You may have had a period of incredible, consistent growth. Your team grew, your brand became recognized, and you brought in more and more projects. It was a time of excitement, where every day brought a new adventure. But now, those times have ended. You’re doing well, but you’re not doing better. You’re working as hard as ever to stay afloat, while holding onto dreams of something bigger. In this article, we’ll explore why interior design firms inevitably plateau and how you can make changes to get to the next level.
Relying on One Source of Clients
Referrals can be a fantastic way to find ideal clients, and many designers rely on them heavily. But that strength can also be a weakness. Referrals are inherently passive, and you are at the whims of your network when it comes to timing and scope of projects.
How to break free: To get off the plateau, you need to take matters into your own hands. This means running a marketing machine that adds predictability to your pipeline. You’ll want to invest in strategies that attract your ideal client and meet them where they spend their time, rather than waiting for them to find you.
A Dysfunctional Tech Stack
Your firm probably has technology systems in place for things like email, internal communication, inventory, etc. But is it actually working for you? Many firms use a tech stack that is unintegrated, or worse, use a mix of years-old spreadsheets, manual tracking, and the occasional modern tool that just doesn’t have that one critical feature. These tools probably worked up to a point, but at a certain level, they can cause friction that prevents you from working as efficiently.
How to break free: You need to start by auditing your technology. Look for the weak points that involve manual work or the involvement of additional team members, and look into other options. You may find it easier to use more integrated platforms. For example, if you use Gmail for email, it makes more sense to use Google Drive for cloud storage than Dropbox, because it uses the same accounts and integrates more cleanly. A lot of modern software can pull from other tools as well, so use these external integrations to your advantage. Above all, you’ll want to replace manual tracking with automated tools and poorly-labeled spreadsheets with programs that can generate a custom report whenever you need it.
Thinking You Know It All
Mindset is huge. When you’re new at something, you voraciously consume any and all information about the topic, because you’re curious. But when you get good at it―you nail that guitar solo, you can hold a casual conversation in French, or you fill your pipeline with clients―you can get complacent. You might even think you’ve figured it out or cracked the code―you’re a know-it-all! This kind of closed-off attitude can make you resistant to helpful advice or new business models, which means you will stagnate. The culture may even spill over into your team, creating a culture that shuns learning.
How to break free: It’s important to stay growth-oriented and be willing to change for the better. Remain coachable and open to mentors, even if you feel like you’re the one who should be doing the mentoring. Confucius once said, “If you are the smartest person in the room, then you are in the wrong room.” Always strive for this to be the case, because even the most intelligent people have something to learn. Think of another quote, this time from Socrates: “I know that I know nothing.” The most intelligent people know there is always more to learn, and refuse to stay stagnant! If you’re willing to learn and grow, you can escape the plateau.
The Principal is the Bottleneck
When you started your business, it was you and maybe one or two other people. At the point, every decision―whether creative or operational―had to go through you. If you’ve never evolved past that, this self-imposed bottleneck is the reason for your business plateauing. Why is it so bad? Because then you can never take a break. If you’re too scared to fully unplug and take a vacation because you know the business would fall apart without you, then you’ve created a single point of failure.
How to break free: You need to give your team more responsibility and more trust. Invest in training a leadership team that can make most decisions on your behalf. If they’re highly invested in the company’s success and are aware of your vision, you should be able to trust them completely. But that is an important aspect―you, as the principal or owner, must provide the training, resources, and vision that enable the team to confidently make decisions without you intervening. Not only will letting go like this help your business, but it will also reduce your own stress, letting you manage the larger decisions rather than being stuck in the weeds all day.
Your Business Model is Too Loose
If your revenue is high, but your net profit is stagnant or even shrinking, this is a sign of a weak business model. A few things can contribute to this. Firstly, if you’re worried about losing precious clients, you might be a people-pleaser. This means you’ll more often answer calls late at night, spend hours on unbilled work, and offer discounts as a selling point. All of these things break down your boundaries, weaken your value proposition, and result in lower profits.
How to break free: A strong business model is clear, specific, and well-thought-out. You should have price ranges that reflect the time and quality of work required, and factor in work that might not be billed by the hour. This includes clauses in contracts about redoing work, ordering replacement items, what hours are acceptable to call, etc. Essentially, nothing should ever be in question. The business model should cover any kind of client and eventuality that is likely to arise, so that you can take the guesswork and mental load off of future projects.
These tell-tale signs point to a business that has potential, but is experiencing roadblocks. These roadblocks might be hidden or hard to find, but overcoming them will unlock the success and opportunities you’ve long dreamed about! If you need a helping hand in figuring out why your firm is plateauing, take the next steps now.