home decor business plan ideas

How to Start a Home Decor Business

Main Sections In This Post Steps To Starting A Home Decor Business Points to Consider Knowledge Is Power Featured Video

This post offers a detailed guide to kickstarting a home decor business. It provides examples, samples, and insights into the home decor industry.

Our “Knowledge Is Power” section equips you with valuable resources for startup and ongoing operations.

If you find this post helpful, feel free to share it or bookmark it for future reference.

Let’s get started with the steps.

The Steps to Take To Start Your Home Decor Business

Below are the steps to starting a home decor business.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into
• Home Decor Business Overview
• Researching Your Home Decor Business
• Looking at Financials
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose a Home Decor Business Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier and Service Provider Considerations
• Setting Your Prices
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees
• Getting Customers Through the Door

1. An Overview of What You’re Getting Into

a. ) Owning and Operating Your Own Business

Owning and operating a business diverges significantly from traditional employment.

It entails heightened responsibilities, potentially involving long hours and the need to address issues as they arise.

Prior to launching your home decor venture, it’s essential to assess whether the demands of business ownership align with your expectations and capabilities.

This requires a different mindset, increased accountability, and the capacity to handle the challenges that come with entrepreneurship. Ensure that you’re fully prepared for this shift.

See Considerations Before You Start Your Business to identify points for a new business owner.

b.) Pros and Cons of Owning a Business

Every business comes with its own set of advantages and disadvantages.

While the benefits of running a business can be appealing, it’s crucial not to overlook the potential challenges that may arise.

Taking the time to evaluate these challenges carefully provides a comprehensive understanding of the obstacles you might encounter.

This proactive approach helps you anticipate and prepare for potential issues, reducing the likelihood of unexpected surprises down the road.

Prioritizing a balanced perspective that considers both the rewards and challenges of entrepreneurship are essential for making informed decisions and increasing your chances of long-term success in your home decor business.

For more, see Pros and Cons of Starting a Small Business.

c.) Passion a Key Ingredient For Success

Passion: The Driving Force

Passion is the cornerstone of success in the world of owning and operating a home decor business. It serves as the unwavering motivation that propels your journey in the industry.

Passion Fuels Problem-Solving

When challenges emerge, passion becomes your compass. Passionate entrepreneurs seek solutions to problems, while those lacking them tend to seek an escape route.

The presence or absence of passion significantly influences your ability to overcome hurdles.

The Crucial Litmus Test

Consider a scenario: You possess boundless wealth, all your desired possessions, and limitless freedom.

Would you still choose to run a home decor business without any financial gain? If your answer is a resounding yes, it underscores your passion for this field, indicating you’re on the right path.

Passion vs. Alternatives

Conversely, if your response is negative, it prompts introspection. What alternative path would you prefer?

Perhaps pursuing that passion is wiser than embarking on a home decor business venture.

In the scope of home decor entrepreneurship, passion isn’t just a bonus; it’s a prerequisite for success.

Cultivating and sustaining your passion for this field enhances your odds of success and resilience when faced with challenges.

It’s the driving force that keeps you on course, making your journey more fulfilling and rewarding.

For More, See How Passion Affects Your Business .

2. Gaining an Overview of Owning a Home Decor Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running a home decor business.

Note:  This section contains an abundance of information that you will want to review. It will give you an overview of what to expect, and it’s worth reading this section.

a.) A Quick Overview of Owning a Home Decor Business

A home decor business revolves around enhancing the aesthetics and functionality of residential spaces.

It encompasses various aspects, including interior design , furniture, decor accents, and more.

The primary goal is to create appealing and functional living environments that align with the client’s preferences and needs.

Day-to-Day Operations: A Glimpse

• Client Consultations: Your day often begins with client meetings. These consultations are essential for understanding their vision, style, and specific requirements. Active listening and effective communication are key skills.
• Design and Planning: You delve into the creative process after gathering client insights. This phase involves developing design concepts, space planning, selecting color palettes, and sourcing suitable decor items.
• Budget Management: Managing budgets is a critical aspect. You must ensure that your design proposals align with the client’s financial constraints while delivering quality results.
• Sourcing and Procurement: Home decor businesses involve sourcing furniture, decor, and materials. This includes liaising with suppliers, tracking orders, and maintaining inventory.
• Project Coordination: Coordinating various aspects of a project is pivotal. This includes scheduling contractors, overseeing installations, and ensuring the design vision is flawlessly executed.
• Marketing and Client Relations: Building and maintaining client relationships is ongoing. Marketing your services through various channels, such as social media and referrals, is essential for business growth.
• Financial Management: Daily financial tasks encompass tracking expenses, invoicing clients, and managing payments. Effective financial management ensures the sustainability of your business.
• Trends and Industry Updates: Staying current with home decor trends and industry developments is crucial. Regular research and education keep your offers fresh and relevant.
• Site Visits: Depending on the project phase, you may need to conduct site visits to assess progress, address issues, and ensure that the design plan is executed correctly.
• Documentation: Accurate record-keeping, including contracts, design plans, and project timelines, is vital for organization and legal purposes.

Running a home decor business involves diverse responsibilities, from creative design and project management to financial oversight and client relations.

Success in this field hinges on the ability to balance artistic flair with practicality, effective communication, and efficient business operations.

b.) Key Points to Succeed in a Home Decor Business

• Market Research: Thoroughly research the home decor industry, identifying trends, target demographics, and potential competitors. This insight informs your business plan.
• Business Plan: Develop a comprehensive business plan outlining your business goals, strategies, budget, and financial projections for both short and long-term success.
• Legal Requirements: Register your business, acquire any necessary permits or licenses, and ensure compliance with local regulations. Consult with legal and financial advisors as needed.
• Brand Identity: Create a strong brand identity, including a memorable logo and a compelling brand story that sets you apart in the market.
• Budgeting: Develop a detailed budget that covers startup costs, initial inventory, marketing, and operational expenses. Monitor your finances closely to stay on track.
• Supplier Relationships: Establish relationships with reliable home decor products and materials suppliers. Negotiate favorable terms and pricing.
• Marketing Strategy: Craft a marketing plan that includes a website, social media presence, and strategies for reaching your target audience. Consider collaborating with influencers or bloggers for visibility.
• Professional Network: Build connections with industry professionals, such as contractors, artisans, and interior designers, to tap into a network for collaborations and referrals.
• Client Contracts: Develop clear and comprehensive client contracts that outline services, payment terms, and project timelines. Legal consultation may be beneficial.
• Online Presence: Invest in a user-friendly website that showcases your portfolio and services. Ensure your online presence is optimized for search engines (SEO).

Key Points to Succeed When Your Home Decor Business Is in the Operational Phase:

• Client Satisfaction: Prioritize client satisfaction by delivering exceptional service and maintaining open communication throughout projects.
• Quality Control: Ensure that the quality of your work consistently meets or exceeds client expectations, building a strong reputation for excellence.
• Marketing Continuity: Maintain an active online presence and adapt marketing strategies to stay relevant in the market. Encourage satisfied clients to leave reviews and provide referrals.
• Financial Management: Continuously monitor your finances, keeping a close eye on expenses, revenue, and profit margins. Adjust your budget as needed.
• Professional Development: Stay updated on industry trends, attend relevant workshops or courses, and consider obtaining certifications to enhance your skills and knowledge.
• Time Management: Efficiently manage your time and projects, ensuring that you meet deadlines and maintain a smooth workflow.
• Adaptability: Be flexible and willing to adapt to changing client preferences and design trends to remain competitive.
• Networking: Cultivate and expand your professional network for collaborations and referrals, fostering mutually beneficial relationships.
• Feedback Loop: Encourage client feedback and use it to improve your services and continuously address any areas for enhancement.
• Legal and Tax Compliance: Stay compliant with all legal and tax obligations, including contracts, permits, and tax filings, to avoid potential issues. Consult with professionals as necessary.

c.) Home Decor Business Models

Types of Home Decor Business Setups and Their Business Models

Interior Design Studio:

• Business Model : Charge clients for personalized interior design services, including space planning, color selection, and sourcing decor items. Earn revenue through design fees and commissions on product sales.

Home Staging Service:

• Business Model : Prepare homes for sale by arranging furniture and decor to enhance their appeal. Generate income through consultation fees and service charges for staging.

Online Home Decor Store:

• Business Model : Sell a curated selection of home decor products through an e-commerce platform. Revenue comes from product sales and potentially dropshipping arrangements.

Decorative Painting and Murals:

• Business Model : Create unique wall designs, murals, and decorative paintings for residential and commercial clients. Earn income through project-based fees.

Home Decor Blog and Affiliate Marketing:

• Business Model : Establish a home decor blog offering design tips and product recommendations. Generate revenue through affiliate marketing, where you earn commissions on product sales referred from your blog.

Event Decor Services:

• Business Model : Specialize in decorating event venues for weddings, parties, and corporate events. Charge fees for event decoration services.

Choosing the Right Business Model:

Selecting a suitable business model for your home decor business is critical. Each model has its unique challenges and opportunities. Switching models later can be complex and costly.

Focusing on a niche within the home decor industry allows you to specialize and tailor your offers to a specific audience, making you a specialist rather than a generalist. This focused approach can enhance your competitive edge.

Identifying a business model that resonates with your passion, skills, and target market is essential for a smoother and well-planned startup phase.

It sets the foundation for your business’s direction and growth, ultimately contributing to your long-term success in the home decor industry.

d.) Making Your Home Decor Business Stand Out

• Personalized Design Services: Offer tailor-made design solutions that cater to each client’s unique preferences and lifestyles. Create personalized spaces that reflect their individuality and needs.
• Sustainable and Eco-Friendly Focus: Embrace sustainable practices by using eco-friendly materials, promoting upcycling, and reducing waste in your designs. Highlight your commitment to environmental responsibility.
• Virtual Design Consultations: Provide online design consultations, enabling clients to access your expertise remotely. This approach expands your reach beyond local clients.
• Collaborations with Local Artisans: Partner with local craftsmen and artisans to incorporate handmade, locally sourced decor elements into your designs. Supporting the local community adds authenticity to your brand.
• Innovative Technology Integration: Stay at the forefront of design technology by incorporating virtual reality (VR) or augmented reality (AR) to create immersive design experiences for clients.
• Exclusive Product Lines: Develop your own line of unique home decor products that can’t be found elsewhere. This exclusivity adds value to your brand.
• Interactive Showrooms: Create interactive showrooms where clients can experience your designs firsthand. Incorporate augmented reality or interactive displays to engage visitors.
• Online Design Courses: Share your expertise by offering online design courses or workshops, establishing yourself as an industry authority and diversifying your income streams.
• Signature Style: Develop a distinctive design style or signature element that sets your work apart. Consistency in your design aesthetic can attract clients seeking your unique touch.
• Client Testimonials and Portfolios: Showcase your successful projects through compelling client testimonials and a well-curated portfolio on your website. Let satisfied clients speak to your skills and professionalism.

e.) Add-ons for a Home Decor Business

• Custom Furniture Design: Expand your services by offering custom furniture design to complement your decor solutions. Create bespoke pieces that align with your client’s design preferences.
• Home Organization Services: Help clients declutter and organize their spaces effectively. Offer professional organization services to maximize functionality and aesthetics.
• Virtual Reality Home Tours: Provide clients with VR home tours, allowing them to visualize your design concepts in their spaces before implementation.
• 3D Printed Decor Items: Integrate 3D printing technology to create custom decor items or unique design elements that can’t be found elsewhere.
• Monthly Subscription Boxes: Curate monthly or seasonal home decor subscription boxes filled with exclusive items and design inspiration, creating a recurring revenue stream.
• Home Decor Workshops: Host in-person or virtual workshops for clients interested in DIY decor projects. Provide materials and guidance for participants to create their own decor pieces.
• Real Estate Staging Services: Offer staging services to real estate agents and homeowners looking to enhance the appeal of properties for sale. Staged homes often sell faster and at higher prices.
• Art Selection and Curation: Assist clients in selecting and curating art pieces that complement their decor. Collaborate with local artists or galleries for a diverse art collection.
• Outdoor Living Design: Extend your services to outdoor spaces by specializing in designing outdoor living areas, patios, and gardens.
• Design Maintenance Packages: Offer ongoing design maintenance packages to ensure that clients’ spaces continue to look fresh and up-to-date over time. This can include seasonal decor updates and rearrangements.

Incorporating these ideas into your home decor business can help you stand out in a competitive market and provide valuable add-on services that cater to diverse client needs.

f.) Challenges You Could Face When Starting and Operating a Home Decor Business

Challenges During the Startup Phase of a Home Decor Business:

• Initial Capital: Securing adequate funding for startup costs, including design materials, marketing, and studio space, can be a significant challenge for entrepreneurs.
• Market Research: Conducting thorough market research to identify target demographics, assess competition, and determine pricing strategies requires time and effort.
• Establishing Brand Recognition: Building a recognizable brand in a crowded market is a challenge. It takes time and consistent effort to differentiate your home decor business.
• Client Acquisition: Gaining the trust of initial clients can be tough when you lack a portfolio and testimonials. Attracting your first customers requires effective marketing.
• Supplier Relationships: Establishing reliable relationships with suppliers and negotiating favorable terms can be challenging, especially for new businesses with limited buying power.
• Legal and Regulatory Compliance: Navigating legal requirements, permits, and zoning regulations can be complex and time-consuming.
• Competition: Competing with established home decor businesses with well-established client bases and brand recognition poses a formidable challenge.
• Cash Flow Management: Maintaining healthy cash flow can be a struggle, especially during the early stages when expenses may outweigh revenue.
• Time Management: Balancing various startup tasks, from design work to marketing and administrative duties, can be overwhelming for solo entrepreneurs.
• Marketing Effectively: Developing and executing a marketing strategy that effectively reaches your target audience and generates leads can be challenging without prior marketing experience.

Challenges When the Home Decor Business is Open and Operating:

• Client Retention: Keeping clients satisfied and encouraging repeat business is vital. Maintaining high levels of customer satisfaction can be a challenge.
• Market Saturation: As the business matures, competition may increase, making it harder to stand out in the market.
• Trends and Adaptation: Staying updated with evolving home decor trends and technologies requires ongoing effort and education.
• Financial Stability: Maintaining consistent revenue and profitability while covering operational costs becomes a constant challenge.
• Staffing Issues: Hiring and retaining skilled staff can be a challenge, particularly if you experience fluctuations in demand.
• Scaling Successfully: Expanding your business while maintaining quality and customer satisfaction can be tricky.
• Economic Factors: External economic factors, such as recessions or market downturns, can impact consumer spending on home decor.
• Seasonality: Balancing the seasonality of the home decor business, such as increased demand during holidays, can be challenging.
• Operational Efficiency: Ensuring that your operations run smoothly and efficiently as the business grows requires ongoing optimization.
• Legal and Liability Concerns: As the business scales, managing legal and liability issues becomes more complex, necessitating legal counsel.

Addressing these challenges in a home decor business’s startup and operational phases requires careful planning, adaptability, and a commitment to continuous improvement.

Staying informed, investing in marketing and customer relationships, and maintaining financial discipline are key strategies to overcome these obstacles.

g.) Questions You Need to Consider for Your Home Decor Business

By answering the following questions, you will prepare yourself for some of the issues you may encounter if you start your home decor business:

What type of home decor business model are you considering?

• Are you planning to offer interior design services, sell home decor products, or both? Defining your business model is the first step.

Do you have the skills needed to manage and operate a home decor business?

• Assess your design skills, business acumen, and knowledge of industry trends. Identify any gaps and determine if additional training or hiring experts is necessary.

Will you do all the work alone, or will you hire employees?

• Decide whether you can manage all aspects of your business independently or if hiring employees or freelancers is essential to meet demand.

Do you intend to manage your business, or are you planning to hire a manager?

• Consider whether you have the time and expertise to manage the day-to-day operations or if hiring a manager is better.

How will you get customers?

• Develop a comprehensive marketing plan outlining strategies for attracting and retaining customers, including online presence, advertising, and networking.

Who are you competing against?

• Identify your local and online competitors and analyze their strengths and weaknesses. This information can help you position your business effectively.

How will you keep customers coming back?

• Consider customer retention strategies, such as loyalty programs , exceptional service, and ongoing communication.

Are you interested in finding partners or investors?

• Decide whether you’re open to partnerships or seeking investors to fuel growth and expansion.

How will you finance your startup costs?

• Evaluate your financing options, including personal savings, loans, grants, or seeking investors.

Have you considered how long it will take to become profitable?

• Create a realistic financial projection to estimate when your business will start generating profits.

How will you support yourself during the early stage of operation, which can be financially challenging?

• Determine your personal financial plan for covering living expenses during the initial phases of business development.

What products and services will you offer?

• Define your product and services, ensuring they align with your target market’s needs and preferences.

How do you know people will want what you have to offer?

• Conduct market research to validate your product or service demand and identify your ideal customer.

What will you provide that sets you apart from your competition?

• Identify your unique selling proposition (USP) and the value you bring to customers that distinguishes you from competitors.

How will you position your Home Decor Business, High-End, Average, or discount operation?

• Determine your pricing strategy and positioning in the market based on your target audience and business goals.

Answering these questions thoughtfully and strategically will help you lay a strong foundation for your home decor business and navigate the challenges that may arise during its establishment and operation.

3. Research

Inside information home decor business research.

Conducting In-Depth Research: A Vital First Step

Before taking any further actions, conducting thorough research is paramount when starting your home decor business.

Quality information is your compass, guiding you through the journey ahead. Without it, you risk unexpected challenges.

Learning from Experienced Professionals

Seek insights from experienced home decor business owners who can provide valuable, dependable information.

Their knowledge, honed over years, is a priceless resource. Spending time with them offers an opportunity to tap into their wisdom.

Finding the Right Mentors

Discovering the right people to learn from is a process that goes beyond this post.

I’ve compiled an article with strategies for identifying and approaching mentors respectfully and non-intrusively.

Prepare for Success

To truly understand the path you’re embarking on, I strongly recommend reading “ An Inside Look Into the Business You Want To Start .” This article provides comprehensive details to ensure you’re well-prepared.

Supply, Demand, and Your Location

Navigating Supply, Demand, and Location for Your Home Decor Business

Understanding the dynamics of supply, demand, and location is paramount when launching a successful home decor business.

Here’s a breakdown of key considerations:

Demand Assessment:

Determining the demand for your home decor products and services is the foundation of your business.

High quality and reasonable prices alone won’t suffice; there must be a substantial demand to sustain your venture.

A lack of demand can lead to financial challenges, potentially forcing closure.

Market Saturation Evaluation:

Besides demand, assess whether the market is saturated with offers similar to yours.

In a crowded space, gaining market share can be challenging unless you offer unique value. Consider if competitors could easily replicate your concept, potentially eroding your market share.

Competitive Analysis:

Examine your competition closely. Avoid competing against businesses you cannot contend with.

Instead, focus on what sets you apart from them. Identify elements that you can provide that competitors don’t, aligning these with customer preferences and willingness to pay.

Location Selection:

Choosing the right location is a delicate balancing act. Aim for a location that strikes a balance between demand and manageable competition. Additionally, affordability is critical.

A densely populated area can offer exposure, but expenses must not outweigh profits.

Conversely, a cheaper location should still guarantee sufficient customer traffic to sustain the business.

Home-Based Business Viability:

Operating from home can be viable, particularly for online businesses or those with minimal customer interaction. Starting from home offers cost savings and flexibility.

As your business grows, consider transitioning to a commercial location based on your evolving needs.

In conclusion, the success of your home decor business hinges on selecting the right location that aligns with supply and demand dynamics.

Thorough research and analysis of potential locations are essential steps to ensure your business thrives.

Choose wisely, as your location can significantly impact your long-term success.

For more, see the Demand for Your Products and Services and Choosing The Best Location for Your Business.

Target Audience

The Value of Understanding Your Target Audience

Understanding your target audience is invaluable.

It enables you to tailor your products and services precisely to their needs and preferences rather than offering a generic range.

Doing so enhances the relevance of your offers and improves customer satisfaction, ultimately driving business success .

Target Market Ideas:

• Homeowners looking to redecorate.
• Newlyweds seeking home decor.
• Individuals moving into a new residence.
• Real estate agents staging properties.
• Interior designers in need of decor suppliers.
• Home improvement enthusiasts.
• Gift shoppers seeking unique decor items.
• Event planners for decor rentals.
• Commercial spaces seeking professional decor solutions.
• DIY enthusiasts seeking decor materials.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Understanding the numbers and making good decisions is a crucial factor in succeeding.

You will struggle to manage a successful operation without putting in the time and effort to understand and monitor the financials of your home decor business.

Let’s look at startup costs, operating costs and profits.

Start-Up Costs:

Estimating Startup Costs

Accurate estimation of startup costs is a pivotal aspect of the planning process for your home decor business.

The Consequences of Misestimation:

• Underestimation may lead to financial shortfalls, hindering your ability to open as planned.
• Overestimation can make your venture appear excessively risky, potentially deterring potential investors or lenders or yourself.

Determining Your Costs:

• Startup costs vary based on factors such as business size, location, employee hiring, equipment procurement (new or used), and facility choice (rented, leased, home-based, or online).
• Create a comprehensive list of requirements and obtain price quotes. Be prepared to incorporate unforeseen expenses that may arise during your research.

Customized Estimations:

• There’s no one-size-fits-all cost estimate for starting a home decor business, as each setup is unique.
• Practical estimation starts with defining your specific business model.

Cost Variations:

• Online businesses generally have lower setup and operational costs compared to brick-and-mortar or home-based businesses.
• The choice of your operational setup significantly influences your expenses.

Comprehensive Research:

• To estimate startup costs effectively, thorough research is essential.
• Seek accurate estimates to determine the viability of your home decor business venture.

By carefully assessing your startup costs and conducting thorough research, you’ll position your home decor business for a smoother and more successful launch, minimizing financial surprises along the way.

Sample Startup Cost For a Home Decor Business 

The purpose of the list below is to focus on the items in the list more than the numbers because these are general samples, and your figures will be different.

Sample Estimated Startup Costs for a Mid-Sized Home Decor Business in the USA

• Lower Estimate: $500
• Upper Estimate: $1,000
• Lower Estimate: $1,000
• Upper Estimate: $3,000
• Lower Estimate: $1,500/month
• Upper Estimate: $3,500/month
• Lower Estimate: $5,000
• Upper Estimate: $15,000
• Lower Estimate: $10,000
• Upper Estimate: $30,000
• Lower Estimate: $2,000
• Upper Estimate: $5,000
• Lower Estimate: $1,500
• Upper Estimate: $3,500
• Lower Estimate: $3,000
• Upper Estimate: $7,000
• Upper Estimate: $1,500
• Upper Estimate: $25,000
• Lower Estimate: $5,000/month (for 2 employees)
• Upper Estimate: $10,000/month (for 4 employees)
• Lower Estimate: $1,000/year
• Upper Estimate: $3,000/year

Total Estimated Startup Costs:

• Lower Estimate: $43,500
• Upper Estimate: $109,000

Remember that these are sample estimates; actual costs will vary depending on location, specific business model, and market conditions.

Thorough research and budget planning are essential to ensure a successful start for your mid-sized home decor business in the USA.

For more, refer to my article on Estimating Startup Costs.

Monthly Operating Costs:

Managing Monthly Expenses

Much like startup costs, your monthly expenses can vary significantly based on various factors.

Here’s a closer look at how these variables come into play:

Staffing Levels:

• Operating independently or with a full staff substantially impacts your monthly expenses. Employee salaries, benefits, and related costs are key considerations.

Location Impact:

• The choice of location plays a pivotal role. High-traffic areas typically command higher rent and operational costs compared to areas with fewer potential customers.

Financial Commitments:

• Ongoing loan payments, if applicable, contribute to your monthly financial obligations.

Marketing Investments:

• The expenses associated with marketing campaigns can fluctuate, affecting your monthly budget.

Maintenance and Repairs:

• Unforeseen repairs or maintenance costs may arise and should be factored into your monthly expenses.

Budgeting for Sustainability:

To maintain optimal business operations and weather revenue fluctuations, keeping expenses as low as possible without compromising quality, service, or productivity is crucial.

Careful budgeting ensures your home decor business remains financially viable and sustainable in the long run.

SAMPLE list of estimated monthly expenses for a MID-sized home decor business

Again, the purpose of the list below is to focus on the item in the list more than the numbers. The numbers are a general idea, and your numbers and list will differ. 

Sample Estimated Monthly Expenses for a Mid-Sized Home Decor Business in the USA

• Lower Estimate: $3,000/month (2 employees)
• Upper Estimate: $6,000/month (4 employees)
• Upper Estimate: $2,500
• Lower Estimate: $200
• Upper Estimate: $500
• Lower Estimate: $300
• Upper Estimate: $800
• Upper Estimate: $600

Total Estimated Monthly Expenses:

• Lower Estimate: $12,000
• Upper Estimate: $29,400

Please note that these are sample estimates, and actual monthly expenses can vary based on your specific circumstances, location, and business model.

Thorough financial planning is crucial to ensure the sustainability and profitability of your mid-sized home decor business in the USA.

Considerations for Profits 

Determining Net Profit

Your business’s net profit is influenced by how you operate it, including factors like overhead costs and pricing strategies:

Overhead Impact:

• High overhead can significantly reduce your net profit, even with substantial sales. Managing expenses is key to maximizing profit.

Personalized Profit Estimate:

• Given the unique variables in your business, you’re best equipped to estimate your potential profit. Your operational decisions and setup play a crucial role.

Positioning Matters:

• Whether you position your business as high-end, high-quality, or a discount operation affects your profit margins.

Estimation Approach:

• Calculate your cost per sale, project monthly sales volume, and deduct overhead costs to gauge potential profit.

Sales Focus:

• Balancing profit per sale with sales volume is essential. High profit margins per sale need to cover expenses while ensuring a healthy overall profit.

Your business model and operational choices guide your ability to estimate profit. It’s a dynamic process that requires continuous monitoring and adjustment to achieve sustainable profitability in your home decor business.

For More, See Estimating Profitability and Revenue.

Final Thoughts on Financials 

Crucial Financial Management

Effective financial management is integral to your home decor business.

Here’s why it’s vital:

Tracking Transactions:

• Accurate record-keeping is essential for tax and legal compliance, ensuring you meet all financial obligations.

Monitoring Profit and Expenses:

• Regularly tracking profits and expenses provides a clear financial picture. It helps identify trends and keeps you informed about your business’s financial health.

Spotting Trends and Issues:

• Detailed financial reports allow you to spot trends and anomalies. For instance, if sales drop suddenly, you can investigate the cause promptly, whether it’s market changes, product issues, or new competitors.

Proactive Decision-Making:

• Monitoring financials empowers proactive decision-making. It enables you to take corrective actions swiftly to address issues before they escalate.

Preventing Late Discoveries:

• Without vigilant financial monitoring, problems may go unnoticed until they become critical. Early detection is key to addressing challenges effectively.

In summary, closely managing your home decor business’s financials isn’t just about compliance; it’s a strategic tool for success.

Regular financial analysis enables you to make informed decisions, identify opportunities, and safeguard your business’s financial stability.

Consider revisiting Step 3. Researching your home decor business , where there is a technique to get inside information, will benefit you in this step.

5. Create Your Mission Statement

Defining Your Purpose with a Mission Statement

A mission statement serves as the compass for your home decor business, helping you clarify its purpose and values.

Here’s why it matters:

Guidance and Focus: A well-crafted mission statement guides your actions and decisions, ensuring alignment with your core purpose.

Customer-Centric: It reminds you of the main benefit you offer to your customers and community, emphasizing their needs and expectations.

Staying On Track: In the dynamic business world, a mission statement is a constant reminder of your original vision, preventing distractions and maintaining your business’s course.

Examples of Home Decor Business Mission Statements:

• “Enhancing Homes, Inspiring Lives.”
• “Bringing Beauty and Comfort to Every Space.”
• “Creating Stylish, Sustainable Living Environments.”
• “Transforming Houses into Homes of Happiness.”
• “Designing Dreams, One Room at a Time.”

These mission statements reflect various aspects of a home decor business’s purpose, from aesthetics to sustainability and customer-focused outcomes. Tailor yours to capture the essence of your unique business and values.

For more, see How To Create a Mission Statement.

6. Creating A Unique Selling Proposition (USP)

Crafting a Unique Selling Proposition (USP) for Your Home Decor Business

A Unique Selling Proposition (USP) is your secret weapon in setting your home decor business apart from the competition.

Here’s its significance:

Uniqueness Highlight: Your USP defines what makes your business exceptional in the home decor market, giving you a clear identity.

Customer Attraction: It appeals to customers by emphasizing the specific benefits they can expect from choosing your business.

Competitive Edge: A strong USP positions your business as the go-to option, even in a crowded marketplace.

Examples of Home Decor Business USPs:

• “Exclusive Artisan Craftsmanship for One-of-a-Kind Interiors.”
• “Eco-Friendly Designs That Transform Spaces Sustainably.”
• “Customizable Décor Tailored to Your Unique Style.”
• “Personalized Home Styling for Effortless Elegance.”
• “Designs Inspired by Global Cultures, Crafted Locally.”

These USPs emphasize qualities like craftsmanship, sustainability, customization, personalization, and cultural inspiration.

Choose a USP that aligns with your business’s strengths and resonates with your target audience to create a lasting impression.

7. Choose a Business Name

Selecting the Perfect Home Decor Business Name

Choosing the right name for your home decor business is a significant decision.

Memorability and Pronunciation: A catchy and easily pronounced name helps customers remember your business.

Long-Term Commitment: Business names tend to stick, so take your time to choose one that resonates with your vision.

Online Presence: Ensure the name aligns with an available domain for your website.

Trademark Check: Verify that another business doesn’t register your desired name to avoid legal issues.

30 Ideas for Home Decor Business Names:

• Decor Harmony Creations
• Elegant Home Accents
• Artisanal Living Designs
• Casa Elegance Décor
• Ambiance Craftsmen
• StyleScape Interiors
• Urban Nest Inspirations
• Homestead Luxe Living
• Radiant Room Revivals
• DreamSpace Design Studio
• Bella Casa Creations
• Opulent Origins Interiors
• Heritage Home Environments
• ChicVista Décor
• Luxe Living Concepts
• DecorVogue Innovations
• Zenith Zest Interiors
• Abode Aesthetic Artistry
• TranquilTide Designs
• RusticLux Décor
• Elite Elegance Studios
• Ambient Aura Artisans
• Celestial Charm Interiors
• DreamHaven Décor
• Envisioned Elegance
• HomeSerenity Studios
• Artistry & Atmosphere
• CasaCrest Living
• UrbanGlow Décor
• Enchanted Environments

Use these suggestions as a starting point to ignite your creativity and craft a unique, memorable name for your home decor business that reflects your brand identity.

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

8. Register Your Company

Legal Compliance for Your Home Decor Business

Ensuring the legality of your home decor business is crucial for smooth operations and building trust with customers.

Here’s how to go about it:

Professional Consultation:

Seek advice from a legal or financial professional to guarantee that your business is set up correctly for tax benefits and liability protection.

Common Registrations for Home Decor Business:

• Business Structure Registration: Register your business as a sole proprietorship, partnership, LLC, or corporation.
• Business Name Registration: Secure your chosen business name.

Permits and Licenses to Consider:

• Business License: Obtain a general business license from your local government.
• Home Occupation Permit: If operating from home, check if you need this permit.
• Sales Tax Permit: Necessary if you plan to collect sales tax from customers.
• Special Use Permits: For specific zoning requirements or unusual circumstances.
• Health Department Permits: Required if you handle any products related to health and safety.

Becoming Bondable:

Consider having bonded employees and demonstrating their trustworthiness through background checks. This can enhance customer confidence in your team’s reliability and integrity.

By following these legal steps and consulting professionals, you’ll ensure your home decor business operates within the boundaries of the law, setting a strong foundation for success.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

9. Create Your Corporate Identity

Crafting a Strong Corporate Identity

A Corporate Identity (Corporate ID) is a visual representation of your business.

It encompasses essential components like your logo, business cards, website, signage, stationery, and promotional materials.

A consistent, professional design across these elements leaves a lasting impression on both new and existing customers.

It establishes brand recognition, trust, and a sense of professionalism, which are crucial for success in the competitive world of home decor.

Your Corporate ID is not just a design; it’s a powerful tool to convey your business’s values and quality to your target audience.

You can see our pages for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

10. Writing a Business Plan

A well-structured business plan is a cornerstone for any home decor business.

Here’s why it’s essential:

1. Guiding Vision:

Your business plan serves as a roadmap during startup and when your business is running at full throttle. It outlines your goals, strategies, and the direction you want to take.

2. Financing and Investment:

When seeking financing or investors, a business plan is your best ally. It clearly shows your business’s potential and profitability, instilling confidence in stakeholders.

3. Time and Effort:

A comprehensive business plan requires time and effort. It’s a detailed vision of your fully operational business, requiring thoughtful planning and articulation.

4. Clarity and Direction:

The effort invested is worthwhile. Completing your business plan equips you with a profound understanding of what you need for a startup and a clear vision of your business’s operation.

5. Varied Approaches:

You have several options when creating your business plan. Active participation is vital, whether starting from scratch, hiring a professional, using a template, or employing business plan software.

You need to effectively communicate your business’s nature and management approach.

6. Adaptability:

Keep in mind that your business plan isn’t set in stone. It’s subject to change and optimization as you gain experience and market dynamics evolve.

Periodically reviewing and adjusting your plan is wise to ensure it aligns with your business’s reality and goals.

In the world of home decor, where creativity meets commerce, a robust business plan can be the difference between success and uncertainty.

It’s your tool to navigate the intricacies of the market and steer your business toward growth and profitability.

Business Plan Template for a Home Decor Business

Business Plan Template for Home Decor Business

1. Executive Summary

• Provide a concise overview of your home decor business.
• Include the mission statement, vision, and a brief description of your business concept.
• Highlight key achievements, financial projections, and your unique selling proposition (USP).

2. Business Description

• Elaborate on your business concept, including your niche within the home decor industry.
• Explain your business’s goals, values, and long-term vision.
• Detail the problem you aim to solve or the need you intend to fulfill in the market.

3. Market Research

• Present thorough market research, including target demographics, market size, and growth trends.
• Analyze your competitors, identifying strengths, weaknesses, opportunities, and threats ( SWOT analysis).
• Showcase your understanding of customer preferences and industry insights.

4. Products and Services

• Describe your home decor products and services in detail.
• Highlight what sets your business apart from competitors.
• Explain how your products meet customer needs and trends in home decor.

5. Sales and Marketing Strategy

• Outline your sales and marketing plan.
• Define your target audience and customer personas.
• Specify your pricing strategy, distribution channels, and promotional tactics.
• Detail your sales forecasts and customer acquisition plans.

6. Operations and Management

• Describe your business’s operational structure.
• Provide bios of key team members, emphasizing their qualifications and roles.
• Explain your supply chain management, production processes, and quality control.
• Discuss any partnerships or strategic alliances.

7. Financial Projections

• Present detailed financial forecasts, including income statements, cash flow statements, and balance sheets.
• Include a breakdown of startup costs, operating expenses, and revenue projections.
• Outline your funding requirements and potential sources of financing.

8. Funding Request

• If seeking external funding, specify the amount needed and how it will be utilized.
• Explain the terms you are seeking and the potential return on investment for investors or lenders.

9. Milestones and Metrics

• Set measurable milestones for your business’s growth and success.
• Define key performance indicators (KPIs) to track progress.
• Provide a timeline for achieving major milestones.

10. Risk Assessment

• Identify potential risks and challenges your business may face.
• Develop contingency plans and risk mitigation strategies.
• Show how you will adapt to changing market conditions and competition.

11. Appendix

• Include any supplementary information, such as market research data, resumes of key team members, legal documents, and other relevant materials.
• Attach any visuals or diagrams that support your business plan.

Remember that your business plan should be a dynamic document that evolves as your home decor business grows and changes.

Regularly update and revise it to reflect your business’s actual performance and goals..

See How to Write a Business Plan for information on creating your business plan.

11. Banking Considerations

Opt for a local bank with a small business focus to establish a separate business account.

This separation simplifies expense tracking and tax filing. Building rapport with your banker offers financial guidance and streamlined processes.

Additionally, having a merchant account or online payment service enhances customer convenience and boosts sales by accepting credit and debit card payments.

For more, see How to Open a Business Bank Account. You may also want to look at What Is a Merchant Account and How to Get One.

12. Getting the Funds for Your Operation

Securing Financing for Your Home Decor Business:

If you require a loan to kickstart your home decor business, consider the following tips:

• Explore various funding options like traditional lenders, private loans, investors, or selling personal assets.
• Investigate potential government grants tailored to support new home decor businesses.

Meeting with a Loan Officer:

When meeting with a loan officer, keep these considerations in mind:

• Clearly articulate your business plan and its potential for success.
• Be prepared to discuss your credit history and personal financial situation.
• Understand the specific loan terms, interest rates, and repayment schedules.
• Ask about any collateral requirements or guarantees for the loan.
• Evaluate the impact of the loan on your business’s cash flow.

Sample List of Documents for a Business Loan Application:

• Detailed business plan outlining your home decor business’s goals, strategies, and financial projections.
• Personal financial statements, including income, assets, and liabilities.
• Credit history report and credit score.
• Business financial statements (if already in operation).
• Legal documents, such as licenses, permits, and registrations.
• Collateral documentation (if applicable).
• Tax returns for both personal and business finances.
• Bank statements for personal and business accounts.
• Resume showcasing relevant industry experience.
• Business contracts or agreements (if any).
• Any additional documents requested by the lender.

For more, see the following:

• Getting a Small Business Loan
• SBA Small Business Grants
• Search: Home Decor Business Start-up Loans
• Search: Grants For a Home Decor Business

13. Software Setup

Choosing the Right Software for Your Home Decor Business:

• Consider Long-Term Usability : Research software options thoroughly before committing, as it’s more challenging to switch systems once your data is established elsewhere.
• Opt for Established Providers : Choose software from reputable companies with a history of providing ongoing support and updates.
• Take Advantage of Demos : Look for software solutions that offer free trials or demos, allowing you to test their functionality before making a purchase.
• Read Reviews and Join Forums : Explore software reviews and participate in industry forums to gather insights from others who have used similar tools.
• Accounting Software Matters : Don’t forget to research accounting software for expense tracking and tax preparation and consult with professionals for guidance.

Types of Software for Home Decor Business Management:

• Inventory Management Software : To track and manage your product inventory efficiently.
• Customer Relationship Management (CRM) Software : For maintaining customer data and managing relationships.
• Accounting and Financial Software : To handle expenses, bookkeeping, and financial reporting.
• Design and Rendering Software : If offering custom design services, software for creating visual representations of decor ideas.
• Project Management Software : To keep track of projects, timelines, and collaborations.
• E-commerce and Website Building Platforms : If selling products online, platforms for setting up an e-commerce website.
• Social Media Management Tools : For effective social media marketing and engagement.
• Communication and Collaboration Tools : To facilitate team communication and client interactions.
• Scheduling and Appointment Software : If offering consultations or home decor services by appointment.
• Analytics and Reporting Software : For monitoring business performance and making data-driven decisions.

Check out Google’s latest search results for software packages for a home decor business.

14. Get The Right Business Insurance

Protecting Your Home Decor Business with Insurance:

• Comprehensive Coverage : Obtain appropriate business insurance to safeguard your home decor business. This coverage should protect customers, employees, yourself, anyone on your premises, and your property.
• Professional Liability Insurance : Consider professional liability insurance to shield yourself from potential lawsuits or claims related to errors or negligence in your services or advice.
• Business Interruption Insurance : This type of insurance can be a vital lifeline in case of incidents that force an involuntary shutdown of your business. It helps cover ongoing expenses during such disruptions.
• Home-Based Business Considerations : If you’re running your business from home, inform your home insurance agent. Operating a business from your residence may affect your existing home insurance policy, so addressing this with your agent is crucial.
• Insurance Broker Guidance : Seek assistance from a qualified insurance broker who can provide expert guidance. They can help you assess your unique needs and ensure you have adequate coverage to protect your home decor business from unforeseen events.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for home decor business insurance .

15. Suppliers and Service Providers

Building Strong Supplier and Service Provider Relationships:

• Supplier Partnerships : Cultivate strong relationships with suppliers to enhance your home decor business. Reliable suppliers are essential for your success, providing the necessary materials and products.
• Competitive Pricing : Trustworthy suppliers often offer competitive prices, allowing you to offer cost-effective solutions to your customers and improve your profit margins.
• Inventory Reliability : Reliable suppliers ensure a consistent supply of essential materials, preventing disruptions in your operations.
• Mutual Benefits : Foster a mutually beneficial relationship by respectfully treating your suppliers and service providers. Consider their financial well-being to create a positive and cooperative working partnership.

Items and Services You May Need from Suppliers and Service Providers:

• Home Decor Materials : Suppliers for various home decor materials like fabrics, furniture, lighting fixtures, and decorative items.
• Furniture Manufacturers : Reliable furniture manufacturers for custom-made or unique pieces.
• Shipping and Delivery Services : Partnerships with shipping and delivery services to ensure timely and secure transportation of your products.
• Artisan and Craftsmen Services : Collaborate with skilled artisans and craftsmen for custom designs and unique decor pieces.
• Wholesalers : Access to wholesalers for bulk purchasing of decor items at discounted rates.
• Interior Design Software : Subscription to interior design software or tools for creating designs and layouts.
• Marketing and Advertising Services : Service providers for marketing, advertising, and digital promotion to increase your business’s visibility.
• Accounting and Financial Services : Professionals to manage your accounting, bookkeeping, and financial planning.
• Legal Consultation : Legal advisors to ensure your business complies with all regulations and contracts.
• Maintenance and Repair Services : Reliable maintenance and repair services for any fixtures or installations you offer as part of your decor services.
• Shipping and Packaging Materials : Suppliers for packaging materials to ensure safe delivery of products to customers.
• Quality Control and Inspection Services : Partners for quality control and inspection to maintain the highest product standards.

Building a network of dependable suppliers and service providers is essential for the smooth operation and growth of your home decor business.

For More, See How To Choose a Supplier.

16. Setting Prices

Setting the Right Pricing Strategy:

When establishing your home decor business, thorough pricing research is essential. Pricing impacts your sales, profit margins, and overall success.

Here are the key benefits of conducting pricing research:

Balancing Act :

Striking the right balance in your pricing strategy is crucial. If your prices are too high, you risk losing potential customers, while overly low prices may lead to insufficient profit to cover expenses.

Competitive Edge :

Researching pricing helps you align with your market and stand out among competitors. It allows you to offer competitive rates while highlighting the unique value your business provides.

Profit Maximization :

Carefully set prices to maximize your profitability. It ensures that your business generates sufficient income to cover costs, invest in growth, and yield a satisfying return on investment.

Customer Perception :

Well-researched pricing can influence how customers perceive your brand. Fair pricing communicates value, reliability, and trustworthiness.

Flexibility :

Regular pricing assessments keep your business adaptable to market changes, allowing you to make necessary adjustments and maintain competitiveness.

Sustainability :

Sustainable pricing ensures the long-term viability of your business. It helps you avoid pricing wars, achieve consistent revenue, and build a loyal customer base.

By researching and fine-tuning your pricing strategy, you can position your home decor business for sustainable growth and profitability while meeting customer expectations.

See the following for more:

• Setting the Price of Your Products and Services
• Search Results for Pricing Strategies for a Home Decor Business.

17. Physical Setup

Optimizing Your Home Decor Business Layout:

Efficient and well-thought-out layout and setup are fundamental to the success of your home decor business.

Here’s a breakdown of key aspects:

Layout Overview:

Begin with a concise overview of your business’s layout. Describe the floor plan, customer areas, and any specific sections like product displays or design consultation spaces.

Signage Strategy:

Signage plays a crucial role in guiding customers and conveying professionalism. Discuss how you’ll set up your main business sign for maximum visibility.

Additionally, address the placement of signs in areas like parking lots, exits, and special zones within your store.

Professional Office Setup:

Managing a home decor business requires efficient administrative work.

Your office should be a well-organized space equipped with essential tools and resources.

Consider factors like ergonomic furniture , storage solutions, and a reliable computer system. An organized office fosters productivity, streamlines operations, and helps you stay on top of administrative tasks.

Efficiency and Customer Experience:

A well-structured layout enhances operational efficiency and creates a positive customer experience.

Highlight how your layout and signage will contribute to a smooth flow of customers, easy navigation, and an appealing ambiance in your home decor business.

By meticulously planning your layout, signage, and office setup, you’ll create a business environment that’s not only functional but also leaves a lasting impression on customers, setting the stage for success.

See Here are Considerations for The Setup of Your Office for tips and ideas to make your office work for you.

Also, have a look at our article About Company Signs.

18. Creating a Website

Creating an Online Presence: Setting Up Your Home Decor Business Website

Establishing a strong online presence through a well-designed website is essential for reaching a broader audience and boosting your home decor business.

Here are key steps to consider:

Domain Selection : Choose a domain name that reflects your business and is easy to remember. Ensure it’s related to home decor and available for registration.

Website Design : Opt for a clean, user-friendly design that showcases your home decor products effectively. Use high-quality images and provide detailed descriptions.

E-Commerce Integration : If you plan to sell products online, integrate an e-commerce platform for secure and convenient transactions.

Mobile Optimization : Ensure your website is mobile-responsive to cater to customers browsing on smartphones and tablets.

SEO : Implement SEO best practices to improve your website’s visibility on search engines like Google. Use relevant keywords and optimize your content.

Contact Information : Display clear contact details, including your physical address, email, and phone number, to build trust with potential customers.

Content Strategy : Develop engaging and informative content related to home decor, such as blog posts, tips, and guides. This content can attract and retain visitors.

Social Media Links : Link your website to your social media profiles for broader exposure and easy sharing of your content.

Testimonials and Reviews : Showcase customer testimonials and product reviews to build credibility.

Contact Form : Include a contact form for inquiries and customer feedback.

By following these steps, you can create a compelling online platform for your home decor business, attracting customers and driving growth.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

Building Your External Support Team

To ensure your home decor business runs smoothly, having a dependable external support team of professionals is vital.

These experts provide guidance and services without being on your payroll.

Here’s how to assemble and utilize such a team:

Diverse Expertise :

Include professionals with various specialties, such as an accountant, lawyers, financial advisors, marketing specialists, and technical advisors. Each brings unique insights to your business.

Project-Based or Retainer :

Engage their services based on your needs—whether it’s for specific projects, hourly consultations, or on a retainer basis.

Professional Relationships :

Building strong relationships with these experts takes time, so don’t rush. Cultivate trust and rapport over time.

On-Demand Assistance :

When challenges arise or you require their expertise, your external team will be readily available to provide solutions and guidance.

Continuous Development :

Keep expanding your support network as your business grows and evolves. This ensures you have access to a wide range of expertise.

By nurturing these professional relationships and leveraging their insights, you’ll have a valuable external support team that contributes to your home decor business’s success.

For more, see Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Managing Your Home Decor Business

Starting Solo :

Running your home decor business alone in the early stages can help control costs. Payroll expenses are significant, especially at the outset.

Growing Pains :

As your business expands, you may find it challenging to handle all management and operational tasks on your own. Hiring employees becomes a necessity.

Smart Hiring :

When hiring, prioritize individuals with the right qualifications and strong work ethics .

Ensuring each new hire fits their role correctly is crucial for business success.

Key Positions for Your Home Decor Business :

• Interior Designer : To create appealing and functional designs.
• Sales Representative : To handle client interactions and sales.
• Customer Service Representative : For addressing inquiries and concerns.
• Procurement Specialist : To manage product sourcing and inventory.
• Marketing Specialist : To promote your business and attract customers.
• Accountant/Bookkeeper : For financial management and record-keeping.
• Administrative Assistant : To handle administrative tasks and support daily operations.
• Delivery and Installation Team : For safe and efficient product delivery and setup.
• Web Developer/Designer : To maintain and enhance your online presence.
• Photographer : To capture high-quality images of your work for marketing purposes.

As your home decor business grows, these roles or outsourced services will become invaluable to its success.

For more, see How and When to Hire a New Employee.

21. Getting Customers Through the Door

When you have reached this step, your business is set up and ready to go, with one more final step, which is important: getting customers through the door.

There are numerous ways to do this, like advertising, having a grand opening , word of mouth, etc.

Let’s dig a little deeper into the following sections.

a.) Marketing Considerations

Attracting the Right Customers for Your Home Decor Business

A home decor business is only truly successful when it has a customer base. Attracting the right customers is key, especially in the early stages when your business is new and relatively unknown.

Building a strong reputation takes time and consistent effort, but it pays off in the long run.

Marketing is an ongoing process that, when done effectively, leads to increased revenue.

While you don’t always need a marketing agency or expert, there are simple methods to get the word out about your home decor business:

• Social Media : Utilize platforms like Instagram, Pinterest , and Facebook to showcase your work and engage with potential customers.
• Local Networking : Attend local events and join business associations to connect with potential clients and partners.
• Online Listings : Create profiles on business directories like Yelp and Google My Business to improve your online visibility.
• Word of Mouth : Encourage satisfied customers to spread the word and leave positive reviews.
• Content Marketing : Start a blog or create valuable content related to home decor to establish authority and attract organic traffic.
• Email Marketing : Build an email list and send regular updates and promotions to your subscribers.
• Collaborations : Partner with other businesses or influencers in related fields for cross-promotion.

By consistently implementing these simple methods, you can effectively bring awareness to your home decor business and steadily grow your customer base.

See How To Get Customers Through the Door and our marketing section to provide ideas to help you bring awareness to your business.

b.) The Market Can Guide You:

Listening to Customer Demand in Your Home Decor Business

Drawing from years of business experience, I offer valuable advice: pay close attention to your customers’ needs and desires.

While you may have a specific product or service in mind for your home decor business, it’s essential to remain open to market demands and variations.

Resisting change and sticking to your original plan is natural, but ignoring clear signs of market demand can be detrimental.

If you consistently notice a demand for something different from what you initially envisioned, it’s worth taking a step back and considering the opportunity you might be missing.

Ultimately, the direction you take your business is your choice.

However, being attuned to your customer’s preferences and adapting accordingly can be the key to building a thriving home decor business.

c.) Sample Ad Ideas:

• “Elevate Your Home with Our Stunning Decor!” Transform your living space into a haven of style and comfort. Explore our exquisite range of home decor to find the perfect pieces for your unique taste.
• “Discover Affordable Elegance for Your Home!” Uncover the beauty of budget-friendly decor options that won’t break the bank. Shop with us and elevate your home without compromising on quality.
• “Upgrade Your Home Decor with Exclusive Deals!” Get exclusive access to limited-time discounts and promotions. Revamp your space with our handpicked selection of elegant home decor items.
• “Experience Luxury Living, Every Day!” Indulge in opulence with our premium home decor collection. Elevate your living experience and surround yourself with luxury.
• “Customize Your Space with Personalized Decor!” Make your home uniquely yours with our personalized decor options. Create a space that reflects your individual style and personality.
• “Your Dream Home Starts Here!” Turn your vision of a dream home into reality. Explore our extensive home decor range to find the perfect pieces that match your aspirations.
• “Transform Your Space with Timeless Elegance!” Add a touch of timeless elegance to your home with our classic decor items. Shop now to create a space that never goes out of style.
• “Shop Sustainably for Stylish Home Decor!” Embrace eco-friendly decor choices that combine style and sustainability. Discover a range of environmentally conscious decor items for your home.
• “Unleash Your Creativity with DIY Home Decor!” Get inspired to craft your own unique decor pieces. Explore our DIY decor supplies and bring your creative ideas to life.
• “Upgrade Your Home Office with Functional Decor!” Elevate your home office space with decor that enhances productivity and style. Discover the perfect pieces to create a workspace you’ll love.

These display ads are designed to attract customers to a home decor business by highlighting various aspects of the products and services offered, from affordability and luxury to customization and sustainability.

d.) B2B Ideas

Building strategic partnerships with complementary businesses can be a mutually beneficial way to expand your home decor business’s reach and customer base.

Here are some businesses you could approach for potential partnerships:

• Real Estate Agents : Real estate agents often work with clients who are moving into new homes or looking to stage their properties for sale. Partnering with local real estate agents can lead to referrals for your home decor services.
• Furniture Stores : Collaborating with furniture stores allows you to cross-promote each other’s products and services. You can offer special discounts to each other’s customers, making it a win-win situation.
• Interior Designers : Interior designers frequently require home decor items to complete their projects. Establishing a referral arrangement with local designers can be a great source of business.
• Home Renovation Contractors : Contractors working on home remodeling or renovation projects often need decorative elements. Partnering with them can lead to referrals when their clients seek decor solutions.
• Art Galleries : Art galleries and home decor go hand in hand. You can collaborate on events, promotions, or even feature local artists’ works in your decor displays.
• Home Inspection Services : Home inspectors often provide clients with recommendations for home improvements or decor updates. They can refer clients to your business for these services.
• Event Planners : Event planners may require decor for weddings, parties, or corporate events. Establishing a partnership can lead to referrals for event decor.
• Mortgage Lenders : Mortgage lenders can refer homeowners who have just purchased a new property or refinanced their homes to enhance their interiors.
• Local Builders : Collaborating with local builders can lead to decor opportunities in newly constructed homes or home developments.
• Home Cleaning Services : Home cleaning companies can recommend your services to clients who want to refresh their living spaces after a deep clean.

When approaching these businesses for partnerships, consider offering referral fees, reciprocal referrals, joint marketing efforts, or exclusive promotions for their clients.

The key is to create a partnership that provides value to both parties and, most importantly, benefits the customers by offering comprehensive solutions for their home decor needs.

Points To Consider

Next, let’s review essential points for more tips, insights, and considerations before starting your home decor business.

We will cover sections, including skills to consider, points to focus on, and equipment.

Then you’ll reach the “Knowledge Is Power,” section, where you will want to use the resources for valuable information.

Hours of Operation:

Operating hours for a home decor business can vary, but here are some general considerations:

• Weekdays: 9:00 AM – 6:00 PM
• Saturdays: 10:00 AM – 4:00 PM
• Closed on Sundays

These hours provide a balance between serving customers during peak times and allowing for essential tasks outside regular hours. Adjustments may be needed based on customer demand and business needs

Equipment and Supplies

A List of Equipment and Supplies to Consider for a Home Decor Business:

• Computer:  For design software, communication, and administrative tasks.
• Printer/Scanner/Copier:  To print invoices, scan images, and make copies.
• Design Software:  Programs like Adobe Creative Suite or SketchUp for creating designs.
• Digital Camera:  High-quality images of your products and projects.
• Measuring Tools:  Tape measures, rulers, and laser distance meters.
• Furniture and Decor Samples:  A selection of furniture and decor items to showcase to clients.
• Paint and Fabric Swatches: For client selection, various paint colors and fabric samples.
• Storage Solutions:  Shelves, cabinets, or storage bins for organizing decor items.
• Work Tables:  For assembling and arranging decor elements.
• Sewing Machine:  If offering custom upholstery or drapery services.
• Carpentry Tools:  Basic woodworking tools for DIY projects.
• Delivery Vehicle:  If providing furniture delivery services.
• Safety Equipment:  Gloves, safety glasses, and masks for handling materials.
• Phone System:  For client calls and inquiries.
• Office Furniture:  Desks, chairs, and filing cabinets for your workspace.
• Lighting:  Adequate lighting for workspace and product displays.
• Point-of-Sale System:  Cash register or POS software for transactions.
• Display Fixtures:  Shelving, racks, or mannequins for retail displays.
• Cleaning Supplies:  To maintain a clean and organized workspace.
• Packaging Materials:  Boxes, bubble wrap, and packing tape for shipping.

Remember that the specific equipment you need may vary based on the services you offer and the scale of your business.

Always consider your business plan and budget when acquiring equipment.

Prices for these items can vary widely, so it’s advisable to research and budget accordingly.

Focusing on your skill set when running a home decor business is crucial, as your expertise directly impacts the quality of your services.

Evaluating your skills helps identify gaps that can be filled through learning or hiring, ensuring a well-rounded operation.

Essential Skills for a Home Decor Business Owner:

• Design Expertise:  Proficiency in interior and exterior design principles.
• Creativity:  The ability to innovate and create unique decor concepts.
• Customer Service:  Building relationships and understanding client needs.
• Budgeting:  Managing finances effectively for projects and operations.
• Project Management:  Organizing and overseeing decor projects efficiently.
• Marketing:  Promoting your business and attracting clients.
• Communication:  Effective communication with clients, suppliers, and team members.
• Sourcing:  Identifying and procuring decor items from various suppliers.
• Technical Skills:  Familiarity with design software and tools.
• Time Management:  Juggling multiple projects and deadlines.
• Negotiation:  Securing the best deals with suppliers and contractors.
• Networking:  Building a network of industry contacts and collaborators.
• Attention to Detail:  Ensuring precision and quality in decor installations.
• Problem-Solving:  Resolving challenges that arise during projects.
• Trend Awareness:  Staying updated on decor trends and styles.

A well-rounded skill set empowers home decor business owners to deliver exceptional results, satisfy clients, and adapt to industry changes effectively.

The Future of Your Home Decor Business:

Considering the future of your home decor business is essential. Even though the future may look different from today, having a vision of what it could become is valuable.

With a clear vision, you can make informed decisions to steer your business in the right direction, keeping it on the path toward your desired goals.

Find a Home Decor Business For Sale

The purchase of an existing home decor business offers advantages and drawbacks, which are essential to evaluate before starting.

Advantages:

• Immediate Revenue: Taking over an established business means you can start generating income from day one.
• Bypass Startup Phase: You skip the often challenging and uncertain startup phase.
• Proven Success: An existing business has a track record, reducing the risk of uncertainty.
• Financial Clarity: You gain insights into the business’s financials, including revenue, expenses, and profit.
• Customer Base: You inherit an existing customer base, saving time and effort in acquiring new clients.
• Reputation: The business has already built a reputation, which can be advantageous in marketing and attracting customers.

Disadvantages:

• Higher Cost: Purchasing an established business typically comes with a higher price tag, including goodwill for the existing customer base.
• Change Challenges: Altering the business’s established operations can risk losing existing customers.
• Reputation Inheritance: You inherit both the positive and negative aspects of the business’s reputation.

While an exact match for a home decor business for sale may not be available, exploring similar industry opportunities can be a valuable step in your business research.

The latest search results for a home decor business for sale and others in the same category.

Franchise Opportunities Related to a Home Decor Business

Owning a home decor franchise comes with advantages and disadvantages worth considering when starting your business.

• Proven Business Model: Franchises offer a structured plan provided by the corporate office, reducing the guesswork in business operations.
• Reputation and Marketing: You leverage the franchise’s established reputation and marketing efforts, which can jumpstart your business.
• Comprehensive Training: Franchisors provide thorough training, ensuring you understand all aspects of the business.
• Corporate Support: You have access to ongoing support and guidance from the corporate office.
• High Costs: Franchise ownership can be costly, including initial fees, royalties, and ongoing expenses.
• Limited Autonomy: Making substantial changes to the business often requires corporate approval.
• Product and Service Restrictions: Franchises often restrict the use of unapproved products or services.
• Operational Limitations: You must adhere to the franchise agreement’s operational guidelines.
• Franchise Fees: Ongoing franchise fees can impact profitability.

While there might not be an exact home decor business franchise, exploring related franchises within the same industry can uncover unexpected opportunities.

See the latest search results for franchise opportunities related to this industry.

Knowledge Is Power if You Use It!

Utilize knowledge to your advantage. Access abundant industry information in the following sections, which is valuable for startup and ongoing operations.

Trends and Statistics

Examining industry trends and statistics offers valuable insights for a home decor business, aiding in informed decision-making, staying competitive, and adapting to evolving consumer preferences.

See the latest search results for trends and statistics related to the home decor industry.

Home Decor Associations

Trade associations provide benefits such as industry news updates and networking opportunities, aiding professionals in staying well-informed and connected within the field.

See the search results related to home decor associations and the benefits of Joining the Chamber of Commerce.

The Top Home Decor Businesses

Analyzing successful home decor businesses can inspire ideas, uncover industry gaps for competitive advantages, and reveal overlooked opportunities for improvement.

See the latest search results for the top home decor businesses.

The Future of the Home Decor Industry

Researching the industry’s future is vital for aspiring home decor entrepreneurs, offering a strategic edge and insights into emerging trends and opportunities.

See the search results for the future of the home decor industry.

Customer Expectations

Reviewing search results on customer expectations in home decor services offers valuable insights to align your business with customer desires and uncover potential issues for comprehensive coverage.

See the search results related to customer expectations for home decor services.

Expert Tips

Exploring expert tips enhances skills, offering fresh approaches for experts and valuable knowledge for novices in the field of home decor.

See the latest search results for home decor to gain tips and insights.

Home Decor Business Insights

Examining tips and insights can spark innovative ideas, help identify pitfalls in managing your home decor business, and significantly expand your industry knowledge.

See the latest search results about insights into running a home decor business.

Home Decor Publications

Publications serve as a valuable source of tips and insights on home decor, offering a wealth of knowledge in this field.

See the search results for home decor publications.

Home Decor Forums

Engaging in home decor forums fosters industry connections and insights. These platforms provide a window into customer perspectives, enhancing your understanding of their needs.

See the latest search results related to home decor forums.

Enrolling in online or local educational courses is an excellent method to enhance your skills and knowledge, ultimately benefiting your home decor business.

See the latest courses that could benefit a home decor business owner . Also, see our management articles for tips and insights for managing your business.

Home Decor Blogs

Subscribing to leading home decor blogs provides fresh ideas and industry updates. Subscribe to those delivering value; create a valuable resource for ongoing insights.

Look at the latest search results for top home decor blogs to follow.

Service-Based Business Tips

Examining advice and insights for success in the service sector can aid in effectively running and enhancing your home decor business for long-term sustainability.

Look at the latest search results for service tips and insights to follow.

Home Decor News

Staying informed with news reports about home decor from the media is crucial to remain updated on relevant developments in this field.

See the latest results for home decor news.

Watching YouTube videos on home decor provides additional insights to enhance your knowledge in this area.

YouTube videos related to home decor.

Privacy Overview

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If you’ve been struggling online this report will open your eyes.

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Home Decor Business Plan Template

Written by Dave Lavinsky

Home Decor Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their home decor companies. 

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a home decor business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Home Decor Business Plan?

A business plan provides a snapshot of your home decor business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Home Decor Business

If you’re looking to start a home decor business or grow your existing home decor company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your home decor business to improve your chances of success. Your home decor business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Home Decor Businesses

With regards to funding, the main sources of funding for a home decor business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for home decor companies.

Finish Your Business Plan Today!

How to write a business plan for a home decor business.

If you want to start a home decor business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your home decor business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of home decor business you are running and the status. For example, are you a startup, do you have a home decor business that you would like to grow, or are you operating a chain of home decor businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the home decor industry. 
• Discuss the type of home decor business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of home decor business you are operating.

For example, you m ight specialize in one of the following types of home decor businesses:

• Complete home decor service : Full-service home decor design and placement. This type of company utilizes designers who visit in-home clients for consultations and recommendations through the home decor replacement process.
• Restore or replace decor service: Clients request partial home decor service for one room or one area of the home, often with restoration goals for furnishings. Designers visit in-home to fulfill these requests.
• Online home decor service: This service includes online consultations and recommendations for customers via video or by photos submitted. Designers make recommendations for online or in-store purchases.  
• Home decor accessory service: Customers may choose to change interior accessories to suit special occasions or seasons. Designers may offer in-home visits and recommendations with follow-up visits.

In addition to explaining the type of home decor business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of home decor clients served, or reaching X$ revenue generated through sales. 
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the home decor industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the home decor industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your home decor business plan:

• How big is the home decor industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your home decor business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your home decor business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals or families.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of home decor business you operate. Clearly, homeowners in high-end homes would respond to different marketing promotions than homeowners in starter homes, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r home decor businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes furniture-restoring companies, department stores, furniture stores, paint or wallpaper outlets, upholstery stores, etc. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of home decor business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide cost-saving decor ideas for individuals in starter homes?
• Will you offer digital room-mapping services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a home decor business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f home decor company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide brand name accessories at reduced prices, reupholstered furnishings, upscale room designs, or rewards for frequent customers?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your home decor company. Document where your company is situated and mention how the site will impact your success. For example, is your home decor business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your home decor marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and upscale magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your home decor business, including setting appointments, planning and providing home decor assistance, invoicing clients and paying bills, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client session, or when you hope to reach $X in revenue. It could also be when you expect to expand your home decor business to create a franchise.

Management Team

To demonstrate your home decor business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing home decor businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a home decor business or successfully running a home furnishings department in a retail store.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 new clients per day, and/or offer home decor parties within certain neighborhoods ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your home decor business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a home decor business:

• Cost of decor and furnishing samples, photography, videography and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of contracted clients you serve.

Writing a business plan for your home decor business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the home decor industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful home decor business.

Home Decor Business Plan FAQs

What is the easiest way to complete my home decor business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your home decor business plan.

How Do You Start a Home Decor Business?

Starting a home decor business is easy with these 14 steps:

• Choose the Name for Your Home Decor Business
• Create Your Home Decor Business Plan
• Choose the Legal Structure for Your Home Decor Business
• Secure Startup Funding for Your Home Decor Business (If Needed)
• Secure a Location for Your Business
• Register Your Home Decor Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Home Decor Business
• Buy or Lease the Right Home Decor Business Equipment
• Develop Your Home Decor Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Home Decor Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Home Decor business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how a Growthink business planning consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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Home Decor Business

Back to All Business Ideas

How to Start a Home Decor Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 4, 2022 Updated on May 8, 2024

Investment range

$2,550 - $39,100

Revenue potential

$250,000 - $1.25 million p.a.

Time to build

1 – 3 months

Profit potential

$75,000 - $250,000 p.a.

Industry trend

Everybody wants their home to look great. Especially these days, it’s where we spend the most time, so it’s important that our home feels warm and welcoming and comfortable. This explains why home décor is a nearly $190 billion market in the United States. If you have a good eye for style and design, you could start your own home decor business, make people feel better about their living space and grab a chunk of that massive market. You could start by selling online, then later open your own store. 

Starting a home décor business, however, takes more than an eye for design. You have to learn some business savvy and understand the ins-and-outs of being an entrepreneur. Fortunately, you’ll find everything you need to know to prepare you for your new career in home décor in this step-by-step guide.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a home décor business has pros and cons to consider before deciding if it’s right for you.

• Get Creative – Use your eye to choose items to sell
• Flexibility – Specialize, make items, sell online, or open a store
• Good Money – Excellent markups on home décor items
• No Need for Inventory – Use a supplier that will drop-ship
• Tastes Change – Need to keep up with trends
• Competitive Market – Market is saturated with home décor options

Home decor industry trends

The US home decor industry has steadily grown since 2010 and continued to perform strongly even when the Covid-19 pandemic struck in 2020. 

Industry size and growth

• Industry size and past growth – The US home decor industry was valued at $175 billion in 2020, after growing an average of 3% per year over the past decade.(( https://www.statista.com/statistics/1015171/home-furnishings-market-value-us/ )) 
• Growth forecast – The industry is predicted to expand more than 3% per year through 2024.
• Number of businesses – There are nearly 15,000 home furnishings stores in the US.(( https://www.ibisworld.com/united-states/market-research-reports/home-furnishings-stores-industry/ )) 
• Number of people employed – US home furnishings stores employed almost 190,000 people.

Trends and challenges

Trends in the home décor industry include:

• Bold colors and patterns are trending, as well as traditional designs and décor themes that include elements of nature.
• Home décor product sustainability is in demand, and consumers want transparency about materials used, and manufacturing processes and location.

Challenges also exist in the home décor industry, which include:

• Because of the huge number of online home decor sellers, home decor businesses are finding it necessary to partner with retailers and interior designers to increase revenue.
• Supply chain issues are delaying the delivery of some items due to delays in materials.

What kind of people work in home decorating?

• Gender – 78% of home decorators are female, while 22% are male.(( https://www.zippia.com/home-decorator-jobs/#cmp-demographics-section ))
• Average level of education – 43% of home decorators hold a bachelor’s degree and 30% have an associate degree.(( https://www.zippia.com/home-decorator-jobs/education/ ))
• Average age – The average age of a home decorator is 40 years old.(( https://www.zippia.com/home-decorator-jobs/demographics/#age-statistics ))

How much does it cost to start a home decor business?

To start an online store for which you have items drop-shipped from a supplier or manufacturer, it will cost about $2,500. That includes the cost of your first order as well as a website. Drop-shipping means that you order products from suppliers only after customers place the order, and then the supplier ships the items directly to your customers. You could sell your items through an Etsy or Shopify store rather than your own website if you choose. 

To start a home décor store it will run you up to $40,000. The costs include space rental, the preparation of the space, and your initial inventory. 

How much can you earn from a home decor business?

Prices will vary by item, but these calculations will assume an average item price of $50. You can mark up your items 20%-40% depending on the item, for an average of 30%. If you have an online store, after expenses, your profit margin should be about 20%. 

In your first year or two, you could work from home and sell 5,000 items in a year, bringing in a healthy $250,000 in annual revenue. This would mean a tidy profit of $75,000, assuming that 30% margin. As your brand gains recognition and you get repeat customers, sales could climb to 25,000 items a year. At this stage, you’ll have to rent a storefront and hire staff, reducing your profit margin to 20%. With expected annual revenue of $1.25 million, you would make an impressive $250,000 in profit.

What barriers to entry are there?

There are a few barriers to entry for a home décor business. Your biggest challenges will be:

• Startup costs if you choose to open a store
• Massive competition in a saturated market

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How to Start a Home Staging Business

How to Start an Interior Design Business

How to Start a Party Decorating Business

Step 2: hone your idea.

Now that you know what’s involved in starting a home décor business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research home décor businesses in your area and online to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local or online market is missing a home décor business that specializes in 3D art.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as lamps.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You’ll need to determine if you want to specialize in certain types of products, or if you want to offer a variety of home décor products . You should choose the specific items based on what is trending in the market, but you can also use your own eye for design.

How much should you charge for home décor products?

Prices will vary based on the items. You’ll need to research what comparable items are selling for to keep your prices competitive. You should aim for a profit margin of about 20%.

Once you know your costs, you can use our profit margin calculator to determine your mark-up and final price point. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be extremely broad, so you should spread out your marketing efforts. You can find customers on TikTok, Instagram, Facebook, and LinkedIn. You could also partner with interior designers to get referrals to their clients. 

Where? Choose your business premises

You can run your business from home if you sell online and use drop shipping. If you open a store, you’ll need to rent a commercial space, preferably in an area that has other shopping options and a lot of foot traffic. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Home Decor Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “décor” or “home decor”, boosts SEO
• Name should allow for expansion, for ex: “The Decor Hub” over “Industrial Interiors”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Home Decor Business Plan

Here are the key components of a business plan:

• Executive Summary: A concise overview of your home decor business, highlighting key aspects and objectives.
• Business Overview: A detailed description of your home decor business, including its mission, vision, and values.
• Product and Services: A clear outline of the home decor products and services you offer, emphasizing their unique features and benefits.
• Market Analysis: An examination of the home decor market, identifying target demographics, trends, and potential opportunities for growth.
• Competitive Analysis: An assessment of competitors in the home decor industry, highlighting strengths, weaknesses, and strategies to differentiate your business.
• Sales and Marketing: A plan outlining how you will promote and sell your home decor products, including advertising, promotions, and sales channels.
• Management Team: Introduction to key individuals in your home decor business, emphasizing their skills and experience.
• Operations Plan: Details on how your home decor business will operate, including suppliers, production processes, and distribution channels.
• Financial Plan: A comprehensive overview of the financial aspects of your home decor business, including projections, budgets, and funding requirements.
• Appendix: Supplementary materials such as additional data, charts, or supporting documents to provide further context for your home decor business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to home décor businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your home décor business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a home decor business. You might also try crowdfunding if you’re making unique home décor items to sell. 

Step 8: Apply for Home Decor Business Licenses and Permits

Starting a home decor business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your home décor business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Autodesk AutoCAD LT , TurboCAD , and Live Home 3D for interior decoration 3D rendering.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your home decor business, the marketing strategy should focus on showcasing the uniqueness, style, and quality of your decor items. Highlight your ability to enhance any living space, whether through trendy, classic, or custom-made products, and emphasize any special features like eco-friendly materials or collaborations with local artists. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should reflect the style and aesthetic appeal of your products. This includes your logo, store design (both physical and online), and marketing materials.
• Direct Outreach : Network with interior designers, real estate agents, and home staging professionals to introduce your products. Collaborate with local businesses for cross-promotion.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop an engaging e-commerce website that showcases your products with high-quality images and detailed descriptions. Use SEO best practices to rank for searches related to home decor, interior design, and stylish home accessories.
• Social Media Engagement : Utilize visually oriented platforms like Instagram and Pinterest to showcase your products, share home decor tips, and feature customer photos. Use Facebook for promotions, customer engagement, and sharing decor ideas.

Content Marketing and Engagement

• Interior Design Blog : Share blog posts about decorating tips, trends in home decor, and DIY ideas. This helps establish your brand as a valuable resource for home decoration.
• Email Newsletters : Keep your customers informed about new arrivals, exclusive offers, and interior design inspirations.
• Video Content : Create videos that showcase your products in styled settings, provide interior design tips, or feature behind-the-scenes looks at your business.

Experiential and In-Person Engagements

• Pop-Up Shops and Markets : Set up pop-up shops or booths at local markets, fairs, and events to showcase your products and interact directly with customers.
• Decor Workshops or Events : Host workshops or events focusing on home decor and interior styling to engage with customers and offer hands-on experiences with your products.

Collaborations and Community

• Collaborations with Local Artists and Designers : Partner with local artists or designers to offer exclusive, locally made decor items, adding uniqueness to your product range.
• Community Engagement : Participate in community events, sponsor local activities, or collaborate with home-related businesses to enhance brand visibility and community involvement.

Customer Relationship and Loyalty Programs

• Loyalty Rewards Program : Implement a program offering discounts or exclusive access to special collections for loyal customers.
• Referral Incentives : Encourage word-of-mouth marketing by offering incentives for customers who refer friends and family.

Promotions and Advertising

• Targeted Online Advertising : Use digital advertising platforms like Google Ads, Facebook, and Instagram to target individuals interested in home decoration and interior design.
• Seasonal and Themed Promotions : Capitalize on holidays, seasons, and special occasions with themed promotions and marketing campaigns.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your home decor meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your home decor business could be: 

• Sustainable home décor for sustainable living
• Luxury home décor to upscale your home
• Stay on the cutting edge with 3D home decor

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a home decor business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in home decor for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in home decor. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. If you open a store, you’ll need workers to fill various roles. Potential positions for a home decor business would include:

• Store Clerks – make sales, customer service
• Buyers – choose items to add to inventory
• General Manager – scheduling, staff management, ordering, accounting
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Home Decor Business – Start Making Money!

So many possibilities! A home décor business offers many options. Whether you make your own items or re-sell some curated items online or in-store, there is money to be made in a steadily growing industry that’s approaching $200 billion. 

If you have a great eye for design, and you do some effective marketing to differentiate yourself from the big industry players, you can develop your own client base and grow a successful home decor company. Now that you have fully decorated your business knowledge, you’re ready to build a business plan and be on your way to entrepreneurial success!

• Home Decor Business FAQs

If you’re successful, it can be very profitable. You can make about a 20% profit margin depending on the items you sell, and your initial investment can be as little as $2,500, so you should have an excellent return on investment.

Home decor typically refers to the elements used to decorate and furnish a home, including furniture, lighting, decorative accessories, wall art, rugs, and window treatments.

Home decor is purchased by a wide range of people, including homeowners, renters, and businesses. However, some demographics that tend to buy home decor more frequently include women, millennials, and high-income earners.

The most popular home decor items vary depending on current trends and styles. However, some perennially popular home decor items include throw pillows, rugs, wall art, lighting fixtures, and decorative accessories such as vases and candleholders.

Yes, it is possible to start a home decor business on the side. Starting a side business can be a great way to test your ideas and see if there is a market for your products or services. You can start by identifying a specific niche within the home decor industry and creating a business plan that outlines your goals, target audience, marketing strategy, and financial projections. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Home Decor Business Name
• Create a Home Decor Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Home Decor Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Home Decor Business - Start Making Money!

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Home Decor Business Plan Template

Written by Dave Lavinsky

Home Decor Business Plan

You’ve come to the right place to create your Home Decor business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Home Decor businesses.

Below is a template to help you create each section of your Home Decor business plan.

Executive Summary

Business overview.

Urban Harmony Home Decor is a startup home decor company located in Los Angeles, California. The company is founded by Jasmine LeFleur, who has experience in home decor. Now, with the expertise of knowledge and business acumen, she has determined she can confidently start and effectively grow a successful Urban Harmony Home Decor company. She believes her experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of home decor practices will provide everything needed for long-term growth and profitability.

Urban Harmony Home Decor will provide a comprehensive array of services and products for a wide variety of clients. Urban Harmony Home Decor will be the premier destination for home decor items, providing services and products to each client while supporting the strategic goals of the company. Urban Harmony Home Decor will be the ultimate choice in Los Angeles for clients to ensure that every need of the customer is fully and completely met.

Product Offering

The following are the services that Urban Harmony Home Decor will provide:

• Home decor selections that have been curated with select partnering pieces
• A wide range of high-quality and stylish home furnishings
• Software to create home spaces and align decor within them
• Technology-driven measuring systems for homes and furnishings
• Home decor that reflects life values and unique personalities
• Handmade pieces selected to enhance the harmony of the home
• Decorative Accessories offered include artwork, vases and sculptures
• Premium bedding, curtains, rugs, and cushions are offered
• Lighting solutions include lamps, chandeliers, and ambient lighting solutions
• Superior customer service and attentive personal attention to each client.

Customer Focus

Urban Harmony Home Decor will target individuals who live in the Los Angeles region. They will target upper-economic zone homeowners throughout Beverly Hills, Newport Beach, Orange County and other regions. They will target real estate agents and home designers and decorators. They will target celebrity agents.

Management Team

Urban Harmony Home Decor will be owned and operated by Jasmine LeFleur. She recruited her former administrative assistant, Ida Renoir, to be the Office Manager for the new company, in addition to being her executive assistant. In addition to select retail staff members, Jasmine recruited her friend and executive Lyon Daniels to become the new Director of Furnishings. Jasmine LeFleur is a graduate of the Parsons School of Design in New York City. She is known for her opulent and seductive urban designs, including handwoven textiles and lush applications of texture within the home walls. Her expertise was developed during ten years of experience as a home design partner with Don Dryden, a celebrity home design consultant. During those years, Jasmine learned how to use her skills and designs to bring together a series of rooms in any home.

Ida Renoir was the administrative assistant to Jasmine LeFleur for six years at the former employer’s work sites. Ida was extremely organized and talented with her customer service skills. Jasmine has hired Ida to be the new Office Manager, in addition to being her executive assistant in the company.

Lyon Daniels holds a degree in Business Applications from University of California, Los Angeles. He has over ten years of experience as a designer and operations manager in his former employment, where he garnered many compliments from satisfied clients who requested him multiple times while decorating their homes. Lyon will become the Director of Furnishings in the new company.

Success Factors

Urban Harmony Home Decor will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Urban Harmony Home Decor
• Comprehensive menu of products and services designed to meet even the most discriminating client need.
• Personal design specialists who will offer home consultations
• Modern, minimalistic, classic and eclectic designs from which to choose
• Urban Harmony Home Decor offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Urban Harmony Home Decor is seeking $200,000 in debt financing to launch Urban Harmony Home Decor. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Urban Harmony Home Decor.

Company Overview

Who is urban harmony home decor.

Urban Harmony Home Decor is a newly established, full-service home decor company in Los Angeles, California. Urban Harmony Home Decor will be the most luxurious, multi-design environment choice for individuals and families in Los Angeles and the surrounding communities. Urban Harmony Home Decor will provide a comprehensive menu of design services for any client to utilize. Their full-service approach includes a comprehensive array of design options in price choices from modest to ultra-luxury.

  Jasmine LeFleur will be able to manage a staff of several employees. The team of professionals are highly qualified and experienced in home decor, fabrics, textiles, wall treatments and design features. Urban Harmony Home Decor brings a fresh, appealing to every home and removes all the headaches of trying to pull together items to create a cohesive design. Urban Harmony Home Decor ensures all issues are taken care of expeditiously for each client, while delivering the best customer service.

Urban Harmony Home Decor History

Urban Harmony Home Decor is owned and operated by Jasmine LeFleur. As a former home decor designer for several years, she developed a unique capability to find the decor items and furnishings that clearly reflect an urban, chic, California-style home. She has managed design projects for home and commercial projects alike and has now determined she is ready to take her skills and knowledge to venture out on her own by starting her own company. She has gained the trust and commitment of several clients in advance of opening her business and will sign contracts with each when the company launches.

Since incorporation, Urban Harmony Home Decor has achieved the following milestones:

• Registered Urban Harmony Home Decor, LLC to transact business in the state of California.
• Has a contract for a 10,000 square foot design studio at one of the midtown buildings
• Reached out to numerous contacts to include Urban Harmony Home Decor in new design projects.
• Began recruiting designers and office personnel to work at Urban Harmony Home Decor

Urban Harmony Home Decor Services

The following will be the services Urban Harmony Home Decor will provide:

• Superior customer service and attentive personal attention to each client

Industry Analysis

The home decor industry is expected to grow over the next five years to over $62277M. The growth will be driven by an interest fueled by the pandemic years when design and decor did not grow at all. The fast pace within the home decor industry now has triggered a renewed drive to design and add home decor to small and large homes, businesses, commercial areas and government buildings. The growth will also be driven by the increased availability of exotic international textures, fabrics, lampshades, lighting fixtures and other decor items. The doors are open to new designs and new rooms to place those items with flair and urban coziness.

Costs will likely be reduced as technology moves more toward optimizing daily tasks so that company personnel can avoid mundane work. Costs will also likely be reduced as design pieces and decor, along with furnishings, will once again ship through internationally to fill design centers will plenty of inventory, which will reduce prices. The availability of lower-than-expected textiles and fabrics from India has also led to prices being reduced with, possibly, further price reductions in the future from that area of the globe.

Customer Analysis

Demographic profile of target market.

Urban Harmony Home Decor will target individuals who live in the Los Angeles region. They will target upper-economic zone homeowners throughout Beverly Hills, Newport Beach, Orange County and other regions. They will target real estate agents, home designers and decorators. They will target celebrity agents.

Customer Segmentation

Urban Harmony Home Decor will primarily target the following customer profiles:

• Residents within certain areas of Los Angeles
• Upper-income homeowners throughout select regions, such as Beverly Hills
• Real estate agents
• Home designers
• Home decorators
• Celebrity agents

Competitive Analysis

Direct and indirect competitors.

Urban Harmony Home Decor will face competition from other companies with similar business profiles. A description of each competitor company is below.

Classic Living Decor

Classic Living Decor located in Orange County, California, was started by Tina Murray in 2019. She is a home design expert, having graduated from the Chicago Institute of Design and practicing her craft for over 15 years. Her style of preference is the “classic” decor with a balanced design that tells guests one lives in California. This translates to cool blue, tangerine, white and other beach colors, all designed within classic lines of furnishings. Tina was personally designing for friends when she realized she needed to start her own company. The company is highly-profitable and currently Tina has seven executive personnel on staff, fifteen clerks and design assistants, along with two retail locations specializing in classic home decor design.

Handmade Home Specialties

While on a buying trip for a retail employer, David Landon realized the beauty and sustainability of international textiles. In Egypt and India, he located multiple suppliers of those textiles and returned home to start his new company, Handmade Home Specialties. He currently has one retail store and two design specialists who work with select clients to develop photos or illustrations of the textiles desired. Those are then sent to the country best suited to create the textiles and the clients wait for finished pieces to be sent.

Handmade Home Specialties has handmade textiles for every buyer, from modestly-priced to opulent, with the idea that textiles bring warmth and comfort to every room and should be found in every person’s home.

Townsend & Hatch Home Decor

Marc Townsend and Darlyn Hatch are co-owners of the Townsend & Hatch Home Decor company. Founded in 2018, Marc and Darlyn were formerly employed as designers in a large upscale department store who determined that they would be able to become more profitable and enjoy their life experiences more as business owners. They started the new company in a warehouse in midtown, where it quickly grew to over 20,000 feet in size.

Because of the extremely reasonable prices for home decor and the extensive experience Marc and Darlyn carried, the company has grown to become extremely competitive with other home decor stores.

Competitive Advantage

Urban Harmony Home Decor will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Urban Harmony Home Decor will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive home decor plan
• Unbeatable pricing to its clients; they will offer comparative pricing to the competition

Promotions Strategy

The promotions strategy for Urban Harmony Home Decor is as follows:

Word of Mouth/Referrals

Jasmine LeFleur has built up an extensive list of contacts over the years by providing exceptional service and expertise to her clients. The contacts and clients will follow her to her new company and help spread the word of Urban Harmony Home Decor.

Professional Associations and Networking

The staff at Urban Harmony Home Decor will join the professional associations throughout the region to spread the word of the new company. They will also join national trade organizations and international collaborations to ensure they receive textiles and decor that complement their styles throughout the company.

Print Advertising

A direct mail piece will be sent to select individuals and companies prior to the launch of the company. A champagne launch party will be held on opening day of the company with select guests present.

Website/SEO Marketing

Urban Harmony Home Decor will fully utilize their website. The website will be well organized, informative, and list all the services that Urban Harmony Home Decor provides. The website will also list their contact information and display various pieces of home decor for consideration. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “home decor company” or “design near me,” Urban Harmony Home Decor will be listed at the top of the search results.

The pricing of Urban Harmony Home Decor will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Urban Harmony Home Decor. Operation Functions:

• Jasmine LeFleur will be the owner and president of the company. She will oversee all staff and manage client relations. Jasmine has spent the past year recruiting the following staff:
• Ida Renoir will be the administrative assistant who will manage the office administration, client files, and accounts payable.
• Lyon Daniels will be the Director of Furnishings, all client oversight, inventory selection and furnishings specialist

Milestones:

Urban Harmony Home Decor will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Urban Harmony Home Decor
• 6/1/202X – Finalize contracts for Urban Harmony Home Decor clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Urban Harmony Home Decor office
• 7/1/202X – Urban Harmony Home Decor opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for Urban Harmony Home Decor are the fees they will charge to clients for their products and services.

The cost drivers will be the overhead costs required in order to staff Urban Harmony Home Decor. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Urban Harmony Home Decor is seeking $200,000 in debt financing to launch its home decor company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clients Per Month: 70
• Average Revenue per Month: $45,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, home decor business plan faqs, what is a home decor business plan.

A home decor business plan is a plan to start and/or grow your home decor business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Home Decor business plan using our Home Decor Business Plan Template here .

What are the Main Types of Home Decor Businesses?

There are a number of different kinds of home decor businesses, some examples include: Complete home decor service, Restore or replace decor service, Online home decor service, and Home decor accessory service.

How Do You Get Funding for Your Home Decor Business Plan?

Home Decor businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Home Decor Business?

Starting a home decor business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 1. Develop A Home Decor Business Plan - The first step in starting a business is to create a detailed home decor business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your home decor business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your home decor business is in compliance with local laws. 3. Register Your Home Decor Business - Once you have chosen a legal structure, the next step is to register your home decor business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 4. Identify Financing Options - It’s likely that you’ll need some capital to start your home decor business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 7. Acquire Necessary Home Decor Equipment & Supplies - In order to start your home decor business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your home decor business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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Home Decor Business Plan

If you have a good eye for style and design, then a successful business plan can make a home decor firm profitable.

Need help writing a business plan for your home decor business? You’re at the right place. Our home decor business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Home Decor Business Plan?

Writing a home decor business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the home decor services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of home decor company you run and the name of it. You may specialize in one of the following home decor businesses:

• Interior design firm
• Furniture store
• Art gallery
• Antique shop
• Custom home decor manufacturing
• Online marketplace
• Describe the legal structure of your home decor company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established home decor firm, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your home decoration business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products & services:

Mention the home decor products & services your business will offer. This list may include:

• Lighting fixtures
• Home Accessories
• Home staging services
• Customization & personalization
• Consultation and advice

Customization option:

Quality measures.

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your home decor plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your home decor business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your home decor business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

Include the list of equipment and software required for home decor, such as design & planning software, manufacturing & production equipment, installment & assembly tools, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your home decor business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your home decor business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your home decor business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample home decor business plan will provide an idea for writing a successful home decor plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our home decor business plan pdf .

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Essentials of Writing a Business Plan

Frequently asked questions, why do you need a home decor business plan.

A business plan is an essential tool for anyone looking to start or run a successful home decor business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your home decor company.

How to get funding for your home decor business?

There are several ways to get funding for your home decor business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your home decor business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your home decor business plan and outline your vision as you have in your mind.

What is the easiest way to write your home decor business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any home decor business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a home decor business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my home decor business plan?

The level of detail of the financial projections of your home decor business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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6 Steps to Start a Home Decor Business and 6 Common Problems To Avoid

Learn how to start a home decor business with our comprehensive guide. We cover everything on how to turn your passion into profit,  from niche selection and business plans to common pitfalls to avoid.

Home decor—where creativity meets functionality. Your love for decorative vases and rustic farmhouse tables has led you here, and you’re toying with the idea of turning that passion into a thriving business. 

If you’re interested in turning your eye for beautiful and functional living spaces into a profitable venture, you’re in the right place. This comprehensive guide takes you through the essentials of starting and running a successful home decor enterprise. Along the way, we’ll also address common issues that often derail startups, so you’ll know exactly what to avoid.

Why this guide? Because your design skills shouldn’t just be a hobby. They have real business potential. But keep in mind that the information in this guide is intended for general informational purposes only and should not be taken as professional or legal advice. Consult with qualified professionals for advice tailored to your specific circumstances.

So grab your favorite throw pillow, nestle into that perfectly distressed leather armchair, and let’s get started on your journey to home decor business ownership.

Identifying Your Niche

Before diving into the logistics and legalities of starting a home decor business, you’ll want to spend quality time identifying your niche. This is more than just a preliminary step; it’s the bedrock upon which your business will be built. By pinpointing your specific area of focus within the broad spectrum of home decor, you’ll guide every future decision, from inventory selection to marketing strategy. Let’s dig into the nitty-gritty.

Conducting research into customer buying behaviors and current trends in the industry and gaining insights into customers’ interior design preferences can help you identify gaps in the market where your home decor business can address target audience needs.

You can choose to focus on selling affordable home decor items for budget-conscious customers or target luxury home decor enthusiasts with high-end interior furnishings and increase your chances of success with tailored marketing strategies.

Diversifying your niche of interior design products to encompass different styles, themes, and price ranges can help expand your market reach by making you adaptable to different clients’ styles.

You can also consider including additional services that complement the primary services you provide to build a greater client base. For example, if you offer home furnishing services like home staging, you can opt to also offer consultation services for sourcing furniture and how to arrange them in your home.

When starting an interior design business, it’s usually best to focus on a specific niche. As your business expands, you can introduce additional services such as color consulting, virtual design, and artistic decoration, which are highly sought after by interior design enthusiasts.

Establishing Your Brand

Your brand is the face of your business; it’s what customers will identify with and what sets you apart from the competition. Think of your brand as a person—what personality traits would it have? Is it luxurious and sophisticated, or perhaps cozy and welcoming? Decide on the emotions you want your brand to evoke and then build your business aesthetic around it. From your logo to your storefront, whether physical or digital, consistency is key. A well-defined brand helps in attracting the right audience and in creating a loyal customer base.

You can achieve a profitable interior design business through maintaining consistency across your brand’s touchpoints, like your business’s social media and website, to build loyalty from your customers and grow your brand recognition.

As you design your brand’s personality, it’s important that you pick a compelling logo, choose a color palette and design that resonates with your target audience, and advertise your products and services effectively. 

Importance of Finding a Unique Selling Proposition

While passion for home decor is crucial, it won’t be enough to carry the business. You’ll be up against numerous competitors, and you need a unique selling proposition (USP) that distinguishes you from the rest. A USP is not a tagline but a unique benefit that makes your business the better choice. Maybe you offer sustainably sourced products, or perhaps you specialize in a particular style of furniture that’s hard to find. Whatever it is, your USP needs to be compelling, specific, and easily communicated to your potential customers.

Types of Home Decor Styles and Target Demographics

The home decor industry caters to a plethora of styles, from mid-century modern to boho-chic and everything in between. It’s crucial to understand not just what style or styles you want to offer but also who your target customers are. Young urban professionals may have different tastes and budgets compared to empty-nesters looking to revamp their homes. Tailoring your inventory to your target demographic will make your marketing more effective and inventory management more straightforward.

Market Research Strategies

Once you’ve outlined your brand, USP, and target demographic, it’s time to validate those decisions through market research. Utilize online surveys, conduct focus groups, or even examine your competitors to gauge the market demand.

• Online Surveys : Use platforms like Google Forms or SurveyMonkey to create questionnaires that can help you understand customer needs and preferences.
• Focus Groups : A small, diverse group of people discussing your product or style can provide qualitative data that surveys may not capture.
• Competitor Analysis : Look at successful businesses that are similar to your niche but don’t directly compete with you. What are they doing right? More importantly, what are they doing wrong, and how can you do it better?

By investing time in identifying your niche, you’re not just making an educated guess; you’re laying a strong foundation for a successful business. This is not a “set and forget” type of task; it’s a continuous process that will evolve as your business grows and as market trends shift.

Selecting the Location of Your Business

Choosing the right location for your home decor business is like picking the perfect centerpiece for your dining room table. It sets the tone and has a significant impact on how well everything else falls into place. The choices range from home-based and online to retail storefronts and traditional offices. Each has its perks and pitfalls. So let’s break down what you need to consider for each to make an informed decision.

Home-Based Business

Running a home-based business is the cozy sweatpants of business locations—comfortable and low-maintenance. It’s a stellar option for those starting out or wanting to keep overhead low. The cost savings on rent, utilities, and commute can be channeled into product development or marketing. However, working where you live may blur the lines between professional and personal life. You’ll also need to check zoning laws to ensure your business type is allowed in a residential area.

Online Business

An online location puts you in the virtual realm where foot traffic is replaced by clicks and scrolls. The overhead is even lower than a home-based business, and you have a potentially global customer base. Yet, fierce competition and the absence of in-person interaction can be challenging. Security of both data and transactions is also a critical consideration.

Retail Storefront

A brick-and-mortar store offers the allure of physical presence—window displays, in-person customer service, and immediate product availability. It’s the red-carpet event of business locations, flashy and glamorous. However, the costs of rent, utilities, and additional staff are significantly higher. Location is everything; a bad one can break your business faster than a trending negative Yelp review.

Office Location

Opting for an office is often a middle ground between home-based and retail. Offices offer a distinct professional space without the demands of a storefront. They’re excellent for businesses that may require a showroom or a space for client consultations rather than a full-blown retail setting. Costs are lower than retail but higher than home-based or online, so factor this into your budgeting.

Choosing the right location involves weighing costs, market reach, work-life balance, and the type of customer interaction you desire. Pick wisely, and you’ll set a strong foundation for your home decor business, one where every element harmonizes like a well-decorated room.

Secure Legal Assistance to Avoid Tax Problems

The law requires you to obtain the necessary permits and licenses to operate as well as acquire a tax identification number to file taxes for your business entity. Registering your home decor business as a limited liability company can help you protect your personal assets in the event your business incurs legal issues or debts.

Enlisting the services of legal professionals can streamline your tax compliance responsibilities and ensure your business complies with all necessary requirements.

Based on your location and situation, you may be required the following permits and legal documents for your interior design business:

• An operating license to allow you to work in an unsupervised commercial space
• A business insurance to cover yourself from the potential losses or risks of your operations
• Employment contracts to specify the work agreement between you and your employees and how you’ll pay them
• A business license from your state

Complying with all legal requirements for a home decor business legitimizes your operations and affords various benefits for your business to thrive. 

Create a Business Plan To Map Out Your Goals and Strategies

Launching a successful home decor business involves more than just a passion for design. Behind the aesthetic appeal of your merchandise lies the backbone of your venture—a robust business plan and solid financial foundation. This section delves into the integral parts of business planning and how to secure the necessary funds for a smooth start and long-term success.

Your business plan provides direction that helps you stay focused and organized as you navigate starting and growing your home decor business. It helps you highlight the different things you’ll do for your design firm’s success and should include major sections like:

• An accurate and clear financial plan with your sales and profit projections
• Your business description declaring your services, goals, and vision
• Your marketing plan that includes your unique selling points
• The style and structure of your business
• A competitive analysis section with a detailed analysis of your business rivals

Most investors will demand to see your business plan before funding and an outstanding business plan can open doors to more funding from banks and financial institutions. 

Components of a Well-Crafted Business Plan

A business plan serves as the roadmap for your enterprise, providing direction and helping you prepare for obstacles. It’s not just a document you create once; it’s a living tool that should be revisited and revised as your business evolves. Key components include:

• Executive Summary : A snapshot of your business, summarizing the who, what, where, when, and why.
• Market Analysis : Data and insights about your target market, competition, and business environment.
• Organization and Management : Describes your business structure and the team that will help you achieve your goals.
• Service or Product Line : Detailed information about the products or services you offer, including the problem they solve or need they address.
• Sales and Marketing : How you intend to attract and retain customers.
• Financial Projections : A forecast of your financial future, including balance sheets, profit and loss statements, and cash flow projections.

Financial Planning: Budget, Cash Flow, and Projections

Cash is king, especially in business. Having a thorough understanding of your financial picture is not just recommended, it’s essential. Let’s go through the essentials:

• Budget : List all your anticipated business costs, from initial setup to operating expenses. Know what you’ll need to keep your business running for at least 6 to 12 months.
• Cash Flow : This is a real-time snapshot of money coming in and going out. You need to know that you can cover all your costs, from supplier invoices to employee wages.
• Projections : Based on your budget and cash flow, make educated guesses about where your business will be financially in the coming months and years. This will be vital not just for internal planning but also for securing loans or investments.

Smart financial planning sets the stage for a business that’s not just creative and captivating but also sustainable and profitable.

Financing Options: Loans, Venture Capital, Bootstrapping

Money may not buy happiness, but it certainly buys inventory, pays employees, and keeps the lights on. Here are common ways to finance your dream:

• Loans : Traditional bank loans offer a large sum upfront, typically with lower interest rates, but require good credit and often, collateral.
• Venture Capital : If you’re willing to part with equity in your business, venture capital can provide a significant cash infusion and mentorship but involves giving up a share of ownership.
• Bootstrapping : Self-funding is an option if you have savings set aside. The benefit is you retain full control, but the risk is entirely on you.

Sourcing Products and Inventory Management

Sourcing the perfect products and managing your inventory efficiently are crucial to your home decor business’s success. It’s like planning a dinner party; you need the right ingredients in the right amounts. Except this party never ends, and the guests are your customers. So let’s tackle how to keep your store well-stocked without breaking the bank or compromising quality.

Domestic vs. International Sourcing

Your first big decision is whether to source your products domestically or from international suppliers.

• Domestic Sourcing: Generally, faster shipping and lower shipping costs. You’re also less likely to face import taxes or customs issues. However, the products themselves can be more expensive.
• International Sourcing: Often cheaper and can provide a greater variety of products. But you’ll need to consider shipping times, import taxes, and the complexities of international business relationships.

Quality Assurance Measures

You don’t want to be the store selling subpar cushions or easily breakable vases. That’s a quick ticket to a tarnished reputation.

• Samples: Always start with samples before placing large orders.
• Inspections: Whether you go in person, hire a third party, or ask for detailed photos, inspect products before they’re shipped to you.
• Reviews and Ratings: Use industry websites and forums to check out suppliers and their reputation.

Building Relationships with Suppliers

A reliable supplier is as crucial to your business as a reliable friend is to a good night out. Here’s how to foster that relationship:

• Clear Communication: From the get-go, be clear about your expectations regarding quality, timing, and pricing.
• Negotiate Terms: Don’t just accept the first price you’re given. It’s all up for discussion.
• Maintain Contact: Regular check-ins are key. This is a relationship, after all, and it needs nurturing.

Selecting an Inventory System

Just as you wouldn’t use a sundial to tell time in this day and age, you need a modern inventory system to track your stock.

• Manual Systems: Think spreadsheets and ledgers. Simple but time-consuming.
• Automated Systems: Software that tracks sales and adjusts inventory levels automatically. More upfront cost, but saves time and reduces errors in the long run.

Stocking Strategies: Just-in-Time vs. Bulk Buying

How much stock should you keep on hand?

• Just-in-Time: You only order products as they’re needed. This minimizes storage costs but risks running out of stock.
• Bulk Buying: You buy a lot at once to save money on each unit, but then you have to store it all.

Seasonal Inventory Planning

Home decor is highly seasonal. Winter calls for cozy throws and candles, while summer demands vibrant patio decor.

• Forecasting: Use last year’s sales data, if available, and current market trends to anticipate seasonal demands.
• Timelines: Know the lead times for your seasonal products to ensure they arrive when you need them.

Choosing your suppliers wisely, ensuring product quality, and managing your inventory efficiently are non-negotiables in the home decor business. So, make sure your products are both beautiful and readily available to your customers when they want them.

Common Problems To Avoid When Starting Your Home Decor Business

Starting a home decor business can be exhilarating. It’s like hosting a grand event; the lights are on, the decor is perfect, and the guests—your customers—are excited. But just like any event, things can go sideways if you’re not prepared. Let’s go over some common pitfalls you absolutely want to sidestep on your journey to business success

Common problems that new home design business owners experience that you should avoid include:

Failing To Develop a Solid Marketing Strategy

Your home decor business may struggle to gain traction in the interior design marketplace without effective marketing strategies to reach your target audience. You can publish blogs on your website with information on interior design topics like decorating a luxury home on a budget to increase your site’s click-through rate and drive sales. 

Regularly analyzing and adjusting your marketing strategies based on market trends and your customers’ feedback can help you optimize your marketing efforts to get the most out of it. You should research the market demand, and consumer preferences and identify potential gaps in the market to help you structure an effective marketing strategy.

Cash Flow Mismanagement

Money is like the oxygen of your business; run out of it, and everything comes to a grinding halt. Managing your cash flow is a balancing act.

• Overspending: Whether it’s excessive initial inventory or high-end office space, spending too much upfront can choke your business before it starts.
• Delayed Receivables: If you’re getting paid too late but need to pay your suppliers pronto, you’re in trouble.
• Lack of Emergency Funds: Always have a cash reserve. This isn’t just good life advice; it’s good business advice.

Having Poor Customer Service

Prioritizing customer satisfaction with quick responses to their inquiries and going the extra mile to exceed their expectations can help you build a loyal customer base that leaves positive reviews for your business.

You need to ensure that your home decor business offers hassle-free returns to customers and offers personalized attention to each customer’s needs. Your interior design firm can benefit from having prompt and effective communication channels online as well as offline and customer service professionals to manage your business’s customer support needs.

Supply Chain Disruptions

Imagine planning the party of the year and your DJ, food, and party favors don’t show up. That’s what supply chain disruptions feel like.

• Single Supplier Risks: If you rely on a single supplier, what happens if they can’t deliver? Diversify your sources to protect yourself.
• Logistical Hiccups: Strikes, natural disasters, and even traffic jams can delay your shipments. Have backup plans and be ready to communicate with customers.

Overestimating Market Demand

Believing that your products will fly off the shelves like hotcakes can be an ego trap. Without comprehensive market research, you’re essentially driving without a roadmap. Overestimating demand can also result in excessive inventory that becomes a financial burden. The trick is to pay close attention to customer feedback; use reviews and surveys to continually refine your product offerings.

Underestimating the Level of Effort Required

If business is a race, it’s less of a 100-meter dash and more of a relentless relay filled with hurdles. You’ll need to manage your time immaculately as you’ll wear many hats, from CEO and marketer to perhaps even janitor. The emotional toll of running a business is often overlooked, so make sure you have a sturdy support system. And then there are the skill gaps; you may be a whiz at decor, but accounting or marketing might not be your forte. Recognize these gaps early on and consider bringing in experts or consultants to fill them.

Understanding and navigating these common problems will put you on a firmer path to long-term success. After all, no one wants to trip over their own feet when they could be dancing.

Summary and Key Takeaways

Starting your own home decor business is an exciting yet challenging venture. From managing cash flow and avoiding supply chain hiccups to gauging market demand accurately and recognizing the true effort required, the road to success is filled with potholes you’ll want to avoid. But don’t worry, with proper planning and a keen eye for details, you’re more than capable of steering clear of these common pitfalls.

Here are your key takeaways:

Cash Flow : Balance your spending wisely, get paid on time, and always have a reserve fund. Money issues can stifle your business faster than you can say “bankruptcy.”

Supply Chain : Diversify your suppliers and have backup plans to counter any logistical disruptions. Your supply chain is your lifeline; treat it as such.

Market Demand : Comprehensive research and continual customer feedback are essential. Assumptions about demand can lead to financial burdens, so keep your finger on the pulse of your market.

Legal Considerations : Get your business structure, permits, and contracts in order. It may sound tedious, but not doing so is like trying to wallpaper over a crumbling wall.

Effort Required : Prepare for a long-haul commitment involving multiple roles and emotional ups and downs. Seek help for skills you lack and manage your time and emotional resources wisely.

Knowledge is your most powerful tool. Being aware of these pitfalls arms you with the insight needed to avoid them, setting you on the path to long-term success in your home decor business. Now, who’s ready to get this party started?

2 thoughts on “6 Steps to Start a Home Decor Business and 6 Common Problems To Avoid”

Invaluable advice for aspiring entrepreneurs! This blog not only outlines the essential steps to kickstart a home decor business but also provides insights on steering clear of common pitfalls. A great resource for those entering the market.

Amazing article

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How to Start an Interior Design Business in 6 Steps

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Starting an interior design business is a popular move for people who study the craft of creating a space that's both functional and aesthetically pleasing. The combination of expressing yourself and executing your vision for clients is tough to pass up, despite the obstacles that small business owners often face.

Being successful in the field of interior design requires more than just an eye for decoration, though.

Starting with the fact that interior designers require a degree from an accredited university (those without a degree are interior decorators ), they also need extensive knowledge of the materials, software applications, and structural and health codes required to build out a home or business. There is also the matter of business acumen, the ability to balance your artistic expression with the needs and wants of the client, and the time and paperwork it takes to actually start a business.

“Great design is the marriage of form and function in a balanced and harmonious whole—and staying on budget while doing it,” says Beverly Solomon of Beverly Solomon Design.

“So yes, the artist in me can often want to do things that are more challenging, out of the box, and often expensive than the client is looking for, but listening in order to understand what the client hopes you can achieve is the major skill you must develop.”

Solomon’s international firm is based just outside of Austin, Texas, on a historic farm where she lives and works with her husband, artist Pablo Solomon. She self-financed the creation of the business after working in sales and marketing for various big-name companies, including Ralph Lauren and Revlon.

Like how each interior design business has a different focus, clientele, and model—every state has different rules and regulations for opening a small business. If you've been wondering how to start an interior design business of your own, read on for the steps you'll need to follow.

How to start an interior design business: The ultimate guide

As we mentioned, setting up an interior design business is a balancing act. As a creative, your ultimate goal is to create a business where you can use your eye for design on a daily basis. But before you can pursue your passion in the form of a legal business, you'll have to complete some tasks. Let's take a closer look at what you need to do to open an interior design business.

Step 1: Choose your business name and structure

Once you're ready to start an interior design business, you'll first need to choose a business name and decide what kind of business entity you want to use. It may be tempting to put one or both of these things off, but they will be necessary to continue with the following steps of starting an interior design business.

Luckily, most interior designers use their own names as their business name, which may increase the likelihood that your name is available for use. Either way, you will want to check the availability of business names in the state where you'll be operating your interior design business, which can typically be done through the website of your secretary of state.

After confirming that the name you want is available, you'll likely be able to reserve this name for a specified time period while you gather the other items necessary to officially register your business.

At this stage of setting up your interior design business, you'll also need to choose a business entity, such as a sole proprietorship, LLC, or corporation. The business entity you choose will affect your company's business taxes, as well as the level of risk you're exposing yourself to if any legal issues arise.

It will also depend on whether you're starting your interior design business yourself or with a partner. We recommend consulting a business attorney if you're unsure which entity to choose, as they can guide you in the best direction for your specific needs.

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Prepare and plan for your interior design business

The next step in starting an interior design business is to create your business plan. A business idea is just that, an idea, but your business plan shows exactly how you plan to take that idea and turn it into a profitable business. Not only is a business plan a vital tool for you to use as a roadmap when your interior design business is starting out (and continuing to grow), but it's also necessary if you plan to seek funding, as banks or investors will want formal documentation that you have a plan for how to turn a profit.

As such, your business plan will include everything from an overview of your company's leadership team and legal structure (which is why we chose a business entity in Step 1) to a market analysis and plan for how you'll market your own company, rundown of the exact types of services you'll offer as an interior designer, and (most importantly to potential investors) a financial plan with at least three years of financial projections.

If this is your first entrepreneurial endeavor, a business plan can seem overwhelming. The good news is you can use a business plan template or business plan software to make the process easier and ensure you're not leaving out any important information.

One part of the business plan for your interior design business that you can really build out is your plan for supplies, customers, and how you'll generate hype around your new interior design business so you can turn a profit.

Tips to connect with suppliers, customers, and media outlets

Interior design is an industry-driven by connections. You’ll need them to find your clients, to market yourself, and to establish fruitful relationships with suppliers of materials and furniture. And this is a key part of planning for your interior design business.

“I began my business by basically selling the art of my husband to high-end clients. When they began asking our design advice on various projects, I saw an opportunity,” says Solomon. “I decided that I wanted to use my expertise, experience, and connections from working with the major designers to start my own businesses.”

Solomon says that creating connections with the media has helped her in everything from marketing her interior design business to letting her set the price point.

“In art and design, you're selling your abilities, but what really sets the price you can get is your name recognition,” she says. “I knew from my days in sales and marketing that the place to focus was on name recognition. So we concentrated on building relationships with those in the media who could put our names out there.

“One of the secrets to our success has been working with writers, publishers, photographers, filmmakers, and producers to create symbiotic relationships that have resulted in their getting good information, interesting stories, illustrations, photographs, connections, and advice. In return, we've gotten literally hundreds of thousands of dollars of free publicity and built strong name recognition.”

Another common way to leverage connections is to form relationships with manufacturers in order to get the best deals on products or when buying in bulk. If you find yourself drawn to a company that builds in a similar style to your own, you’re in good shape—but don’t hamstring yourself, Solomon advises.

“Teaming up with various furniture stores and manufacturers can be as tricky as it is rewarding. Make sure that you're finding a good match, and not just a deal out of desperation. Pushing products that are absolutely the best for your client is a good thing, but pushing crap can ruin your reputation,” she says.

Thinking through your own strategy to form connections and market your interior design business should be included in your business plan, both for your own reference, as well as to show potential investors you're serious about your business.

Step 3: Register your interior design business and get an EIN

The next step in starting your interior design business will be to use the name you secured in Step 1 and register your business. The registration process varies in each state, as does where and how you'll register your business .

Some states will allow you to register online while others require you to submit forms via mail. In most states, you'll likely deal with the secretary of state's office, while other states specifically have branches of government for small businesses.

You should also register your interior design business with the IRS and apply for an employer identification number, or an EIN. This can take a matter of minutes online and you could be approved right away.

There are a number of benefits of getting an EIN, even if it's not required for your business. For instance, it makes it easier to file your business taxes, get credit reports, hire employees, open a business bank account, and more.

Step 4: Obtain any licenses or business permits

You're now well on your way to setting up an interior design business. Once you've registered your business, you're ready to obtain the appropriate business licenses or permits. Like the registration process, this will also depend on where your interior design business will be located and which government regulations apply.

Depending on where you're located, you might need to meet specific interior designer license benchmarks as well: 24 states have passed interior design legislation to this effect.

Check with the Small Business Administration or your local chamber of commerce to see which city, county, and state permits you need to start your interior design business. You might also need a sellers permit and sales tax license, and if you have employees, you’ll need a federal employer identification number for tax purposes as well (if you didn't already set this up in the previous step).

Step 5: Open a business bank account and get a business credit card

The next step in starting an interior design business is to set up a business bank account and business credit card . Not only will this help you establish business credit, but it will also be vital to keep your business expenses separate from your personal spending for tax and funding purposes, as well as just more easily be able to manage your business finances.

While you may be tempted to go with the same bank that you have a personal account with, don't assume this is your best option. Business banking needs are different from your personal ones, and you'll want to consider things like minimum balance requirements, monthly fees, how many monthly transactions you'll be allowed, your need for ATM access, and more when choosing a business bank account.

The majority of businesses will benefit most from a business checking account , but if your interior design business starts making a profit and you can keep that money in a bank account instead of investing it back into the business, you may also consider a high yield savings account to help your money grow.

Likewise, you will want a business credit card that's separate from your personal one so you can easily keep track of your business expenses. Again, you'll want to consider what you need from a business credit card before choosing the best one for you.

Credit cards with a 0% introductory APR can be an especially appealing option for businesses that are just starting out and may not yet qualify for funding options. With these types of cards, you can purchase bigger items for your business upfront and pay them back without interest. Just make sure if you do opt for this strategy that you're aware of when the 0% APR offer ends and are confident that you can pay off your balance by that date.

Step 6: Explore funding options

As you consider the finances of your interior design business, you may find you need additional funding to get your business off the ground. The saying, "You need to spend money to make money," rings true for new businesses—especially in an industry like interior design where each project will require you to spend a significant amount of money on materials and supplies, while you may only receive payment once the job is completed.

Exploring your business loan options is a good idea to see what possibilities you have and what solution you can find for your business. You may find a startup loan is right for you, or a line of credit or invoice financing may be a better fit.

You should also think carefully about what parts of your business you will spend the money on, as well as how much you need and a plan for how you'll pay it back.

How to Iinvest in the basics

As Solomon advises, you don’t necessarily need to invest in an office space, especially when first starting out. There are other basics that you’ll need first, including:

Fabric samples and design accessories: Sample books with various styles, colors, and textures will help you and your client better understand each other’s vision for their space.

Room decor: Whether your office is on the main street in town or your home, having pieces from different manufacturers and collections gives your clients an understanding of your range, as well as ideas for their own project.

Professional group memberships: For example, joining the American Society of Interior Designers (ASID) gives you access to marketing and development advice and tools, professional education opportunities, and other benefits that depend on the regional ASID office. Mentorships and advice from those already established in the industry are especially valuable when you're first starting your interior design business.

Start Your Dream Business

How to start an interior design business: The bottom line

“Never forget that interior design is as much about how the client wants a space to feel as to how the client wants it to look ,” says Solomon.

This speaks to the fact that interior design is a unique business: It asks owners and directors to balance their own need for artistic expression with both practical logistics and the requests of the client. It's a complicated job, to be sure.

There’s plenty of the usual responsibilities that fall to small business owners in interior design—coordinating marketing efforts, hiring and managing employees, controlling inventory, and monitoring the supply chain. But there’s also the added element of creating the spaces in which people work, live, and play—a powerful form of expression that for many will be worth the challenges.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

How to Start Your Home Decor Business

Are you wondering how to start your home decor business ? The home decor industry has seen a significant rise in demand, making it an attractive and lucrative venture for entrepreneurs. In this article, we will explore the essential steps to take in order to launch your own successful home decor business. From market research to financial management, we will guide you through the process of getting started in this thriving industry.

The home decor business has become increasingly popular as people seek to personalize their living spaces and create stylish, comfortable homes. With the rise of interior design shows and social media influencers showcasing their beautiful homes, there is a growing market for unique and trendy home decor products. This trend presents a fantastic opportunity for individuals who are passionate about interior design and have an eye for aesthetics.

In the following sections, we will delve into the crucial aspects of starting a home decor business. We will discuss how to conduct market research to understand your target audience’s preferences and analyze potential competitors.

Additionally, we will explore the importance of creating a comprehensive business plan, understanding legal requirements, sourcing suppliers and products, establishing an online presence, managing finances, and effectively launching and marketing your business. If you’re ready to turn your passion for home decor into a profitable venture, read on for valuable insights and actionable steps.

Table of Contents

Market Research

One important aspect of market research is identifying your target market. This involves studying demographics, such as age, gender, income level, and location, to understand who your ideal customers are. By knowing who you are trying to reach, you can better tailor your product selection and marketing messages to appeal to this specific audience.

Another essential component of market research is analyzing the competition. Identifying existing home decor businesses in your area or within the same niche can provide valuable information about what works well in the industry and where there may be gaps or opportunities for differentiation. Understanding the strengths and weaknesses of your competitors can help you position your own business more effectively in the market.

Taking the time to conduct thorough market research will set a strong foundation for your home decor business. It will help you make informed decisions about your product offerings, pricing strategies, and marketing efforts, ultimately increasing your chances of success in this competitive industry.

Create a Business Plan

Creating a comprehensive business plan is crucial when starting a home decor business. This document serves as a roadmap for your business, outlining your goals, strategies, and the steps needed to achieve success. A well-thought-out business plan can also be a valuable tool when seeking financing or investment for your venture.

When creating your business plan, it’s important to start with a clear and concise executive summary. This section should provide an overview of your business concept, target market, financial projections, and the unique value proposition of your home decor products. Additionally, you will need to outline the organizational structure of your business, including key roles and responsibilities.

In addition to providing direction for your business, a comprehensive business plan can also help you identify potential challenges and develop strategies for overcoming them. By conducting thorough market research and analyzing industry trends, you can position your home decor business for long-term success in a competitive marketplace.

Legal Aspects

Starting a home decor business is an exciting venture, but it’s important to ensure that you have all the necessary legal aspects covered. Here are some key steps to consider when it comes to the legal side of your business:

• Registering your home decor business: Choose a unique and memorable name for your business and register it with the appropriate government agency. This will help you establish your brand and protect it from being used by others.
• Understanding the necessary permits and licenses: Depending on your location, there may be specific permits and licenses required to operate a home decor business. Research the local regulations and make sure that you obtain all the necessary permits to avoid any legal issues in the future.
• Protecting your intellectual property: Consider trademarking your business name, logo, or any unique designs that you create for your home decor products. This will prevent others from using or copying your intellectual property without permission.

Ensuring that you have all the legal aspects in place for your home decor business will provide peace of mind and set a solid foundation for growth and success.

Remember, consulting with a lawyer or legal professional specializing in small businesses can provide valuable guidance as you navigate these legal aspects for your home decor business.

Sourcing Suppliers and Products

Finding reliable suppliers.

When starting a home decor business, it is crucial to find reliable suppliers for your products. Whether you are looking for unique handmade items or trendy mass-produced pieces, having dependable suppliers can make or break your business.

Researching potential suppliers, asking for samples, and checking references can help you determine the best fit for your business. Building strong relationships with your suppliers is also important as it can lead to better pricing, quality control, and even exclusive products for your store.

Curating a Unique Collection

In the competitive home decor industry, standing out from the crowd is essential. Curating a unique collection of products can set your business apart and attract customers looking for something special. Consider offering one-of-a-kind items from local artisans or sourcing products from different parts of the world to bring diversity to your collection.

Pay attention to trends and customer preferences while also staying true to your brand’s aesthetic. Additionally, having a mix of high-quality merchandise at varying price points can cater to a wider range of customers and increase sales opportunities.

Quality Control and Testing

Once you have established relationships with suppliers and curated your product selection, it’s important to prioritize quality control and testing. Ensure that the products you offer meet safety standards and are well-made to avoid any issues with customer satisfaction or returns.

Conducting regular quality checks on new shipments and paying attention to customer feedback can help maintain the integrity of your product offerings. Investing in product testing and certification where applicable can also add credibility to your brand and reassure customers of the quality they can expect from your home decor business.

Setting Up Your Online Presence

In today’s digital age, having a strong online presence is essential for the success of any business, including a home decor business. Your online presence serves as your virtual storefront and can significantly impact your brand’s visibility and reach. Here are some key factors to consider when setting up your online presence for your home decor business.

The Importance of a Strong Online Presence

With the increasing number of consumers turning to the internet to shop for home decor items, having a strong online presence is crucial. A well-designed website and active social media accounts can help you showcase your products, connect with potential customers, and ultimately drive sales. Additionally, an online presence allows you to expand your customer base beyond local boundaries and reach a wider audience.

Setting Up an E-Commerce Website

An e-commerce website is a vital component of your online presence as it provides a platform for customers to browse and purchase your products from the comfort of their own homes. When setting up your e-commerce website, focus on creating a user-friendly interface, high-quality images of your products, detailed product descriptions, and secure payment options to ensure a seamless shopping experience for your customers.

Utilizing Social Media for Marketing

Social media platforms such as Instagram, Facebook, and Pinterest are valuable marketing tools for promoting your home decor business. Use these platforms to showcase your products, engage with followers through visually appealing content, run targeted ads to reach potential customers, and participate in industry-related communities and conversations. Building an active social media presence can help increase brand awareness and foster customer loyalty.

By establishing a strong online presence for your home decor business, you can effectively position yourself in the market and attract customers who are seeking stylish and unique decor solutions for their homes. Investing time and effort into creating an engaging website and leveraging social media can yield significant returns in terms of brand recognition and sales growth.

Financial Management

Starting a home decor business requires careful financial management to ensure long-term success. Here are some key steps to effectively manage the finances of your business:

1. Budgeting for Your Home Decor Business: Creating a detailed budget is essential to understand the financial requirements of your home decor business. Consider expenses such as inventory, marketing, rent, utilities, and employee salaries. It’s important to set realistic financial goals and allocate funds accordingly to avoid overspending.

2. Keeping Track of Expenses and Profits: Implement a system for tracking all expenses and profits generated by your home decor business. This can include using accounting software or hiring a professional accountant to maintain accurate records. Monitoring cash flow will help you make informed decisions about inventory management, pricing strategies, and investment opportunities.

3. Seek Financial Advice: If you’re new to the entrepreneurial world, consider seeking financial advice from professionals who specialize in small business management. They can provide valuable insights on tax obligations, cash flow management, and potential financing options for expanding your home decor business.

Effective financial management is crucial for the success of any business, including a home decor venture. By developing a strategic approach to budgeting, tracking expenses, and seeking expert advice when needed, you can ensure the long-term financial health of your home decor business.

Launching and Marketing Your Business

For any new business, the launch event is a crucial step in creating buzz and excitement around your brand. When it comes to starting a home decor business, the launch event can be an opportunity to showcase your unique products and style to potential customers.

It’s important to carefully plan the launch event, from the venue and decor to the guest list and promotional materials. Consider hosting a pop-up shop or participating in a local market to introduce your brand to the community.

In addition to the launch event, implementing effective marketing strategies is essential for attracting customers and building brand recognition. Utilize social media platforms such as Instagram and Pinterest to showcase your products and engage with potential customers. Creating visually appealing content that showcases your products in styled settings can help attract attention and drive traffic to your online store or physical location.

Collaborating with influencers or local interior designers can also help promote your home decor business. Consider offering free products in exchange for promotion on social media or partnering with influencers for sponsored posts. Leveraging partnerships and collaborations can help expand your reach and connect with potential customers who align with your brand’s aesthetic.

By carefully planning your launch event and implementing effective marketing strategies, you can successfully introduce your home decor business to the market, attract customers, and build brand recognition within the industry. With creativity and strategic planning, you can create a strong foundation for long-term success in the home decor industry.

In conclusion, starting a home decor business can be a rewarding and lucrative venture for aspiring entrepreneurs. The rising trend in the home decor industry presents ample opportunities for individuals to tap into this market and showcase their creativity and design skills. By conducting thorough market research, creating a comprehensive business plan, and understanding the legal aspects of setting up a business, aspiring entrepreneurs can lay a solid foundation for their home decor venture.

Sourcing reliable suppliers and curating a unique collection of products will set your home decor business apart from competitors. Building a strong online presence through an e-commerce website and social media marketing is crucial in reaching a wider audience and establishing brand recognition. Additionally, effective financial management and strategic marketing efforts will contribute to the success of your home decor business.

It’s important to remember that embarking on entrepreneurship in the home decor industry requires determination, hard work, and passion for design. Aspiring entrepreneurs should not hesitate to take the leap into this exciting industry and carve out their niche in the competitive market. With the right strategies and dedication, starting a home decor business can be a fulfilling journey towards building a successful brand in the world of interior design.

Frequently Asked Questions

How profitable is home decor business.

The profitability of a home decor business can vary depending on various factors such as the target market, pricing strategy, and the ability to source unique and desirable products. With the right approach and a keen understanding of market trends, a home decor business has the potential to be quite profitable.

How Do I Start My Own Home Decorating Business?

Starting your own home decorating business involves several key steps. First, it’s important to develop a solid business plan that outlines your target market, unique selling proposition, and financial projections.

Next, you’ll need to register your business, obtain any necessary licenses or permits, and set up a professional online presence. Building relationships with suppliers and manufacturers will also be crucial for sourcing inventory.

Where Do I Start With Decor?

A good starting point for entering the world of decor is to establish a clear vision for your style preferences and design aesthetic. Consider creating mood boards or gathering inspiration from various sources such as magazines, websites, and social media platforms.

Additionally, familiarizing yourself with color theory, spatial layout principles, and industry trends will provide a strong foundation for beginning your decor endeavors.

I’m thrilled to be your companion on this exciting journey through the world of home decor and design. With a passion for turning houses into homes and a keen eye for the finer details, I’m here to help you transform your living spaces into beautiful, functional, and meaningful havens.

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How To Start A Home Decor Business

• Last Updated: October 23, 2023
• By: Greg Bouhl

Advertising Disclosure

Do you have an eye for coordinating items into a cohesive ensemble for living spaces? The home decor industry spans a range of products, from furniture and lighting to art, textiles, accessories, and more.

While creativity is critical, turning your passion into a profitable business requires more than just talent. This guide will walk you through the basics so you can confidently launch your home decor venture.

Business Description

A home décor business displays and sells furniture and home decor items that customers use to decorate their homes. These products can range from furniture and light fixtures to rugs, artwork, and other decorative pieces. The business model may also include offering interior decorating services, where you work with clients to design and decorate their spaces.

Individually owned stores acquire furniture and home décor items from various sources and display the items for sale in a showroom or on a website. These home décor stores sell brand-new items, name-brand items, or discounted furniture from off-brand wholesalers, discontinued lines, or refurbished inventory.

Related Business Ideas

Antique Store Furniture Repair Furniture Store Home Staging Interior Design Party Rental Picture Framing Souvenir Shop See the full library of business ideas >>

Industry Summary

The home decor industry is expected to bring in $62.1 billion in 2023. Over the past five years, the industry has grown at .5% each year.

Competition is high, as major retailers like IKEA, Crate and Barrel, and specialty boutiques compete for customers. However, small businesses can find a niche by providing personalized service and curated, unique products. Focusing on a specific style, price point, or geographic area can help you differentiate yourself.

Shifting lifestyle trends also present opportunities as busy professionals seek quality furnishings tailored to small spaces and multipurpose rooms. Consumers increasingly value unique, customized home decor that reflects their personal tastes over mass-produced items. They also show a greater preference for environmentally sustainable, ethically made products. Retailers who can leverage these growth factors through specialized offerings, customization, sustainability, and curated selections will be well-positioned to capitalize on the industry’s steady expansion.

Target Market

Individuals and businesses are the two main markets for home décor businesses. Individuals shop at home décor retailers to furnish, decorate, and organize their homes. Similarly, businesses, such as offices, restaurants, and studios, need home décor stores to furnish their businesses.

Arguably, a large market for home décor businesses is new home buyers. These buyers have a new space that needs to be styled and decorated. In addition to new home buyers, other groups who need a home décor business include those who:

• Are redecoration or remodeling
• Are downsizing or upgrading their space
• Have added family members or housemates

Steps To Start A Home Decor Business

Starting your own home decor business can be a great way to turn your passion for interior design into a career. But, like any other business, there are a few key steps you need to take before you can get started. Here is a checklist of the major steps you’ll need to take to get your business off the ground.

Step 1:  Research the Market

Before you dive into the home decor business, knowing your market is crucial. You might think your unique designs will win everyone over, but that’s not enough. This research will help you make sure there’s a demand for what you want to offer. Though it’s not an exact science, market research can give you valuable insights and reduce the risks involved.

The first question to answer at this stage is, who exactly are you selling to? One of the most important aspects of starting a business is understanding your target market. With home decor, it’s important to identify the age, income, geographic location, lifestyle factors, and purchasing behaviors of your ideal customers. By conducting market research and consumer surveys, you can gain insights into your target customers to align your product offerings better.

Next, take a look at your competitors. Look at businesses that are directly competing with you as well as those that are slightly different but still operate within the home decor space. Assess their product range, pricing strategy, and how they market themselves. This will not only help you find an untapped niche but also let you identify strategies that have proven successful. To get more in-depth knowledge, consider going undercover as a mystery shopper to experience competitors’ customer service, store layout, and operations first-hand. This on-the-ground research can provide invaluable insights into where you can differentiate your own business.

Market research isn’t foolproof, but it’s an essential first step. You want to go into this adventure with as much knowledge as possible to potentially save you from investing time and money into a venture that’s not yet viable. So, do your homework, find your niche, and be prepared to pivot or refine your business idea based on what you learn.

Step 2:  Write a Business Plan

Writing a business plan is the next step after market research. Not only does it serve as your roadmap, but it also becomes a vital document when seeking funding. Financial projections, alongside other key sections, help lenders and investors gauge the potential and risks of your home decor business.

There are a few key sections that funders will closely scrutinize, which includes:

Market Analysis:

In the Market Analysis section, go beyond merely presenting statistics and forecasts. This is your opportunity to answer the question: Why will your home decor business succeed? Maybe you’ve identified an untapped market segment, or perhaps your business will focus on a trending design style that’s currently underserved. Your objective here is to show a deep understanding of the market needs and demonstrate how your business is uniquely positioned to fill a gap.

Management Team

Investors and lenders often put a lot of weight on the management team, which includes the owners of the business. The success of a business is often closely tied to the people behind it. Highlight your team’s experience, skills, and qualifications, demonstrating how these will contribute to the success of the business.

Whether you’re planning a brick-and-mortar store or an online business that ships products across the country, the Location section is crucial. For physical stores, discuss the traffic patterns, proximity to similar businesses, and how the location fits your target demographic. For online stores, explain your digital marketing strategies to capture your desired market. The aim is to convince the lender that your chosen location amplifies your business’s chance for success.

Financial Projections

Banks and investors will pay close attention to the Financial section. They’ll want to see realistic projections showing that the business will be profitable. You’ll need to explain how you arrived at these numbers, so make sure you understand them thoroughly. Include sales forecasts, income statements, cash flow statements, and balance sheets for the next three years.

Before you submit your business plan to lenders, have someone with experience, be it another business owner or an accountant, scrutinize your plan. This second pair of eyes will help you catch errors or omissions and provide valuable feedback on the plan’s feasibility. Having someone challenge your assumptions could be the difference between a well-received plan and one that falls flat.

Related:  How to write a business plan

Step 3:  Secure Funding

Starting a home decor business requires not only creativity and passion but also a significant financial investment. Making sure you have access to the money is an important step in launching your business and here are several sources of funding to consider:

Personal savings : Using your savings is often the easiest and fastest way to access startup capital. It avoids interest and loan payments. However, make sure not to wipe out your emergency fund if your business launch doesn’t go exactly as planned.

Friends and family : Some entrepreneurs turn to their inner circle for financial support. While this can be a quick and uncomplicated way to raise funds, it can also put personal relationships at risk if the business struggles. Make sure you outline the terms clearly, just like you would with any other investor.

Small business loans : Banks are a common source of funding for small businesses. However, they typically require a borrower to invest at least 15% of their personal funds towards the project’s total cost. In addition, a good credit score and sufficient collateral are usually necessary. If a bank considers the loan too risky, they might use an SBA loan guarantee to secure the funding.

Line of credit : Establishing a line of credit can give you the flexibility to draw funds when needed and pay back on more flexible terms. This can be particularly useful for covering operational costs like inventory and payroll.

Microloans: If your funding needs are low or you’re unable to obtain credit through a lender, microloans could be an option. These are small loans, often accompanied by business training, offered by local economic development organizations.

Related:  Finding the money to start a business

Step 4: Register the Business

Starting a home decor business involves more than just a great eye for style; it also requires navigating the legalities of setting up a business. Here are some key steps to follow:

Business structure: Before you do anything else, you’ll need to decide on the structure of your business. There are four primary types:

• Sole proprietorship : This is the simplest form. It’s easy to start and has lower costs but offers no liability protection. You’re personally responsible for all debts and obligations.
• General partnership : Two or more individuals manage the business. Like a sole proprietorship, there is no separation between personal and business assets.
• Corporation : This structure separates personal and business assets and allows you to sell shares of your company. It offers liability protection but requires more paperwork and following corporate procedures.
• Limited Liability Company (LLC) : This is a hybrid that offers the liability protection of a corporation and the ease of operation of the sole proprietorship and partnership.

For a home decor business, an LLC is often the most common structure due to its flexibility and liability protection.

Related: Comparison of business structures

Forming an LLC sounds complicated and expensive, but using an entity formation service guides you through the process so you know it was done right.

Some popular LLC formation services include:

IncFile  - $0 plus state fees & free registered agent for 1 year!

ZenBusiness  - Best for beginners. $0 plus state fees & free registered agent for 1 year!

Northwest  - Best privacy protection. $39 plus state fees & free registered agent for 1 year!

Business name registration: After registering the business structure, you may need to register your business name. This process will vary depending on what business structure you pick. Sole proprietors and partnerships will often be required to register a “Doing Business As” (DBA), while corporations and LLCs register with the state during the formation process.

During this time, it’s also a good idea to check if the name you want is available as a web domain, even if you’re not ready to set up a website yet.

Related: Finding a domain name for your business

Obtain business licenses and permits: As with any new business, it’s important to make sure all of the necessary licenses and permits are secured before opening your doors.

The specific licenses required for a home decor business will vary depending on your location and the services you offer, but some common ones include a business license, a sales tax permit, and an Employer Identification Number. It’s also important to consider whether or not you need zoning permits for your physical storefront.

Related:  Common business licenses, permits, and registrations by state

Step 5:  Acquire & Set Up the Store

After squaring away funding and registering the business, acquiring a location and setting up a facility is the next step in launching your home decor business. Whether it’s a physical storefront or an online platform, the space you choose can heavily influence your business’s success.

If you’re going for a physical retail space, location is key. You need a place that’s easy for customers to find and convenient for them to visit. Look for areas with high foot traffic, but don’t forget about parking. Ample parking facilities make it convenient for customers to visit your store, especially if they plan to purchase larger decor items. Signage visibility is another factor; your store needs to be seen to be visited. The more visible and accessible your storefront is, the more potential customers you’ll attract.

Once you’ve secured your retail space, it’s time to design a floor layout that promotes sales. The layout needs to be both functional and appealing, leading customers through a journey from the moment they walk in. Well-organized pathways and clearly designated areas for different types of home decor will help shoppers find what they’re looking for, increasing the likelihood of purchases.

Equally important is how you outfit your store. The fixtures you choose, from counters and shelving to lighting, should not only be functional but also align with the aesthetic of your brand. Good lighting can make your products look their best and can create a welcoming atmosphere. When it comes to setting up displays, consider how they’ll catch the eye. Merchandise should be displayed in a manner that is easy to access, encourages interaction, and embodies your brand’s style. Invest in quality display units that make your products look their best.

If you’re also considering an online store, or only an online store, the principles are somewhat the same. The “location” is your URL, and the layout is the website design. You won’t need to worry about parking, but website navigation should be as straightforward as possible to guide customers to check out smoothly.

Step 6:  Begin Working with Manufacturers

In order to launch a home decor business, the selection of manufacturers can make or break your success. It’s important to do ample research and choose manufacturers who have the merchandise your customers will want to buy. In the home decor industry, suppliers can range from large manufacturing companies to individual artists and craftspeople. Depending on what you plan to sell, your suppliers could be as diverse as furniture makers, textile producers, and even artists who create one-of-a-kind pieces.

Start by determining what type of products you want to sell. This will help narrow down potential manufacturers in your industry. Next, gather information on their practices and ethics, as well as their track record in terms of quality and timeliness. Consider visiting the manufacturing facility in person to see their processes firsthand and ask questions about their production methods. Finally, take the time to negotiate terms and fees before making any commitments.

Step 7:  Hire Staff

When starting a home decor business, you may find the need to hire employees to assist in various roles. Common positions in such businesses include retail associates who manage the storefront and sales, designers who can provide expert advice on home decor selection and arrangement, and possibly warehouse or logistical staff if you have a significant inventory to manage.

As a new employer, it’s necessary to be aware of the legal requirements associated with hiring. Here is a brief overview:

Obtaining an EIN : An Employer Identification Number (EIN) is a unique number assigned by the IRS to businesses for tax reporting purposes. You’ll need an EIN to report information about your employees to state and federal agencies.

Employment eligibility : As an employer, you are required to verify the employment eligibility of your employees. This typically involves completing an I-9 form for each employee and checking their identification documents.

State reporting : Employers are required to report new hires to a designated state agency. This helps states enforce child support orders and reduce fraudulent claims for public assistance, unemployment insurance, and workers’ compensation. Each state has different requirements, so it’s important to check with your state’s labor department or an employment attorney.

Worker’s compensation : Most states require employers to carry workers’ compensation insurance, which provides benefits to employees who suffer work-related injuries or illnesses.

Labor laws : Employers are required to comply with various labor laws, including minimum wage requirements, overtime rules, leave policies, and safety regulations. These laws can vary by state, so it’s important to familiarize yourself with the regulations in your specific location.

Once you’ve taken care of these legal requirements, you can move forward with recruiting and hiring qualified candidates for your home decor business. Training will be an essential part of this process, ensuring employees are well-versed in your products, customer service standards, sales techniques, and company values.

Related: State guides for hiring your first employee

Step 8:  Create a Marketing Strategy

Launching a new home decor business is a significant endeavor, and marketing is a crucial part of that journey. There are a variety of ways to spread the word about your products and services, but it is valuable to have a game plan before opening your store.

One option is to connect with local interior designers, architects, real estate agents, and home builders to let them know about your store opening, so they can refer clients to you. Since you are in the business of selling good design, be sure all of your marketing materials, from business cards, brochures, website, and store signage are professional.

Additionally, don’t underestimate the power of social media. Set up profiles on social media platforms like Instagram and Facebook and showcase your products, special offers, and client projects. You can also consider hosting events or workshops at your store as well, where potential customers can interact with your products in person.

With a little creative thinking and effort, you’ll have no problem getting the word out about your new home decor business.

Related:  Low-cost ideas to market a new business

Step 9:  Prepare to Open!

As you get closer to launching your home decorating business, there are still several steps to take care of. Every business’s needs will be different based on factors like size, location, and business model. These tasks represent some common loose ends that most new home decor businesses will need to tie up before getting started.

Business insurance : This is a must-have for any business. It provides protection against unforeseen circumstances like accidents, natural disasters, and legal challenges. Different types of insurance may be needed based on your specific business operations.

Setting up bookkeeping : Proper bookkeeping is essential to manage your finances effectively. This includes tracking sales, expenses, and taxes, among other financial elements. You might consider using accounting software like Wave Accounting (FREE) or Quickbooks or hiring a professional accountant to ensure accuracy.

Opening a business bank account : Separate your personal and business finances by opening a dedicated business bank account. This makes it easier to track your business finances.

Accepting credit cards : Make it easy for customers to shop with you by accepting credit card payments. This involves setting up a merchant account with a bank or payment processing service like Square or Stripe .

Joining industry associations : Associations like the Home Furnishings Association, the American Society of Interior Designers, or the American Home Furnishings Alliance can provide valuable networking opportunities, professional development resources, and industry insights.

Preparing for the grand opening : Plan a grand opening event to generate buzz and attract initial customers. This could involve special promotions, refreshments, or even inviting a local celebrity or influencer.

Common Questions When Starting A Home Decor Business

How much does it cost to start a home decor business.

Starting a home décor business can feel like a choose-your-own-adventure story. Your store could operate entirely online, keeping costs low, or you may choose to open a franchise or a showroom to display inventory. Whatever adventure you choose can be profitable, but the costs will vary. Expect between $25,000 to $130,000 for a physical storefront. The major start-up costs include retail space, inventory purchases, store build-out and fixtures, permits and licenses, insurance, marketing, and more.

Location costs: One of the biggest expenses will be the retail space. In most cases, you’ll need to provide an initial deposit that’s equivalent to one to three months’ rent. If rent is $2,000 a month, your deposit could range from $2,000 to $10,000. The amount might vary based on location and the terms of your lease agreement. Depending on the space, renovations may be costly.

Inventory costs: Stocking your store with high-quality home decor items is crucial. Depending on your supplier and the range of products you’re planning to offer, this could set you back $10,000 to $100,000 initially.

Furnishing and setup: Tables, shelves, cash registers, computers, and initial utility setup could add another $5,000 to $10,000 to your starting costs.

Business registration: Expect to pay around $500 to $1,000 for various permits and licenses. This varies by jurisdiction and could be more if you’re dealing with complex zoning laws.

Insurance: Initially, you may have to pay for liability insurance and property insurance upfront, which could be around $1,000 to $2,000 in total.

Marketing: For the initial launch, you may spend around $2,000 to $5,000. This includes everything from a grand opening event to initial online advertising to attract your first customers.

Miscellaneous costs: You might also have smaller costs, like office supplies, that can add up. Factor in an extra $1,000 to $2,000 for these.

It’s also a good idea to have 3-6 months of operating expenses in the bank as a buffer. This gives you additional funds to cover costs before establishing consistent sales and cash flow. Having sufficient capital upfront is key to successfully launching a home decor business.

How profitable is a home decor business?

According to industry statistics, a typical home decor store generates an average annual revenue of about $500,000. Taking into account standard industry profit margins and expense ratios, a rough profit estimate can be calculated. A

The math breakdown is:

$500,000 in annual revenue x 40% gross margin percentage = $200,000 gross profit.

From this gross profit, you would then deduct your operating expenses such as rent, salaries, utilities, marketing, and other costs. Let’s say these expenses amount to $125,000 for the year. This would leave you with a net profit of $75,000 ($200,000 – $125,000) for the year.

This simplified estimate uses industry benchmark ratios to demonstrate how a home décor retailer with $500,000 in annual sales could potentially achieve $75,000 in pre-tax profit. Performance would vary based on actual sales and cost management. But these standard industry formulas provide a reasonable indication of the profit possibilities for a home decor business owner.

What skills are needed to run a home decor business?

From accounting to purchasing, styling a showroom, and delivering items, having a base set of skills will help your business be successful. The skills listed below will help operations run smoothly if you operate online or face-to-face with customers.

An eye for design: Customers rely on the expertise of home décor businesses to help them find the perfect piece to match the style and needs of their home. Understanding design elements and what works versus what clashes are essential skills for staging your showroom. An eye for design also helps to sell items and counsel customers through purchases.

In addition, being able to style and place items pleasingly and functionally looks great and helps your marketing efforts. Professional-looking pictures for your website or social media accounts enable you to market your products and draw intrigue.

So, although you don’t need a degree in interior design to start this business, it doesn’t hurt to have a keen sense of style, taste, and design terminology to help your clients get the look they’re after.

Management: A home décor business requires organization and management. For instance, some areas needing management include appointment scheduling, deliveries, inventory purchases, employees, and item staging.

So, being able to organize the business’s countless tasks makes the difference between chaos and calm. Fortunately, organization is a skill that can be learned, and planners, apps, and calendars are helpful tools that keep your business on track.

Negotiation and sales: A major part of home décor businesses is negotiating for items from sellers and reselling the inventory at a higher price. Therefore, negotiating and selling are valuable skills to help you acquire the perfect items and sell them for a profit.

Marketing: A well-rounded marketing plan contributes to your business’s success. To make sales, you need customers, and marketing gets those customers. If marketing is not one of your strengths, then hiring a marketing expert is an excellent way to get help with planning your advertising and marketing strategy.

What is the NAICS code for a home decor business?

The NAICS code for a home decor business is 442299, which is classified under All Other Home Furnishings Stores.

The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.

Related: What is a NAICS code?

Final Thoughts

Although home décor businesses have had their challenges the last few years, there is money to be made yet. Many people are returning to in-store shopping, and businesses are increasingly providing an online shopping experience. So as both consumers and businesses meet partway, there is still an opportunity to make money.

With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

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Examples of Home Décor Business Ideas If you love home décor then why not open your own business? Here are 10 examples of home décor business ideas you can gain insights and strategies from.

By Nicole Crampton • Jul 24, 2019

You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.

Not every person is gifted with the skills and talent to decorate and furnish their homes and gardens. There are customers that will need your help to create the perfect home. If you're passionate about home décor, then this could be the business idea for you.

Before you launch your business, here are 10 examples of home décor businesses you can learn from:

1. Whole Room Or Whole Home Makeovers

If you're good at decorating a room or home, to highlight its strengths and downplay its weakness, then this could be the home décor business idea for you. Before you launch your start-up, here is an example of a home décor business you can gain insights from:

Business Name: The Fast Makeover Company

Website: http://www.tfmc.com.au/

About the business:

The Fast Makeover Company aims to deliver every project on time and on budget, eliminating stress and financial worry for their clients. They have expert advice and solutions to transform properties into their full potential.

Innovative business offering

In addition to their expertise and knowledge, The Fast Makeover Company also offers full/partial renovations, preparation of the property to sell or a fast makeover.

2. Home Décor, Crowdsourcing Platform

If you like the idea of creating a platform where customers can find every and all kinds of home décor businesses, then this could be the home décor business idea for you. By creating a platform not only are you making it easier for customers to find what they're looking for, you're helping businesses to be found.

Related: 25 Of The Most Successful Business Ideas In South Africa

Here is an example of a home décor business you can gain strategies from:

Business Name: Thumbtack

Website: https://www.thumbtack.com/

Established Date: 2008

Thumbtack is a platform that ensures customers can find and hire small businesses across the USA. Their aim is to build local economies and stronger communities. How the platform works is they get free estimates from local professionals, customers then compare prices and reviews, and the client hires their favourite.

In addition to offering this home décor platform, Thumbtack also caters to professionals of all types from magicians through to piano lessons, they cover it all.

3. Furniture Re-Upholsterer

After some time, furniture specifically chairs, and couches need restoration. If this idea appeals to you, you can start your own home décor business re-upholstering chairs. You can offer to replace the padding, springs, webbing, as well as fabric and leather covers.

Before you get started with your new business, here is an example of a home décor business you can use to gain insights from:

Business Name: Boksburg Upholsterers

Website: http://boksburgupholsterers.co.za/

Established Date: 1964

Boksburg Upholsterers personalise their service to their client whether it's an individual or a complete corporate revamp. They are also passionate about antiques and enjoy refurbishing collectables.

In addition to the upholstery and refurbishment services, Boksburg Upholsterers also offers Creation 2000 for their customers blinds needs, and a showroom for their clients to see examples of their work.

4. E-decorating Service

Making decisions when redecorating can be hard for clients, especially those new to decorating with little-to-no experience. Online e-decorating services can help customers to articulate their preferences and narrow down their choices.

If you're interested in interior design, this could be the home décor business idea for you. Before you launch your start-up, here is an example of an e-decorating service you can gain some insights from:

Related: 10 Business Ideas Ready To Launch!

Business Name: Stellar Interior Design

Website: http://www.stellarinteriordesign.com/

Stellar Interior Design offers online interior design services and packages for all budgets. Their online service provides their clients with a master plan for creating a professionally designed space or entire home.

In addition to their online interior design services, Stellar Interior Design also offer in-person interior design, as well as commercial and hospitality interior design.

5. Home Window Dresser

Do you have an affinity for curtains, blinds, railings and how to frame a window? Then this could be the home décor business idea for you. Before you start launching your business, here is an example of a home décor business that can offer you insights and strategies to ensure your business becomes sustainable:

Business Name: The Window Dresser

Website: http://thewindow-dresser.net/

Established Date: 1998

The Window Dresser offers a free consultation and estimating service in the clients home or from their store. They also offer a book borrowing service for home selection of fabric and wallpapers covering all tastes and budgets.

In addition to window dressing services, The Window Dresser sells only hand crafted and stitched products in their store to ensure quality. They also will try to price match anything their client needs.

6. Resale Sites

Do you like the idea of hosting a website that will help second-hand furniture have renewed lives with new families? Then this could be the home décor business idea for you. Before you start designing your website, here is an example of a home décor business you can gain some insights from:

Business Name: Kaiyo

Website: https://kaiyo.com/

Kaiyo is an online marketplace for pre-owned furniture that's made to last. This furniture sharing service, collects curated, top quality, furniture from local owners and provides discounted sales online. They pick up, store, inspect, clean and deliver every piece of furniture.

In addition to their marketplace, Kaiyo also offers customers the option to buy and sell second-hand furniture. Their aim is to offer a sustainable option for customers looking for furniture.

7. Home Accessories Decorator

There are many busy professionals who want somewhere cosy to recharge after work but just don't have the skills or the time to do it. Can you turn a house into a home? Then this could be the home décor business idea for you.

Related: The Ultimate 101 List Of SA Business Ideas To Get You Started

Before you launch your start-up, here is an example of a home décor business you can gain insights from:

Business Name: Romanza Interior Design

Website: http://www.romanza.com/

Romanza Interior Design aims to help their customer create their dream home, update or customise their existing residence, or add finishing touches. They also offer furnishing design services to assist their customers with every facet of their home's interior such as finishing details to fabrics, furnishings, art and accessories.

In addition to furnishing design services, Romanza Interior Design is also a full-service boutique interior design firm specialising in high-end residential design.

8. Designer Rooms

If you're interested in interior design, you can offer your customer entire completed rooms for sale that look professional and polished. Not only does this offer physical examples your customers will be able to stand in, it will also give them a starting point from which to decide.

Before you start building your rooms, here is an example of a home décor business you can gain insights from:

Business Name: Twelve Home

Website: https://twelvehome.com/

Twelve Home offers pre-designed room schemes with custom, made-to-order soft furnishings, lighting, rugs, wall art and wall treatments. This ensures their customers can live stylishly without actually requiring the services of an interior designer.

In addition to their pre-designed room offerings, Twelve Home also offers free swatches so their customers can feel each fabric in the comfort of their home. This helps customers to see what the colour and fabric type will look like in the light of their home.

9. Eco-Friendly Home Decor Services

The environmentally friendly movement continues to grow, why not cater to clients looking for greener interior design options. Are you environmentally conscious? Then this could be the home décor business idea for you.

Related: 11 Uniquely South African Business Ideas

Before you launch your new environmentally friendly business, here is an example of a home décor business you can gain some strategies from:

Business Name: Greenifyi

Website: http://www.greenifyi.com/

Greenifyi is a design business pioneering in various environment-friendly technologies. They focus on utilising the space in a functional yet attractive manner, while using environment-friendly materials and technologies.

Innovative business offering:

In addition to environmentally-friendly interior design, Greenifyi also offer green building products, such as recyclable cold-form steel, with finishing's using a combination of built-up high-tensile M.S. and cold-formed steel.

They also offer bamboo buildings as their second technology and continue to work towards developing more technologies for building environmentally-friendly buildings.

10. Work Directly With Makers And Manufacturers

The home décor industry traditionally has a long supply chain. This can create inflated prices for customers. Start-ups are changing this by working directly with manufacturers and keeping the price tag down. If this sounds good to you, this could be the home décor business idea for you.

Here is an example of a home décor business you can gain insights from:

Business Name: Furniture Spot

Website: https://www.furniturespot.co.za/

Furniture Spot work directly with furniture makers and only have online stores, this ensures they can offer high-end lifestyle designs to everyone, everywhere at a fair price.

In addition to working directly with furniture makers to reduce prices, Furniture Spot also offer custom furniture design options to their customers. They use only the best craftsmen to make their furniture. The item will then be created and delivered to the customers doorstep.

Related: 20 Innovative Business Ideas Doing Well Overseas (That Could Make You Money In SA)

Entrepreneur Staff

Sales Enablement - Content Developer

Nicole Crampton is an SEO specialist who contributes to Entrepreneur.com/za. She has studied a BA Journalism at Monash South Africa and has continued her studies with a Creative Writing degree from UNISA. Nicole has completed several courses in writing and online marketing, and continues to hone her skills and expertise in digital media, digital marketing and content creation.

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10+ Best & Profitable Home Decor Business Ideas [2023]

By Nick Cotter Updated Feb 07, 2024

Our List of 10+ Best Home Decor Business Ideas:

Home staging and interior design, custom furniture building, window treatment and upholstery, wallpaper installation and painting, art and sculpture, rug cleaning and restoration, home organization, home accessories and decor, home automation, landscaping and garden design.

Hey there, future entrepreneur! We see you, sitting there in your living room, eyeing that empty corner and imagining it filled with a stylish piece of decor. You have a knack for making spaces look beautiful, don't you? And guess what? That's more than just a hobby. It's a potential goldmine!

Yes, you heard it right. Your love for home decor could be your ticket to financial freedom. In fact, the home decor market is booming, and it's set to soar even higher in 2023. But where to start, you ask? Don't worry, we've got you covered.

Get ready to turn your passion into profit as we unveil the 10+ best and most profitable home decor business ideas for 2023. Whether you're a seasoned decorator or a beginner with a dream, this guide is your stepping stone to success. So grab a cup of coffee, settle in, and let's dive into the world of home decor entrepreneurship together.

Have you ever walked into a beautifully decorated home and immediately felt inspired? That's the power of home staging and interior design. Not only can it transform a space into a stunning oasis, but it can also make a profitable business idea.

• What is Home Staging?

Home staging is the process of preparing a property for sale by creating an atmosphere that appeals to potential buyers. This process can include rearranging furniture, decluttering, and adding décor to make the space appear more inviting.

• What is Interior Design?

Interior design is the art of enhancing the interiors of a space to achieve a more aesthetically pleasing and functional environment. Interior designers work with different styles, colors, patterns, and textures to create a space that reflects a client's personality and meets their needs.

• Why Would Home Staging and Interior Design Make a Good Business Idea?

There are several reasons why home staging and interior design make a great business idea:

• The real estate market is always booming, creating a consistent demand for home staging services.
• Interior design is no longer reserved for the wealthy, and people of all income levels are seeking to enhance their living spaces.
• Homeowners understand the importance of a well-staged home in selling their property and are willing to invest in this service.
• Home staging and interior design are industries that are not easily affected by economic downturns, making it a stable business idea.

In conclusion, if you have an eye for design, a passion for creating beautiful spaces, and an entrepreneurial spirit, home staging and interior design could be the perfect business idea for you.

Are you tired of seeing the same furniture options in every room you enter? Are you looking for a unique way to bring your personal style into your home? Consider starting a custom furniture building business!

• Custom furniture building allows for unique and personalized pieces that cannot be found in big box stores.
• Customers can choose their preferred materials, finishes, and design specifications.
• The market for high-quality, custom furniture is growing, especially as people are spending more time in their homes.
• Custom furniture builders can charge higher prices for their one-of-a-kind creations, resulting in a profitable business model.
• Word-of-mouth recommendations and social media platforms can help to grow your customer base.
• Collaboration opportunities with interior designers and home decor stores can also expand business opportunities.

By starting a custom furniture building business, you can tap into the desire for unique and personalized furniture options while fulfilling your passion for creating beautiful and functional pieces.

Examples of successful businesses:

The home decor business industry is extremely competitive and the following companies have managed to remain successful over the years:

• Bed Bath & Beyond
• Pottery Barn
• Kirkland's
• Hobby Lobby
• Lowe's Home Improvement
• HomeGoods/TJ Maxx

If you're thinking of starting a business and have an eye for design, consider offering window treatment and upholstery services. Here's what you need to know about these two related industries:

• Window treatment : A window treatment is any type of covering that is placed over a window for privacy or decoration purposes. This can include curtains, blinds, shades, and shutters. Window treatments can be functional or purely decorative, depending on the needs of the homeowner or business owner.
• Upholstery : Upholstery involves the process of covering furniture with materials such as fabric, leather, or vinyl. This can include sofas, chairs, ottomans, and other types of seating. Upholstery not only provides comfort but can also add style and personality to a room.
• Why it makes a good business idea :
• Homeowners and business owners are always looking for ways to refresh and update their spaces.
• Window treatments and upholstery are both affordable ways to transform a room without having to do a complete renovation.
• These industries offer a wide variety of options, from classic and traditional to modern and trendy, giving entrepreneurs the opportunity to cater to different tastes and preferences.
• High-quality window treatments and upholstery can add value to a property, making these services a worthwhile investment for customers.

With some creativity, expertise in design, and a passion for helping customers transform their spaces, starting a window treatment and upholstery business can be both fulfilling and profitable.

More resources:

Are you searching for a new business venture? Look no further than wallpaper installation and painting! This age-old craft may not be the first idea to come to mind, but it is a lucrative industry with a steady demand. Let's take a closer look at what it entails and why it could be the perfect business idea for you.

• What is wallpaper installation and painting? Wallpaper installation and painting is the process of applying wallpaper or paint to interior walls, ceilings or other surfaces of a building to enhance its beauty and durability. It involves careful surface preparation, proper layout planning, and precise application techniques to achieve a professional finish.
• Why is it a good business idea? There are several reasons why wallpaper installation and painting are ideal business ideas:
• High demand: Homeowners and business owners are always in need of painters and wallpaper installers to upgrade their space or perform necessary repairs.
• Recurring business: When done right, wallpaper and paint jobs can last for years, but eventually, surfaces require touch-ups or full rebounds, providing repeat business for you.
• Flexible schedule: As your own boss, you can set your own hours and schedule jobs according to your availability.
• Low startup costs: You can start small and gradually build your business without a significant investment.
• What skills do you need? To be successful, you should possess the following skills:
• Attention to detail
• Strong work ethic
• Customer service skills
• Good communication skills
• Ability to work independently
• Understanding of proper painting and wallpaper techniques

With proper training and dedication, wallpaper installation and painting can be a fulfilling and profitable career path. So what are you waiting for? Roll up your sleeves, get your tools ready, and start building a business that can stand the test of time.

Art and sculpture are forms of visual expression that have been around for centuries, influencing cultures and societies throughout history. From paintings and drawings to sculptures and installations, art has the ability to communicate and elicit emotions in a powerful way.

• Art and sculpture can be used for a variety of purposes, including personal expression, cultural representation, social commentary, and commercial branding.
• There is a wide range of styles and mediums to choose from, allowing for endless possibilities and opportunities to create something unique.
• The market for art and sculpture is a global one, with collectors and enthusiasts from all around the world willing to pay top dollar for impressive pieces.
• In addition, the rising popularity of art fairs and online galleries has made it easier for artists and businesses to get their work seen by a larger audience.
• An art and sculpture business can take many forms, such as a gallery, an online marketplace, or a commission-based service for custom pieces.
• While it can be a challenging industry to break into, a successful art and sculpture business can be incredibly rewarding both financially and creatively.

Whether you're an aspiring artist or a savvy entrepreneur, the world of art and sculpture presents a unique opportunity to create something beautiful and meaningful, connect with others, and make a profit.

Related business ideas:

Rug cleaning and restoration is an essential service for people who own high-quality rugs, carpets or tapestries. Over time, rugs tend to collect dust, dirt and stains which can damage the fibers, fade the colors or even lead to mold and mildew. Professional rug cleaning and restoration can effectively remove dirt and stains, as well as extend the lifespan of a rug.

Here are some reasons why starting a rug cleaning and restoration business can be a great opportunity:

• Low competition: Rug cleaning and restoration is a specialized service that requires knowledge, expertise and equipment that not many businesses possess. This means that a rug cleaning and restoration business can have a competitive edge and charge higher prices.
• Repeat customers: Rugs need regular cleaning and maintenance, which means that a rug cleaning and restoration business can have repeat customers who require their services every few months or every year.
• High-profit margins: Rug cleaning and restoration can command higher prices than standard carpet cleaning, especially for antique or high-end rugs. This means that a business can earn high-profit margins even with a low volume of clients.
• Opportunities for expansion: A rug cleaning and restoration business can also provide additional services such as repair, stain removal or storage. This can broaden the scope of the business and attract more customers.
• Good reviews: A rug cleaning and restoration business that delivers high-quality services can generate positive reviews and word-of-mouth referrals, which can attract new customers and establish a reputation in the industry.

In conclusion, starting a rug cleaning and restoration business can be a profitable and rewarding venture that caters to a niche market with high demand and low competition.

Home organization refers to the process of decluttering, sorting, and arranging items in a home or living space. It involves finding efficient ways to use space and storing items in designated areas. Recently, home organization has become a popular trend as people seek more functionality and order in their lives.

• A home organization business provides solutions for households struggling with a chaotic living situation.
• The demand for home organization services has increased due to the growing need for efficient living spaces and a decluttered lifestyle.
• A home organization business can be profitable as people are willing to pay for services that provide convenience and save them time.
• Home organization services can range from decluttering, closet and pantry organization, space planning, and even home office organization.
• A home organization business can offer convenience and personalization by offering tailored solutions according to individual needs and preferences.

If you are looking for a business venture, why not consider home accessories and decor? Not only is this industry constantly evolving, but it also allows for a lot of creativity and personalization. But first, let's define what we mean by home accessories and decor:

• Home accessories: functional or decorative items that are placed around the home to enhance its appearance or utility. Examples include picture frames, lamps, rugs, and vases.
• Home decor: larger elements that create an overall aesthetic theme in a home. Examples include furniture, curtains, wallpaper, and paint.

So why would starting a home accessories and decor business be a good idea? Let's take a look:

• Great demand: People are constantly looking to spruce up their homes with new and interesting decor pieces. This means that there is always a demand for new products and designs.
• Personalization: The home accessories and decor industry allows for a lot of creativity and personalization. You can create products that reflect your own style and vision, or work with customers to design custom pieces for their homes.
• Diverse customer base: Everyone has a home, which means that your potential customer base is huge. People of all ages, backgrounds, and income levels are interested in home decor.
• Good profit margins: Depending on the products you create, there is room for good profit margins in the home accessories and decor industry.
• Opportunities for growth: As your business grows, you can expand into related areas such as interior design or furniture design. This allows for even more potential for growth and profitability.

All in all, starting a home accessories and decor business can be a lucrative and fulfilling venture. With a little creativity and a lot of hard work, you could be running a successful business that helps people beautify their homes.

Home automation is the control and automation of various home appliances and devices such as lighting, temperature, security, entertainment systems, and more. The concept of home automation has been around for decades, but it has become even more popular in recent years with advancements in technology and the rise of the Internet of Things (IoT).

• One of the main benefits of home automation is convenience. You can control various aspects of your home from a single device, such as a smartphone or tablet.
• Home automation can also save you money in the long run. For example, you can set your thermostat to automatically adjust the temperature when you are away from home, which can help you save on energy costs.
• Another advantage of home automation is increased security. You can monitor your home through security cameras and receive alerts if anything unusual is detected.
• Home automation can also make your home more comfortable and personalized. You can adjust lighting and temperature settings based on your preferences, and even schedule different settings for different times of the day.
• Finally, home automation can add value to your home. It is a sought-after feature for potential buyers and can make your home more attractive on the market.

Given these benefits, it's no wonder that home automation is becoming a popular business idea. Entrepreneurs can start a home automation business providing services such as installation, maintenance, and support. There are also opportunities to develop and sell home automation products, or to create software applications that control home automation systems.

Are you someone who enjoys spending time outdoors, appreciates a well-manicured lawn, or thrives off of creative design? If so, then landscaping and garden design might be the perfect business idea for you!

• What is landscaping and garden design? Landscaping and garden design involve transforming outdoor spaces, whether commercial or residential, into functional and aesthetically pleasing environments. This can include tasks such as planting flowers and trees, constructing walkways or water features, and designing outdoor lighting to enhance the beauty of the space.
• Why would it make a good business idea? There are several reasons why landscaping and garden design could be a lucrative and rewarding business opportunity:
• Outdoor spaces will always be in demand, whether for residential homes, commercial properties, or public parks and green spaces.
• There is endless opportunity for creativity and personal expression in designing outdoor spaces.
• Landscaping and garden design is a niche industry, which means there is potential for high-profit margins if you can establish a loyal customer base.
• Maintaining a well-manicured lawn and garden can add significant value to a property, making it a worthwhile investment for homeowners and commercial property owners alike.
• What skills or qualifications are needed? While no formal qualifications are necessary to start a landscaping and garden design business, there are certain skills and qualities that will be valuable:
• Knowledge of horticulture and plant care
• A creative eye for design
• Physical stamina for outdoor labor
• Strong communication and customer service skills
• Basic knowledge of business operations such as accounting, marketing, and sales.
• What are some challenges to consider? As with any business venture, there will be challenges to navigate:
• Seasonal fluctuations in demand and revenue
• Weather-related difficulties, such as working in extreme heat, cold, or rain
• Equipment and supply costs can be significant, particularly when first starting out
• Physically demanding labor can lead to exhaustion or injury if not managed properly

More helpful resources about LLCs:

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

How to Start a Home Decorator Business

A home decorator helps people use the space in their home or office more efficiently. They’ll recommend the colors, layouts, and furnishings that will best complement a room. Traditional interior designers will do the shopping or the preparing of the physical items that go in the space. Unlike interior designers, they’re not expected to use computer-aided design programs or architectural principles when on the job.

Learn how to start your own Home Decorator Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a home decorator business by following these 10 steps:

• Plan your Home Decorator Business
• Form your Home Decorator Business into a Legal Entity
• Register your Home Decorator Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Home Decorator Business
• Get the Necessary Permits & Licenses for your Home Decorator Business
• Get Home Decorator Business Insurance
• Define your Home Decorator Business Brand
• Create your Home Decorator Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your home decorator business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Home Decorator Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your home decorator business?

Business name generator, what are the costs involved in opening a home decorator business.

Because a decorator relies primarily on selling their time, the costs can be minimal to get going. Owners should have a professional website showcasing their work — even if it’s just simulated images on a basic computer program. A good website can cost a few hundred dollars per year if the decorator designs the site themselves. They should have business cards and a physical portfolio to show their clients. Finally, decorators will need some type of commercial insurance to protect themselves in case they make a mistake in their client’s homes (e.g., moving a piece of furniture and accidentally breaking an expensive vase.) Decorators can work from their home to maximize initial profits.

What are the ongoing expenses for a home decorator business?

Expenses for a decorator include insurance, website upkeep, employee salaries, and the rent or mortgage for their office space (if applicable).

Who is the target market?

Upper and middle-class homeowners will likely be the primary target. Home decorators are highly coveted by many people, but high rates can sometimes make them an underutilized profession for those without substantial incomes.

How does a home decorator business make money?

Home decorators typically charge people for their professional advice and efforts either by the hour or by the room.

Home decorators charge based on their experience and reputation. To simply spruce up a room and give a few final touches, they may charge $100 for an hour or two worth of work. For a complete redesign, they may charge $500 for a full day. Established decorators may charge much more than this — especially if they specialize in finding inexpensive furniture or in restoring old pieces.

How much profit can a home decorator business make?

Home decorators have high profit margins, so the pay can be quite substantial. If a decorator has 200 clients in a year at an average of $400 per client, they’ll make about $650,000 per year, assuming their business expenses run around $15,000 a year.

How can you make your business more profitable?

Decorators can consider becoming interior designers if the demand is high enough in their area. This will mean more schooling and official certification, but the rates a designer can charge will be higher than that of a decorator. Or they can consider adding one-off services to clients, such as furniture restoration.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your home decorator business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a home decorator business. Learn more about licensing requirements in your state by visiting  SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A home decorator business is generally run out of a home or small storefront. Businesses operating out of a physical location typically require a   Certificate of Occupancy  (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a home decorator business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,  it is recommended  to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your home decorator business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Home Decorator Business needs and how much it will cost you by reading our guide Business Insurance for Home Decorator Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a home decorator business

Home decorators will likely find their business primarily through word-of-mouth, which is why it can be helpful to start by helping family or friends with their home decoration dilemmas. Decorators may also want to join community website groups on sites such as Facebook where people swap advice with one another. They can recommend professional advice for free in an effort to get their name out there and inspire real business.

How to keep customers coming back

Clients want a beautiful home at an inexpensive price. They want one-of-a-kind pieces they can use as conversation starters when they have guests over. The more a decorator can provide this, the more likely it is they’ll be able to keep their clients while simultaneously growing their customer base.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is excellent for someone who appreciates how and why different pieces work in different rooms. Decorators need to be creative and flexible, shifting their perspective based on both the physical characteristics of the room and the wishes of their clients. They should enjoy working with people, as they’ll need to understand a client’s personality before suggesting patterns or arrangements for them.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a home decorator business?

Decorators will spend the majority of their time going through different options for the many rooms they’ll plan. However, they’ll also need to make time for client consultations, marketing efforts, and invoicing matters.

What are some skills and experiences that will help you build a successful home decorator business?

Decorators need to be creative and thoroughly in-tune with the basic elements of design. It’s not necessary to have formal education, unlike in the case of an interior designer, but it may help to take a few classes to get a better handle on how function meets form.

What is the growth potential for a home decorator business?

Growth potential can be staggering for the right home decorator. Even the most modest of homes can benefit from a decorator's critical and creative eye, and because trends change often enough, even home decorators entering a saturated market may find they can grow their business quickly with a little ingenuity.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a home decorator business?

Home decorators need to showcase their dedication and creativity to their clients at every opportunity. Ideally, decorators will be able to complete much of their vision without making a client buy a lot of extra furnishings or accessories. Owners may want to start their business part-time to see how well they can handle different styles and spaces.

One of the biggest hurdles to cross when running your business will be how you’ll get the necessary supplies for your clients. Making relationships with suppliers or home furnishers can help immensely when it comes to knowing what’s available, what’s a good deal, and what should be avoided. Decorators don’t have a lot of rules when it comes to how they help their clients, which can work to their advantage. Decorators can spend their day attending auctions and estate sales, refurbishing client’s old furniture back to its original glory, or negotiating with suppliers for a better rate.

Decorators need to find the best ways to attack different problems without stepping outside their client’s boundaries. They need to give their clients a reason to choose them rather than relying on the thousands of articles and books written about interior decorating. Owners should emphasize the value of their expertise and why customized advice is really the only way to get the best results.

As decorators start learning the ways to efficiently solve the puzzle, they’ll find their business begin to grow. Decorators can also consider offering their services online to get started. This is a growing form of decorating that can open up your target market considerably, even if the personal element will be somewhat lost. This can also help you cut down on your initial expenses, as you'll essentially just need to give advice and nothing else.

How and when to build a team

You likely won’t need to hire a team unless your workload spins out of control. In that case, you may want to hire an accountant or secretary before hiring additional decorators. This can ensure your style isn’t corrupted by another decorator, so you don't risk your reputation.

Useful Links

Real world examples.

• Elizabeth J Interiors-Ann Arbor Mi
• Wendy Ryan Interior Design

Further Reading

• HGTV Home Decorator Ideas

Have a Question? Leave a Comment!

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Home > Furniture & Design > Interior Design Trends > How To Start A Home Decor Store Business

How To Start A Home Decor Store Business

Modified: January 5, 2024

Written by: Samuel Turner

Learn how to start a successful home decor store business and stay ahead of the latest interior design trends. Launch your venture with confidence!

• Furniture & Design

(Many of the links in this article redirect to a specific reviewed product. Your purchase of these products through affiliate links helps to generate commission for Storables.com, at no extra cost. Learn more )

• Introduction

Are you passionate about interior design and home decor? Do you have a keen eye for the latest trends in furniture, lighting, and accessories? If so, starting a home decor store business could be the perfect venture for you. In today's dynamic market, consumers are constantly seeking unique and stylish items to enhance their living spaces, making the home decor industry a lucrative and rewarding field to enter.

Embarking on the journey of establishing your own home decor store is an exciting and fulfilling endeavor. It allows you to curate a collection of exquisite pieces that reflect your taste and style while providing customers with the opportunity to transform their homes into personalized havens. However, before diving into this venture, it's crucial to understand the foundational steps required to launch and manage a successful home decor store.

In this comprehensive guide, we will explore the essential aspects of initiating a home decor store business, from conducting thorough research and planning to executing effective marketing strategies. By following these steps, you can lay a solid foundation for your business, attract a loyal customer base, and ultimately thrive in the competitive world of home decor retail. So, let's embark on this enlightening journey and uncover the key elements that will empower you to establish a flourishing home decor store.

Key Takeaways:

• Starting a home decor store requires thorough research, a captivating vision, and a strategic location to attract customers and stand out in the competitive market.
• Curating a diverse inventory, creating an inviting store ambiance, and engaging in effective marketing are crucial for a successful home decor store that resonates with design enthusiasts and homeowners.

Read more : How To Start A Online Home Decor Business

• Step 1: Research and Planning

Prior to launching your home decor store, conducting comprehensive research and meticulous planning is paramount. Start by immersing yourself in the world of interior design and home decor trends . Stay updated on the latest styles, color schemes, and popular themes that resonate with diverse consumer preferences. This insight will enable you to curate a compelling inventory that caters to a wide range of tastes and preferences.

Furthermore, researching your target market is essential. Identify your potential customers, understand their demographics, lifestyle choices, and purchasing behaviors. This knowledge will guide your product selection and marketing strategies, ensuring that your offerings align with the desires of your target audience.

As you delve into the planning phase, consider the unique selling proposition (USP) of your home decor store. What sets your store apart from competitors? Whether it’s offering exclusive artisanal pieces, providing personalized design consultations, or specializing in eco-friendly decor, defining your USP will distinguish your brand in the market.

Additionally, create a detailed business plan that outlines your store’s concept, financial projections, marketing approach, and operational strategies. This plan will serve as a roadmap for your business, guiding decision-making and fostering a clear understanding of your objectives.

Collaborating with interior designers, home decor influencers, and industry experts can provide invaluable insights and networking opportunities. Attend trade shows, design exhibitions, and networking events to establish connections and stay abreast of industry developments.

By meticulously researching and planning, you can lay a robust foundation for your home decor store, positioning it for long-term success and resonance with the ever-evolving demands of the market.

• Step 2: Create a Business Plan

Creating a comprehensive business plan is a pivotal step in launching a successful home decor store. Your business plan serves as a roadmap, guiding your decisions and outlining the strategies that will drive your store’s growth and profitability.

Begin by defining the vision and mission of your home decor store. What values and aesthetics do you aim to embody? How do you envision enriching the lives of your customers through your curated offerings? Articulating a compelling vision will not only guide your business decisions but also resonate with your target audience.

Conduct a thorough market analysis within your chosen location. Identify the existing home decor stores, analyze their strengths and weaknesses, and discern opportunities for differentiation. Understanding the competitive landscape will enable you to carve out a unique position in the market.

Financial projections are a critical component of your business plan. Estimate your initial investment, ongoing operational expenses, and projected revenue. Consider factors such as inventory procurement, staffing costs, marketing expenditures, and overhead expenses. Developing realistic financial forecasts will instill confidence in potential investors and lenders while providing you with a clear understanding of your store’s financial trajectory.

Detail your marketing and sales strategies within the business plan. How will you attract customers to your store? Will you leverage social media, collaborate with influencers, or host exclusive events? Outline your promotional tactics and customer acquisition channels, ensuring a cohesive and compelling approach to reaching your target audience.

Moreover, your business plan should encompass operational logistics, including inventory management, supplier relationships, and customer service protocols. By addressing these operational aspects, you can streamline your store’s processes and deliver a seamless experience to your clientele.

Ultimately, a well-crafted business plan not only provides clarity and direction but also serves as a persuasive tool when seeking funding or partnerships. It crystallizes your vision, strategies, and operational framework, laying the groundwork for a flourishing home decor store.

• Step 3: Choose a Suitable Location

When establishing a home decor store, the significance of choosing the right location cannot be overstated. The location of your store plays a pivotal role in attracting foot traffic, engaging your target audience, and fostering a strong brand presence within the community.

Begin by conducting a thorough assessment of potential locations. Consider factors such as visibility, accessibility, and the demographic profile of the surrounding area. A bustling shopping district or a trendy neighborhood known for its design-conscious residents could serve as an ideal setting for your home decor store.

Foot traffic is a key determinant of a location’s viability. Seek out areas with high pedestrian activity, as this can significantly enhance the visibility of your store and attract potential customers who are inclined to explore unique home decor offerings.

Additionally, assess the proximity of complementary businesses. Being situated near interior design firms, furniture stores, or home improvement centers can create synergistic opportunities for cross-promotion and collaboration, amplifying your store’s appeal to discerning customers seeking comprehensive design solutions.

Understanding the demographic composition of the area is crucial. Evaluate the income levels, lifestyle preferences, and design sensibilities of the local population. Tailoring your inventory and marketing initiatives to resonate with the tastes and aspirations of the community will position your store for relevance and resonance.

Furthermore, consider the operational practicalities of the location, including lease terms, rental costs, and zoning regulations. Negotiating favorable lease terms and ensuring compliance with local regulations will contribute to the long-term sustainability of your store.

Ultimately, choosing a suitable location involves a blend of strategic foresight and an intimate understanding of your target market. By selecting a prime location that aligns with your brand identity and customer demographics, you can establish a compelling presence in the home decor retail landscape, captivating the imagination of design enthusiasts and homeowners alike.

• Step 4: Obtain Necessary Permits and Licenses

Before commencing operations for your home decor store, it is imperative to navigate the regulatory landscape and secure the essential permits and licenses. Compliance with legal requirements not only ensures the legitimacy of your business but also fosters trust and credibility among customers and stakeholders.

Initiate the process by researching the specific permits and licenses mandated for retail establishments in your jurisdiction. This may encompass a general business license, sales tax permit, and zoning permits. Engage with local regulatory authorities or seek legal counsel to gain a comprehensive understanding of the requisite approvals.

Environmental and safety regulations are paramount in the retail sector. Depending on the nature of your inventory, you may need to adhere to regulations governing the sale of upholstered furniture, lighting fixtures, or home accessories. Ensure that your products comply with safety standards and industry-specific regulations to mitigate potential liabilities.

If your home decor store incorporates an e-commerce component, familiarize yourself with online business regulations, data protection laws, and digital commerce requirements. Safeguarding customer data and ensuring compliance with e-commerce regulations are integral aspects of operating a modern home decor retail business.

Additionally, if you plan to serve refreshments or host events within your store, securing permits for food service, entertainment, or public gatherings may be necessary. Understanding the nuances of these permits will enable you to seamlessly integrate experiential elements into your store’s offerings while remaining fully compliant with regulatory mandates.

Moreover, consider insurance coverage to safeguard your business against unforeseen circumstances. Liability insurance, property insurance, and product liability coverage can provide comprehensive protection, offering peace of mind as you embark on your entrepreneurial journey.

By diligently navigating the landscape of permits, licenses, and regulatory compliance, you can establish a solid legal foundation for your home decor store. Upholding ethical and legal standards not only mitigates risks but also cultivates a trustworthy and reputable brand image, positioning your store for sustained success in the competitive retail landscape.

Research your target market to understand their preferences and budget. This will help you curate a product selection that appeals to your customers and sets your store apart.

Read more : How To Start A Home Decor Business In India

• Step 5: Source Inventory and Suppliers

Curating a captivating inventory lies at the heart of a successful home decor store. As you embark on this crucial step, sourcing high-quality products from reputable suppliers is essential to offering a diverse and compelling selection that resonates with your target audience.

Commence by identifying suppliers renowned for their craftsmanship, innovation, and commitment to quality. Whether you seek artisanal handcrafted pieces, contemporary designer furniture, or eclectic decor accents, cultivating partnerships with suppliers who align with your brand’s aesthetic and values is paramount.

Attending trade shows, design exhibitions, and industry events provides invaluable opportunities to connect with potential suppliers and discover emerging trends and innovations in the home decor sector. Engage in meaningful conversations with suppliers, inquire about their production processes, and assess the uniqueness and market appeal of their offerings.

Conduct thorough due diligence when evaluating potential suppliers. Request samples of their products to assess their quality, durability, and design integrity. Additionally, scrutinize their lead times, shipping capabilities, and after-sales support to ensure a seamless and reliable supply chain for your store.

Furthermore, explore the prospect of collaborating with local artisans and independent designers to infuse your inventory with distinctive, locally sourced creations. Embracing artisanal craftsmanship not only adds a unique charm to your offerings but also fosters a sense of community and authenticity within your store.

Establishing strong supplier relationships built on transparency, mutual respect, and shared values is instrumental in securing favorable terms, exclusive designs, and continuous innovation. Cultivating these partnerships can lead to collaborative initiatives, custom product development, and tailored offerings that set your store apart in the competitive home decor landscape.

By thoughtfully sourcing your inventory and nurturing relationships with reputable suppliers, you can curate a captivating and diverse collection that reflects your brand’s ethos and captivates the discerning tastes of your clientele. This approach lays the groundwork for a distinctive and compelling retail experience, elevating your home decor store to a coveted destination for design enthusiasts and homeowners alike.

• Step 6: Set Up Your Store

Setting up your home decor store involves a meticulous blend of creativity, strategic merchandising, and operational finesse. From crafting an inviting ambiance to optimizing the layout for a seamless customer experience, every facet of your store’s setup contributes to its allure and functionality.

Begin by conceptualizing the layout and design of your store. Consider the flow of customer traffic, focal points for featured displays, and designated areas for distinct product categories. Embrace a harmonious balance between open spaces and curated vignettes, allowing customers to explore and envision your products within immersive settings.

Lighting plays a pivotal role in accentuating your merchandise and creating an inviting atmosphere. Strategically utilize ambient, accent, and task lighting to highlight focal points, evoke mood, and showcase the intricate details of your home decor offerings. Natural light, when available, can infuse a sense of warmth and authenticity into your store’s ambiance.

Furnish your store with fixtures and displays that complement your inventory and enhance the visual appeal of your space. From shelving units and display tables to versatile modular systems, select fixtures that harmonize with your brand’s aesthetic while facilitating a captivating presentation of your products.

Embrace the power of storytelling through your store’s visual merchandising. Curate thematic displays that evoke aspirational living spaces, seasonal trends, or lifestyle narratives. Thoughtfully juxtapose complementary items, textures, and colors to inspire customers and encourage them to envision your products within their own homes.

Moreover, prioritize the integration of technology within your store. Interactive digital displays, virtual design tools, and augmented reality experiences can enrich customer engagement, facilitate personalized consultations, and elevate the overall shopping journey, bridging the realms of digital innovation and tactile retail experiences.

Lastly, infuse your store with personalized touches and sensory elements. Engage customers through ambient music, inviting scents, and hospitable gestures, fostering an immersive and memorable encounter that transcends traditional retail transactions.

By thoughtfully orchestrating the setup of your home decor store, you can craft an enchanting and experiential environment that not only showcases your products but also resonates with the aspirations and sensibilities of your discerning clientele. This approach sets the stage for a captivating retail experience that transcends mere transactions, inviting customers into a world of inspiration and design possibilities.

• Step 7: Marketing and Promotion

Effective marketing and promotion are instrumental in establishing your home decor store’s brand identity, attracting customers, and fostering enduring connections within your community and beyond. By crafting a compelling marketing strategy and leveraging diverse promotional channels, you can amplify the visibility of your store and captivate the attention of design enthusiasts and homeowners alike.

Commence by developing a robust digital presence through a captivating website and engaging social media platforms. Your website should serve as a digital storefront, showcasing your curated offerings, sharing inspiring design insights, and facilitating seamless online transactions. Embrace search engine optimization (SEO) strategies to enhance your website’s visibility and drive organic traffic.

Embrace the power of visual storytelling through captivating photography, immersive videos, and compelling blog content. Share behind-the-scenes glimpses, design tips, and trend highlights to captivate and educate your audience, positioning your store as a trusted source of design inspiration.

Engage with influencers, interior designers, and home decor enthusiasts to amplify your store’s reach and credibility. Collaborations with influencers and industry professionals can expand your store’s visibility, foster authentic endorsements, and cultivate a community of design aficionados who resonate with your brand’s ethos.

Host captivating events, workshops, and design consultations within your store to foster experiential engagements with your audience. These initiatives not only enrich customer experiences but also position your store as a hub for design inspiration, knowledge sharing, and community building.

Strategically leverage email marketing to nurture relationships with your customer base, share exclusive promotions, and provide personalized design recommendations. Tailor your email content to resonate with diverse customer segments, offering targeted insights and product recommendations that align with their preferences.

Furthermore, explore collaborations with complementary businesses, design publications, and local media outlets to amplify your store’s visibility. Participating in design showcases, home tours, and community events can further elevate your store’s presence and foster meaningful connections within your local design ecosystem.

By orchestrating a multifaceted marketing and promotion strategy, you can position your home decor store as a compelling and influential presence in the design landscape. Embrace creativity, authenticity, and strategic engagement to cultivate a loyal customer base, inspire design enthusiasts, and carve a distinctive niche within the dynamic realm of home decor retail.

• Step 8: Launch and Manage Your Business

The culmination of your meticulous preparations and creative vision leads to the exhilarating moment of launching your home decor store. As you embark on this transformative journey, effective management practices and a customer-centric approach are pivotal in nurturing a thriving and enduring retail enterprise.

Host a captivating launch event that embodies the essence of your brand and the allure of your curated offerings. Embrace experiential elements, exclusive promotions, and engaging interactions to captivate attendees and initiate enduring connections with your community. The launch event serves as a pivotal opportunity to introduce your store to the public, garner media attention, and cultivate a sense of anticipation and excitement.

Implement robust inventory management systems to streamline procurement, track product performance, and optimize stock levels. Leverage data analytics and sales insights to discern trends, identify top-performing products, and refine your inventory assortment to align with customer preferences and market demands.

Foster a customer-centric culture within your store, prioritizing personalized service, design consultations, and attentive engagement with clientele. Empower your staff with product knowledge, design expertise, and a genuine passion for enhancing customers’ living spaces, fostering enduring relationships and loyalty.

Embrace a dynamic approach to merchandising, regularly refreshing displays, and introducing new arrivals to entice repeat visits and spark curiosity. Embody seasonal themes, design narratives, and lifestyle inspirations within your store’s ambiance, creating an ever-evolving and captivating environment for your customers.

Harness the power of feedback and insights from your clientele to refine your offerings, enhance customer experiences, and adapt to evolving design trends. Actively seek and incorporate customer input, testimonials, and design preferences into your store’s evolution, fostering a sense of co-creation and community within your brand.

Moreover, prioritize community engagement and social responsibility initiatives. Collaborate with local artisans, charitable causes, and design education programs to foster a sense of social impact and give back to the community that sustains your business.

Embrace a forward-looking approach by staying attuned to emerging design trends, technological innovations, and evolving consumer preferences. Continuously evolve your store’s offerings, experiences, and engagement strategies to remain at the forefront of the dynamic home decor landscape.

By infusing your business management with creativity, customer-centricity, and adaptability, you can nurture a home decor store that transcends traditional retail paradigms, fostering enduring connections, and inspiring design enthusiasts and homeowners to transform their living spaces with style and sophistication.

Read more : How To Start A Business In NC Selling Home Decor And Fragrance

Embarking on the journey of establishing a home decor store is a testament to your passion for design, creativity, and the art of curating captivating living spaces. Throughout this comprehensive guide, we have delved into the essential steps that pave the way for a successful and resonant home decor retail venture.

From the initial stages of meticulous research, planning, and location selection to the strategic sourcing of inventory, meticulous setup, and dynamic marketing initiatives, each facet of this entrepreneurial odyssey contributes to the realization of your vision.

As you navigate the multifaceted landscape of launching and managing your business, prioritize the fusion of creativity, customer-centricity, and operational excellence. Embrace the power of storytelling, experiential retail, and community engagement to position your store as a compelling and influential presence within the home decor realm.

By fostering enduring connections, embracing innovation, and staying attuned to the pulse of design trends, you can cultivate a home decor store that transcends mere transactions, inviting customers into an immersive world of inspiration, style, and transformative design possibilities.

As you embark on this enriching journey, remember that the heart of your store lies in the art of enriching lives, inspiring creativity, and curating spaces that reflect the aspirations and individuality of your clientele. Embrace this ethos, and let it resonate through every facet of your store, from the products you curate to the experiences you craft.

Ultimately, your home decor store is more than a retail destination; it is a canvas for design expression, a catalyst for community, and a sanctuary for those seeking to infuse their living spaces with beauty, comfort, and personal resonance.

May your entrepreneurial voyage be adorned with creativity, resilience, and the fulfillment of enriching the lives of those who enter your store, igniting their imagination and empowering them to transform their homes into havens of style and sophistication.

• Frequently Asked Questions about How To Start A Home Decor Store Business

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How To Start A Home Decor Business

When it comes to starting a home decor business, you may find yourself in a place where you have to make some big decisions.

You may be asking yourself:

• What's the first step in establishing my business?
• How much will it cost to start my home decor business?
• How do I price my home decor business?
• How do I market my home decor business?
• ... so much more!

We walk you through all of the steps; from idea → starting → launching → growing → running your business.

The purpose of this guide is to act as an outline for the steps you'll need to take to get your business running successfully!

Start A Home Decor Business ➜ avg revenue (monthly) $8.5K see all home decor businesses ➜ starting costs $34.6K see all costs ➜ gross margin 32% time to build 270 days average product price $45 growth channels SEO business model Subscriptions best tools Instagram, Facebook, Quickbooks time investment Full time pros & cons 21 Pros & Cons see all ➜ tips 9 Tips see all ➜

💡 Introduction To Starting A Home Decor Business

Is starting a home decor business right for you.

There are many factors to consider when starting a home decor business.

We put together the main pros and cons for you here:

Pros of starting a home decor business

• Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

• Rewarding work

Starting a home decor business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

• Quick build time

The average time it takes to build your product is quick - typically around 9 months. This will allow you to bring your product to market faster.

• Amazing perks and discounts

Working in the home decor business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

• You are your own boss!

With starting a home decor business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

• Location is everything!

When operating a physical storefront, the location often speaks for itself and serves as it's very own marketing tool! It's important to choose a location in a high traffic area so you can spark curiosity and get people through your door!

• You can sell your product in various places!

There are various different markets to sell your product, which will help you reach different audiences and revenue streams.

• Control your own destiny

Starting A Home Decor Business allows you to control every aspect of your life and make your own dreams come true every day.

• You get to do something you truly love

With starting a home decor business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

• You get to inspire others

Your business is one that encourages and inspires others, which in itself, can be very fulfilling.

• You can promote and sell your product on Amazon

Although there are some disadvantages to consider when selling your product on Amazon, there are also a host of benefits. Mainly, Amazon is the world's largest online retailer, so you're bound to tap into new business and reach an entirely new audience.

• Low maintenance customers

In this industry, customers are known to be very appreciative and low maintenance. This can help with your stress levels and allow you to focus on growing your business.

Cons of starting a home decor business

• Crowded Space

Competition is high when it comes to your home decor business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

• Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

• Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

• High overhead expenses

With starting a home decor business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

• Work can be repetitive

You may find creating the same product over and over repetitive and tiresome. One way of avoiding this is to diversify product lines and revenue streams - this will keep things interesting!

• Time commitment

With starting a home decor business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• Be prepared to get out of your comfort zone!

Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!

• You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

• Work is not always glamorous

With starting a home decor business, you may need to get your hands a little dirty. Although it may seem glamorous from the outside to start this business, the work can require a lot of physical activity and repetition.

Big Players

• French Italian LLC (25 Alexa Ranking)
• Crate and Barrel (3.81K Alexa Ranking)
• AllModern (6.57K Alexa Ranking)
• Furniture, Home Decor, Rugs, Unique Gifts (8.09K Alexa Ranking)
• CB2 (8.39K Alexa Ranking)

Small Players

• Hoagard.com - Revenue $415K/month
• Valhalla Wood Forge - Revenue $8.5K/month
• Less is More Organizing Services - Revenue $8K/month
• TCB Designs, Florida - Revenue $5K/month
• ALDECOR - Revenue $2K/month
• Go! Organizer - Revenue $2K/month

Search Interest

Let's take a look at the search trends for home decor over the last year:

How To Name Your Home Decor Business

It's important to find a catchy name for your home decor business so that you can stand out in your space.

Here are some general tips to consider when naming your home decor business

• Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
• Conduct a search to see if others in the space have the same name
• Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
• As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your home decor business so important?

The name of your business will forever play a role in:

• Your customers first impression
• Your businesses identity
• The power behind the type of customer your brand attracts
• If you're memorable or not

It's important to verify that the domain name is available for your home decor business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your home decor business:

• Canary Lane check availability
• Magic House Home Décor check availability
• What A Room check availability
• Once & Again check availability
• Eclectic Home Tastes check availability
• Divine Interiors check availability
• More Than Old check availability
• Décor And More check availability
• Cottage Crafts check availability
• Boomerang check availability
• Artsy Rugs check availability
• Beaux check availability
• Elegant Home Decor check availability
• Apex Home Decor check availability
• Luxe check availability
• Alla Moda check availability
• Reclaimed in Love check availability
• Florence check availability
• Getting Personal check availability
• Share check availability
• Bright check availability
• A Bella Casa check availability
• Bell And Moon check availability
• Arcadia Public Market check availability
• The Luxurious Life check availability
• Adaptive Home Decor check availability
• Elevation check availability
• Happy Home Décor check availability
• Stylish Homewares Products check availability
• Farmhouse Home Decor check availability
• Hearty Home Décor check availability
• Home Sweet Home check availability
• The Showroom check availability
• Indigo & Poppy check availability
• Boulevard check availability
• Pillows And Patterns check availability
• Exceptional check availability
• Make It Yours check availability
• Magazine Home Décor check availability
• Dwelling check availability
• Dedicated Décor check availability
• Mod Home check availability
• Wood Groove check availability
• The Treasure check availability
• Interior Decoration Sydney check availability
• Creative Homes check availability
• Dovetail check availability
• Pottery Barn check availability
• Jade & Clover check availability
• Contemporary Home Decor check availability
• Hipster Home Décor check availability
• Bottles & Wood check availability
• Bianco check availability
• Revamp Renew check availability
• Buffalo Collection check availability
• Sage check availability
• Redemption check availability
• Essential check availability
• Promenade check availability
• DecoratIn’ check availability
• Roost check availability
• Your Own Décor check availability
• Just Lights & Home Decor check availability
• Wallpaper To Windows check availability
• Matters of Space check availability
• Suncoast check availability
• First Impression check availability
• Cove check availability
• The LifeStyled Co. check availability
• Home Décor Heroes check availability
• Breeze check availability
• Rose Design check availability
• Bungalow check availability
• Dependable Décor check availability
• Vintage Home Accessories check availability
• Display check availability
• Asrai Garden check availability
• Artistic Illusions check availability
• Asakichi check availability
• Dressed To Sell check availability
• Lost & Found check availability
• Every Inch check availability
• Feliz check availability
• Selling Edge check availability
• Water Lily Home Decor check availability
• Well Walled check availability
• Coco Bella check availability
• Luscious Home Decor check availability
• Acacia check availability
• Mediterranean Accents check availability
• Woody Dots check availability
• Home Goods check availability
• Fixed Design check availability
• It’S Personal check availability
• Color Essences check availability
• Make It Yours Décor check availability
• White Couture check availability
• Dream Décor check availability
• Amuse check availability
• Made On Earth check availability
• Establish check availability
• Altered Decor check availability
• Dazzling Décor check availability
• Inner Sanctuary Home Decor check availability

Read our full guide on naming your home decor business ➜

How To Create A Slogan For Your Home Decor Business:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your home decor business:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

• Explain the target customer you are catering your services towards
• What problem do you solve?
• How do you make other people, clients, or your employer look good?
• Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Here's some inspiration for coming up with a slogan for your home decor business:

• Innovative solutions to improve your home
• Make your home significantly better
• Decorate to impress
• Premium home decors that work
• Affordability, style, and quality
• Home decors that last a lifetime
• Keeping your home elegant
• Add up some style to your home
• Make your home a better place
• Providing elegance on every home
• Transform your home for the better
• Home decors made specifically for your home
• Take your home to the next level
• Making your home a better place
• Design your home right now
• A beautiful home is a desirable place
• Decors that last a lifetime
• Making home extra special
• Decors that impress
• The passion to improve homes
• House makeover, possible
• Easy way to design your house
• An incredible way to design your home
• Pamper your house
• Premium designs for your home
• Creative decors, beautiful home
• Designing homes made easy
• Putting extra wow factor to homes
• Decors crafted with passion
• Decoration solutions for your home
• Simple yet attractive designs
• Plug and play decorations
• Decorations that last a lifetime
• Durable decorations that you can trust
• Combination of elegance and affordability
• Rich Cornucopias Are What We Do
• Old Home, Built For You
• Artisinal's Like Heaven.
• Home Inside You.
• Homes With Edge
• Home For People Who Want More.
• From Exterior To Internal
• Biting The Hand That Feeds Decorations.
• We Bring The Good Home To Life.
• Come Fly The Friendly Home.
• See The USA In Your Artisinal.
• Play Home, Start Living.
• Decorations With Life
• Always The Real Thing, Always Decorations.
• Life's Pretty Straight Without Home.
• Home - To Feel Free!
• Domicile Is What We Do
• Inside Is What We Do
• Praise Decorations.
• Home Strikes Back.
• Homes With Spirit
• Work Hard, Own Harder
• Did Somebody Say Artisinal?
• Too Orangey For Decorations.
• Just Like Artisinal Used To Make.
• Decorations Works Like Magic.
• Casa Is What We Do
• Home The River Of Life.
• It's The Bright One, It's The Right One, That's Home.
• Homes With Friend
• Work Hard, Return Harder
• Don't Leave Your Home At Home.
• Decorations, Try It You'll Like It!

The eCommerce Business Model

One of the main benefits of operating online is that you are exposed to the entire world, versus just one local area. Rather than depending on foot traffic, you have all the tools at your disposal to create exposure for your store online.

Additionally, there are much lower costs to operate an online store - fewer employees, you can operate from your home, and you get to create your own schedules (yes, holidays included!)

Although you are operating online and have the ability to connect with people all over the world, it's important to consider that you will need to invest marketing money upfront in order to promote your store to the right audience.

Gia Paddock, founder of Boutique Rye explains the 3 reasons why she decided to build an online store :

I wanted to find something I loved but also allowed me to stay home at the same time. While I was working at this local boutique, I realized that there was a lot of sitting around during the day when other people were out working. Therefore, an online business seemed like the best route for a few reasons:

• We didn’t have the extra funds sitting around to pay sign a year or two-year lease at a brick & mortar location.
• I realized the opportunity to reach a wider audience online compared to the audience of this small local boutique. For us, it seemed like hitting two birds with one stone.
• And finally (maybe the most important of all), running it as an online-only business would allow me to stay at home with Riley!

Learn more about starting a home decor business :

Where to start?

-> How much does it cost to start a home decor business? -> Pros and cons of a home decor business

Need inspiration?

-> Other home decor business success stories -> Examples of established home decor business -> Marketing ideas for a home decor business -> Home decor business slogans -> Home decor business names -> Home decor business Instagram bios

Other resources

-> Home decor business tips -> Blog post ideas for a home decor business

🎬 How To Start A Home Decor Business

How Much Does It Cost To Start A Home Decor Business

If you are planning to start a home decor business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a home decor business and outline the costs you should expect for each:

• The estimated minimum starting cost = $62
• The estimated maximum starting cost = $69,097

Raising Money For Your Home Decor Business

Here are the most common ways to raise money for your home decor business:

Bootstrapping

You may not need funding for your home decor business.

In fact, many entrepreneurs take this approach when starting their own business, whether they have a little amount of cash or a substantial amount to get started.

So what exactly does the term "bootstrapping" mean?

This method essentially refers to self-funding your business without external help or capital and reinvesting your earnings back into the business**

Bootstrapping means building your company from the ground up with your own, or your loved ones, personal savings and reinvesting all earnings back into the business

Here are some tips to consider when bootstrapping your business :

• Use your savings as your capital - one of the best ways to bootstrap your business is to collect your savings and use them as startup capital. This will also help you avoid using your personal or business credit cards when getting started.
• Determine exactly how much capital you need and how much capital you have to get your business off the ground. Generally, when bootstrapping your business, you may want to consider starting a business that involves less startup capital.
• Consider starting a business that will generate immediate returns so you can put money back into the business
• Be as lean as possible - this refers to cutting down expenses as much as possible, such as payroll, fancy software tools, unnecessary travel, renting an office, etc
• Consider outsourcing instead of hiring - in the beginning, you may not need to hire someone permanently to help run your business. It tends to be much less expensive to outsource work to a freelancer and hire someone permanently down the road!

Want to learn more about bootstrapping your business? Check out this article

What Skills Do I Need To Succeed In Starting A Home Decor Business?

As a home decor business, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

Crafty Skills

Whether you are on the creative side or the business side of your product, crafty and creative skills are a must for starting a home decor business.

Here are a few skills that are important to have for starting a successful home decor business:

• Knowledge of materials and their skillful use: It's critical that you are knowledgable about art supplies and able to get the most out of everything.
• An open mind : The best home decor business's are the ones that have a unique perspective and an open mind on life and home decor.
• Patience : Some of your work may take weeks, months or even years! This combined with starting a business will involve a lot of patience and trust in the process.
• Energy & Focus : Starting a home decor business means you will need to have a great deal of both physical and mental energy to think creatively, reflect, and focus.

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to starting a home decor business:

• Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
• Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
• Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
• Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Business Savvy Skills

When starting a home decor business, there are a few fundamental business skills you will want to learn in order to be successful:

• Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
• Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
• Ability to understand the financials : You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
• Strategic Thinking : Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when starting a home decor business.

For a full list, check out this article here .

Design Skills

Whether you are the one designing the product or the decision-maker for the product, an eye for design is critical when starting a home decor business. Here's what this looks like:

• Creative Thinking - the ability to develop or design different products or ideas
• Visualization - being able to imagine or visualize how the product will look
• Articulation - the ability to communicate what the design will look like and how it will be executed
• Detail-oriented - paying close attention to all of the small pieces when designing or working on a project
• Some technical skills - knowledge of the design software you are using to create the product or build prototypes.

Other skills that may be valuable to have when starting a home decor business include digital marketing skills, branding experience, and basic business knowledge.

Advice For Starting A Home Decor Business

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for starting a home decor business:

James Wolfer, founder of Valhalla Wood Forge ($8.5K/month):

Do your homework if you’re going to use outside marketing agencies, and don’t take shortcuts.

Read the full interview ➜

Sarah Giller Nelson, founder of Less is More Organizing Services ($8K/month):

Seize the day! You never know what is coming down the pike so if you have a dream just go for it.

Maurici Badia, founder of HANNUN ($/month):

I love learning by making mistakes, it means you’ve tried it. When you are creating a new brand, using new technology, new features in social media platform, there is nothing written, you need to try many things and some of them will work, some not.

Suzan Allen, founder of French Italian LLC ($/month):

Always remember, your plan might change from time to time but the end game will always remain the same.

Don’t be afraid to bring on the right people.

Tiffany Griffin, founder of Beautiful Dawn Designs ($/month):

Don't use failure as a reason to give up. It's okay to fail. Just make sure you learn from your failures and mistakes and keep working towards your goals.

Write a Business Plan

Writing a business plan from the start is critical for the success of your home decor business.

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

• Executive Summary : Brief outline of your product, the market, and growth opportunities
• Overviews and Objectives : Overview of your business, target customers, and what you need to run your business
• Products and Services : Specifics on the products and services your business will provide
• Market Opportunities : Analysis of customer demographics, buyer habits and if your product is in demand
• Marketing : Outline of your marketing plan and how you plan to differentiate yourself from other customers
• Competitive analysis : Analysis of your competition and the strengths and weaknesses therein
• Operations : Hierarchal structure of the company and what it will take to run the business on the day-to-day
• Leadership Team : Detailing roles and responsibilities of each manager based on their specific skill-set
• Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

• Location - Is your bank close enough that you can easily make deposits or get cash?
• Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
• Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
• Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
• Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Home Decor Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

• LLC : All income and expenses from the business are reported on the LLC personal income tax return.
• S corp : Owners pay themselves salaries + receive dividends from profits.
• C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

• Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
• Consider the number of hours you are working weekly + the type of duties you are performing.
• Set your salary based on your industry-standard, location, and profits (or projected profits)
• Look at your P&L statement : Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
• Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

To learn more about how to pay yourself and what is a reasonable amount, check out this article .

How To Price Your Home Decor

One of the most challenging aspects to starting a home decor business is determining how much to charge for your home decor.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price , this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

• Customer demographic: Age, gender, location, etc.
• Buying habits of your customer: What they buy + when they buy
• Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your home decor, it's critical that you first identify all of your costs and consequently mark up your home decor so you can factor in a profit.

The actual cost of your home decor may include things like:

• The actual cost to make the product (ie. raw materials, supplies, manufacturer).
• Shipping + overhead fees
• Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your home decor, you'll want to create goals for revenue + how much profit you want your home decor business to make.

This process is simpler than you may think:

• Think about your breakeven cost (by completing the above step).
• Create a revenue goal based on your break-even cost
• Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
• Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your home decor is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your home decor fits best in the marketplace.

All of these factors play an equal part in pricing your home decor, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Understanding Your Costs

Example from Ishan, founder of Ugly Duckling

First objective: profitability

Our profitability is OK at this point but definitely not where it should be yet. To this day I have not paid myself a regular salary yet...and it’s been 4 years!

The problem is not the cost of goods which are well under 20% of sales, which is good by any standard. The problem is fulfillment costs. In 2018 we transitioned from our first fulfillment company to a much bigger company. We did this because we wanted to provide faster shipment speeds and a better quality of packaging. In hindsight, we chose a company which would have been more suitable for a larger company with bigger volumes. We ended up being tied in with some pretty large minimum monthly payments. So currently fulfillment costs are currently around 45% of sales...way too high.

We are now looking to transit to another fulfillment center. Our target is to get our fulfillment costs down to around 30% of sales which I believe from what I have researched, is possible.

Just to be clear, when I say fulfillment that includes transportation costs also - FedEx, USPS, etc. Not just storage, picking, and packing. I am pretty sure that it is possible to get fulfillment costs down even lower, and I suspect that some large pro sellers on amazon.com work with around 20-25% of sales.

So our target P+L for 2020 looks something like this:

• Cost of goods, including inbound freight and clearance - around 22% of sales.
• Fulfillment - around 30% of sales.
• Digital Advertising & Promotion - around 15% of sales.
• Other marketing and office costs, including salary costs - around 10% of sales.
• That would leave us around 23% of sales - enough to pay me a liveable salary and for the company to make a profit and finance future growth.

That's the first objective for 2020: to right-size the P+L so that we are profitable at our current sales level

Gross Margin Calculator: How to Calculate The Gross Margin For Your Home Decor

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand what is considered a healthy gross margin for your home decor business.

Calculate your gross margin and profit margin here .

What Type Of Customers Will Buy Your Home Decor

It's important to first establish who you will be selling to, whether it's to businesses or consumers.

Typically, in this industry, products are sold to B2C markets (business-to-consumer).

Let's take a look at what this means for your home decor business:

B2C (or business to consumer) is a transaction where businesses sell their products or services to the consumer directly.

In this market, consumer behavior is the primary driver for your business decisions - so it's important that you truly identify who your customer is, and what their buyer habits are when building your product/service.

The advantage

B2C is that you are able to cast a very wide net when targeting your customers. Your product may interest a large number of consumers or a specific niche.

The disadvantage

B2C is that consumers hold all the power - so if your website is not the most user friendly, or does not rank in the top search results on Google, chances are, your customer is going to shop elsewhere.

When building your home decor business, it's critical that you hone in on who your target audience is, and why they need your product over your competition.

Here are some items to consider when identifying your buyer persona:

Design A Prototype

Turning your idea into a reality can feel like a daunting task - but it's critical that you have an idea of what your product will look like (even if it's just a sketch) prior to finding a manufacturer.

Here are some common ways you can design your prototype:

• Draw Your Initial Design on Paper
• Form pieces of fabric together
• Consider Taking A Generic Product And Putting Your Own Brand On It
• Try Making the Product Yourself
• Consider Building A Prototype With A 3D Printer

To learn more about how to design and prototype a product, check out our latest guide here .

Çağrı Ayten, founder of Hoagard.com dives deep into the process of designing and prototyping their product:

The idea of metal wall decor began to emerge and this led the design ideas began to emerge, simultaneously. We started to make designs inspired by the steampunk era. Later, Scandinavian patterns were also used, considering that we should make also some modern designs.

Although the designs were tried to be made by the production process, it was a difficult period for us to take samples and revise them. Because they were very few and it was a new category, it made the production phase difficult. But as a result of intense efforts, the first samples were taken and they were highly appreciated.

It is very important to consider branding as a whole. From design and R&D departments to the shipping company we work with, good steps should be taken to bring the brand to a better place.

The most important point we pay attention to when choosing a supplier is the trust factor. We take cognizance of choosing solution-oriented suppliers who can support us during the operation process. Another point is continuity, we try to go for more innovative suppliers whose quality does not impair over time. The most important thing regarding this issue is that alternative suppliers are also in your system. We need to take quick action in any crisis period.

It wasn't easy to get the first sample, it was not easy to put small quantity products as an unknown brand on the production line of high-volume companies. But in the city we live in, it was not impossible to do this. After searching for several manufacturers, we were able to get the first sample. Once the samples were out and approved, we had to move on to the packaging process. Because one of the most important stages of the e-commerce system is the proper packaging of the product. For this reason, we are still making R&D works on this subject even today. At that time, our priority was to choose a packaging method that is most easily reachable and that we can protect the product in the best way.

After the online ads were placed, we started to take our first bulk orders and in a short while, we have seen that many companies started to contact us. But since we are a company that attaches great importance to branding, we had to choose our partners very carefully. We needed vendors to represent us correctly, and we had to make sure that we could meet the demands of the other party since there was no established production line. It took us a long time to find the right manufacturer. Since it was a design-oriented collection, it had to be preserved very well. Therefore, the production line took place at the end of a process that was followed until 2018.

We advertise on many social media channels such as Google, Facebook, Instagram, Pinterest, and Youtube and change the strategies periodically. E-commerce is an area where many ups and downs can be experienced during the year. Therefore, both budget adjustment and advertising strategies should include periodical differences. Accordingly, we can follow interaction-oriented strategies in some periods and sales-oriented strategies in other periods.

We were supporting the brand with the income we got from our works. Since we did not have any capital, this was a very tiring process for us. Especially in processes where production had to be concentrated, we were taking extra debt and taking risks to move forward. We took out patents and copyrighted our designs to protect our brand in the process of time. Of course, we couldn't handle these costs at once. At the same time, we used some promotions during these times. To be honest, this has been a costly and challenging process for us. It can turn into a much more challenging process, especially if your purpose is to be a global brand. Therefore, during this process, we tried to benefit from government promotions. But following the legal processes afterward was more difficult than obtaining a patent. Since the legal system of each country works differently, we have had times that are at least as challenging as obtaining a patent.

https://www.youtube.com/watch?v=7f7m7Id7LC8

How To Find A Supplier For Your Home Decor Business

Here are the steps to consider when finding a supplier/manufacturer:

Know your design

One very critical step to finding the right supplier is having an initial idea of what your design/product will look like.

Sketching is one of the most simple ways to get started in the design phase.

What's great about sketching is that you can practically do this anytime, anywhere - even on the back of a napkin.

To get started, all you need to do is pick up a pen and paper and start drawing - or if you are working on a virtual/software product this can be a diagram that outlines the user interface or experience.

Decide your supplier type

You'll want to identify the type of supplier you are looking for.

Here are some questions you may want to ask yourself prior to searching for a supplier

• Are you looking for a manufacturer to produce your product idea ?
• Do you want to find a supplier that can simply purchase existing products for you ?
• Do you want a drop-shipper to supply and fulfill orders?
• Do you want a domestic supplier or an overseas supplier? Read more about the pros and cons of each here

Where to start your search

Once you have an understanding of what type of manufacturer/supplier will be best to bring your idea to life, there are several areas you can start your search:

Domestic Suppliers

Overseas Suppliers

Manufacturing Your Product In House

It's also very common to manufacture your home decor on your own - either from your home or in a commercial space.

In order to get the product right, you may want to consider experimenting with different designs and recipes until you find the perfect one.

Some founders choose to manufacture their product in-house so that they can control quality, manage costs, and easily handle production/logistics.

Down the road, you can always choose to outsource your home decor.

Leslie Eisen, founder of AlmondClear discusses how to manufacture products in house

If you want to start a line of unique products, then you have two basic options: you can make them yourself, or you can find a manufacturer to work with that creates custom formulations for their clients.

I knew that I was trying to build a larger-scale business and that the home-made model wasn’t right for me, so I had to find the right manufacturing partner. It took a lot of research, phone calls, and emails before I found the laboratory that met my needs.

I wanted to create unique products (as opposed to private label), so I worked with the manufacturer’s chemist who specializes in skin care formulations. This process takes some time!

First, you have to tell the chemist what kind of product you’re looking for , the ingredients that you want to include or leave out, and what you want the final product to look like/feel like/smell like, etc.

Then, the manufacturer sends you the first sample , you try it out or give it to others to try, and then provide feedback for revisions. In my case, the first two products came together fairly easily because I only needed to make small changes to stock formulations.

There are many, many rules and regulations around cosmetics and skin care products. If you want to sell products that contain FDA regulated ingredients then you have to register and get a permit.

My products aren’t FDA regulated, so I didn’t have to go through this step, but I did have to be aware of the many guidelines and standards around labeling and safety warnings. Some people hire a lawyer to help them through this process, but my manufacturer was able to guide me through the regulatory process.

The entire process, from researching labs to work with to having the first finished products shipped out to me, took around six months.

Purchasing Inventory For Your Home Decor Business

When first starting out, it's important to start small with your overhead to get a gauge for what people want.

Just remember - if you order a line of items that don't sell, it's nearly impossible to recoup the money lost.

Buying the right inventory takes research and planning in order to get it right.

• Identify your target audience : Identify the age, gender, annual income that you will be selling to. This is a defining factor in ordering the right inventory that will sell.
• Research your competition : Conduct market research and identify the different types of styles, price points, and materials being used. This will help you see what's trending and ways that you can improve/stay ahead of the competition.
• Create an inventory wishlist : Identify what you need for the launch of your business and create a budget that you will stay within. Remember, it's okay to start small.
• Find a supplier Make sure to first compare prices and analyze different options.
• Delivery timing : Schedule the inventory delivery to match with seasonality and trending buying seasons

Pro-tip: It's easy to become biased based on your own fashion preferences on what types of shoes/apparel to purchase. This is where a lot of fashion businesses go wrong. It's important to base purchase decisions on current buyer behavior, trends in the market, and specific to your niche.

Erin Hooley, founder of Bailey's Blossoms tells us how poor inventory projections led her to lose over $2M

When we first launched Peyton Bre we did so in a social or direct sales model.

Through poor inventory projections we were forced to change models but only after losing $2 million dollars.

It was a devastating time for us and one we were not sure we could survive.

I have since become very intentional about the way that we project our inventory needs and we continue to refine that quarterly and even monthly. We have created a KPI for the cost of goods sold to help us hold ourselves accountable.

Ultimately, the better we manage our inventory the less we have need to discount and the healthier our profit margin becomes.

This is, of course, a very high-level overview of the importance of inventory control.

To see the full breakdown on how to manage inventory, check out my guide over on my blog. .

🚀 How To Launch Your Home Decor Business

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

• Pick a domain name that's easy to remember and easy to type
• Choose a Web Hosting Plan (ie. Shopify, Squarespace)
• Make sure you choose the right theme and design
• Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide .

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Launch Strategies For Your Home Decor Business

There are various different ways you can launch your home decor business successfully.

Here are a few different strategies to get customers excited about your home decor business.

• Build hype with a landing page : you can effectively do this through waiting lists, discounts, countdown timer etc
• Create a teaser video : even just a 30 second video is a great way to exposure for your home decor business, and possibly even go viral
• Reach out to influencers : The right influencer for your product has the ability to reach your audience with just one post, and because of their loyal following, this could lead to a big return for you.
• Get Press : Whether you plan a PR stunt or get exposure through a popular news outlet, this is a great way to attract initial customers
• Launch on popular sites : A great way to get buzz about your home decor business is to submit your launch to popular startup sites.

Here are a few popular sites to launch on:

• ProductHunt
• Hacker News

Learn more about how to launch your business successfully ➜ here

Sarah Giller Nelson, founder of Less is More Organizing Services dives deep into the process of launching the business:

I initially sought to launch my business in Fall 2009 figuring there would be a lot of clients interested in having help swapping out their closets from summer to fall. The night before I was supposed to launch I got a text from the new nanny I had hired saying she had accepted another job. I was crushed. It took me until the end of December to find a replacement and launch.

We have spent so much time at home this past year staring at our old things and acquiring new things, that the need for organizing services remains strong.

When I did eventually launch in January 2010, I was hoping to tap into the fact that “getting organized” is one of the top New Year’s resolutions people make. I had a lovely website and emailed everyone I knew. I left flyers at businesses that catered to moms, my niche market. I joined a networking group. For the first few months, clients came trickling in very slowly.

At the time, Groupon and other deep discount services like it were at the height of their popularity. I decided to do a deal with Family Finds, a now-defunct service that specialized in activities and services for parents. Within 3 days I had 52 new clients! Although the first session was offered at a deep discount, about 75% of these clients signed up for additional sessions at full price. By the end of the year, I had to hire an assistant to help me out.

Lessons learned:

• Know your market
• Be flexible. Don’t stress if the launch or the time frame does not go according to plan. Life gets in the way, but, eventually, you will work it out - and be made stronger for it.

I knew from the start that most clients would find Less is More via a web search so I made sure to have an attractive, updated website. Here is what the home page looked like when I launched.

Make Sure You Get The Package Design Right

The way you package your home decor business is often the first impression your customer has - so it's important to get it right.

You may want to ask yourself these questions:

If my product is on a shelf next to hundreds of other similar products:

• Will my home decor business stand out?
• Will the branding/packaging create a connection with my customer, and hence, lead them to buy?

There are hundreds of tools you can use to help with packaging and design:

• Canva - Allows non-designers to create beautiful Instagram/Pinterest posts, flyers, business cards, etc.
• Stickermule - High quality custom stickers you can include on or in your packaging.
• Noissue - Custom tissue paper and compostable mailers
• Rollo Label Printer - A great tool to print all shipping labels at home

Sheets & Giggles explains the motive behind their "Premium Unboxing Experience"

I had a particular vision for our packaging centered around one goal: because we were a DTC company and wouldn’t do physical retail in year 1, we needed to focus entirely on an incredible unboxing experience that made the product feel as premium as possible.

Outside: a white box, nice wax coating, logo front and center with no other copy, easy to open, nice and sturdy.

Inside: make people smile from the get-go, have a social call-to-action, include free extra surprises (a knapsack that wraps the sheets and an eye mask), put funny copy all over the place, and add a donation bag that people could use to donate their now-defunct cotton sheets (sheets & blankets are the #2-most-requested item at shelters behind socks).

Marketplaces

There are various different marketplaces that you can effectively sell and promote your home decor business, whether that's local or online!

Here are some of the most common ones:

• Your own website! Shopify is known to be the best for e-commerce stores
• Local places! Gift shops, farmers markets, festivals, grocery stores etc
• Etsy - E-commerce website for craft supplies
• Craft is Art Marketplace to buy and sell handmade crafts & fine art
• Aftcra Online marketplace where you can buy and sell handmade products
• Storenvy Marketplace for authentic brands

Etsy Tips From Founders

Etsy is one of the most common marketplaces for this business type, however, there are some tips and tricks from other founders you'll want to consider prior to listing:

Financially speaking, Etsy is a really great way to start a business because it’s essentially free until you start selling. It cost nothing to launch besides my 20 cent listing fees.

Etsy has been encouraging free shipping with a lot of pushback from sellers, but I built everything into our prices about a month ago and introduced free shipping shopwide , which seems to have improved conversion rates and search visibility already.

I honestly attribute the bulk of my success to photography. I was a photographer first so obviously very lucky to have no issues launching with great images and it’s something I consistently produce.

With Etsy especially, there are a ton of mediocre amateur photos so it was an easy way to set myself apart from the start, and I don’t think Etsy themselves would feature my products and market them so often otherwise. We’re also able to compete fairly well on price because 80% of customers are American, and our dollar is much weaker.

One big mistake I’m seeing from other people selling handcrafted items is regarding Etsy. I’m seeing people do one of two things:

• Under-utilize the platform
• They are solely using the platform

What I mean by this is that I’m seeing a whole lot of handcrafters that only use Etsy because it’s easy. But referring people to an Etsy page as your webpage isn’t as professional as a dot com webpage, plus, Etsy’s fees are much higher than Shopify. Also, when Etsy makes changes to its marketing structure, I’ve seen people who have no other website get absolutely screwed and their shops go under.

The other camp is those that refuse to use Etsy at all. Etsy is a marketplace, with a built-in audience that is often searching for exactly the product you make! Both camps are making the mistake of not diversifying their markets. Use Etsy, it’s an amazing sales tool, but don’t rely on it solely.

Get Press Coverage For Your Home Decor Business

The more buzz around your brand - the more the phones ring, the more traffic to your website, and the more customers as a result.

Here are a few ways you can get press for your business:

Press releases:

Press releases are a great way to share big announcements or news, but in order to get any traction, you'll need to find a way to make your press release stand out amongst others.

Try to convey a story that really matters, not just to you, but to the reporter and to their audience.

Here are some things to consider when submitting a press release:

• Craft a catchy subject (keep it short and sweet).
• Acknowledge the journalist's past work and interests - this is key!
• Include the main point of the story in the first paragraph, heck, even the first sentence. Reporters want to hear the juice first and foremost.
• Focus on the facts and try to limit the amount of jargon used.
• Pitch yourself! Help them put a face to the story.
• Make sure your topic is newsworthy. If it's not, find a way to!
• Try not to include any attachments of your release!

Email is one of the most effective and preferred way to send your press release, so as long as you keep your pitch brief, interesting and personalized (no cold emails), you should stand a chance!

Get Press Using HARO

HARO, otherwise known as "Help a Reporter Out" is an outlet for journalists to source upcoming stories and opportunities for media coverage.

The best part is, HARO is free to use! There are, of course, premium versions you can purchase, but the free version is still an accessible way to get press.

Once you set up an account, HARO essentially will email you based on stories (that are relevant to you) that need to be covered where you will then have a chance to essentially "bid on the story."

Here are some tips when crafting your pitch:

• Discuss your experience and expertise in the space. Make sure it's obvious why you're relevant to this story.
• Answer the question in 3-4 sentences. Try and be as direct as possible
• Offer to provide the reporter with more information and make sure to give them your contact info

Plan a Publicity Stunt

Planning a publicity stunt is an effective and quick way to raise awareness for your brand and gain some traction from the press.

If you're looking to plan a stunt, the objective should be to be bold and create something memorable

However, being bold has a fine line - it's important that you consider the timing of your stunt to ensure you don't come off insensitive or unethical. For example, timing may not be in your favor if you plan something during the general election, or in most recent cases, a global pandemic.

In order to measure the success of your stunt, it's important that you first determine your end goal, for example:

• Is the stunt aimed to raise money for your business or a particular organization?
• Is the stunt aimed to drive more traffic to your website?
• Is the stunt aimed to get more followers and engagement on Instagram?

Here are a few tips for creating a great publicity stunt:

• Research to ensure that there haven't been similar stunts done in the past by other businesses - this could easily turn off journalists and your audience.
• Make sure you can explain the stunt in one headline - this will help grab the media's attention. In other words, simplify!
• The stunt should be related to the product you are promoting. Even if the stunt is a success in terms of viewers, but it doesn't tie back to your original goal, then it's not useful.
• Keep the stunt visual with videos/images.
• Leverage the internet and social media platforms for your stunt by sharing your message across a variety of audiences. This will help with word of mouth and the overall success of your event.

To learn other strategies on how to get press, check out our full guide here .

🌱 How To Grow Your Home Decor Business

Consider Selling On Amazon

In addition to selling your products directly on your site, you may want to consider selling on Amazon to reach a wider audience and attract new customers.

Here are some pros and cons of selling on amazon:

• Easy and seamless process to get your product listed on Amazon
• There are roughly 100 million thoroughly committed prime customers, so you're bound to tap into new business
• Can help grow your business exponentially and reach new audiences
• You may encounter some "copycats" and counterfeit products
• Amazon owns the relationship with the customer (you lose control over product reviews + customer service)
• If you already have a low-markup, amazon may not wrth your while and you could end up losing money
• Commissions and listing fees are high - it's easy to lose control of your offering

Follow these instructions to get your product listed on Amazon or check out the video below on how to get started:

Cory Stout, founder of Woodies ($250K/mo) provides us with specifics on how to rank better on amazon:

Our main product is walnut wood sunglasses that I sell for $25 on Amazon and Woodies.com.

I dedicated myself to becoming an Amazon expert. I listened to all the podcasts and read all the blog posts I could find. Shoutout EcomCrew I took the basic fundamentals that are out there and I added a couple of my own twists.

Amazon brings me, 100 brand new customers, every day for very little acquisition cost. If I tried that on my own, it would take a TON of work and it wouldn’t be nearly as effective as Amazon, so I took the easy road on this one.

Here's an article I wrote on how to rank better on amazon (30+ Tips):

5/5: ESSENTIAL

• Beautiful images (minimum 5 images) especially lifestyle images I use UpgradedImages.com for product photography (hey Ken!)
• Keywords in your title (but it still needs to sound human)
• Competitive price (contributes to high conversion rate)
• NOT having 1-star reviews
• DON'T STOCKOUT: it's such a killer and if you DO stockout, definitely DON'T raise your price right before you do, if anything LOWER your price for the last 10-20 units before you stockout, each ASIN has a 'memory' for when you do get back in stock so that will help you regain ranking quickly
• DON'T VIOLATE AMAZON TOS: just don't
• Perform QC on your stock before you send it in (I sent in a wrong box once and I had to 'remove' over 3,000 pieces so I could sift through them and remove the 150 contaminated pieces 0/7 would not recommend

4/5: Pretty Friggin Important

• Minimum 10 5-star reviews (do this before you do anything below this)
• Well optimized PPC campaigns (could do a whole post on this, keep ACOS under 40%) here's a screenshot of some of my campaigns I use a combination of manual campaigns with exact phrases and high bids...and auto campaigns with a broad range of products and very low bids
• Turning on FeedbackGenius for auto review requests (it's not as good as it used to be, but it's still worth it)
• Get a trademark and get Brand Registry, this protects you from hijackers and other unscrupulous sellers
• Quick response to customer messages (under 12 hours) here are my stats my mom does all my customer service "Employee of the Year" status
• Drive outside traffic (amazon loves outside traffic because they don't have to spend so much to acquire customers) Facebook, Instagram, and Google Adwords are the usual suspects
• Use ocean shipping to save mucho $$$ on unit costs (use flexport)

Read more about amazon tips here .

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site , and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your home decor business.

• Google Ads Keyword Planner invaluable for discovering search trends.
• Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
• Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

• Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
• Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
• Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
• Ensure pages load quickly - This will also help with engagement and time spent on your website
• Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

• If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

• Create infographics with relevant data that people want to share
• Promote your content on different sites/look into "guest blogging"
• Contact influencers/journalists/bloggers and ask them to mention you!
• Write testimonials for other sites in exchange for a backlink
• Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

• Fascinating case study
• Video series
• Free week of the product
• Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here .

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

Add an exit-intent popup to your online store

A great way to double, or even triple, your email opt-in rate and to grow your list is to add an exit-intent popup to your site, and offering a discount or content upgrade for subscribers.

Here's an example of what that might look like:

One thing that I spent years NOT doing, that I now kick myself about, is adding an "exit intent pop-up" to our site, which lets people enter a sweepstakes to win a Xero Shoes gift certificate.

That one idea has added over 100,000 subscribers to our email list, which is one of our most effective marketing channels.

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

• Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
• Newsletters - a great way to give customers updates or send out your latest content
• Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
• Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
• Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Abandonded Cart Flow

The abandoned cart workflow is one of the most effective strategies for turning your lead into a customer, and a powerful tool to have if you're an e-commerce business.

Think about all the times that you went on a shopping frenzy only to add items to your cart and then either forget or realize nows not the right time to pull the trigger.

Then, minutes later you receive an email saying "Hurry up! Your cart is waiting - and we want to provide you with 20% off your order."

Maybe that's the special touch (and discount) you needed to pull that trigger.

Implementing this workflow can automatically trigger this for your business every time a customer abandons their cart.

Here's a great example of an abandoned cart email from Brooklinen :

Things they do well:

• Showcase 5-star reviews from other customers
• Offer a small discount + free shipping
• Great design + clear call to actions!

Experiment With Pay Per Click Ads (PPC)

Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.

Here are some tips to consider:

• Consider connecting the ad to your corresponding landing page so that the audience receives the necessary information after clicking on the ad.
• Conversion Tracking: When running PPC campaigns, be sure to run the ads with conversion tracking.
• Focus on quality keywords, even if there are few as this will save you time and money. When assessing the performance of a keyword, it's important to track the expense, conversion, and cost per conversion, as well as the ROI.

PPC advertising can be a very important lead generator as long as it's done properly. Your PPC campaign is intended to drive traffic to your website and help the business scale.

Additionally, if the campaign is not having the desired results, you can make the necessary changes immediately to improve them.

Ryan Schortmann, founder of Display Pros talks about their investment in PPC Ads:

My name is Ryan Schortmann and I’m the founder of Display Pros. We are a custom trade show display booth company offering easy to use portable display “kits” for small and medium businesses wanting to get into the trade show game.

It did not take long to come to the realization that to compete at any reasonable level, we were going to need to take the plunge and invest in Pay Per Click ads and display.

From experience, I know that it is important to give Google’s hivemind some time to settle in before each campaign starts seeing consistent results (this is largely dependent on budget).

A certain amount of PPC budget must be viewed as a “marketing research” expense and then you can look at the analytics data and make informed decisions on where to refine, tweak or plain scrap an idea.

Google Shopping was an entirely new concept for me. You can’t assign keywords to products so at first, I was asking myself “How the hell do you refine these?”. Then I found some good reading material and courses and learned of some advanced methods that the pros are using. It turns out you can utilize negative keyword lists combined with the priority setting on each shopping campaign to “shape” the keywords that are coming in and how much you are spending on them.

To learn more about PPC Ads and Google Shopping, check out this video to learn everything you need to know!

Build A Facebook Community

Building a community is a great way to grow your network and your business.

There are several different ways of building a community, one of the most effective (and simplest) ways is to build a Facebook group

Setting up the group page takes less than 10 minutes, and we've outlined ways the top 5 ways to create an engaging and successful group:

• Make the group exclusive. This may sound counter-intuitive, however, this ensures privacy and that the group will feel comfortable posting and engaging with members.
• Try to be warm and welcoming. A great way to do this is by having a "Member Monday" where you welcome new members and ask them to introduce themselves in the group
• Use polls/surveys. This is a great way to know your audience and see what people want more of in the group (more business tips, networking opportunities, etc).
• Include influential people & conduct AMA's (ask me anything). This is a great way to get members engaged
• Host an in-person (or virtual) event with members in the group. This will create stronger relationships and build a strong community.

Mike Doehla, founder of Stronger U, an online nutrition company noticed that his customers needed a little motivation and sense of community:

Most diets are lonely so we wanted to give support and a community.

I think many people fail diets because there is no one to talk to and no accountability.

You can by a book, or google a meal plan but who’s going to keep you on track? We will. The entire SU community.

We give our members access for life to our Facebook community filled with people around the world who are looking out for everyone’s success.

Most diets make up arbitrary rules and we thought they just didn’t make sense. Meal timing, Cutting carbs, butter in coffee, sugar being the devil? Ehh no need to overthink that stuff.

We’ll give you the science behind of what we do and show you what actually matters based on real research.

Luckily we have a PhD at our disposal to educate our staff and members so everyone is getting the most up to date information out there.

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to home decor business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

• Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
• Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
• Twitter Advertising - Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
• Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
• LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

• Do I want to simply drive brand awareness?
• Do I want to drive users to my website to gather information?
• Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here .

Founder Andy Hayes talks about mastering FB ads and the pixel:

The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.

We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.

Some of the most important things to know when it comes to FB Ads:

• Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
• Once you have that down, try working with the 1% “Lookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
• Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
• Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.

Host A Social Media Giveaway

People love free stuff and love competition. Giveaways and contests are a great way to create awareness for your brand, grow your email list, and eventually convert leads into customers.

If your goal is to gather email addresses, make sure the entry criteria is to "enter your email." You can do this by leading customers to your landing page where they can then enter their email to be in the giveaway.

One of the most important aspects of promoting a successful giveaway is having an amazing prize. The better the prize, the more engagement you'll get.

This doesn't necessarily mean choosing an iPad or an expensive/trendy watch, but instead a prize that is actually relevant to your brand/target audience.

Giveaway Example and Tips

Example from TJ Mapes, founder of RIPT Apparel

Our most recent successful giveaway was when we gave away a PS4 + the new Spiderman game. I hosted the giveaway on our site and then let our audience know about it via email/social channels.

Entrants earned different amounts of entries for entering in different ways (tongue twister!), for instance; enter via email, get 10 entries. Follow us on Facebook, get 5 entries. Subscribe on Messenger and get 25 entries .

I also built out a drip sequence in Klaviyo that contained four emails to encourage entrants to take more action, like referring friends and liking us on social.

Email #1: Thanks for entering!

Email #2: Explained how to earn bonus entries:

Email #3: About us

Email #4: Coupon for entering

This last email in the sequence just thanked them again for entering and also included a coupon to a specific (related) collection of designs with an expiration date on it to incentivize purchases.

PS4 Giveaway Results:

We ran it for 2 weeks and recorded results in a meticulous spreadsheet to analyze the data. Here are some of the highlights:

• Giveaway page pageviews - 67,355
• Total entrants - 26,137
• Conversion rate - 38.80%
• Total entrants in Klaviyo (not suppressed) - 24,515
• New emails acquired - 16,363
• Emails we already had - 7,521
• % of new emails - 66.75%
• Cost of item - $350
• Instagram visits - 10,618
• Instagram followers gained - 3,496 ( total followers lifted by 6.9% )
• Twitter followers gained - 4,194

🏃🏼‍♀️ How To Run Your Home Decor Business

How To Retain Customers For Your Home Decor Business

Retaining customers is one of the most effective ways to grow your home decor business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your home decor business:

• Responding to comments on social media
• Send discounts (or freebies) to loyal customers
• Provide valuable content, for free
• Write a hand written thank you note
• Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

James Wolfer, founder of Valhalla Wood Forge dives deep into the process of attracting and retaining customers:

Really, focusing on social media and great customer service has been our two biggest advantages. I try to be extremely responsive to customers and potential customers, including doing digital mockups of their customization requests. For a physical product, Instagram has been our best referral for rings, especially with the stunning product photography my wife does. I rarely have done paid ads, focusing instead on generating organic followers who will actually buy my products. Shopify is amazing for this, as it can directly plug into Facebook and Instagram, so we’re able to tag our products on both and have people click through to our site direct from Instagram.

To grow the follower count organically, I’ve hosted a few giveaways of larger items, such as our wood flags. Lately, I’ve partnered with some smaller influencers in similar niches, such as construction and the veteran community, to do joint giveaways where in order to win, you have to follow both accounts and comment on the giveaway post. This makes Instagram’s algorithm recognize engagement, which then leads Instagram to push these posts higher in search results. I’ll usually do a paid boost for these posts, around $50 or so, which makes the engagement skyrocket. This helped grow the follower count to where it is today, around 4,000. In order to keep these followers, however, I make sure that I post a quality post, once a day.

Lately, I’ve found that engagement seems highest when I post a good mix of high-quality product photos, as well as “lifestyle” photos showing us in the shop working, or out and about living life while wearing a ring. For example, I often post photos that customers send in of their flags hanging in their houses, or wedding photos their photographer took of them with our rings on.

I wish I treated it more like a business earlier on instead of a hobby. If you are passionate about something and making a little bit of money with it, you can turn that into a lot of money.

Also, as I mentioned above, you just can’t beat great customer service. I answer emails within hours of getting them whenever I can. If a ring has a defect that is my fault, I make it right, no matter what. Often, even though I have a no return policy, I will go above and beyond to help customers who damage their rings or got sized wrong, replacing or resizing rings for free. This has reflected in my reviews on both Etsy and Shopify, with all 5-star ratings so far. The biggest thing I keep hearing and seeing is how great our customer service is, and I’ve definitely started seeing an increase in repeat customers.

Finally, I’ve started increasing paid ads on Etsy. Etsy is probably 20% of our orders, but it’s a built-in marketplace. In August, they changed their ad structure and it costs quite a bit more for results. I saw a lot of sellers complaining about this online and decided to move away from Etsy entirely. Since Etsy is only a portion of our gross revenue, I decided to do the opposite, and more than doubled my ad spend within Etsy. This has resulted in a HUGE increase in sales for the last couple of months. But really, I think I have my budget at $2.50 a day and it’s paid off about with an average of ten times ROI, leading to September being my best month ever on Etsy, during a typically low performing month for handcrafted goods.

Etsy order history YTD - I started using Etsy ads heavily starting in September

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

• Meeting the needs of your customers
• Establish yourself as a top provider in your industry and stay ahead of the game with competition
• Resistance to downturns/trends fading
• Create new revenue streams

Provide Great Customer Service

Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.

Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.

Just remember: customer service represents your brand, values, vision and YOU as a person.

Outsourcing

If you can afford to hire someone to help support your home decor business, outsourcing is a great way to save you time and energy.

Most importantly, outsourcing can help you focus on the core growth of your business, versus spending your time on day to day tasks that other people can do just as well!

If you do plan to outsource your work, it's important to be hyper-familiar with the actual work involved.

Why is it important to be hyper-familiar with the work?

• So you can understand how long it takes
• So you understand the full process, edge cases, things that can go wrong.
• So you can explain it in detail to your employee.
• So you can make sure it actually works (for example - how do you know cold email works for your business if you’re not on the ground floor trying it out?)
• Understanding the tasks at a deep level will save you a lot of time and money.

Authenticity

As a brand, you want to deliver an experience that authentic, honest and transparent.

Don't make the mistake of giving your audience less credit than they deserve.

Be Authentic

If you go around chasing every trend and only focused on yourself and money, you’re going to lose very quickly.

There have been many times where we have been tempted to do this but stayed true.

Sure we sacrificed sales, but we kept our integrity, played the long game and people saw and appreciated that, and really began emotionally investing in the brand.

Build a Referral Program

Word of mouth is one of the best ways to get the word out about your business and acquire new customers. Especially when you are starting out, it’s important to build a solid referral program to encourage existing customers to help you find new ones.

A great way to do that is by offering a reward (ie. credit on your service or cash) to customers that refer you to their friends and family.

A fantastic referral program will help with clout, credibility, and establishing yourself in the space.

Word of Mouth

The most tried and true way to grow a home decor business is through word of mouth - some entrepreneurs would say it's more important than all social media.

Why you should focus on word of mouth:

• Consumers trust word of mouth above all other forms of marketing
• 92% of consumers believe recommendations from friends and family over all forms of advertising
• 64% of marketing executives indicated that they believe it is the most effective form of marketing

Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜

We put together the best resources on the internet to help you start your home decor business.

• Platform tools such as Shopify , WooCommerce , Etsy , Wix.com or Canva
• Email tools such as MailChimp , Constant Contact , Omnisend or G Suite
• Social media tools such as Facebook , Instagram , Twitter , YouTube , Pinterest , LinkedIn , Snapchat , PromoRepublic or Tiktok
• Advertising tools such as Facebook Ads , Instagram Ads or Google Adwords
• Design tools such as Canva , pixlr or Adobe Suite
• Shipping tools such as ShipStation , USPS , Sendcloud , UPS WorldShip , Pirate Ship or UPS
• Analytics tools such as Google Analytics
• Productivity tools such as Google Suite
• Payments tools such as Paypal , Shopify Payments , Square , Apple Pay or Venmo
• Blog tools such as WordPress or Squarespace
• Accounting tools such as Quickbooks
• Reviews tools such as Stamped.io
• Freelance tools such as Fiverr
• Seo tools such as Ahrefs or Yoast
• Web hosting tools such as GoDaddy or Cloudways
• Stock images tools such as Pexels
• Software deals tools such as AppSumo
• Financing tools such as Shopify Capital
• Wholesale tools such as Faire.com
• Home Staging for Profit: How to Start a Six Figure Home Staging Business and Begin in 7 Days or Less

How To Start A Home-Based Interior Design Business, 5th (Home-Based Business Series)

Good to Great: Why Some Companies Make the Leap and Others Don't

Web Resources

• How To Start A Home Decor Business - Offline & Online
• Ideas For Starting A Home Decor Business - The Spruce
• How To Sell Home Decor Products Online
• Starting A Home Decor Business - From 9-5 To Entrepreneurship

Case Studies

• How I Started A $4K/Month Veteran And First Responder Woodworking Company
• I Turned My Hobby Into A $4.5M/Year Metal Wall Art Business
• How I Started A $8K/Month Home Organizing Service
• How My Home Decor Making Side Hustle Grew Into A $5K/Month Business
• How I Started A $3K/Month Interior Design And Organization Online Service
• My Niche Interior Design Blog Website Attracts 40K Visitors Every Month
• 750+ Trendy Home Decor Business Names 1 of 10
• 9 Tips For Starting A Successful Home Decor Business (2024) 2 of 10
• 625+ Trendy Home Decor Slogans & Taglines 3 of 10
• 300+ Powerful Interior Design Instagram Bios In 2024 [With Examples] 4 of 10
• 75 Best Interior Design Post Ideas & Topics That Your Audience Will Love [2024] 5 of 10
• 75 Marketing Ideas For A Home Decor Business (2024) 6 of 10
• How Much Does It Cost To Start A Home Decor Business? (In 2024) 7 of 10
• 42 Trending Home Decor Businesses [2024] 8 of 10
• 21 Pros & Cons Of Starting A Home Decor Business (2024) 9 of 10
• 11 Home Decor Business Success Stories [2024] 10 of 10

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Home Decoration Fabrics Business Plan

Start your own home decoration fabrics business plan

Interior Views LLC

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Interior Views is a retail store offering home decorator fabrics and complementary home accessories and resources. It is now approaching its fifth year in business. This destination store offers the advantages of providing fabrics specifically designed for home decorator use in fabric widths of 54 inches and greater. Over 900 fabrics are available on the floor at any time with more than 10,000 sample fabrics for custom “cut” orders. Customers see, touch, feel, and take the fabric to their home as they work through with their purchasing decision.

Interior Views has learned much from the past years of operation, the market has changed, and will be making key decisions, including the upcoming 5-year lease. Now is the time to step back, look at the past, and attempt to set a strategic direction for the future. This is the primary purpose of this business plan. It will address location, finance, product, and service issues that will be key to the future success of the business.

Interior Views currently has a local informational content website but has not given it the attention or focus needed to assess its marketing potential. The site offers information content, but it does little to produce revenue or enhance the image of the business.

Market research indicates a specific and growing need in and beyond the local area for the products and services Interior Views offers in the local retail market it serves and there are indications that Web sales will play an increasing role in connecting customers with sellers. The most significant challenge is that the core target customer, women between the ages of 35 and 50, are some of the least likely of groups to shop on the Web. Shopping for decorator fabric presents an additional challenge.

The online marketing objective is to actively support continued growth and profitability of Interior Views through effective implementation of the strategy. The online marketing and sales strategy will be based on a cost effective approach to reach additional customers over the Web through the use of an eBay website to generate attention and revenue for the business. The Web target groups will include the more Web-savvy younger customer base that the store currently serves (women between the ages of 25 and 35) and out-of-area potential customers that are already shopping on the Web for the products Interior Views offers. The eBay website will focus on its selection, competitive pricing, and customer service to differentiate itself among other Internet options.

1.1 Objectives

• Maintain a healthy gross margin each month.
• Generate sales each business day each month.
• Realize a modest annual growth rate this year.
• Increase revenues through eBay-based sales to $5,700 per month by the end of the first year, with a 5% growth rate thereafter.
• Meet the needs of customers outside the immediate serving area through eBay/Web accessibility.

1.2 Mission

Interior Views LLC is a store for discerning, quality-conscious buyers of decorator fabrics and complementary home accessories and furniture. The store celebrates the home through the color and texture of fabric. The experience informs, inspires, and shows people how to transform their home into a unique and personalized expression of themselves. Interior Views seeks to encourage people to imagine what can be, and help make this vision a reality.

1.3 Keys to Success

The primary keys to success for the company will be based on the following factors:

• Sell products of the highest quality with excellent customer support
• Communicate with our customer base through continued use of the newsletter, postcards, and our website.
• Maintain gross margins in excess of 45%
• Retain customers to generate repeat purchases and make referrals.
• Generate additional sales to cover all expenses in support of the website as an individual profit center.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Interior Views offers quality products for home decorating featuring first quality decorator fabrics, related drapery hardware, pillow forms and other sewing notions, as well as home accessories and select antiques to complement the home’s interior. The store is also a resource for the “do-it-yourselfers” through hosting associated classes that focus on the use of fabric, as well as for the “make-it-yourself” customer who is able to take advantage of the craftspeople who will use their fabrication and upholstery services based on the fabric purchase of the customer. The intent of the store and its website is to be considered the premier choice for these products and services within our market and beyond.

2.1 Company Ownership

Interior Views is a Limited Liability Company. It is owned by two couples, the Williams at a combined 70% ownership and the Swansons at 30% ownership. Judy Williams is president, Doug Williams assists her in select areas of marketing and store layout. The Swansons take a “silent partner” role in the venture.

2.2 Company History

The business has had a surprising journey since is opening on December 16, 1996. Certainly, none of the shareholders would have guessed its course.

The past revenue performance table summarizes the annual performance for the past three years. After a slow but steady increase in revenues, year five showed a disappointing reduction in total revenues. This was particularly evident for in-stock fabric revenues while special order fabric, particularly higher end purchases, held its own. This reduction in revenue has caused the store to limit purchases and minimize expansion in new product areas that offer potential, but require cash for this product line expansion. The “Oval Office Iron” line is one example of this.

On a more tactical basis, the following categorizes our marketing activities as “Do It Again” and “Did Not Work.” This was determined on the return on investment (ROI) based on trackable sales that resulted from these marketing efforts.

Do It Again

   Marketing

• Quarterly Newsletter containing three elements:
• Sales Event – Ten-day sales running from Wednesday, through week, and ending on the following Saturday.
• Fabric Oriented Classes – Predominately sponsored without an associated fee to get people into the store.
• Events – open house, demonstrations, and/or charity fund raiser.
• Newspaper ad with “call to action” sale events in the Pleasantville Herald for sales activities with the Wednesday “Entree” section announcing the sale.
• Television advertising-30 second commercials:
• Co-sponsorship of the local broadcast of “Martha Stewart” on a consistent, ongoing basis throughout the year.
• Select sponsorship of the local broadcast of “Interior Motives” on the local cable channel.

   Product Development

• Explore the use of local craftsmen, including our success with Mike and the “Oval Office Iron” product line we created, versus using unreliable manufacturers.
• The Antique Bureau has been a perfect fit in terms of bringing a steady quantity of qualified customers and Teresa herself has been a tremendous addition.

Did Not Work

• Advertising and sponsorship of local ballet and opera performance programs.
• Advertising in Pleasantville Junior League Newsletter.
• Advertising in the Downtown Athletic Club Newsletter.
• Local television advertising on talk show formats, news shows, and general audience programs.
• Hilton Hotel “In-room” book advertisements.
• The slip covered furniture line–too costly and people did not see the value.
• Architectural storage and shelving pieces–value was a major question here as well.

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• Don’t bring people on board who don’t understand the essence of the store. Assess if they would be customers themselves.
• Screen sub-lease candidates as closely as you would an employee.

2.3 Company Locations and Facilities

Interior Views is located in Pleasantville, Ourstate. It is not situated in a typical retail location. This older, warehouse-type section of downtown continues to emerge as a retail area and does hold promise. REI is across the street, a dance and theater retail store has just recently moved next door, and a fitness center remains active around the clock. The location was selected due to the “destination” aspects of the target market–they will seek out these types of stores regardless of location as long as there is parking and it is safe. The look and feel of the street environment continues to improve with recent parking and landscape enhancements. The attractive aspect is the cost of the space and it’s “warehouse” charm. The challenging aspect is the lack of foot traffic and drive-by exposure.

The 5-year lease is up in December and potential relocation or reductions in the lease are both a possibility with one of the highest vacancy rates of commercial and retail space in the market the past decade.

Interior Views focuses on selling decorator fabric for use in the home. It is available through the purchase of in-stock fabric and through a special order arrangement. Other fabric-related complementary products include trims, pillows, ribbon, and thread.

Additional products now available in the store include:

• Hunter Douglas products including a variety of hard window coverings.
• Interior shutters made of wood and a plastic/resin product called “polywood.”
• An in-house line of drapery hardware (replacing “Antique Drapery Rod” products) locally manufactured products that we design and market under the product name of  “Oval Office Iron” offering wrought iron drapery hardware (We have plans to expand this to also include other metal home decor products and potentially outdoor garden products.).
• Home accessories through a “percentage” relationship with “The Window Seat” and Sarah Melvin.
• Antiques through a sub-lease revenue arrangement with Teresa Mitchell and “The Antique Bureau.”

Initially, our eBay store will focus on fabrics and home decorating products and accessories. The size, weight, and custom dimension shipping constraints on our “Oval Office Iron” wrought iron drapery hardware will initially preclude our offering this product line on the eBay store.

3.1 Product Description

Our primary points of differentiation offer these qualities:

• Complementary product offerings, including hard-covering window treatment, hardware, home accessories, made-to-order upholstered furniture, and antiques that are designed, selected, and displayed in a way to emphasize the use of fabric in home design.

Interior Views will qualify for the most attractive retail discount through these suppliers, offering greater profit margins and more competitive pricing for bolt purchases in quantities of 50 to 60 yards, or in half of that yardage with a “cutting fee” that often increases cost per yard by $.50 to $1.00 depending on the source. The primary product lines will include fabrics from the following textile sources:

Complementary accessories, including fabric trims, drapery hardware, and hard-covering window treatments, are supplied from the following sources:

• Grumman: Threads

Again, we have also created a line of metal drapery hardware called “Oval Office Iron” that has replace the Antique Drapery Rod line. A local craftsman, Mike Overman, produces these products based on our specifications and requirements.

3.2 Competitive Comparison

Our competition has changed. When we opened the store, we considered the classic fabric stores within the state to offer the greatest amount of competition. The competitors have increased primarily due to expansion of nationally recognized businesses.

• Bed, Bath and Beyond moved into the market recently, within one mile at an excellent location.
• Discount stores including Targe t, Wal-Mart, and Home Depot have expanded their fabric, bedding, pillow, and ready-made drapery selections often representing lines including Waverly and in some cases, with the same fabric.
• Norwalk continues to make purchasing “blank” furniture and making a fabric selection an attractive option to recovering furniture.
• Catalog sales continue to be a strong force with a list including Pottery Barn, Calico Corners, Ballard Design , and Eddie Bauer expanding purchasing selection.
• The list of competitors for home accessory competition includes Pier 1 and local competitors including  Reed & Cross,  The Shamrock and a list of other furniture, accessory and gift stores.
• Web sales of fabric has expanded dramatically and is easily available.

3.3 Sales Literature

Our most significant piece of literature continues to be the newsletter. This “federal-style” newsletter goes out three times each year and features:

• Sale events
• Class schedules
• Fabric design suggestions
• “Dear Decora” with useful, but meant to be humorous, decorating advice

The newsletter is sent bulk mail and we also send postcards to promote a special sale and/or event.

Our informational website will now display our newsletter online, and have an archives of previous issues. We will use our eBay customer database to send email newsletters to those who opt-in to the service.

All of our new literature and reprints of current material will include listings or active links to our home site and our eBay store site.

3.4 Sourcing

A majority of the fabric is purchased through 12 major fabricators. Reps visit regularly, they are available by phone, and are present at the four major trade shows that occur throughout the country. 

Trims and Notions

There are three major sources of trim and notion providers.

Drapery and Window Treatment Goods

Hunter Douglas is the primary source of hard window coverings including duettes, vignettes, verticals, shutters, and other products. The “Oval Office Iron” line is created by local craftsman.

Our eBay store sales will be fulfilled from Interior Views’ main inventory.

3.5 Technology

Technology has changed the industry and the business through the Internet. Information about product availability and pricing is easily available. The low cost and easy process of shipping fabric has made this more interesting.

3.6 Future Products

Future products may include:

• Expansion of the “Oval Office Iron” line to include metal home accessories and garden-like accessories, lamp fixtures, and other metal fabricated products.
• Other furniture lines that complement fabric sold in the store.
• Patterns that enable the “do it yourselfers” to complete their project, such as the resin chair pattern.

Market Analysis Summary how to do a market analysis for your business plan.">

The store has been well received since its opening on December 16, 1996. Marketing, combined with an optimal product offering, is critical to its continued success and future profitability. The store offers the most extensive selection of in-stock decorator fabrics, but the volume sales of special order fabric is the fastest growing area of the store. The basic market need is to offer a good selection of decorator fabrics at reasonable prices, for the “do-it-yourself” and the “buy-it-yourself” customers, through a personalized retail store that offers excellent service, design assistance, and inspiration for people to redecorate their homes.

We possess valuable information about our market and know a great deal about the common attributes of our most prized and loyal customers. We will leverage this information to better understand who we serve, their specific needs, and how we can better communicate with them.

4.1 Market Segmentation

The general profile of the Interior Views customer consists of the following geographic, demographic, psychographic, and behavioral factors, with additional comments regarding the Web attributes of this customer base. It is important to understand the attributes of the current retail customer, as we develop the Web customer base. We believe that the overall characteristics of our established local clientele can be extrapolated to a national level, and can be reached via the Internet and our eBay store.

Geographics

• Our immediate geographic market is the Pleasantville area, with a population of 175,500.
• A 100-mile geographic area is in need of our products and services.
• The total targeted area population is estimated at 573,300.

Demographics

• Have children, but not necessarily at home
• Have attended college
• A combined annual income in excess of $75,000
• Age range of 35 to 55 years, with a median age of 42
• Own their homes, townhouses and/or condominiums valued at over $225,000.
• If they work out of the home, it’s by choice in a professional/business setting.
• Belong to one or more business, social and/or athletic organizations, which may include:
• Downtown Athletic Club.
• Pleasantville Country Club.
• Junior League of Pleasantville.
• American Business Women’s Association.

We know the following regarding the profile of the typical resident of Pleasantville:

• 67% have lived in Pleasantville for 7 years or more.
• 23% are between the ages of 35 and 44.
• 40% have completed some college.
• 24% are managers, professionals and/or owners of a business.
• 53% are married.
• 65% have no children living at home.
• 56% own their residence.

Psychographics:

• The appearance of her home is a priority.
• Entertaining and showing her home is important.
• She perceives herself as creative, tasteful and able, but seeks validation and support regarding her decorating ideas and choices.
• She reads one or more of the following magazines:
• Martha Stewart Living
• Country Living
• House Beautiful
• Country Home
• Metropolitan Home
• Traditional Homes
• If she does seek out television as an informational source for home decorating that is most likely to be “Martha Stewart” and, on a lesser basis, “Interior Motives.”
• She takes pride in having an active role in decorating their home.
• Her home is a form of communicating “who she is” to others.
• Comparison positioning and stature within social groups are made on an ongoing basis, but rarely discussed.

Web Attributes

We used to be concerned that this particular segment was not know to Web-savvy. Unfortunately, the age group of thise women was one of the smallest groups that looks to the Internet for information and spends time there for research. This is not good for website sales in our niche industry.

However, as time has passed and the cost of computers and Internet access has plummeted, and the ease of Internet use in general, and consumer e-commerce has increased, our earlier fears have been assuaged.

We will pursue an eBay store website positioned to take advantage of the current and future potential of Internet retail. This group has become increasingly comfortable with the Web, and the “Professional Youngsters” are already using this as a resource.

4.2 Target Market Segment Strategy

Our marketing strategy is based on becoming the resource of choice for people looking for decorator fabrics. The “do-it-yourselfers” and “buy-it-yourselfers” need a resource to create a look in their home. Our marketing strategy is based on superior performance in the following areas:

• Product selection.
• Product quality.
• Customer service.

The target markets are separated into four segments; “Country Club Women,” “Boomers in Transition,” “Professional Youngsters” and “Home Builders.” The primary marketing opportunity is selling to these well defined and accessible target market segments that focuses on investing discretionary income in these areas:

Country Club Women — The most dominant segment of the four is comprised of women in the age range of 35 to 50. They are married, have a combined income of greater than $80,000, own at least one home or condominium, and are socially active. They are members of the Pleasantville Country Club, the Downtown Athletic Club, the Junior League of Pleasantville, AAUW, and/or the Doctor Wives Auxiliary. They have discretionary income, and their home is a priority. The appearance of where they live communicates who they are and what is important to them. This group represents the largest collection of “Martha Stewart Wanna Be’s,” with their profile echoing readers of Martha Stewart Living magazine, based on the current demographics described in the Martha Stewart Living Media Kit .

Boomers in Transition — This group, typically ranging in age from 50 to 65, is going through a positive and planned life transition. They are changing homes (either building or moving) or remodeling due to empty nest syndrome, retirement plans, general downsizing desires, or to just get closer to the golf course. Their surprisingly high level of discretionary income is first spent on travel, with decorating their home a close second. The woman of the couple is the decision maker, and often does not always include the husband in the selection or purchase process.

Professional Youngsters — Couples between the ages of 25 and 35 establishing their first “adult” household fall into this group. They both work, earn in excess of $50,000 annually, and now want to invest in their home. They seek to enjoy their home and communicate a “successful” image and message to their contemporaries. They buy big when they have received a promotion, a bonus, or an inheritance.

Home Builders — People in the building process, typically ranging in age from 40 to 55, are prime candidates.

4.2.1 Market Needs

• Selection – A wide choice of current and tasteful decorator fabrics.
• Accessibility – Buyers can walk out of the store with the fabric they need to begin their project.
• Customer Design Services – Employees have a design background to make them a resource for the customer. This enables customers to benefit from suggestions regarding the selection of their fabric and related products in a manner to complement their design choice.
• Competitive Pricing – All products will be competitively priced in comparison to stores in the Portland, Oregon market (best price comparison) and other channels of distribution, such as catalog sales.

4.2.2 Market Trends

The home textile market, including sheets, towels, draperies, carpets, blankets, and upholstery, accounts for 37% of all textile output. The trade publication “ Home Textiles Today ” estimates the size of the U.S. home textiles market at the wholesale level, excluding carpets, to be between $6.5 billion and $7 billion annually. The industry is expected to realize a steady increase over the next few years.

The industry is driven by the number of “household formations,” which is expected to continue through the first years of the new millennium. This is primarily due to the solid growth in the number of single-parent and non-family households. This growth also comes from baby boomers needing bigger houses to accommodate growing and extended families and, as people get older, they are buying homes rather than renting to realize tax and equity building benefits. Favorable mortgage rates will also enable others to invest in their existing home.

The “do-it-yourself” (DIY) market continues to grow and closely parallels the professional home-improvement market. DIY market growth is attributed to an increased presence of products, the personal satisfaction experienced, and the cost savings customers realize. A portion of the do-it-yourself market is the “buy-it-yourself” (BIY) market. Consumers are buying the product and arranging for someone else to do the fabrication and/or installation. This is more expensive then the do-it-yourself approach, but less costly than buying finished products from other sources. It also provides similar feelings of creativity, pride, and individuality associated with direct creative involvement. This sense of “participation” in home decorating is an important factor for many of these committed customers.

Regardless of this data, the following trends and issues impact the success and challenges of Interior Views.

• National economic health — The store does better when the country experiences “good times” regardless of its direct impact on the local economy. Sales decrease when the stock market falls and when NATO takes military action. An upbeat State of the Union address by the President correlates with an increase in sales.
• New home construction activity — More closely related to what is taking place in our local economy, new home construction has a significant impact on sales across all product lines.
• Shifts in design trends — Major changes in design trends increase sales. The Pleasantville market lags behind metropolitan design trends by 6 to 12 months. This offers a buying advantage for the store, offering a preview of what is coming and how we should adjust our in-stock inventory.

4.2.3 Market Growth

American Demographics projects that the number of U.S. households will grow by 16% to 115 million by the year 2010. Almost half of the households comprised of people from 35 to 44 years old are married couples with children under the age of 18. Based on this research, households in the 45 to 65 age range will grow to 45 million in 2010 as baby boomers add to this peak-earning and spending age group. These families will either build new homes or move into existing dwellings. With approximately 46.2% of the nation’s 93.3 million dwellings built before 1960, many of these homeowners are also expected to update.

One important factor is that married couples in the 35 to 65 age range represent a growth segment and enjoy larger incomes than other family structures. They enjoy the choice of spending their disposable income on life’s amenities. They may demonstrate “cocooning” by making their home a more comfortable and attractive haven. They choose to spend resources here rather than on vacations and other discretionary options. This group represents a larger subsegment of the target market.

These factors contribute to an increased need for home decorator fabrics, such as window treatments, upholstery, pillows, bedding, and other fabric accessory needs. This demand is expected to be complemented by the growth in the Pleasantville market. The majority of homeowners spend a large percentage of their disposable income on home goods within two years of buying a new house. Therefore, positive trends in new housing activity represents growth and opportunity for home textiles.

Recent slow downs in the local economy have resulted in falling sales projections and these factors will affect market growth. Adding revenues through the website will likely benefit the revenue stream.

4.3 Industry Analysis

The industry continues to be competitive with a “commodity” concern from both manufacturers/fabricators and retail players–the fabric is looking more alike all the time. Based on Porter’s Five Forces Model, the industry has these attributes:

• Potential Competitors – There are many, both on the Web and through other channels including retail and catalog sales. Loyalty on the Web does not exist and the barriers to entry are very low. Percent of business failures are high–estimated to be over 70% in the first three years of operation.
• Power of Suppliers – Moderately high in that there are recognized leaders in the industry, including Waverly, Fabricut, P/Kaufmann, Robert Allen, and Covington.
• Power of Buyers – Very low as buyers work with the financial terms and product availability offered through the suppliers that specify the terms and conditions.
• Substitute Products – High in the area of window treatment as hardcovering solutions have become available and increasingly affordable. This includes blinds, shutters, and other “manufactured” treatments. Substitute products are not as prevalent for other uses, such as bedding and upholstery.
• Rivalry – Moderately low with the “territorial” structure that the industry experiences and moderately low exit barriers. People get out when it is not working.

With the slow, but steady, growth of the past few years, the industry is now experiencing a “cautious optimism” regarding the future. Growth and expansion activities for most areas of the home and textiles industry appear to be carefully considered as marketing continues to decide what to do as the economy experiences a slowdown and increased uncertainty from the more economically confident 90’s.

Our eBay store will initially focus on these Categories:

• Collectibles – Linens, Fabrics, Textiles
• Crafts – Fabric, Upholstery Fabric
• Home and Garden – Home Decor, Door Accessories, Floral Decor, Screens and Room Dividers, Slipcovers, Wall Decor
• Window Treaments

4.3.1 Industry Participants

Industry participants in the area of decorator fabric come from five general categories: traditional fabric retail stores, catalog and Web-based sales, click and mortar discounters, interior designers, and the individually owned and operated stores. Most of these players have some type of an online presence. The following provides an overview of the type of participants that are most active and most successful in this arena.

Traditional Fabric Retail Stores The traditional retail stores are corporate stores (not franchises) that have multiple locations in select metropolitan markets. Example of these stores include:

• JoAnn’s www.joanns.com – Nationwide chain with strong buying power. They have a broad fabric selection for clothing with a limited number of in-store decorator fabrics available. Their primary target markets are the clothing seamstress, with an increasing emphasis on craft items. JoAnn’s purchased the House of Fabric chain and has a link set up from the previous URL www.houseoffabrics.com.
• Calico Corners www.calicocorners.com – This national chain was a franchise through the 1980s (no longer selling licenses) and has been purchasing those stores throughout the country. Calico Corners stores number approximately 90 and are in most larger cities, with a concentration in the Northeast.

Catalog and Web-based Competitors Virtually every catalog and major retail store in the industry now has a website. The most aggressive and direct catalog competitor is Calico Corners (www.calicocorners.com) which complements their 80+ retail store network. An increasing level of competition is anticipated from these catalog and Web-based sales. Recent trends, such as those demonstrated in the well established, but still evolving, catalog Pottery Barn (www.potterybarn.com) and Ballard Design (www.ballarddesigns.com) indicates increased interest in offering decorator fabric for window design and upholstery through this increasingly popular channel of distribution. Catalog sources do not offer customers the option to see, touch, and have the fabric in their homes. Price is the most significant competitive factor this product source presents. In general, fabric sales over the Web have increased substantially in the past two years and present a source of competition for the future.

Click and Mortar Discounters Channels of distribution continue to shift in favor of discounters, who account for a significant portion of the growth in the industry and who have been extremely active on the Web. As consumers experience lower levels of disposable income, discounters leverage frequent store promotions to entice frugal, value-oriented consumers. One of the biggest criticism of discounters is their failure to offer a quality service experience and their failure to present inviting displays to promote sales. These discounters, along with specialty store chains, present one of the most severe competitive threats for individually-owned specialty stores. This is partially due to extensive promotional efforts, price advantages, and established relationships with their vendors.

One example of these discounters is the “home improvement” chains, such as Home Base (www.homebase.com). This aggressive retailer has adopted a strategy to include complete decorator departments in their metropolitan stores. Currently existing in the Los Angeles market, this strategy is anticipated to be introduced into the Seattle area and other select metropolitan markets within the year. Although the Pleasantville Home Base store sells basic curtain rod hardware and other hard cover window treatment, there are no known plans at this time for the Pleasantville Home Base store to implement this in the foreseeable future. Bed, Bath & Beyond (www.bedbathandbeyond.com) has an even larger assortment of hardware with a selection of pre-made solutions for window treatments, bedding and pillows. Both of these retailers have stores in our market and with selection activity on the Web, this will be important to monitor for competitive purposes.

Interior Designers This large group makes up a substantial quantity of higher end fabric purchases. For example, there are 37 interior designers listed in the Pleasantville Yellow Pages (Year 2001-2002 issue) that offer fabric as a part of their services. Interior designers make profit off mark-up of fabric in addition to their hourly services charges. Their costs per yard are typically higher since they do not benefit from retail or volume discounts. Therefore, their cost to the customer is often two to four times higher than the price per yard from Interior Views. It is unusual to find an independent Interior Designer with a website.

Individually Owned Stores Some form of locally owned stores exist in virtually every market with a population of over 50,000. Typically, the low end begins with those that carry a limited selection of decorator fabric, often with a focus on clothing fabric and crafts. At a slightly more sophisticated level, stores may offer low-cost products with a wide selection of discontinued fabrics and only a limited number of “current” fabrics; this may be a warehouse concept offering a wide variety of products, including car and boat fabrics and materials. “Full service” individually owned stores, like Interior Views, are less prevalent. An increasing number of these stores at all level do have websites, including this local competitors’ example, Econo Sales (www.econosales.com).

4.3.2 Distribution Patterns

Our primary method of distribution continues to be the traditional retail store. The greatest opportunity for growth lies in the proposed website strategy. The concept behind this is to reach these key groups listed in order of importance based on their expected use and purchases from the site.

• Professional Youngsters – Expected to be the most likely of the targeted segments to use this resource because of their relatively high Internet use compared to the other segments. This group should offer the greatest online revenue opportunity.
• Outsiders – Comprised of people outside the area with Internet access that have come in contact with the physical store or learned of it though a referral or promotion. This group, most commonly located in rural areas of the Western U.S. and Hawaii, are expected to be a small but faithful sector of buyers.
• Online Fabric Shoppers – Most often find the site through search engines and these online decorator fabric shoppers are browsing multiple sites for a best buy or access to discontinued and hard-to-find fabric. They hold potential, but are typically the most work for the lowest return.
• Internet Learners – Represents all of the targeted segments that are just beginning to become familiar with the site and will increase their use of the Internet over time. Revenue expectations from this group are low at this point and it is viewed as an investment in the future.

4.3.3 Competition and Buying Patterns

Competition in the area of decorator fabric comes from three general categories, traditional fabric retail stores, catalog sales, and discounters. Customers make decisions on the basis of quality, price, and uniqueness. Durability and wear apply to upholstered fabric. Additional detail on all competitors will be provided.

Internet Presence

Competitors in our industry have discovered the Internet, but appear to be seeking to discover what works and what doesn’t. Interior Views’ content site and eBay store will seek to complement the store’s presence and expand that reach to other potential customers outside the area. It will have direct click-through links to our eBay store. Our eBay store will also have links taking viewers back to our content site.

Interior Views features a selection of the most popular fabrics from these fabricators on the store site:

• Robert Allen Fabrics
• Waverly Fabrics

Complementary product offerings will include smaller fabric mounting hardware, decorative accent pieces, and other non-fabric items from our main store merchandise.

Because of size, weight, shipping and custom measurement constraints we will not initially offer our “Oval Office Iron Works” drapery hardware. It will only be available in our Pleasantville store. It might be added to the eBay store later.

4.3.4 Main Competitors

Retail Stores

Current local competition includes the following:

• House of Fabrics — Nationwide recognition and buying power of numerous types of dated fabric with strong product availability. This store has experienced financial difficulty in recent years and has closed several locations throughout the country.
• Warehouse Fabrics — Locally owned, offering low-cost products with a wide selection of discontinued fabrics and only a limited number of “current” fabrics. This warehouse concept offers marginal customer service with what many “upper end” customers consider to be an “undesirable” shopping environment.
• JoAnn’s — Nationwide chain with strong buying power. They have a broad fabric selection for clothing with a limited number of in-store decorator fabrics available. Their primary target markets are the clothing seamstress, with an increasing emphasis on craft items.
• Interior Designers — There are 37 interior designers listed in the Pleasantville Yellow Pages (Year 2000-2001 issue) that offer fabric as a part of their services. Interior designers make a profit off the mark up of fabric in addition to their hourly service charges. Their costs per yard are typically higher since they do not benefit from retail or volume discounts. Therefore, their costs to their customer is often two to four times higher than the price per yard from Interior Views.
• Website Providers — Fabric sales over the Web are limited at this time, and this will be a source of competition for the future. Currently, there is no measurable impact on our market through competitive websites.

Catalog Competitors

An increasing level of competition is anticipated from catalog sales. Recent trends, such as those demonstrated in the well established but evolving catalog Pottery Barn , indicates increased interest in offering decorator fabric, window designs, and other home decorating products through this increasingly popular channel of distribution. Catalog sources do not offer customers the option to see, touch, and have the fabric in their homes. Price is the most significant competitive factor this product source presents. The most aggressive catalog competitor is Calico Corners followed by Pottery Barn and other home-accessory-based providers.

Discounters

Channels of distribution continue to shift in favor of discounters, who account for a significant portion of the growth in the industry. As consumers experience lower levels of disposable income, discounters leverage frequent store promotions to entice frugal, value-oriented consumers. One of the biggest criticism of discounters is their failure to offer a quality service experience and their failure to present inviting displays to promote sales. These discounters, along with specialty store chains, present one of the most severe competitive threats for individually-owned specialty stores. This is partially due to extensive promotional efforts, price advantages, and established relationships with their vendors. One example of these discounters is the “home improvement” chains, such as Home Base. This aggressive retailer has adopted a strategy to include complete decorator departments in their metropolitan stores. Currently existing in the Los Angeles market, this strategy is anticipated to be introduced into the Seattle area and other select metropolitan markets within the year. Although the Pleasantville Home Base store sells basic curtain rod hardware and other hard cover window treatment, there are no known plans at this time for the Pleasantville Home Base store to implement this in the foreseeable future. This will be an important issue to monitor for competitive purposes.

Strategy and Implementation Summary

The primary sales and marketing strategy includes these factors:

• A premier retail store experience that provides impressive product display and over-the-top customer service.
• The sale of other complementary products through consignment and/or sub-lease arrangements that adds to the selling atmosphere and creates reasons to visit the store on a frequent basis.
• The retail store provides a stable financial foundation and a source of inventory for the eBay store.
• A website that complements the store’s fabric sales and provides access to customers that will never set foot in the physical retail store itself.
• A renovation of the existing website that provides content and a catalog of available fabrics and decorating accessories with direct links between the displayed items and the same item on our eBay store.
• Good Web and hardcopy marketing to drive customers to the store, either directly from search engines or from links on our home website.
• Excellent inventory management and prompt fulfillment of orders. Additional computer hardware and software will be purchased for this purpose. If volume warrants, additional staff will be hired.

5.1 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Interior Views.

5.1.1 Strengths

• Strong relationships with suppliers that offer credit arrangements, flexibility, and response to special product requirements.
• Excellent and stable staff, offering personalized customer service.
• Great retail space that offers flexibility with a positive and attractive, inviting atmosphere.
• Strong merchandising and product presentation.
• Good referral relationships with complementary vendors, local realtors, and some designers.
• In-store complementary products through “The Window Seat” and “Antique Bureau” add interest, stability and revenue.
• High customer loyalty among repeat and high-dollar purchase customers.
• The existence of Interior Views’ main store will provide a solid foundation for the establishment of the eBay store retail channel.

5.1.2 Weaknesses

• Access to additional operating capital.
• Cash flow continues to be unpredictable, and a periodic problem.
• Owners are still climbing the “retail experience curve.”
• Location is not in a heavily traveled, traditional retail area.
• Challenges of the seasonality of the business.
• The operation and maintenance of an online presence and eBay store may cause a negative cash flow.

5.1.3 Opportunities

• Growing market with a significant percentage of our target market still not knowing we exist.
• Strategic alliances offering sources for referrals and joint marketing activities to extend our reach.
• Promising activity from high levels of new home construction.
• Changes in design trends can initiate home updating, and therefore, generate sales.
• Increasing sales opportunities beyond our “100-mile” target area including several smaller communities that have produced a faithful following of customers.
• Internet potential for selling products to other markets.

5.1.4 Threats

• The downturn in the ecomony has impacted store sales–stock market predictors correlate with store sales. It has not been good in recent years.
• Expansion of national discount stores into the local market: including Target, Wal-Mart and Home Depot into our decorator fabric space.
• Competition from a national store; or a store with greater financing or product resources could enter the market.
• Catalog resources, including Calico Corners and Pottery Barn, with aggressively priced trend-setting fabric products including drapery, bedding, and slipcovers.
• Continued price pressure due to competition or the weakening market reducing contribution margins.
• Dramatic changes in design, including fabric colors and styles, creates obsolete or less profitable inventory.
• Expansion of major fabric retailers into the online environment with massive Web marketing and search engine techniques may capture Internet customers before they ever enter the eBay marketplace.

5.2 Strategy Pyramid

The following three strategies summarize our implementation process for the upcoming year. Then address in-store retail revenue, expansion to non-fabric revenue sources, and Web-based sales activities.

STRATEGY #1 – Generate revenue through the sale of solid margin decorator fabric in the retail store.

  Tactic #1A – Provide in-stock fabric through the on-floor stock of 750 fabrics that the customer can touch, feel, and buy on the spot.

Program #1A-1 – Floor displays that enable customers to better imagine the fabric in their home.

  Tactic #1B – Offer special order fabric that will provide something unique for each customer.

Program #1B-1 – Classes to provide the skills for people to fabricate their own products, including duvettes, pillows, slipcovers, draperies and other “fabric demanding” projects. Program #1B-2 – Offer sales and other promotional events that will encourage customers to buy on a spontaneous basis and/or motivate them to begin that overdue project.

STRATEGY #2 – Generate sales revenues through related non-fabric sales.

   Tactic #2A – Promotion of “Oval Office Iron” product line

Program #2A-1 –  Newsletter sales, class, and demonstration promotions Program #2A-2 – Cross selling activates with drapery fabric purchases

   Tactic #2B – Promotion of “The Window Seat” products that complement fabric sales

Program #2B-1 – Displays that complement in-stock fabric to promote the higher dollar sales transactions of both. Program #2B-2 –  Newsletter sales, class, and demonstration promotions.

   Tactic #2C – Promotion of consignment-based sales

Program #2C-1 –  Leverage these items to better display fabric and home accessories Program #2C-2 – Use the newsletter and website to promote sales, class, and demonstration promotions.

STRATEGY #3 – Generate revenue through our home website and eBay store from customers outside the reach of the retail store.

   Tactic #3A – Better facilitate and communicate the fabric and other inventory the store has to offer on the Web.

Program #3A-1 – Redesign website www.fabric-online.com. Program #3A-2 – Establish our eBay store. Program #3A-3 – Tighter integration of Web-based activities into the daily routine of store personnel.

   Tactic #3B – Monthly assessment of performance of email inquiries and revenue generation

Program #3B-1 – Establish goals of the program. Program #3B-2 – Evaluate the total dollar sales as well as sales by product category. 

5.3 Value Proposition

Interior Views offers the highest quality decorator fabric for the home conveniently available for immediate purchase or on a special order basis. The store also offers a selection of antiques, home accessories, and complementary products. Interior Views is unique in that it offers customers the chance to be creative and customize the interior of their home, or they have the option of working with experienced professionals who will guide them through the process. Either way they get everything they need to create their perfect home.

5.4 Competitive Edge

Interior View’s website will be recognized due to it’s quality products and excellent support. This competitive edge leverages the same proven factors that have resulted in the success of the storefront experience. These same characteristics will be evident on the website.  E-commerce sales will be routed by direct links from our home website to our eBay store.

5.5 Marketing Strategy

Our marketing strategy is based on becoming the resource for people looking for decorator fabrics and home accessories. The “do-it-yourself” and the “buy-it-yourself” customers will find resources to decorate their homes at a place that is inspiring, inviting, and motivating. Our marketing strategy is based on superior performance in the following areas:

• Customer service

Our marketing strategy will create awareness, interest, and appeal from our target market for what we offer our customers. This will be executed in a manner that will entice them to come back for repeat purchases and encourage them to refer additional customers to the store and to our website and eBay store.

5.5.1 Promotion Strategy

The most successful advertising and promotional activities have been the following:

• Newspaper Advertisements – Pleasantville Herald.
• Television Advertisements – “Martha Stewart” and “Interior Motives” television shows on a local promotional basis.
• Quarterly Newsletter and Postcard – A direct mail, 4-page newsletter distributed to the customer mailing list generated from people completing the sign up in the store. The mailing list now totals more than 4,300 people. Newsletter will now also be delivered by email and be available on our website.
• In Store Classes – “How to” classes, most of which are free, have been successful because of the traffic and sales they generate after the class. They are typically 90 minutes in length and held on Saturday, the most popular classes are:
• “Pillow Talk” – Pillow fabrication.
• “Shades of the Season” – Window treatment options with fabric.
• Website – Traffic interest from www.fabric-online.com, to and from our eBay store.

5.5.2 Distribution Strategy

The primary source of distribution is through traditional retail channel. On a secondary basis, we will be building revenue generation through our home website and linked eBay store .

5.5.3 Marketing Programs

The single objective is to position Interior Views as the premier source for home decorator fabrics in the Greater Pleasantville area, commanding a majority of the market share within three years. The marketing strategy will seek to first create customer awareness regarding the products and services offered, develop that customer base, establish connections with targeted markets, and work toward building customer loyalty and referrals.

The four main marketing strategies for Interior Views are:

• New home construction promotion.

The strategies will be implemented through the following marketing tactics and programs.

Strategy #1 INCREASED AWARENESS and IMAGE – Informing those not yet aware of what Interior Views offers.

• Interior Motives
• Website and eBay search engine optimization
• Complementary vendor referrals
• 27th Street Fabrics.
• “Tell a friend” email link on website
• Evening events.

Strategy #2 LEVERAGING EXISTING CUSTOMER BASE – Our best sales in the future will come from our current customer base.

• Personal shopper support
• Expeditious fulfillment of eBay store orders.
• Demonstrations
• Downloadable online information and patterns

Strategy #3 CROSS SELLING – Increasing the average dollar amount per transaction.

• Promoting sales of furniture; Chameleon and Scottie Mac lines
• Accessories through “The Window Seat”
• Online Sales
• “People who bought this fabric also bought this …” suggestions with online sales

Strategy #4 NEW HOME CONSTRUCTION PROMOTION – Connecting with people involved in the building process.

• Loan Officers gift certificate program
• Chamber of Commerce new members update

5.5.4 Positioning Statement

For the person who seeks to create a personalized and unique impression of his home, Interior Views is the source for selection and price for decorator fabric, customer-oriented design services, and a variety of other home accessories and furniture products. Customers will be impressed with, and return for, the great in-stock selection, special order options, value-oriented pricing, and excellent customer service.

Interior Views is a pleasant and tasteful resource for people in the process of remodeling the home. Instead of employing an interior decorator, Interior Views allows the customer to participate in individual design choices, and realize greater value for the dollars invested.

5.5.5 Pricing Strategy

Product pricing is based on offering high value to our customers compared with most price points in the market. Value is based on the best quality available, convenience, and timeliness in acquiring the product. We will consistently be below price points offered through interior designers and consistently above prices offered through the warehouse/seconds retail stores. Interior Views will also provide better quality and selection than the latter.

5.6 Sales Strategy

Our wide array of products enable customers to gather ideas and options, and accomplish their decorating goals. The assistance of the staff in person, on the phone, and through email will complement all aspects of this experience. The customer will have all of the resources, support and guidance they need to create a look that is truly unique to their home. They will not be able to do this in the same way through any other resource.

Online Sales Strategy

The online strategy support the objective to position Interior Views and its eBay store as a preferred source for home decorator fabrics on the Internet as we maintain the position of being considered the premier source in the geographic area of the store. The online sales strategy seeks to first, inform visitors about the Interior Views homesite, and create a positive awareness regarding the product offered; second, provide successful purchasing experiences through the direct click-through to our eBay store, and establish connections with targeted markets; and third, work toward building customer loyalty and referrals.

The online sales approach will accomplish these four objectives:

• Increased overall awareness and image
• Meet the online interests and needs of the existing customer base.
• Expand the total out-of-area customer population.
• Exploit upsell and cross-sell opportunities.

Strategy #1 – Increasing Awareness and Image – Informing those not yet aware of what Interior Views offers.

• Search engine presence.
• Leveraging the newsletter, e-newsletter and mailing programs.

Strategy #2 – Leveraging Existing Internet-Savvy Customers – Our best sales in the future will come from our current customer base.

• Newsletter information.
• Web-only promotions.

Strategy #3 – Upselling and Cross-selling Activities – Increasing the average dollar amount per transaction.

• Additional and complementary fabric.
• Additional sales of trims, notions, and accessories,
• Promoting sales of decor items.

5.6.1 Sales Programs

In brief, our marketing mix is comprised of these approaches to pricing, distribution, advertising and promotion, and customer service.

Pricing — A keystone pricing formula plus $3.00 will be applied for most fabrics. The goal is to have price points within 5% of the list price of Calico Corners’ retail prices. This insures competitive pricing and strong margins.

Distribution — All products are distributed through the retail store. The store does receive phone orders from established customers and we will be developing a website.

Advertising and Promotion — The most successful advertising has been through the Pleasantville Herald and through ads on “Martha Stewart” and “Interior Motives” television shows. The quarterly newsletter has also proven to be an excellent method to connect with the existing customer base, now with a mailing list of 4,300 people.

Customer Service — Excellent, personalized, one-of-a-kind customer service is essential. This is perhaps the only attribute that cannot be duplicated by any competitor.

The first goal is to recognize everyone as they come into the store. If they are a repeat customer, they are referred to by name. If they are a new customer, they are asked, “How did you hear about us?” Help is always available and never invasive. The store is staffed to be able to dedicate time and energy to customers who want assistance when they need it. The store is designed so a customer can sit as long as they want to look at books, fabric samples, and review the resources in the store. Their children are also welcome, with a television, VCR, and toys available in the childrens’ area in clear view of the resource center. We provide service in a way that no other competitive retail store can touch. It is one of our greatest assets and points of differentiation. Insight, ideas, inspiration, and fun is the goal. Repeat, high dollar purchases from loyal customers is the desired end product.

5.6.2 Sales Forecast

The Sales Forecast is broken down into four main revenue streams: direct sales, Web sales, consignment sales, and sub-lease revenues. The Sales Forecast for the upcoming year is based on a modest growth rate for direct sales. This is a slower growth rate than what was experienced in previous years, but above the non-existent growth of last year. In spite of the economic unpredictability we are experiencing, these projections appear attainable and take the increasing base into consideration.

Online Sales Forecast

The online sales forecast is conservatively projecting a slow and steady increase in eBay store sales. This approach is intended to realistically project sales to:

• An existing retail target market that has been slow to consider the Internet a viable method for shopping for fabric for their home.
• Become know to the Internet and eBay savvy e-purchasers as a source for quality home decorating fabrics.

5.7 Strategic Alliances

Interior Views does have some dynamic alliances. A retail store called “27th Street Fabric” focuses on “dress fabric” and refers customers on a regular basis. There is also a beneficial relationship with “Interior Fabricators” in Lake Oswego, Oregon and this establishment shares inventory purchases to reduce costs for both stores and/or to split minimum order bolts to make the larger quantity purchases more affordable for each. 

Strategic Internet Alliances

Our use of the eBay marketplace is a major plus for us. It gives Interior Views access to the online retail channel without having the high start-up expenses of site design, store administration, financial setup, and security programs for a self-run and hosted retail site.

We can optimize moderate expenses in renovating our existing website, and through the use of direct click-through links do all our selling through the established and secure eBay marketplace and PayPal billing systems, while incurring accpetable fees.

Other strategic online alliances do not exist at this time. Opportunities do exist with other retailers, including expanding the established relationship with “Interior Fabricators” to include online activities. This will be an area of concentrated development for the future.

5.8 Milestones

The milestone chart below is accompanied by table which outlines key activities that will be critical to our success in the coming year.

Web Plan Summary

Interior Views plans to increase overall sales revenues by entering the Internet retail channel through a store presence on eBay.com. The following topics discuss the e-tail market trends, our strategies for this channel, and the development requirements and planning for our home site and eBay store.

6.1 Website Marketing Strategy

Our website strategy will be to reach these key groups listed in order of importance based on their expected use and purchases from the site.

6.1.1 Website Demographic Strategy

The target group of the site is divided up into four primary groups listed in order of importance and expected use of the site.

• The “Internet Learners” represents all of the targeted segments that are just beginning to become familiar with the site and will increase their use of the Internet over time. Revenue expectations from this group are low at this point and it is viewed as an investment in the future.

Each of these groups possess these demographic, psychographic, and behavior characteristics.

Website Demographics

• Belong to one or more business, social and/or athletic organizations.

Website Psychographics

• In addition to using the Internet to gather design, decorating and pricing information, she also reads the same publications as the retail shopper.

Website Behaviors

• Considers the Web to be a more convenient information gathering resource and potential shopping alternative.

6.1.2 Web Market Needs

Like all customers, the people that will visit the site are looking for the opportunity to create a home environment to express who they are. They have the choice to select their fabric and go whatever direction they choose–to fabricate it themselves or have it done for them. They have the opportunity to actively participate in the design, look, and feel of their home. They desire their home to be personal, unique, and tasteful as well as communicate a message about what is important to them. Interior Views’ website seeks to fulfill the following benefits that we know are important to our customers.

• Competitive Pricing – All products will be competitively priced in comparison to retail stores and other channels of distribution including catalog and Web sales.

6.1.3 Web Market Trends

The following trends and issues impact the success of Interior Views.

• Shifts in Design Trends – Major changes in design trends increase sales. The Pleasantville market lags behind metropolitan design trends by 6 to 12 months. This offers a buying advantage for the store.

The home textile market, considered to include sheets, towels, draperies, carpets, blankets, and upholstery, accounts for 37% of all textile output. The trade publication “ Home Textiles Today ” estimates the size of the U.S. home textiles market at the wholesale level, excluding carpets, to be between $6.5 billion to $7 billion annually. The industry is expected to realize a steady increase over the next few years.

The industry is driven by the number of “household formations” which is expected to continue through the first years of the new millennium. This is primarily due to the solid growth in the number of single-parent and non-family households. This growth also comes from baby boomers needing bigger houses to accommodate growing and extended families and, as people get older, they are buying homes rather than renting to realize tax and equity building benefits. Favorable mortgage rates will also enable others to invest in their existing home through refinancing.

Interior Views’ website will seek to benefit from meeting the needs that these trends create.

6.1.4 Web Market Growth

American Demographics projects the number of U.S. households will grow by 16% to 115 million by the year 2010. Almost half of the households comprised of people from 35 to 44 years old are married couples with children under the age of 18. Based on this research, households in the 45 to 65 age range will grow to 45 million in 2010 as baby boomers add to this peak-earning and spending age group. This families will either build new homes or move into existing dwellings. With approximately 46.2% of the nation’s 93.3 million dwellings built before 1960, many of these homeowners are also expected to update.

One important factor is that married couples in the 35 to 65 age range represent a growth segment and enjoy larger incomes than other family structures. They enjoy the choice to spend their disposable income on life’s amenities. They may demonstrate “cocooning” by making their home a more comfortable and attractive haven. They choose to spend resources here rather than on vacations and other discretionary options. This group represents a larger subsegment of the target market.

These factors contribute to an increased need for home decorator fabrics for window treatment, upholstery, pillows, bedding, and other fabric accessory needs. This demand is expected to be complemented by the growth in the Boise market. The majority of homeowners spend a large percentage of their disposable income on home goods within two years after buying a new house. Therefore, positive trends in new housing activity represents growth and opportunity for home textiles.

Recent slow downs in the local economy have resulted in falling below sales projections and these factors will affect market growth.  Adding additional revenues through the website will hopefully add a more stable factor in to the revenue stream.

6.2 Development Requirements

We have determined the general look and navigation of the existing site revamp. We still have to accomplish the following tasks:

• Prepare eBay store product pages and establish direct click through links between our home page catalog and the eBay products pages.

6.2.1 Front End

We currently have the basic elements of the site in place at www.interiorviews_fabrics.com. It possesses some of the functional components that we want to keep including:

• Contact information.

A site redesign is desperately needed to attract additional traffic, support easier and quicker navigation, and hopefully result in increased sales. We are not satisfied with these components of the site:

• The addition of other products and select home accessories.
• General information about our eBay store.
• Direct click-through links to individual products on the eBay store sites

6.2.2 Back End

Our back-end features should include the following:

• The ability to enable visitors to gain easy access to product information, visuals, newsletter information, and a robust email system.
• The full establishment of the eBay store.
• Compliance with Sarbanes-Oxley security protocols to protect customer database information.

6.2.3 Resource Requirements

The site has been, and will continue to be, supported through a local Internet provider and the consultant that we have been working with. We have found that experience to be relatively economical and he has been highly responsive to our need. Employees do not have the expertise to do much more than respond to emails and check the status of the site, so this has been a good complement to what time and resource limitations impose.

The monthly budget, including Internet access, is $65.00 in addition to hourly consulting rates for redesign work and fabric scanning.

Additional hardware and software will be purchased to handle fulfillment, shipping, inventory, and the customer database.

Start-up expenses for site revamp, eBay store, equipment and software have been budgeted at $10,000.

6.2.4 Future Development

The objectives of the site redesign will include:

• Additional products added to the decorator fabric selections including “Oval Office Iron” hardware and select home accessories.

This is Interior Views’ first foray into e-commerce. The eBay marketplace offers us an excellent venue to test waters so-to-speak, with relatively little investment. If, after a couple years experience we can project a reasonable return, we will invest in another site renovation and bring our entire online store operation in-house.

6.3 Business Model

Our website and eBay store will generate revenue through initiating product sales to the targeted audience that we would not have realized through the retail store. It will be measured on the basis of revenue generated each month compared to our stated objective. On a secondary basis, we will also measure and track traffic to the site and document what activities that traffic contributes to the other objectives of the site, including sales leads and information dissemination.

6.4 Site Positioning

Management summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">.

Judy Williams oversees all store operations. This includes buying, financial dealings, merchandising, and interfacing with the bookkeeper and the CPA. She delegates marketing and in-store construction projects to Doug Williams. Julie is taking on more of a management role and the goal is to increase her responsibilities. Solid job descriptions and direction applies to the other positions, all of which are part-time, approximately 20 hours each week.

7.1 Organizational Structure

The organizational structure is simple. Judy manages all employees and professional contacts, as well as interfacing with more than 12 account executives/vendors. She determines staffing requirements, assigns and delegates responsibilities, and reviews employee performance on an annual basis.

7.2 Management Team

Judy Williams, the owner, is responsible for all managerial functions within the organization. She also oversees all buying activities. Judy delegates responsibilities to Julie Hanson to assist with television advertising. Julie and the other staff members are also responsible for at least one special event throughout the year. Doug takes on all marketing efforts including creation of the newsletter, placing television ads, store signage, and coordinating public relations activities. 

7.3 Management Team Gaps

The team is working well at this point. It has reached a balance between covering the necessary bases within the limitations that the payroll budget imposes. The long term goal is to have Julie take on increasing responsibilities and enable more freedom for Judy.

7.4 Personnel Plan

The personnel plan consists of Judy’s schedule complemented by four part-time positions. Julie (24 hours per week), Kandi (20 hours per week), Cheryl (18 hours per week) and Pharis (32 hours per week) fill the six-day work week. The goal is to continue to control payroll expenses through efficient use of the staff and provide a quality customer-oriented focus in the store.

The revamp of the website and addition of the eBay store will present a new layer of challenges to the existing staff. The people involved will need to go through training to become familiar with their roles, and the existing consultant, Jim Franns, will play a key role in establishing the new website, and providing ongoing support as needed.

The following outlines the general roles and activities the consultant and staff will support:

• Robin – Bookkeeping and monitoring sales activities.
• Pharis – Sales fulfillment.

All these folks, aside from Jim, divide their time between the retail store and the eBay store. If sales increase at the rate hoped, we will look at hiring an eBay fulfillment employee.

Jim Franns is a consultant, and his expenses appear in the P&L table.

Financial Plan investor-ready personnel plan .">

This section offers a financial overview of Interior Views eBay store, our website and online marketing activities. We will address break-even information, sales forecasts, expense forecasts, and how those link to our marketing strategy. We do not have enough data to make seasonal adjustment in sales revenues at this point and we expect that the growth in sales will mitigate seasonal trends. eBay has become a mainstream retail channel, and because of its 24/365 availability, product lines which were once seasonal have become viable 12 month sellers. As our eBay store becomes established and know we expect to see our online sales grow consistently, without severe high or low spikes. This is an area that we will watch as we gather additional data, customer feedback, and experience.

The financial plan contains these essential factors:

• A modest growth rate in sales for Year 1, and a commensurate increase in total revenues.
• Positive sales for all 365 business days per year.
• Reduce the existing credit line substantially.

<p Difficulties and Risks

• Slow sales resulting in less-than-projected cash flow.
• Unexpected cost increases compared with the forecasted sales.
• Overly aggressive and debilitating actions by competitors.
• A parallel entry by a new competitor.

Worst case risks might include:

• Determining the business cannot support itself on an ongoing basis.
• Having to liquidate the inventory to pay back the bank loan.
• Locating a tenant to occupy the leased space for the duration of the five year lease (January of 2006).
• Losing the assets of the investors used for collateral.
• Dealing with the financial, business, and personal devastation of the store’s failure.

8.1 Important Assumptions

The following critical assumptions will determine the potential for future success.

• A healthy economy that supports a moderate level of growth in our market.
• The ability to support a healthy gross margin percentage.
• Keeping operating costs low, particularly in the areas of personnel and ongoing monthly expenses.
• Making wise purchases that keeps inventory at an attractive level with a high turn rate.

8.2 Key Financial Indicators

Marketing expenses are to be budgeted at approximately 5% of total sales. Expenses are tracked in the major marketing categories of television advertisements, newspaper advertisements, the newsletter and postcard mailings, Web marketing support, printed promotional materials, public relations, and other.

8.3 Break-even Analysis

The Break-even Analysis below illustrates the amount of sales that we must realize to break even. This is based on the average sale and costs per transaction.

8.4 Projected Profit and Loss

The following represents the Projected Profit and Loss for Interior Views based on sales and expense projections for Year 1 and beyond. We are anticipating that we will need to add investment into the business in January to address cash flow concerns.

The P&L table lists the expenses we anticipate in establishing our eBay presence and store. Legal expenses will cover our initial fees with eBay, PayPal, and our business bank, and any other legal requirements, such as establishing compliance with Sarbanes-Oxley legislation.

Website development costs cover both our eBay site design as well as a freshening of our existing informational website.

In anticipation of significant sales activity we have decided to purchase additional computer hardware which will be dedicated to eBay sales fulfillment, customer database, shipping, etc.

A portion of Doug’s time will be spent doing the ramp-up marketing for the eBay store, and subsequent online marketing efforts. We want to track this carefully so we are adding those expenses in here, and ongoing expenses in the P & L table.

Fulfillment of all products sold will come from the overall Interior Views inventory. For accounting purposes, value for products sold on line will be transferred from the the main store.  For planning purposes, start-up inventory value will equal two times anticipated Month 1 sales. 

8.5 Projected Cash Flow

The cash flow projections are outlined below. Again, these projects are based on our basic assumptions with revenue generation factors carrying the most significant weight regarding the outcome. We are anticipating that we will need to add investment into the business in January to address cash flow concerns.

As planned, our eBay store should bring in adequate revenue to cover its own expenses and bring a net increase of revenue into Interior Views. Cash flow and cash balance appear to be comfortably adequate. We have planned conservatively. However, other companies have seen tremendous growth in sales through the eBay store retail channel, and other Internet direct sales channels.

If our sales do indeed skyrocket, Interior Views will certainly need to increase inventory purchases, site maintenance, personnel, and perhaps facilities space and computer hardware.

All of this impacts expenses and cash flow/cash balance. Interior Views would then have to borrow against its bank line of credit or take out business loans to until the revenue from cash receivables/PayPal begin to flow into the company. Such borrowing would be included in the eBay store business plan and accounting records. It may be that if the growth is fast, but smoothly incremental, we will be able to accomplish the growth with the projected cash flow.

We are purchasing $7,500 of new computer hardware and upgrades to support the renovation of our website and establishment of our eBay store.

8.6 Projected Balance Sheet

Interior View’s balance sheet is outlined below.

This initial eBay store plan projects a modest return on the company’s internal investment, with full return in the third year. The cash balance is comfortable, revenue input into the company justifies the entry into this channel.

8.7 Business Ratios

Business Ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5949, Sewing, Needlework, and Piece Goods, are shown for comparison.

The following will enable us to keep on track. If we fail in any of these areas, we will need to re-evaluate our business model:

• Gross margins at or above 42%.
• Month-to-month annual comparisons indicate an increase of 12% or greater.
• Do not depend on the credit line to meet cash requirements.
• Continue to pay down the credit line at a minimum of $24,000 per year.

8.8 Financial Risks and Contingencies

Difficulties and Risks

• Unexpected and excessive cost increases compared to the forecasted sales.
• Expansion into e-commerce via eBay store does not realize projected sales.
• Locating a tenant to occupy the leased space for the duration of the five year lease.

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Furniture Store Business Plan PDF Example

• May 7, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful furniture store. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your furniture store’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a furniture store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your furniture store concept into reality. Let’s dive in!

Our furniture store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your furniture shop’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the shop’s design, layout, and why its location is appealing to potential customers.
• Products & Pricing: Lists the types of furniture offered by your shop, including pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the furniture market.
• Key Trends: Highlights recent trends affecting the furniture sector.
• Key Competitors : Analyzes main competitors in the area and how your shop differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the furniture shop and their roles.
• Financial Plan: Projects the shop’s 5-year financial performance, including revenue, profits, and expected expenses.

Furniture Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your furniture store’s business plan, offering a concise overview of your store and its products. It should detail your market positioning, the range of furniture and home decor items you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your furniture store will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your store’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your furniture store’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

Store & location.

Briefly describe the furniture store’s physical environment, emphasizing its design, layout, and the welcoming atmosphere it offers to customers. Mention the store’s location, highlighting its accessibility and the convenience it offers to shoppers, such as proximity to popular shopping districts or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Products

Detail the range of furniture and related products offered, from basic home furnishings to specialized items like custom-made pieces, home accessories, or eco-friendly furniture. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any promotions, financing options, or loyalty programs that provide added value to your customers, encouraging repeat business and customer loyalty.

Make sure to cover here _ Store & Location _ Supply & Products

Market Overview

Industry size & growth.

In the Market Overview of your furniture store business plan, start by examining the size of the furniture retail industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in personalized furniture solutions, sustainable and eco-friendly products, and innovative design styles. For example, highlight the demand for furniture that caters to specific lifestyle needs and preferences, alongside the rising popularity of environmentally conscious furniture stores.

Key Competitors

Then, consider the competitive landscape, which includes a range of furniture stores from high-end boutiques to budget-friendly options, as well as online furniture sales trends. For example, emphasize what makes your store distinctive, whether it’s through exceptional customer service, a unique range of products, or specialization in certain types of furniture. This section will help articulate the demand for furniture store services, the competitive environment, and how your store is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the furniture store , highlighting Strengths (such as quality craftsmanship and a diverse product range), Weaknesses (including high operational costs or intense competition), Opportunities (for example, an increasing trend in home improvement and interior design), and Threats (such as economic downturns that may decrease consumer spending on non-essential items).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, engaging social media presence, and community involvement. This could include collaborations with interior designers, staging partnerships with real estate companies, or hosting DIY furniture workshops to increase brand visibility and consumer engagement.

Finally, create a detailed timeline that outlines critical milestones for the furniture store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose. This timeline should include key dates for product launches, seasonal sales campaigns, and potential entry into new markets or online expansion.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the furniture store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the furniture store toward its financial and operational goals.

For your furniture store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your furniture store’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your furniture store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

New Mexico governor seeks hydrogen investment with trip to Netherlands

The governor of New Mexico has announced plans to court new investments in hydrogen fuel development at a business summit in the Netherlands over the coming week

SANTA FE, N.M. -- The governor of New Mexico has announced plans to court new investments in hydrogen fuel development at a business summit in the Netherlands over the coming week.

In a news release Friday, Gov. Michelle Lujan Grisham said she'll lead a delegation to an industry summit exhibition in the port city of Rotterdam seeking the “opportunity to sell New Mexico as a dynamic and thriving place for hydrogen industry investment.” She led a similar mission last year to Australia to talk with hydrogen entrepreneurs.

Lujan Grisham, a Democrat, has been a vocal proponent of investments in hydrogen as a transition fuel that can replace fossil fuels with cleaner-burning hydrogen as an energy source for vehicles, manufacturing and generating electricity.

Some environment alists call hydrogen a false solution because it frequently relies on natural gas as a fuel source. Several New Mexico-based groups have resisted proposed state incentives for hydrogen development, citing concerns that it would prolong natural gas development and increase demand for scarce water supplies.

Hydrogen also can be produced through electrolysis — splitting water molecules using renewable energy sources such as wind and solar power, as well as nuclear power.

New Mexico is a major energy producing state with extensive natural gas reserves and broad recent investments in electrical transmission lines aimed expanding renewable energy production from sources including wind and solar.

The Biden administration last year passed over a four-state bid by New Mexico, Colorado, Utah and Wyoming for a share of $7 billion aimed at kickstarting development and production of hydrogen fuel. It chose instead projects based in California, Washington, Minnesota, Texas, Pennsylvania, West Virginia and Illinois.

The hydrogen summit in Rotterdam has an array of public an private sponsors. Lujan Grisham is traveling with office staff, New Mexico cabinet secretaries for the environment and transportation, and husband Manny Cordova. The New Mexico delegation also includes Rob Black, president of a statewide chamber of commerce.

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Lawsuits complicate construction plans at St. Pete’s Sundial

• Teghan Simonton Times staff

The new owners of the Sundial shopping plaza in downtown St. Petersburg are tussling with the owner of the AMC Sundial 12 movie theater in the courts.

Sundial’s owners claim that the theater’s owners are using “obstructionism” and “thinly veiled delay tactics” to slow the new owner’s renovation plans for the shopping center, filings show.

Last month, the owner of the movie theater, Florida 2005 Theaters LLC, sued the mall operator in Pinellas County Sixth Judicial Court for what it claimed was a violation of its existing easement agreement. Florida 2005 is linked to Carlyle Group, a New York-based investment firm.

The agreement was first forged between the theater’s former owners, Muvico Entertainment LLC, and Sundial’s former owner, STP Redevelopment. It required most restaurants to be on the second floor of the complex and barred significant changes to Sundial’s common areas without Muvico’s consent. In court records, the current owner said it is “successor in interest to Muvico” and that Sundial owners are still subject to the easement.

In January, the theater owners learned that Sundial’s renovation plans included space for an open-air bar or restaurant, which sparked months of discussions between the companies. Ally Capital Group, a Tampa-based real estate investment firm, is partnering with Paradise Ventures, a St. Petersburg-based firm, on the renovations.

The theater owners feared the restaurant would detract from AMC’s family environment and would affect movie sales. They also complained about a walkway to the theater entrance that was blocked off amid construction, court records show.

“In over 20 years of ownership at this location, it has been the experience of Florida 2005 Theaters that establishments generating a high percentage of revenue from alcohol sales have a detrimental impact on the surrounding tenants,” an attorney for the theater wrote to Michael Connor, president and CEO of Paradise Ventures.

In an interview, Connor said the theater owners are trying to push Sundial owners to change their easement agreement, following disagreements about the future of the space.

“It started before we purchased the property,” Connor said.

Connor claimed that before his group purchased the center in 2022, theater owners had hopes to modify the existing easement and turn AMC into residential space.

“They wanted to modify that to allow residential development, and I didn’t want to do that,” he said. “I’ve historically been a retail developer my entire career ... and literally, ever since then, it’s been an adversarial relationship where they’ve tried to tell us what we can and can’t do with the property.”

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The lawsuit, he believes, was filed in “totally, 100% bad faith, to try to coerce us into signing a document that modifies the (easement) in a way I’m not going to sign.”

Renovation for Sundial, located on the 100 block of Second Avenue North, includes multimillion-dollar improvements to revitalize the “once upscale retail destination into a modern mixed-use urban destination,” according a news release from 2023, when the plans were announced. The developers declined to say at the time just how much the renovation will cost. But the plans for the center include significant upgrades to the courtyard with a large outdoor bar and communal green space.

“I live in St. Pete,” Connor said. “I’m at Sundial all the time. This is not just some asset that I don’t care about. I love this piece of real estate, and that’s why we’re spending $3 million on the courtyard.”

Paradise Ventures and Ally Capital Group purchased Sundial from local businessperson Bill Edwards for $27.5 million in 2022. Edwards had owned the 85,357-square-foot shopping center since 2011, and made significant upgrades. The shopping complex was originally built in 2000 and was called BayWalk.

The theater owners claim that Sundial owners would not acknowledge that the theater’s permission was required for the changes. The company has now asked the court to order restaurant construction to halt, and sought other damages.

The attorney listed for Florida 2005 Theaters did not respond to requests for comment.

In a countersuit filed this week, Sundial owners rebut several of the theater owners’ claims. Among them, Sundial owners say that the restaurant planned for the courtyard is not a new space at all, but a vacant space formerly occupied by Locale Market. Sundial owners secured a new tenant for the space, Forbici Modern Italian.

At the time of Locale Market’s closure, the countersuit claims, it was understood that the space would be filled by another food vendor. The easement also includes a line stating permission for such changes should not be “unreasonably withheld or delayed,” court documents said.

Sundial owners also claim they gave theater owners notice of the plan a full year before their lawsuit claims.

“Without valid justification and despite dialogue spanning the course of over a year, Florida 2005 has violated the (easement agreement) by unreasonably withholding approval and consent of PV’s plans for the Forbici Restaurant,” the countersuit states.

In court filings, Sundial owners said adding Forbici Modern Italian to the space would be mutually beneficial, and that the disagreement has now cost them revenue, rent and business relationships.

Connor said the lawsuits should not have any effect on Sundial patrons. Construction is expected to finish in the next two-and-a-half months, he said, so renovations would be complete before the case reaches a courtroom.

“They’ve acted in bad faith for two years. All they want to do is use a reasonable approval right to coerce us to allow them to sell to a residential developer. Enough is enough, right?” Connor said. “I’m not going to try to play nice anymore.”

Teghan Simonton is a data reporter on the business and health team. Reach her at [email protected].

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