Home Decor Business Plan Template
Written by Dave Lavinsky
Home Decor Business Plan
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their home decor companies.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a home decor business plan step-by-step so you can create your plan today.
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What Is a Business Plan?
A business plan provides a snapshot of your home decor business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a home decor business or grow your existing home decor company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your home decor business to improve your chances of success. Your home decor business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Home Decor Businesses
With regards to funding, the main sources of funding for a home decor business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for home decor companies.
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How to write a business plan for a home decor business.
If you want to start a home decor business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your home decor business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of home decor business you are running and the status. For example, are you a startup, do you have a home decor business that you would like to grow, or are you operating a chain of home decor businesses?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overv iew of the home decor industry.
- Discuss the type of home decor business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
In your company overview, you will detail the type of home decor business you are operating.
For example, you m ight specialize in one of the following types of home decor businesses:
- Complete home decor service : Full-service home decor design and placement. This type of company utilizes designers who visit in-home clients for consultations and recommendations through the home decor replacement process.
- Restore or replace decor service: Clients request partial home decor service for one room or one area of the home, often with restoration goals for furnishings. Designers visit in-home to fulfill these requests.
- Online home decor service: This service includes online consultations and recommendations for customers via video or by photos submitted. Designers make recommendations for online or in-store purchases.
- Home decor accessory service: Customers may choose to change interior accessories to suit special occasions or seasons. Designers may offer in-home visits and recommendations with follow-up visits.
In addition to explaining the type of home decor business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of home decor clients served, or reaching X$ revenue generated through sales.
- Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry or market analysis, you need to provide an overview of the home decor industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the home decor industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your home decor business plan:
- How big is the home decor industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your home decor business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your home decor business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals or families.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of home decor business you operate. Clearly, homeowners in high-end homes would respond to different marketing promotions than homeowners in starter homes, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are othe r home decor businesses.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes furniture-restoring companies, department stores, furniture stores, paint or wallpaper outlets, upholstery stores, etc. You need to mention direct competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of customers do they serve?
- What type of home decor business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide cost-saving decor ideas for individuals in starter homes?
- Will you offer digital room-mapping services that your competition doesn’t?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a home decor business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type o f home decor company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide brand name accessories at reduced prices, reupholstered furnishings, upscale room designs, or rewards for frequent customers?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.
Place : Place refers to the site of your home decor company. Document where your company is situated and mention how the site will impact your success. For example, is your home decor business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your home decor marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise in local papers, radio stations and upscale magazines
- Reach out to websites
- Distribute flyers
- Engage in email marketing
- Advertise on social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your home decor business, including setting appointments, planning and providing home decor assistance, invoicing clients and paying bills, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client session, or when you hope to reach $X in revenue. It could also be when you expect to expand your home decor business to create a franchise.
To demonstrate your home decor business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing home decor businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a home decor business or successfully running a home furnishings department in a retail store.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you see 5 new clients per day, and/or offer home decor parties within certain neighborhoods ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your home decor business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a home decor business:
- Cost of decor and furnishing samples, photography, videography and office supplies
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of contracted clients you serve.
Writing a business plan for your home decor business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the home decor industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful home decor business.
Home Decor Business Plan FAQs
What is the easiest way to complete my home decor business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your home decor business plan.
How Do You Start a Home Decor Business?
Starting a home decor business is easy with these 14 steps:
- Choose the Name for Your Home Decor Business
- Create Your Home Decor Business Plan
- Choose the Legal Structure for Your Home Decor Business
- Secure Startup Funding for Your Home Decor Business (If Needed)
- Secure a Location for Your Business
- Register Your Home Decor Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Home Decor Business
- Buy or Lease the Right Home Decor Business Equipment
- Develop Your Home Decor Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Home Decor Business
- Open for Business
Where Can I Download a Free Business Plan Template PDF?
Click here to download the pdf version of our basic business plan template.
Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.
We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.
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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how a Growthink business planning consultant can create your business plan for you.
Other Helpful Business Plan Articles & Templates
Home Decoration Business Plan [Sample Template]
By: Author Tony Martins Ajaero
Home » Business Plans » B2C Sector
Are you about starting a home decoration business? If YES, here is a complete sample home decoration business plan template & feasibility report you can use for FREE .
Okay, so we have considered all the requirements for starting a home decoration business. We also took it further by analyzing and drafting a sample home decoration marketing plan template backed up by actionable guerrilla marketing ideas for home decoration businesses. So let’s proceed to the business planning section.
If you are interested in starting a home decoration business, you can be rest assured that there is no limit to the fortune you can make from the industry as long as you are creative and have good networking skills. If you are looking for a business to start as an entrepreneur with a design and creativity background, then you can consider starting your own home decoration company.
Although a home decoration company can be operated from home, especially if it is being managed by an individual, but it pays to operate from an office facility. The truth is that you would need an office space to be able to run this type of business if indeed you want to work for corporate organizations and even government agencies.
Just ensure that you secure an office decent enough to host the caliber of clients you will be dealing with. An office in the business district of your city might just be ideal for you – but all the same, you don’t need to go beyond your means to get a very expensive office space. It is advisable to start your business small and then grow it big.
If indeed you are interested in starting a home decoration company, then you will surely find this comprehensive business plan very helpful.
A Sample Home Decoration Business Plan Template
1. industry overview.
Interior decorators, also known as home decorators, work with homeowners or business owners to furnish and adorn an interior space according to their preferences. The decorator must usually work within a budget and order the necessary design elements for their clients.
The truth is that interior design is a multidimensional vocation that covers activities such as conceptual development, communicating with the stakeholders of a project, management and of course the execution of the design (project).
Home decoration companies are responsible for planning the design of both living and commercial facilities such as hotel, motels and lodges; they have mastered the art of turning their ideas or concept into reality. The projects that home decorators handle can be broad in scope.
It could range from structural modifications to the selection of matching furniture, curtains or blind, wallpaper and lighting et al.
The Interior Designers industry is indeed a big industry that has experienced consistent growth and innovations over the last five years. However, the industry is projected to experience marginally better conditions over the next five years.
As long as the housing market is expected to improve strongly, there will also be corresponding growth for residential interior designers as existing home sales and housing stats make up ground over the five-year period.
So also, increase in corporate profit, growth and expansion of corporate organization will open up business opportunities of interior design companies because there will be need for organizations to remodel their facilities to meet up with changing trends.
Statistics has it that the Interior Designers industry has a low level of market share concentration. For instance, in 2016, the top four leading interior decoration companies accounted for less than 10.0 percent of the industry’s total revenue. It is fact that market share concentration has not changed significantly in the last five years.
It is important to clearly state that the Interior Designers industry is a highly fragmented industry with thousands of players, of which only a small percentage of the players generated an annual revenue exceeding $1.0 million. A large number of players in interior designer industry are self-employed because of the nature of the job they do and of course the low startup capital required to start the business.
The interior design industry is indeed a very large industry and pretty much active in all the parts of the world. Statistics has it that in the united states of America alone, there are about 102,848 registered home decoration cum interior design companies responsible for employing about 127,467 and the industry rakes in a whooping sum of $13bn annually.
In 2014 alone, the federal government of the United States of America spent a total sum of $11,270,048 on Interior Designers. During the period in review, they awarded 437 interior design contracts to 77 interior design companies, averaging a value of $146,364 per company.
The industry is indeed highly competitive and of course a growing industry with steady growth rate of 3.0 percent annually. The interior design industry is very open to any aspiring entrepreneur who has the required skills to start his or her own home decoration business.
As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition.
The interior design industry will continue to blossom because more and more households and corporate organizations are beginning to realize that somehow, they would need the services of home decorators to help give their facility the needed look befitting of their organization or personalities.
From all available statistics, it is safer to say that the industry is growing steadily despite the competitive nature of the industry.
Lastly, some of the factors that encourage entrepreneurs to start their own home decoration company could be that the business is easy to set up and the startup capital is indeed affordable; you can actually start your own home decoration business from the comfort of your house.
All you need to do is to create an office somewhere in your house. People usually pay you for the result you can deliver as it relates to helping them design their facility to their expectation.
2. Executive Summary
James & Janell® Home Deco, Inc. is a U.S based home decoration (interior design) company. We have been able to secure a standard office facility in a busy business district in Las Vegas – Nevada. We are a world class home decoration company that is set to compete in the highly competitive interior design industry not only in the United States market, but also in the global market.
James & Janell® Home Deco, Inc. will be involved in the all aspects of home decoration cum interior design services such as Residential interior design, Commercial (Hotels and Lodges) interior design, Merchandise sales, home decorating consulting services and other related services.
Our business goal is to become one of the leading home decoration companies in the United States and we will make sure that every home decoration job that we do can favorably compete with the best in the industry. Our workers are going to be selected from a pool of talented and highly creative home designers in and around Las Vegas – Nevada and also from any part of the world especially from Milan and Paris as the business grows.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading home decorators in the United States and throughout the globe.
At James & Janell® Home Deco, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
James & Janell® Home Deco, Inc. is founded by two siblings James Creflo and his twin sister Janell Creflo. They both graduated from The Interior Design School of London and they have over the years garnered the required experience that will position them to become a major force to reckon with in the industry in the United States of America and across the globe.
3. Our Products and Services
James & Janell® Home Deco, Inc. was established with the aim of maximizing profits in the interior design industry. We want to compete favorably with leading home decoration and interior design companies in the United States which is why we have put in place a competent quality assurance team that will ensure that all our designs and related services rendered meet and even surpass our customers’ expectations.
Our products and services are listed below;
- Residential home decoration cum interior design services
- Commercial (hotels, motels, and lodges) interior design services
- Merchandise sales
- Home decorating consulting services
- Other related services like giving interior makeover to historic buildings, vehicles, such as ships and aircraft et al.
4. Our Mission and Vision Statement
- Our vision is to establish a standard home decoration company whose services and brand will not only be accepted in Las Vegas – Nevada but also throughout the United States of America and other parts of the world.
- Our mission is to build a home decoration company that will be known to execute top notch projects and to become the number one choice of real estate agencies and other stake holder in the industry. We want to build a home decoration company that can favorably compete with other leading brands in the industry.
Our Business Structure
James & Janell® Home Deco, Inc. is a home decoration company that intends starting small in Las Vegas, but hopes to grow big in order to compete favorably with leading companies in the industry both in the United States and on a global stage.
At James & Janell® Home Deco, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Creative Director
Human Resources and Admin Manager
- Sales and Marketing Executive
- Home Decorators / Interior Designer
Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job result
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Serves as project manager for the organization; works directly with employees
- Responsible for designing concepts for home makeover and facility uplifts
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications / journals; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Ensures that the organization works in line with international best practices.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office and factory activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for James & Janell® Home Deco, Inc.
- Serves as internal auditor for James & Janell® Home Deco, Inc.
Home Decorators/Interior Designers (4)
- Liaising with clients to determine their requirement and budget
- Responsible for inspecting and surveying buildings
- Responsible for negotiating fees and setting schedules for the project
- Responsible for researching and drawing up rough plans
- Responsible for developing detailed designs and choosing materials
- Responsible for supervising the work as it is carried out.
- Responsible for preparing drafts or material based on an agreement brief.
- Research and advice the organization on style, genre and other trendy info as it relates to home decoration/interior design.
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, SMS or phone) provides the client with personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the HR manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
6. SWOT Analysis
James & Janell® Home Deco, Inc. hired the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured home decoration business that can favorably compete in the highly competitive interior design industry in the United States and the world at large.
Here is a summary of the SWOT analysis that was conducted on behalf of James & Janell® Home Deco, Inc.;
Our central strength is no doubt the power of our team; our workforce. We have a team of creative and highly proficient home decorators cum interior designers, a team with excellent qualifications and experience in various niche areas in the interior design industry.
Aside from the synergy that exists in our carefully selected home decorators, we have a robust relationship with key stake holders in the real estate industry and of course our designs and services will be guided by international best practices.
As a new home decoration company in Las Vegas – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from the government and other top profile clients in the already saturated and highly competitive interior design industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
The opportunities in the interior design industry is massive considering the number of individuals and corporate organizations acquiring new properties and would need the services of home decorators to give the facilities facelift. As a world class home decoration company, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power hence lesser houses would be purchased. Another threat that may likely confront us is the arrival of a new home decoration company in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
Although there are top flight institutions where people go to study interior designing, but it common to find people who don’t have formal training running their own home decoration business. This is what accounts for the high number of sole proprietorship in the interior design industry.
Aside from on-the-job training, most home decoration cum interior design companies usually offer short training (could be in – house) in specific areas such as presentation skills and IT packages.
As a home decorator, you are expected to keep tabs with new trends that are always coming up in the industry. Most interior designers ensure that they follow the traditions or patterns that are synonymous to a region. For instance, as a home decorator in the Arab world, your designs are expected to follow the traditions and pattern in the region.
8. Our Target Market
There is a wide range of both corporate and individual clients who cannot successfully move into their new homes/facilities without hiring the services of home decorators. As a matter of fact, without the services of home decorators or interior designers, the interiors of facilities won’t be as beautiful and welcoming as we can see these days.
We will ensure that we develop strategic pacts with property developers, property management companies, local builders, realtors and home improvement firms. This will give us several options to generate revenue for our company.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and individuals who we know can’t do without our services. We have conducted our market research and survey and we will ensure that all our home decoration services is well accepted in the marketplace. Below is a list of the people and organizations that we will market our services to;
- Construction Companies
- Property Development Companies
- Home Owners
- Corporate Organizations
- Realtors —for their clients’ homes
- Home Improvement Companies
- Commercial builders of office and home complexes
- Home builders’ associations
- Furniture stores
- Paint and wall paper stores
- Flower shops
- Real Estate Owners, Developers, and Contractors
- The Government (Public Sector)
- Religious Organizations (Church hall and other places of worship)
Our competitive advantage
The competition in the interior design industry is getting stiffer by the day, you have to be highly creative and come up with appealing designs and concepts in order to survive in the industry. The industry is indeed profitable and at the same time a highly competitive industry; it enjoys strong demand as people continue to purchase or move into new apartments and remodel old ones.
Clients will only hire your services if they know that they can get nothing but the best from you. We are quite aware that to be highly competitive in the interior design industry means that you are not only expected to deliver consistent and highly creative designs, but you must be able to meet set targets.
Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient interior designers, a team with excellent qualifications and experience in various niche areas in the interior design industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
We are not ignorant of the fact that there are stiff competitions in the interior design industry; there are loads of home decorators and interior designers jostling for contracts which is why we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the real estate market and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of James & Janell® Home Deco, Inc.
Our goal is to grow James & Janell® Home Deco, Inc. to become one of the leading home decoration companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Las Vegas – Nevada but also in other cities in the United States of America.
James & Janell® Home Deco, Inc. is set to make use of the following marketing and sales strategies to attract clients and win home decoration and interior decoration contracts;
- Introduce our home decoration company by sending introductory letters alongside our brochure to corporate organizations, realtors, religious organizations and key stake holders in the real estate industry.
- Promptness in bidding for home decoration or interior design contracts from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations
- List our business on yellow page ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent design and services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
James & Janell® Home Deco, Inc. is established with the aim of maximizing profits in the interior design cum real estate industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of our clients.
James & Janell® Home Deco, Inc. will generate income by offering the following home decoration services and other related services;
- Home decorating services consulting services
10. Sales Forecast
One thing is certain, there would always be households and corporate organization who would need the services of home decorators or interior designers whenever they purchase new home, office facilities or are moving into a new facility .
We are well positioned to take on the available market in interior design/real estate industry and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow our home decoration company to enviable heights.
We have been able to examine the home decoration market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for James & Janell® Home Deco, Inc., it is based on the location of our business and of course the wide range of our services and target market;
- First Fiscal Year (FY1): $150,000
- Second Fiscal Year (FY2): $400,000
- Third Fiscal Year (FY3): $750,000
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same home decoration services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market.
We are set to become the number one choice for both corporate and individual clients in the whole of the Las Vegas and beyond which is why we have made provisions for effective publicity and advertisement of our Home decoration company. Below are the platforms we intend to leverage on to promote and advertise James & Janell® Home Deco, Inc.;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community-based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, LinkedIn, Pinterest, and Google + et al to promote our services
- Install our billboards in strategic locations all around Las Vegas – Nevada
- Distribute our fliers and handbills in target areas
- Contact corporate organizations and residents in our target areas by calling them up and informing them of James & Janell® Home Deco, Inc. and the services we offer
- List our home decoration company in local directories / yellow pages
- Advertise our home decoration company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are branded with our company logo.
12. Our Pricing Strategy
If you are conversant with the interior design industry, you will realize that the pricing structure ranges from per hour billings to fixed fee to even per square foot billing. Most interior decoration companies adopt all the available pricing systems as it applies to the nature of the job or project they are expected to execute.
At James & Janell® Home Deco, Inc. we will adopt all the pricing systems as is obtainable in the industry but we will ensure that we keep the prices of our services a little below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services.
In addition, we will offer special discounted rates to all our customers at regular intervals. We are aware that there are some one-off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by James & Janell® Home Deco, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that James & Janell® Home Deco, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Starting a home decoration company is cost effective because on the average, you are not expected to acquire expensive machines and equipment.
What you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furnish and equip the office, the amount needed to pay bills, purchase relevant software apps, promote the business and obtain the appropriate business license and certifications. Basically, these are the areas we are looking towards spending our startup capital on;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for liability insurance, permits and license will cost – $3,500
- Acquiring an office space that will accommodate our employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
- Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- The amount required to purchase the needed software applications – $ 3,500
- The amount of required for launching an official website will cost – $500
- The amount needed to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred thousand (200,000) U.S. dollars to successfully setup a medium scale but standard home decoration company in the United States of America.
Generating Startup Capital for James & Janell® Home Deco, Inc.
James & Janell® Home Deco, Inc. will be owned by two siblings James Creflo and his twin sister Janell Creflo. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
It is easier for businesses to survive when they have steady flow of business deals/customers patronizing their products and services.
We know that if we continue to come up with highly creative and unique home decoration cum interior design concept and excellent job delivery for both corporate organizations, government agencies and households, there will be a steady flow of income for the organization.
Our key sustainability and expansion strategy are to ensure that we only hire creative, competent and selfless interior designers, create a conducive working environment and employee benefits for our staff members. In the nearest future, we will give our most dedicated and prolific employees the opportunity to be part owners of the business via owing shares in the company.
We know that if we implement our business strategies, we will achieve our business goals and objectives in record time.
- Business Name Availability Check : Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility plus renovation of the facility: Competed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the real estate industry: In Progress
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Start Your Home Decor Business in Minutes
How to Start a Profitable Home Decor Business [11+ Steps]
Imagine transforming your passion for beautiful interiors into a thriving business, right from the comfort of your own home. This article is your roadmap to launching a profitable home decor business, turning your creative flair into an income stream, and making your entrepreneurial dreams come true.
Our Shortlist Steps to Start a Profitable Home Decor Business:
- Draft a home decor business plan.
- Pick a business name & business entity that works best for you.
- Find ways to finance your home decor startup.
- Open a professional business bank account.
- Set up your accounting & tax reporting.
- Obatin the necessary licenses & permits for your home decor business.
- Purchase the equipment, software, & tools needed.
Startup Costs for a Home Decor Business:
Initiating a home decor business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $11500 for launching such an business. Please note, not all of these costs may be necessary to start up your home decor business.
- Home Decor Startup Expenses
Table of Contents: (Page Navigation)
11 steps to start a profitable home decor business with little to no money:, 1. home decor business plan..
Starting a home decor business can be an exciting opportunity to capitalize on your creativity and passion. Before setting out, it is important to put together a plan with your desired goals and objectives. To do so, begin by reflecting on the market you want to target and assess the competition you may come across. Consider researching local and online retailers in the same field who could potentially be your customers or suppliers. Additionally, you should narrow down the specific type of goods or services you want to provide and draft a budget. When developing your budget, think about what it will cost to start the business such as licensing fees, rent payments and supplies. Decide how much time you are willing to commit to the business and what sources of income you have coming in during the course of operations. Additionally, factor in potential marketing expenses like advertising campaigns or PR costs. Lastly, think about what other resources you may need such as employees, contractors or volunteers and set aside enough money for them as well.By creating a plan for your home decor business at the outset, it will give you a better understanding of what resources are available to you and how much time and money will be required for success. With this knowledge, it becomes easier to then move on to acquire funding for your business as well as assemble materials needed for distribution, packaging and promotion.
- Check out our entire small business plan directory
2. Form the Legal Business Entity.
If you're thinking of starting a home decor business, one of the first things you'll need to do is decide on the type of business entity to register. The four most common types are sole proprietorship, corporate organization, limited liability company (LLC), and partnership.
Each type has its own advantages and disadvantages, so it's important to carefully consider your options before making a decision.
- A sole proprietorship is the simplest type of business to set up, but it offers no personal liability protection.
- A corporate organization involves shareholders electing board members to run the business, and requires an annual meeting with stockholders' meetings every three months.
- An LLC provides extra protection for investors by limiting their liability exposure and allows flexibility in operating the business.
- A partnership involves business owners and partners, and can offer personal liability protection.
When deciding on the right type of entity for your home decor business , it's important to consider your liability exposure and your goals for the business. If you're just starting out and selling to family and friends, a sole proprietorship may be enough. But if you're looking for more protection or to grow your home decor business, a corporate organization or LLC may be a better choice. Be sure to weigh the pros and cons of each type and seek professional advice if necessary.
After you've chosen your business entity, you'll need to register it with the state in which you'll be doing business. This will give you the legal protections you need to operate your business and protect your personal assets. To register, you'll need to file the appropriate paperwork with your state's Secretary of State office . Be sure to research the legal and financial requirements for your chosen entity and comply with all necessary regulations.
Starting a home decor business can be a rewarding and profitable venture, but it requires careful planning and preparation. By choosing the right business entity, registering properly, and taking other necessary steps, you can set yourself up for success. Don't hesitate to seek advice from professionals or other business owners if you have questions or concerns.
- Check out our U.S. Registered Agent Directory
- Check out our U.S. LLC Directory
Form an LLC in your state!
3. Source Financing for Your Home Decor Business.
When starting a home decor business, it's essential to have a solid financing plan in place. While there are several financing options available, it's important to carefully evaluate each one, as each decision may have long-term financial implications for both you and your business.
If you're just starting out, you may only need a few hundred dollars to cover initial costs, but it's still worth considering the following financing options:
1. Raising money from friends and family:
- Pros: Access to capital without giving up equity; potential for low interest rates.
- Cons: May strain personal relationships if things don't go as planned; lack of expertise and experience from investors.
2. Bootstrapping by tapping into your own savings:
- Pros: Complete control over your business; potential for greater profits in the long run.
- Cons: Limited initial funding; potential for greater personal risk.
3. Sourcing investment from outside investors:
- Pros: Access to a larger pool of capital and expertise; potential for valuable partnerships and connections.
- Cons: May require giving up equity or control of your business; potential for high interest rates or strict repayment terms.
4. Obtaining a bank loan:
- Pros: Typically low interest rates; predictable repayment terms.
- Cons: Requires good credit history and collateral; may be difficult to obtain for a new business.
5. Getting funding from a hard money lender:
- Pros: Quick access to capital; flexible repayment terms.
- Cons: High interest rates; potential for strict repayment terms and penalties for default.
Remember that these are just a few of the many options available to you. The key is to make informed decisions that work best for your current situation. Consult with your accountant before making any final decisions.
Keep in mind that there's no right answer when it comes to determining how much money to invest in your home decor business. However, the above options can provide some guidance on which financing options may be the best fit for you and your home decor business.
By carefully considering your financing options and seeking professional advice, you can set your home decor business up for success.
4. Open a Business Bank Account.
Opening a business bank account for your home decor company may seem overwhelming, but it doesn't have to be. Choosing the right type of account depends on your specific needs and the amount of money you'll be depositing.
There are three common types of business bank accounts:
- Business Checking account : The most common type of business bank account is a checking account. Checking accounts are easy to open and offer a variety of features and benefits that can be helpful for businesses. One of the biggest advantages of a checking account is that it allows you to easily deposit and withdraw money as you need it. You can also write checks from your checking account, which can be helpful for paying bills or suppliers.
- Business Savings account : Another popular type of business bank account is a savings account. Savings accounts earn interest on the money that you deposit, so they can be a great way to grow your home decor company's cash reserve. However, savings accounts typically have lower interest rates than checking accounts and may have withdrawal limits.
- Business credit card : If you're looking for a more robust bank account for your business, you may want to consider opening a business credit card. Business credit cards can be very helpful for businesses that need to make large purchases or need to build up their credit history. However, business credit cards typically have high-interest rates and may have annual fees.
It's important to shop around and compare features and fees before making a decision. Some banks offer specialized accounts and services for small businesses that may be a better fit for your specific needs.
As always, consult with a certified professional accountant before making any final financial decisions. Once you've found the right bank account for your home decor company, you'll be one step closer to building your business.
5. Set up Your Accounting and Taxes.
As a new home decor business owner, it's important to prioritize setting up a proper accounting system to effectively manage your finances. Doing so will allow you to track expenses, revenue, receipts, taxes owed, and more.
There are a few different ways to establish an accounting system for your business, including using online accounting software such as QuickBooks or Xero, or hiring an accountant to handle it for you.
If you decide to manage the accounting on your own, it's crucial to choose a user-friendly system that you can easily navigate. As you begin tracking your income and expenses, you'll gain valuable insights into where your money is going and where you can make cuts or budget for future expenses. Be sure to regularly reconcile your accounts and update your records , ideally on a monthly basis, to stay on top of your finances and avoid headaches down the road.
Don't hesitate to reach out to your accountant or financial advisor for guidance on choosing and using an accounting system that's right for your business. Their expertise and support can help you navigate the accounting process with confidence.
- Find account software for your business
6. Obtain Home Decor Business Permits and Licenses.
Starting a new home decor business can be an exciting adventure, but it's important to remember that obtaining the proper licenses and permits is a critical step in the process. Without the right licenses and permits, you could face fines, penalties, or even legal trouble down the line.
The types of licenses and permits you need may vary depending on the location of your business, the services you offer, and the products you sell. It's important to research the requirements for your specific business and location.
To make sure you have all the necessary licenses and permits for your home decor business, start by contacting your local business licensing office or chamber of commerce. They can help guide you through the process and provide you with the appropriate forms and applications to fill out.
Once you've obtained all the necessary licenses and permits, you can officially open your home decor business and start operating with confidence. Don't forget to renew your licenses and permits regularly to stay compliant with local regulations.
By taking the time to obtain the proper licenses and permits , you'll be setting your home decor business up for success and avoiding any potential legal issues in the future. Good luck on your new venture!
7. Purchase Equipment, Software, Supplies & Tools Needed.
Starting a home decor business can be a challenging task, and acquiring the proper equipment, tools, and supplies is crucial for success.
To help you get started, here are some tips to keep in mind:
- Identify your equipment, tools, and supply needs: Determine the necessary equipment, tools, and supplies you will need to run your business effectively. Create a list of both big and small items that you'll require.
- Conduct supplier research: Research various suppliers and compare prices, quality, and customer reviews to get the best deal.
- Consider leasing or renting: If you're on a tight budget, consider leasing or renting equipment instead of buying it outright. This option can help save you money, especially for expensive equipment that you won't use frequently.
- Get everything in writing: Before making any purchases, make sure to get all the details in writing, including price, warranty, and delivery date.
- Stay organized and manage inventory: Keeping track of your equipment, tools, and supplies is essential for smooth business operations. Implement an inventory management system to track inventory levels and reorder supplies in advance.
By following these steps, you'll be well-equipped to run your home decor business efficiently and successfully.
- Check out our small business software & tools review directory
8. Create a Brand Identity for Your Home Decor Company.
Creating a brand identity for your home decor company can be very difficult. There are so many factors to consider, from the logo design to the colors you use.
But if you take the time to plan and focus on what you want your customers to feel, you can create a brand identity that will set your business apart from the rest.
Here's how to get started:
1. Define your home decor company's purpose and values.
What do you want to achieve with your business? What kind of feeling do you want your customers to have when they think of your home decor brand? These are important questions to answer before you start creating any visuals for your brand.
2. Choose a color scheme that reflects your company's personality.
Colors can communicate a lot about a brand, so it's important to choose wisely. If you're not sure where to start, try looking at other brands in your industry and see what colors they use.
3. Develop a unique logo that represents your home decor brand.
This is often the first thing people will think of when they hear your company name, so it's important to make it memorable. Work with a professional designer to create a logo that's both visually appealing and reflective of your brand values.
4. Create consistent branding across all channels.
Once you have your logo and color scheme, make sure you use them consistently across all of your marketing materials, from your website to your business cards. This will help reinforce your brand identity and make it easier for customers to recognize your company.
Creating a strong brand identity is essential for any home decor business, but it doesn't have to be complicated. By focusing on your company's purpose and values, you can develop a brand that will resonate with your target audience. With a little planning and some creativity, you can create a brand identity that will make your home decor company stand out from the rest.
9. Build a Beautiful Website.
In today's digital age, having a well-designed website is essential for any business to succeed, including your home decor business.
A beautifully crafted website will attract and engage your customers, provide a professional image of your brand, and showcase your products and services.
To create an exceptional website for your home decor business, consider the following steps:
- Define your website goals and target audience. This will help you determine what type of website design and content will resonate with your customers.
- Hire a professional website designer or work with a freelancer. Look at their portfolio and ask for recommendations from other business owners to find someone who has experience designing websites for your industry.
- Plan your website structure and hierarchy. Decide what pages and content will be included on your website and how they will be organized. This will ensure that your customers can find what they're looking for quickly and easily.
- Create stunning visuals and graphics that are aligned with your brand. Use high-quality images, videos, and other visual elements to showcase your products and services.
- Write compelling website copy. Your website's text should be well-written, informative, and persuasive, highlighting the benefits of your products and services.
- Test your website before launch to ensure that all the features and functionality work correctly.
By following these steps, you can create a website that is visually appealing and effective in promoting your home decor business. Don't hesitate to seek professional assistance if you need help getting started or have any questions along the way. We're always here to help!
10. Create a Company Email Address & Phone Number.
Having a professional business phone number and email address is an important aspect of running a successful home decor business. Not only does it give your business a more professional appearance, but it also makes it easier to stay in touch with customers and manage business communications.
To set up a professional phone number for your business, you can purchase a number from a telecom provider like Twilio or Grasshopper. You will need to create an account with the provider and register your new business phone number. This will give you access to features like voicemail, call forwarding, and more.
In addition to a business phone number, you should also set up a professional email address using a service like Google Workspace or Microsoft 365 . This will give you access to features like spam filtering, calendar integration, and more. You can configure your email account to forward messages to your business phone number so that you never miss an important message from a customer.
While you can definitely use your personal phone number and email address when you're first starting out your home decor business, as it grows, it's important to look into other communication options to ensure that you're able to manage your business communications in a professional and efficient manner.
By following these steps and setting up a professional phone number and email address for your business, you'll be able to communicate with customers more easily and give your business a more professional appearance. This will help you to build trust with your customers and grow your home decor business over time.
11. Make a Go-To Market Launch Strategy.
Launching a new business is an exciting time, and marketing is a crucial part of getting your home decor business off the ground. Here are some additional tips to improve your marketing strategy:
- Define your target audience: Before you start marketing your business, it's essential to determine who your target audience is. Knowing your ideal customer will help you tailor your marketing efforts and make them more effective.
- Build a strong brand: Your brand is the foundation of your marketing strategy. Make sure you have a clear brand identity, including a logo, brand colors, and messaging that aligns with your target audience.
- Create a content strategy: Developing a content strategy can help you create a consistent message across your social media, website, and blog. This can include creating blog posts, social media posts, and other types of content that align with your brand and target audience.
- Leverage social media: Social media is a powerful tool for marketing your home decor business. Identify the social media channels that your target audience is most active on, and create a presence there. Engage with your audience, share high-quality images of your products, and run social media campaigns to increase brand awareness.
- Collaborate with influencers: Partnering with influencers in your industry can help you reach a wider audience. Look for influencers who align with your brand and target audience and offer to collaborate with them on social media campaigns or product launches.
- Attend trade shows: Trade shows can be a great way to promote your home decor business, network with other professionals in the industry, and get your products in front of potential customers.
Remember, marketing is an ongoing process, so be sure to track your results and adjust your strategy as needed. With a clear marketing plan and consistent effort, you'll be able to generate buzz and grow your customer base over time.
- Check out all of our small business marketing ideas
You have questions, we have answers.
Frequently Asked Questions:
Below, based on our research are some of the most common questions entrepreneurs have when thinking about starting a business.
What does it cost to start a home decor business?
Are home decor businesses profitable, how to come up with a name for your home decor business, what do you need to do to define your target audience for your home decor business, how does a home decor business make money, list of software, tools and supplies needed to start a home decor business:, what licenses and permits are needed to run a home decor business.
More business resources to help you get started:
- Houzz: A great resource for finding home decor products, as well as trend updates, ideas, and advice.
- Interior Design Magazines: Many magazines such as Elle Decor or House Beautiful have great ideas for home decor.
- Paint Stores: Local paint stores often have great home decorating ideas and advice.
- Pinterest: An excellent source of inspiration for anyone looking to find home decor ideas.
- Home Goods Stores: Home goods stores give customers a great selection of home decor items at affordable prices.
- Home Decor Business Names
- Home Decor Business Plan Template & Guidebook
- Best Home Improvement Business Ideas & Examples in 2023
- Our List of 10+ Best Home Decor Business Ideas:
- 75+ Unique, Creative & Funny Home Decor Business Slogans
- List of the Best Marketing Ideas For Your Home Decor Store:
I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
Get worry-free services and support to launch your business starting at $0 plus state fees.
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- Houzz Pro Learn
- Business Management
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.
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.
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.
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.
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.
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.
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.
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.
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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Interior Design Business Plan Template [Updated 2023]
Interior Design Business Plan Template
If you want to start an Interior Design business or expand your current Interior Design business, you need a business plan.
The following Interior Design business plan template gives you the key elements to include in a winning Interior Design business plan.
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of an example interior design business plan. Once you create your plan, download it to PDF to show banks and investors.
Interior Design Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
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- Business Templates
- Sample Plans
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
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Interior Design Business Plan Template
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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
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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
Size: 958 KB
Interior Business Plan Template
Size: 98 KB
Free Interior Business Plan Template
Size: 14 KB
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
Blank Business Plan Template
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Business Plan Sample Template
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Simple Business Plan Template
Size: 33 KB
Sample Business Plan Template
Size: 30 KB
Startup Business Plan Template
Size: 25 KB
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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Home Decoration Fabrics Business Plan
Start your own home decoration fabrics business plan
Interior Views LLC
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.">.
Interior Views is a retail store offering home decorator fabrics and complementary home accessories and resources. It is now approaching its fifth year in business. This destination store offers the advantages of providing fabrics specifically designed for home decorator use in fabric widths of 54 inches and greater. Over 900 fabrics are available on the floor at any time with more than 10,000 sample fabrics for custom “cut” orders. Customers see, touch, feel, and take the fabric to their home as they work through with their purchasing decision.
Interior Views has learned much from the past years of operation, the market has changed, and will be making key decisions, including the upcoming 5-year lease. Now is the time to step back, look at the past, and attempt to set a strategic direction for the future. This is the primary purpose of this business plan. It will address location, finance, product, and service issues that will be key to the future success of the business.
Interior Views currently has a local informational content website but has not given it the attention or focus needed to assess its marketing potential. The site offers information content, but it does little to produce revenue or enhance the image of the business.
Market research indicates a specific and growing need in and beyond the local area for the products and services Interior Views offers in the local retail market it serves and there are indications that Web sales will play an increasing role in connecting customers with sellers. The most significant challenge is that the core target customer, women between the ages of 35 and 50, are some of the least likely of groups to shop on the Web. Shopping for decorator fabric presents an additional challenge.
The online marketing objective is to actively support continued growth and profitability of Interior Views through effective implementation of the strategy. The online marketing and sales strategy will be based on a cost effective approach to reach additional customers over the Web through the use of an eBay website to generate attention and revenue for the business. The Web target groups will include the more Web-savvy younger customer base that the store currently serves (women between the ages of 25 and 35) and out-of-area potential customers that are already shopping on the Web for the products Interior Views offers. The eBay website will focus on its selection, competitive pricing, and customer service to differentiate itself among other Internet options.
- Maintain a healthy gross margin each month.
- Generate sales each business day each month.
- Realize a modest annual growth rate this year.
- Increase revenues through eBay-based sales to $5,700 per month by the end of the first year, with a 5% growth rate thereafter.
- Meet the needs of customers outside the immediate serving area through eBay/Web accessibility.
Interior Views LLC is a store for discerning, quality-conscious buyers of decorator fabrics and complementary home accessories and furniture. The store celebrates the home through the color and texture of fabric. The experience informs, inspires, and shows people how to transform their home into a unique and personalized expression of themselves. Interior Views seeks to encourage people to imagine what can be, and help make this vision a reality.
1.3 Keys to Success
The primary keys to success for the company will be based on the following factors:
- Sell products of the highest quality with excellent customer support
- Communicate with our customer base through continued use of the newsletter, postcards, and our website.
- Maintain gross margins in excess of 45%
- Retain customers to generate repeat purchases and make referrals.
- Generate additional sales to cover all expenses in support of the website as an individual profit center.
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- Business Plans Handbook
- Business Plans - Volume 10
- Home Décor Products Manufacturer Business Plan
Home Décor Products Manufacturer
BURTON DECOR, INC.
14275 Washington Avenue Skokie, Illinois 60077
Burton Décor manufactures high-quality specialty home décor products for the mass market, specifically items designed for the Christmas season. This plan raised more than $1 million in capital for the company's owners.
DESCRIPTION OF BUSINESS
Products & services offered, market analysis, location of business, competition, application & expected effect of investment, financial data.
Burton Décor, Inc., designs and develops specialty Christmas and soft (also known as "cut and sewn") home décor products manufactured in India. India's extraordinary fabrics and handiwork are not readily available in other countries and stand out from the typical mass-produced product currently available. These unique, value-priced products will be targeted to U.S.-based mass merchants such as Sears, Target, and Wal-Mart. Specifically, Burton Décor will bring a high-end look to the mass market.
Burton Décor aims to offer unusual, unique specialty items at competitive prices. Beautiful handiwork such as beading, embroidery, and weaving will help merchants stand out from their competitors and draw in shoppers. Although Burton Décor will offer narrow product lines as compared to their competitors, the company will produce in high volumes to meet the demands of mass merchants. In addition, Burton Décor can customize products to suit individual buyers' tastes.
John Smith, the man behind Burton Décor, has the product development experience, design talent, and established relationships necessary to meet those demands. Along with his 20 years of retailing and interior design experience, John spent the last two-and-a-half years working for Tuppi, one of the nation's leading gift product importers to mass merchants. His sourcing, product development, and production experience, in combination with his design talent and people skills, has allowed him to develop the know-how and relationships necessary to understand and meet the needs of mass merchants.
As a direct importer, Burton Décor products will be shipped from the factory directly to the retailer. As such, Burton Décor will carry no inventory, with production beginning only when a purchase order is received. Payments between retailers and Burton Décor, and between Burton Décor and its factories will be made by letter-of-credit, resulting in minimal financial exposure.
Burton Décor develops the designs, samples, and packaging for specialty Christmas and soft home décor products manufactured in India. Its product lines are meant to broaden the offerings of mass merchants, with unique handiwork such as beading, embroidery, and weaving in beautiful silks, velvets, and pashmina. In order for buyers to review the product lines, samples of each product are displayed in Burton Décor's Chicago showroom.
Burton Décor's product lines will be narrow and focused on the unique fabrics, colors, and beautiful handiwork typical of India. The lines will have a specific point of view and, as such, will not try to be all things to all buyers. The product categories for which Burton Décor will design products are:
Burton Décor's philosophy is that it is possible to feature well-designed, fashion-forward, high-quality products at competitive prices. The four cornerstones of that philosophy are:
- Design: Well-designed, fashion-forward products for the mass market
- Quality: High-quality products produced in a quality-controlled environment
- Value: Offering well-designed, quality products at affordable prices
- Relationships: Listening to our buyers and building trusting relationships with them
The product lines will feature a distinct point of view, yet products can be customized to suit individual buyers' tastes. Burton Décor will work closely with buyers to build their businesses because they want the merchants to succeed. Burton Décor does that by listening and responding to their needs. As a mass merchant buyer recently told John Smith, "You're the only person I trust because you're the only one who doesn't try to sell me something I don't want or need." This sentiment is the underpinning of Burton Décor's philosophy.
Mass merchants want high-quality, fashion-forward products at competitive prices because they want to offer their customers a high-end look at an affordable price. India is an untapped geographic resource.
In the current marketplace, China is India's biggest competitor. While China offers good quality and great prices, the level of creativity and craftsmanship is limited. China's strength is in setting up factories to do mass runs. India offers great creativity, great quality, and great prices. The drawback has been their inability to offer mass merchants a way to buy consistently well-designed and well-produced products in one centralized location.
Burton Décor offers mass merchants the opportunity to draw in customers with products heretofore unavailable at these price points. Mass merchants can:
- Bring high-end looks to the mass market, by offering their customers well-designed, fashion-forward products at affordable prices
- Buy unique products with unusual handiwork at competitive prices
- Round out and add depth to their departments
- Stand out from their competitors
- Buy products of India in a centralized buying location
- Enjoy the security of knowing they are buying well-designed, quality-controlled products
- Benefit from Burton Décor's retailing, design, and production experience
Burton Décor products are developed within the context of mass merchant price points. Burton Décor wants to provide great design and great quality at a great value. The standard industry markup on Christmas and home décor products is 30 to 40 percent. Burton Décor is structured in such a way that overhead is kept low and the markup is 25 percent. Burton Décor is able to do this because of two cost-effective differences from their competitors: (i) no warehouse and (ii) no inventory.
Burton Décor will be working with a new, Wal-Mart-approved factory located in India not far from Mumbai (Bombay). This factory will be the primary production facility for Burton Décor products. The factory owner, Bob Davidson, is a local businessman who has had a close working relationship with John Smith for several years and will also act as the agent for Burton Décor.
The production cycle will be as follows:
- Once the factory receives an order, the factory, in turn, places the orders for fabric—which takes 7 to 10 days, depending on the specific fabric used.
- The fabric is then delivered on the 15th day from the order date, at which point the fabric is cut. Overall, the first 30 days from the order date go into procuring fabric and cutting.
- Once the pieces are cut, they are sent for embroidery and stitching, and then sent back to the factory for final production.
- Fabric and work quality are inspected at each stage. Sign-off samples for Burton Décor will be used for quality control.
- Orders will require a lead time of 90 to 150 days, depending on the work and quantities involved.
- The ICD ("Inland Container Depot") is 2 to 3 kilometers away from the factory site. Containers will be packed in the factory.
- All customs clearance formalities will be handled at the ICD, after which the containers will be sealed for inland transportation to the port in Mumbai. From there it will be shipped to the customer. Payment will be made by letter-of-credit.
- Transit time to the East Coast is 30 days and to the West Coast is 45 days.
Burton Décor will enter the marketplace by developing its Christmas line for the Christmas 2003 buying season, as outlined below. Buyers typically fly to Hong Kong in October and/or January in order to buy their overseas merchandise for the Christmas season at least one year in advance.
- Spring/Summer 2002: John Smith will design the Burton Décor Christmas line
- September 2002: Burton Décor's Chicago showroom will have samples and begin bringing in buyers to introduce them to the company and the Christmas line
"Today, Christmas is part of the gift industry, part of the home décor industry and even part of the fashion industry. Christmas décor...is being reinterpreted through the same prisms of style and culture and self-expression that influence other consumer categories." —Mary Ford, Editor, Selling Christmas Décorations, March 2002
Burton Décor's target markets are the Christmas and home décor departments of mass merchants. The synergy between the two is clear, as illustrated in the quote above. By targeting both markets, Burton Décor can reduce the seasonal earnings fluctuations typical of Christmas-only vendors. Both markets are fashion-driven, with buyers always looking for the next new thing—in terms of design and resources.
Today's mass merchants want to offer broader looks in their Christmas and home décor departments. They want to offer products and looks from more than one country in order to:
- Round out product selection by offering unusual, unique specialty items
- Add eye-catching products to draw in customers
- Appeal to the growing ethnic diversity of their customer base
- Stand out from competitors
Consumer tastes are becoming more sophisticated as their exposure to global influences increases. Television shows such as "Martha Stewart," "Oprah," and those on HGTV have broadened the horizons of consumers. Add to this the "bargain as fashion" message of Target stores, and you've got consumers who want high style, but at an affordable price.
The country's trend toward cocooning at home has increased the demand for decorative home accessories in rich colors and fabrics. Combine this trend with the more cost-conscious consumer and you've got the mass merchant customer who wants it all: high style at an affordable price. Buyers understand these trends and want to exploit them. They understand that accessories can change the look of a room without refurnishing—tapping into the consumer's fashion and budget demands.
Current trends demonstrate another important factor at work in the marketplace: Consumers are more ethnically diverse than ever, and they want to embrace their cultural differences. Mass merchants want sources that can tap into the ethnic diversity that is their customer base. Buyers are looking for new resources with fresh design ideas, and India is an untapped geographic resource.
Retail merchants and their customers are increasingly demanding the handcrafted, detailed look typical of India's artisans. Trend-setting merchants such as Pottery Barn, Crate & Barrel, and Z Gallerie have been sourcing India for the last several years. They manufacture and import their own products from their own India-based resources. These retailers have invested in their own product development departments, which allows them to successfully source new markets.
Mass merchants, however, are not able to dedicate such substantial financial resources and still maintain their low price points. They want to follow the trends and offer their customers similar looks, but at affordable prices. However, India does not have the infrastructure in place to service them. Mass merchants want to find resources ready to produce high volumes of desired items upon demand.
Below is a brief geographic analysis of the Christmas and home décor marketplace, specifically focusing on countries manufacturing cut and sewn products.
- Philippines: Although they do intricate, incredibly beautiful work, their prices are very high. In addition, their manufacturing is set up as a cottage industry and, as such, is too small to handle the volume mass merchants demand.
- China: The quality, details, and types of materials used are good, not great. They do not have the creativity and handiwork abilities that are available in India. China's strength is in setting up factories to do mass production runs. Although the prices for their product have been very low, that pricing strategy has come under increasing pressure as the Chinese government cracks down on manufacturers' "flexible" accounting, resulting in higher tax payments.
- India: They are known for their fabrics (silks, velvets, pashmina), and their handiwork (beading, embroidery, weaving). Currently, India has no infrastructure for large production runs. The Wal-Marts of the world don't have the time, design capabilities, know-how or ability to control the process from afar—it's too much of a headache for them to go to India, and they do not have the contacts necessary to make it work.
Burton Decor's Comparative Advantage
India is a difficult country to work with due to cultural and legal issues. There are no copyright laws in India, and while agents and manufacturers will promise almost anything, having them deliver on those promises is anything but reliable. The key to success in India is finding a resource that understands design and production requirements while also being trustworthy and reliable—difficult qualities to find in India. John Smith has developed just such a relationship, which is the key to Burton Décor's ability to service U.S.-based mass merchants. Burton Décor's agent and primary manufacturer, Bob Davidson, states, "Remember, this is India and there are no copyright laws. Business is based purely on trust, which is a very rare commodity."
Burton Décor will establish itself by building on the strong buyer relationships John Smith developed during his years at Tuppi. Based on those relationships, Burton Décor can arrange meetings with the Christmas buyers, and then leverage those relationships to arrange for meetings with home décor buyers.
The key to Burton Décor's sales strategy is showing the product lines to the right buyers. Burton Décor understands that cross-selling among the departments within a store is an overlooked, yet strategic advantage in retailing. Cross-selling will set Burton Décor apart from their competition. For example, gift bags and wire-edged ribbon are product categories sold in both Christmas and stationery/gift departments. Each department has separate buyers with different budgets. Typically, vendors only target one department's buyer, thereby missing out on sales opportunities within the same organization. Burton Décor will not let those strategic opportunities slip away.
Most vendors participate in trade shows, which can cost $10,000 per show. However, these shows target smaller retailers. Since Burton Décor is targeting mass merchants, the company can use their marketing dollars more effectively by flying in buyers who might not otherwise come to Chicago. It is important to note that Burton Décor will attend trade shows in order to keep abreast of the trends and competitors' product lines.
Burton Décor is specifically targeting high-volume retailers serving the value-conscious consumer. These retailers fall into numerous categories. Several of these categories, along with examples of specific retailers, are listed below.
- Mass Merchants: Wal-Mart, Target, Sears
- Catalogue: Spiegel, Lillian Vernon, Fingerhut
- Craft/Garden: Frank's Nursery, Garden Ridge, Michael's
- Drug/Hardware: Walgreen's, Rite Aid, Ace Hardware
- Warehouse: Sam's Club, Lowe's, Costco
- Bed/Bath: Linens 'n Things, Bed Bath & Beyond
Burton Décor will lease 3,000 square feet of office and showroom space (2,000 for office and 1,000 for showroom). Rent is approximately $22/square feet annually, totaling $66,000/year or $5,500/month. For budgeting purposes Burton Décor is assuming an annual increase of 3 to 5 percent.
The space will be located in or near the Chicago suburbs of Lincolnwood, Skokie, or Des Plaines because they are conveniently located near O'Hare Airport and the rent is lower than in Chicago.
There are literally thousands of design and manufacturing companies in the Christmas and home décor marketplace. Typically, competitors fall into one of two categories: (1) The vast majority offer a product assortment that is too broad and lacks an appealing point of view or look. The price point may be attractive, but the product is mundane and the same as what their competitors are showing, or (2) the products are designed well and offer an exciting look, but the price point is too high.
As a result, the competition for mass merchant buying dollars is not especially competitive. Vendors consistently target the high-end buyers at merchants such as department stores and specialty stores. No one is thinking both "fashion forward" and "volume," which leaves the market open for Burton Décor. An analysis of Burton Décor's four nearest competitors follows.
Who they are.
Competitor #1 designs and develops Christmas-related products. They have direct import and domestic product lines. The company is based in Illinois and is privately owned by Loonis-X Corp. Competitor #1 has been in business for more than 20 years. Estimated annual revenues are $300 million.
Product categories include: lights, trees, mouth-blown glass ornaments, table linens, animation, tree skirts, stockings, ribbon and bows, wreaths and garland, and bead garland. The company imports primarily from China. Competitor #1 offers a domestic line, requiring them to warehouse inventory domestically. This allows them to sell to smaller shops and to sell smaller quantities to customers buying less than a container-load.
- Marketing/merchandising. They put together beautiful, eye-catching presentations in showrooms located at prime addresses. They display the showroom like a high-end department store; i.e., products are not just thrown on a shelf. Detail-oriented.
- Offer better product for the price. Competitor #1 spots high-end trends and develops knock-offs at affordable prices.
- If one category is not selling well in a particular year, Competitor #1 will adapt quickly by jumping into another category to make up the dollars lost for that year.
- They do not build their business from year to year. When a particular category starts doing well for a competitor, Competitor #1 changes direction and chases the business in that same category while ignoring the categories that they had been building. As in a plate spinning circus act, they let plates drop as they run to spin others.
- Inventory risk—by offering a domestic line and warehousing the product.
What Was Learned from Watching Their Operation
- The importance of presentation
- Offer a good product for the price
- Always demand more from the manufacturer—design for the high-end first and adjust manufacturing and design details affecting the price at a later stage.
Competitor #2 designs and manufactures holiday items for six holidays: Halloween, Thanksgiving, Christmas, St. Patrick's Day, Easter, and July Fourth. They have direct import and domestic product lines. The company is based in New York and is privately owned by Alan Brown, an Israeli-born engineer. Competitor #2 has been in business for approximately 15 years. Estimated annual revenues are $100 million.
Competitor #2 designs their own fabrics. They focus primarily on wire-edged ribbons and bows, although their product line also includes glass ball ornaments. Competitor #2 has begun to enter the home décor market with products using fabric matching their ribbon, e.g., table linens, table runners, and gift bags. The company manufactures its products in Guatemala—they are the largest employer there. Until Christmas 2002, Competitor #2 has been Kmart's largest Christmas supplier (now it will be Martha Stewart).
- Lowest price point on ribbon (because they are the manufacturer).
- Owner is very analytical; he's very good at analyzing his business.
- Year to year he knows what items are selling and helps buyers choose their assortments.
- Poor people skills; inflexible and unaccommodating with buyers, resulting in lost business.
- Not creative. They offer the same looks year after year, with very similar fabrics. They do not develop "looks," so what they offer looks mundane, boring. Alan thinks the fabrics make a look when, in fact, it's the application that makes a look.
Competitor #2 controls the design and manufacture process from beginning to end, so they are able to control costs. (However, John can accomplish the same thing with close working relationships.)
Competitor #3 designs and manufactures Christmas and holiday items for Halloween, Christmas, Valentine's, and Easter as well as home textile products. The family-owned company is based in Mumbai, India, and has an office in New Jersey. It has been exporting its products for more than 15 years. Exports are estimated to be $20 million annually.
Product categories include: tree skirts, stockings, mantel scarves, table linens, gift bags, napkin rings, kitchen textiles, bath, bedding, and window accessories. They have been building their Christmas and holiday business for the last three years.
- Nice looking designs, but not fine-tuned for the western market (gaudy, overdone).
- Offices, showroom, and development room in India were very impressive.
- Very impressive operation; very organized and methodical, clean (rare in India), like offices in the U.S. Their research department has everything categorized and filed. Workflow, paperwork is very organized. The division of responsibilities is very thorough so nothing falls through the cracks.
- Their factory is primitive, set up as a cottage industry
- No quality control
- Poor marketing skills
Competitor #4 is the Christmas products division of a metallic yarn manufacturer based in Mumbai, India. Competitor #4 designs and manufactures Christmas-related products. The parent company has been in business since 1962, while Competitor #4 has been in business since 1999. Exports are estimated to be $2 million annually.
Product categories include: tree skirts, stockings, wire-edged ribbon, table linens, table runners, and gift bags.
- Incredible design talent for fabrics; great creativity.
- They have very good quality and nicely designed products, based on their samples; however, it's hard to tell whether that can be maintained in production.
- They have fabulous raw materials and know-how of handiwork techniques.
- Their designs are not fully developed; they don't fully understand design concepts (creating a "look") or scale. They have no idea how to put their creativity to its best use.
- They do not have enough business to sustain a factory, so they outsource by using a cottage industry setup.
- Poor marketing skills.
They have an operation with wonderful potential. Burton Décor would like to take them over.
History of Principals
John Smith has put together a team with years of industry-specific experience and demonstrated talent. The professionals listed below cover the four functional areas critical to Burton Décor's success:
design and product development management manufacturing sales John Smith —John is a seasoned design and retailing professional with more than 20 years of experience. His educational background includes degrees in both retail management and interior design. His professional experience includes: Product development for Tuppi, including design, international sourcing and production Department store and specialty store retailing for 10 years Interior design for 10 years John's product development experience encompasses the process from start to finish, i.e., from putting the design on paper to production to packaging to putting it on a retailer's shelves. In addition, he has successfully managed a staff of 10 and regularly managed multiple time-sensitive projects simultaneously. Bob Davidson —Bob and his family own and run three factories in Nepal and India. Their manufacturing experience dates back to 1974. Bob has substantial experience in managing both the manufacturing and exporting functions of their businesses in India, most recently for Octagon Textile Industries. Prior to that he managed production and quality control for a division of Mip Plastic Industries. Bob's factories have been exporting garments and textiles to the U.S. since 1989. They provide in-house product development and research facilities for their production and marketing, and they maintain consistent quality control and sound financial practices. Their factories are experienced in working with top U.S. retailers such as Wal-Mart and Kmart. All their factories meet international standards and U.S. regulations. Bob has a bachelor's in Commerce degree from Bombay University, and spent an additional year studying Business Administration at the International University of America in San Francisco, California. Jane Doe —Jane has more than 15 years of product design, graphic arts, and supervisory experience. Specifically, she has 15 years of computer design experience; 20 years of traditional design, rendering, and illustration experience; and 15 years of experience working with overseas vendors in Europe, Asia, and India in producing graphics and products. Jane has built in-house product design and graphics departments for three companies. In addition, her professional experience includes: Product Design: Giftware/collectibles/decorative, tins/bath and body/pet; gifts/decorative design/seasonal and holiday items/leather (and fabric) goods, e.g., business cases, men's accessories, luggage, and gift items. Graphic Design: Graphics incorporated with product, package design, decorative design, catalog, and photography. Concept, design, and production for products, packaging, and graphics. Management: Supervised designers, retouchers, and freelancers. Managed employees, workflow, clients, and budgets for graphics/multimedia studios consisting of 12-15 employees.
John Smith, CEO —John will oversee the sales and design functions of Burton Décor. He will work directly with the factories and the agent in India by overseeing their performance and negotiating the first cost of the products. Until a CFO can be hired, John will also handle all financial issues. Salary: $130,000.
Bob Davidson, Agent —Bob will be Burton Décor's primary contact and agent in India, and Bob's factory will be the primary manufacturer of Burton Décor products. He will oversee production at his factory and the outside factories by monitoring and coordinating production, quality control, packaging, customs paperwork, and transportation until the release of goods at the port. Salary: Compensation will be included in Burton Décor's cost of goods sold (first cost).
Jane Doe, Vice President of Design —Jane will be responsible for all graphic design and product development, i.e., packaging, presentations to buyers, as well as the Burton Décor showroom display. Jane will handle the product lines from conception through packaging, which includes developing themes and keeping abreast of marketplace trends. Long-term, Jane will build and manage the art department, including in-house and freelance artists. Salary: $80,000 + bonus.
Elizabeth Brown, Vice President of Sales: Elizabeth will be responsible for developing the marketing plan to meet sales objectives, as well as establishing/maintaining customer relationships. Elizabeth will make initial contact with buyers, handle day-to-day contact and follow-up with buyers, i.e., she will manage the process from the time the order is placed to the time the merchandise is off the retailer's shelves. Long-term, Elizabeth will build and manage the sales department, including outside sales reps. Salary: $80,000 + bonus.
Office Manager: Reports to VP of Design. Responsible for day-to-day office operations; will assist CEO and VP of Design. Must be highly organized and have the ability to multi-task. Attention to detail a must. Salary: $50,000.
Graphic Designer: Reports to VP of Design. Responsible for designing packaging for each product as well as for private label merchandise. Must be fluent in design software for the Mac, excel in conceptual design, and have experience in marketing trends and working with overseas vendors. Experience also required in working on product/decorative design and working with printers and production files. Salary: $40,000.
Artist: Reports to VP of Design. Responsible for conceiving, designing, and producing artwork for home décor and Christmas product lines. Must be fluent in design software for the Mac, excel in conceptual design, and have experience in marketing trends and working with overseas vendors. Experience also required in working on product/decorative design and working with printers and production files. Salary: $30,000.
Import Manager: Reports to VP of Sales. Responsible for building product database, putting together price quotes for buyers, issuing purchase orders and following through on sales, delivery, and payment approval. Must be highly organized and have the ability to multi-task. Attention to detail a must. Salary: $30,000.
Sales Assistant: Reports to VP of Sales. Responsible for supporting Sales Department. Must be highly organized and have the ability to multi-task. Attention to detail a must. Salary: $28,000.
Order Expediter: Reports to Import Manager. Responsible for assisting in putting together price quotes for buyers, issuing purchase orders, and following through on sales and delivery. Must be highly organized and have the ability to multi-task. Attention to detail a must. Salary: $25,000.
VP of Design VP of Sales
Office Manager Artist
Graphic Designer Import Manager Sales Assistant Sales Rep
Human Resources Administration
Burton Décor will outsource the human resources administration function to a Professional Employer Organization ("PEO"). A PEO provides cost effective HR management and administration, and takes on the related employment risks of its clients. Through an operating agreement, the PEO and Burton Décor will create a co-employer relationship between them in reference to their co-employees. Thus, the PEO establishes itself as the "employer of record," responsible for administrative functions associated with the employment of co-employees, while the client is established as the "workplace employer," responsible for directing the manner in which co-employees deliver their work efforts, as well as hiring, disciplining, compensating, reviewing, and terminating such co-employees. More specifically, the PEO will:
- Pay wages, employment taxes, and benefits expenses out of its own accounts
- Report, collect, and deposit employment taxes with State and Federal authorities
In addition, the PEO will act as negotiating agent for Burton Décor in order to secure an attractive employee benefit plan, including some or all of the following benefits: medical, dental, life and long-term disability insurance, 401(k) plan, Section 125 cafeteria plan, and employee assistance plan.
By using a PEO, growing companies such as Burton Décor are able to capitalize on economies-of-scale and offer their employees significantly better benefits—typically equal to those of larger corporations, but at a price a smaller firm can afford. This is particularly important when trying to attract the most qualified and talented employees.
The end result is that a PEO removes the majority of employer-related paperwork from Burton Décor's desk, eliminates the time it takes to shop around for benefits packages, and helps reduce Burton Décor's liabilities by assuming and/or sharing some of the liabilities of being an employer.
Burton Décor is seeking a $650,000 loan and a $650,000 credit line. The funds will allow Burton Décor to:
- Build its management team and personnel infrastructure
- Design, sell, and produce its products for Burton Décor's first selling season
- Purchase the required computer hardware, software, and office equipment
- Set up its office and showroom space
The loan will allow Burton Décor to establish itself in its first selling season. Burton Décor is paid only when the merchant takes possession of the goods at the port in India. The sales cycle—the time from product design to the merchant taking possession—can be as long as twelve months. As such, the loan will enable Burton Décor to make the necessary up-front investment. The credit line will allow Burton Décor to pay off the loan and accommodate the sales cycle on a ongoing basis. Cash flow projections illustrate that the loan is scheduled to be repaid in the third quarter of Year 3.
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