The economy is good and clients are calling in droves. The last thing you're worried about is your design firm's fiscal prowess. It's hard to imagine that a flood of new business might weaken your financial position, but it can if you aren't prepared to handle it.
Entrepreneurs hate to say no.
Whether you plan to stay small or make it big, it's important to take control of your firm's finances before they enslave you. A common financial blunder that design firms make is accruing debt to take their businesses to the next level, Baker says. Seductive leasing options, loans and credit lines offer quick fixes, but the interest rates are insidious. Many designers start their own businesses because they want more flexible hours - and then the opposite occurs. As debts accrue, you'll have to come into the office just to pay them off.