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How to Start an Interior Design Business

Are you passionate about design and have a keen eye for aesthetics? Starting an interior design business can be a fulfilling and profitable career path. Interior design is a booming industry that involves creating beautiful and functional spaces for clients. However, starting a business from scratch can be daunting. 

Where do you begin? What are the necessary steps to take? In this guide, we will provide you with a comprehensive overview of how to start an interior design business. From identifying your niche and developing a business plan to building your brand and marketing your services, we will equip you with the knowledge and tools needed to launch a successful interior design business.

Create Your Interior Design Business's Brand

As an interior designer, your brand is crucial to the success of your business. It should reflect your values, identity, and style, and be easily recognizable to potential clients. Your brand consists of several components, including your business name, domain, logo, website, and social media. 

It’s important to discover your niche, which will help you identify your unique talents and services that you can offer to your clients. Knowing your target audience will enable you to create a marketing strategy that reaches them effectively. When it comes to naming your business, simplicity is key. 

You may choose to use your own name with the words “Interior Design” added, or create a branded name for your business as you grow. Your logo should be simple, easy to read, and align with your style and niche. Your website is the first impression that potential clients will have of your business, so it should be quick, user-friendly, and showcase your work.

using a laptop

Finally, securing your social media accounts and filling out all profiles with detailed information is essential to promote your brand and connect with potential clients.

Plan and Prepare for Your Interior Design Business

Creating a business plan is a crucial step in starting your interior design business. It will provide a roadmap for turning your idea into a profitable business and is essential if you plan to seek funding from banks or investors. Your business plan will include details about your leadership team, legal structure, market analysis, and marketing strategy. 

It will also outline the specific services you’ll offer and financial projections for the next three years. If you’re new to entrepreneurship, using a business plan template or software can simplify the process. A critical part of your business plan is outlining your supply chain, customer base, and marketing efforts to generate excitement around your new interior design business and ensure long-term success.

Gain Some Experience

As an interior designer, it can be challenging to attract paying clients without having any case studies in your portfolio. Potential clients want to see your work before investing in your services. However, there’s a solution to this problem. You can start by taking on smaller projects for free, such as styling a friend’s or family member’s home. 

This will help you gain experience and build your portfolio with images that showcase your skills. The most critical aspect of these “experience projects” is to take high-quality photographs that reflect your brand and style. Once you have a few impressive case studies on your website, you can start marketing your services and attract paying clients.

built interior design

Remember, every project, no matter how small, is an opportunity to showcase your talents and build your business.

Register Your Interior Design Business and Get an EIN

Once you have decided to start an interior design business, the next step is to register your business. The process of registration varies in each state, and you’ll need to find out the specific requirements for your state. Some states offer online registration, while others require that you submit forms via mail. 

In most cases, you’ll be dealing with the secretary of state’s office or a small business branch of government. You’ll also need to register your business with the IRS and apply for an Employer Identification Number (EIN). 

Even if an EIN is not required for your business, there are several benefits of getting one, including simplifying the process of filing taxes, hiring employees, opening a business bank account, and obtaining credit reports. Applying for an EIN is a quick and easy process that can be done online.

Obtain All Necessary Licenses and Permits

Obtaining the appropriate business licenses and permits is an important step in starting your interior design business. The requirements for these permits and licenses can vary based on your location and the applicable government regulations. In addition to these permits, certain states have specific benchmarks for interior design licenses that must be met.

clothing design

To ensure that you are in compliance with all applicable regulations, it’s best to check with the Small Business Administration or your local chamber of commerce. You may also need to obtain a seller’s permit and sales tax license, and if you have employees, you’ll need to get a federal employer identification number for tax purposes. 

By taking the time to obtain the necessary licenses and permits, you can avoid legal and financial consequences down the line and set your business up for long-term success.

Open a Business Checking Account and Credit Card

As you move forward with starting your interior design business, it’s important to set up a business bank account and credit card. This will not only help you keep track of business finances, but it will also be essential for tax purposes and funding needs. 

While you may be tempted to use your personal bank account, it’s important to consider the specific needs of your business and choose a bank that offers features such as low minimum balance requirements and monthly fees, ample transaction allowances, and ATM access. 

Additionally, having a separate business credit card will help you keep track of expenses and establish business credit. If you’re just starting out, consider a credit card with a 0% introductory APR to purchase larger items for your business upfront without interest. However, be sure to pay off your balance by the end of the introductory period to avoid accruing high interest fees.

debit card

Explore Your Business Funding Alternatives

When starting an interior design business, it’s important to consider the financial needs of your business. As the saying goes, you need to spend money to make money. You’ll need to spend a significant amount of money on materials and supplies for each project, and payment may only come after the job is completed. 

Therefore, exploring your business loan options is a good idea to see what funding possibilities are available to you. You can consider startup loans, lines of credit, or invoice financing. It’s crucial to carefully consider what aspects of your business will require the funds, how much you’ll need, and have a plan in place for repayment. 

By taking these steps, you’ll be well on your way to securing the necessary funding to help your interior design business grow and succeed.

Specify Your Services

Interior designers have many services they can offer their clients beyond traditional interior design. These days, interior designers can offer services like e-design, product sourcing, renters room styling, and home staging. Traditional interior design is still the most common service and the highest valued, but it can be more difficult to acquire clients due to its high cost. 

Online interior design or e-design is on the rise in popularity, as it offers more affordable access to interior design services. Product sourcing is a popular service that can be varied in size and is ideal for clients who know the style they want but struggle to find suitable products.


Home staging is becoming increasingly popular among interior designers as it offers additional revenue to their business. Renters room styling is another untapped market that interior designers can benefit from, as it can be challenging to design within the restrictions of rental properties. 

Lastly, some interior designers may choose to hyper-focus on a specific room, such as a home office or bedroom, by combining other components like productivity-boosting or sleep-maximizing elements.

Outline Your Procedure

In the interior design business, creating a clear and detailed process is essential to ensure a smooth and successful project for both you and your client. This process should include both client-facing and behind-the-scenes processes. Client-facing processes cover the key points of your client’s experience, from initial inquiry to project completion. 

This process should be clear and include all communication points, contract signing, and product sourcing. Meanwhile, behind-the-scenes processes cover all aspects of running your business, including templates for new clients, contract templates, and invoice templates. Managing your finances is also essential, so keeping receipts and hiring an accountant for advice is recommended. 

Having a professional and detailed process will make you more valuable in the eyes of your clients, and ensure that your business runs smoothly and complies with business laws.

built interior design

Begin Your Black Book

In the world of interior design, having a network of contacts is essential. You can benefit from referrals from satisfied clients as well as sourcing the right products from trusted sources. Start building your little black book of contacts as soon as possible. Begin by listing your business relationships and make sure they meet your quality standards. 

Find local tradesmen and save their details, prices, etc. in your book or store it online to ensure you never lose it. Additionally, set up trade accounts with reputable companies and brands that you can recommend to your clients. This will provide you with exclusive discounts on products that you can offer to your clients. 

Start with filling out the forms of well-known brands like Amara, OKA, and Rockett St George, and save your login details for easy access. By building a reliable network of contacts and suppliers, you can ensure that your interior design business runs smoothly and delivers the best results for your clients.

Set Your Prices

Setting the right pricing strategy for your interior design business can be tricky but is a crucial step in ensuring your business is profitable. There are various pricing strategies available for interior designers, including hourly rates, flat fees, cost plus, and retail pricing. Hourly rates are the easiest method to charge and are suitable for new interior designers. However, setting the right price can be a challenge. 

Flat fees, on the other hand, offer clients a set price but can be risky for new designers who may underestimate their time and end up losing money. Cost plus is a common method of charging, but it lessens payment for the designer’s service and purely relies on product costs.

Investment officer in charge

Retail pricing works well for small projects and product sourcing, but it’s not particularly scalable. Consider the pros and cons of each method before deciding which pricing strategy works best for your business.

How Much Should You Charge?

One way to charge your clients is to use a combination of hourly rates and the retail approach. To set your hourly rate, you can follow a simple model. First, decide on how much you want to earn per year, then determine how many hours you are willing to work per week, and how many weeks off you would like to take each year. 

Using these numbers, you can calculate your hourly rate. For instance, if you want to earn $50,000 per year, work 40 hours per week, and take 4 weeks off, your hourly rate should be around $52 per hour. This formula does not consider the retail option, which means that this income is an extra bonus for you. 

With the retail approach, you can charge your clients the retail price of the items you purchase for them, and your fee is the difference between the cost you paid and the retail price.

What Payment Option Should You Use?

Interior designers have a few different payment methods available to them, but the two most common options are bank transfer and PayPal. Bank transfer is the preferred method for most interior designers as it is quick, easy, and comes with no fees. On the other hand, PayPal is becoming increasingly popular as it allows designers to accept card payments easily without needing a card machine or payment processor. 

However, PayPal does charge fees on payments, so it’s important to take this into account as it will result in additional expenses. Ultimately, the choice of payment method depends on the designer’s preferences and what their clients are comfortable with.

payment settlement

Find Your First Paying Client

Congratulations on setting up your interior design business. Now that you have established your website and branding, it’s time to start looking for your first paying client. One of the most effective ways to do this is to start with referrals from your friends and family. Ask them to share your website on their social media platforms and help spread the word about your business. 

You can even draft a post that they can easily copy and paste to share with their own networks. Additionally, don’t forget to be active on social media yourself and engage with potential clients. With a little persistence and effort, you’ll be able to secure your first paying client in no time.

Market Your Business Like It Depends on Your Life

If you’re a new interior designer looking to promote your business and attract paying clients, there are many effective ways to do so. Firstly, reach out to local journalists and announce the launch of your new business, this could get you some free coverage and continued local exposure. 

Secondly, learn the basics of SEO and make some tweaks to your website to drive continuous traffic and prospective clients. Thirdly, build an email list to keep your potential clients informed and connected with your business. Fourthly, ask your satisfied clients for referrals and add an incentive to encourage them to spread the word. 

Lastly, start a blog to showcase your expertise and knowledge, post regularly to keep your site updated and potentially grow your audience. These methods are not only effective for attracting clients in the short term but can also help protect your business for long-term success.


Starting an interior design business can be an exciting and rewarding endeavor for those with a passion for design and an entrepreneurial spirit. By following these essential steps such as registering your business, obtaining the necessary licenses and permits, setting up a business bank account, and exploring funding options, you can take your first steps towards building a successful interior design business. 

With dedication, creativity, and a strong business plan, you can turn your passion for design into a thriving business!

Charles McMillan
Charles McMillan
Charles is a family man, an entrepreneur, and a writer. He is skilled in finding the balance between efficiency, affordability, and high-quality offerings when it comes to business services. He’s on a continuing mission to discover and rediscover the most popular LLC services, while sharing his most accurate assessment and review to help business owners like himself.