Interior Design Business Year-in-Review: What to Keep, Cut, and Change

As an interior designer, would you complete a project without first evaluating what feels balanced, what’s a little off, or what might need adjusting?

Of course not! That final assessment is everything. Why then do so many interior designers forget to assess their business in the same way? 

Here’s the thing about successful design businesses: they don’t just happen—they’re built, reviewed, and refined. Taking time to assess what’s working (and what’s not) isn’t a luxury—it’s necessary. It’s how you make sure your creativity and profits grow together.

If this feels overwhelming to you, I can assure you that, with the right processes in place, it’s not. Today, I’m sharing some tried-and-true strategies that have helped me adjust and grow my interior design business over time.

interior design by genevieve trousdale /Circa Genevieve ID

How to prepare for your interior design business audit

While you can audit your business at any time, the end of the year is often a good time to switch your focus to growing your business. For some designers, work will slow down during the holiday and pick back up in January. Of course, this is not true for everyone (some designers are incredibly busy with holiday decorations). If that’s the case for you, consider scheduling your business review during quieter periods, like May or late October.

Before diving into the details, start with a big-picture look at your business. Grab a notebook (or open a fresh doc) and take time to thoughtfully answer a few key questions:

🔑  Which projects felt the most creatively satisfying? Do you notice a common thread among them? (location, style, client’s personality, time on site…)

🔑  Which projects or clients drained your energy?

🔑  What services brought in the most profit?

🔑  What processes need to be tightened or updated before the new year?

🔑  Are your workflows efficient—or are you still relying on manual tasks that eat up your time?

🔑  What would make your business feel easier or more enjoyable in the next season?

🔑  Are your contractors, assistants, and vendors still the right fit?

🔑  Do you have clear boundaries around communication, revisions, and timelines?

🔑  What bottlenecks seem to appear over and over again—and how can you address them before next year?

🔑  Do you have a consistent way to attract your ideal clients (through email marketing, networking, or local personal connections)?

🔑  And finally, are you saying “yes” out of excitement or out of obligation?

Once you’ve reflected on your answers, you’ll have a clearer picture of where your business truly stands—and where you want it to go next. Now, it’s time to get strategic and evaluate your business by category.

Financial audit: what’s really driving profit

interior design by genevieve trousdale /Circa Genevieve ID

If you’re like a lot of creative business owners, your eyes likely glaze over when anyone mentions cash flow, margins, or profit.

I get it. Finances aren’t everyone’s cup of tea. But as business owners, we have to know where our money is being made—and where it’s quietly slipping away. And it’s not that complicated (I promise). Here’s how I would begin a financial audit:

🔑  Review your revenue sources

Which services brought in the most profit this year? Some designers prefer to focus on one niche, like full-service residential design. Others prefer offering a mix, including new construction design, design consultations, or virtual design services. Look over what you offer to see where you were most successful.

Start by pulling a report from your billing or accounting software to see a breakdown of your income by project or service type.

If you work with multiple clients at once, sort your data by category—such as full-service design, consultations, e-design, or new construction—to spot which areas were most profitable. You can also compare the number of hours worked versus revenue earned to see which services give you the best return on your time.

Once you have the numbers, take a step back and look for patterns. Did one type of project consistently bring in more income or feel more sustainable? Use that insight to help shape your goals moving forward.

🔑  Look at your project minimums

Are you actually making a profit after you factor in all the hours of back-and-forth emails, sourcing, admin work, project revisions, etc? Make sure your lowest-paying projects don’t drain your time, energy, or profit.

That said, be flexible—especially during slower seasons or tougher economic times. A strict project minimum can sometimes push away potential loyal (and repeat) customers. While I understand why many designers set minimums, personally, I’ve never set one. If I had, I would’ve missed out on some incredible long-term relationships—and even one of my biggest projects that I recently finished in Utah.

The goal is balance: know your value, but stay open to opportunities that feel aligned and have the potential to grow into something more.

🔑  Evaluate your pricing

Take an honest look at your pricing over the past year. Did you raise your rates to reflect your experience, demand, and inflation—or did you quietly absorb extra costs without realizing it?

For example, maybe you raised your employee or contractor rates but didn’t adjust your own. Sometimes that’s a short-term sacrifice we make to keep things running smoothly—but other times, it’s a sign to review your numbers. You may be able to trim expenses or slightly raise prices so everyone, including you, benefits.

Hidden costs also have a way of sneaking in. Those hours spent managing vendors, replying to client emails, or handling small admin tasks might not seem like much, but they add up quickly. Remember—you’re not just charging for your time, but for the experience and expertise you bring to every project.

And if you’re finding that clients cancel last-minute more often than you’d like, consider adding a cancellation policy or fee to your contract. A few small changes like these can help protect your time and ensure your business stays profitable and sustainable.

🔑  Check your expenses

Take a look at your business expenses over the last year. Are you paying for memberships, magazine subscriptions, or software that isn’t pulling its weight or that you barely use? Trim what’s not benefiting your return or professional development and reinvest those dollars into something more beneficial.

Client audit: who energized you (and who drained you)?

interior design by genevieve trousdale /Circa Genevieve ID

Not every client—or project—is the right fit, and that’s okay. What matters is recognizing who energized you and who left you feeling drained, so you can be intentional about who you say “yes” to moving forward.

Start by answering a few questions about previous clients:

🔑 How was their communication? Was it clear, responsive, and respectful?

🔑 Were their values, goals, and style aligned with my business?

🔑 Was the project worth the time and energy I spent?

🔑 Did I actually like working with them? Or did I dread interacting with them?

🔑 Were they satisfied (and voiced their gratitude), and did I feel proud of the work I created for them?

Pro tip: You can filter out most misfit clients right from your inquiry form or discovery call. Pay attention to the clues—great clients usually know the problem they want solved, even if they’re not sure how to get there. If someone’s vague, constantly changing direction, or expecting you to “just know,” that’s a red flag.

Once you’re clear on who your ideal clients are, saying “no” to the wrong ones becomes a whole lot easier.

Creative audit: what work still feels like you

interior design by genevieve trousdale /Circa Genevieve ID

When was the last time you took a step back and asked yourself, “Does my work still reflect who I am (or want to be) as a designer?”

As your business grows, your portfolio will naturally become a mix of old favorites, client requests, and projects that no longer feel like “you.” It happens to all of us. That’s why it’s so important to take a step back and view your portfolio from a fresh perspective.

Start here: review your projects and note which ones still make you proud—those that reflect your current taste, process, and creative point of view. These are the pieces that deserve the spotlight.

Then, archive or rotate out the projects that no longer align with your vision or brand aesthetic.

If this feels difficult, remind yourself—you’re not erasing your story. You’re refining it. You’re curating a collection that clearly communicates your style, so your dream clients recognize it instantly.

Operational audit: tighten, streamline, simplify

interior design by genevieve trousdale /Circa Genevieve ID

And last, but certainly not least, you need to audit your business systems and processes.

For many designers, this process will be similar to the financial audit—a little uninspiring. I get it, processes, workflows, and tech tools don’t usually spark creative joy. But here’s the truth: without them, your business wouldn’t run. And when your systems are efficient, everything else feels lighter.

Here’s how I would do a quick review of your business operations:

🔑 Evaluate your systems

Systems, processes, and workflows play a big role in the efficiency of your business. Take a look at the workflows you’ve already set up (like onboarding, billing, or automatic emails). Are they smooth and consistent, or do they feel clunky and time-consuming?

A small change I made recently—one that’s had a big impact on my mental noise—was setting up a Calendly link for vendor presentations. I used to get a constant stream of emails from reps asking when would be a good time to show their new lines, which always led to that dreaded back-and-forth of comparing calendars. Now, I just send them my link and let them book a time during the blocks I’ve already set aside. It’s a big time saver and has opened space for mental clarity.

🔑 Review your team dynamics

Are the people you regularly work with positively impacting your business? These are contractors, assistants, social media, freelance draftsmen, bookkeepers, etc. The right people push your business forward. The wrong ones create bottlenecks, anxiety, and are consistently hard to work with.

🔑 Look at your vendor relationships

Are the vendors you work with dependable, communicative, and consistently producing quality work? If not, it’s probably time to look for vendors that align with your standards and make you shine as a designer.

If you’re struggling to find the right vendors, check out our blog on how to avoid poor-quality vendors…plus get strategies for finding vendors that will consistently show up for you and your business.

Take your interior design business to a new level 

More than anything, I want you to be able to move forward with clarity and confidence about where your business is headed. You’ve done the reflection, you’ve identified what’s working (and what’s not)—now it’s time to put it all into action.

Your next move is to schedule a dedicated “CEO Day.” Clear your calendar, silence notifications, and create an environment that sparks creativity. Maybe that means posting up at your favorite coffee shop, or curling up on the couch with your laptop and your favorite drink.

Use this day to review your notes, evaluate your business honestly, and map out your plan for the next year. Your business will thank you!

Frequently Asked Questions

How can I make my design business more profitable?
Start by reviewing your service pricing, project minimums, and hidden costs. Then, focus on the clients and projects that energize you most—those are often the ones that bring in the highest value and best referrals.

What tools help streamline interior design businesses?
Look for project management and communication tools that cut down on repetitive tasks—think automated invoicing, expert-led templates and guides, or client portals. The right tools can free up hours every week for creative work. I personally use Asana as my lifeline to sanity!

How do I know if my clients are the right fit?
Pay attention to communication, expectations, and values. If a client respects your process, collaborates with trust, and shares your design goals, you’ll likely enjoy the project—and the results will show it.

Where can I access resources that will help enrich my interior design business?
Join the Circaphiles community! You’ll get access to industry insights, vetted resources, and expert-led education to help your design business thrive.