The Business of Architecture and the Human Element

There is more to an architectural practice than just aesthetics and design. Architecture is a profession in which interactions with both clients and the broader community play an integral role. In addition to building meaningful connections, architects, like many other creatives, must also manage a business to succeed. A thriving business doesn’t only involve designing beautiful buildings; it includes a business aspect that often gets overshadowed by the creative side. Nevertheless, a successful business frequently adheres to principles of success that are common across all industries. The challenge in this industry is striking a balance between the business side and the human aspect.

A Multi-Use development in George Town, Tasmania. The proposal comprises of serviced apartments with 28 units and a retail space, coffee shop, a gym for the convenience of the guests as well as a rooftop bar and a roof top terrace. The 13 modern townhouses are a welcome addition to the residential scene in George Town.

Contacts and Contracts

The first contact is the most important, and clear communication is crucial, as it will help manage expectations in the long run.  Obtaining a thorough design brief is the first step to outlining the works. The more information the architect gathers from the client, the easier it becomes to anticipate the workload that lies ahead. A contract that clearly states inclusions and exclusions will protect both the client and the architect. This will minimise potential disputes and clarify any expectations.

Fees

A straightforward design brief helps with pricing the job. Allowing sufficient fees is essential for the success and longevity of a business. Nobody wants to cut corners, and the danger with cutthroat fees is that there is not enough time allocated for an optimal outcome.  An accurate cost estimate is crucial. Architects sell expertise and creativity, but ultimately, they sell time. Allowing enough fees for site difficulties and unexpected hurdles along the way will ease the process.

A modern, multi-use building showcasing a sleek architectural design, blending residential and commercial spaces seamlessly within an urban setting.

Budgeting and Cash Flow

Budgeting, managing your cash flow, and estimating costs are crucial parts of successfully running a business.  Architects are not selling milk, as it is harder to anticipate demand for housing, and the market has its ebbs and flows. An inconsistent cash flow poses a significant risk to any business, particularly for architects, due to their project timelines. Many projects are put on hold while waiting for the allocation of funds or permits, often facing this issue. Payment terms should be set to manage cash flow, and the stability of the business.

Managing the Workforce

A successful architectural practice relies heavily on its staff. The achievement of any architectural firm can be credited to its personnel and the management that brings out their best. Finding talent and more importantly, supporting the growth of these skilled professionals comes with experience. While hiring top talent is essential, cultivating a positive work culture requires strong leadership skills, including listening to staff needs and keeping them motivated. A reputable practice compensates its employees fairly and provides regular reviews along with pay incentives. As in most things in life, communication is key, and a workplace with open, two-way conversation enhances creativity as well as productivity when everyone’s potential and strengths are considered.

Largest Single Development in Georgetown Tasmania Proudly Designed by Architeria Architects

Relationships Matter

The more open the communication, the stronger the connection. Clients who feel involved in the design process and whose concerns and questions are patiently addressed feel more guided and comfortable on the journey the architect and client undertake together. Designing a home is one of the most significant tasks, and the architect is deeply involved in every decision that will affect the lives of everyone living in that home. Building relationships and fully engaging with the client is crucial for a project's success.

Communication, communication, communication

Over the years we have operated the practice at Architeria Architects, we have never had a client who stated they received too much information or too many updates. Regular updates throughout the process keep clients engaged and provide them with peace of mind. Sometimes, when the wait feels long between submitting an application and hearing any news from the Council, staying in touch can be accomplished through a simple email or text message or even by including the client in newsletters or blog posts.

Modern residential complex designed by Architeria Architects, showcasing stylish townhouses with balconies and lush greenery along a beach street.

Feedback

Evaluating each completed project provides valuable insights for future projects. Architecture is ever-evolving, and as life progresses, new ideas will emerge. The feedback the architect receives from the client will help in improving their skills and often assist in finding new and improved ways of communication and processes.

Network and referrals

Although it is crucial to have a good online presence, as this is how most new clients will find you, nothing can replace word of mouth. An architectural practice with good relationships with its clients will generate a significant portion of its new clients through referrals. Only satisfied clients will refer and return. The referral rate speaks volumes about the success of the architect-client relationship.

Ultimately, it is all about transparency, effective communication, and thorough planning. The creative and design aspects are hopefully a given. Examine what you currently have on hand and consider ways to improve it. The success of an architectural business relies on collaboration between you and your client, the way you involve and support your peers, and the strategies you establish to ensure you stay on track with both time and budget. Reviewing, learning from the past, and implementing it in your future. While you balance it all, remember to enjoy the journey.

Mel Gawi and the team at Architeria Architects continually refine their skills in fostering valuable relationships with clients. Would you like to join Architeria’s many happy clients or share your thoughts with us? Call us 03 9894 5805. We will have more than a moment to spare.

Kate Gawi

Creative Director and Interior Designer

Architeria Architects