There’s a moment in almost every architect’s career where the idea first surfaces—quietly at first, then louder over time: What if I started my own firm? Maybe it’s the itch for creative freedom, maybe it’s frustration with someone else’s decisions, or maybe it’s just the instinct to build something of your own. I’ve had this conversation more times than I can count—at desks, on job sites, over drinks after a long day. It’s a topic that stirs up excitement, fear, pride, and possibility all at once. Today, we’re stepping into that mindset—the leap, the hustle, the vision behind doing your own thing. Welcome to Episode 177: Hanging Out Your Shingle
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We have a special guest to assist us with discussing today’s topic. Joining us is Daniel Istrate, AIA — a licensed architect and co-founder of Kontexture, a Phoenix-based architecture firm with a growing international presence. Originally from Romania, Daniel moved to the United States as a teenager and went on to earn his architecture degree from the University of Arizona, with studies that also included Italian, Literature, and a minor in studio arts.
He began his career at a small local firm, later navigating the challenges of the 2008 recession while gaining experience at a large national practice. But like many of us, he felt the pull toward something more personal, and in 2013, he made the leap, leaving a stable job to start his firm with longtime friend and collaborator Jorge Toscano. Since then, Kontexture has grown to include two offices – one in Phoenix and another in Hermosillo, Mexico – and in 2018, they expanded into construction by launching a design-build company.
Daniel is joining us today to discuss betting on yourself, building with intention, and creating a firm from the ground up – all themes at the heart of today’s topic.
Let’s start at the moment just before you decided to launch your own firm – what pushed that decision from a long-time idea into something real?
The first time I played with the idea of opening a firm with another colleague from the first firm I was working at was in 2007 right before the recession. We quickly realized that was not good timing so we decided against it. Looking back that was a really good thing, I was only two years out of school and still very green. After weathering the recession at Smithgroup and getting licensed while there, I started taking on some side work. I got an offer from another firm to move there as the principal was thinking of retiring soon and was looking to have someone take over. After being there for a year, on a Friday night at 1:00 am while still at the office I decided that this is the time. I already had a steady stream of clients and projects that I was doing on the side (moonlighting)
You didn’t start Kontexture alone – can you talk a bit about that partnership and how you and Jorge divided up the early responsibilities?
I started Kontexture with Jorge whom I met while we were both in first year at the U of A. We always talked about starting a firm together, even while in college. Early on we were each responsible for our own projects, from early meetings with clients, to design, construction documents, Construction Administration, etc. But we have identified early what each of our strengths were and we worked off of that. Jorge is a stronger designer and I am more technical.
When you first opened your doors – how did you find work? Did you chase the kind of projects you wanted, or take what came?
We started the firm with about 20 small projects that we were both working on, on the side. Once we started the phone kept ringing and we kept getting work based on recommendations from engineers we were collaborating with, contractors and most important, the clients we had were recommending us. We did not have to chase any projects, but we were not being selective either, we took everything that came our way.
What were some of the most unexpected early challenges – not design or technical ones, but the business side: contracts, accounting, finding your first hire?
Funny you mention that. Contracts were the biggest challenge. Neither Jorge or I had any experience at the previous firms putting proposals together, we were not in the positions where we had access to that information. It was that difficult for residential work, but for commercial, we were using google to find out how to charge for projects, so between price per square foot and percentage of construction costs, we were either really high and not get the project, or too low as the client couldn’t sign the contracts fast enough. So that was challenging, even 12 years in we still sometimes run into that. The first official hire was this guy Michael that I knew back in Tucson, and he was moving from New York to Phoenix to be with his girlfriend, so it was someone I knew personally. All the other people we hire were people we know, or worked with, or were recommended which made it a bit easier.
You’ve described your office as deliberately diverse and people-focused. How early on did that vision shape your hiring, and how do you sustain it in practice?
Every office I worked in after graduating I observed how my bosses were and how they operated. I would make mental notes on things I thought they did well and if I were to ever have a firm to emulate that or when I saw things that I thought were wrong to never do that as a boss. I had a college professor that told us the importance of working for a firm where you feel appreciated, and that it should weigh more than the salary and title. I did not give it much thought at the time, but while working at the second firm after graduating, Anca (my wife) gave birth to our second son, and my boss told me I could not leave to pick-up Anca as she was being discharged from the hospital because we had some meeting to go to. I had to ask my dad to go and pick up my wife. I quit that job two weeks later even though we were in the middle of the recession. I was fortunate enough to find another job in 2009 when most firms were laying people off or even closing their doors. With that in mind, I told myself that I would never want to have people working for me that dreaded coming into the office, because I experienced that feeling myself.
We are a pretty diverse group with people from all backgrounds.
What were some pivotal decisions or moments that allowed your firm to grow—not just in size, but in identity?
If this was a scientific experiment, in order for the theory to become law it would have to be duplicated by other people. What I mean by this is, I am not sure this would work for other firms but it has for us. As we started getting more projects or even bigger projects, we still got calls for smaller projects (small remodels, additions, or small TI’s), not the type of projects you would brag about at a cocktail party. But I can’t tell you how many times taking on those projects ended up leading to a lot more substantial work. One example was when I got a call from a civil engineer we did a lot of work with. He asked if I was interested in doing a TI for a marijuana dispensary. and I said sure. So the engineer passed my number to the client who called and basically said that they already had the project designed, they just needed someone to draft it and I was willing to do it. It was just as marijuana became legal in Arizona and there were a lot of regulations on it, which I did not know at the time. The client educated me in all the regulations, we did the project, and then asked if I were interested in doing some grow facilities to which I said, sure. That started a long string of projects in the cannabis industry that otherwise I would have never had the opportunity to do. A lot of firms were competing for those projects early on and we were fortunate enough to be one of the first firms to do those types of projects. So a long answer to say, don’t be afraid of the unknown or to say yes and most of all don’t ever think you are above a certain type of project because you now “made it”.
As a follow-up, do you have a final/ideal firm size in mind? Or what is your growth mindset or strategy for the firm? When did you develop this? Has it evolved over time?
When we first started we never set out to grow to 24 people. We are not set up like a corporation where we sit down at the beginning of the year to set goals or targets for growth. We have grown organically and what felt natural to us. It might not be the right approach for everyone but it has worked for us. Even though we have 24 people we run the practice like a small firm and as of now we have no plans of expanding any further, but with that being said, I don’t know what the future holds. I just don’t see myself being a principal at a large firm of 100+ people. just the thought gives me anxiety.
You’ve taken some less-traveled roads to build and sustain your practice—what’s something you did that might surprise people?
As mentioned earlier, we took on just about every type of project that came our way (even if we did not have experience doing those types of projects), we tried to hire just friends or friends of friends. We took on hires that Kontexture was their first job in the US and that paid off, we took a chance on them and they became very good and loyal employees. One such example is Carmen, who started as a drafter six years ago and she is now one of the principals. Same with Denisa who started as a front desk secretary and now is the director of operations and principal.
Opening the second office in Mexico was something that was less conventional. One thing I would mention is that we did not hire consultant drafters, but we opened an office and hired architects, three of which have since moved to the Phoenix office. I just heard recently from one of my friends whom you meet in DC at the AIA that there are two types of architectural firms, one that focuses on scalability and profit and another one that focuses on lifestyle. He believes our firm focuses more on lifestyle and that is ok with me. With that being said, we did a handful of pro-bono projects in Kenya, Burundi and Romania just as a way of giving back and to keep yourself grounded.
Do you think being an immigrant has influenced how you approach the business of architecture?
I do, I really do. I am not sure this is the platform to address that. Jorge and I have always steered clear of politics when it comes to business as we get clients from all walks of life. What I can say as an immigrant is that I was offered every opportunity that someone that was born and raised in the US. I am a product of the public education system, and I don’t feel like I was ever discriminated against or did not get projects or promotions because of my background. I am a firm believer in working hard and that was instilled in me from an early age. Bob, I believe you have shared on a couple occasions that growing up your dad would make you do work, any work as long as you did not waste time. I was brought up the same way. Not sure where I first heard this, that the definition of luck is “When preparation meets opportunity”
What parts of running your own firm still keep you up at night? And what’s become easier over time?
I am sure I am not alone in this, but every small business owner (regardless of the type of business) stresses and loses sleep over payroll, where will the next project come from, what if there is another recession, what would happen to the employees? I am not sure easier would be the right word, but as we did more and more projects we became more and more confident in our abilities, the work got better, and that made it easier in a sense to get more work.
What about the opposite? What is now more challenging than when you were not an owner or maybe even when you were just smaller in size?
Being able to go home at 5 or 6 and not worry about things until the next day, or if a Friday until Monday. But it does not stop. My dream in life now is to go on a vacation without my laptop. I have not done that in 15 years. The emails and calls don’t stop. I always answer because it might be a new client. And a lot of times that I answer, the first thing they say is that they found the right answer because I answered the phone.
Is there any element so far in your ownership journey that you would approach differently now? Maybe not in a regretful way, but more from an experienced owner’s way?
For starters, I wished I had taken more business and marketing classes in college, maybe even minor in it. One thing our architectural education is doing wrong (in my humble opinion) is teaching us how to run the business of architecture. Maybe to be more selective with the work we take on. I was always so concerned with not making it that I said yes to every job. Instead of being concerned with the type of projects that we put out, I was concerned with the thought of “Will I still be in business in 1 year” and even after 12 years and about 1000 projects that thought has never left.
At what point did you and Jorge realize that launching a design-build company made sense for Kontexture? What gaps were you trying to fill—and how has it changed your approach to both design and project delivery?
I can pinpoint an exact project. We designed a house for a client out of state, a doctor that was working for Mayo clinic. He needed a house in Arizona for 4-6 months a year. The program was great, the site was amazing. It was the type of project you dream of and wait for, that usually never arrives. After the design was done and permits were issued, construction started. As it is usually the case, once construction starts, the contractor has the client’s ear. And it’s all about “saving the client money” This house has a full facade of glazing facing SW in Arizona. We had designed an 8’ Corten steel canopy (the whole house is Corten steel and glass). Well the contractor told the client the “huge” amount of money they would save by eliminating the canopy, so they did. All of our pleas went unheard and the client and contractor decided it was not needed on a mainly south facing glass in the Sonoran Desert. After that episode, Jorge got his GC license and we started Tectonica, a design built firm that only builds projects for Kontexture.
Was there a moment when you felt like you stopped being “just an architect” and started thinking like a business owner? What triggered that shift—and how did it change your day-to-day mindset?
I think that starts when you decide to quit a good paying job to venture on your own. At the time I had my two sons, Jorge and two sons and my wife was pregnant with our third child. Even with that, Jorge and I talked about worst case scenarios and if they were to come to pass, we would just go and get hired to some firm. I know of people that did that and it was not the end of the world. But once we started hiring people, and hiring more, my mind did a radical shift, that I am responsible for these people that have rents, mortgages and families. Some have moved from out of state for this job. It became apparent that me doing my job (bringing in work and keeping the firm afloat) is directly connected with them collecting a check every two weeks. And that I take the most serious out of everything that I do. I don’t want to let them down, and the fear of failure has become the biggest drive.
If someone’s listening who’s on the fence about starting their own firm – what’s the most important mindset or lesson they should walk in with?
I was a little naïve when I started (and maybe that was a good thing). I thought that being your own boss you set your own schedule, you do what you want and when you want with no one to report to. And that is true, I could come in at 10 and leave at 2 and not have to justify it to anyone, but the reality is that I get in most days before everyone else and I am also the last to leave. I put in a lot of hours, a lot more than I anticipated and that could take a toll on the family work balance. I also thought I would be doing a lot more “architecture”, but I spend most of my time just running a business, it just happened to be the business of architecture. It’s a lot of work, but in my experience it is very rewarding at the same time. If I could do it again I would, maybe with the knowledge that I have now, I would avoid some of the mistakes I made.
What’s the Rank jump to
Time for a “What’s the Rank” … and I didn’t ask Daniel if he was going to play along or not so he is going to have to think fast on his feet …and he has to answer first so Andrew and I can tell him how wrong his answers are.
Today we are going to rank the 4 seasons of the year … and despite the argument that all three of us can make about not actually experiencing all 4 seasons based on where we live, we are aware that they exist.
#4 #3 #2 #1 Daniel Istrate Winter Summer Spring Fall Andrew Hawkins Spring Summer Fall Winter Bob Borson Winter Spring Summer Fall
The problem with answering this particular question is that two of us live in Texas and the other in Arizona … so we are lacking a proper Fall and Winter experience. Don’t misunderstand me – winter’s in Texas are a complete drag. It doesn’t get cold enough to get any of the positives from a proper winter (no snow and no need to proper winter clothing) but it gets cold enough to induce some suffering. On the upside, we don’t deal with having to drive around on snow or having to look at how gross snow starts to look after it’s been sitting around for a long time.
Ep 177: Hanging Out Your Shingle
There’s no perfect time to start your own firm—only the moment when the need for autonomy, purpose, and belief in your own vision finally outweighs the safety of the familiar. After talking with Daniel, I’m reminded that building something from the ground up doesn’t begin with certainty—it begins with a question, a risk, and often a moment of frustration at 1:00 a.m. in an office that no longer feels like yours. The truth is, going out on your own is messy, but you’ll also create a place that reflects your values, take pride in the people who grow with you, and maybe even find joy in the parts of practice you never expected. It’s not for everyone—but for those who feel that pull, my experience tells me that it’s worth every uncertain, exhilarating step.
Cheers,
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