Everything You Should Know to Set Up Your Architecture Business

How can I start my architecture business? How much money do I need? What are the right tools?

Setting up a business in the architecture industry is no small task, and it raises many questions like these. Not to mention that it’s rather challenging to survive the competition with over 607,000 architecture-related firms worldwide.

This comprehensive guide is for anyone who wants to launch an architectural firm but doesn’t know where to begin, what instruments to use for building, and how to stand out from the crowded market. It will walk you through every step: choosing a business type, planning, budgeting, hiring a team, managing projects, branding, showcasing your brand with portfolio projects, and legal documentation.

Additionally, you’ll get tried-and-tested tactics to draw your first clients to your company.

So, let’s begin.

Types of architecture businesses

Which architectural business structure and type is best for you?

First, check the options you can pick from.

By size, your company can be one of these:

• One-person venture run by a sole practitioner
• Family-owned business
• Micro-studio (from two to five workers)
• Small-sized business (10–50 employees)
• Mid-sized company (50–250 workers)
• Large business (250+ employees)

For instance, Brenda Kuo Pfeiffer, the founder of a residential architecture firm, Kuo Studios, started as a solopreneur. Then, her company evolved into a small family business, as she took her two daughters and son on board.

Source: KUO Studios

Then, there are companies characterized by an architectural service type:

• Commercial
• Landscape
• Sustainable/green
• Industrial
• Conservation and restoration
• Urban, etc.

Let’s take Ziegler Cooper Architects as an example. The firm emerged as an urban architecture studio, primarily focusing on urban residential design. But later, it developed into a multi-faceted business, offering workplace interiors and other services.

After you have determined the type of your company, you can move on to the next stage – planning and developing.

A step-by-step guide to setting up an architectural firm

Just six steps – and you’re there, running your architectural business.

1. Prepare a business plan and a budget

Building an architecture company is one massive project if you think about it. And, as you know, any new project begins with a solid plan.

That is why you need to write an architecture business plan. It should include the following:

• Executive summary: a company intro and a short overview of each strategic part of your business plan.
• Business description and vision: owners, values, goals, etc.
• Market definition: targeted audience, competitor analysis, industry trends, and growth potential.
• Organization and management: organizational structure, leadership roles, operational process, equipment, and technologies.
• Products and services: all architectural services your firm offers, such as HR or invoicing software for small businesses.
• Sales and marketing strategy: service prices, unique offerings, social media advertising, content marketing, email marketing, etc.
• Financial highlights: operational costs, revenue targets, overhead budget, etc.

Concerning the last point, Anthony Martin, Founder and CEO of Choice Mutual, says, “The core of any financial plan is defining your financing needs. The average cost of establishing an architecture firm varies dramatically from $5,000 to $100,000. It depends on several factors: business registration and insurance, licensing, salaries, office design, software, branding, marketing, etc.”

Don’t forget to calculate additional expenses on talent plans like benefits packages or workers’ compensation payments in case of workplace injuries.

2. Gather a team of professionals

Of course, you can start an architecture business alone as a solopreneur.

But if you want to hire a professional team, take a strategic approach to recruitment. You can follow this tactic from Max Wesman, Founder & COO of GoodHire, “When recruiting licensed architects and designers for your architectural firm, it is better to break the process into three stages: finding, testing, and hiring.”

Here’s a sketch of the process suggested by Max Wesman:

• Where and how to find → job boards, referrals, recruiting agencies, social media outreach, portfolio websites for architects (Behance, Dribbble, Coroflot, etc.)
• What to test  →  hard skills (technical drawing, architectural rendering, building codes, etc.) and soft skills (communication, problem-solving, attention to detail, creativity, project management skills, etc.)
• How to hire  → screening and background check, portfolio review, interview, internship (optional)

You may opt for a freelance or remote team. Co-lab Architecture, for instance, has a team of collaborators who work remotely from various places.

Source: Colab Architects

3. Arm your team with tools

Grab this list of tools and software you definitely need when starting your architecture business:

• For architectural design and modeling – ArchiCAD, Tekla Structures, Chief Architect, Vectorworks, 3D Studio Max
• For project management (PM) – Paymo, Asana, Wrike, or other PM software for architects
• For timekeeping – Paymo, Time Doctor, Harvest, Toggle Track, or other time-tracking software for architects
• For invoicing – Paymo, Invoice Ninja, Zervant, Hiveage
• For accounting – QuickBooks Online, FreshBooks, Xero
• For client surveys – JotForm, Typeform, SurveyMonkey
• For communication – Slack, Mattermost, Chanty

As project management is among the top concerns for architects, 40% of architecture firms plan to invest in PM software.

Do you also want your projects to fly like rockets?

One of the best PM tools for architects, Paymo has a complete package of all the necessary features to speed up your architecture business: timesheets, commenting and file proofing, Kanban boards, invoicing, and guest access for clients to preview the work. Paymo is ideal for teams and businesses up to 20 people.

You can map everything out and get a bird’s eye view of your architectural projects per day, week, month, or year.

4. Design your unique brand name and logo

How can your clients recognize and remember you among the masses of other architects?

They will do so by your company name and logo design in the first place.

“Architecture companies can stand out from the crowd with their unique brand names and creative logo designs to make a strong visual appeal and a lasting impression,” says David Janovic, Founder & CEO of RJ Living. “A brand’s name and logo form an ideal tandem of graphic elements to outline a business from the visual perspective,” he adds.

Let’s discuss the two.

Brand name

If you build an architecture firm from scratch as a single owner, adding “Architects” or “Architecture” to your name is one of the most popular branding techniques. Some examples are Ben Trogdon Architects, Broderick Architects, Richard Bell Architecture, and Jenny Mills Architecture. Alternatively, you can merge co-owner surnames, like Glavé & Holmes Architecture, into the company name.

Another method is to get more inventive about your brand name. Look at these names of architecture firms: PUBLIC47, WithinTheseWalls, GO’C, or Dwellbeing.

Brand logo

As for the logo, a general rule of thumb is to align it with your brand name.

For instance, here’s a circular logo at Circle Studio.

Source: Circle Studio

Another example, Rowland+Broughton took the elements from the first letters “r” and “b” and created an original and memorable logo. You can see it on their website.

Source: R+B Studio

Speaking about websites, let’s make yours, shall we?

5. Build an attractive site

In fact, 75% of people judge a brand by its website, while 94% of their first impressions are design-driven.

“Just like the house’s façade that greets the visitor and catches the eye immediately, your website is a powerful attractor for your digital guests (your potential clients),” notes Ryan Zomorodi, Co-Founder and COO of RealEstateSkills. He advises architects to lay the foundation in website construction and design with several essential “bricks”: the main page, the story page, the services, the team page, and the portfolio.

See how different architectural brands pave the way for their clients with each “brick.”

• Homepage

On the main page of SDA (Space Design Architecture), you get immersed in interior designs thanks to videos and carousel pictures.

Source: Space Design Architecture

• Brand story

Base Architecture gives a timeline of events, titled “Our History,” from the foundation moment.

Source: Base Architecture

• Services

You can enlist what you do, similar to Architectural Dynamics Studio, featuring such services as interior design, façade engineering, store design, eco-design, and others.

Source: Architectural Dynamics Studio

• Team

At Steven Docker Associates, potential clients can meet the team and read biographies of each company worker.

Source: Steven Docker Associates

• Portfolio

KDA Architecture+Interiors (‘k—da’) is one of Paymo’s happy clients and success stories. Speaking of stories, with every project, there’s a story behind the design – scroll through the designs of this NYC boutique architecture & design firm for a showcase.

Source: k—da

Also, check out this portfolio of architectural works at Banwell Architects.

Source: Banwell Architects

You can also sort them out by type: commercial, healthcare, ski & recreation, housing, etc.

6. Get proper licenses, permits, and registrations

“When you create an architectural company, it is a must to register a firm and adhere to state-specific licensing requirements, keeping to the legal side of the business,” mentions Andrew Pierce, CEO at LLC Attorney.

He explains further that “Typically, architecture companies in the US should hold state-issued licenses before providing any services. Then, there are specific regional regulations in every state. However, all 55 US jurisdictions require architects to have accredited degrees in architecture.”

Failing to obey the rules and regulations may result in penalties or even imprisonment.

For example:

In California, architectural practice without a license is punishable with a fine of $100 to $5,000, a one-year imprisonment, or both. At the same time, one of the architects from Texas received a $200,000 penalty for 40 days of unlicensed practice.

You can use the licensing tool by NCARB (for US architects only) to check each jurisdiction’s requirements.

Source: NCARB

If you work outside the United States, double-check professional requirements for architects by country.

Note: You might also need to prepare additional legal documentation if you launch an international business in the architecture industry.

Bonus Tips: How to gain clients for your architecture company faster

Discover several sure-fire ways to get more architecture clients and projects.

1. Dive into blogging

Companies with a blog on their websites get 67% more leads than those without.

After you finish setting up your architecture firm and website, it’s time to add blog articles to your editorial calendar and provide relevant content to your audience.

For example:

Let’s peek into the blog of The Market Design & Build with categories like home improvements, garage conversions, roofing, new builds, etc. The company often answers frequently asked questions like: Is it better to add a house extension or to move home?

Source: The Market Design Build

2. Use lead magnets on your website

A lead magnet is any freebie you offer your clients in exchange for their contact information, typically an email address or a phone number.

It can be:

• Consultation
• Guide
• Report
• Case study
• Checklist
• Toolkit
• Or any other helpful resource

Let’s explore how different architecture firms use lead magnets on their sites.

Consultation

You win and retain clients more effectively by establishing direct communication when offering to consult them for free. You can use a Google calendar or any client portal software to let clients book appointments with you and manage meetings.

For example:

Below, you can see how website visitors can book a consultation with Kate Logue, the Associate Director at DS Squared Architects.

Source: DS Squared Architects

Whitepapers and free e-books

Once you open the SQM Architects’ website, you’re greeted with a free resource – a list of ways to cut costs and accelerate the project with a pro architect.

Source: SQM Architects

3. Go social

Registering social media accounts for your architecture company helps you expand your brand reach, showcase your work, and attract more clients.

How about TikTok?

It’s a superb tool to target younger generations. In fact, 62% of Gen Z users and 46% of Millennials in the US were on TikTok in 2023.

Learn from Russell M. Henderson (@architectrussell). Aside from using the most common social media platforms for architects, like Instagram, YouTube, Facebook, and Pinterest, he is an avid TikToker. Architect Russell shares informative and fun videos about architecture and design and collects millions of views.

Source: TikTok

Ready to start your architectural business?

Congrats! You’ve taken the first step in your architecture firm’s development by reading this article. This is the starting point of your exciting journey to business success in architecture.

Get going with this roadmap and a toolset in your hands. Paymo will help you take your architectural projects to the next level.

Try it out for free!