How to start an interior design business

If you have a passion for creating beautiful and practical spaces and aspire to run your own start-up, you might consider starting an interior design business.

With the right skills, determination, and strategic planning, it can be a rewarding and viable business venture.

Demand spans homeowners improving their spaces, landlords and developers looking to add value, and businesses that want better workplaces and customer experiences.

From small single-room consultations to full project coordination, there are multiple ways to earn revenue at different price points.

But where do you start, and is it the right choice for you?

Read on as we explore how to launch an interior design start-up.

What is interior design?

Interior design involves creating interior spaces that are both visually appealing, functional and safe.

It can sometimes be confused with interior decoration, but these are two very different things:

• interior design involves spatial planning, structural changes, electrical layouts, and compliance with building codes
• interior decoration focuses on furnishing spaces, but does not typically include structural or architectural alterations.

Although an interior designer might consider decor in their work, they are typically focused on other areas, such as developing design concepts, coordinating with architects and suppliers, managing project timelines and complying with regulations.

They consider layout, circulation, light, acoustics, materials, building services, accessibility, and user behaviour.

Interior designers often specialise in certain spaces, such as residential (homes and flats), commercial (offices, retail spaces), hospitality (restaurants and hotels), or healthcare and educational environments.

What services do interior designers offer?

Typical services offered by interior designers include:

• space design – designing residential, commercial or hospitality spaces, typically in-person
• e-design/virtual consultations – remote design services delivered online
• styling – staging homes for sale or special events
• procurement – sourcing and supplying furniture, fixtures and materials
• project management – overseeing renovations and coordinating contractors.

Having a range of services could allow you to adapt your services to different markets and client needs.

What skills and education do you need to start an interior design business?

You don’t always need formal qualifications to become an interior designer, though they can help.

Many people choose to earn a degree or diploma in interior design from a reputable provider such as KLC School of Design, University of the Arts London, or the British Academy of Interior Design.

A solid understanding of building regulations and spatial planning could also be useful, although interior designers don’t need RIBA or ARB accreditation, as these are for architects.

You’ll also benefit from strong business and people skills, including:

• contract literacy
• organisational skills
• effective communication for building client relationships
• supplier management expertise
• budgeting experience
• problem-solving abilities to address design challenges.

Joining professional bodies such as the British Institute of Interior Design (BIID) or Society of British and International Interior Design (SBID), can boost your credibility and give you access to resources, training, and networking.

What equipment do you need? 

When you start an interior design business, you’ll need some basic tools to do the job well.

Some core equipment could include:

• computer or laptop – for design work, client presentations, and business administration
• design software – software such as AutoCAD or SketchUp for creating plans and visuals
• smartphone or camera – to capture before-and-after photos and document progress
• measuring tools – tape measures, laser distance measurers, and a spirit level for accurate site surveys
• sample kits – paint charts and material samples to show clients
• reliable transport – a car or van for visiting clients and transporting samples
• PC or tablet – a device for taking notes and recording client feedback.

Market research

Conducting thorough market research could provide a strong foundation for successfully launching your interior design business.

It helps you understand what clients want, who you’re competing with, and the opportunities for your business.

Start by defining your target customers, as this will shape your services and marketing strategy.

For example, you might focus on first-time homeowners, landlords, developers, smaller businesses seeking attractive workspaces, or hospitality venues needing eye-catching interiors.

Choosing a niche could help you stand out in a competitive market.

Research your competitors and their pricing, too.

You could do this by reviewing their websites and online portfolios, searching business directories, making discovery calls, and checking their social media.

Conducting market research could help you position your business clearly and grow with confidence.

How to decide on services and set pricing

Be clear about the services you offer as this can help you to set competitive and effective pricing.

Common services might include initial consultations, concept design to create an overall vision, and design development for detailed planning.

Some designers also handle styling and project coordination, overseeing installations and managing contractors.

As your business grows, you might expand your services based on client feedback and market trends.

Once you have chosen your range of services, you’ll need to decide how to price them.

Common options include:

• fixed-fee concept packages – set price for a specific area, such as designing one room
• hourly consulting – clients pay for your time by the hour, ideal for advice or small tasks
• percentage-of-project cost – a percentage fee of the overall budget, common for full-service projects
• day rate for on-site styling – a daily fee for styling or hands-on work at the site
• e-design/virtual packages – flat-fee pricing for remote design services delivered online.

Choose the pricing model that fits your niche, your clients, and the project type.

Being transparent and consistent in your pricing could help you build trust and attract the right clients.

When calculating rates, you may need to consider your desired annual income, overheads, taxes, and your billable working hours.

Choosing between fixed, hourly, or percentage-based pricing may depend on the project scope and client expectations.

For example, fixed fees may best suit defined packages, hourly rates could work well for advisory or flexible tasks, and percentage fees could fit large, multi-stage projects.

If you buy and manage items for clients, such as furniture and fabrics, explain your policy on fees and trade discounts. 

Some designers add a handling fee; others pass on part or all of the discount. 

Put this in your terms.

It's standard industry practice to request a deposit before work starts, then invoice at stages as the project progresses.

This approach could help with cashflow management and help to ensure you're paid fairly at each stage.

Working with suppliers

Strong relationships with suppliers could help you source quality materials, furnishings, and finishes that meet your design and budget requirements.

To get the most out of your supplier relationships, clearly communicate project timelines, budgets, and your requirements.

Paying invoices promptly could also help you maintain good relationships.

As a result, your suppliers may be more inclined to offer benefits like occasional discounts or early access to new stock.

You could also have multiple suppliers for the same items.

Having a larger network could help you deliver better value to clients with varying budgets.

Business plan

A simple, well-structured business plan can be essential for success.

This living document needs to include a wide range of key information, including business goals, your target market, an outline of your services and prices, marketing strategies, competitors, and financial projections.

Having a business plan could help to guide your day-to-day decisions and focus on your business goals.

It may also be essential if you need to secure funding.

Download our free business plan template.

Business structure and registrations

When launching an interior design start-up, choose a business structure, register your business, and check for any required permits or licences.

Choosing the right business structure

Three of the most common choices for business structures include:

• sole trader – simple to set up and run, with straightforward tax reporting. You’re personally liable for debts, so there’s more financial risk
• limited company – separate legal entity that can look more credible to clients and limits your personal liability. Requires more admin and tax filings.
• partnership/LLP – an LLP offers limited liability. You’ll need clear terms for roles, decision-making, and profit sharing.

Registration essentials

If you opt to operate as a sole trader, you must register with HMRC for self-assessment and pay income tax and National Insurance on profits.

Limited companies must register with Companies House, set up for corporation tax with HMRC, and file annual accounts.

At this point, you might also wish to consider your bookkeeping operations and open a business bank account.

The UK government's Making Tax Digital initiative means you may also need compatible accounting software for digital tax submissions.

Read our guide to business banking.

Licences and permits

In the UK, most interior design businesses do not need specific licences or permits for design-only work.

However, if you provide project management services, you may need to comply with the Construction (Design and Management) Regulations (CDM). 

This includes being aware of Risk Assessments and Method Statements (RAMS) when working on-site.

Before finalising your services, check whether any of them require additional compliance. 

Non-compliance with regulations can lead to various consequences.

What business insurance do I need?

Business insurance could protect your interior design business from unexpected costs.

Public liability insurance could be essential, covering you if a client or third party is injured or their property is damaged during your work, while professional indemnity insurance covers claims related to your designs, drawings, or advice.

If you employ staff, you are legally required to take out employers’ liability insurance.

You may also want to consider tools and equipment cover to protect them from theft or damage.

Other legal considerations to consider

There are several important legal considerations for interior designers.

Besides operating under the Construction (Design and Management) Regulations (CDM), you may also want to ensure that any products you specify or supply, such as soft furnishings, meet relevant UK safety and fire regulations.

If you decide to start a sustainable interior design business, you might want to be aware of any environmental standards and compliance when sourcing materials.

By staying up to date with these legal requirements, you could better protect your business and your clients.

Marketing and finding customers

Promoting your interior design business could be essential to help your target customers find you.

Consider marketing your start-up using a combination of online and offline tactics to promote your services:

• Professional website – create a portfolio website showcasing your projects, services, and testimonials
• Social media presence – share your work, tips, and behind-the-scenes content on platforms like Instagram, Pinterest, and LinkedIn
• Online directories – list your business on platforms such as Bark, Houzz, or local business directories
• Networking – attend trade shows or local business groups to meet potential clients and collaborators
• Email marketing – send newsletters with updates, design inspiration, or special offers to your mailing list
• Collaborations – partner with estate agents, builders, or suppliers for cross-referrals and joint promotions
• Printed materials – use business cards or flyers to leave a reminder of your services.

Using a mix of these approaches could help you reach a wider audience and establish a strong presence in the market.

Read more about how to create a marketing plan.

Step-by-step launch checklist

1. Choose niche and services

First, decide on the clients and project types you want to specialise in: residential, commercial, or hospitality.

Write a simple list of services that match your skills and local demand.

2. Set pricing

Create a pricing structure based on your costs, market rates, and income goals.

Use a mix if helpful – hourly consulting, fixed-fee packages, and percentage-of-project fees.

3. Create a business plan

Next, you could outline your business goals, competitors, financial projections, and service offerings in a business plan.

4. Decide business structure

Decide whether you want to operate as a sole trader, limited company, or partnership depending on your needs.

You will then need to register your start-up with the appropriate authorities to remain legally compliant.

5. Organise finances

At this point, you could open a business bank account to better organise your professional finances.

You may also wish to invest in bookkeeping or accounting software to track expenses and manage tax obligations.

6. Purchase insurance

To protect you and your business, you could purchase professional indemnity and public liability insurance.

If you hire staff or purchase more expensive equipment later on, you may need to arrange additional cover.

7. Build your online presence

Create a simple, professional website and set up your Google Business Profile. 

Having an online presence using social media can help generate leads.

8. Market your business

Using a variety of marketing techniques could improve your business's visibility and build a strong client base.

Networking, client referrals, attending events, and having a strong digital presence could all help.

What next?

Starting your own interior design business could be a rewarding way to turn your passion into a thriving career.

Being your own boss could allow you to find a better work-life balance while running a creative business.

If you require funding to help you launch your business, you might consider a Start Up Loan.

The government-backed personal loan has helped entrepreneurs across the UK make their business dreams a reality.

Find out more about Start Up Loans.