Table Of Contents

How To Start An Interior Design Business: 10 Essential Tips You Need To Know

How To Start An Interior Design Business

Are you passionate about aesthetics, decor, and transforming spaces into functional works of art? If so, learning how to start an interior design business may be the perfect avenue for combining creativity with entrepreneurship. However, venturing into interior design goes beyond just picking color palettes and fabrics. You must also navigate state or local regulations, licensing requirements, and potential certifications. According to the U.S. Small Business Administration (SBA), researching your local regulations and creating a robust business plan are critical first steps for any creative venture.

Whether you’re aiming to start with no experience, wondering how much it costs to set up, or planning an online interior design firm, success in this field relies on a blend of strategic planning, industry knowledge, and compliance with local laws. Below, we’ll walk you through 10 essential tips, from analyzing your market to embracing scheduling solutions like Shyft for smooth workforce management. Let’s dive in!

1. Understand Industry Regulations & Licensure Requirements

Before breaking into interior design, it’s crucial to identify the licensure requirements of your state or province. Some jurisdictions require you to register as an interior designer or hold specific certifications, especially if you’re working on large-scale commercial projects. In certain U.S. states, you may need to pass the National Council for Interior Design Qualification (NCIDQ) exam, while other places have fewer or no mandatory requirements. Additionally, city and county ordinances may dictate what building codes and safety regulations you need to understand, particularly if you offer structural renovations or manage subcontractors. Always check with the appropriate authorities—whether it’s your state’s department of consumer affairs or your city’s zoning office—before you start accepting clients.

  • Check Local Mandates: Research your city or county’s licensing board for any interior design business-specific regulations.
  • NCIDQ Exam: See if your state mandates this exam for becoming a “registered” interior designer.
  • Commercial vs. Residential: Commercial projects may require advanced certifications or stricter compliance with building codes.

Be aware that these rules are often updated, so ensure you’re consulting current guidelines. For instance, the NYC Department of Small Business Services regularly updates its requirements for various design-related trades and professions. Always verify details on official websites or with a qualified attorney before making major decisions.

Shyft CTA

2. Determine Your Business Structure & Register

Your choice of business structure (e.g., sole proprietorship, LLC, corporation) has significant implications for liability, taxes, and how you manage day-to-day operations. An LLC is popular among interior designers for providing personal liability protection and easy tax reporting. You’ll also need an Employer Identification Number (EIN) from the IRS if you plan to hire employees or operate as an LLC.

  • Register Your LLC/Corporation: File with your state’s business registry to establish legal recognition.
  • Apply for an EIN: Obtain this nine-digit number from the IRS for tax purposes.
  • Check Zoning Laws: If operating from a home office, confirm you comply with local zoning regulations.

Don’t forget to research any local incentives or grants for small businesses. Many cities have enterprise zones or incubator programs that offer tax credits or reduced fees for new design entrepreneurs. These can help reduce costs and open doors to networking opportunities.

3. Draft a Detailed Business Plan

No matter how talented you are at picking out the right couch or matching wallpaper, a sound business plan keeps you focused and financially stable. A robust plan typically includes market research, competitor analysis, a pricing strategy, and your projected revenue. You’ll also need to address practical issues: how you’ll secure clients, what your overhead will look like, and how to allocate your resources effectively.

  • Market Analysis: Identify a niche—e.g., luxury residential, hospitality design, or eco-friendly spaces.
  • Pricing Strategy: Research industry rates and decide on hourly vs. flat-fee structures.
  • Financial Projections: Estimate costs for startup, operations, and marketing for at least one year.

Need more tips on structuring your financial goals? Check out our guide on How to Grow a Small Business for strategic insights on budgeting and planning your next moves.

4. Calculate Your Startup Costs & Funding Needs

One of the most common questions among new entrepreneurs is: “How much does it cost to start an interior design business?” The simple answer is that it varies based on your scope, location, and the complexity of projects. However, you should at least plan for essential items such as office or studio space, professional software for drafting and rendering, marketing materials, and licensing fees. If you intend to manage a small team, factor in salaries, benefits, and the cost of scheduling software.

  • Office or Workspace: Expect monthly rents from $500 to $2,000+ depending on city and size.
  • Software & Equipment: 3D modeling programs, project management tools, and professional laptops (~$2,000–$5,000).
  • Legal & Licensing Fees: Initial registration, certifications, or local licenses (~$300–$1,500).

Financing options include personal savings, bank loans, or seeking local grants specifically designed for creative businesses. For more insights, you can also learn about potential grants for small businesses to kickstart your interior design company.

5. Build Your Portfolio & Brand Presence

If you’re asking, “How to start an interior design business with no experience?” the solution often lies in creating a strong portfolio. Offer design services to friends, local charities, or nonprofit organizations in exchange for experience and high-quality photos of your work. Build a compelling online presence on Instagram, Pinterest, and LinkedIn to showcase your style and attract prospective clients.

  • Social Proof: Gather testimonials from happy clients to enhance credibility.
  • Leverage Networking: Join local business groups or the American Society of Interior Designers (ASID) for connections and learning opportunities.
  • Brand Identity: Develop a unique visual identity—logos, color schemes, and slogans that reflect your design style.

Creating a cohesive brand helps you stand out in a crowded market. And remember, solid branding paired with genuine relationships can give you a continuous referral network that acts as free marketing.

6. Consider Going Virtual: How to Start an Online Interior Design Business

Remote or online interior design services have surged in popularity, especially for clients who want quick consultations or live in smaller towns without local design experts. To set up an online interior design business, invest in a user-friendly website that allows you to provide virtual consultations, mood boards, and 3D renderings. Offer tiered packages—like quick online consultations, full online design, or one-on-one digital styling sessions.

  • Video Conferencing Tools: Zoom or Microsoft Teams for consultations and project updates.
  • Collaborative Boards: Tools like Pinterest or Houzz to gather and share design inspiration with clients.
  • E-commerce Integration: Partner with online furniture and decor shops for direct shopping links.

As with any online venture, prioritize establishing credibility and trust. Clients often want to see reviews, before-and-after photos, and your credentials upfront, especially if they’re working with you virtually.

7. Invest in the Right Team & Scheduling

Even if you’re starting solo, eventually you might bring on assistants, drafters, or project coordinators. Managing diverse schedules can be complex, particularly if you have multiple ongoing design projects. A smart scheduling system will help you avoid costly errors or missed deadlines. That’s where scheduling tips and tools like Shyft come in, letting you manage shifts, track project hours, and even handle last-minute schedule changes seamlessly.

  • Define Roles Clearly: Ensure everyone on your team understands their tasks and deadlines.
  • Use Scheduling Software: Tools like Shyft help streamline staffing, reduce time theft, and optimize shift coverage.
  • Encourage Communication: Regular check-ins prevent errors, rework, and disgruntled clients.

By prioritizing scheduling and communication, you’ll not only reduce administrative costs but also build a more satisfied, productive team—something essential for scaling your business.

Shyft CTA

8. Handle Financial & Compliance Details

To keep your business healthy, you’ll need to manage bookkeeping, invoicing, and possibly payroll if you have employees. Ensure you set aside funds for quarterly taxes and track all expenses for potential deductions. Also, research labor laws in your state or province to stay compliant with overtime rules, minimum wage requirements, or any unique fair scheduling laws. For example, California State Labor Laws differ significantly from Texas or Florida regarding meal breaks and employee scheduling.

  • Bookkeeping Software: Tools like QuickBooks or FreshBooks can automate invoicing and expense tracking.
  • Insurance Coverage: General liability insurance covers property damage; professional liability covers errors in design or advice.
  • Labor Law Compliance: Know your local laws to avoid fines or lawsuits. When in doubt, consult a labor attorney.

If you’re employing designers or contractors, using a tool like Shyft can help ensure you’re honoring your obligations while giving your team scheduling flexibility. Reliable financial tracking goes hand in hand with compliance, protecting your reputation and bottom line.

9. Market Your Services Strategically

Marketing is essential for any interior design venture, whether you’re starting an interior design business without a degree or you possess years of formal training. Choose your platforms carefully. Instagram and Pinterest are visually oriented, making them excellent for showcasing your design aesthetic. LinkedIn is useful if you aim to collaborate on commercial projects or network with architects, builders, and real estate developers.

  • Local SEO: If you have a brick-and-mortar studio, optimize your Google Business Profile to attract local clients.
  • Email Marketing: Send newsletters with design tips or exclusive offers to build loyalty.
  • Content Creation: Regularly publish blog posts or videos about design tips, trends, and case studies.

Always track your marketing ROI. Monitor website traffic, social media engagement, and conversion rates to see what resonates with your audience and adjust your strategy accordingly.

10. Stay Updated & Grow Professionally

The interior design industry evolves quickly, with new trends, technologies, and regulations appearing every year. Regular professional development ensures you stay competitive and innovative. Attend design expos, seminars, or participate in advanced training programs. Engage in continuous market research to understand your clients’ changing preferences—whether it’s sustainable materials, modular furniture, or augmented reality design previews.

  • Professional Associations: Groups like ASID, IIDA, or NKBA offer courses, webinars, and networking events.
  • Design Software Updates: Stay current with the latest versions of 3D modeling tools.
  • Customer Feedback: Encourage reviews and adapt based on real-time feedback.

Staying up to date doesn’t just mean adjusting to trends—industry regulations on energy efficiency, fire safety, or building codes can also shift. Keep an eye on official bulletins from your state government for relevant changes.

Summary

Starting an interior design business can be both exhilarating and challenging. From legal and licensing hurdles to perfecting your brand presence, each step requires careful planning. Remember, “How to start an interior design business” isn’t just about designing beautiful rooms—it’s also about creating a sustainable and profitable enterprise. By focusing on local regulations, setting a clear pricing model, and using tools like Shyft to optimize your team’s schedule, you’ll be well on your way to succeeding in this dynamic field.

Conclusion

There’s no single blueprint for launching a successful interior design practice, but there are several proven principles. Researching local laws and ordinances sets a stable foundation, while a thorough business plan helps you anticipate costs and chart your growth path. Whether you choose a traditional on-site studio or opt for an online interior design business model, remember to prioritize compliance, sound financial planning, and targeted marketing.

By continually evolving your skill set and leveraging efficient tools—like Shyft for shift management—you can stay agile in the face of changing client demands and industry standards. Ultimately, the key to sustainability is a balanced approach that blends creativity, strategy, and solid operational practices.

FAQ Section

Do I need a license to start an interior design business?

That depends on your state or city. Some states require passing the NCIDQ exam for registration as a certified interior designer, especially for commercial projects. Always verify the regulations with your local licensing board.

How can I start an interior design business with no experience?

Focus on building a portfolio by offering services to friends or nonprofit organizations. Take online courses, intern under established professionals, and join reputable industry associations to gain knowledge and credibility.

How much does it cost to start an interior design business on average?

Startup costs vary widely. You may invest anywhere from $2,000 to $10,000 in software, equipment, and licensing, plus monthly rent if leasing a studio. This can increase based on your market, project scope, and team size.

What are the benefits of starting an online interior design business?

An online approach reduces overhead costs like office rent and often enables you to serve clients worldwide. You can also work flexible hours and easily collaborate using video conferencing and shared design boards.

Can I start an interior design business without a degree?

Yes. Many successful interior designers are self-taught or learned through specialized courses, mentorships, and practical experience. However, a formal education can help with technical aspects like building codes and drafting standards.

Disclaimer: This information is accurate as of this writing, but regulations and laws can change. Always consult official government websites and legal professionals for the most current and applicable guidance.

author avatar
Author: Brett Patrontasch Chief Executive Officer
Brett is the Chief Executive Officer and Co-Founder of Shyft, an all-in-one employee scheduling, shift marketplace, and team communication app for modern shift workers.

Shyft CTA

Shyft Makes Scheduling Easy