A Full-Service Client Partner Architecture Firm Architrex - Business Plan Example

The business plan of a full service client partner architecture firm, ARCHITREX ARCHITREX Is a full- service architectural firm: historic preservation and engineering. This will be an architectural firm specializing on commercial, residential and architecture for both international and domestic markets based out in Illinois, Chicago. This firm will provide a full service client partner services using technologically superior processes that provide greater value for clients and enhance construction and design. The target client is segmented into four different categories; developers, government, contractors and home owners. ARCHITREX competitive edge will be the knowledge and experience of how to work with digital design based resources. It also has superior customer service which will also be regarded as a point of differentiation from other architectural firms. On the business aspect the first year of sale is estimated to be about $ 200, 000 and would further increase to $ 800, 000 by the end of the fourth year. The most vital challenges ahead include the ability to secure a suitable location, proper establishment of a client base and the ultimate positioning of the firm with other competitive firms in a global market. The business plan outlines the goals, focus and the implementation. 1.1 Mission ARCHITREX offers a novel type of digital interactive media for both the customer and the builder. This media will offer a great deal of designs that the client and the builder can prefer and chose with a certain method of construction. With this form of media the client does not have to know anything regarding the architectural graphics or terminology (This will include things like sections, floor plans and construction documents) in order for him to have a good understanding of what the end product would look like. This can be achieved through the use of computer – rendered images and interactive video that well offer all this details. This type if media will be taken up a notch higher by using it in the construction documents foe better confirmation. The builder will be provided with an interactive video which will have all the detail regarding the building and will also contain both visual photographic quality images and construction specs. All the details will be worked out in a three dimensional manner in such a way that anyone who is computer literate will be able to access it and understand the new means of architectural presentation. 1.2 Success attributes 1. Utilizing a diverse and competent staff of architect to offer innovative ideas and a variety of products 2. Provision of quality service that is technological superior to other competing architectural firms. 3. A stabilized networking capability with global connections 1.3 Objectives 1. Sales of $ 600,000 in year 3 and $ 800, 000 in Year 4 2. Market expansion of about 30 % per year thorough the internet 3. Establishment of a new niche in the market by the fourth year of three dimensional construction document and interactive digital presentation between the builders and clients. Summary of the company ARCHITREX is an architectural firm that will provide a service of architectural design through the use of digital media to the short comings of technology. This method of approach will offer optimal efficiency to the firm and design processes, superior value and the construction designs to the client (Maurer 52). 2.1 Firm ownership ARCHITREX will be created as a Chicago cooperation that is located in Illinois. It will be owned by the principle investor and operator, Chrispinus Korlat 2.2 Start up summary ARCHITREX start up cost will be a total of $ 50, 000. The most essential purchases that are required include plotter, blue print machine and drafting supplies. Twenty thousand dollars is needed in cash in order to sustain the business money. This is known as the operating money. It will cover the rent and wages until profits start to be realized. Start up funding Start up Expenses $ 27, 000 Start up Assets $ 23, 000 Total liabilities - ($ 20, 000) Total planned investment $ 30, 000 Total funding $ 50, 000 2.3 Company Location and Facilities The interim office of ARCHITREX will be located in Down town Chicago, Chicago until a dedicated office in Illinois is secured. Services ARCHITREX will provide many levels of services to cater for both large and small cooperation. The prices for these services will be accommodative and affordable for middle and upper socioeconomic classes. 3.1 Service description In order for ARCHITREX to provide this new innovative service of digital media, the firm will use high speed computer that will be able to run programs such as From- Z and Auto Card. To be well conversant with the uprising technologies, ARCHITREX will investigate all the upcoming software that is related to 3 D design in order to stay ahead of the market. The key strategic component is to differentiate the firm and optimize productivity and efficiency. Market analysis summary ARCHITREX will provide its services to home owners and developers who are looking to remodel. It will offers top quality services to developers, contractors and government agencies in both the domestic and international market. Although we will be catering for a large scope of customer, the firm will decide what the target market is based on trends and sales that it has experienced in the first months of operation (Forsyth 67). 4.1 Market segmentation The potential clients for ARCHITREX market are broken down into four categories; developers, contractors, homeowners and government. The home owners are the largest group due to their availability and shear population. This will be emphasized in the firms marketing and promotional strategy. Targeting the remaining three groups will depend on meaning full relationships and the quality for the requested proposals. 4.2 Service business Analysis Architectural business across the country is the primarily made of small to medium sized firms that specialized in a particular type of architecture. However, there are few large firms that seem to have dominated this industry. ARCHITREX main competitor will be the large firms. This logic behind this is that large firms have more capital to work with and this gives them the advantage of faster technological changes, as opposed to small firms (Beaver 56). Strategy and implementation summary In its first years of business, ARCHITREX will focus on the Downtown area of Chicago. As the firm will continue to grow, the profit sales will expand thorough out Chicago and will eventually be a global firm. 5.1. Sales strategy In this business, “sales” is as a direct of exceptional client service. This will be solely based on the firm’s image and the referrals. The more clients this firm pleases, the more referral it will get. The firm will work to provide a positive experience in all cases so that our clients will refer other potential clients or return to use in the future. 5.2 Competitive edge ARCHITREX will have a competitive edge over both the smaller and larger firms because it will be composed of the new generation of competent architects who are well versed with the digital world. Most of the firms in the industry employ an older generation of architects who do not know how to use 3-D designing. They find the computer a mystery and are only familiar with 2-D designs. Management summary ARCHITREX will start with one Form Z and Auto CAD architect and the founder. After three months, a clerical position will be added. After three years other FORM Z and Auto CAD architects will be hired to deal with the increased work load. ARCHITREX will increase growth and technology with cash flow as it increases through the years. Some money will be set aside to pay for further development and consultation that will be needed. Significant assumption The company’s yearly assumption will be based on a stable economy. It will adjust three assumptions as changes occur in the current tumultuous economy that the Downtown Chicago area is experiencing. Key finical indicators will be sales, operating expenses and inventory turnover. This will be key factor in determining gross margin. Other factor that need to be determined is the break even analysis where the company would have completed to pay all it debts and will now witness it profits. The firm will develop a projected cash flow in order to come up with a proper balance sheet. This will be a key factor in determining the business ration. Conclusion Based on the critical analysis of the market in relation to the business plan of a full service client partner architecture firm, the business plan for ARCHITREX is a viable one. It has a competitive advantage over other firms as being digitally competent. This can be an important factor towards its success. Work cited Forsyth, Patrick. Marketing & Selling Professional Services: Practical Approaches to Practice Development. London: K. Page, 2003. Print. Beaver, Robyn. 1000 Architects. Mulgrave, Vic: Images, 2004. Print. Maurer, Terri L, and Katie Weeks. The Business of Interior Design: Case Studies of Practice. Hoboken, N.J: John Wiley & Sons, 2009. Print. The Architecture Students Handbook of Professional Practice. Hoboken, N.J: Wiley, 2009.Print. Architects, American I. The Architects Handbook of Professional Practice. Hoboken: John Wiley & Sons, 2011. Internet resource. Progressive Architecture. New York: Reinhold, 1945. Print. Read More