Cash Flow Clarity: Understanding Profitability in Your Design Business

Running a design business isn’t just about beautiful spaces, it is also about building a business that pays you well, funds your growth, and doesn’t leave you stressed about what's in the bank.

One of the biggest blind spots for many interior designers? Cash flow vs. profitability. It’s easy to celebrate new projects and signed contracts, but if you’re not tracking what is actually coming in and going out of the business each month, profit can vanish faster than your favorite wallpaper goes out of stock. 

So, what’s the difference?

• Cash flow is about timing, when money actually enters or leaves your bank account.

• Profit is about what’s left over after all your expenses are paid.

You can have profitable projects on paper, but poor cash flow if payments are delayed, purchases are front-loaded, or you're not tracking how much of your “fee” is already spoken for.

To get clear on your cash flow:

• Know your monthly fixed costs (payroll, subscriptions, rent, etc.)

• Create a payment schedule that aligns with the phases of the project.

• Track deposits, payouts, and taxes in real time (Using a software program that already helps with this is half of the equation!)

• Don’t forget to factor in product orders and contractor payments when quoting.

When you have cash flow clarity, you can price with confidence, invest with intention, and scale sustainably without burnout.

Cash flow clarity isn’t just about staying afloat, it is about designing a business that supports your life, not the other way around. If you’re ready to take the guesswork out of your numbers, let's talk.