096: 5 Indicators Your Interior Design Firm Profit is on Target WITH MICHELE WILLIAMS

On the podcast today we're going to learn how profitability directly impacts the sustainability of a company. This is acutely understood at a time like this in our world and economy. The higher the profits and the better the management of those resources – the more sustainable the firm is. The lower the profits, the less management of those funds and the less sustainable the company is. 

In this podcast episode, I am going to share with you five indicators that your design firm’s profit is on target. We will dig into why profitability matters and where to start managing it properly in your firm.    

Topics Mentioned: 

• Profit Margins  

• Debt   

• Cash Flow  

• Cash Reserve 

Key Thoughts:

• Know your profit margins.
• Know the current and future value of your ideal clients.
• Have a cash reserve.
• Have a plan to manage debt.
• Understand and employ a leveraging strategy.

• Profitability layer is instrumental as we build up and we build order and we build impact with the legacy. Michele (09:25) 

• By clearly defining the goals of how you spend money, you're going to be in a much better position to assist the company to live within its means. Michele (12:51)

• Profitability and the company allows for money to be allocated to the health and the sustainability of the company as a whole. Michele (17:09)  

• Leveraging in this situation simply means investing in something to gain a profit, which is greater than the investment. So if we're going to put money in we want to get more money out. Michele (21:24)

• As your business grows readdress your KPIs, look for new or different measurements to guide your current and future success. Michele (25:04)

Contact Michele:

• Email: [email protected]

• Facebook: Scarlet Thread Consulting

• Instagram: @ScarletThreadATL

 

References and Resources:

• The Designers' Inner Circle - Become a Member Today

• Financial Health Checkup 

• Financial Planning Made Simple 

• Aim with Intent Methodology 

• Understanding Your Financials and Master Your Profit 

• Fix This Next, Profit First,  by Mike Michalowicz

• E-Myth Revisited by Michael E. Gerber 

• All Roads Lead to Profit, Episode 004 with Mike Michalowicz

• Backward Financials for the Win, Episode 011 with Tracie Taylor

• How to Start Profit First with No Profit in Your Design Business, Episode 092 with Michele Williams