Much like with all other businesses, profits matter for architecture businesses as well. Focusing on the profits that your business is making can be seen as a prerequisite to running a successful business over the long term. When your business is making profits, you won’t have to accept work that you don’t want to do. You won’t need to worry about your bills, or wonder if you can take a day off.
When there’s no profit, there isn’t any business success. But is there anything that you can do to make your architecture business more profitable? Here are five ways that enable you to do just that.
1. Build Value For Your Business
Your skills and knowledge can enable you to provide great value to your clients. You can help them with selecting better materials, or help them make a decision regarding the design of their building. Anytime you find yourself talking to a client, try to understand what they’re hoping to get from you.
Once you understand what they want from you, it’s time for you to explain to them how you can help them meet their objectives. Consider providing valuable tips to clients as well, such as telling them what the risk factors are.
2. Pricing Your Services
When you meet potential clients, present yourself as an asset to them. Say your client sees you as important to reaching their goals, and they know that you have the right skills and know how. Then, it’s time to present them with your prices.
You shouldn’t be afraid to raise your prices over the years. This applies to your retainership agreements as well. The next time an old or new client asks you for your services, raise your price and see how they react. Not only will you be making more profit this way, but there are also clients who will approach you specifically because you price your services higher.
3. Bill Your Hours
If your business isn’t making any profits, then you’ll have a harder time finding time to focus on your designs. Instead of pouring hours into your passion project, spend your work hours focusing on building profits. You can’t find yourself spending more time than necessary, to work on a project. You’ll need to move ahead with the project to meet your deadlines, as well as to ensure that you can move on to the next project.
You can budget your time, in the same way, you would budget money. Allot only a certain amount of hours towards working on a project, before you finish it.
Also, consider investing in insurance for architects. Running an architecture business leaves you exposed to certain risks, like getting sued by dissatisfied clients. When you have insurance for architects, you can better protect your business as well as your finances. If you would like to learn more about professional liability insurance for architects, then click here.
4. Charge For More Than Design Work
One of the most valuable resources that you have at your disposal is time. If you lose out on time, you won’t be able to get it back. This means that you should never give your hours away for free.
Don’t charge just for your design work, but your non-design work as well. You should consider the time spent on managing projects, attending client meetings, traveling, as well as on administration. You can make use of an app dedicated to time tracking if you aren’t sure how you’re spending your time.
5. Choose A Niche
If you try to tend to the needs of every client, then you’ll end up becoming a jack of all trades. You’ll be good at doing what needs to be done, but you won’t excel at anything. There are different clients who are ready to pay more or less, for essentially the same kind of service.
Think about target marketing your services to clients who are more likely to value your services, and pay more money to hire you as well. In case you’re presented with projects that don’t fill your niche – reject those projects. Build your expertise in one area. This will help you build a solid reputation for yourself, which can in turn help you secure more clients.
There are several things that you can do to make your architecture business more profitable. You can change who your target market is, you can price your services higher, and more. Follow the tips in this guide to secure more profits from your architecture business.