4 minute read
7 Keys to a More Profitable Interior Design Business
Having a clear vision, good understanding of your profit model and well-defined processes and procedures will help your business succeed
BY GAIL DOBY, ASID
Y
ou put a lot of time and effort into your interior design business. Why not get more out of it? Having a more profitable business does not come from working harder. It comes from working smarter and adhering to proven principles for business success.
From my own experience running a successful interior design business and helping other designers to grow their businesses, I’ve identified seven critical factors that can turn a revenue-generating business into a profit-generating business. It all starts with choosing to focus on the areas of your business that matter most.
2WELL-DEFINED BRAND EXPERIENCE Once you’ve established your vision of your business, you can create a branded experience that embodies that vision. A well-defined brand experience permeates every aspect of your business, from your graphic and marketing identity to the types of projects you do, your interaction with clients and suppliers, and your firm’s culture, values and busiA well-defined ness operations. Your brand is your reputation. Your brand experience is delivering on that repbrand experience utation time and again in order to provide excelCLARITY OF VISION You can’t achieve success if you don’t know what it looks like. There are lots of different interior design firms out there. 1 permeates every aspect of your business. lent customer service, instill confidence and build trust—the foundations of a successful business. IDEAL CLIENT PROFILE3 What kind do you want your firm to be? An ideal client is one you want to work with, who appreciates the Who are you serving and why? What makes your firm different? value you bring and who can offer the types of projects you want What does success mean to you? How will you know when you’ve and need to do to make your work satisfying and your firm profitachieved it? A well-defined vision gives you direction and allows able. Knowing the characteristics of your ideal client will help you you to measure your progress in concrete, meaningful ways. to identify who they are and how to attract them. In addition, it
will help you to stay focused and say “no” to those prospects and projects that are not a good fit.
4PROFIT MODEL How much profit are you hoping to gain annually? To reach that goal, you need to calculate how much revenue you will have to earn to cover your operating costs and other expenses, plus the surplus that is true profit. From that number, you can determine how many projects of a certain size you will need to bill and at what rate. While you can’t control everything that may impact profit, a profit model is the best way to set a target and achieve it.
5PROCESSES & PROCEDURES Unless your business model also includes retail sales or some other additional revenue stream, you only earn money when you bill for services rendered. When it comes to profit, then, time is your enemy. Any time you spend on your business that you can’t bill is money lost, and that eats into your profit. By the same token, whatever saves you time potentially enhances your profit. Having established processes and procedures for your design work and business operations will save you a lot of time spent on administrative matters, freeing you up to do more billable work.
6
MARKETING PLAN & CONSISTENT EXECUTION
To reach your revenue goals and maintain a manageable cash flow, you need a steady stream of projects throughout the year. That requires constant and consistent marketing, networking and outreach. Start with a marketing plan designed to attract your ideal client. Implement parts of the plan every week. I recommend you schedule a minimum of 10 hours per week on marketing activities.
7NETWORK OF REFERRERS Satisfied customers are your best branding and marketing tool. Next are suppliers, vendors, contractors, builders, real estate agents and others in the community who can refer clients to you. Develop and maintain a network of people who are willing to give a referral. It’s like having a PR agent promoting your business while you’re busy working.
Running a profitable business results from planning and execution, not luck. By directing your energies toward creating the business you want to have, you set yourself on the path to mak-
ing it come true. z
Gail Doby, ASID is the co-founder of Gail Doby Coaching & Consulting. GailDoby.com
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