The media is having a field day with the latest economic figures released by the government. All the business commentators are talking about the country going into an economic slow-down (no one wants to use that bad word "recession" just yet).
They love to sound the alarm and play on the public's fears. It's good for ratings. When housing starts slow and home prices slide backwards the construction industry is the first to feel the pinch. People start cutting back their spending because of the bad news, and sure enough, the economy slows. Many practitioners see their numbers drop and start crying the blues, blaming it all on the economy.
However, well-prepared practitioners have nothing to fear. If you have had a good marketing program going all along, you might have to turn up the heat a bit to keep on the same growth curve. If you have no regular marketing program or if you just do it hit or miss, you could be in trouble with no quick way out.
Getting a good marketing program in place takes time. It requires testing for results and then tweaking to make improvements gradually. When you first start out with a new plan it's like the flywheel on an engine. It takes a lot of effort up front to get it spinning, but once it gets going it has momentum on its own. The time to get it in place and working is before the economy gets rocky.
Successful people don't sweat it when the real estate market and the construction industry are down. That usually means interest rates are down too, so they can see opportunity where others see lack.
What are smart practitioners doing these days? They're out finding new space to lease or buying an existing building or land for a new building. Contractors have had a long run of fairly good times and high construction prices in the last few years, but now that's all changed in most parts of the country.
For people who have all their ducks in a row this is a great time to build a new office. Contractors don't have as much work as they used to, so there is more competition for the work that there is and bids are lower. That's good news for the customer.
Let the rest of the world run scared. If you have worked hard to make your practice successful and are ready to take a step up, 2008 could be the perfect year to build the new office you've been wanting!
January 4, 2008
Construction Costs - Reality vs. Wish
When people call me to talk about building a new office, one of the questions I ask is, "How much per square foot have you budgeted for construction?" The answers mostly range from "I don't know" to $50 per square foot, which is way too low for an all-new interior build-out.
My rule of thumb for estimating construction costs is to figure $100/SF or more for interior only projects. If a client budgets for that amount and it comes in under, then we celebrate. For new buildings you can figure $250 per square foot or more.
Florida is one of the most expensive places to build, topped only by California and New York.. The last project I did in Florida, which was completed in the spring of 2007, came out to $125/SF. And that was for a very simple, no-frills design!
When you are planning a new practice you need to be informed on the realities of construction and design costs. People in the midwest and rural areas like West Texas can often get their construction done for less. But just about anywhere on the East Coast or West Coast it's always higher than you thought it would be. I'm hoping that my projects that are going out for bid in the next month or two will come in for less than last year's average. That's because there's less construction going on and more competition among the contractors now at the start of 2008.
You have to keep in mind that we work almost exclusively with clients in zip codes where at least two out of the top five lifestyle groups have a median income of $75K or more. When all the median income figures fall below $50K, we may not be the right design firm for the project. We don't go overboard with expensive finishes, but we do design to high quality standards that perform well for our clients for 15 to 20 years or more. Quality does not come cheap.
The point is you must do a lot of planning and research when it comes to opening a new practice or moving your existing one. Make sure you get realistic average construction cost figures for your area. If you are going into a higher income area that fits our profile, you can call me and I'll tell you what the latest "BWD Construction Cost Index" is.
Don't be discouraged if the numbers don't look like they will work out the first way you try. You may have to look for a smaller space or a place with lower rent. If you want to attract higher income patients, you can't skimp on construction costs, but there may be another strategy you can employ to make your project work.
My rule of thumb for estimating construction costs is to figure $100/SF or more for interior only projects. If a client budgets for that amount and it comes in under, then we celebrate. For new buildings you can figure $250 per square foot or more.
Florida is one of the most expensive places to build, topped only by California and New York.. The last project I did in Florida, which was completed in the spring of 2007, came out to $125/SF. And that was for a very simple, no-frills design!
When you are planning a new practice you need to be informed on the realities of construction and design costs. People in the midwest and rural areas like West Texas can often get their construction done for less. But just about anywhere on the East Coast or West Coast it's always higher than you thought it would be. I'm hoping that my projects that are going out for bid in the next month or two will come in for less than last year's average. That's because there's less construction going on and more competition among the contractors now at the start of 2008.
You have to keep in mind that we work almost exclusively with clients in zip codes where at least two out of the top five lifestyle groups have a median income of $75K or more. When all the median income figures fall below $50K, we may not be the right design firm for the project. We don't go overboard with expensive finishes, but we do design to high quality standards that perform well for our clients for 15 to 20 years or more. Quality does not come cheap.
The point is you must do a lot of planning and research when it comes to opening a new practice or moving your existing one. Make sure you get realistic average construction cost figures for your area. If you are going into a higher income area that fits our profile, you can call me and I'll tell you what the latest "BWD Construction Cost Index" is.
Don't be discouraged if the numbers don't look like they will work out the first way you try. You may have to look for a smaller space or a place with lower rent. If you want to attract higher income patients, you can't skimp on construction costs, but there may be another strategy you can employ to make your project work.
December 3, 2007
Top 10 Reasons and Ways to Go Green
By National Association of the Remodeling Industry (NARI)
Should you use green (environmentally friendly) building materials the next time you remodel or build a new office? The National Association of the Remodeling Industry shares reasons and ways to go green.
1. Lowers energy consumption
2. Reduces operating costs by increasing efficiency
3. Conserves natural resources
4. Increases the value of the building
5. Improves indoor air quality and in turn, overall health
6. Reduces waste and emissions.
7. Lowers pollution causing less harm to the environment
8. Increases productivity of occupants
9. Improves quality of life and raises comfort
10. Saves money
Should you use green (environmentally friendly) building materials the next time you remodel or build a new office? The National Association of the Remodeling Industry shares reasons and ways to go green.
1. Lowers energy consumption
2. Reduces operating costs by increasing efficiency
3. Conserves natural resources
4. Increases the value of the building
5. Improves indoor air quality and in turn, overall health
6. Reduces waste and emissions.
7. Lowers pollution causing less harm to the environment
8. Increases productivity of occupants
9. Improves quality of life and raises comfort
10. Saves money
Design Blunders: Display Background Color
Optical design and theatrical design have much in common. Both have a stage (background)
upon which the star (merchandise) is presented. Both rely on strong lighting to bring the audience’s attention to the star.
To make your frames into star performers, show them on a white or very light-colored background with the best lighting you can afford. Frames displayed against a dark background or mirrored surface are not seen as well because the background absorbs the lighting. There is too little contrast between eyewear and background.
Light backgrounds make the light bounce and reflect off the delicate details and subtle colors of the frames. It’s easier to bring out the jewel-like qualities of the frames on a light background.
Fortunately this can be an easy problem to fix. If your frame backgrounds are dark, simply paint them white. If your frame backgrounds are mirrored have a contractor install white panels over most of the mirrors, leaving an adequate amount of try-on mirror space exposed.
November 5, 2007
Designing for Sales
The latest feature article by Barbara in the October addition of Eyecare Business magazine.
Practitioners often struggle because the look of their office is at adds with the image they try to create with their marketing. The office environment become an obstacle to overcome instead of an asset that promotes the desired positioning.
Read this article in it entirety...
Practitioners often struggle because the look of their office is at adds with the image they try to create with their marketing. The office environment become an obstacle to overcome instead of an asset that promotes the desired positioning.
Read this article in it entirety...
Common Design Mistakes: Poor Sightlines
The line of vision between a person and an object is called a sightline. In optical design controlling the sightlines of what patients will see as they travel from one room to the next is a nuance that is left out of many office designs. When done correctly patients don’t realize that their sightlines have been carefully planned and limited. What they perceive is a very neat, clean and professional office.
A good optical designer knows where the messy places are likely to be: lab, contact lens storage, business office, private office, staff lounge. In addition patients in the main waiting area should not be able to watch doctors and staff scurrying about in the clinic area. You need to anticipate which rooms and areas should be completely hidden or partially obscured, then position walls and doors to allow little or no view for the patient.
Concealing unsightly areas must be thought-out and designed into the floor plan right from the start. If you don’t like what patients can see after the office is built, it’s too late to fix it.
November 2, 2007
Food for thought from a recent SCORE, "Counselors to America's Small Business" newsletter
I found a fascinating interview with business writer and lecturer Dan Pink in a recent SCORE (Counselor's to America's Small Business) newsletter. He says, "you can’t compete by process or economies of scale, but you can differentiate yourself through design, storytelling, the ability to see the big picture, and empathy."
Q: You stress the importance of design in right-brain thinking. What does that mean?
A: It's not solely about image. Design is utility enhanced by significance. You understand who your customers are, what they need and why, and what it takes to give meaning to your product or service. For example, many studies have found that the environmental aspects of health care facilities can enhance the healing process. Now, these facilities are being built with more natural light, meditative gardens, and other features to enhance the patient's experience.
Q: How does the design concept apply to small businesses?
A: Small business owners should be more attuned to a high-concept design because for them, it's a matter of survival. How you position yourself and the processes by which you serve your customers are all design decisions because they differentiate your business from something that may otherwise be perceived as a commodity. Many functions that professional services firms used to provide are now automated—e-filing taxes or checking mortgage rates online, for example. A high-touch approach may be your only way to offer customers something they can't find anywhere else.
Q: How can a small business owner develop design literacy?
A: Do things to enhance your sensibility to design, such as keeping a design "diary." Jot down any examples of good and bad design—whether it's a store layout or a company's customer service process—and review them periodically. That kind of awareness sharpens your eye and enhances your level of understanding.
To view the newsletter in its entirety, visit:
September SCORE Expert Answers
Q: You stress the importance of design in right-brain thinking. What does that mean?
A: It's not solely about image. Design is utility enhanced by significance. You understand who your customers are, what they need and why, and what it takes to give meaning to your product or service. For example, many studies have found that the environmental aspects of health care facilities can enhance the healing process. Now, these facilities are being built with more natural light, meditative gardens, and other features to enhance the patient's experience.
Q: How does the design concept apply to small businesses?
A: Small business owners should be more attuned to a high-concept design because for them, it's a matter of survival. How you position yourself and the processes by which you serve your customers are all design decisions because they differentiate your business from something that may otherwise be perceived as a commodity. Many functions that professional services firms used to provide are now automated—e-filing taxes or checking mortgage rates online, for example. A high-touch approach may be your only way to offer customers something they can't find anywhere else.
Q: How can a small business owner develop design literacy?
A: Do things to enhance your sensibility to design, such as keeping a design "diary." Jot down any examples of good and bad design—whether it's a store layout or a company's customer service process—and review them periodically. That kind of awareness sharpens your eye and enhances your level of understanding.
To view the newsletter in its entirety, visit:
September SCORE Expert Answers
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