At first, Bob Cardoza wanted a career in police work, but decided he needed a better outlet for his creativity. So he studied during his days and worked nights to become a landscape architect. Upon graduation from college, he spent a year with a landscape design firm, and then worked for Rossmore Leisure World as a planner. After that, he put in a three-year stint with the Los Angeles Regional Planning Council, and an equal measure of time working on master-planned communities and natural resource development for Bechtel Corporation. In 1970, he and Pete DiLallo, a former co-worker at Rossmore, joined a landscape design firm. In 1971, the company was bought out by another.

When Bill Cathcart got out of school, he started working for a large landscape architectural firm. After five years, he left to write and publish a book on landscape architecture, after which he traveled as a speaker for landscape architect and contractor societies. But after a time, simply talking about landscape architecture didn?EUR??,,????'???t seem good enough.

David Arbegast spent a number of years with a fair-sized landscape architecture firm, building up both experience and expertise. He and some co-workers discovered they all had a common desire for more involvement in the running of the business. They asked to be made partners. They were turned down.

These three men have something in common beyond their careers as landscape architects. They all own their own small businesses. And they all proved themselves first as employees of other landscape architecture firms.

Some 30 to 40 percent of landscape architects coming into the market open their own offices, according to Rob Mercer, staff landscape architect with the American Society of Landscape Architects (ASLA). But the majority come out of college and sign on with established businesses.

Not all are content, however, to remain mere wage earners. ?EUR??,,????'??Some 10 to 20 percent of landscape architects employed by larger firms eventually go off on their own,?EUR??,,????'?? says Mercer. ?EUR??,,????'??Just as with law firms and engineering companies, landscape architectural businesses often serve as a training ground for many future business owners.?EUR??,,????'??

Cardoza, Cathcart and Arbegast are among that 10 to 20 percent who took a deep breath and a big chance, and became entrepreneurs.

?EUR??,,????'??Ten to 20 percent of landscape architects empolyed by larger firms eventually go off on their own.?EUR??,,????'??

Bill Cathcart left the lecture circuit, to put the principles of management and design that he was teaching to work for himself. He started on a small scale, sharing his secretary and a draftsman with an electrical engineer. Today, Cathcart and Associates is well-established in the Southern California market.

When he and his co-workers were discouraged from becoming full partners in the business they worked for, David Arbegast placed 13 years of job security on the line. ?EUR??,,????'??I didn?EUR??,,????'???t start my own business to make more money,?EUR??,,????'?? he says. ?EUR??,,????'??I and my partners wanted more control, more say. We wanted to be able to deal directly with the clients.?EUR??,,????'?? Northern California based Arbegast, Newton and Griffith has been dealing successfully with those clients for 17 years now.

Bob Cardoza and partner Pete DiLallo left their jobs when the company they worked for became a division of a larger engineering firm. ?EUR??,,????'??We found that engineering philosophy didn?EUR??,,????'???t coincide with landscape architecture philosophy,?EUR??,,????'?? Cardoza says. ?EUR??,,????'??Pete and I knew we would do it differently, so we decided to seek our own identity.?EUR??,,????'?? Fourteen years later, the firm of Cardoza, DiLallo and Harrington, located in Costa Mesa, California, is going strong.

The Personality Factor

Obviously, not everyone has what it takes to be a successful business owner, even though, as Bob Cardoza says, ?EUR??,,????'??the doctrine they instill in you in college is that you?EUR??,,????'???ll eventually be in business for yourself at some time.?EUR??,,????'??

Cardoza sees the decision between being employed or being an employer as a choice between security and risk. ?EUR??,,????'??Some want security and safety,?EUR??,,????'?? he says. ?EUR??,,????'??Others have a personality that prefers self-confidence and no boundaries on achievement.?EUR??,,????'??

But, as Bill Cathcart correctly q points out, landscape architects have to remember that security is an elusive thing in the building business, even as an employee. ?EUR??,,????'??Some people who work for another company are seduced into thinking there?EUR??,,????'???s security in the regular paycheck, the set hours, the benefits. But our business is so volatile that a secure job can easily become no job if there?EUR??,,????'???s a significant downturn.?EUR??,,????'??

Still, Cathcart says, many landscape architects don?EUR??,,????'???t open their own businesses because they?EUR??,,????'???re insecure and worried where the dollars will come from. ?EUR??,,????'??Design professionals appreciate nice things, such as expensive cars. They want to be able to pay their rent and enjoy the finer things in life. But if you go into business for yourself, you have to change your priorities. You have to be willing to put up with some discomfort now in return for investments in your own future.?EUR??,,????'??

Salary is sometimes the least of the entrepreneur?EUR??,,????'???s concerns. As Bob Cardoza notes, the potential businessman has to be willing to sacrifice his time as well, something which puts a strain not only on the individual, but on his family. And finally, one has to be capable of making difficult and sometimes painful decisions regarding personal lifestyle and other people?EUR??,,????'???s lives. Is one willing to make financial sacrifices? Willing to fire an incompetent employee?

?EUR??,,????'??You have to be willing to put up with some discomfort now in return for investments in your own future.?EUR??,,????'??

?EUR??,,????'??If you can survive the sacrifices, the rewards are there,?EUR??,,????'?? says Cardoza. ?EUR??,,????'??The strain, both financially and emotionally, will diminish as you accomplish your goals.?EUR??,,????'?? The rewards, he adds, include independence and financial security. But primarily, he emphasizes, there is satisfaction, and job satisfaction is something that?EUR??,,????'???s usually hard to come by. ?EUR??,,????'??Satisfaction of achievement is the main thing. The key is that you?EUR??,,????'???re managing your own destiny. And while you have no fixed income for financial security, you also don?EUR??,,????'???t have a lid on how much you can potentially earn. You decide?EUR??,,????'??

Regardless of possible rewards, it must be acknowledged that venturing into business can be very risky indeed. According to the Small Business Administration (see sidebar), more than 60,000 small businesses went bankrupt last year (though a record number of new incorporations ?EUR??,,????'??? 640,000 ?EUR??,,????'??? was recorded).

It is possible to reduce the risk of failure. As David Arbegast points out, ?EUR??,,????'??there are a lot of one-man offices out there, people who work out of their houses to avoid rents and do everything else possible to cut expenses while building up a clientele. If you have a healthy savings account and a small family, you could probably do all right like that.?EUR??,,????'??

Shoestring budgeting can lead to success, but it also has disadvantages. Arbegast: ?EUR??,,????'??There?EUR??,,????'???s a limit to the amount of work one person can do. If you want to increase the number of accounts you handle, you?EUR??,,????'???ll need help, especially if you go into public work, where speed of work and effective backup will be important in getting the contract.?EUR??,,????'??

Thus, some form of partnership is often advisable. ?EUR??,,????'??A partnership spreads the sacrifices out,?EUR??,,????'?? says Cardoza. ?EUR??,,????'??You all share the risks, as well as the benefits. You?EUR??,,????'???re able to pool resources, ideas, goals.?EUR??,,????'?? Cardoza?EUR??,,????'???s firm began as a partnership with Pete DiLallo; today, there are five principals.

?EUR??,,????'??If you launch a business of your own, and you don?EUR??,,????'???t want to work in your home doing design for a small clientele, I suggest a partnership, either with another designer or, preferably, with an experienced business manager,?EUR??,,????'?? says Bill Cathcart.

David Arbegast adds an important caution. ?EUR??,,????'??The problem in a partnership is to find someone who is compatible with you. Ours is a creative business, with egos to satisfy. If you and your partner?EUR??,,????'???s personalities don?EUR??,,????'???t mix, there could be trouble.?EUR??,,????'??

But those architects who have worked for other firms have an advantage over the independent businessman fresh out of college: they?EUR??,,????'???ve worked with other design pros, and know the kinds of people they work best with.

Opening Shop

Bob Cardoza?EUR??,,????'???s police training gave him experience and insight into managing people, but he still had to train himself in the specifics of running a business. He built on the foundation of his own job experience, supplementing that with a series of business management courses.

Bill Cathcart took an unusual step and wrote a book on landscape architecture. In order to research the volume, he had to learn management and administration from the ground up. While not everyone can write a book, there are many books that have already been written which deal with all aspects of business management. Check with the small Business Administration for recommendations.

Bill Cathcart hesitates to recommend too much training. ?EUR??,,????'??You don?EUR??,,????'???t have to desensitize your design skills, and you don?EUR??,,????'???t need to become a full-time manager. I?EUR??,,????'???d say, get in and do it, and as you go along, you?EUR??,,????'???ll learn what you can and cannot do. Label what you can?EUR??,,????'???t do, give it a job description, then hire a person to do that job.?EUR??,,????'??

?EUR??,,????'??The things you need to do to open a business can seem overwhelming at the outset,?EUR??,,????'?? he continues. ?EUR??,,????'??But if you let yourself be overwhelmed, you?EUR??,,????'???ll never get the doors opened. So my recommendation is to get down to city hall and apply for a business license. It?EUR??,,????'???s simple. And suddenly you?EUR??,,????'???re in business. Then go to a bank and open an account. Ask your banker for help with financial questions. Call your Chamber of Commerce and find a good accountant. You don?EUR??,,????'???t have to spend a lot of money, and you can learn some basic accounting skills yourself. An accountant will help you get your state and federal I.D. numbers, and a government will take care of sending you the forms for your quarterly tax payments.

In essence, Cathcart believes, it?EUR??,,????'???s better to learn while doing. ?EUR??,,????'??Keep asking questions,?EUR??,,????'?? he adds. ?EUR??,,????'??You?EUR??,,????'???ll get the answers you need.?EUR??,,????'??

Banking On It

Cathcart?EUR??,,????'???s point is clear: don?EUR??,,????'???t sacrifice the quality of your design in order to be a businessman. Use available resources, the most important of which may be your friendly neighborhood banker

Bob Cardoza and his partner discussed their business plan with a banker and arranged credit that allowed them to survive the lean first year. ?EUR??,,????'??First, we set up a budget to show what it would take to establish ourselves. Ideally, we felt we needed capitalization for at least a year, and I would never recommend that anyone get into this business with less than a six mouth reserve.?EUR??,,????'??

The probiem is one of cash flow. Landscape architects must ride herd on their accounts receivable, billing regularly and persistently. ?EUR??,,????'??Cash flow is a term a lot of people don?EUR??,,????'???t understand,?EUR??,,????'?? Cardoza says. ?EUR??,,????'??You can be very talented, but if you don?EUR??,,????'???t understand cashflow, you?EUR??,,????'???re out of business.?EUR??,,????'??

As a business becomes established, it builds up sufficient reserve capital to cover late payers and bad debts, as well as start-up costs on projects and proposals. But the new business has no such reserve base. Thus, a line of credit through the Small Business Administration and/ or a bank can see a business through rough times. Bill Cathcart advises landscape architects to ?EUR??,,????'??get the largest line of credit possible. Even if you don?EUR??,,????'???t use it, you have it just in case.?EUR??,,????'??

Another way of overcoming cash flow problems is to begin with a good client base. ?EUR??,,????'??We were very fortunate,?EUR??,,????'?? Cardoza relates, ?EUR??,,????'??since we eliminated some of our risk by developing a good relationship with potential clients before we went into business on our own. This gave us a degree of backing and commitments for future work.?EUR??,,????'??

Cardoza is quick to emphasize the importance of developing a good and steady clientele, but he also points out that it?EUR??,,????'???s not necessary to try to dazzle these prospects with expensive sales and promotional material. ?EUR??,,????'??You want a professional image, but you can achieve that with simplicity.?EUR??,,????'?? Don?EUR??,,????'???t hurt your cash flow further with lots of glitz and glarnor ?EUR??,,????'??? it may not even work. ?EUR??,,????'??Many clients shy from an overly sophisticated approach. Give your prospects practically and good design, and it?EUR??,,????'???ll work.?EUR??,,????'??

In addition to lining up a banker and prospective clients, the new businessman will want to bring in an accountant to develop a financial discipline for the company. As Cardoza says, ?EUR??,,????'??good accounting is essential.?EUR??,,????'??

?EUR??,,????'??Keep asking questions. You?EUR??,,????'???ll get the answers you need.?EUR??,,????'??

Consulting an attorney, while expensive, may pay dividends in the future. Seek an attorney with experience working for small businesses. You can receive assistance in filing the necessary government forms (though your banker or SBA representative can help you equally as well) and you can ask advice about such important and expensive matters as errors and omissions (liability) insurance. ?EUR??,,????'??You?EUR??,,????'???ll want to be familiar with legal requirements and interpretations,?EUR??,,????'?? says Cardoza.

Cardoza also recommends joining all pertinent associations. ?EUR??,,????'??Any related organization can be helpful, because you can learn from the experiences of others. ASLA offers this. You meet others who have encountered the same or similar problems in such diverse areas as clesign, law and insurance. You can also keep up with the latest techniques and solutions to design problems.?EUR??,,????'??

Another fine idea from Bill Cathcart is to sign on with associations serving your prospective clients. ?EUR??,,????'??Go to all their functions and seminars, advertise in their newsletters, and you?EUR??,,????'???ll go a long way to attracting new business.?EUR??,,????'??

Public relations and image creation are important to the ultimate success of a new company. ?EUR??,,????'??People don?EUR??,,????'???t always do business with the best or cheapest landscape architect,?EUR??,,????'?? Cathcart says. ?EUR??,,????'??They do business with their friends. So you have to make a lot of friends, which means you have to have time for public relations. Identify your market, then get out there and build good feelings toward your company. Never let up on advertising and promotion.?EUR??,,????'??

A landscape architect who uses common sense and follows simple business guidelines stands a reasonable chance of making it if his design skills are competitive with those of established firms. But failure is always a possibility. Lots of businesses go junder. Bob Cardoza notes that failure is often caused by three factors: ?EUR??,,????'??First, lack of cash flow Second, failure to explore other resources such as banks, investors or partnerships. And third, impatience. If you don?EUR??,,????'???t have staying power, you?EUR??,,????'???ll quit too soon. Stick with your business through the hard times.?EUR??,,????'??

Success is also always a possibility. The three landscape architects represented in this article are examples of that. ?EUR??,,????'??I don?EUR??,,????'???t think I?EUR??,,????'???ve made more money that I would have working for someone else,?EUR??,,????'?? David Arbegast says. ?EUR??,,????'??Though I?EUR??,,????'???ve certainly handled more money! My success has come from attaining financial security and from the satisfaction of knowing I was in charge, that I?EUR??,,????'???ve dealt with the clients, worked with the people and done a good job.?EUR??,,????'??

The SBA Connecion

It?EUR??,,????'???s surprising how often budding entrepreneurs neglect an important source of information and funding ?EUR??,,????'??? the Small Business Administration. This government agency exists for one reason only, and that is to assist small businessmen in creating and successfully maintaining their businesses.

On the financial side, the SBA offers direct and guaranteed lending. To apply, contact your local district office. The amount of funding available will depend on your business plan, collateral and need.

Especially useful for landscape architects interested in public work is the SBA?EUR??,,????'???s procurement / set aside program, which enables small businesses to acquire certain government contracts.

Management assistance is offered through a range of free publications, and via the SCORE (Senior Core of Retired Executives) Program, which puts experienced retirees together with new businesses for counseling and other aids. This effective learning experience is free of charge.

Other SBA programs of interest to the independent landscape architect include guaranteed surety bonding, special assistance to minority businessmen and an innovation and research branch that passes special government project work (in the Department of Agriculture, for instance) on to small businessmen.

For more information, contact your nearest SBA regional or district office.

Western Regional Office:
450 Golden Gate Avenue
Box 36044
San Francisco, CA 91402
(415) 556-2820

District Offices:
2202 Monterey Street
Fresno, CA 93721
(202) 487-5189

350 S. Figueroa, 6th Floor
Los Angeles, CA 90071
(213) 688-2956

2005 N. Central Avenue, 5th Floor
Phoenix, AZ 85004
(602) 261-2234

880 Front Street
Federal Building Suite 4-S-89
San Diego, CA 92188
(714) 293-5444

211 Main Street, 4th Floor
San Francisco, CA 94105
(415) 974-0594