How to Start an Interior Design Business

When establishing your interior design business, it’s crucial to define the services you’ll offer. This clarity will set clear expectations for clients regarding the interior design process, and it’ll make it easier for the right clients to find you.

Remember, you can always add more services later on. But drafting up a simple service list will help you get started. To build your service list, you first need to ensure you have a clearly defined niche.

Common Interior Design Specialties

Each interior design niche presents its own unique challenges and opportunities. Some designers may specialize in one niche, while others may work across multiple niches. You could start by experimenting with different niches before choosing one that aligns with your interests and skills.

Interior design aesthetics

Another way to niche down is to choose a particular aesthetic. You could choose one, two, or three specific design styles and create a signature look for your business.

Below are some design styles you could consider:

• Modern: Minimalist with neutral colors.
• Traditional: Rich colors and ornate furnishings.
• Contemporary: Open spaces with bold accents.
• Rustic: Natural materials, warm colors, and cozy ambiance.
• Industrial: Raw materials, exposed architecture, and utilitarian aesthetic.
• Bohemian: Eclectic, mixing patterns, textures, and global influences.
• Scandinavian: Minimalistic and functional with natural elements.
• Coastal: Nautical elements and light colors.

This is not an exhaustive list. There are many more styles you could consider. Do some research and find styles that speak to you.

Traditional interior design vs. e-design

Interior design services can be divided into the categories of traditional and online interior design (also known as e-design).

As a traditional interior design business, you’d do a lot of the work for your clients in terms of planning and organizing project execution. By contrast, an e-design business gives clients a lot more power to make design decisions.

Starting an online interior design business would offer the opportunity to work remotely from anywhere, and it would give both you and your clients more flexibility.

Every thriving business starts with a solid plan, and the same goes for an interior design business. It’s important to develop your business plan early on since it will influence aspects of how you operate your business—such as your pricing and marketing strategies.

Here are some of the things you should include in your interior design business plan:

• Executive summary: Define your mission and vision in terms of the type of interior design work you’ll do and your long-term and short-term business goals.
• Business description: Specify your business structure and the specific interior design services you will offer.
• Market analysis: Define your target clients and key competitors in your chosen specialty and area and how you plan to compete.
• Operational plan: Specify what business management tools you will use and summarize your daily operations in terms of your workflow and your business relationships.
• Financial plan: Calculate the startup costs for your interior design business, outline your pricing strategy, create a sustainable budget that includes ongoing operating expenses, and make financial predictions for the future.

Cost of starting an interior design business

Launching your own interior design business will require some initial investments. Make sure you factor these into the financial predictions in your business plan and budget accordingly.

Here is a breakdown of some of the initial costs you can expect:

1. Software and technology expenses: You’ll need to pay for project management tools just to operate your business, and you’ll likely also need design software so that you can create floor plans, 3D renderings, and mood boards.
2. Marketing and advertising costs: While there are free ways to advertise your interior design business (e.g., using social media), you may also want to invest in paid marketing strategies or buy items like interior designer business cards.
3. Website and online portfolio: Unless you’re using a free web host to create your business site on your own, you’ll face website expenses like domain registration and web hosting fees.
4. Office space and equipment: If you feel the need to rent an office space or buy some equipment, then you’ll need to factor these expenses into your startup costs.
5. Licensing, business registration, and legal fees: These costs will vary depending on your location, but you’ll usually need to pay some amount of money to get your business registered.
6. Insurance: Business insurance is a must for protecting your finances in the event of a dispute or accident.
7. Transportation and travel: If you meet clients on-site or attend industry events, account for transportation expenses, including fuel, public transit fares, and vehicle maintenance.
8. Taxes: You’ll need to pay taxes on your business income, and this is a key cost to budget for.

Just about every type of design business needs a website, and businesses in interior design are no exception. One of the key functions of a website for your interior design company is holding a digital space to display your work and give potential clients a glimpse into what they can expect from you as a designer.

The best place to host your portfolio is on your own business website, where potential clients will be able to not only see examples of your work but also read customer testimonials and learn important details about you and your business, including your service offerings and prices, your style, and who you work with.

What to include in your interior design portfolio

In your online interior design portfolio, you could include project photos and case studies. With this, you can showcase your work 24/7, establish credibility, and attract more clients.

Here are guidelines for what types of photos belong in your interior design portfolio:

1. Before and after photos: Keep track of all your projects and take “before” and “after” photos showing the results of your work. These images will help your clients visualize how you’ll be able to transform their space.
2. Personal projects or mock designs: If you haven’t had a lot of practical experience yet or you don’t want to include examples of your past work, you can also demonstrate your talents through your own personal projects or mock designs.
3. Diverse styles: Showcasing a wide range of projects will demonstrate your versatility and your ability to provide unique solutions tailored to a client’s preferences. Even if you’re niching down on a particular aesthetic, you can include examples of your ability to work with different types of spaces.
4. Design solutions: Part of the job is finding creative ways to maximize a space while keeping it functional and aesthetically pleasing. If you’ve had any tough projects that required out-of-the box thinking on your part, include them in your portfolio to showcase your ability to overcome design challenges.

How to create a website

Thankfully, creating a website isn’t anywhere near as tough as it sounds. You can easily build the site on your own using a website builder like WordPress or Squarespace. Alternatively, you can hire a freelance web developer or web designer to do it for you.

As a business owner, you won’t just spend your days doing fun design work. You’ll also be juggling multiple responsibilities, like conceptualizing design plans, selecting materials, communicating with clients, coordinating with contractors and architects, and ensuring quality control.

When it comes to achieving all these goals, business management tools are your friend. Use the options below as a jumping-off point to build up a solid interior design tool kit.

Interior Design Business Tools

Before you can register your interior design business, you first need to choose your business structure and the business name you want to register.

Common options for business structures include sole proprietorship/sole trader, limited liability company (LLC), partnership, or corporation. Your choice will impact the registration process, how much you’ll need to pay in business registration fees, and your personal liability in the long term.

When choosing a business name, make sure it’s not already in use by another business, especially in the same industry. You can check name availability online using local business registration databases. It’s also worth checking if the name is available on social media and as a website domain.

A good interior design business name ticks all these boxes:

• Easily searchable
• Reflects the tone of the brand
• Memorable
• Conveys what the business does
• Simple and easy to spell

These are only suggestions. If you want to keep things simple, you could instead just use your own name if you plan on operating as a sole proprietor.

Registering your interior design business is a crucial step to get started and ensures that your business operates legally. If you don’t register your business, you could face consequences like tax penalties and liability issues, not to mention loss of credibility.

The exact registration process will vary according to your location and your chosen structure, but start by checking your local government website or business registration office. There, you should be able to find the necessary registration forms and guidelines.

Licenses and permits

Research the specific licenses and permits required for interior design businesses in your jurisdiction. These may include a general business license, a home occupation permit (if you work from home), and industry-specific permits. Licensing fees vary based on location and the type of license or permit.

Tax ID number

If you’re based in the US and your business structure requires it, you’ll need to apply for an Employer Identification Number (EIN) or Federal Tax Identification Number through the Internal Revenue Service (IRS).

This number is necessary for tax purposes, and you’ll need it to open a business bank account. It’s free to apply for one through the IRS website.

Business bank account

It’s a good idea to separate your personal and business finances. To do that, you’ll need to open a business bank account. This is essential for financial transparency, tax purposes, and professional credibility. It’s also a legal requirement for many business structures.

Most banks offer business account options. Visit a local branch or apply online, providing your business registration and tax ID number.

Pricing your services can be tricky. You need to hit the right balance to ensure you can cover your costs and gain a profit while still attracting clients.

Many interior designers charge by the hour, although you can also charge by the project or decide on a fixed rate that’s tied to the size of the space you’re designing.

Online estimates suggest that interior designers typically charge somewhere in the range of $50–$200 per hour. However, you should adjust your prices to reflect your experience level, qualifications, and location.

Whatever pricing strategy you use, be sure to offer your clients a transparent breakdown of costs, and always formalize your agreements in writing.

Interior designers hardly ever work alone. A key part of running an interior design business is collaborating with other professionals, including architects, general contractors, subcontractors, materials suppliers, and structural engineers.

Effective networking to build and foster these relationships will improve your business operations and allow you to deliver satisfactory services in a timely manner.

Industry events, conferences, and trade shows are great places to meet fellow designers, suppliers, and potential clients. You can also join interior design associations, professional organizations, and online communities or participate in design events and expos.

Collaborating with influencers and other businesses is also a fantastic way to reach new audiences, often without a significant financial investment or time commitment.

Once you’ve set up your interior design company, it’s time to start looking for clients. There are two prominent strategies that interior designers often use to market their business.

Social media marketing

Social media is an excellent free tool for increasing your visibility and putting you on the map as a new interior design business. For best results advertising on social media, follow these tips:

• Choose the right platforms: Select social media platforms that align with your target audience. For interior design, platforms like Instagram, Pinterest, and TikTok would be particularly effective.
• Create high-quality content: Share high-quality images of your work. Visual content is key in the design industry. Showcase your portfolio, before-and-after photos, and design inspiration.
• Engage with your audience: Respond to comments and engage with your followers. Building relationships on social media is crucial for client retention and referrals.
• Use hashtags: Incorporate relevant hashtags to expand your reach and visibility within your niche.

Blogging

Adding blog content to your interior design business site is a great way to organically attract clients who are searching for design inspiration and advice. A blog is also the ideal place to showcase your industry knowledge.

The best part about this marketing approach is that it’s completely free, as long as you have a business website already. For best results when starting a blog, keep your content relevant and informative, use captivating visuals, use keywords and SEO strategies, and post consistently.

Paid advertising

Paid ads aren’t essential, and they will add to your overall business costs, but they can be extremely helpful when you’re starting out. A good place to start is Google Ads. Alternatively, you can pay for ads on social media platforms, in local publications, or on home design websites.

Effective communication is the secret to happy clients. When a new client first reaches out to you, start by setting up an initial consultation. Listen actively, set clear expectations, and ask questions to clarify any doubts.

Update your clients regularly and in a timely manner, and stay transparent about costs, challenges, and changes that arise during the project. Approach issues with a problem-solving mindset.

Make sure you create detailed written agreements that outline project specifics, including timelines, payment schedules, and responsibilities. This will help manage client expectations from the outset.

Scaling your business

As your business grows, there may come a time when you want to expand. When your workload consistently exceeds your capacity, it may be a sign to hire someone else.

Expanding your business will free up time for you and potentially allow you to offer more services or new design styles. If you think it might be time to grow, spend some time assessing your needs and the demand from your clients.

Scale gradually to maintain quality while aligning with your long-term business goals and vision. Hiring more designers or staff can also help you take on larger projects and take your interior design business to new heights.