Though popular media may make it seem that trips to antique markets, fabric houses, and furniture showrooms are all it takes to decorate a home, building a career as an interior designer requires far more than just a great eye. In reality, the industry is flush with talent, but those who invest their resources most wisely are most likely to become household names.
Starting any business requires smart planning, novel ideas, and a cash infusion. An interior design studio is no different. However, a company built on the strength of your aesthetic skillset has additional requirements: a professionally-shot portfolio and a roster of clients with the budget to hire you—or recommendations, stellar press placements, or a well-curated social media presence that can convince them to flock. Take it from the pros, who got down to brass tacks about their struggles and successes when building their businesses, and how much it actually cost.
How to get your first influx of cash
Designer: Donna Mondi, founder of AD PRO Directory studio Donna Mondi Interior Design
Founded: 2001
Starter funds: $3,000
How she got it: In the midst of a divorce, Mondi, the mother of two children, then six and eight, borrowed the money from her mother while working at a design firm by day and completing a degree program in the field at night. “I had everything against me,” says the designer, whose first day of work was September 11, 2001.
When the studio became profitable: Mondi invests 50% of her profits back into the business each year—the only year she wasn’t profitable was in 2008. She has since grown her company to include nine full-time employees. “If I can do it under all of those conditions, I feel like anybody with passion and drive can absolutely do it as well,” she says.
Designer: Clara Jung, principal of AD PRO Directory studio Banner Day Interiors
Founded: 2016
Starter funds: $5,000
How she got it: When Jung decided that she wanted to leave her career in corporate litigation to launch a design business, she began by cutting out non-essential everyday expenses. First to go was the cable TV subscription that she and her husband shared, then they furloughed their dog walker and cut back on expenditures such as travel and dining out. Having worked in a well-paying industry prior to becoming a designer, Jung had been able to save up funds that helped to propel her business forward too. “If you’re the only sole employee or owner, and if you have someone else to help bolster your day-to-day living expenses, the startup costs for design are very low,” she says. “It's not like a restaurant where you have to buy a commercial lease and the kitchen, and have waiters and front of house and back of house.”
When the studio became profitable: “Years one and two, I was technically profitable, but I wasn’t really paying myself—I was putting everything back into the business. Any money I made, I never pulled out, because you want to have that financial foundation, but that also comes from a place of privilege of not having to pull a salary.”
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Don’t discount the start-up costs
Once you’ve got the initial lump sum, says Lewis Heathcote, CEO of AD100 design studio Nicole Hollis, use it to cover basic start-up costs, including company registration and un-billable time. Establishing a good relationship with one’s bank is also critical, he says. Set up a business account, establish a line of credit, and consider using Small Business Administration loans to get started. “Debt only works as a tool if it's used to help grow your business or help change your situation,” he clarifies. “It’s a toxic tool if you’re using it to pay your living expenses.”
Coming from a legal background, Jung was mindful to form an LLC for herself a year before launching her design firm. Her next largest investment was hiring a photographer to shoot a home she had designed to build a portfolio of her work. At the beginning of her career, Jung says that she “basically worked very, very low cost” for friends and their friends, heavily relying on her husband to handle day-to-day household expenses while she built her business. Having such a support system certainly helps, especially if you’re changing careers, but many successful designers have also done without.
Jung chose to work from her home office for the first four years of her design career and did not hire any of her six employees until her fourth year, either. Instead, she focused on “being very, very conservative fiscally with the firm to ensure just maximum profitability.” She adds, “I was just trying to strive toward longevity of the firm more than anything else.”
However, Jung eventually found that signing a lease was “worthwhile for general separation and sanity, which often is a positive contribution to productivity,” she explains. She urges those new to renting commercial spaces to be aware of rent terms specific to these types of properties and ensure that monthly costs are manageable even during slower periods of the year. “Truly evaluate your needs,” she adds. “For us, since we do store small goods such as wallpaper, hardware, lighting, and more, for our clients, it was imperative that we had the storage space and an office space that didn't require the use of elevators or stairs.”
Get yourself noticed
“You don’t actually need [outside] investment to get started in design,” says interior design business strategist Melissa Galt. After all, social media doesn’t cost a dime. Galt knows designers who relied solely on Instagram from the get-go—not even building a website until they were two to three years into the business—“and did very, very well.”
As the saying goes, images certainly speak louder than words, but Instagram reels in particular can lead to viral account growth. Of course, the higher quality your images, the better your slideshows will be. If you do have some cash to put toward this effort, it may be worth hiring a professional photographer to enhance your content.
Some designers go out on their own armed with a roster of clients while others start from scratch; still others may choose to maintain part- or even full-time roles at larger firms while advancing their own business on the side. Word of mouth is always beneficial when it comes to building a client list—one satisfied customer will oftentimes lead to another—so it is important to view each new client as someone whose network you can leverage to grow your business. To sign your first clients, get creative. Designers have explored all sorts of clever avenues, ranging from open houses to, yes, dating apps, with the hopes of targeting potential clients early in their careers.
Make a plan to start paying yourself….
Jung was able to start paying herself three years into launching her business. Hollis was able to do so around the same time, says Heathcote. For those designers who have previously relied on biweekly or monthly paychecks, this timeline is important to consider—budgeting in the interim is truly essential.
Before you add others to the payroll.
Galt encourages newly self-employed designers to start by hiring an intern “as soon as humanly possible” for 10 to 15 hours a week. “Any time you have somebody working for you that is giving you back your time, that’s making you money,” she says. “You’re doing tasks that are $200-, $500-, $1,000-an-hour tasks, and they’re doing things for you for $15 to $20.”
From there, Galt says, begin outsourcing. “We live in the digital age and a vast majority of what goes on inside a design firm can be done well and effectively by outsourcing,” she shares. She acknowledges that many designers do find that a locally-based project manager or design assistant—whether an independent contractor or a full-time employee—is still paramount. However, hiring a remote worker to handle CAD drawings eliminates the need to issue benefits, a 401(k), or profit-sharing, Galt notes. When starting a business, “you really want to remain nimble and flexible,” she adds.
When evaluating whether one is ready to hire full-time employees, Heathcote champions following the loaded rate model, a carryover from the consulting world, which is calculated by taking all the costs associated with an employee divided by total billable hours to ensure that a company has enough overhead to cover this hire.
Ensure longevity
Making an independent career in the interior design world requires both practicality and out-of-the-box thinking. “It’s always great to be conservative, but you have to balance that with some risk taking,” Jung says. “You'll never grow without putting yourself out there.”
Don’t cast your net too wide in terms of offerings, though. “It’s important to focus on what you do well and keep learning and keep trying to perfect it,” Heathcote advises.
Prioritizing mental health is key too, Jung adds. “Only other small business owners can truly understand the highs, lows, and sacrifices of owning your own business,” she says. “The demands and stresses can be very demanding, especially if you’re supporting a team.”
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