Capital requirements Start-up capital is crucial for any new firm and is required to fulfill two basic needs: initial expenses the cost of funding operations until sufficient cash flow to sustain operations has been established. One of the first questions most architects ask when contemplating a start-up is how much money will be needed. No two start-ups are exactly alike, but most find it necessary to have enough cash to cover three to six months of operating costs, plus the amount needed to cover organizational expenses.One way to calculate this is to make up a budget, with an experienced very
During the recent construction boom, almost every project seemed urgent. Fast-tracking and design-build ruled, and it looked like there was no end of the work in sight. Our clients were flush with cash and willing to pay a premium to get work done quickly. When things were good, many architects didn’t feel they had time for work plans for new projects. They stopped making the critical up-front assessments of the steps needed to figure how much it would cost the firm to do a project, to make schedules, and to properly allocate resources. Times have changed. Firms are competing