Alright – so today we’ve got the honor of introducing you to Hannah Goldberg. We think you’ll enjoy our conversation, we’ve shared it below.
Alright, Hannah thanks for taking the time to share your stories and insights with us today. Let’s start with what makes profitability in your industry a challenge – what would you say is the biggest challenge?
Profitability is always key for a healthy small business, but in Interior Design what does it take to be a profitable firm? There are several hurdles in the way:
Firstly, there is no industry standard model for pricing. Do you bill hourly? Do you bill by flat fee? Do you price your services at a cost per square foot? Do you price your services at a percentage of build cost? Are you purchasing furniture for your clients? What are your furnishing margins? Each of these have major pros and cons. And a major con for the industry as a whole is clients comparing apples to oranges when reviewing designer proposals. What works for one designer might not be the right billing strategy for another; for instance, one designer might bill hourly at a higher rate, and then discount furnishings while another bills the entire project at a flat rate with a minimum furnishing purchase.
But, for me in particular I find another aspect a larger challenge to profitability – keeping a full pipeline. As an industry as a whole nearly 60% of projects of design projects are typically by referral or grassroots word of mouth advertising. It’s all about who you know, the service you provide, and getting clients to refer you to friends, family, and neighbors.
For my firm in particular, all but one of our projects in the last 4 years have been brought to us via referral. Which is a statistic that I am both proud of and scared of simultaneously. This means our design and project management services are well appreciated, that our expertise is respected, and that clients have enjoyed their experiences with us enough to refer us to friends and family. On the other hand, referral business is the least quantifiable, it is not an ad placement that I can quantify and analyze inquiries versus spend.
This makes financial planning challenging. How do I plan my budget out and goals for the year? How do I know when and who to hire to my team to meet the ebb and flow of projects and the different phases of projects. For instance, the design phase of a renovation is much more time and resource intensive than the project management phase. This means ensuring project starts are well timed to keep us busy, but not too busy, and not leave my staff with slow periods.
Hannah, love having you share your insights with us. Before we ask you more questions, maybe you can take a moment to introduce yourself to our readers who might have missed our earlier conversations?
I have had a love & passion for design since childhood – rearranging and redecorating my childhood bedroom almost monthly while growing up. I come to my design practice with an educational background in engineering from Lehigh University and a professional background in Interior Architecture. This experience results in a very analytical and organized process that helps me understand all the challenges each unique interior design project contains.
Hannah Charlotte Interiors provides Full Service Interior Design services for new build, renovation, and furnishing/decorating projects. We approach our design projects with the utmost attention to lifestyle and flow through space, ensuring that each space meets our clients unique needs.
I believe greatly in the important role that built environments around us play in our physical and mental health – and specifically the role good interior design can play in providing support for client’s lifestyle and design needs. I focus on bringing intentional, thoughtful, and layered designs to life with an emphasis on layering natural materials and textures.
While working as head of Interior Design at R2L Architects I had the privilege of working on projects not only around the country but also around the globe; and through this, I have honed the skill of adapting my design vocabulary to suit the needs of the client & project. I pride myself in our adaptability, using our skills and resources to elevate and execute our client’s desires and vision.
Can you open up about how you funded your business?
Fortunately for me – providing Interior Design services – has a relatively low barrier to entry when it comes to the needs of initial capital. However I ultimately rely on a lot of tools to provide the smoothest customer experience – and these costs add up.
In order to start the business, I provided contract services as a Senior Interior Designer for a luxury interior design company. This allowed me to control my hours, learn about the day to day operations of a luxury residential interior design firm, and I used the profits from my very first project signed to Hannah Charlotte Interiors to build up the resources necessary to really invest in my business; including but not limited to, a new laptop, drafting software, project management software, a professionally designed & hosted website, a storage unit & the beginnings of an interiors styling inventory.
Is there mission driving your creative journey?
Rooted in passion, as much as reliability, Hannah Charlotte Interiors is a boutique interior design firm with an emphasis on bespoke commercial and residential design projects. Our goal is to create timeless, layered, and beautifully curated spaces with the client’s tastes and lifestyle in mind.
In every project the goal is a space that is more personal than perfect, that strikes a balance between livable and beautiful, and is a carefully curated space that blends both functionality and aesthetics to meet our client’s needs.
Contact Info:
- Website: www.hannahcharlotteinteriors.com
- Instagram: https://www.instagram.com/hannahcharlotteinteriors/
- Facebook: https://www.facebook.com/HannahCharlotteInteriors
Image Credits
Image 1 – Jenn Verrier Photography Image 2 – Jenn Verrier Photography Image 3 – Rendering by Hannah Charlotte Interiors for R2L Architects Image 4 – Jennifer Howell Photography Image 5 – Jenn Verrier Photography Image 6 – Jenn Verrier Photography Image 7 – Jenn Verrier Photography Image 8 – Jenn Verrier Photography