The first step when setting up your own architecture business is to write a business plan. The business plan is your company’s road map, and it plays a crucial role in helping you get a clear picture of what you hope to do at present and in the future with the firm.
At the same time, the business plan is also a detailed intro of your business to outsiders. Investors can use this to get an idea of where your business might go, how well you are prepared for it, and whether this is a viable venture for them to invest in.
If you are new to this, you may be unsure about how to go about making one. Here are the basics.
The Big Five Of Your Business Plan
The main goal of your business plan is to clearly outline five main aspects- Vision, Mission, Strategy, Goal, and Plan.
This tells you what you hope to achieve in your architect’s firm. Where would you like to see it and when? Do you see yourself as the most preferred office designer in your city? Do you want to have a most coveted architect’s award on your shelf? Do you wish to achieve a certain turnover by the end of two years?
Write down your vision for the firm. Remember that this vision will change with time. For example, once you have achieved your desired turnover, you will have new visions to fulfill.
What is your purpose behind starting this business? This might seem to be the same as your vision, but it isn’t quite so. Your vision is a milestone you hope to reach, while your mission is a more execution-oriented aspect. What is it that you hope/ expect to do in this field as you move towards your goal?
How exactly do you hope to achieve the previous two? What is the methodology you will have in place to get you to your vision? This could be a detailed strategy or a rough idea that you expand upon as you get your feet wet in your niche and understand which strategies work and which do not.
These are the interim goals or milestones that you mark out on the road to your vision. For example, if you have a turnover target at the end of two years, you break it down into smaller goals with specific targets to be achieved every six months. Or for example, you may have a goal to garner five new clients before each year ends.
Your plan outlines what you will do in order to achieve these goals over the short term and the vision over the long term. This part also details who will achieve what in your firm, which key responsibilities will be taken on by which of your key team members. The plan section also outlines specific tasks that you wish to achieve in order to reach your goals.
Reviewing The Business Plan
Once you have drawn up the business plan, that’s not the end of it all. You have to review and reassess it from time to time. Ideally, you should be doing this every six months.
If your business is starting up, this regular review will help you tweak the plan in line with how the business has expanded so far. A more established business may do a business plan review once a year.
Make note that as the economic conditions shift, your business plan has to evolve as well. That is one good way to ensure your business is protected from market risks by changing your strategy in line with the prevailing conditions. That brings you to the other important thing to do right from the initial stages of your business growth- addressing risks.
Protecting Your Business From Risks
To protect your business from risks, you plan your moves, follow a defined strategy, and avoid making ill-thought-out decisions. But despite your best efforts, there may arise circumstances wherein your business suffers a financial loss that is serious enough to shake its very foundations.
For example, a fire breaks out in your office, destroying much of your assets. Or a tornado rages through the city, leaving your office space in shambles. When such events occur, your insurance plans kicks in and protects your business from financial ruin.
However, for a business like yours, this is not the only risk that needs protecting against. You also have to cover your professional liability-related risks. Then you need to consider professional liability insurance cover for architects. It covers your architect’s firm in the event a dissatisfied client files a lawsuit against you for negligence, delays, or wrong advice.
In conclusion, if a business plan is one of the very first steps you take when you start your business, getting the right insurance coverage is no less important. Both of these help you protect your business from different risks and thus ensure that you can achieve your goals with no disruptions.
Many of us are now turning towards doing their own business. But for doing business, trust in your business model and positive intent is very necessary. Not every day is the same in business, you need to understand this and carry the same intent every day to grow your business. To enhance your business, consistent improvements are required to make it successful. You may have seen many people are successful with just an idea. What makes them so much successful? You know, winners don’t do different things, but they do things differently. There is a saying that a small change can also make a big difference. So let us see some essential and useful tips to improve your business.