you can make or lose money in any business. It is how you run the business that makes the difference. Yes, there are a few contractors who make 30% profit margins. There are many that go bankrupt and go out of business.
Guess what, there are also architectural firms that are well run and make good money. The problem is architects who run a buiness rarely think of it as a business. Most shoot themselves in the foot through a series of bad decisions, and mistakes made in running the business.
There are huge amounts of information available for an architect who wants to pay attention ot the bottom line. How many of those architects who complain they are not making money have actually bothered to "bench mark" their business and see how they rate on overhead expenses, chargebility ratios, etc? If they actually spent some time looking at their numbers, perhaps they would make some changes in the way they worked to increase their profits. Do they actuallly look at each project and track profits on the projects to see if they are making money?
Or do they repeat the same mistake over and over again, and work for a fee that is too low, or work ineffeciently and burn through a decent fee?
So far every one of the successful firms I've come across were at some point -- whether it was 10 years ago or 100 -- founded by a sole proprietor who had access to his own source of liquid assets and buffeted his firm, at least at the beginning, with projects and buildings built on this cash.
oh man, architects are the only hard working people ever and we do so much work than everyone else and its just a really really hard life and no pay boohoo
most lucrative business ever: selling sorority paraphernalia. there doesn't seem to be an end to the amount of items those girls will buy as long as it has Ω∆∑ on it.
The most and least profitable businesses to start
Developers sell buildings. I've always wondered why architects don't develop.
you can make or lose money in any business. It is how you run the business that makes the difference. Yes, there are a few contractors who make 30% profit margins. There are many that go bankrupt and go out of business.
Guess what, there are also architectural firms that are well run and make good money. The problem is architects who run a buiness rarely think of it as a business. Most shoot themselves in the foot through a series of bad decisions, and mistakes made in running the business.
There are huge amounts of information available for an architect who wants to pay attention ot the bottom line. How many of those architects who complain they are not making money have actually bothered to "bench mark" their business and see how they rate on overhead expenses, chargebility ratios, etc? If they actually spent some time looking at their numbers, perhaps they would make some changes in the way they worked to increase their profits. Do they actuallly look at each project and track profits on the projects to see if they are making money?
Or do they repeat the same mistake over and over again, and work for a fee that is too low, or work ineffeciently and burn through a decent fee?
So far every one of the successful firms I've come across were at some point -- whether it was 10 years ago or 100 -- founded by a sole proprietor who had access to his own source of liquid assets and buffeted his firm, at least at the beginning, with projects and buildings built on this cash.
oh man, architects are the only hard working people ever and we do so much work than everyone else and its just a really really hard life and no pay boohoo
most lucrative business ever: selling sorority paraphernalia. there doesn't seem to be an end to the amount of items those girls will buy as long as it has Ω∆∑ on it.
< / snarky rant>
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