Starting a design firm - help?

Discussion in 'Starting a Business' started by SethDamien, Dec 27, 2015.

  1. SethDamien

    SethDamien
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    Hello, im a newly licensed Architect.

    I've been thinking of starting my own firm, and i have a business plan - a partnership with real estate brokers/agencies to refer me to their clients.

    In return, i'll give them 20% commission rate for their referral depending on the size of a project.

    In this case, i might as well be an investor.. lol

    I also think investing on the real estate is a good idea as land value is going up and construction is booming and i need as much referrals as i can get... but i also need your opinion on this.

    Is it too aggressive? The conventional way of architects getting clients is to wait for clients to come to them.

    Sitting and waiting is simply not an option for me.
    Sorry for being a little bit too idealistic on this, but what is your take on the matter?
     
  2. CorporateViking

    CorporateViking
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    Depends on your own financial stability. When your running a business, your job is to mitigate risk as the business can only live so long as it can afford to make the mistakes it will make. If you have the money extra to invest in projects regardless of the maker, ok then. It might be for you. If you NEED to make the money back, absolutely DO NOT invest in your own projects. Investing = Always High Risk, you can loose some or all of your money. Always. No one can legally tell you different (Thanks to the SEC).

    You partnership is a great idea for getting work. Always aggressively go where your clients already are.
    Investing in your own projects can be fine provided you don't actually need the money. As it's coming out of your pocket, your paying other people to sell it, and your paying yourself for time with no guarantee of end result if something crazy happens. Without a solid exit plan as an investor (how you get paid back) there is no no value in investing to begin with.

    That being said if you DO have all the extra cash you want and you're not investing we'll say a conservative 5-10% of you assets in any one project, you might be willing to just loose.

    High Risk, High Reward.
     
  3. Tim Paine

    Tim Paine
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    Hey

    Hope it is ok to jack your thread .. I was wondering if you ever thought of registering a company offshore? I think that taxes in US are too high especially for someone just starting ... I found some services that do the whole process of registering and paperwork ... https://pmg-offshore-company.com/. What is your take on this?
     
  4. CorporateViking

    CorporateViking
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    There are plenty of dangers registering things off shore. If taxes are a concern, it sounds like you're in one of the US States that has multiple taxes, something that can be avoided by registering your company simply, in a different state. It's easy to slip up with out of country setups, even if someone is doing it for you, as they aren't the ones who end up liable for any mistakes. You are in the cases of Sole Proprietorship, LLC, and broken veiled Corps.

    Unless your are doing a full board corporation, stock, meeting minutes, etc. it's not worth it to go over seas. If you're lucky and no one decides to place down sanctions in the country you have decided to base your company out of, a country you likely don't live in, you'll be able to access your funds providing that same country stays in good credit with the world.

    A good reason to put your money in another country is if the money there is worth more and you expect it to stay that way. Lets say you were in Canada just before their money started tanking. If you had setup a company in America, the value of your company wouldn't have tanked. Companies, like assets, have an important goal, To Raise Value. If you're company isn't growing in value, that means you aren't moving in the direction of any exit plan AND it's stagnating.

    As the cost to create a company in the US is drastically lower in comparison to other countries, as a nation of assets the risk of the country stopping taking your money is non existent, and it becomes unlikely that others will engage you in illegal activity that will come back to haunt you without your knowledge.

    An alternative to high taxes would be to get tax credits from your local chamber of commerce/governer's office usually up to and around $10,000+.

    Here is some additional literature for your perusal on risks involved with offshore banking.
    https://www.streber.st/2014/07/offshore-banking-risks/
     

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