Interior Design Business Plan
Launching your own interior design business is a wonderful time filled with exciting firsts. However, it can be easy to get caught up in the excitement and forget to create a clear plan of action to kick start your business goals. Creating a business plan is the most impactful first step you can take when it comes to starting your interior design business because in doing so, you’ll be able to get really specific about your goals and dreams and carve out a clear course of action. Your business plan is your roadmap and compass for setting up your business processes, spreading the word about your services, and finding new clients.
With that said, if you’ve been in business for a bit and you realize you don’t really have a business plan in place, it’s never too late. It’s a beautiful opportunity to take your business as it is right now and to add structure and vision to keep growing it.
What is a business plan?
But that’s a business plan really? I’m sure you’ve heard of the term, I’m sure you know it’s an important aspect of a business but concretely… what is it?
Practically speaking a business plan is a document consisting of the goals of a business, often the more long-term goals, the methods for attaining those goals, and the time frame for the achievement of the goals.
Having a business plan is also a useful tool to share with members of your team or organization. It is a document created with the intention of everyone understanding it and being on the same page. You can use it as a way to introduce your company to other people too.
It’s a document that keeps you accountable for your goals but also helps you plan at the right time. If you wish to achieve a certain goal by the end of the year, for example, you’re going to need to take some action months before!
A business plan is not the same as a marketing plan
A business plan is a blueprint for taking an idea for a service or product and turning it into a commercially viable reality. A business plan covers every single aspect of your business from finances, to operations, and administration, to hiring and firing, service development, and messaging. Marketing plans focus solely on the elements of marketing. Cash flow and financial awareness are vital for a business plan but are not usually included in a marketing plan.
Whilst your marketing plan is, in essence, a part of your wider business plan, it's important to think of them as separate endeavors.
They are both essential and unique in their own ways.
Target Market and Market Analysis
Do you know who is your target market? Your target market is your niche. It’s a group of potential customers. It’s the market you want to sell your offers (products or services) to. It’s whom you talk to when you promote your business and it’s whom you wish to sign contracts with! Being clear and specific about your target market is an important key to success. Without that clarity, all your efforts will feel like a shot in the dark. Your marketing feels unsafe, unstable, and not really enjoyable, and it probably won’t convert as much as it actually could!
So if you’re not sure who your audience is, click here to define them.
Now that you know who you want to reach, how do you determine if there are enough people within your market who are willing to hire you, at the price you need to charge to make a profit? How to know if the service you’re going to offer is answering a current need?
The best way is to conduct an analysis of the market you plan to connect with. This step will help you to know precisely and accurately who your customers are, or will be, and how you can support them.
Learn more about market research here
The market analysis section of your plan provides evidence that there is a niche in the market that your business can essentially exploit and it shows how you can best fit in or stand out!
To learn more about building your marketing plan, read our blog “3 elements to consider when creating your interior design marketing plan.
Products and services
There are many elements of your business plan to consider, one portion is your product and service section.
Without your products or services are your offers. Without an offer, you don’t have a business.
The products and services section of your business plan clearly outlines your product or service, why it's needed by your current market, and how it will compete and compare with other businesses selling the same or similar products and services.
Some areas to consider include:
A thorough description of the products or services you are offering or plan to offer
Pricing of each product/service
A comparison of the products or services your competitors offer in relation to yours including pricing, sales, and popularity.
The sales literature you will use, including your marketing materials and the role your website and social media will play in your sales efforts.
Description outlining how orders/sales will be processed and completed.
Any intellectual property, such as trademarks, or legal issues you need to address
Future products or services you plan to offer
Some tips that may help create this section include knowing exactly why people need your service, having a clear niche audience to who you will be selling, and knowing what makes your service unique. It can take a few drafts but once you have this part completed the rest of your business plan flows much more organically.
This part is also going to help you build your marketing plan. Once you know clearly your niche, your offers, and your unique value proposition then communicating about it and marketing it is going to flow much better!
Financial planning and goals
Let’s dive into another important part of your plan: your finances!
You want to ensure that you’re making a profit after all! Having clear financial goals will help you to price and market your services too. As you have probably gathered everything is interconnected.
Common financial business objectives and goals include increasing revenue, increasing profit margins, having finances in place for times of hardship, and earning a return on investment - to name a few!
An aspect you’ll want to get into as well is your tax strategy. As a business owner, paying taxes is a part of the game! Being smart about it will help you grow your business! Is there any business investment, or expenses you can do to make your life easier and improve the quality of your business? Hiring a team or a virtual assistant for example is a great way to invest in your own business! Start a list of expenses that would support you and include them in your plan. Maybe you won’t be able to get them all now but you can at least plan for them!
You can use the classic SMART goal system as a way to outline your business's financial goals. SMART is an acronym for Specific, Measurable, Attainable, Realistic, and Time-related. In other words, financial goals should have a definite outcome and deadline and be within reach, based on your personal income and assets.
Team
As we just talked about hiring a team or delegating tasks to consultants can really make a big difference for your business.
If you’ve been trying to do it all alone, learning to delegate is going to be a game-changer for you. Imagine focusing on what you’re REALLY good at and letting other people bring their own expertise.
Here are some key positions you can consider hiring:
An accountant, bookkeeper, and or tax strategist. If you find yourself spending too much time on your finances if you’re confused and you’re afraid you’re not doing things right then having someone on your team to help you is going to not only free up some precious time so you can focus on your own clients but also save you money. Have you ever missed a deadline and had to pay extra on an invoice? Have you ever forgotten to charge a client for a service? Do you believe you’re paying too much taxes and you’d like some tips around that? An accountant might be the first person to hire to grow your team.
A virtual or in-person assistant. Assistants help you with day-to-day tasks. Do you need help organizing some files, sending documents to clients, to go over your hundreds of emails unread? Here again, investing in an assistant can help you save both time and money. Imagine being overwhelmed and not responding to a proposal request fast enough and losing a potential client. That’s something your assistant could have helped you avoid!
An intern. Planning on having interns need to be well planned. It can be a very rewarding experience but it also comes with investment on your end. It’s not just free labor. Your role is to teach them part of your job. Think of the type of certifications you want them to have. You can also list the schools you want them to come from (some schools train their students differently with more or less practice). For how long do you want to work with them (having one intern for a full year versus a different intern every quarter means you’ll have to train more people and go through the learning curve every time.) As long as it’s part of your business plan, this can be a really interesting experience for the two of you!
A marketing & PR firm: Working with a marketing and PR firm helps you ensure your business is getting promoted and is being put in front of your audience without you having to go above and beyond. This is a way to increase your flow of clients and to give you the time and space to still work on your clients. Too often we end up spending a lot of time on our marketing and we find ourselves spending less time on the things that matter to us: designing! Choose a firm that understands your business and your industry. At A Design Partnership, we have built a solid network of interior designers and industry leaders. We help you promote your work in the most efficient way possible! Click here to schedule a Complimentary Brand Consultation.
You can now see how hiring help can be crucial in the growth of your business but it also needs to be well-planned and prepared for this is why it has its value on your business plan!
Additional tips
You can also include things in your business plan such as how many hours you’re planning on working, how many days off you want to take and when, but also organizations you want to collaborate with, and non-profits you want to donate to or volunteer with.
Make your business plan unique to your business! Following some guidelines will help you make sure you get the most important things in but let also your creative entrepreneur mind speak! This is how you’ll create a business that is not only successful but also aligned with your desires and your lifestyle.
If you have business and/or marketing questions, come chat with us! We’re here to help. Click here to schedule a Complimentary Brand Consultation.
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