The market of architectural services in Russia is huge and is also in the process of formation, which is especially felt in megacities. Along with high competition (according to statistics, over 250 architectural bureaus operate in Moscow), architectural services are also provided by architects without entrepreneurial registration.
Why is architectural business profitable?
This business does not require the purchase of raw materials or goods. Its driving force is the intelligence of employees: architects and designers and their professional authority among clients. An established business with perfectly working personnel often determines a profitability of up to 200%.
What does such a high profitability in the macroeconomic aspect mean? It is precisely that the Russian architectural market is only being formed. Harmony is temporarily broken in it - companies such as the architectural and design bureau prevail. However, there are reserves: statistics from the economies of Eastern Europe indicate that they have 2.5-3 times more architecture companies than in Russia.
According to various estimates, the current capacity of the Russian architectural market is less than $ 1 billion (Moscow - $ 300 million). Obviously, this is the official (visible) part of the iceberg, because it is no secret that the real volume of the business is repeatedly underestimated by dumping architectural projects by concerns, as well as “gray” and “black” architects working “at home”.
Defendants: architects and businessmen
The prospects of further changes in the development vector of this sphere are quite obvious. With the growth of the well-being of the population, the demand for aesthetic transformation of its living environment also increases. In fact, a decade ago it appeared on the Russian market and since then landscape design has been developing especially dynamically. More and more talented architects want to establish a win-win business based on their skills and interpersonal skills.
They are interested in how to open an architectural bureau. But, on the other hand, the same issue is urgent for many investors who are interested in profitably investing their funds in a dynamic architectural business, growing by 30% annually. It turns out the classic situation: who is who. Either the sought-after architect manages to become a successful entrepreneur, or the entrepreneur succeeds in hiring successful architects who led the clientele to him.
The material collected in this article is devoted to this topic - the opening of a business by founding an architectural bureau.
Private architectural companies in the architectural market
In the Russian market of architectural services, state, municipal and private organizations are desperately competing for large orders. However, there are problems: far from always the most talented and worthy architects receive a state order (we will raise this issue later).
But we will not consider architectural companies of different forms of ownership. The subject of this article is a private architectural company.
Imagine a typical pragmatic business plan of an architectural firm.
To start - not from the zero level
The creation of commercial architectural bureaus is usually undertaken by specialists who have their own name and serve a certain circle of clients. In this case, the professional founder, who has an individual license for architectural creative activity, is enough to issue an IP.
If there is none, then a legal entity is established (usually in the form of an LLC), which must obtain a license to carry out design, construction and repair work. The staff of this organization must meet the criteria for qualifications and work experience. The organization that owns the license is audited by architectural oversight bodies.
Costs and Investments
Investments in opening this type of business are relatively small.
In addition to the above costs for registration of the organizational form and licensing, it will be necessary to rent an office of the architectural bureau. For such rent, remote or sleeping areas are not suitable. Rent should be in the city center. True, based on the minimum initial staffing, the area is needed relatively small - 20 m2 .
A first staff salary should also be provided at this stage. To pay for the work of staff, 3 workers, a sum of 50 thousand rubles will be required. Well, and, of course, you should buy office equipment and furniture, which “at a minimum” will require a sum of 200 thousand rubles. It is also advisable to initiate advertising for your company (50 thousand rubles).
Architectural Bureau Revenues
A kind of “handicap” for the architectural business is the professionalism of the bureau staff. Its sign is the simultaneous, along with the opening of a business, obtaining a serious and significant level of demand. It is important that architects in the city know and go to them. If the staff is “zero”, then you have to work two months before reaching break-even points and a year and a half - until adequate profitability is achieved.
With experienced staff, the second month the work will bring profit to the architectural bureau, and the investment will fully pay off in 3-4 months. If mainly large orders for projects are received, then it makes sense for the company to work as an architectural and planning bureau.
To confirm the above, we present some tariffs of Moscow architectural bureaus when designing housing stock: interior design - $ 50 per m2, design project 200 $ per m2, supervision will bring a commission of $ 1000 per month.
Choose the specifics of the business
Naturally, each architectural company will strive to become a leader in its market segment. This is the right strategy to maximize profits. In the developed market of megacities, in the conditions of a construction boom, leadership implies a certain specialization of architectural organizations.
Having opened a business, you should think about specialization. Therefore, it is worthwhile to evaluate in detail and objectively the qualifications of the staff of the architectural bureau, comparing it with the specifics of the market. Usually, a field of activity is chosen in which employees have many years of real experience. What will you have to choose from? Consider the preferred forms of architectural companies for architectural entrepreneurship.
Specialized architectural bureaus
The architectural and planning bureau is engaged in the development of a set of design documents, such as a general plan, architectural and construction, heating and ventilation, plumbing and sewer sections, as well as planning for power supply, technological, organizational and construction support. Estimates are also being prepared for all of these sections.
The architectural and design bureau on the client’s request provides him with a solution of residential and landscape interiors, expressed in the design project, in accordance with the objective opportunity and the wishes of the customer. At the same time, specialists select the optimal concept, stylistic solution, and color. Finishing materials are determined that correspond to the price / quality ratio feasible for the client.
The Architectural and Industrial Bureau specializes in developing comprehensive design documentation for industrial buildings (master plan of facilities, engineering networks and systems, technological buildings).This organization is also engaged in general plans of residential buildings for staff, but is “following” the planning of their production buildings.
Universal Architectural Companies
The architectural design bureau is more universal. As a rule, it consists of several departments. The scope of his activity not only combines the functions of both types of architectural bureaus discussed above, but also includes at all stages of design, architectural and technical supervision at the facility.
This type of architectural bureau makes sense to organize in the architectural market with limited demand. The specificity of his work is that no matter what architectural request a person receives from a bureau, he automatically becomes his client.
There is another company format in this industry. However, it is chosen by professionals who already had work experience, so they know in advance how to open an architectural workshop, having transformed their functioning architectural bureau. The change is the transition to 100% turnkey design and construction.
The latter means that the architectural workshop fully takes care of the organization of construction, architectural and technical supervision. In addition, the architectural workshop often fulfills the mission of supplying the client with scarce finishing materials. The combination of architectural and construction functions in one legal entity increased the profitability of the architectural workshop relative to the architectural bureau by 7%.
City as a set of architectural problems
How does a modern Russian metropolis imagine a person who is thinking about how to open an architectural bureau? Maybe not like you? He immediately catches the eye all the problems. City streets that have lost the function of communication, in the form of which there is a lack of comfort for the average resident. The squares created for demonstrations and parades, which are stone wastelands on weekdays.
In the guise of cities, the concept of sustainable architecture has been lost. The problem of public spaces sounds topical. Obviously, all this should be reoriented so that urban architecture is as consistent as possible with people's concepts of safety and comfort, and as much as possible contributes to the diverse social activity of people. It is positive that architects are already starting to not only talk about it out loud, but also suggest how to change the situation (we mean the 1st Congress of the National Chamber of Architects.)
The choice of service areas
The attention of novice entrepreneurs deserves the experience of existing architectural companies. Obviously, before asking yourself how to open an architectural bureau, you should clearly imagine the priority areas for future work. According to statistics, they look as follows: housing stock - 25%; innovative projects of new enterprises, public places - 2–5%; office real estate - 20%; restaurant business - 10%; service industry - 2-3%; retail real estate - 5-7%; universal approach, service of all orders - 30%.
Conclusion
What prospects does the architectural business in Russia have? This issue was actively discussed at the 1st Congress of the National Chamber of Architects, held on November 22, 2013. Undoubtedly, business in this area is in demand and active.
Controversy is also missing. And they, as history teaches us, are the starting points of development. Perhaps that is why discerning entrepreneurs are increasingly interested in the question of how to open an architectural bureau.
The programmatic Memorandum 2013, adopted by the congress, involves bringing the architectural “rules of the game” in line with world practice. First, it is necessary to ensure the administrative independence of the architectural industry from the construction industry.
Secondly, it is necessary to create (including for architectural bureaus) transparent conditions for competition for state orders for urban development (and this is 58% of the market for architectural services).
The memorandum involves the development and introduction of appropriate amendments to the federal "Law on Architectural Activities ..."
