Exercising Your Business Muscle

by Patrick Moore

In the interest of any self-improvement effort it is important that measurements and assessments be made, analyzed, reported, and then acted upon. The findings of a recently conducted poll by ASLA paint a vivid picture of our profession-who we are and what we want. They show a profession in which over 40% of all landscape architects in private practice are involved to some degree in the management of their practice. They oversee the work of others, and they feel design and graphics are their strongest abilities. It is interesting to note that an even larger percentage of this same group is under 40 years of age (63%), works with a small firm (3-4 personnel), and believes that “technical skills” are their weakest business talent. The fact that our profession as a whole is relatively young, explains the desire of many (33.9%) to have ASLA become more active in promoting the public’s and allied professionals’ awareness of our services. “MARKET US,” we are telling them, “we need better PR.”

But...herein lies a potential problem.

What do these statistics really tell us? Nothing that we private private practitioners (74.5%) don’t probably already know. We need help running our Businesses.

Without the proper business confidence and skills, we may continue to retain the image of a struggling young profession.

But by consistently exercising our minds toward bettering our business savvy, we will begin to realize a quiet confidence that will have a major impact not only on our individual businesses, but on all facts of the profession of landscape architecture as well. Rise in profitability, respect from design professionals and clients, and, most of all, respect for ourselves, are just a few t reasons for this prescribed aerobics program.

EXERCISE NO. 1

Assess your current condition

Inventory and assess your business operation under the categories of financial, staff, market served, and management. These are broad categories, but should cover all areas of operating.

(See “The Business of Landscape Architecture,” July 1987 issue.)

EXERCISE NO. 2

Begin Project Forecasting

Begin by listing all contracted active or inactive projects presently in the office. Extend the known or realistic projected fee income for each over a four or six month period. After this, add a few (not all) projected new jobs and extend their realistic fees also. The key here is realistic! (See Figure 1. below.) Adding columns up for each month will quickly show you two very important business items.

1. Management

What expected monthly fees are available?

Will these fees cover our overhead?

What profit potential exists?

What work MUST be completed and billed out by the end of the month?

2. Marketing

What month will more work be needed?

When do existing and potential projects need to be “pushed” into the office?

Project forecasting, while a very basic task, done monthly will give you the needed ammunition to act in business decisions and not react as most have in the past. Your banker will enjoy seeing this management information also and can probably advise you on other management related matters and practices.

Including all of your office personnel in this process is imperative, as many times even the draftsmen will remember some small project that may have been accidentally swept under the rug. Eventually you will want to have project managers fill in the projected fees and discuss them with you. This will foster a sense of responsibility for making these schedules and fee projections become reality.

Getting everyone involved in this management exercise program can promote a renewed office “team spirit” and a confidence in management’s abilities and leadership.

It sounds simple and is. These “business aerobics” will do wonders for the energy level of each of our firms as well as the public recognition of the profession as a whole. Try it!