On another thread Rob asked:
Brian brought up an interesting point earlier about guys being able to "move out on their own" and handle all of the aspects of a job - including the finances. Is this a huge hill to climb for most associates?
How about associates who were "project leads" at various courses?
I would imagine the only way to see if you could do it is to give it a shot (and have someone give you a commission to work on)?
How much tougher is that first solo commission versus the second?
I think this is actually a pretty good question that deserves its own thread.
Some thoughts from my own experience:
1. The toughest part about going on your own is simply bringing in enough work. The ones that make the easiest transitions would be the ones with an existing client base. If the associate has been bringing in work and has their “own” clients they will make the easiest transition because they have an existing business. If calls come looking for the associate rather than the principle to take on a particular projects, then that person has enough of a reputation that they will likely be successful in finding new work because people know who they are despite the fact they work in a larger firm.
2. You better have some ability to financially survive without income. While some businesses get going pretty quickly, there is still a delay in having the income reach you. If you have no work, you need to get work, do the work, and then collect the fees. This cycle is pretty close to 6 months on some projects – shorter on others. You need a nest egg even if you have work, because you will need to pay not only your bills at home but the new bills the company generates. Additionally you will face all those other wonderful expenses like incorporation, equipment, and liability insurance.
3. I don’t agree with Brian about financial knowledge. Frankly common sense will get you through most things and a good accountant will steer you through the rest. Although in his defense, the more you know about finance, the better off you will be. You will spend far more time on billing and bookkeeping and other tasks than you can ever expect – running a business involves a lot of time beyond being an architect.
4. Here’s the problem with one solo commission – if you can find it – what if they don’t pay or the project gets suddenly halted. You’re in deep trouble if you are going to rely on one client. Any good business has a base. Reliance on a single client, only one aspect of the business (ie. only new courses) or one region (Florida) can place you in a precarious position. And what if you can’t find the second?
5. If you can’t write a descent proposal or report stay in a firm. I find I spend more time writing than drawing. It is the most valuable skill that I know have because it brings in work. The ability to differentiate yourself from a dozen others is paramount to surviving this era.
6. You have to be very self-motivated. Running your own business is a grind. Since you have to do everything from getting work to running the business, you are always busy doing something (that often doesn’t pay). It takes me evenings and a week-end afternoon to get everything done for nine to ten months a year.
7. You need to understand this business and the cycles and be prepared. I had essentially no work for the first four months last year, which also meant no income. Fortunately I was able to start preparing for this eventuality a couple of years ago, but I couldn’t imagine anyone starting out last year – oh wait we did – thank god he has a second job
.
I’ll be curious to other architect’s thoughts or others response to this.
It was certainly the most enjoyable thing I have ever done.
I also believe that not everyone is ready to run their own business and nobody has the right to ever chastise someone for staying an associate.