A perfect storm has developed and we are taking advantage of our opportunity to be more efficient, more effective, more flexible and have more freedom.
First, A Bit of History
In 1999, we launched Fivecat Studio from a makeshift studio in the basement of our 1934 stucco cottage in the woods of Chappaqua, New York. Annmarie and I were both 29 years old, full of enthusiasm for the future and kidless. We had no clients, little money and were filled with confidence. We would be successful.
In 2003, with many accolades and a determination to take our firm to the next level, we moved out of the darkness of the basement and into a light-filled 2,000 square foot office space in Pleasantville. Our first child was 2 years old and another would soon follow. The basement had served us well, but among the sounds of babies in the background, we felt that our client base would view our home studio as a weakness; a symbol of young “wanna-be” architects.
We have been in Pleasantville for a full decade. We’ve grown to a staff of six and a revenue with seven figures. Our reputation for finely detailed residential architecture and our care for clients throughout the process of design and construction has established Fivecat Studio as a leading firm in the Westchester County region. We have attained many of the goals set within our business plan. Success is no longer a figment of our dreams, but a reality of our daily process.
But It Has Not Been Easy
In 2008, after nine years of hard work, long hours and tremendous progress, things started to change. The economy was showing signs of the approaching storm clouds.
During the five years that followed, with the storm destroying everything in its path, we shifted to “survival mode” and hunkered down. We reduced expenses, expanded our market and relaxed our focus on our target project type.
We were transparent with our situation and shared our plans for survival with our staff. Those plans included reducing hours and cutting salaries. They did NOT include reducing fees or reducing staff. We would survive, and we would do it together as a team.
Survival is Success
Today, the sun is shining. Remnants of the storm still linger, but our boards are full. The large residential additions and alterations projects in which we specialize have returned. We have refocused our marketing efforts and revenues are slowly increasing to necessary levels.
The storm has left behind much damage though. We have shifted from “survival” to “recovery” and have begun to rebuild. All but one employee has chosen through the years, to move on to other opportunities. We are once again a studio of three. With limited resources throughout the downturn, we have taken on significant debt and we are working toward “debt zero“.
We have survived and living through arguably the worst economic failure in American history, survival is success.
Every Cloud Has its Silver Lining
We now find ourselves faced with tremendous opportunity.
Throughout the past five years, while the storm was wreaking havoc upon businesses around the globe, technology continued to advance and life-changing tools, resources and platforms have evolved. In the wake of the storm, we find ourselves looking at a very different world.
Online tools such as Skype, Dropbox, Evernote and Freshbooks now allow us to work from any place offering an available WiFi connection. Business growth through remote access to staff, reduces the need for expensive office space. With a renewed societal focus on family and work/life balance, home-based businesses are no longer viewed as the domain of immature business development. Smart businesses everywhere are launching and remaining close to home.
The $3,300 per month lease for our Pleasantville studio, all 2,000 square feet of it, expires in November.
We employ one project manager and have a full roster of projects. We are blessed with many fabulous clients. It’s time for us to grow and we are presented with a very unique opportunity; a perfect storm.
Our New Chappaqua Studio
As I write this post, a new custom built studio is being constructed… at our home.
With 15 years of experience, a portfolio of target-market projects and a solid reputation, we are taking Fivecat Studio to the next level and back to where it all began. We are shifting to a new business model, available to architects only in light of the recent technological developments of the internet and its ubiquitous “cloud”.
Unlike the previous home studio, the new studio is filled with natural light, has a separate business entrance and is large enough for a limited physical staff. It comes with a high-speed broadband internet connection and an immediate $3,300 monthly increase to our bottom line.
As we grow to meet the recovering demand for our services, we will do so via the internet. Our remaining associate will have a place at the new studio, but will more often work remotely from his own private office or from his recently completed home in Montauk (with a view of the Atlantic Ocean). As we welcome additional project managers to the firm, they too will be hired locally, but will work remotely.
Staff meetings will be conducted at our new studio, at shared local office space or online via Skype. Services such as CAD drafting, computer modeling and administration will be provided by consultants located anywhere in the world. The pool of talented architects from which to align ourselves has grown from a 30 minute commute to a virtual endless list of possibilities. The many advantages from going digital will benefit our clients as well as they will benefit us.
A digital filing and archive storage system, with reduced paper consumption, will be implemented to limit the need for the massive (and expensive) storage rooms full of rolled drawings and file folders. Every aspect of the business will be evaluated and improved using new digital tools and resources.
Oscia Wilson, the founder of Boiled Architecture, calls this business structure a Distributed Model. I recently spoke with Oscia about her business on the podcast and learned how she successfully built her firm from scratch with remote access and digital connections. I believe this model is the future of small firms.
Flexibility and Freedom
The future of Fivecat Studio is bright.
With our new efficient business model, Annmarie and I will have the flexibility and freedom to pursue our growing passion for residential architecture, strengthen the fabric of our family and continue to build an enduring practice that will thrive for decades to come.
In future articles, I will document and detail the systems we will implement and update you on the progress we make with our new structure; the good, as well as the bad.
Do you use the distributed business model? Do you plan to? I would love to know your thoughts. Please share your comments below. The more we share, the stronger our profession will be.
… or just call us crazy and wish us the best : )
Yes, I operate almost totally in the cloud with Xero, Liquid Planner, Evernote, Adobe Ideas app, Quoteroller, google apps, just to name the main services used. This gives me great leverage as a sole practitioner outsourcing much of the drafting work this leaves me to focus on business development, design and project delivery.
Thanks for the comment David. How did you best find your consultants? Are they people you knew before, or did you find them online? Local? or Distant?
We are also growing but in lieu of hiring more than the three employees I currently have, we are looking to move towards a distributed business model. Can anyone recommend CAD drafting services over the cloud.
We’ve used Q-CAD for existing drawing conversions. I know they do all sorts of CAD work, but I haven’t used them for anything else. They are US based and the owner is very responsive. Next day turn-around if needed too.
David, we are currently operating in a virtual environment providing a multitude of services including construction document generation. In the very near future we will be implementing a complete virtual collaboration which enables everyone to interact no matter where they are located. Within this blog I noticed the never ending concern of mark ups going back and forth to the extend that a production service is not economically viable. The virtual environment that we implement allows full collaboration and communication with all expectations in place. Please note that with the use and level of technology a “drafter” is no longer an applicable term. We only work with individuals who understand design and construction practices, CAD industry standards, etc. If you would like to talk further please feel free to email us at bales9176@aol.com. In the very near future, our group will be launching a complete web based company providing service resources that can address all aspects of the industries process.
Hope this helps. Kevin
I’ve never been able to understand hiring a 3rd party to do the drafting part. Doesn’t that require you to draw or sketch the whole thing up first? Or do you let the drafter take a crack at some of the details and then either go with their decision or have them re-do it? I’m VERY curious to hear how all of this will work for you going forward and if there are others who’ve used 3rd party services, I’d like to know their experience. Thanks – and best of luck in your new studio!
Our plan is to work mostly with experienced architects looking to expand their services. More of a collaboration than an outsource. We haven’t finalized our plans, so that may change as we proceed.
In fact everything may change as we proceed. The entire move is an experiment.
When I was finishing up my degree in 2010, I had already purchased premium versions of Dropbox and Evernote for file storage and project management. When I started my consulting business, I got my domain name through Google
Apps bought a new laptop and an Autodesk license for Autocad and Revit. I can work anywhere with a high speed internet connection.
I am in the process of developing a methodology of project delivery in Revit. My hope is to have a seamless process of project development, from predesign to construction administration. That way consultants can work on my projects with me and all deliverable will be consistent.
Looking forward to see how things develop for you Mark. Good luck to you.
Sounds like you have a well developed process. I make want to talk as we proceed. Thanks for sharing Craig.
My process has developed greatly with your assistance and resources. Thank you very much!
I spoke with Enoch Sears the other day and he had a good point. For me, he suggested getting the the project based support person in place before doing any marketing of services. On your Linkedin group, I started a post about scheduling work and juggling projects. The conclusion was, with support staff assistance, I can focus more on project management, client communication and marketing. I also need to finish my AREs and get my license.
An alternative to the “Work From Home” model, which was never appealing to us, is to rent and build out more space than one needs, and sublet workstations at a premium. We have done this for over 20 years, in three locations, and have always enjoyed having a large office, for a modest overhead, from $0 to $1,000. It also provides flexibility as people tend to come and go a bit, so when we need more space we have it available and when times are tough we rent more desks.
Jim. I love that model. That was a plan of ours for a long time, until the economy decided to stop cooperating.
Our priorities have changed and the freedom and flexibility that a home-based studio will afford is very appealing in our current phase of life.
Congratulations on your changes, Mark! I’m lucky to have room at the front of my house for a studio, so I never even considered a separate location. I have clients, vendors, and contractors over all the time. We use it as a laboratory for testing new ideas, materials, and construction methods. If I need a larger conference room, there are plenty of trendy co-working spaces nearby that offer day passes. I committed to never having employees so I’ve always relied on contract staff when needed. My problem has been that when staff only works on a small part of the project, the quality and profitability go down. The speed of delivery only increases if I use staff on the other side of the world to take advantage of the time zone difference. So, I am now experimenting with a professional development program that trains local staff to be project managers and handle the entire project. Your recent posts pushed me to finally announce the open positions on the AIA Houston job board: https://aiahouston.org/v/job-detail/Project-Manager/gk/
I love that Spencer. Thanks for sharing. Keep me posted on your progress.
I am lucky to have a beautiful stone out building on my property that I converted to my office. Big enough for my desk and a huge conference table. There are so many advantages to being “at home” but not “in the home”. (One of which is that my 3 teenage boys are not left to their own devices. :)) I too am interested to learn how the 3rd party drafting works. I currently have two local, but remote, contract draftsman that work with me. We meet face to face when I turn the project over to them. Everything else is via phone/email/text. It works for me but I’m always looking for better ways.
As online conference tools like Skype and Go To Meeting develop, it will be easier and easier to work with remote staff.
Imagine a time in the future when internet is so fast and cheap that we can have live streaming monitors always on with staff working “side-by-side” with us, but actually based anywhere in the world. The spontaneity and support that exists in a physical open studio could happen via the internet. As technology continues to evolve, the possibilities are so exciting.
A separate stone studio is a dream we have for the future… a different studio, at a different house. We love to dream!
Hi Mark,
Congrats on new home based studio space! I’m intrigued by the remote collaboration. I’m sure there are ways to effectively achieve it. My question relates to what’s next in the process. How do you then deal with all the behind the scenes construction administration aspects and site visits when your staff is in far flung locations? I know we rely on our team to handle myriad details that come up along the way, including conversations with clients and contractors…the “hands on” elements custom projects typically demand of us. As for me, I’m always hoping that cloning will become a reality. I’m hoping for several clones, especially one that can handle it all, while the real me takes a much needed vacation! I’m always interested in your ongoing efforts to re-define how we practice our profession. All the best in your new venture!
Carol;
Some of our future remote staff will still be local, but working from their own workspaces. We’ve been experimenting a bit with John working from Montauk and it’s working well. It will all be an experiment, so stay tuned at the blog and newsletter for details. Thanks for the congrats!
See you at Expo next week.
Yahoo had a similar concept but they have recently change their model where the employees are working in the office now. There reason for making the change was because they felt that the office culture was being eroded and that they where not taking advantage of chance interaction which is important when innovating. Their competitor, Google, has stuck with the traditional model by do everything they can keep their employees on their campus and have been very successful.
I have always believed a hybrid approach would be the best way. Reduce the size of the office to the bare minimum but find ways to encourage remote employees to come into office every know and then to interact.
Hello Mark
congratulations for the new premises. smaller, more efficient and more productive and surely “greener”.
i recently split from a former ‘classical’ arch office due to a severe economical downfall combined with a rigid business strategy. i have set up a small office and hope to be able to develop a healthier more liberated design practice.
good luck to you.
Great hearing about this move on your part – I know this will work well for you. I think this distributed model is the best way for small practitioners to cope with the ebb and flow of work, as well as contribute to other practices in meaningful ways. I’ve worked with a couple of other architects in my area in this way for years. I’m always grateful when they call on me, and they are always grateful to get experienced help, so its a really ideal arrangement.
I really like the concept of the distributed model however I am in the exact opposite position right now. I started my practice in 1996 and worked from a home studio for about a year and then moved to a commercial space until 2010 when I constructed a new studio at my house. We work all over the country and have few clients in our office compared to many local practices. There are four of us who work from our Bend Oregon Studio and having work that close for a certified workaholic like me has been difficult. I am up and in the studio at 3:30am to 4am and I generally leave the office at 5-7 pm.I wonder out early Saturday morning and work until 9am when my family gets up and it is a constant draw for me. My recommendation is if you are going to work at home you need to set ground rules for yourself and employees and stick to them. I have never had luck with outsourcing drafting with my work flow (some say I am a little fussy) except to subcontract some of our structural drafting to our structural engineer but I am intrigued by the concept. Three years ago we switched to Archicad for our design software and there seems to be a lot of potential with the BIM server application to outsource drafting and still retain control of the data. We will be experimenting with BIM server as we upgrade to Archicad 17. We use Archi Office for all of our project management and this is set up on a remote sever and can be accessed anywhere which is a good solution to keeping everything in one spot and in a consistent format. Good luck with the move and you cant argue with that bottom-line.
Hi Mark
I’m curious about Grasshopper. It seems like paying per minute for phone service is an old world pricing model and could add up very quickly. I’ve been using the Skype paid service for over 7 years and it is fabulous and very flexible. I’ve got my own number, can have it on all my devices, it’s unlimited in the US and Canda and costs a whopping $60 per YEAR! It appears you can also have other numbers that act as extensions but I’ve never needed more than one line so I’ve never looking that deep into it. FYI – Be warned that Skype is a bit confusing figuring out how to purchase a line. Unless they have updated their site recently. Once setup it’s fabulous and has all the features I need,
I wish you success as you take stock and take control! I have shared this with colleagues in Ireland who share so many of the same challenges and who seek new ways of working.
Hi Mark,
This was such a fantastic article to read. I love how you took us through every up and down of business. I use this business model, so much so that I actually started a company about a year ago to help architects with a business model like this. I actually learnt about this business model from the other end of the perspective. We draft their municipal submissions up, get them scrutinized by the council and submit on their behalf. The best part is that I structured the business model so that we could be the outsourcing company for these architects so that they could reduced office costs and maximise the use of their resources.
I originally had my own architectural design studio, but when a friend had lost all his work by his Macbook being stolen, myself and the team stepped in to help him re-draft everything up from scratch. Because we were able to do it in such a short period of time, and after seeing him grow his business in that time while he outsourced the work to us, I started Intervention Architecture with this business model you speak of to help other business focussed architects who are passionate about design do the same as my friend. Its a great business model.
Thank you for the inspirational posts. As someone who has a passion for architecture, business and being an entrepreneur who loves helping other architects, I really enjoy reading your articles.
Prashant:
Thanks for the comment and the encouragement. I appreciate your thoughts.
Mark
Mark,
This is a great article and I am enjoying catching up on a few posts I missed. I am currently on the other side and I thought I would share my experience as it has worked out very well for all parties involved. In 2009 I got a call from a previous employer in San Francisco who asked if I wanted to work for their firm remotely as a contractor. They are a medium size firm that does commercial and retail work but due to the downturn of the economy they had to reduce their staff. Without much thought, I started Bright Black Architecture & Design. Ever since then I have worked for them as a contractor doing everything from design, design development, construction documents, to reviewing submittals, RFIs and coordination with contractors and consultants. It works out well because they only pay me for billable hours and I can work extra hours or evenings if something needs immediate attention. Since then I have picked up additional clients and now have multiple architecture firms I do work for. It has allowed me to learn from multiple firms, work on an assortment of projects, take on projects on my own, all while remaining debt free. I would highly recommend it to anyone looking for a job in the profession. Recently, I just got licensed so I am excited to focus more attention on my business and how I want to grow Bright Black. I love reading your blog and listening to your podcast as there are so few resources that are current on our profession. Thank you.