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

What Are You Doing New Year's Eve?

As the year come to a close I have tried to make sure the books are in order and the business is ready for 2010.  To get all this done I have spent the last few days going through paid bills, open proposals, contracts that have gone out and not yet returned, open purchase orders and projected business for the next twelve months.  With all of that I have also tried to expand my vision to include 2011 and 2012.  Planning needs to encompass more than the short time frame a year provides.  Planning should also take a look at the longer term.  At times we put far too much pressure on what we expect to accomplish in twelve months.  With the longer view we are able to plan more realistically for what will happen in the next twenty-four or even thirty-six months.  When asked how we think the economy will look in twelve months most people will reply little or no change.  When asked what we see three years down the road most will reply conservative growth.  It’s that optimism I would like for all of us to incorporate into our planning this year.  The longer term will certainly help you create a more balanced and pragmatic approach to planning.  The longer view is also much more helpful when making decisions about spending.  Marketing, advertising, promotion and direct mail have always given better returns over a longer time period.  Trying to put everything into twelve months makes it much more difficult to quantify the return you might expect to receive.  Twenty-four to thirty-six months gives you the expanse of time needed to actually see improvement.  And I certainly believe we will see improvement.  As I have been saying for the past six months, now is the time to move forward with any plans you might have for any type of expansion.  Don’t hold back on promotion and make sure you are in the public eye as much as possible.  With the New Year will come various and exciting opportunities.  Be ready to take advantage of what ever might come your way.  That means you can’t just sit in your office hoping the phone will ring.  Go out to other retailers, business owners and shops in which you are known.  Go to store openings, art gallery openings or whatever other “opening” is available to you.  Continue to attend meetings of your various trade organizations and clubs.  Speak up occasionally in the various Twitter and LinkedIn Groups to which you belong.  Heck, even start a dialogue on your own.  Get people interested in you and what you have to offer.  That is particularly what social networking is all about.  Get involved and excited to be part of your community.  Anyway, that’s what I’ll be doing New Year’s Eve and beyond.  Hope to see you out there creating a beneficial and productive New Year for you, your business and your life.  I’m looking forward to spending time in the newest decade of the twenty-first century.  Happy New Year!

End of the year blog posted for Wednesday. Looking forward to the second decade of the twenty-first century.

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.