Are you nervous about the tariffs? If so, you’re in good company. The entire business world has watched the stock market react negatively to the policies as well as to the low employment numbers. The U.S. is experiencing a different level of volatility and uncertainty than most of us know how to navigate.

This is the time to rely on conservative financial practices, with a sprinkling of cautious optimism. These two ideas may seem to conflict, but during uncertain times, bold entrepreneurs who carefully analyze market conditions and the competitive landscape and invest wisely are the ones who will advance their businesses.

For example, I know of multiple interior designers who are ready to sell the businesses they’ve built that are profitable and growing. These firms have systems and leadership teams in place that allow the founder to step away and potentially pocket a healthy return for their years of hard work.

Here’s an exercise to test your business readiness. Be truthful with yourself. If your score is less than 80, you have some work to do.

THE ASSESSMENT
On a scale of 0 to 5, with 0 being “not applicable” to 5 being mostly true, rate your level of preparation:

1. You market when you are the busiest so your pipeline stays full. In some cases, the most prepared designers have waiting lists. (Even today, we’re seeing some of our top clients growing their topline revenue/sales by as much as $1 million, and their net profit is in the healthy 20 to 25 percent range.)
2. You have an annual budget and adhere to it.
3. You minimize unnecessary expenses, such as software licenses that aren’t being used, or travel that isn’t related to generating revenue.
4. You focus on profitability and ask for what you are worth. You aren’t shy about marking up your products and charging for your services.
5. You prepare for contingencies such as project cancellations or delays. You continuously monitor project financials and spend conservatively.
6. You project cash flow so you aren’t surprised if a pipeline drops off in the months ahead.
7. You maintain cash reserves (in a money market or savings account) to last at least six months, if not a year.
8. You only draw a maximum of 50 percent of the firm’s net profit for personal use. You set the rest of the net profit aside for taxes and reserves.
9. You continue to invest in marketing.
10. You invest in professional development for yourself and your team, because the most professional firms are the ones that survive ups and downs of the economy and political climate.
11. You purchase from fewer vendors and become more important to the ones that give the best service and produce the best-quality goods.
12. You negotiate to get better pricing from vendors and charge a higher markup on these products to increase your profit.
13. You choose custom products from the U.S. over items that clients can shop that are made overseas. (This is especially important with the tariff situation causing pricing volatility and international supply chain disruptions.)
14. You have documented processes and procedures in place to automate and systematize your business, which minimizes mistakes and maximizes satisfaction among your team and your clients.
15. You have a well-written contract that you use without fail. You review it with your clients to ensure they understand what they are signing.
16. You focus on relationship building instead of transactional sales, because the former is the true currency of a successful business.
17. You focus on building a strong culture within your firm, because happy “internal clients” (that’s your team) leads to happy external clients.
18. You focus on excellent client service, because that leads to referrals.
19. You surprise clients with your level of business acumen and attention to detail.
20. You and your team are excellent communicators. You set expectations well and communicate often and in the style that they prefer.

ANALYZING YOUR SCORE

• 90–100: Great job! You’re a rock star.
• 80–89: You have planned carefully. Work on the items that you graded 4 or lower.
• 79 or below: You have some work to do. Get help from an advisor or coach.

Just remember that you’re in business to make money, to provide for your family and yourself, and to serve your clients. And please don’t apologize for being focused on running a healthy company. It’s your responsibility to yourself and your stakeholders to continuously grow and improve.

For more information on the state of the design industry today and how to position yourself for success, download the 2024 Interior Design Business Survey report, which is produced by Pearl Collective, Interior Talent and Business of Home.

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Gail Doby is co-founder of Pearl Collective (formerly Gail Doby Coaching & Consulting), an interior design business consultancy that helps designers, architects and other creatives increase their profitability. Doby ran her own design firm in Denver for nearly 20 years and has a degree in finance and banking. Since 2008, she has been helping designers scale their businesses profitably and reach financial freedom. As a coach, mentor and business transformation specialist, she shares innovative ways to overcome the roadblocks, challenges and detours creative entrepreneurs face. She is also the bestselling author of Business Breakthrough: Your Creative Value Blueprint to Get Paid What You’re Worth. Her goal is to empower design industry clients to differentiate themselves, drive measurable results, achieve business projections, and create personal satisfaction through game-changing strategies and business practices.