Smart Money Moves for Interior Designers: Insights from Julia Nikishina
At New Age Financial Consulting, we understand that interior design is both an art and a business. In a recent podcast appearance, our founder Julia Nikishina shared valuable financial strategies specifically for interior designers and studio-based professionals. Here are the top takeaways for creating a more profitable, efficient, and future-proof design business.
💡 Charge for the Discovery Phase
Many high-end firms are successfully implementing discovery fees—charging $25K–$50K just for the initial client consultation and planning. This helps weed out non-serious clients while compensating you for time-intensive upfront work.
📊 Embrace Accrual Accounting
Design businesses dealing with both product sales and service fees should operate on an accrual basis. This enables better visibility into income and expenses, especially when large retainers are collected in one year but work is performed in another. Tools like Studio Designer support this seamlessly.
🧾 Revenue Recognition Matters
Don't rush to recognize revenue. Julia advises using deferred revenue accounts to manage large prepayments, which can have significant tax implications if recognized too early.
🛠️ Studio Designer = Industry Gold Standard
For interior designers, Studio Designer remains the most powerful project and financial management platform. It helps track everything from bath towels to custom furniture while integrating with robust accounting workflows.
⚖️ Fee vs. Product Strategy
Designers typically juggle design fees (hourly or fixed) alongside product markup. Julia stresses understanding burden rates and ensuring pricing structures are built to cover true overhead—not just payroll, but software, cell phones, events, and even seasonal bonuses.
📈 Price Projects Properly
A good rule of thumb is to bill at 3x the base salary to account for overhead and profit. Tracking employee utilization—billable vs. non-billable hours—is essential to making this model work.
🔁 Manage Reselections with Care
Frequent client changes ("reselections") can cause serious cost overruns and confusion. Julia recommends that firms clearly define reselection policies in contracts, possibly limiting them or charging additional fees to protect margins.
🔍 Track Every Touchpoint
From concept to installation, include every team member's time in project estimates. This supports transparency and ensures profitability, especially when projects evolve from small renovations into full-home overhauls.
