1. ID 422 Business Procedures and Public Relations in Interior Design

2. What is Bu Assets = Liabilities + Equity Businesses usually own assets. This equation is also the basis for the most basic of accounting reports, the aptly named Balance Sheet. A balance sheet reports what a business owns (assets), what it owes(liabilities) and what remains for the owners (equity) as of a certain date. This equation must always be in balance. Always keep in mind the teeter totter illustration shown above.

3. After graduating Interior Design, what are your Key Decisions to Make? What is your Ideation? Ideation is the creative process of generating, developing, and communicating new ideas, where an idea is understood as a basic element of thought that can be either visual, concrete, or abstract. Ideation comprises all stages of a thought cycle, from innovation, to development, to actualization. As such, it is an essential part of the design process, both in education and practice.

4. What business should I be in? Shoes: can it fit snugly? You must ask questions and give answers to them. Trim down the list of possibilities to a manageable few. Long lasting and fundamental basis in doing business is DELIGHT. Something you enjoy. Importantly it must lead to self-development or a development of certain desirable human qualities that are latent in you. What do you possess? TALENTS. Public relations? Selling? Tinkering with machines. Do you have the training? EXPERIENCE. The easiest route for some people – it is edge of competency in one way or another with companies they used to work for. Businesses involves considerations. We develop a checklist of questions to ask.

5. Are you in the right place for interior design? Answer these: 1.How important is interior design to me? 2.What kind of lifestyle do I want to have? 3.Do I have the creative abilities to become a successful designer? 4.Am I willing to spend the time and money required for the formal training? 5.How much time do I want to devote to my work? 6.In general, do I like the people in the field enough to work with them? 7.Do I have the personality to work with any kind of client? 8.Do I enjoy planning and organizing? 9.Am I self-disciplined? 10.Am I self-motivated? 11.Do I have more than average physical and emotional stamina?

6. Business INVOLVES Interest Talent Training/Experience Profitability Growth Government Support

7. What is Business? What is the Nature of Business? Business is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society’s needs When a consumer calculates the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the cost. If businesses did not create value, that is, if they did not meet a customer’s unsatisfied need, they would cease to exist.

8. Two Types of Businesses: 1. Which comprises the vast majority of businesses in the world today, exists to make a profit. 2. Type of business does not include making a profit among its goals.

9. Profit and Loss Profit is normally described as the difference between the business’ revenues and expenses. So what are revenue and expenses? Simply put, revenue is the money generated by a business from selling goods or services. If a company sells baked goods, for example, its revenue would be calculated by the total number of baked goods sold. Expenses, in contrast, can be described as the cost of selling those goods or services. Typical expenses for businesses include things such as rent, utilities, and employee salaries.

10. A company is profitable only when its revenues are greater than its expenses. Like for-profit businesses, not-for-profit businesses have revenues and expenses. When their expenses exceed revenue, not-for-profit businesses have losses. When their revenues are greater than expenses, however, not-for- profit businesses do not take a profit; instead, they put the money back into the company.

11. Your place in the Interior Design Field. Five Traditional Designer-Client Relationships – Pure Designer – professional design services – Agent – actor for the client’s behalf – Merchant – selling merchandise. procure and sell merchandise – Employee – paid salary plus commission(in retail stores, client purchases – designer services are added or offered for an extra fee) – Contractor – he employs workers to do construction services. Working Styles – Working Alone – Team Work – Design Associate

12. Interior Design Field Specializations -Acoustic Design -Administrative Building Design -Airplane Design -Amusement Park Design -Apartment/Condominium/Co-Op Design -Aquarium Design -Art Consultant -Art Dealing -Audiovisual Center Design -Auditorium Design -Barrier Free Design for the Physically Limited -Bathroom Design -Beauty and Barber Shop Design -CADD Specialist -Carpet and Rug Design -Ceramic Tile Design -Closet Design -Code Safety Design Law Specialist -Color Consultation -Commercial Design -Computer Office Design -Construction Supervision -Corporate Campus Design -Corporate In-House Design -Country Club Design -Dental Office Design -Design for the Children -Design of In-House Medical Care -Design for Vision and Hearing Impairments -Display/Exhibit Design -Energy Conservation Design -Ergonomic Design -Facility management -Factory/Production Consulting -Forensic Consulting -Furniture design -Geriatric Design -Graphic Design/Signage Graphics -Greenhouse Design -Hard-Surface Flooring Design -Hardware Design -Health Club Design -Historic Preservation and Adaptive Reuse -Hospital Design -Hospitality Design -Interior Landscaping -Journalism -Kennel Design -Legal Office Design -Library Design -Licensing -Lighting Design -Lighting Fixture Design -Liturgical Design -Manufacturer In-House Design -Manufacturer Representation -Marine Design -Marketing Specialist -Medical Center Design -Medical Office Design -Modular Prefabricated Design -Model Home Furnishing -Mortuary Design -Mural Painting -Museum Design -Office Design -Park Design -Passenger Train and Bus Design -Party and Ball Design -Photographic Set Design -Plumbing Fixture Design -Prison Design -Product Design -Product Display -Product Evaluation -Product Marketing -Professional Organization -Project Management -Psychiatric Care Facility Design -Public Relations -Purchasing -Real Estate Development -Real Estate Upgrading -Rendering -Residential Design -Restaurant Design -Restaurant Kitchen Design -Retail and Specialty Selling -Retail Store Design -Security Systems Design -Set Design -Shop at Home Services -Shopping Mall Design -Showroom Design -Spaceship and Rocket Design -Solar Design -Stadium and Arena Design -Storage Design -Tabletop Display Design -Teleconference Center Design -Tenant Development Services -Textile Design -Training Center Design -Transit Center Design -Turnkey Services -Underground Habitation -Vacation Home Design -Wallcovering Design -Wall Finishes -Window Treatment Design -… and so on

13. Organization and Structure of Business All businesses, no matter their size or the products or services that they may sell, fall into one of three basic kinds of organizational structures. Sole-Proprietorships Partnerships Corporations

14. SOLE PROPRIETORSHIP A sole proprietorship is a business owned and managed by one person, but do not be confused by that description. Just because a business has one owner does not mean that it has one employee. “Sole proprietorship” is a term that describes a business’ ownership structure. It does not account for employees, assets, or revenue. Sole proprietorships can be large or small in scale and include a vast array of businesses. Some examples of sole proprietorships would be a furniture store, a restaurant, or a certified public accountant’s home-based private practice. As a sole proprietor, you can work for yourself and be your own boss, which means that your successes or failures belong to you.

15. PARTNERSHIP A partnership is a form of business organization where two or more people own a business. This type of business is similar to a sole proprietorship in many ways and shares many of its advantages and disadvantages. One of the biggest advantages of a partnership over a sole proprietorship is the increased ability to generate capital for the business. When two or more people combine their assets, they have a stronger ability to gather or borrow money. Another advantage of a partnership is the ability of the partners to rely on each other’s strengths, especially if they are lacking in other areas. If one partner excels at marketing and sales, for example, he or she could rely on their partner whose specialty may be in accounting or operations or some other area of expertise. Unlike a sole proprietorship, ending a partnership takes a lot more than simply saying, “I’m not in business any longer.”

16. CORPORATION If a sole proprietorship has one owner and a partnership has two or more owners, how many owners do you suppose a corporation has? Certainly the number of owners in this form of business organization would be higher than those in a partnership, but what number do you think that is? When does a partnership cease to be a partnership? Can a partnership have ten partners? Can it have 20? How about 40? Do you think there could be a point where the number of partners in a partnership becomes too unmanageable? How difficult do you think it would be to make important decisions when multiple partners have equal stakes in a company? Although it may be possible to form a partnership with dozens or even thousands of equal partners, the demands of running such an organization would be too great. After all, getting two people to agree on something is one thing, but getting ten or more to agree is something different. This is where corporations come into play. When a company incorporates, it legally changes the status of its owners. In a corporation, the owners still are entitled to the company’s profits, but they no longer have the same voice in the day-to-day operation of the firm. Corporations are legally recognized as legal entities that are separate from their owners and that have their own rights, privileges, and responsibilities.

17. Comparing the Three Forms of Business Organization Sole Proprietorship Advantages – There is only one boss and that is you – Less start up costs and much easier to set up – Tax savings (profits are taxed as personal income) – Not highly regulated Profits are distributed to one person and are not shared Disadvantages – The sole proprietor takes on many roles and responsibilities in the operations and may not be qualified to do so – The length of time in operations is the length of time the owner is living – There are more limited financial resources – Liability (business debts are also personal debts, which belong to the owner)

18. Comparing the Three Forms of Business Organization Partnership Advantages – Additional financial resources may be available or easier to obtain – It may be easier to set up and establish this business – There may be more management skills and experience shared between the owners – The responsibilities are shared – Financial resources may be easier to obtain – Less regulated then a corporation – Tax savings (profits are taxed as personal income of the partners) Disadvantages – Conflict between partners may harm the business – Difficult to find the right partner – Disagreements may lead to one partner wanting to leave the partnership – Liability is shared; however, it is still unlimited

19. Comparing the Three Forms of Business Organization Corporation Advantages – Easier to obtain financial resources and there are additional means to raise financing by selling shares of the corporation – Higher Credibility – Ability to transfer ownership so the life of the business is continued – Limited liability (the corporation is liable for its debts, and the shareholders are not personally liable) – May have personal tax benefits Disadvantages – More difficult and more expensive to establish with more time involved – Possible conflict between shareholders and executives – Double taxation – Closely regulated with record keeping

20. Comparing the Three Forms of Business Organization Partnership Advantages – Additional financial resources may be available or easier to obtain – It may be easier to set up and establish this business – There may be more management skills and experience shared between the owners – The responsibilities are shared – Financial resources may be easier to obtain – Less regulated then a corporation – Tax savings (profits are taxed as personal income of the partners) Disadvantages – Conflict between partners may harm the business – Difficult to find the right partner – Disagreements may lead to one partner wanting to leave the partnership – Liability is shared; however, it is still unlimited

21. CORPORATE GOVERNANCE Governance is a term that describes the rules and processes by which an organization operates. The “governance” of sole proprietorships and partnerships is fairly straightforward—the owners of the business are the ones who make the decisions. Sole proprietors answer only to themselves, and the partners in a partnership determine amongst themselves how the company will be run. Corporate governance, on the other hand, is a much more complicated matter because of all the different stakeholders involved. Remember, in a corporation, the owners of the company are completely separate from the company itself. Although their input is important, they have no direct say in the day-to-day operation of the business. So, who is in charge of a corporation? The answer, like the business organization itself, is a little complicated. Corporations are actually governed by a board of directors, a group of executive officers, and the owners or shareholders of the corporation’s stock

22. Four most common executive positions in corporations Chief Executive Officer (CEO): The CEO is appointed by the corporation's board of directors and oversees the entire company. The CEO establishes the overall culture of the organization and makes hiring decisions for the senior management team. They are responsible for the success or failure of a corporation. Chief Financial Officer (CFO): The CFO is responsible for keeping detailed and accurate financial records for the corporation. The CEO and CFO work closely together to set the yearly and quarterly budgets, which are then shared with the corporation’s shareholders, who are all looking for a return on their investment. Chief Operations Officer (COO): The COO is responsible for production processes, quality, inventory, and manufacturing. The COO works to identify inefficiencies and then adjust and redesign work systems and processes to become more efficient and profitable. Chief Information Officer (CIO): CIO’s are responsible for the company’s information systems. The CIO is a relatively new executive position that was born out of necessity. In the modern business environment, information systems and technology can have a huge impact on a corporation’s bottom line, so it is the CIO’s job to govern this aspect of the business.

23. BUSINESS is an undertaking or venture for the primary purpose of making a gain or profit. Types of Business – Service Business: an undertaking is selling one’s service (rendering, cad, decorating) – Trading or Merchandising Business: buys and sells merchandise or goods in the same form at a profit (lamps, fabrics, tiles, furniture) – Manufacturing Business: buys raw materials and supplies to be processed and converted into another form of article or finished product (thread:textiles, silica:glass) – Investment of Finance Business: invests or lends money and collects the same with interest (banks, insurance)

24. Importance of Keeping Records Gathering, Recording and Classifying of Data to prepare a financial statement are done by the following process: – Manual Data Processing – Mechanized Data Processing (punch card systems) – Electronic Data Processing

25. TRANSACTIONS Value Received = Value Parted With Transactions are financial events encountered in the business. It is an exchange of goods or services for a certain sum of money. Every transaction, there is a value received and value parted with. Value is anything subject to pecuniary estimation. It may be represent money itself, property, services or rights. All business transaction are evidenced or supported by printed forms or documents. These are business papers (vouchers, receipts, sales order) furnish the information needed in recording the transactions TRANSACTIONSVALUE RECEIVEDVALUE PARTED WITH Brought an AutoCad 2013 Software on Cash AutoCad 2013 Software Cash Brought a Barcelona Chair on account Barcelona ChairObligation to Pay

26. 1.What is Business? Production and Distribution of Goods and Services with aim of earning profits under uncertain market conditions. 2.What is Marketing? Is critical for organic growth of a business and its central role is in creating, communicating, capturing and sustaining value for an organization. Marketing helps a firm in creating value by better understanding the needs of its customers and providing them with innovative products and services. This value is communicated through a variety of channels as well as through the firm's branding strategy. 3.What is Management? The guidance and control of action required to execute a program. Also, the individuals charged with the responsibility of conducting a program.

27. 4.What is Finance? Allocation of scarce resources over time under conditions of uncertainty. Optimization over time, Asset valuation, Risk management 5. What is Branding? Your promise to your customer. What they can expect from your products and services, and it differentiates your offering from your competition’s offering 6.What is Benchmarking? Comparative analysis on standards. Evaluation of business practices and procedures. Motivation to improve goals. 7.What is Public Relations? Management of information of the organization to the mass public. Promotion of services creating goodwill.