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You can have a $500,000 interior design firm and be broke. You can have a million-dollar firm and still be broke. Revenue alone doesn't tell me whether I'm looking at a financially healthy company.

Welcome to Part 2 of The Design Business Diagnostic. Last week, I introduced the five areas I look at when diagnosing the health of an established design firm. Now we're going deeper, starting with Financial Foundation.. 

This isn't about becoming an accountant. It's about understanding enough about your numbers to financially lead your company and make decisions from information rather than fear, assumptions, or whatever happens to be sitting in your checking account.

In this episode:

  •  Why revenue alone doesn't tell you whether your design firm is healthy 
  •  How a financial problem gets misdiagnosed as a marketing, hiring, or growth problem 
  •  Why more revenue can actually magnify bad business economics 
  •  How to calculate what your company needs to produce every month 
  •  Why your salary belongs in the cost of running the business 
  •  How to evaluate profitability by service rather than revenue alone 
  •  Why profit and cash are not the same thing 
  •  How a 90-day cash forecast helps you make decisions before problems happen 
  •  What belongs on a Financial CEO Dashboard 
  •  The 10 questions every design firm owner should be able to answer 
  •  Why financial fluency is leadership—not bookkeeping 

If you can't answer every question in this episode, that's not a reason to panic. It's information. Now you know where to look.

And if you're not sure whether Financial Foundation is actually the constraint in your business, that's why I created the Business Health Diagnostic. Book your complimentary 15-minute Business Diagnostic Call at FixMyDesignBiz.com.

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Podden och tillhörande omslagsbild på den här sidan tillhör Katie Decker-Erickson, Business Coach for Interior Designers. Innehållet i podden är skapat av Katie Decker-Erickson, Business Coach for Interior Designers och inte av, eller tillsammans med, Poddtoppen.