During the first six years of my business, I was hoping every month that we’d have all our expenses covered. Running a business this way is not ideal.
Understanding your financial statements and managing cash flow can help avoid surprises and reduce stress in your interior design business.
That’s why, in this episode, I’ve invited Danielle, a Fractional CFO and founder of 4 Corners CFO, to discuss how to make sense of your finances and ensure your design business thrives. She shares tips on avoiding common pitfalls and the benefits of having a financial team, including a Fractional CFO.
Danielle also shares about her career transition and she totally gets the fears and uncertainties that often come with taking that next financial step.
Whether you’re just starting in the design industry or transitioning in your career, this episode is full of advice to help you take control of your finances and focus on what you love—designing beautiful spaces.
If you’re ready to take charge of your finances and grow your business, you won’t want to miss this episode and learn from Danielle’s expertise.
Why you’ve got to check out today’s episode
- Learn practical tips on managing your business finances, including cash flow, expenses, and invoicing.
- Understand common financial mistakes designers make and how to avoid them, helping you make smarter business decisions.
- Discover the benefits of having a financial team and how a Fractional CFO can guide you in long-term planning and growth, ensuring your business thrives.
About the Guest:
Danielle Hendon is the founder and owner of 4 Corners CFO, a firm offering financial advisory services to small business owners on a scale that fits their company and budget.
Coupling her decade of experience in corporate finance and accounting with her passion for small business owners, Daniel brings the benefit of big business financial analysis to entrepreneurs.
Now, instead of helping corporations increase share prices, Daniel gets to help business owners increase their livelihoods so they can leave a legacy and lasting impact on their community.
Connect with Danielle Hendon:
Website: 4 Corners CFO
Instagram: @4cornerscfo
Check out these episode highlights
02:23 – Danielle’s career transition from corporate finance to small business financial advisory services
04:04 – Starting a business during the pandemic, prioritizing profit, and balancing career and family
06:11 – The fear of taking a leap of faith in business, and the importance of setting groundwork and prioritizing profit
07:45 – The importance of cash flow management and profit first in the early stages of a business
08:59 – Pricing and Financial Management for Service-Based Businesses
Anticipate worst-case scenario expenses to prepare for project-based business fluctuations.
Price yourself to cover 12 months of expenses with each design client, not just 5 or 8 months.
11:49 – The challenge of women undervaluing their skills and worth in service-based businesses, leading to difficulties in setting prices and growing the business
14:36 – Practical Financial Advice for Interior Designers
- Track expenses and costs associated with projects.
- Invoice clients accurately and timely.
- Work with a bookkeeper to manage accounts payable and cash flow.
- Have a line of credit for unexpected expenses, citing the pandemic as an example.
- Use 0% interest credit cards as an alternative to racking up debt.
20:30 – How to Avoid Making Bad Decisions
- Don’t decide in an emotional moment.
- Give yourself space and grace to create mental space and avoid panic-driven choices.
- React from an abundant mindset.
21:46 – The six-part framework: “Reveal Your Path to Profit.”
24:52 – Definition of a Fractional CFO and Its Role
Fractional CFOs help businesses look into the future by analyzing financial data and providing strategic insights.
26:45 – Advice for new and transitioning designers
Next Steps
- Curious about your design style? Take the Quiz: Find Your Perfect Interior Design Style
- Interior Designer!! Take the QUIZ and Find Out What Type of Interior Designer You Should Be!
Grab your freebie:
Join the Design Mentor to kickstart a successful career in interior design!
Check out the best books every interior designer should have here.
Enroll in Business of Design with Kimberly Seldon or DesignYou with Tobi Fairley today to scale your interior design business!
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DM me on Instagram at @rwarddesign if you have a burning question
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Thanks for listening! I hope this helps you discover if interior design is the career for you. See you next week…