The idea of growing your profits can be pretty intimidating, not least because it’s yet another thing to focus on in a slew of responsibilities that all business owners must deal with.
Here are 5 practical ways to grow your profits, approved by interior designers who know what it’s like to be in your shoes.
1.Optimise Your Most Profitable Customers
To grow your profits, you first need to know how your clients perceive you. Keep track of your online reviews and comments on social media and compare them to your competitors.
This is especially important in the interior design industry, where high-net-worth clients have plenty to spend but can be swayed by new trends (including trendy people!).
Once you know how people see you, identify your highest spending customers and match them through demographics. They may be from the same area, or they might all be part of the same online communities. Divide them into groups and pick the group that is of the greatest value to you. This is where you’ll spend most of your marketing budget.
2.Upsell to Your Existing Customer Base
According to a recent study, you have a 60-70% chance of selling to an existing client vs. only a 5-20% chance of engaging a new one.
The challenge is figuring out how to sell to clients who already use your services. You can begin by focusing on what you can do for them instead of what they can do for you.
Think of creative ways to make them happy. Invent added value services and coat them with an offer they can’t refuse (make sure the offer is legitimately valuable). Make sure your ideas are presented at the appropriate time, like a discount on garden designs just before summer.
3.Decrease Costs Through More Efficient Operations
You’re not alone in struggling to manage your costs and maximise the efficiency of your operations – 90% of business owners are overwhelmed by the volume of work when starting out.
Managing your workflow takes practice, but while you’re learning, you can’t afford to let deadlines slip and make clients unhappy. So what can you do? Start by reviewing how your business works and pinpointing the processes that are too time-consuming.
Be prepared to invest in a really good project management system such as ProjeX, a powerful tool that was created for designers by designers and is utilised by industry pros such as FCI London. Aspiring designers can even sign up for an obligation-free one-year trial!
4.Take Charge Of Your Tax And Compliance Admin
Nothing is as daunting as staring down the barrel of tax and compliance. Not only is it complicated if you have no experience in it, but also making a mistake can be very costly.
Use systems from the beginning to streamline your HR and financial reporting and hire a tax consultant. Find someone who has a proven track record working with small businesses and knows the loopholes that will help you save money
5.Sell Through Multiple Channels
Having a great website is not enough; you need to be promoting your services across as many channels as possible.
Sell across your social channels, send out newsletters and collaborate with other like-minded brands. This diversifies your revenue stream and increases your exposure so that your brand is more widely seen.
Ready to get your luxury interior design business off the ground? These five tips will take your profits to the next level.