sample business plan for remodeling company

Home Remodeling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting a home remodeling company ? If YES, here is a complete sample home remodeling business plan template & feasibility report you can use for FREE .

If you are thinking of starting a business with huge returns on investment, then one of your best bets is to venture into the real estate industry. Of course, there are several money spinning business opportunities in the real estate industry and one of them is to start a home remodeling company.

Just like all other investment vehicle, there are potential down sides that you need to look out for as a home remodeling agent. One of the major risks in home remodeling business is a sudden downturn in the economy.

A Sample Home Remodeling Business Plan Template

1. industry overview.

The real estate industry of which home remodeling line of business is sub set of is indeed one of the many industries that are a major contributor to the growth of the economy of many nations of the world; there is hardly any country where the real estate industry is not pretty active.

Players in the Home Remodeling industry primarily engage in the remodeling and renovating the interiors and exterior of residential buildings ( i.e. single-family homes and multifamily apartment building units ). Remodeling consist of additions, alterations, reconstruction, maintenance and repair work.

General contractors, operative remodelers, remodeling design-build firms and remodeling project construction management companies are all part of the home remodeling industry while commercial building remodeling is not included in the industry.

If you are a closer watcher of the Home Remodeling industry, you will agree that the industry’s foundation shook as the housing bubble burst, with several factors contributing to discourage consumers from spending on home improvements.

Experts projected that the home remodeling industry recovery will be driven by improvements in employment and per capita disposable income.

In the united states and in most countries of the world, home prices are expected to continue to rise, facilitating growth in demand for home remodeling industry services because homeowners often leverage the value of their homes through loans to fund remodeling projects.

The Bureau of Labor Statistics (United States of America) projects 11.1 percent job growth for real estate industry between 2012 and 2022, which is about as fast as average.

During that time, an additional 38,000 jobs will open up in the industry. Hence any home remodeling company that is well equipped and positioned will sure rakes in huge revenues from this industry within this period and of course the future is bright.

The Home Remodeling cum Real Estate industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, Germany, France, Italy, Holland, Switzerland, Australia and Canada et al.

Statistics has it that in the United States of America alone, there are about 415,994registered and licensed home remodeling companies scattered all across the United States responsible for employing about 652,647and the industry rakes in a whopping sum of $75 billion annually.

The industry is projected to grow at 4.2 percent annual growth within 2011 and 2016. It is important to state that there is no establishment in this industry that has a lion market share.

A recent report published by IBISWORLD shows that the Home Remodeling industry is very labor-oriented, as it relies on employees to carry out most industry activities. Therefore, the industry requires a low level of capital investment and instead allocates much of its cost structure to labor payments, which accounts for 23.1 percent of revenue.

Purchases account for 56.9 percent of industry revenue. The report further stated that these costs are largely related to materials, components and supplies used during service requests as well as the costs associated with contracting work out to third-party subcontractors.

Depreciation absorbs only 1.0 percent of industry revenue, and capital purchases are largely limited to vehicles and computers used in sales offices.

The home remodeling cum real estate industry is highly regulated in the United States of America and anyone who aspires to start a home remodeling company must apply and obtain a license before they can legally operate in the industry.

Lastly, as a home remodeling professional, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to properties; you should be able to convert a slum into a beautiful city if indeed you want to become a major player in the house remodeling cum real estate industry.

2. Executive Summary

Zoe McLaurin® Home Remodeling Company is a U.S. based and licensed home remodeling company. Our head office will be located in a standard and centrally located office facility in the heart of Annapolis – Maryland.

Although our Head Office will be located in Annapolis – Maryland, but we will open our branch offices in major cities in all regions of the United States of America – within the first two years of operation we would have set up our offices in the following locations; New York City, Los Angeles, Florida, North Dakota, Boston, Dallas and Washington.

Zoe McLaurin® Home Remodeling Company is going to be a self-administered and a self-managed real estate investment trust (REIT).

We will engage in home remodeling services such as residential additions, alterations and renovations, construction management for residential remodeling, fire and flood restoration, home improvement, porch construction, sunroom additions, kitchen and bathroom upgrades, systems and equipment, disaster repairs and other remodeling projects.

We will work towards becoming one of the largest home remodeling companies in the United States of America with active presence in major cities.

We are quite aware that home remodeling business requires huge capital base, which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us. We can confidently say that we have a robust financial standing and we are ready to take on any opportunity that comes our way in the real estate industry.

As part of our plans to make our customers our number one priority and to become one of the leading home remodeling company in the United States of America, we have perfected plans to adopt international best practices that can favorable compete with the best in the industry.

Zoe McLaurin® Home Remodeling Company have overtime perfected plans that will help us to become a specialist in turning slums into beautiful cities and turning a run –down and dilapidated building into a master piece and that hopefully will be our brand and signature.

Zoe McLaurin® Home Remodeling Company will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Zoe McLaurin® Home Remodeling Company will be owned majorly by Zoe McLaurin and her immediate family members. Zoe McLaurin has a Degree in Building Engineering and she is a property guru that has worked with top Real Estate Companies in the United States of America for many years prior to starting her own business.

Other investors with same investment ideology whose name cannot be mentioned here for obvious reasons are going to be part of the business especially as it relates to pooling cash together for property acquisitions, renovations and beautification.

3. Our Products and Services

Zoe McLaurin® Home Remodeling Company is going to offer varieties of services within the scope of the home remodeling industry in the United States of America. Our intention of starting our home remodeling company is to favorably compete with leading players in the home remodeling cum real estate industry both in the United States of America and in the world at large.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offerings are listed below;

• Residential additions, alterations and renovations
• Construction management for residential remodeling
• Fire and flood restoration
• Home improvement
• Porch construction
• Sunroom additions
• Kitchen and bathroom upgrades
• Other remodeling projects
• Systems and equipment
• Disaster repairs
• Real estate consultancy and advisory services

4. Our Mission and Vision Statement

• Our vision is to become one of the top 10 home remodeling companies in the United States of America within the first 10 years of starting Zoe McLaurin® Home Remodeling Company.
• Our mission and values are to help people, businesses and property owners and clients in the United States of America and throughout the world remodel their homes to fit into the ideal mental pictures they have of how a world – class home should be.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry, as a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our home remodeling company on the right business foundation. We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

Zoe McLaurin® Home Remodeling Company is fully aware of the modus operandi in the real estate industry cum home remodeling line of business, hence adequate provision and competitive packages has been prepared for independent sales agents. Our marketing department will be responsible for managing this aspect of our business structure.

Below is the business structure we will build Zoe McLaurin® Home Remodeling Company on;

• Chief Executive Officer

Project Manager

• Company’s Lawyer / Secretary

Admin and HR Manager

• Head of Construction and Renovation
• Business Developer / Sales and Marketing
• Customer Service Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise renovation projects
• Ensure compliance during project executions
• Provides advice on the management of projects
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.

Company’s Lawyer / Secretary / Legal Counsel

• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial / securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develops company policy and position on legal issues
• Researches, anticipates and guards company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Plays a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Renovations / Construction Engineers

• Responsible for handling home remodeling services such as residential additions, alterations and renovations, construction management for residential remodeling, fire and flood restoration, home improvement, porch construction, sunroom additions, kitchen and bathroom upgrades, systems and equipment, disaster repairs and other remodeling projects
• Establishes and enforces company’s engineering and construction standards
• Ensures that renovation / construction work meets or exceeds standards within a designated geographic area.
• Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.

Marketing and Sales Executive / Business Developer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
• Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk / Customer’s Service Officer

• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distributes mails in the organization
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the line manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s properties that are put – up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

The fact that home remodeling business is a very rewarding business does not mean that there are no challenges in the industry. Starting a home remodeling business in the United States of America comes with its own fair share of challenges, you would have to abide by the law and also compete with loads of other entrepreneurs in the real estate business value chain who also are interested in making a living and building a business in the US.

In order to compete favorably in the home remodeling cum real estate industry as a home remodeling company we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us.

We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Zoë McLaurin® Home Remodeling Company;

Some of our strength that we will be bringing to the table in the home remodeling cum real estate industry is our robust relations with home owners and properties investment moguls in the whole of the United States of America.

Our access to funding and also, we have a team of experts who have cut their teeth in the real estate industry cum home remodeling line of business. Our commission structure and relationship with freelance real estate agents in Annapolis – Maryland and other state in the US will also count towards our advantage.

As a newbie in the home remodeling line of business cum real estate industry, we might have some challenges competing with big time property developers and other home remodeling companies that have been in the industry for many years; that perhaps is part of our weakness.

• Opportunities:

The opportunities in the home remodeling cum real estate industry especially as a home remodeling company is massive considering the numbers of home owners who have the financial capacity to renovate their homes as at when due. We are well – positioned and ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a home remodeling company are unfavorable government policies , and global economic downturn; global economic downturn usually affect spending power and the real estate industry cum home remodeling line of business is known to encounter decline in sales and profits during this period.

Selling properties could take a period of two to three years from conception to completion depending on the size of the project and the cash flow. As a matter of fact, some home remodeling projects could even take much longer than that.

Because of the time frame involved in renovating and decorating a property from start to finish, loads of un – anticipated things could crop up and it fall in the thick of property cum economy downturn which is not good for the business considering the investment that has gone into the project.

Another factor that is of major concerns and a threat to home remodeling business generally could be cost increase as a result of inflation, currency devaluation and economic challenges. Unforeseen delays from the part of government agencies, litigation and also delays from contractors could lead to substantial cost increase especially if the project is heavily dependent on bank loans.

If perhaps during this period, there is a change in the supply and demand dynamics of the property sector the project could be affected negatively. There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The market trends in the real estate industry or within home remodeling companies are that, there are no fixed profits projections when engaging in a home remodeling deal.

The profit you stand to gain depends on loads of factors amongst which are your attention to details, ability to turn a slum or a ransack facility into an edifice and knowing exactly when to seal a home remodeling deal, the kind of renovations and decoration to be done on the property.

If you are able to get all the above stated factors right as a home remodeling company, your gains will always be far more than your loss.

Another obvious trend that is common with home remodeling companies in the United States of America is that most of them are improvising on more means of making money in the real estate industry and as matter of fact they are also acting as property developers and home staging agents amongst many other functions that they are involved in.

Lastly, one thing is certain for every home remodeling company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.

8. Our Target Market

As a home remodeling company, our target market cuts across people (home owners) of different class and people from all walks of life.

We are coming into the home remodeling cum real estate industry with a business concept that will enable us work with the highly – placed people in the country and at the same with the lowly placed people who are only interested in renovating their homes at an affordable price.

As a matter of fact, our target market is the whole of the United States of America and we have put plans in place to recruit freelance agents (brokers) nationally to represent our business interest wherever they are located in the United States of America.

Below is a list of the people and organizations that we have specifically design our products and services for;

• Families who are interested in acquiring a decent and well renovated home
• Corporate organizations who are interested in acquiring their own property / properties
• Home Owners who are interested in remodeling and selling off their home
• Properties Owners who are interested in remodeling and selling off their properties
• Foreign investors who are interested in owning properties in the United States of America and remodeling the property
• The government of the United States of America (Government contracts)
• Managers of public facilities who would want to engage home remodeling companies to help them remodel properties under their care.

Our competitive advantage

No doubt, the home remodeling cum real estate industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can successfully help them remodel their homes to fit into the picture of the ideal home they have in mind.

We are quite aware that to be highly competitive in the home remodeling industry means that you should be able to deliver consistent quality home remodeling jobs and you should be able to meet the expectations of your clients at all times.

Zoe McLaurin® Home Remodeling Company might be a new home remodeling company in the home remodeling cum real estate industry, but the management team and the owner of the business are considered gurus in the industry, professional who have what it takes to grow a business from scratch to become a top brand within the shortest time possible.

They are people who are core professionals, licensed and highly qualified, people that can successfully help her clients remodel their homes to fit into the ideal picture of a 21 st century home. These are part of what will count as a competitive advantage for us.

Aside from our robust experience and expertise of our team of experts, we have a very strong online presence that will enable us attract clients from all across the United States of America. Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups home remodeling companies in the United States) in the industry.

It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives. We will also engage freelance marketing agents on a commission level to help us market our services.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Zoe McLaurin® Home Remodeling Company is established with the aim of maximizing profits in the home remodeling cum real estate industry. Although we are a home remodeling company, but part of our work force is also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Zoe McLaurin® Home Remodeling Company;

10. Sales Forecast

It is a known fact that as long as there are homeowners in the United States of America, there will always be need to for them to remodel their homes from time to time to conform with the trends in the neighborhood or city. Hence the demand for the services of home remodeling companies to help them solve these needs.

We are well positioned to take on the challenges that are synonymous to home remodeling businesses in the United States, and we are quite optimistic that we will meet out set target of generating enough income / profits from the first month or operations and grow the business beyond Maryland to other states in the United States of America within record time.

We have been able to critically examine the real estate market cum house remodeling line of business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions peculiar to similar start – ups in Maryland;

Below are the sales projections for Zoe McLaurin® Home Remodeling Company. It is based on the location of our business and the home remodeling and related services within the real estate cum home remodeling industry that we will be offering;

• First Fiscal Year-: $500,000
• Second Fiscal Year-: $1.2 million
• Third Fiscal Year-: $1.7 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same additional services as we do within the locations where we have a strong business presence.

Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

• Marketing Strategy and Sales Strategy

We quite mindful of the fact that there are stiffer competitions in the home remodeling cum real estate market in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also all our freelance brokers that are scattered all over the United States of America.

Our goal is to become one of the leading home remodeling companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force in the industry.

Zoe McLaurin® Home Remodeling Company is set to make use of the following marketing and sales strategies;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the real estate industry and also property owners and potential clients through the United States of America
• Promptness in bidding for homes / properties that are put up for remodeling
• Advertise our business in real estate / properties magazines and websites
• List our business on yellow pages (local directories)
• Attend real estate related expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to successfully remodel their homes / properties
• Leverage on the internet (social media platforms) and our official website to promote our business
• Encourage word of mouth marketing especially when we have a home for sale.

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the home remodeling cum real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our company. Below are the platforms we intend to leverage on to promote and advertise our home remodeling business;

• Place adverts on both print and electronic media platforms
• Place our flexi banners with our company’s logo and contacts in every property we put up for sale
• Sponsor relevant TV shows so as to be able to communicate our brand and what we do
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn,  Badoo, Google+  and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
• Install our Bill Boards on strategic locations
• Distribute our fliers and handbills in targeted areas from time to time
• Attend landlord and residence association meetings with the aim of networking and introducing our business.
• Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work within the budget of our potential clients to help them remodel their homes to meet their expectations. It is the practice in most parts of the world for properties to be valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry we can only abide by what is obtainable when it comes to fixing a price for a home remodeling contract. But one thing is certain, we will ensure that we deliver excellent jobs when have we are contracted to do so.

Lastly, we will ensure that we keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  In addition, we will also offer special discounted rates to our clients from time to time especially when they recommend clients to us.

• Payment Options

At Zoe McLaurin® Home Remodeling Company our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.

Real estate deals usually involves huge amount of money. Here are the payment options that Zoe McLaurin® Home Remodeling Company will make available to her clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our freelance sales agents (real estate brokers) with same platforms. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

Any agent who intend paying with cash will be directed to deposit the money into our corporate account and then present their payment tellers to us.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a home remodeling company; it might differ in other countries due to the value of their money However, this is what it would cost us to set up Zoe McLaurin® Home Remodeling Company in the United States of America;

• The total fee for incorporating the business in The United States of America – $750.
• The budget for permits and license – $2,000
• The cost for hiring Consultant – $2,500.
• The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
• Cost for payment of rent for a suitable Office facility with enough space in Annapolis – Maryland for 12 month at $1.76 per square feet in the total amount of – $105,600.
• The cost for office remodeling (construction of racks and shelves) – $20,000.
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost of Launching our official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from the market research and feasibility studies conducted, we will need over two hundred and fifty thousand ( 250,000 ) U.S. dollars to successfully set – up a small scale but standard home remodeling company in the United States of America. Please note that the salaries of all our staff members for the first month are included in the expenditure.

Generating Funds / Startup Capital for Zoe McLaurin® Home Remodeling Company

Zoe McLaurin® Home Remodeling Company is a business that will be owned and managed by Zoe McLaurin, her immediate family members and other business partners. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Zoe McLaurin® Home Remodeling Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our home remodeling services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Zoe McLaurin® Home Remodeling Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Renting of Office Facility and remodeling the facility in Annapolis – Maryland: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO / President and Business Partners: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

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Here is a free business plan sample for a home renovation company.

Embarking on a home renovation business can be an exciting venture, but knowing where to start can be overwhelming.

In the content that follows, we will present you with a comprehensive sample business plan tailored for a home renovation company.

As any seasoned entrepreneur will tell you, a detailed business plan is crucial for laying the foundation of a successful business. It serves as a roadmap, guiding you through setting clear objectives, strategies, and financial projections.

To jumpstart your planning process with ease and precision, you're invited to utilize our home renovation business plan template. Additionally, our team is available to provide a free review and refinement of your plan to ensure it's polished and professional.

How to draft a great business plan for your home renovation company?

A good business plan for a home renovation business must be tailored to the unique aspects of the renovation industry.

Initially, it's crucial to provide a comprehensive overview of the home renovation market. This should include current statistics and an analysis of emerging trends, similar to what we've outlined in our home renovation business plan template .

Your business plan should articulate your vision clearly. Define your target market (homeowners, real estate investors, property managers, etc.), and establish your business's unique selling proposition (eco-friendly renovations, luxury upgrades, budget-friendly remodels, etc.).

Market analysis is a key component. You need to understand the local demand for renovation services, identify your competitors, and know the preferences and behaviors of potential clients.

For a home renovation business, it's important to detail the services you offer. Whether it's kitchen and bathroom remodels, whole-house renovations, or specialized services like historic restorations, explain how these services cater to the needs of your clientele.

The operational plan should outline the logistics of your business. This includes the location of your headquarters, the structure of your project management, sourcing of materials, and the details of your service delivery process.

Emphasize the quality of workmanship, the reliability of your subcontractors, and adherence to building codes and safety standards.

Discuss your marketing and sales strategies. How will you generate leads and maintain a steady stream of projects? Consider advertising methods, customer referral programs, and strategies for upselling services.

Incorporating digital strategies, such as a professional website, online portfolio, and social media engagement, is increasingly important for reaching today's homeowners.

The financial section is vital. It should include your startup costs, revenue projections, operating expenses, and the point at which you expect to break even.

Home renovation projects can vary greatly in size and profitability, so it's essential to have a detailed financial plan. You can refer to our financial forecast for a home renovation business for guidance.

Compared to other business plans, a home renovation plan must address specific challenges such as project management, regulatory compliance, and the potential for unforeseen issues during renovations.

A well-crafted business plan will not only help you define your strategy and approach but also prove invaluable when seeking investment or loans.

Lenders and investors will look for a thorough market analysis, realistic financial projections, and a clear plan for managing renovation projects effectively.

By presenting a comprehensive and substantiated business plan, you showcase your professionalism and dedication to the success of your home renovation business.

To streamline the process and ensure you cover all necessary elements, you can start with our home renovation business plan template .

A free example of business plan for a home renovation company

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a home renovation .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market analysis and projections.

The home renovation industry is a robust and ever-evolving market with significant growth potential.

Recent studies have shown that the global home improvement sector is projected to reach a value of over $1,000 billion by the next few years. This growth is driven by a rising trend in home ownership and the increasing interest in personalizing living spaces.

In the United States, there are over 500,000 businesses operating in the home renovation industry, generating an annual revenue of approximately $450 billion. This underscores the critical role home renovation services play in the American economy and the housing market.

These statistics highlight the vast opportunities available for businesses within the home renovation sector.

Industry Trends

The home renovation market is witnessing several key trends that are shaping the future of the industry.

Smart home technology integration is becoming increasingly popular, with homeowners looking to enhance convenience and energy efficiency through automated systems and intelligent devices.

Eco-friendly and sustainable home improvements are also on the rise, as consumers become more environmentally conscious and seek out green materials and renewable energy solutions.

There is a growing demand for multi-functional spaces and flexible design, reflecting the need for homes to adapt to remote work and changing family dynamics.

Additionally, the DIY movement continues to flourish, supported by online tutorials and the availability of home improvement tools and materials. However, for more complex projects, professional renovation services are still in high demand.

Online platforms and mobile applications are streamlining the way homeowners find and engage with renovation professionals, making the process more accessible and transparent.

These trends indicate a shift in homeowner preferences and priorities, which home renovation businesses must consider to stay competitive and relevant.

Key Success Factors

Several factors contribute to the success of a home renovation business.

Quality of workmanship is paramount. A company that consistently delivers high-quality renovations will build a strong reputation and a base of repeat customers.

Innovation in design and the ability to offer customized solutions can set a business apart in a crowded market.

Location and accessibility are important, as a local presence can influence homeowners' choice of renovation service providers.

Exceptional customer service is essential for ensuring client satisfaction and fostering positive word-of-mouth referrals.

Lastly, effective project management, competitive pricing, and the ability to incorporate sustainable practices are crucial for the long-term viability and profitability of a home renovation business.

The Project

Project presentation.

Our home renovation business is designed to cater to the increasing number of homeowners looking to enhance their living spaces. Situated in a region with a booming real estate market, our service will offer comprehensive home renovation solutions, from kitchen and bathroom remodels to full home makeovers, all executed with top-notch craftsmanship and high-quality materials.

We will focus on creating functional, modern, and aesthetically pleasing spaces that reflect the unique style and needs of each homeowner. Our renovations will not only improve the visual appeal of a home but also its market value and energy efficiency.

Our home renovation business aims to set the standard for quality and customer satisfaction in the local market, transforming houses into dream homes and thereby improving the quality of life for our clients.

Value Proposition

The value proposition of our home renovation business is centered on delivering personalized and high-quality home transformations that cater to the specific desires and requirements of homeowners.

Our commitment to reliability, craftsmanship, and attention to detail ensures that every project we undertake enhances the functionality and beauty of the home, providing a tangible improvement to the homeowner's quality of life.

We are dedicated to fostering long-term relationships with our clients by providing exceptional service and transparent communication throughout the renovation process, and we aim to educate our customers on the best practices for maintaining and enhancing their newly renovated spaces.

As a trusted partner in home improvement, we strive to be a cornerstone in the community, offering a reliable and professional service that homeowners can depend on to turn their renovation dreams into reality.

Project Owner

The project owner is a seasoned professional with a passion for home improvement and a keen eye for design.

With years of experience in the construction and renovation industry, he possesses the technical knowledge and leadership skills necessary to deliver projects that exceed expectations. His expertise extends to project management, interior design, and sustainable building practices.

Driven by a vision of transforming living spaces into personalized sanctuaries, he is committed to using his skills to enhance the comfort and satisfaction of homeowners. His dedication to quality and his zeal for innovation make him the driving force behind this venture, aiming to elevate the standard of living for those seeking to renovate their homes.

The Market Study

Target market.

The target market for our home renovation business encompasses a variety of homeowners.

Firstly, we cater to homeowners looking to update or modernize their living spaces to enhance comfort, functionality, or aesthetic appeal.

Secondly, we serve individuals preparing to sell their homes who wish to increase property value through strategic renovations.

Additionally, our services are sought after by new homeowners desiring to personalize newly purchased properties to suit their tastes.

Lastly, real estate investors and property managers represent a significant segment, as they often require renovations to maintain or improve their rental or sale properties.

SWOT Analysis

Our SWOT analysis for the home renovation business highlights several factors.

Strengths include a skilled team with extensive renovation experience, a strong network of suppliers, and a reputation for reliability and high-quality workmanship.

Weaknesses may involve the cyclical nature of the housing market and the dependency on economic conditions that influence homeowners' renovation investments.

Opportunities can be found in the growing trend of home improvement and the potential for green renovations that appeal to environmentally conscious consumers.

Threats include the intense competition from other renovation companies and the potential for supply chain disruptions affecting material availability and costs.

Competitor Analysis

Our analysis of competitors within the home renovation industry indicates a competitive landscape.

Direct competitors range from other local renovation businesses to larger contracting firms and specialized service providers.

These competitors vie for homeowners' attention by offering various services, from full-scale remodels to specific upgrades like kitchen or bathroom renovations.

Competitive edges may be gained through superior craftsmanship, customer service, turnaround times, and the ability to provide comprehensive solutions from design to execution.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a niche and ensuring customer loyalty.

Competitive Advantages

Our home renovation business prides itself on a customer-centric approach, ensuring that each project is tailored to the homeowner's specific needs and vision.

We offer a wide range of renovation services, from simple cosmetic updates to complex structural changes, all executed with meticulous attention to detail.

Our dedication to sustainability and energy-efficient options sets us apart, as we provide innovative solutions that benefit both the environment and our clients' long-term expenses.

Transparency in pricing, timelines, and project management processes fosters trust and reassures our clients that their home is in capable hands.

You can also read our articles about: - how to launch a home renovation business: a complete guide - the customer segments of a home renovation company - the competition study for a home renovation company

The Strategy

Development plan.

Our three-year development plan for the home renovation company is designed to establish us as a leader in the industry.

In the first year, we will concentrate on building a strong reputation in our local area through exceptional workmanship and customer service.

The second year will be focused on expanding our services to neighboring regions and increasing our service offerings to include eco-friendly and smart home solutions.

In the third year, we aim to form strategic alliances with real estate firms and architects to offer comprehensive renovation packages and further solidify our market position.

Throughout this period, we will remain dedicated to using sustainable materials, maintaining transparent communication with clients, and staying abreast of the latest industry trends and technologies.

Business Model Canvas

The Business Model Canvas for our home renovation company targets homeowners looking for reliable, high-quality renovation services.

Our value proposition is centered on delivering personalized renovation solutions that enhance the comfort, functionality, and value of our clients' homes.

We offer our services through direct consultations and digital platforms, utilizing our skilled workforce and project management expertise as key resources.

Key activities include project design, construction management, and client relations.

Our revenue streams are generated from the provision of renovation services, while our costs are mainly associated with labor, materials, and marketing efforts.

Access a detailed and customizable Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on building trust and showcasing our expertise.

We plan to engage with potential clients through home renovation workshops, before-and-after showcases, and testimonials from satisfied customers.

We will also develop partnerships with suppliers of high-quality materials to offer exclusive deals and promotions.

Our online presence will be strengthened through social media, SEO, and influencer collaborations to reach a wider audience and demonstrate our renovation successes.

Risk Policy

The risk policy for our home renovation company is designed to mitigate risks associated with construction projects, client satisfaction, and workplace safety.

We adhere to strict building codes and safety regulations, ensuring all projects are compliant and our team is well-trained in safety protocols.

Quality control checks are conducted at key project milestones to ensure standards are met. We also implement a careful financial management strategy to prevent budget overruns.

Comprehensive insurance coverage is maintained to protect against potential liabilities. Our focus is on delivering safe, high-quality renovation services that exceed client expectations.

Why Our Project is Viable

We are committed to establishing a home renovation company that stands out for its quality, reliability, and innovative solutions.

With a growing market for home improvements and our dedication to customer satisfaction, we are poised for success in the competitive renovation industry.

We are enthusiastic about transforming living spaces and enhancing the lifestyles of our clients while building a sustainable and profitable business.

We are adaptable to market demands and client needs, and we are excited about the future prospects of our home renovation company.

You can also read our articles about: - the Business Model Canvas of a home renovation company - the marketing strategy for a home renovation company

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a home renovation and our financial plan for a home renovation .

Initial expenses for our home renovation business include acquiring essential tools and equipment, obtaining the necessary licenses and insurance, setting up a workspace or office, purchasing a reliable work vehicle, and investing in marketing to establish our brand presence. We will also allocate funds for skilled labor, either by hiring employees or subcontractors, and for training to ensure compliance with the latest building codes and regulations.

Our revenue assumptions are based on a thorough market analysis of the local demand for home renovation services, taking into account the current trends in home improvement and the potential for high-quality, sustainable renovation options.

We anticipate a steady increase in client projects, starting with smaller renovations and gradually taking on larger, more complex jobs as our reputation for quality workmanship and reliability grows.

The projected income statement outlines expected revenues from our renovation services, direct costs (materials, labor, subcontractor fees), and operating expenses (office rent, marketing, insurance, vehicle maintenance, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our home renovation business.

The projected balance sheet will display assets such as tools, equipment, and any real estate owned by the business, along with liabilities including loans and accounts payable.

It will provide a snapshot of the company's financial standing at the end of each fiscal period.

Our projected cash flow statement will detail the cash inflows from client payments and outflows for expenses like materials and wages. This financial tool is crucial for ensuring we maintain adequate cash reserves to fund ongoing operations and growth initiatives.

The projected financing plan will identify the sources of capital we intend to tap into for covering our initial outlay, such as bank loans, lines of credit, or investor funding.

We will closely monitor the working capital requirement to ensure we have sufficient funds on hand to cover day-to-day expenses, such as purchasing materials, paying workers, and managing inventory.

The break-even analysis will determine the volume of renovation contracts we need to secure to cover all our costs, including the initial investment, and to start generating profits.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will track include the gross margin on our renovation services, the current ratio to evaluate our short-term financial resilience, and the return on investment to gauge the efficiency of the capital we have deployed into the business.

These metrics will assist us in measuring the financial health and success of our home renovation enterprise.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a home renovation company .

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Renovation Contractor Business Plan Template

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How to Write a Business Plan for Interior Design

Writing a business plan is the first step in starting your own interior design firm. Find everything you need to start writing from the experts at Houzz Pro.

As an interior designer, you know that every successful project needs a great plan. The same goes for your interior design business. Even if you’re just starting out with your design business, or if you’re revamping your current business model, knowing how to write an interior design business plan will guide you on your path to success and help move your business forward.

If you’ve never written a business plan before or need help fine tuning your current plan, it can be a bit overwhelming to know where to begin and what to include. Our guide will give you a comprehensive overview of how to write a business plan for interior design, including what an interior design business plan entails, why you need a great plan, which sections and information to incorporate, and last but not least, step-by-step details on how to write your business plan. Read on or click a link below to take the next step—and your business to the next level:

• What is a business plan?
• Why are business plans important?
• Components of a business plan
• How to write a business plan step-by-step

What is an interior design business plan?

An interior design business plan is a written document detailing what your business is all about, what you’d like to achieve and how. It’s an outline and guide of what your business offers, your operations and financial plan, your business goals and what you plan to do to accomplish them. No two interior design businesses or plans are alike—and that’s a great thing! Your interior design business plan will be entirely unique to you, your particular business market, specialities and what you desire to achieve. 

Why are interior design business plans important?

Writing an interior design business plan is fundamental to creating a successful interior design business, or for revising the strategy and direction of your current business. It’s said that a dream without a goal is just a wish—and the same goes for your interior design business plan. “Generally speaking, creatives—specifically, interior designers—are very good at designing but don’t know how to run a business,” says designer Ann Ueno. “So their businesses fail within the first to three years, or they’re not profitable.” A good business plan will help distinguish the strengths of your business and identify the potential pitfalls of certain decisions. Your plan will also help you know how you stand apart from your competitors and your strategy to compete in the market. 

Not having a business plan can be a recipe for failure in your interior design business. External audiences—such as a potential business partner, or bank if you’ll be securing a loan—will want to review your business plan, so it’s important that you have one firmly in place. “I definitely believe the old Henry Ford adage of ‘Failing to plan is planning to fail,’” says Deana Duffek of Duffek Design & Development. Without a plan, you can easily lose focus, time and money by investing in the wrong areas without thinking them through, or miss out on opportunities when they arise. Your interior design business plan helps you stay on track with your vision, goals and how you will achieve them, so you’ll always know where you’re headed.

Components of an interior design business plan

Now that you know what an interior design business plan is and why it’s important, the next step in how to write an interior design business plan is knowing exactly what you need to include in your plan. This section will explain the essential components of your business plan and the necessary information that should be included in each one. While you may have additional areas you might need to incorporate that pertain to your particular business, the below are a great place to start and are fundamental for any business plan.

Executive summary

Your executive summary will give an overview of what your interior design business is about and how it will be successful. Here, you can include your mission statement, which describes the purpose and overarching goal of your business: what’s driving you to do what you do in serving your clients? When writing your interior design business plan, your executive summary will also include a brief description of your services. Do you offer commercial or residential design? Restoration or consultancy services? Be specific, but not overly detailed just yet. Lastly, you’ll also include basic information about your company’s ownership, the number of employees and types of roles you employ, your location, and high-level financial information.

Company overview

The company overview is where you’ll start to provide more detailed information about your interior design business. What are the interior design needs your business will address? What types of clients will you serve? What are the strengths of your business that help give you a competitive advantage in your particular market? Your company overview is where you can share all about “who” you are and what makes your company great.

When you know the strengths and focus of your interior design business, it’s easier to know what types of services you’ll be offering. The services section is where you really get down to brass tacks describing exactly what you’ll be selling and providing to your clients.

Market analysis

Your interior design business plan needs to outline where it stands in the market, which will require some research and analysis. This section will include the latest information and trends about your industry, your target market, and who your competition is in your area, so you know how to make your business stand out.

Customer analysis

Your customer is unique to your business, the services you offer, and where your business is located. When writing your interior design business plan, get creative with this section when imaging your ideal customer. Who are they and what are their needs and pain points? How much do they earn and what are they likely to spend? Knowing your customer is essential to the success of your business, so be as detailed as possible with your customer analysis.

Marketing plan

When you know who your interior design customer is, you’re able to target them more precisely in the market. Take the knowledge you gained from your customer analysis and use it for your marketing plan. You’ll also want to share about the strengths and services you want to highlight in your marketing when writing your interior design business plan.

Operations plan

The operations plan section of your business plan will describe the physical operation needs of your interior design business and how you will keep your business successfully in motion. What is your physical location? What kind of equipment does your business use? What production systems, workflows and quality checks will you have in place? How many employees do you need to grow? Here you’ll also include information about your inventory needs for design materials and samples, as well as details about your suppliers.

Management plan

Your management plan talks about the people behind your business. Who runs the company? Who is on your management team and staff? You’ll also want to include the strengths of key players in your management team and company. If you’re a sole proprietor, then you can simply describe who you are, your background and the roles you’ll be playing in your business.

Financial plan

Your financial plan will be an important component when writing a business plan for interior design. Here’s where you’ll want to add as much detail as possible about your current financial picture, including financial statements and balance sheets, as well as future forecast projections.

Lastly, the appendix of your business plan for interior design will include documents to support the details you provided in your plan. This can include resumes, licenses, credit history, legal documents and more to help support the validity of your plan and back up your credibility.

How to write a business plan for interior design step-by-step

1. Pick a specialty

Narrow down your niche to stand out in the market

There’s a reason why people say “there are riches in niches.” Focusing on a specific niche for your interior design business will help you zero in on your customer and stand out amongst a smaller field of competitors. Here are just a few specialities to consider for your business:

• Residential interior design
• Corporate or commercial interior design
• Hospitality interior design
• Restaurant design
• Sustainable design
• Lighting design
• Kitchen design
• Exhibit design
• Space planning consultant services
• Interior design consultancy
• Color specialist
• Feng shui interior design 
• And many more

2. Define services provided

Know exactly what you’re offering your clients

After you’ve selected your niche, you can now define the interior design services you’d like to provide your clients. Will you be providing designs only or full-service design, supply and installation? Will you focus on designing for certain rooms, such as the kitchen or bath? Will you offer remote and in-person consultations? Other considerations to make when selecting your services include: your particular strengths as a designer, what your clients in the market are desiring, what you’re capable of providing and what will contribute to your bottom line.

3. Determine pricing model

Choose an attractive pricing model for maximum profitability 

Before determining your pricing model, you need to review your local market, current prices and what your competition is charging. From there you can choose from the following options for your pricing model:

• Hourly rate
• Flat fee per project
• By square footage
• Cost plus (where the client pays the net value of furnishings and materials plus your markup) 
• Retail (where the client pays the retail cost for items; your fee is the difference between the net and retail price)

4. Brainstorm marketing strategy

Questions to help define your strategy and target your customer

When forming your marketing strategy for your interior design business plan, go back to your market and customer analysis and ask yourself: who is my customer, what do they want and how can I stand out in the market? Here are a few more key items and questions to consider: 

• How will you reach your customer? Which social media platforms are they using? Which websites do they visit? Is your customer more likely to respond to an email or should you market yourself at tradeshows? 
• What is your marketing message? What does your customer need and what’s going to make them choose you?
• Lastly, you need to include how you’ll be managing your marketing campaigns. Will you be hiring an outside agency for your marketing? Will you be advertising yourself? What budget will you be allocating for marketing? 

Interior designers surveyed by Houzz in 2022 reported that marketing and advertising comprised the second highest expense in starting their own business (second only to technology — more on this below). Knowing this will help you create and financially plan for a solid marketing strategy when writing your interior design business plan.  

5. Brainstorm operations strategy

Know who and how you’ll manage your business

Here are key operations items you’ll need to consider for your interior design business plan: 

• Facilities: Your business will need the right space to facilitate your operation and grow, so make sure to assess the physical needs your business requires now and in the long run. This can include everything from the size and layout of your workspace to the kinds of storage you might need for organizing your interior design materials . 
• Production system: Successful businesses have great systems in place. You’ll want to consider your standard operating procedures, as well as workflows for various aspects of your business (from onboarding a client to completing and invoicing for a project ). 
• Quality management: Managing the quality of your services is key to your business and reputation, so you need to put checks in place to make sure you’re continually reviewing your performance. 
• Technology and resources: Assess the technology requirements of your business today and in the future. According to a survey conducted by Houzz in 2022, interior designers reported that technology costs were the No. 1 most expensive part of starting their own business. Today’s leading designers use technology to stand out from the competition, bring designs to life and keep their businesses organized. Every designer should prioritize technology that will help provide the best client experience, and thinking through those tech needs early on can help you budget for those expenses. You’ll also want to take into account your human resources and staff you’ll need, suppliers you’ll be working with, and the physical materials required including everything from design samples to office supplies.

6. Set financial goals

Create a plan to achieve your financial objectives

The main financial goal of any business is profitability. In order to be profitable your revenue must exceed your total expenses, so it’s important to keep this as a top financial goal to keep your business sustainable. After profitability, you’ll want to track your profit margins and compare them to your industry average. This will help you see where you may need to trim your expenses in order to maximize profit. 

In the day-to-day operation of your business, healthy cash flow is another objective to maintain. This will help you know how much liquid cash you have to cover your basic operating expenses, or if you’ll need a loan or line of credit to float your business. The majority (63%) of interior designers surveyed by Houzz in 2022 used their own personal savings to get started, but your situation might be different. Learn more about the different ways to fund your interior design business .

When writing your interior design business plan, you’ll also want to consider bigger long-term financial goals you might have, such as expanding your workspace, hiring new employees and what steps you’ll need to take to accommodate this growth in your business.

Now you know how to write a business plan for interior design from start to finish, which will help keep your business on the path to success—now and in the long run. If you’d like to keep reading, check out How to Price Interior Design Services .  

If you're ready to launch your business, you'll need a powerful yet flexible interior design software . Start your business off on the right track with a free trial of Houzz Pro .

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Interior Design Business Plan

Things to Consider Before Writing an Interior Designing Business Plan

Determine the services you’ll offer.

Knowing what you’ll offer alongside your primary services and advertising, is essential to help you set the right expectations for your customers. It is important to have a framework for your services and resources to fulfill them.

Develop a unique style

In a world full of beautiful homes, people want theirs to stand out and give out a personalized and unique vibe. Hence, it is necessary to develop a style that makes your design stand out and has space for giving the house a personalized and homely atmosphere.

Make a portfolio of your designs

This is something that you should surely pay attention to when you are learning interior design or doing an internship. Make a portfolio of your designs that become proof of your designing skills, help your clients decide what they want, and act as an inspiration for designing homes.

Build a web presence

In today’s digital world, staying present online is equivalent to breathing for your business. Because a lot of people nowadays avail services through websites and social media. Hence, having a strong presence on all relevant platforms is essential for your business to thrive. You can post pictures of finished projects, DIYs, and many more.

Chalking out Your Business Plan

If you are someone with an artistic flair and can increase the utility of space then an interior design business might be the perfect career for you.

But wait, before you go ahead and take the plunge, don’t forget to write a well-rounded interior design business plan to help you along the way.

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample interior design business plan for you to get a good idea about what a perfect interior design business plan should look like and what details you will need to include in your stunning business plan.

Interior Design Business Plan Outline

This is the standard interior design business plan outline which will cover all important sections that you should include in your business plan.

• Mission Statement
• Vision Statement
• 3 Year profit forecast
• Keys to Success
• Company Ownership
• Company Locations and Facilities
• Product and Service Description
• Competitive Comparison
• Sales Literature
• Sales Yearly
• Service Business Analysis
• Market Analysis
• Target Market Segment Strategy
• Market Trends
• Market Growth
• Market Needs
• Distributing a Service
• Competition and Buying Patterns
• Main Competitors
• Business Participants
• SWOT Analysis
• STRATEGY #1 – Generating Referrals
• STRATEGY #2 – Product Sales
• STRATEGY #3 – Generate Awareness Through the Website
• Value Proposition
• Competitive Edge
• Marketing Strategy
• Pricing Strategy
• Promotion Strategy
• Distribution Strategy
• Strategy #1
• Strategy #2
• Strategy #3
• Positioning Statement
• Web Plan Summary
• Sales Programs
• Strategic Alliances
• Organizational Structure
• Personnel Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample business plan into your business plan and modify the required information and download your interior design business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.

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Download a sample interior design business plan

Need help writing your business plan from scratch? Here you go;  download our free interior design business plan pdf  to start.

It’s a modern business plan template specifically designed for your interior design business. Use the example business plan as a guide for writing your own.

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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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Apple Inc. is winding down a long-running project to design and develop its own smartwatch displays, putting an end to another pricey research and development initiative.

In recent weeks, the company has ceased an in-house effort to create screens with microLED technology, according to people with knowledge of the matter. The displays, which featured brighter and more vibrant visuals, would have been added to a future version of the Apple Watch — before potentially going into other products.

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Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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How to Create a Business Plan Presentation

How to Write a Business Plan

How to Start a Business With No Money

Business Plan Template

10 Qualities of a Good Business Plan

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