Most of us strive hard to take our business to the next level through new challenges. As our experience evolves, we want to continue to encourage further growth, whether that’s by servicing a new luxury client, breaking into design and build, or moving from residential to commercial design (or vice versa).
When you come up with a new dream project, what can you do to make sure it succeeds when you don’t have deep experience. . . after?
I recently sat down with Kate Rasmussen of Wade Weissmann Architecture on my podcast Well Designed Work and talked about this very thing – successfully taking on new projects of a different scope than I’ve done before.
Specify its scope precisely
Suggestion is one of the biggest pieces of the puzzle when breaking into something new. How do you estimate your schedule and rate when you’re doing something you’ve never done before?
Getting the right estimate is critical to both your sanity and your profitability. Back in my conversation with Kimberly Merlitti, who owns KMM Consulting in Washington, DC. Merlitti is a strong proponent of building a detailed and accurate estimate Before You sign a contract. She emphasized that by tracking time and data, you can create a clear picture of project costs. Merlitti recommends breaking down each project, piece by piece, room by room, until the entire estimation range is defined. This information should come from data you collected from your previous projects.
This work and clarity can lead to success when you begin to tackle larger, different types of work, too. Rasmussen’s advice for creating a proposal for a new project involves drawing on what you already know to help determine what you haven’t done yet. She gave this example: If you know that it takes X number of hours to create a 50-page drawing set, you can use this information to predict how long a 120-page set might take.
It may seem boring to review and capture this data for each project and estimate new offers in such high detail, but that is exactly what profitable companies do. It is crucial for a healthy business to capture data, as it will enable you to set benchmarks, goals, and fees.
Crucial takeaway? Our data shows us where we’ve been so we can decide where we want to go.
Ask for advice
What happens when an opportunity is brand new and lacks data to turn back on? This is where you can turn to your employees (if you have a larger company like Rasmussen) or other professional colleagues.
The key in communicating with colleagues is to ask someone in a different market about yours, which will help avoid the fear that you both might be pursuing the same local venture. If you have your first opportunity to work with a new luxury builder in your area, but you’re not sure what your proposal should include or the criteria you need in your pricing, contact a colleague.
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