Don't devalue money like I did
Robert Yuen
Architect turned CEO @ Monograph | Design-centric Project Management for Architecture and Engineering Firms | Trusted daily by 12,000+ architects and engineers
I'm Robert Yuen, CEO and Co-founder of Monograph. Welcome back to Elevations, the monthly newsletter where I share unique insights to help A&E leaders elevate their business!
I devalued money for so long.
(Which is what a lot of architects do, right?)
I over-committed so much on:
And I under-committed with money.
I don’t mean this in a greedy sense like “Give me more money!”
I just mean relative to strategy and understanding of finances.
It took me a long time to value money and I wish I had done it sooner.
Our education teaches us design literacy. And construction literacy. But it’s time we gain financial literacy too.
I’m on a mission to bring financial literacy to architects in 2024.
Here are three things you can do in the next week to prioritize financial literacy:
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1 - Take time to review and ask questions about your financial statements:
Set aside a dedicated block of time to go through your financial statements in detail. Don't just glance at the numbers; dive deep.
Challenge yourself to understand the story behind each figure. Where is the revenue coming from? What are the major expenses? Are there any numbers that surprise you? This is also a great opportunity to engage with your accountant or financial advisor. Ask them to explain anything you don't understand and discuss potential strategies for improvement.
2 - Attach project goals to financial goals:
Most A&E leaders are driven by the desire to create meaningful and impactful work. But it's essential to ensure that your projects are not only aesthetically pleasing but also financially sustainable.
Starting this week, begin the practice of linking each project goal with a financial goal. This could mean setting a budget that allows for creative freedom while also ensuring profitability, or identifying specific financial milestones that each project needs to hit.
By doing this, you're not only safeguarding your business's financial health but also instilling a sense of financial responsibility within your team.
3 - Be transparent with your team:
Transparency is key to fostering trust and collaboration within any team. Take the first step towards financial transparency by sharing relevant financial details with your team.
Discuss the financial health of the practice, the financial goals for projects, and how their work directly impacts these goals. Encourage an open dialogue where team members can ask questions, share concerns, and propose ideas.
This will not only empower your team but also promote a culture where financial literacy is valued and understood by everyone.
What do you say - are you in? ??
Serial Entrepreneur / ?? Founder of Progress Investor Club / ?? Precision Investing with an Engineer’s Edge / Passionate about Financial Independence / Youth Basketball Coach ??
1 年Love the message Robert Yuen - it's important to do great work, but it can't be at the expense of devaluing money. Keeping a firm financially viable is a major part of being able to do great work.
I create business success for architects.
1 年I think one of the issues in gaining financial literacy is data gets confused with insight. We work on the principal that less is more when it comes to financial reporting. We focus on data that measures performance (against a budget), trends in the form of KPIs and provides visibility around likely future results.The other essential is consistency of reporting. A monthly ‘board meeting’ is a key recommendation in what we call our Business Success Formula. Thanks for highlighting this key opportunity for architects
I Craft Personalized Wealth Blueprints for Architects and Engineers | Engineer Turned Financial Planner
1 年Money is a tool. That tool can be used for a lot of things and in a lot of ways. Don't limit your potential by thinking that money is inherently bad.