NW Architecture
Strategy and Implementation Summary
In the first year of business, NW Architecture will focus on the bay area in California. As the firm grows, sales will expand throughout California and across the country, eventually spreading worldwide.
5.1 Sales Strategy
“Sales” in this business is a direct result of exceptional client service. It is based on the firm’s image and the referrals that result. The more clients this company pleases, the more referrals are given. We will work to provide a positive experience in all cases so our clients will refer and return to us for future work as well.
5.1.1 Sales Forecast
Sales are broken down into three categories: design, production, and construction. These three categories put together make up one architecture project. The totals for each project are based on a 10% cut from the total construction costs of each job. The following table and chart provides an overview of our forecast sales. Actual sales could vary depending on the project size and budget.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Design | $42,000 | $90,000 | $250,000 |
| Production | $26,000 | $50,000 | $85,000 |
| Construction Documents | $34,000 | $70,000 | $165,000 |
| Total Sales | $102,000 | $210,000 | $500,000 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Design | $500 | $500 | $1,000 |
| Production | $250 | $250 | $500 |
| Construction Documents | $500 | $500 | $1,000 |
| Subtotal Direct Cost of Sales | $1,250 | $1,250 | $2,500 |
5.2 Competitive Edge
This company will have a competitive edge over both the larger and smaller firms because it will be composed of the new generation of architects which are fluent in the digital world. Many firms today employ an older generation of architects which find the computer a mystery, and those that do use the computer only have the ability to design in 2-D.
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