19 Successful Tips in Running a Smooth Interior Design Business
The original article was posted on Houzz on March 24, 2020.
It’s no secret that running a business is largely comprised of trial and error until you find that magic potion that eventually turns your workflow into a well-oiled machine. Last year, Architectural Digest asked a selection of seasoned pro’s for their best tips on running on a smooth business.
Guess what their number one tip is for those either starting their own business or getting the one they own to run more smoothly?
Bring on an attorney and an accountant.
We couldn’t agree more. Sound accounting and legal advice is paramount to any business’s success.
Ellie Cullman, co-founder of Cullman & Kravis recommended hiring a bookkeeper who has knowledge of the design industry, citing the tedious nature of paperwork in which you shouldn’t be devoting your time to. Instead, design firms should focus on what they do best: Designing. Hiring a bookkeeper focused on the design industry to ensure that all of your industry specific bookkeeping challenges are being handled by professionals who have become experts on interior design accounting hiccups.
Shaun Smith, founder of Shaun Smith Home, remarks on the unique needs of design bookkeeping saying, "Billing in the design industry is still something I struggle with. It's one of the few professions that there simply isn't a standard formula. The biggest thing is to know your worth and don't waiver on that. As designers, our brains rarely shut down and that is valuable to the client in the work we provide them. Transparency in billing upfront is key. Early on I would place orders without payment in good faith because I wanted to just get things moving. I learned that is not the way to conduct a successful business. You end up robbing Peter to pay Paul, and [this] creates chaos when it comes to orders. Be upfront with your clients. You are not a bank; you are a small business that is providing a service, and products that should be paid for in a timely manner."
To add to these tips, securing a bookkeeper who becomes a partner rather than a contractor is key. Creating a relationship and allowing your bookkeeper to really learn your business breeds success in maintaining your financials. Drew McGukin, founder of Drew McGukin, seems to agree with that philosophy as he looks back on his early days of accounting and how he handled sales tax reporting, “You don’t realize how much it means to have consistent reporting from the beginning until you find yourself tracing back years later, patching together growth patterns tracked in several different systems."
Hiring a lawyer and accountant is just the beginning. Excellent tips such creating vision, managing growth, when to hire and when to fire, and much more are covered in Architectural Digest’s piece on 19 Tips From Successful Pros on How to Run and Interior Design Business.