ASID Icon - January/February 2009 - (Page 29)

Designers who experienced similar downturns in the 80s, 90s and post-9/11 say the most important thing to do is keep a positive outlook. Remind yourself that even if business is slow right now, other designers are getting work, and soon you will be, too. Use the time to organize your business, develop new business relationships and learn new skills and concepts. You’ll be better prepared to seize opportunities when they come your way. WHAT THE EXPERTS SAY Now is not the time to sit back and see what will happen, according to those who make their living advising designers on how to improve their businesses. Says Nobel, “At present, we are all in the business of intelligently and attractively inducing consumers to experience the value of interior design, while we prepare our businesses to attract those potential clients more efficiently and effectively.” According to a recent survey on what designers earn, conducted by Designing Proﬁts, which counsels interior design professionals on business and financial strategies, many design ﬁrms’ hourly rates and proﬁt margins are relatively low, compared to other comparably sized businesses. President and CEO David Shepherd believes many designers would beneﬁt from paying more attention to the business side of their businesses. In addition “Designers need to be doing one-on-one business development, meeting with the people who can help them get business.”- LLOYD PRINCETON, DESIGN MANAGEMENT COMPANY, INDUSTRY PARTNER OF ASID Steve Nobel, principal of Nobelinks, a consulting and coaching ﬁrm for the design industry, has worked recently with a number of clients whose businesses are doing well despite the economic gloom. “As I travel around the country speaking to designers, I tell them the market right now is a bit like looking for a needle in a haystack—only there are fewer needles and the haystacks are bigger. The clients are out there, but you have to work harder to ﬁnd them.” “Market, market, market,” advises Lloyd Princeton, principal consultant with Design Management Company, Industry Partner of ASID, which recently opened a third ofﬁce in London. “By marketing, I don’t mean advertising. Designers need to be doing one-on-one business development, meeting with the people who can help them get business, such as architects, builders and business leaders.” If you are thinking about “discounting” your services to be more competitive, don’t, say the experts. Although it seems counterintuitive, you may want to consider increasing your fees in order to attract desirable clients. “The economy may be down, but your services are still worth what they were worth before the decline,” says Princeton. “Don’t drop your prices. Instead, think about repackaging your services and how you charge.” to raising rates, he recommends better use of time billing, ﬁnding the right mix of more proﬁtable product lines and focusing on the most proﬁtable clients. Designing Proﬁts teaches the 80/20 rule: In most ﬁrms, 80 percent of proﬁts are generated from 20 percent of the clients, which usually means ﬁve or fewer clients. That’s where designers should be spending their time, they advise. Author, coach and speaker Fred Berns, principal of Business By Design, agrees that many designers charge less than they could and should. “Designers should be focused on their worth, not worry,” says Berns. “They have valuable expertise and shouldn’t be wasting their time with clients who want cheap services.” He recommends that designers take some time to think about what made their most successful projects so successful and to pursue similar strategies to overcome the obstacles they may be facing now. “Don’t fret about all the reasons why your business is not good, think about what you can do to make it better. Challenge yourself. There are clients out there who need you.” i Michael Berens, M.S., Ph.D., is the director of research and knowledge resources for ASID. Number of Projects Increased or Decreased in 2008 vs. 2007 (by ﬁrm type) ASID Member Economic Impact Survey 2008 increased (Total n = 1660) Multiple responses allowed. decreased stayed the same don’t know 22% 47% 22% 4% 26% 45% 22% 5% 24% 38% 24% 7% 23% 38% 23% 11% Sole Practitioner Small Firm (5 or less) Medium Firm (6 to 25) Large Firm (25 or more) www.asid.org january/february/09 icon 29 http://www.asid.org

Table of Contents Feed for the Digital Edition of ASID Icon - January/February 2009

ASID Icon - January/February 2009 Contents President's Letter Of Note Innovations Getting it Right Shadowing Design Bearing Up Industry Contrast Up Close Design for Life Environotes Inside ASID Grassroots Showroom Resource Guide/Advertisers Needful Things

ASID Icon - January/February 2009

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