If you’ve recently set up as the owner of an architecture business, you’ll know what goes into being a success in the industry. But do you know how to make your business profitable? If you’re looking for pointers, read on. Here are some ideas to help you see the figures you’re looking for.
Work on the business
Architecture is the meeting of art and science. It’s where creativity and practicality combine to create beautiful buildings. This is a profession that requires years of study and an imaginative flair. But it also requires a level head and the ability to juggle different concepts and tasks. And if you’re now heading up an architecture business, you’ll have even more of a juggle on your hands.
In order to be successful, you’ll need to set aside your experience as an architect for now while you think like a business owner. You’ll need to create a business plan, with your financial forecasts in place, targets, staffing plans, and any legalities you’ll have to consider.
You’ll also need to think about how you’ll attract talent to your team and have in mind a vision for where you want your company to go.
Get your finances in order
Next, as with any new business, it’s important that you have the finances to back up your business plans. Getting investment in order before you start out is the ideal position to be in as you’ll be well placed to get the essentials, such as computing equipment and studio space, for instance.
Even if you’ve already started operations as a business, having your finances in place is crucial. Work out what you’ll need and make sure you crunch the numbers before you commit. For instance, if you take out a short-term business loan to cover the cost of office furniture and other items, make sure you have the repayment plan in place and that you use the loan to work for your business.
Monitor your KPIs
Keep a close eye on your financial key performance indicators. These metrics measure the strategic financial and operational success of your firm. They are often used to compare firms within the same sector and help you keep track of how you’re performing next to the competition. You can do this with KPI dashboard software which makes it easy to set goals for your KPIs, track them over time, and visualize your performance with dashboards, reports, and alerts.
Run projects on time
You’ll know from your time as an architect that budgeting to the last penny is crucial. As part of your plans, you will have had to keep project budgets in mind when drawing up designs.
Likewise, keeping up with deadlines and expected completion dates is essential if you don’t want to lose out. Your plans can go very wrong if your project overruns and this can cost money. Keeping on time with plans is more likely to help your profit margins.
Understand what drives your profit
Work out where your profit comes from. To do this, create profit drivers that allow you to see how much your projects, people, and clients make for your company.