Creating Design Success

Counter to current economic indicators showing that this is the worst time in decades to be a home builder, Ft. Worth, Texas, builder Don Ferrier is seeing swelling demand for his high-performance houses. So despite the challenges the design community is facing, green design might be the answer to help turn the corners in this marketplace.

“We’ve had three times more design clients this year–in a down economy–than we have seen before,” the owner of Ferrier Custom Homes told attendees today at the Ecobuild Fall Conference in Washington, D.C.

Ferrier attributed some of his company’s success to soaring interest in eco-friendly homes: “Green is hot,” he said.

Environment-focused stories are in demand by local and national media and Ferrier said his company has capitalized on this. “High-performance homes are high-publicity projects,” he said. Stories about his award-winning projects have appeared in Consumer Reports, O at Home magazine, and The Dallas Morning News, and on NBC Nightly News.

“Our homes are doing our marketing for us,” he said. “We couldn’t pay for that type of publicity.”

His company has received even more notoriety by earning the Energy Value Housing Award five times and winning the NAHB National Green Building Award in 2007. He urged attendees to enter their projects in similar competitions.

But the true measure of a builder’s success is happy homeowners, and Ferrier said he works with clients to strike a balance between their hopes for a sustainable, energy-efficient home and the realities of their budget. “Our challenge in any high-performance project is bringing the two together.”

Instructing clients to think in terms of LEED for Homes’ “shades of green” scale, Ferrier urges them to choose the level of sustainability that will best fit their lifestyle and budget.

The demand for energy-efficient homes is driven by consumers, not builders, said Ferrier. For example, he is a big fan of insulating concrete forms (ICFs), a building practice that provides higher R-values and lower air infiltration rates than typical wood-frame construction. “But there’s a learning curve with them, so many builders resist learning about them,” he said.

It’s only when clients demand this type of technology for their homes that builders get on the bandwagon. “I’ve seen a lot of this driven by clients,” said Ferrier, who has been building green homes since 1982.

The first of the new year is not so far off and its time to make plans on building a firm foundation for your design firm. You can do that by taking a day off from work and plotting and scheming about the future. Yes…take a day and invest in your future. Many firms, small and large use the process of strategic planning… and thru discussions you might have with staff, clients or other consultants identifies potential pockets of business and develops a plan to go after them. In strategic planning(SP), there is one very important component to the process that every designer or principle should do,…even if one knows nothing about how to do a strategic plan. Its called the SWOT Analysis.

SWOT Analysis means putting together a short, tight list of your (S)trentghs, (W)eaknesses, (O)pportunities and (T)hreats while can provide a foundation to plan how to grow your business…even in this weak economy. I learned much about strategic planning from time as an ASID volunteer. And it is definitely worth the effort because taking that day off, away from calls from Clients + visits from reps can provide you with an objective view of your business and how to survive successfully in a challenging marketplace. Strategic planning,…especially the SWOT analysis will permit you to focus on what’s important, what’s urgent and turn away those things that are waste of time and effort.

Next week, like clock work, all of us at Design Collective / Design Success will turn off the cell phones, close and lock the door and build our foundation for 2009. And from that time together, we will hone our vision of our business future. I view it as an investment and not a cost. I believe in the process as it has helped us to look beyond the challenges of today. And thru my workshops and one-on-one consulting with other designers, I have seen the benefits that SP provides, especially small firms who often don’t have the dollars or staff to execute a BIG plan.

To learn more about the Strategic Planning process, CLICK HERE.

In these challenging times, it seems that every one is getting a handout.  Wall Street and Automotive Manufacturers are standing in line with the credit providers like Citibank.  But let’s not forget that housing is an important component to the culture and economic viability of our nation. But there is a plan in the works at the congressional level that would help builders, contractors, designers and architect to weather the storm.

And in a letter from one of our lighting sources indicated the important action those in Washington needs to take.   “No government action would have farther reaching economic recovery impact than an effective stimulus plan aimed at the housing market.  The Fix Housing First proposed plan is proven, cost effective, and could make a major difference in getting our whole economy turned around.  We urge Congress to take action on this proposal immediately”, said Generation Brands CEO, Tracy Bilbrough.

In these 30 days after the national president election, the economy remains crippled by the greed, ignorance and stupidity of many facets of the U.S. society…. including slick-fast speculators, builders + developers intent on throwing up anything that would sell, Wall Street hot shots, the Bush administration and those that would rather import of goods from such places like China than support the American economic foundations locally. I could go on and on and include the price of fuel.  But the point is this: there is no one cause or factor.  So this is nothing new. So what is New??? 

What is new is that property sales in South Florida, one of the hardest hit in the country actually had a 5% increase last month… perhaps a sign that prices have gotten low enough to stimulate sales.  With a new President in office in less than 70 days, what Obama does now - before he takes office - will help him hit the ground running on January 20.  But as we look to the future with great anticipation for “change” this will help to change the attitudes of the American public, providing many of us with hope despite lower investment values.   Lower fuel prices will help stimulate the economy as the grass roots lever but we should not forget that we need to make energy independence a top national priority.  And finally, it may be the “greening” of American that will also give the economy a boost.  Green and sustainable approaches to architecture and interior design can help create better indoor air quality, reduce waste but just as important, use our natural resources more responsibly.  

I don’t know about you…. but I have hope that we can move forward into 2009 with a aggressive and positive mentality to take back our economy from the slick politicians and Wall Street idiots.  Just my opinion.  I could be wrong.

Many design organizations are feeling the downturn in the economy these days as much as many designers and small design firms. The word is that some of the groups will actually see reduced revenue from members who are not able to renew ( or choose able to renew because of cash flow.) But being a part of an organization is still important as they are a great resource of information. One such group is AIA. They have devoted a special page in their website that helps members and non-members navigate these difficult times. Their page offers suggestions from experts, information about survival, podcasts and such as well as links that provide a number of resources for marketing in a down economy.

Go HERE to check what AIA has to say to the design community and to its members, offering some self help suggestions.

The New York Times reported that a number of small-business experts are suggesting that NOW may be the perfect time to increase your marketing budget — and even your prices.” Even though the economic times are tough, its no time to stop marketing. If you do that, you might as well close up shop and stay home.
The article makes the case for growing your practice. “If your competition is busy nursing their recessionary wounds, then you should become aggressive in marketing yourself and your products,’ argues Morebusiness.com, a Web site that describes itself as a ‘one-stop resource Web site for entrepreneurs.’” By “increasing spending when your competitors are cutting back on theirs, you will have a chance to increase market share and be much better positioned to be profitable when the downturn ends.” This is one of the best positions to be in. Polish your Brand and get it out to the marketplace.
To learn even more, CLICK HERE to check out MoreBusiness.com

At the DesignSuccess Conference held this week in West Palm Beach, the opening presentation offered the best ten strategies to make sure that your design firm will survive and succeed despite these troubling times. What I can say is that there is still opportunity but you have to plan for it. Even with the Presidential Elections over, there will be difficulty in dealing with such issues as finding your next project and client. But here are the ten things you can do now to help ensure that you are well positioned when this economic times return…sometime in the second quarter of 2009.
(1) Optimize This Down Time
Use this time to sharpen the saw. Slow times do not last forever so make the most of them by focusing on tasks that you tend to put aside when times were good. Now is the time to train and educate you and your firm. Build up your circle of vendors, contractors and workrooms. Upgrade your procedures to make your firm run smoothly. Forget about today…. and trust in tomorrow.
(2) Plot Your New Market Position
Make sure you know your niche. You need to focus your planning on developing your specialty with unique services that will attract new clients while retaining the existing ones. Ask yourself “What makes your work so unique or special? What keeps clients coming back? What describes your most successful projects? And then position your firm to showcase those things that make you special
(3) Read, Learn and Discover Emerging Trends
This is obvious. Sustainable or green design hasn’t even hit the tipping point. But it is more than a business tactic… its a practice and philosophy that starts internally and grows out and will influence your design. Consider the aging baby boomer and consider how your design approach will help them remain independent in their homes for a life time of safety and security.
(4) Re-Connect With Your Existing Clients
The clients you have satisfied will be your first line of defense in these times. They already know that you are good at what you do and you’ll spend fewer resources to win them back compared to new clients that don’t know who you are or what you offer. Get in touch and ask “How can I help you create more value in your real estate investment?”
(5) Make Yourself Indispensable
In today’s market, clients are looking for people that can help them make proper decisions when it comes to the design of their work and home environments. Successful Design Firms are tapped over and over again because they help their clients make the design process easier and effective. Rather than sell just one service or type of product, become an important resource to them. That kind of approach makes for great referrals and even more loyal clients.
(6) Have Great Cash Flow
In order to survive, you need to do whatever you can to keep the cash flowing in and out of the business. Forget about profit margins for now. Cash is the life blood and it doesn’t matter how rich or poor its quality…. its about flowing in at all times. So bill clients more frequently. Get bigger deposits. Ask your vendors for better terms or better discounts. Take on the small jobs you probably turned away when things were booming. Remember having a fluid cash position is king.
(7) Cast A Wider Net
Expand your services to reach new clients. Renovation and remodeling will lead the upswing in the economy more so than new construction. Offer complimentary services or extra add-on features that bring more value… so that when you discover new clients, they can easily compare your firm to another. Look for a different tribe of clients than the ones you have been tapping into before.
(8) Get Better At What You Do A Lot Of
Improve your efficiency. Make a list of the consistent things your firm does in its day to day activities and ask yourselves how you can make more out of the work. Efficiency will lead to higher profits when the good times return.
(9) Build a New Blue Ocean To Grow Your Business
Read this book: Blue Ocean Strategy… a great book to help you see what other businesses have done to create their own unique playing field and make the rest of the competition irrelevant. Example: Fed-Ex built a new blue ocean and made the U.S. Postal Service seem like a distant second cousin. The USPS has not even been able to catch up to Fed-Ex even though they offer similar services. Imagine if the USPS was the first to offer Next Day Service. What can you do to make your competition seem like a second or third cousin, twice removed?
(10) Think Only About The Future
You can’t change anything about what happened yesterday. And you can’t do much about what happens today. But you can influence tomorrow. So begin today and think about where you want to be, how you want to do business and who you want to do business with next year. The future holds the greatest opportunity. One of the favorite definitions of insanity is: Doing the same thing tomorrow that you did today and expect that you will get different results. Change is the only constant and if you plan to make the changes in how your business will be operated, the kind of clients you want, it starts with thinking about the future.

If you have other successful techniques, be sure to comment and let the others know what you have accomplished during this down economy. This is a time we all need to flock together and share our passion and our strategies that will raise the boats for everyone in these troubled waters.

The DesignSuccess Conference at the Palm Beach County Convention Center in West Palm Beach, FL concluded late Monday with lower than expected attendance numbers but by all accounts the content and networking received an A+ especially considering today’s economy.

Of particular success was the panel discussion featuring 6 leading design professionals from a variety of disciplines including Shelley Siegel, FASID, Mary Jane Grigsby, FASID, Juli Catlin, FASID, Susan Morgan, ASID, Nancy Bredemeyer, ASID, and Douglas Feldman, ASID, all successful designers in their own right but dedicated volunteers to the profession as well. “We so appreciate the time they took to be a part of our conference and to share their wisdom and knowledge,” stated Michael Thomas, the DesignSuccess Conference owner. The panelists discussed topics such as interior design licensing, the “business” of design, education and the future of the profession. This session was video taped and is expected to be available during the first quarter of 2009 as an educational event.

The Reviews Are In. One attendee was very enthusiastic about the courses offered at the Conference and said, ” This is just the kind of learning event that everyone can put to use in our businesses right now. We need more honest straight-forward talk.” In a follow-up email from another participant who came from Key Largo, a designer named Gail wrote, “I want to thank you for doing this conference. I especially appreciated the tips you offered to help me survive in the economy. When are you doing this again?”

Well Gail, glad that you asked. Look for the announcements for the next DesignSuccess Conference in the weeks ahead to be held at the end of February, 2009. It will be a mixture of workshops on design, business marketing and development courses, offerings of required CEUs for those who still need to take a few before the deadline, and one important keynote speaker.

If you have feedback on this Event, post a comment let us know what you thought.

Here is the latest update on the DesignSuccess Conference.

On Monday, November 3rd, the kick off presentation will be one we’ve added by request of designers and retailers who have been in this workshop before. Its called Ten Techniques for Survival. In this one hour class, I’ll review the ten top things every designer needs to know about the economy and how to survive successfully. It starts at 9 am at the Palm Beach County Convention Center and the cost of the class is $29.00…. a great investment in your business future.

Following that will be the much anticipated two-hour panel discussion on the future of the interior design profession. Participating in the panel will be 6 leading interior designers and educators who will discuss topics such as licensing, green design, compensation and fees and what the future holds for those who are just entering the profession. This is a benefit for IDAF, the Florida coalition that helps protect the ID practice act here in Florida. The cost is $59.00 and you’ll walk away with some interesting insights on the profession.

After lunch, Juli Catlin, FASID will offer a two hour IDCEC approved workshop called “Leading Your Firm To Profit.” Even if you don’t need the CEU credits for renewal of your license, you’ll discover how to build your business and still maintain a personal life. Juli is an accomplished speaker, professional interior designer and a past national president of ASID. The cost is $129.00

And at the end of the conference day, one more class to help you build a strong business. The topic is “ethics” and you will learn how to maintain a standard of ethics in all your business dealings with clients and vendors. “Ethics and All That Jazz is a one hour class that is IDCEC approved and seats are still available. The cost of the workshop is $49.00 and includes video interviews with interior designers and a well known attorney who is legal counsel for ASID. This workshop received a 4.8 out of a 5 rating during its debut in San Francisco at the ASID Interiors Conference for its content and presentation. “It made me think twice about Ethics and it was an entertaining educational opportunity that was unexpected.”

All of these classes are available individually or with a one day pass for just $199.00 with our guarantee that it will be money and time well invested in your future. To register for the classes or for more informaion, just contact Monty at (561) 748-4849, or email him : monty@designsuccess.org. Walk-ups are available on the day of the conference, space permitting. But don’t delay. Let your future begin on Monday.

In just a few days, the DesignSuccess Conference will debut on Monday, November 3, 2008 at the Palm Beach County Convention Center.  This one day event will present the important topics, techniques and solutions to help your design business survive in these challenging times.  Classes, lectures and workshops include
• How to develop a publicity plan for your business to ensure you stay “out front” of the competition;
• A panel discussion featuring six leading interior designers who will address licensing, compensation, green design and the next big trend, the baby boomers;  
• And a great one hour presentation on ethics and how to make sure you stay on the right side of sound business practices.  

In these challenging times, the DesignSuccess Conference will offer one thing:  it will recharge your passion for the design profession and give you some tools and techniques in which to help survive in a tough economic environments. The standard one day price of the pass is $249. but by pre-registering online now, you can save $50.00.  All of this for just $199.00.

The Conference is in association with the Palm Beach Furniture and Design Expo being held at the Center on Sunday, Monday and Tuesday,…featuring national and local vendors “to the trade” only with 100 booths featuring furnishings, fixtures, accessories, design services, floorcoverings and many others. With the cost of travel, regional shows provide the best value for interior designers, decorators, furniture retailers and design business owners.

To learn more about the conference, go HERE to register.  Online registration ends on October 30… so sign up now.