The Entrepreneurial Spirit

The Entrepreneurial Spirit: Julie Cavanaugh and The Road to Design Matters

One of the key components of the American dialogue in recent years is the fervent praise of the small business owner. These gritty entrepreneurs are lauded by sitting presidents, candidates, congressional representatives, and the workaday patrons that frequent their businesses for their vision, drive, and ambitious undertaking. 

The praise is, more often than not, rightfully earned. In these competitive waters, to wrangle the financing, complete the paperwork, and understand the actual regulations and legal necessities required to merely open a small business is an achievement in itself. To remain open and become successful and profitable requires Herculean effort. To sustain a small business in the grip of economic downturns and a global pandemic elevates many of our small business owners to saint-like status.

Yet, few of us know firsthand the daily and weekly struggles of the small business owner. We think we know intuitively what an important role these folks and their ventures play in our economic and civic life (small businesses account for 50% of the US GDP, see 2020 Small Business Statistics).  Most small business make it past the first year, but statistics show only 50% of them make it past five years. 

So what is it like to walk in their shoes?  To face the daunting tasks of building something from nothing.  The need to acquire the ingredients - a location, equipment, knowledge, clients, cash, and take on the challenge of every day putting yourself out there?  To sometimes sail through the eye of a storm and come out the other side because there can be hardships and challenges you don’t expect.

Julie Cavanaugh, Principle and Owner of Design Matters, knows firsthand.  As a renowned and highly sought after Certified and Licensed Interior Designer with decades of experience and bruises to show for it, Cavanaugh has seen it all.  Difficult times such as the 2008 crash, changing business conditions, new technologies, changing ideas, business partnerships, challenging clients, and the Covid shutdown. Through all of this, she has persevered - and thrived. 

“As a businesswoman and an entrepreneur, you have to celebrate victories large and small,” says Julie. “You have to be tough when things get slow, or the tide moves against you.  Making decisions about employees, spending, client projects, direction of the business, new ideas, or even when you’re going to grab a bite to eat.  But it’s your passion and conviction, and the clients projects you’ve developed and executed that, when things get dark, keep you going.”

“The first company I founded fell on rough times following the market crash of 2008,” says Cavanaugh. “The design industry was hit hard. It was a struggle for everyone during that period.”  

Not only was the economy affected, but Julie discovered that her then business partner had been performing installs and contractor work without the required updated licensing, signing and authorizing documents on behalf of the company and clients. 

“That was not my lane.  I handled design and project management.  I was shocked when it came out.  You think your business partner has the best interests of the firm and their reputation as a guide.”, says Julie. “It was a betrayal, especially when he subsequently filed for bankruptcy, left the business rather abruptly avoiding any consequences, and fled the area.”

It got worse.  A disreputable client with a home remodel project in Saratoga, CA had come forward regarding a dispute on pricing a partner contractor had submitted for kitchen countertops.  The client began threatening legal action against this contractor. This client had shown a history of litigation on their projects, something that was only discovered later.  However, while on this project, which was an extensive home remodel, several other contractors were threatened as well and had money extracted from them for work already inspected, accurate and complete.  Making matters worse, it was discovered this client had a family history of serious felony charges and predatory behavior stretching back decades. 

“It turned out this client was in the habit of disputing work and products to get work done for free,” says Cavanaugh.  Many of the professionals on the job, including Cavanaugh, paid out-of-pocket in an attempt to appease the client. 

“You want to fight,” she says after a long pause.  “You want to fight with everything you have because of your passion for your craft, your commitment to doing business with integrity, and because you don’t want anyone taking advantage of you.  This client asked me to lie about another professional on the project to get what they wanted.  I decided to fight.”

That fight was not a skirmish. It was a battle.

“The legal system does work more effectively for those with the means to sustain the fight financially.  Who can hold out the longest and wear the other side down,” says Cavanaugh.  “When the facts about this family and their history began to rise to the surface, me and my family decided to put as much distance between us and the problem as possible.  That family put me directly in harm’s way and my safety was at risk.  Particularly when we found out a family member who was occupying the home during our project, unsupervised, while myself and female staff members were constantly on site, had been recently released after years in prison for drugs, rape, and impersonating a government official. In the end the legal system caught up to the truth, and we are thankful for that.”

Legal entanglements, whether for false claims, poor practices, or just silly misunderstandings, can be the death of a small business due to the time, mindshare and costs associated with the battle.

Cavanaugh parted ways with her former partner, shut down their firm, and reopened with a reimagined, rejuvenated company.  Now with nearly 25 years of experience creating inspired interiors, Design Matters sits at the forefront of exceptional design.

“Things like this can take years off your life and end your business,” says Cavanaugh.  “I wasn’t going to let that happen.  I love what I do.  It brings me so much joy to design great spaces for my clients, I wasn’t going to let a failed partnership and a couple of seasoned predators rob me of my joy, my calling.” 

While Cavanaugh has been able to reinvent her business and stay the course, the events of the past still sting.  They also demonstrate the will and desire to follow your path and continue to beat the odds of small business statistics.

“We’ll meet a great client and begin dreaming with them, and get really excited about the project, but sometimes there are questions about the former business or something that was inaccurately reported”, pulling Julie back to the past.  Julie speaks freely and passionately always taking the high road about the past events.  “It’s frustrating.  You hold your head high, knowing you did the right thing.”.   

Design Matters has grown to four locations.  After 6 years of working in the western mountain region, flying back and forth to work on client projects, Jackson Hole WY opened this past year.  As the business built its reputation and client base, so too did the amount of work, running several hundreds of projects annually, working with successful business partners along with elite materials, cabinets, furniture, and fixtures vendors. 

Success is being a trusted and valued teammate to these providers, but even more so to the homeowner who gets the advocacy that comes out of Julie’s unique style, ability, and commitment to their vision.  Small businesses like Design Matters build their reputation and success on the results of these projects.  Setbacks, problems, troubles, and in the end “fixes that make the problems go away” are the foundation for being on the high side of the statistics and being in business for as long as Julie Cavanaugh.

In the end, that’s likely what sustains entrepreneurs like Julie Cavanaugh—the internal engine, the syncopated ticking of a heart fused on calling, desire, and drive. The willingness, the grit to not give up may be a specialized skill of the small business owner.  It’s not optional, it’s essential.

By Bradley Moore