In my previous blog I talked about Factors to consider while calculating architect's fees. We also talked about the need for 'the seed money'. Today, let's understand how to calculate your need for this seed money or the initial capital. You agree that you will need some money to give a start up boost to your firm. But how much fund is enough?What are the expenses that you should consider? Is there a way to calculate it?
Well, the answer is yes. There are many ways to calculate it. Different types of businesses need different ways of calculating their funding needs. Architectural / Design business is a service-oriented business. You do not need huge capital the way a manufacturing business may need. But, it is important that you calculate your expenses of first three years and make provision for it. This will prevent you from getting any unpleasant surprises !
I have created an easy-to-use template that a standard architectural firm can use. Now, the type of expenses that I have listed are only a few examples. These may vary depending on the country, situation and circumstances you are in. Thus, I encourage you to customize this template taking into account your own conditions and calculate your requirement for start-up funds. This template is designed to give you a guiding light and a reference.
If you wish to view or download this template, please visit:
Calculating fund requirements for starting an architectural firm
Other interesting articles:
Accounting for Architects made easy
E-Book: "Business Planning for Architects"
E-Book: "Marketing for Architects"
The five myths about starting an architectural firm
Opportunities for Architectural Management
What will change the role of an architect by 2025?
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