Nov 10, 2024
7-year-old architecture firm 'tickles' $1M in annual revenue
Tyler Suomala
Creator of Growthitect
Welcome to Money Memos! Money has always been taboo in our industry. But that's shifting…
Despite the growing need for financial transparency, many architects have kept firm finances close to the vest, even with partners and close colleagues.
But now, more architecture firm owners are sharing financial insights to grow stronger, more resilient firms.
In an effort to provide real, candid insights into the financial side of running a practice (and to shake up the silence around money), I've created Money Memos. This series brings you anonymous and rare looks into how your peers are navigating the numbers.
Want to participate? Submit your Money Memo here
This architect told us that, "Architects suck at running businesses." Here's a look at an owner of a 7-year old firm with 10 employees located in a mid-sized city in the Rust Belt of the US.
Projects:
60% of our projects are residential and 40% are commercial. On the residential side, about half are new homes.
Office Situation:
I own the building personally and the firm rents from me.
Salary:
I pay myself $90k, which has never changed. I keep investing back into the firm.
Work/life balance:
It's great! We work 9 hrs/day Monday thru Thursday, which gives us all a 1/2 day on Friday.
Debt:
We use the Capital One Spark credit card because it has good points. Our rolling credit card debt is $15k.
Revenue:
We tickle $1MM in annual revenue with a 15-18% profit margin. We've had steady growth year over year, but 2024 was our first plateau. Our #1 goal in the near future is to expand into a new region to access higher fees.
Best & Worst Expenses:
I hate paying for Autodesk–it's a total scam. But my best expense has been hiring a Director of Business Development.
Savings & Investments:
I try to maintain 3 payrolls in a savings account, just in case.
Book Recommendations:
My favorites are Unreasonable Hospitality by Will Guidara and How To Win Friends and Influence People by Dale Carnegie.
Firm owners: Want to participate? Submit your Money Memo here