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ARCH 523 Midterm and Final Module

The document discusses the economic and business aspects of architecture, emphasizing the importance of marketing and business management for young architects. It outlines common challenges faced by new architects in the Philippines, such as a lack of clients and insufficient government support, while also presenting alternative career options like PR specialists, marketing strategists, and real estate agents. The content encourages young architects to explore diverse roles beyond traditional design, highlighting the potential for success in various related fields.

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Rieo Villa
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0% found this document useful (0 votes)
13 views63 pages

ARCH 523 Midterm and Final Module

The document discusses the economic and business aspects of architecture, emphasizing the importance of marketing and business management for young architects. It outlines common challenges faced by new architects in the Philippines, such as a lack of clients and insufficient government support, while also presenting alternative career options like PR specialists, marketing strategists, and real estate agents. The content encourages young architects to explore diverse roles beyond traditional design, highlighting the potential for success in various related fields.

Uploaded by

Rieo Villa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 63

ARCH 523 : Business Management and Application for Architecture 2

Week 2 : Introduction
PART 1- CAREER OPPORTUNITIES FOR YOUNG ARCHITECTS

Objectives :

1. Learn the economic and business aspects of the Architecture Practice.

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

PART 1 – CAREER OPPORTUNITIES FOR YOUNG ARCHITECTS


Normally, a young architect would venture in the design and construction industry whether as an
entrepreneur or as an employed professional. This is the primary choice of work in almost all young practitioners.
But are there any more options that a fresh board passer can enter into. With all the challenges a young architect has
to encounter before making his own prominence in the field, it is really a painstaking experience to begin the career.
Common challenges in starting architecture practice
In the Philippines, the practice architecture, unlike law and medicine is not really a well-sought professional
service. The common Filipino client prefer other “cheaper” options when planning to build a house or any other
development. Moreover, the rival Civil Engineers are always stepping beyond the boundaries between the two
professions. Local clients do not just see yet the true value of hiring the services of an Architect. These are some of
the most common issues circulating around the Architecture practice:
1. Lack of clients – as mentioned earlier, clients tend to prefer hiring ordinary laymen to build their dream
homes rather than the service of the right professionals. Today, there are about 50,000 registered and
Architects in the Philippines. Its not every day that there are a thousand clients wanting to build his home.
2. Clients do not see the value of architecture – most of the time they perceive architectural services to be
very expensive and is just suited for the rich.
3. The government’s insufficient support to promote the practice – even government agencies most of the
time do not see the true importance of an architecturally designed structure. Building Codes are not fully
implemented nationwide.
4. Filipino culture and tradition – there are Filipino culture and traditions who are strongly instilled in every
Filipino families such “ kamag-anak or padrino system”, “pwede na yan mentality”, quantity over quality,
“bahala na”, and the culture of outer beauty.
5. The rigidness of government procedures in starting a firm – as learned in BUSMAR11, to begin a
practice, one must pass through a rigorous documentary requirement from the government.

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6. Budget to start a business – banks do not provide an easily accessible loan to young architects who do
not have a valuable collateral
7. Lack of employment – as mentioned, Architects battle with Civil Engineers in the government and private
plantilla.
8. Outdated curriculum – a few years back, architecture graduates are not equipped with the skills in
business and commerce, entrepreneurship and marketing.

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.

Accepting the Challenge


In economics when you do not have a market, you should create one. Clients will sprung once you have
made the right strategy to attract them. Even though some clients do not see the value of the architect, make sure
that you show them what its worth to “not” hire an architect. The government’s lack of support is truly a heavy
burden. But you can always try to spread the words of the need and importance of complying with building codes
to other prospective clients. We are already in the new era where some Filipino negative culture and tradition should
now be buried in the past as they are huge hindrance in achieving success. The tedious process in applying for a
business permit is only the start. You can always prepare your documents one by one, step by step. If your problem
is the budget in starting a firm, start small with simple and easy to do projects that do not need yet a whole
architecture firm team. Should you have difficulties in finding employment, hire yourself. Be the entrepreneur. It
does not matter if you begin with simple architectural tasks. Finally, there is no need to worry about the curriculum
as many architecture schools frequently update the curriculum based on the current needs.
Options for young architects
Architecture has a lot of disciplines within itself.
In recent years, many architects have ventured into
aspects of architecture other than building designing like
architecture journalism, architectural photography,
graphic designing, product designing, etc. This has
allowed for more diverse job roles that architects can
partake. To be a successful architect, there is a definite
requirement for being able to make interesting,
economic, and profitable choices and decisions. These
traits are often the jest of being a good marketing
professional. Hence, an architect has the potential in
pondering over career options that can successfully
combine the passion for architecture and the mindset of
an efficient marketing strategist.

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%)

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ARCH 523 : Business Management and Application for Architecture 2

Week 3 : Topic 1- Alternative Career Options for Architecture Degree Holders


 PR and Communications Specialists
 Marketing Strategies and business developers
 Social Media marketing and content development
 Realtors
 Media and Advertisement

Objectives :

1. To identify alternative career options for aspiring and young architects.;


2. To learn the possibilities of these alternative career options in order to aid the decision making of
young architects

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.

PR and Communications specialists


Many architecture projects of national and regional importance, often require the engagement and active
participation of various segments of the community. Architects with commendable communication and persuasive
skills and architectural knowledge can be integral in delivering the projects to the intended groups.

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. Create effective communication strategies for an architecture or construction company


b. Coordinate external and internal communications flow (memos, newsletters, etc.)
c. Design sketches of the mass media announcement
d. Write content for company website
e. Plan events, seminars and press conferences
f. Communicate with media regularly
g. Manage media inquiries and arrange interviews, statements, etc.
h. Build long-term relationships with influencers and key stakeholders
i. Collaborate with the marketing team
j. Serve as a facilitator and provide solutions for peaceful resolution of dispute

Marketing strategists and business developers


As many architecture firms are realizing the need to be actively involved in marketing their projects and
services to stay in the race, business development has become a necessity. Architects who have good interpersonal
skills and knowledge of the market and the industry are often given priority for the roles of business development
and developing marketing strategies. It is also a lucrative job profile with the prospects of earning more based on
the developmental targets achieved.

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

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can be a good option as a marketing strategist for building construction products and materials
companies.
Example:
 Marketing strategists of finishing materials
 Marketing specialists of roofing and steel materials
 Marketing specialists for building equipment, instruments and machineries

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.

Social media marketing and content development


Social media platforms have become one of the most sought tools for the promotion of projects, prospective
client management, and brand engagement for various architecture and interior design firms and other architecture-
related companies. Being tech-savvy, knowing the current trends of architecture, and having the right content and
tools for marketing can help architects become the right fit for such jobs. Social media marketing is the use of
social media platforms to connect with your audience to build your brand, increase sales, and drive website traffic.
This involves publishing great content on your social media profiles, listening to and engaging your followers,
analyzing your results, and running social media advertisements.

6 Filipino Content Creators in Architecture and Interior Design


1. Saira Nepomuceno
2. Lyan Oliver Austria
3. CMV Interior Designs
4. Architect Nina Necor
5. Carla Fajardo Interiors
6. Moira Mercado
7.
Sources:
1. Mañago, K. (2021, July). TOP 10 FILIPINO CONTENT CREATORS TO FOLLOW ON
TIKTOK – Voice Of The Youth Network. Www.voty.org. http://www.voty.org/2021/07/top-10-
filipino-content-creators-to.html
2. Mendoza, M. (2021, July 17). 5 YouTubers to Check Out if You’re an ~Aspiring~ Architect.
Candymag.com. https://www.candymag.com/all-access/5-youtubers-to-check-out-if-you-re-an-
aspiring-architect-a00306-20210717

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3. Top 5 Filipino Interior Designers on YouTube Worth Following – Pinoy Stack. (2021, May 9).
Pinoy Stack. https://pinoystack.com/blog/lifestyle/top-5-filipino-interior-designers-on-youtube-
worth-following/

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.

Benefits of an architecture background


An agent with a background in architecture may particularly appeal to clients interested in purchasing fixer-
upper properties. Architects have the training needed to inspect and evaluate the bare bones of a property and can
make valuable suggestions to clients about everything from plumbing to extensions. They have experience with
aesthetic judgments, making them qualified to offer unique suggestions to clients when it comes to building
proposals. Many buyers are also interested in sustainable processes, which an architect may have specific knowledge
of in terms of energy conservation and recyclable, eco-friendly materials.

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%)

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ARCH 523 : Business Management and Application for Architecture 1
Week 4 : Topic 1- Alternative Career Options for Architecture Degree Holders
 Media and advertisement
 Ever-evolving architecture
 Architecture Advertising
 How Advertising can help your architecture firm
 Ways for an architecture firm to advertise itself
 The Advantages of an architecture advertising

Objectives :

1. To identify alternative career options for aspiring and young architects.;


2. To learn the possibilities of these alternative career options in order to aid the decision making of
young architects

Media and advertisement


Developers, architecture firms, architectural colleges, architecture-related businesses, etc often require
customized, creative video and audio marketing content to advertise and promote their projects and services. A
passion for video content creation and a good sense of architecture and marketing can be of great help in venturing
into the much less explored territory of video content creation for architecture-related fields.

“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.

How Architects use social media


For an example of how firms are leveraging social media, let’s look at Gensler’s Facebook page with
13,000 followers. The firm’s updates include sharing thought provoking content, videos, photos and press of their
projects. For the visually inspired, architect Vivien Wei Wei Liu’s Instagram account has an impressive 107,000
followers and architect Bjarke Ingels has 56,000 followers. They typically share photos of architectural interests
but also of personal snapshots of their lives.

How general contractors are using social media


It is noticeable that general contractors, the boots on the ground that work with building materials everyday,
are far more likely to be sharing, tagging and discussing building materials related content on their channels than
architects.

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These two examples are from a search on Instagram for the keyword “drywall.” But they convey the types
of content contractors are talking about. They are posting about product, locations, the projects they are working on
and calling out their company name. They are using social media as an opportunity to self-promote. But this directly
ties back to how a manufacturer can benefit by being a part of posts like this. If an architect is searching for content
or keywords like this, and your brand is associated with other high-profile projects, geo location or the GC’s
channels, that is a net benefit. But you cann0t be part of the conversation, if you are not in the conversation.

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.

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This can be pretty disappointing for a professional architect with a lot of experience. That is why it is
important to opt for an effective architecture marketing strategy that can help you correctly promote your
architectural company’s services and products.

How advertising can help your architecture firm


Through architecture marketing, big and small businesses can easily promote their architectural design and
other projects. But there are several ways an architect can easily market their services under his/her marketing
budget. They are the following:

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:

1. Sponsorship – when an established company/figure backs up or endorses your practice


2. Traditional advertisement methods (for architects the traditional advertising is through business cards)
3. Newsletters and e-mail – advertising through news letter and e-mail can be done by hiring the services
of an ad company online.
4. Cold calling - Cold calling is the business practice of contacting a potential customer or client who has
not expressed previous interest in speaking with a customer service representative or making a
purchase.
5. Word-of-mouth referrals – today, referrals are no longer done by word of mouth but by posting on
social media

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


SMM or social media marketing focuses on offering all the users content that they find pretty valuable
and wish to share across all social networking platforms. This method can help all the architects greatly and will
also obtain potential clients for their business. All the content-tailored social platforms, such as Instagram,
Facebook, YouTube, and LinkedIn, can publicize your business and fosters engagement. This can increase growth
potential, website traffic, and visibility.
SMM can also influence SEO [search engine optimization]. But architects should remember that social
media is not a ranking measure. This means it cannot impact the original SEO ranking. But social shares can enhance
the SEO performance through:

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 Potential branding
 Bringing in new clients
 Backlinking opportunities
 Content distribution
 Humanizing your businesses by building trust.

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

1. Public relations and earned media

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:

 They are free publicity channels


 They are pretty unsolicited and have instant perceived credibility
 Increases the awareness of trusted, educational and valuable content

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

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by creating content, which answers all the questions, attracts all your targeted clients, and primes readers to work
with you. Content creation allows you to establish your corporation as the authority within your niche.

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/)

The advantages of architecture advertising


Architecture marketing can help you stay one step ahead of your competition. You will also get numerous
benefits once you opt for it. These are:

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

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Architecture
3. Screenshot at least 3 local architects you know (friend on facebook) who tries publishing their work through
social media. Screenshot sample/s of their architecture related posts

Grading Criteria
Content and Substance (60%)
Presentation (40%)

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ARCH 523 : Business Management and Application for Architecture 2

Week 5 : Topic 2- Architects in the Gaming Industry


 The roles of Architects in VR, AR, and video Games
 Relationship Between gaming industry and architecture
Objectives :

1. To venture in the promising career of Video Game Environment Design;


2. To understand the relationship and intersection of Architecture and Video Games

Topic 2. Architects in the Gaming Industry


Admit it or not, at one point in your college life you have been addicted in playing a video game. The young
architects are best suited in engaging the budding industry of game environment designing.

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.

The Role of Architects in VR, AR, and Video Games


When approaching the construction of buildings in the “real world,” architects and designers create spaces
where people can live, work, shop, eat etc. Buildings and their interiors are grounded in reality by rules and
regulations and are designed to meet environmental standards, evoke emotion, and/or provide an experience. There
is a common misconception that designers have a significant amount of knowledge only applicable to building
design and construction, when in fact there are clear parallels between real and virtual design processes.

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

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interiors that we inserted into wonderful existing buildings. The Art guys in the team did an amazing job, as you
really cannot tell what was made up by us and what was an original fabrication…” (9)

Intersection of Architecture and Video Games


Where architecture and video games intersect, the typical solution has been "video game architecture,"
which - as seen in La Noire - attempts to replicate a space which may fit the environment but does not necessarily
serve the player. What is being proposed instead is design process applied to a video game, which showcases a
different approach where one uses the creative process to design virtual space rather than make spaces for story’s
sake. This provides a level of “subtle sophistication” rendered by architect involvement which may otherwise not
be incorporated.

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.

Relationship between the gaming industry and architecture


Architecture has always been a very broad term to use in any language. It is associated with building a
structure while also being used to build a nation. Yet architecture was always a medium that was experienced in
reality using the skin, our eyes, and our soul. But now during the digital age, building a structure may not always
be the solution. Restoring buildings to their former glory may seem to serve the purpose but it is just a new way of

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covering up the scars of their destruction or decay. Therefore, a new path opened up for architects, designers, and
illustrators to explore their visions in reality but virtually. Video Game designing which has been present since the
late 1950s, only had its breakthrough in the 1980s.

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.

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Attaining intended spaces in games through Architecture.
Several games in the ever-changing gaming industry are based on historical themes, heritage cities, and the
golden ages of human civilization. To recreate the spaces of the past, architects and urban planners have been
employed to design the specific character and essence of each city or town using its basic ideologies, lifestyles, and
history. Hence, several major cities have been studied to mimic their overall fabric. The difference between the past
cities and the cities built within the games needs to be obvious because it may cause the viewer to get confused if
elements don’t have any navigating factors. One needs assurance and a guiding sequence that allows the gamer to
feel centered and not get lost in the virtual environment. Hence, architects have the flexibility to add or subtract
various elements to allow the gamer to choose a path within the game while also enjoying the architecture around.

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%)

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ARCH 523 : Business Management and Application for Architecture 1

Week 7 : PART 2 - ESTABLISHING AN ARCHITECTURAL FIRM


Topic 3 - Business Plan for an Architectural Firm
 Elements of a Business Plan
 Business Plan Basic Structure
Objectives :

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.

PART 2 – ESTABLISHING AN ARCHITECTURAL FIRM


In BMAA1, we learned about the different typologies of an architectural firm namely; Sole Proprietorship,
Partnership and a Corporation. We delved into the intricacies of starting a business, identifying the different
technical requirements before one can legally practice Architecture. Establishing one’s architectural firm does not
stop when all the requirements has been met. It is merely the beginning of a much more cumbersome task – that is
to keep the business running.

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.

Topic 3 – Business Plan for an Architectural Firm


Statistics indicate that experience plays a role in the success of a business enterprise. Founders of previously
successful business have a 30% chance of success with their next venture. Founders who have failed at a prior
business have a 20% chance of succeeding versus an 18% chance of success for first-time entrepreneurs.

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.

What is a Business Plan?


A business plan is a document that defines in detail a company's objectives and how it plans to achieve its
goals. A business plan lays out a written road map for the firm from marketing, financial, and operational
standpoints. Both startups and established companies use business plans.

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.

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Start with the essential structure: an executive summary, company description, market analysis, product or
service description, marketing strategy, financial projections, and appendix (which include documents and data that
support the main sections). These sections or elements of a business plan are outlined below.
When you write your business plan, you do not have to strictly follow a particular business plan outline or
template. Use only those sections that make the most sense for your particular business and its needs.

Elements of a Business Plan


The length of a business plan varies greatly from business to business. Consider fitting the basic information
into a 15- to 25-page document. Then, other crucial elements that take up a lot of space—such as applications for
patents—can be referenced in the main document and included as appendices.

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.

Example of an Executive Summary

NW Architecture will be an architectural firm specializing in residential, commercial and industrial


architecture in domestic and international markets based out of the Bay Area near San Francisco,
California. The firm will provide architectural services using technologically superior processes, providing
greater value for clients and enhanced design and construction.

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

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what the end result will look like. This is possible through the use of computer-rendered images and
interactive video.

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.

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.

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 Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship?
Explain your legal structure here.

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:

 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.

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.

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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.

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:

Advertising in local papers and magazines


Reaching out to local websites
Flyers
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 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

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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.

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:

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

Business Plan Basic Structure


This is the basic structure you can follow in crafting a Business Plan
1. Cover page - Small but important, it should include the name of the business and your name and contact
information.

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.

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5. Industry Background - Provide past and current data about the shape, size, trends, and critical features of the
industry you are trying to get in. What is the industry? What is the industry outlook? Who is competing in this
industry? What are the industry's barriers to entry?

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%)

ARCH 523 : Business Management and Application for Architecture 2

Week 8 : PART 2 - ESTABLISHING AN ARCHITECTURAL FIRM


Topic 3 - Business Plan for an Architectural Firm

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 Types of Business Plans
 The Business Model
Objectives :

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.

Types of Business Plans


Business plans can be divided roughly into four distinct types. There are very short plans, or miniplans,
presentation plans or decks, working plans, and what-if plans. They each require very different amounts of labor
and not always with proportionately different results. That is to say, a more elaborate plan is not guaranteed to be
superior to an abbreviated one. Success depends on various factors and whether the right plan is used in the right
setting. For example, a new hire may not want to read the same, elaborate version of your plan that might be
important to a potential investor.
1. The Miniplan
The miniplan is preferred by many recipients because they can read it or download it quickly to read later
on their iPhone or tablet. You include most of the same ingredients that you would in a longer plan, but you cut to
the highlights while telling the same story. For a small-business venture, it is typically all that you need. For a more
complex business, you may need the longer version.
2. The Presentation Plan
The advent of PowerPoint presentations changed the way many, if not most, plans are presented. And while
the plan is shorter than its predecessors, it is not necessarily easier to present. Many people lose sleep over an
upcoming presentation, especially one that can play a vital role in the future of their business. But presenting your
plan as a deck can be very powerful. Readers of a plan cannot always capture your passion for the business nor can
they ask questions when you finish. But in 20 minutes, you can cover all the key points and tell your story from
concept and mission statement through financial forecasts.
3. The Working Plan
A working plan is a tool to be used to operate your business. It has to be long on detail but may be short on
presentation. As with a miniplan, you can probably can afford a somewhat higher degree of candor and informality
when preparing a working plan. In a plan you intend to present to a bank loan committee, you might describe a rival
as "competing primarily on a price basis." In a working plan, your comment about the same competitor might be
"When is Jones ever going to stop this insane price-cutting?"

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.

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Every business or companies makes a plan for generating profit. They create a model for identifying
products and services to sell, the market they want to target and also take into account anticipated expenses. This is
known as business models.

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.

Importance of Business Models:


 The business model helps to target the customer base for the company.
 It helps in making marketing strategies, projection of revenues and expenses taking into account
the type of Business models and clienteles.
 Every investor needs to review the business model in order to get knowledge about the company’s
competitive edge.
 Understanding the business model helps the investors to have a better sense of financial data.

Types of Business Models:


We will discuss here about 4 types of business models:

1. Business -To- Business Models (B2B):


When the dealings or the transactions take place between two companies or the business then this type of
business model is known as business-to-business models. It has good market predictability and more market
stability. Since under B2B sale is made in bulk amount this model leads to lower cost for the businesses.

2. Business -To-Consumer Models (B2C):


Business-2-consumer business model is a model that refers to businesses that sell their services or the
products directly to the consumer who are the end users of the products or services. There is an ongoing demand
for the products as it provides the essential items. This thus eliminates the risk of fluctuation in demand and helps
in maintaining consistency in the business. Since direct contact is there with the customers so information is shared
with them directly and easily. Customers are given products at a low price compared to its competitors for the
business to run smoothly.

3. Subscription Based Models:


Any application-based businesses or software companies have subscription-based business models. They
offer their product as a onetime purchase, in return company earns monthly or annual revenues. This type of business

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model allows the company to earn regular income by giving the client the opportunity to pay for the cost of the
purchase in 12 equal payments rather asking them to pay the wholesome amount at one go.

4. On-demand Business Model


It is the most recent form of model which is made out on the need by answering immediately. Under this
type of business model is prepared in such a way where all the questions will be answered by just a click of a

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.

Advantages of Business Models


 A good business models gives the company a competitive edge in the industry.
 A strong business model provides the company good reputation in the market place encouraging
the investors to remain invested in the company.
 Making the business model strong leads to an ongoing business profit leading to increase in cash
reserve and new investments.
 Proven business model brings a financial stability in the organization.

Disadvantages of Business Model:


 Once a business model is created, then it restricts to implement new ideas for the product.
 Creating a business model is time consuming as lot of factors needs to be considered.
 There might be a chance that business model may turn out to be inaccurate.
 Apart from the disadvantages, business model is mandatory to be prepared before starting of a
new project.

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.

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Marketing is defined as the action or business of promoting and selling items or services, which includes
market research and advertising. Marketing is now something that every company and organization must include in
their growth plan.

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.

3. Marketing builds reputation

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Marketing is an important aspect in your company's reputation since it spreads the word
about it. Strong, professional marketing implies that you are a trustworthy company. The link is
unmistakable.
4. Marketing sells
It is basic logic: you can't sell your products or services if no one knows about them. While
opening a store in your area may bring in some walk-in customers, marketing broadens your reach
and brings attention to what you're selling so that people will buy it.
5. Marketing grows business
This marketing function is a culmination of the previous four. Strategic marketing
frequently leads to increased revenue for your company. Your firm will most likely succeed if you
properly educate clients, keep them involved, build a solid reputation in their thoughts, and sell
intelligently.

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%)

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ARCH 523 : Business Management and Application for Architecture 2
Week 9 : Topic 4. Marketing Models
 Benefits of a strong Marketing Strategy
 Types of Marketing Models
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.

Topic 4 Marketing Models


Marketing is one of the most important aspects of a business yet is often underestimated, especially within
the startup world. Most startups are tight on resources and often want to get straight to selling. Although an
understandably standard action, it can waste significant amounts of time and money. Most sales staff face the
burdens of bringing in leads and converting them. However, having the right tools and support can significantly
increase their chances of closing a deal. As important as a sales team is to an organization, a well-versed marketing
expert can effectively impact a business in several ways.

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.

Benefits of a Strong Marketing Strategy


1. Brand Familiarity
Brand familiarity is a goal that nearly every business wants to achieve. After all, survey results
show that 81 percent of consumers need to be able to trust a brand before they buy from them.
2. Consumer Engagement
Consumer (or customer) engagement is the ongoing cultivation of a relationship between the
company and consumer that goes far beyond the transaction. It's an intentional, consistent approach by
a company that provides value at every customer interaction, thus increasing loyalty.
3. Authenticity and trust
Marketing allows you to establish authenticity and trust with your consumers. By appearing on
several communication channels, consistently portraying your brand's vision and goals, engaging with
your audience, being present and responsive and showing empathy for your customer's pain points,
you'll be seen as authentic and build trust with your audience
4. Earned Media
One of the oldest and cheapest forms of marketing is word-of-mouth. Still, nearly half (48%) of
businesses worldwide rely on the power of loyal customers to spread the word about their products or
services.

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.

Earned media includes:


o Promoting a brand's website.

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o Reposting a social image.
o Sharing a social post (whether publicly or privately).
o Tagging the brand in a post.

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.

Types of Marketing Models


Below are the Types of Marketing Models.
1. 7Ps marketing mix
The 7 Ps of Marketing are product, price, place, promotion, people, process, and physical
evidence. The marketing mix is a well-known marketing paradigm that aids in the organization of the stages
of a corporate plan, from conception through assessment.

Using the 7Ps breakdown, you may examine each part of your business to uncover methods to
improve your strategy and achieve your objectives.

2. STP marketing model


STP is an acronym that stands for segmentation, targeting, and positioning. It's a common top-
down technique that focuses on how a firm contacts consumer. To offer relevant, customized messages to
targeted groups, STP employs a four-step methodology.

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.

3. Porter's five forces

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Competitive rivalry, supplier power, buyer power, threat of substitution, and threat of new
entrants are Porters's 5 forces

This methodology is unusual in that it measures profitability by concentrating on external forces


and competition rather than the product or audience. Using this analysis might be a simple yet effective
technique to understand your company's competitiveness.

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.

5. SWOT and TOWS analysis


SWOT and TOWS are abbreviations for strengths, weaknesses, opportunities, and threats,
respectively. While both employ the same fundamental concepts in their analysis, TOWS focuses on the
external environment, whereas SWOT focuses on the internal environment.

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.

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6. Ansoff matrix
The Ansoff matrix, often known as the product or market growth grid, is a 2x2 grid that describes
four options for growing your firm and analyzing possible hazards. Markets can be seen on the y-axis of
Ansoff grids.

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.

8. McKinsey 7-S Model


The McKinsey 7-S model describes seven essential factors that must work together for a firm to
succeed. The McKinsey 7-S model is most commonly represented as a watershed diagram with seven rings.
The seven circles are as follows: strategy, structure, systems, styles, staff, skills, and shared values.

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The shared values circle in the middle connects the other circles, demonstrating that each of the
parts is critical to an organization's success and adaptability. Consider how your marketing activities in one
area may affect the others while using this methodology.

9. Product life cycle


The product life cycle model may assist you in developing new goods, refining current products,
and determining whether to abandon a product. It consists of four stages that can direct your marketing
activities throughout the product development process:

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.

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Assessment
Activity 7: 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%)

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ARCH 523 : Business Management and Application for Architecture 2

Week 10 : Topic 5. Types of Architecture Firms and Business models


 Model Types of Architecture

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.

Topic 5. Types of Architecture Firms and their Business Models


What types of architecture firm exist to suit the best business model that works with you? As you are
developing the business plan for your new architecture firm, it is important to consider what your business model
will be.
This includes planning for your firm’s operations to respond to the following questions:
 How will you acquire new clients?
 What types of projects do you want to design?
 Why should clients choose your firm over other options?
 How will you deliver projects while being profitable?
 How will your staffing be organized to deliver your services?
 These questions and others all relate back to your business model.

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.

Model Types of Architecture Firms


1. Efficiency based
This model is for architecture offices that can deliver projects faster or for less money than the firms you
are competing with for work.

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

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tight timeline, and is budget conscious. This could be residential developers, retail chains, or even small projects
like Accessory Dwelling Units.

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.

What do these types of firms usually do?


They work on chain restaurants across the country and adapt a standard kit of parts to fit whatever new
space the restaurants are moving into. The work deploys standard materials and details on every project that are
simple and repetitive. By keeping their process super-efficient, improving upon it and maintaining a large
production staff of junior architects, they’ve developed an incredibly profitable business while providing a great
work/life balance for the owners and actually are able to pay their staff slightly above the market rate for their
experience level.

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.

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3. To achieve this, they leveraged their past relationships and their portfolio to acquire new work, often
through the public RFP/Q process.
4. When you are starting a new firm and want to be an experience based architectural practice, you will
have to rely on the reputations and past portfolio of you and your business partners.
5. You will need to clearly demonstrate that the experience you have gained before starting your own
business will translate to being able to deliver similar projects.
6. The structure for staffing these firms also differs from the efficiency-based firms.

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

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support staff below them to assist with the execution of the work, but the principals are really
engaged in the work itself, rather than being focused on managing the firm or finding new clients.
4. These firms also often look to partner with other architectural offices to execute the full scope of
architectural work. They can either act as the design architects - with an architect of record brought
on to help with production or they may be specialty consultants themselves brought onto a project by
another firm to help navigate particularly challenging technical problems.

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%)

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ARCH 523 : Business Management and Application for Architecture 2

Week 11 : Part 3. ARCHITECTS SERVICES AND PRODUCTS


Topic 6 - Exploring Special Services under the Standards Professional Practice
 Options under Pre-Design Services
 Be an entretrepreneur under the Specialized Architectural Services
 Alternative Services under Post-Construction
Objectives :
1. To identify what other services an architect can provide outside of the Standards of
Professional Practice;
2. To determine gainful special services the architect may provide or market to clients.

Topic 6 – Exploring Special Services under the Standards of Professional Practice


The Standards of Professional Practice provides for a normal way to practice architecture in the Philippines. SPP
201 and SPP Document 202 provides for the Pre-Design and the Regular Design Services, SPP 203 enumerates
other Specialized Architectural Services, SPP 204 A and B provides for Construction Supervision and Management
Respectively, SPP 205 identifies the Post-Construction Services an Architect may provide, SPP 206 defines the
Comprehensive Architectural Services, SPP 207 for Design-Build Services and SPP 208 for Architects who are
engaged in architectural Competitions.

Options under Pre-Design Services


The Pre-design Services of an Architect may not be the most profitable service an architect is providing.
That is true going back decades ago. It is the phase where you try to convince your client on the design of the
building the client is planning to put-up. It is a hit or miss phase. The architect may be lucky to be hired, or not so
lucky that his hard work in creating schematics and proposals is scrapped.
Today, with the advent of Computer Aided Renderings, 3D Visualization, and Virtual reality, this phase
may be full of other great opportunities. Young architects may find gold in this dusty phase of architectural
designing.

What are the profitable endeavors under the Pre-Design Services Phase?

1. Marketing your 3D concepts and design


Young architects who are more proficient in CAD and 3D visualization may continue to enjoy
what they like – making realistic 3D designs. Rendered perspectives are very marketable in the internet.
Drawings maybe bought by and sold to clients who are just fishing for the design of their future homes.
There are people also whose interest is collecting perspectives of unique designs. Moreover, other print
companies may also be interested in your perspectives for their print ads.

2. 3D Renderers for designers not proficient in CAD


Many older architects, landscape architects, interior designers, event decorators, and other event
suppliers did not evolve to use computers in their presentations. Young architects may earn profit in helping
these designers. For example, a famous and well-sought event designer who is not good in drawing
perspective presentations is hiring a young architect to draw for him concepts and designs of various events
and celebrations. Each perspective produced may be charged from PhP 5,000 – 20,000.

3. Design concepts content creator


One can also become a well-paid content creator by just doing his passion. Doing conceptual
drawings of any kind of built environment. ArchDaily for example is an internet content creator who is well
visited not only by design enthusiasts.

4. Architectural Concept Competitions


Metrobank MADE for example is an annual competition inviting architects to participate in
conceptual design contests. The prize money for winners is not bad at all. Other organizations who have set
a competition frequently are FUTURARC, BCI Asia, Design Educates Award, Rising Philharmonic and
many more.

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Be an entrepreneur under the Specialized Architectural Services
There are 23 different area s where an architect may render his specialized architectural services. Any of
these specialized services may be your distinct line of expertise and mastery depending on your interest in one or
many of them.
In the Philippines, very few architects are specializing their field and line of expertise because almost
every architect wants to deliver his services under the Regular Design Services or that of the Design-Build
Services of an architect. This means that there are great opportunities out there since clients no longer source out
foreign architects specializing in a type of service. Instead, local Filipino architects are readily accessible. Let us
deduce the services that we can provide under the enumerated Specialized Architectural Services under SPP 203.

Architects doing Interiors


Under Architectural Interiors, it normally involves the detailed planning and design of the indoor / enclosed
areas of any proposed building / structure, including retrofit, renovation, rehabilitation or expansion work which
covers all architectural and utility aspects, including the architectural lay-outing of all building engineering systems
found therein. Beyond this scope, a young architect may venture in the following line of work:
1. As a furniture designer – this line of work may be fitting for an architect with deep imagination in
furniture designs
Most iconic furniture designed by architects

Zaha Hadid’s Mesa Glass Table

Frank Gehry’s Wiggle Chair

Ludwig Mies van de Rohe’s


Barcelona Chair

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Arne Jacobsen’s Egg Chair

Rem Koolhas’ 04 Counter

Eero Saarinen’s Tulip table

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.

 Time Maze Clock, Daniel Libeskind for Alessi

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Libeskind deconstructs, and then jumbles, the concept of time in his stainless-steel Time Maze
Clock for Italian housewares manufacturing and design company Alessi.

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.

Specialization in Architectural Acoustics


Basically, Acoustic design services involves the detailed planning and design to control sound transmission
for compatibility with the architectural design concept. A promising field in acoustics design is designing surface
materials that are not only sound absorbent (or reflective) but are also architecturally decorative. Young architects
may become acoustics specialists by conceptualizing and designing acoustics boards that are at the same time part
of the architectural expression of a space.
Acoustical panels are no longer used for their original purpose. They also become part of the architectural
design like those panels designed by a company like BEEQUIET, Olanglab Art Acoustics, Sonic Acoustics,
Ekkogo, and many more.

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Architectural Lighting Designers
Under SPP 203, Architectural Lighting Layout and Design Services involves the detailed planning and
design of light transmission, timing and control for compatibility with the architectural design concept. With the

1. Bestor Architecture made one of the most sought after


pendant lighting design. Affordable and useful, the Unfold
pendant by Muuto is made of soft silicon rubber. It is as
durable as it is quirky.

2. Amy Lau Designs. One of Giopato & Coombes’s first


designs, based on the lightness of soap bubbles, the Bolle
collection has long been favored by Lau for the reflective light
quality created from the handblown spheres as well as its
customization options

3. Peter Pennoyer Architects - Completely handcrafted at


Woka’s Wiener Werkstatte, the Knize Symmetric-35 is the
original Adolf Loos design also known as a
"Pentagondodekaeder"—a ball made from 12 flat pentagons,
originally manufactured for Knize, the renowned men's
outfitter and tailor in Vienna.

knowledge of 3D lighting simulation, one can design decorative lighting fixtures which may be profitable.

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Role in Site Development
In Site Development Planning, the architect is mostly involved in the space planning, architectural lay-
outing and utilization of spaces within and surrounding a specific building/ structure in relation with the existing
natural and/or built environments have to be a well-coordinated effort so that both the building/ structure and the
host environment shall act as one. Landscaping is also a part of Site Development Planning.

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).

A Niche in Historic and Cultural Heritage Conservation


1. Liturgical Spaces Architect
While churches have almost become a second home to us, Filipinos, it is still rare to have
professionals like architects or engineers specializing in the construction, upkeep, and restoration of
churches. Arch. Roy De Guzman, a UAP-Outstanding Young Architect of the Year 2017 awardee, an
architectural history lecturer, and founder of RDG Architects + CTi Builders—an architectural firm that
specializes in designing liturgical spaces.

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.

Building Systems and Components Designer


The Architect in this area of practice engages in methods of producing building components in a highly
engineered, efficient and cost-effective manner, particularly for residential and commercial applications. In this
specialized service, you may become an entrepreneur selling your own products for residential and commercial
applications. At least there are 5 architects turned to selling products who enormously succeeded.
1. Albrecht von Alvensleben, founder of
Bullenberg Albrecht von Alvensleben is an architect
and founder of Bullenberg, a furniture label based in
Berlin. Bullenberg manufactures handcrafted wooden
tables using wood sourced from von Alvensleben’s
family estate in Saxony, near Berlin. The idea of
creating a business had a humble beginning – a friend
was looking for a solid oak tabletop.

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Being a trained architect enabled Albrecht to do a lot of the work himself, including designing the website and
taking photos of the finished products. Bullenberg is currently planning to move from direct sales to retail and
expand the brand’s work to include other types of products.

2. Seth Grizzle and Jonathan Junker,


founders of Graypants 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.

Their portfolio includes public artworks, architectural


installations and several lines of lighting, furniture,
packaging designs sold throughout the world. Their
debut architecture project Garage won the coveted AIA
Seattle’s Award of Honor in 2013.

3. Edwin Heathcote, founder of Izé


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.

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.

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4. Igor Siddiqui, founder of ISSSStudio
Igor Siddiqui, another architect-turned-
product designer, worked as a practicing
architect before setting up his own office
ISSSStudio in 2006. The firm designs and
manufactures everything from product
prototypes to single-family houses using
digital techniques and fabrication
technologies. The team explores materials
properties, flexibility, mobility and
performance-driven design.

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.

Expert in Environment and Sustainability Certification


You can shift your practice from a normal architect designing buildings to be someone who is certified to
rate the level of sustainability of a building. In the Philippines, these are the organizations providing services for
Building Environment Certification.
1. LEED Philippines - Leadership in Energy and Environmental Design (LEED) is a building certification
program used by commercial establishments and office buildings. This helps developments put a premium
on efficiency and leadership to deliver its triple bottom line returns of people, planet, and profit.
2. BERDE - (Building for Ecologically Responsive Design Excellence) is a tool to assess, measure, monitor,
and certify the performance of green building projects, above and beyond existing national and local
building and environmental laws, regulations and mandatory standards. It is launched under the PhilGBC
(Philippine Green Building Council)
3. GREEEN - is a Green Building Rating System that will provide a voluntary, code-based, environment-
responsive set of criteria to evaluate buildings that are newly constructed and undergoing major
renovations. It is under the umbrella of the Philippine Green Building Initiative (PGBI)
4. EDGE- green building certification helps create resource efficient buildings in an easy, smart and
affordable way. Excellence in Design for Greater Efficiencies (EDGE) is an innovation of the International
Finance Corporation (IFC). It helps property developers create resource-efficient buildings quickly, easily
and affordably. It is the next generation of environmental building certificate standard, incorporating a
design tool to prove the financial case for constructing green buildings. EDGE allows developers, building
owners and investors to assess the environmental and economic impact of any design decision within
minutes.

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.

Career in Forensic Architecture


Forensic architecture' is the name of an emergent academic field which refers to the production and
presentation of architectural evidence—relating to buildings, urban environments—within legal and political

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processes. It uses architectural analysis, models and animations as investigative tools, primarily for the production
and presentation of spatial evidence in the context of armed conflict and political struggles. Evidences are presented
in political and legal contexts, including international courts, truth commissions, and human and environmental
forums.
Both "forensics" and "architecture" refer to well-established disciplinary frames. Brought together, they
shift each other’s meaning, giving rise to a different mode of practice. While architecture adds an essential method
of investigation, forensics demands that architects pay the closest attention to the materiality of the built
environment and its media representation. A career in Forensic Architecture means you have to be associated with
a network working in the legal system of the country.
Architect as Realtors
You have to be a licensed Real Estate Appraiser to be legally practicing in this field. Appraisal is defined
as an act or process of estimating value. The Consulting Architect in this area of practice places value on the
building/ structure condition and defects, and on its repair and maintenance, including the required improvements.
Joining a group of realtors would be a good start when you want to work in this area of practice.
Specialty Structural Conceptualization
This area of expertise is usually present in complex buildings and other big projects. The Architect in this
area of practice conceives, chooses and develops the type, disposition, arrangement and proportioning of the
structural elements of an architectural work, giving due considerations to safety, cost-effectiveness, functionality
and aesthetics. To practice this area, you must join elite architectural firms doing business internationally and
designing large and iconic structures.
Production of Contract Documents
The Architect in this area of practice must have much more than the basic knowledge of Specification
Writing, Estimation and Quantity Survey, Architectural Production, Architectural Software, Architectural Support
Services and Contract Document Review.
Starting young architects usually help established firms in the production of contract documents and the
use of architectural software for the designs. It is a good start to associate yourself with different firms and provide
this type of service.
Post Design – Specialty in FALAR
Included under this specialized practice is the preparation of the Fire Safety and Life Assessment Report
(FALAR) required by R.A. No. 9514, the 2008 Fire Code of the Philippines and its 2009 IRR. Since FALAR is
already a requirement for businesses and buildings in many cities, this could be one profitable way to add into your
expertise as a practicing architect.
Construction Arbiter and Mediator
You should be first a member of the Construction Industry Arbitration of the Philippines (CIAP) in order
to practice Alternative Dispute Resolution in the building construction industry. It is a good way to begin by taking
units in Law School. But once you are already an accredited Arbitrator, it is guaranteed that your income will swell.
Most Arbitrators are paid by US dollars as most projects involved in disputes are large international projects.
Researchers and Writers
Very few are interested in the field of researching. But if you do, maybe one day you will be aligned with
today’s famous local authors and researchers like Prof. Gerald Lico and Prof. Norma Alarcon. Writing and
researching is not the expertise of architecture graduates but it can be practiced. Remember this. Once you have
wrote a marketable book or any publication, you are not simply immortalized but you will earn premiums whenever
someone picks your book in a bookstore or download your published research in the internet, all while you are
comfortably lying at home.
Alternative Services under Post-Construction
The most common positions held by an architect after a building is already operational are the following:
Building Administrator, Campus Planner, Building Operations Manager, Head building Maintenance, and Facilities
manager, all of which are good paying-jobs. The question is, which buildings require any of these positions? Of
course, bigger and more complex buildings will include any of the mentioned positions in their plantilla. Medium-
sized building may also need them as a non-permanent official.
Medium sized buildings who cannot pay a permanent position like those mentioned above are hiring on-
call consultants whenever they need one. Churches and other religious groups top those institution who needs from
time-to-time architects who will help them in doing some improvements and modifications in their buildings. Most
of the time, they invite architects who are also members of their congregations. As such, a good strategy is to
associate himself with these kinds of civic organizations.

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Assessment
Activity 9: Graded Quiz
Task:
5. The instructor is tasked to craft a quiz based on the previously discussed lessons.
6. The quiz should be issued through Canvas or Face-to-face.
7. The quiz should be from 20 to 40 points.
8. Observe the protocol and policies in issuing a quiz.

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ARCH 523 : Business Management and Application for Architecture 2

Week 13 : Topic 7 - Skills and Vital for a Successful Architect-Entrepreneur


 Financial Literacy
 Managing an Office or a Business
 Personal Skills of an Architect
Objectives :
1. To identify what other services an architect can provide outside of the Standards of Professional
Practice;
2. To determine gainful special services the architect may provide or market to clients.

Topic 7 Skills Vital for a Successful Architect-Entrepreneur


During our high school days when we are choosing our career paths, we all have something in common why we
ended up in the design school. A bunch of us have skills in drawing and sketching. Half of us could be skilled in
math and sciences. A handful have knowledge in language and communications, and maybe a few have been born
business-minded. To be a good architect, according to local survey conducted in the country, the most-needed skills
are enumerated in the descending order; (a), Having Design Skills and Creativity (b), Engineering and Math
Abilities. (c), Understanding of Building Codes and Laws (d), Business Acumen, and (e.), Communication Skills.
Skills in business is only the fourth. That could be true decades ago. Architecture practice extends much beyond
just creative spatial solutions. As an architect progresses in professional practice over the years, designing occupies
only a fraction of the work agenda. Young architects are unaware of the practical challenges that come into play
before design even commences and those snags that erupt post completion and handover. To be a successful
architect or as an architect entrepreneur, young architects must posses these important skills; Financial Literacy,
Office or Business management Skills, and personal Skills

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?

Understanding the difference between profitability and cash flow


First things first – profit and cash are different. Profit is the practice’s earnings (revenue) minus the
expenses (which are the costs that the business incurs to generate the revenue). Profit is, simply put, ‘a theory’ –
because you can’t spend it. On the other hand, cash is the money the practice has in its bank account. This is real
and can be spent.

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

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a payment, or the creditors that haven’t been paid yet – all of these situations will affect the profit and cash position
differently.

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).

The amount of money businesses should have access to in the bank


The amount of money needed in the bank account will often depend on the risk profile and the life stage of
the practice. Most start-ups will routinely have to add additional funds, whereas established businesses may retain
years’ worth of unpaid profits ‘in case of a rainy day’. Or, if they are in expansion mode, the business could even
be tapping into an overdraft facility.

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.

The difference between income statements and balance sheets


An income statement or profit and loss statement are fundamental to understanding and assessing the
performance of your practice. This keeps track of the income (fees) and expenses (the costs that your practice incurs
to generate those fees). The difference between the two is the profit, provided that the fees are more than the costs;
otherwise, this is a loss. Just being aware of this simple calculation can help every team member to benefit the
practice.

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.

Knowing what the firm’s profit margin is and where it should be


Profit divided by fees is referred to as the profit margin. And a well-run practice will have a profit margin
above 20%. In professional services a significant portion of the expenses are salaries – if they are less than 50% of
the total fees, then a profit margin of 20% should be achievable.

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.

Having budgets and forecasts in place


A budget sets the tone for the year ahead and encapsulates the strategy for the practice in numbers. In
setting a budget, a practice is putting a benchmark in place of the expected work.
Budgets should be set annually and then reviewed monthly – typically at the start of the new financial year.
This is essential for forward forecasting and where you think the practice will be in 12 months.
Some of the considerations when setting a budget should be:
 Work generated
 Work in hand
 Number of people
 Cost of people
 Cost of overheads
 Current opportunities

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Even if you are not a practice leader, it is still important to understand the effect you have on budgets.
A forecast is derived from reviewing the budget monthly and having a clear understanding of where the
practice is now and where it is heading – this is very important right now. This should be updated as new information
comes to hand. Rather than alter the budget, we capture this in a forecast.
Reviewing budget variances
A budget variance is a difference between a budgeted amount – revenue and expenses – and the actual
amount. The budget variance is favorable when the actual revenue is higher than the budget or when the actual
expense is less than the budget.

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.

Knowing what financial information to share with your leadership team


While every business is different, it is fundamental for the team to have access to the information they
require to excel in their role. This means different things to different practices – some will share all financial
information and others limited. Leaders will share what they feel comfortable with, while ensuring the necessary
information is made available to the team to drive the practice forward and ensure good decision making. There is
also an opportunity for the business to mentor its leaders and support them to make informed business decisions.

Setting and reviewing meaningful Key Performance Indicators (KPIs)


How can you ensure everyone is doing their part to help the practice succeed? We recommend that every
practice sets and reviews meaningful KPIs every month. What gets measured can be managed and can grow
exponentially.
Some KPIs the practice may want to consider include:
 Profit margin
 Debtor days
 Fees per person
 Costs per person
 Work generated
 Staff utilization

Working with an accountant to optimize performance


It is recommended that practices either work with an external accountant monthly or hire a CFO or Head
of Finance internally.

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.

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Becoming financially literate
All architects need to understand how the finances affect the business, with the level of understanding
required dependent on their level within the practice.

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.

Managing an Office or a Business


Managing an office is a challenging task. The role of the architect involves more than technical expertise.
As future architects, you should be aware of the challenges and the many demands that are placed upon the you
from an organizational perspective. Leadership, Business strategist, and equipped with a skill in navigating the
troublesome political waters that architects find themselves in, are the foremost qualities a successful business
manager should possess.

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.

Political Dimension of Architecture


All architecture has a political dimension, in the sense that it expresses a set of values. The architectural
object performs politically, through the situations and activities it encourages and the ones it prohibits. Architecture
has the great potential of taking on complex matters and starting a debate, it proposes scenarios, expressing solutions
to pressing issues. Given the important role of the profession in shaping the built environment and urban life, some
architects double their efforts and not only advocate for change, but actively get involved in jumpstarting the social
progress through activism.
There is an underlying theoretical structure between the spheres of politics and architectural practice. The
contingent relationships between them are ideology, function, process, and design. In each of these contingencies,
there are middle-range theoretical dimensions that relate more directly to the architect's practice world. In

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architecture practice and the construction industry, it is common that there in influence, compromise, agreement,
and disputes – this is the sphere where architects must be well-trained

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?

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ARCH 523 : Business Management and Application for Architecture 2

Week 14 : Topic 7 - Skills and Vital for a Successful Architect-Entrepreneur


 Personal Skills of an Architect
Objectives :
1. To identify what other services an architect can provide outside of the Standards of
Professional Practice;
2. To determine gainful special services the architect may provide or market to clients.
Personal Skills of an Architect
Architects tend to be predominantly artistic individuals, meaning that they are creative and original and
work well in a setting that allows for self-expression. They also tend to be investigative, which means that they are
quite inquisitive and curious people that often like to spend time alone with their thoughts. In a survey, Architects
score highly on openness, which means they are usually curious, imaginative, and value variety. They also tend to
be high on the measure of social responsibility, indicating that they desire fair outcomes and have a general concern
for others.
Other than these qualities, the essential traits of a successful architect are as follows:

Architect’s must be passionate


Being passionate about what project you are working on is important in any field, but especially
architecture. This industry is a mix of creative and mathematical, which means it can be quite difficult at times.
Being passionate about what you are doing can really help you get through this struggle and see results.

An Architect is easy going but not relaxed


In a field of work where designs can change and budget influences are key fundamentals, approaching a
project with a calm and rational attitude is important. Being easy going is a great quality to have as an architect,
because the nature of your work means that you will encounter stressful situations. The ability to take criticisms
ensures that you stay focused on the project and see it to completion.

Architects always exude confidence


Soon you will encounter clients or colleagues who may not like your designs and who will criticize your
work. In any job that involves personal preference and taste, you will be able to appeal to most, but not everyone.
It’s essential that you do not let criticisms and one person’s opinion of your work negatively affect you or get you
down. Believe in yourself and the quality of work that you produce. Always portray your confidence in the way you
work and communicate to facilitate interaction with clients and your project will end on a positive note.

An architect adapts like a turtle


Architects need to be ready to adapt their designs and workload when faced with unexpected issues or
situations. All plans and projects are likely to change at any minute and at any stage, which means that the most
successful architects have the ability to adapt to their changing environment quickly and efficiently. They ensure
that any and all problems encountered are solved and the project can proceed.

Creativity creeps over an architect’s body


In the architecture industry, being creative and possessing the ability to look at things differently will go a
long way in helping you get noticed and stand out from the crowd. Do not be afraid to challenge traditional values
and present an alternative.

Architects play as a team


You will need to work well with your teammates and have the ability to communicate clearly and
succinctly. In many creative industries, teamwork is vital for creating a well-rounded product or idea. Architecture
is no exception to this, so working well in a team is very beneficial.

Leadership qualities is essential for an architect


As mentioned previously in this chapter, once you have acquired the necessary experience, you will have
the opportunity to lead your very own team on a project. Being a leader can be difficult as on top of your own

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workload, you will need to ensure that everyone else stays on track to prevent any delays. The communication and
team work skills that you have developed in your early days as an architect will certainly help.

Organization is a vital quality


It does not matter what stage of your architecture career you are at; it is vital that you stay organized. There
will be lots of things on your to-do list and this will get even longer the higher up the ladder you go. If you are not
a naturally organized person, it is time to start cultivating that habit now. Invest in a notebook or download an app
to help keep all the things that you need to do in order. Be consistent and it will turn into a natural habit before you
know it.

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.

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ARCH 523 : Business Management and Application for Architecture 2

Week 15 : PART 4 ARCHITECTS SOFTWARE AND APPLICATIONS

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.

BIMx (legacy) Possessing a unique technology that integrates 2D and 3D


building project navigation, this app allows architects to use
Graphisoft files on any device and make measurement
adjustments on-site. The free application gives you all the
tools to explore the Hyper-model - both the 3D model and
the attached 2D documentation.

SketchUp A 3D modeling program, SketchUp is utilized in many


different fields, such as engineering, interior and landscape
design, film and video game creation, and architecture. It is
renowned for having an easy-to-use interface that makes it
possible for users to create, edit, and share 3D models.

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V-Ray V-Ray is not a standalone design software. It is actually a
plugin. You can use it with ArchiCAD and SketchUp. Its
purpose is to create realistic rendering. This allows you to
show off your 3D models as they would look in the real
world.

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.

Designers across many industries use V-Ray in their work.


Beyond architecture, it has proven ideal for video game
design and CGI rendering for film and TV. Coming back to
architecture, V-Ray is all about placing clients in a visual
space. It helps them see what your designs will look like
once they’re built. Further, designers benefit from an
extensive resource library to help them take their base
designs to another level.

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.

Beyond that, Rhino offers all of the tools a designer needs to


edit designs. Beyond the base models, you can create
animations and professional renders. It is also one of the
most flexible design packages around. Designers can
translate solid objects and surfaces into the software. It even
allows you to work with point clouds and polygon meshes.
Because of this, the software is usually favoured by those
who don’t want to spend a lot of time learning about the
complexities of computer aided design (CAD).

There’s more. People with programming expertise can


adjust the Rhino workspace. Using RhinoScript, they can
create their own plugins. Those who can’t program also have
access to a database of pre-built plugins. Further, you can
export Rhino designs into the real world using 3D printers
or laser cutting. This separates Rhino from other packages
that don’t offer a manufacturing aspect.

Revit Architecture The building information modelling (BIM) concept is key in


modern architecture. It relates to the development of
sustainable buildings. In a world where environmental
awareness is at an all-time high, sustainability is high on the
agenda for many clients.

That’s where Revit Architecture comes in. The software


focuses on providing the tools for effective BIM. Its key
feature is automation. Changes you make to your model get
recorded throughout the project. The software coordinates
these changes to ensure you create complete projects that

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consider BIM at every turn. As such, if you make a change
in the 3D view, those changes reflect across the plan,
elevation and section views. The same goes for changes you
make in any other view.

The software offers automation elsewhere. For example, it


allows you to create libraries of parametric objects. You can
access these objects across all designs to quickly implement
common models into your project.

Revit Architecture also allows for greater teamwork. You


can schedule separate project elements to ensure they get
completed on time. The software also allows you to pull in
team members from multiple disciplines into the project. All
of this while keeping the core concepts of BIM at the
forefront.

Grasshopper Grasshopper allows architects to use parametric design to


improve the efficiency of their workflows. So what does this
mean for you? Well, Grasshopper has several tools that help
you automate menial tasks. Consider the software’s use of
variables. In most design software, you will need to copy and
paste basic elements, such as lines, if you wish to use them
again. Some software use matrixes to reduce the time this
tasks take. Even then, it is often annoying. Grasshopper’s
use of variables makes such actions easier. You only need to
enter a number into your variable to create the desired
number of elements.

Better yet, you can create modules centred on these common


tasks. Over time, Grasshopper allows the designer to create
a full library of previously used ideas and elements. You can
access these modules with the click of a mouse.

Grasshopper also benefits from being an open source


software. It has a community around it that constantly
develops new plugins. Coupled with that, Grasshopper links
closely with Rhino 3D. This integration eliminates the need
to understand coding when using Rhino 3D.

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.

Dynamo is well regarded for having one of the best geometry


engines of any design package. This makes working on
complex elements easier. Further, the software slots well
into the BIM workflow. Dynamo allows you to make quick
changes to your designs. Further, it allows you to customize
your designs on the fly. This saves a lot of time that you
would otherwise spend on editing designs and saving them
as separate files.

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The software also works with a large number of file types.
As such, you can use it as a support tool for a range of other
software. One of the most common uses of this is exporting
Revit design information into Microsoft Excel files.

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.

This cloud-based structure has other advantages. You can


use Fusion 360 on many devices. For example, you could
create a design via a desktop computer and then show it to
others away from the office using a smartphone or tablet
computer. It’s powerful too. Fusion 360 is one of the few
tools that will help you create realistic renders of your
designs. This proves useful when making presentations or
helping clients visualize your work.

Fusion 360 is also one of the most well-supported design


software. You can expect to see updates every two months
or so. As such, new features get introduced into the software
on an almost constant basis.

Enscape Enscape makes it easy for architects and designers to quickly


and easily create stunning 3D renders without the need for
extensive training or technical knowledge. The simplified
interface allows users to focus on their designs rather than
getting bogged down in the technical details of the rendering
process.

ArchiCAD Many point to ArchiCAD as offering everything a designer


would need. It proves useful in creating both 2D and 3D
models. Further, you can integrate several other software
packages into it. A common favourite is pulling V-Ray into
ArchiCAD. This allows designers to create photorealistic
models. Even those who don’t integrate V-Ray into
ArchiCAD can create realistic models. The new versions of
ArchiCAD feature CineRender for creating lifelike models.

ArchiCAD’s main feature is its user-friendly nature. You


can learn the basics of the software with minimal effort. This
has made it a favourite with students and those just starting
out in architecture. It offers a time-effective way to create
detailed models. As such, it is great for projects where time
is a factor.

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Beyond that, the software offers several tools for automating
complicated processes. For example, it has an inbuilt library
of stair and rail designs. Better yet, you can match these
resources to the building you have created. Many architects
agree that designing staircases can prove difficult in large
projects. ArchiCAD removes much of this difficulty through
automation.

THE ARTISTS

Maya There is some disagreement about how useful Maya is when


it comes to architecture. Some argue that it is too general a
design software. They note that it doesn’t have many of the
tools that more dedicated pieces of software benefit from.
However, this lack of constraints is often useful to designers.

Maya proves perfect for exploring concepts that stretch


further than what other types of software allow. It offers you
more freedom in your work. This fosters innovation in
design. Many use Maya to come up with new ideas before
transferring their Maya models into other software. It is this
freedom that has led to Maya gaining acceptance in the
architectural sector. You can even download additional
toolsets specific to the industry.

Many who are new to 3D modelling also use Maya as a


teaching tool. It allows them to get to grips with the core
concepts of creating 3D models without dealing with the
constraints of specialised software. Its tutorials prove very
useful. Further, Maya has a large community around it. This
makes it easier for designers to get help if they start
struggling with their work.

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.

Morpholio Trace Morpholio Trace gives the option to add comments on


images, helping with sharing initial conceptual notions. The
app comes in handy during the first phases of the designs as
it allows you to scribble, draw, and express artistic thoughts,
especially with its augmented reality option.

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Procreate Procreate is a digital illustration app designed for artists,
illustrators, and designers. Primarily used on iPads, it allows
for a wide range of brushes, layers, and advanced tools. It
also boasts an extensive brush library and hero features like
blending modes, time-lapse recording, and layer effects.

Concepts Concepts serve as a versatile vector-based sketchbook


enabling the transformation of concepts into tangible
designs. It revolutionizes the ideation journey by providing
a secure and adaptable workspace for refining ideas,
structuring thoughts, and experimenting with various
designs.
Adobe Products (Photoshop, CC, Illustrator, Its flagship products include Adobe Photoshop image
Lightroom, After Effects, Premiere) editing software; Adobe Illustrator vector-based illustration
software; Adobe Acrobat Reader and the Portable Document
Format (PDF); and a host of tools primarily for audio-visual
content creation, editing and publishing.

THE CONSTRUCTION SITE


Roomscan Developed by Locometric, RoomScan Pro can create an
entire floor plan using any phone. Easy to use, the process
only requires the user to tap his screen and highlight walls
while moving across the room, and the app generates the
adequate floor plan seamlessly. In addition, the application
can measure and draw stairs, facades, green spaces, etc.
While the free version handles the basics pretty well, one
will probably find it very limiting, and it would be worth it
to splurge on RoomScan Pro.

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Sun Seeker This virtual solar compass helps with on-site analysis as it
identifies the sun's position and path and illustrates visually
the amount of sunlight received by the building through an
interactive 3D view. Sunseeker is not only intended for
architects but also has a wide range of users.

MagicPlan MagicPlan uses your mobile's camera to measure spaces and


create almost accurate plans that can be exported as PDF,
DXF, or JPG. More accessible than other applications, you
only have to stand still, preferably in the center, and let your
device scan the room. The free version gets access to two
projects, including all features.

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.

ARKi An app for instant Augmented Reality experiences. Users


can view, share, and communicate design with ease. ARki
essential toolkit is free to use, with various features such as
annotating, creating animations and sequences, and playing
animations. ARki supports FBX files exported from most 3d
software, including 3dsmax, Maya, Blender, Microstation,
Sketchup, Archicad, Rhino, Cinema4D, and Revit.

Midjourney Midjourney Ai is an artificial intelligence program and


service developed and operated by an independent research
lab based in San Francisco. It generates images based on
written descriptions, often referred to as "prompts," similar
to technology seen in OpenAI's DALL-E and Stable
Diffusion.

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https://www.archdaily.com/896021/the-top-apps-for-architects

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%)

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ARCH 523 : Business Management and Application for Architecture 2

Week 16 : PART 5. ARCHITECTURAL OFFICE


A group work: Planning and Conceptualization of office
 Objectives
 Innovations
 Organizational Chart
 Site selection of Office
 Services offered
 Financial Plan
 Business Plan
 Designation of position, Job description
Group Presentation
Objectives :
1. To design and make their own architectural office.

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%)

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