How to Know if you're ready to scale your interior design business

When we think about scaling a business, the first thing that typically comes to mind is “How can I get more project work”? Maybe you’re currently taking 8-10 projects a year, so you ask yourself, “How can I increase that to 12-15 per year?”

It’s true that taking on more projects is going to generate more revenue and help you grow your portfolio, AND it takes more resources (i.e. time from you, growing a team, investing in your business, etc,)

Sometimes, the real question is, “How can I generate more revenue”? “How can I grow the business? “

Generating more revenue is a GOAL and scaling is just one STRATEGY to get there.

In today’s episode we are going to talk about both. We’ll discuss the strategies you can use to increase your revenue without scaling and we’ll discuss what it takes if you decide you are going to scale

What does it mean to scale your interior design business?

Scaling doesn’t always mean taking on more projects. There are other ways you may consider increasing your revenue without taking on MORE projects each year including:

Running projects more efficiently

Completing projects in a timely manner enhances profitability and client satisfaction. In addition, the efficient delivery of each project often leads to increased overall project success.
The time gained can be utilized to either undertake additional projects throughout the year, thereby maximizing productivity, or to allow for a more balanced lifestyle by opting for extended periods of time off.

Leveling-up the projects you are willing to accept

Taking on more substantial projects (larger in scope and/or bigger budget projects)
- Remember: Leveling up your projects also requires more time/attention/focus/energy
  - Client expectations are high
  - Working with teams including architects and builders who have high expectations.
Working with more fine homes and high end clients necessitates a strategic approach, which, in turn allows you to increase your minimum design fee to reflect the exclusive nature of the work and clientele.
Pursuing more substantial projects, characterized by larger scopes and higher budgets can also be a strategy to enhance your professional portfolio and financial returns. It is crucial to recognize that these types of projects demand increased time, attention, focus, and energy.
Another additional layer of complexity in projects of a larger scale or budget to think about is that client expectations are often higher and working with teams including architects and builders may also be required.

Diversifying revenue streams

Incorporating additional services, like a "Designer for a Day" offer, can diversify your offerings and appeal to a broader clientele, which can add additional revenue streams. It's essential to thoughtfully select services that align with your business goals, avoiding the temptation to add offerings merely for the sake of adding services so that you can ensure that each service contributes meaningfully to your overall business model.

Utilizing "to-the-trade" sourcing can provide exclusive access to resources, contributing to the uniqueness and quality of your designs, setting your business apart in the competitive market.
Introducing digital products to your repertoire can open new revenue streams and expand your reach, catering to clients who may prefer virtual or downloadable design solutions.
Offering group teaching or design sessions not only allows for scalability in your business but also provides an opportunity to share your expertise with a broader audience, creating a sense of community and collaboration.

How do you know if you're ready to scale your interior design business?

Here are the 5 questions that I think you should ask yourself:

#1 - Do you have a clear vision for your business?

Where do you want to be in 3, 5, 10 years?

Do you know your mission, vision, & core values?
- Mission - Why do you get out of bed every day?
- Vision - What happens when you get out of bed?
- Values - How do you do what you do? Think of these as your guiding principles

#2 - Are you willing to invest in your business?

This step requires you to move away from looking at all the money spent as just cost but to discern when an investment will have a solid ROI

Are you willing and able to invest in business training, tools, resources, & templates that will help you go further faster?
Can you invest in Human Resources?
- At some point (if you haven’t already) you’ll peak in terms of how much work you can take on and you’ll need help from team members to support you.
Are you able to invest in software (especially automations) including:
- Honeybook or Dubsado
- Project Management systems (DesignFiles, Houzz Pro, My Doma)

#3 - Do you currently have a solid process end-to-end for client work?

Do you have a tight, repeatable, and documented process for just about everything in your business, especially your client/design process?

If you are still building the plane as you fly it - meaning you're figuring out your process as you work with clients, you may not be ready just yet. While completely normal in the early stages of business, until you've got your processes mostly locked down, you're not ready to start thinking about scaling.
Why? Your time will be unpredictable and if you don't have a process that you can teach and pass off to someone like a junior designer, scaling will just be a distraction from getting your processes in order. Get your processes in order FIRST!

- Related -

#4 - Do you currently have a solid pipeline or waitlist for project work?

Be honest about where you are.

Scaling requires that you have a pipeline of work you can count on. So how do you evaluate your pipeline?
- The best way to evaluate your pipeline is to look at a few numbers:
  - Your website traffic
  - The number of QUALIFIED leads you get each month
  - How many qualified leads are you closing?
  - How many leads are you converting to clients?
If you don’t have a solid pipeline of clients or a waitlist yet, the first goal should be to focus on business development before scaling.

#5 - Are you willing to move from Tactical (working IN your business) to Strategic (Working ON your business)

If not, do you have someone who can be that person?

You or someone on your team needs to be responsible for business development, sales, marketing, social media, etc.

Join me for a CEO Corner inside the IDBB Program to continue the conversation on scaling!

If you liked this episode and you're starting to think about scaling, I'm hosting a CEO corner inside the IDBB program where we'll continue this conversation about scaling.

What we'll do in the CEO corner is take it to the next step for those who have decided - Yes, I want to scale my business! We’ll talk specifically about whether you are ready to increase your capacity to take on more projects per year and how you do that!

We'll cover:
- The Systems & Automations you need in place to scale
- Hiring, Leadership Skills, and Delegation
- The importance of building strong industry relationships

If you want access to this training, you'll want to make sure you're on the IDBB waitlist and join when the doors open in March. Go to designersoasis.com/blueprint to get on the waitlist and learn more!