How to grow and scale your graphic design business: 12 lessons learned running a multi-6 figure graphic design studio
Vol. 085
How to grow and scale a graphic design business: 12 lessons learned running a multi-6 figure graphic design studio.
The (not-so) secrets learned while building a successful creative business.
A quick bite:
To run a multi-6-figure graphic design business was something I never knew was possible. And, quite frankly, it still boggles my mind. If you’re wondering how to graphic a profitable creative business, here are 12 of the most important things that you can do.
Continue reading below…
Based on last year's averages, Vicarel Studios brings in about $30k per month in revenue. Trust me, it feels crazy to type that.
These 12 things are what can help you grow your graphic design business:
Learn to talk business (not just creative)
Delegate tasks
Present yourself and your work professionally
Master your craft
Develop a workflow and processes
Diversify your income streams
Get comfortable talking about money with your clients
Get organized
Setup processes and automations
Learn to roll with the punches
Have fun and be you!
Remember: It really is not about being the best
7 years ago I worked 60-70hr weeks and made $45k: this is equivalent to someone with 3 years of experience making a $27,000 annual salary while living in the 7th most expensive city in the US. That’s not good…
Growing a graphic design business to this scale did not come overnight, and it most definitely did not come easily. I didn’t have a secret graphic design business plan pdf to walk me through the process, and you don’t need one either!
The following 12 points are lessons I have learned that will help you grow your graphic design business. If you’re not a graphic designer, these points are presented more generally as to apply to any type of creative entrepreneur or artist:
1. Learn to talk business (not just creative)
It shouldn't come as a surprise that to run a lucrative graphic design business, you must get better at "business." Duh.
Freelance graphic designers often times must fulfill the roles of 8 people. Of course, you could also outsource these tasks — you can hire an agent, you can hire a CPA or business coach — but if you're rockin' solo as I did for many years, you'll need to pick up some business sense.
Don't be overwhelmed by the idea of “talking business”. You’re probably better at this than you think, but you're just not yet embracing it. Simple things like talking about how your graphic design choices of color, typography and layout solve your clients’ needs is a great start.
Simply shifting the conversation from “what do you like” to “this is why this works” has profound implications for your professionalism and how the work is received by your client. This is a business sensibility that you likely already have, and just need to further develop!
Talking about how your creative work is directly connected to solving the problems of your clients or customers is the essence of what we need to do. This is “talking business.” Know that ROI means return on investment…not Red, Orange, Indigo. Ha! Familiarize yourself with terminology through listening to podcasts, reading and learning.
Additionally, staying on top of technology and processes that "bigger business" are using is hugely helpful. Using apps like Slack, Asana, Google Chrome plugins and scheduling tools all will not only help you come across as more professional, but you'll be using software that your client is accustomed to.
If you want to make a CEO or CMO feel comfortable spending tens of thousands of dollars on your creative abilities, you’ll need to talk their talk, not your talk.
2. Delegate tasks
Based on the concept in the book "the C suite", delegating allows you to step out of the role of "technician" — the doer — and into the role of the manager or better yet, the CEO — or, the visionary.
Delegation does remove you a bit from the craft itself, but if done right, you're able to take on more projects, retain control, and make more money as an artist and designer.
If you’re too precious about doing all of the work yourself, you are very likely to hit a wall at some point, unable to take it to the next level. I’m a huge advocate for losing the ego, and asking for help.
Hiring others has had massive implications for the success of my business because it allows me to focus on high-level big picture strategies, and not just the day-to-day. As you delegate the smaller tasks, your inherent value goes up.
For an easy-number example: if your hourly rate for logo design is worth $50/hr, but you're spending your time pulling together presentations, sending emails, and posting on social media (all of which can be hired out at rates of $5–$25 per hour here) you're "losing money" by taking on those tasks.
A better use of your time would be to hire someone to do the smaller tasks needed to help grow your graphic design business so that you can focus on doing the tasks that really push your graphic design business forward.
Of course, hiring other creatives stipulates that you have enough inbound work and cash flow to justify this.3Present yourself professionally
3. Present yourself professionally
Presenting yourself professionally is crucial. Think about the vegetable section at Whole Foods vs Walmart — Wholefoods is beautifully presented with stacked, organized veggies.
Walmart often has a pile of mushy veggies that were dumped out into a bin.
Whole Foods’ presentation sets the expectation for quality. An initial, thoughtful presentation sets the expectation that you WILL be paying more. But you're okay with it, because it was presented as such.
When you're showcasing your work in your portfolio, presenting your work to your clients, or showing up on social media, you must do so professionally so that your brand is connected to quality.
**Note: Being professional doesn't need to mean austere or stuffy. You can still be weird, quirky, funny and irreverent while still being professional.
4. Master your craft
To build a financially successful creative business, you must of course be a master of your craft.
If you’re a graphic designer, a logo designer, an artist, or any other type of creative, you’ll want to log your 10,000 hours to help achieve your vision for a successful and lucrative creative business.
They say it takes 10,000 hours to master your craft, which is about 5 years working full time at 40 hours per week.
Aside from working additional hours, there aren't many short cuts around this one. And, it’s a great lesson in having patience. It's rare that a multi-six figure graphic design business can be created overnight. You must spend time dedicated to mastering your craft.
With mastery comes money.
5. Develop a workflow and processes
Having a consistent, go-to process and workflows for your graphic design business or creative projects is crucial.
Business processes not only help you work more efficiently, but having a streamlined process will mitigate doubt from your clients and customers.
I've learned that as soon as doubt creeps in, it's tough to shake. Ideally, you want to position yourself as the expert, present your work confidently with YOUR process, and tell them how the project will go. Not the other way around.
This doesn’t mean you shouldn’t be flexible, but you should embrace the process that enable you to create your best work.
6. Diversify your income streams
It's said that most millionaires have at least 7 income streams. I’m certainly not a millionaire, but embracing their mindsets and practices is the best way to being one step closer!
Diversifying where your money comes from prevents you from becoming too overly reliant on any one thing. After learning my lesson from a metaphorical kick in the face for a few pandemic years, diversified income streams have been a real gift for Vicarel Studios!
Vicarel Studios’ income streams and the (estimated) percentage of my income are listed below:
Digital design services: graphic design, branding, packaging, lettering, etc.
50%
Physical design/art services: murals, commissions, etc.
40%
Influencer marketing:
2%
digital products:
3%
consignment:
2.5%
Wholesale:
1%
Affiliate marketing: linking to products I use where I get a small commission when someone makes a purchase.
0.5%
As you can see, I'm no shining example of a truly diversified income; however, now with an employee, we've been able to spend more time focusing on alternative income streams, and I intend to continue to get these numbers closer together in terms of their percentages.
7. Get comfortable talking about money with your clients
How do you expect to make more money if you're not asking for it?
I recently had two different opportunities pop up, and the prospects suggested that their budget was 1x. In talking with them to understand the full extent of the scope of work, I requested 2x and 2.5x respectively for the projects. More than double what they said “was their budget.” Both project proposals were accepted without push back… I probably could have charged more!
I was prepared to explain why these projects cost what they did — double what the clients said they had to spend — but I didn’t have to!
Be prepared to explain why your work costs what it costs. If your clients can’t afford you then you can reduce your scope of work, increase your timelines, or reduce the amount of revisions that you offer in order to meet their budget.
If you wanna help people out, open a charity, stop giving everyone a deal. You run a creative business, not a source of discounted and donated services. Don’t be afraid to run your business as such!
Take the time to create some spreadsheets and understand what your rates are, and understand how much wiggle room you have. Learning what you're worth, how much something should cost, and how flexible your pricing truly is will go a long way.
It’s not easy — we’re still dialing in this process every day.
8. Get organized
My brain is an ADHD rats nest. Organization is hard. But I’ve learned that the better I am at organization, the better off my business is.
I had a client from 3 years ago reach out for a file the other day. I was able to find the file and send it over in less than 1 minute. This should be the case for everyone with a creative business.
Your folder and file structure should be meticulously organized so that you can ALWAYS find what you need with ease. Doing this will save you huge amounts of time, headaches and money in the long run.
9. Setup processes and automations
Any task that is annoying or repeated should be addressed. To continue to do the same thing over and over again and expect different results is the definition of insanity — someone famous said that, at some point. I think.
New apps, programs and plugins are constantly coming out, and the better you are at using them, the more time you'll save, the more money you can make.
These are some of the best apps and plugins to help graphic designers run their businesses efficiently. I personally use apps like Calendly to schedule meetings and features like Templated Emails to help my business run more efficiently, allowing for more profitability.
10. Learn to roll with the punches
Working for yourself is wild. You technically have the ability to do whatever you want. On the other hand, you also have to do everything.
There will be ups and downs— I once made $62k in one month! I've also had months where I've made $0. Part of this is due to where billing and invoicing cycles landed, but it really highlights the ups and downs of self employment.
A pandemic, a broken computer, someone quitting, a client dropping you, a project not going as planned — things will ALWAYS be going wrong. But, sometimes the failures are what help you succeed. Set your expectations correctly: you should expect for things to go wrong. Setting your expectations in this way allows for any unwanted surprises to merely be part of the expected process.
11. Have fun and be you!
Your personality, how you present yourself and your soft skills can be worth more than you realize. Be you, don’t be bashful, and be proud of who you are. You are unique, and that’s valuable! ‘Nuf said.
12. It really is not about being the best
I saved this one for the end, as I feel it's hugely underestimated.
Many creatives feel they can't achieve their goals because "they're not good enough."
Newsflash yall: someone is ALWAYS going to be better than you. AND THAT’S FINE! At the same time, I can assure you that there is someone far less talented than you and I making far more money than both of us — combined!
As noted in #4, it's important to master your craft: understanding the ins and outs of your business, industry and craft, but that doesn't mean that you need to be the best.
There are generally 3 qualities that people look for when it comes to hiring (full time or contractors):
Be enjoyable to work with: be fun, engaging, professional and accommodating
Be on time: be on time, with deadlines, projects , meetings, etc
Be proficient: be good at what you do. Again, this doesn’t mean best. Be able to execute what you say you will, do so professionally, and do learn to work quickly.
If you can deliver on any of 2 of these 3, you’re set.
If you were wondering how to grow a successful graphic design or creative business, these are 12 of the best things that you can do!
Cheers,
Adam
