How to Start a Real Estate Staging Business

Start a Real Estate Staging Business by following these 10 steps:

1. Plan your Real Estate Staging Business
2. Form your Real Estate Staging Business into a Legal Entity
3. Register your Real Estate Staging Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Real Estate Staging Business
6. Get the Necessary Permits & Licenses for your Real Estate Staging Business
7. Get Real Estate Staging Business Insurance
8. Define your Real Estate Staging Business Brand
9. Create your Real Estate Staging Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Real Estate Staging Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Real Estate Staging Business?

This opportunity has relatively low initial expenses. You don't really need a storefront, specialized equipment, or a college degree. However, optional training costs around $200 to $1,800. You'll probably spend the most cash on home decor products. Some stagers shop at CB2, IKEA, or Cost Plus World Market, according to Apartment Therapy. Dollar stores provide an inexpensive source of basic glass and ceramic items.

What are the ongoing expenses for a Real Estate Staging Business?

There's always a risk that you could accidentally damage homeowners' belongings, so it's wise to carry general liability insurance. Other potential hazards range from car accidents to employee injuries. You may also benefit from commercial auto, workers' compensation, property, and/or professional liability coverage. Many stagers spend over $1,700 per year on insurance.

If you need a storage locker for furniture, you'll probably pay $70 to $180 per month (depending on the size). This type of business periodically needs to purchase new decor items, and high-quality small furnishings often fetch prices ranging from $20 to $150. Other costs include local advertising, travel, and office products.

Who is the target market?

Busy homeowners and real estate agents seek professional stagers when they try to find buyers for valuable or hard-to-sell properties. If they own high-end homes, real estate investors and landlords may also use this service.

How does a Real Estate Staging Business make money?

Different stagers charge flat prices, hourly rates, or subscription fees for their services. HomeAdvisor reports that the majority of these professionals bill clients for consultations in addition to monthly fees. Business tends to slow down in the winter when fewer people buy homes.

How much can you charge customers?

Pricing depends on the specific services you provide, the level of demand for local properties, and whether or not a home is vacant. Clients pay less if you only rearrange existing items without adding anything new. Rates vary based on the size and number of rooms as well. Consider offering a "bulk rate" for valuable long-term clients like landlords, agents, and investors.

You can find a wide range of prices and estimates. Stagers charge around $450 initially and $550 per month, according to Realtor.com. HomeAdvisor reports that customers spend about $500 to $2,000 total, and some pay an average hourly rate of $75. A few professionals earn up to $20,000 to stage vast homes worth millions of dollars, according to Forbes.

How much profit can a Real Estate Staging Business make?

High fees and comparatively low expenses frequently produce a high profit margin. Many staging experts attain margins of around 25%. Introductory consultations yield the greatest profits. Stagers don't need to supply any furnishings when they consult with new clients, so transportation is the only immediate cost.

How can you make your business more profitable?

Strive to maximize your tax deductions. Among other things, potentially deductible costs include internet access, insurance, decor products, postal stamps, and printer ink. Keep a log of all miles traveled by car. If you don't succeed in partnering with local realty agencies, you could focus on for-sale-by-owner properties and generate revenue by offering extra services like photography or online advertising. Stagers can use several other strategies to reduce costs and gain additional income:

• Buy picture frames in bulk, and put scenic photos in them.
• Make the most of retailers' loyalty programs and discounts.
• Use a credit or debit card that rewards you for spending.
• Offer to resell furnishings to clients who praise them.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Real Estate Staging Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a real estate staging business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

A professional stager knows what today's buyers desire in a home. You might thrive in this business if you dislike clutter and enjoy exploring different dwellings. Stagers benefit from planning, communication, and shopping skills. It helps if you know how to find stylish furnishings at affordable prices. You should live in an area with a fairly prosperous real estate market as well.

What happens during a typical day at a Real Estate Staging Business?

Home stagers need to focus on promotion and business networking when they're not busy serving clients. If someone calls, you can start by discussing how you would stage a specific residence. You'll travel to homes and rearrange the contents of their rooms. The process may entail adding new furnishings after you hide personal items like family photos. This occupation also involves buying decor products, such as rugs, wall art, clocks, mirrors, and lamps. You might purchase larger furnishings when serving clients with vacant homes.

What are some skills and experiences that will help you build a successful Real Estate Staging Business?

You can begin learning by reading home decor catalogs and magazines. The process of selling your own house provides beneficial experiences. You could also gain useful knowledge while working as a real estate agent or interior decorator. Stagers normally don't face any special licensing requirements, but you might gain credibility by earning a certification or completing an educational course. While traditional classes remain available, most programs use remote learning. The Motley Fool provides a helpful overview.

What is the growth potential for a Real Estate Staging Business?

Expert staging has become increasingly popular. Most firms concentrate on serving the surrounding area, but it's certainly possible to expand beyond your local area. Meridith Baer Home stages thousands of opulent dwellings throughout the nation, according to Forbes. It employs more than 250 people and owns several warehouses full of furnishings. You could also create a franchise if you become highly successful. The most well-known franchisor in this sector is called Showhomes. It has been in business for over 30 years and works with franchisees across the United States.