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.
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.
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.
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.
The industry continues to be competitive with a “commodity” concern with “designers” of all skill and background levels available throughout the market.
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.
Our primary method of distribution will be on a direct sales basis for each individual client.
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:
Understanding the influence of these factors on the prospective client will be key in the marketing strategy.
Current local competition includes the following:
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.
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:
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.
The primary sales and marketing strategy for Barton Interiors includes these factors:
This strategy will be implemented through the tactics and programs described in this section.
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.
Opportunities
This analysis indicates solid potential success, but the weaknesses and threats must be recognized throughout the life of the venture.
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.
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.
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.
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:
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.
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.
The promotion strategy will focus on generating referrals. Other potential sources of promotion include:
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.
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:
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.
Strategy #2 LEVERAGING EXISTING CLIENT BASE – Our best sales in the future will come from our current client base.
Strategy #3 CROSS SELLING – Increasing the average dollar amount per transaction.
Strategy #4 NEW HOME CONSTRUCTION PROMOTION – Connecting with people involved in the building process.
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.
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.
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.
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 Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Residential Consulting | $22,700 | $31,200 | $46,000 |
Commercial Consulting | $3,960 | $6,240 | $7,200 |
Product Sales | $19,800 | $31,200 | $46,000 |
Other | $0 | $0 | $0 |
Total Sales | $46,460 | $68,640 | $99,200 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Residential Consulting | $3,405 | $4,680 | $6,900 |
Commercial Consulting | $594 | $936 | $1,080 |
Product Sales | $10,890 | $17,160 | $25,300 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $14,889 | $22,776 | $33,280 |
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.
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.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Year Buying Program | 1/2/2002 | 1/30/2002 | $560 | Jill | Products |
Membership Strategy | 2/2/2002 | 2/15/2002 | $225 | Jill | Promotions |
Seminar Schedule & Prep. | 3/1/2002 | 4/1/2002 | $45 | Jill | Marketing |
Seminars | 4/1/2002 | 5/30/2002 | $540 | Jill | Marketing |
Client Review/Analysis | 6/1/2002 | 6/15/2002 | $250 | Jill | Marketing |
Furniture Market (High Point, N.C.) | 11/10/2002 | 11/20/2002 | $1,800 | Jill | Products |
Year End Evaluation | 12/20/2002 | 12/31/2002 | $250 | Jill & CPA | Management |
Totals | $3,670 |
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.
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.
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.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Jill Barton | $19,800 | $28,800 | $36,000 |
Other | $0 | $0 | $0 |
Total People | 0 | 0 | 0 |
Total Payroll | $19,800 | $28,800 | $36,000 |
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:
<p size="4" Financial difficulties and risks
Worst case risks might include
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.
Break-even Analysis | |
Monthly Revenue Break-even | $4,067 |
Assumptions: | |
Average Percent Variable Cost | 32% |
Estimated Monthly Fixed Cost | $2,763 |
The following captured critical assumptions will determine the potential for future success.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 9.50% | 9.50% | 9.50% |
Long-term Interest Rate | 8.50% | 8.50% | 8.50% |
Tax Rate | 28.17% | 28.00% | 28.17% |
Other | 0 | 0 | 0 |
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.
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.
Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $500 |
Stationery etc. | $850 |
Brochures | $420 |
Consultants | $450 |
Insurance | $150 |
Samples and Reference Books | $3,250 |
Research and development | $800 |
Expensed equipment | $4,250 |
Other | $550 |
Total Start-up Expenses | $11,220 |
Start-up Assets | |
Cash Required | $9,780 |
Other Current Assets | $1,000 |
Long-term Assets | $3,000 |
Total Assets | $13,780 |
Total Requirements | $25,000 |
Start-up Funding | |
Start-up Expenses to Fund | $11,220 |
Start-up Assets to Fund | $13,780 |
Total Funding Required | $25,000 |
Assets | |
Non-cash Assets from Start-up | $4,000 |
Cash Requirements from Start-up | $9,780 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $9,780 |
Total Assets | $13,780 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Jill Barton | $25,000 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $25,000 |
Loss at Start-up (Start-up Expenses) | ($11,220) |
Total Capital | $13,780 |
Total Capital and Liabilities | $13,780 |
Total Funding | $25,000 |
The following represents the projected profit and loss for Barton Interiors based on sales and expense projections for 2002 through 2004.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $46,460 | $68,640 | $99,200 |
Direct Cost of Sales | $14,889 | $22,776 | $33,280 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $14,889 | $22,776 | $33,280 |
Gross Margin | $31,571 | $45,864 | $65,920 |
Gross Margin % | 67.95% | 66.82% | 66.45% |
Expenses | |||
Payroll | $19,800 | $28,800 | $36,000 |
Sales and Marketing and Other Expenses | $11,560 | $13,430 | $15,100 |
Depreciation | $300 | $750 | $800 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $540 | $660 | $800 |
Insurance | $960 | $1,200 | $1,600 |
Rent | $0 | $0 | $0 |
Payroll Taxes | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $33,160 | $44,840 | $54,300 |
Profit Before Interest and Taxes | ($1,589) | $1,024 | $11,620 |
EBITDA | ($1,289) | $1,774 | $12,420 |
Interest Expense | $0 | $76 | $238 |
Taxes Incurred | $0 | $265 | $3,206 |
Net Profit | ($1,589) | $683 | $8,176 |
Net Profit/Sales | -3.42% | 0.99% | 8.24% |
The cash flow projections are outlined below. These cash flow projects are based on our basic assumptions and expense and revenue projections.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $32,522 | $48,048 | $69,440 |
Cash from Receivables | $9,578 | $18,511 | $26,892 |
Subtotal Cash from Operations | $42,100 | $66,559 | $96,332 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $1,600 | $1,800 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $210 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $42,310 | $68,159 | $98,132 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $19,800 | $28,800 | $36,000 |
Bill Payments | $24,693 | $38,506 | $52,924 |
Subtotal Spent on Operations | $44,493 | $67,306 | $88,924 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $44,493 | $67,306 | $88,924 |
Net Cash Flow | ($2,183) | $852 | $9,209 |
Cash Balance | $7,597 | $8,449 | $17,658 |
Barton Interiors’ balance sheet is outlined below.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $7,597 | $8,449 | $17,658 |
Accounts Receivable | $4,360 | $6,441 | $9,308 |
Other Current Assets | $790 | $790 | $790 |
Total Current Assets | $12,747 | $15,680 | $27,757 |
Long-term Assets | |||
Long-term Assets | $3,000 | $3,000 | $3,000 |
Accumulated Depreciation | $300 | $1,050 | $1,850 |
Total Long-term Assets | $2,700 | $1,950 | $1,150 |
Total Assets | $15,447 | $17,630 | $28,907 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $3,256 | $3,157 | $4,457 |
Current Borrowing | $0 | $1,600 | $3,400 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $3,256 | $4,757 | $7,857 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $3,256 | $4,757 | $7,857 |
Paid-in Capital | $25,000 | $25,000 | $25,000 |
Retained Earnings | ($11,220) | ($12,809) | ($12,126) |
Earnings | ($1,589) | $683 | $8,176 |
Total Capital | $12,191 | $12,874 | $21,050 |
Total Liabilities and Capital | $15,447 | $17,630 | $28,907 |
Net Worth | $12,191 | $12,874 | $21,050 |
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:
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | n.a. | 47.74% | 44.52% | 12.40% |
Percent of Total Assets | ||||
Accounts Receivable | 28.22% | 36.53% | 32.20% | 26.10% |
Other Current Assets | 5.11% | 4.48% | 2.73% | 44.70% |
Total Current Assets | 82.52% | 88.94% | 96.02% | 74.50% |
Long-term Assets | 17.48% | 11.06% | 3.98% | 25.50% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 21.08% | 26.98% | 27.18% | 44.30% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 16.00% |
Total Liabilities | 21.08% | 26.98% | 27.18% | 60.30% |
Net Worth | 78.92% | 73.02% | 72.82% | 39.70% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 67.95% | 66.82% | 66.45% | 0.00% |
Selling, General & Administrative Expenses | 73.96% | 65.72% | 38.61% | 80.80% |
Advertising Expenses | 16.36% | 12.24% | 11.36% | 1.30% |
Profit Before Interest and Taxes | -3.42% | 1.49% | 11.71% | 2.20% |
Main Ratios | ||||
Current | 3.92 | 3.30 | 3.53 | 1.75 |
Quick | 3.92 | 3.30 | 3.53 | 1.38 |
Total Debt to Total Assets | 21.08% | 26.98% | 27.18% | 60.30% |
Pre-tax Return on Net Worth | -13.03% | 7.36% | 54.07% | 3.80% |
Pre-tax Return on Assets | -10.29% | 5.38% | 39.38% | 9.70% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -3.42% | 0.99% | 8.24% | n.a |
Return on Equity | -13.03% | 5.30% | 38.84% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.20 | 3.20 | 3.20 | n.a |
Collection Days | 55 | 96 | 97 | n.a |
Accounts Payable Turnover | 8.58 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 30 | 26 | n.a |
Total Asset Turnover | 3.01 | 3.89 | 3.43 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.27 | 0.37 | 0.37 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $9,491 | $10,924 | $19,900 | n.a |
Interest Coverage | 0.00 | 13.47 | 48.93 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.33 | 0.26 | 0.29 | n.a |
Current Debt/Total Assets | 21% | 27% | 27% | n.a |
Acid Test | 2.58 | 1.94 | 2.35 | n.a |
Sales/Net Worth | 3.81 | 5.33 | 4.71 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Residential Consulting | 0% | $800 | $900 | $1,000 | $1,200 | $1,400 | $1,600 | $1,800 | $2,000 | $2,400 | $2,800 | $3,200 | $3,600 |
Commercial Consulting | 0% | $0 | $0 | $0 | $240 | $280 | $320 | $360 | $400 | $440 | $560 | $640 | $720 |
Product Sales | 0% | $400 | $600 | $800 | $1,000 | $1,200 | $1,400 | $1,600 | $1,800 | $2,000 | $2,400 | $3,000 | $3,600 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $1,200 | $1,500 | $1,800 | $2,440 | $2,880 | $3,320 | $3,760 | $4,200 | $4,840 | $5,760 | $6,840 | $7,920 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Residential Consulting | $120 | $135 | $150 | $180 | $210 | $240 | $270 | $300 | $360 | $420 | $480 | $540 | |
Commercial Consulting | $0 | $0 | $0 | $36 | $42 | $48 | $54 | $60 | $66 | $84 | $96 | $108 | |
Product Sales | $220 | $330 | $440 | $550 | $660 | $770 | $880 | $990 | $1,100 | $1,320 | $1,650 | $1,980 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $340 | $465 | $590 | $766 | $912 | $1,058 | $1,204 | $1,350 | $1,526 | $1,824 | $2,226 | $2,628 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | |
Long-term Interest Rate | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | |
Tax Rate | 30.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $1,200 | $1,500 | $1,800 | $2,440 | $2,880 | $3,320 | $3,760 | $4,200 | $4,840 | $5,760 | $6,840 | $7,920 | |
Direct Cost of Sales | $340 | $465 | $590 | $766 | $912 | $1,058 | $1,204 | $1,350 | $1,526 | $1,824 | $2,226 | $2,628 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $340 | $465 | $590 | $766 | $912 | $1,058 | $1,204 | $1,350 | $1,526 | $1,824 | $2,226 | $2,628 | |
Gross Margin | $860 | $1,035 | $1,210 | $1,674 | $1,968 | $2,262 | $2,556 | $2,850 | $3,314 | $3,936 | $4,614 | $5,292 | |
Gross Margin % | 71.67% | 69.00% | 67.22% | 68.61% | 68.33% | 68.13% | 67.98% | 67.86% | 68.47% | 68.33% | 67.46% | 66.82% | |
Expenses | |||||||||||||
Payroll | $1,200 | $1,200 | $1,200 | $1,500 | $1,500 | $1,500 | $1,800 | $1,800 | $1,800 | $2,100 | $2,100 | $2,100 | |
Sales and Marketing and Other Expenses | $2,165 | $615 | $615 | $885 | $625 | $625 | $685 | $685 | $935 | $685 | $2,425 | $615 | |
Depreciation | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | |
Insurance | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | |
Rent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $3,515 | $1,965 | $1,965 | $2,535 | $2,275 | $2,275 | $2,635 | $2,635 | $2,885 | $2,935 | $4,675 | $2,865 | |
Profit Before Interest and Taxes | ($2,655) | ($930) | ($755) | ($861) | ($307) | ($13) | ($79) | $215 | $429 | $1,001 | ($61) | $2,427 | |
EBITDA | ($2,630) | ($905) | ($730) | ($836) | ($282) | $12 | ($54) | $240 | $454 | $1,026 | ($36) | $2,452 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($2,655) | ($930) | ($755) | ($861) | ($307) | ($13) | ($79) | $215 | $429 | $1,001 | ($61) | $2,427 | |
Net Profit/Sales | -221.25% | -62.00% | -41.94% | -35.29% | -10.66% | -0.39% | -2.10% | 5.12% | 8.86% | 17.38% | -0.89% | 30.64% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $840 | $1,050 | $1,260 | $1,708 | $2,016 | $2,324 | $2,632 | $2,940 | $3,388 | $4,032 | $4,788 | $5,544 | |
Cash from Receivables | $0 | $12 | $363 | $453 | $546 | $736 | $868 | $1,000 | $1,132 | $1,266 | $1,461 | $1,739 | |
Subtotal Cash from Operations | $840 | $1,062 | $1,623 | $2,161 | $2,562 | $3,060 | $3,500 | $3,940 | $4,520 | $5,298 | $6,249 | $7,283 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $210 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $840 | $1,062 | $1,623 | $2,371 | $2,562 | $3,060 | $3,500 | $3,940 | $4,520 | $5,298 | $6,249 | $7,283 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $1,200 | $1,200 | $1,200 | $1,500 | $1,500 | $1,500 | $1,800 | $1,800 | $1,800 | $2,100 | $2,100 | $2,100 | |
Bill Payments | $88 | $2,583 | $1,209 | $1,345 | $1,772 | $1,667 | $1,815 | $2,019 | $2,174 | $2,588 | $2,705 | $4,729 | |
Subtotal Spent on Operations | $1,288 | $3,783 | $2,409 | $2,845 | $3,272 | $3,167 | $3,615 | $3,819 | $3,974 | $4,688 | $4,805 | $6,829 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $1,288 | $3,783 | $2,409 | $2,845 | $3,272 | $3,167 | $3,615 | $3,819 | $3,974 | $4,688 | $4,805 | $6,829 | |
Net Cash Flow | ($448) | ($2,721) | ($786) | ($474) | ($710) | ($106) | ($114) | $122 | $546 | $611 | $1,444 | $454 | |
Cash Balance | $9,332 | $6,612 | $5,826 | $5,352 | $4,642 | $4,536 | $4,421 | $4,543 | $5,089 | $5,700 | $7,143 | $7,597 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $9,780 | $9,332 | $6,612 | $5,826 | $5,352 | $4,642 | $4,536 | $4,421 | $4,543 | $5,089 | $5,700 | $7,143 | $7,597 |
Accounts Receivable | $0 | $360 | $798 | $975 | $1,254 | $1,572 | $1,831 | $2,091 | $2,350 | $2,670 | $3,132 | $3,722 | $4,360 |
Other Current Assets | $1,000 | $1,000 | $1,000 | $1,000 | $790 | $790 | $790 | $790 | $790 | $790 | $790 | $790 | $790 |
Total Current Assets | $10,780 | $10,692 | $8,410 | $7,801 | $7,396 | $7,004 | $7,157 | $7,302 | $7,683 | $8,549 | $9,621 | $11,656 | $12,747 |
Long-term Assets | |||||||||||||
Long-term Assets | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Accumulated Depreciation | $0 | $25 | $50 | $75 | $100 | $125 | $150 | $175 | $200 | $225 | $250 | $275 | $300 |
Total Long-term Assets | $3,000 | $2,975 | $2,950 | $2,925 | $2,900 | $2,875 | $2,850 | $2,825 | $2,800 | $2,775 | $2,750 | $2,725 | $2,700 |
Total Assets | $13,780 | $13,667 | $11,360 | $10,726 | $10,296 | $9,879 | $10,007 | $10,127 | $10,483 | $11,324 | $12,371 | $14,381 | $15,447 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $2,542 | $1,165 | $1,286 | $1,717 | $1,607 | $1,748 | $1,947 | $2,088 | $2,500 | $2,546 | $4,617 | $3,256 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $2,542 | $1,165 | $1,286 | $1,717 | $1,607 | $1,748 | $1,947 | $2,088 | $2,500 | $2,546 | $4,617 | $3,256 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $2,542 | $1,165 | $1,286 | $1,717 | $1,607 | $1,748 | $1,947 | $2,088 | $2,500 | $2,546 | $4,617 | $3,256 |
Paid-in Capital | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
Retained Earnings | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) | ($11,220) |
Earnings | $0 | ($2,655) | ($3,585) | ($4,340) | ($5,201) | ($5,508) | ($5,521) | ($5,600) | ($5,385) | ($4,956) | ($3,955) | ($4,016) | ($1,589) |
Total Capital | $13,780 | $11,125 | $10,195 | $9,440 | $8,579 | $8,272 | $8,259 | $8,180 | $8,395 | $8,824 | $9,825 | $9,764 | $12,191 |
Total Liabilities and Capital | $13,780 | $13,667 | $11,360 | $10,726 | $10,296 | $9,879 | $10,007 | $10,127 | $10,483 | $11,324 | $12,371 | $14,381 | $15,447 |
Net Worth | $13,780 | $11,125 | $10,195 | $9,440 | $8,579 | $8,272 | $8,259 | $8,180 | $8,395 | $8,824 | $9,825 | $9,764 | $12,191 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Jill Barton | 0% | $1,200 | $1,200 | $1,200 | $1,500 | $1,500 | $1,500 | $1,800 | $1,800 | $1,800 | $2,100 | $2,100 | $2,100 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total Payroll | $1,200 | $1,200 | $1,200 | $1,500 | $1,500 | $1,500 | $1,800 | $1,800 | $1,800 | $2,100 | $2,100 | $2,100 |
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Exceptional interior design is not merely about decorating rooms; it's a strategic endeavor that transforms space planning into harmonious, purpose-driven settings. It's about optimizing energy flow, enhancing comfort, and fostering a sense of belonging within these spaces.
An interior design business plan is essential to embark on this creative journey. It serves as the compass, guiding interior designers through the complexities of this multifaceted interior design service industry . A well-crafted plan outlines the vision, target market, services, and financial strategies, offering a roadmap to success.
This blog will provide the best interior business plan templates for you and your business.
1.Executive Summary
2.Company Overview
3.Industry Analysis
4.Customer Analysis
5.Competitor Analysis
6.SWOT Analysis
7.Porter's Framework
8.Marketing Plan
9.Operational Plan
10.Financial Plan
This blog post will cover details on the 10 pages within this entire deck. Upon downloading, you will get the 71-page Doc, PDF, and XLS files .
This section is vital for capturing the attention of potential investors. It should highlight your interior design business's unique value proposition, mission, and vision. A compelling Executive Summary sets the tone for the entire plan and serves as a tool to attract investors by demonstrating the clarity of your business strategy and the promising opportunities it presents in the interior design industry.
In our Executive Summary section, you will get templates for
1.1 The Quick Pitch: Offer a compelling and concise glimpse, showcasing the core features and unique offerings that define your interior design business.
1.2 The Entity Profile: Craft a streamlined portrayal of your company's structure and distinctive identity, strategically tailored to pique the interest of potential investors and collaborators.
Download this business plan
Looking for another option to chose from? Explore this Inter Design Business Plan in PowerPoint format with a unique theme and impressive graphics. Click here to open .
The Company Overview page introduces your interior design business, history, and core values. Investors look to this section to understand the foundation of your business. It's a chance to showcase your passion and commitment, which can be a compelling factor in attracting investors who align with your values and vision.
In our Company Overview section, you will get templates for
2.1 Vision and Mission: Craft an alluring mission and vision that guide your interior design enterprise toward its purposeful destiny.
2.2 Company Goals and Objectives: Illuminate the precise aspirations and objectives your interior design business aims to achieve.
2.3 Start-up Summary: Offer a snapshot of your interior design business's origin story, unveiling its inception, structure, and foundational building blocks.
2.4 Market Gap Analysis and Business Statement: Explore untapped opportunities within the interior design realm and express your distinct business identity.
2.5 Services Portfolio: Reveal an expansive palette of interior design services, showcasing the breadth of your creative expertise and design capabilities.
2.6 Key Success Factors: Define the critical factors that pave the way for success in your interior design business plan, ensuring a well-illuminated path to prosperity within the world of design and aesthetics.
This section offers valuable insights into market size, key trends, and emerging opportunities. It positions your interior design business as one that understands the industry dynamics, making it more attractive to investors seeking growth sectors to invest in.
In our Industry Analysis section, you will get templates for:
3.1 Market Analysis: Dive deep into the interior design industry, uncovering hidden opportunities and identifying influential players that will shape the future of your venture.
3.2 Market Trends Tracking: Maintain a forward-looking stance by monitoring the ever-evolving trends in interior design and décor to captivate the discerning tastes of modern consumers.
3.3 Major Challenges and Solutions: Fearlessly confront industry challenges, forging innovative solutions that guarantee the uninterrupted progress of your interior design business.
3.4 Growth Drivers Identification: Precision-engineer strategies and pinpoint the pivotal factors that will propel your interior design brand toward rapid expansion and enduring triumph.
3.5 Geographical Market Analysis: Tailor your approach to diverse regions within your target market, ensuring a seamless expansion that harmonizes with regional preferences and fulfills distinctive demands.
A detailed understanding of your target customers is essential for attracting investors. This page should highlight your knowledge of your client base, their needs, preferences, and demographics. Investors want to see that you've identified a viable market and developed strategies to reach and retain customers. Demonstrating a solid customer analysis can instill confidence in investors that there is demand for your interior design services.
In our Customer Analysis section, we offer comprehensive templates for:
4.1 Target Market Definition: Craft a crystalline vision of the consumer or business segments your interior design services uniquely suit, ensuring a precisely focused and impactful market strategy.
4.2 Buyer Persona Development: Sculpt a finely detailed portrait of your ideal customer, from demographics to preferences and behaviors, to refine your interior design services with exquisite precision, meeting their needs with artful mastery.
4.3 Market Sizing Analysis: Calculate the dimensions of the interior design market, meticulously measuring the potential market share your brand can capture and painting a canvas of opportunities that beckon in your entrepreneurial landscape.
Investors appreciate businesses that understand their competitive landscape. The Competitor Analysis section should provide insights into your competitors' strengths and weaknesses, helping investors assess your interior design business's competitive advantage. By showcasing how you plan to differentiate yourself in the market, you can attract investors who see the potential for your business to outperform competitors.
In our Competitor Analysis section, we provide templates for:
5.1 Major Players: Chart a course through the dynamic landscape of the interior design industry by profiling and dissecting the foremost competitors and influential figures shaping the market's evolution.
5.2 Attributes Comparison: Engage in a meticulous exploration, crafting insightful comparisons of the essential traits and features that define various interior design products or services in the market.
If you are looking for self-assessment of your business, SWOT Analysis is an essential tool. It helps investors understand your interior design business's internal strengths and problems and the external opportunities and threats it faces. This page demonstrates your ability to identify and mitigate risks while capitalizing on strengths, making your business more appealing to risk-conscious investors.
Porter's Framework analyzes the competitive forces within your industry. Investors are interested in your interior design business's positioning in the market and its ability to withstand competitive pressures. Highlighting your strategies for competitive advantage and market positioning can attract investors looking for businesses with a strong market presence and sustainable competitive edge.
The Marketing Plan details how you intend to reach and engage customers. Investors want to see a well-thought-out strategy for brand building and customer acquisition. A robust marketing plan attracts customers and investors who recognize the importance of effective marketing in driving business growth.
In our Marketing Plan section, we provide templates for:
8.1 Sales Strategy: Engineer a bespoke sales strategy blueprint meticulously designed to meet and surpass the financial aspirations and dreams of your interior design business.
8.2 Promotional Strategy: Paint a vivid picture of your marketing and promotional tactics, igniting a blaze of anticipation and etching an enduring presence for your interior design brand within the industry.
8.3 Pricing Strategy: Unveil the secret sauce of your pricing strategy, seamlessly blending profitability and unrivaled competitiveness, and establishing the gold standard in interior design.
8.4 Sales Funnel Optimization: Chart the captivating journey from discovery to delight for your customers, optimizing every twist and turn of the sales funnel to deliver maximum efficiency and satisfaction in the interior design experience.
Investors seek assurance that your interior design business has a sound operational foundation. The Operational Plan page should detail your business's day-to-day operations, including staffing, processes, and technology. A well-structured operational plan instills confidence in investors that your business can deliver on its promises and sustain growth.
In our Operational Plan section, we provide templates for:
9.1 Retail Selling Strategy: Sculpt your path to retail journey with a strategic blueprint for selling your exquisite interior design renovations , showcasing your sales acumen and tactical finesse.
9.2 E-commerce Sales Strategy: Master the digital landscape with a meticulously crafted strategy, financial breakdown, and a roadmap to dominate the online marketplace with your captivating interior design offerings.
9.3 Milestones and Achievements: Illuminate the stepping stones of your interior design empire's odyssey, highlighting the pivotal milestones and remarkable accomplishments that trace your journey of growth and triumph.
The Financial Plan is critical for investors as it provides insights into your interior design project management financial projections, including revenue, expenses, and profitability. It allows investors to evaluate the potential return on their investment. By presenting realistic and well-supported financial forecasts, you can attract investors seeking opportunities for financial growth and stability.
In our Financial Plan section, we provide templates for:
10.1 Financial Assumptions: Transform your financial vision into a strategic blueprint, shaping the fiscal landscape of your interior design enterprise.
10.2 Revenue Model and Sales Forecast: Illuminate the diverse revenue streams propelling your interior design business and craft a growth roadmap.
10.3 Break-Even Analysis: Delve into the pivotal factors steering your interior design venture toward the break-even point, a significant marker for profitability.
10.4 Projected Profit and Loss Account: Paint a vivid financial picture of your interior design potential, projecting revenues, monitoring expenditures, and anticipating overall profitability.
10.5 Projected Cash Flow Statement: Master the fluid finances of your interior design enterprise with a meticulous projection of anticipated cash flows.
10.6 Projected Balance Sheet: Provide a comprehensive view of your interior design business's anticipated assets, liabilities, and equity, ensuring financial transparency.
10.7 Scenario Analysis: Embark on exploring diverse scenarios to assess how varying conditions and risks might influence the financial resilience of your interior design venture.
10.8 DCF Valuation: Harness the power of discounted cash flow analysis to evaluate the current market value of your interior design business, quantifying its worth within the competitive interior design industry.
This blog has given you a gist of the fantastic content you would get through this business plan. However, this is just the tip of the iceberg, when you download this business plan template , you will get all of the 71 pages and the goodness within. Starting an interior design business is a lot of effort with services for house remodeling, but we can make it easier for you with the help of interior design presentation ppt . Moreover, you can also download the entire business plan ppt in an editable PowerPoint format to alter your requirements as per the business.
1. what is an interior design business plan.
A thorough document defining the strategic direction, objectives, and operational specifics of an interior design venture is known as a business plan. The company's goal and vision, target market analysis, list of services, marketing and sales plans, financial predictions, and a thorough budget are often included. The business owner uses a well-written business plan as a road map to help them achieve their goals and, if necessary, obtain financing. It also aids in prioritizing tasks, spotting potential obstacles, and monitoring business objective progress.
There are numerous essential steps to starting an interior design business:
If well run, interior design may be a lucrative industry. Success is influenced by location, area of expertise, market demand, and the designer's talent and reputation. Design fees, project markups, consultancy fees, and product sales are ways interior designers might make money. Designers frequently concentrate on niche markets, provide distinctive services, run efficient businesses, and build loyal clientele to improve revenue. Profitability can also be increased via networking, following market trends, and providing outstanding value to customers.
Senior positions or specialized niches are frequently found in the highest-paying interior design positions. Professionals in interior design who have a large clientele can demand greater salaries. Some of the interior design positions with the highest salaries are:
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7 ways to create luxury interior design on a limited budget.
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!
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.
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.
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.
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.
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 .
Topics: Business of Design
Related posts, spring 2023 high point market recap.
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Starting an interior design business is a popular move for people who study the craft of creating a space that's both functional and aesthetically pleasing. The combination of expressing yourself and executing your vision for clients is tough to pass up, despite the obstacles that small business owners often face.
Being successful in the field of interior design requires more than just an eye for decoration, though.
Starting with the fact that interior designers require a degree from an accredited university (those without a degree are interior decorators ), they also need extensive knowledge of the materials, software applications, and structural and health codes required to build out a home or business. There is also the matter of business acumen, the ability to balance your artistic expression with the needs and wants of the client, and the time and paperwork it takes to actually start a business.
“Great design is the marriage of form and function in a balanced and harmonious whole—and staying on budget while doing it,” says Beverly Solomon of Beverly Solomon Design.
“So yes, the artist in me can often want to do things that are more challenging, out of the box, and often expensive than the client is looking for, but listening in order to understand what the client hopes you can achieve is the major skill you must develop.”
Solomon’s international firm is based just outside of Austin, Texas, on a historic farm where she lives and works with her husband, artist Pablo Solomon. She self-financed the creation of the business after working in sales and marketing for various big-name companies, including Ralph Lauren and Revlon.
Like how each interior design business has a different focus, clientele, and model—every state has different rules and regulations for opening a small business. If you've been wondering how to start an interior design business of your own, read on for the steps you'll need to follow.
As we mentioned, setting up an interior design business is a balancing act. As a creative, your ultimate goal is to create a business where you can use your eye for design on a daily basis. But before you can pursue your passion in the form of a legal business, you'll have to complete some tasks. Let's take a closer look at what you need to do to open an interior design business.
Once you're ready to start an interior design business, you'll first need to choose a business name and decide what kind of business entity you want to use. It may be tempting to put one or both of these things off, but they will be necessary to continue with the following steps of starting an interior design business.
Luckily, most interior designers use their own names as their business name, which may increase the likelihood that your name is available for use. Either way, you will want to check the availability of business names in the state where you'll be operating your interior design business, which can typically be done through the website of your secretary of state.
After confirming that the name you want is available, you'll likely be able to reserve this name for a specified time period while you gather the other items necessary to officially register your business.
At this stage of setting up your interior design business, you'll also need to choose a business entity, such as a sole proprietorship, LLC, or corporation. The business entity you choose will affect your company's business taxes, as well as the level of risk you're exposing yourself to if any legal issues arise.
It will also depend on whether you're starting your interior design business yourself or with a partner. We recommend consulting a business attorney if you're unsure which entity to choose, as they can guide you in the best direction for your specific needs.
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We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
The next step in starting an interior design business is to create your business plan. A business idea is just that, an idea, but your business plan shows exactly how you plan to take that idea and turn it into a profitable business. Not only is a business plan a vital tool for you to use as a roadmap when your interior design business is starting out (and continuing to grow), but it's also necessary if you plan to seek funding, as banks or investors will want formal documentation that you have a plan for how to turn a profit.
As such, your business plan will include everything from an overview of your company's leadership team and legal structure (which is why we chose a business entity in Step 1) to a market analysis and plan for how you'll market your own company, rundown of the exact types of services you'll offer as an interior designer, and (most importantly to potential investors) a financial plan with at least three years of financial projections.
If this is your first entrepreneurial endeavor, a business plan can seem overwhelming. The good news is you can use a business plan template or business plan software to make the process easier and ensure you're not leaving out any important information.
One part of the business plan for your interior design business that you can really build out is your plan for supplies, customers, and how you'll generate hype around your new interior design business so you can turn a profit.
Tips to connect with suppliers, customers, and media outlets
Interior design is an industry-driven by connections. You’ll need them to find your clients, to market yourself, and to establish fruitful relationships with suppliers of materials and furniture. And this is a key part of planning for your interior design business.
“I began my business by basically selling the art of my husband to high-end clients. When they began asking our design advice on various projects, I saw an opportunity,” says Solomon. “I decided that I wanted to use my expertise, experience, and connections from working with the major designers to start my own businesses.”
Solomon says that creating connections with the media has helped her in everything from marketing her interior design business to letting her set the price point.
“In art and design, you're selling your abilities, but what really sets the price you can get is your name recognition,” she says. “I knew from my days in sales and marketing that the place to focus was on name recognition. So we concentrated on building relationships with those in the media who could put our names out there.
“One of the secrets to our success has been working with writers, publishers, photographers, filmmakers, and producers to create symbiotic relationships that have resulted in their getting good information, interesting stories, illustrations, photographs, connections, and advice. In return, we've gotten literally hundreds of thousands of dollars of free publicity and built strong name recognition.”
Another common way to leverage connections is to form relationships with manufacturers in order to get the best deals on products or when buying in bulk. If you find yourself drawn to a company that builds in a similar style to your own, you’re in good shape—but don’t hamstring yourself, Solomon advises.
“Teaming up with various furniture stores and manufacturers can be as tricky as it is rewarding. Make sure that you're finding a good match, and not just a deal out of desperation. Pushing products that are absolutely the best for your client is a good thing, but pushing crap can ruin your reputation,” she says.
Thinking through your own strategy to form connections and market your interior design business should be included in your business plan, both for your own reference, as well as to show potential investors you're serious about your business.
The next step in starting your interior design business will be to use the name you secured in Step 1 and register your business. The registration process varies in each state, as does where and how you'll register your business .
Some states will allow you to register online while others require you to submit forms via mail. In most states, you'll likely deal with the secretary of state's office, while other states specifically have branches of government for small businesses.
You should also register your interior design business with the IRS and apply for an employer identification number, or an EIN. This can take a matter of minutes online and you could be approved right away.
There are a number of benefits of getting an EIN, even if it's not required for your business. For instance, it makes it easier to file your business taxes, get credit reports, hire employees, open a business bank account, and more.
You're now well on your way to setting up an interior design business. Once you've registered your business, you're ready to obtain the appropriate business licenses or permits. Like the registration process, this will also depend on where your interior design business will be located and which government regulations apply.
Depending on where you're located, you might need to meet specific interior designer license benchmarks as well: 24 states have passed interior design legislation to this effect.
Check with the Small Business Administration or your local chamber of commerce to see which city, county, and state permits you need to start your interior design business. You might also need a sellers permit and sales tax license, and if you have employees, you’ll need a federal employer identification number for tax purposes as well (if you didn't already set this up in the previous step).
The next step in starting an interior design business is to set up a business bank account and business credit card . Not only will this help you establish business credit, but it will also be vital to keep your business expenses separate from your personal spending for tax and funding purposes, as well as just more easily be able to manage your business finances.
While you may be tempted to go with the same bank that you have a personal account with, don't assume this is your best option. Business banking needs are different from your personal ones, and you'll want to consider things like minimum balance requirements, monthly fees, how many monthly transactions you'll be allowed, your need for ATM access, and more when choosing a business bank account.
The majority of businesses will benefit most from a business checking account , but if your interior design business starts making a profit and you can keep that money in a bank account instead of investing it back into the business, you may also consider a high yield savings account to help your money grow.
Likewise, you will want a business credit card that's separate from your personal one so you can easily keep track of your business expenses. Again, you'll want to consider what you need from a business credit card before choosing the best one for you.
Credit cards with a 0% introductory APR can be an especially appealing option for businesses that are just starting out and may not yet qualify for funding options. With these types of cards, you can purchase bigger items for your business upfront and pay them back without interest. Just make sure if you do opt for this strategy that you're aware of when the 0% APR offer ends and are confident that you can pay off your balance by that date.
As you consider the finances of your interior design business, you may find you need additional funding to get your business off the ground. The saying, "You need to spend money to make money," rings true for new businesses—especially in an industry like interior design where each project will require you to spend a significant amount of money on materials and supplies, while you may only receive payment once the job is completed.
Exploring your business loan options is a good idea to see what possibilities you have and what solution you can find for your business. You may find a startup loan is right for you, or a line of credit or invoice financing may be a better fit.
You should also think carefully about what parts of your business you will spend the money on, as well as how much you need and a plan for how you'll pay it back.
How to Iinvest in the basics
As Solomon advises, you don’t necessarily need to invest in an office space, especially when first starting out. There are other basics that you’ll need first, including:
Fabric samples and design accessories: Sample books with various styles, colors, and textures will help you and your client better understand each other’s vision for their space.
Room decor: Whether your office is on the main street in town or your home, having pieces from different manufacturers and collections gives your clients an understanding of your range, as well as ideas for their own project.
Professional group memberships: For example, joining the American Society of Interior Designers (ASID) gives you access to marketing and development advice and tools, professional education opportunities, and other benefits that depend on the regional ASID office. Mentorships and advice from those already established in the industry are especially valuable when you're first starting your interior design business.
LLC Formation
“Never forget that interior design is as much about how the client wants a space to feel as to how the client wants it to look ,” says Solomon.
This speaks to the fact that interior design is a unique business: It asks owners and directors to balance their own need for artistic expression with both practical logistics and the requests of the client. It's a complicated job, to be sure.
There’s plenty of the usual responsibilities that fall to small business owners in interior design—coordinating marketing efforts, hiring and managing employees, controlling inventory, and monitoring the supply chain. But there’s also the added element of creating the spaces in which people work, live, and play—a powerful form of expression that for many will be worth the challenges.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
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Starting an interior design business can be a daunting task, but with the right preparation and guidance, you can hit the ground running and create a successful business. The #1 Interior Design Business Plan Template & Guidebook provides all of the essential elements that help business owners create a professional, detailed and effective plan. This article will discuss the key components of this template, how to use it to your advantage and how it can help you create a winning business plan.
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1. describe the purpose of your interior design business..
The first step to writing your business plan is to describe the purpose of your interior design business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a interior design business:
Our mission at Interior Design is to provide a wide range of services to help clients create and maintain a personalized, beautiful, and functional home environment that fits their individual needs and lifestyle. We will take the time to get to know our clients, understand their needs, and help them develop a plan that meets those needs. We strive to be the go-to resource for customers seeking quality design solutions for their living spaces.
The next step is to outline your products and services for your interior design business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
If you don't have a marketing plan for your interior design business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your interior design business includes the following elements:
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
To run a Interior Design business, you will need the following equipment, supplies, and permits:
The second part of your interior design business plan is to develop a management and organization section.
This section will cover all of the following:
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup Costs
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a interior design business varies based on many different variables, but below are a few different types of startup costs for a interior design business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your interior design business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your interior design business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your interior design business plan:
Why do you need a business plan for a interior design business.
A business plan for an interior design business is necessary to clearly outline the goals and objectives of the business, create a detailed operational plan, and provide potential investors or lenders with a comprehensive understanding of the scope and structure of the business. It should include an executive summary, market analysis, financial projections, and an action plan. A business plan will help guide the long-term growth of the business and ensure that it remains on track to reach its desired outcomes.
You should ask a professional business consultant or an experienced interior designer for help with your interior design business plan. Additionally, there are resources online, such as online templates and step-by-step guidelines or video tutorials, that can provide useful information for your plan.
Yes, it is possible to create an interior design business plan yourself. While there is no one-size-fits-all template for creating a business plan, there are a few essential components that should be included in any effective plan. These essential components include: an executive summary, a market analysis, a company overview, a financial plan, and a marketing strategy. Additionally, make sure to research local regulations and industry standards to ensure that you’re in compliance with all requirements of your local area.
We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
The interior design services market in the United States is expanding due to the high demand of recreation and smart co-working spaces. This interior design business plan sample will help new business owners to meet growing market demands. Our business plan writers created this sample for a company launching in the City of Chicago.
Smart Spaces Designs (herein also referred to as “SS Designs” or “the company”) was incorporated in the Province of British Columbia on December 22, 2019 by Founder and Director of Designer, Ms. Donna Simmons. Headquartered in downtown Chicago , Illinois, U.S.A.; SS Designs provides premium interior architecture and design services to an array of commercial clients.
In 2007 Ms. Donna Simmons set out on a lifelong journey to pursue her professional passion, Interior Architecture and Interior Design. Over the past 15 years, Ms. Donna Simmons has amassed a plethora of experience as a leading interior architect and designer in Dubai, successfully completing a multitude of high profile projects, and being recognized as “Top Interior Designer” by International Design Awards in 2020.
Today, SS Designs operates as a lean enterprise, climbing the ranks with a focus on unparalleled quality and creativity. This plan is strategic in nature, distinguishing the company’s market position, growth plan, marketing strategy, operational process, and financial projections. The following is intended to be read in detail by SS Designs team members, and stakeholders. Over time the contents will be reviewed and revised, making way for the next layer of corporate strategy.
The interior architecture and design industries are primarily driven by the real estate sector. As such, the company is focused on positioning in areas well known for strong real estate markets including Chicago, Illinois, U.S.A.; Dubai, UAE and eventually Riyadh, SA. With fruitful connections in Dubai and Riyadh, Ms. Donna Simmons seeks to grow a versatile team in Chicago and service future operations in the middle east from U.S.A.. SS Designs is focused on positioning as a premium service provider and plans to compliment this position with superior service. More specifically, the company will provide industry-leading communications such as same day responses, same week proposals, and a detailed client discovery process.
This will all be achieved by curating a talented, respected and supported internal team. Ms. Donna Simmons cherises the hard working and diverse team that has been established to date, and is motivated to provide a promising, challenging and rewarding home for all SS Designs team members. New clients will be generated by continued referrals through the SS Designs ecosystem. Additionally, a digital marketing campaign will commence in August 2022 to further the company’s brand on social media, organic search and to begin structuring a lead capture and reporting process. This will all only be possible if the SS Designs team is capable of being self-motivated, executing on each team member’s specific duties, and coming together weekly and monthly to share wins, challenges and new ideas for growth. Ms. Donna Simmons intends to develop a corporate culture which inspires positivity, openness and mutual drive to provide the highest standards of quality and service to each client.
Business Overview
Smart Spaces Designs is a boutique Interior Architecture and Design services firm based in beautiful Chicago, Illinois, U.S.A. The company operates with four team members, while planning to expand the volume of staff consistently over the next five years. SS Designs prides itself on offering high-quality architecture and design, founded on a pursuit to develop innovative and custom fitted solutions. Ms. Donna Simmons believes that each project is unique and deserves its own individual approach; therefore, the company ensures that each project provides guests with a purposeful experience of their respective space.
Mission Statement
Our mission is to be innovators in the interior architectural space for all Chicago consumers.
Vision Statement
Our vision is to leave each client with a space that is practical, customized and simplifies commercial client’s space.
Goals and Objectives
SS Designs operates in two industries: Interior Architecture and Interior Design. Interior Architecture being the company’s primary focus. The following market analysis discusses recent performance in each industry, including future forecasts.
Interior Architecture Industry
Companies in this industry are primarily engaged in the planning and design of buildings and other structures. Consequently, industry revenue is tied to the health of the real estate market. For instance, as corporate balance sheets improve, many businesses expanded their storefronts and offices, increasing demand for services. Positive long-term trends such as an aging, urbanizing and a progressively wealthy population, have helped spur demand for residential construction, especially in metropolitan areas, which boosted revenue for architectural services. In addition, an increase in public-private partnerships for infrastructure projects, under which the financing and operation costs are shared between the government and private sector, raised architectural revenues.
Steady growth in the American real estate market is projected to drive industry revenue, which is expected to increase an annualized 3.0% to $5.8 billion over the four years to 2026. American architects will benefit from anticipated increases in corporate profit and disposable income, as these drivers will propel residential and nonresidential construction. Further, industry growth will hinge on the popularity of environmentally conscious designs. Higher projected oil prices, along with increased regulations regarding the reduction of carbon emissions, will incentivize energy-efficient structures, aiding architectural firms that specialize in planning environmentally friendly homes and commercial structures.
Key External Drivers
Value of Non-residential Construction
Trends in institutional and commercial developments are major drivers of industry revenue. The value of non-residential construction serves as a proxy for commercial and industrial developments. Services related to these types of developments generate over 50% of industry revenue. Demand for non-residential construction is sensitive to employment, consumer spending, corporate profit and interest rates.
Value of Residential Construction
Demand for the construction of single- and multifamily residential units influences demand for industry services. In total, projects related to residential construction account for an estimated 17.9% of revenue in the American Architects industry. Demand for residential construction is sensitive to economic and financial conditions, such as employment, consumer disposable income and interest rates.
Corporate Profit
A high share of industry revenue comes from commercial and industrial construction. To pay for or finance a building project, a company must first have a healthy balance sheet. Therefore, a higher corporate profit margin coincides with higher levels of commercial construction.
Housing Starts
Housing starts measure the number of new, privately owned housing units started in a given year. The number of housing starts has a direct influence on industry revenue, with an increase in the number of housing starts positively affecting the industry.
Overnight Rate
The overnight rate is the rate at which major financial institutions can borrow and lend short-term funds to one another. Changes in the overnight rate affect institutional lending to builders and developers. During periods of low rates, builders can more easily afford construction projects. In turn, increased construction boosts demand for architectural services, as architects are needed in the design stages of residential and nonresidential building projects.
Industry Outlook
Revenue for the American Architects industry is expected to increase at an annualized rate of 3.0% to $5.8 billion over the four years to 2026. Growth in corporate profit and consumer spending is expected to provide the framework for an improved American real estate market, which will boost demand for industry services. Architecture firms will benefit from growth in non-residential construction, which is the industry’s largest market. The value of nonresidential construction in Canada is expected to increase at an annualized rate of 4.4% over the four years to 2026, bolstering demand for the design and planning of office, industrial, retail and other commercial construction projects.
Another force driving the industry’s growth is the low interest rate environment resulting from a recovering economy after the COVID-19 (coronavirus) pandemic. Low interest rates make it easier for companies or individuals to borrow money to finance new building projects, due to the lowered cost associated with paying back the loan. Downstream buyers will be more willing to take on new projects and hire industry operators. In addition to other improving economic drivers, industry demand is expected to continue to flourish.
Increased Investment will Boost Demand
Rising investment in large-scale commercial building developments, most notably offices and hotels, is expected to boost industry revenue. These types of community projects will continue to improve industry revenue because architectural services will be needed in their design. In addition, an increase in the popularity of mixed-use properties that contain retail, office and residential components, will promote the design of innovative buildings, increasing demand for architecture in metropolitan regions. Although short-term lending rates are expected to slightly increase over the four years to 2026, interest rates are still expected to remain relatively low. This will incentivize investors to put cash into real estate developments in Canada, which will continue to offer attractive returns compared with other forms of investments.
In the residential market, urbanization and an aging population will likely lead to an increase in high-rise condominium and apartment construction, especially in major cities such as Calgary, Toronto and Vancouver. For example, the 81-storey M3 Condo, which is currently in the construction process and is scheduled for completion in the latter half of 2023, is a new modernly designed luxury condo that is going to be a part of the M City community in the heart of Mississauga, ON. This building is designed by industry player IBI Group Inc., and is going to become the tallest tower in Mississauga by a significant margin. Demand for architectural services in the housing construction market will also increase, aiding small industry operators that specialize in home design and planning. Moreover, the value of residential construction is expected to continue rising, growing at an annualized rate of 0.6% over the four years to 2026.
Competition
Industry revenue growth and an increasing profit margin will bring more operators into the industry. The number of industry operators is forecast to increase at an annualized rate of 1.9% to 7,766 companies over the four years to 2026. Meanwhile, industry employment is also projected to increase, rising at an annualized 2.8% to 28,656 people during the same period, as greater demand for architectural services will lead to more hiring. The industry is labour intensive, and businesses will find it difficult to find a cost-efficient substitute for knowledgeable employees. As a result, wages are expected to increase an annualized 2.9% to $2.4 billion over the four years to 2026. Since revenue growth is projected to be faster than wages, profit is also anticipated to marginally increase over the next four years.
An increase in industry operators will also lead to heightened competition. Many of the industry’s largest companies also serve as engineering and construction companies, offering clients a one-stop shop for design, procurement and construction services. Small and medium-sized industry operators will experience direct competition with multi disciplined design, engineering and building companies, making it difficult for architecture-only firms to secure contracts for large-scale building projects. The industry’s largest companies will benefit from offering a broad range of predesign and other design services, including planning, interior design, landscape architecture and engineering services.
LEED Certification
However, an increasing number of companies will offer LEED-certified green building designs. Canada has more square metres of LEED-certified space than any nation except for the United States, according to the American Green Building Council. An increase in demand for environmentally conscious designs and potential savings on energy costs will further drive industry revenue growth over the next five years, especially for operators that specialize in green and LEED design.
Market Segmentation
The majority of revenue generated in the American Architects industry is through nonresidential architectural services. The four subcategories within this market include educational projects, office building projects, healthcare institutions and retail and restaurant projects. The products and services offered by industry operators are not expected to change much due to the COVID-19 (coronavirus) pandemic. However, demand for certain products and services may fluctuate during this time of economic uncertainty. For example, healthcare institutions and advisory services may endure a slight increase in demand due to the importance of healthcare institutions and advisory services for renovations. However, recreational facilities and other nonessential projects may endure a short period of decreased demand.
Office Buildings
Demand for architectural services for office building construction and renovation has grown in line with the overall American economy during the past five years. Office construction is principally determined by growth in the service sector workforce. The office segment comprises a variety of different sectors, including technology, finance and communications. Typically, demand peaks during periods of strong economic growth because the need for space rises as new businesses enter the market and existing companies expand operations.
Retail and Restaurants
Architects are also contracted to design retail buildings, including shopping malls, restaurants, bars and fast-food outlets. As a result of the adverse economic effects from coronavirus, the retail and restaurant segment has endured many changes to its architectural design structure that incorporates social distancing protocols and other changes to ensure these sectors can operate safely and effectively. This, in turn, has slightly boosted demand for new retail and restaurant spaces, which ultimately benefited the Architects Industry in Canada.
Healthcare Institutions
Healthcare facilities, which include hospitals, clinics, doctors’ offices, rehabilitation centres and general health centres, are typically owned by nonprofit corporations. Consequently, healthcare construction is usually funded privately or through a combination of public and private financing. Therefore, trends in private nonresidential construction investment, as well as demographic shifts in the number of elderly consumers in Canada, are strong indicators of demand for architectural services related to healthcare construction. This segment has endured a slight decrease as a share of industry revenue over the past five years.
Educational Institutions
Architects are commonly contracted for new construction projects, additions and renovations on educational buildings, such as schools, colleges and universities. Most education is publicly funded in Canada, with relatively few private schools at the primary, secondary and postsecondary levels. Therefore, educational construction projects are largely funded by the government, with budgetary priorities determining demand for new school construction and existing structure repair and renovation. Educational institutions are estimated to account for 9.8% of industry revenue. Due to the well-established educational institutions already in place, this share of industry revenue has decreased slightly over the past five years.
Other Non-Residential Buildings
Other categories within the non-residential market are architectural design services related to hotel and convention centre projects, recreational building projects and industrial construction projects. Improving employment, rising disposable income and higher consumer spending have led to an increase in commercial building activity and architectural service revenue. However, trends in oil and commodity prices determine industrial and commercial development in resource-rich provinces such as Alberta.
Single-Family Residential Projects
Conversely, single-family projects are expected to account for 3.3% of industry revenue. This segment has slightly decreased over the past five years, as multifamily buildings are growing more in popularity across major cities such as Toronto, Vancouver and Montreal.
Multifamily Residential Projects
The provision of services to multifamily projects is estimated to account for 14.6% of revenue. Architectural revenue from multifamily residential projects in Canada has increased over the past five years, as American real estate stability was driven by strong underlying fundamentals. A growing, aging, urbanizing and progressively wealthy American population has boosted residential real estate demand and increased revenue for architectural design services related to residential construction. For the majority of the past five years, strong revenue growth in this market occurred in major cities such as Toronto, Vancouver and Montreal.
Other services commonly include advisory services related to urban planning, project site master planning, interior design, landscape design and engineering services. Demand for these functions may be driven by private or public sources. This segment has increased over the past five years, as external competition increases and industry operators need to rely on other services for another revenue stream. This category is expected to account for 27.6% of industry revenue.
US Interior Design Industry
Over the past five years, the Interior Designers industry in Canada has exhibited moderate success, reflected through its revenue growth and solid operational expansion. Demand from downstream markets, predominately the residential construction sectors, has buoyed revenue growth during times of volatile commercial conditions. During the COVID-19 (coronavirus) pandemic, large drops in corporate profit, nonresidential construction and consumer spending all attributed to a large decline in revenue in 2020. Fortunately, demand from the commercial sector played its role in supporting revenue growth, as the industry relies on a diverse client base, including corporate offices, shopping malls, hotels, restaurants and hospitals.
The residential market has also been supported by rising residential construction, per capita disposable income and the number of households earning $100,000 or more per year. However, nonresidential markets experienced more volatile growth resulting in only a marginal rise over the past five years. Industry revenue is forecast to grow an annualized 2.3% to $2.1 billion over the five years to 2027. Industry revenue is anticipated to rise at a slightly slower rate than the previous five-year period in part due to a slowdown in the housing markets. Although residential construction and residential renovation expenditure are both forecast to expand, they are expected to rise at a slower rate than the previous five years. In addition, a slight decline in corporate profit is expected to further restrict the industry’s growth. Major commodity prices are expected to improve over the next five years, encouraging more demand for non-residential construction markets and driving general economic growth. Despite the slight slowdown in revenue growth, the industry’s profit margin is forecast to slightly improve over the five years to 2027.
Demand from non-residential building construction. The commercial sector accounts for the most demand for interior design services. Typical projects from the commercial sector include corporate offices, restaurants, hotels, airports and hospitals. When these clients are expanding their facilities, commercial construction is projected to rise, increasing demand for professional interior design services. The value of non-residential building construction is expected to increase in 2022.
Industry Landscape
The industry is highly fragmented. According to Statistics Canada, almost 75.0% of industry establishments are nonemployers. The industry’s low barriers to entry have enabled many small non-employers to enter the industry, which has prompted industry enterprise growth. The number of industry enterprises is expected to grow at an annualized rate of 1.9% to 7,449, most of which are non employing enterprises. Similarly, industry employment is expected to increase at an annualized rate of 2.1% to 6,153 workers during the same period. The difference in growth between the two can be attributed to the increasing popularity of nonemployers that are able to charge lower prices. Despite employment rising at a quicker pace than enterprises, the industry’s average wage has increased over the past five years. This rise in the average wage can be mainly attributed to the amount of skill required by each employee.
With revenue growth and slight changes in wage costs, the industry profit margin, measured as earnings before interest and taxes, is expected to remain stagnant at 20.3% of revenue in 2022. This stagnation is primarily due to the coronavirus pandemic, which caused economic drivers to suffer in 2020 and the resulting economic recovery after the peak of the pandemic have caused those drivers to recover.
Due to profit stagnating, more interior designers are strengthening their product portfolio by including design layout services, which typically produce a higher margin. It should be noted that profit varies significantly depending on whether a company specializes in residential or commercial interior design. Projects for the residential sector tend to be more profitable, as commercial projects are typically prone to high price-based competition to secure contracts.
Industry Life Cycle
The Interior Designers industry in Canada is in the mature phase of its life cycle. Industry value added (IVA), which measures an industry’s contribution to the overall economy, is expected to grow at an annualized rate of 2.8% over the five years to 2027. Comparatively, the American economy is anticipated to grow at an annualized rate of 1.7% during the same period. Industry operators’ relatively standardized skill set and product portfolio, coupled with low technological innovation, is indicative of an industry in the mature life cycle stage.
Products and services have remained essentially the same, despite some industry operators gaining a competitive advantage with diversified portfolios, such as providing layout design expertise. Thus, price-based competition has intensified as operators attempted to secure favourable contracts with businesses, among other non-residential downstream markets. Conversely, rising demand for industry services from healthcare facilities, coupled with many new businesses entering the market over the next decade, may offer an opportunity for future industry growth. For example, industry operators are commonly hired by hospitals, doctors’ offices and extended care facilities to design and decorate patient rooms, entrances and waiting rooms. However, rising interest rates could hamper demand for both commercial and noncommercial construction, which may limit industry revenue growth.
Demand from businesses has decreased from 2020 since companies were more focused on staying operational than changing the interior of their locations. As economic conditions continue to improve, demand from each segment is forecast to grow.
Businesses (50.4%)
Establishments in this industry are commonly hired by architectural firms that outsource the services of interior designers. These designers, in turn, help plan and arrange the interiors of office, residential or commercial construction projects. Due to the scale and variety of these projects, a high portion of revenue from this market comes from architectural firms. Businesses can directly employ interior designers to create and style office spaces in a way that best uses space, safety and light while projecting the company’s corporate philosophy to employees and customers. Retail and commercial clients can hire interior designers to plan the interior of their shops and stores. For these projects, designers must be cognizant of safety issues, pedestrian traffic and local government building code requirements. A sharp decline in the value of non-residential construction in 2020 has driven a decline in demand for architectural services, which has shifted industry revenue away from commercial clients and toward residential clients, as interior designers are commonly hired by architecture firms. However, as the economy began improving after the peak of the pandemic, demand for the industry’s services is forecast to steadily increase over the five years to 2027.
Individuals and Households (30.4%)
Sales to individuals and households are driven by a range of economic factors, including unemployment and per capita disposable income levels. Throughout the majority of the past five years, a decline in unemployment, combined with a rise in disposable income, have led to an increase in demand for interior design projects, as individuals have more money to spend on non discretionary services such as a household’s design. Households typically spend the most on interior design work when they first move into a house. However, over the past five years, national residential expenditure on renovation has driven demand from this market. As a result, this segment’s share of total industry revenue is expected to rise during the five-year period. The proportional increase is not only the result of a rise in revenue for household projects but is also due to declines in other markets such as business clients.
Other (11.3%)
These clients include international companies, foreign governments and other nondomestic players. The main service provided for these clients is often merchandise sales. Collectively, these customers account for an estimated 11.3% of industry revenue. This segment’s share of industry revenue has slightly increased over the past five years, primarily due to the decreases in demand from businesses and corporations.
Government and Public Institutions (7.9%)
Interior designers also provide services to government-owned or operated institutions such as hospitals, universities and the offices of federal, provincial and municipal public institutions. Government clients are expected to account for 7.9% of total industry revenue in 2022. Within this market, one bright spot has been the healthcare sector, which has become a growing source of income for interior designers, as Canada’s aging population leads to greater demand for healthcare services. As a result, hospitals and other health providers have expanded capacity and hired interior designers to plan these new spaces, making them accessible for the elderly. With overall demand for municipal building construction rising over the past five years, this increased this segment’s share of industry revenue in 2022.
Government Regulations
Regulations for the Interior Designers industry in Canada are still being developed. Canada does not have widespread legislation to regulate this industry and currently, only Nova Scotia has a Practice Act, while six other provinces have Titles Acts. A Practice Act regulates who is permitted to perform the services provided by a particular industry. It requires industry participants to obtain a license before they can perform their services. A Titles Act regulates the use of a title. One must meet the criteria set out by the licensing body to use a specific title, for example, certified interior designer. However, Titles Acts do not prevent individuals from performing a particular service if they are not certified; they just manage the use of state-regulated titles. These acts are there to ensure that the public is aware of the education, experience and qualifications needed to become a registered service provider in the hope that people would turn to licensed providers as opposed to non licensed ones.
Operators in this industry, however, must adhere to health and safety precautions, local building codes and laws and environmental regulations put in place by various state legislatures and international organizations. For example, the International Code Council develops international building codes related to structural elements of a building, use and occupancy classifications, interior finishes and interior environment and accessibility. While these codes are non-binding and can be modified by provincial governments, they aim to outline the best practices within the industry, which are used as benchmarks for further legislation.
As this profession grows, the regulation of this industry is expected to increase and become more streamlined. For example, Interior Designers of Canada (IDC), a professional association for industry operators representing more than 5,000 members, proclaims that it wishes to have stringent regulations all across Canada, whereby all associations should have professional requirements for their members to adhere to. This would make it compulsory for industry participants to become members of a professional association and adhere to all its laws and regulations.
Additional Certifications
Products and Services
SS Designs provides two primary services: interior architecture and interior design services. The following section summarizes each sub-service, and it’s average pricing:
Detached Building Architecture
For homes larger than 3,000 square feet. Designing a brand new space from scratch.
Commercial Interior Architecture
This is our primary service. Developing a new commercial space based on our client’s needs, size of space, their requirements to sync with city building codes.
Residential Interior Architecture
Working with architects and builders to create spaces which meet the client’s needs, and connects exterior concepts with interior design.
Commercial Interior Design
Design interior spaces by selecting finishes and materials to match the client’s brand guidelines, and vision for the space.
Residential Interior Design
Design interior spaces by selecting finishes and materials to match the client’s requirements, and vision for the space.
Project Management
Creating a project schedule and timeline for development, construction and budgetary requirements. Work with contractors, suppliers and tradespeople to ensure deadlines are met, and materials arrive on time.
Pricing Model
Competitive Advantages
SS Designs will execute on the following competitive advantages:
Prompt Quoting and Service
SS Designs prioritizes prompt quoting and quick turnaround of proposals and service. By being responsive, clients will feel prioritized and satisfied even on the first stage of the service. Eventually, SS Designs will adopt augmented reality tools that will allow clients to set preliminary designs and get rough estimates and proposals. A standard proposal pack with estimated rates is always available, alongside the semi-annual catalog which will be provided to all prospective clients.
Software Utilization
Ms. Simmons and Ms. Thompson are both experts in 3DS Max and Corona Software for 3D rendering and creating design proposals. These are two of the most advanced software applications in the industry, and are currently not used by any competitors in the Chicago market. The difference in quality between 3DS Max, Corona Software and the competition is staggering, and therefore the company will continue operating with these applications to help differentiate from the competition.
Creative Culture
There is an ongoing global trend on space saving due to the increase in condominiums in metro areas, including in Chicago, Dubai and Riyadh. Japanese and Scandinavian space-efficient designs are in demand, such as the Kanso concept of design. SS Designs has this at the core of its design philosophy. By adding unique and creative designs to this, the product becomes more attractive to the target markets. This is also a manifestation of the creative and professional working environment that Simmons is implementing into its business culture.
Positioning
SS Designs positions its services at the upper to mid tier of pricing in the market. By incorporating unique and contemporary concepts to interior architecture and design, the company can charge a higher price than the competition. By positioning the company in leading real estate markets such as Chicago, Dubai and eventually Riyadh, SS Designs will access an array of target customers that seek high-caliber concepts and designs. The company will meet this market with appropriate positioning; communicating premium quality and service through all marketing channels.
Key Success Factors
Use of Advanced Architectural Planning Tools
Interior architecture is more advanced and specific due to the integration of advanced rendering and planning tools, starting with AutoCAD in the 90s up to 3d and rendering tools such as 3D Max and Corona Software. Computerized 3D models are now the norm when it comes to design. SS Designs will incorporate the latest architectural technologies to all services.
Competent and Established Team
Having competent and accomplished architects, interior designers, and design consultants is important in terms of acquiring clients, especially in the mid and high end sectors in North America and the Middle East. SS Designs takes pride in employing the best architects who have an eye for good design and are able to connect better with clients. Ms. Heba will also ensure that team members get competitive salary and benefits packages, as well as a positive and creative work environment.
Marketing Channels
Catering to a mid to high end market in North America and the Middle East, SS Designs must strike a balance between traditional and digital marketing. Effective traditional marketing strategies include presentations, scheduling meetings, showrooms, virtual showrooms, and the distribution of seasonal catalogs. Digital marketing strategies include search engine optimization, pay per click ads and community building and engagement on social media.
Understanding of Target Market
North American and Middle Eastern markets are diverse in terms of culture, economic situation, and, in the case of the UAE and Saudi Arabia, religious beliefs. North American architecture focuses on modern and sustainable design, though interior architectural designs vary. Meanwhile, the UAE and Saudi Arabia are more extreme in their preferences, such as luxury, futuristic and sometimes traditional designs. As such, it is imperative for the Simmons team to understand the requirements of each local market.
Effective Project Management
Generally speaking project management is the process of managing the whole project; the programme, the budget, the execution and all the individual team members required to successfully complete a project. A project manager within the luxury residential sector is responsible for ensuring that every element of the project, from start to finish, is planned for, communicated to all stakeholders, reviewed, approved and delivered safely within the timeframe and on budget. Effective project management is a key success factor that must always be upheld by SS Designs.
Sales and Marketing Plan
This sales and marketing plan includes traditional and digital marketing strategies. In order to meet the company’s scale and expansion plans it is imperative to execute on the following:
Target Customers
The company’s target customers are segmented into the five following groups:
Hospitality
Finance and Law
Health Care
Residential
Key Channels
Key channels are segmented into two groups: traditional and digital marketing channels.
Traditional Channels
Seasonal Catalogs
Seasonal catalogs have been an effective marketing channel and will continue to be utilized. Every 6 months SS Designs will create a Spring & Summer catalog and Fall & Winter catalog. These catalogs provide a unique way for clients to experience the SS Designs brand, outside of consuming content through a desktop or smartphone screen. Furthermore, this provides the company with a non-traditional way of marketing its services, and building an engaged community.
Onsite Visits
SS Designs will conduct visits to construction sites, real estate developers, offices, property managers and other potential clients. Seasonal catalogs will be distributed, and in person meetings held. Prior to such in person meetings the company will utilize outbound phone calling and email metrics to make an effort to arrange such gatherings beforehand. Developers will then refer Simmons to their prospective tenants, which will eventually grow into paying clients.
Trade Shows / Community Events
SS Designs will also take part in trade shows and events in Chicago, Illinois, across the U.S.A., and eventually in the UAE and Saudi Arabia.
Digital Marketing Channels
Social Media
SS Designs currently utilizes Linkedin and Instagram to host a community of clients, and followers. Both of the social media platforms will continue to be utilized moving forward; however, the company will launch a YouTube channel and Facebook page by February 2023. These channels are an excellent place to remind past clients of the work the company is doing, and to cultivate new leads and awareness of SS Designs. The company will work with a third party marketing form to post at least 3x a week across Linkedin, Instagram and Facebook. Publishing videos on YouTube will be completed less frequently.
Search Engine Optimization
Once the updated website is completed there will be monthly work completed on additional landing pages and blog articles. This approach will increase the volume of website pages, and increase the sites ranking on search engine results pages (SERPs). The company may work with BSBCON or another firm to establish specific landing pages that will reflect the target audience.
Pay-Per-Click (PPC Ads)
Pay-per-click (PPC) Ads or “paid ads” are utilized across social media channels and search engines alike. For SS Designs, PPC Ads will focus primarily on Google to rank for relevant search queries. Google Ads are an excellent way to reach new audiences. At first glance, they can seem expensive, however when the lifetime client value of new leads is considered, and the referrals generated from such leads, Google Ads often result in being the most direct marketing channel for most modern companies.
Email Marketing
Email marketing continues to be an effective digital marketing channel. SS Designs will continue to collect the contact information of new leads and clients, then record such information into a respective customer relationship management system (CRM). Either MailChimp and/or HubSpot will be utilized as a CRM. Each quarter, the Simmons team will discuss ideas for value based content to include in the monthly email marketing campaign. Instead of “selling”, the company will focus on educating email recipients, and positioning SS Designs as a market leader that is building awareness to its community.
Key Performance Indicators
The following table outline key performance indicators (KPIs) which will be followed in order to track the performance of each silo within the company:
SWOT Analysis
Outbound Sales Approach
Interior Architecture Project Process
Phase 0 (Pre-Project)
Discovery Call
Initial Proposal
Contract Agreement
Initial Invoice
Create the File Project
Initial Team Meeting
Project Schedule Proposal
Understanding Client Preferences
Phase 1 (Concept Presentation)
Commence the Concept Presentation
Concept Presentation Meeting
Modifications to Concept Presentation
Confirmation to Proceed
Phase 2 (Design Presentation)
Commence Phase 2
Phase 2 Presentation Meeting
Feedback on Modifications
Execute on Modifications
Approval of Design Presentation
Phase 3 (Technical Drawings)
Create Tenant Improvement (TI) Package
Tacking the TI Package to the City
Prepare Specifications
Review Application Package with the City
Resubmit to the City
Phase 4 (Project Budget)
Receive Supply and Trades Quotations
Submit Formal Project Budget
Signature for Specifications & Project Budget
Submit the Final Project Package to Client & Contractors
In the situation the client seeks to retain SS Designs for project management services, a separate contract would be established.
Health & Safety
WorkSafe enforces the Occupational Health and Safety Regulation. It contains requirements and standards that all workplaces must meet to promote occupational health and safety, as well as to protect workers from work-related risks to their health, safety and well-being. General rules such as fire safety, occupational first aid, evacuation and rescue must be met and enforced by Smart Spaces Designs The company will also look into supplemental private health insurance for employees on top of the public health care plan. The company also intends to provide vehicle and accident insurance, as architects and interior designers will be traveling often, either by car or public transport, to project sites and client meetings.
Equipment & Inventory
SS Designs will utilize the following equipment and tools to successfully execute on operations:
Digital Hardware and Software
Interior Design/Architectural Supplies and Tools
Transportation Vehicle
Office Furniture and Fittings
This section outlines the company’s current and future locations:
Headquarters – Chicago, Illinois, U.S.A.
SS Designs’ headquarters is located at 120 S Morgan St #725, Chicago, IL 60607, United States. This is a strategic location because of its close proximity to the financial district, and downtown Chicago. By being close to major corporate offices and hubs, SS Designs will be able to keep track of upcoming real estate developments and visit potential clients needing to revamp their offices. Also, the team can easily invite clients to the company headquarters, situated in the iconic Chicago convention center. The office has workstations and a conference room for internal team and external client meetings.
Year 3 Expansion (2025) – Dubai, U.A.E.
SS Designs is planning its expansion to Dubai, UAE. The key industries in Dubai with tremendous growth potential include technology and finance. With foreign and local investors pouring in investments in this tax-friendly and accessible country. Dubai Internet City has over 130,000 square meters of prime commercial office space, in which over 1,400 companies with over 10,000 workers are based. There are 25 low, mid and high-rise office structures here, occupied by multinational companies such as Facebook, LinkedIn, Tata Consultancy, Oracle, as well as UAE-based companies such as Ducont. It is also adjacent to Dubai Media City and Dubai Knowledge Park, which will introduce the company to expanding sectors, as well as high-earning professionals who seek premium interior architecture and design services for their own residences.
Year 5 Expansion (2027) – Riyadh, Saudi Arabia
By 2027, SS Designs intends to capitalize on the projected growth of the Saudi Arabian economy. Riyadh is an important financial, business and manufacturing center. Major banks are headquartered in the city, as well as numerous private companies. Every publicly quoted company is compelled by local laws to have an office in the city. The Business Gate in the Qurtuba district of Riyadh comprises 110,000 square meters of office space, 5 star hotels with 350 rooms, 4 star hotels with 250 rooms and 5,000 square meters of retail space, as well as an exhibition and convention center with conference and banqueting facilities. This area has easy access to offices, including Alcatel Lucent, Sony and Samsung.
Risk Analysis
Currently, Smart Spaces Designs has two management team members including:
Donna Simmons
Chief Executive Officer
Ms. Simmons is the CEO for SS Designs and she plays a major role in executing strategies to ensure the growth of the company. Her passion for working smart translated into designing smart work spaces for her clients. She obtained her management skills from collaborating with various clients and projects in the last 7 years.
Marylou Thompson
Senior Designer
Ms. Thompson has worked with Ms. Simmons in various design projects for the last 5 years. She has valued her client’s ideas and has worked well with them without compromising her design standards. Her network in the design industry will help the company bring in more projects and increased revenues.
Key Personnel
Operations Director
Administrator
Senior Architect
Intermediate Designer
Junior Designer
Graphic Designer
Recruitment Plan
Recruitment, Hiring, Onboarding
Receiving New Candidates / Recruitment
We primarily post job postings on Linkedin, Indeed, and also receive referrals from industry contacts.
Hiring Process
Onboarding a New Team Member
The following financial plan was conservatively developed including a pro forma income statement, cash flow statement and balance sheet.
Pro Forma Income Statement
Pro Forma Cash Flow Statement
Pro Forma Balance Sheet
Get in touch with us or visit our office
By: Author Tony Martins Ajaero
Home » Business Plans » B2C Sector
Are you about starting a home decoration business? If YES, here is a complete sample home decoration business plan template & feasibility report you can use for FREE .
Okay, so we have considered all the requirements for starting a home decoration business. We also took it further by analyzing and drafting a sample home decoration marketing plan template backed up by actionable guerrilla marketing ideas for home decoration businesses. So let’s proceed to the business planning section.
If you are interested in starting a home decoration business, you can be rest assured that there is no limit to the fortune you can make from the industry as long as you are creative and have good networking skills. If you are looking for a business to start as an entrepreneur with a design and creativity background, then you can consider starting your own home decoration company.
Although a home decoration company can be operated from home, especially if it is being managed by an individual, but it pays to operate from an office facility. The truth is that you would need an office space to be able to run this type of business if indeed you want to work for corporate organizations and even government agencies.
Just ensure that you secure an office decent enough to host the caliber of clients you will be dealing with. An office in the business district of your city might just be ideal for you – but all the same, you don’t need to go beyond your means to get a very expensive office space. It is advisable to start your business small and then grow it big.
If indeed you are interested in starting a home decoration company, then you will surely find this comprehensive business plan very helpful.
1. industry overview.
Interior decorators, also known as home decorators, work with homeowners or business owners to furnish and adorn an interior space according to their preferences. The decorator must usually work within a budget and order the necessary design elements for their clients.
The truth is that interior design is a multidimensional vocation that covers activities such as conceptual development, communicating with the stakeholders of a project, management and of course the execution of the design (project).
Home decoration companies are responsible for planning the design of both living and commercial facilities such as hotel, motels and lodges; they have mastered the art of turning their ideas or concept into reality. The projects that home decorators handle can be broad in scope.
It could range from structural modifications to the selection of matching furniture, curtains or blind, wallpaper and lighting et al.
The Interior Designers industry is indeed a big industry that has experienced consistent growth and innovations over the last five years. However, the industry is projected to experience marginally better conditions over the next five years.
As long as the housing market is expected to improve strongly, there will also be corresponding growth for residential interior designers as existing home sales and housing stats make up ground over the five-year period.
So also, increase in corporate profit, growth and expansion of corporate organization will open up business opportunities of interior design companies because there will be need for organizations to remodel their facilities to meet up with changing trends.
Statistics has it that the Interior Designers industry has a low level of market share concentration. For instance, in 2016, the top four leading interior decoration companies accounted for less than 10.0 percent of the industry’s total revenue. It is fact that market share concentration has not changed significantly in the last five years.
It is important to clearly state that the Interior Designers industry is a highly fragmented industry with thousands of players, of which only a small percentage of the players generated an annual revenue exceeding $1.0 million. A large number of players in interior designer industry are self-employed because of the nature of the job they do and of course the low startup capital required to start the business.
The interior design industry is indeed a very large industry and pretty much active in all the parts of the world. Statistics has it that in the united states of America alone, there are about 102,848 registered home decoration cum interior design companies responsible for employing about 127,467 and the industry rakes in a whooping sum of $13bn annually.
In 2014 alone, the federal government of the United States of America spent a total sum of $11,270,048 on Interior Designers. During the period in review, they awarded 437 interior design contracts to 77 interior design companies, averaging a value of $146,364 per company.
The industry is indeed highly competitive and of course a growing industry with steady growth rate of 3.0 percent annually. The interior design industry is very open to any aspiring entrepreneur who has the required skills to start his or her own home decoration business.
As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition.
The interior design industry will continue to blossom because more and more households and corporate organizations are beginning to realize that somehow, they would need the services of home decorators to help give their facility the needed look befitting of their organization or personalities.
From all available statistics, it is safer to say that the industry is growing steadily despite the competitive nature of the industry.
Lastly, some of the factors that encourage entrepreneurs to start their own home decoration company could be that the business is easy to set up and the startup capital is indeed affordable; you can actually start your own home decoration business from the comfort of your house.
All you need to do is to create an office somewhere in your house. People usually pay you for the result you can deliver as it relates to helping them design their facility to their expectation.
James & Janell® Home Deco, Inc. is a U.S based home decoration (interior design) company. We have been able to secure a standard office facility in a busy business district in Las Vegas – Nevada. We are a world class home decoration company that is set to compete in the highly competitive interior design industry not only in the United States market, but also in the global market.
James & Janell® Home Deco, Inc. will be involved in the all aspects of home decoration cum interior design services such as Residential interior design, Commercial (Hotels and Lodges) interior design, Merchandise sales, home decorating consulting services and other related services.
Our business goal is to become one of the leading home decoration companies in the United States and we will make sure that every home decoration job that we do can favorably compete with the best in the industry. Our workers are going to be selected from a pool of talented and highly creative home designers in and around Las Vegas – Nevada and also from any part of the world especially from Milan and Paris as the business grows.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading home decorators in the United States and throughout the globe.
At James & Janell® Home Deco, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
James & Janell® Home Deco, Inc. is founded by two siblings James Creflo and his twin sister Janell Creflo. They both graduated from The Interior Design School of London and they have over the years garnered the required experience that will position them to become a major force to reckon with in the industry in the United States of America and across the globe.
James & Janell® Home Deco, Inc. was established with the aim of maximizing profits in the interior design industry. We want to compete favorably with leading home decoration and interior design companies in the United States which is why we have put in place a competent quality assurance team that will ensure that all our designs and related services rendered meet and even surpass our customers’ expectations.
Our products and services are listed below;
Our Business Structure
James & Janell® Home Deco, Inc. is a home decoration company that intends starting small in Las Vegas, but hopes to grow big in order to compete favorably with leading companies in the industry both in the United States and on a global stage.
At James & Janell® Home Deco, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
Human Resources and Admin Manager
Client Service Executive
Chief Executive Officer – CEO:
Creative Director:
Sales and Marketing Manager
Accountant/Cashier:
Home Decorators/Interior Designers (4)
James & Janell® Home Deco, Inc. hired the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured home decoration business that can favorably compete in the highly competitive interior design industry in the United States and the world at large.
Here is a summary of the SWOT analysis that was conducted on behalf of James & Janell® Home Deco, Inc.;
Our central strength is no doubt the power of our team; our workforce. We have a team of creative and highly proficient home decorators cum interior designers, a team with excellent qualifications and experience in various niche areas in the interior design industry.
Aside from the synergy that exists in our carefully selected home decorators, we have a robust relationship with key stake holders in the real estate industry and of course our designs and services will be guided by international best practices.
As a new home decoration company in Las Vegas – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from the government and other top profile clients in the already saturated and highly competitive interior design industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
The opportunities in the interior design industry is massive considering the number of individuals and corporate organizations acquiring new properties and would need the services of home decorators to give the facilities facelift. As a world class home decoration company, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power hence lesser houses would be purchased. Another threat that may likely confront us is the arrival of a new home decoration company in same location where our target market exists and who may want to adopt same Business model like us.
Although there are top flight institutions where people go to study interior designing, but it common to find people who don’t have formal training running their own home decoration business. This is what accounts for the high number of sole proprietorship in the interior design industry.
Aside from on-the-job training, most home decoration cum interior design companies usually offer short training (could be in – house) in specific areas such as presentation skills and IT packages.
As a home decorator, you are expected to keep tabs with new trends that are always coming up in the industry. Most interior designers ensure that they follow the traditions or patterns that are synonymous to a region. For instance, as a home decorator in the Arab world, your designs are expected to follow the traditions and pattern in the region.
There is a wide range of both corporate and individual clients who cannot successfully move into their new homes/facilities without hiring the services of home decorators. As a matter of fact, without the services of home decorators or interior designers, the interiors of facilities won’t be as beautiful and welcoming as we can see these days.
We will ensure that we develop strategic pacts with property developers, property management companies, local builders, realtors and home improvement firms. This will give us several options to generate revenue for our company.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and individuals who we know can’t do without our services. We have conducted our market research and survey and we will ensure that all our home decoration services is well accepted in the marketplace. Below is a list of the people and organizations that we will market our services to;
Our competitive advantage
The competition in the interior design industry is getting stiffer by the day, you have to be highly creative and come up with appealing designs and concepts in order to survive in the industry. The industry is indeed profitable and at the same time a highly competitive industry; it enjoys strong demand as people continue to purchase or move into new apartments and remodel old ones.
Clients will only hire your services if they know that they can get nothing but the best from you. We are quite aware that to be highly competitive in the interior design industry means that you are not only expected to deliver consistent and highly creative designs, but you must be able to meet set targets.
Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient interior designers, a team with excellent qualifications and experience in various niche areas in the interior design industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
We are not ignorant of the fact that there are stiff competitions in the interior design industry; there are loads of home decorators and interior designers jostling for contracts which is why we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the real estate market and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of James & Janell® Home Deco, Inc.
Our goal is to grow James & Janell® Home Deco, Inc. to become one of the leading home decoration companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Las Vegas – Nevada but also in other cities in the United States of America.
James & Janell® Home Deco, Inc. is set to make use of the following marketing and sales strategies to attract clients and win home decoration and interior decoration contracts;
Sources of Income
James & Janell® Home Deco, Inc. is established with the aim of maximizing profits in the interior design cum real estate industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of our clients.
James & Janell® Home Deco, Inc. will generate income by offering the following home decoration services and other related services;
One thing is certain, there would always be households and corporate organization who would need the services of home decorators or interior designers whenever they purchase new home, office facilities or are moving into a new facility .
We are well positioned to take on the available market in interior design/real estate industry and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow our home decoration company to enviable heights.
We have been able to examine the home decoration market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for James & Janell® Home Deco, Inc., it is based on the location of our business and of course the wide range of our services and target market;
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same home decoration services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market.
We are set to become the number one choice for both corporate and individual clients in the whole of the Las Vegas and beyond which is why we have made provisions for effective publicity and advertisement of our Home decoration company. Below are the platforms we intend to leverage on to promote and advertise James & Janell® Home Deco, Inc.;
If you are conversant with the interior design industry, you will realize that the pricing structure ranges from per hour billings to fixed fee to even per square foot billing. Most interior decoration companies adopt all the available pricing systems as it applies to the nature of the job or project they are expected to execute.
At James & Janell® Home Deco, Inc. we will adopt all the pricing systems as is obtainable in the industry but we will ensure that we keep the prices of our services a little below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services.
In addition, we will offer special discounted rates to all our customers at regular intervals. We are aware that there are some one-off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
The payment policy adopted by James & Janell® Home Deco, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that James & Janell® Home Deco, Inc. will make available to her clients;
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
Starting a home decoration company is cost effective because on the average, you are not expected to acquire expensive machines and equipment.
What you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furnish and equip the office, the amount needed to pay bills, purchase relevant software apps, promote the business and obtain the appropriate business license and certifications. Basically, these are the areas we are looking towards spending our startup capital on;
Going by the report from the market research and feasibility studies conducted, we will need about two hundred thousand (200,000) U.S. dollars to successfully setup a medium scale but standard home decoration company in the United States of America.
Generating Startup Capital for James & Janell® Home Deco, Inc.
James & Janell® Home Deco, Inc. will be owned by two siblings James Creflo and his twin sister Janell Creflo. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
It is easier for businesses to survive when they have steady flow of business deals/customers patronizing their products and services.
We know that if we continue to come up with highly creative and unique home decoration cum interior design concept and excellent job delivery for both corporate organizations, government agencies and households, there will be a steady flow of income for the organization.
Our key sustainability and expansion strategy are to ensure that we only hire creative, competent and selfless interior designers, create a conducive working environment and employee benefits for our staff members. In the nearest future, we will give our most dedicated and prolific employees the opportunity to be part owners of the business via owing shares in the company.
We know that if we implement our business strategies, we will achieve our business goals and objectives in record time.
Check List/Milestone
Marketing plan for an interior design services (examples).
Get a watermark-free, fully customizable marketing strategy in our business plan for an interior design services
Developing an effective marketing strategy is essential for interior design services looking to stand out in a bustling industry.
From harnessing the power of digital portfolios to engaging with clients through immersive design storytelling, this article outlines key tactics for creating a brand identity that resonates and fosters enduring client relationships.
Arm yourself with the insights to devise a marketing plan that not only showcases your unique design vision but also transforms casual browsers into loyal patrons.
And, if you're seeking a ready-to-use marketing strategy that's fully customizable, be sure to explore our business plan template designed specifically for interior design ventures .
A marketing strategy for interior design services is your blueprint for attracting clients and building a reputation for excellence in the design world.
It involves identifying your target clientele, determining the best channels to reach them, and establishing a brand identity that resonates with their aesthetic and functional needs. Essentially, it's about crafting a narrative that showcases your design expertise and how it can transform a client's space into something spectacular.
Why do people develop a marketing strategy? Because it's the difference between being a hidden gem and a sought-after design authority.
With a strategic marketing plan, every effort you make in promoting your services is intentional and aligned with your business objectives, such as enhancing your portfolio visibility, securing high-value projects, or building partnerships with suppliers. For an interior designer, this could mean leveraging social media platforms, engaging in networking events, collaborating with architects, or offering free design workshops to showcase your skills.
The advantages of a robust marketing strategy, similar to what you would find in our business plan template tailored for interior design services , are significant. It helps you use your budget and time effectively, focusing on activities that are most likely to attract your ideal clients. It distinguishes you in a crowded market by clearly articulating your design philosophy—whether that's minimalist elegance, sustainable living spaces, or innovative commercial environments. A solid strategy also provides a framework for tracking your progress and refining your approach as necessary, ensuring that your marketing initiatives keep pace with industry trends and client expectations.
So, should you create a marketing strategy if you're launching a new interior design venture? Absolutely.
Starting your interior design business without a marketing strategy is akin to navigating a maze without a map. You might find your way eventually, but it will be less efficient and potentially more costly. A clear strategy from the outset empowers you to make informed decisions that resonate with clients right from the start.
Is it useful for you? Undoubtedly, especially if you aim to build a client base that not only seeks your design expertise but also becomes ambassadors for your brand.
A marketing strategy enables you to better understand the desires and challenges of your clients, tailor your services to address those needs, and communicate with them in a way that builds trust and loyalty. It's not just about landing a single project; it's about creating a brand that clients are excited to work with and eager to refer to others.
Developing an effective marketing strategy for your interior design services is about showcasing your unique style and expertise to attract clients who appreciate your vision.
It's important to be strategic, authentic, and proactive. Here's a 10-step action plan to create a marketing strategy that resonates with potential clients and sets your interior design services apart.
Step | Action | Details |
---|---|---|
1 | Identify Your Ideal Clientele | Understand who your services are for, considering factors like income level, style preferences, and the type of spaces they want to transform. |
2 | Scope Out the Competition | Research other interior designers, noting their strengths and how your services can offer something different or better. |
3 | Establish Clear Goals | Set specific objectives for your marketing efforts, such as increasing project inquiries or enhancing your portfolio's visibility. |
4 | Select Marketing Channels | Choose the right mix of channels like Instagram for visuals, LinkedIn for professional networking, and a blog to share design tips and insights. |
5 | Plan Your Content Strategy | Organize your content in advance, including before-and-after project photos, client testimonials, and design trend discussions. |
6 | Utilize Visual Platforms | Make the most of platforms like Pinterest and Instagram to showcase your portfolio and design aesthetic. |
7 | Optimize Your Online Presence | Ensure your website reflects your brand, is easy to navigate, and includes a portfolio, services, and contact information. |
8 | Offer Value-Added Content | Create and share content that provides value, such as design guides, how-to videos, or webinars, to establish your expertise. |
9 | Network and Collaborate | Build relationships with suppliers, contractors, and related businesses, and consider collaborative projects to expand your reach. |
10 | Analyze and Refine | Regularly review the effectiveness of your marketing activities and be prepared to tweak your strategy for better results. |
Here's a table we have prepared for you, with 20 actionable and specific marketing initiatives that you, as an interior design service provider, could implement to showcase your expertise and attract new clients.
Marketing Initiative | Description |
---|---|
1. Launch a Portfolio Website | Develop a professional website that highlights your past projects, design philosophy, and services offered. |
2. Utilize Social Media | Share before-and-after photos, design tips, and project updates on platforms like Instagram, Pinterest, and Facebook. |
3. Offer Free Consultations | Provide a complimentary initial consultation to attract potential clients and showcase your value. |
4. Host Workshops | Organize design workshops or webinars to educate and engage with your target audience. |
5. Partner with Home Decor Stores | Collaborate with local stores for referrals and to offer exclusive discounts to your clients. |
6. Implement a Referral Program | Encourage satisfied clients to refer new customers by offering them a service discount or a small gift. |
7. Collaborate with Real Estate Agents | Work with agents to stage homes for sale and gain referrals for new homeowners needing design services. |
8. Engage in Local SEO | Optimize your website for local search terms to appear in search results when potential clients are looking for designers nearby. |
9. Collect and Showcase Testimonials | Display positive client feedback on your website and social media to build trust with prospects. |
10. Create a Google My Business Profile | Set up a profile to improve your visibility in Google’s services, including Maps and Search. |
11. Leverage Email Marketing | Send out newsletters with design trends, project highlights, and special offers to keep in touch with clients. |
12. Publish a Design Blog | Share insights, trends, and tips on interior design to establish yourself as an industry expert. |
13. Offer Seasonal Promotions | Provide special discounts or package deals during holidays or seasonal changes. |
14. Develop a Loyalty Program | Reward repeat clients with exclusive perks or discounts on future services. |
15. Sponsor Local Events or Charities | Gain visibility and goodwill by supporting community events or charitable causes. |
16. Run a Contest or Giveaway | Host a contest for a free room makeover or design consultation to increase engagement and capture leads. |
17. Utilize Influencer Marketing | Partner with home decor influencers to showcase your work to a broader audience. |
18. Offer Virtual Design Services | Expand your reach by providing online consultations and digital design mock-ups. |
19. Create an Inspiring Instagram Feed | Curate a visually appealing feed that showcases your design aesthetic and attracts followers. |
20. Provide Educational Content | Share your knowledge through e-books, guides, or online courses to help clients understand the value of professional design. |
Below are three different (very concise) examples of marketing strategies tailored for a High-End Residential Interior Design Firm, a Budget-Friendly Online Interior Design Service, and a Sustainable Interior Design Consultancy.
If you need something more developed, go check our business plan template for interior design services .
Strategy | Description |
---|---|
Portfolio Showcasing | Develop a visually stunning online portfolio that highlights your most luxurious projects. Use professional photography and include testimonials from high-profile clients to build credibility and attract an affluent clientele. |
Personalized Client Experiences | Offer bespoke design experiences that cater to the unique tastes and needs of each client. Use this personalized approach in your marketing to differentiate your firm and emphasize the exclusive nature of your service. |
Strategic Networking | Build relationships with luxury real estate agents, architects, and home builders. Attend high-end industry events and consider joining exclusive clubs to network with potential clients and collaborators. |
Strategy | Description |
---|---|
Cost-Effective Packages | Offer a range of design packages at different price points to cater to budget-conscious clients. Promote these packages through social media advertising and email marketing campaigns targeting first-time homeowners and renters. |
Interactive Design Tools | Implement user-friendly online tools that allow clients to visualize their space and play with different design options. Highlight these tools in your marketing to show the value and convenience of your service. |
Customer Reviews & Referrals | Encourage satisfied clients to leave positive reviews on platforms like Houzz and Google. Create a referral program that rewards clients for bringing new business to your service. |
Strategy | Description |
---|---|
Eco-friendly Branding | Develop a strong brand identity that reflects your commitment to sustainability. Use your website and marketing materials to educate clients on the benefits of eco-friendly design and the sustainable materials you use. |
Collaboration with Green Brands | Partner with suppliers and manufacturers who share your values and offer sustainable products. Feature these collaborations in case studies and blog posts to showcase the positive impact of your design choices. |
Workshops and Speaking Engagements | Host workshops on sustainable living and interior design, and seek opportunities to speak at industry events. Use these platforms to position yourself as an expert in sustainable design and to network with potential clients. |
You can also read our articles about: - how to fill a Business Model Canvas for your interior design services - how to segment the customers of your interior design services - how to make a competition study for your interior design services - how to become an interior designer (guide)
Do you enjoy modifying spaces and have a good sense of aesthetics? Starting your own interior design company in India could be a profitable endeavour. The thriving real estate and construction industries, together with an increasing awareness of the value of well-designed places, offer numerous options. Here is a step-by-step guide to getting your interior design business off to a good start.
Table of Contents
1. market research and niche identification.
Conduct thorough market research to understand your target area’s demand for interior design services. Identify your niche. It can be residential, commercial, hospitality, or a specific style like contemporary, traditional, or sustainable design.
Clearly define the range of services you will offer, covering initial consultations to full-service design. It is advisable initially to consider specializing in a specific type of design or catering to a niche market to stand out.
Choose a name that reflects your style and values. Ensure the name is unique, easy to remember, and not already in use by another business.
Read: How to Name a Business
The next step is to write a detailed business plan for your interior design business. Outline your business goals, target market, and unique selling propositions. Develop a detailed financial plan, including startup costs, operating expenses, and projected income.
Register your business with the appropriate authorities. Choose a business structure (sole proprietorship, partnership, LLP, or private limited company). Obtain any required licenses or permits for operating an interior design business in your locality.
Develop a strong portfolio showcasing your previous work, including renderings, floor plans, and before-and-after images. If you’re just starting, consider offering your services to friends or family at a discounted rate in exchange for permission to use the projects in your portfolio.
Create a professional website with a portfolio, services offered, and contact information. Leverage social media platforms like Instagram and Pinterest to showcase your work and engage with potential clients.
Establish a blog on your website to showcase your expertise and thought leadership. Share design tips, trends, and case studies to engage and attract your target audience.
Attend industry events, trade shows, and networking sessions to connect with potential clients and collaborators. Collaborate with suppliers, contractors, and other professionals in the industry to expand your network.
Read: Top Interior Design Companies in India
If feasible, establish a physical studio space that reflects your design style and provides a welcoming environment for client meetings. Ensure you have the necessary design software, hardware, and other tools to execute your projects efficiently.
Determine how you’ll charge for your services – hourly rates, flat fees, or a combination. Consider including a detailed breakdown of costs, ensuring transparency with clients. Research industry standards and local market rates to remain competitive.
You need to identify and invest in industry-standard design software such as AutoCAD, SketchUp, or Adobe Creative Suite. Explore project management tools like Trello or Asana to streamline workflow and collaboration. Also, consider 3D rendering software to present designs effectively to clients. In addition, invest in reliable accounting software to manage finances efficiently.
Build a library of material samples to showcase to clients. Establish relationships with suppliers and manufacturers to access a variety of high-quality materials. Ensure your samples reflect diverse styles and cater to different budgets.
As your business grows, consider building a team of talented individuals with diverse skills. Recruit professionals such as architects, draftsmen, and project managers to complement your design expertise. Clearly define roles and responsibilities within your team to ensure smooth project execution.
Develop a strong brand identity, including a memorable logo and consistent branding across all platforms. Implement digital marketing strategies such as search engine optimization (SEO), content marketing, and online advertising to increase your online visibility.
Draft clear and comprehensive contracts for your clients, outlining the scope of work, payment terms, and project timelines. Communicate your design process and any additional charges for revisions or scope changes.
Keep meticulous records of your income and expenses. Set aside funds for taxes and invest in professional accounting services if needed.
Interior design trends evolve, so stay informed about the latest materials, styles, and technologies. Consider joining professional organizations such as the Institute of Indian Interior Designers (IIID). Attend trade shows and exhibitions to discover new products and technologies.
Invest time in continuous learning through workshops, courses, and industry publications to enhance your skills. Participate in design competitions to challenge yourself and showcase your creativity. Seek mentorship or collaboration with seasoned designers to gain insights and refine your design approach.
Read: Best Online Interior Design Courses
Build strong relationships with your clients by understanding their needs and preferences. Encourage client feedback to improve your services and ask for referrals to expand your client base.
Do i need a formal education to start an interior design business.
While a formal education in interior design is beneficial, it’s not mandatory. Practical experience, a strong portfolio, and continuous learning are equally valuable.
Consider factors such as your experience, the complexity of projects, and local market rates. Hourly rates, flat fees, or a combination can be used, and transparency in pricing is crucial for client trust.
Register your business, choose a suitable business structure, and obtain any necessary licenses or permits. Consult with a legal professional to ensure compliance with local regulations.
Establish a strong online presence with a professional website and active social media profiles. Utilize digital marketing strategies, collaborate with other professionals, and attend industry events to network.
Define a unique selling proposition (USP), specialize in a niche, build a strong portfolio, and focus on exceptional customer service. Emphasize your distinct design style and approach.
Invest in industry-standard design software (e.g., AutoCAD, SketchUp) and project management tools (e.g., Trello, Asana). Maintain a well-equipped workspace and regularly update your material library.
Draft clear and comprehensive contracts outlining the scope of work, payment terms, and project timelines. Communicate your design process and any additional charges for revisions.
Networking is crucial for building relationships with potential clients, collaborators, and suppliers. Attend industry events, join professional organizations, and actively engage with your community.
Subscribe to design publications, attend trade shows and exhibitions, and participate in workshops. Actively follow design influencers and continuously seek inspiration from various sources.
Keep meticulous records of income and expenses, set aside funds for taxes, and consider professional accounting services. Regularly review and adjust your financial plan as your business grows.
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Your interior design business plan will help you: 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 ...
Interior Design Business Plan Outline. This is the standard interior design business plan outline which will cover all important sections that you should include in your business plan. Executive Summary. Mission Statement. Vision Statement. Objectives. Financial Considerations. 3 Year profit forecast.
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 ...
This can include resumes, licenses, credit history, legal documents and more to help support the validity of your plan and back up your credibility. How to write a business plan for interior design step-by-step. 1. Pick a specialty. Narrow down your niche to stand out in the market.
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.
01. Define your business goals. Determine your vision for your interior design business and create a business plan. Clarify your target market, design style and the types of projects you want to undertake. Establishing a clear direction will help you focus your efforts and attract the right clients.
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.
These steps will help you turn dreaming into doing and help you avoid waking up to a world of issues. 1. Get an Education. Many states require certification for becoming an interior designer; the most sought-after is obtained by passing the National Council for Interior Design Qualification, or NCIDQ, exam.
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.
Get the most out of your business plan example. Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from ...
Organization and Management: Outline your company's organization and management structure. Detail the roles and responsibilities of your team members. Services or Products: Describe your interior design services in detail. Highlight how your offerings benefit your clients and how they differ from the competition.
Here is a free business plan sample for an interior design services. January 29, 2024. 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.
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.
8.4 Sales Funnel Optimization: Chart the captivating journey from discovery to delight for your customers, optimizing every twist and turn of the sales funnel to deliver maximum efficiency and satisfaction in the interior design experience. Download this business plan. 9. Operational Plan.
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 ...
Step 3: Register your interior design business and get an EIN. The next step in starting your interior design business will be to use the name you secured in Step 1 and register your business. The ...
If you have a passion and flair for design, you may be able to turn your hobby into a lucrative entrepreneurship. This article discusses the step-by-step process of running a successful interior design business. 1. Build your portfolio. Your portfolio showcases how your work can cater to potential clients' tastes.
The #1 Interior Design Business Plan Template & Guidebook provides all of the essential elements that help business owners create a professional, detailed and effective plan. This article will discuss the key components of this template, how to use it to your advantage and how it can help you create a winning business plan. Written by: Newfoundr.
A business plan covers every single aspect of your business from finances, to operations, and administration, to hiring and firing, service development, and messaging. Marketing plans focus solely on the elements of marketing. Cash flow and financial awareness are vital for a business plan but are not usually included in a marketing plan.
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.
Written by Black Sheep Business Consulting. The interior design services market in the United States is expanding due to the high demand of recreation and smart co-working spaces. This interior design business plan sample will help new business owners to meet growing market demands. Our business plan writers created this sample for a company ...
Business incorporating fees in the United States of America will cost - $750. The budget for liability insurance, permits and license will cost - $3,500. Acquiring an office space that will accommodate our employees for at least 6 months (Re - Construction of the facility inclusive) will cost - $150,000.
Below are three different (very concise) examples of marketing strategies tailored for a High-End Residential Interior Design Firm, a Budget-Friendly Online Interior Design Service, and a Sustainable Interior Design Consultancy. If you need something more developed, go check our business plan template for interior design services.
20 Steps to Start an Interior Design Business. 1. Market Research and Niche Identification. Conduct thorough market research to understand your target area's demand for interior design services. Identify your niche. It can be residential, commercial, hospitality, or a specific style like contemporary, traditional, or sustainable design. 2.