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How To Start an Interior Design Business in 7 Steps

Learn how to start an interior design business in 7 steps. From building a portfolio to promoting your services, turn your passion into profit.

How To Start an Interior Design Business in 7 Steps
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Interior design businesses work with clients to create beautiful and functional indoor spaces, from stylish living rooms to efficient home offices. As an interior design professional, you’ll determine the proper lighting, paints, furniture, space, and other decorative materials to improve the appeal of a particular indoor area.

Many interior designers are also actively involved in the construction process and can collaborate with mechanical engineers, civil engineers, and architects to enhance interior spaces. These design projects often require hard work and attention to detail.

These design businesses work with many types of clients, including private homeowners, schools, hospitals, banks, recreational facilities, real estate agencies, and rental apartments. Starting an interior design or decorating business can allow you to satisfy your clients’ needs and make money.

If you have a passion and flair for design, you may be able to turn your hobby into a lucrative entrepreneurship. This article discusses the step-by-step process of running a successful interior design business.

1. Build your portfolio

Your portfolio showcases how your work can cater to potential clients’ tastes. A good way to build a strong portfolio is to include elements that reflect different stages in the interior design process.

Some ideas of things to include:

  • Drawings. Show potential clients the designs you’ve come up with for interior spaces. Drawings can be 2D or 3D and illustrate room layout—the locations of walls, windows, doors, furniture, or other components. Use drawings to highlight how built-in components, such as bathroom and kitchen fixtures, wardrobes, and cabinets, will be beautifully and functionally placed in different areas.
  • Design palettes and mood boards. Clients have unique needs, tastes, and preferences. So, develop different designs and color palettes to target a wide market and put these in your portfolio. If you’ve created palettes for previous clients, perhaps with colors and inspiration they provided, include these to illustrate your ability to adhere to specific preferences. Add descriptive comments to explain how you chose design elements to create comfort, style, and mood.
  • Personal shopping and sourcing recommendations. You should help clients make the best purchasing decisions. From furniture to appliances, your portfolio should display how the products you’ve recommended are good quality, land within a desired budget, and match a client’s unique style.
  • Full renderings. Showcasing full renderings of interior spaces you’ve designed can help trigger interest from prospective clients. You can show off your projects using interior design showcasing software, photos, or testimonials, from initial drawings to finalized interior spaces. By including components like client inspiration, aspects of the design process, and 3D models of finalized projects, you can help prospective clients understand how you might bring their unique ideas to life.

If you’re already doing small projects for yourself, friends, and family, take high-quality photos from multiple perspectives using good lighting. You’ll be able to share these images with potential clients. Before-and-after photos are a great way to go. Place special emphasis on color palette, room layout, and the quality of materials used. Remember that your photographic skill and creativity can enhance impressions with clients.

Another way to build your portfolio is to take relevant classes. Use the projects you complete in class to enhance your portfolio. Structured learning about design considerations such as color palettes, strength of materials, and furniture options or placement can boost your success. Expand your understanding of the concepts and language of design with elements such as art deco, Bauhaus, and feng shui.

Some institutions or platforms where you can enroll in interior design courses and certification programs include:

You’ll need to be able to share your designs digitally, so develop skills with design software programs such as AutoDesk, SketchUp, and Archicad 25. Mastering design software can help you create portfolio content. Most importantly, it can allow you to bring a new level of productivity to your client’s design experience. Learn how to use photo editing software, such as Adobe Photoshop, to make your photos lively and appealing.

Create an online presence once you’ve worked on some projects you’d like to display. Invest in a website to share your skills, experiences, design work, and qualifications with prospective clients. You can also share your portfolio with popular social media platforms like Facebook, X, Instagram, and LinkedIn.

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2. Make a business plan

Although you might be tempted to start an interior design business to express your creativity, consider how you will actually implement it.

A business plan highlights what you’ll do to launch a successful interior design firm. It also helps you evaluate your business idea’s viability, get funding, manage cash, set priorities, and achieve strategic focus.

Your interior design business plan should have the following major sections:

  • Business description. This component declares your new business name, clear vision, goals, ideal clients, and services. You can also briefly overview the interior design industry, major competitors, and trends likely to affect your operations.
  • Marketing plan. The marketing plan component allows you to research and understand your target market. Include information about potential customers, like their geographical location and demographics. The marketing section should also show your unique selling points and the promotion and social strategies your small business will use to boost sales. As a new interior design business, you’ll likely want to target a specific niche rather than the whole market. Some areas you can focus on include color consulting, home staging, virtual design, and artistic decoration.
  • Competitive analysis. Your business plan should feature a detailed analysis of your rivals, including their strengths and weaknesses. You should also highlight how your services differ from those of competing firms. If you deal with similar services, specify the marketing strategy to stand out in the marketplace.
  • Style and structure of business. This section should highlight your core competencies, skills, experiences, certifications, values, and other valuable personal attributes that can help you run a successful interior design business. You’ll also want to determine how you’ll structure the business, such as sole proprietorship or limited liability corporation (LLC).  
  • Production and operational plan. You can use this section to provide a detailed overview of your products and services and how to deliver them to customers. You should also specify the production costs involved.
  • Financial plan. This section allows you to make sales and profit projections. Specify the capital required to start the interior design company and how you’ll spend it. In this section, you can include pro forma balance sheets and cash flow statements to support your financial claims. Most investors use this section to decide whether to invest in your firm. If you seek funding, even from friends or relatives, make sure your financial plan is accurate and clear.

If you experience challenges writing any section of the business plan or have trouble getting started, professionals on Upwork offer business-related services. You can find and hire business planners to research and write comprehensive business plans for your interior design business.

3. Obtain any necessary licenses or business permits

Governments worldwide require businesses to obtain necessary permits and licenses to operate.

We review some permits and legal documents your interior design business may need. These may vary based on your location and situation.

  • Operating license. Depending on your state or country, you may need to register as an interior designer to work in an unsupervised commercial space.
  • Business license. To start and run a business, you’ll likely need to be licensed by a state agency.
  • Business insurance. You should cover yourself from losses or risks that may occur during your operations.
  • Tax identification number. Acquiring a tax identification number from the government will help create a business entity for filing taxes.
  • Employment contracts. If you have staff members, you’ll need employment contracts that specify how they’ll work and how you’ll pay them.

Researching business permits and obtaining necessary documents can be time-consuming. You should consult a legal professional to help you make good decisions and make sure your business meets all requirements. 

Avoid the stress and pressure that arise due to noncompliance of business rules by hiring and working with business consultants on Upwork.

4. Establish a budget

Tracking your expenses with a budget can help you achieve financial stability and make money. A budget can help remind you to pay bills or collect customer payments.

Follow these steps when creating a budget:

  1. Project your income stream, which should be based on realistic project revenue. To estimate your revenue, forecast the number and types of projects you’ll likely have, your hourly rate, and your markup on materials.
  2. Identify all the expenses your business will incur during a specific time frame. A typical business usually has fixed and variable expenses. Fixed expenses include insurance payments and rent, while variable expenses include gas and materials. Adding your expenses together can help you determine the cost of running your business. Monthly costs will vary according to your business size, expenses, economic conditions, and other factors. Average business expenses usually fall between $500 to several thousand every month.
  3. Set realistic targets. When planning your budget, consider how many projects you can take on. In addition to the work, look at the time it takes to deal with the nondesign elements of the business and how quickly you can move from project to project while waiting for customer payment.
  4. Be flexible. Although you have a budget, you can still make certain modifications so you don’t overspend in one area while other areas suffer. Review your budget regularly to avoid such deficiencies.

You can work with various financial consultants on Upwork to establish and monitor your budget.

5. Define your services

In this step, identify the critical interior design services you’ll sell to your target customers. Interior design services include:

  • Flooring. Help potential clients choose a floor that fits their interior space perfectly. Today’s flooring options include carpet, tile, composite, and wood.
  • Lighting. In this service, interior designers determine the type of fixtures and bulbs clients should place in different settings. Make sure the lighting blends well with the interior space.
  • Appliances and hardware. Interior designers assist customers in choosing the right equipment to fit their interior spaces, both aesthetically and functionally.
  • Color palette consultation. Interior designers help clients identify the right colors for their interior space, considering hues, highlights, complementary colors, and varied lighting.
  • Home decorating and space planning. These ventures are also responsible for planning and allocating the decor and furniture in interior spaces, often providing methods for organizing small spaces, including home offices.
  • E-design. You can offer your design services virtually by superimposing your design ideas over photos of the client’s space to give them a visual of what you’re describing.
  • Project management. Clients can hire interior design businesses to take over certain projects and make sure they’re completed successfully, on time, and within budget.

As you establish the types of services you wish to sell, outline your design fees. You may choose hourly rates, receive upfront payment for a project, and even work with clients for a flat fee. Benchmark from your competitors and use the information to set an appropriate pricing plan that will appeal to customers and still earn a profit.

6. Establish payment methods

Some business owners use their personal bank accounts to receive business payments. However, this comes with risks that can expose you to financial and legal liabilities.

Using personal bank accounts for business transactions also leads to confusion and bookkeeping headaches. Some investors may even regard personal accounts as red flags and pull their funding, impacting your business.

The best business practice is to make sure your business has a separate bank account and credit card for receiving and making payments. You can also target more clients with electronic payment options, including Apple Pay, Google Pay, PayPal, Venmo, and Zelle. Establish terms in any contract to help you receive and make timely payments.

7. Promote your business

Promoting your business is essential because it lets potential clients know about your products and services. A good promotional strategy can also set you apart from your competitors.

You can promote your interior design business locally using word of mouth. Gather strong testimonials and publicize them. Build relationships with local businesses and seek partnerships that can lead to referrals. 

As your business grows, use additional promotional tactics, such as:

  • Website presence. Having a website is an essential part of maintaining an active online presence. A website can help your interior design firm look professional. You can also showcase your products and services to clients from different regions. WordPress has numerous web templates available to create a high-end website. Search engine optimization (SEO) can also help you rank higher in search results, boosting your online visibility. You can create a website if you have the know-how, or consider working with web development experts on Upwork.
  • Social media. Market your business on social media platforms like TikTok, X, Facebook, and Instagram. Most social platforms are location-sensitive, meaning you can meet and interact with people from your local community or target area when you use them. Take advantage of locality while running targeted advertisements. Consider contracting social media marketing services on Upwork to grow your interior design business.
  • Digital marketing. Digital marketing involves using advertising to promote your business through the internet. For instance, you can pay for Google Ads or displays on Yelp and other sites to get attention. Other digital marketing strategies include email marketing, content marketing, SEO, and video marketing. Work with digital marketing experts on Upwork to improve your promotional activities.
  • Networking events and trade shows. Attend local networking events and trade shows related to interior design or home improvement. These can be excellent opportunities to meet potential clients, build relationships with suppliers, and stay updated on industry trends.

Get help from Upwork when starting your business

Starting your own interior design business can be challenging since you must focus on many things beyond your creativity. For instance, you need to perform intensive market research, discover your competitors’ weaknesses and strengths, and determine how to use your findings to improve your market position. You must also formulate a marketing plan, design business cards, and advertise.

Upwork can help relieve the stress and pressure of launching a startup. You can access services like website design and development, social media design, content development, logo design, and branding.

If you’re an expert looking for work, get started by signing up on Upwork today. Meet hundreds of prospective clients through Upwork, the world’s work marketplace.

Upwork does not provide legal advice, and each reader and company should take the time needed to adequately analyze the laws that apply to their business endeavor.

Each state’s laws are different, so be sure to consult a local attorney to explain your state’s rules and regulations to you before making a decision.

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How To Start an Interior Design Business in 7 Steps
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