105: Why Your Interior Design Firm Looks Successful But Isn't
If your interior design business looks successful from the outside but you secretly have no idea whether all that activity is making you a decent living, this one is for you. John knows this feeling personally. The year his work was published the most was the year his business was the biggest mess on the inside. Beautiful projects, recognition, press, and behind it all, undercharging, saying yes to the wrong clients, and trying to make passion do the job that systems and good financial decisions were supposed to do. The lesson he had to learn: a busy design firm and a profitable design firm are not automatically the same thing. This episode shows you how to tell the difference, and what to do if you discover your business is busier than it is profitable. No motivational speech about charging your worth. The mortgage company does not accept your confidence as payment. IN THIS EPISODE - Revenue, profit and cash are three different numbers that can tell three different stories. The goal is to stop confusing money passing through your business with money that actually belongs to your business. - Why a big furnishings payment can make you feel rich for about four minutes, and where that money actually has to go. - The question most designers skip: was the owner paid fairly for the work the owner actually did? Profit on paper is not the same as profit after fair owner compensation. - The two jobs you do, working inside the business and working on the business, and why both have a cost even if you are solo. Especially if you are solo. - Your calendar does not know your margins. How the 20-minute phone calls, extra selections and one more site trip quietly change the economics of a project. - Why "just get more clients" can backfire. Repeating a weak-margin, fuzzy-scope project five times may just give you five opportunities to be exhausted. - John's five-part check: know what came in, know what went out, account for your own labor, compare the estimate with what actually happened, and look ahead at contracted work, billing and cash timing. - Different diagnosis, different solution. Fees, scope, unpaid time and cash each need a different fix, which is why John does not love "just double your prices and hope for the best." - Capacity and getting your life back: clearer services, clearer processes, and permission to be selective. You do not owe every inquiry a proposal. YOUR HOMEWORK THIS WEEK Choose one completed project. Just one. Write down the original fee, the actual work and cost, the time you spent, any scope changes, and the amount of business retained after direct cost. Then look at that project like an owner, not just the designer who was proud of the finished room, and ask: 1. Did we price this correctly? 2. Did we deliver it efficiently? 3. Would I be happy to repeat this project under the exact same terms? If the answer to that last one is no, something needs to change before you sell the next project. UP NEXT If this episode is making you realize that your pricing may be the missing piece, the next episode is about calculating your real hourly rate. Actual numbers behind all of this. Not somebody else's rates. Yours. RESOURCES MENTIONED Free guide: I Was Pricing Interior Design All Wrong . Seven pricing mistakes John made building his firm, and what he does differently now. https://www.mcclainmethod.com/pricing-mistakes-guide CONNECT The McClain Method : https://www.mcclainmethod.com Text Me a Message! Support the show 🌟 For all things John and The McClain Method , head to: www.mcclainmethod.com https://mcclainmethod.com/ for information on coaching, memberships, & more! Sign up for my free 40 min training: The 3 Things I Wish I Had Known Before Becoming an Interior Designer https://www.mcclainmethod.com/dsa_webinar_registration 📕 Order a signed copy of John's book: The Designer Within (or purchase anywhere books are sold!) https://johnmcclaindesign.com/designerwithin Connect With John! YouTube https://www.youtube.com/@mcclainjohn Instagram https://www.instagram.com/themcclainmethod Facebook https://www.facebook.com/mcclainmethod LinkedIn https://www.linkedin.com/in/thejohnmcclain/






