Interior Design Business 101: Launch Your Company in 7 Simple Steps

An interior design business can be highly profitable if you have the skills to make it work. After all, it doesn’t require a significant financial outlay to get your business off the ground. 

The key to client acquisition as an interior designer is putting together a stunning portfolio to show people what you’re capable of. In this game, your work will speak for itself. 

You also need to think carefully about the type of interior design business you want to run. Will you offer services to homeowners or fellow business owners? Do you want to focus on events like weddings and parties? There are many niche options within the interior design industry from which to build your business, so you need to decide where to begin. 

In this article, I guide you through the crucial decisions and steps you need to take before launching your interior design business. I will show you how to settle on a niche and which steps to follow before launching your business. 

I also touch on how you can harness the latest AI tools to your advantage. So, join me as I reveal how to get your interior design business off the ground this year.

The different types of interior design business

A successful interior design business allows you to flex your creativity. It’s entirely up to you which aspect of interior design to focus on: 

• Commercial design for businesses and industrial enterprises. 
• Sustainable design, focusing on eco-friendly solutions for the future. 
• Home design for individual clients with bespoke agendas and aspirations. 
• Production design for TV, movies, and the broader creative industry.
• Exhibition design for art galleries, museums, and other points of interest. 
• Event design for weddings, parties, concerts, and other big events. 

You don’t need to focus exclusively on one area, but it makes sense to concentrate on one niche. After all, interior design is a broad, all-encompassing term that can refer to many different attributes and sub-sectors. 

Many interior designers start with micro projects. These typically involve planning and redecorating rooms within homes and acknowledging the homeowners’ tastes, budgets, and preferences.

If you have a knack for design and an eye for maximizing space and comfort, home interior design is your best option. As you develop experience, gain more exposure, and onboard more clients, you can grow your business and expand your offering. 

Working as an interior designer vs starting an interior design business

To succeed in this industry, you don’t necessarily need to run an interior design business. Instead, you can work in an office alongside other talented designers. It’s much less hassle and less of a risk to work as a designer than to set up your own business, but it’s not as rewarding for most people.

Here’s an overview of working as a designer against going it alone:

Working as an interior designer

✅There are jobs available for beginners and experienced designers alike. Whether you’re fresh out of college or have worked in the industry for years, you can find work as a designer. 

✅Working in the office alongside other creatives helps with inspiration and improves your attention to detail as a graphic designer. 

✅When working as an interior designer, you don’t need to worry about all aspects of the business. Simply focus on your job as a designer, which frees you up for the creative process.

✅It’s not your job to win business for the company – that responsibility lies with the owner. Again, this gives you more time to focus on the creative aspects of the job that you love, not the difficult process of finding work.  

✅Interior designers are well-paid in most countries. For instance, in the US, the average salary for an interior designer is $62,000, which is a great base for most people without the hassle of running a business.

Running a business

✅When you run an interior design business, you can focus exclusively on projects that you like. You don’t need to take on work that doesn’t excite you. Equally, you have no boss to tell you which jobs you can and can’t take on.

✅The sky is the limit in terms of your earning potential. The more clients you bring on board, the more you can earn. When you work as a graphic designer, you only earn your salary, nothing more.

✅As your business grows, you can hire freelance interior designers and other professionals to help you expand your business. If you make it successful, you can establish yourself as one of the top design firms in the area.

✅When you run an interior design business, much of your time will be spent doing other tasks, not designing interiors. You need to think about invoicing, taxes, office management, transport, worker compensation, and many other things. You need to consider if you have the skill set to do this additional work.

How to start an interior design business – step-by-step guide

If you’ve decided that you want to launch an interior design business, this section takes you through each step you need to follow to get your business off the ground:

Step 1: Plan your interior design business

As I revealed in the first section of this guide, there are several types of interior design businesses. Therefore, your first step should be to decide which type of business you would like to run and why.

You should make this clear in your business plan and ensure that you have the skills and experiences to make it work. Consider what will be unique about your interior design business, and be clear about how you expect to find clients.

It’s certainly possible to provide numerous interior design services but begin small before expanding your operations. You should build your expertise in a specific niche before growing your business. Make this clear in your initial business plan so you have a clear starting point as an interior designer.

Step 2: Compile your portfolio

Graphic design is a visual business. What I mean by this is that you’re not going to win any business by telling people how great you are. Instead, you need to show them. This is where your interior design portfolio comes in.

Your portfolio should include work that you’ve previously carried out to show potential customers why they should hire you. If you don’t have work to showcase in your portfolio, starting a business is not a good idea.

You can present images and videos of your work with clients at your previous job or work that you’ve done for family members and friends.

Within your portfolio, be specific with the different styles you have worked in and articulate the details of your work. This will help you to appeal to a broad range of clients and means that your portfolio will be rich, varied, and appealing to prospective customers. 

You can use sites like Wix or WordPress to create an online portfolio for your work. Alternatively, if you don’t want the hassle of creating a website, curate a business Facebook or Instagram page. 

Both are completely free to create and maintain and take some of the pressure away from you at the start. Over time, you can always add a new website for your portfolio when your business is more established.

Step 3: Create a company and structure for your business

With a clear image of your interior design business in mind, it’s time to create a company. Most interior design businesses are companies limited by shares. 

However, if you plan on working as a freelance interior designer, you might be better off setting up as a sole trader. 

Both options can work, but if you operate your business as a limited company, you can employ other people and you can take out liability insurance to protect yourself. 

When creating an interior design business structure, you also need to do the following:

Decide on a company name

One of the most important decisions you have to make at this stage is what to call your company. But as a creative, I’m sure you’ve got lots of ideas! You might consider using your name or initials or starting entirely from a blank canvas. 

If you’re struggling, experiment with our AI company name generator, which will give you lots of inspiration for your interior design firm. Don’t just go with the first name we recommend. Feel free to play around with it until you’re happy with the perfect name for your business.

Create a logo

Another key aspect of your company registration is its logo. As an interior designer, you need something that showcases your talent and creative spirit. Crucially, you can’t start marketing your business with a shoddy, poorly designed logo that does more harm than good to your brand. 

We invite you to use our excellent AI logo generator to instantly and effortlessly create a professional logo for your interior design brand. It’s free to use, and you can prompt it to create the perfect logo for your firm.

Open a bank account

When registering your company, you will need to open a bank account. Whether you’re a sole trader or operating as a limited company, keeping your business income and expenditure separate will help when it comes to tax returns and business accounting. 

Most high street banks offer business accounts, so it shouldn’t be difficult to set one up. You will need to take your certificate of registration to open your account, so make sure you register your company first.

Step 4: Obtain licenses and insurance

In most US states, you don’t need a specific license to operate as an interior designer or decorator. However, some countries and authorities might require you to register before permitting you to work inside people’s properties. 

I recommend checking this with your local authority before onboarding your first client. You can also ask Arvin to provide a list of licensing regulations for interior designers in your area.

This is a great way to harness AI and use it to your advantage while researching how to set up your new business. 

As for insurance, you will need the following policies to protect yourself when operating your interior design business: 

• Motor vehicle insurance if you operate a car, van, or any company vehicle. 
• Public liability insurance should anything go wrong when you’re working on someone’s property. 
• Worker or employee insurance if you employ other people to work in your business. 

Insurance premiums can be expensive for new business owners, but I highly recommend taking out the best policies you can afford. The last thing you need is an expensive claim coming your way when you’re trying to get your business off the ground.

Research shows that two-thirds of founders go without insurance in the early days, while in the UK, statistics show that as many as 40% of small business owners don’t take out insurance. This is a huge risk, particularly when dealing with the public and their homes. 

So, my advice? Bite the bullet and buy the insurance. You don’t want to risk the financial issues that will come if someone decides to sue you.

Step 5: Find a base for your interior design business

You now need to consider where to run your interior design business from. Are you planning a remote office or a high-street location? Here are some options to consider, with the pros and cons of each:

Home base

The most affordable option as a new business owner is to run your interior design business from home. You don’t need to worry about rent, taxes, and bills. Simply allocate a part of your home as your office and go from there. 

That said, if you plan to win customers with the WOW factor, I recommend setting up a home office that showcases your talents. Maybe you have an outhouse or a space in the garage to transform into your company’s interior design HQ. 

Pay special attention to the details and make the place shine. When you bring clients to your home office, they will immediately see your talent for design. If you sit them down at a cluttered kitchen table filled with papers, they will be much less impressed!

Office base

Alternatively, you can rent a conventional office for your interior design business. This is the best option if you’re planning to employ a small team. After all, you probably need a shared office space to communicate ideas and to work on projects. 

Again, the aesthetics of your office are crucial. You need to pay attention to detail and decorate your office space to perfection. As interior design is a visual business, you need to impress customers when they come to your office. If you fail to do so, they will look elsewhere.

Co-working (shared) base

If you don’t have space at home and don’t have the funds available to rent an office, look into co-working arrangements. Here, you can rent a desk or a private room in a co-working space with a company like Regus. 

These are serviced offices with internet connection, meeting rooms, and front-of-house staff. They’re convenient and a great option for small interior design businesses. Hiring a desk at a co-working office is a good way to add a professional element to your business and to secure a working spot away from home, without breaking the bank.

Shop base

Another option for interior designers is to rent a shop. This is a brilliant way to showcase your portfolio and to attract passing trade from the street. 

You can also style your shop to show off your interior design talents and even sell items like furnishings, ornaments, and other things to supplement your business income. 

The main drawback is that a shop base is expensive. You need to pay rent, tax, and other bills. You will add more pressure to your business from the outset, so make sure you earn enough to cover the additional costs.

Step 6: Finalize your services and pricing structure

Using your business plan to guide you, it’s time to determine exactly what your interior design business will offer. You should consider the following: 

• Space design: This is the fundamental offering of most interior designers. It’s essentially the curation of any space, be it a room in a home, office building, or commercial setting. The designer will listen to the client’s needs and aspirations for the space before putting a design together. This is often regarded as the “design fee” and is the first part of most projects. 
• Project management: Most interior designers also offer project implementation and management services. So, after designing the space, they are happy to implement the project and see it through to its conclusion. If you plan to offer this, you will need to consider your project management fee. 
• Decorating and facilitation: Some designers have the skills to carry out the work themselves, while others outsource it. Whichever you do, you will need to charge for this work in addition to your management fee.

How much should you charge as an interior designer?

After deciding on your services, you need to calculate how much to charge. Unfortunately, there isn’t a one-size-fits-all pricing structure for interior design, as everyone is different. 

However, in the United States, interior designers tend to charge between $2,000 and $14,000 per project. This fee excludes furnishing and work carried out and is simply the cost of hiring an expert to consult throughout the design process. 

If your business is based in the US, you can use this as a benchmark. But, to settle on your pricing, you must conduct competitor analysis and research. 

Contact interior design businesses in your area and ask how much they charge. Take notes and gather as much information as possible. Your prices should be competitive and aligned with the other businesses in your area.

Step 7: Market your business and win clients

You’re now ready to market your interior design business. You should do this online and offline, considering different ways to grow your network. My recommendations include: 

• Door-to-door marketing in your local area by posting flyers into the doors of your target audience. 
• Blogging via your company’s website, targeting keywords for SEO purposes. If you don’t have time to create blog posts, use our AI writing tools to help you create quality online content. 
• Social media posting and promotion. Interior designers curate and maintain their online presence on Instagram, TikTok, and Facebook. You should be active on different platforms, showcasing your talents to different people. 
• LinkedIn is also a good option if you plan on B2B interior design. You can grow and expand your network by connecting directly with decision-makers on the platform. 

Initially, you can take care of your marketing goals in-house. But as your business grows, you might want to bring in a marketing team or freelancers to help you.

When you win your first clients, you will need to develop contracts and invoices to carry out your work. Be clear on your paperwork about the services you offer, and be explicit about what isn’t included. You can always refine your paperwork as your business develops, but it’s important to have something in place as a starting point.

Conclusion: How to start a successful interior design business this year

There’s no doubt that an interior design business can be successful. But first, decide if you want to work as an interior designer or whether you want to operate an interior design business. Then, decide on your niche and consider which type of interior design services to offer. 

When you’ve crystallized your thoughts, you can work through each of the steps I’ve listed above to get your business off the ground. 

Don’t forget about the power of AI when launching a business. There are so many ways to use Arvin to your advantage. You can use our AI tools to research your business, write your plan, and create your logo. You can even use AI to create marketing content and to help with onboarding clients. 

This can take some of the pressure off as you launch your interior design business this year.

Starting an interior design business FAQ

How do you start your own interior design company?

First, decide what type of interior design to offer and which niche to focus on. You can then start compiling your portfolio to impress prospective clients. Then, create a structure for your company and create your logo and other key aspects. You can then begin marketing your interior design business online and offline. Follow our detailed steps above for more details.

Is an interior design business profitable? 

An interior design business can be extremely profitable. For instance, in the US, most designers charge between $2,000 and $14,000 per gig – most of this is profit. If you keep the cost of doing business low, you can run an extremely profitable interior design business this year.

Where can I find interior design clients?

Facebook and Instagram are brilliant for finding interior design clients. If someone wants to hire a designer, they will look to social media for inspiration. Be sure to curate and update your feeds to showcase your work. You should also regularly link to your portfolio to remind potential customers what you’re capable of as a designer.