1) No Strategic Vision
Many design businesses open their doors as quickly as the business cards are printed. Yet running a successful business requires a real plan. Does your business operate without a vision of where you want to be in five years? Do you function day to day by making decisions that have no strategic basis? I have seen many design businesses that function from moment to moment without having a plan. How can you make decisions when you do not have a road map to guide you? Have you ever considered what your strengths and limitations are? If so, have you thought how you might take advantage of your strengths and remedy your weaknesses? As the leader, do you measure your own leadership competencies? Have you ever considered a 360-degree feedback analysis? Are you willing to make behavioral changes in yourself in order to better the organization?
The consequence of No Strategic Vision is you operate your business without a road map and raise your odds of making poor decisions.
2) Uncooperative Teamwork
Whether your company is a one-person operation or has dozens of people on the payroll, your business must operate as a team. Your clients view all of the vendors, craftspeople and suppliers you send to your client’s home as part of your team. Have you created position and vendor alignments that spell out your vision and expectations? Does your team understand that they represent you when meeting your clients? Do your plans and ideas go unfulfilled because you are not communicating your strategic vision? Do you hire people because they are available, rather then find individuals that meet the roles that your team chart requires?
The consequence of Uncooperative Teamwork is your team doesn’t understand the vision of your business and sabotages your hard work.
3) Haphazard Marketing
How will you find clients? Have you established your positioning statement? Have you established a marketing strategy? By the way being an interior designer is not a marketing strategy. Do you throw money at advertising as if it magically encourages appointments? This is an ineffective attempt to generate leads. What ends up happening is that you pay an extraordinary amount for a lead. The most valued type of lead, the referral, is basically ignored or taken for granted. Have you implemented a word-of-mouth marketing system that will generate a reliable source of leads?
The consequence of Haphazard Marketing is without effective strategies you waste your resources and do not give your business enough leads to survive.
4) Amateur Selling
Selling without a plan or system leaves the designer working in a confused state. At times you may be selling on price and other times on value. Do you understand the discipline of psychographics or understanding the subtle reasons why consumers make buying decisions? Has your business established a position in the mind of the consumer that projects a clear value message? Do you use the Summary Letter and the Advocate Referral System that focuses on getting results?
The consequence of Amateur Selling is without powerful sales techniques, you have ineffective presentations and therefore you are poor at closing sales.
5) Poor Negotiation Skills
How do you negotiate? Do you understand the nuances of the negotiation process? Are you able to analyze correctly who the decision makers are? After establishing your business as value-based, are you able to receive your just reward? It all comes down to this, the bottom line. The final measure of success will depend on your margins. This is a complex business, and unless you understand that your business must work on certain margins, you will not succeed. Most businesses will price each job as to the urgency of the cash‑flow status and not understand the detrimental effects of a price cut.
The consequence of Poor Negotiation Skills is you fail to close sales or work on lower margins. This is the number one reason for business failure.
6) Faulty Client Fulfillment
Once the deposit is received and the order process is underway, so begins the task of fulfilling your promises. This is the critical area where most businesses falter. There is very little room for error in meeting the expectations of your clients. This is a challenging business and you will be constantly solving problems if your client fulfillment systems are faulty. Have you created and implemented battle tested systems that prevent mistakes?
The consequence of Faulty Client Fulfillment is without business systems you are always solving problems by not meeting your client’s expectations.
Fortunately there is a way to remedy these six fatal flaws. I have developed six coaching modules that address each flaw and offer practical solutions. Let’s get started and begin work on the six modules.
Neil Gordon is the owner of Decorating with Fabric. Decorating with Fabric proudly serves the New York Metro area’s Window Covering and Upholstery needs. Among our many clients are Architects and Interior Designers that work on Commercial or Residential projects. From Consultation to Fabrication to Installation, Decorating with Fabric has the staff, skill and experience to handle all types of projects. Visit our blog Draperies & Window Coverings to read more interesting articles @ http://www.dwfcontract.com/.