Keeping your architecture company on its feet can be difficult at times. With all the planning, mapping out the interior design of buildings, and negotiating with clients, it may seem like the responsibility never ends. That’s not even counting the financial aspect. Architect companies are known to be rather profitable businesses, but if we factor in all the expenses, saving money can be one of the hardest tasks to accomplish. But does that mean it’s impossible? Certainly not, however, saving will take an extra bit of diligence on your end to do efficiently. In this article, we’ll be covering a few ways you can save money as an architect company.
Consider Charging More for Your Services
We’re going to start off with a simple method: increasing your prices. This is probably one of the fastest ways your company can generate more revenue, which can make it easier to save money altogether. But there’s one thing you need to keep in mind; how will you inform your clients of the increased rates? If you have any long-term clients and they notice a sudden change in price, this may cause a few problems. Your clients need to know that their hard-earned money isn’t going to be wasted. Fortunately, there are plenty of ways to go about breaking the news to your customers.
A great way to keep your client’s minds at ease is to market yourself differently. Doing this requires you to be transparent, which is an essential factor when building and retaining loyalty. You need to make them believe the price increase was necessary and why it came to be. Comparing your services to those of your competitors is a great way to go about this. One thing you’ve no doubt noticed are the different rates among architect firms; some are more expensive, while others are cheaper. However, cheaper isn’t always better, especially when it comes to architecture. The price of materials, paying your employees for their hard work, and paying taxes can be very difficult to manage without the proper funds.
Become a Cosigner for a Student Loan
Did you know that cosigning on a student loan can correlate with saving money? After all, cosigning makes you responsible for another person’s financial obligation if they don’t come through. But that’s only scratching the surface of it. Proving to be a cosigner on a student loan, which can be for your child or an intern you recently hired, can help you save on taxes every year. This also applies for those who graduated with their BA degree and want to pursue a higher level of education. You can help them out by looking to a student loan refinance with a cosigner. Student loan refinancing is when someone takes what they currently owe and turn into a new a loan. This requires a little forethought and planning, but it can really help you out when tax season hits. Take your time as you weigh the pros and cons.
Expand Your Repertoire
Another way to save money for your architect company is to expand your repertoire. The more diverse your services are, the more clients you can appeal to. If you’re someone who was exclusively constructing commercial properties, you can add residential services to your company. Whether it’s for their own personal home or their real estate investment, a many are in need of a reputable residential architect. Though, it should be noted that you need to mindful of what you can add. Implementing new services into your company can cost a lot of money, so make sure to start off slow before you steadily build up over time.
Cut the Right Corners
If there’s one thing that’s difficult for any business owner, it’s cutting corners. Cutting corners is when you get rid of any unnecessary expenses or investments. When it comes to cutting corners as an architect company, you need to know which corners to cut before you can do anything. You don’t want to accidentally get rid of something that provides value to your business. One of the most common expenses you may need to part with are the products. If your supplier is giving you less than adequate products, it will show up in your projects. Architects rely on their suppliers to provide high-quality materials. However, if you have too many clients complaining about the quality, you might need to find a new supplier.
Another difficult corner to cut is the employees themselves. Everyone knows that the employees are the backbone of a company, especially for architect firms. However, your team is what ultimately represents your business as a whole. If their performance is sub-par or doesn’t reflect the quality work you promise your clients, you might have to let them go. No one wants to lay off employees, but if they’re not providing value to your company, you need to do what’s best for it. Any team member that is reported to be underperforming can be given more training and supervision if you’re still unsure. However, if any employee is caught underperforming or slacking by clients, they need to be let go immediately.