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

Too Late to Turn Back Now

Robert and I are in the process of moving our retail location into our home.  Oh, honey, everyone doing it.  We will save over $ 3,000.00 per month on rent, electric and overhead.  Not bad.  At the same time we are fortunate enough to have enough space in our home for a studio (23’ X 18’) and an office (12’ X 12’).  So, off we go to the house.  Now, of course, we will start spending more on advertising and promotion but less than the cost of the rent before.  We had planned to make this move in May of 2009 but now just seemed like the right time. DUH!!.  The space we’ve selected is attached to a front patio that is accessible from the driveway and does not require clients come through the house.  With beautiful French doors to the patio and a view of the canyon beyond we think it is very attractive and conducive to the residential interior design business.  So it was our living room, we’ll just spend more time in the family room, now.  The down side to all this is our attempt to sell off floor samples we have and don’t have room for in the house.  Even with local advertising both in the newspaper and on Craig’s list we’ve had almost no action.  And believe me, the prices are low.  Actually I used the word Cheap in the Craig’s list advertisement.  Still, not a lot of interest.  Oh, well, some how we’ll just pack it all in and have a sale from the house.  Because we had already planned this move it isn’t as jarring as it could have been.  We’ve negotiated out of our lease with a payment for the balance due which is far less than the total six months rent would have been.  We’re spreading out the payment over a short period of time so it doesn’t hit our cash flow too hard.  Times are tight and we, too, have decided to tighten up.  Now is the time to take on the challenges of a far less vigorous economy and look for the opportunities that are out there for those of us willing to create a time line in terms of multiple months.  I mean along the lines of 18 to 24 months.  With that kind of strategic planning you will weather this storm and emerge among the successful.  So you might believe turning back is an answer.  It isn’t.  It’s too late to turn back now.  Full steam ahead.  Of course you should be cautious but don’t be afraid.  Try to be bold from time to time.  Create a seminar and offer it for free.  Think of it as a two or three hour advertorial in which you control all the content.  That is good marketing.  People will talk about your visibility and will remember you when they are ready to proceed.  The time will come and you want to be positioned to take advantage of the opportunity. Stay flexible and watch for a chance to separate yourself from the pack. 

How Can I Be Sure?

I have heard from a number of designers across the country a very disturbing trend in our industry.  It seems there are a few manufacturers out there who demand large deposits on goods ordered then don’t deliver.  It may be they go out of business or declare bankruptcy but either way they knew it was coming when they accepted the order and kept the money.  In some cases this also happened with Pro Forma orders.  Either way we, the designers, were left out in the cold and our deposit money was lost.  I’m incensed at the disregard for the professionals in our field who pay bills on time, place orders for clients promptly and expect professional service in return.  I have always espoused open accounts with vendors at all times and I still find the trend toward Pro Forma payments on all goods bad for our cash flow.  This current trend makes me even more determined to maintain my open accounts and do business with those firms rather that the ones who demand Pro Forma on all orders irregardless of credit rating and payment history of any firm.  Professional Interior Designers handle large sums of money for our clients and they expect us to take care of their deposit money.  For it to be stolen, yes I said stolen, by manufacturers and vendors looking at the short term is unconscionable.  So, how can we protect ourselves?  If at all possible work with those vendor who are willing to allow 30 day net accounts.  If you haven’t set them up do so now.  Try to work only with vendors who do not require Pro Forma payments and let those firms that do know your choice will be predicated on who gives the best terms.  Work with vendors by paying a modest down payment, say 50%, with the balance due 30 days after delivery.  Keep your money close and work with the showrooms, vendors and manufacturers to insure the goods you order and pay for are delivered in a timely manner.  They may all tell you they need the money to continue operating but what about you?  We, too, need cash on hand to perform our daily business and pay our staff and artisans.  Times are “tuff” and this is the time for us to get and stay “tuff” as well.  One last word.  If you’ve never worked with a vendor asking for all the money up front you might also ask the owner to sign a personal promissory note should anything happen to the money.  Yeh, I know, it will be a cold day in h--- before they would do that, wouldn’t it?  Why do they expect all the trust to go one way only?  It’s time for us to evaluate how we work with all these manufacturers.  We should demand a little trust as well.  So, get those open accounts going, do business only with them and pay your bills on time.  Oh, honey, it’s vital. 

The Sounds of Silence

Well, I just wish our phone would ring a little more.  What can we do to get them interested again?  I’ve been on line listing my services as a speaker to all the groups in the area I think might want to listen.  I continue to blog, obviously, and I am finishing up on the editing for the new book.  But, the question still remains.  What can we do to create business?  Have you looked at new advertising opportunities?  For those you do advertise with have you asked for a reduction in rates?  What about your rent?  Can you renegotiate the lease or move out and into your home?  Can you consolidate services you use?  For instance, can you reduce the number of telephone lines coming into your office?  If you are already down to the bare minimum on staff is everyone pulling their own weight?  It’s possible we have seen the worst but it will be a good 18 to 24 months before we are anywhere near what was before.  And even then it won’t be the same.  As with every financial crisis the other side always is changed.  There are opportunities out there if only you will look.  Keep calling on those clients you think might need more work.  Can you extend what you have to include another area in the home or office?  Try to negotiate how the work will be done and when payment is due.  Don’t let them finance with you but make sure they see you, too, are willing to sharpen your pencil for the moment.  Don’t discount all your services but bundle them in a way that is more appealing to clients.  What ever you do, don’t give up.  Get out there and work the market.  It will come to you when you least expect it.  Now is the time to create an updated business plan that includes the tightest working capital you can imagine.  Once things loosen up you will be in the cat bird seat and ready to make more profit than ever before.  Trust me.  It will turn around and now just might be the time to step up to the plate.  Good luck. 

Constant Craving

Why are so many people obsessed with design?  Because, interior design is a luxury industry of course!  Like fine cuisine, fine design is glamorous, decadent and so far removed from the lifestyles of 99% of the universe, the media coverage may seem, to some, like a transmission coming from another “more stylish” planet.  Like it or not, the cable television dial, especially channels devoted to improving the lifestyles of American consumers, has propelled the once staid design profession into the pantheon of pop culture cool.  That’s right, you heard me, we’re cool.  As for whether we’ll be considered cool in twenty-years?  Probably, here’s why.  All of you wired into “what’s happening” may have noticed in the past ten years, a hybrid form of designer, the Interior Designer as Media Personality, has risen to the prominent role of influential global tastemaker. 

These Media Designers are lifestyle forces on the pop culture scene that have the ability to impact the way consumers, who are desperate for style and taste, view themselves, their environs and their lives.  They influence the perception of what is form, what is function, what is comfort and what is aesthetic beauty – and most important, what is cool.  Do you see us dropping off their Top 10 Hot Lists anytime soon? I didn’t think so either. 

Considering the era in which we live, all designers should thank their lucky stars for the subjectivity of taste. Why? Because if taste were objective, we’d all be out of a job wouldn’t we?  So many people in this world believe they have “good taste” and really don’t have a clue.  But like DNA, every human has a different set of likes and dislikes when it comes to design.  So who says what good taste is and is not?  If a client hires you to design their space, you do.

Which brings me to the unspoken variable in the current “designer phenomenon,” which is most Americans will continue to be unstylish clods that need our help. To this day, even the most revered designers are often left scratching their heads, wondering why their clients gravitate to certain things.  Why is there such a shroud of mystery to the art of design? Repeat after me: taste is subjective!  There is no universal right answer. There are a million different right answers and a million-and-one effective ways of doing it.  But which is the perfect answer for your cranky client?  Who knows, it’s a mystery, now go solve it.  Style will always be a moving target. You’ll find each design project you undertake in your career will be a unique mystery that you and your client must solve together.  What works for one client, will not work for another.  Who knows why?  All we know is, this is what makes what we do so much fun.

For some, “good taste” is a God-given gift while for others we believe, to an extent, it can be learned.  Like all the other aspects of the job, business development, marketing, sourcing, client relations, office management, etc., a designer must continue to sharpen his or her skills through education and gained experience in order to improve the ability to clearly “see” that for which we look.  Remember, good taste isn’t so much about cost; it’s about style and execution. Designers must be on-point when analyzing the lines, execution and finish of a design to ascertain what good taste is and what is just trash.

While it’s true, there is a much larger market for interior designers than ever before, gone are the days when you can just open an office, hang a shingle and expect people to walk through the door.  Of the glut of professionals and amateurs on the scene today, only the best make a lifetime career of it.  Like most industries, only the strong survive while purveyors of hackery die a quick death or go to work in sales.  Now, don’t let these horror stories scare you, don’t you know they’re meant to?  You are no hack; you can do it all.

Dancing in the Dark

Boy, I wish I could say I know what’s going on.  I don’t and probably most of you don’t either.  That said, just what can we do to stay in business and keep ourselves above the fray?  There is no question the tightened credit market will impact us in many ways.  If not already, certainly when you start looking at the opportunities out there that require cash.  Those opportunities are advertising, marketing and promotion.  You should also consider attending seminars and conferences that deal specifically with the business side of our industry.  So, how do we keep cash flowing?  Have your clients slowed down on payments?  Is your business office keeping on top of past due accounts?  Are you making sure follow up with these clients is early and often?  Just a couple of the things you can do to keep your cash flow going.  It won’t make the credit crunch easier but will certainly help you stay afloat.  Now might also be the time to slightly increase your deposit requirements for sales of goods.  Oh, come on!  Going from 60% to 70% won’t stop most clients.  It will, however, help you pay the bills.  That is also another thing you want to keep on top of.  Bill paying.  Pay bills within set time limits or arrange to lengthen the time with which you have to pay bills.  How, you ask?  Well why not start by calling your Rep or contact and asking what they might be able to do to give you better terms.  I’m assuming you’re a good client who has always paid bills on time.  I hope so.  Now is when that little bit of self discipline will come in handy.  Vendors are far more likely to work with good on time clients than those who have already missed deadlines and payment schedules.  Once you have gotten better terms make sure you meet the new payment schedule on time.  When things get better, and believe me they will, your professional approach will be appreciated and the vendors will be more willing to work with you from time to time.  You will also have the added benefit of a professionally managed interior design office with a good credit rating and appreciative vendors.  Your staff will also feel much more secure in the knowledge you know how to manage when the times are tough.