Architect business plans are common documents in the industry. They're generally used to help an existing architectural firm -- or a start-up freelance architect -- secure capital to grow their business. They need to perform some basic facts, telling the reader what the market size, service suite/specialties, and past successes are. If you've designed a new building or worked on a project that can be profiled in a synopsis with pictures and diagrams, show this in a "past performance" style section early on in the plan. For the financial piece, your plan should show the intended capital raise and use of funds, flowing through to the following metrics:
• Revenue forecast
• Break-even analysis
• Profit and loss statement
• Cash flow
• Balance sheet
The model serves two purposes: to prove that your architecture firm can offer a compelling return on investment (or a sufficient loan repayment, depending on your funding source) and to show that your business has a strong chance of earning at least industry-average profits within 3 to 5 years. Determining what these averages are will require market research. You should be able to write about the number of architectural companies in your market, their revenues and market share, their core offerings, and so forth. What are the industry trends that impact your business, and what sort of risks do you face, other than competitive pressures? MasterPlans can help do this research for you. Whether you need financial modeling expertise or basic industry research leads, calling MasterPlans is a must. Toll-free: 877-453-2011.
