Business plan for an interior design studio: an example with calculations

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The business project of a design studio will require some additional knowledge in the field of design from the entrepreneur. At the same time, there is nothing difficult in opening such an enterprise. Before you open an interior design studio from scratch, you need to decide on the area where it will function. As a rule, we are talking about cities with a population of more than 1,000,000 people.

Business Relevance

In recent decades, it has become increasingly popular to create an interior when referring to professional designers. More and more individual projects in this area appear on the territory of the Russian Federation. The interior design business studio will be relevant due to the constant growth in demand for its services. In addition to the fact that the commissioning of housing is increasing, the incomes of the population are also growing. At the same time, people are beginning to live in increasingly comfortable conditions. Design services are thus a promising industry.

Among the main advantages of opening a design studio are high profitability, low payback periods. In addition, this activity can be organized at home. Alsoa business of this kind is quite simple to open.

To implement such a project, you need to acquire one office. Only 15 square meters are enough, while the rental price is about 30,000 rubles. The office will need to be furnished.

Target Audience

The target audience of a ready-made business is design studios - people who need to make repairs. As a rule, these are representatives of the middle class. The second category of the target audience is corporate clients who need the design of offices, shops, restaurants.

Investments

Initial investment will be required in the amount of 415,000 rubles. It is for this amount that office equipment and software will be purchased. In addition, this includes a budget for marketing. For the most part, spending will fall on the purchase of equipment - 53% of all funds will go to this item. To implement the project, it will be quite possible to manage with our own funds.

Payback

The most important step in opening a design studio is calculating the return on business. As a rule, in this case we are talking about three years. It is believed that during this time there will be a need to expand the business.

That is, the initial investment will pay off within 6 months from the start of the studio. The required sales volume will be reached by the end of the first year of operation. The planned net profit is 300,000 rubles per month. For the year, according to the finished business plan of the interior design studio, such a business will bring more than 1,500,000 rubles. Profitability in the first year will be approximately 43%.

Description of the enterprise

It is necessary to take into account the fact that this industry began to gain popularity only a couple of decades ago. At the moment, almost every person who buys real estate is interested in equipping the premises to suit all their needs. And here often people turn to professionals in this field. At the same time, most customers want an individualized project. It is this factor that makes opening a design studio a relevant enterprise.

At the moment, design services represent the most important segment in the economy. Every year the turnover in it is about 15,000,000 dollars. At the same time, the market in this area remains closed. Approximately 35% is located in the shadow sector of the economy. After all, there are a lot of freelancers in this area.

According to official figures, more than 120,000 people are designers. Due to the fact that the market is closed, the real trends in this area are difficult to assess. They are tracked in related areas: for example, in terms of purchases of finishing materials.

When planning to draw up a business plan for a design studio with calculations, it must be borne in mind that for the most part, owners of new buildings and those who want to re-plan Khrushchev will apply for services in this area. According to official statistics, new buildings will be commissioned more and more. And this is the perfect foundation for an interior design business.

Official studies show that more than 65% of sales of finishing materials are accounted for by specialists in the field of architecture and interior design. The higher the demand for design, the more decorative elements are purchased. In fact, specialists in this industry act as intermediaries between homeowners and sellers of building materials.

Each year, the market for these products grew by about 20%, but since 2015, growth has slowed down and now stands at about 3%. But the interior design market is growing by about 30%. Before you open an interior design studio, you need to analyze the demand for such services in your region. And the results of these analyzes will most likely be very positive: services of this kind are in demand.

Advantages and disadvantages

The example of a business plan for an interior design studio clearly shows the advantages and disadvantages of an enterprise in this industry. So, it pays off quite quickly, this is not a seasonal market, it will not require large expenses, the profitability is high and there is the possibility of running several projects in parallel. Even during a crisis, interior design services remain in demand. Among the shortcomings are high competition, the need for constant contact with customers, attracting highly qualified workers. Also, demand can be unstable.

By and large, those who are interested in how to open a design studio from scratch should count on an attractive business. There will not be many difficulties at the opening stage, it will be much more difficult to turnan enterprise of this kind into a profitable one. The main task here will be to occupy your niche in the industry, you will need to highlight competitive advantages.

There is no doubt that the implementation of a business plan for opening a design studio should be undertaken by a person who has professional skills in this field. Having formed a portfolio, having developed a client base, it will not be difficult to achieve success.

Services Provided

This business plan for opening a design studio involves the provision of services for the design of the premises. The list may include: layout design, interior sketches with furniture arrangement, using the latest 3D visualization technologies.

Also, services will be provided for interior decoration, the creation of individual artwork: hand-painted furniture, decor items, stained-glass windows, walls, fabrics and so on. This business plan for an interior design studio includes the provision by the company of services for the selection of finishing building materials, furniture placement and other issues related to the design of premises.

It is important to take market structure into account. By and large, there are more than five variations of ready-made studios. For example, it can be a design bureau. And this type of enterprise will most likely be the most successful. A firm of this kind will only deal with the design of the premises, without performing related functions. Thanks to her narrow specialization, she will be as professional as possible. It is supposed to cooperate with construction companies, architectural. If the village livesmore than 1,000,000 people, it will probably have more than 100 companies with a similar line of business.

The next variation of an interior design studio according to a business plan is an architectural workshop. It will carry out both the design and decoration of the premises. The second service will be in addition to the first one.

The third option is to open a design consulting firm in stores and salons. In this case, thanks to the assistance of designers, sales of building materials and furniture will increase.

The fourth direction is design in construction companies. As a rule, we are talking about the largest firms that can afford designers. The cost of a room design project is usually included in the final cost of the work.

The next category is freelance designer. Every year the number of such specialists is only growing. Many are moving away from hired work to free-floating. The most difficult thing in this case is to find customers, ensuring their constant flow. The market in this area is represented by those who have already established themselves as professionals, and those who do not have much work experience.

Concept

In this business plan for a design studio, it is recommended to combine 2 directions at once. Firstly, this is directly interior design, and secondly, services for coordinating changes. This guarantees the greatest coverage of the audience. It makes sense to offer only the development of projects to those who already have their own client base, have established themselves as a professional in this field.industry.

Each stage of work must be formalized in a separate agreement. Thanks to this format of work, it will be easier to understand what results are to be expected. Also, the customer will be able to contact a professional for a specific type of work.

Sales and advertising

In this design studio business plan, both individuals and corporate clients are considered as the target audience. The most important element in the promotion of the company is its own website. Here you need to place a portfolio of work, so that attracting customers will be much faster. It will also increase the reputation of the institution. The Internet resource facilitates interaction with the client. It is important to indicate on the site a list of services, prices for work, and provide contacts. It is allowed to publish articles that could be of interest to customers. The cost of creating such a site will be about 40,000 rubles. To gain more customers, you will need to bring it to the TOP of requests. You will need to involve SMM specialists, the cost of this will be from 20,000 rubles.

The next promotional tool will be social networks. It is recommended to create a separate page on Instagram. Here photos of projects with useful tips, customer reviews and so on will be published. Including this step in the business plan of the design studio will attract potential customers. Once they see a page like this, people will later know where to turn for room decor.

The company is also advertised in thematic publications. There are a large number of magazines about the design of the premises at the moment. The price of promotion will depend on the coverage of the target audience by the magazine. So, approximately spending on this item will be 25,000 rubles.

In addition, participation in design conferences can act as a promotion channel.

The next popular way to promote is through word of mouth. Usually, people turn to professionals in the design of premises on the basis of recommendations. It is important for clients to see the results of the work of the designer they contact.

This business plan of the design studio provides for about 80,000 rubles of expenses for the promotion of the company. For the most part, they will be spent in the first time of work. In this case, it is not recommended to save on marketing.

In advertising promotion, it will be necessary to highlight competitive advantages without fail. For example, a large number of reviews, a rich portfolio will attract more customers. You also need to implement a built-in system for working with customers. The studio should focus on budget projects, which at first will attract as many customers as possible. As a rule, the designer processes about 150 square meters per month. The price will be about 1300 rubles. At first, at least 3 specialists are needed, and then the revenue will be about 400,000 rubles.

Opening plan

The implementation of the business plan of the design studio will begin with the registration of the enterprise as an LLC or individual entrepreneur. Then you need to equip alreadyselected office space, hire employees, purchase equipment.

Registering a business will be a fairly simple step for the reason that no license is needed for design activities. In order to conduct this company most effectively, it is recommended to choose the LLC form, a simplified taxation system. To register a legal entity, you need to pay a fee of 3,000 rubles. Separate expenses at this stage will be printing and creating a separate bank account.

The search for office space will be aimed at renting a small office - 15 square meters is enough. But it is important that it is in a convenient location and that it has parking. It will need to be located next to related enterprises. It is best to choose a room that is already equipped with furniture. The rental price will be from 30,000 rubles. It is perfectly acceptable to carry out the same work at home.

The next step is to find employees. From the very beginning, you will need to hire at least 4 professionals - 3 designers, including the business owner himself, the manager. Accounting services will be outsourced. It is necessary to choose those who will be able to provide quality services in this area.

The fourth step will be the purchase of equipment. To ensure the activities of the company, it will be necessary to equip the office with the Internet, telephone, computers, professional software, and printers. If you use the entrepreneur's personal computer, you can save.

Organizational Plan

The company will work with10:00 to 19:00. Weekends will be Sunday and Monday. The work will be divided between 3 designers and a manager. The latter will be in contact with customers, maintain documents, and promote the studio.

Financial plan

The financial plan takes into account the income and expenses of the enterprise. The planning horizon in this case will be about three years. It is believed that after the expiration of this period, it will be necessary to expand the enterprise.

The financial plan includes an initial investment of 415,000 rubles. 53% of the funds raised will be spent on equipment, 5% on rent, 23% on working capital, 17% on promotion, and the rest will be written off as contingencies. The studio will be financed directly from the entrepreneur's pocket.

Fixed expenses include rent, marketing, salaries, other expenses. You will also need to pay taxes. Approximate monthly expenses will be 208,000 rubles.

Performance evaluation

The simplest indicators will tell you how efficient an enterprise is. The payback period will be approximately six months. Net profit every month is approximately 300,000 rubles.

For the year it will be about 2,000,000 rubles. This financial plan assumes an optimistic outlook.

The risks in this business plan include high competition, since there are a lot of similar enterprises in the market. There are already quite strong agencies that have recommendedthemselves as effective players. And it is unlikely that in the conditions of such competition it would be reasonable to reduce the cost of services. Rare customers will save on specialists from whom they expect excellent results. It will be possible to reduce risks due to the formation of a customer base, a trade offer and stimulation of customer loy alty.

The next risk is that purchasing power will decrease. Most likely, you will have to face it, since the services of designers are not essential goods. To reduce risks, it will be necessary to carry out actions.

Demand of this kind will also be unstable. With a high probability there will be long pauses between orders. Risk reduction is ensured by the formation of a reserve fund just for such cases.

There are also lawsuits from clients. If the studio makes a mistake, delays the implementation of the project, the client will most likely apply for legal proceedings, demand compensation for harm. The probability of such a risk is not too high, but it must be taken into account. If a lawsuit takes place, you will need to spend money on legal services.

The following risk is copyright infringement. For example, a photo from the portfolio of a design studio can be used by unauthorized persons. To prevent this, it will be necessary to provide watermarks on each photo posted on the site. It is important to actively form the competitive advantages of the company, to foresee the reserve fund in advance. To somewhat reduce the risks will allow focusing on the economy segment, in whichhas the widest target audience. This will ensure a greater flow of customers.