Inside Out Interiors: Core Strategies for Designers - Transcript

Do you love interior design, but can't make the business side work? You've come to the right place. Welcome to Success by Design, mastering the business of interior design. Whether you want to elevate in your current interior design firm, start your own firm, or move the needle when it comes to your existing firm's trajectory, this is your masterclass and I'm your host, Katie Erickson.

Learn from my mistakes as I built a coast-to-coast multi-million dollar interior design firm. I share nearly 20 years of serving as a university professor of undergraduate and graduate business courses with you. And best of all, I bring in experts in all things business and interior design.

Class starts now. Hello and welcome to Success by Design, the podcast where we explore how to build a thriving interior design business that fuels your passion and supports the lifestyle you deserve. I'm Katie Decker Erickson, your host and business coach for creative interior design entrepreneurs.

Thank you for tuning in. Today, we're diving into a topic I'm incredibly passionate about, inside out interiors, transforming your business from the core. We're going to explore how real lasting change in your interior design practice starts from within.

It's your mindset, it's your purpose, and it is your systems. And then that shines outward to your clients, your projects, and your overall market presence. We're going to reference the latest research, news articles, and give you practical and as always actionable steps so you can start implementing changes right away.

So grab a cup of coffee and let's get started. Let's begin with understanding the inside out approach. And what do we mean by inside out, especially when it comes to business transformation, particularly for us as interior designers? Why do we even need inside out? I'm glad you asked the question.

Often, we believe success is about external changes. Oh, we need to do the rebranding or, oh, we better do better marketing campaigns. Or perhaps you're thinking, I need new client acquisition tactics.

However, let's press pause for a minute because genuine and sustainable success starts with the internal foundation. And this is about you. This is about your mindset, your clarity of purpose, and as I mentioned, your operational systems.

Not sexy, but really important. I know because I didn't have mine in my business for a number of years. I can't tell you what a game changer it was when I finally bit the bullet and implemented them.

In fact, a study from Harvard Business Review found that small business owners who consistently engage in internal development, like the topics we're talking about, mindset exercises and strategic planning, they saw a 25% higher revenue growth, that's right, profit, than those focusing solely on external marketing. In fact, Forbes recently highlighted how purpose-driven companies are attracting more loyal customers and more engaged employees. You could substitute contractors in there.

Many of us use them, especially in creative fields like we are in. In fact, I can't tell you how many mid-career interior designers I coach who feel stuck because their projects are sporadic. They find themselves under pricing.

I just had a client not that long ago whose gross revenue was half a million dollars and her exact salary was $30,000 for the year. And what we learned is she had never discovered and defined her core business systems, and she never clarified her why. And so by changing her mindset, putting processes in place, we were able to completely revamp her journey, and we did double her revenue in under a year.

So this leads us perfectly into our next segment, which is focusing on mindset mastery and challenging that limiting belief that holds you back from reaching your potential. Now is a perfect time to think about what is the biggest limiting belief you have for yourself when it comes to your business. Your mindset is at the heartbeat of your business.

If your beliefs about success, money, or talent are negative or limiting, your clients are going to feel it. It's going to show up in those client relationships. It's going to show up in project quality.

And at the end of the day, it's going to show up in your bottom line. What are some of these limiting beliefs that I encounter when I'm coaching other interior designers? Oh, the market is oversaturated. There's no room for me.

Or I have to work 24-7 to make a decent living in this industry. I can't tell you how often I hear of designers working 70 plus hours a week only to take home $30,000 a year. Another one is I'm not tech savvy.

I can't handle all these digital systems. I like what I am doing, to which I always respond, then why are you booking a call with me? Because obviously it isn't working, and you can't be liking what it's doing because you're here. And I don't blame you for that.

I admire your courage in stepping into this space. Let's figure out how to get it to work for you. Now, why are these beliefs all harmful? First of all, they create self-fulfilling prophecies.

I know some of you have heard this term, but for those of you that haven't, it's the belief of something becoming a reality. And then guess what it does because we start manifesting it. For instance, if you believe the market is oversaturated, you're going to be less likely to market yourself confidently or pursue big opportunities.

These folks often think that this causes burnout because you feel you have no choice but to hustle endlessly without working smarter. Such a harmful, harmful belief. And it will lead to burnout.

What does the research show? I love research because it can help calibrate our brains and get us lined out when all of these feelings are running wild. According to the Stanford University psychologist Carol Dweck, author of Mindset, the New Psychology of Success, people with a growth mindset see challenges as opportunities to learn and grow. Now, this approach applies directly with higher performance and resilience.

When you are OK saying, I can grow from this experience, it may not turn out the way that I want, guess what? Your performance is going to follow. And even if it doesn't work, you're going to come out of that situation more resilient and ready for the next big challenge that comes your way. So how do you start working on this? How do you ditch those self-fulfilling prophecies and get busy working on growth mindset? I know everyone talks about it, but there's truth in it.

And it's journaling. I want you to take five minutes each morning when you walk into your office and sit down at your desk to write down one limiting belief and, here's the big and, actively refute it with facts or a positive counter belief. It sounds crazy, but imagine where you'll be in 30 days when you start tackling those horrible beliefs that you have that are chipping away at your self-confidence and your profits.

Also, visualization. Spend a few minutes visualizing yourself presenting a successful pitch to a dream client. And no, you don't have to be in a Zen state to do this.

I can't tell you how often I do it just in my shower. This simple technique is used by top athletes, and it can help you just as much in your game. It's going to help you build that confidence and that clarity that you're seeking.

And then find a buddy. This is just like losing weight or any other challenge. We do better when we have a teammate.

Find a fellow designer or join a mastermind group or come join my group of interior designers. I love our office hours for this very reason. Peer feedback can help shatter limiting beliefs when you see others facing similar challenges and succeeding.

I think this is so true in our industry, especially if you are somewhere where you don't live in a big community and you don't have access to, say, an IDS chapter. You need other people around you. And the beauty of COVID, if ever there was one, is that it gave us access across a broad swath of people, all thanks to technology.

Here's a great quote, and it is very popular in the entrepreneurial world, but I want to share it with you. Whether you think you can or you think you can't, you're right. Your belief in your own success shapes your actions and ultimately your outcomes.

So now that we've touched on mindset, let's explore another internal pillar that propels your business forward, and that's defining your purpose and core values. Because purpose isn't just a buzzword. It's the anchor that holds the business boat steady in a constantly evolving market.

And boy, have we seen some evolutions over the last few years, economically, logistically, you name it. Why does purpose matter? You heard me allude to it in last week's episode. We talked about how it's like a North Star.

It is going to guide your decision making, your brand messaging, and even those types of clients that you attract. If you don't like the clients that you're currently attracting, take a look at your purpose and your core values. In fact, Architectural Digest recently profiled a group of design firms that specialize in eco-conscious interiors, and their shared purpose is to reduce, as you would imagine, environmental impact.

This clear stance has earned them a devoted clientele willing to pay a premium, pretty important, right? Because their values align. So find your purpose. Ask yourself, what do I stand for? Is it sustainable design? Maybe it's wellness driven spaces or child friendly environments.

Back when I started my firm, it was all about color and providing great color to clients that wasn't an afterthought of design, but led the way to everything else. That was my passion, and my clients to this day still pick up on it. Also do a vision exercise.

Imagine how you want your designs to impact the world in 10 years and craft a sentence or two that encapsulates this vision. This vision becomes your purpose statement. So important to do.

I know for our firm, it is all about creating spaces that actually do feel like places to people who are going to be there for an extended or short period of time. Next, I want you to think about your core values. This is the how.

This is how you run your business, how you operate. So maybe your firm is really known for transparency or collaboration or community involvement. And it can be more than one.

In fact, list three to five core values and keep them visible in your office or your studio, not just for you, but also if you have a team. Encourage that team and those contractors to embody these values in daily tasks. So incredibly important because this becomes the backbone of your business.

It is your operating system when it comes to how you run your entrepreneurial enterprise. Also, infusing your purpose into your brand is extremely important. So include a short our purpose or our value section on your website.

This fosters trust with your potential clients who resonate with your vision. If you have a vision for your business, they're more likely to trust you with the vision they have for their home or their space. In proposals or pitch decks, also add a line or two about your design philosophy.

This elevates your brand above the transactional design work, which yes, that's a part of it. And that's a necessity. But this positions you as an expert with a mission.

Notice how even saying that is so much more elevated than just simply saying design work. And then finally, this has a huge impact on your client relationships, because we know purpose-driven businesses often see higher client loyalty, which is exactly what you want, because nothing is better than an existing client or a warm client, because there's a reason they're called cold calls. No one wants to make them, right? So when your current clients believe, or new clients, or hopefully future clients, understand what you stand for, they then become your biggest advocates.

And how much more likely are they to refer your services? A lot more. With mindset and purpose, that is your strong internal pillars. Let's think about also addressing the final pieces of your inner foundation, which is systems and processes.

Because if mindset is the heartbeat and purpose of your business, and that operates as your North Star, the systems and processes are the muscles and bones holding your business together. I know, it's not fun to talk about systems necessarily. Nobody goes, I had the best day ever building this amazing system.

Maybe they do, but they're probably not interior designers, right? Let's be honest. I want to give you the why as to why your systems are crucial. They are going to provide structure and consistency to your business, and they ensure a high quality experience every time for your client.

When a client has a high quality experience every time, guess what? They keep coming back, they keep referring their friends, and they keep you at the top of conscience. Then you are free to focus on creative innovation, because your day to day tasks are being handled efficiently, because these systems are in place. You're not having to reinvent the wheel every day.

I'll never forget the coaching client who said to me, I feel stressed out by my business. And I said, okay, walk me through your day. How does it start? How does it end? She literally said, I walk in the office, and I pull up a Google Drive with a task list on it.

And I start assigning tasks to my team members as I think they should be. And I said, so different team members get different tasks on different days? And she said, absolutely. It just depends on the day.

And I was like, well, we don't need to continue the conversation about the rest of the day. We've got to start here. We have to have systems and processes in place because it's going to make those day to day tasks so much more efficient.

And then you can get back to doing what you love, which is creating. It was a total game changer for her. So think about the key areas in your business that are really important to systemize to give you back your time.

Let's start at the very beginning, client onboarding. Do you streamline your intake form to gather essential info? Do you have a defined project scope, a solid budget, a definitive timeline? And do you understand the client's style preferences? There are so many tools that can help with this. One of my personal favorites is Fibery.

We use it in our business. As I lovingly say, it's like a sauna on steroids. It allows us to be able to adapt so much better to what our clients need and what our business needs to meet those client preferences.

Also, it handles our project management because you've got to systemize your project management. Whatever software you're using, this helps you track milestones and deadlines. And not only that, it sets up a communication protocol for you and your team.

We also use Slack at our firm. And I will tell you for quick turnarounds, that's a great tool to be able to plug in and keep the projects on task. Finally, financial management.

I know this is right up there with systems. I can't say that I've encountered many, if any, interior designers that absolutely love living in their books day in, day out, knowing exactly where every penny went. You don't have to.

Let me take the burden off. But the reality is that you do have to know how to leverage QuickBooks. You have to be able to log in and have a conversation with your accountant or your bookkeeper to know what your business is doing and where you're headed.

One thing we do in our firm that I also advise our coaching clients on, especially as you grow, the value of meeting with your bookkeeper weekly. Where are you at? What do the numbers show? What are they concerned about? What are they seeing that you're not seeing? Is that the best hour of my life every week? Well, it may be the best, but it's not my favorite. Here's the reality.

You should be getting reports every Monday from QuickBooks or whatever software you're using, showing your accounts payable, showing your accounts receivable, and setting you up to make good executive decisions every single week. Let's also talk about marketing and lead generation, because that can absolutely be a system and 100% should be. Your content calendar should be out at least a month in advance for all of your social media.

Also, I had the opportunity to speak to the Interior Design Society's virtual chapter recently, and all we talked about was the importance of communication. And I loved it when I brought up the idea of nurture sequence and someone put in the chat, what is that? Yes, you should have a nurture sequence for your business. This is where you are sending out email campaigns, once again, to remain top of consciousness with your clients or future clients or past clients.

This is reminding them of the projects you're working on, what you're doing, and that you're relevant in the marketplace. In fact, Entrepreneur, the website and magazine, found that businesses with automated marketing workflows saw an average of nearly a 15% increase in sales productivity. Now that number may not sound like a lot, but you start multiplying that by $100,000 and see where your business goes.

Another reason we should talk about using systems and the value of them and understanding processes is scaling and delegation. When your processes are documented, it's going to be so much easier for you to hire someone to help you, whether that's a virtual assistant, whether that's even your bookkeeper, so they know what bills should be getting paid and when they should be invoicing clients. Whatever it may be, it's going to allow you to scale in a significant way, if that is your goal.

This also lets you step out of the day-to-day grind and focus on those high-level strategies like networking and expanding your offerings and all of those things. So important to see the value of systems when it comes to scalability and delegation. And then when those processes are in place, you get to track metrics for your business.

You can see what is working, what is not, what market segments are paying you well, and which ones are not. And more importantly, are your clients happy? After each project, you should be sending a quick survey to them to figure out what worked, what didn't from their perspective. It's so invaluable, especially as we look to build those repeat clients.

You also get an idea of those profit margins like we talked about. How much are you spending on materials? How much are you spending on outsourcing? And how much are you spending on overhead? And then also your marketing ROI. This gives you a chance to know where your marketing return on investment is happening.

You can track where your leads are coming from and how many of them are actually converting into clients. Because vanity metrics don't count. We need conversion.

Conversion matters, and that's where we make our money at the end of the day. So systemizing doesn't kill your creativity. This is the big thing I tackle when coaching clients.

It's about giving your creativity back to you. We so often see it as stifling artistic freedom, but in reality, processes handle the routine tasks, and that liberates your mind to focus back on design creativity. Now you've built a strong internal foundation, so let's talk about how that transformation radiates outward next week.

This is going to be a great conversation about how this impacts your clients, your projects, and your overall market presence. Very important to building a better business. I truly hope today's episode gave you valuable insights and renewed inspiration.

If you found it helpful, please share this episode with a fellow designer or creative business owner, or put it out on your socials so everyone can benefit. As my friend Michelle says, there's plenty of ugly houses for everyone. If you have a moment, drop a reviewer rating on your favorite podcast platform, and that helps us reach even more listeners.

Thank you for spending time with me today on Success by Design. Until next time, keep designing spaces and a business that reflects the very best of who you are. Most importantly, remember, you don't need to be working for your business.

It should be working for you. We'll see you next time. And that's the closing bell.

I hope you've gathered valuable insight from our conversation today, equipping you to thrive in your interior design business. Don't forget to hit that follow button to never miss an episode. And if you have burning questions or specific topics you're curious about, explore our episode library, or better yet, book a strategies session directly with me at colorworks.coach.