This Business of Light webinar reframed finance as a creative and strategic tool rather than a necessary evil. Led by Beth Nielsen, COO and former CFO of HLB Lighting Design, the session bridged the gap between design thinking and financial literacy, showing how every designer—regardless of title—can influence the health and longevity of a firm.

A core takeaway was that understanding financial fundamentals empowers better project decisions. Beth walked through the three essential financial statements—balance sheet, income statement, and cash flow statement—emphasizing how they work together to tell the story of a business. Designers were encouraged to view projects as mini income statements, where fees, direct labor, and overhead all contribute to success or risk.

The discussion highlighted several critical industry metrics, including gross margin, billability (utilization), realization ratio, backlog, pipeline, profit before bonus and tax, and average collection period. Among these, realization ratio stood out as a powerful tool for assessing project efficiency by comparing fees billed against the value of effort expended. Tracking this metric early and often allows teams to identify scope creep, staffing misalignment, or fee shortfalls before projects become unprofitable.

Equally important was the emphasis on accurate timekeeping as the foundation for reliable data. Without honest timesheets, utilization, realization, and future proposals become distorted. The session reinforced that financial transparency should be cultural, not punitive—used for mentoring, planning, and continuous improvement rather than blame.

Finally, the webinar underscored that financial awareness is not limited to firm owners. Designers at all levels can ask better questions, flag risks earlier, and contribute to healthier projects by understanding budgets, scope, and performance metrics. When design excellence and financial clarity align, firms are better positioned to grow sustainably while supporting meaningful, rewarding careers.