442: Power Talk Friday: Kimberly Merlitti: Do You Know Your Cash on Hand Number?

A Well-Designed Business® | Interior Design Business Podcast

LuAnn Nigara

Arts, Design, Business

4.9 • 810 Ratings

🗓️ 28 June 2019

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

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Summary

Welcome to Power Talk Friday! We are very happy to have Kimberly Merlitti, one of our favorite Power Talk Experts, back on the show today. Many people are really in the dark about how much money is actually going in and out of their businesses. Kimberly, who first appeared in episode #361, loves teaching people to understand accounting in a way that makes them an active partner in their finances. Talking in really simple language, she helps people figure out the really important financial side of their businesses. In today's episode, you will learn about the billable hours, rates between the principal designer and junior designers, how to know your cash on hand, how to know your 'cost to be open' number, how to budget to hire a junior designer, and how to prepare for a recession. Listen in, to find out how to get to know your numbers. Kimberly Merlitti owns KMM Consulting based out of Washington, D.C. She has 20 years of experience working in accounting for companies such as Swinerton Builders, WRNS Studio, and Martin Group. She has her Masters in Accounting from Golden Gate University. Located in Washington D.C. Kimberly's clientele includes a diverse group of service-based companies, with the main focus on small interior design, construction, and architectural firms. The goal of her firm is to make the businesses she works for as profitable as they can be by educating them on accounting, cash flow management, tax deductions, project reporting, and business management. Tune in now, for more! Show Highlights: Kimberly shares a really simple calculation for you to get to know how much of the money in your business account is actually yours. Using the best software to calculate your vendor liability. Keeping an eye on your cash flow. How to know your cash on hand. It only takes five minutes a month to know your cash on hand. Budgeting to hire a junior designer. Working out your time-billing rates and budgets. Being upfront and straightforward with your clients. Telling your clients what to expect with every stage of the design process. Things to consider when working out your 'cost to be open' number. How to prepare for a recession. Building cash reserves for difficult times. Other episodes mentioned in today's show: Alinda Morris: #429 Michele Williams #180 and #395 Peter Lang #349 Links: A Well Designed Business Kimberly's website: KMM Consulting Kimberly's email: kimberly@kmmsf.com Need to schedule time with KMM? KMM Consulting

Transcript

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0:00.0	Hey, I want to give a shout out to my friend Susan Winterstein. You may know Susan from her two
0:05.5	podcast appearances here, episodes 164 and 717. In these episodes, Susan told us about her charity that
0:13.9	she founded Savvy Giving by Design. Now she has introduced the Savvy Giving Design Coalition.
0:23.7	The mission of both of these is to bring comfort and hope to families by transforming kids' rooms into healing sanctuaries. Previously, in order
0:30.9	to help Savvy Giving by Design, you could open a chapter in your own area and then design
0:36.7	spaces for children in your area that are in need.
0:39.9	Now with the Savvy Giving Design Coalition, you can contribute and impact the lives of these children
0:45.5	without taking on the beginning of an entirely new chapter.
0:49.9	Savvy Giving Design Coalition operates through the collective efforts of you, the designer, as well as sponsors and volunteers.
0:58.6	This organization is making a real difference in these children's lives, and you can help now in whichever way feels right for you.
1:06.3	I encourage you to listen to Susan's two episodes to learn more and then visit their website at
1:12.2	Savvygivingbydesign.org forward slash design we have grown our company Window Works from the ground up.
1:46.1	So I know and I understand the challenges you face in running your interior design business.
1:52.2	I also know that your talent alone isn't enough to ensure your success.
1:57.1	So on this podcast, we talk about strategies and practical steps to help you grow your business.
2:03.7	But make no mistake about it, we have our share of fun here too, mixed in with those aha
2:08.6	moments that I love so much.
2:10.8	This isn't fluff.
2:11.8	Nobody has time for that.
2:13.4	Whether you are a new interior designer or a season designer, I am here to help you create and to
2:19.4	manage the kind of interior design firm that you dream of.
2:22.9	It's straight talk and it's action.
	...

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