By Margaret Harrist
When people were forced to spend more time at home in 2020, many had a revelation: redecorating was way overdue.
It led to an unexpected business boom for the online interior design services company Modestwhich allows users to upload photos of their space, view 3D renderings of the possibilities, and work with a designer to refine the look and order furniture and decor.
“In previous recessions, consumer spending has fallen, so we thought it best to strap in during a tough year,” Modsy says. CEO Shanna Tellerman. “At the start of the shutdown, we decided to invest in fundamentals that would allow us to scale as we emerged from the pandemic, unaware that business was going to boom. »
One of those building blocks was a new financial system. “We had outgrown the accounting system when we started, as well as our in-house order management system,” Tellerman says. “You can’t get this far in business with patchy local solutions or early-starter software. But as you start to mature and scale, you need to focus on accounting principles and be able to present GAAP Financial Statements We saw that the reporting systems and flexibility provided by Oracle NetSuite would open the door to the next level of growth for our business.
By early 2021, Modsy had returned to a growth mode mindset, says Amanda Kwan-Rosenbush, senior director of finance and accounting at Modsy. “Part of the company’s growth planning included improving its data and back-office operations so that business leaders could make better-informed and faster decisions and make improvements to customer experience,” says Kwan-Rosenbush.
One of the key areas where Modsy needed a better understanding was understanding their profit margins and controlling everything related to it, including shipping costs.
“Shipping costs are a significant cost to us and are expected to increase for the foreseeable future due to the pandemic,” she says. “NetSuite will help us analyze whether we need to change carriers or rethink our routes and allow us to select the optimal shipping type for each product.”
This will be critical as the furniture supply chain continues to be disrupted. For example, many of Modsy’s furniture and décor partners, which include over 50 well-known retailers and suppliers, are experiencing long delays, especially for items shipped overseas.
In addition to better managing shipping costs, Modsy wants to have a clear idea of the right mix of products it sells and the optimal price, says Kwan-Rosenbush.
“With NetSuite, we will be able to analyze and understand more elements of our revenue, operating expenses and cash flow in real time,” she says. “As a business, we need a single source of truth. Knowing that we have accurate and centralized data and that the presentation can be customized for management or any team to access and understand will be a huge advantage. »
Modsy’s management team will have increased visibility into the health of their business in real time. With more timely information, the business will be able to adapt much more quickly to changing business conditions, from evaluating and adjusting promotions to adapting to supply chain issues.
For CEO Tellerman, it’s all part of the vision she had when she launched the company in 2015.
“I started Modsy after moving into a new house in San Francisco and struggled to design the interior and find the right furniture,” she says. “I just couldn’t imagine what everything I saw online in my space would look like, even though I have a background in 3D graphics. I knew a lot of people had this challenge.
The company, which started with a small team of interior design and user experience experts, has now raised over $80 million in funding and offers a range of design packages, ranging from one-piece to large and complex projects.
Users can go to the Modsy website and take a quiz about their style preferences, upload photos of the pieces that baffled them, then work with a Modsy designer to create a custom design that matches their style, space and their budget.
“We are constantly refining this artistic idea,” she says. “From an interior design perspective, we want to be able to get the design right the first time. On the business side, we want to optimize our logistics and supply chain process even when the world is upside down, and upgrade our financial systems and operating infrastructure.
The company is moving from its basic accounting systems and in-house order management application to NetSuite ERP.
“What we do behind the scenes is just as important as what our customers see and feel every day,” she says. “We seek to create a system that gives us the data and information we need to make the best decisions every day, which ultimately creates a better customer experience. We’re really excited about the reporting capabilities and analysis tools we get with NetSuite, and we’re looking forward to unleashing the power of these systems this year.