Home Staging Business Plan
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Below is a template to help you create each section of your Home Staging business plan.
Executive Summary
Business Overview
HomeScape Solutions is a startup home staging company located in Scottsdale, Arizona. The company is founded by Tracy Martin, an interior design professional who has provided beautiful decor for hundreds of clients during the past ten years on behalf of her former employer. Tracy has acquired a vast wealth of knowledge and a “feel” for what consumers want to see when they walk into a home and, further, she now has the ability to provide either rooms that tie together throughout the home or refresh the decor of certain homes to conform to the remainder of the interior throughout the home overall.
HomeScape Solutions will truly be a “solution” for those seeking to sell or lease their home. Staging their home will emphasize the beauty and liveability of the home, raising the price expectation and garnering additional profit from the sale or lease pricing. Whether providing decor for an entire home or one room, HomeScape Solutions will make a visible difference in the atmosphere of the home, improving chances of greater success down the line.
Product Offering
The following are the services that HomeScape Solutions will provide:
- Services for staging an entire home or selected rooms, backyard, etc.
- Services that provide everything from A to Z, including all furniture removal, trash removal, flooring, and new furniture in replacement
- Furnishings that are consistent and germane to the style of the home
- Cleaning and upkeep as needed, daily or weekly while the home is being viewed
- Design elements that indicate current styles and the most desirable appointments to support that style.
- Day to day management of property, as needed, to fulfill client needs.
Customer Focus
HomeScape Solutions will target real estate brokers and agents selling residential properties. They will also target leasing agents. They will target commercial leasing agents. They will target commercial building owners. They will target home owners who desire a new style for their home or those who want only one room redesigned for sales or leasing impact.
Management Team
HomeScale Solutions will be owned and operated by Tracy Martin. She recruited her former administrative assistant, Darci Goodwin, to be her Office Manager and help administrate office and operations functions. She also recruited Tory Pearson, a former furnishings design assistant, to take on the role of Design Director for HomeScale Solutions. Tory will oversee are furnishing removal and placement in each location.
Tracy Martin holds an Interior Design degree from the University of California, Los Angeles. She has been employed by an interior design group for ten years and has acquired an extensive knowledge base in home staging and has created over one hundred sustained relationships with clients who greatly value her styling advice.
Darci Goodwin was formerly an administrative assistant who worked with Tory. She will now become the Office Manager, assisting with several administrative functions and handling some of the human resources day to day tasks.
Tory Pearson, also a former employee working with Tracy Martin, will take on the role of Design Director, where she will oversee the start of each project through to successful completion. She holds a Bachelor’s Degree in Home Design from the University of Phoenix.
Success Factors
HomeScape Solutions will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of HomeScape Solutions
- Comprehensive array of furnishings, artfully designed and placed into position by qualified design professionals.
- Staging for commercial interests in sales or leasing opportunities
- HomeScape Solutions offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Home Staging business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
HomeScape Solutions is seeking $200,000 in debt financing to launch its HomeScape Solutions. 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 HomeScape Solutions.
Company Overview
Who is HomeScape Solutions?
HomeScape Solutions is a newly established, full-service home-staging company located in Scottsdale, Arizona. HomeScape Solutions will be the most results-driven, cost-effective, and effective choice for homeowners and commercial building owners in Scottsdale and the surrounding communities. HomeScape Solutions will provide a comprehensive menu of furnishings and services for any consumer or business to utilize. Their full-service approach includes a comprehensive collection of furnishing for an entire property, or one-room “refresh” approaches that concentrates the attention of buyers to one particular room
HomeScape Solutions will be able to create a positive change in a residence or commercial setting that leads to a successful home or building sale or lease. The team of professionals are highly qualified and experienced in design and style placement. HomeScape Solutions removes all headaches and issues of preparing a property for sale or lease and ensures all issues are taken care of expeditiously while delivering the best customer service.
HomeScape Solutions History
HomeScape Solutions is a startup home staging company located in Scottsdale, Arizona. The company is founded by Tracy Martin, an interior design professional who has provided beautiful decor for hundreds of clients during the past ten years on behalf of her former employer. Tracy has acquired a vast wealth of knowledge and a “feel” for what consumers want to see when they walk into a home and, further, she now has the ability to provide either rooms that tie together throughout the home or refresh the decor of certain homes to conform to the remainder of the interior throughout the home overall.
Since incorporation, HomeScape Solutions has achieved the following milestones:
- Registered HomeScape Solutions, LLC to transact business in the state of Arizona.
- Has a contract in place for a 10,000 square foot office at one of the midtown buildings
- Reached out to numerous clients to encourage signing new contracts with her company
- Began recruiting a staff of six and office personnel to work at HomeScape Solutions
HomeScape Solutions Services
The following will be the services HomeScape Solutions will provide:
- Services for staging an entire home or selected rooms, backyard, etc.
- Services that provide everything from A to Z, including all furniture removal, trash removal, flooring, and new furniture in replacement
- Furnishings that are consistent and germane to the style of the home
- Cleaning and upkeep as needed, daily or weekly while the home is being viewed
- Design elements that indicate current styles and the most desirable appointments to support that style.
- Day to day management of property, as needed, to fulfill client needs
Industry Analysis
The home staging industry is expected to grow over the next five years to over $13 billion.
The growth will be driven by the steady use of home staging and the continued growth of the real estate market. The growth will also be driven by virtual staging, which allows potential buyers or leasing prospects to visualize how the home or commercial space could be used. The growth will also be established by the increased awareness of home staging and the advantages of selling. Using a home staging company will result in a 44% likelihood of selling or leasing a home over those that are not staged.
The costs are likely to be reduced by technology that will enable virtual designing to be more accessible and improved. The costs will also be reduced by computer applications that will duplicate the staging of homes, movement of furnishings, landscaping changes and other specific improvements on designer computers.
Download the Home Staging business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
HomeScape Solutions will target real estate brokers and agents selling residential properties. They will also target leasing agents. They will target commercial leasing agents. They will target commercial building owners. They will target home owners who desire a new style for their home or those who want only one room redesigned for sales or leasing impact.
The precise demographics for HomeScape Solutions 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
HomeScape Solutions will primarily target the following customer profiles:
- Residents of Scottsdale and the surrounding communities
- Real estate brokers and agents in Scottsdale and surrounding communities
- Commercial realtors and leasing agents within the greater Scottsdale region
- Homeowners seeking a new style for one room within their home
Competitive Analysis
Direct and Indirect Competitors
HomeScape Solutions will face competition from other companies with similar business profiles. A description of each competitor company is below.
Elegant Home Stagers
Elegant Home Stagers is a professional home staging business that specializes in furnishing properties into visually appealing and marketable spaces. Their goal is to help homeowners, real estate agents, and property developers maximize the potential of their properties and create an inviting atmosphere that encourages potential buyers or tenant.
The services offered by Elegant Home Stagers includes a free consultation, interior furnishing placement and room design, furniture rentals and artwork and decor. Exterior cleanup and landscaping services may be added for an additional charge. Elegant Home Stagers also provides project management and oversight of the building or rooms on a daily or weekly schedule. The emphasis for Elegant Home Stagers is related to the name of the business, “elegant.” All home designs converge around this word on the interior and exterior of the property to enhance the potential for sale or lease.
XFactor Property Design Group
The XFactor Property Design Group exists to support commercial real estate brokers, lenders and building owners to successfully sell properties within a short timeframe and with a maximum profit level. The Group provides a number of services that are specific to designs and re-designs for buildings, including landscaping replacement or clean-up of surrounding areas, furniture removal and replacement of the complete interior of the building. Trending styles to entice forward-looking buyers are offered, as are conference room redesign and rebuild, as needed. All properties are overseen on a daily basis by XFactor Property Design Group in accordance with facility management. The guarantee offered includes a free complete overhaul of all furnishings if the property is not sold or leased within 60 days.
House & Home Design
House & Home Design is focused on one aspect of home staging: minimalist design. House & Home Design carries this focus singly, as it is the trend forward toward clean, simplistic designs that bring to prospective buyers a sense of well-maintained, thoughtful arrangements in each room that offer serene surroundings. House & Home Design owns a large warehouse that contains storage for every furnishing item within this design genre and pulls from stock on hand to fully stage homes and buildings in this minimalist style.
House & Home Design was started in 2020 by Heroit and Lucene Travois, designers from France who emigrated to America in 2017 with the intention of changing the way home staging is conducted in America, moving consumers and buyers toward a minimalist lifestyle and, therefore, a peaceful one.
Download the Home Staging business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
HomeScape Solutions will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team of HomeScape Solutions
- Comprehensive array of furnishings, artfully designed and placed into position by qualified design professionals.
- Staging for commercial interests in sales or leasing opportunities
- HomeScape Solutions offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
HomeScape Solutions will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide a comprehensive array of design services.
- Professionals with a varied background and qualified success within interior design.
- Services that include interior and exterior design and placement, upon request.
- Exclusive guarantee that any properties, either residential or commercial, will be completely redesigned and repositioned, if the property has not been sold or listed within 60 days.
- Unbeatable pricing for clients; they will offer the lowest pricing in the region.
Promotions Strategy
The promotions strategy for HomeScape Solutions is as follows:
Word of Mouth/Referrals
HomeScape Solutions has built up an extensive list of contacts over the years by providing exceptional service and expertise to their former clients. The contacts and clients will follow them to their new company and help spread the word of HomeScape Solutions.
Professional Associations and Networking
Tracy Martin will begin to network and get her new company into the sightline of community and regional groups, both professionally and socially. She will direct her efforts to her target audience and build interest from there with the large community base.
Print Advertising
Two weeks prior to launch, HomeScape Solutions will send a direct mail piece to every resident within the Scottsdale area to inform consumers of the opening. Discounts will be offered to new clients in the throughout the region
Website/SEO Marketing
HomeScape Solutions will fully utilize their website. The website will be well organized, informative, and list all the services that HomeScape Solutions provides. The website will also list their contact information and list testimonials from former clients. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “home staging company” or “home-staging near me,” HomeScape Solutions will be listed at the top of the search results.
Pricing
The pricing of HomeScape Solutions 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 HomeScape Solutions.
Operation Functions:
- Tracy Martin will be the owner and President of the company. She will oversee all staff and manage client relations. Tracy has spent the past year recruiting the following staff:
- Darci Goodwin, a former administrative assistant, will become the Office Manager who will manage the office administration, client files, and accounts payable.
- Tory Pearson will become the Design Director, providing oversight of furniture and design implementation.
Download the Home Staging business plan template (including a customizable financial model) to your computer here <–
Milestones:
HomeScape Solutions 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 HomeScape Solutions
- 6/1/202X – Finalize contracts for HomeScape Solutions clients
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into HomeScape Solutions office
- 7/1/202X – HomeScape Solutions opens its doors for business
Management Team
HomeScape Solutions will be owned and operated by Tracy Martin. She recruited her former administrative assistant, Darci Goodwin, to be her Office Manager and help administrate office and operations functions. She also recruited Tory Pearson, a former furnishings design assistant, to take on the role of Design Director for HomeScale Solutions. Tory will oversee are furnishing removal and placement in each location.
Tracy Martin holds an Interior Design degree from the University of California, Los Angeles. She has been employed by an interior design group for ten years and has acquired an extensive knowledge base in home staging and has created over one hundred sustained relationships with clients who greatly value her styling advice.
Darci Goodwin was formerly an administrative assistant who worked with Tory. She will now become the Office Manager, assisting with several administrative functions and handling some of the human resources day to day tasks.
Tory Pearson, also a former employee working with Tracy Martin, will take on the role of Design Director, where she will oversee the start of each project through to successful completion. She holds a Bachelor’s Degree in Home Design from the University of Phoenix.
Financial Plan
Key Revenue & Costs
The revenue drivers for HomeScape Solutions are the fees they will charge to clients for their services.
The cost drivers will be the overhead costs required in order to staff HomeScape Solutions. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
HomeScape Solutions is seeking $200,000 in debt financing to launch its home staging business. 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 Staging 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: 55
- Average Revenue per Month: $160,000
- 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 Staging Business Plan FAQs
What Is a Home Staging Business Plan?
A home staging business plan is a plan to start and/or grow your home staging 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 Staging business plan using our Home Staging Business Plan Template here.
What are the Main Types of Home Staging Businesses?
There are a number of different kinds of home staging businesses, some examples include: Staging with Owner’s Furniture, Staging with Company Furniture, and Staging plus minor maintenance and repairs.
How Do You Get Funding for Your Home Staging Business Plan?
Home Staging 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 Staging Business?
Starting a home staging 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 Staging Business Plan - The first step in starting a business is to create a detailed home staging 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 staging 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 staging business is in compliance with local laws.
3. Register Your Home Staging Business - Once you have chosen a legal structure, the next step is to register your home staging 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 staging 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 Staging Equipment & Supplies - In order to start your home staging 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 staging 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.
Learn more about how to start a successful home staging business: