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Houzz Professionals' Survey: Your Hopes, Challenges and Dreams
We asked, you answered. Take a look at what professionals on Houzz told us about running their businesses in 2018
Joanna Tovia
24 декабря, 2018
It’s not always easy running a business, but most professionals on Houzz wouldn’t have it any other way. To gauge what’s important to them, along with their challenges and hopes, we ran a comprehensive survey in Australia and across the world.
Globally, the majority of businesses on Houzz are established and looking to grow. Their main goals over the next few years are to have a steadier workflow of clients, to grow their businesses and to attract larger, higher-quality projects. Read on to find out more about what professionals on Houzz are focusing on, and what their biggest challenges are in running and growing their businesses.
Globally, the majority of businesses on Houzz are established and looking to grow. Their main goals over the next few years are to have a steadier workflow of clients, to grow their businesses and to attract larger, higher-quality projects. Read on to find out more about what professionals on Houzz are focusing on, and what their biggest challenges are in running and growing their businesses.
The big picture
More than 1,100 Australian Houzz professionals responded to our survey in November, highlighting some key hopes, focuses and challenges that their businesses face in the home-design industry. The survey was also extended to business owners in other countries within the Houzz network – with 10,500 respondents from New Zealand, Singapore, the UK, France, Germany, Spain, Russia, India, Japan and other nations.
First, let’s take a look at the big picture in Australia. Almost two-thirds of respondents work full-time on their business, with 44 percent working from home and 41 percent from an office. Others either worked on-site or from a shared workspace.
More than 1,100 Australian Houzz professionals responded to our survey in November, highlighting some key hopes, focuses and challenges that their businesses face in the home-design industry. The survey was also extended to business owners in other countries within the Houzz network – with 10,500 respondents from New Zealand, Singapore, the UK, France, Germany, Spain, Russia, India, Japan and other nations.
First, let’s take a look at the big picture in Australia. Almost two-thirds of respondents work full-time on their business, with 44 percent working from home and 41 percent from an office. Others either worked on-site or from a shared workspace.
As you can see from the chart above, 58 percent of the survey’s respondents are the sole owners of their businesses, and 21 percent co-own it.
Excluding the owners themselves, just over a third of businesses had no employees. The majority (41 percent) had between one and four employees; 13 percent had between five and nine employees; and seven percent of businesses that responded told us they had 10 to 19 employees.
Excluding the owners themselves, just over a third of businesses had no employees. The majority (41 percent) had between one and four employees; 13 percent had between five and nine employees; and seven percent of businesses that responded told us they had 10 to 19 employees.
The chart above reveals how owners see their businesses. While an expected majority is established and looking to grow, 16 percent are established and are happy with the current size of their business.
In two years’ time, you hope to be…
In Australia and across the world, five themes emerged when owners were asked what they hoped their businesses would look like two years from now.
1. To have a steady workflow of clients.
2. To grow their businesses.
3. To stay stable/the same.
4. To be working on larger projects and/or high-quality projects.
5. To be more established in the market.
In Australia and across the world, five themes emerged when owners were asked what they hoped their businesses would look like two years from now.
1. To have a steady workflow of clients.
2. To grow their businesses.
3. To stay stable/the same.
4. To be working on larger projects and/or high-quality projects.
5. To be more established in the market.
What professionals on Houzz say…
Below, we’ve shared a few of the responses we received from Australian professionals on Houzz about their hopes for the next two years:
“As a small business, we love having a team that works well together. And we love having employees who have worked with us for years. We have five employees who have worked with us for over seven years now. However, in the past two years we’ve noticed that employees are flitting in and out. Loyalty isn’t what it used to be in the local building industry, which is why we’d love for future employees to stay on longterm, allowing us to establish a close-knit team, and for everyone to further develop their skills. If this begins to happen within two years’ time, then I’ll be a very happy man.”
“I would like to expand my client base so that I’m providing my services to the same clients through referrals and repeat business – so I can build a longterm relationship with each one.”
“I am looking to focus on a more holistic approach to design – not just interior fitouts, but training others in design software and perhaps writing some editorial articles.”
“I’d like to be comfortable enough to take on work that suits me from the onset with sympathetic clients whose expectations and tastes generally align with my practice.”
“My main objectives are increase brand awareness, increase product offerings, improve customer service, grow customer base/profits.”
“For our website and business to have a great presence on search engines and for a consistent workflow.”
“I’d like to have sold my business and retired, with my customers being looked after by someone who buys the business.”
Below, we’ve shared a few of the responses we received from Australian professionals on Houzz about their hopes for the next two years:
“As a small business, we love having a team that works well together. And we love having employees who have worked with us for years. We have five employees who have worked with us for over seven years now. However, in the past two years we’ve noticed that employees are flitting in and out. Loyalty isn’t what it used to be in the local building industry, which is why we’d love for future employees to stay on longterm, allowing us to establish a close-knit team, and for everyone to further develop their skills. If this begins to happen within two years’ time, then I’ll be a very happy man.”
“I would like to expand my client base so that I’m providing my services to the same clients through referrals and repeat business – so I can build a longterm relationship with each one.”
“I am looking to focus on a more holistic approach to design – not just interior fitouts, but training others in design software and perhaps writing some editorial articles.”
“I’d like to be comfortable enough to take on work that suits me from the onset with sympathetic clients whose expectations and tastes generally align with my practice.”
“My main objectives are increase brand awareness, increase product offerings, improve customer service, grow customer base/profits.”
“For our website and business to have a great presence on search engines and for a consistent workflow.”
“I’d like to have sold my business and retired, with my customers being looked after by someone who buys the business.”
Biggest business challenges
We asked about the single biggest challenge business owners are facing right now. The global findings were in line with Australia’s:
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We asked about the single biggest challenge business owners are facing right now. The global findings were in line with Australia’s:
- Finding clients and new business.
- Pricing, budget and cashflow.
- Marketing, exposure and advertising.
- The wider market and economy.
- Hiring and managing staff.
- Lack of time.
- Managing client budgets and expectations.
- Keeping up with the competition.
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Here are some of the responses we received from Australian professionals on Houzz about the challenges their businesses face:
“Lots of small projects keep staff very busy without big fees. The challenge is getting larger jobs more often that pay better, rather than many small low-paying jobs.”
“Being undercut by unregistered and inexperienced builders.”
“People don’t know about us and we get out-quoted on jobs.”
“The challenge is getting clients to understand the industry – how much things cost and the value of hiring an architect.”
“Clients wanting everything for nothing, who are not willing to pay for quality and think they can get it cheaper elsewhere.”
“Cut-price fees from competitors.”
“Unrealistic expectations in the residential sector on both fees and costs… expectations that they’ll get a house drawn up for less than $2,000 and get it built for $1,000 to 1,500 per square metre.”
“I don’t have enough steady work to create an income that will allow me to cut back on my full-time hours at my other job.”
“Lots of small projects keep staff very busy without big fees. The challenge is getting larger jobs more often that pay better, rather than many small low-paying jobs.”
“Being undercut by unregistered and inexperienced builders.”
“People don’t know about us and we get out-quoted on jobs.”
“The challenge is getting clients to understand the industry – how much things cost and the value of hiring an architect.”
“Clients wanting everything for nothing, who are not willing to pay for quality and think they can get it cheaper elsewhere.”
“Cut-price fees from competitors.”
“Unrealistic expectations in the residential sector on both fees and costs… expectations that they’ll get a house drawn up for less than $2,000 and get it built for $1,000 to 1,500 per square metre.”
“I don’t have enough steady work to create an income that will allow me to cut back on my full-time hours at my other job.”
“Finding the skilled trades who do quality work for a reasonable price, or just quality work full stop! All the trades who have the years of experience are retiring and too many new ones want the money and the job done fast, but not to a high standard.”
“Cashflow. Having been in this industry for many years, the past two years have placed us in an extremely vulnerable financial position. We have trained nine apprentices and numerous management trainees, but they have all moved on and set themselves up in opposition using our knowledge and skills. Some have failed, others have succeeded, many by using the original employer’s customer base and under-quoting their services to acquire a result. The damage that has done is unbelievable.”
“No money for advertising and it’s so expensive. Resisting the temptation to hire fake followers on Instagram (we have a small following at the moment).”
“Our industry is a ‘cottage industry’ with a huge competition base, and not all follow current state legislation regarding compulsory insurance. Therefore the biggest challenge is educating customers about government legislation to ensure they are protected, even if they don’t buy from us.”
“Proving my value as an interior designer. A lot of people read interiors magazines and watch TV shows and think they can do it all themselves. I’m now offering a one-off consultation with a fee for people who just want my ideas and plan to do it all themselves, as I found people would get me out to meet with them, get my initial ideas, then I’d never hear from them again and not get any money for sharing my knowledge.”
“The struggle between having the workload for an extra staff member but not earning quite enough to pay one yet, but at the same time knowing that if we could just hire someone we could get the work in…”
“Cashflow. Having been in this industry for many years, the past two years have placed us in an extremely vulnerable financial position. We have trained nine apprentices and numerous management trainees, but they have all moved on and set themselves up in opposition using our knowledge and skills. Some have failed, others have succeeded, many by using the original employer’s customer base and under-quoting their services to acquire a result. The damage that has done is unbelievable.”
“No money for advertising and it’s so expensive. Resisting the temptation to hire fake followers on Instagram (we have a small following at the moment).”
“Our industry is a ‘cottage industry’ with a huge competition base, and not all follow current state legislation regarding compulsory insurance. Therefore the biggest challenge is educating customers about government legislation to ensure they are protected, even if they don’t buy from us.”
“Proving my value as an interior designer. A lot of people read interiors magazines and watch TV shows and think they can do it all themselves. I’m now offering a one-off consultation with a fee for people who just want my ideas and plan to do it all themselves, as I found people would get me out to meet with them, get my initial ideas, then I’d never hear from them again and not get any money for sharing my knowledge.”
“The struggle between having the workload for an extra staff member but not earning quite enough to pay one yet, but at the same time knowing that if we could just hire someone we could get the work in…”
Immediate areas of focus
When asked about their main focus right now, the majority of respondents (43 percent) told us they were trying to generate new business. Other areas of focus included: building brand visibility (22.3 percent); developing their online presence (16 percent); increasing marketing/sales efforts (13 percent); bringing in larger budget projects (17 percent); and improving the customer experience (eight percent). Other respondents told us they were focusing on offering new products/services, improving employee productivity, hiring new staff, partnering with other businesses and opening new showrooms/sites or offices.
We also inquired about the main things standing in the way of businesses achieving their goal, and seven key themes emerged. It’s important to note that the third most-popular response was that nothing was standing in their way.
1. Lack of time (by far the most-popular response).
2. Money, cashflow and finance.
3. Nothing.
4. The economy.
5. Marketing and advertising.
6. Staff and labour.
7. Clients and leads.
Here’s What You Should be Saying in Your First Client Phone Call
When asked about their main focus right now, the majority of respondents (43 percent) told us they were trying to generate new business. Other areas of focus included: building brand visibility (22.3 percent); developing their online presence (16 percent); increasing marketing/sales efforts (13 percent); bringing in larger budget projects (17 percent); and improving the customer experience (eight percent). Other respondents told us they were focusing on offering new products/services, improving employee productivity, hiring new staff, partnering with other businesses and opening new showrooms/sites or offices.
We also inquired about the main things standing in the way of businesses achieving their goal, and seven key themes emerged. It’s important to note that the third most-popular response was that nothing was standing in their way.
1. Lack of time (by far the most-popular response).
2. Money, cashflow and finance.
3. Nothing.
4. The economy.
5. Marketing and advertising.
6. Staff and labour.
7. Clients and leads.
Here’s What You Should be Saying in Your First Client Phone Call
Marketing matters
Given that most professionals on Houzz run their business with no or few staff, the majority of business owners (74 percent) look after the marketing. Just 12 percent have an in-house marketing manager and five percent outsource it to an external marketing agency.
These trends are in line with other countries in the global survey.
How to Market Your Small Business on a Budget
Given that most professionals on Houzz run their business with no or few staff, the majority of business owners (74 percent) look after the marketing. Just 12 percent have an in-house marketing manager and five percent outsource it to an external marketing agency.
These trends are in line with other countries in the global survey.
How to Market Your Small Business on a Budget
As for where they advertise their business, most professionals on Houzz rely on word of mouth and their own website rather than advertising. Social media has become more important as a marketing tool, however, with Australian respondents spending time and money on Facebook (72 percent), Instagram (69 percent), LinkedIn (35 percent) and Twitter (11 percent).
Other professionals’ marketing efforts are being made on trade-specific websites, paid online directories, Pinterest, search engine optimisation (SEO), pay-per-click, direct mail, trade shows and industry events. Tellingly, print ads are now being relied on for marketing purposes by just 12 percent of respondents.
Globally, Instagram has grown by 17 percent in the past year as a marketing tool for Houzz’s professional audience.
Other professionals’ marketing efforts are being made on trade-specific websites, paid online directories, Pinterest, search engine optimisation (SEO), pay-per-click, direct mail, trade shows and industry events. Tellingly, print ads are now being relied on for marketing purposes by just 12 percent of respondents.
Globally, Instagram has grown by 17 percent in the past year as a marketing tool for Houzz’s professional audience.
Knowledge is power
We asked pros where they go to find professional advice and information relating to their businesses. We’re happy to report that Houzz is relied on by a large number of respondents (33 percent).
Other sources of advice and information include online forums, Facebook, LinkedIn, Instagram, YouTube, Twitter, trade-specific websites, trade events, networking events, and search engines.
Tell us
Do you have something to add about where you’d like to see your business in two years’ time and any challenges that may be standing in your way? Tell us in the Comments below, save and share this story, and join the conversation with other Houzz professionals.
More
See more industry research Houzz has carried out in 2018
We asked pros where they go to find professional advice and information relating to their businesses. We’re happy to report that Houzz is relied on by a large number of respondents (33 percent).
Other sources of advice and information include online forums, Facebook, LinkedIn, Instagram, YouTube, Twitter, trade-specific websites, trade events, networking events, and search engines.
Tell us
Do you have something to add about where you’d like to see your business in two years’ time and any challenges that may be standing in your way? Tell us in the Comments below, save and share this story, and join the conversation with other Houzz professionals.
More
See more industry research Houzz has carried out in 2018
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