM OF ECOLOGIAL MANAGEMENT

SYSTEM OF OCCUPATIONAL SAFETY AND HEALTH MANAGEMENT

LETTERS OF RECOMMENDATION

THE GEOGRAPHY OF CONSTRUCTION SITES

YOU CAN FIND MORE INFORMATION ON THE CONSTRUCTION SITES OF OOO REMSTROY ON THE PAGE OF THE SITE

OUR CLIENTS

http://remstroi.pro/yandex-promyshlennoe-stroitelstvo

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Architectural Engineering Business Plan

Start your own architectural engineering business plan

Pyramid Engineering

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Pyramid Engineering is a firm specializing in mechanical, electrical, plumbing and fire protection. We provide engineering, design and consulting services on government, educational, health care and commercial facilities, and through subcontracting with architects working on such facilities. The firm  provides engineering services using technologically superior processes, providing greater value for clients and enhanced design and construction.

The target clients are architectural firms. The targeted work is segmented into five categories: educational, health care, commercial and government facilities, and contractors. Pyramid’s competitive edge will be our knowledge of digital-based design resources. Superior customer service will also be a point of firm differentiation. Implementation of a quality control and assurance program will also provide a focus for production.

Pyramid Engineering, P.C. was created as a professional corporation chartered in Pennsylvania.   The company is privately owned by the four founding partners: John Lavoie, Tom Heasley, John Solarczyk and Eric Haugh, all licensed engineers, with a combined 90 years of experience in their fields.

Year 1 sales are expected to exceed $350,000 and increase to in excess of $400,000 by the end of Year 2. The current year will mark the first year of profitability with expected profits rising significantly by the end of Year 3.

The most significant challenges ahead include expanding the client base, and ultimately positioning the firm to have a presence in a larger global market.

This business plan outlines the objective, focus, and implementation of this firm. We are seeking an additional $26,000 of short-term borrowing to maintain our cash flow over the next year as we become profitable.

1.1 Mission

Our mission is to provide top quality professional engineering service for construction and related activities to a balanced mix of public and private clients. We are committed to high standards of client service, staff development, ethical practice and reasonable profit.

Our clients will seek us out for our reputation as a truly integrated engineering firm whose ability to collaborate extends beyond our own walls to embrace our clients, the entire project team and the surrounding community.

We will be recognized for our design excellence, systems integration and commitment to sustainability. Our designs will advance the concept of the unity of people, materials and environment which function as a greater whole.

We seek to add value through innovation and creativity, aligning ourselves with our clients’ goals, delivering services that meet their quality, schedules and cost objectives.

1.2 Objectives

Pyramid has identified the following objectives:

• Revenues of $350,000 in Year 1, approaching $400,000 at the end of 5 years.
• Achieve 10% of market at the end of the fifth year of operation.
• Reach profitability within three years.
• Become a premier engineering firm in western and central Pennsylvania within five years.

1.3 Keys to Success

Pyramid has identified several keys to success that will be instrumental in creating a sustainable business. If these keys are followed, the likelihood of success will significantly increase.

• Excellence in providing professional quality services on time and on budget.
• Developing visibility to generate new business leads.
• Developing a follow-up strategy to gauge performance with clients.
• Implementing and maintaining a quality control and assurance policy.
• Leveraging expertise from our combined experience into multiple revenue generation opportunities:  mechanical, electrical, plumbing, fire protection, and project consulting.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Pyramid Engineering was incorporated four years ago and is located in Altoona, Pennsylvania. Comprised of highly qualified registered professional engineers, Pyramid provides services in the fields of Electrical, Mechanical, Plumbing and Fire Protection Engineering. Market segments serviced by the firm include local and state governments, educational institutions, health care facilities, and commercial groups with facilities needed design, updates, or repair.

Pyramid’s engineers are registered in a total of 22 states and the District of Columbia, and together have over 90+ years of combined work experience. As a result of talent, dedication and hard work, Pyramid is able to provide expertise and leadership throughout an interactive design process. By maintaining communication and integrated design concepts, Pyramid creates a design unique to its clients’ needs.

Our services include consulting, engineering and design services, from conceptional design through building start-up, on a wide variety of facilities, including new and upgraded commercial, institutional, governmental, and health care complexes. Our focus will be public and private sector architectural markets in the Northeast, and direct consulting to government and health care groups with multiple facilities.

2.1 Company History

Pyramid Engineering was founded by the four partners. In 2000 it was incorporated as a professional corporation. The company was operated as a part time enterprise, building its initial client base. In October 2002, full time operation was started on a progressive schedule, until all of the partners were full time in May 2003.

In keeping with the company philosophy of avoiding the use of large start-up debt, the goal was to start-up as inexpensively as possible. This is in line with industry figures that show that engineering and consulting start-ups are ideal entrepreneurial opportunities with low start-up costs.

Total start-up expense was financed from accounts received from the 1999 through 2002 revenues. No salaries or payments to the partners were made during this initial start-up period.

Full time operation was started with existing revenues and accounts receivable of over $60,000. This was coupled with an initial SBA line of credit loan of $50,000 to cover the day to day operation and salary expense. Accounts receivable are billed monthly and usually paid net 60 days.

2.2 Company Ownership

Pyramid Engineering, P.C. was created as a professional corporation chartered in Pennsylvania.   The company is privately owned by the four founding partners.

• John M. Lavoie, P.E.   Mr Lavoie has over 50 years of diverse experience in electrical engineering, project management, and management for both large consulting firms and industry. He has designed power distribution, lighting, communication, security and fire protection systems for both newly constructed and renovated industrial, commercial, and institutional  buildings. He is equally familiar and experienced in primary power distribution, variable speed drives systems, PLC, process control and instrumentation.
• Thomas C. Heasley, Jr., P.E.   Mr Heasley has over 17 years of experience in electrical engineering and project management. His experience includes the design of medium and low voltage distribution systems, interior and exterior lighting, HVAC power and control, fire protection and alarm systems, telecommunications, security and CCTV systems, computer power, UPS and PLC control systems.
• John J. Solarczyk, P.E.   Mr Solarczyk has over 14 years experience in mechanical engineering and project management. His experience includes the design of chilled water, hot water, steam and heat pump systems, performing energy efficiency surveys, and utilizing measuring and testing equipment. He is also very familiar with the latest building control systems, in particular, direct digital control systems.
• Eric C. Haugh, P.E.   Mr Haugh has over 11 years experience in mechanical engineering. His experience includes the design of sanitary, storm, domestic water, gas and medical gas systems. He is NICET certified in sprinkler system layout, which includes the design of wet, dry, FM200 and standpipe systems.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

• Educational Facilities
• Health/Senior Facilities
• Commercial Buildings
• Government Facilities
• Program Management
• Contractor Design/Build Engineering Assistance
• Subcontracting services to other Architectural/Engineering Firms.

The company is project oriented, where each project involves:

• Renovations
• Rehabilitation
• New construction

We offer innovative and economical design services, maintaining state-of-art design technology.   We meet client needs on projects of all sizes.

Services include defining client needs, preparing bid documents, tendering bid analysis, construction review, payment certification, contract administration, warranty inspections.   Projects include new facilities, renovations, repairs, and remodeling.

3.1 Sales Literature

We have developed a brochure system which covers a broad spectrum of target market segments. This system is modular in nature and includes many ‘boiler plate’ sections which may be edited to suite specific needs. Brochure inserts are maintained as individual sheets to facilitate their assembly in any custom situation.

Our website  includes a description of services, the areas which we plan to serve, contact information, a list of representative projects, and brief resumes. The website address is http:\\www.pyramidmep.com.

We will continue to develop a series of templates for project proposals. The format for all proposals will include:

• Cover letter
• Scope of services for project
• Fee  (if requested)
• Firms qualifications to provide services (overview)
• Project team (describes each persons tasks and qualifications)
• Philosophy of design approach
• Relevant experience
• Schedule to provide services

3.2 Technology

Pyramid Engineering utilizes modern technology at all phases of a project.  All work is carried out using CAD software, including preliminary design and presentation work.  It is more cost effective, quicker and more accurate than traditional methods.  We also use specialty design software as well as internet transfer of information between ourselves, other consultants and our clients.

Pyramid maintains comprehensive, Windows based analysis tools for design.

Pyramid maintains an Internet website complete with file transfer and e-mail capabilities.

3.3 Future Services

Project Consulting: Proposed and billed on a per-project and per-milestone basis, project consulting offers a client company a way to harness our specific qualities and use our expertise to develop and / or implement plans, from conceptual planning to turnover.   Proposal costs will be associated with each project.

Dispute Resolution:  We will draw upon our broad range of construction and contract administration experience to provide dispute resolution services, including arbitration, mediation and expert reports for litigation.

Restoration Engineering:  We would provide condition survey, design, and construction review services for repair of buildings.

Fabrication and Detailing Drawings:  To serve the special needs of mechanical contractors, Pyramid will be offering these services to contractors in the future.

Market Analysis Summary how to do a market analysis for your business plan.">

A very broad and extensive market base exists which, if properly pursed, can easily allow us to achieve our stated revenue / growth goals. Our targeted client base is taken from the following sectors:

• Governments – State, County, Local.
• Private Sector/Commercial – Developers, Realtors, Banks, Building Owners.
• Health Care/Senior Facilities
• Educational Institutions – Private and Public universities, Private Schools.
• Engineering/Architectural Firms – Subcontracting.

4.1 Market Segmentation

• Government:   After years of government downsizing, the need for local and state government work will continue to be steady, as state agencies and local governments begin to renovate existing facilities to handle their restructured programs. This means the addition of new facilities and renovated spaces. Government construction spending should be on the increase.
• Educational:  New school construction reached a high in the 1990’s, due to the ‘Baby-Boomer’ generation.   In spite of voter demand for reduced taxes, education appears to still be receiving a strong vote of confidence. Education construction projects show continued growth for the early 2000’s.
• Private and Commercial Sectors:  The emphasis is predominately on renovation of existing facilities, not new construction. Companies will continue to extract more efficient use of existing space, as they re-engineer existing operations through new work patterns. The retail industry is benefiting from an effort by many cities to rejuvenate core business districts.  Renovation of existing centers to attract or retain shoppers is the key theme.   Many retail chains are investing to give face lifts to older stores to remain competitive.  The growth of mega retailers continues, with smaller stores on line for less populated areas.
• Health Care / Senior Facilities:   Nationwide, managed care is in a state of flux. This new direction is fueling the potential growth and modification of health care delivery and health care facilities. Today, care giving and health maintenance have become natural extensions of existing businesses that include primary care, long term care, therapies, home care, hospice and respite care. Many other companies who have been on the sidelines over the years are now benefiting from expansion, including ancillary services, such as pharmacies, laboratories, medical equipment and drug research facilities. Investors and financial merger potentials are being attracted to larger scale ventures in the area of health care / senior facilities.
• Architectural and Engineering Firms: As a group, we have good working relationships with a number of architectural and engineering firms throughout the Northeast. We have consulted on several major projects over the last two years, and will continue to expand this segment of our services. 

4.2 Target Market Segment Strategy

All of our target market segments have buildings or facility needs which require skilled engineering work to design and implement. They need engineers who understand their needs, their budget constraints, and the legal and code requirements for their facilities’ purposes and locations.

Our engineers are certified, with many years of experience in their fields, and ongoing relationships with government developers and planners, commercial developers, and local school districts throughout the Northeast. We will use these contacts to learn of new projects, develop competitive bids, and provide high-quality services to these market segments.

In addition, architectural and engineering firms often have need additional engineering consulting. Architects will always need skilled engineers to make their designs a reality, and large engineering firms sometimes have more work than they can handle.

In targeting work established architectural firms, our strategy is to offer them a viable resource from which to draw upon. We can undertake the entire mechanical, electrical, plumbing, and fire protection engineering process for their architectural projects.

4.3 Service Business Analysis

The engineering, design and consulting business consists of many smaller consulting organizations and individual consultants for every one of the few dozen well-known architectural / engineering companies.

Consulting participants range from major international name-brand consultants to hundreds of  individuals. One of Pyramid’s challenges will be establishing itself as a “real” engineering, design and consulting company, positioned as a relatively risk-free corporate purchase.

4.3.1 Competition and Buying Patterns

The key element in purchase decisions made at the Pyramid client level is trust in the professional reputation and reliability of the engineering firm.

Clients rarely compare consultants directly, looking for two, or more, possible providers for a proposed project or job. Usually, they follow word-of-mouth recommendations and past reputation, rather than selecting from a menu of possible providers.

The most important element of general competition, by far, is what it takes to keep clients for repeat business. It is worth making huge concessions in any single project to maintain a client relationship that brings the client back for the future projects.

Strategy and Implementation Summary

Pyramid will utilize its existing contacts with architects, governmental agencies, commercial developers and local school districts to increase word-of-mouth about our business. We have a standard brochure on our expertise and specialties which will be sent to architectural firms recommended to us by our current contacts.

Our marketing to architects and developers focuses on our thorough engineering expertise across the full range of skills necessary for any project. Examples of previous work and recommendations from former employers are available for the asking. Our individual reputations as reliable, skilled, knowledgeable resources, combined with our range of expertise as a team, will appeal strongly to those looking for subcontractors.

Pyramid has focused on the western and central Pennsylvania area initially. We are licensed to practice in most states in the eastern United States, and will continue to expand into these areas.

5.1 Competitive Edge

Pyramid Engineering, P.C. has the following competitive edges:

• State-of-the-art modeling, design, engineering, analysis and drafting capabilities.
• Quality control and assurance program.
• Experienced, knowledgeable owners/engineers, with a thorough understanding of building codes and the target market.

For established engineering and architectural firms who require mechanical, electrical, plumbing, and fire protection engineering and consulting services, Pyramid offers a competitive and economical option. Projects may be delegated to Pyramid directly or arrangements can be made to supplement and assist their own in-house staff.

Most engineering work is billed on an hourly basis to predetermined levels dictated by project schedule milestones. We have assigned a rate of $75/hour for basic engineering/consulting services and $40/hour for drafting services. These are conservative values for the engineering market. We have used conservative unit rates to remain more competitive.

5.2 Marketing Strategy

We will be using the internet and personal contacts in our sales promotion.  These, together with a well targeted direct mail and e-mail campaign, will make all the major players in the marketplace aware of our presence.

We will focus our limited advertising budgets to promote community sponsored events. We will also offer technical services at discount rates to non-profit organizations.

5.3 Sales Strategy

Sales in our business is client service. It is repeat business. One doesn’t sell an engineering  project, one develops a proposal that works for the client.

We must always be aware of the big-company consulting phenomenon of the split between selling the job and fulfilling the job, which leads to client dissatisfaction. The job should be developed, scoped, sold, and fulfilled by the same people. Our clients should never buy a job from one partner and have it delivered by anybody other than that same partner.

We need to avoid the temptation to drop fees to gain jobs. When a potential client questions the cost of a project, we explain the benefits. If the budget is for less money, then we must offer less service. Billing rates are not negotiated.

5.3.1 Sales Forecast

The following table and chart give a run-down on forecasted sales. In the last four months we have achieved sales of roughly $29,000 per month. We expect sales to remain at a relatively constant level for the next year.

Direct unit costs for the year consist solely of labor; these can be found in the Personnel Plan. Labor rates have been set at 70% of unit revenues, which yields a 30% gross margin.   In the next year, we plan to increase gross margin to 35% as a result of providing a more efficient service to our clients.

Our unit rate for basic engineering/consulting service has been set at $75/hour. This is a conservative assumption based on published salary guideline levels for engineering professionals. Our unit rate for CAD services is $40/hour 

5.4 Milestones

The accompanying table lists important milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. Early milestones concern planning for the next three years, followed by further development of marketing and sales literature. We have also included ongoing meetings and reviews to confirm that our planned sales and expenses are matching our actual results.

Web Plan Summary

The website will be used as a marketing tool. It will offer a description of the services offered as well as listing of different clients served. Also included is a history of the firm, resumes of key members of the management team, and completed project descriptions and photographs.

6.1 Website Marketing Strategy

The plan for marketing the site is fairly simple: we will submit it to search engines such as Google, and list the website on all the company’s correspondence and printed marketing/sales media.

6.2 Development Requirements

Pyramid will develop and build the site. The initial website, www.pyramidmep.com, was up and running May 2003.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The company will be led by the four principals: John Lavoie, Tom Heasley, John Solarczyk and Eric Haugh.  

John Lavoie has over 50 years of experience in electrical engineering, project management, and consulting management for both large consulting firms and industry.He has designed power distribution, lighting, communication, security and fire protection systems for both newly constructed and renovated industrial, commercial, and institutional buildings.  He is equally familiar and experienced in primary power, distribution, variable speed drives systems, PLC, process control and instrumentation.  His consulting firm management experience will provide the firm with direction and guidance needed in development of a new firm.

John Solarczyk has over 14 years experience in mechanical engineering and project management.  His experience includes the design of chilled water, hot water steam and heat pump systems, performing energy efficient surveys, and utilizing measuring and testing equipment.  He is also very familiar with the latest building control systems, in particular, direct digital control systems. John will be in charge of all HVAC and mechanical design.

Eric Haugh has over 11 years experience in mechanical engineering.  His experience includes the design of sanitary, storm, domestic water, gas and medical gas systems.  He is also NICET certified in sprinkler system layout, which includes the design of wet, dry, FM200 and standpipe fire protection systems.  Eric will be in charge of all plumbing and fire protection designs.

All four principals have professional engineering licenses in multiple states.

7.1 Personnel Plan

The Personnel table summarizes payroll for the next three years. John Lavoie will work on a part-time basis, while the other three partners will work full-time. We have no plans to hire any other employees at this time.

Our labor costs represent the direct cost of sales, but payments are made monthly, regardless of hours billed to clients.

Financial Plan investor-ready personnel plan .">

We want to finance growth mainly through cash flow and equity, but will need a second short-term loan, in the amount of $26,391, in the next year to cover our cash flow.

The most important factor in our case is collection days. We can’t push our clients hard on collection days, because they are larger companies and will normally have marketing authority, not financial authority. Therefore we need to develop a permanent systems of receivables financing, using one of the established accounting systems. In turn, we must intend to ensure that our investment is compatible with our growth plan, management style, and vision.

Compatibility in this regard means:

• A fundamental respect for giving our customers value, and for maintaining a healthy and congenial workplace.
• Respect for realistic forecasts, conservative cash flow, and financial management.
• Cash flow as first priority, growth second, profits third.
• Willingness to follow the plans objectives and contribute valuable input to strategy and implementation decisions.

The financial plan which follows summarizes information regarding the following items:

• Important Assumptions
• Key Financial Indicators
• Break-Even Analysis
• Projected Profit and Loss
• Projected Cash flow
• Projected Balance Sheet
• Business Ratios

8.1 Important Assumptions

The financial plan depends on important assumptions. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Some of the more important underlying assumptions are:

• We assume strong economy, without major recession.
• We assume that there are no unforeseen changes in economic policy to make our services immediately obsolete.

Others include 60-day average collection days, sales entirely on invoice basis, including a favorable deposit policy, expenses on a net 39-day basis, 30 days on the average for payment of invoices, and present-day interest rates.

8.2 Projected Profit and Loss

The gross margin for a service-based business is a reflection of the efficiency at which those services are offered.  labor is our primary expense, and the only cost directly associated with sales. Given our sales rate over the last 6  months, we expect both to remain fairly constant. Gross margin, because we use no inventory, looks to be 100% for all year. After taking labor into account, a more realistic gross margin for Year 1 is 26%. We expect that our increased efficiency in Years 2 and 3 will produce a higher annual gross margin of 34% and 38%, respectively.

Net Profit /Sales will increase steadily through 2005.

8.3 Break-even Analysis

The following chart and table summarize our break-even analysis. We are currently averaging sales above our break-even point. Any decrease in sales lasting longer than 3 months will generate decreases in payroll across the board to maintain net profits and capital.

8.4 Projected Cash Flow

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one  bar representing the cash flow per month, and the other the monthly balance. The first few months are critical. It may be necessary to inject additional capital in this time frame if the need arises. The annual cash flow figures are included here and more important detailed monthly numbers are included in the appendices.

8.5 Projected Balance Sheet

With the payment of our liabilities, relatively low payroll and operating expenses, and a conservative sales forecast, our Balance Sheet shows an increasing net worth in every month and year of our plan. As a consulting and design business, the majority of our “capital” is intangible – the skills, experience, and reputation of our team. However, the nature of our work also keeps our costs low, so careful debt management and billing will soon produce a good profit, and a valuable company.

8.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8712.01, Architectural Engineering, are shown for comparison.

Our business ratios look different from the industry standards in part because we are counting our only direct cost of sales, our engineering labor, as an operating expense. The company is structured so that employees receive a monthly salary regardless of hours billed, so our expenses are all, essentially, operating expenses.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software