098 Are You Leaving Money on the Table? Financial Systems to Protect Your Profit
In this practical episode, Beth reveals the key financial systems that separate thriving design studios from those struggling to make ends meet. Learn how to track cashflow effectively, implement invoicing best practices, and develop pricing strategies that reflect your true value. Plus, download this month's free Project Tracker template to monitor the financial health of your projects.
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Show Notes
The Reality of Design Business Finances
• Why even the most talented designers can struggle financially
• Common ways money slips through the cracks in design businesses
• The mindset shift from "hobby" to "profitable business"
Cashflow Tracking Essentials
• How to set up proper accounting systems (Xero, QuickBooks, MYOB)
• The importance of weekly cashflow reviews
• Identifying patterns in your business finances
• Common cashflow mistakes to avoid:
- Spending money before it's in the bank
- Forgetting about tax and business expenses
- Not paying yourself first
Invoicing Best Practices
• Invoice on time, every time - as soon as milestones are reached
• Set clear payment terms (7 days vs. "due upon receipt")
• Utilize automated invoicing and payment reminders
• The "accounts department" email trick for following up on late payments
• Recommended reminder cadence:
- 3 days before due date
- On the due date
- 7 days overdue
Pricing for Profitability
• Why undercharging puts a lid on studio growth • Factors to consider when setting your rates:
- Experience and expertise (including transferable skills)
- The value you bring to clients' lives
- Time spent on all aspects of projects • Questions to ask yourself about your pricing:
- Are you making a profit on every project?
- Are you including markup on sourced products?
- Would you be happy doing the project at this price again?
Free Resource
Download this month's free Project Tracker template to help monitor the financial health of your projects.
This episode is perfect for interior designers who want to strengthen the financial foundations of their business, ensure they're getting paid what they're worth, and build a truly profitable design studio.
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