Do you want to start an Interior Design business plan?
Starting a business can be hard, no matter who tries to start it. But it helps if you have an interest in the niche you want to start your company in. when you have an interest in a niche, it is easier for you to learn about it. And being knowledgeable about your target market is a necessity for starting a business.
Now, as long as you have an interest in your company’s target market, you can learn more about it through a business plan. A business plan contains all the necessary details needed to start a business. All businesses start with an idea and a business plan, whether it be 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 learn how to write a business plan for interior design by going through the sample we’ve provided below as well.
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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 designs for small spaces.
2.2 How Will the Business be Managed?
A business gains success through good management. No company can succeed without good management. Therefore, to establish an interior design start up business, you will need adequate management.
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 given below.
You can also get guidance regarding good business plans through related niches like business plan for banking to learn about finances. In your business plan, you will need to ensure that all sides 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 Community
- 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:
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, her sights were always on starting her own unique brand of interior design services which she decided to pursue by starting Pro Interior Designs.
3.2 History of the Company
Grace wanted to provide a flexible range of services. She noticed that most interior design companies were too large scale and expensive for small workspaces or families to afford. She wanted to tap into this market need and provide a range of interior design consultancies to the people who need them. Therefore, she started Pro Interior Design to fulfill this dream.
3.3 How the Interior Design company will be started
Step1: Develop a Plan
Before you do anything, you need to plan it. That stays true for starting a business as well. And the best way to plan any business is through a business plan. Therefore, to start an interior design business, you will need a business plan for interior design firm. 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 enough to scale your business idea the way you need to. That is where investors come in. You can use your business plan for an interior design company to get people to invest in your business.
Step3: Pick a Location
Next up, you will need to find the perfect place for your office. For Pro Interior Design, Grace decided on a regular office space right next to a popular florist shop in the commercial center.
Step4: Go Online
It is very important for businesses to consider their online presence as that is where most transactions are carried out nowadays. To cater for 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 also invest in other forms of marketing.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$234,300|
|Other Current Assets||$233,000|
|Start-up Expenses to Fund||$234,300|
|Start-up Assets to Fund||$927,400|
|TOTAL FUNDING REQUIRED||$1,161,700|
|Non-cash Assets from Start-up||$1,188,800|
|Cash Requirements from Start-up||$231,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$33,200|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$53,200|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,161,700|
|Loss at Start-up (Start-up Expenses)||$276,900|
|TOTAL CAPITAL AND LIABILITIES||$1,503,000|
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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 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 limit the scope of services you will provide 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. That way, offices can adequately utilize the space that is available to them. And families can make 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 come 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. The designers will ask the customers about their preferred choices and put together a well-strung space.
- Art Selections
For our more artistic and ambiance focus customers, we will also offer special art and design consultants that will help the customers in finding the best art pieces for their spaces whether it be an office or a room.
Marketing Analysis of Interior Design Company
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Starting interior design company can seem daunting at first. But you can calm those nerves by diving deep to learn everything there is to know about the business. You can look into interior design business plan examples to get started.
One of the things you should focus on learning is the market in which you want to start the business. You can gain in-depth insights about your target market by going through different interior designer business ideas. Afterward, when you develop your own business plan for 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:
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5.2.1 Residential Community
Our main targeted 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.
Our second target customers will be the small and large businesses around the area that needs remodeling for 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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
- To become one of the top 3 interior design startups 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 95%.
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.
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 is a part of your interior design business plan company description.
And just like a real estate flipping business plan, your business plan interior design company should include details about how you will market your services as well.
Below, we are presenting the marketing plan for 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
- We have excellent communication with customers, directly and 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 reduced prices to the first 50 customers.
6.3 Sales Monthly
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6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Furniture & Accessories||1,000||1,060||1,124|
|TOTAL UNIT SALES||3,500||3,710||3,933|
|Unit Prices||Year 1||Year 2||Year 3|
|Furniture & Accessories||$550.00||$638.00||$740.08|
|Furniture & Accessories||$550,000.00||$676,280.00||$831,553.89|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Furniture & Accessories||$100.00||$110.00||$115.50|
|Direct Cost of Sales|
|Furniture & Accessories||$100,000.00||$116,600.00||$129,775.80|
|Subtotal Direct Cost of Sales||$500,000.00||$583,000.00||$648,879.00|
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. And this is especially important in business plans for people-first companies such as a 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
- 2 Drivers
- 1 Receptionist
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
To ensure that your business is a success, you will need to develop a financial plan for interior design business. A good financial plan should include a detailed analysis of the price of your products and sales vs your profit so you can move forward accordingly.
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
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8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$500,000||$583,000||$648,879|
|TOTAL COST OF SALES||$500,000||$583,000||$648,879|
|Gross Margin %||74.36%||75.69%||77.99%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$498,700||$534,900||$580,495|
|Profit Before Interest and Taxes||$951,300||$1,279,820||$1,718,863|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|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||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|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||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- 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.
2. 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:
3. 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.
4. What are the types of market 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. So as long as you have a plan like this interior design firm business plan pdf, you can get customers from any domain.
Illustrative business plan samples
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