Dec 1, 2024
Solo Architect Earns $20k+ a Month Without Losing Family Time
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 look at the owner of a 9-year-old solo architecture practice along the California coast that focuses on High-End Residential projects.
Office Situation:
I rent a small, 475 sq. ft. office in an industrial building. It's ok for client presentations. The bathroom is outside and there's no AC. I use a fan and tiny plug-in heater. But it's one minute from my house and rent is cheap at $750/mo.
Income over the years:
In the last 12 months I have averaged $20,255/month not including pass through revenue like reimbursables.
From 2022 to 2023, my total income grew 49% because I had a good project and someone to kick me in the pants. They told me I wouldn't get the project if I didn't raise my price because otherwise I would look too green.
My growth between 2023 and 2024 hasn't been as significant. But I continue to know my value and raise my prices. The value is what someone is willing to pay, which ideally is more money than my time and hourly rate. I don't charge hourly anymore (except during construction phase) because then I can only make more money if I work longer hours.
I still keep track of my hours and use data to determine a fixed fee when sending out proposals. I like fixed fees because the clients don't scrutinize every minute I spend on the project.
Also, I'm more focused on marketing, networking, Growthitect, and the Business of Architecture podcast.
Work/life balance:
Amazing! After my kids are off to school, I'm at the office around 8am. I try to put in 6.5 billable hours per day. Then, I leave the office between 5:30 and 6 pm to go home with the family.
On Tuesdays and Thursdays, I work in the office from 5am to 7am. Then go back home to help the kids get ready for school before going to my office until 5:30pm.
On Fridays, I only work on non-billable work. This includes admin, networking and marketing, and meeting with prospective clients.
Debt:
I don't carry any debt but use a Capital One credit card for travel points.
Best & Worst Expenses:
Meals and entertainment are my favorite expenses because they feel like a treat.
Three months ago, I would've said my worst recurring expense is insurance. I realized I was getting ripped off for 9 years. It kept going up a couple thousand every year. When I questioned it, they came up with something that sounded reasonable.
But then I finally got smart and explored a new insurance agency, which cut my rate by more than half. Now I pay $350/mo for E&O and general liability. I used to pay $875/mo.
Financial goals:
I want to hit the $300k club! I'm trying to apply one growth hack per week (on Fridays) either from Growthitect, my marketing consultant, or my leadership group.
But my Fridays tend to fill up with so many non-billable tasks that I have a hard time getting to the more important revenue growth stuff. I'm working on that :)
Biggest Mistake:
I’ve made mistakes, but I don’t regret them—they’ve brought me to where I am today.
One of my first projects was a fixed fee of $10,000 during construction. The client picked a bad contractor and needed constant handholding. We met weekly for over 18 months, and I worked over 500 hours just in the construction phase. I was too scared to renegotiate.
I also did a house for free for a friend. It turned out great and brought me more work for my portfolio, but even minimum wage would’ve been better. I think my friend would have been happy to pay something. Lesson learned: Don’t drink and negotiate with friends—or better yet, don’t work with friends or family at all.
Every project is a lesson. Don’t let fear stop you—God will provide.
Book Recommendations:
Your Best Year Ever by Michael Hyatt. But I also like podcasts a lot, including Growthitect, Business of Architecture, and EntreArchitect.
Firm owners: Want to participate? Submit your Money Memo here