business plan for interior decoration

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

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

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

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

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

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

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, transforming spaces: the integration of ai interior design, 7 of the best free interior designer courses online, 5 key seo tips for interior designers: rank your interior design website, 14 tips for your interior design blog: get more clients from your blog.

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Interior Design Business Plans: The Ultimate Guide

As an interior designer, you already understand the importance of creating plans. Design plans, project plans, floor plans—they’re the foundation upon which your creative vision takes shape. But did you know that creating a business plan is also a pivotal step in building a successful design firm? 

An interior design business plan documents your vision, goals, strategy, and blueprint for growing your business. Think of your interior design business plan as a roadmap, guiding you forward, step by step. 

In this post, I’ll dive into exactly why interior design business plans are critical for the growth of your firm, and how you can create one that sets you up for success. 

Table of Contents

Why do you need a business plan as a designer?

You might be asking yourself this question, wondering if it’s really worth the effort. The answer is a resounding yes. It’s not enough to be an excellent designer. You also need to know how to run a business. And trying to run a business without a plan is sort of like driving to an unfamiliar destination without a map or GPS. You might have a general sense of where you’re headed, but without precise directions and landmarks to guide you, the journey becomes fraught with uncertainty and unnecessary detours. 

By creating a business plan, you can hopefully avoid those detours and move forward with conviction and purpose.

A well-crafted business plan, which documents the goals of your business and strategies and timelines for attaining those goals, will provide you with the scaffolding necessary to build the design firm of your dreams. It will also help keep you accountable. By regularly referencing back to your business plan, you can quickly get a snapshot of your progress and what still needs to be done.

A business plan is also a great way to stay aligned with present and/or future team members, ensuring everyone is on the same page and headed in the same direction. And if you decide to seek investors at any point, having a business plan on-hand will be incredibly useful.

How to write an interior design business plan? (11 steps)

Crafting an interior design business plan requires thorough research, strategic thinking, and a clear understanding of your objectives. Here are the essential steps to help you create a comprehensive and actionable plan for your design firm:

1. Define your vision and goals

Start by digging deep and articulating your long-term vision for your interior design business. Establish specific, measurable goals that align with your vision, including financial objectives, timelines, and growth milestones. This process involves envisioning where you see your business in the next 5-10 years and setting tangible targets that reflect both your aspirations and the realities of the market.

Check out our workshop on getting paid what you’re worth with Gail Doby to help you unleash your business vision and goals.

2. Identify your target market

If you haven’t already done so, now is the time to conduct a detailed analysis of your target market—their needs, preferences, and demographics—and get it down on paper. This information will help you tailor your services and messaging to consistently meet the needs of your ideal client, and serve as a North Star, which you can keep referring back to in the future. Understanding your target market is crucial for effective marketing, service development, and client acquisition strategies.

Grab our detailed guide on getting crystal clear on your ideal target client .

3. Outline your services

When defining the range of services your interior design business will offer, you must consider the preferences and requirements of your target market, your own bandwidth, and your financial goals. Once you’ve landed on the services you plan to offer, provide detailed descriptions and breakdowns of each. You also want to ensure that you’ve created a pricing strategy for each service that reflects both the value you provide and the market demand.

Get our ultimate pricing guide to help set accurate prices for your services .

4. Plan your finances

Develop a comprehensive financial plan for your interior design business, including revenue projections, expenses, and profit targets. Determine your startup costs, ongoing expenses, and revenue streams. Set clear financial goals and establish strategies to achieve them, such as pricing strategies, budget allocation, and revenue diversification. You’ll also want to think about your tax strategy and explore potential sources of funding or investment to fuel your growth.

Watch our workshop with Megan Dahle on managing and understanding your finances like a pro .

5. Develop a marketing strategy

While you may want to consider creating a separate marketing plan, you should also factor marketing into your interior design business plan. Outline your strategy for attracting clients, identify the channels you’ll need to reach your target audience, and develop a plan for creating messaging and branding that will communicate your value proposition effectively. This involves leveraging various marketing channels, such as social media, your website, networking events, and partnerships and collaborations, to build brand awareness and generate qualified leads.

Check out our guide with 9 proven ways to get clients (+tutorials!) .

6. Build your team

Assess the team you will need to support your interior design business, considering factors such as expertise, skills, and workload. Determine the roles and responsibilities required to operate your business efficiently, including designers, project managers, assistants, and external contractors. Consider the hours per week required from each team member to meet your business objectives, and consider whether you need to invest in ongoing training and development to optimize your outcomes.

7. Define operational processes

Establish operational processes and workflows to streamline your interior design business operations. Define protocols for client communication, project management, and quality assurance to ensure consistency and efficiency. Determine the hours per week needed to manage various aspects of your business effectively, and leverage technology and automation tools, like the ones you can access with DesignFiles, to optimize your workflow and enhance productivity.

Watch our workshop on advanced project management strategy with Kimberley Seldon .

8. Assess and mitigate risk

Identify potential risks and challenges that may affect your interior design business and develop strategies to mitigate them. Consider factors such as economic fluctuations, market competition, and project delays. Implement contingency plans and risk management strategies to minimize disruptions and ensure the continuity of your business. 

9. Set milestones and timelines

Break down your goals into actionable milestones with specific timelines for achieving them. Establish measurable criteria for success and track your progress regularly. Determine the hours per week required to meet your milestones and allocate resources accordingly to stay on track. Regularly review your timelines, and adjust if needed to reflect changes in market conditions, client feedback, and internal priorities.

Watch our live hotseat coaching sessions with Nancy Ganzekaufer to get inspired on your next goal .

10. Monitor and adapt

Continuously monitor your interior design business’s performance and adapt your strategies as needed to capitalize on opportunities and address challenges. Stay flexible and responsive to changes in the market, client preferences, and industry trends. Regularly review and update your business plan to reflect evolving circumstances and ensure alignment with your goals. 

11. Seek feedback and collaboration

Seek feedback from mentors, peers, coaches, and other industry experts to refine your interior design business plan. Don’t shy away from leveraging external insights to enhance your business strategy and drive growth.

Looking for a pro community? Join the DesignFiles Facebook group with over 10,000 interior designers.

3 sample interior design business plans

Check out these examples to inspire your own business plan.

1. Interior design business plan example by Wix

This sample business plan does a great job of outlining all the key areas of the business in a clear and succinct way. By keeping it concise, this business plan is easy to follow and digest. 

We recommend diving a little deeper into topics such as target market. If you can get more specific in creating your personas—for example, getting clear on the age range and kinds of budgets of your ideal client—that will help you be more targeted in all your strategies. We also recommend going into more detail with your competitive analysis as really digging into what your competitors are doing will help you strengthen your own plan.

Finally, going into more detail about your marketing and financial plans will help give you a clearer direction for moving forward. While you can certainly create separate more detailed documents for each, where you get into the nitty gritty, it’s still helpful to include as much detail as possible in your overall business plan so everything is in one place.

2. Interior design business plan example by OGS Capital

This more substantive business plan example  goes into much greater detail, including graphics and cost breakdowns. While you don’t necessarily need to go into this level of granular detail in your business plan, it’s always helpful to look at different examples and approaches so you can tailor yours. Ultimately your business plan needs to be unique to your own business, needs, and goals. 

3. Business News Daily business plan template

Ready to create your own? This business plan template from Business News Daily is a great resource to help you get started in creating your own interior design business plan. 

As you get started on crafting your interior design business plan, remember it’s more than just a document. By investing the necessary time and reflection now to create a solid plan, you’re laying the foundation from which the rest of your business will grow and evolve. 

In addition to outlining the tangible elements of your business strategy, your business plan also embodies your vision and values, serving as your compass as you move forward.

Ready to grow your design business? Create a strong foundation with the most intuitive software and save dozens of hours each month. Learn more about DesignFiles.

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How To Write a Winning Interior Design Business Plan + Template

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

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

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

Download the Ultimate Business Plan Template

What is an Interior Design Business Plan?

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

Why Write an Interior Design Business Plan?

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

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

Writing an Effective Interior Design Business Plan

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

Executive Summary

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

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

Company Description

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

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

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

Industry Analysis

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

Questions to answer include:

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

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

Customer Analysis

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

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

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

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

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

Competitive Analysis

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

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

Marketing Plan

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

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

Operations Plan

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

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

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

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

Management Team

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

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

Financial Plan

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

This includes the following three financial statements:

Income Statement

Your income statement should include:

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

Sample Income Statement for a Startup Interior Design Business

Balance sheet.

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

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

Sample Balance Sheet for a Startup Interior Design Business

Cash flow statement.

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

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

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

Sample Cash Flow Statement for a Startup Interior Design Business

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

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

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

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

Finish Your Business Plan in 1 Day!

Wish there was a faster, easier way to finish your business plan?

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

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BUSINESS STRATEGIES

How to create an interior design business plan

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

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

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

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

Executive summary

Business and domain names

Market research and analysis

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

A brief description of your interior design business

Your mission statement and vision for the business

A summary of your target market and competition

An overview of your marketing and growth strategies

Your financial projections and funding requirements

02. Business and domain names

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

When choosing a domain name, consider these best practices:

Keep it short, memorable and easy to spell

Include relevant keywords related to rental properties

Avoid numbers, hyphens or special characters

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

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

03. Market research and analysis

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

Your market analysis should cover:

An overview of the interior design market in your target area

Demographic information about your target audience

Competitor analysis, including their strengths and weaknesses

Pricing strategies and rental rates in the market

Opportunities for differentiation and unique selling propositions

04. Operations plan

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

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

05. Marketing and advertising plan

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

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

Learn more: How to make a website

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

06. Financial plan

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

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

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

Interior design business plan examples

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

Business plan template 1: Urban Rentals

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

Company and domain names

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

Market analysis and research

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

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

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

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

Business plan template 2: Coastal Properties

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

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

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

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

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

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

Benefits of writing an interior design business plan

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

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

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

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

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

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

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Interior Design Business Plan Template

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

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

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

Next Section: Executive Summary >

Interior Design Business Plan FAQs

What is the easiest way to complete my interior design business plan, what is an interior design business plan, why do you need a business plan for an interior design business, what are the sources of funding for an interior design business.

INTERIOR DESIGN BUSINESS PLAN OUTLINE

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

Start Your Interior Design Plan Here

Other Helpful Business Plan Articles & Templates

Business Plan Template for Interior Designers

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

Starting an interior design business can be an exciting but challenging venture. To set yourself up for success, you need a well-crafted business plan that captures your vision and outlines your strategies. Look no further than ClickUp's Business Plan Template for Interior Designers!

This template will help you:

• Define your goals and establish a clear roadmap for your business
• Create a comprehensive marketing strategy to attract your ideal clients
• Develop accurate financial projections to ensure profitability
• Streamline your operational processes for efficient project management

With ClickUp's Business Plan Template for Interior Designers, you'll have all the tools you need to turn your passion for design into a thriving business. Get started today and make your dreams a reality!

Business Plan Template for Interior Designers Benefits

When using the Business Plan Template for Interior Designers, you can expect the following benefits:

• Clear direction: The template helps you outline your goals and strategies, providing a roadmap for your interior design business.
• Effective marketing: You can define your target audience, create marketing strategies, and differentiate yourself from competitors.
• Financial projections: The template helps you estimate costs, set pricing, and forecast revenue, ensuring profitability and financial stability.
• Streamlined operations: Outline your processes, workflow, and project management strategies to ensure efficient operations.
• Client attraction: With a well-crafted business plan, you can showcase your expertise, professionalism, and unique value proposition to attract clients.

Main Elements of Interior Designers Business Plan Template

As an interior designer, staying organized and focused is key to running a successful business. ClickUp’s Business Plan Template for Interior Designers provides the essential tools to streamline your operations and achieve your goals.

Here are the main elements of this template:

• Custom Statuses: Keep track of the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Utilize fields like Reference, Approved, and Section to add specific information to each task and easily categorize and filter your business plan.
• Custom Views: Access five different views tailored to your needs, including Topics, Status, Timeline, Business Plan, and Getting Started Guide. These views allow you to organize your plan, track progress, and visualize your timeline in a way that suits your workflow.

With ClickUp's Business Plan Template for Interior Designers, you can confidently manage your business, attract clients, and achieve your goals.

How To Use Business Plan Template for Interior Designers

If you're an interior designer looking to create a solid business plan, ClickUp has a template designed specifically for you. Follow these steps to effectively use the Business Plan Template for Interior Designers:

1. Define your vision and mission

Start by clearly defining your vision and mission for your interior design business. What sets you apart from others? What do you hope to achieve? This will serve as the foundation for your business plan.

Use a Doc in ClickUp to articulate your vision and mission statement for your interior design business.

2. Identify your target market

Next, identify your target market. Who are your ideal clients? What demographics do they fall into? Understanding your target market will help you tailor your marketing efforts and services to attract and serve them effectively.

Use custom fields in ClickUp to track information about your target market, such as demographics, preferences, and needs.

3. Analyze the competition

Conduct a thorough analysis of your competition. Who are your main competitors in the interior design industry? What are their strengths and weaknesses? This analysis will help you identify opportunities for differentiation and determine how you can position your business in the market.

Create tasks in ClickUp to research and analyze your competition, noting their strengths and weaknesses.

4. Develop your services and pricing

Outline the specific services you will offer as an interior designer. Will you focus on residential or commercial projects? What design styles will you specialize in? Additionally, determine your pricing structure based on your target market and competition.

Use custom fields in ClickUp to define your services and pricing for easy reference and tracking.

5. Create a marketing and sales strategy

Finally, develop a comprehensive marketing and sales strategy to promote your interior design business. How will you reach your target market? What channels and tactics will you use to generate leads and convert them into clients?

Use the Gantt chart in ClickUp to create a timeline for your marketing and sales activities, outlining when each tactic will be implemented.

By following these steps and using ClickUp's Business Plan Template for Interior Designers, you'll have a clear roadmap for success and be well on your way to building and growing your interior design business.

Get Started with ClickUp’s Business Plan Template for Interior Designers

Interior design firms or individual interior designers can use the Business Plan Template in ClickUp to create a comprehensive plan for their business and streamline their operations.

To get started, click on "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant team members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a successful interior design business:

• Use the Topics View to outline the main sections of your business plan, such as goals, target market, marketing strategies, and financial projections.
• The Status View allows you to track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do.
• The Timeline View helps you visualize the timeline for completing each section and ensures that you stay on track.
• The Business Plan View provides a comprehensive overview of your entire business plan, allowing you to easily navigate and make updates.
• The Getting Started Guide View provides a step-by-step guide to help you fill out each section of the business plan.
• Utilize the custom fields Reference, Approved, and Section to add additional information and categorize different sections of your plan.
• Update statuses as you complete each section to keep track of progress and ensure that all areas of your business plan are addressed.
• Regularly review and analyze your business plan to ensure that it aligns with your goals and objectives, and make any necessary revisions to keep it up to date.
• Business Plan Template for Computer Engineers
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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.

Company Locations and Facilities

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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How To Start an Interior Design Business in 9 Simple Steps

If you’re looking to start your own interior design business and make a mark in the industry, this step-by-step guide might be just what you need.

Interior design businesses involve working with clients to design, upgrade, or renovate indoor spaces, ensuring they are functionally sound and aesthetically engaging. Interior designers are essentially responsible for spatial planning, furniture design and selection, optimal lighting, storage solutions, and the integration of appropriate decor elements to maximise the potential of a space. 

Working for a design firm or with one of the established interior designers can be a first step, offering exposure and first-hand industry knowledge. However, if you have the passion and skill for interior design and want to showcase your capabilities, launching your own business can also be a rewarding option. By working with homeowners, real estate agencies, retail shops, rental apartments, hospitals, and schools and collaborating with civil engineers and architects, you can diversify your projects, earn a steady income, and establish your mark in the industry.

This comprehensive guide will walk you through the essential steps to starting your interior design business. Whether you aim to work directly with clients or collaborate with other stakeholders, we’ve got you covered.

Here’s a clickable link to all the steps we’ll cover in this article!

• Create an Impressive Portfolio
• Define the Services That You Want To Offer
• Choose a Unique Business Name & Logo
• Apply for a Licence or Business Permit
• Create a Business Plan
• Decide Your Design Fee Structure
• Define Payment Methods
• Create a Digital Visibility  
• Evaluate if You Need a Physical Office

Summing It Up

How to start a successful interior design business.

Before we move on to the steps, it is important to understand that there is no defined roadmap to being an entrepreneur or determining one's success beforehand. What’s important is to recognise your potential and start learning the ropes of an interior design business. 

Growing a successful business involves navigating challenges, from developing a brand identity to converting leads into clients, outsourcing, and hiring the right staff. It is often a fair share of trial and error. Here are some essential steps to help you out. So, let’s get started. 

1. Create an Impressive Portfolio

An impressive interior design portfolio is your unique selling point— an opportunity to showcase your best works in front of potential clients. It's wise to include various stages of your interior design process to give a deeper insight into your style. Here are a few things that you can consider adding to your portfolio:

Rendered Drawings & Images

Include both 2D and 3D rendered drawings for better visuals, highlighting room layouts, walls, furniture, doors, and window placements. Emphasise how built-in elements like wardrobe, bathroom and kitchen cabinets, and other storage solutions are strategically and aesthetically planned through intuitive graphics. Use high-quality renders and client testimonials showing various design stages, from initial sketches to final 3D models of completed projects and add relevant credibility to your work experience.

Moodboards 

Demonstrate your versatility by presenting a range of design, colour and material palettes. Tailor these to different tastes and preferences to target a wider market. For past projects, include palettes inspired by specific client requests to show your ability to meet customised needs. Add brief descriptions to explain your choices and how they contribute to creating comfortable yet polished interior spaces.

Personalised Styling Recommendations

Highlight your expertise in making informed purchasing decisions for varying clients. Showcase your recommendations for furniture, appliances, and decor items, ensuring they align with both quality standards and budget constraints. Demonstrate how your selections reflect a personalised style and enhance the overall design.

Initial Design Projects 

For any small projects done for yourself, friends, or family, capture high-quality photos from multiple angles with good lighting. Before-and-after photos are particularly effective in showcasing the transition. Explain the colour palette, room layout, and material selection alongside the images. For reference, you can take a look at AND learner Pawanjot Singh’s Interior Design Portfolio . 

2. Define the Services That You Want To Offer

Choose your interior design services based on your strengths. Identify what is your forte and select the type of properties that highlight your expertise. If you’re good at designing residential interiors, offer services specifically for individual homes, villas, or apartments. Similarly, if you have a thing for designing commercial interiors, offer services for offices and retail spaces. 

Once you’ve done that, select the services where you can outperform your competitors. While you can provide generalised services, your specialised services will help you stand out in the crowd. Here are some of the services that you can offer as an interior designer :

Space Planning & Home Decor

Here, you are responsible for planning the indoor spaces, defining the interior style, finalising a colour palette, choosing appropriate materials that fit the style, deciding on the furniture and decor pieces, and creating sufficient storage units for your clients.

Furniture Selection

If you’re well-connected with a handful of skilled furniture designers, artisans, local dealers or auction houses, you must use this opportunity and offer this niche service. Additionally, you can refer your clients to reputed furniture stores that deal in distinct pieces of furniture.   

Colour Consultation

With this service, you can help clients identify the colour palette that suits their interior style as per their preferences and the lighting conditions of the space.  

Project Management 

In this case, the onus is on you to ensure complete management of the interior design project, from conceptual design to final execution, maintaining on-time delivery and budget constraints.

Online Design 

With online design, you can offer virtual design services by analysing the client’s space and developing a design, giving them a clear visual representation of your proposed concepts. Your clients can use these drawings, renders, and estimations and materialise the design with the help of a contractor at their respective locations. 

3. Choose a Unique Business Name & Logo

Choose a business name that hints at your expertise and reflects your personality. Many designers use their names to build their brands, while others opt for a more creative name, which gives a sneak peek into their unique business idea. Having a business name is also important for separating your professional and personal finances. Once you’ve chosen your business name, decide on your logo and register your business to secure your brand identity. 

Pro Tip: Design and print your business cards. A business card signals to your potential clients that you run an established, legitimate business with a professional email and contact number. Keep a few cards with you at all times—they’re invaluable for networking opportunities that arise unexpectedly.

4. Apply for a Licence or Business Permit

Once you have chosen your business name, the next step is to apply for a business license. Whether you operate from home or an office, a valid business license is essential. The cost of obtaining this license is minimal compared to the substantial fines you could face if the IRS investigates your business.

Depending on the scale of your business and future plans, decide on a legal structure for your business. You can register your interior design business as:

• Private Limited Company
• One Person Company
• LLP (Limited Liability Partnership)
• Sole Proprietorship
• Partnership

Pro Tip: Private limited company registration is the most common and trusted business structure.

Once you’ve decided among these options, apply for a business license. A business license registers you as an independent business owner, allowing you to conduct financial transactions under your brand name, separate from your personal finances. Having a business license not only legitimises your operations but also assures clients of your credibility, ensuring they can trust you with their investments. It also enables you to participate in trade shows and exhibitions, providing opportunities to attract new clients and expand your network.

5. Create a Business Plan

Developing a comprehensive business plan is vital before launching a new interior design business. A well-crafted business plan serves as a roadmap for your venture, helps secure funding if needed, sets priorities, and guides your decision-making processes. Here are some key components to include in your interior design business plan:

Executive Summary: This provides an overview of your business, including your mission, target market, services offered, and competitive advantages.

Market Analysis: Conduct thorough research on your target market, industry trends, competitors, and potential opportunities or threats. This analysis will help you position your business strategically.

Services and Pricing: Clearly define the interior design services you plan to offer and your pricing strategy. Consider packages as well as any additional products or services you may provide.

Marketing and Sales Strategy: Outline your marketing and sales strategies, including your brand positioning, advertising methods, and promotional activities. Identify ways to attract and retain clients effectively.

Operations Plan: Describe your business operations, including your physical location (if applicable), staffing needs, equipment requirements, and any necessary partnerships or collaborations.

Financial Projections: Develop realistic financial projections, including startup costs, ongoing expenses, projected revenue, and cash flow forecasts. This will help you determine your funding requirements and potential profitability.

Management and Organisation: Provide details about your management team, their roles and responsibilities, and the overall organisational structure of your business.

6. Decide Your Design Fee Structure

Here’s a step-by-step walkthrough of how you can do this:

- To establish your design service pricing, start with a flat fee for the initial interaction. This ensures you get paid for consultations, regardless of whether the client proceeds with the project. It protects you from clients who might take your ideas and implement the design with the help of contractors. 

- Next, determine your variable charges. These depend on the scope of work, the team you hire, the materials and furniture procurement, and the labour charges involved.

- Additionally, set a design fee to cover any changes requested by the client after the design process begins. This protects your business from unforeseen losses.

- Create a detailed estimation sheet for all components of your design fees and share it with potential clients. This acts as a filter, saving you time by discouraging clients who are not serious about committing. Also, this allows you to focus on ideal clients who value your work and can provide valuable references for future projects.

7. Define Payment Methods

Some business owners use their personal bank accounts for business payments, but this practice can expose you to significant financial and legal liabilities. It may come across as a red flag for clients, causing chaos and confusion and can severely impact your business. It's best to maintain a separate professional bank account and credit card for business transactions to avoid these issues. This not only simplifies the process but also enhances your credibility as an entrepreneur. 

Additionally, offering a variety of electronic payment options, such as Apple Pay, Google Pay, and PayPal, can help attract more clients. Be sure to establish clear payment terms in your contracts to ensure you receive and make timely payments. Implementing these practices will protect your business and streamline your financial operations.

8. Create a Digital Visibility 

Having online visibility for your company is non-negotiable today. Every company needs a brand image — one that makes a first impression on your potential clients. While having a portfolio is great, displaying your work online can take you places and land you opportunities you’ve never even imagined. Read on for two ways you can explore to build an online presence:

Building a Website

Create a website with your business name as the domain. Simply describe your business, the services you offer, your email address, and contact details. Put up your best works with brief descriptions and highlight your expertise as an interior designer. 

Social Media Accounts

Alternatively, you can also begin by creating an Instagram and Facebook account and start posting your works through carousels, reels, and high-quality images. You can give insights into your process, a peek into what goes on behind the scenes, before/after transitions, and anything else that keeps the audience coming back for more. This will help you identify your target audience and promote your business much faster as compared to a website and convert leads to potential clients. You can also consider making a LinkedIn company page, describe your business and start posting content that’s relevant to the platform. 

Pro Tip: When you have a combination of various social media channels, it’s easier to target various age groups and take your business to a global audience. This strategy not only improves your professional image but also ensures you never miss an opportunity to impress potential clients.

9. Evaluate if You Need a Physical Office

Consider whether you need a commercial office space or if starting small from a home office suits you better. If you're launching your business independently and without prior experience, working from a home office is a viable option. 

However, if you prefer a commercial office, remember to budget for rent and utilities accordingly. Ultimately, if your business plan is solid and you deliver exceptional interior design services, the location of your office becomes secondary. Focus on quality and professionalism to attract and retain clients, regardless of where you set up your office. 

To sum up, we’ve covered all the essential steps of setting up an interior design business and laid out details of how to go about every step. Following these steps will help you establish yourself in the industry, but remember, your business will only thrive with your best effort. So, as an entrepreneur, focus on creating great work, making profits, and always prioritising your clients. 

If you’re considering learning more about interior design and launching an exciting new career in the space, check out the Interior Design Courses offered by AND, which come with a comprehensive curriculum, hands-on learning opportunities, unparalleled mentorship, and dedicated placement support.

We hope that this guide has helped you understand the workings of contemporary interior design and empowered you to incorporate our insights into your homes or future projects. 

In case you are interested in pursuing an education in interior design and need assistance, here are some further resources you can consider:

• Watch this session by Snehanshu Mukherjee, Founding Partner at T.E.A.M, and Mansi Almadi, an Interior Designer at Studio Lotus
• Talk to a course advisor to discuss how you can transform your career with one of our courses.
• Check out our Interior Design courses - all courses are taught through live, interactive classes by industry experts.
• Take advantage of the scholarship and funding options that come with our courses to overcome any financial hurdle on the path of your career transformation.

Note: All information and data from external sources are believed to be accurate as of the date of publication.

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Here is a free business plan sample for an interior design services

If you have a passion for transforming spaces and a flair for design, embarking on a career as an interior designer might be your calling.

In the following paragraphs, we will present to you a comprehensive business plan tailored for aspiring interior designers.

As you may already understand, a meticulously developed business plan is a cornerstone of success for any creative professional. It serves as a roadmap, guiding you through establishing your brand, identifying your target market, and outlining your business strategies.

To jumpstart your journey, you can utilize our interior designer business plan template. Our team is also on standby to provide a free review and offer suggestions for improvement.

How to draft a great business plan for your interior design services?

A good business plan for an interior designer must reflect the unique aspects of the design industry.

To start, it is crucial to provide a comprehensive overview of the interior design market. This includes current statistics and identifying emerging trends within the industry, as illustrated in our interior design business plan template .

Then, you should articulate your business concept effectively. This encompasses your design philosophy, pinpointing your target clientele (such as homeowners, real estate developers, commercial clients), and the distinctive services you offer (residential design, commercial projects, sustainable design, etc.).

The next section should delve into market analysis. This requires a thorough understanding of your competitors, industry trends, and client preferences.

For an interior designer, particular emphasis should be placed on the services portfolio. Detail the range of design services you plan to provide - space planning, color consultation, furniture selection, etc. - and explain how they cater to the needs and tastes of your intended market.

The operational plan is also vital. It should outline your business location, the structure of your design studio, supplier relationships for materials and furnishings, and your project management approach.

For an interior designer, it is important to highlight your design process, project timelines, and the quality of materials and workmanship.

Then, address your marketing and sales strategy. How will you build your brand and maintain client relationships? Consider promotional tactics, client engagement, and potential value-added services (such as virtual design consultations).

Utilizing digital strategies, like a professional website or an active social media presence, is equally important in the modern marketplace.

The financial plan is another critical component. This should include your startup costs, revenue projections, operating expenses, and the point at which you will break even.

In the interior design business, project-based billing can vary widely, so it is crucial to have a thorough understanding of your pricing structure and cash flow management. For assistance, you can refer to our financial forecast for interior designers .

Compared to other business plans, an interior design business plan must pay special attention to portfolio development, client relationship management, and the creative process, which are central to the industry.

A well-crafted business plan will not only help you clarify your vision and strategy but also attract clients or secure financing.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear understanding of how you will manage projects and client expectations.

By presenting a detailed and substantiated plan, you showcase your professionalism and dedication to the success of your interior design business.

To achieve these goals while saving time, feel free to complete our interior design business plan template .

A free example of business plan for an interior design services

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an interior designer .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The interior design industry is a dynamic and evolving sector with significant growth potential.

Recent studies have shown that the global interior design market is expected to reach a value of over 150 billion dollars by the next few years. This growth is driven by an increasing interest in home renovation and design, fueled by real estate market trends and the desire for personalized living spaces.

In the United States, there are over 100,000 interior design businesses, generating an estimated annual revenue of over 10 billion dollars. This underscores the vital role interior design plays in the American economy and the housing industry.

The interior design industry is witnessing several key trends that are shaping the future of living spaces.

Sustainability and eco-friendly designs are at the forefront, with clients seeking materials and products that have a lower environmental impact. There is a growing demand for energy-efficient designs, green living walls, and the use of recycled materials.

Technological advancements are also influencing the industry, with virtual reality (VR) and augmented reality (AR) tools allowing clients to visualize designs before implementation. Smart home technology integration is becoming increasingly popular, as clients look for convenience and automation in their living spaces.

Minimalism continues to be a popular aesthetic, with clean lines and uncluttered spaces. However, there is also a rise in bold and expressive designs, with personalized touches that reflect the individuality of the client.

Online design services and platforms are expanding, offering more accessible and flexible design solutions to a broader audience.

Lastly, the focus on wellness has led to designs that promote health and well-being, incorporating elements like natural light, air purification, and biophilic design principles.

Success Factors

Several factors contribute to the success of an interior design business.

First and foremost, the ability to understand and translate client visions into tangible designs is crucial. A designer who can create functional, aesthetically pleasing, and personalized spaces is more likely to build a strong reputation.

Innovation and staying abreast of design trends and new materials can help an interior designer stand out in a crowded market.

Networking and building relationships with suppliers, contractors, and clients are essential for business growth and the successful execution of design projects.

Excellent communication and project management skills are also vital, ensuring that projects are completed on time, within budget, and to the client's satisfaction.

Finally, a strong online presence, through a well-designed website and active social media engagement, can help an interior designer showcase their work and attract new clients.

The Project

Project presentation.

Our interior design project is dedicated to creating personalized, functional, and aesthetically pleasing living and working spaces for clients who value a harmonious and tailored environment. Situated in a vibrant urban area, our services will cater to a diverse clientele, ranging from homeowners seeking to revamp their living spaces to businesses looking to enhance their commercial interiors.

We will focus on delivering innovative design solutions that reflect the unique style and needs of each client, ensuring that every space we design is both beautiful and practical.

Our interior design firm aspires to be recognized for its creative excellence, attention to detail, and commitment to transforming spaces into inspiring and inviting places.

Value Proposition

The value proposition of our interior design project lies in our ability to create bespoke environments that resonate with our clients' personal tastes and functional requirements.

Our dedication to understanding each client's vision and translating it into reality sets us apart, offering a seamless and enjoyable design experience. We are committed to sourcing high-quality materials, furnishings, and accessories that not only look stunning but also stand the test of time.

We aim to empower our clients by involving them in the design process, ensuring their space is a true reflection of their identity, and educating them on design principles and the latest trends.

Our firm is poised to become a cornerstone in the community, providing innovative design solutions that enhance the way people experience their surroundings.

Project Owner

The project owner is an experienced interior designer with a keen eye for detail and a passion for creating spaces that tell a story.

With a background in design and architecture, along with a strong portfolio of successful projects, the owner brings a wealth of knowledge and creativity to the table. They are dedicated to staying ahead of industry trends and continuously honing their craft to deliver exceptional design outcomes.

With a belief in the power of design to transform lives, the owner is committed to making interior design accessible and enjoyable, ensuring that each project reflects the client's personality and lifestyle.

Their commitment to design excellence and client satisfaction is the driving force behind the project, aiming to create spaces that not only look beautiful but also enhance the quality of life for those who inhabit them.

The Market Study

Target market.

The target market for this interior design business is segmented into various groups.

Firstly, there are homeowners looking to renovate or update their living spaces to reflect their personal style and enhance functionality.

Secondly, the market includes real estate developers and investors seeking professional design services to increase the marketability and value of their properties.

Additionally, commercial clients such as businesses, hotels, and restaurants require interior design services to create aesthetically pleasing and brand-aligned environments for their customers.

Lastly, collaborations with architects and contractors can be a significant market segment, as these professionals often require the expertise of interior designers to complete their projects.

SWOT Analysis

A SWOT analysis of this interior design business project highlights several key points.

Strengths include a strong portfolio showcasing diverse design styles, personalized customer service, and a network of reliable suppliers and contractors.

Weaknesses may involve the cyclical nature of the real estate market and the challenge of staying abreast of design trends and client preferences.

Opportunities can be found in leveraging social media and digital marketing to reach a broader audience, as well as in the growing trend of sustainable and eco-friendly design.

Threats might include economic downturns affecting clients' willingness to invest in design services and the competitive nature of the interior design industry.

Competitor Analysis

Competitor analysis in the interior design industry indicates a competitive landscape.

Direct competitors include other local interior designers and design firms, as well as online design services that offer virtual consultations and digital solutions.

These competitors vie for clients who value professional expertise, creativity, and the ability to transform spaces.

Potential competitive advantages include a unique design approach, exceptional project management skills, strong client relationships, and a focus on sustainable practices.

Understanding the strengths and weaknesses of competitors is crucial for carving out a unique niche and ensuring client loyalty.

Competitive Advantages

Our competitive edge lies in our personalized approach to each project, ensuring that every design reflects the client's individual needs and lifestyle.

We maintain a curated network of craftsmen and suppliers, allowing us to source unique materials and finishes that set our designs apart.

Our commitment to sustainability and eco-friendly design not only appeals to environmentally conscious clients but also represents a growing trend in the industry.

Moreover, our expertise in space planning and functionality ensures that our designs are not only beautiful but also practical and livable.

You can also read our articles about: - how to offer interior design services: a complete guide - the customer segments of an interior design services - the competition study for an interior design services

The Strategy

Development plan.

Our three-year development plan for the interior design business is designed to establish a strong market presence.

In the first year, we will concentrate on building a robust portfolio and establishing strong relationships with key clients and suppliers. We aim to become a recognized name in the local market for high-quality interior design services.

The second year will focus on expanding our services to include virtual interior design consultations and leveraging technology to enhance our design process and customer experience.

In the third year, we plan to explore collaborations with architects and property developers, positioning ourselves as the go-to experts for interior design in new developments and renovations.

Throughout this period, we will prioritize customer satisfaction, creativity, and staying ahead of design trends to ensure we provide exceptional value to our clients.

Business Model Canvas

The Business Model Canvas for our interior design business targets individuals and businesses looking to create functional and aesthetically pleasing spaces.

Our value proposition is centered around personalized design solutions that reflect our clients' tastes and needs, combined with exceptional project management to ensure a seamless process from concept to completion.

We offer our services through direct consultations, online platforms, and partnerships with home improvement stores, utilizing our key resources such as our design expertise and network of reliable contractors and suppliers.

Key activities include client consultations, design conceptualization, project management, and networking with industry professionals.

Our revenue streams are generated from design fees, project management services, and potentially from exclusive product lines in the future. Our costs are mainly associated with marketing, staffing, and operational expenses.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on showcasing our design expertise and successful projects.

We aim to attract clients by highlighting our unique design approach and the transformative impact of our work on their spaces. Our strategy includes a strong online portfolio, engaging social media content, and before-and-after showcases of our projects.

We will also network with industry professionals and participate in local home shows and design expos to increase visibility.

Additionally, we plan to collaborate with influencers and lifestyle bloggers to reach a wider audience and establish our brand as a leader in the interior design industry.

Risk Policy

The risk policy for our interior design business focuses on mitigating risks associated with project timelines, budget management, and client satisfaction.

We will implement strict project management protocols to ensure deadlines are met and budgets are adhered to. We will also maintain open and transparent communication with our clients to manage expectations and ensure satisfaction.

Regular training and professional development will be provided to our team to keep them updated on the latest design trends and technologies.

We will also secure professional indemnity insurance to protect against any unforeseen professional liabilities. Our priority is to deliver exceptional design services while managing the risks inherent in the creative and project-based nature of our work.

Why Our Project is Viable

We are committed to establishing an interior design business that responds to the growing demand for personalized and professional design services.

With our focus on client satisfaction, innovative design solutions, and strategic market positioning, we are confident in our ability to thrive in the competitive interior design industry.

We are passionate about enhancing the spaces where people live and work and are excited to build a business that reflects our commitment to design excellence.

We are adaptable and ready to evolve with the industry, looking forward to the bright future of our interior design venture.

You can also read our articles about: - the Business Model Canvas of an interior design services - the marketing strategy for an interior design services

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an interior designer and our financial plan for an interior designer .

Initial expenses for our interior design business include costs for professional design software, a well-equipped office space, a portfolio website, sample materials for client presentations, liability insurance, and marketing efforts to establish a strong brand presence.

Our revenue assumptions are based on an in-depth analysis of the local market's demand for interior design services, factoring in trends in home renovation, real estate development, and the increasing appreciation for personalized living spaces.

We anticipate a steady growth in client engagements, starting with smaller projects and expanding to larger, more lucrative contracts as our reputation for quality and creativity grows.

The projected income statement outlines expected revenues from our design services, project costs (materials, subcontractors, travel), and operating expenses (office rent, marketing, salaries, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our interior design business.

The projected balance sheet reflects assets unique to our business, such as design software, office equipment, and furniture, as well as liabilities including business loans and accounts payable.

It provides a snapshot of the financial standing of our interior design firm at the conclusion of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial needs at any point. This is crucial for maintaining a healthy cash balance and ensuring smooth business operations.

The projected financing plan identifies the specific sources of funding we intend to tap into to cover our initial costs.

The working capital requirement for our interior design business will be diligently tracked to guarantee we have sufficient funds to support our day-to-day activities, such as sourcing materials, managing inventory, and compensating our team.

The break-even analysis for our venture will pinpoint the volume of business we need to achieve to cover all our costs, including the initial investments, and to begin generating profits.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the profit margin on our design projects, the current ratio to evaluate our ability to meet short-term liabilities, and the return on investment to determine the efficiency of the capital we have invested in our business.

These metrics will assist us in gauging the financial health and overall success of our interior design enterprise.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an interior design services .

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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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Interior Design Business Plan Template [Updated 2024]

Interior Design Business Plan Template

If you want to start an Interior Design business or expand your current Interior Design business, you need a business plan.

The following Interior Design business plan template gives you the key elements to include in a winning Interior Design business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Interior Design Business Plan Example

I. executive summary, business overview.

[Company Name] is an interior design firm in [location] that handles residential and commercial spaces within the city, but also works on projects nationwide. It specializes in modern and contemporary styles, but also provides customized design services for any type of project.

The company aims for beauty, functionality and excellence in every project. Thus, its team of designers are the best in their field, experienced and equipped with a high quality educational background in Interior Design and related fields. Most of all, client satisfaction is [Company Name]’s priority. It prides itself in achieving clients’ goals for their space without compromising design, quality and comfort.

Products Served

[Company Name] will be able to provide the following services to its clients:

• Interior design: Planning and designing of indoor spaces
• Design and build: Designing and supervision of a new space from start to finish
• Renovation: Space improvement and remodeling
• e-Design: Online interior design consultation that includes space design/plan, coordinating with client’s local suppliers for furniture and raw materials, and access to [Company Name]’s online space designing platform.

[Company Name] designs projects for residential and commercial properties, as well hospitality clients.

Customer Focus

[Company Name] will primarily serve the residents who live within the city. The demographics of these customers are as follows:

• 226,520 residents
• 20,541 businesses
• Average income of $58,100
• 44.6% married
• 39% in Mgt./Professional occupations
• Median age: 37.2 years

Management Team

[Company Name] management team is led by its owner, the entrepreneur-turned-interior-designer, [Founder’s Name]. [Founder] worked as a business consultant for [x] years at [Company Name] and later pursued a career in Interior Design. He passed the exam for the National Council for Interior Design with high remarks.

[Founder’s Name] will lead the company with his colleague, [Manager B], who is also an interior designer from [Location]. He will assist [Founder] with the entire operation of [Company Name].

Success Factors

[Company Name] is uniquely qualified to succeed for the following reasons:

• [Company Name] is the first in [city] to have an online design planning platform for interior designers and clients to interact.
• The management team has a track record of success in the interior design business and hies designers with outstanding educational background and portfolio..
• Our location is in an economically progressing area where businesses are flourishing and expanding and residents are earning more income that they can use for home renovations.

Financial Highlights

[Company Name] is seeking a total funding of $220,000 of debt capital to open its interior design business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Headquarters design/build: $100,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

Who is [company name].

With the integration of advanced technology, [Company Name] allows its clients to make design amendments through the eDesign service. With this technology, the clients have access to an online space designing platform that they can view to see how their actual space would look like. This also has an edit feature where they can make changes to the designer’s layout to show what they need for their space.

[Company Name]’s History

[Company Name] was established by the entrepreneur-turned-interior-designer, [Founder’s Name].

In [year], [Founder’s Name] earned a degree in Interior Design and started accepting pro bono projects for his friends to test if he can pursue a career in the design field. His first two projects earned him high praise and future recommendations. He then went on to take the exam for the National Council for Interior Design and when he passed it with high marks, he decided to start his own Interior Design company, [Company Name].

Since incorporation, [Company Name] was able to achieve the following milestones:

• Found a business location and signed Letter of Intent to lease it
• Developed the company’s name, logo and website located at [website]
• Determined equipment and fixture requirements
• Began recruiting key employees

[Company Name]’s Products/Services

Below is [Company Name]’s initial services list:

III. Industry Analysis

The Interior Design industry has been supported by periods of growth in residential construction and nonresidential construction. The largest market for the Interior Design industry consists of individuals seeking residential design services. Therefore, growth in housing starts, existing home sales and other residential construction projects generally helps drive revenue growth. As a result, years in which residential construction has grown have been beneficial to the industry.

Per capita disposable income and the number of households earning more than $100K have also played a determining role, since industry services are highly discretionary. Periods of higher consumer confidence, per capita disposable income and corporate profit further drive demand since industry services are generally considered a discretionary spending item.

Over the next five years, the Interior Design industry is forecasted to grow. A return to growth in corporate profit and in the value of nonresidential construction are expected to propel the industry moving forward. In addition, an expected surge in residential construction and growth in consumer confidence and disposable income will drive demand for industry services. An increase in the number of households earning $100K in annual income could pose a potential opportunity for the industry as well. These households are much more likely to spend their income on discretionary or luxury services, such as interior design.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents and businesses in [location] and will soon expand to the surrounding states. [Location] is mostly populated by middle to upper class families that can afford interior design services. The location is also a prime spot for hotels, resorts and restaurants that will need our services as well.

Customer Segmentation

The company targets the following customer segments:

• Homeowners: The majority of the population in (location) lives in houses and have disposable income that they are willing to spend in renovations and home or room makeovers.
• Businesses: This includes offices, stores, and shops that are looking to improve their working space for customer appeal.
• Hospitality spaces: The city is home to a number of hotels and restaurants that attract visitors with their updated design and ambiance. This is something that [Company Name] specializes in.

V. Competitive Analysis

Direct & indirect competitors.

Ambiance Ambiance is an interior design company that offers design and plant services to businesses. Specifically, the company uses real as well as artificial plants to create interior landscaping displays within an office/commercial business setting, offers plant rental services to its clients, and may also provide services to companies asking for customized requests. Ambiance Ambius offers indoor as well as outdoor landscape and holiday decoration services that can include holiday trees, displays, wreaths, garland, poinsettias. Ambiance can serve companies across the US and Canada with its network of branches throughout these two countries.

Designer Online Designer Online is a product management platform for commercial interior designers. Designer Online is a platform for commercial interior-construction professionals to connect with their clients, virtually. Designer Online has a directory of ~350,000 products listed by over 5,500 product manufacturers. The company charges a subscription fee, but the core revenue comes from affiliate fees for products purchased on their platform.

Creative Interiors Creative Interiors is an interior design company that has been serving homeowners since 1991. The company assists homeowners to update and refresh their homes whether they prefer traditional décor or modern design. Services include working alongside architectural designers as well as assisting clients in the selection of custom furniture, window treatments, as well as home accessories for every room in the house. Specific projects the company has been involved in include kitchen remodels, outdoor living spaces, bathroom and powder rooms, ceiling designs, and many others.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s business is located in an area that has a robust business and residential community. It can also expand this reach by working with clients remotely through its eDesign service.
• Expert designers: The company was founded by an expert interior designer with a team of highly qualified interior designers with vast experience in the industry and outstanding portfolios.
• Management: [Founder’s Name] has been extremely successful working in the interior design field and will be able to use his previous experience to provide the best output and service to his clients.
• Relationships: [Founder’s Name] knows many of the local leaders, newspapers and other influences within [location]. With his [x] years of experience and good relationships with construction suppliers, designers, and curators in the area, he will be able to develop an initial client base.

VI. Marketing Plan

The [company name] brand.

The [Company Name] brand will focus on the Company’s unique value proposition:

• Expert interior design services
• Interactive online design planning platform
• Client-focused services that takes into consideration all of the clients’ requests and specifications

Promotions Strategy

[The Company’s] promotions strategy to reach its target market includes:

Social Media Marketing With the majority of Americans active on social media, the company will invest resources in social media ads. We will create ads that will yield positive conversions.

Online Marketing A company website will be developed with the goal of targeting search engine traffic. In order to do this, the company will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy, well-qualified interior design company.

Publications [Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sport programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as supermarkets and real estate offices.

Major Publications We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness.

Direct Mail [Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], as well as promotional information.  

VII. Operations Plan

Functional roles.

The Company intends to employ [X] interior designers, [Y] administrative assistants, and [Z] marketing team.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles:

Service Functions

• Interior Designer
• Administrative Assistant
• Maintenance personnel

Administrative Functions

• General & administrative functions including marketing, bookkeeping, etc.
• Marketing team (includes customer representatives to answer general inquiries, social media manager, salesperson
• IT personnel for online platform maintenance

[Company name]’s long term goal is to become the most renowned interior design firm in the area. It seeks to be the standard by which other providers are judged.

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

VIII. Management Team

Management team members.

[Company Name]’s management team is led by its owner, the entrepreneur-turned-interior-designer, [Founder’s Name]. [Founder] worked as a business consultant for [x] years at [Company Name] and later pursued a career in Interior Design. He passed the exam for the National Council for Interior Design with high remarks.

[Founder’s Name] will lead the company with his colleague, [Manager B], who is also an interior designer from [Location]. He will assist [Founder] with the entire operations of [Company Name].

Hiring Plan

[Founder] will serve as the Manager of [Company Name]. In order to launch, it needs to hire the following personnel:

• Interior Designers: 2 full-time employees to handle all design projects
• Administrative Assistant: One person to manage the day-to-day client appointments and schedule
• Maintenance Personnel: In charge of keeping the office clean and in order all the time
• Marketing team: 2 full-time employees

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come primarily from interior design services from residential properties and hospitality clients.

The office lease, labor expenses, and ongoing marketing expenditures are the key cost drivers of [Company Name].

Capital Requirements and Use of Funds

Key assumptions.

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

Comments are closed.

Interior Design Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2C Sector

Are you about starting an interior decoration business ? If YES, here’s a complete sample interior design business plan template & feasibility report you can use for FREE to raise money .

If you have ever entered a tastefully furnished house, then you will agree that those who are skilled in the interior décor trade know sure knows what it takes to make a place really beautiful. It is no wonder that hiring an interior décor sometimes might be on the high side; this is because of the level of expertise that they bring to the table.

If you think that the idea of being called an interior designer sounds good, then you may want to try your hands on the interior décor business. Truth is that the industry is a very competitive one, but truer is the fact that the sky is too big for two birds to collide.

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A Sample Interior Design Business Plan Template

1. industry overview.

When we talk about interior design or interior decoration, we are talking about the art or process of designing the interior and in some cases the exterior of a facility; it could be a room or building. An interior designer is a person whose job is to coordinate and manage executes such projects.

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

Interior designer companies are responsible for planning the design of both living and commercial facilities; they master the craft of tuning their ideas or concept into a reality. The projects that interior designers handle can be broad in scope.

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

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

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

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

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

It is important to clearly state that the Interior Designers industry is a highly fragmented industry with thousands of players, of which only a small percentage of the players of the industry generating an annual revenue exceeding $1.0 million.

A large numbers of players in interior designer industry are self-employed simply because of the nature of the job they do and of course the low start – up capital required to start the business.

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

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

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

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

2. Executive Summary

Taffy & Tanya House of Decoration™, Inc. is a U.S based interior design company. We have been able to secure a standard and well – positioned office facility in a busy business district in Virginia Beach – Virginia. We are a world class interior design company that is set to compete in the highly competitive interior design industry not only in the United States market, but also in the global market.

Taffy & Tanya House of Decoration™, Inc. will be involved in the all aspect of interior design services such as Residential interior design services, Commercial interior design services, Merchandise sales, Interior decorating services consulting services (consulting on interior decorating matters, consulting on residential design matters, consulting on institutional design matters) and other related services.

Our business goal is to become one of the leading interior design companies in the United States and we will make sure that every graphic design jobs that leaves our studio can favorable compete with the best in the industry. Our workers are going to be selected from a pool of talented and highly creative interior designers in and around Houston – Texas and also from any part of the world especially from Milan and Paris as the business grows.

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

At Taffy & Tanya House of Decoration™, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients. Taffy & Tanya House of Decoration™, Inc. is founded by Mrs. Taffy Sanders and her friend, course mate and business partner for many years Ms. Tanya Emerson.

They are both graduates from The Interior Design School London. Mrs. Taffy Sanders has an MBA from London Schools of Economics. Mrs. Taffy Sanders and Ms. Tanya Emerson worked with one of the leading interior design company in Europe before coming back to The United States to set up Taffy & Tanya House of Decoration™, Inc.

This duo is vast and well-read in the interior décor trade and so is sure to build the interior décor business from the scratch to an enviable position.

3. Our Products and Services

Taffy & Tanya House of Decoration™, Inc. was established with the aim of maximizing profits in the interior design cum real estate industry.

We want to compete favorably with the leading interior design companies in the United States which is why we have but in place a competent quality assurance team that will ensure that all our interior designs and related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Taffy & Tanya House of Decoration™, Inc. is not just accepted in Virginia Beach – Virginia but also nationally in the United States of America. Our products and services are listed below;

• Residential interior design services
• Commercial interior design services
• Merchandise sales
• Interior decorating services consulting services (Consulting on interior decorating matters, Consulting on residential design matters, Consulting on institutional design matters)
• Other related services like giving interior makeover to historic buildings, vehicles, such as ships and aircraft et al.

4. Our Mission and Vision Statement

• Our vision is to establish a standard interior design company whose services and brand will not only be accepted in Virginia Beach – Virginia but also all through the United States of America, but also in other parts of the world.
• Our mission is to build an interior design company that will be known to execute top notch designs and projects and to become the number one choice of real estate agencies and other stake holder in the industry.
• We want to build an interior design company that can favorably compete with other leading brands in the industry.

Our Business Structure

Taffy & Tanya House of Decoration™, Inc. is an interior design company that intend starting small in Virginia Beach, but hope to grow big in order to compete favorably with leading interior design companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Taffy & Tanya House of Decoration™, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

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

• Chief Executive Officer
• Creative Director

Human Resources and Admin Manager

• Sales and Marketing Executive
• Interior Designer

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

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

Creative Director:

• Serve as project manager of the organization; works directly with employees
• Responsible for designing concepts for home makeover and facility uplifts needs for client
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications / journals; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and interior designers
• Ensures that the organization work in line with international best practices.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office and factory activities.

Sales and Marketing Manager

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

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Pick ‘a’ Brain™ Finishing School
• Serves as internal auditor for Pick ‘a’ Brain™ Finishing School

Interior Designers (4)

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

6. SWOT Analysis

Taffy & Tanya House of Decoration™, Inc. hire the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured interior design business that can favorably compete in the highly competitive interior design industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Taffy & Tanya House of Decoration™, Inc. One of the reasons why we did this was to make sure that core professionals take care of identifying our core areas strength and weakness.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Taffy & Tanya House of Decoration™, Inc.;

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

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

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

• Opportunities:

No doubt, the opportunities in the interior design industry is massive considering the number of individuals and corporate organizations acquiring new properties and would need the services of interior designers to give the facilities facelift. As a graphic design company, we are ready to take advantage of any opportunity that is available in the industry.

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

7. MARKET ANALYSIS

• Market Trends

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

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

As an interior designer, you are expected to keep tab with new trends and products that are always coming up in the industry. It is a fact that most interior designers ensure that they follow the traditions or patterns that are synonymous to a region.

For instance, as an interior designer in the Arab world, your designs are expected to follow the traditions and pattern in the region so also as an interior designer operating in the Orient or in the Nordic Region or in the Caribbean or any region with strong culture, your designs are expected to conform to their traditions and patterns.

It is important to state that in recent time, for any interior design company to continue to stay in business, they must continue to come up with highly creative design and concepts.

8. Our Target Market

Before starting our interior design company, we are certain that there is a wide range of both corporate and individual clients who cannot successfully move into their new facility without hiring the services of interior designers. As a matter of fact, without the services of interior designers, the interiors of facilities won’t be as beautiful and welcoming as we can see these days.

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

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that all our interior design services are well accepted in the market place.

Below is a list of the people and organizations that we have specifically market our products and services to;

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

Our Competitive Advantage

No doubt the competition in the interior design industry is getting stiffer by the day-as such, you have to be highly creative and come up with appealing designs and concepts in order to survive in the industry.

The interior design industry is indeed a profitable and at the same time a highly competitive industry; it enjoys strong demand as people continue to purchase or move into new apartments and remodel old ones. Clients will only hire your services if they know that they can get nothing but the best from you.

We are quite aware that to be highly competitive in the graphic design industry means that you are not only expected to be able to deliver consistent and highly creative designs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

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

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

9. SALES AND MARKETING STRATEGY

• Sources of Income

Every business has to identify the areas that it wants to source for the startup funds, and we are set to do same. it wants to Taffy & Tanya House of Decoration™ Inc. is established with the aim of maximizing profits in the interior design cum real estate industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Taffy & Tanya House of Decoration™ Inc. will generate income by offering the following interior design services and other related services;

10. Sales Forecast

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

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

We have been able to critically examine the interior design market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Virginia Beach – Virginia.

Below is the sales projection for Taffy & Tanya House of Decoration™ Inc., it is based on the location of our business and of course the wide range of our services and target market;

• First Year-: $150,000
• Second Year-: $400,000
• Third Year-: $750,000

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

• Marketing Strategy and Sales Strategy

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

Our sales and marketing team will be recruited based on their vast experience in the real estate market and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Taffy & Tanya House of Decoration™, Inc.

Our goal is to grow Taffy & Tanya House of Decoration™, Inc. to become one of the leading interior design companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Virginia Beach – Virginia but also in other cities in the United States of America.

Taffy & Tanya House of Decoration™ Inch is set to make use of the following marketing and sales strategies to attract clients and win interior decoration contracts;

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

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of the Virginia Beach and beyond which is why we have made provisions for effective publicity and advertisement of our Interior design company.

Below are the platforms we intend to leverage on to promote and advertise Taffy & Tanya House of Decoration™ Inc.;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Virginia Beach – Virginia
• Engage in roadshow from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations and residence in our target areas by calling them up and informing them of Taffy & Tanya House of Decoration™ Inc. and the services we offer
• List our interior design company in local directories / yellow pages
• Advertise our interior design company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

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

At Taffy & Tanya House of Decoration™ Inc. we will adopt all the pricing system as is obtainable in the industry but we will ensure that we keep the prices of our services a little below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services.

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

• Payment Options

At Taffy & Tanya House of Decoration™ Inc., our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

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

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an interior design company; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Taffy & Tanya House of Decoration™ Inc. in Virginia Beach – Virginia, U.S;

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

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

Generating Funding / Startup Capital for Taffy & Tanya House of Decoration™ Inc.

Taffy & Tanya House of Decoration™ Inc. is a business that will be owned by Mrs. Taffy Sanders and her friend, course mate and business partner for many years Ms. Tanya Emerson. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

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

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

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to develop a various mobile apps for different clients and for different purposes. We will also work with corporate clients to help them develop customized mobile apps for their business.

We know that if we continue to come up with highly creative and unique interior designs concept and excellent job delivery for corporate organizations, government agencies and household, there will be steady flow of income for the organization.

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

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

Check List / Milestone

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