Washington, D.C., architects Ralph Cunningham, AIA, Cunningham-Quill Architects; and John Bisch, CFO of Hickock Warner Fox Architects, shared tips on running a successful firm with a full house of 30-something architects at a March 20 lecture sponsored by the AIA Washington, D.C., chapter.

Bisch indicated that while there are many reasons for starting a firm—including discontent with a current job, level of recognition, or salary—the prospective business owner must be willing to:
• Sacrifice time and money
• Relentlessly pursue success
• Take on liability
• Give up security.

Cunningham added that as a business owner, an architect must be able to sell him- or herself to banks, clients, and employees; be tough-minded; and possess strong leadership skills. The two speakers explained how to establish a business plan and apply for loans, noting that only 30 percent of start-ups are still in business after three years due to cash flow problems and poor management.

As a business owner, one must play many roles—accountant, human resources manager, marketer, lawyer, technology expert, clerk, and business planner. "You cannot underestimate the cost in hours of being in business for yourself," Bisch said. He also noted that successful business owners build around their skills and learn to compensate for their weaknesses by, for instance, finding a complementary partner.

Getting started
The speakers offered the following start-up advice:

1. Most important, set goals and understand where you are going. Decide what you want out of the business and what you have to do to get there. This process becomes the basis for your business plan.

2. Assess which markets to function in. For example, if you are bad at paperwork, don't base your practice on government contracts.

3. Know where your work will come from. Cunningham said that friends and previous employers could be good sources of work. It is also important to join organizations and to create new contacts.

4. Know where your money is coming from. There are several ways to obtain start-up funds: getting a bank loan, applying for a small business loan, or digging into your own savings. (If you have enough savings, you could use that to establish a line of credit.)

Are you ready?
To evaluate your readiness for ownership:
• Think about why you really want to do this
• Consider going to another firm where you have opportunity for advancement
• Learn as much as you can from your current firm
• Find a mentor
• Determine if your current projects are making money.

What is the right business for you and when should you dive in? That, Bisch and Cunningham assert, depends on your personal goals and where you are in your life.

Copyright 2001 The American Institute of Architects. All rights reserved.