The main aim of an interior design business is to create an aesthetically appealing interior environment for clients using furnishing, colors and others. According to a survey, there is a 30% increase in the number of people who are looking for an interior designer for their house and business spaces. With the increase in the scope of real estate in the country, there is a measurable scope for interior design business in the foreseeable future.
Opportunities in the market
A lot of people are interested in finding services which would help them to give a makeover to their business area or to make their house, aesthetically appealing. The type of clients can vary from commercial businessmen to individual clients. The purchasing power of the clients is very high in this market. The brand shifting is also easier since the entry to the market is partially restricted. It is a buyer determined market and thus, providing a competitive price is very essential.
Requirements for the business
You would need an eye-catching business place for starting up the company. It is better to opt for a place which already has documentations for conducting a service business. The space that you choose should have sufficient area to display samples and other items.
You can start up the business with minimum requirements. A computer with relevant software packages, chair and tables for small meetings, display showcases and internet connection are the basic requirements. You can also hire an assistant who would help you to organize your priorities and also attend to the clients.
In some states, you might need to have a certification to be a designer. If you are a decorator, your passion and experience would count. If you do not hold any certification, you can also join some course after you start the business.
Say, you lease or rent an office space for about 50,000 rupees. Using an AUTOCAD software or similar 3D representation software would alone cost up to 5 lakh. Providing samples and displays can cost an additional 1-2 lakhs. You need to provide sample booklets for free which would increase your capital. Special tools purchase can go up to five lakh. Salary to a support staff would range from 7,000 to 10,000 rupees per month.
The variable cost would include the electricity alone. With excellent skills, an interior designer can make 10,000 to 60,000 per client based on the project. If you have tie ups with other suppliers, you can make a better return on investment.
The location determines the maximum charge you can impose on your client. It is important to choose a commercial area where there are a lot of opportunities for new business ventures. On an average, you can expect 15% return within one to three years in the industry. Immediate return on investment is a rare occurrence in this business.
Profitability of the market
The market is ever blooming. You can always find clients through your blog, advertisements and other channels. Remember that the competition is very harsh in this industry and thus, you need to provide a competitive price and better output to keep your clients. The market lacks people who have technical skills in the business. This market is very much scattered. There are a lot of chances for rapid growth in this market without intense competition from small scale designers. But, you might need to lock horns with some big boys in the market. Developing a strategic alliance with carpenters, builders and with other local firms would increase the market base.
- Determine the size of your business. The capital and other factors depend on the size of the business.
- Charging per project might look profitable. But, if you want to have a continuous working capital flow, it is better to charge per hour.
- Get associated with high end real estate builders to get more clients.
- A website with pictures of your design is very essential for this business.
- It is a smart move to hire a person who has a formal degree in the field (if you do not) to induce professionalism in your business.
- Kerala is considered to be the most profitable state to start an interior design business as it is one of the fastest growing places and the per capita income is also high. Thus, the purchasing power of the customers would be high.
- Areas near airport and highways are the prime area of development. With the increase in the property prices in these areas, it becomes more profitable to start the business and break-even faster.
As stated before, it is a very slow revenue generating business till you mark your name in the market. Make sure to aim at breaking even as soon as possible. Attracting more customers is the main key here. Have an SEO driven website to attract corporate clients and high end customers.