From start-up to scale-up: A study about the characteristics of starting architectural firms and their business models

The creative industry is growing faster then before, start-ups are popping up from everywhere and many incubator and accelerator programs try to support innovative ideas to become a success. The construction sector is also growing, which means that there is also room for starting architects to benefit from this. However, the crisis caused that projects are scarcer than before, which forces starting architects to enter the market with a more commercial attitude. Professionalization and commercialization in the already ‘established’ architectural firms is nothing new, but it is still relatively unknown how starting architects deal with this. This research explored what the business model of starting architectural firms characterizes in the Netherlands. With a questionnaire, insights have been gained regarding the explicit characteristics of starting architectural firms in the Netherlands. According to six case studies the business models of these firms have been studied. Three important characteristics emerged from this research. Firstly, starting architects are often strongly focused on the value proposition and client aspect of the business model. Defining a market position with an appropriate customer profile appeared to be difficult for these firms. Secondly, the epic center (starting point within the business model where change occurs) often lies in the client aspect. In the start-up phase, the business model is mainly determined by what the client demands and less from the value proposition of the firm. The latter characteristic describes a mis-match within the business model of starting architects. Often starting architects have a certain vision and mission, but they generate most of their income with projects that do not fit. With time, experience and an increasing professional network, a transition takes place in the above-mentioned characteristics. This shift indicates a transition from start-up to scale-up. The advice to starting agencies is to consciously draw up a business model. This improves goal orientation and effectiveness, which are important factors in the start-up phase. In short, making a creative new idea a reality requires more than just the idea. A business model contributes to the strategic realization of this, which also makes the agency stand out in the current market.FuturAArchitecture, Urbanism and Building Science