Understanding the extra information an interior design business plan should emphasise can help the business succeed where others may have failed. An interior design business plan not only addresses start-up costs; it should also enlighten the reader about its position within the marketplace, its growth potential and the trends that will support the projected revenue. Creating strategies that capture revenue from a target audience is an area many designers overlook.
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The executive summary is found at the beginning of a business plan and is meant to summarise the business as a whole. An interior design business should include a description of who the business owner is, his background and experience in the interior design field. A brief overview of the operations of the interior design business should follow the biographical information and describe the area of design being focused upon, a list of already established resources and business connections, who the target audience will be and who will manage and oversee the day-to-day office needs.
A market analysis revealing details about the target market, its size, income level and its consumer spending habits regarding home design is part of the marketing strategy plan. Data from trusted sources that spell out estimated market growth, identify competitors and compare them against the planned business is placed in this portion of the business plan. Highlighting market trends that the interior design business will be following, describing customers by segmentation and outlining the strategy to capture each segment is part of a marketing strategy.
For example, residential design segmentation could include "transitioning baby boomers," "young professionals" and "home developers" with detailed plans for approaching and capturing revenue from each segment.
A management summary outlines all employees other than the owner who will be involved in the day-to-day tasks of the interior design business. Affiliations with the design industry, awards, education and other recognition is listed here for each person. Work history and connections with the design industry should be emphasised in a management summary. Mention of an employee's award-winning projects that reflect and support the design direction mentioned in the executive summary can also be part of the management summary.
A financial plan is necessary to understand the business from a revenue standpoint. Financial plans should include a break-even analysis and a series of projected finance statements to arrive at a complete financial picture. A statement of cash flow, a balance sheet and a profit-and-loss statement should show projections for one, three and five years. Identifying sources of initial funding, start-up costs, worst-case scenarios and financial risks and difficulties an interior design business may experience is included here. Difficulties in the design field can include the simultaneous and unknown entry of a competitor into the marketplace.
Strategy Implementation Plan
Implementation planning outlines exactly how the interior design business will enter the marketplace and capture its audience segmentation. Strengths and weaknesses, opportunities and threats should be identified here. Strategies for pricing, promotion and distribution of products along with sales projections are detailed in an implementation plan. Implementation strategies should be identified by a title followed by a series of tactics pertaining to the strategy.
For instance, generating sales is a revenue strategy, while creating a client network through referrals of past clients and creating a network of professional contacts are tactics used to support the strategy.
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