business plan on interior decoration

Tips for a Simple Interior Design Business Plan to get you Started

So you’ve decided you’re going to start your own interior design business. Congratulations! But have you thought about putting together a business plan for your new venture? 

Writing down what you’re trying to achieve, the services you’ll offer, and other important factors will help you streamline your business strategy, keep you focused on your goals, and (perhaps most importantly) make sure your idea makes sense.

It’s a good idea to create a business plan before investing money in your new business; that way, you’ll have a better understanding of how it’ll make money and whether it’s likely to be profitable.

Throughout this guide, I’m going to explain the importance of having a business plan for your interior design business and take you through what information to include.

Here’s to a well-planned and successful interior design business!

What's in the article

Why do I Need an Interior Design Business Plan?

There are various benefits of putting together an interior design business plan before going ahead with your new venture, but it really boils down to two factors:

• Helping you understand your business
• Helping you explain your business to others

Helping you Understand your Business

Before you do anything, you need to get your thoughts in order to ensure you have a viable business idea. Writing things down usually helps them make sense, and it’s no different with a business plan.

Your interior design business plan will help you:

• Summarise your business idea:  What you’re trying to achieve, what services you’ll offer, how you’ll operate etc.
• Identify goals and potential problems: Set out goals and how you’ll achieve them, and identify any risks and how to overcome them.
• Plan your business operations: From sales and marketing to onboarding staff.
• Get your finances in order: Estimate your revenue, business expenses, and any financing you’ll require to get your business off the ground.
• Pinpoint your priorities and identify any gaps in the business 

Helping you Explain your Business to Other People

A business plan can also help you convince other people to back your business. This includes:

• Financial assistance: If you’re planning on getting financial backing from investors or securing a bank loan for your interior design business, you’ll need to present a well-formed business plan.
• Employees and suppliers: Potential employees and suppliers are unlikely to work with a business if they don’t know what it does. A business plan will help you explain this so you can onboard staff and suppliers before getting started.
• Explaining your business: Writing down a business summary will help you better explain your business to other people, so next time you’re asked what your business does (or will do), you won’t fumble over your words.

Interior Design Business Plan Top Tips

Before writing your business plan, keep the following points in mind:

Write it for an Outsider

Write your business plan as if the person who’s reading it knows nothing about you, your business or the interior design industry. This will likely be the case when it comes to getting investment.

Keep it Concise

Don’t go into too much unnecessary detail. Keep it to the point and focus on the sections listed below. After all, you want people to read it!

Be Realistic

Avoid skimming over potential risks and problems, and be honest and realistic about finances. Being over-optimistic might get you the loan you’re after, but it could lead to problems in the future.

Know your Market

Make sure to include market research, details on competitors, where your business fits into the interior design market and what makes it different to what’s already out there.

What to Include in your Interior Design Business Plan

When it comes to writing your business plan, try to use the following structure: 

Executive summary

Elevator pitch

About the business owner

Products and services

Business structure

The market: Customers, competitors and market overview

Section 7: 

Sales and marketing strategy

Business operations

• Business expenses

Section 10: 

Financial forecasts 

Let’s go into a bit more detail on each section:

1. Executive Summary

An executive summary is essentially a summary of your interior design business plan, so it’s best to write this section last. It should include key points, so if someone were to only read this section, they’d still have an understanding of your business and what you’re trying to achieve.

Your executive summary should include:

• Business name and type of business (e.g. sole trader or LTD company)
• A summary of the services you’ll offer and/or products you intend to sell
• Mission statement: What is the aim of your business? (e.g. become the number one interior design service in your area)
• Goals and objectives: It’s good to include short, mid, and long-term goals. (e.g. generate [amount] of profit in the first year)
• Financial summary: Financial goals and any secured or required funding 
• Keys to success: How will you achieve your objectives? (e.g. provide high-quality services and first-class communication)

2. Elevator Pitch

An elevator pitch is a short summary of your business. It’s what you’ll tell people when they ask what your business does. Writing down an elevator pitch will help ensure you have a clear idea of your business direction and enable you to give a concise, well-formed description when you explain your business to others.

It should include:

• What your business does
• Who your target audience is
• Your unique selling point (USP): What sets you apart from competitors?

3. About the Business Owner

Add a bit about yourself, why you want to start an interior design business, and any experience you have in the industry. Things to cover include:

• Who are you? 
• Why do you want to start this business?
• What experience do you have?
• Relevant qualifications and training
• Relevant hobbies and interests

4. Services you’ll Offer

How is your business going to make its money? Explain the different interior design services your business will offer and whether you’ll also sell any physical products. 

• A list of services you’ll offer as an interior designer
• Any products you’ll sell
• Plans for future products and services

5. Business Structure

Will you work as a sole trader and hire contractors to help, or will you hire employees? Do you have a network of suppliers in place to help you carry out your projects? Include information on your employees, contractors, suppliers, and their roles in this section:

• Whether you’ll hire full-time employees or outsource to contractors
• Job roles and responsibilities
• List of suppliers needed to help fulfil projects

6. Market Summary

The market summary section of your business plan should include information about the current market and market trends, your target audience, and competitors. This section will not only help outsiders understand your target market, but it’ll also help you understand how best to advertise your products and services.

Your market summary can be split into a few sections:

Target customers

• Target customer profile: Who are your target customers?
• Who are you selling to? (e.g. businesses or individuals, residential or commercial)
• Why do they/will they buy from you?
• Any already confirmed orders 

Competitors

• Who are your competitors?
• What’s your USP? What makes your business different? 
• SWOT analysis: Strengths, Weaknesses, Opportunities and Threats 

Market research

• Size of market
• Market trends
• Field research (Ask prospective customers what they think about your business idea)

7. Sales and Marketing Strategy

How will you reach your target customers, and what channels will you sell your products through? What price point will you sell your services at? The sales and marketing strategy section should cover:

• Sources of income: How will you sell your products and services? (E.g. online services, products, commercial and residential projects)
• Marketing channels: How will you advertise your products and services?

 (E.g. word of mouth, social media, direct mail, trade shows)

• Pricing strategy: What price point and why?
• Are you likely to get repeat customers or retainer clients?

8. Business Operations

This section covers the day-to-day running of your business, what’s involved in each interior design project or the production of any products you sell, where your business will operate, what equipment and insurance you’ll need, etc.

• Production/projects: How long will it take, how much will it cost you?
• Payment: How will customers pay? (e.g. upfront, deposit, payment plan)
• List of suppliers: Who are your suppliers?
• Business premises: Where will your business operate from?
• Equipment needed: What equipment do you need for your business to operate?
• Licenses and insurance: What licenses and insurance do you need for your business to operate?

There are various expenses involved in running a business, so you’ll need to list these. Your expenses will include things like:

• Business premises
• Employee/contractor wages
• Merchandise production
• Loan repayments
•  Financial Forecasts 

Financial forecasts can be tricky if you’re just starting out, but try to put together a realistic calculation for the next three to five years. Essentially, you need to prove that your business will survive and become profitable. If you’re a small business or startup, speaking to an adviser at your bank may help with forecasting.

Your financial forecasts should include:

• Historical sales figures from the last three to five years (if applicable)
• Sales forecast: How much money you expect the business to take
• Profit forecast:  How much profit you expect the business to make
• Monthly cash flow and business bank balance
• Balance sheet: Your business’ assets, liabilities and stockholders’ equity (smaller businesses may not require this

As you can see, a lot goes into starting your own interior design business. And while creating a business plan might seem like a long process, it’ll definitely help you in the long run. 

About The Author

Freddie Chatt

Related posts, 15 incredible interior design coffee table books that will never go out of style, the definitive guide to space planning in interior design, what is a mood board and how to create one, scandinavian interior design: everything you need to know.

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Starting an interior design business is a popular move for people who study the craft of creating a space that's both functional and aesthetically pleasing. The combination of expressing yourself and executing your vision for clients is tough to pass up, despite the obstacles that small business owners often face.

Being successful in the field of interior design requires more than just an eye for decoration, though.

Starting with the fact that interior designers require a degree from an accredited university (those without a degree are interior decorators ), they also need extensive knowledge of the materials, software applications, and structural and health codes required to build out a home or business. There is also the matter of business acumen, the ability to balance your artistic expression with the needs and wants of the client, and the time and paperwork it takes to actually start a business.

“Great design is the marriage of form and function in a balanced and harmonious whole—and staying on budget while doing it,” says Beverly Solomon of Beverly Solomon Design.

“So yes, the artist in me can often want to do things that are more challenging, out of the box, and often expensive than the client is looking for, but listening in order to understand what the client hopes you can achieve is the major skill you must develop.”

Solomon’s international firm is based just outside of Austin, Texas, on a historic farm where she lives and works with her husband, artist Pablo Solomon. She self-financed the creation of the business after working in sales and marketing for various big-name companies, including Ralph Lauren and Revlon.

Like how each interior design business has a different focus, clientele, and model—every state has different rules and regulations for opening a small business. If you've been wondering how to start an interior design business of your own, read on for the steps you'll need to follow.

How to start an interior design business: The ultimate guide

As we mentioned, setting up an interior design business is a balancing act. As a creative, your ultimate goal is to create a business where you can use your eye for design on a daily basis. But before you can pursue your passion in the form of a legal business, you'll have to complete some tasks. Let's take a closer look at what you need to do to open an interior design business.

Step 1: Choose your business name and structure

Once you're ready to start an interior design business, you'll first need to choose a business name and decide what kind of business entity you want to use. It may be tempting to put one or both of these things off, but they will be necessary to continue with the following steps of starting an interior design business.

Luckily, most interior designers use their own names as their business name, which may increase the likelihood that your name is available for use. Either way, you will want to check the availability of business names in the state where you'll be operating your interior design business, which can typically be done through the website of your secretary of state.

After confirming that the name you want is available, you'll likely be able to reserve this name for a specified time period while you gather the other items necessary to officially register your business.

At this stage of setting up your interior design business, you'll also need to choose a business entity, such as a sole proprietorship, LLC, or corporation. The business entity you choose will affect your company's business taxes, as well as the level of risk you're exposing yourself to if any legal issues arise.

It will also depend on whether you're starting your interior design business yourself or with a partner. We recommend consulting a business attorney if you're unsure which entity to choose, as they can guide you in the best direction for your specific needs.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Prepare and plan for your interior design business

The next step in starting an interior design business is to create your business plan. A business idea is just that, an idea, but your business plan shows exactly how you plan to take that idea and turn it into a profitable business. Not only is a business plan a vital tool for you to use as a roadmap when your interior design business is starting out (and continuing to grow), but it's also necessary if you plan to seek funding, as banks or investors will want formal documentation that you have a plan for how to turn a profit.

As such, your business plan will include everything from an overview of your company's leadership team and legal structure (which is why we chose a business entity in Step 1) to a market analysis and plan for how you'll market your own company, rundown of the exact types of services you'll offer as an interior designer, and (most importantly to potential investors) a financial plan with at least three years of financial projections.

If this is your first entrepreneurial endeavor, a business plan can seem overwhelming. The good news is you can use a business plan template or business plan software to make the process easier and ensure you're not leaving out any important information.

One part of the business plan for your interior design business that you can really build out is your plan for supplies, customers, and how you'll generate hype around your new interior design business so you can turn a profit.

Tips to connect with suppliers, customers, and media outlets

Interior design is an industry-driven by connections. You’ll need them to find your clients, to market yourself, and to establish fruitful relationships with suppliers of materials and furniture. And this is a key part of planning for your interior design business.

“I began my business by basically selling the art of my husband to high-end clients. When they began asking our design advice on various projects, I saw an opportunity,” says Solomon. “I decided that I wanted to use my expertise, experience, and connections from working with the major designers to start my own businesses.”

Solomon says that creating connections with the media has helped her in everything from marketing her interior design business to letting her set the price point.

“In art and design, you're selling your abilities, but what really sets the price you can get is your name recognition,” she says. “I knew from my days in sales and marketing that the place to focus was on name recognition. So we concentrated on building relationships with those in the media who could put our names out there.

“One of the secrets to our success has been working with writers, publishers, photographers, filmmakers, and producers to create symbiotic relationships that have resulted in their getting good information, interesting stories, illustrations, photographs, connections, and advice. In return, we've gotten literally hundreds of thousands of dollars of free publicity and built strong name recognition.”

Another common way to leverage connections is to form relationships with manufacturers in order to get the best deals on products or when buying in bulk. If you find yourself drawn to a company that builds in a similar style to your own, you’re in good shape—but don’t hamstring yourself, Solomon advises.

“Teaming up with various furniture stores and manufacturers can be as tricky as it is rewarding. Make sure that you're finding a good match, and not just a deal out of desperation. Pushing products that are absolutely the best for your client is a good thing, but pushing crap can ruin your reputation,” she says.

Thinking through your own strategy to form connections and market your interior design business should be included in your business plan, both for your own reference, as well as to show potential investors you're serious about your business.

Step 3: Register your interior design business and get an EIN

The next step in starting your interior design business will be to use the name you secured in Step 1 and register your business. The registration process varies in each state, as does where and how you'll register your business .

Some states will allow you to register online while others require you to submit forms via mail. In most states, you'll likely deal with the secretary of state's office, while other states specifically have branches of government for small businesses.

You should also register your interior design business with the IRS and apply for an employer identification number, or an EIN. This can take a matter of minutes online and you could be approved right away.

There are a number of benefits of getting an EIN, even if it's not required for your business. For instance, it makes it easier to file your business taxes, get credit reports, hire employees, open a business bank account, and more.

Step 4: Obtain any licenses or business permits

You're now well on your way to setting up an interior design business. Once you've registered your business, you're ready to obtain the appropriate business licenses or permits. Like the registration process, this will also depend on where your interior design business will be located and which government regulations apply.

Depending on where you're located, you might need to meet specific interior designer license benchmarks as well: 24 states have passed interior design legislation to this effect.

Check with the Small Business Administration or your local chamber of commerce to see which city, county, and state permits you need to start your interior design business. You might also need a sellers permit and sales tax license, and if you have employees, you’ll need a federal employer identification number for tax purposes as well (if you didn't already set this up in the previous step).

Step 5: Open a business bank account and get a business credit card

The next step in starting an interior design business is to set up a business bank account and business credit card . Not only will this help you establish business credit, but it will also be vital to keep your business expenses separate from your personal spending for tax and funding purposes, as well as just more easily be able to manage your business finances.

While you may be tempted to go with the same bank that you have a personal account with, don't assume this is your best option. Business banking needs are different from your personal ones, and you'll want to consider things like minimum balance requirements, monthly fees, how many monthly transactions you'll be allowed, your need for ATM access, and more when choosing a business bank account.

The majority of businesses will benefit most from a business checking account , but if your interior design business starts making a profit and you can keep that money in a bank account instead of investing it back into the business, you may also consider a high yield savings account to help your money grow.

Likewise, you will want a business credit card that's separate from your personal one so you can easily keep track of your business expenses. Again, you'll want to consider what you need from a business credit card before choosing the best one for you.

Credit cards with a 0% introductory APR can be an especially appealing option for businesses that are just starting out and may not yet qualify for funding options. With these types of cards, you can purchase bigger items for your business upfront and pay them back without interest. Just make sure if you do opt for this strategy that you're aware of when the 0% APR offer ends and are confident that you can pay off your balance by that date.

Step 6: Explore funding options

As you consider the finances of your interior design business, you may find you need additional funding to get your business off the ground. The saying, "You need to spend money to make money," rings true for new businesses—especially in an industry like interior design where each project will require you to spend a significant amount of money on materials and supplies, while you may only receive payment once the job is completed.

Exploring your business loan options is a good idea to see what possibilities you have and what solution you can find for your business. You may find a startup loan is right for you, or a line of credit or invoice financing may be a better fit.

You should also think carefully about what parts of your business you will spend the money on, as well as how much you need and a plan for how you'll pay it back.

How to Iinvest in the basics

As Solomon advises, you don’t necessarily need to invest in an office space, especially when first starting out. There are other basics that you’ll need first, including:

Fabric samples and design accessories: Sample books with various styles, colors, and textures will help you and your client better understand each other’s vision for their space.

Room decor: Whether your office is on the main street in town or your home, having pieces from different manufacturers and collections gives your clients an understanding of your range, as well as ideas for their own project.

Professional group memberships: For example, joining the American Society of Interior Designers (ASID) gives you access to marketing and development advice and tools, professional education opportunities, and other benefits that depend on the regional ASID office. Mentorships and advice from those already established in the industry are especially valuable when you're first starting your interior design business.

Start Your Dream Business

How to start an interior design business: The bottom line

“Never forget that interior design is as much about how the client wants a space to feel as to how the client wants it to look ,” says Solomon.

This speaks to the fact that interior design is a unique business: It asks owners and directors to balance their own need for artistic expression with both practical logistics and the requests of the client. It's a complicated job, to be sure.

There’s plenty of the usual responsibilities that fall to small business owners in interior design—coordinating marketing efforts, hiring and managing employees, controlling inventory, and monitoring the supply chain. But there’s also the added element of creating the spaces in which people work, live, and play—a powerful form of expression that for many will be worth the challenges.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Write a Business Plan for Your Interior Design Business

7 ways to create luxury interior design on a limited budget.

• Margot LaScala July 31 2023 . 7 min read

Starting your own interior design business is a special time filled with firsts. It’s easy to get swept up in the excitement and forget to iron out the finer details. Writing a business plan is the best first step you can take when it comes to starting your interior design business because in doing so, you’ll force yourself to get specific about your dreams, look at the practicals, and carve out a clear course of action. Your business plan is your roadmap for setting up your business processes, spreading the word about your services, and finding new clients. Let’s get started!

Step 1: Determine Your Niche

You have the opportunity to create the interior design business of your dreams. While the project possibilities are endless, it’s important to define your niche. Defining your niche will set you apart from your competition by making you a specialist in a specific design style, a certain type of space, a particular type of client, or even for designing within a certain budgetary range.

According to Carla Aston, there are many ways to find your niche. "I think it’s important after each project or even consultation, if you do those, to reflect back and make notes of what sparked joy within you." Maybe you love the farmhouse look, traditional homes, or a more sleek and modern style. You might also want to ask yourself who you enjoy working with. Maybe you’ve found that certain types of clients, like young families or single millennials, are consistently a delight for you to collaborate with, or perhaps there’s a certain type of space like kitchens or luxury hotels that you genuinely enjoy designing.

Once you’ve found your niche, it’s important to develop a detailed understanding of who your ideal clients are, the pain points they’re likely facing, and what their desires are, so you can develop a design process that delights them at every touchpoint. This will also help you create a marketing strategy that speaks straight to the hearts of those seeking out your services and positions you as the obvious choice.

"Over time, I've developed budget parameters, personality traits of desired clients, style of design, size of projects, locations where I want to work, etc., that spark joy for me and I've designed my business model to accommodate only those jobs. Remember that saying no to a job that doesn't fit into your model is almost more important than saying yes to one that does,” says Aston.

Step 2: Define Your Services

The next step is to define your services. What services bring you the most joy? Some interior designers love managing projects and coordinating with tradespeople, while others would rather delegate these tasks. Decide on which services you’d like to offer and personally tend to and which you’d rather have someone else handle.

There are so many different types of interior design services you can offer . Design consultations, space planning, furniture selection, art curation, custom window treatments, plumbing, flooring, lighting, installation, and re-designs are just a few. Some services, such as construction and window design, even overlap with architecture. It’s also important to specify which types of spaces your services are for so you can attract projects you enjoy. Commercial, institutional, residential, and office spaces are just some of the spaces to consider.

Next, conduct market research by taking a look at the language your competitors are using and interviewing prospective clients about their desires and pain points. Having this information in your back pocket will help you further define your services and communicate them in a way that speaks straight to your ideal clients.

Step 3: Decide on Your Rate.

There are many questions to consider when it comes to determining your rate. For starters, how much money do you need to make at a minimum to cover your current expenses and meet your income goals? How much money will you need in addition to meet your savings goals and also to live comfortably? Next, ask yourself, in a given amount of time, how many projects can you reasonably accomplish? Will you bill hourly or charge a flat rate per project? Once you’ve decided on each of these factors, establish your rates. It all boils down to the number of projects you can do in a certain amount of time and how much money you’ll need to live comfortably.

And don’t underestimate your expertise. Sharing knowledge is a service in itself, implementing it for people will naturally cost even more. If you charge too low, you’ll give people the impression that your services aren’t as high quality as other designers who might charge more for the same services. No matter what, it’s important that you make a profit.

You can also find creative ways to save money. Develop good relationships with vendors and tradespeople and look for vendors who offer discounts for interior designers. You can also consider upcharging for materials by a certain percentage.

Most importantly, when sharing your rate with your clients, it’s important to communicate your process to them and explain the amount of time that’s involved. Your clients will never understand how much work goes into a single project unless you clearly define the scope and lay out all of the details for them.

Step 4: Develop a Marketing Strategy.

Now, it’s time to get started on your marketing strategy. Where do you want to be in 5 years? Dream big. For example, do you need a certain number of projects by a certain time? Do you want your work to be published in a certain magazine or a certain number of magazines to help build brand awareness and showcase your work? Marketing yourself well will get you there.

The best way to spread the word is by word of mouth. Attend networking events and local interior design shows. Build relationships with local vendors, and hand out business cards and other marketing collateral. When people enjoy working with you and love the quality of your work, they’ll naturally want to tell everyone about your services. This is why it’s important to create the best client experience possible where you delight your clients at every stage of the process, which begins with building a beautiful and consistent brand.

Develop a consistent brand that reflects the personality of your business as well as your niche. You’ll need a logo and a beautifully designed website that matches the quality of your work. If you settle for anything less, you’ll be doing yourself a huge disservice, some might even call it self-sabotage.

Squarespace has stunning website templates that you can use to showcase your interior design work. There’s no need to have a lot of pages on your website—the simpler the better. For optimal results, you’ll need a homepage, about, services, portfolio, and a contact us page with testimonials and beautiful images placed throughout your site. Since interior design is largely visual, hiring a professional photographer is key.

To learn more about branding for interior designers, check out our post Identifying Individuality and Building an Authentic Brand .

And don’t forget to ask your clients for reviews about their experience working with you, and keep all of your reviews on your website. You’ll also want to create a social media presence to provide an online community for your dedicated clients and a platform to attract new ones. You can share your client reviews on social media periodically with an accompanying image or blog post. Have fun with Facebook, Instagram, Twitter, and PPC ads, and use Canva to easily create stunning social media graphics.

Step 5: Get a Solid Accounting System.

Last but not least, get a solid accounting system to make your life, or your accountant or bookkeeper’s life, easier. Design Manager is an accounting software designed with interior designers in mind. With careful item tracking, in-depth drill downs for each item, interior design specific reporting, and easy anywhere, anytime access, Design Manager can help you save time and money by streamlining your entire interior design business from anywhere in the world.

Once you’ve determined your niche, defined your services, decided on your rate, developed your marketing strategy, and found a solid accounting system, you’re well on your way to starting a successful interior design business. Write everything down so you can periodically refer back to your business plan to keep yourself on track.

Learn more about why Design Manager is the best accounting software for interior designers by checking out our interview with bookkeeper Brad Shark right here .

Angela Sanders, Contributing Author

Topics: Business of Design

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How To Write a Winning Interior Design Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for interior design businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every interior design business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is an Interior Design Business Plan?

An interior design business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Interior Design Business Plan?

An interior design business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Interior Design Business Plan

The following are the key components of a successful interior design business plan:

Executive Summary

The executive summary of an interior design business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your interior design
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your interior design business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your interior design firm, mention this.

You will also include information about your chosen interior design business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an interior design business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the interior design industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, an interior design business’ customers may include:

• Businesses (office, retail, and hospitality firms)
• Other designers, architects, and homebuilders

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or interior design services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your interior design business via public relations, speaking engagements, or networking.

Operations Plan

This part of your interior design business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an interior design business include reaching $X in sales. Other examples include hitting certain customer targets or partnering with specific retailers or distributors.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific interior design industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Interior Design Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Interior Design Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup interior design business.

Sample Cash Flow Statement for a Startup Interior Design Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your interior design company . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is an essential tool for any interior design business. The tips we’ve provided in this article should help you write a winning business plan for your interior design firm.  

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BUSINESS STRATEGIES

How to create an interior design business plan

• Annabelle Amery
• Sep 6, 2023

Starting a business , especially in the interior design space, can be an exciting and rewarding venture. Whether you have a passion for interior design or simply want to capitalize on the growing demand for aesthetically pleasing spaces, creating a comprehensive interior design business plan is a crucial first step. A business plan serves as a roadmap for starting your interior design business including outlining your goals, strategies and financial projections. Keep reading to learn how to construct your own plan.

Not sure how to begin? Learn more about how to start a service business .

How to write a business plan for an interior design business in 6 steps

Here are the six main parts of a interior design business plan:

Executive summary

Business and domain names

Market research and analysis

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is the first section of your interior design business plan. It provides an overview of your business and highlights the key points from each section of the plan. The executive summary should be concise, clear and engaging to capture the reader's attention. It should include:

A brief description of your interior design business

Your mission statement and vision for the business

A summary of your target market and competition

An overview of your marketing and growth strategies

Your financial projections and funding requirements

02. Business and domain names

Choosing the right business name for your interior design business is crucial for building brand awareness and trust. Start by brainstorming ideas that reflect the essence of your business and resonate with your target market. You can use a business name generator tool to brainstorm design business names and to check the availability of relevant domain names .

When choosing a domain name, consider these best practices:

Keep it short, memorable and easy to spell

Include relevant keywords related to rental properties

Avoid numbers, hyphens or special characters

Choose a domain extension (.com, .net, .org) that aligns with your target audience

Once you’ve landed on a business name and the right legal structure, make sure to properly register your business .

03. Market research and analysis

Including a market analysis and research section in your interior design business plan is essential for understanding the competitive environment and developing effective business strategies. Conduct market research to identify trends, demand and competition in the interior design market.

Your market analysis should cover:

An overview of the interior design market in your target area

Demographic information about your target audience

Competitor analysis, including their strengths and weaknesses

Pricing strategies and rental rates in the market

Opportunities for differentiation and unique selling propositions

04. Operations plan

The operations plan outlines the logistical aspects of your interior design business. It covers important details such as location, premises, equipment and staffing needs.

You’ll need to detail the ideal location for your interior design business based on target market preferences. Consider and explain the size and layout of the premises, as well as equipment and staffing requirements.

05. Marketing and advertising plan

Your interior design business plan should include a detailed marketing and advertising plan to attract customers. Popular strategies include online advertising, social media marketing and traditional advertising like print ads.

You’ll additionally want to create a business website that puts your business on the map. Ensure that you use a reliable website builder that includes built-in marketing tools, and can scale with your business.

Learn more: How to make a website

Remember that no matter where you choose to promote your business, you’ll want to make sure that your branding remains consistent. Start by using a logo maker to create a logo and to help shape your visual identity.

06. Financial plan

The financial plan of an interior design business plays a crucial role in shaping its success and sustainability. It serves as a comprehensive roadmap that guides the business through various financial aspects, ensuring a solid foundation for growth and profitability. This plan encompasses several key components that collectively contribute to the business's financial health and long-term viability.

The financial plan delves into all aspects related to the financial well-being of the business. It covers a wide range of financial considerations, including startup costs, ongoing operational expenses, revenue projections and net profitability. By addressing these aspects, the plan ensures that the business owner has a clear understanding of the financial landscape and can make informed decisions.

One of the critical elements of the financial plan is identifying the sources of funding that will fuel the business's initial establishment and subsequent growth. Whether through personal savings, loans, investments from stakeholders or other means, understanding the available funding sources is vital for effectively managing cash flow, covering expenses and facilitating smooth operations.

Interior design business plan examples

Creating a business plan for your interior design business is essential for setting a solid foundation and ensuring long-term success. To help you get started, here are two draft business plans for a hypothetical interior design business.

Business plan template 1: Urban Rentals

Urban Rentals is a premier interior design business specializing in providing high-quality urban living spaces for young professionals and students in the city. Our mission is to offer modern, well-designed apartments in desirable locations at competitive rental rates. With a focus on customer satisfaction, we aim to create a hassle-free rental experience for our tenants.

Company and domain names

The company name, Urban Rentals, reflects our target market and the type of properties we offer. We have secured the domain name urbanrentals.com, which aligns perfectly with our brand identity and makes it easy for potential tenants to find us online.

Market analysis and research

We have conducted extensive market research to understand the demand for rental properties in urban areas. Our target audience consists of young professionals and students seeking convenient, stylish and affordable apartments. We have identified several competitors in the market but believe that our unique amenities and competitive pricing will set us apart.

Urban Rentals plans to acquire properties in desirable urban neighborhoods close to public transportation, restaurants and entertainment options. We will renovate these properties to meet modern standards and provide essential amenities like high-speed internet, laundry facilities and secure access. Our dedicated property management team will handle tenant inquiries, maintenance requests and ensure that all properties are well-maintained.

To attract tenants, we will utilize a multi-channel marketing approach. This includes online advertising through rental listing websites and social media platforms, as well as targeted online ads. We will also establish partnerships with local colleges and universities to reach student tenants. Additionally, we will implement referral programs and incentivize word-of-mouth marketing through satisfied tenants.

Urban Rentals will be initially funded through a combination of personal savings and a small business loan. We project steady growth over the next five years, with a focus on maintaining high occupancy rates and increasing rental income. Our financial plan includes detailed revenue projections, expense forecasts and cash flow analysis.

Business plan template 2: Coastal Properties

Coastal Properties is an interior design business specializing in providing beachfront vacation homes for tourists and travelers seeking a luxurious coastal experience. Our mission is to offer premium properties with stunning ocean views, top-notch amenities and exceptional customer service. We aim to create unforgettable vacation experiences for our guests.

The company name, Coastal Properties, reflects our focus on beachfront locations and coastal living. We have secured the domain name coastalproperties.com, which perfectly represents our brand and helps potential guests find us easily online.

We have conducted extensive market research to understand the demand for vacation rentals in popular coastal destinations. Our target audience consists of affluent travelers seeking high-end accommodations with breathtaking views. We have identified competitors in the market but believe that our exclusive properties and exceptional service will attract discerning guests.

Coastal Properties plans to acquire premium beachfront properties in sought-after coastal destinations. These properties will be fully furnished with upscale amenities like private pools, beach access and concierge services. We will work with reputable property management companies to handle guest inquiries, reservations and property maintenance.

To reach our target audience, we will implement a comprehensive marketing and advertising plan. This includes online advertising through vacation rental platforms and luxury travel websites. We will also collaborate with travel influencers and establish partnerships with local businesses to promote our properties. Additionally, we will leverage social media platforms to showcase stunning visuals of our properties and engage with potential guests.

Coastal Properties will be initially funded through a combination of personal investments and private investors. We project strong revenue growth based on high occupancy rates and premium rental rates. Our financial plan includes detailed income projections, expense forecasts and return on investment analysis.

Benefits of writing an interior design business plan

An interior design business plan is vital to a variety of functions, including:

Funding: A comprehensive business plan demonstrates that you have thoroughly researched and analyzed the market opportunity. It showcases your understanding of the industry and your ability to execute your ideas effectively. Investors are more likely to provide funding and help you raise money for your business when they see a clear plan with achievable goals and realistic financial projections.

Resource planning: A well-written business plan helps you identify the resources needed to start and operate your interior design business successfully. It outlines the equipment, supplies, technology and personnel required to deliver high-quality services to your clients. By understanding these resource requirements upfront, you can budget accordingly and avoid unexpected expenses.

Business success: A business plan forces you to think critically about every aspect of your interior design business. It prompts you to consider potential challenges and develop strategies to overcome them. By setting specific goals and outlining actionable steps, you can stay focused and increase the likelihood of success. A business plan also helps you track your progress and make adjustments as needed.

Decision-making: Having a clear business plan provides a framework for making informed decisions. It serves as a reference point to evaluate opportunities, assess risks and prioritize tasks. When faced with new opportunities or challenges, you can refer back to your business plan to ensure alignment with your overall vision and goals.

Vision-setting: A well-crafted business plan is an effective communication tool. It allows you to articulate your vision, mission and values to potential clients, partners and employees. By clearly defining your unique selling proposition and target market, you can differentiate yourself from competitors and attract the right audience.

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Home Interior Design Business Plan

Start your own home interior design business plan

Hamlin and Park Design

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The city of Claremont has been growing by 6% annually for the past five years. Currently, the city’s population is 700,000. Most importantly, the greatest population increase is in southwest Claremont which is the city’s most affluent area. The population of southwest Claremont has grown by 20% the past two years. The 80,000 residents of the area have an average income of $200,000 and the average home is valued at $350,000. The new construction in southwest section of the city is valued at 600 million dollars in home sales next year alone. Growth in the area has also generated increase remodeling of existing homes. Last year, remodeling projects were up 20% over the previous year and accounted for $20 million paid for remodeling services in the area.

The building and remodeling in southwest Claremont has increased the demand for interior design services. Last year, residential interior design companies generated $4 million in sales in the greater Claremont area. Forecasts for next year predict that there will be an increase of 11% in sales.

Hamlin and Park Design will offers a wide range of interior design services to meet any client’s needs in southwest Claremont:

• On-site consultations;
• Project survey & analysis;
• Space planning & furniture arrangement;
• Design concepts;
• Finishes & furnishings;
• Custom designs;
• Purchasing, delivery, & installation;
• Project coordination & management.

Courtney Hamlin and Katherine Park have ten years of experience with the city’s top interior designs firms.  Both have been successful is creating a base of former clients that will refer new business to the designers.

1.1 Objectives

Hamlin and Park Design offers a wide range of interior design services to meet any client’s needs in southwest Claremont.

The primary objectives of our firm are to:

• Exceed customers’ expectations for service and product.
• Increase the number of clients served by 15% per year through superior performance.
• Develop a sustainable start-up business that is profitable.

1.2 Mission

Hamlin and Park Design’s mission is to assure superior customer service by doing the following:

• Open communication with clients. The explanation of the “pros and cons” of different selections and design options are discussed in detail.
• Include the client in every stage of the design process.
• Exceed the customer’s expectations for the project.
• Maintain continuing education of the latest development and innovations in the interior design field.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Courtney Hamlin and Katherine Park will start Hamlin and Parks Design to offer a wide range of interior design services to clients in southwest Claremont. The company has a high level of expertise in interior design and will provide superior personal services to all clients. Courtney and Katherine take pride in knowing that 50% of their business comes from repeat clients and their referrals.

Our responsibility as interior design professionals is to take the client’s design goals and utilize our skills and resources to exceed the client’s expectations for service, value, functionality, and beauty.

2.1 Company Ownership

The owners and designers of Hamlin and Park Design are Courtney Hamlin and Katherine Park.

2.2 Start-up Summary

Courtney Hamlin and Katherine Park will invest $60,000 in Hamlin and Park Design. They will also secure a $50,000 loan.

The following table and chart show projected initial start-up costs for Hamlin and Park Design.

Hamlin and Park Design will offers a wide range of interior design services to meet any client’s needs in southwest Claremont:

• On-site Consultations : Convenient consultations for busy homeowners and professionals are offered at the home or office. The consultation will include all necessary product samples for clients for review, thus eliminating the hassle of having to visit numerous stores for different products.
• Project Survey and Analysis : Each site is inspected for its layout and function. In-depth client interviews are conducted to determine all necessary requirements for the project. This information is then analyzed for design concepts and space planning.
• Design Concepts : The design concept can begin with a treasured piece of fabric or furniture, or simply a blank page. The goal is to attain the “look” and “feel” a client wants, from “light and airy” to “rich and elegant” to “comfortable and cozy.” Each project develops its own flavor from the unique selection of fabrics, furniture, and finishes.
• Finishes and Furnishings : There are many factors to consider when selecting furniture and finishes. Hamlin and Park Design’s expertise and guidance helps clients make the best selections for their needs. Creativity is also applied in the selection process to create the desired look.
• Custom Designs : Custom furniture, built-ins, and window treatments are also available through the talents of Hamlin and Park Design. Detailed drawings are prepared to help clients visualize the finished piece.
• Purchasing, Delivery, & Installation : Once final selections are made, Hamlin and Park Design assumes all responsibility for coordinating the purchasing, delivery and installation of the entire project.
• Project Coordination & Management : Some projects require a certain sequence of installation for maximizing results. Hamlin and Park Design coordinates all aspects of these projects to ensure smooth transitions from each phase until project completion.

Market Analysis Summary how to do a market analysis for your business plan.">

Due to the strengthening of the area’s economy, more southwest Claremont homeowners are exploring interior design to improve their homes’ beauty and charm. Last year, residential interior design companies generated $4 million in sales in the greater Claremont area. Approximately, 75% of the sales were located in southwest Claremont. Forecasts for next year predict that there will be an increase of 11% in sales. This demand for interior design services is a tremendous opportunity. Hamlin and Park Design is poised to take advantage of these changes, and expects to become a recognized name and profitable entity in the city’s interior design market.

4.1 Market Segmentation

The customers that Hamlin and Park Design will be serving can be divided into three groups:

• New Home Construction : Hamlin and Park Design will compete for the interior design projects associated with new homes. Contracted consulting responsibilities with the builders can include one or more of the companies services, i.e. strategic planning, master planning, and lighting, floor or carpet design.
• Remodeling Projects : These projects have some of the same characteristics as new home construction (i.e. working as a consultant with builders) but can also include greater control over all aspect of the project.
• Interior Design of Existing Home : Hamlin and Park Design will control all aspects of these projects.

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4.2 Competitive Edge

Hamlin and Park Design’s competitive edge is that both Courtney Hamlin and Katherine Park are highly successful interior designers with a loyal customer base. Courtney has been a Project Manager with Sullivan and Associates for five years. During that time she has established strong relationships with builders and vendors which will prove beneficial in the coming years. For the past six years, Katherine has worked as a Design Consultant for Jonathan Miller, the most successful interior designer in Claremont. Together, Courtney and Katherine have the skills, resources and experience to be build on the base of 1,000 satisfied customers.

Strategy and Implementation Summary

Hamlin and Park will focus on the interior design needs in the southwest section of the city. Our target customers will be the affluent residents of southwest Claremont.

5.1 Sales Strategy

The following is the sales strategy Hamlin and Park Design will employ on the three target customer groups:

• New Home Construction/Remodeling Projects : Courtney Hamlin already has a strong professional relationship with the dominant builders/remodelers in southwest Claremont. She will meet with them directly and pitch the consulting services of Hamlin and Park Design. 
• Interior Design of Existing Home : Visibility with the customer base is the most important marketing activity Hamlin and Park Design will follow. Southwest Claremont has five homeowner associations that meet regularly. In the past both Courtney and Katherine have made presentations on interior design issues. They will continue this service to the community to raise the visibility of Hamlin and Park Design.

5.1.1 Sales Forecast

The following table and chart will forecast sales for the next three years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Hamlin and Park is a two member interior design firm. Both designers are equal partners in the firm.

• Courtney Hamlin began her passion for the arts at a young age. Upon graduating from State University, Courtney secured an office management position at a local commercial and residential interior design firm. This position afforded her the learning experience of overseeing all aspects of design projects; from preparing proposals, to scheduling and coordinating all phases of a project. After five years of managing the design firm, Courtney returned to school for an Associates Degree in Interior Design. After completing her Interior Design degree, Courtney became a designer and project manager for Sullivan and Associates.
• Katherine Park received a B.A. in Art from State University.  She continued her education at the Art Institute of Monroe and obtained a degree in Interior Design.  She has worked as a Design Consultant for Jonathan Miller, the most successful interior designer in Claremont.

6.1 Personnel Plan

The staff of Hamlin and Park Design will be its co-owners Courtney Hamlin and Katherine Park.

Financial Plan investor-ready personnel plan .">

The following is the financial plan for Hamlin and Park Design.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Some of the more important underlying assumptions are:

• We assume a strong economy, without major recession.
• We assume, of course, that there are no unforeseen changes in the economy that would change our estimations.

7.2 Break-even Analysis

The following table and chart will summarize our break-even analysis. The monthly break-even point is approximately $14,800.

7.3 Projected Profit and Loss

Our projected profit and loss is shown on the following table and charts.

7.4 Projected Cash Flow

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.

7.5 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.

7.6 Business Ratios

The following table provides important ratios for the real estate industry, as determined by the Standard Industry Classification (SIC) Index, 8999, Services.

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Interior Design Business Plan Template

If you want to start an interior design business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 7,000 entrepreneurs and business owners create business plans to start and grow their interior design businesses.

Below are links to each section of your interior design business plan template :

Next Section: Executive Summary >

Interior Design Business Plan FAQs

What is the easiest way to complete my interior design business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Interior Design Business Plan.

What Is an Interior Design Business Plan?

A business plan provides a snapshot of your interior design business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for an Interior Design Business?

If you’re looking to start an interior design business or grow your existing interior design business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your interior design business in order to improve your chances of success. Your interior design business plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for an Interior Design business?

Interior Design businesses are usually funded through small business loans, personal savings, credit card financing and/or angel investors.

INTERIOR DESIGN BUSINESS PLAN OUTLINE

• Interior Design Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Interior Design Business Plan Summary

Start Your Interior Design Plan Here

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Top 10 Interior Design Business Plan Templates with Examples and Samples

Samradni Pradhan

Exceptional interior design is not merely about decorating rooms; it's a strategic endeavor that transforms space planning into harmonious, purpose-driven settings. It's about optimizing energy flow, enhancing comfort, and fostering a sense of belonging within these spaces.

An interior design business plan is essential to embark on this creative journey. It serves as the compass, guiding interior designers through the complexities of this multifaceted interior design service industry . A well-crafted plan outlines the vision, target market, services, and financial strategies, offering a roadmap to success.

This blog will provide the best interior business plan templates for you and your business.

Table of Contents

1.Executive Summary

2.Company Overview

3.Industry Analysis

4.Customer Analysis

5.Competitor Analysis

6.SWOT Analysis

7.Porter's Framework

8.Marketing Plan

9.Operational Plan

10.Financial Plan

This blog post will cover details on the 10 pages within this entire deck. Upon downloading, you will get the 71-page Doc, PDF, and XLS files .

1. Executive Summary

This section is vital for capturing the attention of potential investors. It should highlight your interior design business's unique value proposition, mission, and vision. A compelling Executive Summary sets the tone for the entire plan and serves as a tool to attract investors by demonstrating the clarity of your business strategy and the promising opportunities it presents in the interior design industry.

In our Executive Summary section, you will get templates for

1.1 The Quick Pitch:  Offer a compelling and concise glimpse, showcasing the core features and unique offerings that define your interior design business.

1.2 The Entity Profile:  Craft a streamlined portrayal of your company's structure and distinctive identity, strategically tailored to pique the interest of potential investors and collaborators.

Download this business plan

Looking for another option to chose from? Explore this Inter Design Business Plan in PowerPoint format with a unique theme and impressive graphics. Click here to open .

2. Company Overview

The Company Overview page introduces your interior design business, history, and core values. Investors look to this section to understand the foundation of your business. It's a chance to showcase your passion and commitment, which can be a compelling factor in attracting investors who align with your values and vision.

In our Company Overview section, you will get templates for

2.1 Vision and Mission:  Craft an alluring mission and vision that guide your interior design enterprise toward its purposeful destiny.

2.2 Company Goals and Objectives:  Illuminate the precise aspirations and objectives your interior design business aims to achieve.

2.3 Start-up Summary:  Offer a snapshot of your interior design business's origin story, unveiling its inception, structure, and foundational building blocks.

2.4 Market Gap Analysis and Business Statement:  Explore untapped opportunities within the interior design realm and express your distinct business identity.

2.5 Services Portfolio:  Reveal an expansive palette of interior design services, showcasing the breadth of your creative expertise and design capabilities.

2.6 Key Success Factors:  Define the critical factors that pave the way for success in your interior design business plan, ensuring a well-illuminated path to prosperity within the world of design and aesthetics.

3. Industry Analysis

This section offers valuable insights into market size, key trends, and emerging opportunities. It positions your interior design business as one that understands the industry dynamics, making it more attractive to investors seeking growth sectors to invest in.

In our Industry Analysis section, you will get templates for:

3.1 Market Analysis:  Dive deep into the interior design industry, uncovering hidden opportunities and identifying influential players that will shape the future of your venture.

3.2 Market Trends Tracking:  Maintain a forward-looking stance by monitoring the ever-evolving trends in interior design and décor to captivate the discerning tastes of modern consumers.

3.3 Major Challenges and Solutions:  Fearlessly confront industry challenges, forging innovative solutions that guarantee the uninterrupted progress of your interior design business.

3.4 Growth Drivers Identification:  Precision-engineer strategies and pinpoint the pivotal factors that will propel your interior design brand toward rapid expansion and enduring triumph.

3.5 Geographical Market Analysis:  Tailor your approach to diverse regions within your target market, ensuring a seamless expansion that harmonizes with regional preferences and fulfills distinctive demands.

4. Customer Analysis

A detailed understanding of your target customers is essential for attracting investors. This page should highlight your knowledge of your client base, their needs, preferences, and demographics. Investors want to see that you've identified a viable market and developed strategies to reach and retain customers. Demonstrating a solid customer analysis can instill confidence in investors that there is demand for your interior design services.

In our Customer Analysis section, we offer comprehensive templates for:

4.1 Target Market Definition:  Craft a crystalline vision of the consumer or business segments your interior design services uniquely suit, ensuring a precisely focused and impactful market strategy.

4.2 Buyer Persona Development:  Sculpt a finely detailed portrait of your ideal customer, from demographics to preferences and behaviors, to refine your interior design services with exquisite precision, meeting their needs with artful mastery.

4.3 Market Sizing Analysis:  Calculate the dimensions of the interior design market, meticulously measuring the potential market share your brand can capture and painting a canvas of opportunities that beckon in your entrepreneurial landscape.

5. Competitor Analysis

Investors appreciate businesses that understand their competitive landscape. The Competitor Analysis section should provide insights into your competitors' strengths and weaknesses, helping investors assess your interior design business's competitive advantage. By showcasing how you plan to differentiate yourself in the market, you can attract investors who see the potential for your business to outperform competitors.

In our Competitor Analysis section, we provide templates for:

5.1 Major Players:  Chart a course through the dynamic landscape of the interior design industry by profiling and dissecting the foremost competitors and influential figures shaping the market's evolution.

5.2 Attributes Comparison:  Engage in a meticulous exploration, crafting insightful comparisons of the essential traits and features that define various interior design products or services in the market.

6. SWOT Analysis

If you are looking for self-assessment of your business, SWOT Analysis is an essential tool. It helps investors understand your interior design business's internal strengths and problems and the external opportunities and threats it faces. This page demonstrates your ability to identify and mitigate risks while capitalizing on strengths, making your business more appealing to risk-conscious investors.

7. Porters Framework

Porter's Framework analyzes the competitive forces within your industry. Investors are interested in your interior design business's positioning in the market and its ability to withstand competitive pressures. Highlighting your strategies for competitive advantage and market positioning can attract investors looking for businesses with a strong market presence and sustainable competitive edge.

8. Marketing Plan

The Marketing Plan details how you intend to reach and engage customers. Investors want to see a well-thought-out strategy for brand building and customer acquisition. A robust marketing plan attracts customers and investors who recognize the importance of effective marketing in driving business growth.

In our Marketing Plan section, we provide templates for:

8.1 Sales Strategy:  Engineer a bespoke sales strategy blueprint meticulously designed to meet and surpass the financial aspirations and dreams of your interior design business.

8.2 Promotional Strategy:  Paint a vivid picture of your marketing and promotional tactics, igniting a blaze of anticipation and etching an enduring presence for your interior design brand within the industry.

8.3 Pricing Strategy:  Unveil the secret sauce of your pricing strategy, seamlessly blending profitability and unrivaled competitiveness, and establishing the gold standard in interior design.

8.4 Sales Funnel Optimization:  Chart the captivating journey from discovery to delight for your customers, optimizing every twist and turn of the sales funnel to deliver maximum efficiency and satisfaction in the interior design experience.

9. Operational Plan

Investors seek assurance that your interior design business has a sound operational foundation. The Operational Plan page should detail your business's day-to-day operations, including staffing, processes, and technology. A well-structured operational plan instills confidence in investors that your business can deliver on its promises and sustain growth.

In our Operational Plan section, we provide templates for:

9.1 Retail Selling Strategy:  Sculpt your path to retail journey with a strategic blueprint for selling your exquisite interior design renovations , showcasing your sales acumen and tactical finesse.

9.2 E-commerce Sales Strategy:  Master the digital landscape with a meticulously crafted strategy, financial breakdown, and a roadmap to dominate the online marketplace with your captivating interior design offerings.

9.3 Milestones and Achievements:  Illuminate the stepping stones of your interior design empire's odyssey, highlighting the pivotal milestones and remarkable accomplishments that trace your journey of growth and triumph.

10. Financial Plan

The Financial Plan is critical for investors as it provides insights into your interior design project management financial projections, including revenue, expenses, and profitability. It allows investors to evaluate the potential return on their investment. By presenting realistic and well-supported financial forecasts, you can attract investors seeking opportunities for financial growth and stability.

In our Financial Plan section, we provide templates for:

10.1 Financial Assumptions:  Transform your financial vision into a strategic blueprint, shaping the fiscal landscape of your interior design enterprise.

10.2 Revenue Model and Sales Forecast:  Illuminate the diverse revenue streams propelling your interior design business and craft a growth roadmap.

10.3 Break-Even Analysis:  Delve into the pivotal factors steering your interior design venture toward the break-even point, a significant marker for profitability.

10.4 Projected Profit and Loss Account:  Paint a vivid financial picture of your interior design potential, projecting revenues, monitoring expenditures, and anticipating overall profitability.

10.5 Projected Cash Flow Statement:  Master the fluid finances of your interior design enterprise with a meticulous projection of anticipated cash flows.

10.6 Projected Balance Sheet:  Provide a comprehensive view of your interior design business's anticipated assets, liabilities, and equity, ensuring financial transparency.

10.7 Scenario Analysis:  Embark on exploring diverse scenarios to assess how varying conditions and risks might influence the financial resilience of your interior design venture.

10.8 DCF Valuation:  Harness the power of discounted cash flow analysis to evaluate the current market value of your interior design business, quantifying its worth within the competitive interior design industry.

We have so much more to offer

This blog has given you a gist of the fantastic content you would get through this business plan. However, this is just the tip of the iceberg, when you download this business plan template , you will get all of the 71 pages and the goodness within. Starting an interior design business is a lot of effort with services for house remodeling, but we can make it easier for you with the help of interior design presentation ppt . Moreover, you can also download the entire business plan ppt in an editable PowerPoint format to alter your requirements as per the business.

FAQs on Interior Design Business Plan

1. what is an interior design business plan.

A thorough document defining the strategic direction, objectives, and operational specifics of an interior design venture is known as a business plan. The company's goal and vision, target market analysis, list of services, marketing and sales plans, financial predictions, and a thorough budget are often included. The business owner uses a well-written business plan as a road map to help them achieve their goals and, if necessary, obtain financing. It also aids in prioritizing tasks, spotting potential obstacles, and monitoring business objective progress.

2. How do I start an interior design business?

There are numerous essential steps to starting an interior design business:

• Education and Training: Obtain interior design-related education and training.
• Business Plan: Specify your niche, target market, services, and budget in a thorough business plan.
• Legal Structure: Select a business legal structure (sole proprietorship, LLC, etc.).
• Register Your Business: File a registration form with the relevant agencies.
• Branding and Marketing: Create a brand identity and a marketing plan to connect with prospective customers.
• Build a Portfolio: Compile a collection of your work in a portfolio.
• Network: Create a powerful industrial network.
• Tools and Resources: Spend money on the required tools and materials.
• Financial management: Set up accounting and financial systems. 
• Building Strong Client Relationships: Develop long-lasting client relationships by providing top-notch service.

3. Is interior design a profitable business?

If well run, interior design may be a lucrative industry. Success is influenced by location, area of expertise, market demand, and the designer's talent and reputation. Design fees, project markups, consultancy fees, and product sales are ways interior designers might make money. Designers frequently concentrate on niche markets, provide distinctive services, run efficient businesses, and build loyal clientele to improve revenue. Profitability can also be increased via networking, following market trends, and providing outstanding value to customers.

4. What is the highest paid interior design job?

Senior positions or specialized niches are frequently found in the highest-paying interior design positions. Professionals in interior design who have a large clientele can demand greater salaries. Some of the interior design positions with the highest salaries are:

• Principal or owner of an interior design firm might make a good living from their business.
• Commercial/Corporate Interior Designer: Creating offices for major firms frequently results in a lucrative salary.
• Specialised Designers: High salaries may be attained by those with specialisations in luxury residential and commercial design , hospitality, or healthcare.
• Consultants: Careers in interior design consulting can be quite lucrative. These professionals provide knowledge and advice to other designers or businesses.
• Celebrity Interior Designers: Well-known designers may charge exorbitant prices for their services when working with prominent clients or celebrities.

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Interior Decorator Business Plan Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting your own interior decorating business is an exciting journey filled with endless possibilities. However, to turn your dream into a thriving reality, you need a solid plan in place. Enter ClickUp's Interior Decorator Business Plan Template!

With ClickUp's template, you can:

• Define clear business goals and strategies to navigate the competitive interior decorating industry
• Identify your target market and develop tailored marketing plans to attract ideal clients
• Create detailed financial projections to secure funding and manage your business operations effectively

Ready to elevate your interior decorating business to new heights? Let ClickUp's template be your guiding light in the world of design and entrepreneurship!

Interior Decorator Business Plan Template Benefits

Elevate your interior decorating business with the interior decorator business plan template.

Crafting a solid Interior Decorator Business Plan Template can be a game-changer for your interior decorating business. Here's how it can benefit you:

• Securing Funding: Clearly outline your business goals and financial projections to attract potential investors.
• Target Market Strategy: Define your target market and strategies to reach them effectively.
• Client Attraction: Showcase your unique selling points and marketing plans to attract clients.
• Efficient Business Management: Streamline your operations and manage resources effectively for business success.

Main Elements of Interior Decorator Business Plan Template

To kickstart your interior decorating business, ClickUp’s Interior Decorator Business Plan template offers:

• Custom Statuses: Track progress with statuses such as Complete, In Progress, Needs Revision, and To Do for efficient business plan management
• Custom Fields: Utilize custom fields like Reference, Approved, and Section to store essential information, ensuring all details are organized and easily accessible
• Custom Views: Explore different perspectives with views like Topics, Status, Timeline, Business Plan, and Getting Started Guide for comprehensive business planning
• Goal Tracking: Set and monitor business goals, strategies, target market analysis, financial projections, and marketing plans for effective business growth

How To Use Interior Decorator Business Plan Template

Creating a solid interior decorator business plan is crucial for your success in the competitive industry. By utilizing the Interior Decorator Business Plan Template in ClickUp and following the steps below, you can lay a strong foundation for your business and set yourself up for growth and profitability.

1. Define your vision and mission

Before diving into the details, take the time to establish a clear vision and mission for your interior decorating business. What sets you apart from competitors? What values do you uphold in your services? Having a strong vision and mission will guide your decisions and help you stay focused on your goals.

Use a Doc in ClickUp to outline your vision statement and mission statement for your business.

2. Analyze the market and competition

Conduct a thorough analysis of the interior decorating market in your area. Who are your competitors? What services do they offer, and at what price points? Understanding the market landscape will help you identify gaps and opportunities that your business can capitalize on.

Utilize the Table view in ClickUp to create a competitive analysis chart and track market trends.

3. Define your services and target audience

Clearly define the services you will offer as an interior decorator. Will you focus on residential projects, commercial spaces, or both? Additionally, identify your target audience - the demographic and psychographic characteristics of the clients you want to attract.

Use custom fields in ClickUp to categorize your services and target audience for easy reference.

4. Develop a marketing and sales strategy

Outline your marketing and sales strategies to attract clients and grow your interior decorating business. Will you rely on social media marketing, partnerships with real estate agents, or local networking events? Having a clear plan in place will help you reach your target audience effectively.

Create tasks in ClickUp to set marketing goals, plan campaigns, and track sales activities.

5. Set financial goals and projections

Establish realistic financial goals for your interior decorating business. Calculate your startup costs, projected revenue, and expenses. Setting financial targets will help you track your progress and make informed decisions to ensure the financial health of your business.

Utilize Dashboards in ClickUp to create financial projections and monitor key performance indicators related to your business finances.

Get Started with ClickUp’s Interior Decorator Business Plan Template

Interior decorators and aspiring business owners can utilize the Interior Decorator Business Plan Template in ClickUp to create a comprehensive plan for their interior decorating business.

To get started, click on “Add Template” to incorporate the Interior Decorator Business Plan Template into your Workspace. Ensure you select the appropriate Space or location for this template.

Next, invite relevant team members or stakeholders to your Workspace to begin collaborating on the business plan.

Here are the steps to effectively use this template:

• Utilize the Topics View to organize different sections of your business plan such as goals, strategies, and financial projections
• Use the Status View to track the progress of each section, marking them as Complete, In Progress, Needs Revision, or To Do
• The Timeline View will help you set deadlines and milestones for completing each section of the business plan
• Navigate to the Business Plan View to get a holistic overview of your entire plan in one place
• Refer to the Getting Started Guide View for tips and instructions on how to effectively use the template

Enhance your business plan by utilizing the custom fields:

• Add information to the Reference field to link related documents or resources
• Mark sections as Approved to signify completion or approval
• Use the Section field to categorize different parts of the business plan for easy reference and organization.

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Interior Design Business Plan Sample

The interior design services market in the United States is expanding due to the high demand of recreation and smart co-working spaces.  This interior design business plan sample will help new business owners to meet growing market demands.  Our business plan writers created this sample for a company launching in the City of Chicago.

Executive Summary

Smart Spaces Designs (herein also referred to as “SS Designs” or “the company”) was incorporated in the Province of British Columbia on December 22, 2019 by Founder and Director of Designer, Ms. Donna Simmons.  Headquartered in downtown Chicago , Illinois, U.S.A.; SS Designs provides premium interior architecture and design services to an array of commercial clients.

In 2007 Ms. Donna Simmons set out on a lifelong journey to pursue her professional passion, Interior Architecture and Interior Design.  Over the past 15 years, Ms. Donna Simmons has amassed a plethora of experience as a leading interior architect and designer in Dubai, successfully completing a multitude of high profile projects, and being recognized as “Top Interior Designer” by International Design Awards in 2020.

Today, SS Designs operates as a lean enterprise, climbing the ranks with a focus on unparalleled quality and creativity.  This plan is strategic in nature, distinguishing the company’s market position, growth plan, marketing strategy, operational process, and financial projections.  The following is intended to be read in detail by SS Designs team members, and stakeholders.  Over time the contents will be reviewed and revised, making way for the next layer of corporate strategy.

The interior architecture and design industries are primarily driven by the real estate sector.  As such, the company is focused on positioning in areas well known for strong real estate markets including Chicago, Illinois, U.S.A.; Dubai, UAE and eventually Riyadh, SA.  With fruitful connections in Dubai and Riyadh, Ms. Donna Simmons seeks to grow a versatile team in Chicago and service future operations in the middle east from U.S.A..  SS Designs is focused on positioning as a premium service provider and plans to compliment this position with superior service.  More specifically, the company will provide industry-leading communications such as same day responses, same week proposals, and a detailed client discovery process.

This will all be achieved by curating a talented, respected and supported internal team.  Ms. Donna Simmons cherises the hard working and diverse team that has been established to date, and is motivated to provide a promising, challenging and rewarding home for all SS Designs team members. New clients will be generated by continued referrals through the SS Designs ecosystem.  Additionally, a digital marketing campaign will commence in August 2022 to further the company’s brand on social media, organic search and to begin structuring a lead capture and reporting process.  This will all only be possible if the SS Designs team is capable of being self-motivated, executing on each team member’s specific duties, and coming together weekly and monthly to share wins, challenges and new ideas for growth. Ms. Donna Simmons intends to develop a corporate culture which inspires positivity, openness and mutual drive to provide the highest standards of quality and service to each client.

Business Overview

Smart Spaces Designs is a boutique Interior Architecture and Design services firm based in beautiful Chicago, Illinois, U.S.A. The company operates with four team members, while planning to expand the volume of staff consistently over the next five years. SS Designs prides itself on offering high-quality architecture and design, founded on a pursuit to develop innovative and custom fitted solutions. Ms. Donna Simmons believes that each project is unique and deserves its own individual approach; therefore, the company ensures that each project provides guests with a purposeful experience of their respective space.

Mission Statement

Our mission is to be innovators in the interior architectural space for all Chicago consumers.

Vision Statement

Our vision is to leave each client with a space that is practical, customized and simplifies commercial client’s space.

Goals and Objectives

Market Analysis

SS Designs operates in two industries: Interior Architecture and Interior Design.  Interior Architecture being the company’s primary focus.  The following market analysis discusses recent performance in each industry, including future forecasts.

Interior Architecture Industry

Companies in this industry are primarily engaged in the planning and design of buildings and other structures. Consequently, industry revenue is tied to the health of the real estate market. For instance, as corporate balance sheets improve, many businesses expanded their storefronts and offices, increasing demand for services. Positive long-term trends such as an aging, urbanizing and a progressively wealthy population, have helped spur demand for residential construction, especially in metropolitan areas, which boosted revenue for architectural services. In addition, an increase in public-private partnerships for infrastructure projects, under which the financing and operation costs are shared between the government and private sector, raised architectural revenues.

Steady growth in the American real estate market is projected to drive industry revenue, which is expected to increase an annualized 3.0% to $5.8 billion over the four years to 2026. American architects will benefit from anticipated increases in corporate profit and disposable income, as these drivers will propel residential and nonresidential construction. Further, industry growth will hinge on the popularity of environmentally conscious designs. Higher projected oil prices, along with increased regulations regarding the reduction of carbon emissions, will incentivize energy-efficient structures, aiding architectural firms that specialize in planning environmentally friendly homes and commercial structures.

Key External Drivers

Value of Non-residential Construction

Trends in institutional and commercial developments are major drivers of industry revenue. The value of non-residential construction serves as a proxy for commercial and industrial developments. Services related to these types of developments generate over 50% of industry revenue. Demand for non-residential construction is sensitive to employment, consumer spending, corporate profit and interest rates.

Value of Residential Construction

Demand for the construction of single- and multifamily residential units influences demand for industry services. In total, projects related to residential construction account for an estimated 17.9% of revenue in the American Architects industry. Demand for residential construction is sensitive to economic and financial conditions, such as employment, consumer disposable income and interest rates.

Corporate Profit

A high share of industry revenue comes from commercial and industrial construction. To pay for or finance a building project, a company must first have a healthy balance sheet. Therefore, a higher corporate profit margin coincides with higher levels of commercial construction.

Housing Starts

Housing starts measure the number of new, privately owned housing units started in a given year. The number of housing starts has a direct influence on industry revenue, with an increase in the number of housing starts positively affecting the industry.

Overnight Rate

The overnight rate is the rate at which major financial institutions can borrow and lend short-term funds to one another. Changes in the overnight rate affect institutional lending to builders and developers. During periods of low rates, builders can more easily afford construction projects. In turn, increased construction boosts demand for architectural services, as architects are needed in the design stages of residential and nonresidential building projects.

Industry Outlook

Revenue for the American Architects industry is expected to increase at an annualized rate of 3.0% to $5.8 billion over the four years to 2026. Growth in corporate profit and consumer spending is expected to provide the framework for an improved American real estate market, which will boost demand for industry services. Architecture firms will benefit from growth in non-residential construction, which is the industry’s largest market. The value of nonresidential construction in Canada is expected to increase at an annualized rate of 4.4% over the four years to 2026, bolstering demand for the design and planning of office, industrial, retail and other commercial construction projects.

Another force driving the industry’s growth is the low interest rate environment resulting from a recovering economy after the COVID-19 (coronavirus) pandemic. Low interest rates make it easier for companies or individuals to borrow money to finance new building projects, due to the lowered cost associated with paying back the loan. Downstream buyers will be more willing to take on new projects and hire industry operators. In addition to other improving economic drivers, industry demand is expected to continue to flourish.

Increased Investment will Boost Demand

Rising investment in large-scale commercial building developments, most notably offices and hotels, is expected to boost industry revenue. These types of community projects will continue to improve industry revenue because architectural services will be needed in their design. In addition, an increase in the popularity of mixed-use properties that contain retail, office and residential components, will promote the design of innovative buildings, increasing demand for architecture in metropolitan regions. Although short-term lending rates are expected to slightly increase over the four years to 2026, interest rates are still expected to remain relatively low. This will incentivize investors to put cash into real estate developments in Canada, which will continue to offer attractive returns compared with other forms of investments.

In the residential market, urbanization and an aging population will likely lead to an increase in high-rise condominium and apartment construction, especially in major cities such as Calgary, Toronto and Vancouver. For example, the 81-storey M3 Condo, which is currently in the construction process and is scheduled for completion in the latter half of 2023, is a new modernly designed luxury condo that is going to be a part of the M City community in the heart of Mississauga, ON. This building is designed by industry player IBI Group Inc., and is going to become the tallest tower in Mississauga by a significant margin. Demand for architectural services in the housing construction market will also increase, aiding small industry operators that specialize in home design and planning. Moreover, the value of residential construction is expected to continue rising, growing at an annualized rate of 0.6% over the four years to 2026.

Competition

Industry revenue growth and an increasing profit margin will bring more operators into the industry. The number of industry operators is forecast to increase at an annualized rate of 1.9% to 7,766 companies over the four years to 2026. Meanwhile, industry employment is also projected to increase, rising at an annualized 2.8% to 28,656 people during the same period, as greater demand for architectural services will lead to more hiring. The industry is labour intensive, and businesses will find it difficult to find a cost-efficient substitute for knowledgeable employees. As a result, wages are expected to increase an annualized 2.9% to $2.4 billion over the four years to 2026. Since revenue growth is projected to be faster than wages, profit is also anticipated to marginally increase over the next four years.

An increase in industry operators will also lead to heightened competition. Many of the industry’s largest companies also serve as engineering and construction companies, offering clients a one-stop shop for design, procurement and construction services. Small and medium-sized industry operators will experience direct competition with multi disciplined design, engineering and building companies, making it difficult for architecture-only firms to secure contracts for large-scale building projects. The industry’s largest companies will benefit from offering a broad range of predesign and other design services, including planning, interior design, landscape architecture and engineering services.

LEED Certification

However, an increasing number of companies will offer LEED-certified green building designs. Canada has more square metres of LEED-certified space than any nation except for the United States, according to the American Green Building Council. An increase in demand for environmentally conscious designs and potential savings on energy costs will further drive industry revenue growth over the next five years, especially for operators that specialize in green and LEED design.

Market Segmentation

The majority of revenue generated in the American Architects industry is through nonresidential architectural services. The four subcategories within this market include educational projects, office building projects, healthcare institutions and retail and restaurant projects. The products and services offered by industry operators are not expected to change much due to the COVID-19 (coronavirus) pandemic. However, demand for certain products and services may fluctuate during this time of economic uncertainty. For example, healthcare institutions and advisory services may endure a slight increase in demand due to the importance of healthcare institutions and advisory services for renovations. However, recreational facilities and other nonessential projects may endure a short period of decreased demand.

Office Buildings

Demand for architectural services for office building construction and renovation has grown in line with the overall American economy during the past five years. Office construction is principally determined by growth in the service sector workforce. The office segment comprises a variety of different sectors, including technology, finance and communications. Typically, demand peaks during periods of strong economic growth because the need for space rises as new businesses enter the market and existing companies expand operations.

Retail and Restaurants

Architects are also contracted to design retail buildings, including shopping malls, restaurants, bars and fast-food outlets. As a result of the adverse economic effects from coronavirus, the retail and restaurant segment has endured many changes to its architectural design structure that incorporates social distancing protocols and other changes to ensure these sectors can operate safely and effectively. This, in turn, has slightly boosted demand for new retail and restaurant spaces, which ultimately benefited the Architects Industry in Canada.

Healthcare Institutions

Healthcare facilities, which include hospitals, clinics, doctors’ offices, rehabilitation centres and general health centres, are typically owned by nonprofit corporations. Consequently, healthcare construction is usually funded privately or through a combination of public and private financing. Therefore, trends in private nonresidential construction investment, as well as demographic shifts in the number of elderly consumers in Canada, are strong indicators of demand for architectural services related to healthcare construction. This segment has endured a slight decrease as a share of industry revenue over the past five years.

Educational Institutions

Architects are commonly contracted for new construction projects, additions and renovations on educational buildings, such as schools, colleges and universities. Most education is publicly funded in Canada, with relatively few private schools at the primary, secondary and postsecondary levels. Therefore, educational construction projects are largely funded by the government, with budgetary priorities determining demand for new school construction and existing structure repair and renovation. Educational institutions are estimated to account for 9.8% of industry revenue. Due to the well-established educational institutions already in place, this share of industry revenue has decreased slightly over the past five years.

Other Non-Residential Buildings

Other categories within the non-residential market are architectural design services related to hotel and convention centre projects, recreational building projects and industrial construction projects. Improving employment, rising disposable income and higher consumer spending have led to an increase in commercial building activity and architectural service revenue. However, trends in oil and commodity prices determine industrial and commercial development in resource-rich provinces such as Alberta.

Single-Family Residential Projects

Conversely, single-family projects are expected to account for 3.3% of industry revenue. This segment has slightly decreased over the past five years, as multifamily buildings are growing more in popularity across major cities such as Toronto, Vancouver and Montreal.

Multifamily Residential Projects

The provision of services to multifamily projects is estimated to account for 14.6% of revenue. Architectural revenue from multifamily residential projects in Canada has increased over the past five years, as American real estate stability was driven by strong underlying fundamentals. A growing, aging, urbanizing and progressively wealthy American population has boosted residential real estate demand and increased revenue for architectural design services related to residential construction. For the majority of the past five years, strong revenue growth in this market occurred in major cities such as Toronto, Vancouver and Montreal.

Other services commonly include advisory services related to urban planning, project site master planning, interior design, landscape design and engineering services. Demand for these functions may be driven by private or public sources. This segment has increased over the past five years, as external competition increases and industry operators need to rely on other services for another revenue stream. This category is expected to account for 27.6% of industry revenue.

US Interior Design Industry

Over the past five years, the Interior Designers industry in Canada has exhibited moderate success, reflected through its revenue growth and solid operational expansion. Demand from downstream markets, predominately the residential construction sectors, has buoyed revenue growth during times of volatile commercial conditions. During the COVID-19 (coronavirus) pandemic, large drops in corporate profit, nonresidential construction and consumer spending all attributed to a large decline in revenue in 2020. Fortunately, demand from the commercial sector played its role in supporting revenue growth, as the industry relies on a diverse client base, including corporate offices, shopping malls, hotels, restaurants and hospitals.

The residential market has also been supported by rising residential construction, per capita disposable income and the number of households earning $100,000 or more per year. However, nonresidential markets experienced more volatile growth resulting in only a marginal rise over the past five years. Industry revenue is forecast to grow an annualized 2.3% to $2.1 billion over the five years to 2027. Industry revenue is anticipated to rise at a slightly slower rate than the previous five-year period in part due to a slowdown in the housing markets. Although residential construction and residential renovation expenditure are both forecast to expand, they are expected to rise at a slower rate than the previous five years. In addition, a slight decline in corporate profit is expected to further restrict the industry’s growth. Major commodity prices are expected to improve over the next five years, encouraging more demand for non-residential construction markets and driving general economic growth. Despite the slight slowdown in revenue growth, the industry’s profit margin is forecast to slightly improve over the five years to 2027.

Demand from non-residential building construction.  The commercial sector accounts for the most demand for interior design services. Typical projects from the commercial sector include corporate offices, restaurants, hotels, airports and hospitals. When these clients are expanding their facilities, commercial construction is projected to rise, increasing demand for professional interior design services. The value of non-residential building construction is expected to increase in 2022.

Industry Landscape

The industry is highly fragmented. According to Statistics Canada, almost 75.0% of industry establishments are nonemployers. The industry’s low barriers to entry have enabled many small non-employers to enter the industry, which has prompted industry enterprise growth. The number of industry enterprises is expected to grow at an annualized rate of 1.9% to 7,449, most of which are non employing enterprises. Similarly, industry employment is expected to increase at an annualized rate of 2.1% to 6,153 workers during the same period. The difference in growth between the two can be attributed to the increasing popularity of nonemployers that are able to charge lower prices. Despite employment rising at a quicker pace than enterprises, the industry’s average wage has increased over the past five years. This rise in the average wage can be mainly attributed to the amount of skill required by each employee.

With revenue growth and slight changes in wage costs, the industry profit margin, measured as earnings before interest and taxes, is expected to remain stagnant at 20.3% of revenue in 2022. This stagnation is primarily due to the coronavirus pandemic, which caused economic drivers to suffer in 2020 and the resulting economic recovery after the peak of the pandemic have caused those drivers to recover.

Due to profit stagnating, more interior designers are strengthening their product portfolio by including design layout services, which typically produce a higher margin. It should be noted that profit varies significantly depending on whether a company specializes in residential or commercial interior design. Projects for the residential sector tend to be more profitable, as commercial projects are typically prone to high price-based competition to secure contracts.

Industry Life Cycle

The Interior Designers industry in Canada is in the mature phase of its life cycle. Industry value added (IVA), which measures an industry’s contribution to the overall economy, is expected to grow at an annualized rate of 2.8% over the five years to 2027. Comparatively, the American economy is anticipated to grow at an annualized rate of 1.7% during the same period. Industry operators’ relatively standardized skill set and product portfolio, coupled with low technological innovation, is indicative of an industry in the mature life cycle stage.

Products and services have remained essentially the same, despite some industry operators gaining a competitive advantage with diversified portfolios, such as providing layout design expertise. Thus, price-based competition has intensified as operators attempted to secure favourable contracts with businesses, among other non-residential downstream markets. Conversely, rising demand for industry services from healthcare facilities, coupled with many new businesses entering the market over the next decade, may offer an opportunity for future industry growth. For example, industry operators are commonly hired by hospitals, doctors’ offices and extended care facilities to design and decorate patient rooms, entrances and waiting rooms. However, rising interest rates could hamper demand for both commercial and noncommercial construction, which may limit industry revenue growth.

Demand from businesses has decreased from 2020 since companies were more focused on staying operational than changing the interior of their locations. As economic conditions continue to improve, demand from each segment is forecast to grow.

Businesses (50.4%)

Establishments in this industry are commonly hired by architectural firms that outsource the services of interior designers. These designers, in turn, help plan and arrange the interiors of office, residential or commercial construction projects. Due to the scale and variety of these projects, a high portion of revenue from this market comes from architectural firms. Businesses can directly employ interior designers to create and style office spaces in a way that best uses space, safety and light while projecting the company’s corporate philosophy to employees and customers. Retail and commercial clients can hire interior designers to plan the interior of their shops and stores. For these projects, designers must be cognizant of safety issues, pedestrian traffic and local government building code requirements. A sharp decline in the value of non-residential construction in 2020 has driven a decline in demand for architectural services, which has shifted industry revenue away from commercial clients and toward residential clients, as interior designers are commonly hired by architecture firms. However, as the economy began improving after the peak of the pandemic, demand for the industry’s services is forecast to steadily increase over the five years to 2027.

Individuals and Households (30.4%)

Sales to individuals and households are driven by a range of economic factors, including unemployment and per capita disposable income levels. Throughout the majority of the past five years, a decline in unemployment, combined with a rise in disposable income, have led to an increase in demand for interior design projects, as individuals have more money to spend on non discretionary services such as a household’s design. Households typically spend the most on interior design work when they first move into a house. However, over the past five years, national residential expenditure on renovation has driven demand from this market. As a result, this segment’s share of total industry revenue is expected to rise during the five-year period. The proportional increase is not only the result of a rise in revenue for household projects but is also due to declines in other markets such as business clients.

Other (11.3%)

These clients include international companies, foreign governments and other nondomestic players. The main service provided for these clients is often merchandise sales. Collectively, these customers account for an estimated 11.3% of industry revenue. This segment’s share of industry revenue has slightly increased over the past five years, primarily due to the decreases in demand from businesses and corporations.

Government and Public Institutions (7.9%)

Interior designers also provide services to government-owned or operated institutions such as hospitals, universities and the offices of federal, provincial and municipal public institutions. Government clients are expected to account for 7.9% of total industry revenue in 2022. Within this market, one bright spot has been the healthcare sector, which has become a growing source of income for interior designers, as Canada’s aging population leads to greater demand for healthcare services. As a result, hospitals and other health providers have expanded capacity and hired interior designers to plan these new spaces, making them accessible for the elderly. With overall demand for municipal building construction rising over the past five years, this increased this segment’s share of industry revenue in 2022.

Government Regulations

Regulations for the Interior Designers industry in Canada are still being developed. Canada does not have widespread legislation to regulate this industry and currently, only Nova Scotia has a Practice Act, while six other provinces have Titles Acts. A Practice Act regulates who is permitted to perform the services provided by a particular industry. It requires industry participants to obtain a license before they can perform their services. A Titles Act regulates the use of a title. One must meet the criteria set out by the licensing body to use a specific title, for example, certified interior designer. However, Titles Acts do not prevent individuals from performing a particular service if they are not certified; they just manage the use of state-regulated titles. These acts are there to ensure that the public is aware of the education, experience and qualifications needed to become a registered service provider in the hope that people would turn to licensed providers as opposed to non licensed ones.

Operators in this industry, however, must adhere to health and safety precautions, local building codes and laws and environmental regulations put in place by various state legislatures and international organizations. For example, the International Code Council develops international building codes related to structural elements of a building, use and occupancy classifications, interior finishes and interior environment and accessibility. While these codes are non-binding and can be modified by provincial governments, they aim to outline the best practices within the industry, which are used as benchmarks for further legislation.

As this profession grows, the regulation of this industry is expected to increase and become more streamlined. For example, Interior Designers of Canada (IDC), a professional association for industry operators representing more than 5,000 members, proclaims that it wishes to have stringent regulations all across Canada, whereby all associations should have professional requirements for their members to adhere to. This would make it compulsory for industry participants to become members of a professional association and adhere to all its laws and regulations.

Additional Certifications

• Interior Architect Degree or Diploma – Staff
• Interior Design Degree or Diploma – Staff
• NCIDQ Examination for Interior Design Qualification

Products and Services

SS Designs provides two primary services: interior architecture and interior design services.  The following section summarizes each sub-service, and it’s average pricing:

Detached Building Architecture

For homes larger than 3,000 square feet. Designing a brand new space from scratch.

Commercial Interior Architecture

This is our primary service. Developing a new commercial space based on our client’s needs, size of space, their requirements to sync with city building codes.

Residential Interior Architecture

Working with architects and builders to create spaces which meet the client’s needs, and connects exterior concepts with interior design.

Commercial Interior Design

Design interior spaces by selecting finishes and materials to match the client’s brand guidelines, and vision for the space.

Residential Interior Design

Design interior spaces by selecting finishes and materials to match the client’s requirements, and vision for the space.

Project Management

Creating a project schedule and timeline for development, construction and budgetary requirements.  Work with contractors, suppliers and tradespeople to ensure deadlines are met, and materials arrive on time.

Pricing Model

Competitive Advantages

SS Designs will execute on the following competitive advantages:

Prompt Quoting and Service

SS Designs prioritizes prompt quoting and quick turnaround of proposals and service. By being responsive, clients will feel prioritized and satisfied even on the first stage of the service. Eventually, SS Designs will adopt augmented reality tools that will allow clients to set preliminary designs and get rough estimates and proposals. A standard proposal pack with estimated rates is always available, alongside the semi-annual catalog which will be provided to all prospective clients.

Software Utilization

Ms. Simmons and Ms. Thompson are both experts in 3DS Max and Corona Software for 3D rendering and creating design proposals. These are two of the most advanced software applications in the industry, and are currently not used by any competitors in the Chicago market.  The difference in quality between 3DS Max, Corona Software and the competition is staggering, and therefore the company will continue operating with these applications to help differentiate from the competition.

Creative Culture

There is an ongoing global trend on space saving due to the increase in condominiums in metro areas, including in Chicago, Dubai and Riyadh. Japanese and Scandinavian space-efficient designs are in demand, such as the Kanso concept of design. SS Designs has this at the core of its design philosophy. By adding unique and creative designs to this, the product becomes more attractive to the target markets. This is also a manifestation of the creative and professional working environment that Simmons is implementing into its business culture.

Positioning

SS Designs positions its services at the upper to mid tier of pricing in the market. By incorporating unique and contemporary concepts to interior architecture and design, the company can charge a higher price than the competition. By positioning the company in leading real estate markets such as Chicago, Dubai and eventually Riyadh, SS Designs will access an array of target customers that seek high-caliber concepts and designs.  The company will meet this market with appropriate positioning; communicating premium quality and service through all marketing channels.

Key Success Factors

Use of Advanced Architectural Planning Tools

Interior architecture is more advanced and specific due to the integration of advanced rendering and planning tools, starting with AutoCAD in the 90s up to 3d and rendering tools such as 3D Max and Corona Software. Computerized 3D models are now the norm when it comes to design. SS Designs will incorporate the latest architectural technologies to all services.

Competent and Established Team

Having competent and accomplished architects, interior designers, and design consultants is important in terms of acquiring clients, especially in the mid and high end sectors in North America and the Middle East. SS Designs takes pride in employing the best architects who have an eye for good design and are able to connect better with clients. Ms. Heba will also ensure that team members get competitive salary and benefits packages, as well as a positive and creative work environment.

Marketing Channels

Catering to a mid to high end market in North America and the Middle East, SS Designs must strike a balance between traditional and digital marketing. Effective traditional marketing strategies include presentations, scheduling meetings, showrooms, virtual showrooms, and the distribution of seasonal catalogs. Digital marketing strategies include search engine optimization, pay per click ads and community building and engagement on social media.

Understanding of Target Market

North American and Middle Eastern markets are diverse in terms of culture, economic situation, and, in the case of the UAE and Saudi Arabia, religious beliefs. North American architecture focuses on modern and sustainable design, though interior architectural designs vary. Meanwhile, the UAE and Saudi Arabia are more extreme in their preferences, such as luxury, futuristic and sometimes traditional designs.  As such, it is imperative for the Simmons team to understand the requirements of each local market.

Effective Project Management

Generally speaking project management is the process of managing the whole project; the programme, the budget, the execution and all the individual team members required to successfully complete a project.  A project manager within the luxury residential sector is responsible for ensuring that every element of the project, from start to finish, is planned for, communicated to all stakeholders, reviewed, approved and delivered safely within the timeframe and on budget. Effective project management is a key success factor that must always be upheld by SS Designs.

Sales and Marketing Plan

This sales and marketing plan includes traditional and digital marketing strategies.  In order to meet the company’s scale and expansion plans it is imperative to execute on the following:

Target Customers

The company’s target customers are segmented into the five following groups:

Hospitality

• Restaurants / Bars
• Beauty / Esthetician Salon
• Tourism Agencies

Finance and Law

• Law Offices
• Insurance Offices
• Business Centres
• Financial Institutions

Health Care

• Doctor’s Office
• Walk-in Clinics
• Physiotherapy Clinics
• Medical Pharmacies
• Private Schools
• Private Learning Centers
• Universities

Residential

• Single Family Homes (more than 3,000 sq ft)

Key Channels

Key channels are segmented into two groups: traditional and digital marketing channels.

Traditional Channels

Seasonal Catalogs

Seasonal catalogs have been an effective marketing channel and will continue to be utilized.  Every 6 months SS Designs will create a Spring & Summer catalog and Fall & Winter catalog.  These catalogs provide a unique way for clients to experience the SS Designs brand, outside of consuming content through a desktop or smartphone screen. Furthermore, this provides the company with a non-traditional way of marketing its services, and building an engaged community.

Onsite Visits

SS Designs will conduct visits to construction sites, real estate developers, offices, property managers and other potential clients. Seasonal catalogs will be distributed, and in person meetings held.  Prior to such in person meetings the company will utilize outbound phone calling and email metrics to make an effort to arrange such gatherings beforehand. Developers will then refer Simmons to their prospective tenants, which will eventually grow into paying clients.

Trade Shows / Community Events

SS Designs will also take part in trade shows and events in Chicago, Illinois, across the U.S.A., and eventually in the UAE and Saudi Arabia.

Digital Marketing Channels

Social Media

SS Designs currently utilizes Linkedin and Instagram to host a community of clients, and followers.  Both of the social media platforms will continue to be utilized moving forward; however, the company will launch a YouTube channel and Facebook page by February 2023.  These channels are an excellent place to remind past clients of the work the company is doing, and to cultivate new leads and awareness of SS Designs.  The company will work with a third party marketing form to post at least 3x a week across Linkedin, Instagram and Facebook.  Publishing videos on YouTube will be completed less frequently.

Search Engine Optimization

Once the updated website is completed there will be monthly work completed on additional landing pages and blog articles.  This approach will increase the volume of website pages, and increase the sites ranking on search engine results pages (SERPs).  The company may work with BSBCON or another firm to establish specific landing pages that will reflect the target audience.

Pay-Per-Click (PPC Ads)

Pay-per-click (PPC) Ads or “paid ads” are utilized across social media channels and search engines alike.  For SS Designs, PPC Ads will focus primarily on Google to rank for relevant search queries.  Google Ads are an excellent way to reach new audiences.  At first glance, they can seem expensive, however when the lifetime client value of new leads is considered, and the referrals generated from such leads, Google Ads often result in being the most direct marketing channel for most modern companies.

Email Marketing

Email marketing continues to be an effective digital marketing channel.  SS Designs will continue to collect the contact information of new leads and clients, then record such information into a respective customer relationship management system (CRM).  Either MailChimp and/or HubSpot will be utilized as a CRM.  Each quarter, the Simmons team will discuss ideas for value based content to include in the monthly email marketing campaign.  Instead of “selling”, the company will focus on educating email recipients, and positioning SS Designs as a market leader that is building awareness to its community.

Key Performance Indicators

The following table outline key performance indicators (KPIs) which will be followed in order to track the performance of each silo within the company:

SWOT Analysis

Outbound Sales Approach

• Create a list of developers, builders, architects, real estate agents, business owners, and direct target customers.
• First, contact the lead by phone.  They will often ask you to email someone from their organization.
• Take the email address, record it and send an email.
• Arrange a video call with Heba via her calendly schedule.
• The Sales Associate will pass all information over to Heba, so she has a summary of the lead.
• During the Discovery Call, Heba will ask questions to better understand them.
• If it’s a developer or builder, the goal will be to have them refer their future tenants to SS Designs. If it’s a direct target customer, the goal is to have the lead interested in a catalog, and initial proposal.
• If the lead is interested in proceeding please continue with “Phase 0 (Pre-Project) #3”.  If we do not hear anything back, follow up with the lead via phone call / email.

Operational Plan

Interior Architecture Project Process

Phase 0 (Pre-Project)

Discovery Call

• We host a discovery call via Zoom, phone call or in person to understand their requirements and budget.

Initial Proposal

• Provide a proposal (catalog).  Every 6 months we update it (spring/summer and fall/winter catalogs).  We want to ensure they are confident so we provide an initial presentation (mildly customized).

Contract Agreement

• We send a contract agreement to the prospective client via DocuSign. (signed)

Initial Invoice

• We send an initial invoice to the prospective client for 50% of the total cost (paid).

Create the File Project

• We create the physical and digital file document via Google Drive, including:
• Client requirements
• Client name, business name, mailing address, phone number, email address
• Pictures from the client
• Architectural, mechanical, electrical drawings for the property (separate folder – “Building Drawings”)
• “Concept Presentation Folder” is created
• “Construction Drawings Folder” is created
• “Building Permits Drawings Folder” is created
• “Minute Meetings Folder” is created
• “3D Rendering Folder” is created

Initial Team Meeting

• An internal team meeting is scheduled to discuss the project, deliverables and team responsibilities.

Project Schedule Proposal

• Once we have received the paid invoice and signed consulting agreement we provide a receipt and a project schedule with specific dates and deadlines.

Understanding Client Preferences

• We send the client a series of inspirational ideas (pictures) to gauge their preferences and personality.

Phase 1 (Concept Presentation)

Commence the Concept Presentation

• Once received, we commence development of the concept presentation for style and an initial proposal for the “layout”.

Concept Presentation Meeting

• We host a meeting via Zoom or in person (preferred) to present the initial concept presentation.  We record the meeting minutes (what is said).  We send the meeting minutes to the client and CC everyone involved in the meeting.

Modifications to Concept Presentation

• Once we have received their input we proceed with modifications to the initial concept presentation proposal. We then send the initial concept presentation with the required modifications to the client.

Confirmation to Proceed

• We receive their feedback, and require a confirmation to proceed via email.  We need them to “confirm or approve the layout”.

Phase 2 (Design Presentation)

Commence Phase 2

• We begin creating a furniture layout, 3D Rendering, and basic selection finishes.

Phase 2 Presentation Meeting

• We present the furniture layout, 3D Rendering, and basic selection finishes to the client.  This step is extremely important and we make our best effort to have the meeting in person (if not via Zoom).  We record the meeting minutes (what is said).  We send the meeting minutes to the client and CC everyone involved in the meeting.

Feedback on Modifications

• We receive their feedback and understand where modifications are required.

Execute on Modifications

• Modifications are made and the updated Phase 2 Presentation is presented via email to the client.

Approval of Design Presentation

• We go back and forth until we receive their approval.  We send them formal approval for Phase 2 via DocuSign, email or in person and require a legal signature from the legal signing authority (LSA).

Phase 3 (Technical Drawings)

Create Tenant Improvement (TI) Package

• Tenant Improvement Package (Phase 3) is created.

Tacking the TI Package to the City

• Two paths forward – the contract might say that SS Designs takes the Tenant Improvement Package to the city OR it will state that the client takes the package to the city (which is less common).

Prepare Specifications

• Meanwhile we prepare specifications (quantities, millwork and construction documents).

Review Application Package with the City

• We review the application package with the city (if we are contracted to work with the city).

Resubmit to the City

• After receiving the city’s feedback we make modifications to the Tenant Improvement Package and resubmit it to the city.

Phase 4 (Project Budget)

Receive Supply and Trades Quotations

• We utilize our own contacts/suppliers/trades to receive supply and construction quotations, and then present each quotation to the client.

Submit Formal Project Budget

• Once we receive the client’s feedback we develop a formal project budget, and submit it to the client for their review and approval.

Signature for Specifications & Project Budget

• The client will sign for project specifications and project budget.

Submit the Final Project Package to Client & Contractors

• We submit the project package by email (PDF) and AutoCAD to the client and each contractor. The legal contract between the project and contractors is to be developed and managed by the client.  This step marks the finalization of services rendered for Interior Architecture.

In the situation the client seeks to retain SS Designs for project management services, a separate contract would be established.

Health & Safety

WorkSafe enforces the Occupational Health and Safety Regulation. It contains requirements and standards that all workplaces must meet to promote occupational health and safety, as well as to protect workers from work-related risks to their health, safety and well-being. General rules such as fire safety, occupational first aid, evacuation and rescue must be met and enforced by Smart Spaces Designs The company will also look into supplemental private health insurance for employees on top of the public health care plan. The company also intends to provide vehicle and accident insurance, as architects and interior designers will be traveling often, either by car or public transport, to project sites and client meetings.

Equipment & Inventory

SS Designs will utilize the following equipment and tools to successfully execute on operations:

Digital Hardware and Software

• Simmons and Ms. Thompson will use a MacBook Pro for design activities, as well as managing and operating the business, including finance and marketing. Apple laptops with the new M1 and/ir M2 chips can run Autodesk, Corona and other design software programs efficiently. Laptops are also mobile and can be brought off-site to client meetings.
• A back-up iPad with a sketching tool such as Apple Pencil is also useful for quick designs and presentations to clients on-site.
• Internet connection and company mobile phones will also be provided
• Autodesk 3DS Max Software is a professional computer graphics program for making 3D animations, models and images. It provides professional interior designers and design studios industry leading 3D interior rendering tools that give them the power to bring their concepts to life.
• Corona Renderer delivers high-quality, physically based shading for production rendering. “Be an artist, not a technician, and achieve realism with greater ease than other rendering software.” Corona Renderer is an integrated solution for selected 3D applications
• Google Workspace is a collection of cloud computing, productivity and collaboration tools, software and products developed and marketed by Google. It includes Google Drive, Google Docs for word processing and Google Sheets for spreadsheets and financial documents. This is free of charge for Gmail account holders, but the company will pay for additional cloud storage when required
• Presentation tools such as Microsoft PowerPoint and video editing software like Adobe Premiere Pro CC will also be used to create presentations and video walkthroughs of SS Designs’s interior design and architecture projects.

Interior Design/Architectural Supplies and Tools

• Drawing tools for sketching room designs and plans include a pencil, ruler, compass, protractor and graph paper.
• The color wheel demonstrates the relationships of primary, secondary and tertiary colors. The wheel helps designers create pleasing color schemes based on a combination of complementary and analogous colors.
• Paint manufacturers produce sets of paint chips or strips of colors for each of their lines. Interior designers use them, along with fabric books, to select room colors and coordinate paint colors with fabric, furniture and accessories.
• Interior designers rely on measuring tapes to verify and calculate dimensions of interior spaces and furnishings. Rigid tapes measure straight lengths while cloth tapes calculate curved and angled surfaces.

Transportation Vehicle

• The company will look into a long term rent or a purchase of an official company vehicle which will be used to travel to client meetings, construction sites, and conferences. The vehicle will have ample space to transport marketing materials such as model designs, pull-up banners and brochures.

Office Furniture and Fittings

• A sufficient number of work desks, conference tables, chairs, air conditioning units, kitchen/pantry appliances are needed in the Chicago office
• The company will also have a 3-function laser printer, scanner and copier to print drawings, proposals and marketing materials

This section outlines the company’s current and future locations:

Headquarters – Chicago, Illinois, U.S.A.

SS Designs’ headquarters is located at 120 S Morgan St #725, Chicago, IL 60607, United States. This is a strategic location because of its close proximity to the financial district, and downtown Chicago. By being close to major corporate offices and hubs, SS Designs will be able to keep track of upcoming real estate developments and visit potential clients needing to revamp their offices. Also, the team can easily invite clients to the company headquarters, situated in the iconic Chicago convention center. The office has workstations and a conference room for internal team and external client meetings.

Year 3 Expansion (2025) – Dubai, U.A.E.

SS Designs is planning its expansion to Dubai, UAE. The key industries in Dubai with tremendous growth potential include technology and finance. With foreign and local investors pouring in investments in this tax-friendly and accessible country. Dubai Internet City has over 130,000 square meters of prime commercial office space, in which over 1,400 companies with over 10,000 workers are based. There are 25 low, mid and high-rise office structures here, occupied by multinational companies such as Facebook, LinkedIn, Tata Consultancy, Oracle, as well as UAE-based companies such as Ducont. It is also adjacent to Dubai Media City and Dubai Knowledge Park, which will introduce the company to expanding sectors, as well as high-earning professionals who seek premium interior architecture and design services for their own residences.

Year 5 Expansion (2027) – Riyadh, Saudi Arabia

By 2027, SS Designs intends to capitalize on the projected growth of the Saudi Arabian economy. Riyadh is an important financial, business and manufacturing center. Major banks are headquartered in the city, as well as numerous private companies. Every publicly quoted company is compelled by local laws to have an office in the city. The Business Gate in the Qurtuba district of Riyadh comprises 110,000 square meters of office space, 5 star hotels with 350 rooms, 4 star hotels with 250 rooms and 5,000 square meters of retail space, as well as an exhibition and convention center with conference and banqueting facilities. This area has easy access to offices, including Alcatel Lucent, Sony and Samsung.

Risk Analysis

Management Team

Currently, Smart Spaces Designs has two management team members including:

Donna Simmons

Chief Executive Officer

Ms. Simmons is the CEO for SS Designs and she plays a major role in executing strategies to ensure the growth of the company. Her passion for working smart translated into designing smart work spaces for her clients.  She obtained her management skills from collaborating with various clients and projects in the last 7 years.

Marylou Thompson

Senior Designer

Ms. Thompson has worked with Ms. Simmons in various design projects for the last 5 years.  She has valued her client’s ideas and has worked well with them without compromising her design standards.  Her network in the design industry will help the company bring in more projects and increased revenues.

Key Personnel

Operations Director

• Playing a leading role in compiling company budget and growth strategy, particularly the expansion to Dubai and Riyadh
• Executing strategies to optimize company and asset growth
• Ensuring expertise and effectiveness of architects and designers
• Creating financial reports
• Managing capital, accounting, and bank processes
• Driving and leading performance reviews, to ensure an engaged and skilled workforce
• Initiating improved business practices
• Collaborating with architects, designers and administrative staff in building an environment of collective responsibility and accountability
• Ensuring adherence to key performance objectives to meet business and customer expectations

Administrator

• Welcoming visitors and directing them to the relevant office/personnel
• Clerical duties such as answering phone calls, responding to emails, and preparing documents
• Coordinating and managing appointments, meetings, and the conference room schedule
• Performing bookkeeping tasks such as invoicing, monitoring accounts receivable, and budget tracking
• Maintaining general office files, job files, vendor files, and others related to the company’s operations
• Purchasing office supplies, equipment, and furniture
• Oversee the maintenance of office facilities, and equipment

Senior Architect

• Reviewing and designing architectural and engineering plans
• Ensuring all plans are compliant with American government health and safety regulations
• Researching and maintaining knowledge of various engineering disciplines, application methods, and materials
• Monitoring the work of other Architects and making recommendations and scheduling workshops
• Providing guidance to subcontractors like builders, plumbers, and electricians, and helping them interpret design specifications
• Liaising with clients to ensure all issues are addressed in a timely manner, and that project requirements are met
• Ensuring the team works together to achieve set goals and targets
• Acting as a mentor to new Architects and helping them fine-tune their design skills and improve their industry knowledge
• Networking and consulting with various industry professionals
• Participating in client meetings to discuss design plans and gather feedback on preliminary designs
• Reviewing construction documents to ensure that specifications meet design requirements
• Coordinating with architects and contractors to ensure that construction meets design specifications
• Creating conceptual sketches, renderings, and illustrations to communicate design concepts to clients
• Compiling data regarding client preferences, lifestyle habits, and architectural styles to create a design concept that meets the client’s needs in terms of style and ergonomics
• Presenting design concepts to clients in order to gain approval of preliminary plans
• Developing interior design concepts for commercial, retail, or industrial spaces
• Consulting with clients about their needs in order to create a design solution that meets their goals within their budget constraints

Intermediate Designer

• Oversee and supervise junior team members on projects within the target industries
• Develop overall furnishing layouts for per industry standards
• Independently prepare Concept Design presentations including rendered plans, section elevations, Color/Material boards, and furniture/fixture/accessories selections using Adobe CC and AutoCAD
• Oversee and review Junior Designers’ rendering of simple floor plans and select elevations
• Work independently to render detailed floor plans and detailed elevations
• Conduct product resource selection for ongoing and future projects
• Develop Furnishing, Color and Material Boards, including materials, fabric, and imagery
• Coordinate Computer-Generated Imagery (CGI) with Ms. Thomspson

Junior Designer

• Outline client design objectives
• Conceptualize and sketch design plans
• Determine cost of completion and project requirements in the budgeting phase
• Set a timeline for the completion of an interior design project
• Source materials and products included in plans
• Create ‘mood boards’ to sample your design vision
• Utilize computer applications in the design process
• Inspect design after completion to determine whether client goals have been met

Graphic Designer

• Planning concepts by studying relevant information and materials
• Illustrating concepts by designing examples of art arrangement, size, type size and style and submitting them for approval
• Preparing finished art by operating necessary equipment and software
• Coordinating with outside agencies, art services, web designer, marketing, printers, and colleagues as necessary
• Contributing to team efforts by accomplishing tasks as needed
• Communicating with clients about layout and design
• Creating a wide range of graphics and layouts for product illustrations, company logos, and websites with software such as photoshop
• Reviewing final layouts and suggesting improvements when necessary

Recruitment Plan

Recruitment, Hiring, Onboarding

Receiving New Candidates / Recruitment

We primarily post job postings on Linkedin, Indeed, and also receive referrals from industry contacts.

Hiring Process

• Ask for a resume and portfolio.
• We arrange a 15 minute phone call interview and ask questions.
• Have an initial interview in person.
• Second in person interview – we provide them a small assignment which takes around 3 hours to gauge their skillset and productivity.
• We confirm their references, and arrange a phone call to discuss the candidate.
• We send them a personality test and review their results.
• Founder, Donna Simmons creates a formal job offer and sends it to the candidate.
• The candidate reviews, and has the opportunity to discuss the offer. If required, revisions will be made.
• The job offer is signed.

Onboarding a New Team Member

• We request their SIN number, address, phone number, email address, legal name, driver’s license #, and bank account / institution #.
• We send this information to our accountant and ensure they are set up properly.
• We then send the new team member an SS Designs – Employee Handbook
• We prepare a start date and propose it to the new employee.
• We send a welcome email to the new employee and CC the rest of the SS Designs team.
• The new employee is welcomed on their first day.  The first day is typically quite slow where they shadow other team members.
• Every day for the next 2 weeks we prepare specific training to ensure they understand all processes.

Financial Plan

The following financial plan was conservatively developed including a pro forma income statement, cash flow statement and balance sheet.

Pro Forma Income Statement

Pro Forma Cash Flow Statement

Pro Forma Balance Sheet

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Interior Design Business Plan Example

Published May.05, 2017

Updated Apr.23, 2024

By: Noor Muhammad

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Table of Content

Do you want to start an Interior Design business plan?

Like all other businesses, starting an interior design business can be hard, no matter who tries to start it. But having an interest in the niche can get you ahead of many.

A business plan contains all the necessary details needed to start a business. All businesses start with an idea and a business plan, be it a business plan for interior design or an engineering consulting business plan .

A business plan will help you figure out all the requirements you need to fulfill to start a viable business. You can learn about the structure of a business plan online . You can also go through sample business plans related to your niche to learn all the details. You can also learn how to write a business plan for interior design by going through the sample we’ve provided below.

Executive Summary

2.1 about the business.

Pro Interior Design will be an Interior Design startup established in Montana. The main target of the business will be to provide optimal design and decoration services to the residential as well as the commercial community throughout Montana. The business will offer various services ranging from full building planning to designing small spaces. 

2.2 How Will the Business be Managed? 

No company can succeed without good management. Therefore, before establishing an interior design start-up business , you need to develop a management plan.

A good practice is to hire skilled managers for the task. Besides, business management software also helps conduct business operations without difficulty.

To ensure good management of all aspects of your business, you need to develop an interior design studio business plan. You can learn how to develop a good business plan through this executive summary sample business plan for interior design. 

You can also get guidance regarding good business plans through plans of related niches like business plan for banking to learn about finances. In your business plan, you will need to ensure that all aspects of the business are well-planned beforehand. Your business plan interior design should include technical, financial, personnel, and marketing details to ensure a successful start of the company.

2.3 Customers of Interior Design Company

The customers of Pro Interior Design will belong to all domains, professional as well as regular. The recurring and targeted customers of the start-up will be:

• Residential Communities
• Educational Facilities
• Event Spaces

2.4 Business Target

The target of Pro Interior Design as mentioned in our interior design firm business plan pdf is to gain a 30% market share of the Montana Interior Design market within the first 2 years. 

Our financial targets to meet for the first three years of our launch are displayed below:

Company Summary

3.1 ownership .

Pro Interior Design will be owned and operated by Grace Ralph. Grace completed her BFA two years ago after which she worked with an architecture and design firm. However, the idea of starting her own unique brand of interior design services appealed to her. So, when she had enough capital, she decided to launch Pro Interior Designs. 

3.2 Why the Interior Design company will be started

Grace wanted to provide a flexible range of services. She noticed that most interior design companies were providing services at expensive rates and they were unaffordable for small workspaces or families. She decided to provide smaller packages and individualistic services to target the often-ignored market.

3.3 How the Interior Design company will be started

Step1: Develop a Plan

To start an interior design business, you will need a business plan for an interior design firm. Business planning is crucial as it helps you combine all your operations to achieve the specific and measurable goals that you had set for the business.

To learn what components must be included in a business plan, you can take help from the interior design business plan sample pdf provided here. You can also refer to related plans like an architecture firm business plan . 

Step2: Get Funding

The next step is to get the money for starting your business. When you first start a business, chances are that you will not have enough monetary resources to scale your business idea the way you need to. That is where investors come in. You can add such aspects in your business plan for an interior design company that shows financial feasibility to attract potential investors. 

Step3: Pick a Location

Next, you will need to find the perfect place for your office. For Pro Interior Design, Grace decided to procure a regular office space right next to a popular florist shop in the commercial center. 

Step4: Go Online

Businesses need to consider their online presence as that is where most transactions are carried out nowadays. To cater to this, Grace decided to hire a social media manager to maintain company personas on the web. She will also invest in the development of a website for basic communication with clients.

Step5: Promote and Market

Marketing is a very important aspect to ensure the success of a business. To promote the business, Grace will personally see the progress of social media managers and invest in other forms of marketing.

Whether you are starting a design business from home or not, you will need to decide on a list of services that you will provide to your customers. Deciding on the scope of services in your interior design firm business plan helps you figure out other details like finances and marketing ideas for your business. 

This planning is an essential part of the business plan of any company. So, whether it is a construction company business plan or a business plan for interior design services, you will need to first decide which services you will be offering to your customers. 

In this interior design business plan example, we are providing the services that will be provided by Pro Interior Design. 

• Space Planning

The designers at Pro Interior Design will help you model your spaces according to your need. In this way, offices can adequately utilize the space that is available to them and families can make the most of their homes/ apartments. 

• Decorative Selections 

Pro Interior Design will offer customized and domain-specific decorative selections to its customers. Our designers will make your spaces alive with lighting and hardware selections. 

• Furniture & Accessories

Our company will also provide a furniture and accessories selection service where our designers will offer tips and samples to customers to choose from. 

• Art Selections

For our more artistic and ambiance focus customers, we will also offer the services of special art and design consultants that will help the customers in finding the best art pieces for their spaces be it an office or a room.

Marketing Analysis of Interior Design Company

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

Starting an interior design company can seem like a tremendous task with many complexities involved. The process becomes easier if you do a marketing analysis first. The marketing analysis helps you go through interior design business plan examples and learn how your competitors are running various operations.

You can gain in-depth insight into your target market by going through different interior designer business ideas. Afterward, when you develop your own business plan for an interior design firm. You should use your knowledge about past, present, and future market trends to shape your marketing strategy.

For this interior design marketing plan example, we are providing the market details for Pro Interior Design. You can use these as guidance for your own interior design startup business plan.

5.1 Market Trends

According to IBISWorld, the US Interior Design industry has a market size of about $17 billion with almost 120,000 businesses operating throughout the country. The industry is also expected to grow at a rate of 3.1% in this decade which means that it is prime time to open a business in this niche. 

5.2 Marketing Segmentation

The target customers of Pro Interior Design according to this sample business plan interior design company are divided into the following groups:

Business plan for investors

5.2.1 residential community.

Our main target customers will be the residential community of Montana. As Pro Interior design provides flexible services at both a small and large scale, these customers are expected to make use of our small-scale services the most. They are expected to utilize our designers for space planning and decorative services. 

5.2.2 Offices

Our second target customers will be the small and large businesses around the area that needs to remodel their offices or want consultations regarding the design and space planning of new spaces. 

5.2.3 Educational Facilities

We will also provide services to educational facilities that want to utilize their spaces to the maximum. Our trained designers will help these institutions make a space that is truly focused on learning.

5.2.4 Event Spaces

Lastly, we will also team up with event planners to provide services regarding space consultation, furniture, light, and hardware accessorizing. This will allow us to gain more regular customers in the event planning niche

5.3 Business Target

• To become one of the top 3 interior design startups in our city within the first year.
• To expand the range and scale of our services to cater to large projects.
• To earn a profit margin of $10k per month by the end of our second year.
• To gain customer confidence and satisfaction and maintain it above 96%.

5.4 Product Pricing

Our prices will be much less as compared to our competitors in the market because we offer a larger range of small-scale services for homes and offices. This will be a significant advantage for Pro Interior Design in the market.

Marketing Strategy

While writing a business plan interior design, you need to focus a lot on your marketing strategies as they stand to be the difference between a business that is successful and one that is not. A marketing plan should be included in your interior design business plan company description before you arrange for establishing the business in a physical location. 

And just like a real estate flipping business plan , your business plan interior design company should also include details about how you will market your services.

Below, we are presenting the marketing plan for an interior design business called Pro Interior Design: 

6.1 Competitive Analysis

• We provide small-scale services for houses at a much cheaper rate.
• Our customers can communicate with us to create different packages suited to their needs.
• Our customers can get a 5% discount on all services if they register with us for a year.
• Our policies are customer-centric, we remain in touch with them through the website. 

6.2 Sales Strategy

• We will promote our business by holding small events throughout the city.
• We will use social media platforms to get the word out
• We will offer a 30% discount to the first 50 customers.

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, personnel plan.

One of the essential keys to learning how to run a successful interior design business is to hire a good workforce. Well-suited employees can help your business boom. Especially, in a business in which sales depend on direct interaction between people and customers, the qualifications, skillset, and behaviors of employees become all the more important. To have an idea of what staff is usually hired in such businesses, you can go through remodeling business plan or an interior design company business plan pdf like the one shown here. 

7.1 Company Staff

• 1 Co-Manager to help in overall operations
• 5 Certified Designers
• 2 General Cleaners
• 2 Sales Executives to handle social media and website
• 1 Accountant
• 1 Receptionist

7.2 Average Salary of Employees

Financial plan.

To ensure that your business is a success, you will need to develop a financial plan for an interior design business. A good financial plan should include a detailed analysis of the price of your products, your sales, and the profit earned against each sale.

Moreover, a comprehensive financial plan should include 3-year projections of break-even analysis, business ratios, balance sheet, etc. to help you direct your finances in a better way.

In this interior design firm business plan pdf, we are detailing the financial plan for Pro Interior Design. You can also refer to other business plans like HVAC business plan to find out what you should add to your financial plan.

8.1 Important Assumptions

8.2 break-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

• How do I start my own interior design business?

You can start your own interior design business by thoroughly researching your idea and developing an interior design business plan sample to present to prospective investors. 

• What are the 7 elements of interior design?

The business ideas for interior designers are based on the 7 main elements of interior design which are:

• How do Interior Designers get clients?

Interior designers can either work for big architectural and design firms or freelance as consultants. And once they have enough clients, they can also start their own businesses with the help of an interior design business plan. 

• What are the types of markets for interior design?

Interior design has a very vast market as most professional spaces need to be properly designed. Nowadays, people also prefer to hire design consultants to help with their homes. In this interior design firm business plan pdf, you can see the marketing segmentation part for greater detail.

Download interior design business plan sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Home Decoration Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2C Sector

Are you about starting a home decoration business? If YES, here is a complete sample home decoration business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a home decoration business. We also took it further by analyzing and drafting a sample home decoration marketing plan template backed up by actionable guerrilla marketing ideas for home decoration businesses. So let’s proceed to the business planning section.

If you are interested in starting a home decoration business, you can be rest assured that there is no limit to the fortune you can make from the industry as long as you are creative and have good networking skills. If you are looking for a business to start as an entrepreneur with a design and creativity background, then you can consider starting your own home decoration company.

Although a home decoration company can be operated from home, especially if it is being managed by an individual, but it pays to operate from an office facility. The truth is that you would need an office space to be able to run this type of business if indeed you want to work for corporate organizations and even government agencies.

Just ensure that you secure an office decent enough to host the caliber of clients you will be dealing with. An office in the business district of your city might just be ideal for you – but all the same, you don’t need to go beyond your means to get a very expensive office space. It is advisable to start your business small and then grow it big.

If indeed you are interested in starting a home decoration company, then you will surely find this comprehensive business plan very helpful.

A Sample Home Decoration Business Plan Template

1. industry overview.

Interior decorators, also known as home decorators, work with homeowners or business owners to furnish and adorn an interior space according to their preferences. The decorator must usually work within a budget and order the necessary design elements for their clients.

The truth is that interior design is a multidimensional vocation that covers activities such as conceptual development, communicating with the stakeholders of a project, management and of course the execution of the design (project).

Home decoration companies are responsible for planning the design of both living and commercial facilities such as hotel, motels and lodges; they have mastered the art of turning their ideas or concept into reality. The projects that home decorators handle can be broad in scope.

It could range from structural modifications to the selection of matching furniture, curtains or blind, wallpaper and lighting et al.

The Interior Designers industry is indeed a big industry that has experienced consistent growth and innovations over the last five years. However, the industry is projected to experience marginally better conditions over the next five years.

As long as the housing market is expected to improve strongly, there will also be corresponding growth for residential interior designers as existing home sales and housing stats make up ground over the five-year period.

So also, increase in corporate profit, growth and expansion of corporate organization will open up business opportunities of interior design companies because there will be need for organizations to remodel their facilities to meet up with changing trends.

Statistics has it that the Interior Designers industry has a low level of market share concentration. For instance, in 2016, the top four leading interior decoration companies accounted for less than 10.0 percent of the industry’s total revenue. It is fact that market share concentration has not changed significantly in the last five years.

It is important to clearly state that the Interior Designers industry is a highly fragmented industry with thousands of players, of which only a small percentage of the players generated an annual revenue exceeding $1.0 million. A large number of players in interior designer industry are self-employed because of the nature of the job they do and of course the low startup capital required to start the business.

The interior design industry is indeed a very large industry and pretty much active in all the parts of the world. Statistics has it that in the united states of America alone, there are about 102,848 registered home decoration cum interior design companies responsible for employing about 127,467 and the industry rakes in a whooping sum of $13bn annually.

In 2014 alone, the federal government of the United States of America spent a total sum of $11,270,048 on Interior Designers. During the period in review, they awarded 437 interior design contracts to 77 interior design companies, averaging a value of $146,364 per company.

The industry is indeed highly competitive and of course a growing industry with steady growth rate of 3.0 percent annually. The interior design industry is very open to any aspiring entrepreneur who has the required skills to start his or her own home decoration business.

As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition.

The interior design industry will continue to blossom because more and more households and corporate organizations are beginning to realize that somehow, they would need the services of home decorators to help give their facility the needed look befitting of their organization or personalities.

From all available statistics, it is safer to say that the industry is growing steadily despite the competitive nature of the industry.

Lastly, some of the factors that encourage entrepreneurs to start their own home decoration company could be that the business is easy to set up and the startup capital is indeed affordable; you can actually start your own home decoration business from the comfort of your house.

All you need to do is to create an office somewhere in your house. People usually pay you for the result you can deliver as it relates to helping them design their facility to their expectation.

2. Executive Summary

James & Janell® Home Deco, Inc. is a U.S based home decoration (interior design) company. We have been able to secure a standard office facility in a busy business district in Las Vegas – Nevada. We are a world class home decoration company that is set to compete in the highly competitive interior design industry not only in the United States market, but also in the global market.

James & Janell® Home Deco, Inc. will be involved in the all aspects of home decoration cum interior design services such as Residential interior design, Commercial (Hotels and Lodges) interior design, Merchandise sales, home decorating consulting services and other related services.

Our business goal is to become one of the leading home decoration companies in the United States and we will make sure that every home decoration job that we do can favorably compete with the best in the industry. Our workers are going to be selected from a pool of talented and highly creative home designers in and around Las Vegas – Nevada and also from any part of the world especially from Milan and Paris as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading home decorators in the United States and throughout the globe.

At James & Janell® Home Deco, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

James & Janell® Home Deco, Inc. is founded by two siblings James Creflo and his twin sister Janell Creflo. They both graduated from The Interior Design School of London and they have over the years garnered the required experience that will position them to become a major force to reckon with in the industry in the United States of America and across the globe.

3. Our Products and Services

James & Janell® Home Deco, Inc. was established with the aim of maximizing profits in the interior design industry. We want to compete favorably with leading home decoration and interior design companies in the United States which is why we have put in place a competent quality assurance team that will ensure that all our designs and related services rendered meet and even surpass our customers’ expectations.

Our products and services are listed below;

• Residential home decoration cum interior design services
• Commercial (hotels, motels, and lodges) interior design services
• Merchandise sales
• Home decorating consulting services
• Other related services like giving interior makeover to historic buildings, vehicles, such as ships and aircraft et al.

4. Our Mission and Vision Statement

• Our vision is to establish a standard home decoration company whose services and brand will not only be accepted in Las Vegas – Nevada but also throughout the United States of America and other parts of the world.
• Our mission is to build a home decoration company that will be known to execute top notch projects and to become the number one choice of real estate agencies and other stake holder in the industry. We want to build a home decoration company that can favorably compete with other leading brands in the industry.

Our Business Structure

James & Janell® Home Deco, Inc. is a home decoration company that intends starting small in Las Vegas, but hopes to grow big in order to compete favorably with leading companies in the industry both in the United States and on a global stage.

At James & Janell® Home Deco, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Creative Director

Human Resources and Admin Manager

• Sales and Marketing Executive
• Home Decorators / Interior Designer

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job result
• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Creative Director:

• Serves as project manager for the organization; works directly with employees
• Responsible for designing concepts for home makeover and facility uplifts
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications / journals; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Ensures that the organization works in line with international best practices.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for James & Janell® Home Deco, Inc.
• Serves as internal auditor for James & Janell® Home Deco, Inc.

Home Decorators/Interior Designers (4)

• Liaising with clients to determine their requirement and budget
• Responsible for inspecting and surveying buildings
• Responsible for negotiating fees and setting schedules for the project
• Responsible for researching and drawing up rough plans
• Responsible for developing detailed designs and choosing materials
• Responsible for supervising the work as it is carried out.
• Responsible for preparing drafts or material based on an agreement brief.
• Research and advice the organization on style, genre and other trendy info as it relates to home decoration/interior design.
• Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, SMS or phone) provides the client with personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the HR manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries

6. SWOT Analysis

James & Janell® Home Deco, Inc. hired the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured home decoration business that can favorably compete in the highly competitive interior design industry in the United States and the world at large.

Here is a summary of the SWOT analysis that was conducted on behalf of James & Janell® Home Deco, Inc.;

Our central strength is no doubt the power of our team; our workforce. We have a team of creative and highly proficient home decorators cum interior designers, a team with excellent qualifications and experience in various niche areas in the interior design industry.

Aside from the synergy that exists in our carefully selected home decorators, we have a robust relationship with key stake holders in the real estate industry and of course our designs and services will be guided by international best practices.

As a new home decoration company in Las Vegas – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from the government and other top profile clients in the already saturated and highly competitive interior design industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

The opportunities in the interior design industry is massive considering the number of individuals and corporate organizations acquiring new properties and would need the services of home decorators to give the facilities facelift. As a world class home decoration company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power hence lesser houses would be purchased. Another threat that may likely confront us is the arrival of a new home decoration company in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

Although there are top flight institutions where people go to study interior designing, but it common to find people who don’t have formal training running their own home decoration business. This is what accounts for the high number of sole proprietorship in the interior design industry.

Aside from on-the-job training, most home decoration cum interior design companies usually offer short training (could be in – house) in specific areas such as presentation skills and IT packages.

As a home decorator, you are expected to keep tabs with new trends that are always coming up in the industry. Most interior designers ensure that they follow the traditions or patterns that are synonymous to a region. For instance, as a home decorator in the Arab world, your designs are expected to follow the traditions and pattern in the region.

8. Our Target Market

There is a wide range of both corporate and individual clients who cannot successfully move into their new homes/facilities without hiring the services of home decorators. As a matter of fact, without the services of home decorators or interior designers, the interiors of facilities won’t be as beautiful and welcoming as we can see these days.

We will ensure that we develop strategic pacts with property developers, property management companies, local builders, realtors and home improvement firms. This will give us several options to generate revenue for our company.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individuals who we know can’t do without our services. We have conducted our market research and survey and we will ensure that all our home decoration services is well accepted in the marketplace. Below is a list of the people and organizations that we will market our services to;

• Construction Companies
• Property Development Companies
• Home Owners
• Corporate Organizations
• Realtors —for their clients’ homes
• Home Improvement Companies
• Commercial builders of office and home complexes
• Home builders’ associations
• Furniture stores
• Paint and wall paper stores
• Flower shops
• Real Estate Owners, Developers, and Contractors
• The Government (Public Sector)
• Religious Organizations (Church hall and other places of worship)

Our competitive advantage

The competition in the interior design industry is getting stiffer by the day, you have to be highly creative and come up with appealing designs and concepts in order to survive in the industry. The industry is indeed profitable and at the same time a highly competitive industry; it enjoys strong demand as people continue to purchase or move into new apartments and remodel old ones.

Clients will only hire your services if they know that they can get nothing but the best from you. We are quite aware that to be highly competitive in the interior design industry means that you are not only expected to deliver consistent and highly creative designs, but you must be able to meet set targets.

Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient interior designers, a team with excellent qualifications and experience in various niche areas in the interior design industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

We are not ignorant of the fact that there are stiff competitions in the interior design industry; there are loads of home decorators and interior designers jostling for contracts which is why we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the real estate market and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of James & Janell® Home Deco, Inc.

Our goal is to grow James & Janell® Home Deco, Inc. to become one of the leading home decoration companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Las Vegas – Nevada but also in other cities in the United States of America.

James & Janell® Home Deco, Inc. is set to make use of the following marketing and sales strategies to attract clients and win home decoration and interior decoration contracts;

• Introduce our home decoration company by sending introductory letters alongside our brochure to corporate organizations, realtors, religious organizations and key stake holders in the real estate industry.
• Promptness in bidding for home decoration or interior design contracts from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV and radio stations
• List our business on yellow page ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent design and services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

James & Janell® Home Deco, Inc. is established with the aim of maximizing profits in the interior design cum real estate industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of our clients.

James & Janell® Home Deco, Inc. will generate income by offering the following home decoration services and other related services;

• Home decorating services consulting services

10. Sales Forecast

One thing is certain, there would always be households and corporate organization who would need the services of home decorators or interior designers whenever they purchase new home, office facilities or are moving into a new facility .

We are well positioned to take on the available market in interior design/real estate industry and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow our home decoration company to enviable heights.

We have been able to examine the home decoration market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for James & Janell® Home Deco, Inc., it is based on the location of our business and of course the wide range of our services and target market;

• First Fiscal Year (FY1):  $150,000
• Second Fiscal Year (FY2):  $400,000
• Third Fiscal Year (FY3):  $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same home decoration services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market.

We are set to become the number one choice for both corporate and individual clients in the whole of the Las Vegas and beyond which is why we have made provisions for effective publicity and advertisement of our Home decoration company. Below are the platforms we intend to leverage on to promote and advertise James & Janell® Home Deco, Inc.;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community-based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, LinkedIn, Pinterest, and Google + et al to promote our services
• Install our billboards in strategic locations all around Las Vegas – Nevada
• Distribute our fliers and handbills in target areas
• Contact corporate organizations and residents in our target areas by calling them up and informing them of James & Janell® Home Deco, Inc. and the services we offer
• List our home decoration company in local directories / yellow pages
• Advertise our home decoration company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are branded with our company logo.

12. Our Pricing Strategy

If you are conversant with the interior design industry, you will realize that the pricing structure ranges from per hour billings to fixed fee to even per square foot billing. Most interior decoration companies adopt all the available pricing systems as it applies to the nature of the job or project they are expected to execute.

At James & Janell® Home Deco, Inc. we will adopt all the pricing systems as is obtainable in the industry but we will ensure that we keep the prices of our services a little below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services.

In addition, we will offer special discounted rates to all our customers at regular intervals. We are aware that there are some one-off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by James & Janell® Home Deco, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that James & Janell® Home Deco, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

Starting a home decoration company is cost effective because on the average, you are not expected to acquire expensive machines and equipment.

What you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furnish and equip the office, the amount needed to pay bills, purchase relevant software apps, promote the business and obtain the appropriate business license and certifications. Basically, these are the areas we are looking towards spending our startup capital on;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for liability insurance, permits and license will cost – $3,500
• Acquiring an office space that will accommodate our employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• The amount required to purchase the needed software applications – $ 3,500
• The amount of required for launching an official website will cost – $500
• The amount needed to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred thousand (200,000) U.S. dollars to successfully setup a medium scale but standard home decoration company in the United States of America.

Generating Startup Capital for James & Janell® Home Deco, Inc.

James & Janell® Home Deco, Inc. will be owned by two siblings James Creflo and his twin sister Janell Creflo. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals/customers patronizing their products and services.

We know that if we continue to come up with highly creative and unique home decoration cum interior design concept and excellent job delivery for both corporate organizations, government agencies and households, there will be a steady flow of income for the organization.

Our key sustainability and expansion strategy are to ensure that we only hire creative, competent and selfless interior designers, create a conducive working environment and employee benefits for our staff members. In the nearest future, we will give our most dedicated and prolific employees the opportunity to be part owners of the business via owing shares in the company.

We know that if we implement our business strategies, we will achieve our business goals and objectives in record time.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility plus renovation of the facility: Competed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the real estate industry: In Progress

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Home Creative Work How to Start an Interior Design Business

How to Start an Interior Design Business

May 16, 2024

Written by:

Alba U. Román

Alba is a writer for SideHustles.com. In addition to writing, she has done work as an independent graphic designer and has...

Startup Time

Startup Costs

Remote-Friendly

College Required

License Required

Interior design firms can be a good place to start your career, but some interior designers will find them too restrictive for long-term work. Starting your own interior design business offers the flexibility and freedom to set your own rules and hone in on a niche that really interests you.

It’s true that the work can be tougher. Sometimes you’ll deal with clients who have unrealistic expectations, and it’ll be up to you to set them straight. As a business owner, you’ll also have more responsibility when it comes to adhering to local laws and regulations.

Despite these challenges and the high competition, there’s huge earning potential in the interior design industry. In 2024, the market size of the interior design industry is estimated to be $137.93 billion in the US alone, and it’s set to keep on growing.

If you’ve already become a qualified interior designer and you want to learn how to be your own boss, then you’ve come to the right place. We’ll break down everything you need to set up your own company and start getting interior design clients.

01. Decide what services to offer

When establishing your interior design business, it’s crucial to define the services you’ll offer. This clarity will set clear expectations for clients regarding the interior design process, and it’ll make it easier for the right clients to find you.

Remember, you can always add more services later on. But drafting up a simple service list will help you get started. To build your service list, you first need to ensure you have a clearly defined niche.

Common Interior Design Specialties

Each interior design niche presents its own unique challenges and opportunities. Some designers may specialize in one niche, while others may work across multiple niches. You could start by experimenting with different niches before choosing one that aligns with your interests and skills.

Interior design aesthetics

Another way to niche down is to choose a particular aesthetic. You could choose one, two, or three specific design styles and create a signature look for your business.

Below are some design styles you could consider:

• Modern: Minimalist with neutral colors.
• Traditional: Rich colors and ornate furnishings.
• Contemporary: Open spaces with bold accents.
• Rustic: Natural materials, warm colors, and cozy ambiance.
• Industrial: Raw materials, exposed architecture, and utilitarian aesthetic.
• Bohemian: Eclectic, mixing patterns, textures, and global influences.
• Scandinavian: Minimalistic and functional with natural elements.
• Coastal: Nautical elements and light colors.

This is not an exhaustive list. There are many more styles you could consider. Do some research and find styles that speak to you.

Traditional interior design vs. e-design

Interior design services can be divided into the categories of traditional and online interior design (also known as e-design).

As a traditional interior design business, you’d do a lot of the work for your clients in terms of planning and organizing project execution. By contrast, an e-design business gives clients a lot more power to make design decisions.

Starting an online interior design business would offer the opportunity to work remotely from anywhere, and it would give both you and your clients more flexibility.

02. Write up a business plan

Every thriving business starts with a solid plan, and the same goes for an interior design business. It’s important to develop your business plan early on since it will influence aspects of how you operate your business—such as your pricing and marketing strategies.

Here are some of the things you should include in your interior design business plan:

• Executive summary: Define your mission and vision in terms of the type of interior design work you’ll do and your long-term and short-term business goals.
• Business description: Specify your business structure and the specific interior design services you will offer.
• Market analysis: Define your target clients and key competitors in your chosen specialty and area and how you plan to compete.
• Operational plan: Specify what business management tools you will use and summarize your daily operations in terms of your workflow and your business relationships.
• Financial plan: Calculate the startup costs for your interior design business, outline your pricing strategy, create a sustainable budget that includes ongoing operating expenses, and make financial predictions for the future.

Cost of starting an interior design business

Launching your own interior design business will require some initial investments. Make sure you factor these into the financial predictions in your business plan and budget accordingly.

Here is a breakdown of some of the initial costs you can expect:

• Software and technology expenses: You’ll need to pay for project management tools just to operate your business, and you’ll likely also need design software so that you can create floor plans, 3D renderings, and mood boards.
• Marketing and advertising costs: While there are free ways to advertise your interior design business (e.g., using social media), you may also want to invest in paid marketing strategies or buy items like interior designer business cards.
• Website and online portfolio: Unless you’re using a free web host to create your business site on your own, you’ll face website expenses like domain registration and web hosting fees.
• Office space and equipment: If you feel the need to rent an office space or buy some equipment, then you’ll need to factor these expenses into your startup costs.
• Licensing, business registration, and legal fees: These costs will vary depending on your location, but you’ll usually need to pay some amount of money to get your business registered.
• Insurance: Business insurance is a must for protecting your finances in the event of a dispute or accident.
• Transportation and travel: If you meet clients on-site or attend industry events, account for transportation expenses, including fuel, public transit fares, and vehicle maintenance.
• Taxes: You’ll need to pay taxes on your business income, and this is a key cost to budget for.

03. Create a website and portfolio

Just about every type of design business needs a website, and businesses in interior design are no exception. One of the key functions of a website for your interior design company is holding a digital space to display your work and give potential clients a glimpse into what they can expect from you as a designer.

The best place to host your portfolio is on your own business website, where potential clients will be able to not only see examples of your work but also read customer testimonials and learn important details about you and your business, including your service offerings and prices, your style, and who you work with.

What to include in your interior design portfolio

In your online interior design portfolio, you could include project photos and case studies. With this, you can showcase your work 24/7, establish credibility, and attract more clients.

Here are guidelines for what types of photos belong in your interior design portfolio:

• Before and after photos: Keep track of all your projects and take “before” and “after” photos showing the results of your work. These images will help your clients visualize how you’ll be able to transform their space.
• Personal projects or mock designs: If you haven’t had a lot of practical experience yet or you don’t want to include examples of your past work, you can also demonstrate your talents through your own personal projects or mock designs.
• Diverse styles: Showcasing a wide range of projects will demonstrate your versatility and your ability to provide unique solutions tailored to a client’s preferences. Even if you’re niching down on a particular aesthetic, you can include examples of your ability to work with different types of spaces.
• Design solutions: Part of the job is finding creative ways to maximize a space while keeping it functional and aesthetically pleasing. If you’ve had any tough projects that required out-of-the box thinking on your part, include them in your portfolio to showcase your ability to overcome design challenges.

How to create a website

Thankfully, creating a website isn’t anywhere near as tough as it sounds. You can easily build the site on your own using a website builder like WordPress or Squarespace . Alternatively, you can hire a freelance web developer or web designer to do it for you.

04. Gather the necessary tools

As a business owner, you won’t just spend your days doing fun design work. You’ll also be juggling multiple responsibilities, like conceptualizing design plans, selecting materials, communicating with clients, coordinating with contractors and architects, and ensuring quality control.

When it comes to achieving all these goals, business management tools are your friend. Use the options below as a jumping-off point to build up a solid interior design tool kit.

Interior Design Business Tools

05. choose a business name and structure.

Before you can register your interior design business, you first need to choose your business structure and the business name you want to register.

Common options for business structures include sole proprietorship/sole trader, limited liability company (LLC), partnership, or corporation. Your choice will impact the registration process, how much you’ll need to pay in business registration fees, and your personal liability in the long term.

When choosing a business name, make sure it’s not already in use by another business, especially in the same industry. You can check name availability online using local business registration databases. It’s also worth checking if the name is available on social media and as a website domain.

A good interior design business name ticks all these boxes:

• Easily searchable
• Reflects the tone of the brand
• Conveys what the business does
• Simple and easy to spell

These are only suggestions. If you want to keep things simple, you could instead just use your own name if you plan on operating as a sole proprietor.

06. Register your business

Registering your interior design business is a crucial step to get started and ensures that your business operates legally. If you don’t register your business, you could face consequences like tax penalties and liability issues, not to mention loss of credibility.

The exact registration process will vary according to your location and your chosen structure, but start by checking your local government website or business registration office. There, you should be able to find the necessary registration forms and guidelines.

Licenses and permits

Research the specific licenses and permits required for interior design businesses in your jurisdiction. These may include a general business license, a home occupation permit (if you work from home), and industry-specific permits. Licensing fees vary based on location and the type of license or permit.

Tax ID number

If you’re based in the US and your business structure requires it, you’ll need to apply for an Employer Identification Number (EIN) or Federal Tax Identification Number through the Internal Revenue Service (IRS).

This number is necessary for tax purposes, and you’ll need it to open a business bank account. It’s free to apply for one through the IRS website .

Business bank account

It’s a good idea to separate your personal and business finances. To do that, you’ll need to open a business bank account. This is essential for financial transparency, tax purposes, and professional credibility. It’s also a legal requirement for many business structures.

Most banks offer business account options. Visit a local branch or apply online, providing your business registration and tax ID number.

07. Set your prices

Pricing your services can be tricky. You need to hit the right balance to ensure you can cover your costs and gain a profit while still attracting clients.

Many interior designers charge by the hour, although you can also charge by the project or decide on a fixed rate that’s tied to the size of the space you’re designing.

Online estimates suggest that interior designers typically charge somewhere in the range of $50–$200 per hour . However, you should adjust your prices to reflect your experience level, qualifications, and location.

Whatever pricing strategy you use, be sure to offer your clients a transparent breakdown of costs, and always formalize your agreements in writing.

08. Build a professional network

Interior designers hardly ever work alone. A key part of running an interior design business is collaborating with other professionals, including architects, general contractors, subcontractors, materials suppliers, and structural engineers.

Effective networking to build and foster these relationships will improve your business operations and allow you to deliver satisfactory services in a timely manner.

Industry events, conferences, and trade shows are great places to meet fellow designers, suppliers, and potential clients. You can also join interior design associations, professional organizations, and online communities or participate in design events and expos.

Collaborating with influencers and other businesses is also a fantastic way to reach new audiences, often without a significant financial investment or time commitment.

09. Market your business

Once you’ve set up your interior design company, it’s time to start looking for clients. There are two prominent strategies that interior designers often use to market their business.

Social media marketing

Social media is an excellent free tool for increasing your visibility and putting you on the map as a new interior design business. For best results advertising on social media, follow these tips:

• Choose the right platforms: Select social media platforms that align with your target audience. For interior design, platforms like Instagram, Pinterest, and TikTok would be particularly effective.
• Create high-quality content: Share high-quality images of your work. Visual content is key in the design industry. Showcase your portfolio, before-and-after photos, and design inspiration.
• Engage with your audience: Respond to comments and engage with your followers. Building relationships on social media is crucial for client retention and referrals.
• Use hashtags: Incorporate relevant hashtags to expand your reach and visibility within your niche.

Adding blog content to your interior design business site is a great way to organically attract clients who are searching for design inspiration and advice. A blog is also the ideal place to showcase your industry knowledge.

The best part about this marketing approach is that it’s completely free, as long as you have a business website already. For best results when starting a blog , keep your content relevant and informative, use captivating visuals, use keywords and SEO strategies, and post consistently.

Paid advertising

Paid ads aren’t essential, and they will add to your overall business costs, but they can be extremely helpful when you’re starting out. A good place to start is Google Ads . Alternatively, you can pay for ads on social media platforms, in local publications, or on home design websites.

10. Maintain client relationships

Effective communication is the secret to happy clients. When a new client first reaches out to you, start by setting up an initial consultation. Listen actively, set clear expectations, and ask questions to clarify any doubts.

Update your clients regularly and in a timely manner, and stay transparent about costs, challenges, and changes that arise during the project. Approach issues with a problem-solving mindset.

Make sure you create detailed written agreements that outline project specifics, including timelines, payment schedules, and responsibilities. This will help manage client expectations from the outset.

Scaling your business

As your business grows, there may come a time when you want to expand. When your workload consistently exceeds your capacity, it may be a sign to hire someone else.

Expanding your business will free up time for you and potentially allow you to offer more services or new design styles. If you think it might be time to grow, spend some time assessing your needs and the demand from your clients.

Scale gradually to maintain quality while aligning with your long-term business goals and vision. Hiring more designers or staff can also help you take on larger projects and take your interior design business to new heights.

Victoria Scanlon

Victoria is a writer and editor for SideHustles.com. She has extensive experience editing research for publication in academic journals and writing educational content.

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