A guest blog post by Gail Doby, ASID, Design Success University

I’ve been an interior designer for over 20 years, so I’ve had plenty of time to make these mistakes.  Here’s a startling statistic (and I’ll bet it is higher during this recession) – 62.8% of all new businesses fail within 6 years according to the U.S. Census Bureau, and 96% fail within 10 years.  That means you’re lucky to be one of 4 out of 100 to make it past 10 years…or is it luck?

What if you could avoid the mistakes that these business owners made?

I’d like to see you avoid them, and if you’ve already done a few of them, now you can learn what not to do so you don’t waste your valuable time and money:

1. Not having a written “ideal client” profile – If you don’t know who your ideal client is, how can you tell other people who they can refer to you?  If you’ve ever had the client from &%$&, (or more than once) the key is to know what you don’t want in a client as much as what you do want.
2. Not knowing the lifetime value of your client – If you’ve been in the business even a few years, you can add up your billings and divide by the number of clients to get your current lifetime value.  You should also look at how long they stay as a client.  These two metrics are critical in your business planning and if you have this data as part of your Business Dashboard, it will help you grow your business.
3. Spending your time and effort marketing to new prospects rather than your current clients or inactive clients – Here are the statistics: your chance of selling a fresh prospect is 1 in 10 or even as low as 1 in 13; you chance of selling an inactive client is 1 in 3; your chance of selling to an active client is 1 in 2. Do you want to work less?  Sell more to your current clients, and once you’ve maximized that, work on reactivating your old clients.  Getting new prospects is your most expensive and hardest job. (Harry Mills – The Rainmaker’s Toolkit).
4. Not staying in touch with your clients frequently – Some of you do a really good job of sending thank you notes or birthday cards, but what about offering a special service during a slow period?  There are hundreds of strategies for keeping in touch with your clients without being a pest.  Be sure and share some of your best ones and we’ll compile a list to share with you and our members.
5. Not offering additional services at the end of an engagement – You are more likely to sell additional services to your client if you are in front of them and during the time when they are most excited about what you’ve done for them.  What can you offer them?  Is there a room you can “re-style” for them?  Chances are you’ll end up with new accessory, rug or window treatment sales.  This is like an upsell at McDonald’s – “would you like fries with that?”  You already have your wallet open, and besides, those fries smell really good!  In fact, you can significantly increase your revenues by this one strategy alone, and it is easy.  Even Starbucks knows that most people come in once per day, but if you come back after 2 pm, you can have a frozen drink for $2.  Guess what, that increases their revenue by 66% in many cases, and it is business they would not have gotten otherwise!
6. Inconsistent marketing – I can guarantee that if you are only marketing when business is slow that you are experiencing repeating cycles of feast and famine.  Not having a plan and marketing each and every day guarantees cycles that will make your hair go gray!  If you have a system in place and you work the system (assuming it is the right one), you will weather any financial storm.
7. Paying hundreds or even thousands of dollars for costly magazine or newspaper advertising. Most businesses budget between 3 – 6% of their expenses for advertising, marketing and PR, but this is the worst possible place for you to be spending your money.
8. Not paying for professional photography – if you are serious about your design business, you need to pay someone to shoot your best projects.  Since my projects always took years to complete, I hired my photographer every two years and figured that a full day of photography cost around $1,500.  I used to shoot between 3 – 5 days in a row (which is exhausting).
9. Not having a strong web presence – 75% of designers do not have a website, and today, I don’t recommend spending money on a website.  A better option is a blog, social media and online directories.  Also, creating a digital portfolio and other new techniques of marketing are far more cost and time-effective than the traditional brochures and websites.  Please request a copy of our Internet Strategies for Architects and Interior Designers if you haven’t read it.  It will give you steps you can follow to join your competitors and be found by new prospects.
10. Not asking for testimonials and referrals from every client early and often – It is more effective to ask for both testimonials and referrals at the beginning of your engagement, and for sure, by the end of the project.  The easiest way to do this is have a pre-set list of questions for testimonials and interview your client while taking notes.  Ask them if you can write up the testimonial for them and then forward it to them with a date you want to receive it from them on their stationery.  Even better, get a video testimonial.  Be sure to get a testimonial release, too, so you can use it in your marketing materials.

Marketing and sales are the lifeblood of any business, and if you are consistent and observant about what works best, you’ll find that it gets easier and easier so you can focus on what you like to do best – interior design.

Author: Gail Doby

Gail is NCIDQ certified and has over twenty years of experience with multi-million dollar new construction and multi-hundred thousand dollar renovation projects for affluent clients. She has won many awards and has been published in numerous local and national publications. Gail now teaches other interior designers how to make more money in less time and with less stress.

Follow GailDoby on Twitter

Tags: branding, Building a Culture, Business Development, Customer Relations, Design Success University, Education, Gail Doby, guest blog, Marketing, Social Media, social media success, success stories