Creative Genius Podcast

Four years ago the interior design industry came to a grinding halt as the pandemic swept the globe. And then, almost as quickly, the industry began to bounce back. Again, to most everyone’s surprise, it went from bounce to boom. Amongst all that turbulence came a lot of changes. Today’s interior design industry is not the same as it was four years ago. With the proliferation of artificial intelligence (AI) technologies, designers can expect more change ahead.

In this episode, Gail talks with Kaitlin Petersen, editor-in-chief of Business of Home. The website describes itself as the daily media of record for the home industry and the voice of authority for interior design professionals. Kaitlin has been with Business of Home for seven years but has been writing about the style and design trade for more than a decade. Her work has appeared in Elle Decor, House Beautiful, Metropolitan Home and Veranda, as well as Chicago, Texas Monthly, Time Out New York, and the international editions of Vanity Fair and Vogue.

Gail asked Kaitlin what changes she’s seen in the industry during her tenure with Business of Home. She said the biggest change she’s witnessed is that clients are getting smarter. They are more knowledgeable about design, products and the design process. They are well-versed in Instagram, Pinterest, Houzz, and other online sources of design information. As a result, they want to be more involved in decisions about design or aesthetics, budget and how the project should be managed.

A big challenge for designers, said Kaitlin, is that as a result of doing their own research, clients are not always well or properly informed. They may come to a project with misinformation and unrealistic expectations. Designers have to be prepared to educate or re-educate their clients so as to counter their erroneous preconceived notions about design and their project.

On the flip side, Kaitlin said, these more knowledgeable clients have forced more designers to re-think and justify their value proposition. More of them can now articulate and defend why they are billing as they do. They can draw a straighter line between what they bring to the project and their fee structure.

Looking to the future, Kaitlin said she thought the big thing for designers to watch is AI. She does not see AI as a threat to replacing designers’ talent and experience. However, it could have some upsides, as a useful trigger for inspiration and potentially to help streamline routine business operations.

During their conversation, Kaitlin also talked about how she had to overcome her anxiety about “impostor syndrome,” the 50 States Project she’s undertaken, and recent hiring trends in the industry. For all that and her advice for design business owners, listen to the entire podcast.

If you're listening on your favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s9e3-shownotes

Mentioned in This Podcast

Gail has been contributing articles to Business of Home. You can read Gail's articles here.

You can take the 2024 Interior Designers Survey here.

https://www.youtube.com/watch?v=AhN9khsIq_c

The launch of ChatGPT to the general public in November 2022 ushered in a new era in the ever-expanding reach of technology into the workplace and our daily lives. Suddenly people with no technical skills or knowledge of artificial intelligence (AI) could easily query an interactive assistant to perform various types of research, to synthesize large bodies of information, to generate content and images based on existing models, and more. Today, ChatGPT and other AI tools are used in many industries and are changing the way business is done, including marketing.

In this episode, Gail talks with John Jantsch, founder of Duct Tape Marketing, which specializes in marketing advice for small businesses. John is the author of seven books on marketing and business strategy, as well as the Duct Tape Marketing blog. He is also the host of the Duct Tape Marketing Podcast.

Gail asked John what changes he has seen in recent years in small business marketing. He said the most obvious change is the use of social media platforms and online communities like TikTok for marketing. The bigger shift, however, has been in how customers shop and choose to buy. Because of those digital resources, they can now more easily do their own research. They tend to rely more on influencers and reviews they find online than on providers themselves for information. Consequently, they have already progressed fairly far along in their decision-making before they ever contact a manufacturer, seller or service provider.

Now, with ChatGPT and similar AI tools, customers can ask the tool to do their research for them. By doing so, they can skip having to do an internet search. That also means they no longer encounter the ads and optimized listings of sellers and providers who market through those search engines. Businesses need to adjust to the new ways customers are getting their information.

John recommended that interior designers become informed about ChatGPT and other AI tools to understand their basic functions and how others are using them. Then, he said, start playing with them to get a feel for what they can do and for their limitations. “Think about them like hiring an intern,” he said. “They can be an incredible assistant.”

Once comfortable with the technology, use the tools to expand your marketing outreach. He suggested producing a video first. Make a transcript of the video. Then use AI tools to produce that content in multiple formats and distribute it in a variety of ways throughout the various digital media platforms, exponentially increasing your exposure.

John also talked about the importance of having a Chief Marketing Officer (CMO) function to strategize and coordinate all marketing activities for the business. For more information on that and other marketing tips, listen to the entire podcast.

If you're listening on your favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s9e2-shownotes

Mentioned in This Podcast

To learn more about John and Duct Tape Marketing, visit the firm’s website at ducttapemarketing.com. You will also find articles, a newsletter, and John’s blog and podcast on marketing for small businesses.

John mentioned the title of his first book, Duct Tape Marketing: The World's Most Practical Small Business Marketing Guide (revised and updated in 2011). He also mentioned the title of his most recent book, The Ultimate Marketing Engine: 5 Steps to Ridiculously Consistent Growth, published in 2021. You will find information about all of John’s books on the website at ducttapemarketing.com/about/books.

https://www.youtube.com/watch?v=PfDKZCSDLYE

For small business owners, selling their business often is the biggest financial transaction they will ever undertake. It can be a highly emotional and stressful time. Sellers need to be prepared to undergo a multi-stage process that will demand a substantial amount of their time and attention.

In this episode, Gail talks with William Lieberman, founder and managing partner of The CEO’s Right Hand, a boutique financial and human resources services firm based in New York. Among its other services, the firm advises on and assists with mergers and acquisitions, exit planning, and corporate valuation.

Plan ahead. Get help. Don’t let the demands of selling your business distract you from running your business. Continue to maintain and grow the firm’s value. That, in a nutshell, is the advice William had for interior design firm owners thinking about selling their business sometime in the future.

“You need to start sooner rather than later,” he said. It takes time to plan ahead, to get the business in order, and to ensure it is valuable and profitable at the time of sale.

Prior to taking steps to sell the business, you’ll need to collect all the necessary documents, make sure all financial records are correct and up-to-date, and educate yourself about what’s involved in evaluating and selling the business. You also want to have an exit plan in place and know what you want to get out of the business in terms of cash, future involvement (if any), and rights.

William outlined an extensive multi-stage process for selling a business. It begins with selecting an advisor to work with. “You do not want to try to do this on your own,” he cautioned. It then moves through evaluating the business, identifying an appropriate pool of potential buyers, marketing to those prospects, soliciting and negotiating letters of intent, performing due diligence for both parties, and drawing up the necessary legal documents. If all goes well, you can then move to closing the sale.

In addition, William provided advice on how to select an advisor and a firm to conduct the business evaluation. He gave more detail about what preparations owners should make before approaching an advisor about selling the business. And he talked about some of the challenges owners may encounter during the sales process.

To get all the nitty-gritty, listen to the entire podcast.

If you're listening on your favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s9e1-shownotes

Mentioned in This Podcast

William provided a brief explanation of EBIDA (i.e, earnings before interest, depreciation and amortization), which is a measure of a company’s earnings and value.

To learn more about William and the services provided by The CEO’s Right Hand, go to the firm’s website at theceosrighthand.co.

The CEO's Right Hand would also like to share the following tools with our listeners:

To learn more about what investors look for when valuing your business, and how to improve your valuation, check out TCRH’s free guide, ‘What Investors Really Want’.

And for a comprehensive overview of TCRH’s proprietary approach to holistic financial management, download Financial Infrastructure 360°™. FI360 outlines the 5 key components of responsible financial management, real life examples of avoidable issues, and a self assessment to jump start your financial planning. Download the guide here: https://theceosrighthand.co/resources/financial-infrastructure-360/

https://www.youtube.com/watch?v=u0NVEIiGwa4

Many interior design firm owners intend to never sell their business. Even in retirement, they plan to maintain some level of ownership and involvement. Yet, as we all know, stuff happens. Circumstances may arise that require selling the business. Or, as that once-distant retirement looms closer, disengaging from the business starts to look more attractive. Because you never know when you may need or want to sell your business, you should keep it sell-worthy at all times.

In this episode, Gail talks with financial advisor Marty Fahncke, founding partner with Westbound Road, LLC in Cheyenne, Wyoming. Among other services, his firm specializes in mergers and acquisitions.

Marty has been involved in the sale of several interior design and architecture firms. He explained that unlike other types of businesses that own a sizable amount of tangible assets (e.g., physical inventory, equipment or real estate), with architecture and design firms “their brain power is their asset.” That makes A&D firms harder to value and more complicated to sell. So, it takes longer than most owners expect to find the right buyer for their firm.

When designers do need to sell their business or choose to retire, Marty said, they often do so on short notice. For many, that may mean that they will not receive the amount of money they are hoping for. Ideally, you want to start preparing to sell two to three years in advance. Better yet, he said, “always prepare your business for sale, even if you never plan to sell it.”

Marty mentioned several business practices to have in place to keep the firm sell-worthy:

Have a succession plan

Decide what you want to accomplish in your business and when

Clean up financials (e.g., separating business and personal expenses)

Budget financials to ensure the business is profitable

Have replicable systems that someone can easily adopt and employ

Have a standard operating system and document all policies and procedures

Remove yourself from the business (i.e., don’t use your name as the name of the business, don’t be the only one who can bring in new business)

Gail and Marty also talked about the different ways businesses can be valued, how to select the right professional to help you with selling your business, and what can go wrong when an owner has not properly prepared to sell their business. For those and other insights, listen to the entire podcast.

If you're listening to this episode on your favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s8e10-shownotes

Mentioned in This Podcast

For more information about Marty and his firm, go to the company’s website at www.westboundroad.com.

Gail referred to EBIDA (earnings before interest, depreciation and amortization), which is a measure of a company’s earnings. Marty mentioned SDE (sellers discretionary earnings) as another commonly used method for valuing a small business.

Marty also mentioned EOS (Entrepreneurial Operating System). It is a set of concepts and tools to help entrepreneurs get better control of their businesses and achieve their business goals. For more information, go to the EOS Worldwide website at www.eosworldwide.com.

If you missed it, hear Patti Julber tell her story of selling her design business in another episode from this season.

https://www.youtube.com/watch?v=weWqxoOVgBc

Attracting and engaging highly affluent clients requires a special set of skills. You need to understand their particular needs and expectations. While some can be overly demanding, if you earn their trust and respect, they can be some of the most loyal clients you can have.

In this episode, Gail talks with Klaus Baer, chief operations officer of WRJ Interiors in Jackson Hole, Wyoming. Founded in 2003, the firm has grown into a team of 25, with an enviable roster of highly affluent and influential clients. Klaus has degrees in both business and interior design, but prefers to focus on the operations side of the firm.

From the beginning, the firm set its sights on attracting highly affluent clients in the region around Jackson Hole who were looking for something other than the traditional western look. They were appealing to those who had an appreciation for quality and attention to detail.

Gail asked Klaus what advice he had for designers who wanted to break into the highly affluent client market. What is it that highly affluent clients really want? Klaus offered what he has learned from his experience:

Trust — It’s important to develop a level of trust and discretion.

Make things easy for them. Help them make decisions.

Have fun. Be professional, but try to keep the mood light to alleviate any tension.

Be respectful of their time.

Be accountable — Own up to mistakes and present a constructive plan for moving forward.

Manage expectations. Try to avoid delays, but notify them right away if a delay appears imminent. Explain the circumstances and adjust the schedule.

Klaus said that there’s a learning curve that only comes with experience. Still, it’s important to develop team members’ skills, especially soft skills like communication, so that they deliver the outstanding level of service highly affluent clients expect.

During their conversation, Gail and Klaus also touched on how his firm markets to highly affluent prospects, creating a balanced project budget, and tips for running a successful firm. For those and more, listen to the entire podcast.

If you're listening on your favorite podcast platform, view the full shownotes here: https://thepearlcollective.com/s8e9-shownotes

Mentioned in This Podcast

For more information about Klaus and WRJ Interiors, visit the firm’s website at www.wrjdesign.com.

For more insights into attracting and maintaining affluent clients, read our Ultimate Guide to Working with Affluent Clients.

https://www.youtube.com/watch?v=yLPoVJMWoo4

If your future plans include selling your business, you’ll want to be prepared well in advance.

You’ll have a lot of decisions to make, a lot of experts to consult, and a lot of paperwork to process. First and foremost, you’ll need to keep your practice thriving to make it attractive to potential buyers.

In this episode, Gail invites interior designer Patti Julber back to the podcast. Patti, who serves as director of coaching for Pearl Collective, recently sold her interior design business, Complements Home Interiors in Bend, Oregon, after 21 years. Gail asked her to share her experience and lessons learned from the process.

Patti said she knew it was time for her to sell when she realized she had lost her enthusiasm for the business. She first listed the firm for sale in 2018 but did not find a suitable buyer until 2022. Her first choice, she said, was to have a member of her team buy the business. But that turned out not to be an option. She then worked with a mergers and acquisition broker to find an outside buyer.

In the course of their conversation, Patti noted several key factors that owners should be aware of when considering selling their business:

If your name is the name of the business, you’re likely to get about 20 percent less for it than if it has a corporate name.

You want to be sure that you continue to market and attract new business. Buyers want to see a pipeline of current and future projects they can count on to start generating revenue right away.

Have all your processes and procedures documented. All manuals, policy documents, inventory records, personnel records, and, of course, financial records need to be up-to-date at the time of sale.If it is taking you several years to find a buyer, make sure you revalue your business every year so the most recent valuation is current and accurate.

Know what you want out of the sale going in, including what is an acceptable price.

Gail asked Patti what, in hindsight, she would have done differently. Patti said she would have asked up front for a checklist of all the tasks and paperwork she needed to complete and a schedule with the due date for each one. She also mentioned the importance of having good relationships with your bank, your attorney and your CPA. That can be a big help in moving the process along more quickly.

For more insights from Patti, listen to the entire podcast.

If you're listening on your favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s8e8-shownotes

Mentioned in This Podcast

You can find out more about Patti’s coaching services on our team page. There’s a link at the bottom of the page if you want to arrange a call or appointment with Patti.

You can also listen to Season 6 Episode 10 of the Creative Genius Podcast in which Patti talks about the benefits of working with a business coach.

For information about Patti’s former firm, go to the website at www.complementshome.com.

https://www.youtube.com/watch?v=RVC8HpJaqgM

What’s driving your interior design business? Is it your vision? Or is it what clients—any clients—tell you they want? It takes courage and confidence to show the world who you are and let them decide if it’s what they want. Yet, the rewards can be great. You won’t know unless you try.

In this episode, Gail talks with Nina Magon, founder and principal, Nina Magon Studio, based in Houston, Texas, with offices in San Francisco, California and (soon) Austin, Texas. Along with her design practice, which includes residential, commercial and hospitality, Nina also has developed a number of award-winning lifestyle product collections for famous manufacturers and retailers. Her business skills earned her recognition as “Entrepreneur of the Year” from the Asian Chamber of Commerce. Recently, she published her first book, Evoke, exhibiting her unique style of design and fashion.

Nina had a background in business, finance and fashion before becoming an interior designer. They have had a profound impact on her practice and how she operates her firm. “If you don’t apply business to your artistic talent, you never really go anywhere with it,” she said.

Like many designers, Nina started out doing projects for friends, which led to her starting her firm. She recalled that she began as a traditionalist, because that was the style that prospective clients in the Houston area were looking for. But she had another vision for herself. She eventually gravitated toward minimalism and modernism. Later, she incorporated more luxury and glamour into her designs, evolving the style that she now is famous for.

“I learned a lot from doing it, more than anything else,” she explained. Trying new things and taking risks, she said, forced her to learn. She gradually made peace with the fact that not everyone is going to like what you do, and some will even criticize you for it. She chose to focus on her successes instead. “Every little win you have builds confidence to take that extra step or to move ahead.”

Gail asked Nina what advice she had for listeners who may be inspired by her story. She offered these pointers:

Do what you like and what you believe in.

You have to work on yourself. Self-awareness and self-reflection are critical for improving your interactions with others.

You have to learn to let go if you want to grow.

During their conversation, Nina recounted how she started designing products, her vision for the future of her firm, and how she strives to provide excellent service to her clients. For all this and more, listen to the entire podcast.

If you're listening on your favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s8e7-shownotes

Mentioned in This Podcast

To learn more about Nina and her firm, and to view her portfolio and product collections, visit the firm’s website at ninamagon.com.

Nina’s book, Evoke: Nina Magon, is available through online booksellers. For a look inside, visit the publisher’s website.

https://www.youtube.com/watch?v=ENrDV0Lf7Xo

To stay physically healthy you need to eat a balanced diet, exercise regularly and get periodic check-ups. The same is true for your financial health, whether for your personal finances or those of your business. In addition to monitoring your accounts and monthly P&L statement, you need to keep abreast of changes in tax and estate law at the state and federal levels. You also need a strategy for growing and protecting your wealth, so that you can enjoy the lifestyle you want when you retire or sell your business.

In this episode, Gail talks with Walter Russell of Russell and Associates in New Albany, Ohio. Walter has more than 20 years in the financial industry, working with many of the top financial organizations, including JP Morgan Chase & Co., Ameriprise Financial, LPL Financial, and Kestra Financial. A certified financial planner (CFP), Walter now operates his own financial planning and investments firm.

Gail asked Walter what kinds of financial matters small business owners should be concerned about. He said one of the first things he asks small business owners is, if you pass away, who owns your business? Most don’t know and haven’t even thought about it. He advised setting up a trust and designating who the ownership passes to and who the beneficiaries of the trust should be.

Unless Congress passes other legislation before then, a number of recent changes in the federal tax laws will take effect in the coming years that will increase taxes for individuals and reduce tax protections for heirs and beneficiaries. Due to the substantial size of the national debt, Congress will likely be looking to increase various sorts of taxes in the coming years to increase federal revenues and pay down the deficit. Many states will be doing so, too.

Walter said the three most important things individuals and business owners can do to grow and protect their wealth are:

Start financial planning as early as possible. The earlier you start the longer you have for your investments to accrue and compound. Also, have a “Just In Case” plan so your loved ones know how to access your financial accounts should something happen to you.

Discuss with your accountant and tax attorney what are your options for minimizing your tax liability—now, in retirement, and for your estate. This is especially crucial for business owners who are subject to the self-employment tax.

Set up a Roth IRA and contribute the maximum amount each year. Assets from a Roth IRA are tax-free when withdrawn in retirement.

In their conversation, Walter also talked about what financial strategies individuals should adopt at each life stage, from their 30s to their 60s, and what questions to ask when choosing a CFP to work with. For these and other valuable tips, listen to the entire podcast.

If you're listening on you're favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s8e6-shownotes

Mentioned in This Podcast

For more information about Walter and his firm, go to the company website at russellandcompany.com. You’ll also find there Russell’s blog, which contains lots of useful information about financial matters, planning and taxes.

To download Walter Russell's Just In Case Book, click the button below:

Download the Just In Case Book Here

https://www.youtube.com/watch?v=ueEM2AHaSTQ

Many factors contribute to success. Some we can control and some we can’t. But there’s one factor that separates the somewhat successful from the highly successful: setting goals and sticking to them. Whatever fortune or misfortune you may encounter, you have to stay laser-focused on achieving your goals if you want to realize your dreams. The place to start is by holding yourself accountable every day for accomplishing the tasks that will bring you closer to your goal.

In this episode, Gail Doby talks with businesswoman, entrepreneur and philanthropist Liz Elting. Co-founder and former CEO of one of the world’s biggest translation services providers, TransPerfect, she has appeared on Forbes’ list of the Richest Self-made Women every year since 2016. She recently published her first book, an instant bestseller, Dream Big and Win.

Gail started the conversation by asking Liz, when she first had the idea for her company, if she ever thought one day it would be worth more than $1 billion. Liz said not in those terms. She knew she wanted it to be the biggest and the best. She had the drive and a strong work ethic her parents had instilled in her. “I’m a big believer in grit, staying in there, working hard, and sacrificing,” she said.

Growing and running a business is hard, Liz noted. To stay positive and motivated, you need to derive pleasure from what you’re doing, such as achieving your goals and your purpose. Surround yourself with a team that’s like-minded and is invested in making the business a success.

In her book, Liz talks about the importance of self-accountability to achieving success and realizing your dreams. Doing always eclipses dreaming, she writes. First, she said, you need to nail down what your goal is. Then, identify the actions you need to take every day, every week and every month to achieve that goal. Finally, make yourself accountable to yourself to take those actions and complete those tasks.

“People can have big goals, but then they get distracted and don’t hold themselves accountable for achieving their goals,” Liz said. She cited a Harvard Business School study that found only three percent of people actually have specific goals, write them down and talk about them with others. Those people, the study found, earn up to ten times as much as the people who do not have and/or act on specific goals.

Gail and Liz touched on several topics during their conversation, including the challenges of being a mother and running a business, how best to manage employees, and the qualities of a great leader. Gail also asked Liz about her foundation and other philanthropic pursuits. For details, listen to the entire podcast.

If you're listening on your favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s8e5-shownotes

Mentioned in This Podcast

To learn more about Liz and her new book, Dream Big and Win: Translating Passion Into Purpose and Creating a Billion-Dollar Business, visit her website at lizelting.com.

For more about the mission and activities of the Elizabeth Elting Foundation, go to the foundation’s website at www.elizabetheltingfoundation.org.

Gail Doby speaks with Bob Rauf, a wealth management advisor. He discusses succession planning for design business owners.

If you're listening on your favorite podcast platform, read the full shownotes here: https://thepearlcollective.com/s8e4-shownotes