Free Architecture Firm Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
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in this complete free business plan are completely fictitious and may not
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Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of an architectural design firm while showcasing the expected financials and operations over the next three years. The Architecture Firm, Inc. (“the Company”) is a New York based corporation that will provide design of new facilities, design services for renovating existing facilities, and project management to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the primary function of the Company will be to provide architectural design and drafting services for new and existing structures undergoing renovation. At the onset of operations, the Company intends to have a staff of three licensed architects (including the owner) as well as a three member drafting staff. The Company will earn substantial gross margins on the services provided by the Architecture Firm. To a limited extent, the Company will also provide project management services as it relates to the development and renovation of properties and buildings. This will be an important source of secondary revenue for the firm. The third section of the business plan will further describe the services offered by the Architecture Firm.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Architecture Firm’s mission is to become the recognized leader in its targeted market for architectural design and project management services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience as an architect. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals, contractors, and real estate developers within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Architecture Firm, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Architecture Firm requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Architecture Firm, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Architecture Firm. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the architectural and project management services offered by the Company.
3.1 Architectural Design Services
The primary focus of the Company’s services is to provide design and development of architectural plans for new constructions and buildings/properties that are undergoing renovation. The Architecture Firm will work closely with both individual clients and real estate developers to ensure that they have the proper plans (with aesthetic appeal) for their properties and developments. The business will also work closely with structural engineering firms to ensure that all blueprints and design plans developed by the Company are feasible and structurally sound. The Architecture Firm will generate significant gross margins from the fees charged to clients for these services.
3.2 Project Management Services
On a limited basis, the Company will also act in a project management capacity during the development of properties and renovations. The business will charge a flat set fee for these services, which will primarily consist of design and implementation oversight in conjunction with general contractors and real estate developers.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the architecture industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. This may contribute to the business having some difficulty with obtaining new business at the onset of operations as the demand for new housing and housing renovations has slowed. However, the Company will earn substantial gross margins on its services, and as such, the Architectural Firm will be able to maintain profitability despite the current drawbacks in the aggregate economy.
4.2 Industry Analysis
The architectural industry has gone through a major change over the last ten years. With the advent and prevalence of online communications, more architects have developed their own private practices in lieu of working directly for a business. With the increased communication reach, small architectural firms can quickly and easily gain national and international level clientele through Internet advertising and communications. This trend is expected to continue as advancements in the telecommunications industry allow businesses and engineers to communicate quicker and more effectively. Aggregately, the 23,000 architectural firms in the Untied States generate in excess of $25 billion dollars in gross receipts and provide jobs for more than 200,000 people. Average annual payrolls have exceeded $10 billion dollars for each of the last five years. The growth rate of this industry has greatly exceeded the growth of the general economy. The average annual growth rate in the number of establishments doing business in an architectural design capacity has been in excess of 6% per year, while a receipt generated by these businesses has increased 8% per year. One of the most common trends within this industry is to develop structures that are environmentally friendly and have minimal impact on the surrounding ecology.
4.3 Customer Profile
The Architectural Firm will have two primary client bases: individuals and real state developers.In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition
5.0 Marketing Plan
The Architecture Firm intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Architecture Firm.
5.1 Marketing Objectives
• Establish relationships with real estate developers and general contractors within the target market.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Architecture Firm to easily target individuals and real estate developers/contractors within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public and to real estate development based businesses. Foremost, the Company intends to develop relationships with general contractors and real estate developers that will call on the firm for drafting, design, and limited project management services. Mr. Doe anticipates that 75% of the Company’s revenues will come directly from this group, and as such, it is imperative that the Architecture Firm develop these relationships from the onset of operations. The Architecture Firm will also use an internet based strategy. This is very important as many people seeking local services, such as architects, now the Internet to conduct their preliminary searches. Mr. Doe will register the Architecture Firm with online portals so that potential customers can easily reach the business. The Company will also develop its own online website to showcase the history of the firm, its staff architects, and relevant contact information. The Company will also maintain a sizable amount of print and traditional advertising methods within local markets to promote the architectural services that the Company is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Architecture Firm will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. As the demand for housing has waned over the last two years, the demand for related design, drafting, project management, and other architectural services has also decreased. However, the high margin income derived from the Company’s revenues will ensure that the business maintains profitability and is able to service the debt sought in this loan despite the current deleterious housing market.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis