Interior Design Onboarding to Protect Profit & Clients: Transcript

Katie Decker-Erickson [00:00:00]:

Hey, fellow interior designers. Welcome back to Success by Design. I'm your host, Katie Decker Erickson. I'm an interior designer too, who's still in the trenches of design, while also coaching other designers to scale sustainably, avoid burnout, and step into leadership with confidence. Today's episode is part of our Project to Profit series. It's a deep dive into the business side of design because every detail in how you manage a project from kickoff to closeout, it directly impacts your clients experience and your bottom line. Today, we're talking about one of the most overlooked profit protectors in your business, onboarding and setting expectations. Yeah, misunderstandings don't just cause stress.

Katie Decker-Erickson [00:00:45]:

They eat away at your margins, your timelines, and sometimes even your client relationships. But before we dive in, you know how this goes. We start every episode with two truths and a lie. See if you can spot the lie and I'll reveal it at the end. One, onboarding is about paperwork and contracts. Two, a great onboarding process actually markets your business while managing expectations. Or three, the number one cause of client frustration is unclear communication at the beginning. All right, lock in your guesses and I'll give away the lie at the end.

Katie Decker-Erickson [00:01:19]:

Let's start with why onboarding matters more than you might think. When I first started my design business almost 20 years ago, onboarding was, well, let's call it casual. I thought, we've signed the contract, they know what's happening and we're good. Spoiler alert. We were not good. One client expected me to act as her general contractor. Another assumed the furniture budget included my design fee. Yet another wanted weekly check ins when I had planned bi weekly for a small project.

Katie Decker-Erickson [00:01:52]:

And none of these clients were unreasonable. It was my onboarding process. The left room for confusion. And the research backs this up. In fact, a 2023 Zendesk Customer Experience Trends report found that over 60% of customer frustration stems from unclear or inconsistent communication. That means that more than half of your project stress could be prevented before you even pick up your design tools. Think about it. You would never start a project without a clear scope of work.

Katie Decker-Erickson [00:02:25]:

So why would you start a client relationship without one? Expectations begin before the project does. And here's the biggest mistake I see designers making. They think expectations start with the welcome packet. But the truth is, expectations start way earlier with your proposal, your contract, and then your welcome packet. So let's break it down. The proposal. This is your first line of defense. It's where you set the tone for scope and budget.

Katie Decker-Erickson [00:02:56]:

And I always recommend doing a budget checkup. At this stage, if a client wants a kitchen remodel with custom cabinetry for $25,000, this is the time to educate and reset expectations. Not three months into the project, the proposal is your chance to align what they want with with what it actually costs. And research from PMI shows that nearly 40% of project overruns stem from unrealistic budgeting and scope. Catching that early on is going to protect both you and your client, leading to a better relationship and a better project. Now, let's talk about the contract. The contract really is the legal backbone, but it's also an expectations management tool. Again, it defines revisions, responsibilities, payment schedules, and what happens when things don't go to plan.

Katie Decker-Erickson [00:03:50]:

Think of it as the rulebook for engagement. Without it, everyone's playing a different game. In fact, this is why I have created both a extensive legal contract for residential design and an extensive one for commercial. With the help of an incredible intellectual property attorney, I would highly recommend, and we will put in the show notes, getting your hands on one of these that are adaptable to your situation, but that are extensive. If your contract is less than 10 pages, it probably is missing something. Now we come to the part we often think about. The welcome packet. Right? This is where you move from all that legalese to the actual client experience.

Katie Decker-Erickson [00:04:31]:

It's warm, it's visual, and it is designed to build confidence. And my welcome packet in our firm always includes a Gantt chart. Why? Because it shows the sequence of tasks, dependencies and milestones in a way clients instantly understand. In fact, the American Psychological association has found the visual roadmaps increase client trust by nearly 50%. It takes the invisible again and makes it visible. Let's talk about what I lovingly call the four pillars of a solid onboarding process. I'm going to break this down for you because these aren't just nice to haves. They once again are the backbone of a smooth, profitable project.

Katie Decker-Erickson [00:05:17]:

Let's start with number one. Your first pillar is welcome and orientation. And this is your warm hug. Research from the Harvard Business Review shows that first impressions form in as little as six, seven seconds. That's insane. And those impressions really stick. In fact, they create something called a halo effect that hovers over everything and every other interaction you have with someone. It tense the relationship.

Katie Decker-Erickson [00:05:44]:

In short, your welcome packet. A short video or even a branded email can set the tone. You're in the right place and we've got you. All right, time for pillar number two. Roles and responsibilities. Spell it out. What you do, what they do, and what your vendors do. And if you're project managing what your contractors are going to do right? Well, a great example of this is we'll source and present three sofa options.

Katie Decker-Erickson [00:06:13]:

You'll review and choose within 48 hours. The vendor will handle delivery and damages. Or if you're a full service design firm, you can say that's something you handle as well as part of your services. And if you're project managing, the reality is clear roles reduce scope creep, which according to PMI's Pulse of the Profession report, is the number one cause a project overruns and spoiler alert, a good contract addresses this. In fact, the ones I mentioned earlier absolutely do and allow you to continue running on the project and allow scope creep to happen while allowing you to make money on scope creep and still being within the confines of the contract. Which is why I love the contracts we've created pillar number three the communication map A McKinsey study found that employees spend 28% of their week managing email. That's over a quarter of your time. If it's that bad for us, imagine how scattered our clients feel, right? A Communication Map Project updates are sent Fridays by email.

Katie Decker-Erickson [00:07:16]:

Urgent matters are resolved by phone. It eliminates the guessing game because we know the consistency results in trust. Your fourth and final pillar is that process timeline. Give them the bird's eye view visual timelines. They're not just fluff, they actually go back to building confidence. That American Psychological association that I mentioned earlier found that people are 50% more likely to trust processes when they can see a roadmap. And like I mentioned, that's why we always include the Gantt chart. All right, preventing misunderstandings before they happen.

Katie Decker-Erickson [00:07:56]:

And here's a mindset shift for you. Onboarding, like I said, is prevention, not correction. As you've often heard said, an ounce of prevention is worth a pound of cure. Your welcome packet is the exact same way. If you don't set expectations up front, you're going to spend the project backpedaling. And backpedaling, as you well know, cost you money, reputation, and eventually your sanity. Michael Gerber in the E Myth Revisited said, systems run the business and people run the systems. And as a result, your onboarding isn't fluff, it is another system.

Katie Decker-Erickson [00:08:31]:

And you should be looking at that way because a client experience it really matters. And you can turn this into a machine not just for your current business, but future projects and referrals as well. Remember, as Donald Miller's story brand reminds us, you are the guide, not the hero. So onboarding is your Chance to say, here's the map, I'm going to guide you. You're safe. So let's pause. What's one thing that you wish you had told a client at the beginning of the project but didn't? Was it about revisions, procurement, timelines? The difference between email and emergencies? Well, DM me because I, I want to hear your stories. And who knows, you may end up on a future episode.

Katie Decker-Erickson [00:09:16]:

All right, on to real world examples. I'll never forget one designer I coach who responded to clients everywhere. Texts, emails, late night calls. She thought she was being helpful, but she looks scattered and set an impossible precedent. And after burning out, she added in this communication for pillar strategy and said, I responded to project emails Tuesdays and Thursdays between nine and three in our welcome packet. Clients respected it. Her response rate didn't drop, but I can tell you her stress level did. Another designer I coached had a client who ghosted her for weeks.

Katie Decker-Erickson [00:09:51]:

And I hear this from so many designers. No feedback meant timelines ballooned and the trust eroded. And now she has what's actually an engagement clause in her welcome packet that says if feedback isn't received within five business days, the project is paused and rescheduled. And that type of clause, I want to be really clear, that is not punitive or punishing or brutal. It's just setting a clear boundary. And clients know the rules up in front. That also means that they're more likely to engage more quickly through the process. I should clarify, these aren't just rules.

Katie Decker-Erickson [00:10:27]:

They're boundaries that protect both you and your client, and they protect your profitability. And both of these small onboarding tweaks for these two designers I coached turned chaos into clarity. And clarity is where we know the profit lives. So how do you implement this in your business? I want to give you actionable steps and create a roadmap with you. First, start with the proposal. Do the budget reality check here. Align the scope and the investment. Second of all, have a great contract.

Katie Decker-Erickson [00:11:00]:

Like I said, this is why I offer both a commercial contract and a residential contract created by a brilliant intellectual property attorney. You have to put legal clarity around the rules, the payments, the revisions, the scope, how we're even going to handle scope creep, which is addressed in these contracts. And then finally deliver the welcome packet. And this is where you're going to bring the warmth, the process, the visuals, like that Gantt chart I recommended. This is where that all comes to life. Now, if you don't have these systems, don't try to build them all at once. It is like eating an elephant. Start one bite at a time.

Katie Decker-Erickson [00:11:38]:

A budget range page in your proposal? Maybe. Or perhaps you include a stronger revision clause in your contract. Maybe you do a timeline graphic in your welcome packet. We are looking for progress over perfection here. So let's circle back to our two truths and a lie. Our first one was onboarding is all about paperwork and contracts. Number two, a great onboarding process actually market your business while managing expectations. And number three, the number one cause of client frustration is unclear communication at the start.

Katie Decker-Erickson [00:12:12]:

I hope that after listening to this episode, you can easily spot the lie, which is number one. Onboarding is not just paperwork and contracts, folks. That's the bare minimum. Done well. It's your first experience of professionalism, structure and care that you're providing to your client. So here's this week's takeaway. When you set expectations in your proposal and your contract and your welcome packet, you're protecting your profit, you're preventing misunderstandings and you're elevating your client experience. How is all of that not a win? Right.

Katie Decker-Erickson [00:12:47]:

That's why onboarding is a cornerstone of our Project to Profit series. Because clarity at the beginning isn't just about happy clients. It's about sustainable, profitable design firms. And if you're thinking Katie, I know I need this, but I don't know where to begin. Let's talk. This is exactly why I offer a free 15 minute problem solving session where we'll pinpoint your biggest onboarding gap and fix it fast. You can grab a [email protected]. and remember, success isn't about working harder.

Katie Decker-Erickson [00:13:22]:

It's about your business working for you, not you working for it. Take care and I look forward to seeing you next time.