The beginning of the year often brings about new goals and advancements for many businesses. It encourages a reflection on the prior year and visualization of everything you want to achieve for the year ahead.
If you find it overwhelming to plan for the new year, or you don't know where to start, that's okay – you're not alone! Many other principal designers, business owners, or managers in the interior design world and beyond also can find it a challenge.
DesignDocs is here to help your interior design business succeed, so let us share with you six ways your interior design firm can plan for the new year.
1. EVALUATE YOUR FIRM'S FINANCIAL PERFORMANCE FROM THE PREVIOUS YEAR
What clients and projects were most profitable for your interior design firm? Which vendors did you spend the most with that you could try to negotiate some discounts with this year? How are tasks allocated across your team? Is this the right time to bring a junior or intermediate designer onboard?
To answer any of these questions with confidence, you must have insight into your firm’s financials. If you don't look back on your financials from the previous year, you won't accurately know how your design firm performed.
The best way to accurately get these measurements is to utilize all-in-one accounting and project management software. Only when the project management side of your design firm is integrated with the accounting and financial side will you get a clear overview of your true financial health.
Synchronizing these two sides of the business allows for generating practical reports with the click of a few buttons, from project financial reports and gross margin reports to budget reports, sales and profit reports, and so much more.
Evaluating your firm's financial performance from the previous year using these reports will allow you to determine areas where you could have allocated resources and time more effectively. This will give you an idea of patterns so that you can better predict your revenue, expenses, and cash flows for the new year.
2. REFLECT ON PROJECTS FROM THE PREVIOUS YEAR
In reference to the previous point, what projects stand out to you from last year, and what made them great? Was it the type of client you worked with that made the project so special? Or perhaps the scale of the work, the end results, or the press and media your firm received from the project?
On the other hand, what projects did you have to battle through the most and why? How can you avoid being in that same position again this year?
This year, create a plan to target more projects that will benefit your interior design firm's profitability and growth. At the end of the day, if you don't actively set your sights on these projects, you most likely won't recognize the "perfect one" when it comes along.
3. UPDATE, OR CREATE, YOUR FIRM’S SWOT ANALYSIS
When was the last time your interior design firm completed a SWOT Analysis? Common within the business world, a SWOT analysis is a strategic planning and management tool that identifies the strengths, weaknesses, opportunities, and threats that surround your business. It helps you analyze where your design firm is performing best right now and where it could do better with help from a savvy strategy for the future.
Taking time to do a SWOT analysis (or update it) at the beginning of each year helps to uncover areas of focus that will promote growth in your design firm. It allows you to reassess potential threats that may surface and any weaknesses that have become apparent in your business. This will guide you when defining your goals and priorities for the year.
4. LOOK AT HOW YOUR BUSINESS POSITIONS ITSELF
So, you've evaluated (or reevaluated) your strengths, weaknesses, opportunities, and threats. Now you're well placed to think deeper about where your firm stands in the interior design industry.
Looking at how your interior design business positions itself ensures that you won’t overstretch your team. In addition, it will eliminate time and energy spent bidding for projects that don’t align with your business goals and where you want to be positioned at the end of the year.
Are you small and boutique, or are you large-scale with the objective to grow further this year? Look into your firm’s positioning and make any necessary adjustments to your marketing strategy so that you can target ideal clients and projects. How you market your firm and the message you put out determines what people think and say about your firm. What sets you apart from other businesses? How do you work with clients? What is your design style? Know your audience and be strong in your market position to reach and engage with them.
5. SET SOME GOALS FOR THE YEAR
Now, it’s time to set some realistic goals for the year. Goals help ensure everyone in the team moves in the same direction and knows their priorities.
Write down yearly goals for your business; they could be financial goals, marketing goals, goals for your employees, or the overall goals and vision for the company. They should be a combination of both short and long-term and can be broken down into three-month, six-month, and "by-end-of-the-year" goals.
While goal setting can happen with just the management or senior team, it can also involve the entire firm. Either way, make sure the final list is shared with the team so that everyone stays in the loop and knows exactly what you are all working collectively to achieve.
6. KEEP POSITIVE
Leading a business is no mean feat. Whether you're the principal designer of a large firm or a one-person start-up design firm, chances are you wear many hats interchangeably on a day-to-day basis.
As you progress through the year, the main thing to remember is that you're doing a good job! Staying present and consistently working toward your goals shows determination, perseverance, and resilience.
Challenges will undoubtedly come your way, and the truth is that some of these may stop you from checking off those 2022 goals as soon as you'd like. So when it comes to the end of the year, don't be too hard on yourself over goals you don’t quite accomplish. Instead, try to maintain a positive outlook as you work through the year. Keep in mind that there is no harm in carrying over the goals you didn't quite reach this year into the next if you still have your sights set on them.
