Creating Your Successful Interior Design Business

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Creating your Successful Interior Design Business Amit V. Agrawal

Creating Your Successful Interior Design Business Preface For the first time, an expanded insight about Business in Interior Design Industry, Creating your Successful Interior Design Business is Amit Agrawal's classic guide for all the aspiring entrepreneurs and Interior Designer’s to launching and developing your Interior dream into the successful Interior business. In the Creating your Successful Interior Design Business, Amit Agrawal distils his decades of experience to provide definitive knowledge to aspiring entrepreneurs and Interior Designers who want to make it big in the Interior Industry. This book has been expanded to reflect the famous 5W and 1H of any interior business, focusing on the nitty-gritties of business development that to from scratch to stars. Today, Entrepreneurship is a vital source of change in all facets of society, empowering individuals to seek opportunity where others see unconquerable problems. For the past decade, many entrepreneurs have created great enterprises that subsequently led to improved productivity, increased prosperity, and a higher quality of life. Many books have been written to help educate others about entrepreneurship. But Creating your Successful Interior Design Business book stands out from the crowd because it thoroughly examines the real-time problems of establishing the business of Interior and supports each solution it with a reason. This book will show you how to effectively define your business tools and will also help to master the fundamental challenges that are faced in the process of building an Interior business. This book will help you make your Interior business dreams - a reality. 2

Creating Your Successful Interior Design Business About the Author Amit Agrawal began his career after his MBA at an early age in Nagpur, Maharashtra. With an inclination towards business, he started his first venture in the early 20s with almost no money. Amit moved to Pune, a city entirely new and strange to him, to learn a new course that could aid him in his business at Nagpur. Not knowing what the city had for him, turn of events made his temporary stay in Pune, a permanent one. One thing led to another, and Amit started his own educational institute, Times and Trends Academy – one of the country’s premier academies for vocational courses. He is currently Founder and Chairman of Times and Trends Academy, with 8 franchises across India, and several other business ventures under his kitty. With an experience of entrepreneurship and mentoring over 15 years, and dozens of awards won, Amit, as a seasoned entrepreneur has authored many books on different domains for budding entrepreneurs, students and any reader in general. 3

Creating Your Successful Interior Design Business Table of Contents 1. Chapter 1 : Interior Design and You a. Capture your inner quest for interior design b. Scope of Interior Design in India c. Design needs of the Indian Market d. Earning Opportunities – Numbers and Estimates e. Initial Investment for your own Business f. Develop the Entrepreneur in you 2. Chapter 2 : What makes an Interior Designer a. The Essentials of an Interior Designer b. Operating Space c. The Essentials of a Design Assistant’s Job d. Scouring Local Markets and Exhibitions e. The Scope of Interior Design in India f. The typical chores of an Interior Designer g. The mindset of a successful interior designer h. Home Design in detail i. Bedroom Design in detail 3. Chapter 3 : Location a. Getting Started b. Ideal Location c. Listing your competitors d. Assessing the various aspects of Running Business e. Putting together your finances 4. Chapter 4 : Drawing up your Business Plan a. How to draw up a realistic business plan b. The important segments of your business plan c. The Business Plan Outline d. Part I of your Business Plan – A report of your proposed business e. The category of Business Structure f. Your business offerings g. Your office space and location h. Part II of your Business plan - Marketing Strategy i. Understanding your clients j. Dealing with a Franchise k. Finalizing your Product Mix l. Advertising Strategy m. Pricing your Products and Services n. Part III of your Business plan - The Organization and Management Plan o. Part IV of your Business Plan – Financial Planning 4

Creating Your Successful Interior Design Business 5. Chapter 5 –Franchising a. What is a franchise? b. Selecting your franchise c. Getting In-depth details about the franchise d. How franchising works for you 6. Chapter 6 –Setting up your business a. Designing your corporate identity b. The premises c. The layout of your office d. Computer Software e. Sample books f. Government mandates 7. Chapter 7 – Maintaining your accounts a. How to plan your budget b. Cash flow c. Collecting your payments 8. Chapter 8 – Preparing your budget and operations management strategy a. Elements of your operations management strategy b. Staffing c. Hiring Vendors 9. Chapter 9 - Drawing Your Marketing Strategy a. Marketing Consultants/Media Agency b. Drawing up your own Marketing Strategy c. Ingredients of your marketing strategy d. Name e. Logo f. Visiting Cards g. Brochure h. Neighborhood Marketing i. Portfolio j. Website k. Direct Mail l. Vouchers m. Guerilla Marketing n. Advertising mix o. Networking p. Seminars q. Subject Matter Expert r. Relationship Marketing (Existing Customers) s. Customer Delight t. Public Relations 5

Creating Your Successful Interior Design Business 10. 11. 12. 13. 14. 15. 16. u. Testimonials v. Referrals w. Cause Marketing Chapter 10 - How to convert a sales lead a. Analyze the query and client b. Before you meet the client c. Charges for Consultation d. Taking Measures e. Costing f. Project quotation g. Working on retainer h. Making your proposal i. Selling add-ons j. Meeting the Client k. Signing the Contract Chapter 11: Get Going!!! a. Getting your advance b. The niceties of a successful designer c. Purchase orders and Suppliers d. How to keep track of your purchase order e. Coordination f. Post Installation Chapter 12: Trends a. Trends in Colors b. Outdoor designs c. Walls d. Kitchens e. Faux Painting f. Upscale old age home or residential complexes for the aged Chapter 13: Eco Friendly Designs a. The use of ecofriendly designs b. Some pointers to consider while implementing ecofriendly designs c. Use of naturally occurring resources d. Researching Green Designs e. Implementing Ecofriendly designs Chapter 14: How to pass on your business a. Drawing up your selling strategy b. Passing on your business to a legal heir/family/employee c. As you bid “adieu” Modules Case Studies 6

Creating Your Successful Interior Design Business Chapter 1 - Interior Design and You Capture your inner quest for interior design What drives you towards interior design – you see color and structure potential in every empty space. Home décor is always on your mind. People in your inner circle never repaint or redo their homes without first consulting you. You watch shows like “When you were out” and do up the given space in themes and colors different from the show. You walk through more home improvement stores than you care to remember – well, then your inner quest is for interior design. To hone your skills for design its best to explore the many global design styles. Pin down one that is closest to your design sense and build from thereon. You could create new pieces, restructure antiques, or integrate styles to create contemporary pieces and designs. Read read and read – skim through designs books or gaze endlessly at structures and pieces from the Renaissance. Share and seek information through the internet. Identify your favorite designer and become his Eklavya – study his works and recreate. Or work with an established designer, or design house and very soon get started with your very own, highly successful, interior design business. Initially, you may devise your own style but you may have to cater to clients who have design needs different from yours’. You will have to decide if you want to be known as a designer who delivers as per client’s design needs or a designer who has an innate and signature design standard. It may also happen that while delivering to client’s needs you may come across styles that have universal appeal and then that becomes your signature style. And for that signature style, people will seek you out and hire you on your terms. Scope of Interior Design in India Traditionally, the higher income group in India always uses interior designers for their lavish apartments, row houses or bungalows. However, with an economic boost in the IT and Telecom Industries in India, many professionals seek the services of interior designers while renovating their homes. The interior design business and employment opportunities in this sector have grown manifold. The estimated growth in this sector was approximately 60 per cent in the year 2008. This growth rate also reflects the needs of the hospitality industry and the corporate sectors that are forever renewing their premises on a regular basis. The growing trend of home offices and small business units in India too is an immense opportunity for designers. Studio apartments, service apartments, and compact spaces that look professional and cozy at the same time are a challenge for passionate interior designers. The requirement for a formal degree in interior design is imperative if you wish to work in the corporate sector, or even with a professional design house. If you wish to follow a career in home décor a degree 7

Creating Your Successful Interior Design Business may not be that mandatory, however, most professionals seek designers who have passed out of reputed design academies. Along with formal knowledge, to be a successful designer you must also possess an artistic sense for interior design and insight to be able to judge the design needs of your clients. Design needs of the Indian Market Some of the changing design needs of the Indian Market can be encapsulated by the following: Compact studio apartments Aesthetic, theme based interiors Luxurious bathrooms, with Jacuzzis or bath tubs Terrace spaces that are remodeled to include barbeques, bars, patio furniture Homes that are entirely done up in washable, customized wallpaper Eco friendly homes that include equipment like solar lightening, solar heating, green spaces Small spaces remodeled to meet the needs of big families Large spaces reinvented for maximum use Home offices, work centers, study spaces that keep out noise and pollution Modern kitchens with trendy, state of the art equipment Home theatre rooms Family rooms Game rooms Home Gyms Earning Opportunities – Numbers and Estimates Interior design professionals, business owners or employees, earnings, differ depending on the kind of work they take up and also on the quantum of work. Earning opportunities could be from mere basic salaries and could run up to five or even six figures. Here are some numbers and estimates of the financial potential of interior design business Turnover Less Than 2,50,00,000 Between 2,50,00,000 & 4,99,50,000 Between 5,00,00,000 & 25,00,00,000 25,00,00,000 Companies (%) 50 17 17 16 (Based on a sample of 200 studios surveyed) Initial Investment for your own Business There are a number of modules and even software available that will help you identify, and eventually calculate the costs of starting up your own business. Such costs should ideally be estimated on a 8

Creating Your Successful Interior Design Business monthly cycle. Estimates will be accurate if you can get the counsel of an interior designer already in the business or someone who knows the ins and outs of the industry. Here’s a list of estimated expenses: Initial Investment Estimates 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Property Rent/Acquisition Lease Fixtures Equipment Furniture Startup Inventory Licenses Advertising and Promotion Accounts Receivable Cash Reserve/ Operating Capital Monthly Expenditure Estimates 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Salaries of Upper Level Managers Salaries of other personnel Loan Interest Taxes Insurance Advertising Expenses Delivery Charges a. Transport b. Hired help c. Octroi d. Other Taxes Inventory Telephone Electricity Utilities Petrol and Car Maintenance Legal Fees Leases Petty Cash Miscellaneous While planning out your expenditure it is also important to plan for the following: 9

Creating Your Successful Interior Design Business a. Additional set up costs could crop up even after your business is in place. b. Some amounts are required to be calculated on pro rata basis. c. Along with credit cards, bank cheques and drafts, you will also need some amount of cash for the initial purchase. d. Some suppliers will require deposits from you e. It is key to get all the permissions and licenses before you actually start operating, even if you are working from home. f. You must get your own registration and eventually a website. g. Give a good amount to the initial advertising costs which should include logo creation, letter heads, visiting cards, banners, promotion costs and so on. h. Get a lawyer and get him to check all your legal, lease, rent, acquisition documents. i. Get your business insured. j. In a situation where you are obtaining a franchise, plan for those expenses. k. Initially, you may not get credit in the market, so plan for cash, cheques payments in such cases. l. Maintain a contingency fund for the first year or so to keep you afloat. Develop the Entrepreneur in you After you have drawn up the estimate costs of starting your own interior design business; you must concentrate on your own skills as an entrepreneur. Like any startup in any industry, it’s going to take twice the amount of time, money, efforts, and risks. You will need a group of supportive business associates, friends and above all family. You also need to take account of skill set and hone your skills as an interior designer and a budding entrepreneur. You will have to in the initial stages; understand what tasks you want to take up personally and those that you want to delegate. What makes a good entrepreneur? 1. 2. 3. 4. 5. Money management – Good Entrepreneurs are excellent in managing money. They are always on the lookout to cut costs (not corners), get bargains and deals, collect payments from clients, collaborating deals with vendors and suppliers and the lot. Competition – A good entrepreneur is extremely competitive, be it business, sports, exams, or other competitions. He may be good at multi-tasking and even work as a mere paint contractor if he really wants the assignment. Focus – Good Entrepreneurs are usually people who work with tremendous focus and operate as loners rather than belonging to a group. They may initially seek work as consultants or collaborative designers rather than working with an organization. Self-Control – A good entrepreneur will have a huge amount of self-discipline. Starting a project from scratch and seeing it pan out to a complete picture; you will need all the self-discipline you can sum up as you will be dealing with people, with artists and workers who don’t share your creative vision or your time schedule. Realistic – A good entrepreneur is realistic in that he is flexible enough to see an opportunity for success and change course accordingly, and stop something when he can see it’s not working. 10

Creating Your Successful Interior Design Business 6. Abstract Logic – A good entrepreneur can see a situation how it ought to be and can weed out problems and solve complex situations as and when they arise. 7. Leader – A good entrepreneur is a natural born leader who can group, regroup, inspire, lead and carry along people as he does so. 8. Communication – Good entrepreneurs are excellent at interpersonal skills. They are emotionally stable and great at handling stressful people and situations. They work well within groups and also are great at delegation. 9. Creative – Above all, entrepreneurs are highly creative people, who are continuous learners. Qualities of a Successful Interior Designer Here’s a quick checklist of qualities of successful designers that you will have to identify within you and hone these skills – 1. Self-Starter –An independent thinker who doesn’t wait to be assigned tasks. 2. Sociable – Living, breathing, thinking, working, and enjoying yourself amongst people who are like minded or not. You will be dealing with people from all ranks of life suppliers, workers, clients, legal authorities and the like. 3. Organized – In your thoughts, works, and plans. You will be running a number of tasks at the same time. 4. Trendy – You will have to keep up with global and Indian trends not only in the realms of interior design but also fashion, art, cinema and music. 5. Computer literate – Everything about your business, be it presentations to clients, accounting, sales etc. can be managed efficiently with computer skills. 6. Multi-tasking – You will have to manage tasks, people, funds, supplies, and other things simultaneously. 7. Salesman– You have to be a very good salesperson is you want to be an interior designer. Understanding your client’s needs, convincing them, they need what you have to offer, and other such job requirements need good salesmanship and presentation abilities. 8. Confident – You need to be confident of your talent and your business potential. When you are confident, clients will have confidence in your work. 9. Problem solving – Dealing with unforeseen issues and solving them is crucial to any design business. You have to be prepared for eventualities that are definitely going to crop up at any stage in your design or delivery process. 10. Accounting – You have to at least have a basic knowledge of accounting and be good at math’s, measuring, estimating costs and so on. 11. Healthy – Really important when you are starting up your business. Long hours of work, travelling, carrying supplies etc. needs a lot of energy. In the table below are some good pointers where you can rate yourself as the – The Good, The Bad and The Ugly and move forward therewith. 11

Creating Your Successful Interior Design Business Resolving Conflicts Diligent Meeting Deadlines Maintaining Budgets Self-Starter Creative Trouble-Shooter Goal Oriented Perseverant Mathematically Sound Organized Planning Focused Accounting Communication Giving Instructions Listener Patient Self-Control Firm but Polite Friendly People oriented People pleaser Network Point Positive Genial Host The Good The Bad The Ugly *** *** *** 12

Creating Your Successful Interior Design Business Chapter 2 – What makes an Interior Designer? In India, interior designers need certain licenses. These licenses qualify a designer to take up certain assignments that require government approval and permits. For these licenses, designers need to have some educational qualifications, diplomas, and certificates. In the absence of qualifications designers may be restricted from getting permission for certain tasks. Interior Designers could also join professional groups or forums, across India. The Essentials of an Interior Designer There are certain aspects of the design business that differentiate an interior designer from an interior decorator. The knowledge of building policies, fire codes, generator links etc., are required for an interior designer rather than a decorator. Therefore, interior designers may be required to have college education or post graduate degrees. Designers and decorators undertake similar tasks. However, the scope of a designer's work has a larger spectrum than a decorator. For instance, an interior designer can take up assignments that include changes in the architecture of a certain space, rebuild ceiling options, and build permanent fixtures or furniture. With a degree or diploma, designers have the option of working on residential as well as commercial premises like office space, restaurants, hospitals etc., Designers should have a ready handbook of codes and policies while they conduct surveys and start planning the project. These codes should reflect safety measures, standard procedures related to fire prevention and so on. Along with architectural planning or changes, designers also remodel decorate, or renovate rooms. These tasks include artistic or thematic planning of furnishings, wall paper, furniture, art décor pieces and the like. Designers also model interior spaces of homes, offices, lobbies, lounges, and clubs. For such projects, interior designers need to closely collaborate with the property owners to bring out their expression in the new designs. In such cases, designers including start-ups, manage the entire process, from meeting with prospective clients, researching the appropriate products, designing to choose fabrics, wall paper, accessories, floor panels, grills, panes, and color for the walls. Drawing up estimates, providing samples, sourcing suppliers, hiring suppliers, and streamlining the installation are a significant part of the designer’s tasks. Before you even begin to choose your favored design institute, you need to first determine if you want to work independently, considering all the risks and profits, or you want to work on a limited salary for corporate with a limited amount of risk, and a fixed income. Along with a degree or a diploma, a designer also needs to hone his artistic sense for, in many cases, they have to help clients decide on designs and themes. Designers can also collaborate with wedding planners or event managers. Here designers have a better scope of practicing their artistic sense and delving in new themes. 13

Creating Your Successful Interior Design Business To sum up the essentials of an interior designer are to be creative, have ingenuity, a degree from a reputed design institute, knowledge of policies and licenses, be good at math’s, be a great manager, a great sales person, and good at abstract reasoning and design. Operating Space Starting your own design business also means putting in long hours of work and making many sacrifices. Considering this, many designers choose to operate from home, where they create design studios while others may lease out small offices spaces. Wherever you may choose to operate from, professionalism in presentation is key. With the use of information technology designers can work from anywhere, but what works for new startups is probably operating from a home studio, and meeting clients at their properties. The designer can show the samples of furnishings, wallpaper etc., at the shops that sell them and keep an extensive stock of sample books, magazines and the like. The two aspects of interior designer are commercial and residential. Designers can evolve themselves in one particular area of design or provide services to both. A better option is to evolve in one particular area and be known for it. For instance, you could be a designer who creates marvels out of interior spaces in hotels, or offices, or salons. You could also consider your inner calling and build from thereon. If you are passionate about creating themes for offices, you could focus only on that. Alternatively, if you first wish to provide services only to locals, you could research building projects close by and provide services to those builders. For instance, if there is good scope for service apartments in your city, then you could concentrate and begin to specialize in that. The Essentials of a Design Assistant’s Job As a design assistant, your job would be to help your designer in all decoration and design projects. You may be required to help in designing some parts of the project or the entire project. Designers often collaborate with their assistants while planning and processing designs. This makes the designs eclectic. The role of assistant designers is key for the success of any design studio. Even if you are opting to become a design assistant you will have to procure some sort of diploma or education in interior design. Additionally it will help if you have basic knowledge of fabrics, paints, floor options and so on. The design assistant also undertakes tasks like measuring, ordering, etc., all within a preapproved budget. Sometimes design assistants are required to speak to clients and get information on their design ideas, through albums of their ancestral homes, visit places of inspiration and alike. Design assistants are also required to take decisions on product options which may be a little too technical for the client to understand and decide. For instance if a client wishes to install a wooden floor, then it is the design assistants job to choose the panel options, keeping in mind the client’s lifestyle and needs. One fine essential of a design assistant’s job is picking out accessories, bedding, etc. keeping in mind the central theme. They have to work closely with the client and get the exact shades, textures, shapes that the client prefers. Here, they have to know their local markets well enough. 14

Creating Your Successful Interior Design Business As a design assistant you need to carry a toolkit of sorts which includes: 1. 2. 3. 4. 5. 6. Color wheels Style wheels Measurement tools Estimation tools Drafting Templates Presentation software To sum up the essentials of a design assistant’s job are to help clients sort through the nitty-gritties of design options like floor options, wall color, wall paper, furniture pieces, furnishings, window coverings, bedding and accessories all within the client’s budget and quality needs. Scouring Local Markets and Exhibitions Most cities in India have local and specialized markets where products unique to that area are manufactured and made available. As a designer, you need to be aware of such places and have good contacts with such vendors. Also, it is important for designers to regularly visit such markets and other suppliers to keep up with changing trends. In India, there are a number of seminars, exhibitions, and consumer utsavs where innovative products are introduced and sold. These gatherings are an ideal spot for designers to gather information, collect samples, and make contacts. Designers even stock up on certain goods as good discounts are available in these gatherings. Moreover, some vendors provide free samples in terms of fabric, furniture, fixtures, and art pieces so that the designer can display them in their store, and order them when required by clients. Vendors give you good offers as they want to make the most of the exhibition. The Scope of Interior Design in India There is immense scope for Interior Designers in India, in various fields. There are some design basics that an interior designer needs to be aware of. The designer may then have to develop his own processes to deal with each of them in a distinct manner. Here are some of the fields a designer can look forward to providing their services. Office Spaces In India, offices are scattered all over cities, metros, and districts. Each industry, each state, has its own specific theme requirements. Designers can work across the board to cater to these markets. All office space needs lobbies, receptions, work cubicles, cabins, larger offices, pantries, cafeterias, conference rooms, lounges for top management, recreation areas, seminar rooms, and so on. These spaces ideally need to have the top of the line electronic, audiovisual, and leisure equipment. An interior designer needs to keep up with innovative products and brands while designing office spaces. Eco-friendly Offices & Homes There are a rising number of people who are now opting for eco-friendly homes and offices. These designs include incorporating solar energy equipment in existing spaces or installing an entire network 15

Creating Your Successful Interior Design Business in a new construction. Here, it is important for the designer to understand how the client proposes to use the space. Clubs & Resorts Clubs and resorts are the ideal getaway for most families in India. These spaces need to have designated areas for rest & relaxation, playing, swimming, gyms, conference rooms, lawns, and so on. Clubs and resorts in India also double up as wedding and party halls. Most resorts in jungle areas also provide overnight camping facilities. Here designers have to keep in mind the safety needs of the customers. Service & Studio Apartments Along with the traditional housing colony system there is now a demand for service and studio apartments where smaller families or bachelors can be comfortable and make maximum use of space. Luxurious fittings, more open spaces, built in closets, compact but state-of-the-art kitchens and bathrooms are a few more needs of modern families along with, the traditional living room, bedroom combo, that help the designers to create comfortable and trendy living, eating, sleeping, working etc. Children’s Rooms This new trend is a great challenge and opportunity for designers. A right mix of colors and shapes in a child’s room can, in fact, give a boost to their mental and emotional development.Some research in this aspect would be to find out the child’s temperament and the family’s lifestyle. Designing a child’s room which is energetic, lively, yet not distracting is quite an opportunity for any creative designer. Old-age homes There is now a trend to build old age residential home that are upscale. Designing living space for senior citizens requires considering their physical capabilities, providing for living space for helpers, designing small kitchenettes within the apartments, creating recreational areas, libraries, community halls and so on. Hospitals To design hospitals certain specialization is required. Most hospitals have designated areas li

4. Chapter 4 : Drawing up your Business Plan a. How to draw up a realistic business plan b. The important segments of your business plan c. The Business Plan Outline d. Part I of your Business Plan - A report of your proposed business e. The category of Business Structure f. Your business offerings g. Your office space and location h.

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