interior design business plan in india pdf

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Interior Design Business Plan Example

MAY.05, 2017

Do you want to start an Interior Design business plan?

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

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

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

Executive Summary

2.1 about the business.

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

2.2 How Will the Business be Managed? 

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

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

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

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

2.3 Customers of Interior Design Company

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

• Residential Communities
• Educational Facilities
• Event Spaces

2.4 Business Target

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

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

Company Summary

3.1 ownership .

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

3.2 Why the Interior Design company will be started

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

3.3 How the Interior Design company will be started

Step1: Develop a Plan

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

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

Step2: Get Funding

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

Step3: Pick a Location

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

Step4: Go Online

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

Step5: Promote and Market

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

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

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

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

• Space Planning

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

• Decorative Selections 

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

• Furniture & Accessories

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

• Art Selections

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

Marketing Analysis of Interior Design Company

Excellent work.

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

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

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

5.1 Market Trends

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

5.2 Marketing Segmentation

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

5.2.1 Residential Community

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

5.2.2 Offices

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

5.2.3 Educational Facilities

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

5.2.4 Event Spaces

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

5.3 Business Target

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

5.4 Product Pricing

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

Marketing Strategy

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

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

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

6.1 Competitive Analysis

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

6.2 Sales Strategy

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

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

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

7.1 Company Staff

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

7.2 Average Salary of Employees

Financial plan.

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

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

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

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

• How do I start my own interior design business?

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

• What are the 7 elements of interior design?

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

• How do Interior Designers get clients?

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

• What are the types of markets for interior design?

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

Download interior design business plan sample in pdf

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

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

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

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

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

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

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

What's in the article

Why do I Need an Interior Design Business Plan?

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

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

Helping you Understand your Business

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

Your interior design business plan will help you:

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

Helping you Explain your Business to Other People

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

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

Interior Design Business Plan Top Tips

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

Write it for an Outsider

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

Keep it Concise

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

Be Realistic

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

Know your Market

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

What to Include in your Interior Design Business Plan

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

Executive summary

Elevator pitch

About the business owner

Products and services

Business structure

The market: Customers, competitors and market overview

Section 7: 

Sales and marketing strategy

Business operations

• Business expenses

Section 10: 

Financial forecasts 

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

1. Executive Summary

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

Your executive summary should include:

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

2. Elevator Pitch

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

It should include:

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

3. About the Business Owner

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

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

4. Services you’ll Offer

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

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

5. Business Structure

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

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

6. Market Summary

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

Your market summary can be split into a few sections:

Target customers

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

Competitors

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

Market research

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

7. Sales and Marketing Strategy

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

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

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

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

8. Business Operations

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

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

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

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

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

Your financial forecasts should include:

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

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

About The Author

Freddie Chatt

Related posts, 5 difficult questions that homeowners always ask interior designers, digital product ideas for interior designers: how to make a passive income, interior design trends: what the experts think will inspire our homes, mid century modern: the complete guide.

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How to Write a Business Plan for Interior Design

Writing a business plan is the first step in starting your own interior design firm. Find everything you need to start writing from the experts at Houzz Pro.

As an interior designer, you know that every successful project needs a great plan. The same goes for your interior design business. Even if you’re just starting out with your design business, or if you’re revamping your current business model, knowing how to write an interior design business plan will guide you on your path to success and help move your business forward.

If you’ve never written a business plan before or need help fine tuning your current plan, it can be a bit overwhelming to know where to begin and what to include. Our guide will give you a comprehensive overview of how to write a business plan for interior design, including what an interior design business plan entails, why you need a great plan, which sections and information to incorporate, and last but not least, step-by-step details on how to write your business plan. Read on or click a link below to take the next step—and your business to the next level:

• What is a business plan?
• Why are business plans important?
• Components of a business plan
• How to write a business plan step-by-step

What is an interior design business plan?

An interior design business plan is a written document detailing what your business is all about, what you’d like to achieve and how. It’s an outline and guide of what your business offers, your operations and financial plan, your business goals and what you plan to do to accomplish them. No two interior design businesses or plans are alike—and that’s a great thing! Your interior design business plan will be entirely unique to you, your particular business market, specialities and what you desire to achieve. 

Why are interior design business plans important?

Writing an interior design business plan is fundamental to creating a successful interior design business, or for revising the strategy and direction of your current business. It’s said that a dream without a goal is just a wish—and the same goes for your interior design business plan. “Generally speaking, creatives—specifically, interior designers—are very good at designing but don’t know how to run a business,” says designer Ann Ueno. “So their businesses fail within the first to three years, or they’re not profitable.” A good business plan will help distinguish the strengths of your business and identify the potential pitfalls of certain decisions. Your plan will also help you know how you stand apart from your competitors and your strategy to compete in the market. 

Not having a business plan can be a recipe for failure in your interior design business. External audiences—such as a potential business partner, or bank if you’ll be securing a loan—will want to review your business plan, so it’s important that you have one firmly in place. “I definitely believe the old Henry Ford adage of ‘Failing to plan is planning to fail,’” says Deana Duffek of Duffek Design & Development. Without a plan, you can easily lose focus, time and money by investing in the wrong areas without thinking them through, or miss out on opportunities when they arise. Your interior design business plan helps you stay on track with your vision, goals and how you will achieve them, so you’ll always know where you’re headed.

Components of an interior design business plan

Now that you know what an interior design business plan is and why it’s important, the next step in how to write an interior design business plan is knowing exactly what you need to include in your plan. This section will explain the essential components of your business plan and the necessary information that should be included in each one. While you may have additional areas you might need to incorporate that pertain to your particular business, the below are a great place to start and are fundamental for any business plan.

Executive summary

Your executive summary will give an overview of what your interior design business is about and how it will be successful. Here, you can include your mission statement, which describes the purpose and overarching goal of your business: what’s driving you to do what you do in serving your clients? When writing your interior design business plan, your executive summary will also include a brief description of your services. Do you offer commercial or residential design? Restoration or consultancy services? Be specific, but not overly detailed just yet. Lastly, you’ll also include basic information about your company’s ownership, the number of employees and types of roles you employ, your location, and high-level financial information.

Company overview

The company overview is where you’ll start to provide more detailed information about your interior design business. What are the interior design needs your business will address? What types of clients will you serve? What are the strengths of your business that help give you a competitive advantage in your particular market? Your company overview is where you can share all about “who” you are and what makes your company great.

When you know the strengths and focus of your interior design business, it’s easier to know what types of services you’ll be offering. The services section is where you really get down to brass tacks describing exactly what you’ll be selling and providing to your clients.

Market analysis

Your interior design business plan needs to outline where it stands in the market, which will require some research and analysis. This section will include the latest information and trends about your industry, your target market, and who your competition is in your area, so you know how to make your business stand out.

Customer analysis

Your customer is unique to your business, the services you offer, and where your business is located. When writing your interior design business plan, get creative with this section when imaging your ideal customer. Who are they and what are their needs and pain points? How much do they earn and what are they likely to spend? Knowing your customer is essential to the success of your business, so be as detailed as possible with your customer analysis.

Marketing plan

When you know who your interior design customer is, you’re able to target them more precisely in the market. Take the knowledge you gained from your customer analysis and use it for your marketing plan. You’ll also want to share about the strengths and services you want to highlight in your marketing when writing your interior design business plan.

Operations plan

The operations plan section of your business plan will describe the physical operation needs of your interior design business and how you will keep your business successfully in motion. What is your physical location? What kind of equipment does your business use? What production systems, workflows and quality checks will you have in place? How many employees do you need to grow? Here you’ll also include information about your inventory needs for design materials and samples, as well as details about your suppliers.

Management plan

Your management plan talks about the people behind your business. Who runs the company? Who is on your management team and staff? You’ll also want to include the strengths of key players in your management team and company. If you’re a sole proprietor, then you can simply describe who you are, your background and the roles you’ll be playing in your business.

Financial plan

Your financial plan will be an important component when writing a business plan for interior design. Here’s where you’ll want to add as much detail as possible about your current financial picture, including financial statements and balance sheets, as well as future forecast projections.

Lastly, the appendix of your business plan for interior design will include documents to support the details you provided in your plan. 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

There’s a reason why people say “there are riches in niches.” Focusing on a specific niche for your interior design business will help you zero in on your customer and stand out amongst a smaller field of competitors. Here are just a few specialities to consider for your business:

• Residential interior design
• Corporate or commercial interior design
• Hospitality interior design
• Restaurant design
• Sustainable design
• Lighting design
• Kitchen design
• Exhibit design
• Space planning consultant services
• Interior design consultancy
• Color specialist
• Feng shui interior design 
• And many more

2. Define services provided

Know exactly what you’re offering your clients

After you’ve selected your niche, you can now define the interior design services you’d like to provide your clients. Will you be providing designs only or full-service design, supply and installation? Will you focus on designing for certain rooms, such as the kitchen or bath? Will you offer remote and in-person consultations? Other considerations to make when selecting your services include: your particular strengths as a designer, what your clients in the market are desiring, what you’re capable of providing and what will contribute to your bottom line.

3. Determine pricing model

Choose an attractive pricing model for maximum profitability 

Before determining your pricing model, you need to review your local market, current prices and what your competition is charging. From there you can choose from the following options for your pricing model:

• Hourly rate
• Flat fee per project
• By square footage
• Cost plus (where the client pays the net value of furnishings and materials plus your markup) 
• Retail (where the client pays the retail cost for items; your fee is the difference between the net and retail price)

4. Brainstorm marketing strategy

Questions to help define your strategy and target your customer

When forming your marketing strategy for your interior design business plan, go back to your market and customer analysis and ask yourself: who is my customer, what do they want and how can I stand out in the market? Here are a few more key items and questions to consider: 

• How will you reach your customer? Which social media platforms are they using? Which websites do they visit? Is your customer more likely to respond to an email or should you market yourself at tradeshows? 
• What is your marketing message? What does your customer need and what’s going to make them choose you?
• Lastly, you need to include how you’ll be managing your marketing campaigns. Will you be hiring an outside agency for your marketing? Will you be advertising yourself? What budget will you be allocating for marketing? 

Interior designers surveyed by Houzz in 2022 reported that marketing and advertising comprised the second highest expense in starting their own business (second only to technology — more on this below). Knowing this will help you create and financially plan for a solid marketing strategy when writing your interior design business plan.  

5. Brainstorm operations strategy

Know who and how you’ll manage your business

Here are key operations items you’ll need to consider for your interior design business plan: 

• Facilities: Your business will need the right space to facilitate your operation and grow, so make sure to assess the physical needs your business requires now and in the long run. This can include everything from the size and layout of your workspace to the kinds of storage you might need for organizing your interior design materials . 
• Production system: Successful businesses have great systems in place. You’ll want to consider your standard operating procedures, as well as workflows for various aspects of your business (from onboarding a client to completing and invoicing for a project ). 
• Quality management: Managing the quality of your services is key to your business and reputation, so you need to put checks in place to make sure you’re continually reviewing your performance. 
• Technology and resources: Assess the technology requirements of your business today and in the future. According to a survey conducted by Houzz in 2022, interior designers reported that technology costs were the No. 1 most expensive part of starting their own business. Today’s leading designers use technology to stand out from the competition, bring designs to life and keep their businesses organized. Every designer should prioritize technology that will help provide the best client experience, and thinking through those tech needs early on can help you budget for those expenses. You’ll also want to take into account your human resources and staff you’ll need, suppliers you’ll be working with, and the physical materials required including everything from design samples to office supplies.

6. Set financial goals

Create a plan to achieve your financial objectives

The main financial goal of any business is profitability. In order to be profitable your revenue must exceed your total expenses, so it’s important to keep this as a top financial goal to keep your business sustainable. After profitability, you’ll want to track your profit margins and compare them to your industry average. This will help you see where you may need to trim your expenses in order to maximize profit. 

In the day-to-day operation of your business, healthy cash flow is another objective to maintain. This will help you know how much liquid cash you have to cover your basic operating expenses, or if you’ll need a loan or line of credit to float your business. The majority (63%) of interior designers surveyed by Houzz in 2022 used their own personal savings to get started, but your situation might be different. Learn more about the different ways to fund your interior design business .

When writing your interior design business plan, you’ll also want to consider bigger long-term financial goals you might have, such as expanding your workspace, hiring new employees and what steps you’ll need to take to accommodate this growth in your business.

Now you know how to write a business plan for interior design from start to finish, which will help keep your business on the path to success—now and in the long run. If you’d like to keep reading, check out How to Price Interior Design Services .  

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The Ultimate Guide to Start Interior Design Business in India

Interior designing is one of my personal favourite professions, and I find it to be a very exciting business opportunity. In fact, those who have a natural affinity for style, fashion, glamour, painting, creativity etc. and possess great imaginative skills, for interior designing is a wise and apt choice of profession. With the initiative from the Government of India, the housing sector is expected to grow rapidly and that is going to create a lot of opportunities for interior designing companies in India. Interior designing as a business offers huge opportunities for growth and hence if you want to start an interior designing business in India, then probably this is the right time to get started. But if you are clueless about how and where to start then here’s the post checking.

What happens most of the time is even though you have the required skills and the determination; you do not know where to start and how to start an interior design business. In fact, until and unless you belong to a family where many of your family members are in business, it is hard for common men and women to complete the basic regulatory documentation and set up a new business. Even though the process of registering a business is not as complicated today, not knowing where to start and how to get it right is very common.

But, if you are really determined to start your own interior design business in India and make a good living out of it, then take detailed note of the points that I am sharing in this post. Today, I am going to share with you everything worth knowing about how to start an interior design business in India. And I am sure, that once you finish this post from start to end, you will get a lot of clarity on:

• How to set up an interior designing firm
• What are the various types of options for company formation?
• How to set up a team for interior business?
• How to get your first and subsequent clients?
• How to market and scale your business?

I have seen many of my known pals who are talented but gave up their dreams of going into a field that they were passionate about. This is wrong, because, one should choose a carrier that he or she is truly passionate about. For instance, if you are creative and you want to become an interior designer, then you should not force yourself into another profession. Magic happens when you choose a career that you are truly passionate about.

You should use your potential in something you are good at, instead of choosing some other profession just for the sake of living or social pressure. In ancient India, parents often forced their children to become a doctor or an engineer etc. as if they could not earn a living by choosing another profession.

But, now times are changing and there are families who allow their children to chase their dreams. So, if you also have the willpower to become a successful interior designer and start your own interior designing business, then all you need is a little clarity and guidance to start an interior designing business and work passionately to grow it.

How to Start an interior design business in India

Interior designing is a great profession as you get to work with different types of clients and always have the opportunity to reinvent the design and concept as per clients’ requirements.

With the rising flat culture, people want to design their space to utilize the available space correctly and make it comfortable for living. Obviously, they need to take the help of professional interior designers to design and decorate their properties like homes, offices, shops and other commercial establishments.

Bespoke interior designing is already popular and in high demand in major cities like Mumbai, Pune, Bangalore, Hyderabad, Kolkata, Delhi, Gurgaon etc. but, the concept of interior designing is slowly spreading in other tier II cities in India like Ahmedabad, Vadodara , Kochi, Patna etc.

The field of interior designing is large and contains several sub-sectors like basic and advanced carpentry, fabrication, antique furniture refurnishing, flooring, furnishing, basement remodelling, plumbing, electrical, ceiling etc. So, the first step that you have to take is to identify who your clients are and that is directly related to the kind of people you need in your team.

So, if you want to start an interior design business in India, then here are a few of the most essential things worth knowing.

Identify your target clients

It all starts with identifying the targeted client base you want to serve. There are people who have no issues with the budget and want exceptionally stunning designs and the best quality finish.

But there are usual customers as well, who want to get the interior designing and execution done within a certain budget. To them, quality is obviously important, but they are equally concerned about the budget and they would not want to go beyond a certain budget.

To be successful in the interior designing business, you have to have a clear understanding of which types of customers you want to work with. You may like to work only with the premium customers or the usual ones, based on your expertise, capabilities and availability of resources. There may be advantages and disadvantages of serving only specific customers with specific budgets. But then, that’s how you create a name and distinguish yourself. You can’t be serving one and all, so you have to be very specific about your targeted customer base.

Once you know, whom you want to serve, you should start researching about them. Start by finding the basic information about your potential clients, what they like, what they don’t like, where they hang out, how to reach them and so on. You also need to have ample information regarding the size of the market, the essential services, and the specific products that are in demand at the present moment and so on.

Lastly, you should be well acquainted with what the clients generally expect from you. If you have this clarity, starting and growing your interior design business will be much easier.

But if you start targeting randomly picked customers and instead of serving niche clients, if you start taking on each and every assignment coming your way, you will end up in a mess. So the very first thing before you start an interior designing business is to identify your targeted client base and know as much as you can about them.

Sort out the initial investment to start your business

Irrespective of the type of business you want to start, you have to invest initially and the interior design business is no different. Thankfully, you do not need to invest too much money to begin with because it’s a consulting business and you can start with very minimal investment.

You only need to bear some operational costs, rent out an office and purchase basic office accessories, which are required to make an office operational like a computer, printer, desk, chair, branding etc.

Avoid overspending in accessorizing the office, because you need the funds to keep your office operational for the initial few months unless the funds start rolling. Make sure to keep surplus money to continue your work in the next 6 or 9 months without any problems. This is because, initially, it may be difficult to find new clients but slowly that will get sorted once you get into the flow. So think of finances carefully and have a detailed monthly and operational cost in mind.

Business name and logo designing for business

Once you are done with the type of interior business you want to start, have decided about who your targeted clients are going to be, and have also got your finances sorted, it is time for you to choose a business name and start basic branding.

The company name and logo must be unique and must carry the potential to attract more clients. A good logo is instrumental in creating a good brand identity. Whenever people see it in advertisements, marketing materials, products, services etc., they should be able to easily identify the brand.

Naming your business and designing a logo can be very tricky and there is no right or wrong way to name a business or to design a logo for that matter. But you should always try and choose a name or logo design that is easy to recognize and recall. Apart from easy recalling, it should be clear and easy to read and pronounce.

For instance, home2desing can be a confusing name, because if you see there is a numeric 2 in between ‘home’ and ‘design’. So every time you dictate this name to someone over the phone, you have to explain it’s not ‘to’ but numeric 2. The point to note is to avoid using numbers in your brand name.

Similarly, you may name your company as EazyInterior, but again, the name is nice but the spelling is a little confusing and you have to explain that it is not in your business name.

Hope you get the idea, so you should always look for sweet, simple and easy-to-spell names which can be pronounced correctly.

A few examples of good business names for your interior designing business can be ‘Urbana Interior Solutions’, ‘ModSpace Design Studio’ or ‘Interior Sutram’ and so on. Hope you get the idea of choosing a nice and easy-to-recall and pronounce business name for your interior firm.

And one more thing, avoid using too many colours, fonts etc. because that may create issues when you use the logo for various printing and other works. Ideally, there should be no more than 2 colours and font styles. While designing the logo, keep in mind that it can be used in colour or mono.

As far the logo designing is concerned, there is no harm in trying to design a logo on your own, but it’s always better to get professional help in branding. You can easily find and hire professional branding agencies or logo designers in your city. Alternatively, you may like to try some crowd-sourcing platforms, where you can create a logo design project and get competitive bids for logo designing services from professional designers.

They will come up with multiple variations or logo drafts. You can take feedback and advice from your friends and family and choose one that meets your requirements.

Company registration process

In order to formally start your business, the very first thing that you need is an entity or a company. Registering a company is not so difficult in today’s time. Most of the application process is online and there are consultants available as well who can help you register a company for a small fee. Usually, it takes about a couple of weeks to get everything in place and start operation.

As far as the type of company you want to register, there are 3-4 options. You may like to register it as a proprietorship or partnership firm, a private limited company a limited liability partnership (LLP) or even a one-man company and you can read about it all here on the official website of MCA in detail.

Ideally, you can go for a private limited firm or LLP, but there are a lot of legal formalities and annual compliance. If you want to avoid it, then you can start as a proprietorship or partnership firm and then convert the company to a private limited entity, as you move forward.

Once you decide which type of company you want to form, you have to pick three probable names. While submitting the form to register an interior design company in India, you have to mention a few names, because the first name that you want to keep for your company may not be available. They ask for a few names because if the first name you have proposed is not available, they will check the second or third and so on. Name search is the first step and this is to ensure that you get a unique business name.

The best approach is to hire a practising chartered accountant (CA) or a professional consultant to register a company. They know about the process and they can help you get through the process fast.

Once you have registered the name, you have to apply for a trade license (also known as a shop and establishment license) from the local municipality.

Once you have the trade license, you have to obtain a PAN number and then you can apply for a current account, and you are good to go into operation mode. You also need to obtain GSTIN (Goods and Service Tax), but you can obtain that after getting into operation mode.

Set up an office for your business

It hardly matters today, whether you are working from home or in a luxurious office, especially when you are just starting up. Irrespective of whether you want to work from a rented office or a home office, you have to set it up, so that you can work comfortably. There are a few basic office accessories that will be required like a desktop computer or a laptop, a printer, chairs, desks, internet connection, mobile and phone connection etc.

Just remember, that in the early days of your business, you do not need your office to be too big and lavish. You can set up a small office instead which must be well designed and well decorated because that is actually what you deal with. Keep some PCs telephones, and laptops and make yourself ready for the challenge. And you can always move into a big luxurious office as your business grows. But to begin with, you need to focus on the basics so that you and your team can work comfortably.

Building a team for interior business

Needless to say, you need a team to start an operation. But as you know, interior designing and execution involve different types of activities. Primarily, you need people who can look at the measure activities, such as:

• Space designing – survey/measurement/2D/3D
• Execution – Execute everything as per the plan from carpentry to civil work and furnishing.
• Sales and Marketing – Obviously you need people in your team who can look after sales and marketing, and as a business owner, you can handle this in the beginning
• Accounts –to manage the day-to-day accounts payable and receivable and filing tax etc. You can handle this on your own in the early days and keep part-time accountants for bookkeeping and tax filing.

Obviously, to take care of the designing part, you need a professional designer with expertise in designing 2D and 3D layouts.

You need an execution team that will execute the project based on the design and specifications.

Then you have to have a sales and marketing team to send proposals, follow-ups, sales etc. You also need to have an accountant who will manage the financial part.

You need a procurement manager and a site supervisor as well. Now, to begin with, you can do quite a few of these tasks on your own and as your business grows, you can hire for these positions.

Even if you can handle most of the tasks, you do need people who will help you in the planning and execution of the projects. So, you must build a small team and make them do the marketing, 3D tasks etc. This will form a part of your initial investment but it is needed. And, when your business grows, you will automatically need more men and thus your core team can grow systematically.

When you are starting out and building a team, always prefer to hire a team member who can handle multiple tasks. For instance, if the surveyor who visits the site and takes the measurement is the same person, who does the site planning and designing, then things will be easy to manage and much more effective.

Apart from building the core team, you need various types of technicians and experts for plumbing, electrical, false ceiling, carpenters, guys for AC installation etc. Initially, you may not have to have them on all of your monthly payrolls, instead, you can subcontract these works to other reliable subcontractors. For example, you can hire a team for false ceiling, another team for electrical wiring and fitting, a different team for civil work like flooring and so on.

Nice and functional website for your business

Having a good, functional website is seriously important in today’s time. There are many benefits of having a nice and functional website and lead generation is the important one. Your potential customers are going to search for interior designing companies online. Unless you have a website, you may not appear in search results and lose a potential customer.

Your website has to be very organized and beautifully decorated because that forms the basic crux of interior designing. Again you can hire a professional website designing company and a copywriter to develop the content.

The content of the web pages has to be very engaging. Ideally, you should have some of the common pages like

• Home page – with lead capture form
• About us – a page about your company
• Services – a page dedicated to all of the services you offer
• Portfolio – You should list out some of the design and consulting work
• Process – You should explain the process of engagement from survey to execution to delivery, you should explain everything.
• Testimonials –You can have video testimonials on this page.
• Contact page – You should share all the information
• Privacy policies – to explain the terms and conditions of engagement and using your website
• Terms of use – a page explaining terms of use and engagement

Having a nicely designed portfolio and good user-friendly content can be of great benefit to your business. So consider spending time, effort and some money and get a truly professional and mobile-friendly website for your business.

Apart from, setting up a professional website, you should also set up social media profile pages on some of the popular social media websites like Facebook, YouTube, LinkedIn, Twitter, Pinterest, Instagram etc. The idea is to be where your targeted audiences are.

Sales and marketing tips for interior designing company

You have progressed well and you are all set to start marketing and promotion . Now one of the biggest challenges for a business is to find the first few customers. It’s not easy to find a customer in the early days of starting your interior designing business. But then, you have to overcome this challenge and that’s the only way to succeed and grow your business.

Sales and marketing is a very tricky thing and you have to apply different types of strategies in sales and marketing. There is no fit-all strategy in sales and marketing and what is working in Kolkata, may not work in Delhi because the targeted audience, their culture, approach etc. are different in different cities.

To begin with, since you have no clients to work for, the best idea could be to start with your friends and family. Spread the word among your friends and family and if required offer them free design consulting. If they like your design, then maybe they will award you the execution responsibility.

Offer competitive quotes to them and try to exceed their expectation. This way, you’ll be able to impress your customers and that in turn will help you with word-of-mouth marketing. They will become your brand ambassador and that will eventually lead to getting more customers.

The second advantage that you’ll get here is that you will be able to build a real portfolio of your work, which you can show to potential customers and get work.

Using social media to promote interior design business

Most people, irrespective of age and gender are actively using social media platforms like Facebook, YouTube, Twitter, Instagram etc. Social media can be a very powerful tool, and if done right, it can help you to spread the word about your services very quickly and in a cost-effective way. You can use it to promote your services and get business leads.

Use the platforms where you think your targeted audiences are spending their time and it could be Facebook, Twitter, LinkedIn YouTube etc. This will help you to reach more people, some of whom may actually become your future clients. The more number of followers or likes you garner, the more popular your interior business is going to become.

Just make sure that you are a regular user of the social networking sites and post engaging content and useful graphics. You can create some viral videos of your work and post them online so that it grabs the attention of more people.

Using social media can be very tricky at times, so try and learn as much as you can about popular social media platforms. There are tons of good quality content available on how to promote business on social media sites. In fact, you can use the same very search phrase to find good quality content e.g. “How to promote business on Facebook” or ‘How to increase followers on Twitter’ and so on.

Use visuals wisely in sales and marketing

Since you are in the designing business, more than anything else, you need to focus on visuals. Whether it’s your business profile or you are sending quotations to a particular business prospect, you should be very creative.

We can’t ignore the visuals and if used correctly, visuals can do wonders in promoting your business. The whole thing of interior design is nothing but a visual medium. It is about creating visuals the means of home decorating, home furnishing products, space utilization and so on.

If you are able to impress your clients with amazing visual creatives, then your chances of winning the contract will improve dramatically. For example, if I have to evaluate three quotations from three different design studios.

First interior company sent me a one-page brochure with a quotation

The second company sends just a quotation and no past work

The third company sent me a nice quotation, samples of some of his past works in the form of a case study covering the first survey to 2D escalation and 3D designs and the final video of the work done.

Which company do you think I am going to hire?

Well obviously their quotation, rates, terms time to completion etc. are important for me, but if I go by what I have just seen, I will be biased towards the third company and probably hire them for my interior project.

If you have a good understanding of photography, then you can click the pictures of your work on your own. But, if you are not a photographer, then you may hire a professional to get the pictures clicked. They will know the perfect angles that will bring more life and glamour to the pictures of the project. It is all about a part of the marketing of your interior design business and you must use it to your advantage.

Participate in trade events

If you want to give your interior design business perfect exposure to your market, then the trade events are a great platform for you. So, whenever, there is any trade event nearby, do not forget to register the presence of your startup. Besides, many industry experts attend those events and you can easily talk to them and get suggestions. You can also meet up with reputed interior designers and make good connections with them if they even say a few good words about your work; it can easily fetch you big clients.

And, do not forget to carry your business card to such events. You can give it to people whom you meet there. Just make sure that the card is impressive with proper contact details and website address mentioned in it.

Local marketing by distributing flyers

At the start of your business, you may not always afford high expenditure on costly advertisements in newspapers or television. But, what you can do is make flyers and distribute them. This is a much cheaper medium to reach out to the people. You can distribute these one-leaf advertisement pieces in crowded places or get newspaper insertion.

To gain more attention, put a big impressive photo of your interior design business and some attractive content as a part of the design. If everything goes well and your destiny clicks, this is going to work well.

Try email marketing

Another way of building a strong customer base is through SMS and email marketing. Gather the email details of people who visit your company’s website and then start your own newsletter and ask people for free subscriptions by providing their email details. After that, send them emails highlighting the major aspects of your interior designing business. Among those, many interested recipients will enquire about your business and may also ask for interior designing and decoration services. Make the emails very professional so that it makes the recipients read and respond back.

Start a blog to share tips and ideas

Since your website is new and you hardly have any fans and followers on social media, it’s going to be difficult to bring visitors and potential customers to your website or social media pages. You should give them a reason to visit your website or to become your fan. So what can you do to overcome this?

Start an official blog and share all types of tips, articles, infographics and other well-researched articles. You may like to talk about the latest trends, industry news, what is hot in the interior, how to choose colours and other tips. Writing and publishing regularly on your blog will help you attract new potential customers and also establish you as someone who knows the interior bit.

Be responsive to your clients

Well, you know that the field of interior designing is glamorous and so if you want to start your own interior design firm and make it a success, you have to be presentable. Usually, the targeted customers will be well-established business owners and a little up-class individuals and hence it is important to be presentable while meeting them. Wear nice decent clothes, be confident, arrive on time for meetings, hear them out and respond politely.

It’s always a good idea to use extensive documents for planning, estimating the project cost , to-do lists, and project checklists to plan, track and manage the progress of the projects. Timely delivery and staying within a specified budget for the project are crucial, and you can’t really ignore these factors.

Moreover, people who are creative, and have great design skills generally have a good sense of personal styling as well. So I guess, it will not be much of a problem for you. But make sure to be responsive and communicate clearly with your prospects and clients.

Over to you

Interior designing business has a lot of potential and if you are planning to start your own interior designing business, then this is the right time to get started. There are many budding entrepreneurs who want to start an interior designing business, but they don’t have any clue as to where to start.

Today, we have discussed some of the most important things worth knowing about starting an interior designing company in India. Right from how to choose a business name to how to get it incorporated and start the operation, we have discussed everything worth knowing.

Once you have registered the business and you are ready to start the operation, Sales and marketing become important. Sales and marketing are certainly one of the most critical and challenging aspects of your business and so I have talked about various strategies that you can use to promote your business.

You can use ServiceSutra to get connected with customers who are looking for experienced and professional interior contractors for the interior design of their homes and offices. We can connect you with potential customers, but we have our own screening process and we only enlist companies who are registered and have prior experience. If you have all the documents in place and you are passionate about interior designing, then get in touch with us and we’ll be happy to connect with potential customers who are ready to hire interior contractors.

And, at the end of the day, it is your talent that will speak. You only need to work a little harder in the initial days to form a good client base and once that happens, you will be able to scale your business, one client at a time.

I wish you all the best in advance and firmly believe that with hard work, determination and talent, you will be able to make it big in the interior designing business in India.

I have tried my best to explain everything one should know to start an interior designing business in India or abroad, but if you have any specific questions, you can ask by commenting below.

What else do you think one should know to start and grow an interior consulting business in India? Feel free to share your views and comments.

Finally, if you like this post then please help us by sharing this post with your friends!

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Interior Design Business Plan Template

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

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

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

Next Section: Executive Summary >

Interior Design Business Plan FAQs

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

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

What Is an Interior Design Business Plan?

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

Why Do You Need a Business Plan?

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

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

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

INTERIOR DESIGN BUSINESS PLAN OUTLINE

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

Start Your Interior Design Plan Here

Other Helpful Business Plan Articles & Templates

BUSINESS STRATEGIES

How to start an interior design business in 7 simple steps

• Annabelle Amery
• 11 min read

With a growing demand for talented interior designers, there’s no better time than now to start your own interior design business. If you have a good eye for design and you are able to create beautiful and functional spaces, then you have the potential to be successful in this field.

In this guide, we will take you through the process of launching your own interior design business, from building a business website to understanding the nature of the business and effectively managing it.

What is an interior design business?

An interior design business offers a range of services to clients who seek expert guidance and assistance in designing and decorating their spaces. Services can include space planning, furniture selection, color consultation, lighting design, material sourcing and more.

Interior design businesses can be either residential or commercial. Residential interior designers typically work with homeowners to create spaces that are both stylish and comfortable, while commercial interior designers work with businesses to create spaces that are functional and inviting.

Why start an interior design business?

Running an interior design business comes with its own set of rewards. Not only will you have the freedom to set your schedule and choose projects that you want, but you’ll also be able to work closely with clients and witness their appreciation for your work.

The global interior design market is expected to grow at a compound annual growth rate (CAGR) of 8.3% between 2022 and 2028 , with commercial interior design expected to be the largest segment. It's an exciting journey with endless possibilities.

How to start an interior design business

Ready to get started? Follow these essential steps:

Define your business goals

Build a portfolio

Set up your business

Establish a workspace

Define your services and pricing

Develop a network

Market your business

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. Learn more about creating an interior design business plan .

Once you've written your business plan, write a concept statement to outline your vision and goals. In it, include your Unique Selling Proposition (USP)  - the distinct element that sets your interior design business apart from competitors and defines your value proposition in the marketplace. Identifying and articulating your USP will help form the core of your marketing strategy , enabling you to communicate your strengths and advantages to potential clients more effectively. 

02. Build a portfolio

Create a strong portfolio showcasing your design work and projects. If you're just starting, consider offering pro bono or discounted services to build your portfolio up. Include high-quality photos, descriptions and details of each project to showcase your skills and expertise.

Check out these portfolio website templates on Wix.

03. Set up your business

Register your business and choose a suitable legal structure and business entity , such as a sole proprietorship, limited liability company (LLC) or corporation . If you’re not sure which one is right for you, consult an attorney or business advisor—your business structure will have big implications on your legal and tax requirements, so you don’t want to make this decision lightly.

04. Establish a workspace

Determine whether you'll work from a home office or rent a dedicated workspace. Set up a functional and inspiring workspace that reflects your design style and provides a conducive environment for creativity and productivity.

05. Define your services and pricing

Decide on the services you will offer—which may include interior design consultations, full-service design, space planning and/or project management. Establish transparent pricing structures for each service based on your expertise, market rates and project requirements. Additionally, implement a variety of payment methods  on your business website to create a more user-friendly experience for your clients.

06. Develop a network

Build relationships with suppliers, contractors, architects, real estate agents and other professionals in the industry. Networking can open the door to referrals and extra resources. Attend industry events, join professional associations and engage with online design communities to expand your network.

Some tips for building a professional network in the interior design industry include:

Intern or shadow credible designers to learn the ropes of the business

Collaborate with other designers on projects or offering referrals for clients outside of your area of expertise

Attend trade shows, home expos and design fairs to connect with suppliers, manufacturers and potential clients

Build relationships with local media outlets, such as newspapers or magazines, to showcase your work and expertise

Join local and national interior design associations to attend events, conferences and workshops

Participate in online forums and social media groups for interior designers to connect with peers and share knowledge

07. Market your business

Develop a comprehensive marketing strategy to promote your interior design business. Create a professional website using platforms like Wix to showcase your portfolio, services and client testimonials. Utilize SEO best practices, social media platforms, online directories and traditional marketing channels to raise awareness about your business and increase online visibility.

Thinking of starting another type of business? Check out some of these creative service business ideas  to help get you started.

Types of interior design services

Deciding which services to offer as an interior designer requires careful consideration of several factors, both internal and external, to find the sweet spot between your passion, skills and market demand. Here's a breakdown of common interior design services:

Full-service design:  This comprehensive approach involves the entire design process, from initial consultations and space planning to furniture selection, procurement and final installation. As a full-service designer, you would act as your client's project manager, overseeing every aspect and ensuring a seamless, cohesive outcome.

Partial design:  This option caters to specific needs within your client's project. You would offer help with space planning, color palettes, furniture selection or even just sourcing specific pieces. The level of involvement can be customized to your client's comfort level and budget.

Hourly consultation:  Sometimes, your client just needs expert advice or a fresh perspective. Hourly consultations offer focused guidance on specific design dilemmas, helping your client make informed decisions about furniture layout, paint colors or overall style direction.

E-design:  This growing trend utilizes online platforms for virtual consultations and design services. E-designers provide recommendations, mood boards and shopping lists, offering a budget-friendly alternative to traditional in-person services.

Additional specialized services:

Kitchen and bath design: Requires specialized knowledge and expertise to navigate plumbing, electrical and ventilation considerations.

Commercial interior design: Tailored to businesses, focusing on creating functional and aesthetically pleasing workspaces.

Sustainable design: Incorporates eco-friendly materials and practices for environmentally conscious home design.

Senior living design: Addresses the specific needs and safety considerations of older adults.

Lighting design:  Focuses on crafting lighting designs that naturally blend into an interior space, enhancing both its ambiance and functionality.

Flooring design:  Specializes in selecting and installing various flooring materials, from hardwood floors to carpets, in order to complement the aesthetic and practical needs of an interior.

Finding the right services to offer as an interior designer involves introspection and research. Ask yourself what excites you and where your skills lie. Then, analyze your target market and competitor landscape to discover gaps you can fill profitably. Start small, be adaptable and let your expertise and market feedback guide your service evolution. This way, you'll create a fulfilling career aligned with your passion and the market's needs.

How to manage an interior design business effectively

Half the challenge of running any business is making sure that it runs smoothly. Pay attention to these areas of your business and develop the right strategy for each:

Client communication: Establish clear communication channels with your clients from the beginning. Regularly update them on the progress of their projects and address any concerns. Transparency is key here, don’t keep your clients in the dark.

Project management: Develop effective project management systems to track project timelines, deliverables and budgets. Utilize project management software or tools to streamline communication and collaboration with clients and team members.

Financial management: Implement sound financial management practices, including tracking expenses, booking services  with proper payment methods, invoicing clients and managing cash flow. Consider using accounting software or hiring an accountant to ensure accurate record-keeping and financial reporting. You’ll also need to consider how to raise money for your business if you cannot self-fund it.

Collaboration with contractors and suppliers: Maintain strong relationships with contractors, suppliers and other industry professionals. Clearly communicate project requirements, timelines and expectations for smooth collaboration and timely delivery of materials and services.

Continuing education: Stay updated with the latest trends, materials and design techniques. Attend workshops, conferences, webinars or online courses to sharpen your skills.

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

The exact cost to start this type of business will depend on several factors, including whether you plan to work from home or rent a physical space and if you will manage the business by yourself, or intend to hire employees from day one.

When calculating the cost of starting an interior design business you'll need to consider the following expenses:

If you don't have formal education or certification in interior design, you may need to invest in relevant courses or degrees.

Check the requirements for licensing and permits in your area. Costs can vary, and you may need to budget for application fees.

Consider whether you'll need a physical office space. This could be a home office initially to save costs.

Purchase of necessary equipment such as computers, software for design work and other office supplies.

Budget for marketing materials, a website, business cards and other promotional expenses to establish your brand.

Get insurance coverage for your business, including liability insurance, to protect yourself and your clients.

If you plan to hire staff, budget for salaries, benefits, and training.

It's important to create a detailed business plan to estimate these costs accurately. Additionally, you might want to start small and gradually scale up as your business grows. Consider consulting with a financial advisor or a mentor in the interior design industry to get more personalized advice of costs based on your specific circumstances.

Learn more: How to register a business , How to get a business license

How to promote your interior design business

Your business isn’t going to sell itself. To attract potential clients, consider these tips:

Establish your branding: The first order of business when it comes to branding is to learn how to name your business effectively. If you need ideas, a business name generator can be your trusty companion. You’ll also want to design a unique logo with the help of a designer or logo maker . Check out some of these clothing logo ideas for inspiration and create a visual identity that captivates your audience.

Make a website: Develop a visually appealing and user-friendly website using a website builder like Wix . Showcase your portfolio , services and client testimonials. Consider including a blog to share design tips, industry insights and case studies.

Advertise on social media: Utilize social media platforms like Instagram, Pinterest and LinkedIn to showcase your design work. Share high-quality photos, design inspiration and behind-the-scenes glimpses of your projects.

Collaborate with influencers: Partner with interior design influencers or bloggers who align with your style and target audience. Collaborate on content, offer design tips or provide exclusive discounts to their followers. This helps to increase your brand visibility across a wider audience.

Network with real estate professionals: Build relationships with real estate agents, property developers and home builders who can refer clients to you. Attend industry events, join local business associations and offer your expertise for design consultations or staging services.

Get client referrals and testimonials: Encourage satisfied clients to refer your services to their friends, family and colleagues. Offer incentives or discounts for successful referrals. Collect testimonials from happy clients and feature them on your website or social channels to build credibility.

Learn how to make an interior design website .

How profitable is an interior design business?

The profitability of an interior design business can vary based on several factors, including your specific business model, target market, location and the effectiveness of your marketing and business management. When calculating the potential profitability of your business it's worth considering the following:

The size and type of your client base will significantly impact profitability. High-end residential clients or commercial projects can be more lucrative but competition may also be more intense for them.

The demand for interior design services in your area can influence your profitability. In regions with a thriving real estate market or a strong demand for renovation and design services, there may be more opportunities for a profitable business.

Specializing in a niche within the interior design industry, such as eco-friendly design, hospitality design, or historic restoration, can set you apart and potentially lead to higher client fees.

Your fee structure and pricing strategy will play a crucial role in your path to profitability. Some designers charge a flat fee, while others work on an hourly basis or a percentage of the project cost. Ensure your fees cover both your design services and any related expenses.

Managing overhead costs is important. Keep an eye on expenses related to office space, utilities, staff salaries and other operational costs.

Building strong relationships with suppliers, contractors, and other professionals in the industry can lead to better deals, discounts and more efficient project execution, positively impacting profitability.

Being adaptable to industry trends and changes can ensure your services remain relevant and in demand.

Examples of interior design businesses on Wix

Check out these interior design businesses for a drop of creative inspiration.

Founded by Eitan Cohen, Studio ETN is rooted in the belief that every client's desires and needs must be planted in the heart of the project. The studio has mastered urban spaces with the right usage of light, natural materials and functional design all curated with thoughtful consideration towards a space in its natural form.

Farah A Interiors

Farah A Interiors knows that the smallest details can make the biggest impact. Since 2015, Farah A Interiors has been helping homeowners in the Dallas-Fort Worth area revamp their spaces, whether they’re looking for a greener outdoor space or a more luxurious bathroom.

Michelle Scarola Interiors

Since 2017, Michelle Scarola Interiors has offered everything from full gut renovations to room decor refreshes. Founder Michelle Scarola is praised for her creativity and resourcefulness, helping many of her past clients successfully save (and wisely spend) their money.

For more inspiration, you can check out these service business examples to help get your creative juices flowing.

Benefits of starting an interior design business

In summary, if you’re looking to start a business in interior design, you can look forward to the following benefits.

Creative freedom: As the owner of an interior design business, you have the freedom to design spaces according to your creative vision. You can experiment with different styles, materials and concepts, offering unique and personalized design solutions to your clients.

Professional growth: The interior design industry is dynamic and ever-evolving. Starting your own business allows you to continually learn and grow as a designer. With each new project, you gain valuable experience, expand your portfolio and refine your skills.

Financial opportunities: The interior design industry presents various financial opportunities. You can charge for design services, consultations, project management and also earn commissions through product sales or partnerships with suppliers. As your reputation grows, you can attract higher-profile clients and charge premium fees.

Diverse clientele: Interior design encompasses a wide range of spaces: residential, commercial, hospitality, retail and more. This diversity offers the opportunity to work on different types of projects and collaborate with clients from various industries, expanding your knowledge and network.

Challenges of running an interior design business

While starting an interior design business has its advantages, it also comes with its fair share of challenges. These include:

Establishing a client base: Building a client base and attracting new clients can be challenging, especially when you’re just getting started. It requires effective marketing and networking strategies to showcase your skills and gain trust in the industry.

Managing finances: Proper financial management is crucial for the success of your business. This includes setting appropriate pricing for your services, tracking expenses, managing cash flow and budgeting for materials and resources.

Handling multiple projects: As your business grows, you may find yourself juggling many projects simultaneously. This requires strong organizational and project management skills to ensure that each project receives proper attention and meets deadlines.

Staying updated with trends: The interior design industry is constantly evolving with new trends, materials and technologies. Many clients will expect you to stay up to date, and keep them informed of the latest trends.

How to start a business in a specific state

If you're eager to launch your interior design business in a particular state, check out these resources to make sure you navigate the waters of state-specific regulations with care:

Start a business in South Carolina

Start a business in Pennsylvania

Start a business in Oregon

Start a business in Tennessee

Start a business in Wisconsin

Start a business in Georgia

Entertaining other pursuits?

If you’re looking to learn about other business types , check out these guides:

How to start an online business

How to start a consulting business

How to start a service business

How to start a fitness business

How to start a fitness clothing line

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Essentials for Interior Design Business in India

Interior designing is of the most flourishing stylistic industry. And also an electrifying business opportunity. Interior design business involves creativity and aptness to evolve an empty room into a fully furnished, pleasant vibrant office or a home.

Though this business requires a lot of experience and a creative mind. People having natural imaginative and creative skills can define their careers in interior designing.

With the rapid growth and development in India, the housing industry is also flourishing with great speed.

Let’s figure out about the entire interior design business and industry .

If you’re thinking that this interior design business requires a lot of research, then you are correct. With lots of planning and strategy, you require a lot of research.

There might be many questions in your mind about how you can start the business?

Will you able to extract profit from it? What will be the hurdles you have to face?

How much labor required and many more?

Well, this blog is an answer to all the questions running in your head. We will be diffusing the bubble one by one.

How to setup and interior designing firm?

Before setting up the firm you need to be very clear with the mission and target of your firm. As the mission is the beginning and target is the climax to your career story.

This is a great profession as you get different clients, different projects and every time something new to enhance your creativity.

• Target you’re an audience.
• As we all know this industry is vast so you need to be clear in your head about which type of consumers are fruitful to you. You need to clarify what is your major such as you are much creative with residential or commercial.
• To be successful in this business you need to understand who your cream customers are. You may like to work with high-end clients or usual ones.
• Though there are merits and demerits of serving a specific set with a specific budget. As it’s already clear this business requires creativity as the same cannot be served to everybody.
• Prevention is better than cure, entertaining all kind and all assignments can lead you towards the mess. The project not being completed on time and not with perfection can create a negative impact on your brand image.

Strategy and implementation:

• Once you’ve been clear with your clients, you require a proper strategy and planning.
• You require a proper SWOT Analysis to get the exact strategy, which captures the key strengths and weaknesses of your business.
• Provide excellent personalized client services.
• Loyalty towards your client, and punctuality in your work.
• Build a relationship with suppliers for your materials as well as with the architects, real estate agents , interior design photographer, Vendors and all the key aspects who can provide you the opportunity.
• Changes in design, trends, joint marketing activities, collaboration with supporting brands will help you to grow strategically.
• Changes in design, pattern, and variation can generate a high amount of business.

Pricing and promotion- offer your service initially, print your business card, flyers

• Here pricing is meant to be offering high value to your clients with a comparison of others in the market.
• Creating the before and after an image of your project and pleasing the clients will determine the value of your services.
• Promotion strategy should focus on generating referrals from all sources such as advertisements through radio, television, newspaper, collaboration with supporting brands, and also through the website.

Branding and Marketing:

• Marketing is really important in any business as if you are not able to represent in the market you will not be able to sell it out.
• Creating awareness through images, brochures, flyers, can create your name in market smoothly.
• Going for videos, posts, blogs and social media marketing can also be countable in your marketing strategy .
• To grow in any market you should know your customers well and what kind of demand they put. So for knowing, what they expect from you building relationships is important.
• It is really important to listen to the demand of your clients and make them satisfied with your services.
• And by building a good relationship they’ll be able to take your suggestions.
• You can go for cross-selling as well by suggesting customers by knowing their requirements. As well as additional sales of many more other interior products.
• Attending local events, workshops, exhibitions, and many more field displays can help you to gain popularity in the market.
• Creating campaign awareness and being part of any social cause also can be included in your marketing strategies.

Sales forecast:

• This has to be measured by knowing your market whether it’s commercial, residential or product selling.
• You should set the target of all the segments equally and observe which segment is generating revenue into which part of the season.
• As every market depends upon the season for example during festive people go for renovation, whereas rainy season is least preferred for any kind of art and architecture work.

Design your own office for interior business.

• Though it is not a matter of concern if you’re working from home or you maintain a luxurious office. With a few basic office accessories, you can start your offices such as computers/laptops, desk, chairs, internet and other basic requirements of an office.
• It depends on you if you want to go to a rented office or home office. Just remember initially you need not go for too lavish or luxurious one. Just keep it approachable, as it is not any product selling you don’t need any specific location,  You can design your own space attractively and with the future instance, you can move to the big office as your business grows.

Creative Team

• In any other service business , you can start individually as well but as it involves teamwork, your requirements as to design teams such as space design, work design, creative design and many more, execution team for executing all set of your work efficiently which involves carpentry, furniture, material supplier and what not.
• You can further go for sales and marketing as for initial you can depend on online and offline marketing of your own. And as the business grows you can go for financial and administration team members also.

An attractive website is an essence:

• With the change in time and mode of connectivity, getting tech-savvy is important. Having a nice and functional website can help a lot in generating new business and potential customers will be able to reach you.
• Well organized and attractive website is the representative of your work online. You should all the basics of an ideal website such as home page, services, contact, about us, and with all the genuine content.
• A website is the face of your working as people go through it to approach you. So showcasing your work on your website can create your brand value.
• Get online business by creating visual and email marketing .

Funding and financial:

• Any business startup, though on the initial stage you start from home but there are still some expenses you need to lift. Apart from managing the rent or office space, accessories also require funding.
• Some basic expenses are website development, telephone lines, trade license, company registration, logo design, printing flyers, and brochures, visiting card and stationery, internet subscription, domain registration, and web hosting require fund. And approximate investment goes around 20,000/- to 50,000/-  

Play legal and registered:

• Like any other company in India, interior design business has to be registered the same way.
• To make your firm authorized you to require PAN number, GST Registration, shop, and establishment license from the municipal corporation of your city. You need to register your firm name as well. 
• It depends on you which kind of you are referring to is it a sole proprietor, partnership firm, either you want to go as a Pvt. Ltd. or LLP.
• Here is the referral link for more clarification: www.mca.gov.in

Know your competitors:

Analyzing the market is important to know your business. It is really important to keep eye on your competitors, what are their strategies and what to ideas are floating in the market is something you should know about.

  You can also focus on :

• QUES: What are the basics of home interior????
• The basic rule of interior designing is that you cannot rectify your errors as once been created. You have to eliminate your work if there are any changes to it.
• For example, the wall once created can only be destroyed than being rectified. Designing a home involves a lot of creativity and effort. So you have to show your keen interest while doing it.
• You can take inspiration from your surroundings, like go through the architect’s publication.
• Explore your neighborhood, sketch your rough plan.
• Photograph your inspiration and read it later on.
• Make a budget, which will help you to figure out what kind of home interior you can do.
• The best interior is showing your creativity in economic measures.
• Go for 3D images and then look for a suitable location accordingly. 

These are the basic tip which can turn out to be helpful while home decoration.

Here is the guide towards the office decoration as well. These are not detailed information to design as different kind of offices with different location require unique interior and also is done according to the demand of your clients.

There are many ways to design an office interior. Here are some basics you need to keep in mind while designing an office interior.

• Consider the requirement of the office interior on prior. For example, office belongs to which domain and which are the areas they might require such as a conference room, cafeteria, cabin, personal space and many more.
• Try to play with nature as much as possible, natural light, greenery, flowing water, nature view these little but important aspects can be really helpful to design an office interior.
• Most of the time is spent in the office and people consider it their second home, so of course, it has to be comfortable.
• A pleasant and comfortable environment will make an interior more attractive.
• You can for the exposed ceiling, beams, air ducts. Very large windows, concrete floors, overhanging light fixtures are some, natural wood will enhance your creativity.
• Choose your theme wisely. You require a theme to decorate the office.
• Transparency: It required a transparent atmosphere to built team unity. Glass walls are thinner than regular walls, this will create more footage than regular walls.
• Being an interior designer you need to design the perfect work-space that aligns the goals and values of the company.
• You need to understand the technology and modern trends and your area of expertise to justify the importance of motivation, health, and productivity of the workplace.

To create an impact in the market and set a benchmark, you to keep creativity as the keep. Prompt services and memorable impression will surely grow your business. The unique logo and key point marketing strategy will provide you market recognition.

Let us know how helpful was this blog by commenting below.

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• Business of Design

How to Write a Business Plan for Your Interior Design Business

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

• Margot LaScala July 31 2023 . 7 min read

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

Step 1: Determine Your Niche

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

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

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

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

Step 2: Define Your Services

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

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

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

Step 3: Decide on Your Rate.

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

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

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

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

Step 4: Develop a Marketing Strategy.

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

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

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

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

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

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

Step 5: Get a Solid Accounting System.

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

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

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

Angela Sanders, Contributing Author

Topics: Business of Design

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How to start & grow interior design business in 2023

Love to plan and décor homes and workplaces? Get a step-by-step guide on how to start and grow an interior design business.

• 09 Apr, 2024

Love to plan and décor homes and workplaces? Then you must want to excel in your career as an interior designer. To accomplish that you may start an interior design business.

Interior design is a rapidly growing industry. Because now people prefer to engage expert interior designers. 

In India, the average monthly salary for an interior designer is about 30,900 INR. The survey shows the minimum salary is 14,800 INR, while the maximum is 48,500 INR.

As you see it's the best time to start your own interior design business.

Starting a business might be difficult, but we're here to offer you the boost you need to get started. You may become successful if you follow our comprehensive advice on how to start an interior design business.

First, you need to learn everything about this industry. Then make your interior design business plan and figure out how to get interior design clients. 

Let's start with how to start an interior design business. Then we will discuss how to grow the interior design business and the interior design business plan. Stay tuned with us!

Recommended: How To Grow Wedding Photography Business - 31 Best Proven Marketing Ideas

How to Start Interior Design Business?

1) find your niche.

The sorts of services you'll provide should be your first priority. 

Each of us has our own unique style, and you can flourish at what you’re most familiar with. So, identify your speciality and your approach and engage the relevant people.

Let’s see the sectors of interior design business:

Interior designers can serve in a variety of fields like:

• Residential
• Hospitality

All these areas need customized interior themes. So, your business can offer specialized interior design.

Antique furniture refurbishment, synthetic flower decoration, basement renovation, floors, custom furniture coverings, and interior lighting are a few sub-sectors of the interior design industry. You can add these services too.

Read This: Detailed SEO Explanation- Everything You Need to Know for SEO Strategy!

Choose from the types of interior design businesses you have expertise in and work in.

2) Know your ideal audience to start interior design business

You need a clear understanding of your perfect customer to start an interior design business. Make a buyer persona. 

Figure out who your target customers are for your interior design business.

Determine the size of the market and the particular products that are popular among your target audience.

Try to know what your potential clients anticipate from your interior design services. Because they must have a defined goal and vision.

 Must Read: Google My Business Complete Guide

3) Select and register your brand name

You'll have to think of a name for your interior design business. It should be unique and relevant to your work. Have a long brainstorming session and note down anything you come up with.

You can use the Business name generator for this. Register your business name with your region once you've decided on a name. 

To avoid getting into problems later, be sure you have all of the permits necessary by law. It's very important to start interior design business.

The trade license will cost Rs. 2500 per year and company registration is a one-time charge of Rs. 25000.

4) Create a unique logo for your interior design business

Design a distinctive logo after choosing your interior design business. 

The importance of a logo is widely established for creating a brand identity. When consumers see a logo in ads, offerings, and other marketing materials on a regular basis, they come to recognize the brand and business. 

For the basics, you can use online logo makers like Canva , Looka , Graphicspring , etc.

But the best is to hire a logo designer for this. Here at Favfly , we have an excellent design team. Feel free to contact us for your personalized logo!

5) Create an interior design portfolio

Interior design portfolio shows your expertise in the field. It's more like a catalogue of your services.

Clients must be able to view interior design components in 3D. Showcase numerous interior designs to the customer so they have a variety of alternatives to pick up one.

Include prominent photos of previous interior design work. Also, put up some experimental themes. These exclusive designs will attract clients.

It's fine if you don't have a portfolio to start interior design business. You don't need a large portfolio at the beginning.

Here are some examples of things you may put in your portfolio:

• Photographs of your own residence
• 3D space visualizations. Utilize interior design software.
• Mood boards
• Photos of locations you've developed for real clients

The portfolio helps to represent yourself as an industry expert. So, your clients will have greater faith in your business and ability for interior design. 

6) Create a stunning website and start interior design business online

Customers for interior design do not engage interior designers personally these days. They begin their search for interior design firms online using search engines like Google, Bing, etc.

Next, they examine all of the content available on several interior design websites, such as prices and services. Then choose according to their criteria.

So, it's very crucial to have a website to start an interior design business.

Buy a domain name and develop a website for your interior design company. Your website design should include all of the information like contact details. Make your website a tool for converting visitors into clients.

Add your portfolio on your website's front page. The landing page should be eye-catchy. 

When people click the link to the site, make sure it loads quickly. Improve your website's performance. You can use Page speed checker to measure this.

The site's pages should be easy to navigate. The content on your website should keep your visitors interested. Showcase testimonials from happy clients. 

Having a interior design business website has numerous advantages, including:

• Increased visibility due to the availability of the site 24/7
• Ensure brand recognition through social exposure and engagement.
• Backlinks from respected websites will boost the reputation of your interior design business.
• Through the analysis of user behavior, you may learn more about your clients.
• Response to frequent inquiries on the FAQ page
• Your materials can educate visitors about your company.
• Quickly generate quality leads

It will take some time to develop and polish your website. Don't hurry things, and don't start advertising your website while it's still under construction. Keep in mind that your website is a portrait of you as a designer.

If you want help designing your website, our experienced website designer in Kolkata is a call away! 

7) Fix your pricing

An interior designer must also be knowledgeable about the pricing of various materials on the market.

You'll need to conduct some research when you're ready to determine your pricing. Know the rates for other designers in your region. 

Rates come in a variety of forms, like hourly rate, price per square foot, etc.

Once you've chosen how much you'll charge your customers, you'll need to prepare an agreement and have them sign an interior design contract to finalize the arrangement.

8) Start marketing your interior design business 

Once you have set all the necessary things to start interior business, make an interior design business plan for marketing.  

You can start blogging for content marketing, nurture leads through email marketing. Utilize social media to advertise your company as well. 

Optimize your website for search engines to get free interior design leads. We will discuss these things in-depth in the next section “how to grow interior design business?” 

You can hire a digital marketing team to promote your business in the right way. Several businesses have tremendous growth results from our all-in-one digital marketing services in kolkata .

9) Attend trade fairs and meet experts

Trade shows are fantastic venues for gaining market visibility for your company. Whenever an interior design trade exhibition comes to your area, make sure to join.

You may come into contact with a number of well-known interior designers. Make direct touch with them. Their few good words about your business might help you land some major clients and deals.

Give your business card to individuals and experts when you meet them. Your business card should be eye-catching and include your contact details and website URL.

10) Make a separate work area for yourself

You can concentrate on building a work area for yourself after taking care of the digital part to start interior design business. A dedicated workplace will make you more efficient. 

If you have the funds to rent or purchase office space. do so. If you're on a low budget, though, you can operate from home. Set up your team and use project management software like ClickUp or Trello .

These 10 tips may have given you an idea of how to start interior design business. Implement the advice in your interior design business plan. You will soon understand how to get interior design clients.

In the next section, we will discuss how to grow interior design business.

How to grow interior design business?

After doing this far, surely you have one question. How to get interior design clients?

Getting regular clients is one of the most difficult challenges for interior designers.

You may have set many goals. They are like increasing traffic to your website, turning a lead into a client, or being more well-known in your area. 

Here we will see how to grow interior design business and how to get interior design clients in 2022.

1) Begin with a plan and make a strategy

If you don't have a plan, you'll never be able to construct something worthwhile. Before taking any action, every successful firm needs a detailed business plan. 

First, identify the obstacles for your business and find probable solutions. Then set your KPIs to measure your growth. Schedule your new service launches. Now that you have your first-year goals, begin to put together a strategy. 

This interior design business plan will help to achieve success.  

2) Facebook advertising for hyper-target potential clients

For interior designers, Facebook advertising is an overlooked source of new clients. You may start with a little budget to discover how well it benefits your company.

The amount of detail with the targeting is one of Facebook ads' major highlights. Depending on your business, you can specify the location, age, and gender.

There are precise targeting choices like hobbies, behavior's, and even educational levels. You can experiment with different ads to determine which ones work best for you.

You can target folks who like your Facebook page, have attended events you've organized, and so on.

We've witnessed designers with Facebook ads get excellent outcomes with many new customers per week.

3) Word-of-mouth marketing can help you get more referrals

Interior design recommendations might be vital to your business's existence. So, how can you get interior design referrals?

To begin, simply ask your current clients. As you are currently working with them and they are aware of your abilities.

Create a referral reward program for your prior and present clients. It will enhance your efforts to promote recommendations.

You can give coupons for your own offerings to urge the client to return. Make those coupons giftable so they may be used as an easy referral tool.

4) Get potential customers on Houzz

Houzz marketing may generate consistent leads for your interior design firm. The key to success on the site is to maintain your profile up-to-date and comprehensive.

Houzz's platform has revolutionized the way people locate and hire experts. It receives a lot of traffic from search engines for terms like "interior designs near me.”

So, use Houzz to grow your interior design business.

5) Enable Google to Aid You by Boosting Your SEO

With the right effort, SEO can put leads on autopilot for your business. It will produce a constant stream of new leads each month.

To begin, we, the best SEO company in Kolkata are the finest platform for SEO to construct your site. 

The very first step in SEO is to do keyword research. These keywords are specific search phrases you should target to increase traffic to your website.

Use Ubersuggest to accomplish this for free. After identifying your target keywords, implement them for productive use.

Add your keywords in crucial locations on a particular page. It will enhance your chances of ranking for that term. Try to organically incorporate your keywords in areas like:

• Title of the page
• Description of Metadata
• Heading Tags
• Alt Tags for Images
• Internal Hypertext Links

Besides keywords, another most crucial thing to rank in Google is backlinks. Add relevant links for your content. You can obtain quality backlinks by:

• Request to be included on your suppliers' websites. You can give them a testimonial.
• Write guest blogs of other interior designers
• Obtain coverage in your local press 
• Use influencer marketing. You can ask leading bloggers or brands to write for you

Finally, if you're a local interior designer, make sure your Google My Business profile is set up. They show up in nearly every ‘local' search.

Utilize local SEO to find potential customers in your neighborhood. 

Remember, SEO is not a rapid solution and requires time to reflect its advantages. But if you do it, you may reap the benefits substantially.

To know more about “ what is SEO and how it works ” you can read this guide on SEO.

You can't accomplish everything on your own as a newbie. Here at Favfly, we have a number of SEO experts in Kolkata who can help you with optimizing your website.

6) Google Adwords allows you to invest a little and get a lot

It's simple to appear at the top of Google if you pay them. However, it does not have to be expensive.

The price is determined by how competitive the keyword is. It means how many individuals are competing for the same position.

You've done your keyword research in order to optimize your site for SEO. So, you know precisely which keywords you should try producing ads for.

Google Ads include a variety of advertising alternatives, such as Search Ads, Display Ads, Shopping Ads, Video Ads, and so on. 

The ideal way to spend money on Google Ads is to select the appropriate keywords and experiment with smaller budgets. Then see whether they convert into leads and clients. If they don't, either you're targeting the wrong keywords or your site isn't effective enough to sell.

7) Blogging Can Help You Build Your Brand

Businesses that use blogs in their content marketing strategy get 67% more leads than those that don't. 

A blog may help you boost your interior design business and turn it into a client-generating powerhouse.

It allows you to demonstrate your abilities in a unique way. Incorporate images in your own work to stand out. Avoid making your blog completely sales.

Instead, use your blog to establish yourself as an authority in the business. It will educate the visitors about your services. Also, aids in the development of your company's brand image.

You may highlight other designers, businesses, and bloggers who might become useful sources of potential clients. It will increase the website traffic as well as your business. 

You can also set up a photographic blog to showcase your design. Or make an online gallery page.

Read Top 15 Benefits of Blogging for Your Business! and know how much blogs help in SEO. So, be careful about your content strategy!  

8) Build a mailing list for your own community

Email marketing is a low-cost yet successful approach to creating a strong customer base. First, collect email addresses from people who visit your company's website.

Build your email list and create a drip campaign. You can use Mailchimp , omnisend , sendinblue , etc.

Create your own newsletter and invite others to sign up for it for free in exchange for their email addresses. You can give a content offer like free home decor ideas for 2022 

Then, send them emails outlining some of the most important aspects of your interior design services. You can add an invitation to follow you on social media, or showcase some of your projects. Or you can inform them about your services

Many of them will be interested in your business. Some of them may hire you to decorate their homes.

Do your email marketing in a professional manner. Your emails should convince the recipients to hit the call-to-action button.

Email marketing may be a source of regular, high-quality clients who adore your work.

It may convert potential leads into clients in no time if done correctly. 

You should contact your email list at least once a month with fresh content you've generated, and new projects you've worked on. That keeps them engaged.

Want to have some idea about email campaigns? Read Top 5 Reasons Why Email Marketing Is Important For Your Business! now.

9) Unleash Instagram's Full Potential

Instagram is the social media of choice right now. Because of its major picture focus. And it fits nicely into the interior design business.

It may be a very effective tool for promoting your interior design firm. Exhibit your personal style to potential customers from all over the world.

When someone comes across your profile, they should have a good idea of what you're all about. Your pictures should be enough to encourage them to follow you.

The quality of your images must be HD. It may give your profile the extra boost it needs to get visitors to click the tempting follow button.

You should try to publish 2-3 times each day to get some substantial following numbers. Use scheduling apps like Schedugram or Later to bulk schedule your post in advance.

When posting, make sure you're using the correct hashtags. Hashtags can be used to find Instagram postings. You can get free interior design leads.

Do not underestimate the power of social media in advertising your new interior design business. You can use sponsored advertisements.

So, you understand the power of social media marketing. Include this in your interior design business plan today!

Market your interior design company utilizing some creative techniques for rapid growth. Make sure to develop a strong visual identity for your company in order to leave a lasting impact on your customers.

We are always open to assist you. All the best for your new interior design business! 

How To Write a Winning Interior Design Business Plan + Template

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

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

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

Download the Ultimate Business Plan Template

What is an Interior Design Business Plan?

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

Why Write an Interior Design Business Plan?

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

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

Writing an Effective Interior Design Business Plan

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

Executive Summary

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

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

Company Description

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

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

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

Industry Analysis

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

Questions to answer include:

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

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

Customer Analysis

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

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

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

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

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

Competitive Analysis

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

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

Marketing Plan

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

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

Operations Plan

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

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

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

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

Management Team

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

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

Financial Plan

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

This includes the following three financial statements:

Income Statement

Your income statement should include:

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

Sample Income Statement for a Startup Interior Design Business

Balance sheet.

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

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

Sample Balance Sheet for a Startup Interior Design Business

Cash flow statement.

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

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

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

Sample Cash Flow Statement for a Startup Interior Design Business

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

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

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

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

Finish Your Business Plan in 1 Day!

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

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

Other Helpful Articles

How To Develop Your Interior Design Mission Statement + Examples

Detailing the Interior Design Scope of Work + Template & Sample

Interior Design Business Forms & Templates

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

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

How to Start an Interior Design Business: 7 Key Steps to Succeed

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The main objective of an interior design firm is to create visually appealing environments for their clients. Recent surveys indicate that there has been a significant rise, approximately 30%, in the number of people seeking the help of an interior designer to enhance their residential or commercial spaces. This could be attributed to the increasing number of millennials choosing careers in the arts and media over more conventional career paths. Interior designing presents an attractive career path that has the potential to be highly profitable and even lead to business ownership in India. In this article, you will discover how to start an interior design business in India.

How to Start an Interior Design Business

Market research.

Before starting an interior design business in India, conducting thorough market research is important. This involves identifying your target market – the individuals or businesses who are most likely to use your services – and analyzing the competition to understand their strengths and weaknesses. By doing so, you can differentiate your business and develop a unique selling proposition that sets you apart from the competition.

It’s also important to understand the demand for interior design services in India, including current trends, popular styles, and pricing expectations. By gaining insights into the market and competition, you can make informed decisions and develop a strategic plan that will help your interior design business thrive in India’s competitive marketplace.

Developing a Business Plan

After completing your market research, developing a comprehensive business plan is critical to business success . One important aspect of the plan is defining the business structure, whether it be a Sole Proprietorship, Partnership, or Private Limited Company. This decision will determine the legal and tax obligations and establish the structure of the business. The services to be offered must also be identified, including the types of projects and services, such as residential or commercial design.

Pricing strategy is another crucial element of the plan, requiring thorough market research to determine competitive yet profitable pricing. Additionally, budgeting and financial projections are key components, including forecasting revenue and expenses, estimating startup costs, and identifying potential funding sources. A well-crafted business plan can provide a roadmap for success in the interior design industry in India.

Legal Requirements

Complying with legal requirements is a critical aspect of starting an interior design business in India. First and foremost, registering the business with the Registrar of Companies (RoC) is a fundamental legal requirement that ensures the business obtains legal recognition and protection. Additionally, obtaining necessary licenses and permits is also essential, such as building permits, fire safety permits, and any other permits required by local or state authorities to operate the business legally and compliantly.

Understanding the Goods and Services Tax (GST) registration process is equally important, especially for businesses with an annual turnover of over Rs. 20 lakhs. This registration process involves obtaining a unique GSTIN (Goods and Services Tax Identification Number) required for tax compliance and invoicing purposes. By adhering to these legal requirements, entrepreneurs can establish a legitimate and trustworthy interior design business in India that operates transparently, avoids legal penalties, and earns the trust of their clients.

Starting an interior design business in India requires careful consideration of the financing options available to you. Identifying your startup costs is the first step in determining your financing needs. This includes expenses such as renting office space, purchasing equipment and supplies, marketing and advertising costs, and professional fees.

Once you have a clear understanding of your financial requirements, you can explore various financing options, including personal loans, business loans, and crowdfunding. While personal loans can be a viable option, it’s important to carefully consider the terms and interest rates before making a decision. Ultimately, securing the right financing can provide the capital you need to launch and grow your interior design business in India.

Branding and Marketing

Branding and marketing play an important role in the growth of your business. Building a recognizable and memorable brand requires careful consideration of factors such as logo design, colour scheme, and overall visual style that aligns with your business’s values and personality. A professional website and social media presence are also critical components of building a strong brand and showcasing your portfolio to potential clients.

Effective marketing strategies, including targeted advertising and email campaigns, can help expand your reach and attract new clients. Networking events, collaborations with other businesses, and word-of-mouth referrals can also be powerful marketing tools. By investing in branding and marketing, you can establish a strong foundation for your interior design business in India and attract the right clients for sustainable growth.

Hiring Staff

Hiring staff is an essential component of building a successful enterprise. The first step is to identify the roles and responsibilities that need to be filled, such as interior designers, project managers, administrative staff, and marketing professionals. Once these positions are established, finding and hiring qualified staff members is the next critical step. This can be achieved through networking with industry professionals or by posting job listings on relevant websites.

However, attracting the right people is only the first step in creating a thriving team. Effective staff management is also critical for business success, and this can be achieved by providing clear expectations, regular feedback, and opportunities for professional development. By prioritizing staff management and building a strong, motivated team, interior design business owners in India can position themselves for long-term success.

Managing Operations

When starting an interior design business in India, it is essential to establish efficient operational processes and procedures that enable your business to function smoothly. It involves setting up systems for managing projects, tracking expenses, and organizing client information to ensure that all operations run like clockwork. Additionally, maintaining accurate bookkeeping records is crucial for understanding the financial health of your business and making informed decisions.

As your client base grows, maintaining strong client relationships is essential to build a positive reputation and ensure repeat business. Providing outstanding customer service, including clear communication, timely project updates, and attention to detail, can help your business stand out and lead to long-term success. By prioritizing efficient operational management and exceptional customer service, your interior design business can thrive in India’s competitive market.

Final Thoughts

Launching an interior design business in India may present a series of obstacles, but with the proper approach and resources, it can also be an exceptionally fulfilling pursuit. These guidelines and pointers will aid you in establishing a strong foundation for success in this dynamic field. Keep your eyes on your goals and maintain clear and effective communication with your clients. By remaining dedicated and persistent, you can cultivate a flourishing interior design venture that will set itself apart in the Indian marketplace. Best of luck as you embark on your entrepreneurial voyage!

Shiv Nanda is a financial analyst at MoneyTap who loves to write on various financial topics online. He also advises people on financial planning, investment choices and budgeting skills, and helps them make their financial lives better.

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FREE 13+ Interior Design Business Plan Templates in PDF | MS Word

What is interior design? Interior design is the art of decorating and designing the inner parts of a room, house, or building. People who do interior design work are called interior designers. Through their different unique ideas and designs, interior designers are able to make a space aesthetically pleasing and healthy. You may also see business plan templates.

Interior Design Business Plan Template Pdf Word

20+ project plan template, 15+ sample interior design proposal template, 12+ car wash business plan template.

• Sample Business Plans and Templates
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Interior Design Business Plan Template

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Size: A4, US

Home Interior Design Business Plan

Sample Interior Design Business Plan Template

The demand for interior designs has led to the steady popularity in the business industry. There are more interior design businesses in the present and more people are willing to pay for their services to get their spaces beautified. And just like any other businesses, it requires an interior design business plan. We have here business plan templates that you may use as a reference as we get to know what an interior design business plan is.

Printable Sample Interior Business Plan Template

Size: 157 KB

Home Interior Design Business Plan Sample

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What Is an Interior Design Business Plan?

An interior design business plan is a written formal document that details everything that there is to know and do about starting a new interior design business or planning for an existing interior design business. The business plan mainly focuses on the preparation and planning of the business before it actually starts to operate.

A well-written business plan is beneficial to the business as it serves as its manual or guide on how the business should be started and managed. It also guides the business to the direction where it is most favorable or the direction that will lead to its success. you may also see  Interior Design Contract Templates

Furniture and Interior Design Business Plan Sample

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Interior Business Plan Template

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Free Interior Business Plan Template

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Not all businesses end up successful. Although there are some businesses that proper and continue to exist for a very long time or for a lifetime, there are also businesses that end up getting in debt or end up closing.

This is due to the lack of proper planning and preparation which can be easily done with a small business plan . To learn more about business plans you can check out other related articles on our website, like  Sample Marketing Business Plan Templates and  Farm Business Plan Template .

Interior Business Plan Template Sample

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Startup Business Plan Template

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What Are the Essential Elements of Business Plan?

A business plan can be proven effective and useful if it includes all the necessary essential elements that make up a business plan. A business plan is said to be well-written and complete if it includes all these essential elements.

1. Executive Summary

The executive summary is a brief overview of the entire business plan and must be at least one page long. It is the very first part that you will see in a business plan, but since it is a summary of everything about the business plan, it is best to write the executive summary last. It must also be written in a way that will attract or convince readers to read the entire contents of the sample business plan.

2. Company Description

As its name implies, the company description part of your business plan provides detailed information about the company and what it does as a business. This is where you go into details about the products and services that your company or business offers, what types of customers you serve, why customers should do business with you, what advantages you have over your competitors, and many more. You may also see  Interior Design Proposal Templates

3. Market Analysis

If you want to succeed in the industry where your business belongs, you need to have an in-depth understanding of how it works. Included in the market analysis section of your business plan are details about your target market, like their demographics, size, growth rate, etc. You may also like  Business Proposal Templates

4. Competitive Analysis

Every business will always have a competition, and all businesses must observe and analyze their competitors, not to ruin them but to gain a competitive advantage over them and stand out from the rest. It is important that you include this in your business plan and plans your actions or steps ahead so that your business will not get left behind when your business actually starts to operate. You may also see  Retail Business Plan Templates

5. Management & Operations

This is the section of your business plan where you put your organizational chart and identify the key individuals of the business as well as their corresponding roles and responsibilities. This is also where you need to provide details about the organizational structure of the business, ownership information, and the number of employees your business has. You may also see  Project Plan Templates

6. Marketing and Sales

Here you will need to explain how you are going to attract customers and what strategies you will be using to effectively sell the products and services that your business offers. You may also like  Marketing Business Plan Templates

7. Financial Summary

The last part of your business plan is the financial summary. In this section, the financial health and status of your business is provided including income statements, cash flows, and other financial sheets. Businesses that seek funding from investors must have this section written as detailed as possible. It must also be current and accurate as this is a critical part that investors would want to check out to use as basis for making their final decision. You may also see  Construction Business Plan Templates

Having knowledge of the essential elements of a business plan not only helps you further understand what it is but it also guides you with what you need to put and look for in a business plan, whether you are writing one or reviewing one. Other related articles you may find useful include  Business Plan Profit and Loss Template and  Coffee Shop Business Plan Template .

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Small Business Trends

How to start an interior design business.

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

Why Launch an Interior Design Business?

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

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

Foundations of Interior Designing

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

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

Necessary Education and Certifications

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

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

Interior Designer Portfolio

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

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

Key Steps in Starting an Interior Design Business

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

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

Understand the Interior Design Market

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

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

Consider Business Structure and Legal Requirements

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

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

Craft a Business Plan for Your Interior Design Venture

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

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

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

Build Your Brand in the Interior Design Industry

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

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

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

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

Price Your Interior Design Services

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

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

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

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

Market Your Own Interior Design Firm

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

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

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

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

Form Collaborations and Partnerships

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

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

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

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

Stay Updated with Design Trends

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

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

Expand into Niche Design Areas

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

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

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

Essential Interior Design Software

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

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

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

Initial Costs to Start a New Interior Design Business

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

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

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

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

Is Starting an Interior Design Business Profitable?

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

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

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

Challenges Faced in Interior Design Businesses

Running an interior design business is not without its challenges.

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

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

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

FAQs: How to Start an Interior Design Business

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

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

Are qualifications needed to be an interior design professional?

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

How much do interior designers make?

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

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

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

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Interior Design Business Plan

Start your own interior design business plan

Barton Interiors

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

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

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

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

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

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

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

Keys to Success

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

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

Products and Services

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

Products available through Barton Interiors include:

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

Product and Service Description

Our primary points of differentiation offer these qualities:

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

Competitive Comparison

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

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

Sales Literature

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

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

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

Company Ownership

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

Company Locations and Facilities

Barton Interiors is operated from a home office located in Boulder, Colorado.  A room is dedicated to support a work area, a client contact work center, and display samples of design concepts, products, and past work. 

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

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

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

Market Segmentation

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

Geographics

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

Demographics

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

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

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

Psychographics

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

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

Target Market Segment Strategy

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

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

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

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

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

Market Trends

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

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

The “do-it-yourself” (DIY) market continues to grow and closely parallels the professional home-improvement market. DIY market growth is attributed to an increased presence of products, the personal satisfaction experienced, and the cost savings clients realize. A portion of the do-it-yourself market is the “buy-it-yourself” (BIY) market. Consumers are buying the product and arranging for someone else to do the fabrication and/or installation. This is more expensive then the do-it-yourself approach, but less costly than buying finished products from other sources. It also provides similar feelings of creativity, pride, and individuality associated with direct creative involvement. This sense of “participation” in home decorating is an important factor for many of these committed clients.

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

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

Market Growth

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

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

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

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

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

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

Market Needs

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

Service Business Analysis

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

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

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

Distributing a Service

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

Competition and Buying Patterns

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

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

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

Main Competitors

Current local competition includes the following:

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

Catalog Competitors

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

Discounters

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

Business Participants

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

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

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

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

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

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

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

Strategy and Implementation Summary

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

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

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

SWOT Analysis

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

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

Opportunities

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

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

Strategy Pyramid

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

STRATEGY #1 – Generating Referrals

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

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

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

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

STRATEGY #2 – Product Sales

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

         Program #2A – Seminars and demonstration promotions.

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

   Tactic #2B – Promotion of art and antiques.

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

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

STRATEGY #3 – Generate Awareness Through the Website

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

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

         Program #3B – Integration of completed client work.

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

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

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

Value Proposition

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

Competitive Edge

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

Marketing Strategy

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

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

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

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

Pricing Strategy

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

Promotion Strategy

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

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

Distribution Strategy

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

Marketing Programs

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

Barton Interiors’ four main marketing strategies are:

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

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

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

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

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

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

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

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

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

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

Positioning Statement

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

Sales Strategy

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

Web Plan Summary

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

Sales Forecast

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

Sales Programs

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

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

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

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

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

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

Strategic Alliances

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

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

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

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

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

Organizational Structure

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

Personnel Plan

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

Financial Plan investor-ready personnel plan .">

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

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

<p size="4" Financial difficulties and risks

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

Worst case risks might include

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

Break-even Analysis

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

Important Assumptions

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

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

Key Financial Indicators

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

Start-up Summary

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

Projected Profit and Loss

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

Projected Cash Flow

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

Projected Balance Sheet

Barton Interiors’ balance sheet is outlined below. 

Business Ratios

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

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

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