Trade Tales: Leanne Conger on Why There Is More Than One Way to Build a Budget

Podcast Information:

• Title: Trade Tales
• Host/Author: Kaitlin Petersen, Editor-in-Chief of Business of Home
• Episode: Leanne Conger on why there is more than one way to build a budget
• Release Date: September 11, 2024

Introduction

In the latest episode of Trade Tales, Kaitlin Petersen engages in an insightful conversation with Leanne Conger, a celebrated interior designer marking her firm's 10th anniversary. Leanne shares her journey of building a successful design firm, Chroma, highlighting the various strategies and mental shifts essential for nurturing creativity, achieving financial stability, and defining personal success in the competitive interior design industry.

Founding of Chroma

Leanne Conger's passion for design was evident from a young age. Growing up in a small town in Pennsylvania, she initially aspired to be an architect but later found her calling in interior design. This led her to move to New York, where she started working for a design firm. Eventually, a significant life decision brought her to San Francisco, where she co-founded Chroma with fellow designer Alexis Tompkins in 2014.

Leanne Conger [02:48]: "I grew up in a very small town, Pennsylvania... I wanted to experience something different, something bigger."

The partnership with Alexis was pivotal, as their complementary strengths—Leanne's focus on operations and Alexis's creative direction—laid a strong foundation for Chroma's growth.

Business Transitions and Growth

Chroma's evolution can be divided into three major phases:

1. Initial Establishment (2014-2016): Launching the LLC and focusing on securing the first clients through relationship-building with architects, contractors, and other designers.

   Leanne Conger [07:14]: "In the early days, it was all about those connections and relationships with architects, general contractors, and other interior designers."

2. Focus on Residential Projects (Year 2-3): Shifting focus exclusively to residential projects to streamline operations and build a robust portfolio.

3. Marketing and Brand Development (Year 6): Enhancing marketing efforts by revamping the website, engaging in social media, and strengthening brand presence to reflect Chroma's unique creative vision.

   Leanne Conger [15:49]: "We doubled down on the idea that if we didn't have 12 projects but we only had four, how else can we show our potential clients and the industry who we are?"

These strategic transitions culminated in significant industry recognition, including features in Architectural Digest.

Team Building and Structure

Building a cohesive team was central to Chroma’s success. Leanne emphasizes the importance of team fit and organic growth through word-of-mouth hires. The firm maintains a modest team size of 15, including consultants, allowing for flexibility and maintaining a high standard of work.

Leanne Conger [29:35]: "Including our wonderful consultants that pop in, we're 15. It's modest, it's small."

Chroma employs a structure with team leads and senior designers who manage client relationships and project execution. This setup ensures that each project is staffed appropriately based on its size and scope.

Operational Excellence

Leanne prioritizes operational excellence by fine-tuning systems and building processes that enhance the client experience. She underscores the importance of a mental shift towards anticipating client needs without overhauling daily operations.

Leanne Conger [31:11]: "This idea of customer service and going above and beyond does not require this seismic shift in what you're doing day to day. It just requires this mental shift towards thinking ahead or thinking beyond what's right in front of you."

Chroma adopts a client-centric approach by tailoring communication strategies based on clients' personality types—whether they are expressive, drivers, analytics, or amiables—to enhance engagement and satisfaction.

Budgeting Strategies

A significant focus of the episode is on Chroma’s innovative budgeting approaches. Leanne explains that Chroma employs not one, but two reliable methods for building budgets, allowing flexibility and client alignment.

Leanne Conger [38:24]: "If you have a number, where it's a little low... If you don't have a clue, there needs to be a next level of conversation."

By initiating budget discussions early, Chroma ensures projects are financially viable and align with client expectations. This dual approach—either building a scope to a specified budget or developing a budget line-by-line based on client inputs—helps in managing financial health while maintaining creative integrity.

Client Communication

Effective client communication is a cornerstone of Chroma’s operations. Leanne highlights the importance of active listening and adapting communication styles to meet clients' emotional and psychological needs.

Leanne Conger [36:31]: "Active listening goes such a long way. If someone is telling you something, repeating it back to them in a thoughtful way."

By customizing interactions based on personality types, Chroma ensures that clients feel understood and valued, which fosters a collaborative and stress-free design process.

Financial Management

Chroma’s financial strategy includes a mix of service time billing and material markups. This hybrid model allows flexibility in managing resources and ensuring financial stability.

Leanne Conger [42:08]: "In the beginning, we decided to do only service time and not material as a way to get into the market... we have to draw a line and we've had to draw that line."

This approach not only mitigates financial stress but also supports investment in creative projects that align with Chroma’s long-term vision.

Defining Success

For Leanne, success is an evolving concept that encompasses achieving personal fulfillment, maintaining operational efficiency, and fostering continuous growth. Success means having the opportunity to keep advancing, whether it's winning prestigious projects, expanding infrastructure, or enhancing team capabilities.

Leanne Conger [48:56]: "I think success means that we have an opportunity to keep going and to keep growing."

This dynamic perspective on success ensures that Chroma remains adaptable and forward-thinking in a rapidly changing industry.

Conclusion

Leanne Conger's journey with Chroma illustrates that building a successful design firm requires a blend of creativity, strategic budgeting, effective communication, and robust operational systems. By embracing multiple budgeting approaches and prioritizing client-centric practices, Chroma has secured its place in the competitive landscape of interior design. Leanne’s insights offer valuable lessons for designers aiming to balance financial stability with creative excellence.

Notable Quotes:

• Leanne Conger [00:02]: "This idea of customer service and going above and beyond does not require this seismic shift in what you're doing day to day. It just requires this mental shift towards thinking ahead or thinking beyond what's right in front of you."
• Leanne Conger [07:14]: "In the early days, it was all about those connections and relationships with architects, general contractors, and other interior designers."
• Leanne Conger [15:49]: "We doubled down on the idea that if we didn't have 12 projects but we only had four, how else can we show our potential clients and the industry who we are?"
• Leanne Conger [31:11]: "This idea of customer service and going above and beyond... just requires this mental shift towards thinking ahead or thinking beyond what's right in front of you."
• Leanne Conger [36:31]: "Active listening goes such a long way. If someone is telling you something, repeating it back to them in a thoughtful way."
• Leanne Conger [38:24]: "If you have a number, where it's a little low... If you don't have a clue, there needs to be a next level of conversation."
• Leanne Conger [42:08]: "In the beginning, we decided to do only service time and not material as a way to get into the market... we have to draw a line and we've had to draw that line."
• Leanne Conger [48:56]: "I think success means that we have an opportunity to keep going and to keep growing."

This episode of Trade Tales provides a comprehensive look into the multifaceted approach Leanne Conger and her partner Alexis Tompkins take in building and maintaining a thriving interior design firm. Their emphasis on strategic budgeting, tailored client communication, and continuous operational refinement serves as a valuable blueprint for aspiring designers seeking to balance creativity with financial and business acumen.