188. Let’s Talk About Profitable on Paper, Broke in the Bank

Send us Fan Mail (https://www.buzzsprout.com/2132732/fa...) You had your best month on record in July. Six weeks later you were awake at two in the morning wondering whether payroll would clear, and nothing went wrong in between. That is not a sign you are bad with money. It is a sign you have been reading the wrong number. In this episode Laura explains why profit and cash are two entirely different figures, why the interior design business creates a wider gap between them than almost any other industry, and what to do about it. She walks through the four forces that pull your account balance out of step with your actual profitability, from lead times and mismatched vendor terms to the costs that always arrive after the money does. Then two structural fixes: how to separate the money that was never yours in the first place, and how to take your design fee off the furniture schedule so it arrives when you actually do the work. Plus the one page, ninety day cash calendar that ends the middle of the night arithmetic for good. If you have ever felt rich in July and frightened in August, this one is for you. • Why your account balance measures where you are in a cycle, not how your business is doing • The two column exercise that separates profit from cash in about ten minutes • The four things that widen the gap in our industry: lead times, mismatched payment terms, costs that land late, and a design fee that trickles • The three account structure, and why your operating balance is meant to look smaller than you expect • How to restructure a deposit schedule so you stop financing your clients' furniture • The ninety day cash calendar, and the single number on it that matters most • Five things to do this week if the month is already tight The doors to the Profit Academy for Interior Designers are now open! https://www.theprofitacademyforinteri... Be sure to follow along on Instagram @thebusinessofbeautifulspaces + @thorntondesign to stay up to date on what we're talking about next week. If you love our podcast, please, please, please leave us a review. If you have any questions or topic ideas OR you wish to be a guest email us thebusinessofbeautifulspaces@gmail.com or find us on instagram @thebusinessofbeautifulspaces Laura Thornton is the  principle designer of Thornton Design Inc, located in Kleinburg, ON.  Since founding the company in 1999, Laura has been committed to creating a new kind of interior design experience for her clients. Thornton Design is an experienced team of creative talents, focused on curating beautiful residential and commercial spaces in the Toronto, Ontario area and beyond. Now sharing all the years of experience with other interior designers to create a world of collaboration and less competition.  The Business of Beautiful Spaces  I @thebusinessofbeautifulspaces Thornton Design                                      I @thorntondesign