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
• Offices
• 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:

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

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

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.

Start-up Expenses
Legal	$112,400
Consultants	$0
Insurance	$22,200
Rent	$33,100
Research and Development	$10,000
Expensed Equipment	$53,200
Signs	$3,400
TOTAL START-UP EXPENSES	$234,300
Start-up Assets	$222,400
Cash Required	$201,000
Start-up Inventory	$39,000
Other Current Assets	$233,000
Long-term Assets	$232,000
TOTAL ASSETS	$927,400
Total Requirements	$1,161,700
START-UP FUNDING
Start-up Expenses to Fund	$234,300
Start-up Assets to Fund	$927,400
TOTAL FUNDING REQUIRED	$1,161,700
Assets
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
TOTAL ASSETS	$1,503,000
Liabilities and Capital
Liabilities	$11,200
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$53,200
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$64,400
Capital
Planned Investment	$1,161,700
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,161,700
Loss at Start-up (Start-up Expenses)	$276,900
TOTAL CAPITAL	$1,438,600
TOTAL CAPITAL AND LIABILITIES	$1,503,000
Total Funding	$1,161,700

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Services

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

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:

Business Plan for Investors

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

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Residential Community	32%	43,200	51,840	62,208	74,650	89,580	10.00%
Offices	28%	33,200	39,840	47,808	57,370	68,844	10.00%
Educational Facilities	24%	27,200	32,640	39,168	47,002	56,402	10.00%
Event Spaces	16%	21,200	25,440	30,528	36,634	43,960	11.00%
Total	100%	124,800	149,760	179,712	215,654	258,785	10%

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

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6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Space Planning	850	901	955
Decorative Selections	900	954	1,011
Furniture & Accessories	1,000	1,060	1,124
Art Selections	750	795	843
TOTAL UNIT SALES	3,500	3,710	3,933
Unit Prices	Year 1	Year 2	Year 3
Space Planning	$500.00	$580.00	$672.80
Decorative Selections	$750.00	$870.00	$1,009.20
Furniture & Accessories	$550.00	$638.00	$740.08
Art Selections	$400.00	$464.00	$538.24
Sales
Space Planning	$425,000.00	$522,580.00	$642,564.37
Decorative Selections	$675,000.00	$829,980.00	$1,020,543.41
Furniture & Accessories	$550,000.00	$676,280.00	$831,553.89
Art Selections	$300,000.00	$368,880.00	$453,574.85
TOTAL SALES	$1,950,000.00	$2,397,720.00	$2,948,236.51
Direct Unit Costs	Year 1	Year 2	Year 3
Space Planning	$100.00	$110.00	$115.50
Decorative Selections	$250.00	$275.00	$288.75
Furniture & Accessories	$100.00	$110.00	$115.50
Art Selections	$120.00	$132.00	$138.60
Direct Cost of Sales
Space Planning	$85,000.00	$99,110.00	$110,309.43
Decorative Selections	$225,000.00	$262,350.00	$291,995.55
Furniture & Accessories	$100,000.00	$116,600.00	$129,775.80
Art Selections	$90,000.00	$104,940.00	$116,798.22
Subtotal Direct Cost of Sales	$500,000.00	$583,000.00	$648,879.00

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
• 2 Drivers
• 1 Receptionist

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$30,000	$33,000	$36,300
Designers	$160,000	$176,000	$193,600
Cleaners	$40,000	$44,000	$48,400
Sales Executives	$42,500	$46,750	$51,425
Accountant	$23,500	$25,850	$28,435
Drivers	$23,500	$25,850	$28,435
Receptionist	$23,500	$25,850	$28,435
Total Salaries	$319,500	$351,450	$386,595

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

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

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8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
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
Sales	$1,950,000	$2,397,720	$2,948,237
Direct Cost of Sales	$500,000	$583,000	$648,879
Other	$0	$0	$0
TOTAL COST OF SALES	$500,000	$583,000	$648,879
Gross Margin	$1,450,000	$1,814,720	$2,299,358
Gross Margin %	74.36%	75.69%	77.99%
Expenses
Payroll	$319,500	$351,450	$386,595
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$498,700	$534,900	$580,495
Profit Before Interest and Taxes	$951,300	$1,279,820	$1,718,863
EBITDA	$951,300	$1,279,820	$1,718,863
Interest Expense	$0	$0	$0
Taxes Incurred	$190,260	$255,964	$343,773
Net Profit	$761,040	$1,023,856	$1,375,090
Net Profit/Sales	39.03%	42.70%	46.64%

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 Sales	$51,000	$55,080	$59,486
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
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
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
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
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.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

AQ

• 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:

1. Color
2. Form
3. Space
4. Texture
5. Pattern
6. Line
7. Light

• 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