How to start an interior design business

Why consider starting an interior design business?

As we’re sure you’re aware, most homeowners are always looking to improve the interior of their property. But interior design isn’t always simple, which is why the skills of experienced interior designers are always in need.

Demand for interior design has only been rising in recent years, with homeowners spending more than ever before. As such, there’s no better time to go self-employed and start an interior design business.

But if you’ve never operated your own business before, you might not know where to begin. But don’t worry, that’s why we’ve pulled together this guide.

From training and insurance to marketing strategies, we’ll tell you everything you need to know for how to start an interior design business.

Creating an interior design business plan

As with any new business, one of the first things to do is create a business plan. A clear business plan is essential for you to understand the goals and direction of your company for the future.

Without one, things are going to be that much trickier to navigate. That’s why we suggest considering all of the following areas when putting your business plan together:

• Goals – what are the aims of your business and how do you plan to meet your goals?
• Startup costs – what sort of funding are you going to seek to get your business started?
• Finances – how do you plan to monitor and track your finances; will it be done by you or an accountant?
• Services – what sorts of interior design jobs will you be offering your customers?
• Target audiences – who is your intended customer base?
• Prices – how much will you be charging for different service areas and jobs?
• Work area – how far out do you plan to work before fuel costs and travel time become too much?
• Marketing – how do you plan to market your business to your chosen audience?
• Work hours – how many hours a week do you plan on working and will you be working weekends?

Take your time thinking about all of these factors so you can build a concrete strategy for your new business.

Of course, if you want help to do this, you can download our business plan template below. And don’t forget to read our guide on business plan writing as well.

Interior design qualifications

When setting up your own interior design business, it’s essential that you have the right qualifications.

Qualifications show that you not only know what you’re talking about but that you’re a trustworthy tradesperson. And with interior design, that’s very important.

Colours, space arrangements, fabrics, and architecture, all of these are major parts of the job. So, you’ll need a portfolio of work to prove to customers you’re competent.

That’s why we recommend finding courses in the following areas:

• Level 3 Diploma in Interior Design or Art and Design
• Furniture Design Technician advanced apprenticeship

With these under your belt, you can be sure that you have the skills to succeed in this industry.

What qualities are required to start an interior design business?

As a self-employed interior designer, you’ll face a range of different challenges. Some are unique to the sector, while others are more general skills you’ll need to acquire.

Think about building on all of the following when setting up your own interior design business:

• Solid design skills – design skills are vital for creating convincing interior plans for clients
• Knowledge of recent trends – knowledge of recent and current trends will help you meet client needs
• Attention to detail – you must be able to pay close attention to detail for precise design measurements and colour harmony when working
• Openness – you need to be willing to accept criticism from clients so you can take their thoughts on board and make design tweaks
• Technical skills – technical understanding is important for using CAD software with confidence when modelling designs
• Mathematical skills – you’ll need numeracy skills not just for design measurements, but also for managing your business finances
• Excellent customer service – be sure to maintain a high standard of customer service to leave customers happy with your service and encourage recommendations

These are just some of the soft skills to consider when you start an interior design business. You can find more about these in our article on becoming your own boss.

How to start your interior design business properly

With the basics of starting your business covered, it’s time to get more detailed. Below are four key areas to look at when starting an interior design business. And all of these are essential if you want your business to be successful:

1. Register your business

First, you need to register your business with HMRC for tax purposes. A legal requirement, this step is also important for defining your business as a sole trader or a limited company.

Be sure to put consideration into this area as both forms of business come with different taxes and regulations. These in turn will affect the structure of your business.

So, take time to weigh up the pros and cons of each before making a decision.

2. Get business insurance

To make sure your business is covered financially in case of an accident, you need business insurance. For a breakdown of what to consider, we recommend reading our tradesperson insurance guide.

3. Accounting and bookkeeping

Organisation is essential when running any business, especially when it comes to tracking your income. You can handle this yourself, or you might want to hire an accountant.

Be sure to read our small business accounts blog for help in deciding.

4. Interior design tools and equipment

In order to provide great service, you’ll need a full inventory of top-quality tools. Not only does this make your life easier, but customers will more likely come away satisfied with your work.

While there will always be bespoke jobs that require specialist equipment, here are the essentials for any interior design business:

• Computer-aided-design (CAD) software
• Drawing tools including pencils, rulers, compasses, protractors, T-squares and graph paper
• Colour wheel
• Paint chips
• Fabric samples
• Measuring tape
• Digital camera
• A mortar stand

Besides these tools, you’ll also need vehicle transportation for your gear and materials. Why not read our article on van lease deals for help in this area?

And don’t forget that Checkatrade members get a discount on any tools they buy from our partners!

Interior design business FAQs

How much does it cost to start an interior design business?

Because every new business is different, it’s difficult to give an exact start-up cost figure. Costs will vary depending on what equipment you already have and whether you’ll be setting up a studio for clients.

So, be sure to do your research before purchasing anything.

Is an interior design business profitable?

Interior design is experiencing rising demand, so you’re likely to benefit from a steady stream of revenue. It also has low overheads to begin with, especially if you’re working on your own.

This means you can take home more of what you earn.

What’s an interior design business owner’s salary?

The average salary for interior designers is anywhere between £23,000 and £45,000 a year. However, the best agencies often earn far more than this. If you find a niche, develop a strong portfolio, and deliver quality work, you’ll earn plenty.