Starting a decorating business is a rewarding venture that combines your creative flair and eye for design with smart business sense. The interior design market is a multi-billion dollar industry, with steady demand for professional decorating services in homes, offices, and retail spaces.
This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary licenses, and building supplier relationships to help you launch a successful decorating business in the U.S.
Step 1: Plan your business and validate your idea
Understand the market and your competition
Start by talking to people on the ground. Chat with local real estate agents and property managers to learn what homeowners and renters look for. You can also review industry reports from sources like the American Society of Interior Designers (ASID) for broader market trends.
Use platforms like Houzz and Instagram to see what other decorators in your area offer. A frequent oversight is to only analyze high-end designers. You should also study competitors who target a similar budget to get a realistic view of the market and find your unique angle.
Estimate your startup costs
Your initial investment will vary. You might want to budget for business licenses ($300-$800) and general liability insurance (around $400-$700 annually). Digital assets like a website and design software can add another $250-$800 to your initial setup costs.
With these figures in mind, a lean launch can start with around $1,500. A more robust start with professional branding might require closer to $5,000. Planning for these initial expenses helps ensure a smooth launch without early financial strain.
Here are 3 immediate steps to take:
- Talk to a local real estate agent about what their clients request most often.
- List five local competitors from Houzz and note their primary services and styles.
- Create a simple startup budget based on the cost estimates above.
Step 2: Set up your legal structure and get licensed
Choose your business structure
You might want to form a Limited Liability Company (LLC). It protects your personal assets if the business faces a lawsuit. Many decorators start here because it offers a good balance of protection and simplicity.
A sole proprietorship is simpler but leaves your personal finances exposed. An LLC costs between $50 and $500 to set up, depending on your state. You can file the paperwork yourself through your state's website.
Secure your licenses and permits
First, get a free Employer Identification Number (EIN) from the IRS website. You need this for taxes and to open a business bank account. The process takes just a few minutes online.
Next, check with your state's Secretary of State for business registration. You may also need a seller's permit from your state's tax agency. This lets you buy wholesale goods and avoid sales tax. Local requirements usually involve a city business license, which can cost $50 to $100 annually.
Here are 4 immediate steps to take:
- Decide between an LLC and a sole proprietorship for your business.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Visit your state's Secretary of State website to review business registration forms.
- Contact your city clerk’s office to ask about a local business license.
Step 3: Protect your business with the right insurance
Start with general liability insurance. This covers you if you accidentally damage a client's property or if someone gets injured. Aim for at least $1 million in coverage, which typically costs between $400 and $700 annually.
Next, consider professional liability insurance, also known as errors and omissions. It protects you if a client claims your design advice caused a financial loss. A $500,000 policy might run from $500 to $1,000 per year.
If you use your vehicle for client visits or to transport goods, you will need a commercial auto policy. A common misstep is to rely on personal auto insurance, which often denies claims for business-related accidents. Also, if you hire anyone, you must have workers' compensation insurance.
When you look for policies, check out providers like Hiscox, The Hartford, and Next Insurance. They offer packages tailored to small creative businesses and understand the specific risks involved, from damaging an heirloom to measurement errors.
Here are 4 immediate steps to take:
- Get a quote for a $1 million general liability policy.
- Research professional liability insurance for decorators.
- Review your personal auto policy for business use exclusions.
- Contact a provider like Hiscox to discuss a business owner's policy.
Step 4: Set up your workspace and get equipped
Find your base of operations
A home office is a practical start for a decorating business. First, check your local zoning laws for "home occupation" permits to operate legally. You only need about 100-150 square feet for a desk and storage. A frequent misstep is not having a plan for client meetings.
Gather your design kit
With your space sorted, you can assemble your professional kit. A quality laser measure ($50-$150) is a solid first purchase. Also, get professional paint swatch decks from brands like Sherwin-Williams. For software, you might explore platforms like Ivy or MyDoma Studio, which run about $50-$70 per month.
Build supplier relationships
Next, set up trade accounts with retailers like Pottery Barn or West Elm to get a 15-20% discount. You will need your EIN and business license to apply. Unlike wholesale suppliers with minimum orders, these programs let you buy single items, which is perfect when you start.
Here are 4 immediate steps to take:
- Review your city’s website for home-based business permit rules.
- Purchase a quality laser measure and a professional paint fan deck.
- Sign up for a free trial of a design software like Ivy or MyDoma Studio.
- Apply for a trade account with one major retailer like West Elm.
Step 5: Set up your payment processing
Establish clear payment terms from the start. A common structure is a 50% deposit to begin work and the final 50% upon project completion. This secures your time and covers initial material costs. Put these terms in your client agreement.
When you choose a payment solution, look for low transaction fees and mobile capability. Many decorators make a mistake by not having a way to accept payments on-site. This can delay getting paid after a successful client meeting or project reveal.
For a decorating business that needs to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and you are done.
At just 1.99% per transaction with no hidden costs or extra hardware, it is useful for collecting deposits during consultations. While other providers often charge 2.5% to 3.5%, JIM's rate helps you keep more of your earnings.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers.
Here are 3 immediate steps to take:
- Outline your payment terms, including the deposit percentage.
- Download the JIM app to see how it works on your phone.
- Compare JIM's 1.99% transaction fee to one other payment processor.
Step 6: Fund your business and manage finances
Secure your funding
Many decorators start by using personal savings. If you need external funds, a business credit card is a good first step. Look for cards with a 0% introductory APR for 12-18 months. This can give you access to $5,000-$10,000 without immediate interest payments.
You might also explore an SBA Microloan. These government-backed loans range from $500 to $50,000 and often have more flexible qualification terms than traditional bank loans. Interest rates typically fall between 8% and 13%. Grants, like the Amber Grant for women, are another option, though they are highly competitive.
Plan your financial runway
A frequent misstep is mixing personal and business finances. Open a dedicated business checking account as soon as you have your EIN. This not only simplifies bookkeeping but also reinforces the legal separation provided by an LLC, protecting your personal assets.
You will need enough working capital to cover your first six months. Budget for around $3,000 to $5,000. This should cover your insurance, software subscriptions, and marketing costs before you have a steady stream of client payments. Track every dollar from day one with a spreadsheet or software like QuickBooks Self-Employed.
Here are 4 immediate steps to take:
- Open a dedicated business checking account.
- Apply for a business credit card with a 0% introductory APR.
- Research one SBA-approved microlender in your area.
- Create a six-month operating budget to estimate your working capital needs.
Step 7: Build your team and streamline operations
Hire your first team members
You will likely start as a one-person show, but you cannot scale if you do everything yourself. A frequent misstep is waiting too long to get help. Once you spend over 10 hours a week on admin tasks, it is time to consider hiring a part-time Design Assistant.
This person can handle sourcing, scheduling, and client updates for about $20-$25 per hour. While formal certifications are not always required for this role, look for someone with a strong portfolio. For specialized tasks, use contractors for bookkeeping or installations.
Streamline your project management
With more projects and people, you need a system to keep things organized. Software like MyDoma Studio or Ivy helps manage everything from mood boards to invoices. These platforms centralize client communication and project timelines, which prevents costly errors and missed deadlines.
As a general benchmark, once your business generates $80,000-$100,000 in annual revenue, hiring an assistant becomes a smart investment. This frees you up to focus on high-value design work and landing new clients, which directly fuels further growth and profitability.
Here are 4 immediate steps to take:
- Draft a job description for a part-time Design Assistant.
- Research freelance bookkeepers on a platform like Upwork.
- Compare the project management features of MyDoma Studio and Ivy.
- Set a revenue goal, like $80,000, for hiring your first assistant.
Step 8: Market your business and find clients
Build your online portfolio
Your digital storefront starts with a portfolio. Use platforms like Houzz or Squarespace to showcase 5-10 high-quality images of your work. Many new decorators make the mistake of using poor phone photos. Your images must look professional to attract clients.
Once your portfolio is ready, focus on visual social media like Instagram and Pinterest. "Before and after" posts perform very well. Aim to post three to four times per week to build an audience and show your expertise.
Forge local partnerships
You can also find clients through local connections. Reach out to real estate agents, contractors, and boutique furniture stores. Offer a 5-10% referral fee for any client they send your way. This gives them a reason to recommend you.
As you market your business, track your spending. If you spend $500 on ads and get two clients, your Customer Acquisition Cost (CAC) is $250. This number helps you decide where to put your marketing dollars for the best return.
Here are 4 immediate steps to take:
- Create a portfolio on Houzz with at least five project images.
- Identify three local real estate agents to connect with.
- Post one "before and after" project on your Instagram account.
- Calculate a target Customer Acquisition Cost for your first quarter.
Step 9: Price your services and set profit goals
Define your pricing model
You can price your services in a few ways. An hourly rate, typically $75-$200, works well for initial consultations or smaller tasks. For full projects, a flat fee per room, like $2,500-$5,000, gives clients clarity and a fixed budget to expect.
Another common approach is the cost-plus model for sourcing goods. You charge clients the wholesale price plus a 20-35% markup. A frequent mistake is to only charge this markup and forget to bill separately for your design and sourcing time. Your time is valuable.
You might also consider a hybrid model. For example, you could charge a flat design fee upfront and then use the cost-plus model for all furniture and decor purchases. This structure ensures you are compensated for both your creative work and your procurement services.
With your model chosen, you can set your rates. Research what other decorators in your area charge on sites like Houzz. Do not just copy them; analyze their portfolio quality and experience level against your own. Aim for a net profit margin of 15-25% after all business expenses.
Here are 4 immediate steps to take:
- Research the hourly rates and project fees of three local decorators.
- Decide on a flat-fee price for a sample living room project.
- Set your standard markup percentage for furniture and decor.
- Draft a pricing section for your client agreement that outlines your chosen model.
Step 10: Scale your business and maintain quality
Set your quality benchmarks
To maintain quality as you grow, you need a way to measure it. You can use a simple client satisfaction survey after each project and aim for a score of 90% or higher. This data shows you what works and where you can improve.
You might also consider a certification like the Certified Interior Decorator (C.I.D.). While not required, it adds professional credibility. A frequent oversight is to rely only on intuition instead of a formal feedback process, which can hide recurring issues.
Know when to expand
Growth should be strategic. Once you are consistently booked two to three months in advance, it is a strong signal to scale. This is also a good time to revisit the $80,000-$100,000 revenue mark to hire your first design assistant.
If you juggle more than five large projects at once, you might want to think about a small studio space. This move can professionalize your client meetings and give your team a dedicated place to collaborate away from your home office.
Use software to manage a larger team
As your team grows, the project management software you started with becomes even more valuable. Platforms like MyDoma Studio or Ivy have features for team collaboration. They ensure everyone follows the same process, which maintains consistency for clients.
Here are 4 immediate steps to take:
- Create a 3-question client satisfaction survey to send after projects.
- Research the requirements for the Certified Interior Decorator (C.I.D.) credential.
- Set a specific booking threshold, like being booked 8 weeks out, as your trigger to hire.
- Explore the team management features in a platform like MyDoma Studio.
You now have a roadmap to launch your decorating business. Remember, your unique design eye is your biggest asset, so let it guide your first projects. With a solid plan in place, you are ready to turn your creative passion into a successful venture.
As you secure those first clients, make sure getting paid is just as seamless. JIM lets you accept payments right on your smartphone for a flat 1.99% fee, no extra hardware needed. You can Download JIM and be ready for your first deposit.
