I know a lot of people have written similar posts this week but I also have taken some time lately to reflect on where our business has been over the past year, 2 years and 3 years and where it is headed going into our 4th year.
It surprises me how some things have changed dramatically since when we started and some of the challenges have remained the same (like how to stage in 13 degree weather?)
Looking back I think the biggest lesson I learned this year is how to say "No" to clients. (thank you Margaret Innis for your post on this) Recently I fired my first client. I had contracted with her to provide staging services and from the moment I began her project we ran into problem after problem. The client was late getting her contract to me, the home was not vacant or clean when we arrived to stage. She lied to me, was not prepared for the staging and then accused me of not providing the services she paid me for. Of course I did the best job I was able to do under the circumstances but it was not my job to be her therapist, her house cleaner and her cat sitter. I finally found the courage to tell her to work with someone else. Was I afraid that she would bad mouth me? Sure. But I was also proud of myself for finally sticking to my business policies.
This year we faced a lot of challenges. We have three clients that we have had to repossess or sue. Sometimes it is not worth the Attorney fee to chase someone down for $300 but it still burns me and I still want to look them in the eye and tell them that they should know better (what would their mom say?) I thought we invested a lot in inventory last year but this year we purchased twice the inventory than the year before. We still do not own furniture! We only use the best quality art, area rug and accents for staging and this was a huge investment. Once this inventory came back we then had to warehouse it and found ourselves renting 2 spaces which cost us nearly the same as our mortgage. In 2008 I am looking to purchase a space or a rental property so I can at least earn some equity!
This year we also accomplished a lot. We were featured in 7 magazines, a tv show and 2 radio shows! I was also able to delegate responsibility and find an installation team that is professional, reliable and wonderful to work with. I thank God everyday for them since I have had to fire 5 other people this year that either lied, stole or simply did not show up to work.
My goals for 2008 are to continue to provide top tier staging services in our local area and to support other stagers through continuing education seminars on growing successful businesses in their local area. One thing I learned from the round-tables is that we as stagers need to find a way to not only educate Realtors better but also to reach the consumer as well. I still believe that the future of the staging industry will come from its members and I am working on ways that consumers can find superior stagers regardless of the lack of national standards.
Needless to say it will be an interesting Real Estate Market this year. I am hopeful that home sellers and Realtors will realize the importance of staging and utilize our services even more in 2008.
What are your reflections on the past year and what are your business goals for 2008?
Great post Kate! I guess the further we get into staging the more it changes, but that's a good thing. We can always improve by what we learn along the way. We grow our businesses but there will always be the problem-clients we have to deal with. Not being in business one year yet, my goals are probably somewhat lower than yours, but plan on educating prospects who are thinking of staging. It's a big task but will take one step at a time. I have fired potential customers in the past at my other job in selling, and I agree, it does feel pretty good to stand up for your business policies.
I do not have my own furniture either but have accessories. Just to store the accessories is a lot. I will be building up my inventory house by house which will ultimately end up me renting a storage unit. I like your idea of the property investment for equity. It is my plan to work with a team of realtors to stage their listings, getting featured in magazines and who knows what else!
Growing RESA in my Chapter to at least 20 members is another one of my goals for 2008.
I wish you all the best in 2008 Kate...hey that rhymes!
Diane Concialdi DC Redesign
After reading your post, I guess I have had it pretty easy this year. I have been working with great homeowners and even better agents! My business is about 80% straight consulting. On a per hour basis, I have found this more profitable for me than vacant staging. My profits go straight to the bank rather than getting eaten up by inventory, office space, and rental units. I still do vacant stagings on a limited scale - about 6 houses at any given time.
My goals this year are to increase my speaking engagements, restructure my photo gallery, and give my storage room (in my basement) a much needed make over to maximize the space.
Happy Holidays, and much success to you in 2008!
Kate: Thank you for this very thought provoking and heartfelt post. It seems to me that you have had a phenomenal year, with lots of personal and professional growth.
Since we are dealing with a very large swath of the public, we will encounter some really nice people whom treat us as we would like/deserve to be treated, and we will run across some real stinkers. The goal is to learn to weed out the stinkers beforethey become a problem. If your "Spidey senses" are tingling, pay attention. There is a good chance that the person/situation that is making you feel tingly (not in a good way) has a different agenda than the one they are telling you and it may be in your best interest to pass on those jobs.
We just leased a warehouse space. It is very expensive here in Los Angeles, but buying something was out of the question, as commercial property is astronomical in my area. My long term goal would be to buy a large commercial space and sub-divide it so that I am sharing the load of paying for the building. With my new warehouse, I looked for a space with a high ceiling so I could add a mezzanine and more storage space. I could lease a smaller space and make it larger by adding that second floor. It is not cheap, but still cheaper than a larger space. I stock very little furniture in my inventory, but may start to add some pieces so I can do some less expensive jobs.
My goal is to grow my business through better marketing in my area (I do very little marketing), and to expand to other nearby areas that I currently don't serve. I have two great employees, both of which will be full time in January (one is currently part-time) and the longer they work for me, the more I am able to delegate to them.
I desperately need to re-do my website, and I hope it will be up and running in early January. I have good SEO, so having a more staging-centric site with definitely get me more work. I'm hoping that we won't be busy between Christmas and New Years Day, so I can concentrate on this.
All this to say that my goals for 2008 are to get my new website up and running and do a better job of marketing my company so that we can expand.
Hi Kate-
I have enjoyed your posts this year and always learn from them-thanks! As a staging newbie, marketing is always number one for growing my business. I actually made some good contacts by shameless self promotion at several holiday parties, but I plan to spend more dollars and time on this in 2008.
Love the photo of your boys!
Best Wishes! Kathy
Wonderful, wonderful post Kate. You should be incredibly proud of yourself...I sure am! If we were closer (or you were willing to fly in for our MN Roundtable) I would certainly buy you a drink and do a CHEERS!
Have to say we have many of the same aspirations for 2008. Shoot for the stars!
Ah... 2008 already. Seems I was just toasting to 2007, where did this year go? My year went to Staging about 60 homes, dealing with my son's newfiund diabetes, breaking up my business partnership, frantically answering my phone (and increasing my minutes because oy vey, my bill!) and re-acting, instead of being pro-active. So, for 2008 here goes!
Is this asking too much? LOL! It can only get better for us Stagers, the word is out!
Hi all,
Thanks for your kinds words and for sharing your goals.
Diane- I think your plans sound great and I agree that education is one of the most important things we can do to grow consumer awareness.
Kristina- I love that you do all consults! That is a great business model keep up the great work. Finding a niche that you can specialize in is very important.
Michelle- Many thanks for your advice about the Spidey sense. I have learned to trust it more and more and vow to use it more in 2008.
Kathy- Self promotion is not a bad thing! People cannot hire you if they do not know about you! Just yesterday I picked up a client at my son's Christmas pageant at school. The woman I sat next to is selling her home and I told her all about staging.
Beth- Thanks for your kinds words. I WOULD come to MN if the round-table was not in the Winter. I think you and I need to write a post about staging in the cold! Yikes!
Melissa- Many thanks. You should be proud of yourself! Your warehouse is my dream.
Karen- Wonderful goals. I am sorry to hear about your son. One thing that many do not realize is that most of us are working 2 full time jobs as MOMS and STAGERS. I am with you on the pricing. My new motto is "if you think you can get it cheaper go find it then, but you will not get the service I provide for that price." I may not get the job but at least I will save on headache meds J FYI- I pay $750 per month for storage space so $118 sounds good to me! I am seriously thinking I need to buy a place.
LeAnn- I am all about working smarter. Systems are a great idea. Finding the time to implement them is another thing all together.
Kate, you certainly got me to set back and think about 2007, which seemed like we were in a whirlwind.
Here were our 2007 high-lites
Where we want to go in 2008
Well, that's my 1 minute view of where we've been and where we're going. That was fun.
Great post, Kate. And... your boys are adorable!
My goals for 2008: Expand my business. Ideally, I'd like to grow it such that I have independent contractors in key suburbs outside of Atlanta. I'm also considering a mentoring program of some sort. Lots to think about, for sure. I get excited though just thinking about it. As soon as I can find the time, I'm going to make it happen. Watch out Atlanta! (smile).
Kathy
Hi Kate - I included this post in this week's Week in Review.
Merry Christmas!
Ann
Kate... just love the new pic ;) Your boys are just too cute.
I will, whole heartedly say.... that I WILL NOT LET A HURDLE STOP ME for this next year!!! That is right, I am jumping right over it and not looking back. It is all forward thinking from now on. For the betterment of Staging and for Staging as a profession.
You have been such a wonderful inspiration to myself and to others. I truly wish you the best this next year and for many years to come. You are one of our guiding lights.... light the way sista!
Kate & the kids - how cute.
My goals are to better organize my inventory and move it into a more central location & not have any stored in my livingroom!!!
To market, to market - reaching more Realtors (they are not buying into this "staging" stuff here yet )and continue with homeowner educational efforts i.e. the library, our county fair, women groups.
Join the Chamber of Commerce.
Kate..
I love starting the year off with resolutions and goals.......thanks for sharing your experiences and goals with us.
What really keeps me motivated is seeing the growth in the business from the year before. Having said this, there is still quite a bit of room to grow.
My first MAJOR goal is to be better organized..especially with my bookkeeping!
We changed some of our policies three-quarters through the year to head off difficulty with clients and "non-payer's". I have learned various business practices from a few people here on activerain, and decided to adopt a couple of them.
We were fortunate enough to only have one really crummy client. However, I did take away something positive from this situation.....I learned. Therefore, more policies in place! It could have been a lot worse financially.
In terms of marketing, I have used many forms of advertising...and am realizing what works, and what doesn't. Next year my marketing costs should be A LOT less :). Goals in this respect are similar to Kathleen ...reaching out to more Realtors.
Wishing everyone a healthy and prosperous 2008!
Julia