Project business: how to organize and make good money

Project work, as a rule, implies a one-time execution of an order – handed over and forgotten. If you want to do something more fundamental, to work long-term, then you should look at the creation of a design organization. We will talk about how this type of business is built and what with legal registration, initial investments, we will tell further.

General concept of the project

The main activity of this type of enterprise is the development of a turnkey project. The result of the work will be the delivery of project documentation, layouts, technical samples, and so on – depending on the specifics of the project.

The main cost item will be the remuneration of specialists, since they are at the same time the most valuable asset of the company. Equipment and space costs will be minimal.

Choice of direction

The profitability of the enterprise depends on which direction will be chosen. At the moment, a promising and profitable direction will be the development of projects and related documentation in construction.

Individual or commercial design is carried out based on the requirements of SNiP, as well as consolidated regulations, 2 main types of activities are provided:

• Development of working projects only.
• Development of working projects on a turnkey basis, that is, together with project documentation.

The latter is better, since it will be more convenient for the client to order both the project and all the necessary documentation for it in one place, and not go to different companies or authorities. In general, a turnkey solution works better in most cases.

Registration and obtaining a license

Creating a project business from scratch also implies solving some legal issues – you will need not only to register the enterprise itself, but also to obtain licenses for activities.

Please note: according to Government Decree No. 174 of March 21, 2002, at least 50% of employees in a design institute must have a higher specialized education and practical work experience in the same field for at least 5 years.

The primary license is issued for up to 3 years, all subsequent ones for 5 years.

In order to register a design organization, you will have to open an LLC or an individual entrepreneur. It is easier and cheaper to open an IP, but this will not always be the best solution.

The basic package of documents for obtaining a license includes the following:

• Application for registration as an individual entrepreneur or LLC.
• Receipt for payment of state duty. For individual entrepreneurs it is 800 rubles, for LLC 4000.
• A copy of documents on tax registration.
• Founder documents.
• If it is an LLC, then the charter and certificate of state registration.
• Receipt of payment of the license and registration fee.
• A copy of the document confirming the receipt of the relevant higher education and degree of qualification.

The decision to issue a license is made no later than 2 months after the application is submitted.

As for the registration of the business itself, you need to contact your territorial office of the Federal Tax Service for this, although the application itself can also be submitted online through the State Services.

If you intend to register an individual entrepreneur, then you need to have only 3 documents with you: passport, TIN, receipt of payment of the fee.

For an LLC, the package of documents will be a little more:

• statement;
• copies of the founders’ passports;
• company charter;
• certificate of registration as taxpayers;
• a lease agreement for premises or a title deed of ownership;
• fee payment receipt.

Note that the requirements in the legislation regarding the registration of entrepreneurship change quite often, so it is better to clarify the list of documents directly with the Federal Tax Service – on their website or in the department itself.

What kind of work can be done?

Business on design work involves the provision of such services:

• carrying out design and survey activities;
• development of commercial and individual construction projects;
• development of a project for a specific engineering object;
• design of repair and finishing works for individual and commercial facilities;
• design of structures of reinforced concrete types.

Depending on the bias of the enterprise, the list of services provided, of course, may be modified.

Solution of organizational issues

At this stage you need:

• select and equip the premises;
• recruit staff;
• solve current organizational issues that arise when establishing work processes.

Let’s start with the premises. For a design organization, an office that meets the following requirements will be optimal:

• area 60-70 squares;
• preferably the city center, there should be a public transport stop nearby, a metro station, good infrastructure, a parking place;
• the premises can be divided according to the open space type, the manager can have a separate office, since meetings with clients and meetings of employees will also be held there. Separately, there should be a room for rest, eating, a bathroom with hot water and all necessary accessories;
• Must have good high speed internet.

You will need the following equipment:

• modern PCs with good monitors;
• printing technique;
• telephony;
• projector;
• licensed software;
• office mobile phones, but this is not required.

Additionally, you can organize a corporate library, but this is a matter of time and perspective.

You will also need equipment for the rest room: a refrigerator, a microwave and a kettle.

Additionally, for comfortable work you need:

• conveniently equipped workplaces, do not forget about lighting;
• kitchen dishes;
• consumables: paper, organizers, writing utensils.

Recruitment

This is the most important point in organizing a business in design work, since it is the qualifications and experience of your specialists that will be the key to successful projects.

At the start you will need:

• Lead Engineer;
• lead architect;
• specialists in project development and project documentation.

It is highly desirable that there be:

• lawyer;
• office manager or administrator;
• accountant.

The average salary of the main workers is about 50,000 rubles. As for the administrator, the average check in the market is 30,000 rubles. The functions of an accountant at the initial stage can be outsourced. You will also need a cleaner, but she can also come, about 2-3 times a week, her salary is about 10-15 thousand rubles. The minimum wage fund for a month will be about 200,000 rubles.

Running a business successfully without advertising will not work, and even more so, you need to take into account the fact that the niche we are discussing is highly competitive. The following advertising tools will work, with proper elaboration:

• own site – well-optimized, with connected advertising;
• outdoor advertising – banners, video and audio in the mall, in public transport, in business centers;
• promotion in social networks.

You will also have to work in the fields – with a well-developed commercial offer, contact construction companies, large developers. Participation in tenders, both public and private, can work well.

Starting costs

At the start, you will have to spend a considerable amount:

• room rental – about 40,000;
• wage fund – approximately 200,000;
• purchase of furniture, consumables – about 100,000;
• registration activities and obtaining a license – approximately 70,000;
• advertising expenses – about 100,000.

In order to launch a project business from scratch, you will need about 550,000 rubles. It is advisable to take the amount with a margin in case of unforeseen circumstances.