What is a business model? In simple terms, it’s your plan for how exactly your business will make money. It outlines the services you offer, the clients you target, and the partnerships you form. In the interior design world, there are many popular business model options: think full-service, e-design, design consultations, etc—or some combination of offerings.
To choose the right model for your business, we recommend exploring the most popular structures. Then, choose the model(s) that most closely align with your passions, talents, and the needs of your ideal clients.
Table of Contents
10 popular interior design business models
If you’re just beginning your interior design journey, we recommend starting with our new business guide. In it, you’ll find more information about creating an initial business plan (and the ins and outs of becoming a professional interior designer). Once you have the basics covered, come back to this post to create your business model.
If you’ve been designing professionally for a while, jump right into exploring these 10 tried-and-true models.
#1: Full-service design
As a full-service interior designer, you’ll plan projects, get client approval, and see the changes through. Your work may include mood boards, floor planning, sourcing, procurement, installation, liaising with contractors, and much more. You will likely visit the client’s site several times. Whether you’re hired for a whole house or a single room, you’ll be responsible for planning and physically transforming the entire space, from concept to completion.
Pros:
- Full-service designers earn more per project than virtual designers (due to their larger workload)
- You’ll have opportunities to collect photos for your portfolio (which is an absolute must for any designer hoping to have their work published in the future)
Cons:
- There’s less flexibility than virtual design — you work in-person, rely on your client’s schedule for meetings and house viewings, etc.
- It can be more challenging to secure projects as a full-service designer since you need to focus your marketing strategy on finding clients with bigger budgets and more expansive scopes of work.
#2: Virtual design
As an e-designer, you’ll perform every task remotely. This includes client meetings, design concept discussions, digital mood boards, floor plans, shopping lists, and more. When your designs are finished, you’ll leave the implementation process in the clients’ hands. To ensure you’re delivering the best possible service, we recommend including a follow-up plan with your client to ensure they have sufficient support as they embark on executing their design.
Pros:
- You can work fully from the comfort of your home
- Your client base isn’t limited to a single geographical area
- You don’t have to deal with managing the procurement of furnishings or overseeing the installation and implementation of your design concept, which can free up time to focus on other priorities.
Cons:
- Virtual design generates less profit per project (though you can still make an impressive income).
#3: Design and build
Some designers partner with home builders, contractors, and architects to offer “design and build” services. In your role as the interior designer on a team, you would pre-plan designs with clients before their homes are built or remodeled. You’d then work with your team members to bring the vision to life.
Pros:
- Once your collaborative relationships are formed, the work will come to you more easily and you won’t have to hustle for jobs as much.
- Profits can be larger due to the increased workload
Cons:
- Developing a trusted network of home builders, contractors, and architects can be challenging and time-consuming (you might have to kiss a few frogs along the way!).
#4: Paid consultations
Consultations can be part of a larger design project or offered independently as a standalone deliverable. During these meetings, designers provide valuable insights, opinions, and design suggestions on specific design dilemmas. Consultations can happen via in-person visits or video calls. They may appeal to clients who are just beginning a DIY design project or those who need help with a specific trouble spot, such as paint colors or furniture layouts. Consultations can also be a good option for individuals who aren’t ready to commit to, or invest in, a full-service, turn-key project. Sometimes, those clients may even sign on for full-service jobs (after they have a chance to experience your worth firsthand).
Pros:
- Consultations can easily be added to any interior design business model
- They can be done virtually or in-person
Cons:
- It can sometimes be challenging to define objectives and outcomes to ensure clients leave your consultations fully satisfied
#5: Designer for a day
With this business model, you would allow clients to hire you for just one day. This business model is a great way to make design more accessible and provide more flexible services to fit the needs of your clients. If you’d like to learn more about the “designer for a day” business model, check out this guide from interior design business coach Nancy Ganzekaufer.
Pros:
- “Designer for a Day” can easily be added to other business models
Cons:
- Since projects are smaller, you’ll need to spend more time finding and securing clients
#6: Pop-up services
Pop-up designers offer on-demand, on-site services in various locations, such as conferences or trade shows. Sign up as an exhibitor at home building or remodeling events, for example, to connect with clients who are planning to create a new living space soon. Be ready to not only market your business but also provide full consultations, or paid advice, on the spot. Some brands are taking this business model a step further and offering pop-up events of their own.
Pros:
- Pop-up services are one of the less popular business models, giving your company a competitive edge
- You can sign clients on immediately, whether it be for on-site consultations or full-service project deposits
Cons:
- Pop-up services require in-person attendance and numerous booth supplies (think tables, tablecloths, signs, print-outs, and branded merchandise)
#7: Design partnerships
Do you love designing new builds? Consider partnering with a local home builder to bundle your services into each home purchase. These partnerships guarantee a steady workflow while delivering clients from your preferred niche straight to your inbox. Some other potential partners include real estate agents, contractors, and architects. To dig deeper into interior design partnerships, check out this guide from Pearl Collective.
Pros:
- Partnerships can help you create reliable income streams
Cons:
- Finding and forming partnerships can be challenging and time-consuming
#8: Memberships and subscriptions
Create regular income streams by offering monthly packages of design services. Provide enrolled clients with access to design resources and tutorials, personalized advice emails, or a set number of video consultations. This may be a good business model for designers who serve commercial home builders, real estate agents, or other professionals who need design support on a regular basis. You can learn more about offering memberships and subscriptions from this guide on recurring revenue business models for interior designers.
Pros:
- Memberships and subscriptions can produce residual income
- Monthly services create a more reliable income source
Cons:
- You’ll need tech and marketing skills (along with your design skills) to succeed with memberships and subscriptions
#9: Product sourcing
Do you love providing the perfect furniture for your clients’ homes? Consider getting paid for your product suggestions. You can make money from product sourcing via affiliate links or wholesaling. If you’re working on a design project with the purchaser, you can also generate income via product markups.
Pros:
- Product sourcing fits easily into other interior design business models
- You get paid for a task you’re already completing (choosing awesome products for your clients’ spaces)
Cons:
- Product sourcing isn’t a good business model on its own; it needs to be combined with something else.
- Sometimes, it can be difficult for clients to understand product mark-ups or your written requirements for using affiliate links
#10: Home staging
Home staging isn’t for everyone, with its consistent furniture deliveries, pick-ups, product storage, etc. However, it can be an excellent supplement to many interior design businesses. If you want more clients and to build relationships with real estate agents, try offering home staging. You can provide physical help or virtual consultations to guide realtors through staging houses on their own. Learn more about diversifying your design income by adding home staging to your business model here.
Pros:
- Home staging services are in high demand
- It can serve as a good starting point for new interior design businesses
- You’ll have opportunities to build relationships with realtors and home buyers
Cons:
- Home staging requires more physical labor than most design jobs
- You’ll have to create layouts with products you already own instead of sourcing the perfect pieces online
How to choose the right model
There are three main factors to consider when choosing your interior design business model: passion, talents, and demand. Start by ensuring your business revolves around what you enjoy doing and what you’re good at. Think about what motivates and inspires you — not what drains you. Then, make sure others have a need for those services.
Remember, it’s completely okay to combine different business models. In fact, your business might take off when you expand your offerings. For example, you could offer full-service, e-design, and consultations. You could work in partnerships and pop-up services. You could even take pieces from various models to create your own structure (i.e., a home staging subscription for real estate agents).
Ultimately, the right business model will be the one that feels good to you and generates the amount of income you feel comfortable with.
How to optimize your interior design business model
Once you’ve structured the foundation of your business offerings, it’s time to fine-tune. We recommend seeking out and implementing the best tools, coaches, and business strategies to ensure you’re maximizing your chosen model. Here are a few ideas:
Use an all-in-one platform to save time
There’s so much more to interior design than floor planning and product sourcing. The right software can reduce the time you spend on lead generation, client communication, finance management, and more. All-in-one tools like DesignFiles even let you tackle these tasks on the same platform you use to create your designs. Take the time you save with software and pour it back into the areas of your business model that need it most.
Add one model to your business at a time
Remember to take it slow when you start expanding your business model. Consider adding services individually, giving yourself time to adapt after each change.
By adding one model at a time, you’ll be able to see its effect on your business more clearly. For example, if you add e-design to your full-service business and your income suddenly doubles, it’s worth utilizing your time and effort to perfect your virtual services. If you go a few months without an e-design hit, even with proper planning and marketing, it may be time to remove the new service and replace it with another (i.e., try marketing paid consultations instead of e-design).
Test your pricing
Sometimes, it’s not the business model holding a design business back from reaching its full potential. Instead, it’s the pricing model. If your pricing could use some TLC, look through our package pricing guide.
If your prices are aligned with industry standards but you still feel like they aren’t working, take the time to examine them closely. If you’re working overtime without feeling financially satisfied, it may be time for a price increase. If you’re producing incredible interior designs but struggling to turn leads into clients, try a slightly lower figure to see if it makes a difference.
Once you have a good number, remember to reassess once per year. Most interior designers raise their rates annually, and there’s no reason you shouldn’t do the same.
Assess your client base
What type of clients have you served in the past year? Did they feel like your ideal clients? If not, who do you hope to serve? What can you change about your business model to make this shift in your clientele? For example, if you’re looking for higher-paying clients, you could begin offering full-service design work and source more luxury products.
Examine your competition
When your clients find your business, what other names are they considering? What do these businesses offer that you do not? Do your prices align? When your business model is made up of innovative, high-quality services at fair prices, you’ll likely secure more clients.
Hire help
If there are tasks that you don’t enjoy but that could benefit your business model, consider outsourcing them. Some tasks that could be outsourced to expand your business offerings include renderings, initial consultations, site visits, and installation. You can also consider outsourcing administrative tasks, such as accounting or marketing, to give you more time to focus on design.
Work with a coach
A good interior design business coach can help you create a business model, figure out your business strategy, narrow down your ideal client, and offer concrete advice for growing your business. Start with this list when you’re ready to hire a business coach. It’ll help you discover the industry’s top coaches as well as free resources from each.
Ready to grow your interior design business? Learn more about DesignFiles, the top-rated platform for solo and small firms.
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