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Working hard, but still not making money?

Five ways your business is silently leaking profit, and how to fix each one today

Andrew Mitchell, The Design Coach

Aug 04, 2026

This article is part of our Business for Interior Designers series. Andrew Mitchell is the founder of The Design Coach and director of MR. MITCHELL, an award-winning Melbourne-based design studio. With over 26 years in the industry spanning residential, hospitality and commercial sectors, Andrew coaches interior designers on the business fundamentals that keep practices profitable and sustainable. This is the third and final article in his series on The Psychology of Fees.

A busy studio isn't necessarily a profitable studio. A full project pipeline, beautiful portfolio and happy clients can disguise poor cash flow, unpaid hours, weak margins and a fee structure that simply isn't working hard enough.
Andrew MitchellFounder, The Design Coach

Are you working hard in your design business, but can't seem to get ahead financially?

The uncomfortable truth is that you're probably leaving money on the table every day, in more ways than you realise.

As creatives, we're trained to focus on the delivery: the beautifully completed project and the clients who are over the moon with the result. Handing over a finished project is an incredibly satisfying feeling, especially when it's supported by praise from the client and the team who collaborated with you to reach the finishing line.

But without the financial wins that should be a priority for every small business, that feeling of accomplishment can be short-lived.

A busy studio isn't necessarily a profitable studio. A full project pipeline, beautiful portfolio and happy clients can disguise poor cash flow, unpaid hours, weak margins and a fee structure that simply isn't working hard enough.

Zooming out from the day-to-day demands of running a design business to assess its financial health isn't only beneficial. It's imperative.

In this, my third and final article in a series for Programa on The Psychology of Fees, I'm looking at five common ways you might be leaking profit in your design practice, along with practical changes you can implement immediately to get your business back on track.

Five ways your business is silently leaking profit

1. Chasing invoices

Late payers aren't just annoying. They damage your cash flow, slow your momentum and put you in the deeply uncomfortable position of chasing money for work you've already done.

Fix it: Charge upfront per stage.

Rewrite your Fee Payment Structure. Do it today.

Don't start the next stage until your invoice is paid. This simple modification removes the "accounts management" hat from your repertoire and allows you to focus on getting the job done.

Not only will it remove the uncomfortable conversations about overdue accounts, but it will also improve your efficiency and overall quality of life.

This one change can completely shift your confidence, cash flow and management of client boundaries.

2. Undercharging

Undercharging feels like a client problem. It's easy to blame a tough market, a conservative economy and/or the cost of living crisis (I know all of that is real). But usually, it starts with us, and a lack of confidence.

We panic. We guess. We reduce. Worse still, we apologize (for an already under-baked fee). Then we spend the entire project trying to deliver champagne service on a beer-budget fee.

Fix it: Use a clear, transparent fee calculator.

Estimate the work properly. Break it into stages, tasks, hours and rates.

When you trust the method, you stop apologising for the number. Calling a fee "value-based" doesn't remove the need for a clear methodology. Without understanding the stages, tasks, hours and resources required, you're still guessing.

And guessing makes it almost impossible to analyse the project's profitability later (see point 5).

We panic. We guess. We reduce. Worse still, we apologize. Then we spend the entire project trying to deliver champagne service on a beer-budget fee.
Andrew MitchellFounder, The Design Coach

3. Over-delivering

If I've learnt one thing in my 26 years working as a designer: endless options and revisions don't make clients happier. They make decisions harder. They create confusion, slow the project down and quietly destroy your profit.

More options can also make you look less confident, not more helpful.

And this is the main area where designers feel uncomfortable charging extra fees for, and therefore the biggest area of profit leakage in most businesses.

Fix it: Include one clear direction and one round of revisions.

Beyond that, it's additional work and should be charged accordingly.

Update your T&C and explain this to the clients from the outset.

Controversial? Maybe. Game-changing for your bottom line? Absolutely.

4. Hiding behind sticker shock

Your fee proposals or your product quotes should never feel like a financial ambush.

If the first serious fee conversation happens when the client opens your proposal, you've left it too late. The same applies to project budgets.

Big numbers need context, trust and preparation. (We call it financial foreplay.)

Fix it: Talk about money from the beginning.

Set expectations early. Explain likely fees. Discuss budget realities. Nurture them through the process so that there are no nasty surprises.

When clients feel informed, they feel safer. And when they feel safer, they're happier to spend more, and are more likely to proceed with everything you propose (and not sack you).

Big numbers need context, trust and preparation. We call it financial foreplay.
Andrew MitchellFounder, The Design Coach

5. Avoiding the numbers

Not looking at the numbers doesn't make them disappear!

It just means you're making decisions without knowing what's working and what needs to be improved.

If you don't know your estimated versus actual hours, your average project profit, your procurement margin or your unpaid time, you're just guessing.

Fix it: Track the data.

Yes, it's boring. But it's the only way to know whether your current fee method and margin structure are actually working.

Guessing isn't a business strategy, and ignoring an unprofitable business structure is destined to end in tears.

Profit rarely disappears because of one catastrophic mistake.

More often, it leaks out gradually through unpaid revisions, delayed invoices, underestimated hours, avoiding uncomfortable conversations and small pieces of work we convince ourselves aren't worth charging for. Individually, these decisions can feel insignificant. Across multiple projects, clients and years, they can have an enormous impact on the financial health of your business.

Creating a more profitable design practice isn't only about increasing your hourly rate or adding a larger margin. It requires us to become more confident discussing money, more disciplined about tracking performance and more comfortable establishing boundaries around what is and isn't included.

There's no way to overhaul an entire business overnight, but starting with the above 5 actions will help plug up some of those profit-leaking holes and set your business on a path towards a more sustainable future.

Guessing isn't a business strategy, and ignoring an unprofitable business structure is destined to end in tears.
Andrew MitchellFounder, The Design Coach

Better your practice today, don't waste another minute.

Interior Design

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