Starting Your Career as an Interior Designer: The Business of Interior Design

Nuttin' For Christmas

As a young child the five or six days leading up to Christmas were, for me, a magical and exciting time.  As with so many children I counted the days until Santa would arrive.  No matter what anyone tells you it was all about the gifts.  What would he bring that you had asked for?  Would anything be forgotten?  There would always be a few surprises, as well.  When I was six my brother and I were surprised by a wonderful train layout that would fit ever so snuggly under the eves of the attic in our house.  Rick and I were excited beyond belief.  There are times when I rate that Christmas as one of the best ever.  Certainly there were other Christmas days that probably rated right at the top but the train set kept giving back year after year.  In fact, it wasn’t until the late 1980’s that my brother and his wife took the train set for their two boys.  I often wondered if their girls ever had the same thrilling moment when seeing something like the train set for the first time.  I’m sure they did and maybe one day they will write about that particular Christmas day.  I suppose I digress but this is the time of year to relax just a little and remember what has come before.  My parents, as well as Robert’s, are no longer living and Christmas has taken on a completely different feel for both of us.  Over the years we were able to share the holiday with parents as well as siblings.  These days we’re all older and getting the kids to come visit with their kids is more and more difficult.  So as the days before the big day pass I thought about what I might want for Christmas.  World Peace?  Oh, please. 

I’m happy my family and those near and dear to me are healthy and well.  I’m thrilled Robert and I have new projects and challenges ahead to keep us busy and productive.  So, I don’t want any one thing or item for Christmas but a range of opportunities.  I believe the coming year will present those opportunities and each of us will see an increase in productivity and a stronger bottom line.  Is that a good choice for what I want for Christmas?  It might not be for everyone but for me it’s the only thing I really want.  Robert and I long ago gave up a particular gift for Christmas.  We have, for many years, shared lunch on Christmas Eve at one of the many restaurants in the area that have good food and wonderful views.  This year will be the same.  On Christmas Day we will have a large group for luncheon and I know a few will stay well into the evening.  This, I know, will fill me with warmth and good cheer.  At the end of the day I will reflect on the joy of the season and the happiness of good friends and associates.  Is there really anything else I should ask for?  I think not.  Merry Christmas.  Peace on Earth Good Will to All Men.    

Don't Just Stand There

For most of us in the profession this is the time of year in which we see a slow down in activity both by clients and vendors.  From now until the second week in January items either won’t ship or will be held up for one reason or another.  Many of the firms with whom we do business have already announced closing dates over the holidays.  I know it’s a great way to give time off where needed and an actual savings for many of the firms but it sure does slow business down.  I know I’m beginning to sound like the Grinch who stole Christmas and that is not my intent.  I have always found this time of year frustrating from a business point of view and thrilling from a personal point of view.  For the business I continue to clean up the accounting, sort invoices and bills into proper categories for taxes and, in general, just clean up the office.  I make sure we have the new calendars for 2010 and start filling in the dates for meetings and the like I already know I will be attending.  I’ll work next week to write the blog for the 23^rd and will organize some thoughts for the following week.  I will not be sitting here tapping my foot waiting for Christmas.  Robert and I have also made arrangements to have our book displayed at a few other vendors in the area that attract those interested in Interior Design.  However, once Christmas Eve arrives its Hasta Luego for Hale-Williams Interior Design until January 4^th.  Yes, even I contribute to the business slow down.  I just can’t resist.  For years we had the company Christmas lunch on Christmas Eve and then everyone went home.  We didn’t return to the office.  Robert and I always gave the day after Christmas off and repeated the same routine for New Year’s Eve.  One year, between the holiday and weekends, it became apparent to us it would be easier to give the whole week off.  So that’s what we started and haven’t gone back to working between Christmas and New Years.  This year just may be the year to work with the new retail space beginning to come into fruition and lots of things to get organized.  We’ll still have time for ourselves and time to spend with friends so I won’t be cranky, I promise.   Actually, I’m sure you’ve had all sorts of parties and open houses to attend and just might be looking for a little quiet time.  I enjoy the invitations and like seeing people I might not see as often during the year at a marvelous open house with good food and cheer.  Cheer!  That’s what we call alcoholic beverages, isn’t it?  So, yes, it all makes for fun conversation and an attempt to watch the waistline.  It’s just all so much fun, who can resist? No one, I hope.  As we get close to Christmas stay busy in the office clearing the decks for the New Year.  It promises to be a dilly. 

(The Best Part of) Breaking Up

As many of you know Robert and I gave up our retail space over a year ago in November of 2008.  Breaking that 8 1/2 year lease relationship with Crossroads Shopping Village wasn’t easy for us but it came at a perfect time for us to move into our home and save on overhead.  We are very near an agreement for a new venture which will give us a new retail space and I couldn’t help but think about not being at the Crossroads and how our freedom from that lease allowed us to create this new collaboration.  Change is so difficult for many in our business and sometimes it takes a “break up” to help us see new ways to prosper and succeed in this business.  I’ve spoken before about when it might be the right time to “fire” a client and how it will affect your bottom line.  There are also times when deleting vendors from your product line will be a good idea.  Fortunately for us these break ups needn’t be as painful as a divorce.  We’re in business and from time to time we should assess our resources and whether or not they are productive for us.  Take some time over the next few weeks and evaluate your position vis-à-vis your vendor list and plan to drop those you no longer find useful or productive.  Things change over time and what was fashionable and desirable three years ago might now look hackneyed and tacky.

Now might also be a great time to assess some of your business practices.  There was a time not so long ago when we all looked at outsourcing as much of the day to day business as we could.  With advances in technology and software there may be tasks you outsource that might be best done and more productive bringing back in-house.  Does your accountant need to do every last check for you?  Is it necessary for payroll to be done outside of your firm when your staff has gone from fifteen to seven?  Look at all those tasks that might not cost a huge amount of money but, when added up, account for a substantial part of your total overhead.  Should you decide to bring a task in-house make sure you are professionals and businesslike when you terminate the contract with these vendors.  As I am saying in this blog things change and you just might need them in the future.  Make sure there are no hard feelings because you want to have them as a resource should it become once again desirable to outsource.

Once you determine what changes you plan to make prepare for how the work will be done in your offices.  I’m not suggesting you change everything this week.  It might be prudent to wait until after the first of the year to start some of these tasks.  The staff that will become responsible for implementation needs to be up to speed and knowledgeable about the processes you plan to run in-house.  Get them ready over the next few weeks then, once the holidays are over, you can set whatever plan you have created in motion.  None of this is change for change sake.  It will improve the bottom line and help you manage your business more closely than ever before. Spend some time thinking about what you believe your needs are then give it your best shot.  Ultimately you won’t be disappointed.   

The Year of the Dragon

As we move forward to the end of the year now it the time, if you haven’t already, to take a close look at what will probably be your year end sales results.  Most of us who operate small businesses use the calendar year as our fiscal year, as well.  So, we are in the third month of the last quarter of 2009.  On December 31, 2009 we will close our books for IRS purposes.  Nothing will really change once 2010 begins but it will be a new fiscal year.  So what does that mean to you as a small business person?  If this is your first year in business it might mean more expenses than income and you might be posting a loss.  You might also be posting a loss because of slow sales and contracts this past year.  In consultations with your accountant you may have realized paying a few more bills before the end of the year might improve your tax situation.  The type of accounting you use will determine how you will pay bills and receive income over the next four weeks.  Did you decide early on to use a Cash system of accounting?  Are you using Accrual?  Do you know?  It is very important for success to understand how these two types of accounting can impact your bottom line.  The IRS simply loves accrual.  Why?  Because it gives them more money up front against the taxes you will be paying in the coming year.  It also reduces the peaks and valleys of the cash system.  With accrual you are taxed on how far a particular sale has progressed toward delivery.  When you sell a sofa, for instance, you begin to report income based on how far along the production of the piece has come.  Each stage makes your “income” greater because it is closer to delivery.  With a Cash system you are liable only when the item is completed and delivered.  I am not an accountant and there are other, more prosaic, explanations and liabilities of which you should be aware.  That’s’ why it’s so important to work with a professional accountant when planning your yearly budget and preparing your tax return.  These men and women understand all the implications of all the current tax laws both federal, state and local.  I can only give suggestions and advice predicated on my experience running a corporation, LLC, partnership and sole proprietorship. 

This overview will also give you a chance to consider the budget you should be creating before January 1, 2010 rolls around.  What! you haven’t thought about your budget?  Do it now.  It will help you evaluate what areas of growth you expect and where you might want to cut back on expenses.  Either way, this is another very good step toward economic health for your company.  Budgeting is a little like writing your business plan for the upcoming year.  The business plan will help you define your areas of financial expertise and those areas in which you might be lacking. 

So, use the time over the next few weeks, which is usually a quiet time for many of us, to hone your accounting position to best reflect what your true liability might be and, at the same time, mitigate any taxes you might owe come December 31, 2009.

Good Morning Starshine

The first thing this morning, via email, was the announcement that our book, Starting Your Career as an Interior Designer, has been named by Library Journal, the national magazine for library and school professionals, had named our book one of the five best How-To Books for 2009.  This is a very big deal.  I spoke to our publisher and he said none of their many hundreds of books over the past twenty-five years had achieved this distinction.  He was the one, actually, who sent the email.  Robert and I are so pleased and I know we will see an increase in sales.  Even more importantly is the national exposure.  We expect to see an uptick in sales and there are sure to be other people notice the book for the first time.  All in all, a good day, so far. 

I, of course, made sure all the media outlets with which we work have been made aware of the selection.  Our clients and those who might be thinking about becoming our clients are sure to see the notices.  The local newspapers have already asked for more information. 

Was it worth the time and energy to write the book and get it published?  You tell me.  The editorial articles, small notices and other small blurb in the papers will be seen by thousands of people.  If we had to pay for that as advertising it would have run into the thousands of dollars and all it would be is an advertisement.  With this type of publicity we continue to position ourselves as experts in the field.  No one in our area has even come close to this type of achievement.  Am I tooting my own horn?  You, bet ‘ya.  We should never hide our light under a bushel basket.  We always want everyone to know what we are doing and how exciting it is. 

Thursday is Thanksgiving and we plan to spend time with a few close friends.  Actually, the executive director of the Monterey Museum of Art.  I am going to ask him to write the fore word for a new book I have proposed to Allworth Press.  Yes, I really do enjoy writing and I hope they give me the opportunity to create a third book for them.  If so, I’ll be sure to let all of you know.

Have a wonderful holiday and thanks the stars for all the wonderful things we have in each of our lives.  Is it work most of the time?  Of course.  Just make sure you enjoy what you are doing.

Starting Your Career as an Interior Designer has just been named one of the five best How-To Books for 2009 by Library Journal, a national professional publication.

Satisfaction

Over the many years I have been in business as a professional interior designer I have strived to position the business as the expert go-to entity in the area.  That goal was realized last Friday when we were mentioned in a real estate ad.  How, you will ask, does that have anything to do with position?  Positioning and branding are two of the toughest nuts to crack in our world.  Positioning requires a strict adherence to the way you want to be seen within a specific community.  Branding is the look of you and your firm.  Together positioning and branding help create the “mystique” of your particular business.  It was what people think when they think of you and your business.  I live breathe and drink the business of interior design.  It is part of how I define our position in the community and how look and where we go when we appear in public.  It is not an easy task and certainly not for the faint of heart.  Once positioning is established branding can’t be far behind.  Both help promote you in the market place and create the bottom line people think of when thinking about you and your business.  By the bottom line I mean the perception of how you operate as a business.  It’s important you have a clear idea of what that might be.  It takes time to establish the persona of your business but once created and set in the minds of the community it becomes harder and harder for them to think about you in any other way.  Good press, community involvement and participation are also very helpful.  

     So, what about that real estate thing?  Eighteen months ago we finished a beautiful renovation of a home on the golf course at Quail Lodge.  The clients have decided to put the house on the market and we are in the midst of creating a 7,000 square foot home for them in Arkansas.  Don’t ask.

The first print marketing ads appeared this Friday and we are mentioned in the ad to help support the brand of the agent and, one must believe, help sell this house.  The ad said, in part, “Recently designed and renovated to perfection with the expert eye of Hale-Williams Interior Design”.  Now unless you lived in our area that might not mean a lot but it appears the agent, home owners and broker all believe attaching the sale of that house to our brand enhances their chances of a sale.  It is a wonderful validation of the work we have been doing for the past ten years in the area and how working with realtors can, indeed, bring business and respect within the community.  We are delighted the agent, broker and home owner saw the benefit of using our brand and delighted at the prospect of other realtors seeing the ad and realizing how important this kind of connection could be in the sale of homes. 

     We are also preparing to align our brand with a local business and once the deal is signed I will have a lot more to say about changing the way one does business in the current climate.  There is definitely more to come.

I'm Into Something Good

I am a firm believer in opportunity and it’s important to position yourself to take advantage when it comes along.  Of course, you have to be able to recognize opportunity when it appears.  Defining opportunity is not as difficult as it may appear.  Listening to what’s going on in your community is one of the easiest ways to find out if there is an opportunity in your area.  Has a business just closed it doors?  Did you hear at last weeks Chamber mixer that a business owner might want to sublet his space?  What have you been hearing?  It may be classed as gossip but it’s also information that might be used to your advantage.  Business and business management has always been a fluid environment.  Changes are occurring constantly and change always brings opportunity.  While the rest of the world sits around and moans and groans about the economy you might be able to position yourself and your business to take advantage of a great opportunity.  It’s happened to us here in Carmel.  We are about to embark on a mutually beneficial working arrangement with a local lifestyle company who is expanding their retail space.  In the process the owner mentioned he was interested in having an on-site interior design presence.  Duh!!  I explained how we could help in that regard and he instantly got how it would work for both of us.  We will help create a small design studio in his new 12,000 sq. ft. retail space.  We will staff the studio and work with his retail clients to help them select items from his inventory.  We will also be working with these same clients to provide drapery, wall covering, flooring, furniture not carried by his store as well as accessories and fittings.  In essence, we will be running the same type of space we had at the Crossroads without the overhead.  It’s not a new idea but designers for a long time have walked away from this type of collaboration.  We will pay a commission on anything we sell to clients acquired through his retail space and he will pay us a commission on anything we sell from his store and inventory.  No money up front and lots of opportunity for each of us to make more money.  He was also able to understand he isn’t a designer; he’s a retailer. 

So, what opportunities do you see in your area?  Is there some way in which you could collaborate with a retailer in the area to increase your visibility and his or her profit?  As the in-house go to gal or guy you will be highly visible in the community and able to show off your skills in a great way without paying the overhead of rent, phones and the like.  It’s important to maintain your own identity and we plan to have signage in the store stating Interior Design Services Provided by Hale-Williams Interior Design.  I love the fact we won’t be working for someone else but with someone else.  This idea is just a slight tweak on how to do business currently.  Things will continue to change as they always have and this won’t be the only way we’ll do business in the future but it’s a great was right now.  It’s a good opportunity and we’re taking advantage of it.  Keep your mind open to ideas and innovations within your own community.  You never know where opportunity will knock.

We Gotta Get Out of This Place

I recently received an email from a women with whom I had talked before.  She is changing careers and had a few questions about what my book, “Starting Your Career as an Interior Designer” had to say and how she might try to get started in her small town in Canada.  I just got a second email and wanted to share with you her concerns and my answers.

 

Dear Mr. Williams,
I sent you an email once before, it was from my boyfriend's computer so it looked like the message was coming from someone named Chris but it was actually me Nicole ********.  I was the one who bought your book (and loved it) and wanted to take an online/distance interior design course and wanted your opinion on the course.  Well I have decided to take the course and I have tried to apply some of your other advice such as in the mean time working for a retail store such as in paint or furniture, Ikea or ANYTHING. I live in a small town in Ontario, if you can't tell by the name it’s a small town, and stores just aren’t hiring this time of year. They said maybe a little closer to Christmas and to leave my resume. Finding a mentor proved equally as difficult, unfortunately there is only ONE interior design company in the small town that I live in and I am seen as direct competition even though I have no experience and I’m not even in the same league as her yet.
 
Which brings me to my question, someone who is interested in promoting my services wants to see my portfolio but I have none. NOTHING. All I have is a dream, my ideas in my head, the books that I have read, and what I have done in my Sheffield Interior Design Course (also a distance course, the one I am PLANNING to take is more in depth then the one I already took). What should I do?  Should I show up with nothing at all, and just say I’m looking for someone to take a chance on me, and that everyone has to start somewhere. One suggestion I got was to cut out pictures from magazines of designs that interest me and display them in a "portfolio" style way and of course I was told to be honest and say that they are not MY designs but the style that I most study (as in read books about) and that I am confident I can bring this style to the client while incorporating the needs of the client. Please I AM LOST on what to do in this matter.
 
I basically bought your book too late. I only saw it AFTER I started my business. But the Sheffield Interior Design School said that many students take on jobs before they even finish the course, sometimes those jobs even end up paying for the course itself. So me thinking I can do anything took it a step further. Instead of taking on jobs I started a business!! So here I am having already advertised, made up business cards and have a website, trying to learn my butt off while perhaps getting a few jobs here and there. But if I would have read your book first I would have waited a bit longer. But its too late there is no turning back now. 
 
Please if you could give me advice on the portfolio thing and perhaps tell me what are some other good design books that will increase my knowledge as a designer I would appreciate it.
 
This will be my last question to you I promise. I am just an aspiring designer in need of some guidance.   Thank you

Dear Nicole,

You are far more adept than you believe at the moment.  Number one, you did not buy the book too late.  Learning is a continuing process and you will still be able to glean a lot of good information from my book and the other books you will read along the way.  Don't fret.  All of us started from the same point as you.  Yes, even me and my partner, Robert.  A beginning is just that, a time to start.  Never believe one single item of your arsenal of design weapons is the only one that will make you successful.  A portfolio is great, and one day you will have a superb set of photos to show potential clients.  At the moment, however, you don't.  Did you do any drawing, perspective or elevation, work for the other course? If so, use those drawings as a part of your portfolio.  Another important point for selling your services is that you will be working for the specific client and each has different needs.  Generally, photos of pretty room settings are not going to be what the current client is looking for.  It is still up to you to explain your process as a designer and how you will be creating a specific design scheme just for them.  Portfolio photos are simply to show the type of work you do, not specific looks you will recreate.  Many interior designers believe a portfolio can be as much a hindrance as help when it comes to interviewing.  Don't despair.  Include photos of your own homes and the rooms in which you live.  Don't worry that they aren't as expensive, large, whatever, as your potential clients.  You simply want to show the kind of style and sense of design you possess.  Ask good friends to let you come in their home and rearrange the furniture, add a little piece or two and give the room a bit of a makeover.  Then, photograph those rooms and include them in your portfolio.  In this instance you can explain the work you did without saying it wasn't yours.  Anyone who you think has a lovely interior would be your best choice to ask.  A portfolio need not be hundreds of pages.  Ten to twelve really good examples of your style will suffice to begin.  You could also take photos of rooms you admire and place them next to rooms you update and explain how the first room inspired you for the work in the second.  A silly as you may think it sound interviewing for the job is theater as much as standing on a stage and acting.  Only in this instance you are acting for real.  Fear not.  You will find your first client and within a few years wonder what all the fuss was about. 

Whether or not you see it I am a mentor for you right now.  Look a little farther afield from your home town for a mentor in your area.  It might be lots of fun and very educational for you to travel to the Ottawa or Montreal and visit the design centers.  Get friendly with the managers and helpers and acquaint yourself with the activities, meeting, seminars, etc. they have at those sites.  From that you should be able to meet men and women you would be willing and able to act as a mentor.  The relationship need not be a formal statement of "now you are my mentor" but more of one that would allow you to have lunch with this person once a month or so.  An informal way to work together.  You wouldn't be considered competition because you don't live in the specific city.  I will also add the designer in your home town is being very short sited.  You are not now nor will you ever be competition.  She will also never be competition for you.  Each of you will continue to pursue different clients.  Most professional designers realize this and are always happy to see more designers join the area team.  It raises the bar for everyone.  The designer in your town might just be frightened by your presence.  She may not be as qualified as you believe or she may have absolutely no business skill.  You are already way ahead of the pack in that regard.

I know this is a long answer but it's time for you to stop running around with your hair on fire, as they say.  Very calmly set down and create your portfolio and how you will organize it.  Set up appointments with those who are supportive and want to see you succeed and present your goods.  You have a wealth of experience from your previous profession and you are using a lot of those skills right now.  You will succeed.  It doesn't have to be the same way as everyone else it has to be the way you are most comfortable.  I still wish you the very best of luck.

I can't wait to hear of your successes.

Sincerely,

Tom Williams   

 

Everybody Loves Somebody

The following is an excerpt from my forthcoming book "Interior Design Clients  The Designer's Guide to Building and Keeping a Great Clientele".

"As part of your business plan you have ascertained where you expect business to come from and who will be bringing that business into your firm.  Not every client need be Mr. and Mrs. Warbucks.  As a matter of fact, most interior design firms in America work with a clientele that earns under $ 200,000.00 a year.  Does that surprise you?  It shouldn’t.  Although a huge amount of press is garnered by the large firms with the flashy names far more is spent with smaller firms on projects that will never be presented by Architectural Digest.  That is not a bad thing.  It represents an opportunity for you to find steady work and a good living.  The type of client with which you work and the amount they spend will change as you gain experience and grow as a designer and business person.  Early in your career it might make more sense to focus on what some refer to as the “low-hanging fruit”.  By that I mean those clients who are more readily available to designers who don’t have the prestigious credentials and experience needed to attract more affluent customers.  That’s not to say you shouldn’t strive for larger jobs and more important clients; and they may come as you mature in your career.  That, too, should be part of your business plan.  The type of client a more established designer will work with is usually more demanding of the skills a professional employs and willing to use the resources provided by an experienced business pro.  This type of client is enticed by an accomplished marketing campaign and the great word of mouth created over a period of time by successful designers.    

     Where Did All These People Come From?

Depending on where in the country you live your client will, in most instances, work as a senior executive; he or she will be a doctor, lawyer or real estate tycoon.  Some may own their own business.  You shouldn’t be surprised, that’s where the money is.  Entrepreneurs and small business make up the bulk of business in the United States and account for more employment than almost all the larger corporations in this country.  And, yes, you will be looking for those clients who have the disposable income needed for most interior design projects.  These clients will also probably be somewhere between thirty-five and sixty.  Old enough for the kids to be in college or just graduated.  They will have been homeowners for a decade or two and might even own a second home or time-share.  Retirement income and IRA’s have been established and usually there is enough cash for day to day living.  A lot of the expenses of youth are long past and the focus has now become more about style and substance.  Hence, extra money for interior design. 

     Clients in their twenties and thirties are far more internet savvy, have smaller budgets and will “shop” the interior designer if given the chance.  Young homeowners, generally, are still focused on simply creating a home for themselves and the kids and saving for future college tuition.  Clothing, food and the essentials of living are all part of younger couples challenges.  Once that hurdle is cleared they are ready for you.  This market, however, shouldn’t be ignored.  As with all generalities there will be exceptions.  If you are more comfortable working with people in this age and demographic group then by all means nurture that relationship.  These clients will someday be those clients, if you know what I mean.  If you, too, are in your twenties or thirties and would like to have a clientele that grows with you, this is your group.  You might find it easier to educate them in the ways of professional interior design and they will become very comfortable working within your parameters.  Most designers, however, look for a mix of clientele for the variety and challenge each brings to the table.     

     Smaller Percentages, Bigger Profits

These clients will further divide into two groups.  Twenty percent of these clients will give you eighty percent of your business.  Known as Pareto's Law, or the 80:20 Rule, this axiom will remain true throughout your career.  The 80:20 Rule applies in almost every sphere. You noticed it in school.  You found it on your first job.  In almost any business, 20% of the resource, or production, will produce 80% of the results.  You should also understand the reverse is true.  A project, or work, that takes up 80% of your time will produce only 20% of your profit.  It’s only after completing a few jobs will you be able to look at profits and see who, of your clientele, fall into the positive side of the 80:20 Rule.  It is these clients you will find easiest to work with and manage and it is they who will continue to come back for more work.  They will also be the ones who refer you to their friends and colleagues.  As you continue you will take on many new clients; all of whom will fall into the 80:20 categories.  The eighty percent are the ones to evaluate on a regular basis.  Some, if managed properly, may move into the twenty percent group but, generally, they will stay in the eighty percent group.  At some point you may decide to finish those jobs and move on.  It will be up to you.  It is, after all, your business."