I suppose this actually applies to all business relationships in which there are two or more complementary figures and skills repertoires forming part of the value-creation chain, that being the need to have a basic understanding of the business side of things. In this particular case I’m talking about it from the perspective of an interior designer, simply because that hits closest to home and I’ve definitely come to learn that even interior designers who focus more on the creative side of things are required to have some business-side knowledge.
A realistic view of the bottom line
It would otherwise really be nice to only be left to focus on what you do best, which is let your creative juices flow and just handle the design side of things. Unfortunately there’s a budget involved and there’s a bottom line. You could very well be doing interior design as a labour of love, but ultimately you are indeed doing it with the view of making a profit at the end of the day.
So understanding the business side of things gives you a realistic view of what is required in order to make sure you walk away from each project having profited, regardless of issues such as supplies and materials causing an overrun on the budget, etc.
Understanding the cost-input versus value-output relationship (and how that affects profits)
This is perhaps just an extension of the discussed realistic view of the bottom line you’ll need to maintain, in that the application thereof comes down to your understanding of the cost-input and how that plays off against the value output, all of which ultimately affects your profits. So here’s how it is…
In interior design heaven, i.e. in an ideal world where you don’t have to consider the costs associated with the design and decoration job, you could simply spend hours and hours on end picking out the materials and items which are to form part of the completed design job. I wouldn’t need to tell you that certain things specifically go well with others, and if there was an unlimited budget to work with then it would simply be a matter of mixing and matching with complete creative freedom.
Where the reality starts kicking in however is when you consider practical matters to have to cater to, such as the fact that it’s much better to physically see and feel some of the materials to be deployed, which would mean you can’t just mix and match online – you have to spend some money on the fuel with which you’ll be driving up and down.
Then there are other matters to consider, business wise, such as the consideration of the fact that generally, the HOA Management Service Phoenix has to offer typically is of a higher standard than many other places, which directly affects after-service matters such as homeowners insurance premiums. You wouldn’t want your client to be worried that they have to pay higher premiums because the household goods they have disproportionately have more value, or anything of the sort, for example.
Your understanding of all these factors which form part of the business side of proceedings means that as part of the creative design process you always ensure that at the end of the project the client will be happy and you walk away with a profit.