Gross/Net Annual Profits for Independ...

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Author Message Anonymous   Posted on Sunday, February 04, 2007 - 03:12 am:    Let's hear from the independent specifiers about their time and money. Would others be willing to share, anonymously, their: Annual gross/net profits. General experience (including whether CCS, registered architect or not) and years of experience. CSI Region. # hours work week ;-) Anonymous   Posted on Sunday, February 04, 2007 - 10:53 am:    2006 Gross: $500,000 Take Home Profit: $300,000 15 years, CCS, not registered 40-50 hours/week Anonymous   Posted on Monday, February 05, 2007 - 09:45 am:    WOW. $300K. Is that just for one specifier? Anonymous   Posted on Monday, February 05, 2007 - 10:04 am:    WOW. $300K. Is that just for one specifier? Anonymous   Posted on Monday, February 05, 2007 - 11:21 am:    yes. Anonymous   Posted on Monday, February 05, 2007 - 11:52 am:    2006 Gross: $300,000 Net Estimate: $250,000 12 yrs CCS, 20 yrs Licensed AR SE US 72 hrs/week 1 man firm Anonymous   Posted on Monday, February 05, 2007 - 02:33 pm:    Pretty sad, there are only two independent specifiers so far willing to share their numbers...come on now, lets hear from all the rest of you lurking around... William C. Pegues, FCSI, CCS Senior Member Username: wpegues Post Number: 635 Registered: 10-2002 Posted on Monday, February 05, 2007 - 02:45 pm:    They are all way to busy to respond -grin! Anonymous   Posted on Monday, February 05, 2007 - 02:51 pm:    Busy, yes, but there's always time for 4specs forum....or is that time for a Bud Lite...I forget the game was so bad yesterday and the commercials were even worse...creativity took a back seat this year.... Anonymous   Posted on Monday, February 05, 2007 - 04:30 pm:    Gross: $100K Take Home: $80K Experience: 25 years West Region 20-25 hours/week Anonymous   Posted on Monday, February 05, 2007 - 05:40 pm:    so what do you independents do for health care insurance? Is that included in your "Expenses?" Also what about any liability insurance? Anonymous   Posted on Monday, February 05, 2007 - 05:47 pm:    Wife works for the health insurance. No liability, Anonymous   Posted on Monday, February 05, 2007 - 07:15 pm:    I pay for my own health insurance, very low liability insurance. Comes out of expenses, along w/ rent, professional memberships, travel expenses for conferences, publications, sponsorships, marketing, letterhead, office supplies, computers etc. Anonymous   Posted on Monday, February 05, 2007 - 08:28 pm:    Is a wife a liability or asset? Anonymous   Posted on Monday, February 05, 2007 - 08:29 pm:    2006 Gross: $312K (one specifier) Owner's Comp: $225K 24 yrs experience; 9 yrs F/T specifier CCS, not registered Mid-Atlantic region 8 days/wk (64 hrs avg) Health, disability, life, prof liability covered as business overhead Nathan Woods, CCCA, LEED AP Senior Member Username: nwoods Post Number: 164 Registered: 08-2005 Posted on Monday, February 05, 2007 - 08:37 pm:    8 days a week. Wow! You work more than me! Anonymous   Posted on Monday, February 05, 2007 - 10:12 pm:    "Is a wife a liability or asset?" What a stupid question...if your wife/husband is thoughtful enough to let you work as a independent specifier, than of course she/he is an asset! Long crazy hours doing what you like to do and be your own boss at the same time. Anonymous who came up with this question must be an idiot. Anonymous   Posted on Monday, February 05, 2007 - 10:46 pm:    wow - i guess what they say about spec writer's not having a sense of humor is true... Anonymous   Posted on Tuesday, February 06, 2007 - 09:32 am:    I have been considering taking the step into the world of indenpendant specifiers. And with the numbers being tossed around in this thread, may have made my decision. Any insight into that world would be helpful. Maybe in another thread that you could direct me to. Anonymous   Posted on Tuesday, February 06, 2007 - 10:34 am:    Step 1 - JOIN SCIP Step 2 - make sure your spouse is securely employed and has health insurance provided. You are going to need that salary initially until you have built up your clientel. (I've been at it 4 years as an independant and my numbers are no where close to the the big guys) Step 3 - Join a business networking group in your area in addition to CSI, to learn marketing skills you may not have needed when employed by a firm. ie BNI, Chamber of Commerce, etc. Step 4 - Start setting up your office right away with the equipment and your working software that you will need, especially a good accounting program. That will be your biggest expense right out the box. Step 5 - Give them your resignation but work out a deal to continue doing projects with your old firm as an independent. You will soon spread out, but that will be your best bet to keep bread on the table when starting. Good Luck Jerome J. Lazar, RA, CCS, CSI, SCIP Senior Member Username: lazarcitec Post Number: 308 Registered: 05-2003 Posted on Tuesday, February 06, 2007 - 10:52 am:    Step 5 from the previous post is good, but be careful as your previous employer will eventually take advantage of the situation, looking for freebies and immediate satisfaction above and beyond your 'other' clients. The bottomline is that most Architects hate doing specs, they are reluctant to give up that role because they think they will lose guality - it is your job to let them know the quality will be there and they in turn will gain back all that time which they can spend marketing or pursuing payments from clients. Anonymous   Posted on Tuesday, February 06, 2007 - 11:41 am:    I guess I'm one of the "big guys" (established consultant) but I took a slightly different approach than the 5-step procedure in previous post: 1. Join AIA (for Masterspec discount) and CSI (for credibility & CCS). 2. Start in-home office while employed full time (w/ employer's sanction); w/ computer, printer, spec license & word processor. 3. Build practice until following is sufficient to reduce employment hours (5 yrs in my case to split 50-50). 4. Build practice until demand overwhelms employment (another 4 yrs). Make final break -- hopefully w/ a big enough job or account to sustain the practice & cover insurance costs. 5. Obtain professional liability insurance. It took me a long time to find a company that would offer this to a spec consultant -- I would do this at Step 2 if possible. I am always amazed at the independent specifiers who don't have this -- I consider it cheap "sleep assurance." (My cost is less than 2% of gross.) In other words, it took 9 years to make consulting a full-time practice w/ sufficient income to support a family. (That's without depending on a spouse, which wasn't an option in my case.) And that's in a market w/ strong demand -- I continue to regulary direct new prospects to my competitors. Also, I never bothered with an accounting program. My accountant handles tax filings & payroll at a cost of less than 0.04% of gross, which I consider a dirt cheap "headache preventative." Anonymous   Posted on Tuesday, February 06, 2007 - 11:46 am:    Hey Big Guy Anonymous care to share with us the insurance company you found, always interested in getting more sleep at night. Anonymous   Posted on Tuesday, February 06, 2007 - 12:02 pm:    CNA/Schinnerer (based in Chevy Chase MD) is the company that offers a special liability policy geared to the likes of spec consultants. In the NYC/NJ/PA area, I highly recommend my beloved broker Steve Whitehorn (The Whitehorn Financial Group 973-564-9330 / 215-545-8505). For those outside this area, Steve will gladly direct you to a good broker in your vicinity. "Big Guy Anonymous" Robin E. Snyder Senior Member Username: robin Post Number: 85 Registered: 08-2004 Posted on Tuesday, February 06, 2007 - 12:17 pm:    First, make sure you are making the jump for more reasons than just the $$, unless that is what is truly important to you. This may sound strange, but I would be happy making LESS money, and not being so busy and stressed all the time - and yes, I turn away work constantly. As an independant, you have 50 different "bosses" and non of them care if you have a deadline from another "boss" at another firm. Don't get me wrong - being on my own is great, but I wouldn't make the switch just because you see big dollar signs! If you want any specific advice, you can always contact me at robin@spectraspecs.com Anonymous   Posted on Tuesday, February 06, 2007 - 01:17 pm:    ADVANTAGES OF BEING INDEPENDENT Eventually you too can be a "Big Guy Anonymous" But seriously: Independence and control over your business and your time is #1. Sure the hours are long, but with an understanding family, the big bucks do come and having control of your time is amazing - just think you get to take a power nap when you want or run an errand without seeking approval from your boss, or pick up your kid from school in an emergency or just for fun without seeking approval from the gods - I don't think I could ever go back to that situation again. Opportunity to work on big projects with the responsibility of making big decisions - makes you feel special. Knowing that so many other Architects depend on what you say and do - what a power trip. It does take time to make the big bucks, patience is an important virtue here along with having a spouse that has a good job and good insurance....but the big bucks will come, as long as you can collect. Ah yes getting paid - that should be a whole separate tread. And that my friends is the major aggravation with being independent - getting paid - persistence, persistence, persistence - and let's not forget when the specs go out, so does that Invoice - do not wait, do not stop, get those invoices out and pound the payment until you get paid... "Median Guy Anonymous" Anonymous   Posted on Tuesday, February 06, 2007 - 08:02 pm:    I can't believe there are only four independent specwriters out there willing to share their statistics in this forum - how about it SCIP members let's hear how you are doing? Ronald L. Geren, RA, CSI, CCS, CCCA, SCIP Senior Member Username: specman Post Number: 398 Registered: 03-2003 Posted on Tuesday, February 06, 2007 - 08:13 pm:    I'd love to, but I've only been an independent for 1 month. Anonymous   Posted on Tuesday, February 06, 2007 - 08:27 pm:    Ron, would like to hear your story. Jerome J. Lazar, RA, CCS, CSI, SCIP Senior Member Username: lazarcitec Post Number: 313 Registered: 05-2003 Posted on Tuesday, February 06, 2007 - 09:15 pm:    Congrats Ron, Welcome to the Club. Ronald L. Geren, RA, CSI, CCS, CCCA, SCIP Senior Member Username: specman Post Number: 399 Registered: 03-2003 Posted on Wednesday, February 07, 2007 - 12:43 pm:    My story, huh? Well, I was born on a hot, summer day in Tucson, Arizona--the year was 1961. I guess that's a little too far back... I have almost 23 years of experience. A little over 1/3 of that was as an owner's rep with in-house design capabilities (US Air Force & AZ Army National Guard). About half with architecture fims, and the rest as an owner's rep with no in-house design capability. I've been writing specs for most of my career. However, I've only been writing specifications as a primary job responsibility for the past 7 years. I also developed an interest in building codes in the early 90's. I've done some CA and a bit of project management; both on the owner and architecture sides. However, I didn't like project management, mainly because I couldn't stand overbearing owners and whining consultants (ironic, now that I am one). I've always wanted to do my own thing, but never thought it would be specifications and codes. CSI has been a major factor in helping me take that route. At my last firm, we collaborated a lot with other architectural firms. A PM from one of those firms, who worked with me, asked if I did specifications on the side...I said, "Sure!" Eventually, a person with that firm moved onto another startup design firm and asked me to do their specifications. Then, friends from within my CSI chapter got their respective organizations or companies to hire me to write their guide specs for products and specialty trades. As this continued to build up, I knew I was going to start my own consulting business. Only two things held me back: the guts to do it and the US Air Force. As for the latter, I was mobilized for 8 months, 6 of them in Kuwait. Unfortunately, the deployment cost me a significant spec job I had lined up on the side. When I returned, things started booming again to the point where I worked 8 hours each day for my employer and 8 hours at home doing my side jobs. Finally, in December, I decided this was the time to make the change...and I did. Now, I work 16 hours a day, but it's on my own schedule. Mostly it's marketing, meetings, telephone calls, and emails in the day and spec writing at night. I don't carry insurance, but it's a consideration that I'm not to concerned about at the moment. With the tax-free salary I earned while deployed, I purchased a lot of my equipment and software to set up my practice when the time came. My major client at the moment is my former employer. I've also received positive results from the announcement I had sent out via a local construction product resource library called "The Reference Library" here in Phoenix, which sends out weekly emails to mostly AIA and CSI members. Also, I can't forget the help from other overburdened spec writers (fellow CSI members) in the area who refer clients to me for projects they had to turn down due to workload. My wife is a physician with good insurance, so that hasn't been an issue. I had built up a decent cash reserve from my side jobs to bridge the gaps if needed. Much of the 5 steps listed above are true and, in hindsight, I've seemed to have complied with much of them. Only time will tell now. Anonymous   Posted on Wednesday, February 07, 2007 - 04:10 pm:    Net 2006 43K 1.5K Liability insurance CCCS and Registered Architect 20 years in the architecture business, 3 years specifier at firm, 4 years SCIP Gulf States Region 40 to 45 hours per week Anonymous (Unregistered Guest) Unregistered guest Posted on Friday, February 16, 2007 - 12:30 am:    More years than I care to count being a spec consultant. Slowing down to 30 to 35-hour week. No liability insurance. Pay own health, car, etc. Net $200,000 in 2006. Anonymous   Posted on Friday, February 16, 2007 - 11:13 am:    Gross $200K; Net $125 - 130K Expect to grow to $300K gross shortly. CCS and Registered Architect More than 30 years since registered; 13 years writing specs; 1 year as independent consultant. No liability; have health, disability, etc. Gulf Coast 50 to 60 hours a week Anonymous   Posted on Saturday, February 24, 2007 - 06:48 pm:    Gross $200K, Net 125-150K Don't want to grow larger. One specifier CCS No liability ins. Medical ins. otherwise covered. West Region. 50 ish hours/week Helaine K. (Holly) Robinson CSI CCS CCCA Senior Member Username: hollyrob Post Number: 288 Registered: 07-2003 Posted on Wednesday, March 07, 2007 - 01:23 pm:    Folks - how do you get health insurance? Anonymous   Posted on Wednesday, March 07, 2007 - 01:43 pm:    Helaine Thru my wife, she works part time for enough hours to qualify with her company for family insurance which we still pay thru the nose for...and what makes matters worse the insurance sucks, but it is better than paying for insurance on my own as an indpendent or not having any insurance at all.......... Robin E. Snyder Senior Member Username: robin Post Number: 93 Registered: 08-2004 Posted on Wednesday, March 07, 2007 - 03:15 pm:    Pay for it each month. I have a PPO through Blue Cross. (Unregistered Guest) Unregistered guest Posted on Wednesday, March 07, 2007 - 02:46 pm:    Fortunately my spouse has been able to provide health insurance through his work. Not sure what we'll do when/if he retires. Anne Whitacre, FCSI CCS Senior Member Username: awhitacre Post Number: 470 Registered: 07-2002 Posted on Wednesday, March 07, 2007 - 03:39 pm:    when I was consulting, I was able to be an "affiliate " member of the AIA, and got my health coverage through the AIA local component. my policy price was actually cheaper than when I had been with a firm because the AIA group was larger than my old office. Since so many architects are small shops of 1-5 people, AIA is pretty good about offering health care coverage. And, if you're doing "architectural" work, you can usually join the AIA under one or another of their classifications. Anonymous   Posted on Wednesday, March 07, 2007 - 03:41 pm:    Retirement...what's that?....this is an independent specwriter thread, do any of us actually expect to be able to afford to retire...unfortunately I expect to die in front of my computer, albeit I'll have my share of fun and pleasure before then, but with no pension and little to expect from Social Insecurity...retirement just doesn't register. Helaine K. (Holly) Robinson CSI CCS CCCA Senior Member Username: hollyrob Post Number: 289 Registered: 07-2003 Posted on Wednesday, March 07, 2007 - 03:42 pm:    Anne, I had not thought of that one. I looked at AIA affiliate membership several years ago and decided it wasn't worth it but health care coverage might make it so! Thanks! John Regener, AIA, CCS, CCCA, CSI, SCIP Senior Member Username: john_regener Post Number: 262 Registered: 04-2002 Posted on Wednesday, March 07, 2007 - 03:47 pm:    Re: Health insurance You get health insurance the same way all self-employed people do. Either you are on the policy of a spouse/parent or you obtain coverage as an individual. Sometimes group purchases are available. Yes, it costs more to be insured individually rather than through a group plan. That's the cost of doing business and it should be figured in the fee, just like vacation, Social Security, disability insurance, professional development, etc. Personally, I've chosen to go with Kaiser Permanente Health Plan, a not-for-profit HMO. "Health insurance" is part of the deal and services are through Kaiser's clinics and hospitals. The doctors are members of Permanente Medical Group and the nurses work for either PMG or the hospital side of Kaiser. It gets a little complicated for Kaiser but for patients it's transparent. The best part is that there is a highly sophisticated peer review system and established protocols to ensure quality of care. The doctor's have much less concern about costs than in other forms of practice. Kaiser covers 8.2 million people with 3.1 million in Southern California. Kaiser in my region has specialized care readily available. There is a brand new, state-of-the-art major Kaiser medical center under construction in my community. What is most important to me is that Kaiser's system is set up so it is in their best interest that patients are healthy rather than the conventional health insurance which is based on spending as little as possible on patient care when there is illness or injury. Preventative care is strongly emphasized in the Kaiser system. Kaiser requires some compromises, as do all health plans, but it's the best balance I've found. Robin E. Snyder Senior Member Username: robin Post Number: 94 Registered: 08-2004 Posted on Wednesday, March 07, 2007 - 03:56 pm:    I plan to retire. Hopefully before I am 60. I have SEP IRA and a great financial advisor and am right on track. Just because a person is self-employed doesn't mean they can't save and plan to retire!