Designed for the Creative Mind™

Are your prospective clients taking longer to sign contracts? Are projects stretching across years instead of months? Are clients questioning purchases, breaking projects into phases, or running your designs through AI before making decisions?
In this episode of Business Behind the Design, Michelle Lynne is joined by Ruth Ann Jansen, Melissa Lee, and Erika Bonnell for an honest conversation about the realities interior designers are facing right now.
The panel discusses how shifting client behavior, economic uncertainty, AI, and increased competition are changing the design industry—and the strategies successful firms are using to protect their time, maintain profitability, and continue delivering exceptional client experiences.
From contract clauses and project pause fees to vendor relationships, luxury client experiences, and the growing importance of human connection in an AI-driven world, this conversation offers practical insights for designers looking to navigate today's market with confidence.
 
In This Episode, We Discuss:
Why clients are taking longer to make decisions than ever before

The impact of AI on the interior design industry

How designers are protecting themselves from stalled projects

Contract clauses every firm should consider

Why your design fee must stand on its own—even if furnishings never happen

The risks of relying on furniture margins to make a project profitable

How to structure fees for long-term custom home projects

The growing appeal of procurement support and outsourcing

Why relationships still matter more than technology

How luxury firms are elevating the client experience

Building stronger relationships with vendors, builders, and trades

Why some firms are becoming more selective about the projects they accept

The future of AI and interior design

 
Key Takeaways
Clients Are More Analytical Than Ever
Designers across the industry are seeing clients spend more time researching, comparing options, and evaluating investments before committing. Economic uncertainty, increased competition, and access to AI tools are all contributing factors.
Protect Your Time with Clear Boundaries
Several panelists share how they're implementing project pause clauses, restart fees, contract expiration dates, and payment milestones to prevent projects from lingering indefinitely.
Design Fees Should Be Profitable on Their Own
One of the biggest mistakes newer designers make is reducing design fees in anticipation of earning profit through furnishings. The panel emphasizes the importance of pricing every service as a standalone offering.
AI Can't Replace Relationships
While AI may influence how clients research designers and products, the group agrees that successful projects still depend on expertise, experience, vendor relationships, and human connection.
The Client Experience Is Becoming a Competitive Advantage
Whether it's personalized gifts, thoughtful touchpoints, or simply understanding what matters most to clients, creating memorable experiences continues to set premium firms apart.
Go Deep, Not Wide
When it comes to vendors and product partners, building stronger relationships with fewer, carefully selected partners often creates better outcomes than constantly chasing new sources.


Connect with Michelle
You can check out our designer resources on The Design Bakehouse website or follow her over on IG @byMichelleLynne

Meet the Guests
Ruth Ann Jansen
President of The Dove Agency, helping interior designers streamline operations and scale successfully. IG: @thedoveagency
Melissa Lee
Founder of New South Home, known for creating elevated, highly personalized client experiences while delivering beautifully designed homes. IG: @newsouthhome
Erika Bonnell
Founder of Erika Bonnell Interiors, specializing in luxury residential interiors and operational systems that keep projects moving efficiently. IG: erikabonnellinteriors

What if the experience you think makes you an outsider in the design industry is actually your greatest advantage?
In this episode of Designed for the Creative Mind, Michelle Lynne sits down with interior designer Katie Rainey to discuss her journey from Doctor of Physical Therapy to owner of a thriving interior design firm specializing in waterfront and lifestyle-driven homes.
Katies design philosophy is that beauty and function are necessities, not luxuries.  With a Doctorate in Physical Therapy and a background in human movement, she crafts spaces that are both beautiful and intuitively designed for real life. 
She partners with busy families and professionals seeking solace in nature - whether by the water in Annapolis or in the mountains of New Hampshire - guiding them through the intricacies of a renovation or a new build.  With deep construction knowledge, she collaborates closely with builders and architects to ensure seamless execution from concept to completion. 
As part of a military family, Katie has lived across the U.S. and in Europe.  She draws inspiration for her designs from this global design perspective, having lived in diverse landscapes.
Katie shares how she initially hid her medical background, believing it had little relevance to design, only to discover that her expertise in movement, ergonomics, and human behavior became one of her strongest differentiators. From designing custom solutions that improve clients' daily lives to building a business rooted in confidence, process, and professionalism, Katie offers valuable lessons for designers at every stage of business.
The conversation also explores networking, pricing, client communication, boundaries, and the mindset shifts that helped Katie transition from treating design as a passion to running it as a profitable business.
Whether you're transitioning from another career, struggling to communicate your value, or looking for encouragement to own your unique story, this episode is packed with practical wisdom and inspiration.
In This Episode, We Discuss:
Katie's transition from physical therapy to interior design

Why your previous career can become your biggest business advantage

Using ergonomics and human movement to create more functional homes

How Katie found her unique positioning in the design industry

The mindset shift from hobbyist to business owner

Learning to separate emotion from sales conversations

The "Pass the Salt" approach to discussing money with clients

Why clear processes create better client experiences

Educating clients through deliverables and expectations

The importance of boundaries and scope management

Networking strategies that helped Katie build a business in a brand-new market

How confidence and consistency lead to stronger business growth

Balancing motherhood, business ownership, and personal fulfillment

Key Takeaways
Your Past Experience Is Part of Your Expertise
Katie spent years downplaying her background as a physical therapist before realizing it gave her a unique perspective that directly benefits her clients. The skills, knowledge, and experiences from previous careers often become the very thing that sets designers apart.
Design Is More Than Making Things Beautiful
A successful design must function for the people who live in it. Katie's understanding of ergonomics and movement helps her create spaces that support her clients' lifestyles while remaining beautiful.
Confidence Comes from Process
One of Katie's biggest business breakthroughs came from developing a clear process and communicating it effectively. When clients understand what to expect, they feel more confident moving forward.
Networking Doesn't Have to Be Complicated
From introducing herself to architects to striking up conversations at the gym and ice rink, Katie demonstrates that meaningful business relationships often start with a simple conversation.
Business Growth Requires Personal Growth
Success isn't just about improving your design skills. It's about developing confidence, setting boundaries, understanding your value, and learning how to lead clients through decisions.
Memorable Quotes
"Own your background. Whatever you did before design, there's something there that makes you a better designer."
"If it looks beautiful but doesn't function for you, what's the point?"
"You're not trying to convince clients to hire you. You're guiding them as the expert."
"We are a for-profit company, not a non-profit."
"We're most memorable in person, not behind our computer."
"Whoever is going to hire me isn't going to hire you because I'm not you and you're not me."
Connect with Katie Rainey
Website: katieraineydesign.com
Instagram: @katieraineydesign
Facebook: Katie Rainey Design
Connect with Michelle Lynne
If you enjoyed this episode, be sure to subscribe, leave a review, and share it with a fellow interior designer who could benefit from today's conversation.
For coaching, mentorship, and business resources for interior designers, visit our website at thedesignbakehouse.com. 
Loved This Episode?
Leave a review and share this episode with another designer who needs the reminder that their unique background isn't something to hide—it's something to build on.

If you've ever ended the day feeling like you worked nonstop but still didn't get to the things that actually move your business forward, this episode is for you.
In the final installment of the Profit Isn't an Accident series, Michelle explores what happens when all of the little operational problems in a design firm pile up at the same time. The delayed vendor emails, missed lead follow-up, disconnected systems, inconsistent marketing, and never-ending procurement tasks aren't separate issues—they're symptoms of a larger problem.
Michelle calls it the duct tape business: a firm that runs on the owner's memory, attention, and personal effort instead of systems and infrastructure.
In this episode, you'll learn why being the "glue" holding everything together creates a ceiling on growth, how operational sprawl quietly erodes profitability, and what it takes to build a business that doesn't depend on you being involved in every detail.
You'll also hear an exciting update on Sidemark 2.0 and how Michelle is working to help designers simplify and connect the systems running their firms.
 
In This Episode, Michelle Discusses:
What a "duct tape business" really is

Why being the integration layer in your firm limits growth

The hidden cost of fragmented procurement tracking

How disconnected systems create operational sprawl

Why marketing is often the first thing to disappear when operations become overwhelming

The delayed consequences of inconsistent marketing

The mindset and identity shifts that keep designers stuck in chaos

How to identify the most expensive operational problems in your business

Why consolidation is more valuable than adding more tools

Building infrastructure while actively running projects

The common thread connecting procurement, markup, financial tracking, and operational inefficiencies

A first look at what's coming with Sidemark 2.0

 
Key Takeaways
You're Not Running a Business—You're Holding It Together
Many design firms operate with the owner serving as the connection point between every process, decision, and system. While that may work for a season, it eventually consumes all available time, energy, and mental bandwidth.
Operational Chaos Isn't a Requirement
The complexity of running a design firm is real. The chaos doesn't have to be. Sustainable firms are built on systems, processes, and connected tools—not constant personal oversight.
Marketing Problems Often Start as Operations Problems
When your backend is disorganized, marketing becomes the first thing sacrificed. The problem is that the consequences often don't show up until six to twelve months later when the pipeline starts slowing down.
Profitability Is a Structure Problem
The gap between what you're billing and what you're actually keeping is rarely caused by a lack of talent or effort. More often, it's the result of fragmented systems, poor visibility, and operational inefficiencies.
 
Resources Mentioned
Join the Sidemark 2.0 Waitlist: https://api.mysidemark.com/widget/form/4Ug6Rgg2uqCX0MydoJ2v

Learn more about Private Coaching: https://thedesignbakehouse.com/private-coaching

Explore the Profit Mixer: https://thedesignbakehouse.com/profit-mixer

 
 
Loved This Episode?
If this series helped you see your business differently, share it with another designer who could benefit from it.
The interior design industry doesn't have a talent problem—it has a business systems problem. Sometimes one conversation can help another designer start building a more profitable firm.
Be sure to subscribe so you don't miss the next series from Michelle.

What does it really mean to be the principal of an interior design firm?
In this first episode of The Art of Being the Principal, Michelle Lynne and Katie Decker-Erickson join forces to have the candid conversations most design business owners need—but rarely hear. No fluff. No trendy buzzwords. Just honest discussion about what it takes to lead a profitable, sustainable interior design business.
Together, they explore the transition from designer to CEO, why so many firm owners get stuck operating instead of leading, and how systems, processes, and strategic hiring create the freedom to focus on what you do best.
Whether you're running a six-figure firm, building toward seven figures, or simply trying to create a business that works for you instead of the other way around, this conversation will challenge you to think differently about leadership, delegation, and your role as the principal.
In This Episode, We Discuss:
Why Michelle and Katie created The Art of Being the Principal

The difference between being a business owner and actively "CEOing"

Why most interior design firms are still very small businesses—and the unique challenges that creates

The three pillars every successful firm must master:

Marketing

Operations

Finance

Creating dedicated CEO time in your weekly schedule

How systems and processes protect your creativity

Moving from business operator to business owner

Why your first hires shouldn't necessarily be assistant designers

The importance of buying back your time strategically

Hiring people who are smarter than you in their area of expertise

Building a culture where mistakes can be acknowledged and corrected

How to know when someone is in the wrong seat on the bus

The power of finding team members who consistently give "the extra 5%"

Why leadership requires discomfort, self-awareness, and difficult conversations

The connection between leadership, motherhood, and personal growth

The importance of "winding the clock" and creating space to think strategically

Key Takeaways
CEOing Is a Verb
Owning a business and leading a business are two different things. Successful principals intentionally set aside time to focus on leadership, marketing, finances, and growth—not just project execution.
Systems Create Freedom
When processes are documented and repeatable, your business becomes less dependent on you. That creates more room for creativity, strategic thinking, and growth.
Protect Your Time
Time is your most valuable asset. Every task you continue doing yourself should be evaluated through the lens of ROI and whether someone else could do it better.
Hire for Expertise
The goal isn't to be the smartest person in the room. Strong leaders surround themselves with specialists who challenge their thinking and elevate the business.
Growth Requires Letting Go
What helped you reach six figures won't necessarily get you to seven. Scaling requires delegation, trust, and a willingness to shift from doing the work to leading the people who do the work.
Wind the Clock
Leadership isn't just about doing more. Sometimes the most important work happens when you slow down, reflect, connect with peers, and intentionally decide where you're headed next.
Mentioned in This Episode
The upcoming Art of Being the Principal Live Event (August 24 in the Dallas/Fort Worth area)

Connect With Us
Michelle and Katie want to hear from you:
What challenges are you facing as the principal of your firm?

Which pillar do you struggle with most: marketing, operations, or finance?

What topics would you like covered in future Art of Being the Principal episodes?

And settle the debate: Should it be called a Summit or a Retreat?

Leave a review, send a DM, or connect with us on social media.
Katie: @successbydesign_coach_podcast
Michelle: @by_michelle_lynne
Remember: Your business should be working for you—not you working for it.

In this third episode of the Profit Isn't an Accident series, Michelle Lynne dives into the hidden operational cost that many interior designers don't realize is quietly draining their profits: double entry.
From project management platforms to accounting software, Michelle breaks down how disconnected systems create unnecessary labor, reconciliation headaches, bookkeeping expenses, and unreliable financial visibility. She shares real examples from her own firm, ML Interiors Group, and explains why so many design businesses are operating with what she calls a "Frankenstack" of disconnected tools.
This episode explores:
Why double entry is costing your firm more than you think

The operational risks of disconnected project and financial systems

Why bookkeeping alone does not equal real-time profitability visibility

How inaccurate or delayed financial data impacts decision-making

The difference between project health and financial reporting

What integrated systems actually look like in a design firm

How better operational infrastructure leads to better business decisions

Michelle also shares the story behind The Profit Mixer, the operational platform she uses and teaches through The Design Bakehouse, and how it was designed specifically to eliminate the double entry problem for interior designers.
Key Takeaways
Double entry creates hidden labor costs every single month

Separate systems inevitably drift out of sync over time

Reconciliation work is expensive and often avoidable

Clean bookkeeping does not automatically mean clear project profitability

Your accounting system should remain the source of truth for financial data

Better systems produce better data, and better data produces better decisions

Operational clarity reduces stress and improves confidence as a business owner

Action Steps from This Episode
Michelle encourages designers to:
Audit every operational and financial tool in their business

Identify where information is being manually duplicated

Trace a purchase order from placement to accounting reconciliation

Review bookkeeping invoices to uncover reconciliation-related labor costs

Evaluate whether their current systems are actually supporting profitability visibility

Resources Mentioned
The Design Bakehouse

Profit Mixer

SideMark

Dove Agency

QuickBooks

Quotes from the Episode
"You're paying somebody to do it twice."
"The labor that double entry creates produces no value."
"Better information produces better decisions."
"Profitability is not an accident. It's operational clarity."
What's Coming Next
In the next episode of Profit Isn't an Accident, Michelle tackles what happens when untracked procurement turns into a true cash flow crisis — the small leak that eventually becomes a financial flood.