This study is about the impact of early design decisions on the heat demand of a small residential building. Heat demand is a significant part of the energy use of residential buildings in the Cold regions. Reducing this demand will reduce the strain on national energy resources and even allow buildings to become energy neutral or independent with the addition of energy supply and storage systems. Based on a case study building of apartments, the simulation study explores the impact of several individual design aspects: insulation, orientation of glass facades and building shape. Furthermore, the balcony facade of the case study building is compared to a plain facade and a sunspace (balconies with a glass facade) in terms of heat demand and comfortable use (operative temperature). Based on these studies a final set of design guidelines is developed for designers interested in designing small residential buildings with low heat demand.