Paxton Masengill_Arch 880YP Final by paxtonmasengill

WORKS CITED: 14 Strategies for Effectively Managing People at Work. https://www.indeed.com/career-advice/career-development/managing-people. GPS, Financial. “Can I Afford to Hire an Employee?” LinkedIn, 20 Oct. 2021, https://www.linkedin.com/pulse/can-i-afford-hire-employee-ﬁnancial-gps?trk=organization-update-content_share-article#:~:text=According%20to%20the%20Small%20Business,range%20from%20%2443%2C750%20to%20%2449%2C000.

PA X T O N M A S E N G I L L

Gray, Lucas. “Types of Architecture Firms and Their Business Models.” RSS, Monograph, 22 July 2022, https://monograph.com/blog/types-of-architecture-firms#:~:tet=For%20architecture%20firms%20there%20are,based%2C%20and%20Expertise%20based%20offices. “How to Start Your Own Architectural Firm.” Architecturechat, 16 June 2022, https://architecturechat.com/blog/how-to-start-your-own-architectural-firm/. Hoory, Leeron. “Sole Proprietorship vs. LLC: Here's What You Need to Know.” Forbes, Forbes Magazine, 7 July 2022, https://www.forbes.com/advisor/business/sole-proprietorship-vs-llc/.

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LePage, Mark R., et al. “How to Start an Architecture Firm from Scratch - Entrearchitect // Small Firm Entrepreneur Architects -.” EntreArchitect // Small Firm Entrepreneur Architects, 27 Sept. 2019, https://entrearchitect.com/2018/01/02/start-an-architecture-ﬁrm/.

Watts, Rob. “LLC vs. Corporation.” Forbes, Forbes Magazine, 1 Aug. 2022, https://www.forbes.com/advisor/business/llc-versus-corporation/.

ARCH 880YP FINAL PROJECT

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Treece, Kiah. “How to Get a Startup Business Loan in 5 Steps.” Forbes, Forbes Magazine, 20 Sept. 2022, https://www.forbes.com/advisor/business-loans/how-to-get-a-startup-business-loan/.

“Tips for Managing Small Business Finances.” Business News Daily, https://www.businessnewsdaily.com/5954-smb-ﬁnance-management-tips.html.

h o w t o s t a r t y o u r o w n a r c h i t e c t u r e fi r m : W

F I NE P RINT: THE FOLLOWI NG I NFOR MATION IS GEARED TO THE F RESHLY LIC ENSED YOU NG ARC HITEC T W H O H A S N O M O N E Y O R CL I E N T S L I N E D UP F O R T H E S TA R T O F T H E I R BUS I N E S S V E N T URE . T H E GO A L O F T H I S I N F O - GRA P H I C I S T O CR E AT E A F U L LY E N C OM PA SSIN G G U IDE T OWA R D T H E C ON SIDE R AT ION S ON E M U ST TAC K L E E N T E R IN G T H E C R E AT ION OF T H E IR F I R M / S M ALL BUS I NES S . THER E AR E CE R TAIN PATHS THIS YOU NG ARC HITEC T MIGHT ELEC T TO C HOOSE A L O N G T H E WAY I E . ( 1) T H E A M O UN T I F T I M E P E R WE E K T H E Y A RE A BL E T O GI V E T O WA RD T H E I R BUS I N E S S , ( 2) I F T H E F I RM I S T H E I R P R IM A RY SOU R C E OF IN C OM E OR N OT, OR (3 ) IF T H E Y H AV E A B U SIN E SS PA R T N E R , E T C . A N D T H E SE C ON SIDE R AT ION S M IG H T ALT E R WHAT I S BES T FOR THE YOUNG ARC HITEC T ON AN INDIVIDU AL B ASIS. F OLLOW THE STEPS F OR SU C CE S S . S I D E E F F E CT S M AY I N CL UD E RI S K A N D A L A CK O F S L E E P F O R Y E A RS .

1 . E S TA B L I S H

T Y P O L O G Y

2 .

B U I L D

STEP O NE. Create a business plan. Be able to answer all questions below.

F I NA N C I A L

F O U N D AT I O N

S T E P F OUR. U nd e r s t a nd Yo u r Ex pe ns e s a n d Ho w YO U W ill P ay Fo r T h in gs:

Here y ou will th in k th rou gh you r own goals, stren gths , a nd w e a k n e s s e s t o b e s t d e t e r m i n e w h a t m o d e l o f a rc h i t e c t u re ﬁrm is best for you.

T h e c o s t o f s t a r t i n g a n a rc h i t e c t u re ﬁ r m c a n v a r y d e p e n d i n g o n a num b er of f a ctors , m a ki ng i t d iffic u lt t o c o m e t o a n e x a c t c o s t . B u t there a re s om e g ua ra nteed e x p e n s e s t h a t y o u n e e d t o k e e p in m i nd w hi l e s ta rti ng your ow n p r a c t ic e :

ANSWER TH ESE QUESTI ONS:

This includes planning for your ﬁrm’s operations to res pond to the following qu e s ti o n s :

W HAT

AR E

What types of projects do you want to des ign? Why should clients choose your ﬁrm over other options?

H o w will your s taffi ng be organiz ed to deliver your s ervices ?

3. T he m oney s p ent on other l eg a l p roced u re s lik e in s u r a n c e , t a x a t io n , n e t w o r k in g etc.

Thes e ques tions and others all relate back to your bus ines s model.

M OD E L S ”

A RC H I T E C T URE

F IRMS

????

EXPERIENCE -BASED

E X P E RT I S E - BA S E D

This model is for architecture offices that can deliver

This is probably the most common model that architects

This business model is for the architects who have a great

projects faster or for less money than the ﬁrms you are

jump to when setting out to start their own ﬁrms. Think of this

depth of knowledge about a speciﬁc project type or topic,

competing with for work.

model as most of the ﬁrms you know; experience-based

or for those who have demonstrated exceptional design

practices aim to provide design services to clients and

abilities. These are the “starchitects’ who have a reputation

solve unique and challenging problems.

that bring clients and projects in.

You have developed a design and production process that is efficient and streamlined and are constantly looking for ways to improve upon it to make it more efficient.

You have selected projects that are simple to execute and allow for repetitive processes.

You take advantage of your design process efficiencies, efficiency based ﬁrms often do less complex projects, or take on similar projects to those they have already completed. Further, these ﬁrms tend to offer a limited range of services, or standard scope of work, that is familiar and repeatable. ◦

The advantage to limiting the type and complexity of the work you take on is that you can reuse details, notes, and other documentation to keep the work hours to a minimum while still delivering quality documents.

Marketing to clients for projects that are more complex and unique, you have to prove that your team has the skills and experience to match the project’s needs. When just starting out this often means the ﬁrst couple of hires should be more experienced architects that have worked on projects in your target markets.

Due to the repeatable design process, the relatively simple project types, and/or the standardization of your deliverables, this model lends itself to having a large production staff working under a smaller group of experienced architects and partners.

These firms are the “starchitects” who have built a reputation based on their award-winning design abilities or consultant firms of specific technically challenging projects.

For instance, these could be firms that won the Pritzker Prize, or specialize in the design of acoustically challenging performing arts buildings, or maybe the technically challenging research science laboratories, or even code consultants. Another example would be firms that are developing and mastering new technology. Frank Gehry’s office is an example of a firm that has done a combination of these - he is sought after for his eye-catching design aesthetics and his firm has developed new software to allow his complex curving forms to be designed and fabricated

When you are starting a new ﬁrm and want to be an experience based architectural practice, you will have to rely on the reputations and past portfolio of you and your business partners. You will need to clearly demonstrate that the experience you have gained before starting your own business will translate to being able to deliver similar projects.

Your ideal client is one that is looking for simple design solutions, may have a tight timeline, and is budget conscious. This could be residential developers, retail chains, or even small projects like Accessory Dwelling Units.

By relying on their past experience and expertise, these ﬁrms can take on more complex project types and market themselves as knowing what they are doing to address the needs of their clients.

This also means that as you grow you often need a larger proportion of project managers or project architects that can bring this level of experience to your office. These employees will of course cost more than less-experienced production staff so balancing the right mix of experience and production is a challenge that must be overcome to maintain proﬁtability.

There is also the obstacle to avoid having the partners or experienced staff getting too involved in the design process and thus blowing through the fee too quickly, when junior staff could handle the work and gain valuable experience. Thus project management and staffing is vital for this business model to be successful and for the ﬁrm to remain proﬁtable.

The ﬁnancial model with these offices is that by becoming an in-demand expert in your ﬁeld you can demand higher fees or hourly rates. Although many starchitect offices grow into large companies with many employees, this business model is also potentially lucrative for sole practitioners or small partnerships who offer a unique skillset or base of knowledge.

These ﬁrms also often look to partner with other architectural offices to execute the full scope of architectural work. They can either act as the design architects - with an architect of record brought on to help with production or they may be specialty consultants themselves brought onto a project by another ﬁrm to help navigate particularly challenging technical problems.

WRITE DOWN EXACTLY WHICH FIRM TYPOLOGY YOU FIT INTO AND WHYWHAT DOES THIS MEAN FOR GETTING PROJECTS? OR HIRING A TEAM? YOU NEED TO HAVE ALL QUESTIONS ANSWERED AND A SOLID PLAN OF HOW YOU WANT YOUR FIRM TO OPERATE AND BE SUCCESSFUL.

5. T he m os t recurri ng exp ens e, the s a l a ry t h a t n e e d s t o b e p a id t o y o u r e m p lo y e e s a nd eventua l l y, you.

WI T H A R I S I NG L I S T O F I M P E NDI NG C O S T S AND N O C AP I TAL T O W O R K W I T H, YO U NE E D T O S E C U R E A S TAR T- U P B U S I NE S S L OAN, .

HE RE ’S H OW:

Online term loans. Term loans are generally issued by online and traditional lenders, and involve a bank extending a lump sum of cash, repaid over a set period of time, at a set interest rate. Business lines of credit. With a business line of credit, a lender extends funds up to a certain amount and the business owner can access the ﬁnancing on an as-needed basis. SBA 7(a) loans. The 7(a) loan program is offered through the U.S. Small Business Administration (SBA) and extends business loans up to $5 million to eligible applicants. SBA Microloans. SBA Microloans are available to eligible business owners up to $50,000. Loans are typically offered to startups in disadvantaged areas and to those owned by minorities and women.

IN CONCLUSION: AS AN EXPERIENCE-BASED FIRM, YOU ARE

EXCELLENT AT ONE CERTAIN WORKFLOW, AND WITH THE

FUNCTIONING AS THE MAJORITY OF FIRMS OFTEN DO, YOU OPT

EXTREME EFFICIENCY YOU ATTRACT SMALL SCALE, SIMPLE

TO TAKE ON A MULTITUDE OF PROJECTS AND RELY ON YOUR

IN CONCLUSION: AS AN EXPERTISE-BASED FIRM, YOU ARE RIDING A

PROJECTS IN LARGE QUANTITY. YOU ARE IN AND OUT OF A

AND YOUR PARTNER’S EXPERIENCE AND TRAINING TO DEVELOP

REPUTATION. YOU HAVE PROVEN YOURSELF IN THE DESIGN

PROJECT QUICK DUE TO THE EFFICIENCY OF THE PROCESS YOU

UNIQUE DESIGN SOLUTIONS TO A CLIENT. YOU HAVE A

COMMUNITY FOR XYZ REASON, AND WITH THIS, YOU CAN DEMAND

HAVE MASTERS AND YOU ARE FUNCTIONING WITH A SMALL

BALANCED STAFF OF A YOUNGER PRODUCTION TEAM AND A

HIGHER FEES AND GET PROJECTS THAT ALLOW A GREAT BIT OF

GROUP OF EXPERIENCED ARCHITECTS TO HAVE A QUICK AND

MORE EXPERIENCED LEADERSHIP TEAM, AND OFTEN YOU NEED

EXPERIMENTATION. CLIENTS COME TO YOU FOR YOUR MIND AND

SEAMLESS TURNAROUND. YOU NEED TO PROVE THAT YOU CAN

TO COMPETE AND PROVE YOURSELF TO CLIENTS TO GET THE

OPINION MORE THAN THE PREVIOUS BUSINESS MODELS WHO MUST

BE QUICK AND EASY TO YOUR PROSPECTIVE CLIENTS.

JOB. YOUR PORTFOLIO IS EVERYTHING.

PROVE THEMSELVES AND PLEASE THE CLIENT FIRST.

Asset-based financing. Asset-based financing is a form of secured business financing that lets startup owners borrow against valuable assets like inventory, machinery and equipment, accounts receivable and real estate.

2 . C h e c k Yo u r B u s i n e s s a n d P e r s o n a l C r e d i t S c o r e s Do T h i s E xcerci s e:

Lenders evaluate an applicant’s credit score to gauge the amount of risk they pose. Applicants with a higher credit score are more likely to make on-time payments and, therefore, have higher approval odds. Business credit scores are typically available after six months to one year of operations, so new businesses may not have one, especially if the startup is brand new.

– S t a rt t h e b u s i n es s p l a n b y w ri t i n g y ou r vi s i on s t a t emen t , i . e. , ‘ H o w w i l l y o u r a rc h i t e c t u r a l ﬁ r m l o o k a f t e r a f e w y e a r s ? ’ – Des cri b e t h e mi s s i on , i n ot h er w ord s , w h y a re y ou p l a n n i n g t o s t a rt t h e b u s i n es s a n d t h e ob ject i ve y ou r b u s i n es s h a s a n d a n y ch a l l en g es i t p l a n s t o a d d res s or s ol u t i on s i t a i ms t o p rovi d e.

a n

STILL UNSURE EV EN AFTER READING THIS WHERE TO BEGIN?

e n ti ty ”

THE

“ BU S I N E S S

M OD E L S ”

E N T RE P RE N E URSH IP

3. Gather and Prepare Required Documents

– Fi n a l l y , p rod u ce t h e u l t i ma t e a ct i on p l a n b y i n cl u d i n g cert a i n s t a n d a rd s , ru l es a n d reg u l a t i on s t h a t w i l l s u p p ort y ou r b u s i n es s plan.

N o w t h a t y o u ’ v e d e t e r m i n e d t h e ﬁ r m a n d e n v i ro n m e n t y o u s trive to create in th e bu sin ess of arch itectu re, you mus t s h ift you r min dset from th e person al strategy toward the l e g a l t e r m s a n d re q u i re m e n t s o f t h e s e t - u p o f y o u r l egitimate bu sin ess.

AR E

That said, loans are often personally guaranteed—meaning the borrower legally agrees to repay the debt with their personal funds if the business fails to repay—so lenders also look at the applicant/business owner’s personal credit score.

– L i s t d ow n y ou r s t ra t eg i es f or t h e mi s s i on , i . e. w h a t i s y ou r p l a n of a ct i on t o a ch i eve y ou r b u s i n es s ’ s ob ject i ves . – S et s ome s ma l l a n d q u i ck g oa l s t h a t w i l l d i rect y ou t ow a rds y ou r vi s i on a n d mi s s i on .

STEP TWO. R e g i ster your busi n ess wi th your sta te g over n m en t. Re s e a rch yo u r opti on s wh en c h oosi n g your busi n ess’s en ti ty

W HAT

ST RUCTURE YOUR BUIL D A TEAM

W I T H T H I S , E S TA B L I S H A S O L I D B US I N E S S PL A N - W I T H A L L Q UE S T I O N S O F S T E P O N E A N S W E R E D - O N CE CO M PL E T E D T H R O UG H LY- M O VE T O S T E P T W O .

C O R P O R AT I O N

P R AC T I C E

AND

T h e r is k y o u t a k e o n a s t h e o w n e r o f y o u r a rc h it e c t u re ﬁrm goes back to what you ﬁle your business entity as. As p e r w h a t w e d is c u s s e d in s t e p 2 , L L C s a n d c o r p o r a t io n d o n ’ t t a k e o n t h e s a m e a m o u n t o f r is k a s a s o le p ro p r ie t o r . R e g a rd le s s ! Yo u S T I L L NE E D I NS U R ANC E . I n c e r t a in c o n t r a c t s y o u m ig h t n e e d o n ly professional liability insurance , in o t h e r s y o u m ig h t n e e d :

E mb r a c e t h e R o l e o f M a n a g i n g o t h e r p e o p l e A s t h e “ b o s s ” y o u a re g o i n g t o h a v e t o l e a r n t h e a r t o f m a n a g i n g p e o p l e . B e i n g a n e ffe c t i v e m a n a g e r i s n o t n e ce ssa r i l y o u t r i g h t t a u g h t i n a rc h i t e c t u re sc h o o l , so b e lo w a re t h i n g s t o k e e p i n m i n d w h e n w o r k i n g “o v e r ” o t h e r s:

General Liability Insurance Workers Compensation Auto Insurance Etc.

architect

5 .

ENSURE L ONGEVIT Y THROUGH NET WOR KING AND MARKETING

S TE P N I N E .

G e t t h e Wo r k ! Yo u ’ v e c o m p l e t e d a l l st e p s i n re v i e w i n g h o w t o se t u p your firm for business, financial, and legal success. Now y o u m u st d o t h e w o r k i n se c u r i n g c l i e n t s a n d p ro j e c t s t h a t a l i g n w i t h y o u r fi r m ’ s b u si n e ss p l a n ( st e p o n e ) .

S t a r t b y si m p l y :

1. Manage your own workload ﬁrst

Finding a reputable insurance broker ensures that you will be educated and covered within all contracts you and our ﬁrm enter into.

Tell Everyone- Tell everyone you know that you are starting a ﬁrm and that you are looking for your ﬁrst project. Tell your family. Tell your friends. Tell your peers. Tell fellow architects. Tell your alumni groups etc.

Before you can manage the success of others, you ﬁrst should take care of yourself. Make your schedule a priority and guard your time, setting aside a block each day dedicated to completing your own work without interruptions.

Get on social media- Be consistent, informative, interesting and entertaining and you will quickly attract a following of potential clients. Be honest with your level of experience and write about how you are working toward starting your own ﬁrm. Share your journey and demonstrate expertise in your speciﬁc niche.

To be an effective manager, you must understand the people you are managing. Depending on their personalities, people respond differently to various leadership styles. Some require hands-on management while others excel when they are given freedom and ﬂexibility. Strong leaders can adjust their management techniques depending on who they are working with, cultivating every team member's potential with personalized attention.

The AIA, or other country’s council of architecture, (membership acquired in step 3) provides resources assisting in ﬁnding the best insurer for your practice.

Start Networking ASAP – Your greatest asset, now and going forward, is your network. All the people you know have their own networks, who also have networks.

3. Delegate tasks

1. Go to https://theaiatrust.com/resource/ﬁnding-a-broker/ 2. Click and download the PDF titled “ Selecting Professional Liability Insurance and a Broker”

Learning how to trust others with key tasks allows you to focus on high-level management duties instead of micromanaging each responsibility on a project. Once you learn about each team member's strengths, weaknesses, experiences and skills, you will be able to accurately delegate jobs to the people who are likely to do them well within the given time frame.

Terrestrial networking (i.e. meeting people in person) will allow you to quickly build strong relationships that may last for many years into the future. Get involved with your local business groups, your church or your child’s school. Be sure to share your plans with everyone you meet

4. Take control of communication Instead of waiting for your team members to reach out to you with questions, updates and concerns, take initiative when communicating with others. When you ﬁrst step into your managerial role, whether it is official or unofficial, explain how team members should communicate with you and with one another. Identify the main channels for communication such as email or chat servers so that everyone understands what steps to take if they encounter an issue. Reach out to your team as a group and individually to check up on their progress and encourage open communication as a means to solve problems.

Your broker , ﬁrst and foremost, is your advocate in the professional liability insurance marketplace. A good broker will know what the markets are doing, who the underwriters are, what they are looking f o r , a n d h o w t o p re s e n t y o u r ﬁ r m i n t h e b e s t p o s s i ble light.

Digital networking, using social media and/or a blog, will quickly build large networks of connections. Share your plans on your personal Facebook page, on Twitter, Linkedin and Instagram. Set up company pages dedicated to your future ﬁrm and build networks through each site. Volunteer– Take a trip to your town hall and let them know that you are a resident architect who cares about the future of your community. Inform them that you are available to provide pro bono services (that means “for the public good” and without a fee) and are interested in serving on advisory committees such as planning or architecture review boards.

5. Identify clear workﬂows Identify what role each team member plays in completing a project and map out the workﬂow processes you expect to use. Having a clear understanding of each individual role and how it impacts the overall project gives you a more informed perspective on what you can expect of each person.

You can look to a good broker to serve as your risk management advisor . At renewal time, he or she will be able to explain differences in coverages a n d c o s t i n t e r m s t h a t m a k e s e n s e t o y o u . Yo u c a n also expect sound, objective advice on the perils, as well as the potential beneﬁts of changing carriers etc.

7. Demonstrate consistent leadership

Build a Website- When your potential clients decide that they want to proceed with a project, the ﬁrst thing they do is click over to Google. They search for local architects and review their websites before deciding on a shortlist of ﬁrms to contact. If you do not have a website, you essentially don’t exist.

Building trust with your team is an important part of being a good manager. One of the best ways to show that you are trustworthy and earn respect from others is to be consistent in your behavior. When you say that you are going to do something, follow through every time.

8. Provide positive reinforcement Positive reinforcement is a highly effective management technique where you reward people who demonstrate excellence in the workplace. Be vocal when you notice someone producing quality work and encourage team members to celebrate one another's success.

The AIA additionally has a document containing potential questions to ask your broker when in the interview process which you can ﬁnd here:

Build a List- With a blog and website set up, your ﬁrst task must be to start an email list. Offer visitors something of value, such as a newsletter, short ebook or guide in exchange for their email address. You can use this list to connect directly with the people who are interested in you and your services.

9. Give honest feedback Good managers are able to be tactful and direct with their team when giving both praise and constructive criticism. To get the most out of others, you must be honest about their strengths and weaknesses, identify when their work is not up to standard and strategize on ways to improve.

https://theaiatrust.com/resource/ﬁnding-a-broker/

Don’t be picky- You need to focus on building a portfolio in order to establish yourself in the industry, take all the smaller projects and both learn and grow, as well as make those client relationships strong and get your name out there in your community.

10. Actively resolve conﬂicts While your professional relationship with each individual on your team is an important part of management, you also need to be aware of how team members interact with one another. Interpersonal or professional conﬂicts between team members can slow down production and cause miscommunications across the entire team.

As a startup founder, you can also improve your approval odds by drafting a comprehensive business plan. This can demonstrate to lenders that the business is ﬁnancially stable enough to repay its debts based on future revenue and expense projections.

WORL D

licensed

Find an insurance broker:

The exact documents required to get a business loan vary by lender. However, there are some documents that most lenders use to assess and verify an applicant’s identity and a business’ existence. For example, lenders often request tax returns going back at least two years, as well as ﬁnancial records like bank statements, accounts receivable, credit card sales and outstanding invoices from the past four months—at a minimum.

????

SELECT ONE:

LLC

4 .

Many small business owners opt for ﬁnancing through traditional banks and credit unions. However, there are several types of business ﬁnancing that can help startups get off the ground. Common types of startup business loans include:

IN CONCLUSION: AS AN EFFICIENCY-BASED FIRM, YOU ARE

“for m

2. Get to know your team

1 . E v a l u a t e W h a t K i n d o f L o a n Yo u N e e d

Rather than rely on personal relationships and traditional business development and marketing strategies, these ﬁrms rely on their reputation and their innovations to drive new businesses. Design awards, publications, research, and their portfolio is what sells their services and attracts new clients. This also requires continual education to maintain your expertise and reputation in the ﬁeld.

You are looking for a large quantity of projects that you can deliver seamlessly.

S T E P S I X.

RIS K

are

4. I nf ra s tructure a nd offi ce s up p l i es l i ke co m p u t e r s , s o f t w a re a n d p lo t t in g m a c h in e s a l ong w i th other eq ui p m ent to s up p ort y o u r o p e r a t io n s a n d m a r k e t in g .

SELECT ONE:

E F F I C I E N C Y- B A S E D

T h e a rc h i t e c t ’ s re g i s t r a t i o n f e e a n d t h e ﬁ r m ’ s re g i s t r a t i o n f e e t o t h e A I A .

2 . R e n t i n g o r b u y i n g a n o ffi c e s p a c e f o r t h e ﬁ r m . T h e c o s t m a y v a r y o n t h e s i z e , l oca ti on, a m eni ti es etc.

H o w will you deliver projects while being proﬁtable?

“ BU S I N E S S

M I T I G AT E

N O

$ $

you

S T E P S E VE N.

H o w will you acquire new clients ?

THE

3 .

...assuming

4. Research and Compare Lenders

11. Ask for input

Depending on your personal and business qualiﬁcations, you may qualify for a startup loan through multiple lenders. To identify the best startup business loans for your needs, consider these factors when comparing lenders:

Just as it is important for you to give clear, constructive feedback to your team, it is also critical for you to seek out feedback about your management skills.

Annual percentage rates. In general, business loan APRs start around 9%, but rates may be

S O L E P RO P R I E T O R S H I P

12. Allow for ﬂexibility

higher for startup business loans, and they can even be lower for the most qualiﬁed applicants. Visit each lender’s website or contact a customer support representative to determine available APRs.

Build a culture of mutual respect by being ﬂexible with how team members accomplish their responsibilities. Giving people freedom in areas such as dress codes or how they decorate their personal space can help them enjoy their work more and become more productive.

Fees and other costs. Business lenders often charge origination fees ranging from 3% to 5%

T H E B U S I N E S S F O R M AT I O N D O C U M E N T S Y O U

B O T H L L C ’ S A N D C O R P O R AT I O N ’ S W I L L R E Q U I R E Y O U T O F I L E B U S I N E S S F O R M AT I O N D O C U M E N T S W I T H I N T H E S TAT E Y O U A R E PRACTICING. -

An LLC is a business entity that’s created by ﬁling paperwork with your state. An LLC can have one owner (known as a “member”) or many owners. ▪ Each member owns a percentage, or “membership interest” in the business.

By default, single-member LLCs are taxed in the same way as sole proprietorships. But an LLC can also elect to be taxed as an S Corporation or a C corporation. This tax ﬂexibility allows LLC owners to choose the most cost-effective tax structure for their particular business. For some businesses, the corporate taxation option is a major reason to form an LLC.

Shares in a corporation are far easier to transfer than ownership interests in an LLC. This makes a corporation appealing for a business owner looking for outside investors.

Corporations operate with a much stricter management structure, with a board of directors overseeing the business and officers who manage daily operations. Shareholders must meet at least annually. Paperwork and record-keeping for shareholder and director meetings is extremely important with corporations.

evaluate its reputation among current and past borrowers

Lead by example and show your team that you hold yourself to the same standards that you expect of them. Even if you have more ﬂexibility in your workload as a manager, it is important to show that you are a team player by abiding by the same deadlines and expectations you set for the rest of your team.

5 . S u b m i t Yo u r A p p l i c a t i o n

14. Host frequent check-ins

Once you choose a lender, familiarize yourself with its application process and make sure you compiled the correct documentation. Application and underwriting processes tend to vary by lender, so look into whether you can apply online or via telephone—or if you’ll need to visit a branch.

Schedule regular group and one-on-one meetings to assess the progress of each person you manage. High-performing employees may have trouble voicing when they are overwhelmed, so it is important to take the initiative as a leader to ask about their workload and any challenges they might have experienced.

Lender reputation. Even if a lender looks good on paper, take time to read online reviews to

A sole proprietorship is an unincorporated business that’s owned by the individual running it. A sole proprietorship is the default choice for anyone who runs a business but hasn’t set up another formal business structure like an LLC. As a sole proprietor, there’s no separation between your personal and business assets and expenses. You are personally responsible for all your business’s debts and obligations.

A sole proprietorship can only have one owner. If you take on a business partner, your unincorporated business will become a general partnership.

Individuals that do a lot of contractual work, such as freelancers, consultants and personal trainers often choose to ﬁle their taxes as sole proprietors. This is the easiest way to go if you’re just starting out or you’re not yet making enough proﬁt to justify the costs of an LLC.

There are two ways a corporation can be taxed. By default, corporations are C corporations. They ﬁle a corporate tax return and pay corporate taxes. If the shareholders take distributions from the company, they’ll report those distributions on their personal tax returns (along with any company salary they receive) and pay personal income taxes on them. Some corporations can avoid this double taxation of distributions by electing to be taxed as an S corp. S corps don’t pay corporate income tax. Instead, the company’s proﬁts pass through to the shareholders’ personal returns and each shareholder pays individual taxes on their portion. To be eligible for S corp. taxation, a corporation must have 100 or fewer shareholders and meet additional ownership requirements.

LLCs can be managed by their members (owners), or they can be managed by one or more managers, with the members acting more like passive investors. The people running an LLC–whether members or managers– don’t have to adhere to traditional roles or titles like CEO or Vice President, but can create a management structure that works for their business needs.

13. Meet your own expectations

D E P E N D E N T S O L E LY O N S TAT E R E Q U I R E M E N T S .

A corporation is different from an LLC in that corporate owners are known as “shareholders” whose ownership percentages reﬂect the number of shares of company stock they own. It’s relatively easy for a corporation to authorize additional shares, or for shareholders to transfer their shares to someone else.

LLCs aren’t tied to one particular tax classiﬁcation and can be taxed as sole proprietorships, partnerships, C corporations or S corporations. Once formed, an LLC has its own legal identity that’s separate from you, the owner. Because of this, a business creditor cannot legally go after your personal assets if your business is sued or unable to pay its debts. Additionally, an LLC’s bankruptcy is considered separate from the owner’s. If you have employees, an LLC can also help shield you from liability for your employees’ actions.

A R E R E Q U I R E D T O F I L E VA R Y A N D A R E

In general, corporations have a more standardized and rigid operating structure and more reporting and recordkeeping requirements than LLCs and Sole Proprietorships.

of the total loan amount to cover the costs of handling paperwork and verifying application information. Others also charge prepayment penalties for borrowers who pay off their loans early or late payment fees for those who miss their due date. These fees can increase the overall cost of borrowing, and some lenders eliminate them to remain competitive.

Ref erring to the cos t of ﬁling the pa perwork tha t c om es with a n L L C

All sole proprietors are self-employed. You’ll list your business income and expenses on Schedule C of your personal tax return and you’ll pay personal income tax on your proﬁts. You’ll also be responsible for paying your own Social Security and Medicare taxes, otherwise known as “self-employment taxes.”

(ONCE STEP 6 IS COMPLETE- HEAD TO STEP 7.)

H ARD DE CIS IO NS AND

DOES NOT PROTECT FROM PERSONAL LIABILITY FOR PA P E R W O R K . A s a s ol e p rop r i et or , t h ere’s no se paratio n be twe e n yo u and yo ur busine ss. Yo u’re no t

F o r c o r p o r a t i o n s , a d d i t i o n a l d o c u m e n t a t i o n n e e d s to b e m a i n t a i n ed a s w el l . Th i s i n cl u d es cor p or a t e m i n u t es , d et a i l s on

ob l i g a t ed t o s ep a r a t e y ou r pe rso nal and busine ss bank ac c o unts and c re dit c ard s. Ho we ve r ,

a n n u a l s h a re h o l d e r m e e t i n g s , a n d i n f o r m a t i o n o n i t s b o a rd o f d i re c t o r s .

op en i n g u p a d i ff eren t ch ecking ac c o unt fo r yo ur busine ss will make it e asie r to ide ntify b u s i n es s exp en s es w h en i t co me s time to ﬁle yo ur taxe s.

o f b u s i n e s s e s m u s t m a i n t a i n a re g i s t e re d a g e n t a n d u p d a t e t h e a g en t i n for m a t i on on ﬁ l e w i t h t h e s t a t e a s n eces s a r y .

Business credit cards let business owners access ﬁnancing on a revolving, as-needed basis. Funds can be used for a wide range of

M o s t s t a t e s re q u i re L L C s a n d c o r p o r a t i o n s t o ﬁl e a n a n n u a l rep or t or fr a n ch i s e t a x rep or t s t o m a i n t a i n a n a ct i ve s t a t u s . T h e a n n u a l re p o r t f o r m w i l l a s k y o u t o e n s u re y o u h a v e u p d a t e d i n f o r m a t i o n p e r t a i n i n g t o y o u r b u s i n e s s a n d y o u w i l l

IN CONCLUSION: A SOLE PROPRIETORSHIP MIGHT BE BEST FOR

BUSINESS ENTITY AS AN LLC, BUT THAT EXTRA $ AND WORK

ADHERING TO A COMPLEX OPERATING STRUCTURE AND TAKING

YOU IF YOU ARE STILL FIGURING OUT HOW LARGE YOU WANT

GIVES YOU PROTECTION ON YOUR PERSONAL FINANCIAL AND

YOURSELF PARTIALLY OUT OF THE DRIVERS SEAT. YOU ARE

YOUR BUSINESS BECOME. MAYBE YOU ARE CREATING YOUR

LEGAL LIABILITY. YOU ARE FREE TO CREATE THE MANAGEMENT

CREATING A CORPORATION BECAUSE YOU NEED INVESTORS-

FIRM AT FIRST IN A MORE FREELANCE-BASED MODEL AND YOU

STRUCTURE YOU WISH HAVING BUSINESS PARTNERS, OR NOT, AS

MAYBE YOU’VE DESIGNED A PRODUCT AND NEED CAPITAL TO

ARE WORKING TO GAIN CLIENTS AND NOT TAKE ANY MAJOR

WELL AS YOU CAN RESEARCH THE BEST WAY TO SET UP YOUR LLC

PRODUCE THAT PRODUCT, ETC. A CORPORATION IS A LOT OF

LEAPS IN YOUR ENTREPRENEURSHIP- A SOLE PROPRIETORSHIP

FOR TAXATION (SPEAK WITH AN ACCOUNTANT) AND THERE ARE

WORK IN PRODUCTION TIME AND DAY-TO-DAY TASKS TO UPKEEP

COULD WORK. THIS COULD WORK IF YOU HAVE A SECOND JOB

A MYRIAD OF OPPORTUNITIES TO SET UP YOUR BUSINESS IN

THE FILING OF THE BUSINESS, SO THIS NEEDS TO BE ABLE TO GET

OR A SPOUSE WHO PROVIDES ADDITIONAL INCOME OF

DIFFERENT WAYS WHICH BEST SUIT YOU. ALL OF THIS THOUGH,

DONE VIA MULTIPLE EMPLOYEES. ESTABLISHING A

INSURANCE BENEFITS. LEGALLY AND FINANCIALLY YOU ARE

COMES AT AN UPFRONT FINANCIAL COST.

CORPORATION IS OFTEN SOMETHING YOU GROW INTO WHEN

TAKING ON A LL THE RISK HERE, BUT YOU AREN’T YET JUMPING

YOU ARE READY TO GREATLY EXPAND AND BRING IN A LOT

INTO THE RESPONSIBILITY OF RUNNING AN LLC. KEEP IN MIND

MORE $.

THIS MEANS TAXES, ETC. FALL TO YOUR BOOK KEEPING, AND YOU STILL MUST PRODUCES CERTAIN DOCUMENTS STATE-TO-STATE TO PRACTICE

HOW TO FILE AN LLC:

H O W T O F I L E A C O R P O R AT I O N :

1. DECIDE ON A BUSINESS NAME

1. CHOSE A CORPORATE NAME

It’s important to choose the right name for branding purposes, your business name must also meet state law requirements. In general, state laws won’t allow you to choose a business name that’s already being used by another business in your state. You'll probably need to include some version of “LLC” or “limited liability company” at the end of your business name.

Your corporate name can not be the same or similar to an existing name in the Secretary of State’s records. You can do a free preliminary check on the availability of a name through the Business Search database.

HOW TO “FILE” A SOLE PROPRIETORSHIP:

A registered agent is someone who receives official or legal documents (such as subpoenas) on behalf of the LLC. Once received, the registered agent will then pass on these documents to the person in charge of the LLC. Anyone who is at least 18 years old can be a registered agent—and you’re allowed to name yourself or an employee.

3.GET A COPY OF YOUR STATE’S LLC AR TICLE OF ORGANIZATION FORM. Each state will list its speciﬁc requirements and procedures for those trying to form an LLC.

4.PREPARE THE LLC AR TICLE OF ORGANIZATION FORM.

Your corporation is legally created by filing Articles of Incorporation. Your articles must include: the corporate name; the corporation's street address and mailing address if different; the name and street address of an agent for service of process (not a post office box address); and the number of shares the corporation is authorized to issue. The articles on the Secretary of State's website include a broad purpose statement. You must include the Mail Submission Cover Sheet when you file your articles. Filings can only be done by postal mail or in person and there is a $100 filing fee.

3. APPOINT A REGISTERED AGENT In Many states, it is required to appoint your department of state as your registered agent, for example every New York corporation must appoint the New York Department of State as its registered agent for service of process in the state. The Department will accept and forward legal papers on the corporation's behalf if it is sued.

S IOU AL IA OBV ANC FOR N FIN CKY IC W R M T O TTO RE AT A O T B P E THE E THES TTEM S. A T TO R TH E N O G F O S TED I K. REA RIS EN EJEC H R GAL T E E L AT WER AND T TH OU REC LY. HY Y COR IATE OF W OPR T TO S R P IR I F AP N D A R A LO ORW VE F MO

5. FILE THE AR TICLES OF ORGANIZATION. You’ll also need to pay a ﬁling fee, which varies depending on the state where you’re forming your business. When your formation documents are approved, you’ll be issued a certiﬁcate by the state to indicate your LLC is formally registered.

6 . C R E AT E A N O P E R AT I N G AG R E E M E N T . An operating agreement contains the details of the financial, legal and management rights of all members of the LLC. More specifically, it can include how profits will be distributed, how members leave the LLC and who contributes capital for the business. In essence, it should contain all relevant information pertaining to the operations of your LLC.

Bylaws are an internal corporate document that set out the basic ground rules for operating your corporation. They are not ﬁled with the state. Your corporation is not legally required to have corporate bylaws, but you should adopt them because they (1) establish your corporation's operating rules, and (2) help show banks, creditors, the IRS, and others that your corporation is legitimate.

loan. Not only is the application process often less rigorous than for business loans, but personal loan qualiﬁcation requirements are also generally less robust.

STEP EIGHT. And, while loan amounts may be lower than those available through business lenders, qualiﬁed applicants may qualify for lower APRs with a personal loan than a business loan—as low as 3% for the most creditworthy applicants. These characteristics make personal loans an excellent option for startups without established revenue or ﬁnancial projections. However, some personal loan lenders don’t allow borrowers to use funds for business purposes, and borrowers are personally liable for repaying personal loans—though this is also the case for many business loans. Finally, commingling business and personal loan funds can complicate bookkeeping, tax and le legal matters.

A sole proprietor may use his or her own given name or may use a trade name. If you plan to use an assumed name or trade name, state law requires that the name be distinguishable from the name of another company currently on record.

You’ll need to ensure your business remains in good standing with your state. . Again, refer to your state’s business filing website to look up current information on how to do so. You may need to file an annual report that updates information pertaining to your LLC and pay an annual filing fee.

Know When Yo u Can afford to Hire People No w t h a t y o u h a v e e st a b l i sh e d t h e a d d i t i o n a l m a n a g e m e n t sk i l l i t w a s t a k e t o r u n a t e a m , y o u n e e d t o re v i e w w h e n t h e b e st t i m e t o b r i n g o n e m p l o y e e s i s ﬁnancially.

“how much does an employee cost?”

2. FILE A FICTITIOUS BUSINESS NAME If you use a business name that is different from your legal name, many states require you to file a certificate of fictitious business name.

3. OBTAIN ANY NEEDED LICENSES, PERMITS, OR ZONING CLEARANCES NEEDED FOR BUSINESS ACTIVITIES. Your business may need to obtain business licenses or professional licenses depending on its business activities. For Example, New York provides a comprehensive website of every profession and occupation that requires a license by any sole proprietorship. A business can obtain this information by going to New York's Online Permit Assistance and Licensing.

4. OBTAIN AND EMPLOYER IDENTIFICATION NUMBER. This is a nine-digit number issued by the IRS to keep track of businesses. All businesses with employees are required to report wages to the IRS using their EIN. Registering for an EIN can be done online at the IRS website.

S T E P F I V E . Ma na g e Yo u r B u s i ne s s ’ s Fin an c e s C o n t in u o u sly Ma na g i ng your b us i nes s ﬁ n a n c e s is im p o r t a n t f o r c re a t in g a s t a b le ﬁnancial future in which your company is less likely to fail. Tips to keep i n m i nd throug hou t r u n n in g y o u r b u s in e s s in c lu d e :

5. APPOINT DIRECTORS AND HOLD FIRST BOARD MEETING The incorporator—the person who signed the articles—must appoint the initial corporate directors who will serve on the board until the first annual meeting of shareholders (when the board members who will serve for the next term are elected by the shareholders). The incorporator must fill in an "Incorporator's Statement" showing the names and addresses of the initial directors. The incorporator must sign the statement and place a copy in the corporate records book. The statement need not be filed with the state.

1. Pay yourself FAIRLY. You want to ensure that your business and personal ﬁnances are in good shape.

2. Invest in growth.

The first meeting of the corporation's board of directors should be held to appoint corporate officers, adopt bylaws, select a corporate bank, authorize issuance of shares of stock, set the corporation's fiscal year, and adopt an official stock certificate form and corporate seal. The directors' actions must be recorded in corporate minutes prepared by the incorporator or any of the directors.

In addition to paying yourself, it’s important to set aside money and look into growth opportunities. This can allow your business to thrive and move in a healthy ﬁnancial direction.

6. ISSUE STOCK 7.KEEP YOUR LLC ACTIVE

Get your work published – Working with architectural journals and magazines and getting them to feature your projects will also bring a lot of exposure to your work and increase engagement.

1. CHOSE A BUSINESS NAME

4.PREPARE CORPORATE BYLAWS

Basic information you’ll need to provide includes: -Your business name -The address of your principal place of business -The purpose of the business -The way your LLC will be managed -Contact information for the registered agent(and in some states, the agent’s signature) -The duration of the LLC When that’s complete, one or more business owners or organizers will need to sign the form.

Exhibit your work at trade shows – Trade fairs are a very effective way of impressing people by showcasing your work. Start a Newsletter – The current industry is well known for using newsletters or digital communication as a way of developing new connections and contacts.

Personal Loans for Business Startup founders who are unable to qualify for a business loan may have better luck applying for a personal

2. FILE CER TIFICATE OF INCORPORATION 2. DESIGNATE A REGISTERED AGENT

Speaking in seminars and workshops – Architects are often known to collaborate with various clients and vendors in seminars. Events like these allow you to meet potential clients and other people from the industry who can help you get design projects. A strong and bold speaker always attracts people..

GO BACK T O

purposes—including everything from buying furniture and other office supplies to larger purchases like equipment—and the application process is more streamlined than for business loans. Because lending decisions are based solely on the borrower’s personal credit score, it’s often easier to qualify for a business card than a loan.

h a ve t o p a y a ﬁl i n g f e e . So m e s t a t e s re q u i re t h i s t o b e com p l et ed ever y ot h er y ea r .

IN CONCLUSION: AS A CORPORATION, OFF THE BAT YOU ARE

Develop a networking group – As discussed, networking and getting references is an integral part of starting an architectural ﬁrm. It helps in building strong and long term connections that can often result in collaborative work opportunities.

WH E N YO U CO NS IDE R TH E ENVIRO NME NT YO U ARE CRE ATING AND H IRE T H E TE AM TH AT WILL S U P P O R T THAT P RACTICE AND TH E RO LE S WH ICH WILL DE VE LO P WITH IN IT.

L L C s a n d c o r p o r a t i o n s a l s o n e e d t o m a k e req u i re d ﬁl i n g s a n d re p or t s t o s t a y i n g ood s t a n d i n g w i t h t h e s t a t e. B ot h t y p es

IN CONCLUSION: AS AN LLC YOU ARE PAYING TO FILE YOUR

C o n si d e r :

ST EP ON E

If you don’t have time to improve your credit score or build your business before reapplying for a business loan, consider an alternative form of ﬁnancing.

To m a i n t a i n t h i s l i a b i l i t y p ro t e c t i o n , b o t h c o r p o r a t i on s a n d L L Cs s h ou l d a l w a y s k eep b u s i n es s a n d p er s on a l ﬁ n a n ces s e p a r a t e . Ow n e r s s h o u l d s i g n d o c u m e n t s a n d c o n t ra ct s on b eh a l f of t h e com p a n y , n ot i n t h ei r ow n p er s on a l ca p a ci t y .

L i k e a l l b u s i n e s s e s , y o u w a n t t o g ro w - o n c e y o u r ﬁ r m s p o r t f o l i o e x p a n d s y o u w a n t t o g e t t h e w o r k o u t t h e re a n d w o r k t o w a rd e x p a n d i n g y o u r n e t w o r k a n d c l i e n t e l .

I N MANY S ITUATIO NS WITH IN BE ING TH E O WNE R O F AN ARCH ITE CTU RE FIRM, E S P E CIALLY IN ITS E ARLY, S MALL DAYS , YO U ARE H R. BE RE ADY TO MANAG E AND MAKE

If you’re rejected for a startup business loan, there are a number of things you can do to fund your new business. Start by contacting the lender directly to find out why your application was rejected. This information can provide insight into changes you can make to improve your credit profile and future approval odds. Then, continue to develop your business’ finances until it is established enough to qualify for a startup business loan or other financing.

B U S I N E S S O B L I G AT I O N S , B U T R E Q U I R E S L I T T L E - T O - N O

Ke e p t h e Wo r k !

6 . Wa i t t o H e a r B a c k .

What If I’m Rejected for a Startup Business Loan?

B O T H L L C ’ S A N D C O R P O R AT I O N ’ S P R O T E C T C O M PA N Y O W N E R S F R O M P E R S O N A L L I A B I L I T Y F O R B U S I N E S S O B L I G AT I O N S .

S TE P TE N .

3. Don’t be afraid of loans.

Issue stock to the shareholders in return for their capital contributions. Shareholders can contribute cash, property, services, or all three. Although not legally required in most states, small corporations usually issue paper stock certiﬁcates.

Loans can be scary. They can lead to worrying about the financial repercussions that accompany failure. However, without the influx of capital you obtain from loans, you may face substantial challenges when trying to purchase equipment or grow your team. You can also use loan proceeds to boost your cash flow and thus face fewer issues paying employees and suppliers on time.

7. FILE STATE BIENNIAL STATEMENT This varies from state to state- but in some context, corporations must file a Statement of Information with the Secretary of State within 90 days after filing the Articles of Incorporation, and every year thereafter during the applicable filing period.

8. COMPLY WITH OTHER TAX AND REGULAT ORY REQUIREMENTS. Research within your state and ensure all documentation is being carefully preserved for tax season etc.

4. Keep good business credit. As your company grows, you may want to purchase more commercial real estate, acquire additional insurance policies and take out more loans to facilitate all these pursuits. With poor business credit, getting approval for all these transactions and acquisitions can be more difficult. To keep good credit, pay off all your debt funding as soon as possible.

There’s more to having an employee than to just pay the salary.

Y O U H AV E C O M P L E T E D E V E R Y S T E P W I T H I N T H E

The company also should pay mandatory costs such as: tallying up the salary, taxes, retirement contributions, additional licenses, bonuses, software expenses, and other variable costs needed in order for the employee to work efficiently.

C O N S I D E R AT I O N S O F S TA R T I N G Y O U R O W N

Ask yourself- can you be a competitive firm and give your employees health benefits and assist them in their licensure? If not, how many employees do you really need and what can you offer them? Evaluate what competitors are doing at their firms for their employees and don’t take advantage of your team. You want to cultivate a positive, hardworking office, and if you can not afford to meet your employees needs- pump the breaks and go back and evaluate step 1 and step 5. What type of office and team structure are you cultivating- what is the best structure of that office, and can you afford it with the revenue you are bring in?

F I R M F R O M S C R AT C H . I T ’ S I M P O R TA N T T O N O T E T H AT T H I S I S A N E V E R - E N D I N G J O B B E I N G T H E B O S S A N D Y O U W I L L C O N S I S T E N T LY H AV E T O U P K E E P D O C U M E N TAT I O N A N D R E F E R B A C K T O THIS GUIDE AS WELL AS OTHER RESOURCES TO ENSURE A LONG AND PRODUCTIVE BUSINESS VENTURE. DON’T BE AFRAID TO ASK FOR HELP

According to the Small Business Association, “there’s a rule of thumb that the cost is typically 1.25 to 1.4 times the salary, depending on certain variables”. So, if you pay someone a salary of $35,000, your actual costs likely will range from $43,750 to $49,000.

AND RESEARCH AS MUCH AS YOU CAN BEFORE L A R G E D E C I S I O N - M A K I N G . I T M AY S E E M

You can ﬁnd a calculator to assist you with calculating this here:

D A U N T I N G M O V I N G T H R O U G H E A C H S T E P, B U T

https://goodcalculators.com/cost-per-hire-calculator/

IT IS POSSIBLE AND EVEN WITHOUT INITIAL

5. Have a good billing strategy.

STEP TH REE. Register your fir m with the Council of Architecture in your country. Th is is fairly self-explan atory . Th is is n ot always 100% necessary , bu t it is smart take advan tage of th e A IA ’ s resou rces an d n etworkin g wh en you get started, an d depen din g on th e work you wan t to receive it’s n eces s a ry t o reg i s t e r y o u r fi r m t h i s w a y . I n t h e U n i t e d S t a t e s t h i s w o u l d m e a n reg i s t e r i n g y o u r fi r m w i t h t h e A I A a n d t h e procedu re is as follows:

Every business owner has a client that is consistently late on its invoices and payments. Managing small business ﬁnances also means managing cash ﬂow to ensure your business is operating at a healthy level on a day-to-day basis. If you’re struggling to collect from certain customers or clients, it may be time to get creative with how you bill them.

6. Spread out tax payments. If you have trouble saving for your quarterly estimated tax payments, make it a monthly payment instead. If you have trouble saving for your quarterly estimated tax payments, make it a monthly payment instead

7. Monitor your books. -

G o t o h t t p s : / / j o i n u s . a i a . o rg / ﬁ r m s / Fi l l o u t a n i n t e re s t f o r m . Get in contact with y our A IA cha p ter and register .

This is an obvious practice, but a very important one. Do your best to set aside time each day or month to review and monitor your books, even if you’re working with a bookkeeper. It will allow you to become more familiar with the ﬁnances of your business, but also provide you with a window into potential ﬁnancial crime.

8. Focus on expenditures but also ROI. Measuring expenditures and return on investment can give you a clear picture of what investments make sense and which may not be worth continuing.

9. Set up good financial habits. By doing so you will recei v e A IA materials and support f or p rofessi ona l development, networking , l i censure support, leadership train i ng , ed uca ti on opportunities, and business resources—everything they need to achieve their career goa l s a nd y our business goals. Whether you’ re a sole pra cti ti oner , or a n international firm with thousands of employees, AI A offers yea r-round benefits and engagemen t op p or tuni ti es f or your entire staff—f rom new g r a d ua tes t o e s t a b l i s h e d a rc h i t e c t s a n d fi r m principals.

(ONCE STEPS 1-3 ARE COMPLETE- HEAD TO STEP 4.)

Establishing internal financial protocols, even if it’s as simple as dedicating set time to review and update financial information, can go a long way in protecting the financial health of your business. Keeping up with your finances can help you mitigate fraud or risk.

10. Plan ahead. It goes without saying that there will always be business issues that need to be addressed today, but when it comes to your ﬁnances, you need to plan for anything and everything.

(ONCE STEPS 4-5 ARE COMPLETE- HEAD TO STEP 6.)

C A P I TA L O R P R O J E C T S L I N E D U P - Y O U C A N D O (ONCE STEPs 7-8 IS COMPLETE- HEAD TO STEP 9.)

IT!