Do you want to start home staging business plan?

Do you want to start a home staging company? Well, it can be the best choice, as almost all property owners want to enhance the curb appeal of their property before selling it to a potential buyer. The business is beyond just decorating or cleaning a house, it is about fixing the minor issues like loose handles, or inoperable electrical sockets or LEDs, repainting walls, rearranging the furniture and much more.

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Starting a staging company, can be really beneficial to you, provided that you plan and execute it properly. To help you in initiating your business, we are providing here a sample business plan of home staging business startup named, ‘Jaxon Home Staging Company’.

Executive Summary

2.1 The Business

Jaxon Home Staging Company will be located in the metropolitan area in San Diego. The business will be based on increasing the curb appeal to attract potential buyers for your property. The company will clean each and every corner of your property and fix every type of issues with your plumbing, wiring or drainage system and finally arranging the things in your house in the most appealing manner.

2.2 Management

The company will be owned and managed by Jaxon Ben, Jaxon has a detailed knowledge about how to start a home staging business, as he had been associated with this type of business for the past 6 years. Jaxon will hire a dedicated and experienced crew for carrying out the works required for running this business.

2.3 Customers

If you are looking for how to start a staging company, the thing that can benefit you the most in devising your services and marketing policies is knowing your customers.

Our major customers will be the property owners who want to renew their residential and commercial estate before selling it. We will provide our high-quality and fast services to our customers in the whole San Diego.

2.4 Target of the Company

The company aims at becoming the best and the most reputed home staging company in the whole San Diego within just a year of the launch.

Home Staging Business Plan Template
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Company Summary

3.1 Company Owner

The company will be owned by Jaxon Ben. Jaxon had been running a window cleaning service for the last 6 years and is passionate to start a new business with a wider scope. Jaxon has done an extensive research on how to start home staging business, he has even prepared a rough home staging business model including the details of equipment and manpower needed for the startup.

3.2 Why the Business is being started

The business is started by the purpose of serving more and more people at a wider scale, and generating profit. Jaxon has chosen the home staging business for himself as he thinks this will be the most suitable, profitable and easy to run business for him due to his prior experience in almost this field. Moreover, this business requires an ambitious person with a great eye while having a large amount of investment group for a startup as an advantage, not as a requirement. This is the basic reason why so many people including Jaxon direct their interests towards a staging business.  Jaxon aims at providing incomparable service to his customers and make his company the most reputed and trusted one. The detailed sample business plan Jaxon has made is here for your help, if you are too looking for how to start a staging business.

3.3 How the Business will be started

Jaxon has decided to take a building in the metropolitan area on rent, and convert it into his company’s office by buying the required inventory and by hiring the required staff. The company will be licensed and insured. The tools and chemicals required for getting the house in a purely new state will be bought, and the company will also buy some materials if needed to enhance the curb appeal of your property. Jaxon knows that he and his business will solely be dependent on the work efficiency and hard work of his staff. So, he has decided to hire dedicated and skillful workers before one month of the launch to train them according to his requirements. The startup requirements area as follows:

Home Staging Business Plan - Startup Cost

The detailed startup requirements are as follows:

Start-up Expenses 
Research and Development$32,750
Expensed Equipment$32,750
Start-up Assets$0
Cash Required$332,500
Start-up Inventory$32,625
Other Current Assets$232,500
Long-term Assets$235,000
Total Requirements$245,000
Start-up Expenses to Fund$11,875
Start-up Assets to Fund$15,000
Non-cash Assets from Start-up$18,750
Cash Requirements from Start-up$0
Additional Cash Raised$18,750
Cash Balance on Starting Date$21,875
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment$0
Investor 1$332,500
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313,125
Total Funding$255,000
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    Services for customers

    Before you start home staging business, you must think about the services you want to provide to your customers and make a detailed strategy about which things will be required to implement those services.


    In case, you are looking for how to start a house staging busines and which services you’ll need to provide, you can take help from this sample business plan.

    Jaxon will provide the following services to its customers:

    • Home Staging/ Enhancing Property: Our major service will be to enhance and renew your property, by staging it. We’ll update the house and do thorough cleaning of the places which are usually ignored such as windowsills, drawers, closets, tiles, showers, tables etc. We’ll furnish your property, fix and repaint the holes and cracks, repair the minor damages and add lightning and a spacious look to your rooms.
    • Interior Designing: To increase the beauty of your estate, we’ll place mirrors, rugs, hangings, baskets, decoration pieces, and much more inside your property. We’ll do interior designing by adding small furniture items, art supplies, paintings, and accessories to elevate the visual attractiveness of your house.
    • Auctioning Property: We’ll also auction your valuable property items to help you in finding the highest bidder.
    • Facilitating a Purchase: We’ll also facilitate you and your customers by guiding and enabling them to go through the procedures require for making a purchase.

    Marketing Analysis of Home Staging Business

    Marketing Analysis is undoubtedly the most important factor that decides the success of your home staging startup. No matter how high-quality services you aim to provide to your customers, that all will be going fruitless if you failed to market your business. Before thinking about how to start your own home staging business, you must think that whether the market in which you are going to open your business has the potential of a new startup or not.

    Before starting a home staging company, you must analyze the segments of the market to get a know-how about their demands and requirements. Knowing your customers before starting a home staging company  is the key to achieve success in this business. Understanding the market trends and outlining them in your home staging business plan template, will also help you in deciding the prices of your products and services to attract the maxim of people.

    If you are starting a home staging business, and you don’t know about how to market a home staging business  effectively, then you can take help from this home staging business plan sample  of Jaxon Home Staging Company free of cost. Still, a better practice is to hire a marketing analyst to make a home staging proposal template  for you according to your market and locality.

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    5.1 Market Trends

    Home staging businesses are in great demand as they increase the value of one’s house and property as sellers never want to sell their property for less money. Statistics show that about 156 thousand single-family homes were sold after staging in 2013 in the United States which was a 16 percent more than the previous year. According to statists and studies from more than 22,500 sources, it is reported that in 2017 about 5.51 million previously existing houses were sold in the United States and the number is expected to increase in the coming years.

    Moreover, a survey by National Association of Realtors have reported that 77% of buyers found it easy to visualize the property when it is staged. And you will surely be amazed to know this report by NAEBA, National Association of Exclusive Buyer Agents, after they had surveyed brokers and agents that, about 82% buyers are likely to have distracted from some important issues when they walk through a staged house.  So the demand of home staging business can never be down as most of the previously existing houses need to be staged before getting sold.

    5.2 Marketing Segmentation

    It is really important to analyze your target market before making a business plan home staging. The detailed analysis of who will be your customers and what will be their requirements must be included in your home staging business plan. As successful business owners are the one who understand their customers’ demands and find the most effective ways to fulfill their requirements by providing them an easy availability to the services. Jaxon had hired the services of an expert to do an accurate marketing analysis for his business, you can also take help from this sample business plan if you too are seeking help for making an effective business plan.

    Our expert has identified the following groups of people that can be our future customers:

    Home Staging Business Plan - Marketing Segmentation

    The detailed analysis of our target audience is as follows:

    5.2.1 Real Estate Owners: Our biggest target customer will be the real estate business owners of both residential and commercial properties. What do you think they want before selling their property? Yes, they want to make their property as attractive as possible that makes the buyer knocks with cash without thinking twice. Staging the house not only increase the curb appeal but also make the property look wider and spacious. It is an excellent opportunity for the property owners to create a living and inviting atmosphere for the potential buyers. A sparkling, well dressed and properly staged house not only give the feeling of comfort to the buyers but also distract their attention from the minor issues.

    5.2.2 Sellers’ Agents: The second category comprises of the sellers’ agents who are responsible for facilitating the buying and purchase of a business, and sometimes are given the charge of property for renovation. A survey shows that about 58% of the sellers’ agent believe that staging had increased the value of their house by one to twenty percent. We will provide special discounts on our services so that they try our services at least for once. After the first encounter, we believe that they will obtain and trust our services for the rest of their career.

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    5.2.3 Local Residents: The local residents of any city require time to time maintenance of their houses and property, and many especially the financially stable owners avoid the trouble of renovating their houses by calling professional home stagers. They require a home staging service to redecorate and modernize their houses by replacing the older things and arrangements with the newer ones. These people are also expected to utilize our auctioning service, for auctioning their old but valuable goods and entities.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Local Residents32%11,43313,34416,55318,74520,54513.43%
    Real Estate Agents48%22,33432,34443,66552,54466,43210.00%
    Sellers’ Agents20%12,86714,43315,99917,56519,13115.32%

    5.3 Business Target

    Our main business targets, short-term and long-term goals to be achieved are given below:

    • We aim at becoming the most renowned and the most trusted home staging business throughout San Diego in just two years of our launch
    • We aim at achieving the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
    • We aim at balancing the initial cost of the startup with earned profits by the end of the first year
    • Our target for the next 10 years of our launch is to open another branch of our business in the current or neighboring city

    5.4 Product Pricing

    To familiarize us and our services to our target audience we have priced our services low as compared to our competitors. We also have offered various discounts on our services to provide an easy accessibility of people towards our services.

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    If you are starting a house staging business, you must focus on making the policies which can prove beneficial for you in increasing your sales. So, before you take further steps in starting a staging business, you must make sure whether your sales strategy is effective or not.

    6.1 Competitive Analysis

    We will have a tough competition in the market, yet we believe that we will take a lead upon all our competitors because of the outstanding competitive aspects we are coming up with. Our biggest competitive advantage is that our company is not only licensed but insured too, it means if any damage occurs to your property and things due to the negligence and fault of our workers, you will be paid an equal amount to cover the damage. Secondly, we will provide unparalleled customer service, all our employees are dedicated and motivated to work and will treat the customers and their property with utmost respect, and will undertake all the possible efforts to provide the clients with maximum satisfaction.

    6.2 Sales Strategy

    Jaxon has decided to advertise his company by the following means:

    • We’ll market and advertise our services through print and social media
    • We’ll create a website of our company to collect the feedback from our customers
    • We’ll offer 20% discount on our services for the first two months of our launch

    6.3 Sales Monthly

    Home Staging Business Plan - Sales Monthly

    6.4 Sales Yearly

    Home Staging Business Plan - Sales Yearly

    6.5 Sales Forecast

    Considering the quality of our services and market demand our sales pattern is expected to increase with years. Our experts have forecasted the following sales on a yearly basis which are summarized in the column charts:

    Home Staging Business Plan - Sales Forecast

    The detailed information about sales forecast, total unit sales, total sales is given in the following table:

    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Home Staging/ Enhancing Property1,887,0302,680,3202,588,240
    Interior Designing802,370815,430823,540
    Auctioning Property539,3207702301,002,310
    Facilitating Purchase265,450322,390393,320
    TOTAL UNIT SALES3,494,1704,588,3704,807,410
    Unit PricesYear 1Year 2Year 3
    Home Staging/ Enhancing Property$140.00$150.00$160.00
    Interior Designing$600.00$800.00$1,000.00
    Auctioning Property$700.00$800.00$900.00
    Facilitating Purchase$650.00$750.00$850.00
    Home Staging/ Enhancing Property$2,149,800$2,784,000$3,383,200
    Interior Designing$120,050$194,500$268,500
    Auctioning Property$50,110$71,600$93,000
    Facilitating Purchase$139,350$194,600$249,850
    Direct Unit CostsYear 1Year 2Year 3
    Home Staging/ Enhancing Property$0.70$0.80$0.90
    Interior Designing$0.40$0.45$0.50
    Auctioning Property$0.30$0.35$0.40
    Facilitating Purchase$3.00$3.50$4.00
    Direct Cost of Sales   
    Home Staging/ Enhancing Property$989,300$1,839,000$2,679,700
    Interior Designing$66,600$119,900$173,200
    Auctioning Property$17,900$35,000$52,100
    Facilitating Purchase$19,400$67,600$115,800
    Subtotal Direct Cost of Sales$1,294,100$1,699,400$2,104,700
    Any questions? Get in Touch!

      Personnel Plan

      For building a successful home staging business, you must hire a staff that will work with its full dedication and devotion as the success of a startup is directly affected by the performance of the staff. Considering the importance of employees, Jaxon had prepared a list of his required staff with their job descriptions before even acting on how to start a home staging company.

      You can also take help from this sample business plan written for Jaxon Home Staging Company, if you are looking for how to open a home staging business.

      7.1 Company Staff

      Jaxon will be the owner and manager by himself and will hire the following persons to run the business:

      • 1 Project Manager to manage all the operations of a given project
      • 2 Accountants for maintaining financial records
      • 2 Sales Executives responsible for marketing and discovering new ventures
      • 10 Cleaners for doing the major work of cleaning
      • 5 General Workers responsible for working on staging house and decorating it
      • 2 Interior Designers for if the customer wants additional designing to his/her property
      • 2 Plumbers for repairing plumbing or drainage damages
      • 2 Technicians/Electricians to repair damages to any electrical system
      • 2 Receptionists for entertaining clients and also receiving orders via telephone
      • 1 Auctioneer for auctioning the property

      Jaxon has decided to hire a HR Manager for further recruitment if needed for the staging of a property.

      7.2 Average Salary of Employees

       Personnel Plan   
       Year 1Year 2Year 3
      Project Manager$85,000$95,000$105,000
      General Workers$410,000$440,000$480,000
      Sales Executives$152,000$159,000$166,000
      Interior Designers$145,000$152,000$159,000
      Plumbers/ Electricians$187,000$194,000$201,000
      Total Salaries$562,000$599,000$646,000

      Financial Plan

      The final step for if you are starting home staging business  is to make the financial plan for your company to make sure that your startup will not end as a failure. Anyone who wants to do home staging for profit  must decide first that how he will finance his company generating a double triple of what he had invest. A financial plan must cover the details about how you will be able to manage your startup costs, the salaries of your employees and the costs of inventory with the profit earned and also if the company hasn’t succeeded in achieving its financial goals.

      Jaxon had hired the services of a financial advisor to make an accurate and effective financial plan for him, outlining the finances needed for the development of the company to achieve its short or long-term objectives. If you are also going to enter this venture, you can take help from this sample business plan to estimate the cost to start a home staging business. We have provided the financial plan of Jaxon Home Staging Company for the next three years free of cost for anyone who needs assistance in devising an effective financial plan.

      The details of sample financial plan for Jaxon Home Staging Company are given below:

      8.1 Important Assumptions

       General Assumptions   
       Year 1Year 2Year 3
      Plan Month123
      Current Interest Rate10.00%11.00%12.00%
      Long-term Interest Rate10.00%10.00%10.00%
      Tax Rate26.42%27.76%28.12%

      8.2 Brake-even Analysis

      Home Staging Business Plan - Brake-even Analysis
       Brake-Even Analysis 
      Monthly Units Break-even5530
      Monthly Revenue Break-even$159,740
      Average Per-Unit Revenue$260.87
      Average Per-Unit Variable Cost$0.89
      Estimated Monthly Fixed Cost$196,410

      8.3 Projected Profit and Loss

       Pro Forma Profit And Loss   
       Year 1Year 2Year 3
      Direct Cost of Sales$15,100$19,153$23,206
      TOTAL COST OF SALES$15,100 $19,153 $23,206
      Gross Margin$293,969$366,781$439,593
      Gross Margin %94.98%94.72%94.46%
      Sales and Marketing and Other Expenses$1,850$2,000$2,150
      Leased Equipment$0$0$0
      Payroll Taxes$34,510$40,726$46,942
      Total Operating Expenses$188,766$220,744$252,722
      Profit Before Interest and Taxes$105,205$146,040$186,875
      Interest Expense$0$0$0
      Taxes Incurred$26,838$37,315$47,792
      Net Profit$78,367$108,725$139,083
      Net Profit/Sales30.00%39.32%48.64%

      8.3.1 Profit Monthly

      Home Staging Business Plan - Profit Monthly

      8.3.2 Profit Yearly

      Home Staging Business Plan - Profit Yearly

      8.3.3 Gross Margin Monthly

      Home Staging Business Plan - Gross Margin Monthly

      8.3.4 Gross Margin Yearly

      Home Staging Business Plan - Gross Margin Yearly

      8.4 Projected Cash Flow

      Home Staging Business Plan - Projected Cash Flow
       Pro Forma Cash Flow   
      Cash ReceivedYear 1Year 2Year 3
      Cash from Operations   
      Cash Sales$40,124$45,046$50,068
      Cash from Receivables$7,023$8,610$9,297
      SUBTOTAL CASH FROM OPERATIONS$47,143 $53,651 $59,359
      Additional Cash Received   
      Sales Tax, VAT, HST/GST Received$0$0$0
      New Current Borrowing$0$0$0
      New Other Liabilities (interest-free)$0$0$0
      New Long-term Liabilities$0$0$0
      Sales of Other Current Assets$0$0$0
      Sales of Long-term Assets$0$0$0
      New Investment Received$0$0$0
      SUBTOTAL CASH RECEIVED$47,143 $53,651 $55,359
      ExpendituresYear 1Year 2Year 3
      Expenditures from Operations   
      Cash Spending$21,647$24,204$26,951
      Bill Payments$13,539$15,385$170,631
      SUBTOTAL SPENT ON OPERATIONS$35,296 $39,549 $43,582
      Additional Cash Spent   
      Sales Tax, VAT, HST/GST Paid Out$0$0$0
      Principal Repayment of Current Borrowing$0$0$0
      Other Liabilities Principal Repayment$0$0$0
      Long-term Liabilities Principal Repayment$0$0$0
      Purchase Other Current Assets$0$0$0
      Purchase Long-term Assets$0$0$0
      SUBTOTAL CASH SPENT$35,296 $35,489 $43,882
      Net Cash Flow$11,551$13,167$15,683
      Cash Balance$21,823$22,381$28,239

      8.5 Projected Balance Sheet

       Pro Forma Balance Sheet   
      AssetsYear 1Year 2Year 3
      Current Assets   
      Accounts Receivable$12,613$14,493$16,373
      Other Current Assets$1,000$1,000$1,000
      TOTAL CURRENT ASSETS$201,259 $237,468 $273,677
      Long-term Assets   
      Long-term Assets$10,000$10,000$10,000
      Accumulated Depreciation$12,420$14,490$16,560
      TOTAL LONG-TERM ASSETS$980 $610 $240
      TOTAL ASSETS$198,839 $232,978 $267,117
      Liabilities and CapitalYear 1Year 2Year 3
      Current Liabilities   
      Accounts Payable$9,482$10,792$12,102
      Current Borrowing$0$0$0
      Other Current Liabilities$0$0$0
      SUBTOTAL CURRENT LIABILITIES$9,482 $10,792 $12,102
      Long-term Liabilities$0$0$0
      TOTAL LIABILITIES$9,482 $10,792 $12,102
      Paid-in Capital$30,000$30,000$30,000
      Retained Earnings$48,651$72,636$96,621
      TOTAL CAPITAL$189,360 $222,190 $255,020
      TOTAL LIABILITIES AND CAPITAL$198,839 $232,978 $267,117
      Net Worth$182,060$226,240$270,420

      8.6 Business Ratios

       Ratio Analysis    
       Year 1Year 2Year 3Industry Profile
      Sales Growth4.35%30.82%63.29%4.00%
      Percent of Total Assets4.35%4.71%5.80% 9.80%
      Accounts Receivable5.61%4.71%3.81%9.70%
      Other Current Assets1.75%2.02%2.29%27.40%
      Total Current Assets138.53%150.99%163.45%54.60%
      Long-term Assets-9.47%-21.01%-32.55%58.40%
      TOTAL ASSETS100.00%100.00%100.00%100.00%
      Current Liabilities4.68%3.04%2.76%27.30%
      Long-term Liabilities0.00%0.00%0.00%25.80%
      Total Liabilities4.68%3.04%2.76%54.10%
      NET WORTH99.32%101.04%102.76%44.90%
      Percent of Sales    
      Gross Margin94.18%93.85%93.52%0.00%
      Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
      Advertising Expenses2.06%1.11%0.28%1.40%
      Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
      Main Ratios    
      Total Debt to Total Assets2.68%1.04%0.76%67.10%
      Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
      Pre-tax Return on Assets64.88%69.75%74.62%9.00%
      Additional RatiosYear 1Year 2Year 3 
      Net Profit Margin19.20%21.16%23.12%N.A.
      Return on Equity47.79%50.53%53.27%N.A.
      Activity Ratios    
      Accounts Receivable Turnover4.564.564.56N.A.
      Collection Days9299106N.A.
      Inventory Turnover19.722.5525.4N.A.
      Accounts Payable Turnover14.1714.6715.17N.A.
      Payment Days272727N.A.
      Total Asset Turnover1.841.551.26N.A.
      Debt Ratios    
      Debt to Net Worth0-0.02-0.04N.A.
      Current Liab. to Liab.111N.A.
      Liquidity Ratios    
      Net Working Capital$120,943$140,664$160,385N.A.
      Interest Coverage000N.A.
      Additional Ratios    
      Assets to Sales0.450.480.51N.A.
      Current Debt/Total Assets4%3%2%N.A.
      Acid Test23.6627.0130.36N.A.
      Sales/Net Worth1.681.290.9N.A.
      Dividend Payout000N.A.

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