Home Decor Business Plan
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Below is a template to help you create each section of your Home Decor business plan.
Executive Summary
Business Overview
Urban Harmony Home Decor is a startup home decor company located in Los Angeles, California. The company is founded by Jasmine LeFleur, who has experience in home decor. Now, with the expertise of knowledge and business acumen, she has determined she can confidently start and effectively grow a successful Urban Harmony Home Decor company. She believes her experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of home decor practices will provide everything needed for long-term growth and profitability.
Urban Harmony Home Decor will provide a comprehensive array of services and products for a wide variety of clients. Urban Harmony Home Decor will be the premier destination for home decor items, providing services and products to each client while supporting the strategic goals of the company. Urban Harmony Home Decor will be the ultimate choice in Los Angeles for clients to ensure that every need of the customer is fully and completely met.
Product Offering
The following are the services that Urban Harmony Home Decor will provide:
- Home decor selections that have been curated with select partnering pieces
- A wide range of high-quality and stylish home furnishings
- Software to create home spaces and align decor within them
- Technology-driven measuring systems for homes and furnishings
- Home decor that reflects life values and unique personalities
- Handmade pieces selected to enhance the harmony of the home
- Decorative Accessories offered include artwork, vases and sculptures
- Premium bedding, curtains, rugs, and cushions are offered
- Lighting solutions include lamps, chandeliers, and ambient lighting solutions
- Superior customer service and attentive personal attention to each client.
Customer Focus
Urban Harmony Home Decor will target individuals who live in the Los Angeles region. They will target upper-economic zone homeowners throughout Beverly Hills, Newport Beach, Orange County and other regions. They will target real estate agents and home designers and decorators. They will target celebrity agents.
Management Team
Urban Harmony Home Decor will be owned and operated by Jasmine LeFleur. She recruited her former administrative assistant, Ida Renoir, to be the Office Manager for the new company, in addition to being her executive assistant. In addition to select retail staff members, Jasmine recruited her friend and executive Lyon Daniels to become the new Director of Furnishings.
Jasmine LeFleur is a graduate of the Parsons School of Design in New York City. She is known for her opulent and seductive urban designs, including handwoven textiles and lush applications of texture within the home walls. Her expertise was developed during ten years of experience as a home design partner with Don Dryden, a celebrity home design consultant. During those years, Jasmine learned how to use her skills and designs to bring together a series of rooms in any home.
Ida Renoir was the administrative assistant to Jasmine LeFleur for six years at the former employer’s work sites. Ida was extremely organized and talented with her customer service skills. Jasmine has hired Ida to be the new Office Manager, in addition to being her executive assistant in the company.
Lyon Daniels holds a degree in Business Applications from University of California, Los Angeles. He has over ten years of experience as a designer and operations manager in his former employment, where he garnered many compliments from satisfied clients who requested him multiple times while decorating their homes. Lyon will become the Director of Furnishings in the new company.
Success Factors
Urban Harmony Home Decor will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of Urban Harmony Home Decor
- Comprehensive menu of products and services designed to meet even the most discriminating client need.
- Personal design specialists who will offer home consultations
- Modern, minimalistic, classic and eclectic designs from which to choose
- Urban Harmony Home Decor offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Home Decor business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Urban Harmony Home Decor is seeking $200,000 in debt financing to launch Urban Harmony Home Decor. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Urban Harmony Home Decor.
Company Overview
Who is Urban Harmony Home Decor?
Urban Harmony Home Decor is a newly established, full-service home decor company in Los Angeles, California. Urban Harmony Home Decor will be the most luxurious, multi-design environment choice for individuals and families in Los Angeles and the surrounding communities. Urban Harmony Home Decor will provide a comprehensive menu of design services for any client to utilize. Their full-service approach includes a comprehensive array of design options in price choices from modest to ultra-luxury.
Jasmine LeFleur will be able to manage a staff of several employees. The team of professionals are highly qualified and experienced in home decor, fabrics, textiles, wall treatments and design features. Urban Harmony Home Decor brings a fresh, appealing to every home and removes all the headaches of trying to pull together items to create a cohesive design. Urban Harmony Home Decor ensures all issues are taken care of expeditiously for each client, while delivering the best customer service.
Urban Harmony Home Decor History
Urban Harmony Home Decor is owned and operated by Jasmine LeFleur. As a former home decor designer for several years, she developed a unique capability to find the decor items and furnishings that clearly reflect an urban, chic, California-style home. She has managed design projects for home and commercial projects alike and has now determined she is ready to take her skills and knowledge to venture out on her own by starting her own company. She has gained the trust and commitment of several clients in advance of opening her business and will sign contracts with each when the company launches.
Since incorporation, Urban Harmony Home Decor has achieved the following milestones:
- Registered Urban Harmony Home Decor, LLC to transact business in the state of California.
- Has a contract for a 10,000 square foot design studio at one of the midtown buildings
- Reached out to numerous contacts to include Urban Harmony Home Decor in new design projects.
- Began recruiting designers and office personnel to work at Urban Harmony Home Decor
Urban Harmony Home Decor Services
The following will be the services Urban Harmony Home Decor will provide:
- Home decor selections that have been curated with select partnering pieces
- A wide range of high-quality and stylish home furnishings
- Software to create home spaces and align decor within them
- Technology-driven measuring systems for homes and furnishings
- Home decor that reflects life values and unique personalities
- Handmade pieces selected to enhance the harmony of the home
- Decorative Accessories offered include artwork, vases and sculptures
- Premium bedding, curtains, rugs, and cushions are offered
- Lighting solutions include lamps, chandeliers, and ambient lighting solutions
- Superior customer service and attentive personal attention to each client
Industry Analysis
The home decor industry is expected to grow over the next five years to over $62277M.
The growth will be driven by an interest fueled by the pandemic years when design and decor did not grow at all. The fast pace within the home decor industry now has triggered a renewed drive to design and add home decor to small and large homes, businesses, commercial areas and government buildings. The growth will also be driven by the increased availability of exotic international textures, fabrics, lampshades, lighting fixtures and other decor items. The doors are open to new designs and new rooms to place those items with flair and urban coziness.
Costs will likely be reduced as technology moves more toward optimizing daily tasks so that company personnel can avoid mundane work. Costs will also likely be reduced as design pieces and decor, along with furnishings, will once again ship through internationally to fill design centers will plenty of inventory, which will reduce prices. The availability of lower-than-expected textiles and fabrics from India has also led to prices being reduced with, possibly, further price reductions in the future from that area of the globe.
Download the Home Decor business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Urban Harmony Home Decor will target individuals who live in the Los Angeles region. They will target upper-economic zone homeowners throughout Beverly Hills, Newport Beach, Orange County and other regions. They will target real estate agents, home designers and decorators. They will target celebrity agents.
The precise demographics for Urban Harmony Home Decor are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Urban Harmony Home Decor will primarily target the following customer profiles:
- Residents within certain areas of Los Angeles
- Upper-income homeowners throughout select regions, such as Beverly Hills
- Real estate agents
- Home designers
- Home decorators
- Celebrity agents
Competitive Analysis
Direct and Indirect Competitors
Urban Harmony Home Decor will face competition from other companies with similar business profiles. A description of each competitor company is below.
Classic Living Decor
Classic Living Decor located in Orange County, California, was started by Tina Murray in 2019. She is a home design expert, having graduated from the Chicago Institute of Design and practicing her craft for over 15 years. Her style of preference is the “classic” decor with a balanced design that tells guests one lives in California. This translates to cool blue, tangerine, white and other beach colors, all designed within classic lines of furnishings. Tina was personally designing for friends when she realized she needed to start her own company. The company is highly-profitable and currently Tina has seven executive personnel on staff, fifteen clerks and design assistants, along with two retail locations specializing in classic home decor design.
Handmade Home Specialties
While on a buying trip for a retail employer, David Landon realized the beauty and sustainability of international textiles. In Egypt and India, he located multiple suppliers of those textiles and returned home to start his new company, Handmade Home Specialties. He currently has one retail store and two design specialists who work with select clients to develop photos or illustrations of the textiles desired. Those are then sent to the country best suited to create the textiles and the clients wait for finished pieces to be sent.
Handmade Home Specialties has handmade textiles for every buyer, from modestly-priced to opulent, with the idea that textiles bring warmth and comfort to every room and should be found in every person’s home.
Townsend & Hatch Home Decor
Marc Townsend and Darlyn Hatch are co-owners of the Townsend & Hatch Home Decor company. Founded in 2018, Marc and Darlyn were formerly employed as designers in a large upscale department store who determined that they would be able to become more profitable and enjoy their life experiences more as business owners. They started the new company in a warehouse in midtown, where it quickly grew to over 20,000 feet in size.
Because of the extremely reasonable prices for home decor and the extensive experience Marc and Darlyn carried, the company has grown to become extremely competitive with other home decor stores.
Download the Home Decor business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Urban Harmony Home Decor will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team of Urban Harmony Home Decor
- Comprehensive menu of products and services designed to meet even the most discriminating client need.
- Personal design specialists who will offer home consultations
- Modern, minimalistic, classic and eclectic designs from which to choose
- Urban Harmony Home Decor offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
Urban Harmony Home Decor will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide a comprehensive home decor plan
- Personal design specialists who will offer home consultations
- Modern, minimalistic, classic and eclectic designs from which to choose
- Unbeatable pricing to its clients; they will offer comparative pricing to the competition
Promotions Strategy
The promotions strategy for Urban Harmony Home Decor is as follows:
Word of Mouth/Referrals
Jasmine LeFleur has built up an extensive list of contacts over the years by providing exceptional service and expertise to her clients. The contacts and clients will follow her to her new company and help spread the word of Urban Harmony Home Decor.
Professional Associations and Networking
The staff at Urban Harmony Home Decor will join the professional associations throughout the region to spread the word of the new company. They will also join national trade organizations and international collaborations to ensure they receive textiles and decor that complement their styles throughout the company.
Print Advertising
A direct mail piece will be sent to select individuals and companies prior to the launch of the company. A champagne launch party will be held on opening day of the company with select guests present.
Website/SEO Marketing
Urban Harmony Home Decor will fully utilize their website. The website will be well organized, informative, and list all the services that Urban Harmony Home Decor provides. The website will also list their contact information and display various pieces of home decor for consideration. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “home decor company” or “design near me,” Urban Harmony Home Decor will be listed at the top of the search results.
Pricing
The pricing of Urban Harmony Home Decor will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Urban Harmony Home Decor.
Operation Functions:
- Jasmine LeFleur will be the owner and president of the company. She will oversee all staff and manage client relations. Jasmine has spent the past year recruiting the following staff:
- Ida Renoir will be the administrative assistant who will manage the office administration, client files, and accounts payable.
- Lyon Daniels will be the Director of Furnishings, all client oversight, inventory selection and furnishings specialist
Download the Home Decor business plan template (including a customizable financial model) to your computer here <–
Milestones:
Urban Harmony Home Decor will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for the Urban Harmony Home Decor
- 6/1/202X – Finalize contracts for Urban Harmony Home Decor clients
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Urban Harmony Home Decor office
- 7/1/202X – Urban Harmony Home Decor opens its doors for business
Management Team
Urban Harmony Home Decor will be owned and operated by Jasmine LeFleur. She recruited her former administrative assistant, Ida Renoir, to be the Office Manager for the new company, in addition to being her executive assistant. In addition to select retail staff members, Jasmine recruited her friend and executive Lyon Daniels to become the new Director of Furnishings.
Jasmine LeFleur is a graduate of the Parsons School of Design in New York City. She is known for her opulent and seductive urban designs, including handwoven textiles and lush applications of texture within the home walls. Her expertise was developed during ten years of experience as a home design partner with Don Dryden, a celebrity home design consultant. During those years, Jasmine learned how to use her skills and designs to bring together a series of rooms in any home.
Ida Renoir was the administrative assistant to Jasmine LeFleur for six years at the former employer’s work sites. Ida was extremely organized and talented with her customer service skills. Jasmine has hired Ida to be the new Office Manager, in addition to being her executive assistant in the company.
Lyon Daniels holds a degree in Business Applications from University of California, Los Angeles. He has over ten years of experience as a designer and operations manager in his former employment, where he garnered many compliments from satisfied clients who requested him multiple times while decorating their homes. Lyon will become the Director of Furnishings in the new company.
Financial Plan
Key Revenue & Costs
The revenue drivers for Urban Harmony Home Decor are the fees they will charge to clients for their products and services.
The cost drivers will be the overhead costs required in order to staff Urban Harmony Home Decor. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Urban Harmony Home Decor is seeking $200,000 in debt financing to launch its home decor company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Home Decor business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Clients Per Month: 70
- Average Revenue per Month: $45,000
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Home Decor Business Plan FAQs
What Is a Home Decor Business Plan?
A home decor business plan is a plan to start and/or grow your home decor business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Home Decor business plan using our Home Decor Business Plan Template here.
What are the Main Types of Home Decor Businesses?
There are a number of different kinds of home decor businesses, some examples include: Complete home decor service, Restore or replace decor service, Online home decor service, and Home decor accessory service.
How Do You Get Funding for Your Home Decor Business Plan?
Home Decor businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Home Decor Business?
Starting a home decor business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Home Decor Business Plan - The first step in starting a business is to create a detailed home decor business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your home decor business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your home decor business is in compliance with local laws.
3. Register Your Home Decor Business - Once you have chosen a legal structure, the next step is to register your home decor business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your home decor business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Home Decor Equipment & Supplies - In order to start your home decor business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your home decor business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.