Interior Design Business Tips to Thrive During Slowdowns: Transcript

Katie Decker-Erickson (00:02.338)

Hey everybody, welcome back to Success by Design. I'm your host Katie Decker-Erickson and today we're diving deep into something incredibly important for every interior design business owner. Proactively planning for a slowdown. All the news these days is about impending recession. Maybe you've seen your pipelines dry up. It can be scary. So let's call it out right now. There's concern and there can be a little bit of panic in the market right now.

We all feel it, but today isn't about panic, it's about preparation. We had a fabulous conversation not that long ago with Rebecca Hay discussing how to strategically plan for these inevitable slowdowns. In fact, we'll put a link in the show notes in case you want to take a listen. Today, we're building on that conversation by sharing practical strategies backed by research and real life examples so your business doesn't just survive slowdowns, it thrives.

I'm gonna say that sentence one more time, Today, we're building on that conversation by sharing practical strategies backed by research and real life examples so your business doesn't just survive slowdowns, it thrives. Let's normalize the slowdown. First things first, business, just like nature has seasons, growth and contraction. In fact, according to Harvard Business Review, businesses that proactively prepare for downturns by maintaining financial discipline and efficiency,

See, not only quicker recovery, but often increased market share after the slowdown is over. What is your takeaway on this? Slowdowns are personal, they're normal. Let me say that again, slowdowns aren't personal. That can be hard when we're interior designers and we take what we do to heart. Evaluate your financial position as well. Your first practical step here is to evaluate your financial health meticulously. This can be intimidating, but don't let it be.

Schedule weekly check-ins with your bookkeeper or accountant as your first action item. Make it a non-negotiable session. The first time will probably take longer than the third, but the key is to get started, get it on the calendar, and get busy understanding your finances. Request weekly reports on cash flow, expenses, and revenue streams.

Katie Decker-Erickson (02:21.932)

You'll be amazed at what you learn and a good bookkeeper or accountant should be readily willing to explain it to you if you don't know. What are the questions you should be asking? Well, which projects or services are your most profitable? Which services cost more than they're actually worth? And where can expenses be trimmed without negatively impacting the client experience? These are just a few examples. If you want more, book a 15 minute problem solve session with me where I give you 15 minutes free of my time

to come up with either more questions or solve additional problems that you're struggling with in your business. Research from the Small Business Administration confirms that frequent financial check-ins significantly enhance decision-making capabilities during downturns. You can't change the downturn, but you can choose how empowered you are and the knowledge that you have to bring to the table while it's happening. Third, make sure and strengthen your relationships.

Your relationships are the greatest asset you have during these economic shifts. And there's two of them, one with your clients, one with your vendors. When it comes to those client relationships, implement a consistent nurture sequence, regular check-ins, newsletters, personalized follow-ups. Keep touching your clients so that you stay top of consciousness.

even when they don't have a project going on with you at that very moment. Because when they buy the lake house, when they buy the cabin, when they buy the third, fourth, fifth home, they're gonna call you. Now let's talk about those vendor relationships. Be proactive, reach out to them, thank them for past collaborations, and openly discuss reciprocal business referrals. Also talk about negotiating pricing, especially when you're working with a high volume vendor.

vendor where you are giving them an inordinate amount of business.

Katie Decker-Erickson (04:18.894)

The real world example of this is our conversation we had with Rebecca Hay, where she emphasized nurturing existing client relationships leading to those repeat business referrals and collaboration opportunities that emerged even despite slower seasons. That's a key. People still have to go on living their lives and they want to do so in beautiful places. And that's where you come in.

Fourth, differentiate your brand clearly. In a crowded market, which your market may or may not be, but it's easy to feel like it is, differentiation is essential. This could be your unique intuitive approach, your niche specialization, maybe you are the sustainability designer in your area, or an outstanding client experience. Make sure you are clearly defining and articulating your unique selling proposition, or as we call it in the industry, your USP.

This is what makes you, you. Leverage any certifications you have as well, whether this is specialized training, thinking NCIDQ, or maybe you're a well AP, this will further set you apart and make your clients understand not only why they wanna bring you on the next project, but the value you bring to every project you touch. In fact, according to research by Deloitte,

Businesses that clearly communicate their differentiation see increased loyalty and reduced price sensitivity. Both of these points are really crucial, especially during a downturn. Fifth, I want you to boost your visibility and marketing. Now, I'm sorry, I'm so congested today, Leah. Fifth, I want you to boost your visibility and marketing. This might feel counterintuitive, but.

Increasing visibility during slowdowns is vital. Everyone always goes to the marketing department to pull back and take away dollars first during a downturn. That is actually the last place you should be going. How can you do this? Well, take a look at your marketing strategy. Have you identified your ideal client? Very important to know who you're going after. Where do they hang out, both digitally and physically? How can you become more involved in those spaces and meet them where they are at?

Katie Decker-Erickson (06:38.614)

rather than asking them to come to you. Also think about your community engagement. So participating in industry groups and local business events or community projects, these elevate your profile and reinforce your trust. Maybe that is joining your local chamber of commerce. Maybe it's finding your local builders association. Maybe it's becoming a member of your local realtors chapter. All of these are important because all of these people are touching the same clients

that you want to work with. And then finally, about your online presence. And then finally, think about your online presence. Keep your portfolio, your testimonials, your social proof prominently displayed right up at the top and updated regularly. This should be more than a look alive approach of posting once every two, three, four weeks.

This should be at a minimum, a weekly touch point that says, I'm here, this is who I am and what I'm up to. Sometimes it may be personal, sometimes it may be professional and that's okay. In fact, it's great because they wanna see that you're human and that you're relatable and that they wanna work with you again. HubSpot research reveals in fact that companies maintaining or increasing marketing spend during recessions outperform their competitors during and after the slowdowns.

And then finally, I want you to think about streamlining your processes. I know, I always talk about processes, but there's a reason why. Because efficiency directly protects your bottom line. Now is the perfect time to evaluate and refine your processes. Think about the bottlenecks, the inefficiencies and the redundancies. Do an autopsy on your business. Not always the funnest thing to do, but the results can be astounding. Once you know what's going wrong,

You can figure out how to fix it by either implementing technology or working on automation, maybe even streamlined administrative tasks or assign different roles to different people in the organization or bring new people in. One book I love about this is called The Little Red Ball by Carol J. Perron. It highlights the critical often look tasks that significantly move your business forward. They're not sexy, they're not fun, nobody necessarily sees them.

Katie Decker-Erickson (09:01.518)

but the reality is it makes for a much smoother client experience. A McKinsey study reports that businesses which optimized operations and embraced digital tools were notably resilient during economic downturns, bouncing back faster and stronger. I can't speak highly enough of this. During 2008, that was one heck of an economic downturn.

It was a great chance for us to figure out who was our target market and to also start thinking about how we wanted to diversify and grow through the next 10 years of our business. was strategic time that because we used it well positioned us for the next economic slowdown or the one we thought it would be during COVID, which was the exact opposite, but we knew where we wanted to go.

Katie Decker-Erickson (09:52.3)

In fact, here's a real world scenario from one of my coaching clients that I would love to share. She was facing uncertainty recently, uncertain because she was going to get married, uncertain because she was moving in with her partner, uncertain because she was a year into launching her new business and she wasn't feeling like it was going as fast as she wanted it to go. Not only that, she chose to launch it right at a time when people are uncertain about the economy. When we see places like restoration hardware,

offering discounts and promotional tools. That never used to happen, right? Through our coaching session, we talked through the power of mindset, the power of building marketing into a daily practice, and also the power of becoming grounded and knowing the business you want and the specific tools to get there. The reality three months later is she's in a much better place, her pipeline is full again, and she's feeling like she can carry on.

despite what's happening in the world around her. Here's the critical part. I wanna make sure you leave today ready to take action. I invite you to join me for a free complimentary to you 15 minute strategy session. This is where we are gonna solve problems. Bring me your problem and in 15 minutes, let's see how far we can get in solving it. Because the reality is doing business alone isn't fun and sometimes can even be scary. Go to successbydesign.coach.

and book your free call today. Because remember, proactive preparation isn't about reacting out of fear. It's about empowering yourself and your business. Preparation positions you to confidently navigate any market shift, even the one that we don't see happening yet. Thanks for joining me today on Success by Design. Until next time, stay intentional. And remember, your business should be working for you, not you working for it.

Take care.