How to Start a Virtual Interior Designer Business

Start a virtual interior designer business by following these 10 steps:

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

We have put together this simple guide to starting your virtual interior designer 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 virtual interior designer business?

The costs of starting your virtual interior design business are going to vary depending on what you already have. If you have been doing interior design professionally for a while, you probably already have all your software and equipment. In this case, your startup costs will be minimal. You may need to pay for professional-level services such as Zoom and your preferred cloud storage, which can cost a few hundred dollars a year. But otherwise, the biggest cost will be time – time learning how to offer your services online.

However, if you are new to interior design, your costs will be quite a bit higher. Your various software needs (you will need multiple programs because no software does it all) can cost $500 to $2,000 or more. You may need to upgrade your computer to handle these programs, which can cost several thousand dollars more. And then you will need to pay for professional-level services on top of these costs.

What are the ongoing expenses for a virtual interior designer business?

The ongoing expenses for a virtual interior design business will include services like internet, phone, communications platforms (such as Zoom), and software subscriptions. These could add up to several thousand dollars a year. You will also need to update your equipment software  regularly.

Who is the target market?

Different virtual interior design businesses have different target markets. The most common target market is residential homeowners. However, it’s also possible to target businesses with interior design services. It all depends on where your interests lie and what your business goals are. Renters are also a potential target market, but they tend to have less disposable income to purchase full interior design packages – and fewer design opportunities, like applying new paint and other semi-permanent steps.

How does a virtual interior designer business make money?

A virtual interior design business makes money by charging clients for interior design services. The most common billing method is the flat fee. In the initial interview stage with a potential client, you agree to offer certain services in exchange for a flat fee. You can also consider other options, like charging hourly, depending on the type of work you are doing and what makes the most sense for you and your clients.

How much can you charge customers?

How much you charge your clients will vary based on many factors, such as the market you are serving – residential or commercial – and the types of services you are offering. However, you can look at what some of the more popular virtual interior design businesses are charging to get an idea of possible rates. For example, right now Havenly is charging $79 for a basic analysis of a room and design suggestions. For a collaborative session with a designer, the company charges $129 for a room.

How much profit can a virtual interior designer business make?

The profit a virtual interior design company can earn varies widely depending on the size of the company, the services offered, and the target market. During your first year, you may only make $25,000. After several years of building a solid client base, you could increase your profits to anywhere between $50,000 - $100,000. Of course, the more high paying clients you get and/or the bigger your client base, the more money you will make.

One nice thing about a virtual interior design business is that your overhead should be quite low because you can run the business out of your home office all by yourself.

How can you make your business more profitable?

There are multiple ways to increase the profits of a virtual interior design business. If you become well-known and respected, you can increase the number of clients coming to you for services. You could also find higher-paying markets for your services – such as corporate clients or wealthier clients. Another option is to find the niche or niches that reap the most profits and invest your energies here.

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 virtual interior designer 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.

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 virtual interior design business is right for entrepreneurs with an artistic eye and a passion for perfecting interior spaces. If you are already an interior designer, starting a virtual interior design business is an obvious choice. But even if you are just an aspiring designer, there’s no reason you can’t learn your trade and offer design services online.

What happens during a typical day at a virtual interior designer business?

A typical day at a virtual interior design business starts with a review of client needs and to-dos. Running an interior design business typically means working for multiple clients at once. That means you may focus on a single client’s tasks some days, or you might work on tasks for multiple clients in a day.

What are some skills and experiences that will help you build a successful virtual interior designer business?

The most obvious skills and experience that will benefit your business are interior design related. The more comfortable you are with interior design, the better your services will be. However, it’s also important to understand how to streamline your virtual services by using the right technology. Video chat and photo sharing are all technologies you need to be familiar with if you want to appear professional. While some of your clients may be tech-savvy, some won’t be. Gain proficiency with all of your tools – both design tools and communications tools – before offering services to clients.

What is the growth potential for a virtual interior designer business?

There is a lot of growth potential for a virtual interior design business. SInce your business operates primarily online, you are not limited to your local market. You could design interiors for clients globally, or at least across the country. Virtual interior design services are a fairly new thing, so this is just the beginning for the industry.