Apr 27, 2025
Profit, Debt, and Salaries at a 99-Year-Old Architecture Firm
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
Here's a behind-the-scenes look at a 99 year old architecture practice in the Northeast US as told by one of the 4 Principals. The firm has 30 employees and focuses on K-12, higher education, and healthcare projects.
Office Situation:
We'd like to own but we rent from a government entity so there are lots of issues to buy the building. Rent is $19,000/mo.
Salary:
My salary is $117k/yr plus a car allowance (including maintenance) that works out to about $800/mo. Year end bonuses are dependent on firm profit.
It had been stagnant for a while, but recently adjusted from $110k/yr to $117k/yr.
Work/life balance:
It's out of whack. I still work 55+ hours every week.
Debt:
The only debt is about $24k that we owe a former partner as part of their retirement & selling back their shares. But that will be paid off this year.
We use the Elan Vis credit card. It has decent rewards but not used a great amount.
Revenue & Profit:
Over the last 12 months, we've generated $5 million, plus or minus, in revenue.
Revenue has ranged from $5M to $7m each year. Last year was a disappointing year — always have to hustle to find new work.
Our profitability varies. 20% is ideal and 15% would be great. Most years it falls between 10% and 15%.
Our top financial goal is to improve cash flow and build a one month reserve to cover expenses.
Best & Worst Expenses:
Best: The HCD Healthcare Conference. Great way to get re-inspired.
Worst: Rent — I wish we could buy the building. A close second is subscription costs on software.
Biggest Mistake:
We took on the wrong client for the wrong fee last year. It cost us a lot of money.
Book Recommendations:
Read as many as you can…always be learning.
Final nugget:
Consultant costs (engineering) continue to rise, outpacing inflation and fees. The percentage of revenue to consultants is an important metric to track.
Firm owners: Want to participate? Submit your Money Memo here