Architecture Business Plan Template
If you want to start an Architecture firm or expand your current Architecture business, you need a business plan.
The following Architecture business plan template gives you the key elements to include in a winning Architecture business plan.
Architecture Business Plan Example
Below is an architecture business plan example with each of the key sections to help you write a architecture business plan for your own company.
I. Executive Summary
Business Overview
[Company Name], located in [insert location here], is a local newly established architectural firm. The company provides architecture services to the local metropolitan area and its surrounding communities. The company utilizes innovative design techniques with traditional architectural principles to provide innovative solutions to its clients.
[Company name] was founded by [Founder’s Name], a local architect that is committed to his clients and their needs. [Founder] graduated from architecture school five years ago and has spent the last five years working as a junior architect at a large architecture firm. [Founder’s] goal was to always own and operate his own architecture firm. Through his education and years spent learning from a large company, [Founder] is ready to venture out on his own and build his own architecture firm. [Founder] has been able to attain a handful of loyal clients who will follow him to his newly established architecture firm. By marketing to local businesses and recruiting a team of junior architects, [Company Name] will be a profitable self-sustaining architecture firm.
Products Served
[Company Name] will provide a variety of architecture services. The services include architectural and engineering design, pre-design phase, structural design, and construction administration.
Pricing for all services will vary depending on the complexity and size of the project.
Customer Focus
[Company Name] will primarily serve the residents within a 1 to 50-mile radius of our location. The demographics of these residents are as follows:
- 2,456,321 residents
- Average income of $38,500
- 49.33% married
- 36% in Mgt./Professional occupations
- Median age: 36 years
Of the above-mentioned demographic profile, there is about 20 million square feet of new development in the planning and design phase. The city is rapidly expanding and there are not enough architects in the metropolitan area to meet the need.
Management Team
[Company Name] is led by [Founder’s Name], a local architect who has worked for a large architecture firm in [location] for five years. [Founder] attained his architecture degree from the [Location] School of Architecture five years ago and was able to secure a position as a junior architect straight out of architecture school. [Founder] quickly earned the position of Project Lead on a number of large industrial projects and was able to earn the trust of local expanding businesses. [Founder] has the proper knowledge and experience to own, manage, and operate his own architecture company.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The company will be utilizing modern methods of architecture coupled with innovative architecture design elements.
- The company will provide a wide range of architecture services that will be able to accommodate most companies’ needs.
- The owner has been awarded with the most prestigious recognition from the local architectural design magazine.
- The pricing model is competitive with other architecture companies.
- [Company Name] is fully licensed, bonded, and insured.
Financial Highlights
[Company Name] is seeking a total funding of $500,000 of debt capital to open its architecture company.
- Office design/build-out: $100,000
- Software and supplies: $200,000
- Brand development and marketing: $100,000
- Working capital: $100,000 to pay for licensing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in [insert location here] is a local newly established architectural firm. The company provides architecture services to the local metropolitan area and its surrounding communities. There are approximately over 2 million square feet of construction projects in the planning phases in the city. With an ever-expanding community, there is currently a shortage of qualified architects to manage all the new projects. [Company Name] will be able to become a competitor in the local architecture industry due to their ability to utilize innovative design techniques with traditional architectural principles to provide innovative solutions to its clients. [Company Name] will specialize in buildings in the healthcare, education, industrial, office, and retail industries. As a full-service architecture firm, [Company Name] will be able to tailor each of its services to meet the client’s functional needs and organizational challenges.
[Company Name] was founded by [Founder’s Name], a local architect who has worked at a large architecture firm for five years. As an innovative self-starter, [Founder] has taken what he learned in architecture school and with his creativity and diligence, he was promoted to Project Manager fairly quickly. [Founder] was able to manage a team of junior architects and meet each of their clients’ requests. [Founder] fulfilled a number of projects and has earned the trust from some very large business owners in [location]. [Founder] looks forward to recruiting his own team of architects and teach them his modern techniques while making sure each project implements safety and structural design. [Founder’s] priority is to manage each project like it was one of his own and become the leading architecture firm in the city.
[Founder] has saved for a down payment on a SBA loan from a local bank. He has also located a small office space in a downtown office building to house the staff and operations. It includes seven offices, a reception and waiting area, a filing room, and a small conference room. [Founder] will have three of his large clients follow him to his new business and through marketing and networking, he will be able to secure three more local business clients.
[Company Name]’s History
Once his market analysis was complete, [Founder’s Name] began surveying the local vacant office space and decided on an available office in the highly desirable downtown business district. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].
Once the lease is acquired for the office space, light construction and design can begin to build-out the company’s headquarters and small office.
Since incorporation, the Company has achieved the following milestones:
- Located a vacant office in a downtown office building that is near the client base
- Developed the company’s name, logo, and website located at [website]
- Hired a general contractor for the build-out of the office space
- Determined software and necessary supplies
- Attained Letters of Intent from large business clients
- Began recruiting key employees that have the necessary architectural training
[Company Name]’s Services
Below are [Company Name]’s service offerings:
- Architectural and engineering design
- Pre-design phase
- Structural design
- Construction administration
III. Industry Analysis
The Architecture Industry has increased at an annualized rate of 2.0% to $52 billion, over the past five years. The industry’s primary driver is demand from the construction market. Specifically, fluctuations in the value of nonresidential construction have contributed to robust growth during the majority of the period as well as significant declines amid the coronavirus pandemic. Low interest rates, rising per capita disposable income and low mortgage rates have also encouraged individuals and businesses to invest in new structures that require architectural services.
Over the next five years, further economic growth will lead to growth in nonresidential construction projects. Access to credit, per capita disposable income and corporate profit are all projected to expand during the outlook period, supporting steady demand for architectural services.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [company location] and its surrounding areas.
The community of [company location] is a very diverse community that includes over 2 million residents. Within the community, there are a number of Fortune 500 company headquarters that require expansion. There are also two large universities with expansion and renovation projects and the local school districts need to build new schools to meet the population growth. In addition, there are very large hospitals that require renovation, expansion, and medical office buildings that need to be updated to meet modern healthcare technology.
Customer Segmentation
The Company will primarily target the following three customer segments:
- Hospitals: There are a number of hospitals and medical office buildings that are in need of renovations or new construction.
- Colleges and Universities: The local school district and universities need to add more campuses and/or schools to meet population growth.
- Industrial Factories: The company will target the owners of large factories who are in need of expansion or relocation.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 30-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
EKZM Architecture
EKZM Architecture is a [location]-based, global architecture innovation firm, led by [insert name]. The firm partners with developers and entrepreneurial clients to maximize the impact and value of their real estate assets. By collaborating with their clients, the firm creates a project vision for development sites, enhancing user experience, and improving balance sheets by leveraging the project throughout the planning process.
Specializing in new developments, EKZM works with the local public utilities and authorities to navigate the planning, zoning, and coding process. The firm works with the client to make sure they locate the right parcel of land to meet their vision and will design a building to meet the land and utility constraints. EKZM will also construction administrate the project to ensure that everything is being built per their design and specifications
EKZM has won numerous awards and accolades for their office buildings in [location].
Lewis Architects
Lewis Architects has been in business for over 37 years. They are known for designing innovative structures and sustainable communities that meet the needs of today’s modern world. Each project they pursue is approached as a unique design challenge and the firm works with the client to deliver a customized solution. Lewis Architects specializes in PK – 12 grade schools, commercial buildings, interior architecture, automotive, and higher education buildings.
Lewis Architects utilizes a collaborative people-based approach. From project start, the firm establishes a structured and highly collaborative process that ensures they understand the priorities of each client. Lewis also works closely with the local architecture school and offers internships and career development to its students.
Blue Marble Architecture
Blue Marble creates modern, practical, sustainable architecture. The firm is committed to thoughtful design, thorough construction document delivery, and insightful project leadership and management for each project. Blue Marble focuses on educational projects and 21st century learning environments (K -12 and higher education), governmental and civic, commercial, structural, healthcare, and spiritual facilities. The team at Blue Marble has been able to manage multiple clients and projects by paying close attention to detail, analyzing complex situations, and following through on each aspect of the logistics of the project.
The firm includes a company of numerous diverse and uniquely experienced professionals. Each person brings a set of skills and experience to be able to deliver a broad range of perspectives. Blue Marble’s backgrounds range from architecture, interior design, construction, project management, facilities management, construction management, and structural engineering. In addition, the firm has personnel that specialize in graphic design, web design, photography, and marketing.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. Those advantages include:
- Technology: [Company Name]’s will be able to provide the latest innovative techniques in architectural design.
- Price: [Company Name] is able to offer their services at the best and most competitive price.
- Comprehensive Project Management: [Company Name] will be the project lead throughout the entire design and construction phase. The company’s organizational effectiveness and focused efficiency will ensure the project gets completed on time and within budget.
- Highly Trained and Experienced Staff: [Company Name] will be led by [Founder] and a team of highly effective architects that is able to offer unique, creative solutions to meet the client’s needs.
VI. Marketing Plan
[Company Name] seeks to position itself as a highly qualified architecture firm in the industry. Clients can expect to receive creative and innovative architectural services from qualified and trained architects in [location].
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
-
Latest architectural technology in the industry
Effective project management
Highly trained and capable staff of architects
Comprehensive set of architectural and design services
Affordable pricing
Promotions Strategy
[Company Name] expects its target market to be businesses and public institutions within a 10-50-mile radius of its location. [The Company’s] promotion strategy to reach these businesses includes:
Social Media
[Company Name] will invest heavily in a social media advertising campaign. The company will hire a brand manager to create the company’s social media accounts and invest in ads on all social media accounts. It will use targeted marketing to appeal to the target demographics.
Major Publications
We will also invest in advertising in selected larger publications until we have achieved significant brand awareness. We will advertise in industry publications such as magazines, journals, newspapers, newsletters, and brochures.
Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all the services the company will be able to provide. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Sponsorships
[Company Name] will also invest in sponsoring certain nonprofit and community events so that their banners and collateral material are displayed all over the event where numerous clients will potentially be. The company will also purchase a team and attend local golf tournaments.
Networking Events
[Company Name] will attend all networking events related to business, real estate development, healthcare, and education. It will become a member of the community’s chamber of commerce and will be part of the area associations related to architecture, engineering, or construction.
Collateral Material
[Company Name] will develop numerous collateral material to have on hand to give out to potential clients. It will also ask local businesses for permission to hang or display their collateral material in highly trafficked areas.
Pricing Strategy
[Company Name]’s pricing will be moderate, so clients feel they receive great value when utilizing the company’s architectural services.
VII. Operations Plan
Service & Administrative Roles
- Team of architects
- Project managers
- General and administrative functions including legal/compliance, marketing, bookkeeping, etc.
- Brand management/social media
- IT management
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is owned by [Founder’s Name], a local architect who graduated from the local architectural school five years ago. [Founder] started interning at a large architectural firm during his last year of school and was given a full-time position upon graduating. [Founder] has overseen architectural projects of all sizes and was promoted to Project Manager four years ago. [Founder] was able to manage large teams of junior architects and has overseen the completion of numerous large projects. He specializes in innovative design and technology for industries in the healthcare, educational, warehousing, and civic industries. [Founder] will prioritize utilizing the most innovative and technologically advanced methods in developing and designing each client’s specific needs.
[Founder] will recruit highly skilled and experienced architects to join his team. In addition, he will employ a marketing person that will be responsible for networking with clients, managing social media and website updates, and recruiting new clients to add to the company’s portfolio.
Hiring Plan
[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:
- Junior Architects: 3-4 full-time employees to assist with client project work.
- Project Manager: 1 full-time employee to assist with project oversight and managing junior architects.
- Office staff: 1 employee who will manage the phone calls, scheduling, accounting, clerical, bookkeeping, billing, and any administrative task required.
- Brand manager: 1 full-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from its architectural services. The company will provide a range of architectural services to the business and civic community and its surrounding areas. As the company’s revenues increase, it will look to add additional staff and more complex projects.
The office lease, software, supplies, marketing, and labor expenses will be the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:
- Salaries
- Architectural software
- Marketing
- Business Insurance
- Lease on office space and utilities
- Taxes
Ongoing advertising and SEO expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $500,000 of debt capital to open its architectural firm. The capital will be used for remodeling the office lease for the company headquarters, software, supplies, hiring initial employees, marketing and branding expenses, and working capital.
Specifically, these funds will be used as follows:
- Office design/build-out: $100,000
- Software and supplies: $200,000
- Brand development and marketing: $100,000
- Working capital: $100,000 to pay for licensing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Average Number of Clients | |
|---|---|
| FY 1 | 42 |
| FY 2 | 63 |
| FY 3 | 96 |
| FY 4 | 162 |
| FY 5 | 243 |
| Annual Rent | $36,000.00 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
