INITIAL PROFITABILITY
To be profitable (Figure 11), we’ll watch our finances, looking at innovative ideas (Scharphie. 2014) and by completing timesheets, regular project costings and budget/cost-rate calculations (Holmes, 2017). We’ll have transparent pricing frameworks, so we don’t get kickback from clients, this’ll be similar to the industry by reviewing the RIBA business benchmarking report (The Fees Bureau, 2016), which will help us compare ourselves to other practice’s profitability processes. The fee-scale will reflect the project type, work stages and community engagement required; producing profitable, competitive solutions. We’ll allow clients to invest directly into the studio and look at innovative investment strategies. Investment may come from staff, outside investors and principally crowdfunding, so not to be in the hand of a single investor. We’ll work on projects i.e. house extensions so we can afford to be morally profitable; gaining benefits from community projects which may cost us resources and money; this’ll raise our profile and attract profitable projects. Future finances shall be sound, with increased profits by raising our profile, taking on a variety of work and taking risks. We’ll reward client loyalty with reduced fees, to gain more projects. We’ll use profits to take back control from investors, whilst retaining networks for future investment, we’ll use profits to reinvest in community projects and studio assets.
£
Control of Finances (Watch our finances, looking at innovative ideas and complete time-sheets, regular project costings and budget/cost-rate calculations) Small Design Projects (Balance out lower earning community projects) Moral Profit (From community engagement and non-monetary benefits from community/NGO projects. Helps raise practice’s status. Some ProBono Work) Fee Scale (Practice Fee Scale for Type of Project/RIBA stage/s and work required.) Investors (Staff, outside investors, bank loans and principally initially crowd-funding) Patronage (Patronage and project involvement connected to investment into the studio.) RIBA Benchmarking (Use RIBA Business Benchmarking (2016) Report to help understand how to run practice.) Openess (Open pricing framework so no kickback from clients. In line with the industry.)
+
FUTURE PROFITABILITY Reward Loyalty (Loyalty of clients rewarded with lower fees to get more work, especially larger developers.) Renegotiate (Renegotiate with investors to take more control of the company, retain network of investors for future investments.) Reinvest Profits (Into community projects, probono work and studio assets.) Increase Profits (Increase Profits by raising our profile, taking on small work, taking risks and innovating as well as working on unique projects.)
MO
RA
L
& fit, ss o Pr cce th Su row G
M o Fi ral Pr nan an of c d ita ial bil ity
Figure 11: Profitability (Goacher, 2018).
Rob Goacher 17025351 MPL P30028 2017-18 Executive Summary
Page15
