Are you starting your interior design business but unsure how to manage the financial side? The right money mindset is more important than you think.
In this episode, financial expert Danielle Hayden shares why understanding your money personality is key before launching your design business. Knowing your strengths and challenges can help you avoid common pitfalls and set your business up for success.
Danielle also reveals the essential money team you need to build from day one to keep your finances in check. With her practical advice, you’ll learn how to invest in your business wisely and pay yourself properly.
Whether you’re just starting or running an established design firm, this episode provides practical solutions to take control of your finances and set your business up for long-term success.
Ready to transform your money mindset? Tune in and discover how to manage your finances better so you can focus on what you do best—designing beautiful spaces!
Why you’ve got to check out today’s episode
- Learn how your unique money personality can impact your business decisions and financial success, helping you identify strengths and areas to improve
- Build your strategic “money team” to ensure your business finances are managed effectively
- Gain practical advice on how to invest wisely in your business, ensuring sustainable growth and profitability
About the Guest:
Danielle Hayden is the co-founder and CEO of Kickstart Accounting, Inc. Her bookkeeping and accounting firm is on a mission to coach six-figure and beyond female entrepreneurs so they can better understand their numbers through bookkeeping, financial analysis, and support so they can grow profitable, sustainable and enjoyable businesses.
With over 15 years of experience in finance, Danielle has worked her way from an accounting firm intern to the co-founder of Kickstart Accounting. She understands how complex business finances can be and knows that entrepreneurs need more than just a bookkeeper. They need real financial analysis and support to get the confidence required to create the sustainable wealth they deserve. Danielle brings a unique perspective when it comes to providing business owners with a total package that relates to their finances. She has been a guest on multiple shows, and when she isn’t in her money mindset work, you can find her hiking or spending time with her family.
Connect with Danielle Hayden:
Website: Kickstart Accounting, Inc.
Instagram: @kickstartaccounting
Podcast: Business By The Books
Check out these episode highlights
02:24 – The Importance of Knowing Your Money Personality Type
Take the quiz here to identify your money personality type.
03:47 – Four Money Personality Types
- Free Spender: Makes quick spending decisions without analyzing the numbers. Their approach is spontaneous, with a belief that money will come back easily.
- Keeper: Always feels like there isn’t enough money and tends to save excessively, even when it might not be necessary.
- Perfectionist: Obsessively tracks every dollar, which can be exhausting and limits their ability to think strategically.
- Balance Seeker: Finds a middle ground, understanding when to spend and when to save, making them the most balanced in managing finances.
06:02 – Knowing Your Zone of Genius and Hiring Experts for the Rest
09:25 – Four Essential Team Members on Your Business Money Team
- Bookkeeper: The one responsible for ensuring accurate financial records. Without a bookkeeper, the other members of the team cannot perform their duties effectively.
- Tax Accountant: Typically responsible for tax preparation and planning. However, it’s crucial to note that tax accountants do not usually provide business advice or handle bookkeeping, so they should come after the bookkeeper.
- Chief Financial Officer (CFO)/Business Coach: This person helps the business grow by using the financial data to plan and budget for the future. The CFO can advise on hiring, investment, and other strategic decisions.
- Financial Advisor: Although not always an in-house role, the financial advisor looks at personal and business finances to help with retirement planning and overall financial health. However, like the others, they rely on accurate bookkeeping to do their job effectively.
Recommendation: Start with a bookkeeper to ensure accurate financial data.
12:10 – What Healthy Business Spending Looks Like
- Myth debunked: Cutting back on expenses isn’t always the solution
- Importance of investing in the business (marketing, payroll, systems)
- Suggested spending percentages for sustainable growth
8-10% in advertising & marketing
30-50% in payroll
8% in operating expenses
“We have to spend money to grow our business.” – Danielle Hayden
14:18 – Paying Yourself as a Business Owner
- The importance of separating business and personal finances
- Explanation of paying oneself through owner draws and handling taxes
75% of your profits can be taken as owner’s draw
25% should be reserved for taxes
Recommendation: Pay your taxes at the end of the year on net income.
17:14 – LLC vs. S-Corp for Tax Purposes and When to Consider Switching
20:00 – Female Business Owners on Money Talk
22:16 – Danielle’s Top Advice for Up-and-Coming Designers and New Business Owners
“You don’t need to do everything on your own; ask for help and tackle the hard things.” – Danielle Hayden
Next Steps
Grab your freebies:
- Furnishings Investment Guide
- Remodel Budget and Timeline Guide
- Your Roadmap to a Career in Interior Design
- 3 Things I Wish I had known when I Started my Career
Take a Quiz!
- Find Your Perfect Interior Design Style if you are curious about your design style
- Find Out What Type of Interior Designer You Should Be!
Join the Design Mentor to kickstart a successful career in interior design!
Check out the best books every interior designer should have here.
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Links Mentioned
Thanks for listening! I hope this helps you discover if interior design is the career for you. See you next week…