online interior design business plan

How to Start a Virtual Interior Designer Business

A virtual interior design business offers interior design services through an online platform. Current technology allows interior designers to serve clients without ever setting foot in their homes. These businesses can help homeowners and/or businesses with every aspect of the interior design process. Whether it is choosing furnishings, paint color palettes, art layouts, or shopping lists – whatever the design need, a virtual interior design company can meet it.

Learn how to start your own Virtual Interior Designer Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a virtual interior designer business by following these 10 steps:

• Plan your Virtual Interior Designer Business
• Form your Virtual Interior Designer Business into a Legal Entity
• Register your Virtual Interior Designer Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Virtual Interior Designer Business
• Get the Necessary Permits & Licenses for your Virtual Interior Designer Business
• Get Virtual Interior Designer Business Insurance
• Define your Virtual Interior Designer Business Brand
• Create your Virtual Interior Designer Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your virtual interior designer business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is very important. Read our detailed guide on how to name your business . We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Want some help naming your virtual interior designer business?

Business name generator, what are the costs involved in opening a virtual interior designer business.

The costs of starting your virtual interior design business are going to vary depending on what you already have. If you have been doing interior design professionally for a while, you probably already have all your software and equipment. In this case, your startup costs will be minimal. You may need to pay for professional-level services such as Zoom and your preferred cloud storage, which can cost a few hundred dollars a year. But otherwise, the biggest cost will be time – time learning how to offer your services online.

However, if you are new to interior design, your costs will be quite a bit higher. Your various software needs (you will need multiple programs because no software does it all) can cost $500 to $2,000 or more. You may need to upgrade your computer to handle these programs, which can cost several thousand dollars more. And then you will need to pay for professional-level services on top of these costs.

What are the ongoing expenses for a virtual interior designer business?

The ongoing expenses for a virtual interior design business will include services like internet, phone, communications platforms (such as Zoom), and software subscriptions. These could add up to several thousand dollars a year. You will also need to update your equipment software  regularly.

Who is the target market?

Different virtual interior design businesses have different target markets. The most common target market is residential homeowners. However, it’s also possible to target businesses with interior design services. It all depends on where your interests lie and what your business goals are. Renters are also a potential target market, but they tend to have less disposable income to purchase full interior design packages – and fewer design opportunities, like applying new paint and other semi-permanent steps.

How does a virtual interior designer business make money?

A virtual interior design business makes money by charging clients for interior design services. The most common billing method is the flat fee. In the initial interview stage with a potential client, you agree to offer certain services in exchange for a flat fee. You can also consider other options, like charging hourly, depending on the type of work you are doing and what makes the most sense for you and your clients.

How much you charge your clients will vary based on many factors, such as the market you are serving – residential or commercial – and the types of services you are offering. However, you can look at what some of the more popular virtual interior design businesses are charging to get an idea of possible rates. For example, right now Havenly is charging $79 for a basic analysis of a room and design suggestions. For a collaborative session with a designer, the company charges $129 for a room.

How much profit can a virtual interior designer business make?

The profit a virtual interior design company can earn varies widely depending on the size of the company, the services offered, and the target market. During your first year, you may only make $25,000. After several years of building a solid client base, you could increase your profits to anywhere between $50,000 - $100,000. Of course, the more high paying clients you get and/or the bigger your client base, the more money you will make.

One nice thing about a virtual interior design business is that your overhead should be quite low because you can run the business out of your home office all by yourself.

How can you make your business more profitable?

There are multiple ways to increase the profits of a virtual interior design business. If you become well-known and respected, you can increase the number of clients coming to you for services. You could also find higher-paying markets for your services – such as corporate clients or wealthier clients. Another option is to find the niche or niches that reap the most profits and invest your energies here.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your virtual interior designer business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a virtual interior designer business

One of the most effective ways to promote your interior design services is to pick a specific niche and focus on it. This is advice that goes contrary to popular assumptions. If you offer a wider range of services, you will get a wider range of clients – right? Well, maybe. If you offer a wide range of services, you are equally as likely to be overwhelmed with too many requests for too many different services. You are also less likely to attract higher-paying clients because you are viewed as a generalist instead of an expert.

How to keep customers coming back

There are a few things you can do that will make it more likely to get repeat customers. The first is to keep your commitments. If you agree to provide certain services to a client, do your best to follow through. If clients can depend on you, they are more likely to be happy with the transaction.

The second thing you can do is listen to what your clients want, and be kind in your delivery. Some interior designers make the mistake of assuming they know what a client should want and fail to listen to the client’s needs. Others make the mistake of being dismissive or appearing snobby to clients. You want word-of-mouth advertising, so be good to the people who will provide it.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

A virtual interior design business is right for entrepreneurs with an artistic eye and a passion for perfecting interior spaces. If you are already an interior designer, starting a virtual interior design business is an obvious choice. But even if you are just an aspiring designer, there’s no reason you can’t learn your trade and offer design services online.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a virtual interior designer business?

A typical day at a virtual interior design business starts with a review of client needs and to-dos. Running an interior design business typically means working for multiple clients at once. That means you may focus on a single client’s tasks some days, or you might work on tasks for multiple clients in a day.

What are some skills and experiences that will help you build a successful virtual interior designer business?

The most obvious skills and experience that will benefit your business are interior design related. The more comfortable you are with interior design, the better your services will be. However, it’s also important to understand how to streamline your virtual services by using the right technology. Video chat and photo sharing are all technologies you need to be familiar with if you want to appear professional. While some of your clients may be tech-savvy, some won’t be. Gain proficiency with all of your tools – both design tools and communications tools – before offering services to clients.

What is the growth potential for a virtual interior designer business?

There is a lot of growth potential for a virtual interior design business. SInce your business operates primarily online, you are not limited to your local market. You could design interiors for clients globally, or at least across the country. Virtual interior design services are a fairly new thing, so this is just the beginning for the industry.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a virtual interior designer business?

One useful tip for starting an interior design business, virtual or otherwise, is to create mock clients and design for them. You can go through the whole design process for one or more mock clients to learn your workflow and how to optimize your efforts. Even if you have plenty of design experience, this process can still be useful because you have to develop a virtual interior design workflow as well. Ironing out the kinks of your process with mock clients will make it much easier to get your business off the ground when you get real clients.

How and when to build a team

When you are first getting your business going, you will need to keep costs down and therefore will probably want to do it all yourself. But if business is good, you will eventually not have enough time in the day to meet your clients’ needs. And, you are likely to start falling behind on other business-related tasks as your client base grows. Once you reach a point where you have to sacrifice the quality of your work to meet client demands, it’s time to hire someone to help.

Useful Links

Real world examples.

• Modsy Online Design
• Roomlift Virtual Design

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How to Start an Interior Design Business in 6 Steps

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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.

On a similar note...

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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Interior Design Business Plan

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Barton Interiors

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.">.

Barton Interiors is a proposed venture that will offer comprehensive interior design services for homes and offices in the Boulder, Colorado area.  Barton Interiors also will provide access to products to complement the design consulting services including furniture, both new and antique, decorator fabric, and home and office accessories.  This venture offers the personalized services the target market desires and can afford in a way that is unique from concept to implementation.

Recent market research indicates a specific and growing need in the area for the interior design consulting services and products Barton Interiors offers the market it will serve.  The market strategy will be based on a cost effective approach to reach this clearly defined target market.  Although the population of Boulder is under 100,000, the market has a significant quantity of relatively wealthy households that are conscious of the appearance and feel of their home and offices.

The approach to promote Barton Interiors with be through establishing relationships with key people in the community and then through referral activities once a significant client base is established.  Barton Interiors will focus on developing solid and loyal client relationships offering design solutions based on the client’s taste, budget, use, and goals for the space.  The additional selection, accessibility of product, design services, and value-based pricing will differentiate Barton Interiors from the other options in the area. 

Total revenues in the first year are projected to exceed $46,000 with a loss. The venture will show increasing profits in year two and three, with revenues projected to increase to almost $80,000. This interior design business plan outlines the concept and implementation and details regarding the first three years of this venture.

• Realize an average of $3,870 of sales each business month for the first year, $5,720 for the second, and $6,600 for the third year.
• Generate a minimum of 45% of revenues from product sales versus consulting billing.
• Establish a commercial revenue client base accounting for 10% of total revenues.

Barton Interiors is an interior design service for discerning, quality-conscious clients that seek assistance in their design choices for their primary residences, vacation homes, and businesses.  This experience offers personal attention through the design process and also provides design resources and products to its clients through special purchases of furniture, fabric, and accessories. The total experience is provided in a way to inform, inspire, and assist people through the process of transforming their home or business environment to become a unique and personalized expression of themselves and add to their enjoyment of that interior space.

Keys to Success

The primary keys to success for Barton Interiors will be based on the following factors:

• Provide the highest quality interior design consulting experience possible.
• Sell specially selected products to these clients to further meet their interior design needs.
• Communicate with our client base through the website and personalized communication techniques.
• Retain clients to generate repeat purchases and initiate referrals.

Products and Services

Barton Interiors focuses on providing interior design consulting.  This is complemented by specially purchased furniture, art pieces, decorator fabric, and accessories for the home and office.  The sales process will begin with interior design consulting services, and then progress on to offer specially selected components to complement the design theme.

Products available through Barton Interiors include:

• Furniture available through special purchase arrangements with Thomasville, Drexel Heritage, and Henredon and local craftsman.
• A selection of decorator fabrics from Waverly, P Kaufmann, Fabricut, Ralph Lauren, Regal, Robert Allen, Latimer Alexander, Covington, and Portfolio.
• A line of drapery hardware called “Oval Office Iron” purchased through Dept. of the Interior Decorator Fabrics in Eugene, Oregon found at www.fabric-online.com.   
• Accessory and art pieces available through wholesale shows.
• Hunter Douglas window treatment products including a variety of hard window coverings.
• Interior shutters made of wood and a plastic/resin product called “polywood.”
• Antiques acquired for specific client needs through an arrangement with a local antique buyer and through direct purchases through other sources.

Product and Service Description

Our primary points of differentiation offer these qualities:

• A unique client experience from a trained and professional interior designer that is qualified and capable of meeting the needs of discerning clients with high expectations.
• Access to a wide and unique selection of new and antique furniture, accessories, and special-order decorator fabrics.
• Personal assistance from a complementary product offering, including hard-covering window treatment, hardware, and home accessories that fit the look and objectives of each project.

Competitive Comparison

Our competition is primarily from other interior designers.  Looking at a broader picture, there is also competition from the “do-it-yourself” resource providers that have retail stores and websites that include the following:

• Bed, Bath and Beyond moved into the market in the year 2000 at an excellent location.
• Discount stores including Target, Wal-Mart and Home Depot have expanded their fabric, bedding, pillow, and ready-made drapery selections often representing lines including Waverly.
• Norwalk continues to make purchasing “blank” furniture and making a designer fabric selection an attractive option to recovering furniture.
• Catalog sales continue to be a strong force with a list including Pottery Barn, Calico Corners, Ballard Design, and Eddie Bauer expanding purchasing selection.
• The list of competitors for home accessory competition includes Pier 1 and local competitors that provide an entire list of other furniture, accessory and gift stores.
• Web sales of furniture, fabric and other interior design-oriented products has expanded dramatically and in many cases is easily available.

Sales Literature

A simple and professional looking brochure will be available to provide to referral sources, leave at seminars, and on a select basis, use for direct mail purposes.

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.">

Barton Interiors is a start-up business that will offer comprehensive interior design services for home and office.  This business will assist those that want to have guidance and council in developing a basic design concept of their project, to the person that desires someone to take it from concept to complete implementation.  Barton Interiors will offer the ability for clients to purchase new and antique furniture, art work, decorator fabric, and home accessories.  The website www.bartoninteriors.com will be used as another way to communicate the services available and provide a portfolio of the work accomplished.  The business will begin as a home-based business and is expected to remain in this structure through at least the first three years.

Company Ownership

Barton Interiors, located in Boulder, Colorado is registered in the State of Colorado as a sole proprietorship owned and operated by Jill Barton dba Barton Interiors.

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

Barton Interiors has a defined target market client that will be the basis of building this business.  This client is identical for both the residence and office spaces, but the target market is identical based on her different roles for each of those spaces. 

Effective marketing combined with an optimal product offering is critical to the Barton Interiors’ success and future profitability. The owner possesses solid information about the market and knows a great deal about the common attributes of those that are expected to be prized and loyal clients. This information will be leveraged to better understand who Barton Interiors will serve, their specific needs, and how to better communicate with them.

Market Segmentation

The profile of the Barton Interior client consists of the following geographic, demographic, psychographic, and behavior factors:

Geographics

• The geographic market is the affluent sector within the Boulder, Colorado area with a population of 94,673. (Based on the 2000 Census data.)
• A 20-mile geographic area is in need of the products and services offered and do not intend to pursue the Denver market at this time.
• The total target market population is estimated at 24,000 based on the following demographics.

Demographics

• Female, married and have attended college.
• Have children, but they are not necessarily at home.
• A combined household annual income greater than $100,000.
• Age range of 35 to 55 years, with a median age of 42.
• Owns their home, townhouse and/or condominium valued at over $425,000.
• They and/or their spouse work in a professional setting and may have interior design requirements for their office space as well as their homes. 
• Belong to one or more business, service, and/or athletic organization including:
• Boulder Country Club.
• Junior League of Boulder.
• American Business Women’s Association.
• American Auxiliary of University Women.
• Doctor’s Wives Auxiliary.

The following is known regarding the profile of the typical resident of Boulder:

• 67%  have lived in the area for seven years or more.
• 23%  are between the ages of 35 and 44.
• 40%  have completed some college.
• 24%  are managers, professionals and/or owners of a business.
• 53%  are married.
• 65%  have no children living at home.
• 56%  own their residence.

Psychographics

• The appearance of her home is a priority.
• Entertaining and showing her home is important.
• She perceives herself as creative, tasteful and able, but seeks validation and support regarding her decorating ideas and choices.
• She reads one or more of the following magazines:
• Martha Stewart Living.
• Country Living.
• House Beautiful.
• Country Home.
• Metropolitan Home.
• Traditional Homes.
• Elle Decor.
• If she does seek out television as an information source for home decorating that is most likely to be “Martha Stewart” and, on a lesser basis, “Interior Motives.”
• She takes pride in having an active role in decorating their home.
• Her home is a form of communicating “who she is” to others.
• Comparison positioning and stature within social groups are made on an ongoing basis, but rarely discussed.

Barton Interiors is providing its clients the opportunity to create a home environment to express who they are. They seek design assistance and have the resources to accomplish their goals.  They desire their home to be personal, unique, and tasteful as it communicates a message about what is important to them. Barton Interiors will seek to fulfill the following benefits that are important to our clients.

Target Market Segment Strategy

Our marketing strategy will create awareness, interest, and appeal from our target market for what Barton Interiors offers its clients.  The target markets are separated into four segments; “Country Club Women,” “Boomers in Transition,” “Professional Youngsters,” and “Home Builders.” The primary marketing opportunity is selling to these well defined and accessible target market segments that focuses on investing discretionary income in these areas:

Country Club Women – The most dominant segment of the four is comprised of women in the age range of 35 to 50. They are married, have a household income greater than $100,000, own at least one home or condominium, and are socially active at and away from home. They are members of the Boulder Country Club, Junior League of Boulder, AAUW, and/or the Doctor’s Wives Auxiliary. They have discretionary income, and their home and how it looks is a priority. The appearance of where they live communicates who they are and what is important to them. This group represents the largest collection of “Martha Stewart Wanna Be’s,” with their profile echoing readers of Martha Stewart Living magazine, based on the current demographics described in the 2001  Martha Stewart Living Media Kit .

Boomers in Transition – This group, typically ranging in age from 50 to 65, is going through a positive and planned life transition.  They are changing homes (either building or moving) or remodeling due to empty nest syndrome, retirement plans, general downsizing desires, or to just get closer to the golf course.  Their surprisingly high level of discretionary income is first spent on travel, with decorating their home a close second.  This is what makes this segment so attractive.  The woman of the couple is the decision maker, and often does not always include the husband in the selection or purchase process.

Professional Youngsters – Couples between the ages of 25 and 35 establishing their first “adult” household fall into this group.  They both work, earn in excess of $80,000 annually, and now want to invest in their home.  They seek to enjoy their home and communicate a “successful” image and message to their contemporaries.  They buy big when they have received a promotion, a bonus, or an inheritance.

Home Builders – People in the home building process, typically ranging in age from 40 to 55, are prime candidates for Barton Interiors.  This applies to both primary residences and vacations and secondary homes.  Although only expected to occur two to fives times each year for the business, this event will be the single largest dollar transaction amount.

Market Trends

The home textile market, considered to include sheets, towels, draperies, carpets, blankets, and upholstery, accounts for 37% of all textile output. The trade publication “ Home Textiles Today ” estimates the size of the U.S. home textiles market at the wholesale level, excluding carpets, to be between $6.5 billion to $7 billion annually. The industry is expected to realize a steady increase over the next few years.

The industry is driven by the number of “household formations” which is expected to continue through the first years of the new millennium. This is primarily due to the solid growth in the number of single-parent and non-family households. This growth also comes from baby boomers needing bigger houses to accommodate growing and extended families and, as people get older, they are buying homes rather than renting to realize tax and equity building benefits. Favorable mortgage rates will also enable others to invest in their existing home.

Regardless of this data, the following trends and issues impact the success and challenges of Barton Interiors.

• National economic health: The industry performs better when the country experiences “good times” regardless of its direct impact on the local economy. Sales decrease when the stock market falls and when NATO takes military action. An upbeat State of the Union address by the President correlates with an increase in sales.
• New home construction activity: More closely related to what is taking place in our local economy, new home construction has a significant impact on sales across all product lines.
• Shifts in design trends: Major changes in design trends increase sales. The Boulder market lags behind metropolitan design trends by six to 12 months. This offers a buying advantage for the store, offering a preview of what is coming and how we should adjust our in-stock inventory.

Market Growth

American Demographics projects the number of U.S. households will grow by 16% to 115 million by the year 2010. Almost half of the households comprised of people from 35 to 44 years old are married couples with children under the age of 18. Based on this research, households in the 45 to 65 age range will grow to 34 million by the year 2000. These households will increase another 32 percent to 45 million in 2010 as baby boomers add to this peak-earning and spending age group. These families will either build new homes or move into existing dwellings. With approximately 46.2% of the nation’s 93.3 million dwellings built before 1960, many of these homeowners are also expected to update.

One important factor is that married couples in the 35 to 65 age range represent a growth segment and enjoy larger incomes than other family structures. They enjoy the choice to spend their disposable income on life’s amenities. They may demonstrate “cocooning” by making their home a more comfortable and attractive haven. They choose to spend resources here rather than on vacations and other discretionary options. This group represents a larger subsegment of the target market.

These factors contribute to an increased need for home decorator fabrics for window treatment, upholstery, pillows, bedding, and other fabric accessory needs. This demand is expected to be complemented by the growth in the Boulder market. The majority of homeowners spend a large percentage of their disposable income on home goods within two years after buying a new house. Therefore, positive trends in new housing activity represents growth and opportunity for home textiles.

Recent slow downs in the local economy have resulted in falling below sales projections and these factors will affect market growth.  Adding additional revenues through the website will hopefully add a more stable factor in to the revenue stream.

The publication, American Demographics , projects the number of U.S. households will grow by 16% between 1995 and the year 2010, an increase from 98.5 million to 115 million. Of the households comprised of people from 35 to 44 years old, almost half are married couples with children under the age of 18. Based on research by American Demographics , households in the 45 to 65 age range should grow to 34 million by the year 2000. These households will increase another 32 percent to 45 million in 2010 as baby boomers add to this peak-earning and spending age group. With approximately 46.2% of the nation’s 93.3 million dwellings built before 1960, many of these homeowners are also expected to update. These factors contribute to an increased need for home decorator fabrics for window treatment, upholstering, pillows, bedding, and other fabric accessory needs. This demand is expected to be complemented by the growth in the Boulder market. The majority of homeowners spend a large percentage of their disposable income on home goods within two years after buying a new house. Therefore, positive trends in new housing activity represents growth and opportunity for home textiles.

One important factor is that married couples in the 35 to 65 age range represent a growth segment and enjoy larger incomes than other family structures. They enjoy the choice to spend their disposable income on life’s amenities. They may demonstrate “cocooning” by making their home a more comfortable and attractive haven. They choose to spend resources here rather than on vacations and other discretionary options. This group represents a larger sub-segment of the target market.

Market Needs

Barton Interiors will provide its clients the opportunity to create a home environment to express who they are. They have the choice to actively participate in the design, look, and feel of their home. They desire their home to be personal, unique, and tasteful as well as communicate a message about what is important to them. Barton Interiors seek to fulfill the following benefits that we know are important to our clients.

Service Business Analysis

The industry continues to be competitive with a “commodity” concern with “designers” of all skill and background levels available throughout the market.

• Potential Competitors: There are many other interior designers in the Boulder area and these competitors range from those that provide simple-focused services, such as draperies only, to a more full-service interior design approach similar to Barton Interiors.
• Power of Suppliers: Moderately high in most anyone that has a business licence can have access to wholesale purchase of furniture, fabrics and accessories.
• Power of Buyers: Very low as buyers work within the financial terms and product availability offered through the suppliers that specify the terms and conditions.
• Substitute Products: High as many people refer to themselves as interior designers regardless of background, training, or certification. Substitute products are also high in the area of window treatment as hardcovering solutions have become available and increasingly affordable.  This includes blinds, shutters, and other “manufactured” treatments.  Substitute products are not as prevalent in the area of antiques and art pieces.
• Rivalry: Moderately low with the “territorial” structure that the industry experiences and moderately low exit barriers.  The easy entry is accompanied with an easy exit and people get out when it is not working.

With the slow, but steady, growth of the past few years, the industry is now experiencing a “cautious optimism” regarding the future. Growth and expansion activities for most areas of the interior design industry appear to be carefully considered.  Many in the industry continues to decide what to do and buy as the economy has experienced a slowdown and increased uncertainty from the more economically confident 1990’s.

Distributing a Service

Our primary method of distribution will be on a direct sales basis for each individual client.

Competition and Buying Patterns

Competition in the area is strong, with designers ranging from the home-based, no formal training individuals to the more formalized store front, American Association of Interior Designers (ASID) certified designers that have close relationships with prestigious architects.  In most cases, clients make the provider decision on the basis of three criteria in this order with these percent influences indicated after each:

• Referrals and relationship with other professionals, particularly architects  (55%).
• Personality and “expected relationship” with the designer  (25% ).
• Past work  (15%).
• ASID certification  (5%).

 Understanding the influence of these factors on the prospective client will be key in the marketing strategy.

Main Competitors

Current local competition includes the following:

• Interior Designers: There are 37 interior designers listed in the Boulder Yellow Pages (Year 2000-2001 issue) that offer fabric as a part of their services. Interior designers make profit off mark-up of fabric in addition to their hourly services charges. Their costs per yard are typically higher since they do not benefit from retail or volume discounts. Therefore, their costs to their client is often two to four times higher than the price per yard from Barton Interiors.
• House of Fabrics: Nationwide recognition and buying power of numerous types of dated fabric with strong product availability. This store has experienced financial difficulty in recent years and has closed several locations throughout the country.
• Warehouse Fabrics: Locally owned, offering low-cost products with a wide selection of discontinued fabrics and only a limited number of “current” fabrics. This warehouse concept offers marginal client service with what many “upper end” clients consider to be an “undesirable” shopping environment.
• JoAnn’s: Nationwide chain with strong buying power. They have a broad fabric selection for clothing with a limited number of in-store decorator fabrics available. Their primary target markets are the clothing seamstress, with an increasing emphasis on craft items. Low prices are fabric main point of competitive differentiation.
• Website Providers: Fabric sales over the Web are limited at this time, and this will be a source of competition for the future to watch. Currently, there is no measurable impact on our market through competitive websites.

An increasing level of competition is anticipated from catalog sales. Recent trends, such as those demonstrated in the well established but evolving Pottery Barn catalog, indicates increased interest in offering decorator fabric, window designs, and other home decorating products through this increasingly popular channel of distribution. Catalog sources do not offer clients the option to see, touch, and have the fabric in their homes. Price is the most significant competitive factor this product source presents. The most aggressive catalog competitor is Calico Corners followed by Pottery Barn and other home-accessory-based providers.

Discounters

Channels of distribution continue to shift in favor of discounters, who account for a significant portion of the growth in the industry. As consumers experience lower levels of disposable income, discounters leverage frequent store promotions to entice frugal, value-oriented consumers. One of the biggest criticism of discounters is their failure to offer a quality service experience and their failure to present inviting displays to promote sales. These discounters, along with specialty store chains, present one of the most severe competitive threats for individually-owned specialty stores. This is partially due to extensive promotional efforts, price advantages, and established relationships with their vendors. One example of these discounters is the “home improvement” chains, such as Home Base. This aggressive retailer has adopted a strategy to include complete decorator departments in their metropolitan stores. Currently existing in the Los Angeles market, this strategy is anticipated to be introduced into the Seattle area and other select metropolitan markets within the year. Although the Boulder Home Base store sells basic curtain rod hardware and other hard cover window treatment, there are no known plans at this time for the Boulder Home Base store to implement this in the foreseeable future. This will be an important issue to monitor for competitive purposes.

Business Participants

Industry participants in the area of interior design comes from six general categories; interior designers, traditional furniture stores, traditional fabric retail stores, catalog and Web-based sales, click and mortar discounters, and individually owned stores. Most of these players have some type of an online presence. The following provides an overview of the type of participants that are most active and most successful in this arena.

Interior Designers This large group makes up a substantial quantity of higher-end fabric purchases. For example, there are 37 interior designers listed in the Boulder Yellow Pages (Year 2001-2002 issue) that offer fabric as a part of their services. Interior designers make profit off mark-up of fabric in addition to their hourly services charges. Their costs per yard are typically higher since they do not benefit from retail or volume discounts. Therefore, their costs to the client is often two to four times higher than the price per yard from Barton Interiors. It is unusual to find an independent interior designer that has a website.

Traditional Fabric Retail Stores The traditional retail stores are corporate stores (not franchises) that have multiple locations in select metropolitan markets.  Example of these stores include:

• JoAnn’s www.joanns.com – Nationwide chain with strong buying power. They have a broad fabric selection for clothing with a limited number of in-store decorator fabrics available. Their primary target markets are the clothing seamstress, with an increasing emphasis on craft items. JoAnn’s purchased the House of Fabric chain and has a link set up from the previous URL www.houseoffabrics.com.
• Calico Corners www.calicocorners.com – This national chain was a franchise through the 1980s (no longer selling licenses) and has been purchasing those stores throughout the country. Calico Corners stores number about 90 and are in most larger cities, with a concentration in the Northeast.

Catalog and Web-based Competitors Virtually every catalog and major retail store in the industry now has a website. The most aggressive and direct catalog competitor is Calico Corners at www.calicocorners.com which complements their 80+ retail store network. An increasing level of competition is anticipated from these catalog and Web-based sales. Recent trends, such as those demonstrated in the well established, but evolving, Pottery Barn catalog at www.potterybarn.com and Ballard Design at www.ballarddesigns.com indicates increased interest in offering decorator fabric for window design and upholstery through this increasingly popular channel of distribution.

Click and Mortar Discounters Channels of distribution continue to shift in favor of discounters, who account for a significant portion of the growth in the industry and who have been extremely active on the Web. As consumers experience lower levels of disposable income, discounters leverage frequent store promotions to entice frugal, value-oriented consumers. One of the biggest criticism of discounters is their failure to offer a quality service experience and their failure to present inviting displays to promote sales. One example of these discounters is the “home improvement” chains, such as Home Base at www.homebase.com. This aggressive retailer has adopted a strategy to include complete decorator departments in their metropolitan stores. Currently existing in the Los Angeles market, this strategy is anticipated to be introduced into the Seattle area and other select metropolitan markets within the year. Although the Boulder Home Base store sells basic curtain rod hardware and other hard cover window treatment, there are no known plans at this time for the Boulder Home Base store to implement this in the foreseeable future. Bed, Bath & Beyond at www.bedbathandbeyond.com has an even larger assortment of hardware with a selection of pre-made solutions for window treatments, bedding and pillows. Both of these retailers have stores in our market and with selection activity on the Web, this will be important to monitor for competitive purposes.

Individually Owned Stores Some form of locally owned stores exist in virtually every market with a population of over 50,000. Typically, the low end begins with those that carry a limited selection of decorator fabric, often with a focus on clothing fabric and crafts. At a slightly more sophisticated level, stores may offer low-cost products with a wide selection of discontinued fabrics and only a limited number of “current” fabrics. “Full service” individually owned stores, like Barton Interiors, are less prevalent. An increasing number of these stores at all level do have websites, including this local competitor example: www.econosales.com.

Strategy and Implementation Summary

The primary sales and marketing strategy for Barton Interiors includes these factors:

• A premier interior design consulting experience that provides impressive client service throughout.
• The sale of other complementary products that adds value for the client’s total experience.
• Providing a experience that will result in repeat business for home and/or office needs and client referrals.

This strategy will be implemented through the tactics and programs described in this section.

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses relating to the market analysis summary and describes the opportunities and threats facing Barton Interiors.

• The proven ability to establish excellent personalized client service.
• Strong relationships with suppliers that offer flexibility and respond to special product requirements.
• Good referral relationships with architects, complementary vendors, and local realtors.
• Client loyalty developed through a solid reputation among repeat, high-dollar purchase clients.
• The owner is still climbing the “retail experience learning curve.”
• Not established in a market where a variety of interior design options exist.
• Challenges of the seasonality of the business.

Opportunities

• A significant portion of our target market is desperately looking for the services Barton Interiors will offer.
• Strategic alliances offering sources for referrals and joint marketing activities to extend our reach.
• Promising activity from new home construction activity.
• Changes in design trends can initiate home updating and, therefore, generate sales.
• Continued price pressure due to competition or the weakening market reducing contribution margins.
• Dramatic changes in design, including fabric colors and styles can present challenges to keep paced with what is desired by what is expected to be a leading-edge client base. 
• Expansion of products and services offered by other sources including national discount stores into the local market including Target, Wal-Mart, and Home Depot.
• Catalog resources, including Calico Corners and Pottery Barn, with aggressively priced trend-setting fabric products including drapery, bedding and slipcovers.

This analysis indicates solid potential success, but the weaknesses and threats must be recognized throughout the life of the venture.

Strategy Pyramid

The following three strategies summarize our implementation process for the upcoming year. They address in-store retail revenue, expansion to non-fabric revenue sources, and Web-based sales activities.

STRATEGY #1 – Generating Referrals

   Tactic #1A – Build a client base through leveraging existing contacts from former clients of the architecture firm.

   Tactic #1B – Build a referral network through professional contacts. Offer special order fabric that will arrive in reasonable time frame and enable to provide something very unique for each customer.

         Program #1A – Press release in the local paper announcing the business is open.

         Program #1B – Offer seminars through organizations to promote the concept of using an interior designer and using Barton Interiors.

STRATEGY #2 – Product Sales

   Tactic #2A – Promotion of products available through Barton Interiors. 

         Program #2A – Seminars and demonstration promotions.

         Program #2B – Cross selling activities with home and office consulting.

   Tactic #2B – Promotion of art and antiques.

          Program #2C – Demonstrate the unique qualities they offer to promote these higher dollar transactions.

          Program #2D – Display this through the online and notebook portfolio.

STRATEGY #3 – Generate Awareness Through the Website

   Tactic #3A – Better facilitate and communicate Barton Interiors services and product through the website.

         Program #3A – Design of  www.bartoninteriors.com.

         Program #3B – Integration of completed client work.

   Tactic #3B – Monthly assessment of performance of email inquiries.

         Program #3C – Establish goals of the program  (Refer to Web Strategy Plan done in Web Strategy Pro).

         Program #3D – Evaluate the client work initiated through the site. 

Value Proposition

Barton Interiors offers the highest interior design experience for the home and office conveniently available for those in the Boulder area.  The concept is unique through the selection of antiques, home accessories, and complementary products along with the interior design consulting experience. 

Competitive Edge

Barton Interiors will be differentiated from other interior designers by the value it offers in quality, sought-after products not found through other designers or store choices, and through the excellent service and support it offers. Client follow-through will be impeccable.  This competitive edge leverages the same proven factors that indicated higher success rates for interior design services. 

Marketing Strategy

The marketing strategy is based on establishing Barton Interiors as the resource of choice for people in need of interior design ideas and products.  The more involved “do-it-yourself” and the “buy-it-yourself” clients will find the consulting and guidance helpful.  On the other end of the spectrum, the “just-get-it-done” client will find Barton will successfully accomplish exactly that.  All clients will find Barton Interiors to be a resources to decorate their homes and offices in a way that is inspiring, inviting, and motivating.

Our marketing strategy is based on superior performance in the following areas:

• Unique consulting services.
• Product choices specifically chosen for each individual client project.
• Overall quality of the experience and the result.
• Excellent client service and support regardless.

This  marketing strategy will create awareness, interest, and appeal from our target market for what Barton Interiors offers our clients.  This will be executed in a manner that will entice them to come back for repeat purchases and encourage them to refer friends and professional contacts.

Pricing Strategy

Product pricing is based on offering high value to our clients compared to others in the market. Value is determined based on the best design services, providing a “picture” of what the space will look like before the work begins, convenience, and timeliness in accomplishing the goal.

Promotion Strategy

The promotion strategy will focus on generating referrals.  Other potential sources of promotion include:

• Newspaper Advertisements: Select advertisements in the Boulder Herald.
• Television Advertisements: Select “Martha Stewart” and “Interior Motives” local television shows.
• Quarterly Postcard: A direct mail postcard distributed to the client mailing list.
• Website: Traffic from www.bartoninteriors.com.

Distribution Strategy

The primary source of distribution is through the tradition retail distribution channel.  On a secondary basis, it will be through the website via email inquiries and phone sales, or directly from the site itself.

Marketing Programs

The single objective is to position Barton Interiors as the premier source for home decorator fabrics in the Boulder area, commanding a majority of the market share within three years. The marketing strategy will seek to first create client awareness regarding the products and services offered, develop that client base, establish connections with targeted markets and work toward building client loyalty and referrals.

Barton Interiors’ four main marketing strategies are:

• Increased awareness and image.
• Leveraging existing client base.
• Cross selling.
• New home construction promotion.

The strategies will be implements through the following marketing tactics and programs.

Strategy #1 INCREASED AWARENESS and IMAGE – Informing those not yet aware of what Barton Interiors offers.

• Martha Stewart.
• Interior Motives.
• Realtor “open house” promotions.
• Imperial Floors.
• Upholstery resources.
• “Design Time” Interior Design.
• 27th Street Fabrics.
• Co-sponsorship of fund raising activities.
• Participating in social and service events.

Strategy #2 LEVERAGING EXISTING CLIENT BASE – Our best sales in the future will come from our current client base.

• Exceptional client service in the store.
• Follow up contact.
• Personal shopper support.
• Demonstrations.

Strategy #3 CROSS SELLING – Increasing the average dollar amount per transaction.

• Additional sales of furniture, art pieces, and fabric and home accessories. 
• Look for office/commercial assignments.
• Ongoing work including more involvement in the implementation phase.
• Future assignments based on additional work initiated by family changes and transitions.

Strategy #4 NEW HOME CONSTRUCTION PROMOTION – Connecting with people involved in the building process.

• Realtors gift certificate program.
• Builders design support services.
• Loan Officers gift certificate program.
• Subscription and use of “newcomers” report.
• Chamber of Commerce new members update.

Positioning Statement

For the person that seeks to create a personalized and unique impression of her home, Barton Interiors is the source for client-oriented design services. Clients will be impressed with, and return for, the services they receive and the outcome they have enjoyed.  Unlike other interior designers or stores, such as  JoAnn’s, Warehouse Fabric, or catalog options, Barton Interiors is a pleasant and tasteful resource that encourages everyone in the process of decorating their home. Unlike using the services of other interior decorators, Barton Interiors allows the individual to participate in their design choices to the extent they choose, and realize greater value for the dollars they invest.

Sales Strategy

The key to our sales strategy is referrals from pleased clients that are proud of the result Barton Interiors provided them and pleased to tell their friends–people much like them.  Keeping in contact with past clients to acquire repeat business and to remind them of this referral opportunity will be key.  Sales activities will depend on creating awareness about the services Barton Interiors offers and then build on each and every client as they make the decision to refer to others.

Web Plan Summary

The website of www.bartoninteriors.com will be used for information only purposes at this time.  Contact information will be presented with a complete portfolio of work accomplished.  Additional information will be provided regarding the product-based resources Barton Interiors incorporates into the work done for clients.

Sales Forecast

The sales forecast is broken down into three main revenue streams; residential consulting revenue, commercial consulting revenue, and product sales.  The goal is to have these two revenue streams be equal by the second year, with product sales slower to secure during year one.  The revenue forecast for the upcoming year is based on a modest 12% growth rate.  The economic unpredictability adds to the difficulty of making these projections.

Sales Programs

In brief, our marketing mix is comprised of these approaches to pricing, distribution, advertising and promotion, and client service.

Pricing – Residential consulting will bill at an average of $90 per hour and commercial consulting at $100 per hour.

Distribution – All services and products will be distributed directly through the personal contact.

Advertising and Promotion – The most successful advertising is anticipated to be through the Boulder Herald and through ads on local broadcasts of the “Martha Stewart” and “Interior Motives” television shows.

Client Service – Excellent, personalized, fun, one-of-a-kind client service is essential. This is perhaps the only attribute that cannot be duplicated by any competitor.

The first goal is to recognize individualized needs of each client.  If they are a repeat client, they benefit from the knowledge regarding their lifestyle and taste that was gained from the previous experience.

Strategic Alliances

Barton Interiors does have some dynamic alliances.  Based on initial research and contacts, several architect firms are willing to refer clients to Barton Interiors, including Jill’s existing employer, Gibson & Sawyer, LLC.  Other alliances include a retail store called “Providance” which focuses on gallery-type pieces for the home and office and is expected to refer clients.  There is also a positive relationship with “Interior Fabricators” and this business is expected to be a referral resource. Strategic online alliances do not exist at this time.  This will be an area of concentrated development for the future and is reflected in our milestone chart.

The milestone chart below accompanied by the graphic outlines key activities that will be critical to Barton Interiors’ success in the coming year.

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.">

Jill Barton is the founder and owner of Barton Interiors.  Jill received a Bachelor of Arts degree from the University of Oregon in 1990 through the College of Architecture and Interior Design and is ASID certified.  After working for three years at a prestigious interior design firm in Portland, Oregon, she moved to Boulder in 1993 and began working with Gibson & Sawyer, LLC, a well-established architecture firm focusing on the commercial sector.  Jill worked with the architects in the interior design needs for their projects.  During this time, she has developed relationships with a number of community, professional, and supplier contacts throughout the Boulder and Greater Denver area.  Jill plans to leave the firm on favorable terms at the end of the year.

With her new role at Barton Interiors, Jill will oversee all aspects of the design process and all business operations.  Jill’s responsibilities include all aspects of establishing the business, marketing, buying, bookkeeping and financial dealings. 

Organizational Structure

The organization structure is simplistic.  Jill manages all employees and professional contacts, and will be interfacing with more than 12 account executives/vendors. Jill will determine resources requirements and monitor expenses for all aspects of the firm. 

Personnel Plan

Jill will act as a sole proprietor without employees at this point.  Contract labor may required for upholstery and fabrication purposes, but that will be included in the cost of good for each client’s project.  Jill’s salary will begin at a modest $1,200 per month, increase quarterly, and then is projected at $2,400 per month for year two and $3,000 for year three.

Financial Plan investor-ready personnel plan .">

The initial funding of $25,000 will be invested by the owner.  The goal is to fund the growth of the business from its earnings.  The financial plan contains these essential factors:

• A growth rate in sales of 47% for the year 2002 and 15% for 2003.
• An average sales per month that increases each year, averaging $3,870 in the first year, $5,720 the second, and $6,600 in the third year.
• Continue to fund the growth of the business from the revenues it generates.

<p size="4" Financial difficulties and risks

• Slow sales resulting in less-than-projected cash flow.
• Unexpected and excessive cost increases compared to the planned expenses.
• Overly aggressive and debilitating actions by competing designers.
• A parallel entry by a new competitor further diminishing revenue generation potential.

Worst case risks might include

• Determining the business cannot support itself on an ongoing basis.
• Dealing with the financial, business, and personal devastation of the venture’s failure.  Survivable but painful.

Break-even Analysis

The break-even analysis below is expressed as a per-client unit. This is based on average hourly billing, product sales, and costs per transaction.

Important Assumptions

The following captured critical assumptions will determine the potential for future success.

• A healthy economy that supports a moderate level of growth in the market.
• The ability to support a gross margin percentage in excess of 65%.
• Keeping operating costs low, particularly in the areas of product purchases ongoing monthly expenses.
• Receiving an initial payment for each project of 50% of estimated time and product purchases and collecting the balance of these revenues within 45 days of completing each project.

Key Financial Indicators

The key financial indicators focus on cash flow.  There is virtually no inventory but late payments for completed jobs will be a concern.  Timely billing and collection will be critical.  All expenses are tracked on a monthly basis, recorded in the accounting software, and will be compared to our business plan budget.

Start-up Summary

The following details the initial start-up expenses for Barton Interiors.  Most equipment costs are office related.  Sample and display costs include books, samples and resources necessary to promote furniture, fabric and other home accessory products.

Projected Profit and Loss

The following represents the projected profit and loss for Barton Interiors based on sales and expense projections for 2002 through 2004.

Projected Cash Flow

The cash flow projections are outlined below.  These cash flow projects are based on our basic assumptions and expense and revenue projections. 

Projected Balance Sheet

Barton Interiors’ balance sheet is outlined below. 

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7389, Business Services–Interior Design Services, are shown for comparison. If we fail in any of these areas, we will need to re-evaluate our business model:

• Gross margins at, or above, 65%.
• Month-to-month and annual increases to meet the expected growth requirements.
• Self-fund growth not dependant on the credit line to meet cash requirements.

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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.

Got your sights on other business ideas?

Check out these guides for gaining service business ideas , other service business examples , and starting other types of businesses .

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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 Start an Interior Design Business – The Complete Guide

2020 October 22, 2019 2020 Blogs , 2020 Design , 2020 Fusion , Business Management , Home Design & Remodeling

An interior designer is someone who has the creativity, skills, and knowledge required to design a beautiful and functional space. If you’re an interior designer looking to start an interior design business, then you’ve come to the right place.

Starting your own business can be tricky, and we’re here to give you the push you need to get the ball rolling. With this complete guide on how to start an interior design business, you’ll be up and running in no time.

10 Steps to Help You Start an Interior Design Business

1. determine what services you’ll offer.

The first thing you want to plan are the types of services you’ll offer. As an interior designer, you want to make sure you’re not taking on more than you can handle. If you only want to design kitchens & baths, for example, you need to make it clear from the get-go.

If you’re going the e-design route, you need to make a list of specific deliverables.

• Paint palettes
• Mood boards
• Shopping lists
• 3D renderings
• Detailed notes

These might be slightly different than if you were to offer the full interior design experience (i.e., dealing with contractors, manufacturers and suppliers).

2. Focus on your style & specialty

We all have our own style, and we tend to excel at what we know best. If you specialize in mid-century modern style or rustic style or traditional style, that is what you should focus on.

That’s not to say you need to only take on clients that share your style, but when you start an interior design business, you want to be targeting your ideal clients.

Ask yourself these questions:

• What is your design style?
• Do you want to focus on condos or bigger homes? (or both!)
• Do you want to design homes for families with kids or just couples?
• Do you want to design both indoor and outdoor spaces?
• Do you only want to design kitchens & baths?

You get where we’re going with this. Find your niche, find your style, and you’ll attract the right kinds of people.

3. Choose a catchy business name & register it

Now the real fun begins! You need to come up with a name for your business. It needs to be catchy, and it needs to reflect your work. Have a lengthy brainstorming session and write down all your ideas.

Some things to keep in mind:

• Don’t make it complicated
• Don’t choose words that are hard to pronounce
• You can include your name if you want to (e.g., Jessica Interiors)
• Use words that have to do with interior design (e.g., interiors, spaces, designs, etc.)
• Make sure no one else is using the same name

Once you’ve chosen a business name, you need to register it with your state or province. Make sure you have all the licenses required by law to start an interior design business so you don’t run into any trouble later on.

4. Build a beautiful website

This is a no-brainer. You’re an interior designer, you create beautiful spaces, so when you start an interior design business, you need a website that matches your career. If you don’t have experience building a website, you might want to hire someone to do the job. Or you can watch tutorial videos and do it yourself (it’s not that hard, promise).

Here’s what you’ll need to do:

• Register a domain name & web hosting
• Install WordPress (or use another platform)
• Invest in a good theme
• Use stunning images
• Provide proper information (services, contact info, etc.)
• Include testimonials
• Optimize your website (see this guide on SEO for interior designers )

Building and perfecting your website will take a while. Don’t rush things, and don’t start promoting your website if it’s incomplete. Remember – your website is a reflection of you as a designer.

5. Build a portfolio

When you first start an interior design business, you might not have a portfolio yet – but that’s ok. You don’t necessarily need a huge portfolio at the beginning of your career.

Here’s what you can include in your portfolio:

• Images of your own home
• 3D renderings of spaces (you’ll need interior design software for this)

If you have images of spaces you’ve designed for actual clients, even better! You should definitely include those as well.

6. Set your rate

When you’re ready to set your rate , you’re going to have to do some homework. How much do other designers in your area charge? Do you have interior designer friends/colleagues you can ask? How much experience do you have?

Different types of rates include:

• Hourly rate
• Percentage of overall cost
• Cost per square foot

Once you’ve decided how you want to charge your clients, you need to write out an agreement and have your clients sign an interior design contract to seal the deal.

7. Promote the heck out of your business

You’ve created a gorgeous website and you’re ready to take on new clients. Great! Remember that clients won’t just randomly find your website with a quick Google search (not at first, anyway). You’ll have to promote your website and services, and you need to be aggressive about it.

• Be active on social media
• Use paid ads (don’t blow your budget, though)
• Make business cards
• Ask your friends and family to spread the word & share your website
• Attend tradeshows and network
• Join associations such as the NKBA , NARI , or ASID

If you want to learn more about how you can market yourself and promote your services, check out this eBook .

8. Start a blog

Once your website is set up and you’ve started promoting your services, you should look into starting a blog. Even if you’re not a writer, you’ll get the hang of it. Write posts about design tips, designs trends – anything related to design, really.

When you write a post, you need to keep certain things in mind:

• Is it relevant to interior design?
• Is it interesting?
• Does it provide useful information to your readers?
• Is it SEO optimized ?

If you’re going to start a blog, you need to be prepared to post regularly. Don’t start a blog if you’re only going to be publishing content once every 3 months, because potential clients who will visit your website will see that you are inconsistent.

9. Have a dedicated work space

Now that you’ve taken care of the digital side of starting an interior design business, you can focus on creating a work space for yourself. We know, working in your jammies on your couch is always fun, but you’ll be more productive if you have a dedicated work space.

• Is clutter-free
• Has enough storage
• Has a desk/surface
• Has good lighting

If you have the budget to rent (or even buy) office space, by all means go for it. But if you’re on a tight budget, you can work from home and meet your clients at their home or at coffee shops.

10. Build relationships with suppliers & contractors

One of the smartest things you can do when you start an interior design business is to build good relationships with suppliers and contractors. You want to have connections with reliable people who will deliver exactly what you ask for, on time, every time.

Make sure you build relationships with:

• Cabinet suppliers
• Appliance distributors
• General contractors
• Countertop suppliers
• Textile suppliers

The more people you know and the more connections you have within the industry, the better.

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How to Start an Interior Design Business in 8 Steps

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You’ve always had a knack for creating the perfect aesthetic at home. You understand how to tell a story using colors, materials and textures. You have a great eye for furnishings and know exactly what goes where to create living spaces that would put any Pinterest board to shame. If you’ve nodded along so far, then the interior design business could be a great fit for you. Leverage your capabilities and skills to become an interior decorator. It’s going to be an incredibly rewarding and fulfilling experience. Here’s what you need to learn how to start an interior design business.

Why Start an Interior Design Business

One of the biggest advantages of starting an interior decorator business is that you don’t necessarily need a degree or qualification. It’s your skill and experience that takes you places in this business. You also don’t need an extensive portfolio to begin. Start small by taking on minor projects to build up your portfolio.

In most businesses, you’d be required to rent a location, acquire equipment and merchandise, get packaging materials, etc. Your interior design service has no need for those expenses. Sure, once you expand you can invest in creating a studio, but you can get started simply with an online presence. 

Being your own boss provides unmatched flexibility and freedom. You set your fees and choose your hours and who you work with. This enables you to make the best use of your time as you continue to expand the business. 

Perhaps the most fulfilling aspect of this career for interior design professionals is the ability to be creative. It seems so many of us work jobs that wring the creativity out of our lives. In the interior design industry, every project is a clean slate, a chance to bring your creative vision to life.

8 Steps to Start an Interior Design Business

There isn’t a high barrier to entry into the interior design industry but don’t let that fool you. Don’t jump in without doing your due diligence first; otherwise, you won’t be setting yourself up for success. These steps on how to start an interior design business guide show how you should go about this.

1. Develop Your Business Plan

There’s one thing you must do before starting to look for clients and that is to create a business plan. Having a solid business plan in place before you begin is essential as it functions as a roadmap for you to execute your idea and expand the business. There are several key components that your business plan must include. 

Conduct market research

Research the market you’re operating in thoroughly as that will influence the services you offer, what you can charge and how you can market them. For example, if you intend to operate in an area that primarily has condos, you’ll adopt a suitable marketing strategy instead of generic ads that don’t resonate with the target audience. 

Look at what your competitors are doing, too. Understand the strategies they’re using to get more clients and see if there’s a gap in their services you can fill. Take the fee they charge as a benchmark and price your interior design service accordingly. 

You have to give a new client a solid reason to choose you over another interior design professional. What that reason is going to be can only be determined once you’ve done the due diligence and positioned yourself competitively in the market.

Choose a business model

Decide what business model fits you. For example, you may want to offer interior design services on a freelance basis, allowing you to retain another job or make it your full-time job. This will dictate how much work you take on and what you’re able to accomplish in the time you give to it. 

The business model needs to be based on your unique selling point, the one thing that you feel you can do better than your competitors. It may be an excellent vision for sleek and modern design or your ability to capture the essence of minimalism. This will also make it clear how your services should be packaged. 

You may want to offer clients different service levels depending on their budget, providing them with the flexibility to choose what suits them while ensuring that you’re able to convert a lead into a customer.

Create a Business Name

Most interior design professionals prefer building a personal brand as it makes them more recognizable and provides them with the flexibility to expand into other businesses, particularly those that benefit from a strong personal brand. 

If you intend to create a full-fledged interior design firm in the future and hire other designers, it would be better to choose a good business name that represents your style and creativity.

After selecting your desired business name, be quick in registering it, as you wouldn’t want someone else to claim ownership of the name. 

Plan Your Marketing Strategy

People in the interior design industry rely heavily on marketing. You need to show potential clients what your skills are; they must see it to believe it. Plan your marketing strategy around it so that the campaigns you run are able to generate maximum impact. 

Your business plan should highlight the platforms where your marketing campaigns will run. It should also mention how much marketing spend needs to be budgeted and how that budget will be spent across platforms. 

Develop a strategy for organic marketing as well. This will keep bringing people to your website and blog even when you’re not running paid campaigns, enabling you to generate more leads.

2. Decide on Your Business Structure

Picking a business structure is important for several reasons. It ensures that your business and personal finances remain separate, a key requirement to complying with your tax obligations. It simplifies bookkeeping so that you have complete clarity about the income and expenses of the business. The legal, regulatory and tax obligations also vary based on the structure chosen. Pick the one that’s most suitable for your vision for the business .

Sole Proprietorship

A sole proprietorship is an unincorporated business with a single owner. It’s the preferred entity type for new small business owners as there are minimal reporting or documentation requirements. To open a business bank account as a sole proprietor, you’ll need to get an Employment Identification Number (EIN) from the IRS. 

One major disadvantage of a sole proprietorship is that the owner remains personally liable for all debts and taxes of the business. There’s no separation between the two, and the owner assumes the risk to their personal assets. 

General Partnership

A general partnership doesn’t differ all that much from a sole proprietorship. It includes multiple owners instead of an individual who together share the responsibility and profit. The documentation and reporting requirements are similar, so they can be set up fairly quickly.

The disadvantage of a general partnership is also similar. All partners are responsible for the liabilities of the business and take on exposure to their personal assets, which may be seized or liquidated should the business not be able to meet its liabilities. 

Limited Partnership

Limited partnerships function a bit differently. A general partner is made responsible for running the business while others effectively function as silent partners with no management role. Multiple partners are thus able to invest in a business run by someone who they deem to be a competent operator.

As the operator, the general partner assumes unlimited liability, which means their personal assets remain exposed. The liability for other partners is limited only to the amount they have invested in the limited partnership.

Limited Liability Company

A limited liability company (LLC) can be a safer option for small business owners, and it also has simple reporting requirements. Owners are required to register the LLC with the Secretary of State with the relevant documentation. The single-member LLC is a preferred choice of interior design professionals. 

An LLC limits the owner’s personal exposure to business liabilities. Their assets remain protected even if the business is unable to meet its obligations. LLCs don’t exist in perpetuity, though, and can be dissolved upon the death of the owner or bankruptcy. 

Corporation

A corporation is a separate legal entity, and it can borrow money, acquire assets, enter contracts and more in its own capacity. One major advantage corporations have over other types of entities is that they’re able to raise funds through the sale of shares. 

Owners have no personal liabilities, and their assets remain fully protected. There are strict reporting requirements for corporations with regular paperwork filings also required. It’s generally costly to set up and run a corporation.

3. Register Your Business

Before you begin, you’ll need to register your interior decorator business. The requirements will vary by state so be sure to check the specific requirements where you intend to do business. You’ll generally be required to choose a business name, get a license and register for any state and local taxes. 

For federal taxes, you’ll need to register your business with the IRS and get an EIN. There will be different processes to follow if you want to register an LLC vs. a corporation, for example, so be mindful of that.  

4. Get the Necessary Licenses and Permits

Generally, there may not be specific licenses that you need to obtain to start your interior design business. However, there are some exceptions to the rule, particularly in states like Florida and Nevada, where you must be registered if you’re working unsupervised in any commercial space.

You’re typically required to provide information about the nature of your businesses before these licenses and permits can be issued. There are often fines for not complying with these requirements before beginning, so it’s best to be completely sure that you’re in compliance and have obtained the relevant permits before taking that job. 

5. Secure Funding

Funding is always a big headache for small business owners as they may have a great idea but not enough resources to bring it to fruition. While there tend to be low overheads for an interior decorator that’s just starting out, there will be expenses nonetheless for things like design software, sketching supplies, transportation and more. 

There are several ways you can raise funds to get your business off the ground. You could reach out to a bank or credit union to see if they’ll provide a business loan. They may be able to help you with financing, provided that you have a solid business plan and are able to show them how your business is going to make money. 

You can also leverage the power of crowdfunding and raise the required funds or ask people in your immediate social circle for an investment in your business. Venture capital funds are also interested in investing in groundbreaking companies, so if you intend to do something entirely different with your design firm, you can reach out to them as well.

6. Get Insured

A business can quickly go bankrupt if it’s held liable for something that it doesn’t have adequate insurance coverage over. There could be property damage during a project, for example, that requires the business to make repairs at the project. Depending on the scale of the damage, that could easily bankrupt it. 

Personal injury insurance is very important if you’re working with others as it helps limit the liability should somebody get injured on the job, which happens more often than you think, despite stringent workplace safety regulations. 

Ensure comprehensive insurance coverage for your business so that it remains protected in the event of any liability. 

7. Build Your Website to Showcase Your Portfolio

Build a great website that showcases your skill and creative vision to potential clients. Interior design is a very visual-forward business. Clients will only reach out if they’re able to see precisely what you’re capable of. The only way to do that is to create a portfolio on the website that includes images of some of your best work. 

The website should also provide detail on the services you offer, and it needs to highlight your unique selling point so that clients can easily understand why you’re different from the rest. Provide them an idea of what you can get done for them and make your contact information easily accessible so that they can reach out quickly once your website convinces them.

8. Establish a Professional Network

Establish relationships with other professionals in the interior design industry to expand your network. You can do that by attending trade shows, events and conferences to connect with people and let them know about your business. It’s a great opportunity to get the word out about your business, increasing the chances of getting clients referred to you. 

Design Your Path to Financial Freedom

A thriving interior design business can help you achieve true financial freedom with the flexibility of working when you want and where you want. It’s the dream lifestyle that many business owners aspire to, and it’s indeed within reach. What it does require is diligent management of your business. 

Bookkeeping is a vital part of business management. You should always have absolute clarity about the money coming in and going out. It will help you make informed business decisions. Use great tools to simplify your bookkeeping. With doola Bookkeeping , you can precisely track all income and expenses of the business to have full visibility into its finances. 

How do you start an interior design business with no experience?

You can start an interior design business with no experience by working on smaller projects first, allowing you to build your portfolio, which will then enable you to expand your business and take on bigger clients.

How to start an interior design business without a degree?

You don’t need a degree to start an interior design business. It primarily requires you to have a great sense of design and skill, which you can leverage to start a business that helps people with their interior design.

How to start an online interior design business?

An online interior design business can be started through profiles on social media networks like Facebook and Instagram as well as a website. You can offer services that can be done entirely online, such as mood board design or color recommendations.

How much do interior designers charge in the U.S.?

Interior designers in the U.S. normally charge between $100 to $200 per hour, but that largely depends on the experience and portfolio of the designer. Those who are more experienced are going to charge higher fees.

Do interior designers need a license?

Interior designers don’t typically need a license in the U.S., but some states may require them to be registered as business owners. You should check the prevailing regulations in your state to be absolutely sure if you’ll need a license.

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Interior Design Business Plan

From decor ideas to make homes look personalized to making effective use of space to designing attention-grabbing furniture, good interior designers can do it all and more.

After all, your home talks before you do. Hence, people want the best for their homes. Be it for form or function.

If you are planning to start a new interior design business, the first thing you will need is a business plan. Use our sample Interior design business plan  created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new interior design business, spend as much time as you can reading through some examples of  services-related business plans .

Industry Overview

The interior design market stood at a value of 150.7 billion US dollars in 2020 and is expected to grow at a rapid rate going forward as well.

The major reason for the growth of interior design is the want for spaces with more utility and personal touch.

With higher income, beautiful homes have become a priority over these years, leading to the massive expansion of the interior designing business.

And if you have the skill to make smaller spaces more useful, then you have a great potential to do well in the interior designing business.

Say goodbye to boring templates

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Things to Consider Before Writing an Interior Designing Business Plan

Determine the services you’ll offer.

Knowing what you’ll offer alongside your primary services and advertising, is essential to help you set the right expectations for your customers. It is important to have a framework for your services and resources to fulfill them.

Develop a unique style

In a world full of beautiful homes, people want theirs to stand out and give out a personalized and unique vibe. Hence, it is necessary to develop a style that makes your design stand out and has space for giving the house a personalized and homely atmosphere.

Make a portfolio of your designs

This is something that you should surely pay attention to when you are learning interior design or doing an internship. Make a portfolio of your designs that become proof of your designing skills, help your clients decide what they want, and act as an inspiration for designing homes.

Build a web presence

In today’s digital world, staying present online is equivalent to breathing for your business. Because a lot of people nowadays avail services through websites and social media. Hence, having a strong presence on all relevant platforms is essential for your business to thrive. You can post pictures of finished projects, DIYs, and many more.

Chalking out Your Business Plan

If you are someone with an artistic flair and can increase the utility of space then an interior design business might be the perfect career for you.

But wait, before you go ahead and take the plunge, don’t forget to write a well-rounded interior design business plan to help you along the way.

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample interior design business plan for you to get a good idea about what a perfect interior design business plan should look like and what details you will need to include in your stunning business plan.

Interior Design Business Plan Outline

This is the standard interior design business plan outline which will cover all important sections that you should include in your business plan.

• Mission Statement
• Vision Statement
• 3 Year profit forecast
• Keys to Success
• Company Ownership
• Company Locations and Facilities
• Product and Service Description
• Competitive Comparison
• Sales Literature
• Sales Yearly
• Service Business Analysis
• Market Analysis
• Target Market Segment Strategy
• Market Trends
• Market Growth
• Market Needs
• Distributing a Service
• Competition and Buying Patterns
• Main Competitors
• Business Participants
• SWOT Analysis
• STRATEGY #1 – Generating Referrals
• STRATEGY #2 – Product Sales
• STRATEGY #3 – Generate Awareness Through the Website
• Value Proposition
• Competitive Edge
• Marketing Strategy
• Pricing Strategy
• Promotion Strategy
• Distribution Strategy
• Strategy #1
• Strategy #2
• Strategy #3
• Positioning Statement
• Web Plan Summary
• Sales Programs
• Strategic Alliances
• Organizational Structure
• Personnel Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample business plan into your business plan and modify the required information and download your interior design business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample interior design business plan

Need help writing your business plan from scratch? Here you go;  download our free interior design business plan pdf  to start.

It’s a modern business plan template specifically designed for your interior design business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Interior design startup guide: Part 3

How to start an interior design business.

There are no hard and fast rules when determining how to start your own interior design firm, however, there are invaluable learned experiences that can be heeded and that’s where Houzz Pro experts can help. From creating a business plan to hone your brand vision, services and pricing structure, to registering your new firm, setting up separate bank accounts and marketing to the right type of client, this pragmatic guide aims to answer a whole host of conundrums about how to start an interior design company, so you can hit the ground running.

Step 1: Set your business plan & vision

Being a great interior designer doesn’t make you a natural at running a successful business. That’s why it pays to set out a clear business plan and vision before diving straight in. Here, we focus on the fundamental aspects your business strategy should cover, from start-up costs to ongoing funding, pricing of services to finding the best location to launch your firm. Put this plan and vision in place from the outset and your early days will flow efficiently, freeing up your precious time and energy to concentrate on projects and attracting leads.

Dive into the articles below to inch closer to knowing how to open an interior design business.

How Much Does It Cost to Start an Interior Design Business?

How to Write a Business Plan for Interior Design

How to Get Funds for New Interior Design Business

How to Price Interior Design Services

How to Choose Location for Interior Design Business

One Simple Solution for Design Pros

Best Places for Interior Designers to Launch Their Business

Explore our interactive map to see Interior Designer supply and demand by U.S. state and city.

Choose your interior design business entity & name

Landing on the right name for your interior design firm that appeals to your target market is essential for the success of your business, as is selecting the correct legal structure to operate under, such as an LLC or sole proprietorship. Baffled by the legal aspects of how to start your own interior design firm? Don’t be. We’ve done the hard work for you by clearly defining the main types of legal entities that best suit your interior design business, as well as explaining why a clear, concise and memorable name for your firm is likely to see the leads rolling in. Jump into any of the guides below to find answers to all of your business-launching related questions.

How to Name Your Interior Design Business (Video)

How to Register Your Interior Design Business

Should I Copyright My Interior Design Business Name?

Should I Trademark My Interior Design Business Name?

Should My Interior Design Business Be an LLC or Sole Proprietorship?

Is It Better to Have An LLC or Corporation for An Interior Design Business?

Incorporating LLC Into Interior Design Business Branding

Should I Start an LLC for my Interior Design Business?

INTERVIEW WITH REAL DESIGN PROS

How to start your own interior design business.

Houzz Pro interviewed real interior designers to help you learn how these pros built their business from the ground up. Watch and listen to fast track your journey to becoming a professional interior design business owner.

Step 3: Set up business bank accounts and start planning for funding or expenses

Creating a separate business bank account will not only help you to streamline your income and efficiently manage your tax payments, it will also help you devise an effective and convenient payment strategy for your clients, so they have a transparent billing experience. Explore the articles below for more information on how to start a freelance interior design business that can both accept and send funds.

Do I Need a Separate Bank Account for My Interior Design Business?

What Taxes Do I Pay for an Interior Design Business?

Do Interior Designers Need Insurance?

How to Collect Payment From Interior Design Customers

KEEP LEARNING

Step 4: market & manage your new interior design business.

Once your business strategy is in place, you’ve nailed down your name and brand ethos, and you’ve identified your target market, it’s time to start promoting your skills and services. For expert tips on topics such as expanding your reach to targeted clients, improving your SEO and turning clicks into leads, don’t miss our Startup Guide: How to Grow Your Interior Design Business and prepare to elevate your firm to the next level.

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How To Start An Interior Design Business: 15 Steps To Launch

15 Mins Read

November 10th, 2021

Jump ahead to:

Interior Design Business

Interior design is a work of art. Sure it may not be about picking up a brush or a guitar, or any conventional art form that we revere but putting together an entire house to reflect the personality of the homeowner is nothing short of talent. When you have an innate gift from God to do something better than everyone, you cannot let it go to waste.

Most interior design firms hire these talented artists because they see more potential in them than the interior designers do in themselves. While working for a firm offers exposure and definitely first-hand knowledge into the interior design industry, there is more to it.

If you have the talent and the confidence to make it on your own, then do it. Create a viable business plan and start your own interior design business to show the world what you’re really capable of. These days, entrepreneurs all but grow on trees. If they can do it, so can you.

Of course, there is a bit of planning and a requirement to work out the kinks of a startup. That’s what we are here to help you do. Today, we will discuss the steps you need to take in order to launch your small business and take it to new heights. We will lay out the plan so you can live your dream.

Are you ready?

Read also – 10 Essential Tools for Interior Designers

Image Credit: krofficeinteriors.com

How to start a successful interior design business?

Now, before we move on to the steps, we just want to share one thing. If you’ve come this far seeking a way to launch your own interior decorating firm then you already recognize your potential. Don’t turn back. We understand that inaugurating a new business can be scary and make you feel off-balance but if something scares you, that means you want it badly. It is only the fear of failure that’s blocking you, not your talent.

Use these steps and tips to methodically fulfill your dreams despite what society or your fear might be telling you. So, let’s get started:

1. Work on your portfolio

If you have the opportunity to work with an already established interior design firm before you start your own business then take the opportunity to build your portfolio . Select the best and most outstanding design projects you have ever created and put them into a presentation format.

If, on the other hand, you are a fresh new graduate with an excellent eye for design but no former experience, you can use software programs. Foyr Neo is a personal favorite to several interior design professionals and students alike due to its user-friendly interface and cloud-based platform. Use the technology they offer to your advantage.

You can select different layouts and build a portfolio of your design ideas. You can even create mood boards and 3D presentations to impress new clients with your design work.

A portfolio is what potential clients will see before they hire your interior design services. Therefore, you need to put your best foot forward and plan it out precisely.

Read also – 16 Interior Design Rules Every Interior Designer Should Follow

Image Credit: pinterest.com

2. Identify your USP

Every interior designer has a personal style and themes that they prefer. Maybe you like modern architecture and design, perhaps you’re inclined towards classic combinations of elegance and antiques, or maybe you are good with wicker and rustic themes.

It is important to identify your unique selling point; the design style you excel at that no one else can touch you with a ten-foot pole.

Create new interior design ideas to dominate a floor plan that design clients find most attractive. You don’t have to delve into every design style if they don’t appeal to you. Identifying your USP will help find the right target market, thereby making you a success in your own right.

Read also – 20 Common Interior Design Mistakes To Avoid

3. Perfect your skills at using interior design software

Interior design software programs are your new best friends. Find one that is easy to use and offers multiple horizons to explore.

Foyr Neo is the top-rated interior design software that offers different floor plans to choose the square foot of a layout an array of color palettes, furnishing, mood boards, and templates. You can create a new interior design on a cloud-based platform, which means you will always have access to them even if your computer breaks down or you lose your phone. The software also offers 3D models and visualization that helps design clients envision all your design work in real-time scenarios.

Use these techniques to create mind-blowing design work with a clear vision. Once you master the interior design software programs, you can build anything your client desire with finesse and appeal.

Read also – How To Learn Interior Design Software?

4. Decide on the interior design services that you wish to offer

As we have said before, you don’t need to cater to the overall market. Choose your interior design services based on what you excel at.

If you are good at designing commercial buildings then offer services applicable to office spaces. If you’re good at home decorating then you can render services for residential properties. If you so choose, you can even offer to decorate a church or an event venue.

Once you identify the type of properties, select the services that you are best at designing. Perhaps you have a list of custom furniture designers or deck and landscaping experts at your beck and call. Maybe you are well-connected with art dealers and auction houses. Maybe you have a solid repertoire with furniture stores that offer unique pieces. Or perhaps, you’re connected to them all.

Offer the services that you know you can do better than all your competitors. Although you can delve into an overall design scheme, your personalized services will speak mounds of your talent.

Read also – 15 Problems Most Interior Design Business Faces

5. Do you need an office?

Now, we come to the execution part. This is where you need to start your business in full swing.

Ask yourself, do you need an office space in a commercial building or do you want to start at a scaled-down level in the beginning?

If you’re starting your new business with no external aid or former experience, you can always begin your design work in your home office . Clients won’t mind visiting your home office, especially if it provides a glimpse of what you’ve done with the space in your own home. It subliminally reflects personal dedication.

If, on the other hand, you prefer an office space in a commercial building then keep in mind, you have to pay rent and utilities, so, plan accordingly.

If your business plan is flawless then no one cares where you set up shop as long as you render top-notch interior design services.

6. Select a prominent business name and get business cards

This is an important aspect of any business. You need to select a name that will not only clue ideal clients about your excellence but also reflect your personality.

A lot of designers tend to use their own name to build a brand , which shows confidence and sets them apart from their competitors. Other interior design professionals choose business names that represent a faceless brand. This is also a welcome technique if you plan on hiring designers and expanding your horizons as business owners.

The name of your business is pivotal because when you apply for credit cards and financial aid, it helps separate the commercials of your business from your personal account. The stakeholders will partake in financials when you expand. However, if you use your own name, the line between professional and personal tends to cinch considerably.

If you’ve selected your business name, register it. You don’t want competitors beating you to the punch. This registration is a precursor to what comes next but before that, don’t forget to print out business cards.

A business card tells the client at a glance that you have established a legitimate operation with a genuine business email and a location of operations. You can add your business contact along with important links embossed on the card. Soon you’ll know the true purpose of the card too, we promise.

Read also – How To Become An Interior Designer?

Image Credit: 1800businesscards.com

7. Apply for a business license

Once you have the business name in place, you need to apply for a license. No trade is valid without an authentic business license whether you work from the comfort of your own home or in a startup office space. Trust us when we say that the sum you invest in licensure is thrifty compared to the huge fines you’ll have to pay if the IRS comes knocking.

So, to get started, you need to register your business name and apply for a license. You probably already have an interior decorating license from the board but this is a trade license. They are very different.

Your license to practice allows you to legally work for any firm and offer your exquisite insight. However, a trade or business license registers you as an independent business owner or a company that is allowed to transact financials separately in the name of the brand. Your personal finances have nothing to do with it.

The business license is also further proof to potential clients that you are legit and won’t run away with their down payments leaving them high and dry. It also allows you to participate in trade shows and exhibitions where you can seek new clients and customers .

Read also – Financial Management for Interior Design Business

8. Create an online presence

Every brand needs an online presence. It is the face of the company that any interested party is going to see before they approach you.

Now, we have discussed making a portfolio presentation. However, if you think about it, not all design clients will offer you the opportunity to share a PPT file or a large book. You can’t even carry that binder around wherever you go and you may inadvertently lose potential clients in the process.

We have a solution to that.

Build a website. Use your business name as the domain and create your online presence on the World Wide Web, which is literally accessible worldwide.

When you have a website at the ready, there is more than one way to impress clients with your innate talents and design eye. You can simply hand over your business card with the website address. Clients will find your approach non-aggressive and professional.

There on, it is up to them to check out your website and discover your services for themselves. A well-built website reflects the business owner’s attention to detail and their ability to design just about anything.

If you don’t want to spend a lot of money on a new website with servers and online securities, you can simply opt for some of the free or low-cost options available. There’s WordPress which offers various templates and fonts along with multiple pages or you can opt for other similar options. Once you have the finances to support it, you can make the website independent for a small fee.

The best part about these website builders is they use shared server systems thus reducing your overhead technical costs.

You can design the website however you like. They can reflect your design work while subliminally influencing clients to hire your interior decorating business for their specialized needs.

Read also – Client Presentation for Interior Designers

Image Credit: searchfit.com

9. Decide on your design fees, both base rate, and additional charges

You need to have a definitive price in mind for your design services.

Start by determining a flat fee. This is the amount that you will charge for consultations, whether or not the client moves ahead with the design project. It is a sort of insurance so clients don’t consult with you for free, get the required information, and then turn around and hire cheaper designers who will execute your plan. You get paid for any services rendered including a simple consultation.

Next, you have the variable charges. These are highly reliant on the amount of work that needs to be done, the crew you will hire, the acquisition of various raw materials, furniture, etc., and the labor time.

Lastly, you need to have a set design fee . This is again contingent on any altercations that the client may raise after you start the design process. It keeps your business protected against losses.

You can print out a tariff for all the components of your design fee and let the clients decide for themselves. Think of it as a filter wherein you don’t waste precious time with potential clients who are on the fence or simply window-shopping. It will help save time to address the issues of ideal clients with who you can share mutual benefits wherein you do the work and they provide references for more projects.

Read also – Pricing Strategy for Interior Designers

10. Identify your target market and start promoting

Your target market makes for ideal clients. You need to identify what kind of demographics you want to cater to.

If your design style focuses on exquisite antiques and elegant designer pieces, then your target market is high-end. If you want to target the middle-class population then your design work must include beautiful woodwork and pleasant aesthetics at a fair price.

The target market also helps you determine what kind of network you need to build and your design fees.

11. Build relationships and network as much as possible

Networking is the root of success for all businesses alike. Interior design is no exception.

Build relationships with real estate agents and websites for recommendations. Their clients are always looking for interior decorators so, make sure you are on top of their list.

Subsequently build good relations with people working at art galleries, antique auction houses, furniture designers, suppliers for raw materials, and other items that you know you will need to execute your design plans. These connections will help you acquire the necessary materials, wall art, and home decor as per your client’s expectations.

If you wish, you can always make a profit in these regards while bringing your client’s vision for their dream home to life.

Also, build relationships with architectural firms and contractors. You can not only land huge projects but also hire an efficient labor force at a reasonable cost based on your client’s budget.

Another important aspect of networking is to secure new clients. You never know where you might come across someone looking for a home remodel. You can simply hand them your business card with the company profile and website for further discussions.

Read also – Best Interior Design Communities

12. Who is taking care of bookkeeping? Do you need staff?

Now that the basics of your business are set up, consider the manpower. Do you believe you can handle the entire design process unilaterally or do you need staff?

You can always start by yourself or with a small team who can help you with the design work and execution. If you’re not well-versed with technology, you may need to hire someone who can develop the website with appropriate security.

Then there is accounting. It is ideal to hire someone who is professionally equipped with thorough knowledge in bookkeeping. There are several apps that can simplify the process too so if you wish to create a one-man army then perhaps look into these applications.

New business owners have to wear several hats at the beginning for their company to gain recognition. If you can learn all the processes yourself, then do it. Otherwise, you can hire staff.

Read also – How To Raise Funds for Your Interior Design Business?

Image Credit: mdtaxattorney.com

13. Hustle for New Clients

No one is going to come knocking at your door unless you put in the hard work. You need to develop an efficient marketing strategy and deploy several promotions.

The start of a new business is when you need to hustle. Put in the long hours to plan, strategize, and do the work. Socializing with friends for entertainment needs to take a back seat when you want to establish your brand.

Just keep up your work till you can hire other people to manage the quirks. Even then, don’t stop hustling if you want your business to be successful.

Read also – How Do Designers Get Interior Design Clients On A Low Budget?

14. Collect testimonials and referrals

Once you have one or more satisfied clients, ask for testimonials to post on your website. The feedbacks help other clients determine whether or not you are the right fit for their interior design needs.

Another thing is, a new business flourishes on ‘word of mouth.’ Don’t shy away from requesting satisfied clients, friends, family, potential network , and in general, people you know for referrals. They can recommend your business to other people and the simple idea of having someone endorse a brand they know goes a long way into enticing potential customers. It plays on human psychology that if someone is commending your work that means there is value to it.

15. Create blogs and social media posts

These days, having an online presence for a brand is more important than the brand itself.

People are constantly seeking validation, reviews, and quality control from strangers. Use this to your advantage by building a constant presence across social media channels and blog posts.

For starters, the blogs go on the website. This is a place where you can share the basic concepts of interior design , the need to customize one’s home space, design tips, and just about anything else that you like. Make sure that the blogs are related to your business though and use appropriate SEO keywords.

The reason for this move is to make sure that whenever a client uses search engines to look for various interior design businesses, your website remains in the top searches. It is a marketing strategy that requires minimal costs.

Next, you must accumulate a few design ideas and create a series of social media posts. These serve to remind potential clients that you’re still the top designers in your business. You can also opt for social media promotions to attract new clients from other regions. These social media channels optimize the protocols as per the demographics of your target audience and pop up on their screen when they least expect it. However, they serve to entice clients into considering a remodel for their home or office, or wherever else they need a change.

Read also –  12 Digital Marketing Strategies for Interior Designers

The steps mentioned above will definitely get you where you want to go but you must remember, your business only succeeds when you put more than what you got. Business owners, especially startup owners need to hustle. Don’t look at the time, look at your revenue and what you have to offer.

The bottom line is, if you do your best, we promise, you will soon achieve more than you dreamed of. However, none of that matters unless you get started. So, take that first step and start already.

You know the secrets. There’s nothing stopping you now.

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• Website Planet

How to Start an Interior Design Business: Scale Your Skill [2024]

• Short on Time? Here’s a Quick Guide to Starting Your Interior Design Business
• Research and write a business plan. You’ll need to be aware of your state’s requirements for registering your interior design business, as well as your ideal business structure and what makes you stand out from the competition.
• Choose a name and register an LLC. Your name needs to be memorable, convey your type of business, and most importantly, be unique . Many states have strict requirements on your name’s availability. Luckily, ZenBusiness offers a free and in-depth business name availability search .
• Apply for tax IDs and obtain permits and licenses. States like Florida and Louisiana require an official certification for you to be able to call yourself an “interior designer” (as opposed to an interior decorator) and work as one. In other states, such as Washington and Nevada, you’ll need specific certifications to work in any kind of commercial area. You should also keep a close eye on the tax requirements for your business structure.
• Open a business bank account and get funding, if needed. Most interior designers can get a good head start with their own funding or with small loans from family and friends. If you need larger amounts of funding, though, you might want to consider applying for a business loan.
• Acquire any required materials, resources, or outsourced services. Make sure you have your portfolio ready, as well as 2D/3D modeling software and some brand identifiers.
• Launch and market your company. Your business’s online presence will be crucial to your success. Luckily, website builders make it easy for you to create and edit an ideal website for all your needs. You’ll find a list of our recommended builders below .
• 1. Researching and Writing an Interior Design Business Plan

A Deep Dive Into the Business of Interior Design

What should you include in your interior design business plan.

• 2. Choosing a Name and Registering Your Interior Design Business

ZenBusiness: The Best Service to Cover All Your Bases

• Free tax savings consultation. With any of its plans, ZenBusiness gives you access to a 30-minute consultation with a business tax professional.
• Online presence features. Though it is a little rudimentary, ZenBusiness gives you access to a full website builder, as well as domain name registration and email hosting.
• Outstanding business extras. For an extra fee, ZenBusiness can take care of crucial aspects of your business such as giving you access to a Registered Agent, applying for an Employer Identification Number (EIN) on your behalf, and helping you file your annual reports when necessary.

Tailor Brands: The Best LLC Service to Help You Establish Your Brand

• AI-powered logo designer. A good logo can do wonders for your business image, and Tailor Brands offers a high-quality, AI-powered logo designer to help you get off to a good start.
• Setup questionnaire available in Spanish. Tailor Brands offers a dynamic setup questionnaire to help you identify exactly what you’ll need to get your business up and running. The questionnaire is also available in Spanish to help ensure that more people have access to its services.

Swyft Filings: Ideal for Getting Your Business Started ASAP

• D ocument assistance. Swyft filings can help you file important documents like Operating Agreements, Banking Resolutions, and Organizational Minutes.
• Free Squarespace domain. Thanks to its partnership with Squarespace, Swyft Filings offers a free domain for one year, as well as additional tools for website design.
• 3. Checking State Requirements for Interior Designers
• 4. Funding Your Interior Design Business
• 5. Buying Interior Design Materials, Resources, and Outsourced Services
• Interior design software. You don’t have to break the bank going for an AutoCAD subscription, though. In fact, most 3D modeling software tends to be way too expensive and unnecessarily complicated for beginners. Programs like DesignFiles, Floorplanner, or SketchUp Pro work just fine and cost a lot less. The ideal software for you will once again depend on exactly what your niche is and which tools you already have some familiarity with.
• A good camera. Hiring a photographer might be a good idea at the beginning. As your business grows and you get more jobs, however, investing in a good camera and maybe some photography courses can save you a lot of time and money down the line. Not only will this mean you don’t have to pay (and wait for) a photographer every time, it also ensures that your portfolio reflects your work exactly as you want it to be seen.
• High-quality prints. This is a very minor expense, but if you have parts of your portfolio that you’re particularly proud of, printing them out on nice paper and putting them in a fancy binder could help you seal the deal with potential clients. It’s also just nice to have a tangible way to view and show your accomplishments.
• Home/office renovation. You have to be your first client. If you can’t trust yourself to create your ideal living space, why should your clients? You never have to share more than you want to, but a couple of good photos of your own living space can be good first additions to your portfolio. This is doubly important in the age of Zoom meetings. A bad background could be enough to convince potential clients to take their business elsewhere.
• A nice, formal outfit. Okay, this one is really optional. But you might want to invest in some good-looking clothes to ensure that you make the right first impression on potential clients. Unfortunately, humans are very judgy creatures, and while your fashion sense might have nothing to do with your prowess as a designer, potential clients might associate them subconsciously.
• 6. Launching and Promoting Your Interior Design Company

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• How to Start an Interior Design Business: A Solid Foundation Is All You Need

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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Detailing the Interior Design Scope of Work + Template & Sample

Interior Design Business Forms & Templates

Interior Design Client Questionnaire: What You Should Ask Your Clients + Template

Interior Design Contracts & Agreements: What To Include + Sample Template

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Best Online Interior Design Services

Revamp and redecorate your home with a just a few clicks.

Revamping your home's interior can be overwhelming, especially if you're unsure where to start. While hiring an interior designer is certainly useful, appointments can book up easily, and sometimes finding someone near you can be difficult. However, online interior services circumvent this issue by virtually connecting you with a designer or decorator who will assess your space and style preferences, all from the comfort of your home.

The best online interior design services are mindful of your budget, and develop a realistic action plan to help you achieve the vision you have for your home. Also, online design services will help you with small projects—like overhauling one or two rooms—that full-service designers may opt to pass on. If you'd prefer to DIY your interior design project, some services even have tools to let you spearhead the project. We researched factors like price, deliverables (samples, renderings, etc.), and access to skilled professionals to compile our lineup of the best online interior design services of 2024.

Best Online Interior Design Services of 2024

• Best Overall: Decorilla
• Best on a Budget: Havenly
• Best All-in-One Package: roomLift
• Best 3D Room Designs: Stuccco
• Best Online Consultations: The Expert
• Best for Swatch Samples: Serena & Lily
• Best Free Service: Crate & Barrel
• Our Top Picks

Serena & Lily

• Crate & Barrel
• See More (4)

Final Verdict

• Compare Services

Frequently Asked Questions

Methodology, best overall : decorilla.

 Design: Sonia C., Photo:  Decorilla Interior Design

Includes two 3D renderings of designs

Receive concepts from two designers

All packages include phone and email support

Option for in-home design consultation

Project closes automatically after 90 days of inactivity

In-home design assistance not available in all cities

Decorilla is unique from other services in that you're not stuck with a single design from one professional. There's also no pressure to buy every item a designer recommends, but the curated shopping lists make it easy to pick and choose what you like.

The entire design process can be completed using Decorilla’s online platform. A design brief gives you the opportunity to tell the designers all about your personal preferences, goals for the room, and budget restrictions. You input measurements of the space to calculate the exact square footage the designers will be working with, and are asked to upload before photos. The team will also incorporate existing pieces of furniture into the design when advised by you.

Initially, Decorilla offers three design packages to pick from and prices vary depending on the size of your project (i.e. a mudroom makeover will cost less than a primary bedroom). For a living room redesign, prices start at $699 and go up to $1,549. It’s worth noting that you’ll get the same deliverables with every package: two design concepts to preview, a realistic 3D model, phone or email support from Decorilla, and a floor plan with furniture placement.

The difference between the packages relates to the skill level of the designers. All of the designers are vetted professionals, but years of experience and access to the designer are significantly higher when you select the Platinum tier.

Minimum price: $699 (for a living room) | Design deliverables: 3D renderings of two design concepts, a floor plan, and a shopping list | In-home consultation? Yes

Best on a Budget : Havenly

Ability to choose your own Havenly interior designer

Two packages that cater to different design needs

Prices start at under $100

Quick turnaround times

You may experience delays when ordering furniture and other products from the site or app

Havenly sets itself apart with a personalized service that’s hyperconscious of your budget. The design company offers two affordable packages that allow you to pick the interior designer you want to work with and include multiple revisions if the initial design doesn't hit the mark.

Customers looking to spice up a room or swap out a few major pieces should opt for the Havenly Mini plan (around $99), which offers product recommendations, like furniture and rugs. Those seeking a thorough revamp of their space should check out the Havenly Full package. This includes a custom layout, 3D images of your newly styled space, and a personal shopping list for $159.

Both plans allow clients to phone, text, and online message their chosen designer. You also receive the first three design ideas in just 2-3 business days, making Havenly the quickest service on this list. Along with multiple revisions, the Mini and Full packages provide users with a detailed list of products and even offer assistance in purchasing those items.

Havenly also offers in-home consultation; however, this product—coming in at $499—is not for the budget conscious.

Minimum price: $99 | Design deliverables: A custom floor plan with 3D renderings (for $159) or a product-only room refresh | In-home consultation? Yes (the in-person package is $499)

Best All-in-One Package : roomLift

Includes textile samples and paint colors that can be pinned up on your wall

Purchase links for each product and retailer discounts are provided

Option to schedule a consultation with a design expert

Design box arrives within two to three weeks

Prices are steeper than some other services

Does not allow for revisions

With roomLift , you'll get a curated box of recommendations based on your completed style questionnaire and any visual assets you share with the company's design team. You'll be asked to describe how the room is being used, if pets and/or children live in the home, whether you plan to keep any existing furniture, and your budget.

A full room design, with a scaled floor plan, samples, and furnishings, costs $1,500, while an accessories-only package costs $750. You can also set up a virtual consultation with a roomLift designer for $100.

Unlike other services on this list, product purchasing is entirely up to the customer. Furnishings and accessories cannot be bought directly from the website. However, roomLift does provide its clients with a list of where to buy the items recommended in the design and offers exclusive retailer discounts.

Minimum price: $100 | Design deliverables: A curated box of recommendations, plus, a scaled floor plan, samples, and furnishings suggestions (with roomLift package) | In-home consultation? No

Best 3D Room Designs : Stuccco

Pros & cons.

Can choose your designer

Unlimited call and email support

High-quality 3D room design renderings

Design completed in 14 days

Web platform can be hard to navigate

Lesser know design company

Stuccco is known for its virtual real estate staging services and quick turnaround (within 12 to 24 hours), but the company's lesser-known interior design services also rank high. You can use its design service to stylize a dedicated room, like a living room, or use it to revamp an open-concept space, like a combined living and dining area.

Working with Stuccco is easy. First, book a free 30-minute call and share your needs; then Stuccco matches you with three of its professional designers and you choose one. After that, you work directly with your designer via phone and email. Next, design concepts, a final 3D design, a furniture layout, a shopping list, and design instructions are delivered to you in 14 days.

Stuccco's designers do not work on commission, and you can buy your home furnishings and accessories at your own pace from suggested retailers. Also prepare to spend a minimum of $999 for using the company's services.

Minimum price: $999 | Design deliverables: 3D design, furniture layout, shopping list, and design instructions. | In-home consultation? No

Best Online Consultations : The Expert

Access to top designers

Standard consultation lasts 55 minutes

You set the agenda for your consultation

Prices start at $350

No tangible design deliverables

Need to thoroughly prep for your call to get the most out of it

Do you love the work of famous designers like Jenna Lyons, Leanne Ford, and "Queer Eye" star Bobby Berk, but know you could never afford them for your own project? Thanks to The Expert , you can book a one-on-one video consultation with some of the biggest names in the industry for a fraction of what their services would normally cost.

This is a great option for homeowners who already have a room plan or design in mind, but need a little help getting it over the finish line. While more expensive than other services due to the level of designers, a design call is a worthy splurge if you’d like expert input without having to pay a sky-high retainer fee or sign a costly contract.

The Expert differs from other companies on this list in that it's advice-based rather than deliverables-based, meaning you won't receive room renderings or fabric swatches. Instead, the concept caters to amateur designers who could use a second opinion from a trusted professional. Typical consultations last 55 minutes, though some designers offer 25-minute chats at discounted prices. Still, these conversations aren't cheap: Prices start at $350, but a phone call with someone like Bobby Berk will set you back $2,000.

Minimum price: $350 | Design deliverables: Video call guidance on things like floor-plan layout, stores and vendors, styling, art, and construction ideas | In-home consultation? No

Best for Swatch Samples : Serena & Lily

Design service is free

Fabric swatches match back to their furniture

Can connect with designers via phone, email, or video chat

Doesn't offer the same deliverables as a paid service

Recommendations are made directly from the company's products (which can be pricey)

Serena & Lily offers a free design service for both store and online customers. Its design services include a room refresh, an entire room redo, a whole home refresh, or an outdoor update. Simply fill out the company's online form and upload images of your space, or photos that you're using for inspiration, then a designer will connect with you via phone, email, or video chat.

Serena & Lily's design advisors will provide you with mood boards, room plans, and fabric and color swatches, and then help you with placing an order to fill your room. Once your furniture and accessories arrive, advisors will help you set up your space to spec.

Minimum price: Free | Design deliverables:  Mood boards, room plans, and fabric swatches | In-home consultation? No

Best Free Service : Crate & Barrel

  Crate & Barrel

Deliverables include a 3D rendering with a 360-degree virtual tour

Work with professional digital designers

Recommendations are made directly from the company's products

Crate & Barrel's free service rivals some of the paid services we've included in our lineup. You are assigned a professional designer to transform one room, multiple rooms, or an outdoor space. If you have a local store nearby, the in-house designer will even visit your home.

After your 45-minute free consultation or video chat, you'll receive a 3D room rendering, a 2D floor plan, custom mood boards, and expert product recommendations. As with other free services, Crate & Barrel expects that you'll buy the company's offerings to transform your space.

Designers are also available via video chat for quick questions while you're shopping the company's product online.

Minimum price: Free | Design deliverables:  3D renderings, 2D space planner, custom mood board, and expert styling | In-home consultation? Yes

Decorilla won our pick for best online interior design service because it's the only service in the lineup that offers you two perspectives from two different designers. The deliverables also include two 3D renderings, assuring you align with one set of recommendations. You also receive a floor plan and a shopping list with no obligation to buy the suggested items.

With Derorilla, the entire design process can be completed online by uploading room measurements and inputting your personal preferences, goals, and budget restrictions. However, you can request an in-home consult in certain regions. Lastly, Decorilla lets you choose from three packages based on the years of experience you desire from a designer.

Compare Online Interior Design Services

What are the best interior design apps.

The best interior design apps allow you to create floor plans and visualize products within your space without the help of a professional. Apps like HomeByMe and Homestyler let you build rooms from scratch, while Houzz and Morpholio Board are great for gathering inspiration.

How Do Online Interior Design Services Work?

Most projects done virtually begin with the client providing photos and measurements of the space they're redesigning. Some services ask customers to fill out a quiz or questionnaire to get a feel for their style and how they want the room to function. Based on the information you supply, an online design service will curate a list of suggestions for furniture, rugs, and accessories. In some instances, you may also receive 3D room renderings and floor plans. You usually collaborate with the designer by phone, text, or email, and the turnaround time is much quicker than using an in-person designer.

How Much Do Online Interior Design Services Cost?

The cost of online interior design services varies based on the deliverables included, the experience level of the designer you're working with, and the number of rooms being remodeled. Prices range from around $80 for accessory-only packages to $1,500 for a single-room redesign, complete with samples and a floor plan. A video consultation with a well-known interior designer can also set you back $1,000 to $1,500. And some services are free, provided you purchase products directly from the company.

Who Are Online Interior Design Services Good For?

Online interior design services offer custom designs for less than what you'd pay a traditional interior designer . For many homeowners, the money you'll save makes it incredibly worthwhile. But a lot of these companies don't offer the same personalization and customer service you'd get working with a designer one on one. They're best suited for clients who may need some design guidance but can execute certain stages of the process on their own.

To determine the best online interior design services, we evaluated elements such as designer experience and access, plan pricing, deliverables, and the ease of purchasing recommended products. For each service, we researched all the plans available, comparing the cost and benefits provided. We took note of whether the plan includes revisions, and if so, how many.

We also considered whether clients can choose their designer and the frequency and mode of communication. Finally, we checked out how and when the user can buy decor and furnishings to make their customized design plan come to life.  

The Spruce / Amelia Manley

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How to Start an Interior Design Business

Starting an interior design business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful interior design business.

Importantly, a critical step in starting an interior design business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start an Interior Design Business :

• Choose the Name for Your Interior Design Business
• Develop Your Interior Design Business Plan
• Choose the Legal Structure for Your Interior Design Business
• Secure Startup Funding for Your Interior Design Business (If Needed)
• Secure a Location for Your Business
• Register Your Interior Design Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Interior Design Business
• Buy or Lease the Right Interior Design Business Equipment
• Develop Your Interior Design Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Interior Design Business
• Open for Business

1. Choose the Name for Your Interior Design Business

The first step to starting an interior design business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your interior design business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your interior design business.

2. Develop Your Interior Design Business Plan

One of the most important steps in starting an interior design business is to develop your interior design business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your own business.
• Company Overview – this section tells the reader about the history of your interior decorating business and what type of interior design business you operate. For example, are you a residential interior design business, commercial interior design, hospitality interior design, institutional interior design, product design, or a design contractor?
• Industry Analysis – here you will document key information about the interior design industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your interior design business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your interior design business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your interior design business.

Next you need to choose a legal structure for your interior design firm and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the interior design business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start an interior design business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an interior design business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an interior design business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your interior design business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Interior Design Business (If Needed)

In developing your interior design business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an interior design business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an interior design business that they believe has high potential for growth.

5. Secure a Location for Your Business

When looking for a location for your interior design business, it is important to consider your operational needs. You will want an office space that is large enough to accommodate your design studio, as well as storage and workshop space. You will also want to be in a location that is convenient for your clients, with good transportation access and plenty of parking.

6. Register Your Interior Design Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your interior design business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your interior design business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

You will need a business license and a trade name registration. You may also need a zoning permit, depending on the type of business. For more information, contact your local licensing and permits office.

10. Get Business Insurance for Your Interior Design Business

The type of insurance you need to operate an interior design business depends on the type of business.

Some business insurance policies you should consider for your interior design business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Interior Design Business Equipment

To run your interior design business, you will need some basic equipment. This includes a computer with design software, a printer, office supplies, and furniture. You may also want to invest in a scanner and a camera to help with your designs.

Additionally, you will need to purchase some specialized equipment, such as a drafting table, measuring tape, and a level. These items are necessary for creating accurate drawings and blueprints of your designs.

12. Develop Your Interior Design Business Marketing Materials

Marketing materials will be required to attract and retain customers to your interior design business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your interior design business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional interior design business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your interior design business.

13. Purchase and Setup the Software Needed to Run Your Interior Design Business

You will need a few software programs to run an interior design business. The first program you’ll need is a computer-aided design (CAD) program to create three-dimensional designs. The second program you’ll need is an image editing program to help you touch up your designs and make them look realistic. The last program you’ll need is a presentation program. This program will allow you to create presentations for your clients that showcase your work.

14. Open for Business

You are now ready to open your interior design business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

Additional Resources

Interior Design Mavericks

How to Finish Your Ultimate Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your interior design business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start an Interior Design Business FAQs

Is it hard to start an interior design business.

It is not too hard to start an interior design business, but there are a few things you’ll need to do to make it successful. You’ll need to make a business plan and research your target market. You also need to have the design skills and experience necessary to be successful in this industry.

How can I start an interior design business with no experience?

You can start by doing some research on the internet or in books to learn about the basics of interior design. You can also take classes on interior design to get more specific knowledge and skills. Finally, you can start by designing simple projects and working your way up to more complex projects. With hard work and dedication, you can be successful in starting your own interior design business.

What type of interior design business is most profitable?

The type of interior design business that is most profitable is one that specializes in high-end projects. This type of business usually has more expensive materials and labor costs, but the customers are typically willing to pay more for the finished product.

How much does it cost to start an interior design business?

To start an interior design business, it will cost you between $5,000-$50,000. This includes the cost of setting up your business, securing a facility, marketing materials, and other initial costs.

What are the ongoing expenses for an interior design business?

The ongoing expenses for an interior design business are typically the cost of doing business, such as advertising, travel, and supplies. In addition, many interior designers have additional costs such as rent, salaries, and benefits.

How does an interior design business make money?

A successful interior designer can make money by providing services such as space planning, color consulting, and furniture selection. Another way is to sell products such as furniture, fabrics, flooring, and window treatments. Additionally, some businesses may offer services such as remodeling or new construction.

Is owning an interior design business profitable?

Owning an interior design business can be profitable because there is a lot of demand for interior design services from individuals and organizations. Many businesses are willing to pay for interior design services to create a professional and appealing appearance.

Why do interior design businesses fail?

One of the main reasons interior design businesses fail is a lack of planning. This failure can include a lack of planning for finances, marketing, and even day-to-day operations. Businesses can also fail because they don't have enough experience, don't understand the target market, or provide poor customer service.

Other Helpful Business Plan Articles & Templates

Start a Virtual Interior Designer Business

Revolutionize Spaces right from Your Cozy Corner: The Art of Virtual Interior Design

VIRTUAL INTERIOR DESIGNER BUSINESS

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Small Business Trends

How to start an interior design business.

The fusion of art and science in interior design has never been more relevant than it is today. As people grow increasingly aware of the impact that well-designed spaces can have on their lives, demand for professional interior designers has surged. This has opened up many opportunities for those skilled in creating functional yet visually appealing environments. Read on for a guide about how to start an interior design business.

Why Launch an Interior Design Business?

Starting an interior design business can be a dream come true for those who find joy in transforming ordinary spaces into extraordinary experiences. Such a venture not only allows for the expression of creative freedom but also offers a chance to improve the quality of life for clients.

Recognition of the value of professional interior design in modern homes and offices is increasing, making this field a lucrative option for passionate designers.

Foundations of Interior Designing

More than just an eye for beauty is required for success in interior design; a blend of creativity and technical acumen is also essential. Mastery of design principles, a deep understanding of color theory, and technical expertise in space planning all contribute to a designer’s skill set.

A unique combination of these skills enables designers to create aesthetically pleasing and functionally sound spaces.

Necessary Education and Certifications

Formal education serves as a cornerstone for a successful career in interior design. Degrees in interior design or related fields provide foundational knowledge and technical skills. Certifications from recognized institutions can further bolster credibility.

Continued learning through workshops and seminars is also crucial for staying updated with the latest design trends and technologies.

Interior Designer Portfolio

A robust portfolio serves as a visual resume, showcasing a designer’s skills, style, and versatility. It plays a pivotal role in attracting clients and establishing credibility in the market.

High-quality photographs of completed projects, client testimonials, and detailed descriptions of design concepts can make a portfolio stand out. A well-curated portfolio can be the key to building a successful interior design business.

Key Steps in Starting an Interior Design Business

Embarking on the path to start an interior design business involves more than just a keen eye for style.

Several key steps can guide aspiring entrepreneurs through how to start a business and the complexities of the industry, from understanding market trends to legal requirements and effective marketing strategies.

Understand the Interior Design Market

Recognizing trends and understanding different client needs are crucial for success in the interior design industry. The scope of projects can vary widely, encompassing residential homes, corporate offices, commercial spaces, and even specialized areas like healthcare facilities or educational institutions. Each of these sectors has unique design requirements and challenges.

A deep understanding of these varied needs allows for the customization of services and positions the business as a versatile and adaptable player in the market. Market research, client interviews, and staying abreast of industry publications can further refine this understanding.

Consider Business Structure and Legal Requirements

Choosing the right business structure is a decision that can have long-term implications, affecting everything from tax obligations to personal liability and the ability to raise capital.  Common business structures include sole proprietorships, partnerships, and corporations, each with its own set of advantages and disadvantages.

Beyond structure, understanding contracts is vital, as is being aware of potential legal issues specific to interior design, such as intellectual property rights for custom designs or liability issues related to construction and renovation. Consulting with legal professionals specialized in the design industry can provide valuable insights and safeguard the business against potential pitfalls.

Craft a Business Plan for Your Interior Design Venture

A well-structured business plan serves as the blueprint for your interior design business, guiding you through various stages of growth. It helps in securing funding, setting strategic goals, and providing a roadmap to success.

Investors and stakeholders often require a comprehensive business plan before committing any resources to your venture. No business plan is complete without the following elements:

• Executive Summary : This section provides a succinct overview of your business, encapsulating its mission, vision, and core objectives. It’s the first thing investors will read, so it needs to be compelling and informative.
• Market Analysis : Understanding your target market is crucial. Market analysis offers insights into customer demographics, buying habits, and a competitive analysis. It helps in tailoring your services to meet the specific needs of your target audience.
• Marketing and Sales Strategies : Here you outline your approach to attracting new clients and retaining existing ones. Effective marketing and sales strategies can be the difference between a thriving business and a struggling one.
• Services Offered : This section lists the types of interior design services you plan to offer, from consultation to full-scale renovation. Clearly defining your services helps in setting client expectations and pricing your offerings.
• Financial Projections : Financial planning is essential for any business. It provides an estimate of expected income, expenses, and profitability over a specific period. It helps in budgeting and in setting financial milestones.
• Operational Plans : Operational efficiency is key to long-term success. These plans describe the day-to-day running of the business, including staffing, logistics, and supply chain management. It helps in identifying potential bottlenecks and in streamlining operations for better productivity.

Build Your Brand in the Interior Design Industry

A strong brand identity is more than just a memorable logo; it’s a comprehensive representation of your business values, style, and expertise.

A well-thought-out branding strategy can set an interior designer apart in a crowded market. Unique selling propositions, such as specialization in sustainable design or a focus on ergonomic spaces, can further differentiate your business.

Consistent branding across all platforms, including your website, social media, and even your business cards, contributes to a cohesive and professional image. Our website startup guide has even more tips for creating a consistent online presence.

Customer testimonials and before-and-after project photos can also be powerful tools in building your brand and attracting a loyal client base.

Price Your Interior Design Services

Determining how to price your services is a multifaceted task that requires careful consideration.

Understanding market rates is essential, but so is recognizing the value of your unique skills and experience. Offering a variety of pricing options, such as flat fees for specific services or hourly rates for more open-ended projects, can cater to a broader range of clients.

Package deals for multiple services or rooms can attract larger projects and offer better value to your clients. Transparency in pricing, with detailed quotes that break down costs, can build trust and help avoid misunderstandings later.

Periodic reviews of your pricing strategy, especially after gaining more experience or expanding your portfolio, can ensure that your rates remain competitive and reflective of your expertise.

Market Your Own Interior Design Firm

Effective marketing strategies are indispensable for showcasing your designs and attracting a diverse client base. So exactly what is marketing for a successful interior designer?

A well-executed marketing plan can not only increase visibility but also establish your brand as a thought leader in the interior design industry.

Utilizing multiple marketing channels, including the following, can maximize reach and impact.

• Social Media Showcases : Platforms like Instagram and Pinterest are visual mediums perfect for displaying your design work. Regularly updating these platforms with high-quality images can engage your audience and attract potential clients.
• Partnerships with Real Estate Businesses : Collaborating with real estate firms can provide a steady stream of projects, such as home staging for sales or design consultations for new homeowners. These partnerships can be mutually beneficial, adding value to both businesses.
• Home Decor Brand Collaborations : Partnering with home decor brands allows you to showcase your designs in a retail setting. This not only provides exposure but also offers clients a tangible experience of your design aesthetic.
• Local Workshops : Conducting workshops on interior design topics can establish you as an expert in the field. These events can also serve as networking opportunities and a way to directly engage with potential clients.
• Utilize Online Platforms: Some people search online marketplaces for help with small interior design projects. For example, you can check out new Fiverr design categories and see if your services may be a fit to advertise on their network.
• Client Referral Programs : Offering incentives, such as discounts on future services, can encourage satisfied clients to refer your business to others. Word-of-mouth remains one of the most effective forms of marketing, especially in service-oriented industries.

Form Collaborations and Partnerships

Forming collaborations and partnerships can offer a myriad of benefits, including increased exposure, shared resources, and diversified service offerings.

Strategic partnerships can also provide a competitive edge, allowing you to offer comprehensive solutions that single-service providers cannot.

Consider the following partnerships as you build a successful interior design company:

• Architects : Collaborating with architects can result in comprehensive design solutions that cover both structural and aesthetic aspects. Such partnerships can be particularly beneficial for large-scale projects that require detailed planning and execution.
• Real Estate Developers : Partnering with real estate developers allows you to offer design services for new constructions, right from the planning stage. This can result in cohesive and well-executed designs that add value to the property.
• Home and Office Furnishing Businesses : Working together with businesses that offer home and office furnishings can provide your clients with a wider range of product options. These partnerships can also result in package deals that offer both design and furnishing solutions.
• Art Galleries : Collaborating with art galleries can provide you with unique pieces to incorporate into your designs. This adds an exclusive touch to your projects and can be a strong selling point for potential clients.
• Photographers : Partnering with photographers allows you to capture high-quality images of your completed projects. These images can be invaluable for your portfolio and marketing materials, showcasing your work in the best possible light.

Stay Updated with Design Trends

Staying abreast of the latest design trends is not just a matter of aesthetic relevance; it’s a business imperative. In an industry that evolves rapidly, falling behind on trends can result in outdated designs and lost business opportunities.

Continuous learning can take various forms, from attending design expos and workshops to subscribing to leading interior design journals. Online courses and webinars are also valuable resources for learning about new materials, technologies, and design methodologies. Networking with other professionals in the field can provide insider insights into emerging trends and consumer preferences.

Expand into Niche Design Areas

Diversification into niche design areas can be a strategic move for business growth. Specializing in a particular niche sets you apart from generalist competitors and allows you to command higher fees for your specialized expertise.

Sustainable design, for example, is increasingly in demand as more clients seek eco-friendly living spaces. Ergonomic office spaces are another growing niche, especially as remote work becomes more prevalent and people seek to optimize their home offices for productivity and comfort.

Thematic residential interiors, such as minimalist or vintage designs, can attract a specific clientele looking for more than just functional spaces. Offering services in these specialized areas can open up new revenue streams and elevate your brand as a thought leader in the industry.

Essential Interior Design Software

The importance of software tools in interior design cannot be overstated. These digital solutions extend a designer’s creativity, enabling more efficient creation, modification, and presentation of designs.

Beyond efficiency, the following tools also elevate the level of professionalism, allowing designers to collaborate seamlessly with clients, contractors, and other stakeholders:

• AutoCAD : AutoCAD software is a mainstay in the design industry, renowned for its capabilities in creating both 2D and 3D designs. Its precision and comprehensive set of features make it a go-to tool for detailed planning and drafting.
• SketchUp : Known for its intuitive interface, SketchUp excels in 3D modeling. The software offers a plethora of features that empower designers to visualize spaces in diverse styles and layouts.
• Adobe Creative Suite : The Adobe suite of tools, including Photoshop and Illustrator, is invaluable for image editing and graphic design. Designers often use these programs for creating mood boards, editing photos of layouts, and other graphic-intensive tasks.
• Autodesk Revit : Specializing in Building Information Modeling, Revit is ideal for large-scale projects that require detailed architectural planning. It allows for real-time collaboration, making working with architects and contractors easier.
• 3ds Max : Primarily used for 3D modeling and rendering, 3DS Max software is perfect for creating high-quality visualizations. Its advanced rendering capabilities allow designers to create lifelike simulations of interior spaces, adding a layer of sophistication to client presentations.

Initial Costs to Start a New Interior Design Business

Embarking on a new interior design business requires a thorough understanding of the initial financial outlay.

Costs can range from licensing fees and software subscriptions to initial marketing campaigns and small business insurance .

A well-planned budget, including the following elements, can serve as a financial roadmap, helping to navigate the early stages of business development:

• Licensing Fees : Obtaining the necessary licenses and permits is a legal requirement with associated costs. These fees can vary depending on the jurisdiction and the services’ scope.
• Software Subscriptions : Investment in professional design software is essential for creating and presenting designs. The costs can range from one-time purchases to recurring monthly or annual subscriptions.
• Initial Marketing : Marketing your new business through digital channels or traditional methods requires a budget. This investment is crucial for brand visibility and client acquisition.
• Office Space and Utilities : Whether you opt for a home office or a commercial space, there will be costs for utilities, furniture, and possibly rent. These are ongoing expenses that need to be factored into the budget.
• Equipment and Supplies : The cost of equipment and supplies can add up, from high-quality printers to drafting tables and sample materials. These are essential tools of the trade and represent a one-time investment.

Is Starting an Interior Design Business Profitable?

The profitability of an interior design business hinges on various factors, from demand and pricing to operational efficiency.

A strong portfolio and reputation can also significantly impact profitability, leading to repeat customers and long-term contracts. Be sure to include the following aspacts to boost your profitability:

• Demand for Design Services : The level of demand in your area directly affects your earning potential. High demand often allows for more competitive pricing.
• Pricing Strategies : Effective pricing strategies can make or break profitability. Understanding market rates and offering value-added services can enhance revenue streams.
• Operational Efficiencies : Streamlining operations, from client management to project execution, can reduce overheads and increase profitability. Efficient use of time and resources is key to a successful business.
• Solid Portfolio and Reputation : A strong portfolio can attract higher-paying clients, while a good reputation can lead to repeat business. Both are crucial for long-term profitability.

Challenges Faced in Interior Design Businesses

Running an interior design business is not without its challenges.

From managing client expectations and making endless revisions to staying updated with industry trends, the hurdles are numerous.

Understanding the following challenges can prepare you for the realities of business ownership:

• Client Management : Managing client expectations and maintaining open communication can be challenging. Dissatisfied clients can affect your reputation and, consequently, your bottom line.
• Revisions and Changes : Frequent revisions and last-minute changes can disrupt timelines and increase costs. Effective contract management can mitigate some of these challenges.
• Industry Trends : Keeping up with fast-changing design trends requires constant learning and adaptation. Falling behind can result in outdated designs and lost business opportunities.
• Competition : The interior design industry is highly competitive. Differentiating your services and building a unique brand identity are essential for standing out in a crowded market.

FAQs: How to Start an Interior Design Business

Is an interior decorating business the same as an interior design firm.

No, an interior decorating business and an interior design firm are not the same. Interior decorating focuses on aesthetics, such as color schemes, furniture, and accessories. Interior design, on the other hand, encompasses a broader range of services, including spatial planning, architectural elements, and functionality. Designers often work closely with architects and contractors, whereas decorators generally do not.

Are qualifications needed to be an interior design professional?

Yes, qualifications are generally required to become an interior design professional. The typical interior designer job description requires at least a bachelor’s degree in interior design or a related field. Additionally, many states in the U.S. require interior designers to be licensed or certified, which often involves passing an exam. Continued education and professional development are also important for career advancement.

How much do interior designers make?

The earning potential for interior designers can vary widely based on factors such as location, experience, and specialization. According to the U.S. Bureau of Labor Statistics, the median annual wage for interior designers in 2022 was approximately $61,590. However, designers in high-demand areas or those with specialized skills can command significantly higher fees.

Is is possible to start your own interior design business from home?

Yes, it is possible to start an interior design business from home, especially in the initial stages. Your business startup checklist might include setting up a home office, investing in essential software, and marketing your services online. As the business grows, you may choose to expand into a commercial space. Starting from home can be a cost-effective way to launch your interior design career.

Image: Envato Elements

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