IMG_6572An Essential First Step

Is your project viable?

The creation of a business model is an essential first step in a complex building project (After you have passed the back of the envelope early stage advisement stage). Essentially, a business model describes how you deliver value to the market and get paid for it. If it doesn’t generate profit, the business model is not sustainable.

The creation of a pro-forma model is used to establish whether or not a project is viable, create a schematic schedule for the process, and work with Ownership to add value and reality to many times of the proforma.

Identifying factors that will impact a building project, like reflecting total project cost (not just the cost involved with design and construction but ALL costs involved with opening), understanding potential constraints that might cause delays and advising on potential political issues that might adversely impact the project are issues to be identified and then addressed. We can assist at identifying and addressing these issues.

A high quality model lays the groundwork for a successful building project. You want someone with expert knowledge in all areas of the building process on your side to ensure that your project gets off to a great start. It might be that you go through this process and realize you are better off renting then building, or your project will only work (financially), if the stated Program of Requirements is created for less than $x per foot or less. Better to find this information now while the project is in its infancy.

Dave Pray understands how business models for a building project works. What are the goals? What revenue streams will it generate? How much will it cost to operate? Are there other ways to find the money, reduce costs or generate revenue that can be identified in the design?