I have seen this question come up a few times lately and you know what that means! Time to write about it!
This question kind of baffles me, because, yes, you should have project minimums. To me, this comes from an insecurity of putting limits on your work and a fear of turning work away. You all know you should have a minimum budget for working with clients. So right now I am giving you permission to implement project minimums.
Read MoreSometimes I see that people get thrown off by the idea of reimbursable expenses or "reimbursables" which is a little less of a mouthful.
So what is a reimbursable and how does it differ from anything else that you buy for your clients?
Read MoreA fee schedule is just a list of client fees that could occur in your business and charge to clients. It is not necessary to have one, but if your pricing structure is complicated and you want to be transparent in pricing this is the way to go. I'm 100% for clear, transparent, and simple pricing.
Read MoreYears ago when I moved to Arizona, I contacted the only local resource that worked with Studio Designer. I was restarting my business in Arizona and wanted someone to help setting up Studio and do my monthly bookkeeping. Luckily, that resource was my business accountant and bookkeeper Denise Maxwell. What is great about Denise is that she works almost exclusively with interior designers, she understands our business, she works in the program that works best for interior designers, and she is a great bridge between being a designer and accounting. If you aren't as lucky as I am to have found a great accountant on your first try, read on for my interview with Denise about finding a great accountant for your interior design business.
Read MoreHow do Interior Designers price their services? How should you price your services?
Unlike architects or realtors, there is no regulating body for interior designers. Therefore, there are about as many different pricing structures as there are interior designers. There is not a one size fits all for designers or clients, the bottom line is do you feel comfortable and confident in your pricing model?
Read MoreThe first thing to know about sales tax is that if you're selling product (and sometimes services) to clients you'll have to pay it and the second thing to know is that every jurisdiction has different rules and regulations. In other words, it is unavoidable and it is complicated.
Tax is required to be paid on goods sold, but some businesses can get exemptions to pass on this tax to the end consumer - the client. The designer purchases a taxable item with the purpose of resale and at the time the designer charges the client they also must collect sales tax. The purpose of resale is the exemption. The sales tax is passed on to the client.
Read MoreHere's a little secret about me: I despise the financial/accounting parts of running my business. So much so, there have been times that I try to ignore it altogether, forget it exists. I just want to create!
Please don't do this. This doesn't help your business grow. And ignoring your financials does not make them disappear.
Here is where creating some money habits in your business is going to come in handy. Because you are going to make them habits and habits by definition are something you do regularly. You are going to be motivated because you know that keeping an eye on your money is going to help your business grow and run more smoothly. Easier.
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