How can I tell whether an interior design studio’s referrals come from builders or past clients?
Ask the owner to trace every project from the last few years back to its first contact. Sort them by source: builder, past client, friend of a client, or advertising. Then call a few of each group yourself, with the owner’s consent, to confirm the story.
Start with the project list, not the owner’s summary. Ask for a simple sheet showing each job, how the client first arrived, and who introduced them. A studio that says “word of mouth” should be able to name the person behind each mention. Vague answers usually mean nobody tracked it.
Builder referrals deserve a closer look because they tend to hang on one relationship. Ask which builders send work, how long each has done so, and whether the connection runs through the owner personally. If one builder supplies much of the pipeline, find out what happens when that builder retires, changes suppliers or starts an in-house design service. Past-client referrals are usually steadier, but check that the repeat clients are still active and not just old names on a mailing list.
Ask whether builders receive anything for sending work, such as gifts or fees, and whether that would continue after a sale. Look at the inquiry inbox and the website contact form for a few months to see which sources show up unprompted. Finally, ask to speak with one or two builders and a handful of former clients, with the owner’s permission, before you rely on the pipeline.
Key takeaways
- Trace each project to its first contact before accepting any claim about where work comes from.
- Find out whether builder relationships belong to the studio or to the owner personally.
- Speak directly with some referrers, with the owner’s permission, before relying on the pipeline.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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