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Interior Design Business Plan Example

MAY.05, 2017

Interior Design Business Plan Example

Do you want to start an Interior Design business plan?

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

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

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

Executive Summary

2.1 about the business.

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

2.2 How Will the Business be Managed? 

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

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

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

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

2.3 Customers of Interior Design Company

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

  • Residential Communities
  • Educational Facilities
  • Event Spaces

2.4 Business Target

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

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

Interior Design Business Plans - 3 Years Profit Forecast

Company Summary

3.1 ownership .

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

3.2 Why the Interior Design company will be started

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

3.3 How the Interior Design company will be started

Step1: Develop a Plan

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

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

Step2: Get Funding

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

Step3: Pick a Location

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

Step4: Go Online

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

Step5: Promote and Market

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

Interior Design Business Plans - Startup Cost

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

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

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

  • Space Planning

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

  • Decorative Selections 

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

  • Furniture & Accessories

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

  • Art Selections

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

Marketing Analysis of Interior Design Company

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

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

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

5.1 Market Trends

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

5.2 Marketing Segmentation

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

Interior Design Business Plans - Marketing Segmentation

5.2.1 Residential Community

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

5.2.2 Offices

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

5.2.3 Educational Facilities

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

5.2.4 Event Spaces

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

5.3 Business Target

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

5.4 Product Pricing

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

Marketing Strategy

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

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

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

6.1 Competitive Analysis

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

6.2 Sales Strategy

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

6.3 Sales Monthly

Interior Design Business Plans - Sales Monthly

6.4 Sales Yearly

Interior Design Business Plans - Sales Yearly

6.5 Sales Forecast

Interior Design Business Plans - Unit Sales

Personnel plan

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

7.1 Company Staff

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

7.2 Average Salary of Employees

Financial plan.

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

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

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

8.1 Important Assumptions

8.2 break-even analysis.

Interior Design Business Plans - Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Interior Design Business Plans - Profit Monthly

8.3.2 Profit Yearly

Interior Design Business Plans - Profit Yearly

8.3.3 Gross Margin Monthly

Interior Design Business Plans - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Interior Design Business Plans - Gross Margin Yearly

8.4 Projected Cash Flow

Interior Design Business Plans - Project Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

  • How do I start my own interior design business?

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

  • What are the 7 elements of interior design?

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

  • How do Interior Designers get clients?

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

  • What are the types of markets for interior design?

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

Download interior design business plan sample in pdf

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

sample interior design business plan pdf

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Decor Blueprint

Tips for a Simple Interior Design Business Plan to get you Started (2023 Edition)

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

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

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

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

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

What's in the article

Why do I Need an Interior Design Business Plan?

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

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

sample interior design business plan pdf

Helping you Understand your Business

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

Your interior design business plan will help you:

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

Helping you Explain your Business to Other People

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

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

sample interior design business plan pdf

Interior Design Business Plan Top Tips

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

Write it for an Outsider

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

Keep it Concise

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

Be Realistic

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

Know your Market

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

sample interior design business plan pdf

What to Include in your Interior Design Business Plan

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

Executive summary

Elevator pitch

About the business owner

Products and services

Business structure

The market: Customers, competitors and market overview

Section 7: 

Sales and marketing strategy

Business operations

  • Business expenses

Section 10: 

Financial forecasts 

sample interior design business plan pdf

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

1. Executive Summary

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

Your executive summary should include:

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

sample interior design business plan pdf

2. Elevator Pitch

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

It should include:

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

3. About the Business Owner

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

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

4. Services you’ll Offer

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

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

5. Business Structure

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

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

sample interior design business plan pdf

6. Market Summary

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

Your market summary can be split into a few sections:

Target customers

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

Competitors

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

Market research

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

7. Sales and Marketing Strategy

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

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

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

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

sample interior design business plan pdf

8. Business Operations

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

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

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

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

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

Your financial forecasts should include:

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

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

About The Author

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Freddie Chatt

Related posts, top tips for creating an interior design proposal, 14 tips for your interior design blog: get more clients from your blog, how to create a mid-century modern-inspired living room, how to create a mid-century modern-inspired kitchen.

sample interior design business plan pdf

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  • 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.

sample interior design business plan pdf

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

sample interior design business plan pdf

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. 

sample interior design business plan pdf

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.

sample interior design business plan pdf

Components of an interior design business plan

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

Executive summary

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

Company overview

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

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

Market analysis

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

Customer analysis

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

Marketing plan

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

Operations plan

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

Management plan

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

Financial plan

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

Lastly, the appendix of your business plan for interior design will include documents to support the details you provided in your plan. This can include resumes, licenses, credit history, legal documents and more to help support the validity of your plan and back up your credibility.

sample interior design business plan pdf

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

sample interior design business plan pdf

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.

sample interior design business plan pdf

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)

sample interior design business plan pdf

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.  

sample interior design business plan pdf

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.

sample interior design business plan pdf

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.

sample interior design business plan pdf

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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How To Write a Winning Interior Design Business Plan + Template

Business Plan-DB

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

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

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

Download the Ultimate Business Plan Template

What is an Interior Design Business Plan?

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

Why Write an Interior Design Business Plan?

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

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

Writing an Effective Interior Design Business Plan

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

Executive Summary

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

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

Company Description

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

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

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

Industry Analysis

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

Questions to answer include:

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

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

Customer Analysis

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

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

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

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

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

Competitive Analysis

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

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

Marketing Plan

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

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

Operations Plan

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

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

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

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

Management Team

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

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

Financial Plan

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

This includes the following three financial statements:

Income Statement

Your income statement should include:

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

Sample Income Statement for a Startup Interior Design Business

Balance sheet.

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

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

Sample Balance Sheet for a Startup Interior Design Business

Cash flow statement.

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

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

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

Sample Cash Flow Statement for a Startup Interior Design Business

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

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

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

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

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How to Write a Business Plan for Your Interior Design Business

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

sample interior design business plan pdf

  • Margot LaScala July 31 2023 . 7 min read

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

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Step 1: Determine Your Niche

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

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

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

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

Step 2: Define Your Services

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

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

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

Step 3: Decide on Your Rate.

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

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

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

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

Step 4: Develop a Marketing Strategy.

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

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

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

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

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

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

Step 5: Get a Solid Accounting System.

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

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

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

Angela Sanders, Contributing Author

Angela Sanders, Contributing Author

Topics: Business of Design

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

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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.

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Sample Interior Design Business Plan Template

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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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What Is an Interior Design Business Plan?

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

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

Furniture and Interior Design Business Plan Sample

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Interior Business Plan Template

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Free Interior Business Plan Template

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

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

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Simple Business Plan Template

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What Are the Essential Elements of Business Plan?

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

1. Executive Summary

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

2. Company Description

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

3. Market Analysis

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

4. Competitive Analysis

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

5. Management & Operations

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

6. Marketing and Sales

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

7. Financial Summary

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

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

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Interior Design Business Plan Template [Updated 2024]

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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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Simple Interior Design Business Plan - Page 1

Simple Interior Design Business Plan

Customize this simple interior design business plan template for a straightforward interior design business plan and much more.

  • Design Style : modern
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Interior Design Business Plan Sample

The interior design services market in the United States is expanding due to the high demand of recreation and smart co-working spaces.  This interior design business plan sample will help new business owners to meet growing market demands.  Our business plan writers created this sample for a company launching in the City of Chicago.

Executive Summary

Smart Spaces Designs (herein also referred to as “SS Designs” or “the company”) was incorporated in the Province of British Columbia on December 22, 2019 by Founder and Director of Designer, Ms. Donna Simmons.  Headquartered in downtown Chicago , Illinois, U.S.A.; SS Designs provides premium interior architecture and design services to an array of commercial clients.

In 2007 Ms. Donna Simmons set out on a lifelong journey to pursue her professional passion, Interior Architecture and Interior Design.  Over the past 15 years, Ms. Donna Simmons has amassed a plethora of experience as a leading interior architect and designer in Dubai, successfully completing a multitude of high profile projects, and being recognized as “Top Interior Designer” by International Design Awards in 2020.

Today, SS Designs operates as a lean enterprise, climbing the ranks with a focus on unparalleled quality and creativity.  This plan is strategic in nature, distinguishing the company’s market position, growth plan, marketing strategy, operational process, and financial projections.  The following is intended to be read in detail by SS Designs team members, and stakeholders.  Over time the contents will be reviewed and revised, making way for the next layer of corporate strategy.

The interior architecture and design industries are primarily driven by the real estate sector.  As such, the company is focused on positioning in areas well known for strong real estate markets including Chicago, Illinois, U.S.A.; Dubai, UAE and eventually Riyadh, SA.  With fruitful connections in Dubai and Riyadh, Ms. Donna Simmons seeks to grow a versatile team in Chicago and service future operations in the middle east from U.S.A..  SS Designs is focused on positioning as a premium service provider and plans to compliment this position with superior service.  More specifically, the company will provide industry-leading communications such as same day responses, same week proposals, and a detailed client discovery process.

This will all be achieved by curating a talented, respected and supported internal team.  Ms. Donna Simmons cherises the hard working and diverse team that has been established to date, and is motivated to provide a promising, challenging and rewarding home for all SS Designs team members. New clients will be generated by continued referrals through the SS Designs ecosystem.  Additionally, a digital marketing campaign will commence in August 2022 to further the company’s brand on social media, organic search and to begin structuring a lead capture and reporting process.  This will all only be possible if the SS Designs team is capable of being self-motivated, executing on each team member’s specific duties, and coming together weekly and monthly to share wins, challenges and new ideas for growth. Ms. Donna Simmons intends to develop a corporate culture which inspires positivity, openness and mutual drive to provide the highest standards of quality and service to each client.

Business Overview

Smart Spaces Designs is a boutique Interior Architecture and Design services firm based in beautiful Chicago, Illinois, U.S.A. The company operates with four team members, while planning to expand the volume of staff consistently over the next five years. SS Designs prides itself on offering high-quality architecture and design, founded on a pursuit to develop innovative and custom fitted solutions. Ms. Donna Simmons believes that each project is unique and deserves its own individual approach; therefore, the company ensures that each project provides guests with a purposeful experience of their respective space.

Mission Statement

Our mission is to be innovators in the interior architectural space for all Chicago consumers.

Vision Statement

Our vision is to leave each client with a space that is practical, customized and simplifies commercial client’s space.

Goals and Objectives

sample interior design business plan pdf

Market Analysis

SS Designs operates in two industries: Interior Architecture and Interior Design.  Interior Architecture being the company’s primary focus.  The following market analysis discusses recent performance in each industry, including future forecasts.

Interior Architecture Industry

Companies in this industry are primarily engaged in the planning and design of buildings and other structures. Consequently, industry revenue is tied to the health of the real estate market. For instance, as corporate balance sheets improve, many businesses expanded their storefronts and offices, increasing demand for services. Positive long-term trends such as an aging, urbanizing and a progressively wealthy population, have helped spur demand for residential construction, especially in metropolitan areas, which boosted revenue for architectural services. In addition, an increase in public-private partnerships for infrastructure projects, under which the financing and operation costs are shared between the government and private sector, raised architectural revenues.

Steady growth in the American real estate market is projected to drive industry revenue, which is expected to increase an annualized 3.0% to $5.8 billion over the four years to 2026. American architects will benefit from anticipated increases in corporate profit and disposable income, as these drivers will propel residential and nonresidential construction. Further, industry growth will hinge on the popularity of environmentally conscious designs. Higher projected oil prices, along with increased regulations regarding the reduction of carbon emissions, will incentivize energy-efficient structures, aiding architectural firms that specialize in planning environmentally friendly homes and commercial structures.

Key External Drivers

Value of Non-residential Construction

Trends in institutional and commercial developments are major drivers of industry revenue. The value of non-residential construction serves as a proxy for commercial and industrial developments. Services related to these types of developments generate over 50% of industry revenue. Demand for non-residential construction is sensitive to employment, consumer spending, corporate profit and interest rates.

Value of Residential Construction

Demand for the construction of single- and multifamily residential units influences demand for industry services. In total, projects related to residential construction account for an estimated 17.9% of revenue in the American Architects industry. Demand for residential construction is sensitive to economic and financial conditions, such as employment, consumer disposable income and interest rates.

Corporate Profit

A high share of industry revenue comes from commercial and industrial construction. To pay for or finance a building project, a company must first have a healthy balance sheet. Therefore, a higher corporate profit margin coincides with higher levels of commercial construction.

Housing Starts

Housing starts measure the number of new, privately owned housing units started in a given year. The number of housing starts has a direct influence on industry revenue, with an increase in the number of housing starts positively affecting the industry.

Overnight Rate

The overnight rate is the rate at which major financial institutions can borrow and lend short-term funds to one another. Changes in the overnight rate affect institutional lending to builders and developers. During periods of low rates, builders can more easily afford construction projects. In turn, increased construction boosts demand for architectural services, as architects are needed in the design stages of residential and nonresidential building projects.

Industry Outlook

Revenue for the American Architects industry is expected to increase at an annualized rate of 3.0% to $5.8 billion over the four years to 2026. Growth in corporate profit and consumer spending is expected to provide the framework for an improved American real estate market, which will boost demand for industry services. Architecture firms will benefit from growth in non-residential construction, which is the industry’s largest market. The value of nonresidential construction in Canada is expected to increase at an annualized rate of 4.4% over the four years to 2026, bolstering demand for the design and planning of office, industrial, retail and other commercial construction projects.

Another force driving the industry’s growth is the low interest rate environment resulting from a recovering economy after the COVID-19 (coronavirus) pandemic. Low interest rates make it easier for companies or individuals to borrow money to finance new building projects, due to the lowered cost associated with paying back the loan. Downstream buyers will be more willing to take on new projects and hire industry operators. In addition to other improving economic drivers, industry demand is expected to continue to flourish.

Increased Investment will Boost Demand

Rising investment in large-scale commercial building developments, most notably offices and hotels, is expected to boost industry revenue. These types of community projects will continue to improve industry revenue because architectural services will be needed in their design. In addition, an increase in the popularity of mixed-use properties that contain retail, office and residential components, will promote the design of innovative buildings, increasing demand for architecture in metropolitan regions. Although short-term lending rates are expected to slightly increase over the four years to 2026, interest rates are still expected to remain relatively low. This will incentivize investors to put cash into real estate developments in Canada, which will continue to offer attractive returns compared with other forms of investments.

In the residential market, urbanization and an aging population will likely lead to an increase in high-rise condominium and apartment construction, especially in major cities such as Calgary, Toronto and Vancouver. For example, the 81-storey M3 Condo, which is currently in the construction process and is scheduled for completion in the latter half of 2023, is a new modernly designed luxury condo that is going to be a part of the M City community in the heart of Mississauga, ON. This building is designed by industry player IBI Group Inc., and is going to become the tallest tower in Mississauga by a significant margin. Demand for architectural services in the housing construction market will also increase, aiding small industry operators that specialize in home design and planning. Moreover, the value of residential construction is expected to continue rising, growing at an annualized rate of 0.6% over the four years to 2026.

Competition

Industry revenue growth and an increasing profit margin will bring more operators into the industry. The number of industry operators is forecast to increase at an annualized rate of 1.9% to 7,766 companies over the four years to 2026. Meanwhile, industry employment is also projected to increase, rising at an annualized 2.8% to 28,656 people during the same period, as greater demand for architectural services will lead to more hiring. The industry is labour intensive, and businesses will find it difficult to find a cost-efficient substitute for knowledgeable employees. As a result, wages are expected to increase an annualized 2.9% to $2.4 billion over the four years to 2026. Since revenue growth is projected to be faster than wages, profit is also anticipated to marginally increase over the next four years.

An increase in industry operators will also lead to heightened competition. Many of the industry’s largest companies also serve as engineering and construction companies, offering clients a one-stop shop for design, procurement and construction services. Small and medium-sized industry operators will experience direct competition with multi disciplined design, engineering and building companies, making it difficult for architecture-only firms to secure contracts for large-scale building projects. The industry’s largest companies will benefit from offering a broad range of predesign and other design services, including planning, interior design, landscape architecture and engineering services.

LEED Certification

However, an increasing number of companies will offer LEED-certified green building designs. Canada has more square metres of LEED-certified space than any nation except for the United States, according to the American Green Building Council. An increase in demand for environmentally conscious designs and potential savings on energy costs will further drive industry revenue growth over the next five years, especially for operators that specialize in green and LEED design.

Market Segmentation

The majority of revenue generated in the American Architects industry is through nonresidential architectural services. The four subcategories within this market include educational projects, office building projects, healthcare institutions and retail and restaurant projects. The products and services offered by industry operators are not expected to change much due to the COVID-19 (coronavirus) pandemic. However, demand for certain products and services may fluctuate during this time of economic uncertainty. For example, healthcare institutions and advisory services may endure a slight increase in demand due to the importance of healthcare institutions and advisory services for renovations. However, recreational facilities and other nonessential projects may endure a short period of decreased demand.

Office Buildings

Demand for architectural services for office building construction and renovation has grown in line with the overall American economy during the past five years. Office construction is principally determined by growth in the service sector workforce. The office segment comprises a variety of different sectors, including technology, finance and communications. Typically, demand peaks during periods of strong economic growth because the need for space rises as new businesses enter the market and existing companies expand operations.

Retail and Restaurants

Architects are also contracted to design retail buildings, including shopping malls, restaurants, bars and fast-food outlets. As a result of the adverse economic effects from coronavirus, the retail and restaurant segment has endured many changes to its architectural design structure that incorporates social distancing protocols and other changes to ensure these sectors can operate safely and effectively. This, in turn, has slightly boosted demand for new retail and restaurant spaces, which ultimately benefited the Architects Industry in Canada.

Healthcare Institutions

Healthcare facilities, which include hospitals, clinics, doctors’ offices, rehabilitation centres and general health centres, are typically owned by nonprofit corporations. Consequently, healthcare construction is usually funded privately or through a combination of public and private financing. Therefore, trends in private nonresidential construction investment, as well as demographic shifts in the number of elderly consumers in Canada, are strong indicators of demand for architectural services related to healthcare construction. This segment has endured a slight decrease as a share of industry revenue over the past five years.

Educational Institutions

Architects are commonly contracted for new construction projects, additions and renovations on educational buildings, such as schools, colleges and universities. Most education is publicly funded in Canada, with relatively few private schools at the primary, secondary and postsecondary levels. Therefore, educational construction projects are largely funded by the government, with budgetary priorities determining demand for new school construction and existing structure repair and renovation. Educational institutions are estimated to account for 9.8% of industry revenue. Due to the well-established educational institutions already in place, this share of industry revenue has decreased slightly over the past five years.

Other Non-Residential Buildings

Other categories within the non-residential market are architectural design services related to hotel and convention centre projects, recreational building projects and industrial construction projects. Improving employment, rising disposable income and higher consumer spending have led to an increase in commercial building activity and architectural service revenue. However, trends in oil and commodity prices determine industrial and commercial development in resource-rich provinces such as Alberta.

Single-Family Residential Projects

Conversely, single-family projects are expected to account for 3.3% of industry revenue. This segment has slightly decreased over the past five years, as multifamily buildings are growing more in popularity across major cities such as Toronto, Vancouver and Montreal.

Multifamily Residential Projects

The provision of services to multifamily projects is estimated to account for 14.6% of revenue. Architectural revenue from multifamily residential projects in Canada has increased over the past five years, as American real estate stability was driven by strong underlying fundamentals. A growing, aging, urbanizing and progressively wealthy American population has boosted residential real estate demand and increased revenue for architectural design services related to residential construction. For the majority of the past five years, strong revenue growth in this market occurred in major cities such as Toronto, Vancouver and Montreal.

Other services commonly include advisory services related to urban planning, project site master planning, interior design, landscape design and engineering services. Demand for these functions may be driven by private or public sources. This segment has increased over the past five years, as external competition increases and industry operators need to rely on other services for another revenue stream. This category is expected to account for 27.6% of industry revenue.

US Interior Design Industry

Over the past five years, the Interior Designers industry in Canada has exhibited moderate success, reflected through its revenue growth and solid operational expansion. Demand from downstream markets, predominately the residential construction sectors, has buoyed revenue growth during times of volatile commercial conditions. During the COVID-19 (coronavirus) pandemic, large drops in corporate profit, nonresidential construction and consumer spending all attributed to a large decline in revenue in 2020. Fortunately, demand from the commercial sector played its role in supporting revenue growth, as the industry relies on a diverse client base, including corporate offices, shopping malls, hotels, restaurants and hospitals.

The residential market has also been supported by rising residential construction, per capita disposable income and the number of households earning $100,000 or more per year. However, nonresidential markets experienced more volatile growth resulting in only a marginal rise over the past five years. Industry revenue is forecast to grow an annualized 2.3% to $2.1 billion over the five years to 2027. Industry revenue is anticipated to rise at a slightly slower rate than the previous five-year period in part due to a slowdown in the housing markets. Although residential construction and residential renovation expenditure are both forecast to expand, they are expected to rise at a slower rate than the previous five years. In addition, a slight decline in corporate profit is expected to further restrict the industry’s growth. Major commodity prices are expected to improve over the next five years, encouraging more demand for non-residential construction markets and driving general economic growth. Despite the slight slowdown in revenue growth, the industry’s profit margin is forecast to slightly improve over the five years to 2027.

Demand from non-residential building construction.  The commercial sector accounts for the most demand for interior design services. Typical projects from the commercial sector include corporate offices, restaurants, hotels, airports and hospitals. When these clients are expanding their facilities, commercial construction is projected to rise, increasing demand for professional interior design services. The value of non-residential building construction is expected to increase in 2022.

Industry Landscape

The industry is highly fragmented. According to Statistics Canada, almost 75.0% of industry establishments are nonemployers. The industry’s low barriers to entry have enabled many small non-employers to enter the industry, which has prompted industry enterprise growth. The number of industry enterprises is expected to grow at an annualized rate of 1.9% to 7,449, most of which are non employing enterprises. Similarly, industry employment is expected to increase at an annualized rate of 2.1% to 6,153 workers during the same period. The difference in growth between the two can be attributed to the increasing popularity of nonemployers that are able to charge lower prices. Despite employment rising at a quicker pace than enterprises, the industry’s average wage has increased over the past five years. This rise in the average wage can be mainly attributed to the amount of skill required by each employee.

With revenue growth and slight changes in wage costs, the industry profit margin, measured as earnings before interest and taxes, is expected to remain stagnant at 20.3% of revenue in 2022. This stagnation is primarily due to the coronavirus pandemic, which caused economic drivers to suffer in 2020 and the resulting economic recovery after the peak of the pandemic have caused those drivers to recover.

Due to profit stagnating, more interior designers are strengthening their product portfolio by including design layout services, which typically produce a higher margin. It should be noted that profit varies significantly depending on whether a company specializes in residential or commercial interior design. Projects for the residential sector tend to be more profitable, as commercial projects are typically prone to high price-based competition to secure contracts.

Industry Life Cycle

The Interior Designers industry in Canada is in the mature phase of its life cycle. Industry value added (IVA), which measures an industry’s contribution to the overall economy, is expected to grow at an annualized rate of 2.8% over the five years to 2027. Comparatively, the American economy is anticipated to grow at an annualized rate of 1.7% during the same period. Industry operators’ relatively standardized skill set and product portfolio, coupled with low technological innovation, is indicative of an industry in the mature life cycle stage.

Products and services have remained essentially the same, despite some industry operators gaining a competitive advantage with diversified portfolios, such as providing layout design expertise. Thus, price-based competition has intensified as operators attempted to secure favourable contracts with businesses, among other non-residential downstream markets. Conversely, rising demand for industry services from healthcare facilities, coupled with many new businesses entering the market over the next decade, may offer an opportunity for future industry growth. For example, industry operators are commonly hired by hospitals, doctors’ offices and extended care facilities to design and decorate patient rooms, entrances and waiting rooms. However, rising interest rates could hamper demand for both commercial and noncommercial construction, which may limit industry revenue growth.

Demand from businesses has decreased from 2020 since companies were more focused on staying operational than changing the interior of their locations. As economic conditions continue to improve, demand from each segment is forecast to grow.

Businesses (50.4%)

Establishments in this industry are commonly hired by architectural firms that outsource the services of interior designers. These designers, in turn, help plan and arrange the interiors of office, residential or commercial construction projects. Due to the scale and variety of these projects, a high portion of revenue from this market comes from architectural firms. Businesses can directly employ interior designers to create and style office spaces in a way that best uses space, safety and light while projecting the company’s corporate philosophy to employees and customers. Retail and commercial clients can hire interior designers to plan the interior of their shops and stores. For these projects, designers must be cognizant of safety issues, pedestrian traffic and local government building code requirements. A sharp decline in the value of non-residential construction in 2020 has driven a decline in demand for architectural services, which has shifted industry revenue away from commercial clients and toward residential clients, as interior designers are commonly hired by architecture firms. However, as the economy began improving after the peak of the pandemic, demand for the industry’s services is forecast to steadily increase over the five years to 2027.

Individuals and Households (30.4%)

Sales to individuals and households are driven by a range of economic factors, including unemployment and per capita disposable income levels. Throughout the majority of the past five years, a decline in unemployment, combined with a rise in disposable income, have led to an increase in demand for interior design projects, as individuals have more money to spend on non discretionary services such as a household’s design. Households typically spend the most on interior design work when they first move into a house. However, over the past five years, national residential expenditure on renovation has driven demand from this market. As a result, this segment’s share of total industry revenue is expected to rise during the five-year period. The proportional increase is not only the result of a rise in revenue for household projects but is also due to declines in other markets such as business clients.

Other (11.3%)

These clients include international companies, foreign governments and other nondomestic players. The main service provided for these clients is often merchandise sales. Collectively, these customers account for an estimated 11.3% of industry revenue. This segment’s share of industry revenue has slightly increased over the past five years, primarily due to the decreases in demand from businesses and corporations.

Government and Public Institutions (7.9%)

Interior designers also provide services to government-owned or operated institutions such as hospitals, universities and the offices of federal, provincial and municipal public institutions. Government clients are expected to account for 7.9% of total industry revenue in 2022. Within this market, one bright spot has been the healthcare sector, which has become a growing source of income for interior designers, as Canada’s aging population leads to greater demand for healthcare services. As a result, hospitals and other health providers have expanded capacity and hired interior designers to plan these new spaces, making them accessible for the elderly. With overall demand for municipal building construction rising over the past five years, this increased this segment’s share of industry revenue in 2022.

Government Regulations

Regulations for the Interior Designers industry in Canada are still being developed. Canada does not have widespread legislation to regulate this industry and currently, only Nova Scotia has a Practice Act, while six other provinces have Titles Acts. A Practice Act regulates who is permitted to perform the services provided by a particular industry. It requires industry participants to obtain a license before they can perform their services. A Titles Act regulates the use of a title. One must meet the criteria set out by the licensing body to use a specific title, for example, certified interior designer. However, Titles Acts do not prevent individuals from performing a particular service if they are not certified; they just manage the use of state-regulated titles. These acts are there to ensure that the public is aware of the education, experience and qualifications needed to become a registered service provider in the hope that people would turn to licensed providers as opposed to non licensed ones.

Operators in this industry, however, must adhere to health and safety precautions, local building codes and laws and environmental regulations put in place by various state legislatures and international organizations. For example, the International Code Council develops international building codes related to structural elements of a building, use and occupancy classifications, interior finishes and interior environment and accessibility. While these codes are non-binding and can be modified by provincial governments, they aim to outline the best practices within the industry, which are used as benchmarks for further legislation.

As this profession grows, the regulation of this industry is expected to increase and become more streamlined. For example, Interior Designers of Canada (IDC), a professional association for industry operators representing more than 5,000 members, proclaims that it wishes to have stringent regulations all across Canada, whereby all associations should have professional requirements for their members to adhere to. This would make it compulsory for industry participants to become members of a professional association and adhere to all its laws and regulations.

Additional Certifications

  • Interior Architect Degree or Diploma – Staff
  • Interior Design Degree or Diploma – Staff
  • NCIDQ Examination for Interior Design Qualification

Products and Services

SS Designs provides two primary services: interior architecture and interior design services.  The following section summarizes each sub-service, and it’s average pricing:

Detached Building Architecture

For homes larger than 3,000 square feet. Designing a brand new space from scratch.

Commercial Interior Architecture

This is our primary service. Developing a new commercial space based on our client’s needs, size of space, their requirements to sync with city building codes.

Residential Interior Architecture

Working with architects and builders to create spaces which meet the client’s needs, and connects exterior concepts with interior design.

Commercial Interior Design

Design interior spaces by selecting finishes and materials to match the client’s brand guidelines, and vision for the space.

Residential Interior Design

Design interior spaces by selecting finishes and materials to match the client’s requirements, and vision for the space.

Project Management

Creating a project schedule and timeline for development, construction and budgetary requirements.  Work with contractors, suppliers and tradespeople to ensure deadlines are met, and materials arrive on time.

Pricing Model

sample interior design business plan pdf

Competitive Advantages

SS Designs will execute on the following competitive advantages:

Prompt Quoting and Service

SS Designs prioritizes prompt quoting and quick turnaround of proposals and service. By being responsive, clients will feel prioritized and satisfied even on the first stage of the service. Eventually, SS Designs will adopt augmented reality tools that will allow clients to set preliminary designs and get rough estimates and proposals. A standard proposal pack with estimated rates is always available, alongside the semi-annual catalog which will be provided to all prospective clients.

Software Utilization

Ms. Simmons and Ms. Thompson are both experts in 3DS Max and Corona Software for 3D rendering and creating design proposals. These are two of the most advanced software applications in the industry, and are currently not used by any competitors in the Chicago market.  The difference in quality between 3DS Max, Corona Software and the competition is staggering, and therefore the company will continue operating with these applications to help differentiate from the competition.

Creative Culture

There is an ongoing global trend on space saving due to the increase in condominiums in metro areas, including in Chicago, Dubai and Riyadh. Japanese and Scandinavian space-efficient designs are in demand, such as the Kanso concept of design. SS Designs has this at the core of its design philosophy. By adding unique and creative designs to this, the product becomes more attractive to the target markets. This is also a manifestation of the creative and professional working environment that Simmons is implementing into its business culture.

Positioning

SS Designs positions its services at the upper to mid tier of pricing in the market. By incorporating unique and contemporary concepts to interior architecture and design, the company can charge a higher price than the competition. By positioning the company in leading real estate markets such as Chicago, Dubai and eventually Riyadh, SS Designs will access an array of target customers that seek high-caliber concepts and designs.  The company will meet this market with appropriate positioning; communicating premium quality and service through all marketing channels.

Key Success Factors

Use of Advanced Architectural Planning Tools

Interior architecture is more advanced and specific due to the integration of advanced rendering and planning tools, starting with AutoCAD in the 90s up to 3d and rendering tools such as 3D Max and Corona Software. Computerized 3D models are now the norm when it comes to design. SS Designs will incorporate the latest architectural technologies to all services.

Competent and Established Team

Having competent and accomplished architects, interior designers, and design consultants is important in terms of acquiring clients, especially in the mid and high end sectors in North America and the Middle East. SS Designs takes pride in employing the best architects who have an eye for good design and are able to connect better with clients. Ms. Heba will also ensure that team members get competitive salary and benefits packages, as well as a positive and creative work environment.

Marketing Channels

Catering to a mid to high end market in North America and the Middle East, SS Designs must strike a balance between traditional and digital marketing. Effective traditional marketing strategies include presentations, scheduling meetings, showrooms, virtual showrooms, and the distribution of seasonal catalogs. Digital marketing strategies include search engine optimization, pay per click ads and community building and engagement on social media.

Understanding of Target Market

North American and Middle Eastern markets are diverse in terms of culture, economic situation, and, in the case of the UAE and Saudi Arabia, religious beliefs. North American architecture focuses on modern and sustainable design, though interior architectural designs vary. Meanwhile, the UAE and Saudi Arabia are more extreme in their preferences, such as luxury, futuristic and sometimes traditional designs.  As such, it is imperative for the Simmons team to understand the requirements of each local market.

Effective Project Management

Generally speaking project management is the process of managing the whole project; the programme, the budget, the execution and all the individual team members required to successfully complete a project.  A project manager within the luxury residential sector is responsible for ensuring that every element of the project, from start to finish, is planned for, communicated to all stakeholders, reviewed, approved and delivered safely within the timeframe and on budget. Effective project management is a key success factor that must always be upheld by SS Designs.

Sales and Marketing Plan

This sales and marketing plan includes traditional and digital marketing strategies.  In order to meet the company’s scale and expansion plans it is imperative to execute on the following:

Target Customers

The company’s target customers are segmented into the five following groups:

Hospitality

  • Restaurants / Bars
  • Beauty / Esthetician Salon
  • Tourism Agencies

Finance and Law

  • Law Offices
  • Insurance Offices
  • Business Centres
  • Financial Institutions

Health Care

  • Doctor’s Office
  • Walk-in Clinics
  • Physiotherapy Clinics
  • Medical Pharmacies
  • Private Schools
  • Private Learning Centers
  • Universities

Residential

  • Single Family Homes (more than 3,000 sq ft)

Key Channels

Key channels are segmented into two groups: traditional and digital marketing channels.

Traditional Channels

Seasonal Catalogs

Seasonal catalogs have been an effective marketing channel and will continue to be utilized.  Every 6 months SS Designs will create a Spring & Summer catalog and Fall & Winter catalog.  These catalogs provide a unique way for clients to experience the SS Designs brand, outside of consuming content through a desktop or smartphone screen. Furthermore, this provides the company with a non-traditional way of marketing its services, and building an engaged community.

Onsite Visits

SS Designs will conduct visits to construction sites, real estate developers, offices, property managers and other potential clients. Seasonal catalogs will be distributed, and in person meetings held.  Prior to such in person meetings the company will utilize outbound phone calling and email metrics to make an effort to arrange such gatherings beforehand. Developers will then refer Simmons to their prospective tenants, which will eventually grow into paying clients.

Trade Shows / Community Events

SS Designs will also take part in trade shows and events in Chicago, Illinois, across the U.S.A., and eventually in the UAE and Saudi Arabia.

Digital Marketing Channels

Social Media

SS Designs currently utilizes Linkedin and Instagram to host a community of clients, and followers.  Both of the social media platforms will continue to be utilized moving forward; however, the company will launch a YouTube channel and Facebook page by February 2023.  These channels are an excellent place to remind past clients of the work the company is doing, and to cultivate new leads and awareness of SS Designs.  The company will work with a third party marketing form to post at least 3x a week across Linkedin, Instagram and Facebook.  Publishing videos on YouTube will be completed less frequently.

Search Engine Optimization

Once the updated website is completed there will be monthly work completed on additional landing pages and blog articles.  This approach will increase the volume of website pages, and increase the sites ranking on search engine results pages (SERPs).  The company may work with BSBCON or another firm to establish specific landing pages that will reflect the target audience.

Pay-Per-Click (PPC Ads)

Pay-per-click (PPC) Ads or “paid ads” are utilized across social media channels and search engines alike.  For SS Designs, PPC Ads will focus primarily on Google to rank for relevant search queries.  Google Ads are an excellent way to reach new audiences.  At first glance, they can seem expensive, however when the lifetime client value of new leads is considered, and the referrals generated from such leads, Google Ads often result in being the most direct marketing channel for most modern companies.

Email Marketing

Email marketing continues to be an effective digital marketing channel.  SS Designs will continue to collect the contact information of new leads and clients, then record such information into a respective customer relationship management system (CRM).  Either MailChimp and/or HubSpot will be utilized as a CRM.  Each quarter, the Simmons team will discuss ideas for value based content to include in the monthly email marketing campaign.  Instead of “selling”, the company will focus on educating email recipients, and positioning SS Designs as a market leader that is building awareness to its community.

Key Performance Indicators

The following table outline key performance indicators (KPIs) which will be followed in order to track the performance of each silo within the company:

sample interior design business plan pdf

SWOT Analysis

sample interior design business plan pdf

Outbound Sales Approach

  • Create a list of developers, builders, architects, real estate agents, business owners, and direct target customers.
  • First, contact the lead by phone.  They will often ask you to email someone from their organization.
  • Take the email address, record it and send an email.
  • Arrange a video call with Heba via her calendly schedule.
  • The Sales Associate will pass all information over to Heba, so she has a summary of the lead.
  • During the Discovery Call, Heba will ask questions to better understand them.
  • If it’s a developer or builder, the goal will be to have them refer their future tenants to SS Designs. If it’s a direct target customer, the goal is to have the lead interested in a catalog, and initial proposal.
  • If the lead is interested in proceeding please continue with “Phase 0 (Pre-Project) #3”.  If we do not hear anything back, follow up with the lead via phone call / email.

Operational Plan

Interior Architecture Project Process

Phase 0 (Pre-Project)

Discovery Call

  • We host a discovery call via Zoom, phone call or in person to understand their requirements and budget.

Initial Proposal

  • Provide a proposal (catalog).  Every 6 months we update it (spring/summer and fall/winter catalogs).  We want to ensure they are confident so we provide an initial presentation (mildly customized).

Contract Agreement

  • We send a contract agreement to the prospective client via DocuSign. (signed)

Initial Invoice

  • We send an initial invoice to the prospective client for 50% of the total cost (paid).

Create the File Project

  • We create the physical and digital file document via Google Drive, including:
  • Client requirements
  • Client name, business name, mailing address, phone number, email address
  • Pictures from the client
  • Architectural, mechanical, electrical drawings for the property (separate folder – “Building Drawings”)
  • “Concept Presentation Folder” is created
  • “Construction Drawings Folder” is created
  • “Building Permits Drawings Folder” is created
  • “Minute Meetings Folder” is created
  • “3D Rendering Folder” is created

Initial Team Meeting

  • An internal team meeting is scheduled to discuss the project, deliverables and team responsibilities.

Project Schedule Proposal

  • Once we have received the paid invoice and signed consulting agreement we provide a receipt and a project schedule with specific dates and deadlines.

Understanding Client Preferences

  • We send the client a series of inspirational ideas (pictures) to gauge their preferences and personality.

Phase 1 (Concept Presentation)

Commence the Concept Presentation

  • Once received, we commence development of the concept presentation for style and an initial proposal for the “layout”.

Concept Presentation Meeting

  • We host a meeting via Zoom or in person (preferred) to present the initial concept presentation.  We record the meeting minutes (what is said).  We send the meeting minutes to the client and CC everyone involved in the meeting.

Modifications to Concept Presentation

  • Once we have received their input we proceed with modifications to the initial concept presentation proposal. We then send the initial concept presentation with the required modifications to the client.

Confirmation to Proceed

  • We receive their feedback, and require a confirmation to proceed via email.  We need them to “confirm or approve the layout”.

Phase 2 (Design Presentation)

Commence Phase 2

  • We begin creating a furniture layout, 3D Rendering, and basic selection finishes.

Phase 2 Presentation Meeting

  • We present the furniture layout, 3D Rendering, and basic selection finishes to the client.  This step is extremely important and we make our best effort to have the meeting in person (if not via Zoom).  We record the meeting minutes (what is said).  We send the meeting minutes to the client and CC everyone involved in the meeting.

Feedback on Modifications

  • We receive their feedback and understand where modifications are required.

Execute on Modifications

  • Modifications are made and the updated Phase 2 Presentation is presented via email to the client.

Approval of Design Presentation

  • We go back and forth until we receive their approval.  We send them formal approval for Phase 2 via DocuSign, email or in person and require a legal signature from the legal signing authority (LSA).

Phase 3 (Technical Drawings)

Create Tenant Improvement (TI) Package

  • Tenant Improvement Package (Phase 3) is created.

Tacking the TI Package to the City

  • Two paths forward – the contract might say that SS Designs takes the Tenant Improvement Package to the city OR it will state that the client takes the package to the city (which is less common).

Prepare Specifications

  • Meanwhile we prepare specifications (quantities, millwork and construction documents).

Review Application Package with the City

  • We review the application package with the city (if we are contracted to work with the city).

Resubmit to the City

  • After receiving the city’s feedback we make modifications to the Tenant Improvement Package and resubmit it to the city.

Phase 4 (Project Budget)

Receive Supply and Trades Quotations

  • We utilize our own contacts/suppliers/trades to receive supply and construction quotations, and then present each quotation to the client.

Submit Formal Project Budget

  • Once we receive the client’s feedback we develop a formal project budget, and submit it to the client for their review and approval.

Signature for Specifications & Project Budget

  • The client will sign for project specifications and project budget.

Submit the Final Project Package to Client & Contractors

  • We submit the project package by email (PDF) and AutoCAD to the client and each contractor. The legal contract between the project and contractors is to be developed and managed by the client.  This step marks the finalization of services rendered for Interior Architecture.

In the situation the client seeks to retain SS Designs for project management services, a separate contract would be established.

Health & Safety

WorkSafe enforces the Occupational Health and Safety Regulation. It contains requirements and standards that all workplaces must meet to promote occupational health and safety, as well as to protect workers from work-related risks to their health, safety and well-being. General rules such as fire safety, occupational first aid, evacuation and rescue must be met and enforced by Smart Spaces Designs The company will also look into supplemental private health insurance for employees on top of the public health care plan. The company also intends to provide vehicle and accident insurance, as architects and interior designers will be traveling often, either by car or public transport, to project sites and client meetings.

Equipment & Inventory

SS Designs will utilize the following equipment and tools to successfully execute on operations:

Digital Hardware and Software

  • Simmons and Ms. Thompson will use a MacBook Pro for design activities, as well as managing and operating the business, including finance and marketing. Apple laptops with the new M1 and/ir M2 chips can run Autodesk, Corona and other design software programs efficiently. Laptops are also mobile and can be brought off-site to client meetings.
  • A back-up iPad with a sketching tool such as Apple Pencil is also useful for quick designs and presentations to clients on-site.
  • Internet connection and company mobile phones will also be provided
  • Autodesk 3DS Max Software is a professional computer graphics program for making 3D animations, models and images. It provides professional interior designers and design studios industry leading 3D interior rendering tools that give them the power to bring their concepts to life.
  • Corona Renderer delivers high-quality, physically based shading for production rendering. “Be an artist, not a technician, and achieve realism with greater ease than other rendering software.” Corona Renderer is an integrated solution for selected 3D applications
  • Google Workspace is a collection of cloud computing, productivity and collaboration tools, software and products developed and marketed by Google. It includes Google Drive, Google Docs for word processing and Google Sheets for spreadsheets and financial documents. This is free of charge for Gmail account holders, but the company will pay for additional cloud storage when required
  • Presentation tools such as Microsoft PowerPoint and video editing software like Adobe Premiere Pro CC will also be used to create presentations and video walkthroughs of SS Designs’s interior design and architecture projects.

Interior Design/Architectural Supplies and Tools

  • Drawing tools for sketching room designs and plans include a pencil, ruler, compass, protractor and graph paper.
  • The color wheel demonstrates the relationships of primary, secondary and tertiary colors. The wheel helps designers create pleasing color schemes based on a combination of complementary and analogous colors.
  • Paint manufacturers produce sets of paint chips or strips of colors for each of their lines. Interior designers use them, along with fabric books, to select room colors and coordinate paint colors with fabric, furniture and accessories.
  • Interior designers rely on measuring tapes to verify and calculate dimensions of interior spaces and furnishings. Rigid tapes measure straight lengths while cloth tapes calculate curved and angled surfaces.

Transportation Vehicle

  • The company will look into a long term rent or a purchase of an official company vehicle which will be used to travel to client meetings, construction sites, and conferences. The vehicle will have ample space to transport marketing materials such as model designs, pull-up banners and brochures.

Office Furniture and Fittings

  • A sufficient number of work desks, conference tables, chairs, air conditioning units, kitchen/pantry appliances are needed in the Chicago office
  • The company will also have a 3-function laser printer, scanner and copier to print drawings, proposals and marketing materials

This section outlines the company’s current and future locations:

Headquarters – Chicago, Illinois, U.S.A.

SS Designs’ headquarters is located at 120 S Morgan St #725, Chicago, IL 60607, United States. This is a strategic location because of its close proximity to the financial district, and downtown Chicago. By being close to major corporate offices and hubs, SS Designs will be able to keep track of upcoming real estate developments and visit potential clients needing to revamp their offices. Also, the team can easily invite clients to the company headquarters, situated in the iconic Chicago convention center. The office has workstations and a conference room for internal team and external client meetings.

Year 3 Expansion (2025) – Dubai, U.A.E.

SS Designs is planning its expansion to Dubai, UAE. The key industries in Dubai with tremendous growth potential include technology and finance. With foreign and local investors pouring in investments in this tax-friendly and accessible country. Dubai Internet City has over 130,000 square meters of prime commercial office space, in which over 1,400 companies with over 10,000 workers are based. There are 25 low, mid and high-rise office structures here, occupied by multinational companies such as Facebook, LinkedIn, Tata Consultancy, Oracle, as well as UAE-based companies such as Ducont. It is also adjacent to Dubai Media City and Dubai Knowledge Park, which will introduce the company to expanding sectors, as well as high-earning professionals who seek premium interior architecture and design services for their own residences.

Year 5 Expansion (2027) – Riyadh, Saudi Arabia

By 2027, SS Designs intends to capitalize on the projected growth of the Saudi Arabian economy. Riyadh is an important financial, business and manufacturing center. Major banks are headquartered in the city, as well as numerous private companies. Every publicly quoted company is compelled by local laws to have an office in the city. The Business Gate in the Qurtuba district of Riyadh comprises 110,000 square meters of office space, 5 star hotels with 350 rooms, 4 star hotels with 250 rooms and 5,000 square meters of retail space, as well as an exhibition and convention center with conference and banqueting facilities. This area has easy access to offices, including Alcatel Lucent, Sony and Samsung.

Risk Analysis

sample interior design business plan pdf

Management Team

Currently, Smart Spaces Designs has two management team members including:

Donna Simmons

Chief Executive Officer

Ms. Simmons is the CEO for SS Designs and she plays a major role in executing strategies to ensure the growth of the company. Her passion for working smart translated into designing smart work spaces for her clients.  She obtained her management skills from collaborating with various clients and projects in the last 7 years.

Marylou Thompson

Senior Designer

Ms. Thompson has worked with Ms. Simmons in various design projects for the last 5 years.  She has valued her client’s ideas and has worked well with them without compromising her design standards.  Her network in the design industry will help the company bring in more projects and increased revenues.

Key Personnel

Operations Director

  • Playing a leading role in compiling company budget and growth strategy, particularly the expansion to Dubai and Riyadh
  • Executing strategies to optimize company and asset growth
  • Ensuring expertise and effectiveness of architects and designers
  • Creating financial reports
  • Managing capital, accounting, and bank processes
  • Driving and leading performance reviews, to ensure an engaged and skilled workforce
  • Initiating improved business practices
  • Collaborating with architects, designers and administrative staff in building an environment of collective responsibility and accountability
  • Ensuring adherence to key performance objectives to meet business and customer expectations

Administrator

  • Welcoming visitors and directing them to the relevant office/personnel
  • Clerical duties such as answering phone calls, responding to emails, and preparing documents
  • Coordinating and managing appointments, meetings, and the conference room schedule
  • Performing bookkeeping tasks such as invoicing, monitoring accounts receivable, and budget tracking
  • Maintaining general office files, job files, vendor files, and others related to the company’s operations
  • Purchasing office supplies, equipment, and furniture
  • Oversee the maintenance of office facilities, and equipment

Senior Architect

  • Reviewing and designing architectural and engineering plans
  • Ensuring all plans are compliant with American government health and safety regulations
  • Researching and maintaining knowledge of various engineering disciplines, application methods, and materials
  • Monitoring the work of other Architects and making recommendations and scheduling workshops
  • Providing guidance to subcontractors like builders, plumbers, and electricians, and helping them interpret design specifications
  • Liaising with clients to ensure all issues are addressed in a timely manner, and that project requirements are met
  • Ensuring the team works together to achieve set goals and targets
  • Acting as a mentor to new Architects and helping them fine-tune their design skills and improve their industry knowledge
  • Networking and consulting with various industry professionals
  • Participating in client meetings to discuss design plans and gather feedback on preliminary designs
  • Reviewing construction documents to ensure that specifications meet design requirements
  • Coordinating with architects and contractors to ensure that construction meets design specifications
  • Creating conceptual sketches, renderings, and illustrations to communicate design concepts to clients
  • Compiling data regarding client preferences, lifestyle habits, and architectural styles to create a design concept that meets the client’s needs in terms of style and ergonomics
  • Presenting design concepts to clients in order to gain approval of preliminary plans
  • Developing interior design concepts for commercial, retail, or industrial spaces
  • Consulting with clients about their needs in order to create a design solution that meets their goals within their budget constraints

Intermediate Designer

  • Oversee and supervise junior team members on projects within the target industries
  • Develop overall furnishing layouts for per industry standards
  • Independently prepare Concept Design presentations including rendered plans, section elevations, Color/Material boards, and furniture/fixture/accessories selections using Adobe CC and AutoCAD
  • Oversee and review Junior Designers’ rendering of simple floor plans and select elevations
  • Work independently to render detailed floor plans and detailed elevations
  • Conduct product resource selection for ongoing and future projects
  • Develop Furnishing, Color and Material Boards, including materials, fabric, and imagery
  • Coordinate Computer-Generated Imagery (CGI) with Ms. Thomspson

Junior Designer

  • Outline client design objectives
  • Conceptualize and sketch design plans
  • Determine cost of completion and project requirements in the budgeting phase
  • Set a timeline for the completion of an interior design project
  • Source materials and products included in plans
  • Create ‘mood boards’ to sample your design vision
  • Utilize computer applications in the design process
  • Inspect design after completion to determine whether client goals have been met

Graphic Designer

  • Planning concepts by studying relevant information and materials
  • Illustrating concepts by designing examples of art arrangement, size, type size and style and submitting them for approval
  • Preparing finished art by operating necessary equipment and software
  • Coordinating with outside agencies, art services, web designer, marketing, printers, and colleagues as necessary
  • Contributing to team efforts by accomplishing tasks as needed
  • Communicating with clients about layout and design
  • Creating a wide range of graphics and layouts for product illustrations, company logos, and websites with software such as photoshop
  • Reviewing final layouts and suggesting improvements when necessary

Recruitment Plan

sample interior design business plan pdf

Recruitment, Hiring, Onboarding

Receiving New Candidates / Recruitment

We primarily post job postings on Linkedin, Indeed, and also receive referrals from industry contacts.

Hiring Process

  • Ask for a resume and portfolio.
  • We arrange a 15 minute phone call interview and ask questions.
  • Have an initial interview in person.
  • Second in person interview – we provide them a small assignment which takes around 3 hours to gauge their skillset and productivity.
  • We confirm their references, and arrange a phone call to discuss the candidate.
  • We send them a personality test and review their results.
  • Founder, Donna Simmons creates a formal job offer and sends it to the candidate.
  • The candidate reviews, and has the opportunity to discuss the offer. If required, revisions will be made.
  • The job offer is signed.

Onboarding a New Team Member

  • We request their SIN number, address, phone number, email address, legal name, driver’s license #, and bank account / institution #.
  • We send this information to our accountant and ensure they are set up properly.
  • We then send the new team member an SS Designs – Employee Handbook
  • We prepare a start date and propose it to the new employee.
  • We send a welcome email to the new employee and CC the rest of the SS Designs team.
  • The new employee is welcomed on their first day.  The first day is typically quite slow where they shadow other team members.
  • Every day for the next 2 weeks we prepare specific training to ensure they understand all processes.

Financial Plan

The following financial plan was conservatively developed including a pro forma income statement, cash flow statement and balance sheet.

Pro Forma Income Statement

sample interior design business plan pdf

Pro Forma Cash Flow Statement

sample interior design business plan pdf

Pro Forma Balance Sheet

sample interior design business plan pdf

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Home Interior Design Business Plan

Start your own home interior design business plan

Hamlin and Park Design

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.">.

The city of Claremont has been growing by 6% annually for the past five years. Currently, the city’s population is 700,000. Most importantly, the greatest population increase is in southwest Claremont which is the city’s most affluent area. The population of southwest Claremont has grown by 20% the past two years. The 80,000 residents of the area have an average income of $200,000 and the average home is valued at $350,000. The new construction in southwest section of the city is valued at 600 million dollars in home sales next year alone. Growth in the area has also generated increase remodeling of existing homes. Last year, remodeling projects were up 20% over the previous year and accounted for $20 million paid for remodeling services in the area.

The building and remodeling in southwest Claremont has increased the demand for interior design services. Last year, residential interior design companies generated $4 million in sales in the greater Claremont area. Forecasts for next year predict that there will be an increase of 11% in sales.

Hamlin and Park Design will offers a wide range of interior design services to meet any client’s needs in southwest Claremont:

  • On-site consultations;
  • Project survey & analysis;
  • Space planning & furniture arrangement;
  • Design concepts;
  • Finishes & furnishings;
  • Custom designs;
  • Purchasing, delivery, & installation;
  • Project coordination & management.

Courtney Hamlin and Katherine Park have ten years of experience with the city’s top interior designs firms.  Both have been successful is creating a base of former clients that will refer new business to the designers.

Home interior design business plan, executive summary chart image

1.1 Objectives

Hamlin and Park Design offers a wide range of interior design services to meet any client’s needs in southwest Claremont.

The primary objectives of our firm are to:

  • Exceed customers’ expectations for service and product.
  • Increase the number of clients served by 15% per year through superior performance.
  • Develop a sustainable start-up business that is profitable.

1.2 Mission

Hamlin and Park Design’s mission is to assure superior customer service by doing the following:

  • Open communication with clients. The explanation of the “pros and cons” of different selections and design options are discussed in detail.
  • Include the client in every stage of the design process.
  • Exceed the customer’s expectations for the project.
  • Maintain continuing education of the latest development and innovations in the interior design field.

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

Courtney Hamlin and Katherine Park will start Hamlin and Parks Design to offer a wide range of interior design services to clients in southwest Claremont. The company has a high level of expertise in interior design and will provide superior personal services to all clients. Courtney and Katherine take pride in knowing that 50% of their business comes from repeat clients and their referrals.

Our responsibility as interior design professionals is to take the client’s design goals and utilize our skills and resources to exceed the client’s expectations for service, value, functionality, and beauty.

2.1 Company Ownership

The owners and designers of Hamlin and Park Design are Courtney Hamlin and Katherine Park.

2.2 Start-up Summary

Courtney Hamlin and Katherine Park will invest $60,000 in Hamlin and Park Design. They will also secure a $50,000 loan.

The following table and chart show projected initial start-up costs for Hamlin and Park Design.

Home interior design business plan, company summary chart image

Hamlin and Park Design will offers a wide range of interior design services to meet any client’s needs in southwest Claremont:

  • On-site Consultations : Convenient consultations for busy homeowners and professionals are offered at the home or office. The consultation will include all necessary product samples for clients for review, thus eliminating the hassle of having to visit numerous stores for different products.
  • Project Survey and Analysis : Each site is inspected for its layout and function. In-depth client interviews are conducted to determine all necessary requirements for the project. This information is then analyzed for design concepts and space planning.
  • Design Concepts : The design concept can begin with a treasured piece of fabric or furniture, or simply a blank page. The goal is to attain the “look” and “feel” a client wants, from “light and airy” to “rich and elegant” to “comfortable and cozy.” Each project develops its own flavor from the unique selection of fabrics, furniture, and finishes.
  • Finishes and Furnishings : There are many factors to consider when selecting furniture and finishes. Hamlin and Park Design’s expertise and guidance helps clients make the best selections for their needs. Creativity is also applied in the selection process to create the desired look.
  • Custom Designs : Custom furniture, built-ins, and window treatments are also available through the talents of Hamlin and Park Design. Detailed drawings are prepared to help clients visualize the finished piece.
  • Purchasing, Delivery, & Installation : Once final selections are made, Hamlin and Park Design assumes all responsibility for coordinating the purchasing, delivery and installation of the entire project.
  • Project Coordination & Management : Some projects require a certain sequence of installation for maximizing results. Hamlin and Park Design coordinates all aspects of these projects to ensure smooth transitions from each phase until project completion.

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

Due to the strengthening of the area’s economy, more southwest Claremont homeowners are exploring interior design to improve their homes’ beauty and charm. Last year, residential interior design companies generated $4 million in sales in the greater Claremont area. Approximately, 75% of the sales were located in southwest Claremont. Forecasts for next year predict that there will be an increase of 11% in sales. This demand for interior design services is a tremendous opportunity. Hamlin and Park Design is poised to take advantage of these changes, and expects to become a recognized name and profitable entity in the city’s interior design market.

4.1 Market Segmentation

The customers that Hamlin and Park Design will be serving can be divided into three groups:

  • New Home Construction : Hamlin and Park Design will compete for the interior design projects associated with new homes. Contracted consulting responsibilities with the builders can include one or more of the companies services, i.e. strategic planning, master planning, and lighting, floor or carpet design.
  • Remodeling Projects : These projects have some of the same characteristics as new home construction (i.e. working as a consultant with builders) but can also include greater control over all aspect of the project.
  • Interior Design of Existing Home : Hamlin and Park Design will control all aspects of these projects.

Home interior design business plan, market analysis summary chart image

4.2 Competitive Edge

Hamlin and Park Design’s competitive edge is that both Courtney Hamlin and Katherine Park are highly successful interior designers with a loyal customer base. Courtney has been a Project Manager with Sullivan and Associates for five years. During that time she has established strong relationships with builders and vendors which will prove beneficial in the coming years. For the past six years, Katherine has worked as a Design Consultant for Jonathan Miller, the most successful interior designer in Claremont. Together, Courtney and Katherine have the skills, resources and experience to be build on the base of 1,000 satisfied customers.

Strategy and Implementation Summary

Hamlin and Park will focus on the interior design needs in the southwest section of the city. Our target customers will be the affluent residents of southwest Claremont.

5.1 Sales Strategy

The following is the sales strategy Hamlin and Park Design will employ on the three target customer groups:

  • New Home Construction/Remodeling Projects : Courtney Hamlin already has a strong professional relationship with the dominant builders/remodelers in southwest Claremont. She will meet with them directly and pitch the consulting services of Hamlin and Park Design. 
  • Interior Design of Existing Home : Visibility with the customer base is the most important marketing activity Hamlin and Park Design will follow. Southwest Claremont has five homeowner associations that meet regularly. In the past both Courtney and Katherine have made presentations on interior design issues. They will continue this service to the community to raise the visibility of Hamlin and Park Design.

5.1.1 Sales Forecast

The following table and chart will forecast sales for the next three years.

Home interior design business plan, strategy and implementation summary chart image

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

Hamlin and Park is a two member interior design firm. Both designers are equal partners in the firm.

  • Courtney Hamlin began her passion for the arts at a young age. Upon graduating from State University, Courtney secured an office management position at a local commercial and residential interior design firm. This position afforded her the learning experience of overseeing all aspects of design projects; from preparing proposals, to scheduling and coordinating all phases of a project. After five years of managing the design firm, Courtney returned to school for an Associates Degree in Interior Design. After completing her Interior Design degree, Courtney became a designer and project manager for Sullivan and Associates.
  • Katherine Park received a B.A. in Art from State University.  She continued her education at the Art Institute of Monroe and obtained a degree in Interior Design.  She has worked as a Design Consultant for Jonathan Miller, the most successful interior designer in Claremont.

6.1 Personnel Plan

The staff of Hamlin and Park Design will be its co-owners Courtney Hamlin and Katherine Park.

Financial Plan investor-ready personnel plan .">

The following is the financial plan for Hamlin and Park Design.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Some of the more important underlying assumptions are:

  • We assume a strong economy, without major recession.
  • We assume, of course, that there are no unforeseen changes in the economy that would change our estimations.

7.2 Break-even Analysis

The following table and chart will summarize our break-even analysis. The monthly break-even point is approximately $14,800.

Home interior design business plan, financial plan chart image

7.3 Projected Profit and Loss

Our projected profit and loss is shown on the following table and charts.

Home interior design business plan, financial plan chart image

7.4 Projected Cash Flow

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.

Home interior design business plan, financial plan chart image

7.5 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.

7.6 Business Ratios

The following table provides important ratios for the real estate industry, as determined by the Standard Industry Classification (SIC) Index, 8999, Services.

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sample interior design business plan pdf

ProfitableVenture

Interior Design Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2C Sector

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

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

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

A Sample Interior Design Business Plan Template

1. industry overview.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Executive Summary

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

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

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

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

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

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

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

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

3. Our Products and Services

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

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

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

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

4. Our Mission and Vision Statement

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

Our Business Structure

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

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

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

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

  • Chief Executive Officer
  • Creative Director

Human Resources and Admin Manager

  • Sales and Marketing Executive
  • Interior Designer

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

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

Creative Director:

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

Sales and Marketing Manager

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

Accountant / Cashier:

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

Interior Designers (4)

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

6. SWOT Analysis

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

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

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

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

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

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

  • Opportunities:

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

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

7. MARKET ANALYSIS

  • Market Trends

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

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

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

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

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

8. Our Target Market

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

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

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

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

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

Our Competitive Advantage

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

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

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

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

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

9. SALES AND MARKETING STRATEGY

  • Sources of Income

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

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

10. Sales Forecast

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

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

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

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

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

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

  • Marketing Strategy and Sales Strategy

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

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

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

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

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

11. Publicity and Advertising Strategy

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

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

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

12. Our Pricing Strategy

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

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

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

  • Payment Options

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

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

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

13. Startup Expenditure (Budget)

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

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

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

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

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

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

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

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

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

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

14. Sustainability and Expansion Strategy

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

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

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

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

Check List / Milestone

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

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Sample Interior Design Business Plan

Interior design business plan pdf sample.

The interior design industry has witnessed and continues to witness huge innovations in the way interior design is done.

To start an interior design firm, a lot of creativity is needed. Creativity is the single biggest ingredient for success in this industry. An individual can be creative with designs.

However, further training is required to fine-tune these skills for maximum output.

In addition to training, certain structures must be put in place in any home design business for the smooth running of the business.

Although this business might seem easy, it requires a lot of effort to be put into the business especially during its formative years.

This article will discuss some of the requirements need to start an interior decoration business.

Creativity and Self Development

It is not enough to want to start an interior design business. Other equally important measures are required. First, an interior design business requires creativity.

An individual should be able to be creative enough to see beauty where everyone else does not. With creativity comes self-development. A lot of self-development is needed to improve on previous skills.

Self-development might be achieved through the self-study of interior design literature and videos. The other alternative for self-development is by attending interior design classes which may be found in major cities.

In any case, to attract the attention of clients, an interior design business requires a lot of creativity and self-development for maximum productivity.

Building a Website

This is an important requirement for interior design businesses. To attract major clients, an attractive website must be put in place. The website should be such that it speaks volumes on the interior design business.

There should be innovative designs that are catchy and attractive to the client.

Therefore, for beginners in the interior design industry, extra effort, and attention should be given to building an attractive website containing different interior design samples.

You may want to seek the services of a reputable web designer for a great website. The services of reputable web designers do not come cheap as they can follow every specification with the added advantage of offering useful tips that attract clients to the website.

Starting an interior design business requires adequate startup capital that will be sufficient enough to cover every expense of the business.

Provide Samples of Previous Work

The first thing a client will ask for is to see samples of previous work done for other clients. If there are no samples, then a business deal will hardly be struck.

But how can you get samples when you are just starting the business? This is easy. You can start by offering free interior design services to friends and associates, and taking snapshots of these.

These photo shoots are your first samples.

To convince new clients, the photo samples of previous work must be shot by a professional interior design photographer. Interior design businesses require professionalism in every aspect of the business.

Therefore, if you can shoot these pictures, then, by all means, do so, but if you do not have the necessary skill, consider hiring the services of a professional who knows the trending photo angles and what is needed to produce superb interior design photo samples.

An interior design business requires extensive networking with other professionals within the industry.

A great starting point for networking is through establishing contact with real estate developers, architects and joining construction-related business networks that will eventually lead to the growth of your own clients.

Doing this might take some time. However, if properly done, the after-effects can be very rewarding.

Being Certified

This may vary from country to country or state to state.

There may be regulatory guidelines that need to be followed. Such regulatory/professional bodies license interior designers.  An interior design business will need to present some level of certification to the client.

This is because some clients may not want to do business with just anyone who calls him/herself an interior designer.

Having the certification handy when approaching clients, eliminate any doubts that may arise. This should be presented to clients even when they do not ask, as some clients may not voice out their doubts.

A degree, diploma, or any form of proof of training is essential for this job. But above all, the work (previous samples of work) will speak loudest.

Writing an Interior Decor Business Plan

Starting an interior design business without a business plan is like a ship doomed for wreckage. A business plan is the guiding light of the business which provides the much-needed direction during trying times.

At such times, the business plan clarifies the objectives of the business.

An interior design business plan should be carefully written by seasoned professionals, providing all the requirements and actions to be taken which are necessary for the sustainability and growth of the business.

These are some of the requirements any serious interior design business should possess. There are extensive planning stages to be followed which help at arriving at the much-desired result.

As earlier stated, starting an interior design business requires creativity and training which will hone the skills (creativity) already possessed.

Therefore, it is necessary to go for self-development through enrolling in interior design classes/schools and through self-study.

INTERIOR DECORATION BUSINESS PLAN PDF SAMPLE

Some hobbies can be converted into economic activities. These are the best types of business because you will be doing what you love and still earn an income from it. One of such is interior decoration.

If you have struggled as an interior decorator to write a plan of action for your business, this article is written with you in mind.

You will not only get the sense of what is required of you but will be able to follow the general structure of the sample provided. This plan has been written for guidance purposes only. You shouldn’t use this in place of your plan. You still need to do the bulk of the work by getting out and finding out more about this business.

  • Executive Summary

Warm Interiors is an interior decorating business that excels in the provision of some of the most creative interior decors for individuals, corporate entities, and events. Our joy is in creating an environment that fits the occasion.

We are located in Burlington, Vermont. We desire to become Burlington’s most sought-after interior décor service provider while also joining the ranks of 5 major interior decoration businesses in Vermont.

Interior decoration has increasingly become one of the most sought-after services in America. This demand is even greater among the middle to upper classes of society. We are not letting this opportunity slip by. This is why we have brought competence, aesthetic appeal, and attention to the little details that make a big difference.

  • Our Services

At Warm Interiors, we seek to create warm and beautiful interiors for our clients. Studies have shown that the setting of a room, hall or any other space can lead to mood improvements and vice versa. We are committed to working with our clients in understanding what they need. We have catalogs of different interior settings they can flip through to select their most preferred choice.

No matter the mood, the event, or situation, we’ve got our clients covered. Apart from these, we will also offer training and consulting services as well.

  • Vision Statement

We are laying the foundation for the establishment of a major interior decoration company.

This will break into the top 5 interior décor businesses in Vermont. Achieving this feat within 5 years is possible.

To make this happen, we are determined to make each of our clients happy with our work.

  • Mission Statement

Our mission is to creatively help our clients get their desired interior improvements.

We will customize each of our services to fit the needs of our clients. The aim is to see the faces of each client break into a smile. This, to us, is the ultimate measure of satisfaction.

Financing for our interior decoration business will be obtained from savings. The steady but slow process of saving the required sum of $350,000.00 has lasted the last 5 years.

The proprietor of Warm Interiors Joey Clark prefers not to take loans for the initial take-off.

  • SWOT Analysis

Our analysis on strength weakness, opportunities and threats seek to measure the health of our interior decoration business.

These findings will enable us to adapt to opportunities and risks in a bid to make the best of the situations.

Find further information about these aspects below;

It has taken a considerable amount of time to source funds for take-off through savings.

This gives us the advantage of not having to apply for credit as interest rates have soared out of control. This has shrunk the size of most businesses because they can’t get access to credit.

We will operate our interior décor business without having to think about the payment of interests.

The high interest rates tied to borrowing have made it very unattractive.

This limits our capacity to expand our services through the availability of cheap credit.

However as the situation improves and interest rates are lowered, borrowing will become much more attractive leading to the expansion drives.

  • Opportunity

The rising demand for interior decoration services has increased the prospects for profitability.

The outlook on demand over the next few years remains positive too. This is a great time for our business to attract more clientele.

We only need to prove our capacity to get the job done.

A dip in the economy will impact negatively demand. An economic recession shrinks the middle and upper classes. These form the bulk of our clientele. In the event this happens, we will only have a few clients to work with.

  • Sales Projection

Currently, there is a high demand for interior decoration services.

This is expected to improve in the medium term (covering a 3 year period). In line with this, our study of customer behavior concerning our services over this period shows the following;

  • First Financial Year $150,000.00
  • Second Financial Year $290,000.00
  • Third Financial Year $550,000.00
  • Marketing Strategies

To sell our interior décor business to our target market, we will choose a catchy interior design name, advertise it in newspapers and home décor magazines.

We have a functional website that is easy to navigate. Visitors will find our catalogs of interior design concepts. Social media marketing will also be used as an advert strategy.

  • Target Market for Interior Design Business

A large chunk of interior design patronage comes from clients within the middle and upper classes. These are our target markets. We will focus our services and marketing techniques to target these groups.

Also, we will work with event planners and corporations as well. Whenever there is a function or event, we can be contacted to offer our services.

Anyone reading through this interior decoration business plan sample should be able to flow easily. The same should apply to your business plan.

By simplifying the process and providing only relevant information, you will save yourself and anyone going through it the stress of having to understand what is meant.

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Interior Design Business Plan Template

Interior design marketing plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an interior design business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of interior design that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to residential interior design, will you offer services such as furniture or decor resale?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your interior design. Document your location and mention how the location will impact your success. For example, is your interior design firm located next to an architect, or home decor store, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your interior design marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Making your interior design’s front store extra appealing to attract passing customers
  • Advertising in local papers and magazines
  • Reaching out to local bloggers and websites
  • Social media marketing
  • Pay per click advertising
  • Partnerships with local organizations (e.g., architects, home goods retailers)
  • Local radio advertising
  • Banner ads at local venues

INTERIOR DESIGN BUSINESS PLAN OUTLINE

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

Start Your Interior Design Plan Here

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COMMENTS

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    Your interior design business plan will help you: Summarise your business idea: What you're trying to achieve, what services you'll offer, how you'll operate etc. Identify goals and potential problems: Set out goals and how you'll achieve them, and identify any risks and how to overcome them. Plan your business operations: From sales ...

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  5. How to Write a Business Plan for Interior Design

    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.

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    Writing an Effective Interior Design Business Plan. The following are the key components of a successful interior design business plan:. Executive Summary. The executive summary of an interior design business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

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

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    Step 1: Determine Your Niche. You have the opportunity to create the interior design business of your dreams. While the project possibilities are endless, it's important to define your niche. Defining your niche will set you apart from your competition by making you a specialist in a specific design style, a certain type of space, a ...

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    13+ Interior Design Business Plan Templates - DOC, PDF. An Interior Design Business Plan templates was created to help you save a lot of time. The main idea of the free sample templates available for download in the best download format was to help you learn about the structure of the templates and how exactly your type of Sales Business Plan should look like.

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    Before you can start your new interior design business you will need a detailed business plan and this sample has the ideal guidelines. Use this example to compile your own. 1. Executive Summary. Barton Interiors is a proposed venture that will offer comprehensive interior design services for homes and offices in the Boulder, Colorado area.

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  22. Interior Design Business Plan Marketing Plan

    Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For an interior design business plan, your marketing plan should include the following: Product: in the product section you should reiterate the type of interior design that you documented in your Company Analysis. Then, detail the specific products ...

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