ARCH 523 Midterm and Final Module
ARCH 523 Midterm and Final Module
Week 2 : Introduction
PART 1- CAREER OPPORTUNITIES FOR YOUNG ARCHITECTS
Objectives :
Introduction
The term “business management” and “marketing” has gained a large amount of traction over the decade. These
days, every product or service to be delivered relies on “business planning and marketing strategies” for their
success. Architecture and its related fields too have been affected by the rise in prominence of business and
marketing platforms. The field of architecture has covertly explored the principle of business planning and
marketing by various means. The very sole idea of creating a design for the world to see and experience is one of
the best ways in which an architect tries to propel his vision and name forward. Moving along that line of thought,
architecture has always exhibited ‘self-marketing’ subtly and artistically. So, combining architecture and marketing
the business as a career option can be seen as a promising career.
Over the last decade, the popularity of architecture as a profession has increased manifold. There are a large
number of architecture colleges springing up all over the world by the minute. This growing number of colleges and
the number of architects who graduate from colleges are often not in proportion to the opportunities available in the
market. This has paved for the neck-to-neck business competition between architecture firms.
One of the struggles of being an architect is the lack of steady paychecks. Fluctuations in the economy, the
ever-increasing number of architecture firms, project delays caused by various internal and external factors are some
of the many problems that architects endure. Owing to all of these problems and many more, making sure to snatch
every bite of the cake has become ever so necessary. Hence many architects and architecture firms have steadily
been working towards penning their strategies for the successful run of their respective offices and careers. Hence,
the need of marketing the brand and one’s name has become an essential part of the sustenance of every architect
and architecture firm of today
Owing to all these challenges, a young architect though must not be disappointed and demoralized as there
are a lot of options while waiting for the right time to strike the iron.
This guy. An architecture blogger and content creator who is now gathering prominent clients – celebrities
and wealthy business people.
Assessment:
Activity 1: Self Reflection
1. Task: Answer the two questions below in an essay format
a. When you dreamt of becoming an architect, what would your job/work be like?
What is the nature of work you are doing?
Where do you work?
What kind of clients do you have?
How much are you earning
b. Should your dream is difficult for you to realize, what are your other work options? Please identify
three options you want to venture into as an alternate to your dream job
Grading Criteria
Content and Substance (60%)
Presentation (40%)
Objectives :
Not all young architects fit to be a marketable blogger, youtuber, content creator, or the like. Who knows?
You might find your own better career path? Below mentioned are some of the job roles that architects with a flair
for marketing can pursue.
Communications Specialists are sometimes called Public Relations Specialists. Their general
responsibility is to handle public relations, information output, press releases and media requests, social media
and/or advertising efforts – in this case the Architecture industry.
A Communications Specialist of an architectural firm job description should contain the following duties
and responsibilities:
a. Marketing strategists are responsible for researching, developing, and communicating strategic
marketing plans to meet the company's goals. They lead and optimize marketing efforts for company
and client campaigns, and collaborate with multifunctional teams to execute them. A young architect
b. Business Developers implement and coordinate the company's business plan. Their main role is to
deploy new growth levers for the company. Business Developers have a real strategic role, developing
a long-term vision for the company while at the same time rolling out tactics to rapidly conquer new
markets.
Example:
Architects Seth Grizzle and Jonathan Junker founded Graypants as a company dedicated to
making pendant lights made entirely of repurposed corrugated cardboard. Their flagship line
Scraplights embodies the team’s interest in repurposing and environmentally responsible
design. In 2012, they set up their European office in Amsterdam, from where they started
distribution to over forty countries, while the Seattle studio still provides local production for
North America and functions as a prototyping shop.
Architect Edwin Heathcote set up Izé in 2001 as a manufacturer of a wide range door handles
and fittings in collaboration with different designers and architecture firms. Heathcote has
been the architecture and design critic of The Financial Times and author of several books on
architecture and design.
If you have what it takes to be a marketing specialist or a business developer, why not combine
your knowledge in architecture and design with this line of career? There have been many who succeeded
in this line of business and there have been more experiencing hardships trying to stick with their dreams
of being the principal designer.
Realtors
One puts a focus on sales and the other on design, yet the worlds of real estate and architecture are not so
far removed. For architects in search of new career opportunities, the fast-paced real estate business can be a natural
and lucrative move. Though the arena is fairly new for architects to venture into, many architects turned realtors
have found great success as a full-time and part-time career option. With the knowledge of architecture, the ability
to make networks, and the right attitude, architects can certainly venture into real estate to increase their career and
economic prospects.
Real estate agents and brokers are both specialists’ adept at helping their clients navigate the tricky process
of selling, buying or renting homes. But brokers typically have more in-depth training than real estate agents, and
they often operate in supervisory roles, overseeing agents who work for them.
To practice real estate however, an architect must be a licensed Real Estate Broker or a real Estate
Appraiser. But an architect can be an agent under a licensed realtor even without the mentioned license. The income
in this career is also lucrative depending on the volume of property conveyed and the value of these properties.
As well as appealing to these niche markets, trained architects are well versed in building techniques, which
makes them able to manage the paperwork that is part of any transaction. A real estate expert without this
background usually needs to call in an outside professional for this knowledge, slowing down the transaction. In a
hot market where time is of the essence, this edge provided by a trained architect can make a world of difference to
keen clients.
Assessment
Activity 2: Graded Quiz
1. The instructor is tasked to craft a quiz based on the previously discussed lessons.
2. The quiz should be issued through Canvas or Face-to-face.
3. The quiz should be from 20 to 40 points.
4. Observe the protocol and policies in issuing a quiz.
Grading Criteria
Content and Substance (60%)
Presentation (40%)
Objectives :
“Architects don’t advertise, they get published” – this slogan really resonates. But in the generation of
social media, it is really important that you get to advertise first before somebody else would talk about you.
Based on analytics from client campaigns, it is evident architects engage on social media channels both for
business and for personal use. An architect has many use cases for social media that are only going to grow. Social
media promotes dialogue among peers, something architects value, as well as providing a platform for showcasing
images and visual inspiration, which architects also prioritize.
An architect has the ability to discuss and share thoughts on the built environment and will self-promote
on a global scale through social media. All of the popular social platforms have an architect presence including
Twitter, Facebook, LinkedIn, YouTube, Pinterest and Instagram. These platforms are all well suited for visual,
technical and intellectual sharing, something architects intrinsically value.
Social media can also be used to research and have conversations about the kinds of things that architects
find important to know about building materials like performance, reliability, manufacturing processes, support and
who else is using it and how.
According to Architizer, “If you want to find good architecture on Instagram, you can’t go to the big names.
Indeed, the best Instagramming architects aren’t the Bjarkes of the world, but rather the young, anonymous
designers, programmers, and builders working at firms that aren’t their own, who labor for hours over the placement
of a screw in a plan on BIM, who spend their days researching building materials.” These are the young, Millennial
architects who in many cases make decisions on specifying products.
General contractor The Raymond Group’s LinkedIn page is full of examples of sharing building materials
manufacturer content. Examples include highlighting the installation of AmeriPOD, modular bathroom units and a
video from a DeWalt sponsored series that featured one of their carpenters.
How are building material brands using social to reach architects
Armstrong Commercial Ceilings provides an example of a manufacturer leveraging social media for
multiple use cases. The website is designed with engagement in mind, and they have a clear conversational tone
and content concepts that connect with their audience targets.
Here are three great examples of how this company is using social updates to have a conversation with
their followers. Promoting their Solutions Center for product selection, 10 tricks for using Revit and promoting
their entry for an Architizer award.
Ever-evolving architecture
A field as dynamic as architecture is sure to find meaning in unconventional paths. The ability of an
architect to evolve and adapt to surroundings will always lead to new pathways being created. Hence, the converging
of architecture and marketing in the aspects of a viable career option is a very relevant question to ponder over and
will surely be answered in considerable ways in the coming years.
If you are getting the right audience engaged with relevant content and more importantly into your nurturing
funnel, social media does the heavy lifting of real time conversations between brand and customer on a global scale.
It establishes the foundation of being able to harvest leads in all phases of the funnel, gives followers a reason to
engage with your brand and provides a platform for customer care.
Not having a seat at the table in this era of real-time engagement and user generated content (UGC) is a
missed opportunity. But having a social media presence that meets your business needs is also part of the equation
for success. Understand that digital marketing and social media are powerful tools that serve brands best when they
are designed to move the target audience from follow to funnel.
It is important to recognize that relevant and engaging content feeds the channels, so with proper planning
and infrastructure the social garden can grow and be leveraged to meet your expectations and business goals. Your
target audience does not view social and digital tactics as separate aspects of your brand. To them it is your brand.
Architecture Advertising
Architecture advertising has become extremely important in today’s world. Many architecture firms seek
ways to market their services to their customers or clients. When architecture firms market their services to
the target market, it helps them procure new company opportunities easily and effectively.
Due to time constraints and ease, many architecture firms utilize the word-of-mouth style and websites
paired with several originally published projects within their portfolio to market their services. This technique is
also ideal for all small architecture firms to grab the attention of all prospective clients. To some extent, these means
can be pretty useful for architects but are insufficient for successful architecture marketing. To expand the clientele
base, architects will require a well-thought-out technique. Without that, even a talented architect will lose customers
to its less-skilled competitors and might also lose a future client even when they properly utilize all
the marketing practices.
Outbound Marketing
Outbound marketing is one of the best and most effective ways to publicize your architecture firm. Under
these marketing practices, you will come across the following:
Inbound Marketing
Inbound marketing is a business methodology that attracts customers by creating valuable content and
experiences tailored to them. While outbound marketing interrupts your audience with content they do not always
want, inbound marketing forms connections they are looking for and solves problems they already have. Inbound
marketing is one of the leading marketing strategies of all time. It is mainly because it is built to delight, engage and
attract interested prospects and consumers with meaningful and unique content. These contents can offer sought-
after connections and solutions to them.
For example, a skillfully crafted blog post about a blogger’s favorite product will speak to this potential
customer in a way a banner ad cannot.
Many traditional marketing techniques are said to bombard all consumers and potential clients with details
that are not helpful or are not relevant. But inbound marketing is not like that. It invites engagement by strategically
placing messaging at the correct place and time. This helps in driving leads and website traffic for an architecture
firm. This results in all the visitors feeling in control of all the parts of the experience.
Ways for an architecture firm to advertise itself
An effective way an architect can easily market their projects or service to their clients or consumers is by
proving themselves as specialists within a particular niche. This can be designing projects that focus on luxurious
homes, budget houses, commercial buildings, etc. But there are other ways architects can easily advertise their
business.
Social media marketing can also help architects in various other ways, which are:
Lessens the marketing spending for the architects and increases the qualified leads
Drives in trust, humanization, and trust with the right content
Improves and supports the SEO performance
Free or earned media is exposure generated through unpaid and unsolicited sources. Each can effectively
increase label awareness, conversions, and web traffic.
Many say that earned media is extremely powerful because it does not just help with branding but also
reinforces your firm’s credibility. Non-marketing and social proof buzz is highly valued by all prospects when they
assess a company. When you have an unpaid and solid online presence, it can easily tip a buying decision in your
favor. PR or public relations is said to work similarly, but it is more subtle. Audiences and communication get
orchestrated through various media outlets, such as:
Social platforms
Radio
Television
Print
These media outlets can nurture and build business relationships with consumers, increase your business’s
image and credibility, and share a message you want to present.
Public relations is also instrumental in providing promotion and protection to your business’s reputation
through multichannel distribution and online. PR plays a vital role in a company’s brand reputation online. Besides
that, both PR and earned media is an effective strategy because:
2. Content Marketing
Content marketing can easily build trust with your organization by offering highly relevant and in-depth
content on your blog and website. This includes videos, articles, e-books, blogging, and webinars.
Successful content marketing builds trust in your brand by providing in-depth and highly relevant content
on your website and blog. It can include blogging, articles, e-books, videos, and webinars. This method can help
raise authority and cognition, improve search rankings, and significantly communicate your value. Besides that,
numerous architecture firms concentrate on marketing efforts during the final stage of the buyer journey. Here, it is
assumed that your site visitor is an educated purchaser, and it is not always the case for most individuals who are
new to employing an architect.
This can sometimes lead to frustration on both sides when the content does not provide clear information
on what an architect does. Unless the prospects have already worked with the architects in the past, they will have
ideas about your company’s services which doesn’t match reality. But this type of problem can be easily resolved
Utilizing this particular method can be highly effective for you. It can lead to an increase in clients and
receive much better projects. When the correct procedure is in place, you can easily make contents that are pretty
engaging and will convert all your audience. Remember, successful content creation does not need several hours of
your time.
To successfully use this particular to advertise your enterprise, here are some steps you should follow:
List down all the crucial aspects of the topic on which you wish to write about
Take a look at videos, blogs, or articles similar to your topic
Properly create an article and then check it to fix all the errors or mistakes
To make the content a lot richer, you use relevant keywords
Also, with the content, use interesting quotes from audio tracks or transcripts and then utilize them in the
form of social updates
In this matter, you can easily obtain considerable parts of content through one single topic and then
minimize the moment it takes to repurpose it for diverse mediums. (Source:
https://www.sortlist.com/blog/architecture-advertising/)
1. Powerful client relationships: For all designers and architects, marketing is not just about publicizing their
services. It is also about reaching out to all forthcoming and current clients. It is mainly because the internet
makes things much easier to interact with. It is also an excellent way to strengthen and maintain client
relationships, no matter what medium to reach and begin a discussion with them.
2. Excellent branding: The most crucial aspect of marketing is showing how your firm is unique from other
corporations. You also need to check your strengths, the core capabilities, and things your enterprise can
do but other establishments cannot. Through architectural marketing, the branding process will become
easier.
3. More site traffic: Experts have provided evidence that there are 1 billion websites available on the online
platform. They are competing to grab the attention of 3 billion internet users. Internet commerce is crucial
when you want all the users to search for all the architectural enterprises so they can get to your website.
4. Greater visibility: There are so many architectural corporations not just in the country you live in but also
across the globe, and you are going head-to-head with each of them. With the help of this advertisement
strategy, you can easily help your enterprise stand out from the rest of the companies and land all the
signature projects.
(Source: https://www.sortlist.com/blog/architecture-advertising/)
Architecture advertising is vital for all those architectural establishments planning to advertise their
solutions and products to their target consumers. Even though it is not easy to conduct this process independently,
you need reliable and trusted experts who will help you get the work done. They will help you by working with
your team to develop effective online campaigns. Even though there are numerous methods available through which
you can publicize your architectural establishments, you do not need to use all of them. Just go for the one that can
help with the branding and other things.
Assessment
Activity 3: Essay/ Internet Research (Social Media as part of the marketing Strategy of a Practicing Architect)
Task:
1. Write an essay discussing the part of social media in an architect’s advertising campaign.
2. Identify the importance of social media, and the advantages and disadvantages in the practice of
Grading Criteria
Content and Substance (60%)
Presentation (40%)
With today’s technologies and cutting-edge software, designers are experimenting with representations and
reformulating what we define as architecture. In gaming design, architecture is used to convey a certain mood or
setting. According to ArchDaily’s back-end developer and former video game designer, Benjamin Cordero, virtual
architecture comes from a mix between what is real, what could be real, and what is imaginary. There is a big
difference between physical and virtual presence, and the problem lies in how to use architecture as a design
experience that enhances this difference, and how to let it guide or inform the user without interrupting the
experience itself. The aim is to immerse the player as much as possible by stimulating as many senses as possible
and by doing so, reducing the gap between what someone may feel in real life, and how it feels in the virtual space.
Architects and designers offer their expertise in video games such as Assassins Creed II or LA Noire which
use their knowledge to implement obsessive architectural detailing. LA Noire is an authentic depiction of Los
Angeles in the year 1947. The team at Rockstar Games used over 180,000 reference images, 1,000 newspapers, and
110,000 aerial photographs, along with historical publications such as Architectural Digest and Home and Garden
to create the most accurate depiction of mid-century Los Angeles that they could. But even so, some imagination
was required – that is the inception point where the rich imagination of architects are needed.
La Noire
“Some [spaces] were designed from the ground up as we could not find what truly matched the needs of
the gameplay or the original script by Brendan (McNamara, Team Bondi Studio Head). But other locations are
Training and working as a designer impart a unique set of skills in relation to spatial awareness, color and
interior organization as well as architectural understanding and the importance of the creative process. Designing
space with the purpose of habitability in a virtual world allows for a lot of creative headroom. The designs do not
necessarily need to be constructible but should still hold true to the most important part of any video game:
Gameplay.
A beautifully designed game with minimal thought to the gameplay will not succeed as the developer will
not be able to hold the player’s interest. This is true for built environments as well as virtual environments. The
creative processes which end up defining successful spaces include understanding how people move through, use
and interact with them. Extensive diagramming, story boarding and gathering of inspiration images helps to kick-
start this process. Significant time is spent understanding the client or player needs which then translates through to
the design.
However, it’s important to understand the differences between the creation of virtual versus built
environments lies with the tools used for the final product and not with the process. Many architectural designers
use Revit as the digital tool to create construction documents. Revit is a successful tool for that job - it can
incorporate the level of detail necessary to instruct on-site workers on the desired aesthetic with required detailing.
Virtual model creation for video games and other virtual reality spaces do not require that level of detail and thus
use a different set of tools that focus on lighter models, texturing, and efficient rendering.
The most common tools for 3D modeling in the gaming industry are extrusion modelers such as Maya,
3DS Max, and Blender. These programs focus more on the creation of form and mass and less on object dimensions.
This allows for the design of virtual elements which are based in reality yet have a large tolerance for creative
expanse.
Designers have a unique way of thinking about space. They can conceptualize, plan, and execute designs
in the real world, skills that are transferable to both video games as well as VR and AR environments.
Since games like Mario Kart, Road Rash, and Pokemon Red and Blue, video games have been taken to the
next level by several designers or ‘architects’ who have designed these arenas. Origins of games like Pong and
Asteroids, have led us to the realm where the architecture of the game could change itself or the player could build
the world. The advancements of these games make us dream of achieving them in actual reality but also give us an
escape from the strictness and hierarchy that is oppressed over us in the real world.
The connection between architecture and realm designing in the gaming industry.
From the very beginning, architecture has always been about creating spaces that can be used in any manner
by us. Several tangible and intangible factors are considered while making these spaces to serve humanity. But how
does one compose their ideas to a medium where people would be able to enter physically? These questions arise
while designing a realm or a base for any video game. As forms interact in such virtual spaces, it does not take much
time when architects are inducted into the creative process of designing the game. The key to it was by making the
objectives and tasks within the story fun and interactive while also being visually powerful.
Environment designers (or environment artists) are world builders working from a design brief or script
to bring an imaginary or realistic universe to life. They create a mood, express style, and provide context. Their
work is often used as a base for building practical and 3D virtual sets.
To fulfill these factors, one has to understand that architecture in video games cannot just serve as a
backdrop for the whole storyboard. It needs to drive the gamer within the maze and allow the adrenaline to charge
of the person to let them explore the virtual world. It merely teleports the viewer/gamer to another world. The point
where the architect or the environment designer comes into play is when there is a need to add reality into the
virtuality. Grand Theft Auto provided those subtle touches and allowed the viewers/gamers to completely immerse
themselves in a singular city.
Assessment
Activity 4: Internet Research (Video Game Architecture)
Task:
1. Research on at least 10 famous video games and check their virtual environment.
2. Screenshot some of their environments and identify the Architectural style, setting, geography, or period
Grading Criteria
Content and Substance (60%)
Presentation (40%)
1. To learn the importance of having a business plan before starting an architectural firm;
2. To identify the typical elements and parts of a business plan for architectural firms.
Businesses continue to thrive when clients and customers keeps coming. The keeping of continues cycle of
customers is a tedious task, the same with the mission to find the first client that will give the business owner a
break. Numerous frustrations will be encountered that is for a fact. Therefore, the architect -business owner must
be always prepared for what he has to face while trying to make a mark in his chosen endeavor.
As architects prepares designs and plans of buildings, he must also be able to craft his own business and
marketing plans. A building without a blueprint to follow is the same as a business without a business plan. You
progress by muddling through the unknown which is a risky move as finances are involved and all investment may
dissolve in an instant.
However, successful entrepreneurs are increasingly encouraging new generations to start a business as soon
as possible. All experienced entrepreneurs had to start from somewhere. One place where to start from is the
beginning: the business plan.
A business plan is an important document aimed at a company's external and internal audiences. For
instance, a business plan is used to attract investment before a company has established a proven track record. It can
also help to secure lending from financial institutions. Furthermore, a business plan can serve to keep a company's
executive team on the same page about strategic action items and on target for meeting established goals.
Although they're especially useful for new businesses, every company should have a business plan. Ideally,
the plan is reviewed and updated periodically to reflect goals that have been met or have changed. Sometimes, a
new business plan is created for an established business that has decided to move in a new direction.
How to Write a Business Plan
A well-considered and well-written business plan can be of enormous value to a company. While there are
templates that you can use to write a business plan, try to avoid producing a generic result. The plan should include
an overview and, if possible, details of the industry of which the business will be a part. It should explain how the
business will distinguish itself from its competitors.
As mentioned above, no two business plans are the same. Nonetheless, they tend to have the same elements.
Below are some of the common and key parts of a business plan.
Executive summary
Products and Services
Competitive Analysis
Market Analysis
Market Strategy
Financial Plan
Budget
1. Executive summary: This section outlines the company and includes the mission statement along with any
information about the company's leadership, employees, operations, and location.
The target client is segmented into four categories; home owners, developers, government, and contractors.
NW Architecture’s competitive edge will be the knowledge of digital-based design resources. Superior
customer service will also be a point of firm differentiation.
First year sales are expected to reach $102,000 and increase to $500,000 by the third year of operation.
We will be profitable within three years of starting.
The most significant challenges ahead include securing a suitable location, establishing the initial client
base, and ultimately positioning the firm to be able to have a presence in a larger, global market.
This business plan outlines the objective, focus, and implementation of this start-up firm.
1. Mission
NW Architecture offers a new type of digital interactive media for both the client and the builder. This
media will clearly show the client and the builder exactly what the design will look like and the method of
construction.
With this new form of media the client doesn’t have to know anything about architectural graphics or
terminology (floor plans, sections, elevations & construction documents) to have a clear understanding of
This media will be taken one step further by using it in the construction documents as well. The builder will
be provided with an interactive video rendering of the entire building containing both visual photographic
quality images and construction specs. Every last detail will be worked out in three dimensions in such a
way that anyone who knows how to use a computer will be able to access and understand this new means
of architectural presentation.
2. Keys to Success
Provide a service that is technologically superior to the competition’s.
Utilizing a diverse staff of architects to provide a wide variety of product styles.
A large array of global connections.
3. Objectives
Sales of $500,000 in Year 3 and $700,000 by Year 4.
Market expansion of 20% per year via the Internet.
Creating new niche in market by Year 4 of three dimensional construction documents and interactive digital
presentation to clients.
2. Products and services: Here, the company can outline the products and services it will offer, and may also
include pricing, product lifespan, and benefits to the consumer. Other factors that may go into this section
include production and manufacturing processes, any patents the company may have, as well as proprietary
technology. Information about research and development (R&D) can also be included here.
Common products/Services
Residential Design
Retail and Commercial Design
Community Architecture
Interior Architecture
Specialized Architectural Services
Example:
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.
3. 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.
With regards to direct competition, you want to describe the other architectural firms with which you
compete. Most likely, your direct competitors will be architects located very close to your location.
Architecture competitors - For each such competitor, provide an overview of their businesses and document their
strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know
everything about them. But you should be able to find out key things about them such as:
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.
4. Market analysis: A firm needs a good handle on its industry as well as its target market. This section of
the plan will detail a company's competition and how the company fits in the industry, along with its relative
strengths and weaknesses. It will also describe the expected consumer demand for a company's products or
services and how easy or difficult it may be to grab market share from incumbents. After performing an
analysis, then a marketing plan may be crafted, for example:
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.
5. Marketing strategy: This section describes how the company will attract and keep its customer base and
how it intends to reach the consumer. A clear distribution channel must be outlined. The section also spells
out advertising and marketing campaign plans and the types of media those campaigns will use.
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:
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 100th 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.
6. Financial planning: This section should include a company's financial planning and projections. Financial
statements, balance sheets, and other financial information may be included for established businesses.
New businesses will include targets and estimates for the first few years plus a description of potential
investors.
Financial Plan
Income Statement: an income statement is more commonly called a Profit and Loss statement or
P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you work
on 1 project at a time or will you oversee multiple projects at any given time? And will sales grow by 2%
or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial
forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
7. Budget: Every company needs to have a budget in place. This section should include costs related to
staffing, development, manufacturing, marketing, and any other expenses related to the business.
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:
2. Table of Contents - It should allow readers to quickly skim or flip through to get to the included topic they are
most interested in.
3. Executive Summary - Brief and formal explanation of what your company is, how far is going to reach, and
why it is going to be successful. In no more than one page, it should include the mission statement, the description
of the industry and the market environment, an explanation of its uniqueness as well as competitive advantages. The
financial potential and anticipation of risks, the core team and the stage of the business, especially for those ones
that are not starting from scratch, are also vital. Finally, the capital that is requested should be concise and clear.
4. Business Description - An in-deep overview of the proposed venture. The final aim is to make potential investors
quickly grasp the concept of the business and its value proposition.
6. Competitive Analysis - Look at current and prospective rivals and competitors. Who are your competitors?
Which are your competitors' strengths and weaknesses? What distinguishes your business from theirs? What is the
competitive outlook for the industry?
7. Market Analysis - Focus on your customers, their likes, needs, and demographics. The aim is to demonstrate
that there is really an opportunity for your venture in the market.
8. Management Summary - Introduce your team and the description of how are they going to rock it together.
Every business is a risk, especially when there are no precedents to evaluate. This is why the knowledge, skills, and
ability of the team to work together as a capable unit, is one of the first elements that would be evaluated by possible
investors. Friends and family, despite their love and trust in us, are not always the wisest choice.
9. Operations Plan - Focus on the daily business activities and the strategies that will support them. With the use
of charts, graphs, or tables, you can show complex information such us your breakeven point, your sources of
supplies or your manufacturing and distribution process.
10. Marketing plan - Or the detailed strategy of how are you going to sell your product or service. Focus on the
opportunity that your business is bringing, and the costumer's buying behavior are primary considerations of a
successful marketing strategy. Closely followed by spotting the value that each customer is bringing to your
business.
11. Financial Plan - The current and future projections of your business financial performance. In short, every
financial plan should focus on the following key components. The capital requirements should reflect on how much
money you need to raise, how are you going to use the money or how much you need from investors. Assumptions
in terms of growth or internal components of your business should always be backed with strong evidence and
experts’ opinions. The income statement as the forecast of your business for the coming three to five years and the
balance sheet generally prepared by your accountant. And finally, the cash flow statement showing weather your
company is successfully turning its profits into cash.
12. Attachments and milestones - And all those additional documents that can provide valuable, additional
information to the business plan.
Assessment
Activity 5: Graded Quiz
Task:
1. The instructor is tasked to craft a quiz based on the previously discussed lessons.
2. The quiz should be issued through Canvas or Face-to-face.
3. The quiz should be from 20 to 40 points.
4. Observe the protocol and policies in issuing a quiz.
Grading Criteria
Content and Substance (60%)
Presentation (40%)
1. To learn the importance of having a business plan before starting an architectural firm;
2. To identify the typical elements and parts of a business plan for architectural firms.
A plan intended strictly for internal use may also omit some elements that you need not explain to yourself.
Likewise, you probably do not need to include an appendix with resumes of key executives. Nor would a working
plan especially benefit from product photos.
Internal policy considerations may guide the decision about whether to include or exclude certain
information in a working plan. Many entrepreneurs are sensitive about employees knowing the precise salary the
owner takes home from the business. To the extent such information can be left out of a working plan without
compromising its utility, you can feel free to protect your privacy.
A working plan is there to be used, not admired.
4. The What-If Plan
When you face unusual circumstances, you need a variant on the working plan. For example, you might
want to prepare a contingency plan when you are seeking bank financing. A contingency plan is a plan based on the
worst-case scenario that you can imagine your business surviving—loss of market share, heavy price competition,
defection of a key member of your management team. A contingency plan can soothe the fears of a banker or
investor by demonstrating that you have indeed considered more than a rosy scenario.
The Business Model
The term Business Model refers to a company's plan for making a profit. It identifies the products or
services the business plans to sell, its identified target market, and any anticipated expenses. Business models are
important for both new and established businesses.
Even if the business is already established or even if it is a new business, plan needs to be made. Businesses
need to regularly update their plans and strategy as they need to take into accounts the challenges and trends for the
future models.
button in seconds.
It is very much convenient and easy for customers as even before customers have visited the particular
city, they get their hotels or places booked.
Marketing Model
Marketing is the practice of attracting prospective consumers or customers to your products and services.
"Process" is the important word in this definition. Marketing includes doing research, advertising, selling, and
distributing your goods or services. Let us further understand by models of marketing. A marketing model is a tool
that advertisers and businesses use to understand the strength and earning potential of their business. Marketing
models review the overall strategies and parameters involved with advertising a company and its products.
Many businesses, without even realizing it, employ marketing tactics to achieve their objectives as they try
to advertise themselves and grow sales of their product or service. Marketing is becoming one of the most important
components of a company.
People frequently do not understand what marketing is and, when questioned, characterize it as selling or
promoting. While these responses are not incorrect, they are merely one aspect of marketing.
Marketing also includes many other areas such as product distribution, advertising, designing and
generating materials such as landing sites and social media content, enhancing customer experience, doing market
research, defining market segmentation, and much more.
The 4 Ps of marketing
The 4 Ps of marketing are a simple formula for identifying and dealing with the main parts of your
marketing plan, according to E. J. McCarthy.
Product
A product might be anything that a firm provides to its customers in order to meet a
demand. It can be a product or service based on the wants and motivations of customers and how
the product would benefit the user, rather than the physical traits or properties of the object.
Place
Strategic merchandising sites can range from an internet store to a network of physical
outlets spread over several cities or nations.
Price
The pricing of your products and services is a critical component of any marketing
strategy. This factor has an impact on other factors such as - The margin you wish to achieve, the
company’s financial vlogs, Trends and fads and Quality perception.
Promotion
This refers to all of the marketing and communication done to highlight the benefits of
your product or service in the market. This is how you boost sales.
Importance of Marketing
The importance of marketing can be further explained in 5 points: -
1. Marketing Informs
In order to attract customers in a congested marketplace, your target audience must
understand why they should select your company over someone else's. This is where marketing
comes in to educate existing and future consumers about your company and how it meets a need.
2. Marketing engages
You must form and build relationships with people who have interacted with your
business in order to convert first-time clients into lifelong fans who will support your brand. Social
media is an excellent place to begin.
Sending post-purchase follow-up emails and mailing postcards with special offers or
information on new services are just a few more methods marketing may assist you in staying in
touch with your target audience.
Assessment
Activity 6: Business Plan
Task:
1. Compose your own business plan – Executive Summary as if you are to start an architecture firm
2. The type of business plan should be “The Mini Plan”
Grading Criteria
Content and Substance (60%)
Presentation (40%)
Although marketing may not close deals directly, when done right, it is the most powerful tool a brand can
use to present its image and engage with consumers. This leads to supporting the sales team by bringing in qualified
leads and helping close deals.
A Marketing Model is a tool that advertisers and businesses use to analyze their company's strength and
earning potential. Marketing models examine the entire tactics and aspects of advertising a firm and its products.
Marketing models assist marketers establish their marketing strategy, identify which segment of the market
to target, anticipate the impact of particular activities on customers, and provide revenue predictions.
Word-of-mouth is an effective form of marketing because it spreads quickly and easily, it is free,
and it is backed by trust. Ninety percent of people, even strangers, are more likely to trust a brand
recommended by someone else. In comparison, over 26 percent of people will ultimately avoid a brand
if they hear a negative story. In today's digitized world, word-of-mouth can translate into earned media.
Earned media is when another person, company, establishment, social presence, etc., promotes a brand.
5. Sales Support
Customers keep your business running and growing, which is why your sales team is critical to
your business's success. Your sales staff will bring in new customers, but it can be draining to carry
the burden of prospecting potential buyers and converting them.
Marketing can support and empower your sales staff by attracting qualified leads. Strategies that
speak to a customer's pain points will help engage consumers, relay the brand message and build trust,
taking leads down the sales funnel.
Using the 7Ps breakdown, you may examine each part of your business to uncover methods to
improve your strategy and achieve your objectives.
Top-down marketing approaches, such as the STP marketing strategy, have grown in popularity
as businesses shift to delivering tailored content to their target consumers via social media.
4. AIDA
The AIDA marketing model is nearly exclusively focused on the client. Awareness, interest,
desire, and action are all represented by the acronym.
These are the four steps that a customer goes through while acquiring a service or product. Some
models contain a retention stage, which addresses a buyer's decision to make repeat purchases and establish
brand loyalty.
These models assist you in visualizing strategic alternatives as well as pivoting your strengths and
minimizing your weaknesses in order to avoid dangers and maximize opportunities.
The axis's lower end symbolizes new markets, while the upper end represents current markets.
The x-axis represents products and services. On one side, existing items and services are depicted, while
on the other, new products and services are depicted.
7. SOSTAC
The SOSTAC model is a flexible planning methodology that is used to develop marketing
strategy. SOSTAC is an acronym that stands for situation, goals, strategy, tactics, action, and control. It
may be an appropriate tool for reviewing your process and identifying areas of weakness.
Introduction:- After research and development, a product enters the introduction stage, where it
is initially introduced to customers. Typically, this entails intensive marketing and promotional activities
to raise public knowledge of the new release.
Growth:- As the product gains popularity and the company expands to support distribution, it
enters the growth phase. This is when the product gains popularity, develops a dedicated customer base and
increases market share among competitors.
Maturity:- In a crowded market, mature products sometimes face a slew of competitors. Growth
slows during maturity, and you may need to revise your marketing plan to reach new customers or find new
applications for your products.
Decline:- Sales fall during a recession, and marketing activities have less of an impact. When a
product is in decline, you may want to focus your efforts on new product development rather than selling
old ones.
Grading Criteria
Content and Substance (60%)
Presentation (40%)
Objectives :
1. To identify the different types of marketing models applicable to architectural firms;
2. To learn each types applicability in setting up an architecture business.
Understanding your options and potential challenges when first forming your firm is important so you can
be intentional about how you set up your design process and how you market your company.
For architecture firms there are three common business models that differentiate firms and how they are
run: Efficiency based, Experience based, and Expertise based offices.
Depending on which you target for your company it will help you direct how you should manage the
company for marketing, staffing, and ultimately profitability. It is also important to make hiring, management, and
staffing choices that support the mode of your architecture office.
Typically, this means that you have developed a design and production process that is efficient and
streamlined and are constantly looking for ways to improve upon it to make it more efficient. You have also selected
projects that are simple to execute and allow for repetitive processes.
To take advantage of your design process efficiencies, efficiency-based firms often do less- complex
projects, or take on similar projects to those they have already completed. Further, these firms tend to offer a limited
range of services, or standard scope of work, that is familiar and repeatable.
The advantage to limiting the type and complexity of the work you take on is that you can reuse details,
notes, and other documentation to keep the work hours to a minimum while still delivering quality documents. The
goal is to be efficient in every aspect of your practice.
For example, if you are working on multi-family housing projects you may reuse unit layouts, or
make all the bathrooms the exact same design, saving a tremendous amount of time and work. If you do
custom residential projects there may be wall assemblies and foundations types that you can reuse on all
of your projects, or standard window details that don’t need additional attention.
Find the places where you do not have to reinvent everything from scratch to keep your work hours to a
minimum. For this business model your ideal client is one that is looking for simple design solutions, may have a
Another approach for this business model is taking advantage of new technology or tools to improve upon
standard project delivery. There is potential to leverage new technology to give your firm an advantage over
established architecture companies. For instance, digital scanning, BIM, virtual reality renderings or AI may be
places to focus on that could make the design and documentation process faster and more efficient.
This dedication to technology might make convincing clients to go with a particular design faster. Practices
should constantly look for ways or new tools that can help reduce the time it takes to deliver work and thus increase
the profits for your firm.
Characteristics:
1. The goal is to stick to standards and deliver projects quickly and efficiently in a very predictable
process.
2. Due to the repeatable design process, the relatively simple project types, and/or the standardization of
your deliverables, this model lends itself to having a large production staff working under a smaller
group of experienced architects and partners.
3. This can include giving recent graduates or junior architects jobs to help with production, thus keeping
your labor costs down and providing them with much-needed work experience to help advance their
careers.
4. This approach also allows companies to consider remote working or even outsourcing some of the
production work to further save on costs and expand the number of projects you can take on.
5. This is not the model that most architects dream about when starting their firm. However, if you find
an inefficiency in the market, this business model could lead to tremendous profits.
This is also a business model that is easier for new firms to market for, as they may not have the portfolio
or reputation to go after complex projects, but can compete on price or market their experience with new technology
or a streamlined design-process - places that younger architects may be more adept than older practitioners.
2. Experience Based
This is probably the most common model that architects pursue when setting out to start their own firms.
Experience-based practices aim to provide design services to clients and solve unique and challenging problems.
By relying on their past experience and expertise, these firms can take on more complex project types and market
themselves as knowing what they are doing to address the needs of their clients. Some of these firms still focus
on particular markets.
For example, I worked at a firm that I would put in this category that specialized in higher
education projects, community centers, and performing arts centers. Within these project types they
would design custom solutions based on the specific needs of the client, responding to site context and
budget, and the technical requirements of the building’s program.
Characteristics:
1. They developed a strong reputation as being able to successfully deliver significant, complex, and
technically challenging projects.
2. At the same time, they utilized their reputation to expand into new markets and go after a variety of
projects beyond their core focus as the economy shifted.
Challenges:
The challenge lies in convincing clients that although the firm is new, the partners have a proven track
record, the design staff is capable, and the firm contains all of the design experience needed to solve complex
design challenges by managing the team needed to deliver significant projects on time and on budget. This can be
hard when first starting out, but after a few projects under your belt the firm could grow quickly.
When just starting out this often means the first couple of hires should be more experienced architects
that have worked on projects in your target markets.
This also means that as you grow you often need a larger proportion of project managers or project
architects that can bring this level of experience to your office.
These employees will of course cost more than less-experienced production staff so balancing the right mix
of experience and production is a challenge that must be overcome to maintain profitability.
There is also the obstacle to avoid having the partners or experienced staff getting too involved in the design
process and thus blowing through the fee too quickly, when junior staff could handle the work and gain valuable
experience. Thus, project management and staffing is vital for this business model to be successful and for the firm
to remain profitable.
3. Expertise Based
This business model is for the architects who have a great depth of knowledge about a specific project type
or topic, or for those who have demonstrated exceptional design abilities.
These firms are the “starchitects” who have built a reputation based on their award-winning design abilities
or consultant firms of specific technically challenging projects.
For instance, these could be firms that won the Pritzker Prize, or specialize in the design of acoustically
challenging performing arts buildings, or maybe the technically challenging research science laboratories, or even
code consultants. Another example would be firms that are developing and mastering new technology.
Frank Gehry’s office is an example of a firm that has done a combination of these - he is sought
after for his eye-catching design aesthetics and his firm has developed new software to allow his complex
curving forms to be designed and fabricated. He also takes on challenging cultural projects that necessitate
a certain level of expertise to execute. Other firms might publish research about a particular topic, or be a
consultant that knows the latest innovations in a particular building system or requirement. Either way,
these firms have some special knowledge or talent that makes them sought after and allows them to demand
higher fees for their work.
Characteristics:
1. The financial model with these offices is that by becoming an in-demand expert in your field you can
demand higher fees or hourly rates.
2. Although many starchitect offices grow into large companies with many employees, this business
model is also potentially lucrative for sole practitioners or small partnerships who offer a unique
skillset or base of knowledge.
3. In both of these cases, the staffing needs tend to be very top heavy, where the principal or partners
are in high-demand and thus need to work directly on the billable projects. There would be some
Often these firms will look to bring on administrative staff to support the principals earlier in the growth
of the firm than the other business models, although if you are keeping the firm small and acting as more of a
specialty consultant you may be able to avoid management overhead altogether. This could be an ideal option for
sole practitioners who have a valuable base of knowledge.
Rather than rely on personal relationships and traditional business development and marketing strategies,
these firms rely on their reputation and their innovations to drive new businesses. Design awards, publications,
research, and their portfolio is what sells their services and attracts new clients. This also requires continual
education to maintain your expertise and reputation in the field.
Assessment
Activity 8: Architectural Firm Business model
Task:
1. Draft a sample architecture firm business model.
2. Create the business model by answering the questions mentioned earlier in this topic.
3. Make your business model realistic and achievable.
Grading Criteria
Content and Substance (60%)
Presentation (40%)
What are the profitable endeavors under the Pre-Design Services Phase?
2. As Home Product Designer – furniture is only a single line of objects an architect can design. There are
other products the architect may venture designing such as lighting, and home furnishing. Below are
examples of products designed by architects.
Eva, Foster + Partners for Lumina
Conceived out of the design for a concept luminaire for an architectural project that never came to
be, Eva is a tabletop LED fixture that radiates an almost otherworldly glow.
3. As Wall Paper Designer and Installer – in the US, the actual labor costs of hanging wallpaper can
range from $1 to $7 per square foot or $3 to $9 per yard. It is approximately $25 to $80 per hour to have a
professional put up wallpaper. In addition, you can also be a part of the 6 luxury wall paper brand maker
in the world such as Atelier Meriguet-Carrere, Rubelli, De Gournay, Zuber & Cie, and Iksel Decorative
Arts. Locally, La Casa Deco is a supplier of various art surface materials.
knowledge of 3D lighting simulation, one can design decorative lighting fixtures which may be profitable.
Architects are sought to prepare Site Development Plans of projects requiring state-approval such as
cemeteries, terminals, housing, and utility development. One can help investors in seeking the approval of the city
or municipal council for a project development of public interests.
More than landscaping design, the architect can also be landscape element designers, specialty in
hydroponics and aquaponics, water feature specialists, outdoor lighting specialists and even ground decoration
consultants (like during Christmas and Fiestas).
2. Heritage Conservation Groups – joining heritage conservation groups may also be a way to expand
your network as an architect and at the same time enjoying your passion for heritage conservation.
a. ICOMOS - The International Council on Monuments and Sites, a non-governmental organization,
was founded in 1965 after the adoption of the Charter of Venice, in order to promote the doctrine
and the techniques of conservation.
b. heritAP – (Heritage Asia-Pacific) - A Network of Heritage Practitioners supported by WHITRAP
Shanghai
c. Heritage Conservation Society - HCS is the prime mover and advocate for the preservation of
Philippine built heritage, through advocacy and volunteerism, project implementation, education
and information, to contribute toward the establishment of a Society that preserves and values its
cultural heritage.
Izé has licensed Lina Bo Bardi’s famous horn-shaped door handle design from the Lina Bo Bardi Foundation and
received rights to produce them commercially 62 years after they were designed. “It turned out that the door
handle was, proportionate to its size, the most influential piece of the building that I could think of that I could
get into manufacture,” Heathcote has said.
Their Tessellated Floorscape is a prototypical mass-customized rug originally produced for Aronson’s Floor
Covering. It is based on a digital animation from which a different key-frame is extracted each time a new piece is
commissioned or sold. The material is cut in a way that maximizes the intricacy of the contoured shape of each tile,
while minimizing waste throughout the fabrication.
Protoplastic is made from biodegradable plastic and the acrylic formwork, while Ceramic Tesssseltile tiles are
manufactured through conventional methods of mass-production as a single tile shape that produces the greatest
degree of variation when multiplied across the larger field.
Once you are an accredited specialist in building environment certification, each project you will
evaluate will bring in serious cash. While being an assessor of any of the above organization, you can still do what
you want as an architect. This can be a lucrative sideline.
Financial Literacy
Understanding of finance and money management is a very important aspect of any profession. Ideally,
one should start learning about money and its equation right from school. After all, we learn so that we can earn.
We need to understand the worth of our self as professionals, our projects as products and price we pay to be in
business.
Knowing where your practice stands financially is fundamental to effective decision making. Often it is the
business leaders who will set the financial structures in place and champion them, but it’s up to everyone in the
business to understand what they are, why they are there, and the impact each person has on them. Accessing
accurate and timely information is not always easy. There is the income, expenses, profit margin, cash position,
project performance, etc. And once you have all this information, you then need to interpret and understand it.
An architect regularly absorbs a lot of information and these requires him to make decisions promptly.
These executive decisions can then be converted into activities to be completed by your team. As part of the team,
either as one of the leaders or as an employee, it’s important to understand everything you do has an impact on the
financial performance of the practice, and you need to remain cognizant of this. You can exercise care around these
areas, even if you are not directly responsible for them.
So, what are the fundamental financial structures, behaviors and understandings that need to be in place for
your practice to be successful?
Each business transaction will affect the profit and cash in different ways – and at different times. For
example, paying salaries and wages, paying tax, purchasing computers and equipment, waiting on debtors to make
Most of the time, the effect on the cash position can be delayed and occurs after the change in your profit
position. For example, say your fees for June were Php 500,000. By mid-July you are unlikely to have received any
of the Php 500,000 that’s reported in your profit and loss statement. On the flip side, those salaries and wages
incurred to produce the Php500,000 worth of fees – say that equates to Php250,000 including on-costs – would have
already been paid by now, and have reduced your bank account accordingly. Both are important to your business
and need to be reviewed every month (as a minimum).
As a benchmark, a practice should aim for one to three months’ worth of average monthly expenses. More than this
just means the business owes the owners money. Anything less than a month’s worth of expenses – unless there is
a bank overdraft facility – could mean that cash flow is distracting the practice leaders, creating unnecessary
concerns and pressure.
A balance sheet is simply a measure of ‘what the practice owns’ and ‘what the practice owes’ at a specific
moment in time. Both reports are necessary and should be reviewed monthly. We often say, what you measure is
what you monitor and manage. Month in month out, the practice leaders need to know where the business stands
financially, to enable them to steer it in the right direction.
A profit margin between 10% and 20% is acceptable; however, this does not leave much room for low fee
months. A profit margin above 30% may mean the practice is an expert in its niche and can command significant
fees, or maybe just that your people are overworked and under-rewarded.
Typical budget variances are usually caused by changes in revenue (like the fees going up or down) or not
managing expenses accordingly, which can sometimes be due to inaccurate assumptions or poor budgeting, and
means results are measured against an unreasonable baseline.
Variances between actual and budgeted numbers should be investigated and explained monthly. Ideally,
unfavorable variances should be avoided wherever possible, as these could negatively impact the performance of
the practice.
Project profitability
First of all, it is recommended that practices have project reporting in place. It is important to track fees
and costs by project to ensure that projects can be completed within their set budgets and stay profitable. The
culmination of the profit of each project makes up the overall financial performance of the practice. Only when the
practice has established the profitability of each of the practice’s projects can it make accurate decisions about
resourcing and fees.
The language of business is accounting and unless you are well versed in it. Some owners will have copious
amounts of reports and yet they have no idea how to read them, interpret them, or understand them. Most leaders
generally have enough to do between generating new work, designing, and ensuring existing projects are on track.
The practice needs to put an expert in charge of this area.
By outsourcing the accounting function to a specialist service partner, the business can focus its attention
on other key areas that directly impact its profitability. This will free up the directors to lead with confidence in a
competitive market, with the knowledge that the finances are in safe hands.
Architecture is a business, and the more architects can make a connection between the design process and
the numbers, the better placed they will be to help the practice, rather than hinder it, so that the business can take
on larger and more ambitious projects.
Leadership
The effective leadership capability is an essential key to orchestrate all disciplines to achieve goals of the
project. However, when public portrays the images of architect, ironically, leadership is not one of them. Role and
responsibility of an architect as a leader which rely on the ability to lead, manage, collaborate, and coordinate the
effort of relevant parties to create better living environment have been questioned. This missing qualification gives
a hint to one of the weaknesses in architect profession while it is gearing toward the complexity and constant
changing of professional practice in 21st Century.
Proven by a lot of researches, leadership has been considered as one of the most important keys of success
in every profession and organization. For architectural practice, leadership skill is not only counted as an essential
component of successful practice but one of the key factors of great architecture as well. Undoubtedly it is as
important as design skill. (Ronco & Jassaume, 2009, Cramer and Simpson, 2004, Scott Simpson in Pressman, 2007).
It is suggested to the architect firms to provide professional development to staff members in order to attain
necessary skills to become effective leaders. Sthapitanonda (2010), a Thai national artist in Contemporary
Architecture, suggested leadership is an acquired skill of successful architects. The increasing demand of leadership
skill in design profession is a result of new challenges from changing paradigm in complex society, global economy,
rapid growth of urban area, information technology, and advanced construction technology in 21st Century.
Currently even simple project, the numbers of people who get involved are increasing so that the talented design
skill is not the only key of the success of architect but also ability to lead, manage, collaborate and bring out the
best of other built-environment professions to achieve the common goal. Deutsch (2013) concluded in KA Connect
seminar that in the next five years the changes that architects would face are adjusting to new technology, acquiring
leadership skills, and mastering the management of design metrics.
Business Strategist
A business strategist is a person responsible for the formulation and implementation of a strategy – that set
of guiding principles used for decision making. Business strategists help identify new opportunities for their
organization and then develop the goals, objectives, strategies, and tactics (plans) required to achieve them. This
involves evaluating existing strategies and exploring new ones to uncover areas for improvement. Strategists may
work for the business at-large or focus on a particular functional area like in case of an architecture firm, that is,
marketing the designs to the client.
Assessment
Activity 10: Local Architect Entrepreneur
Task:
1. Find at least three (3) local Architects in your area who are not only doing Regular Design and
Constructions Services or employed in a Government/Private sector, but also are engaged in other
profitable businesses/hobbies/trades (but not competitions)
Examples:
Architect-artists
Architect- skilled crafts worker
Architect-blogger-content creator
Architect -inventors
Architect who also is a specialist consultant
2. Identify these other types of their income sources
3. Interview them on the details of their alternate income source following these sample guide questions:
Why are they engaged in alternate business or other revenue earning endeavors?
What benefits do they acquire in doing other businesses (other than extra income)
What can they suggest to aspiring architects/young architects when it comes to the practice of
profession?
Assessment
Activity 11: Graded Quiz
Task:
1. The instructor is tasked to craft a quiz based on the previously discussed lessons.
2. The quiz should be issued through Canvas or Face-to-face.
3. The quiz should be from 20 to 40 points.
4. Observe the protocol and policies in issuing a quiz.
Objectives :
1. To identify the leading software applications that is use by architects
2. To determine the advantages of having these software.
In the field of modern architecture, digital design software is essential. Beyond concept drawings, plans, and tangible
models, clients demand more. They would want more detailed virtual representations. You may design interiors and
add people to your buildings using 3D modeling. Some even allow you to modify lighting effects and take into
consideration a building's exposure to outside factors.
Beyond this, common processes are automated by design software. It saves you time, this. You can benefit from a
more effective process and provide designs to clients more quickly. However, if you select the incorrect software,
you won't benefit from these features. Your selection must meet your needs and work well with your workspace.
Each software program has an own collection of features. The software used in drawings, presentations, and building
sites is given below.
THE CLASSICS
Autodesk and Autocad360 Visualize any AutoCAD or Revit files on the go. Autodesk
users can view and upload 2D and 3D drawings regardless
of what software they use to create them. They can also
navigate large-scale models, review, and markup the
designs, measure dimensions, and areas, and track the
project status anytime, anywhere. FormIt 360's core
functionality is free for commercial use. For those looking
for advanced features like a real-time collaboration system,
solar analysis, and integrated building analysis, one will
need a Cloud Subscription.
This makes V-Ray ideal for those who need to add that extra
spark to their designs. The software offers access to stunning
textures. Further, its colour palette has few rivals. This
means you can use light and shade to your advantage with
V-Ray more so than most other design software.
Rhino 3D Since its creation in 1998, Rhino 3D has become one of the
most popular tools for architectural design. Users can enter
drawings or physical models into the software. From there,
Rhino can create 3D models and provide documentation for
the design. You can even scan real-world data into the newer
versions of the software.
Dynamo Dynamo often comes as a free plugin for use with Revit.
However, there is also a standalone version of Dynamo. This
means you can choose to use it independently of Revit,
though this requires payment of a subscription fee. Much
like Grasshopper, Dynamo is an open source software. This
means it has a large community around it that constantly
builds new features for the studio.
Fusion 360 Fusion 360 has gained popularity due to its versatility. The
software offers an all-in-one solution. Beyond designing and
testing, you can use the software for fabrication. Further,
Fusion 360 supports collaborative work environments
through its use of the cloud. This allows you to bring
together professionals from several sectors to work on
projects.
THE ARTISTS
Sketchbook by Autodesk Sketchbook works for all desktop and mobile devices. From
quick sketches to fully finished artwork, the app works as a
digital sketching paper free for everyone. The interface
allows easy access to all the drawing tools, including steady
stroke, symmetry tools, and perspective guides.
THE FUTURIST
PolyCam Polycam lets you craft top-tier 3D models from images using
any iPhone or iPad. It generates scans of areas utilizing the
LiDAR sensor and snaps complete 360-degree photos. It
also allows the user to modify 3D captures on their device
and export them in more than twelve different file formats.
Assessment
Activity 12: Testing of Software
Task:
1. The students are expected to use some of the software that was mentioned above and report back to the
class on how it made it easier for them to create drawings.
2. Present to the class the output drawing.
Grading Criteria
Content and Substance (60%)
Presentation (40%)
Assessment
Activity 13: Presentation of Group Activity
Task:
1. The students are expected to report their architectural office
2. The students are required to present their office goals, innovations, Org chart, financial plan,
business plan and their services.
Grading Criteria
Content and Substance (60%)
Presentation (40%)