Welcome Home Staging

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Executive Summary

Welcome Home Staging is a small home staging company in Arizona. We prepare homes for sale by advising sellers on what to move, clean and fix, and by placing furniture, art and decor from our own inventory in vacant and occupied homes so buyers can picture themselves living there. Our clients are real estate agents, home sellers and builders who want a home to look its best in photos and in person.

The problem is simple. Many homes sit on the market longer than they should because rooms are cluttered, empty or hard to picture. Sellers do not know where to start, and agents do not have the time. We give a clear plan, a fast setup and a written price.

Here is what our numbers show. We expect sales of $147,950 in Year 1, growing to $468,900 by Year 5 as we add stagers, grow our furniture inventory and win repeat agents. We expect a profit of about $14,300 in Year 1, growing to about $59,800 by Year 5.

We need $75,000 in total. That covers $48,400 in startup costs (starter furniture and decor inventory, a moving kit, a computer and camera, the storage deposit, insurance and branding) and a cash cushion for the first months. I am putting in $15,000 of my own money, and I am asking for a $40,000 SBA loan plus $20,000 from an investor or partner.

I am Renee Collins, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Welcome Home Staging will be a limited liability company (LLC) in Arizona, owned by Renee Collins. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. A staged home should feel clean, warm and honest. We do not hide problems, we do not promise a sale, and we treat every home as if it were our own.

What we offer:
- Staging consultations. A walk-through with a written plan for decluttering, rearranging, cleaning, painting and simple repairs.
- Vacant home staging. We bring furniture, rugs, lamps, art and linens to a vacant home and set it up for photos and showings.
- Occupied home staging and decluttering. We work with the seller's own furniture, adding a few pieces and accessories.
- Extra rental months. A flat monthly fee when a home stays on the market longer than the first period.
- Later, as we grow: staging for builders, short-term rentals and model homes. The numbers in this plan do not include these.

The space. We rent a small climate-controlled storage unit or shared warehouse bay for furniture and decor. We budget $9,600 a year ($800 a month) in Year 1, and the plan assumes this grows about 22% a year as inventory grows.

Licenses and insurance. Home staging is not licensed in most states, but I will confirm Arizona's rules and call ourselves home stagers, not interior designers, unless the state allows it. We will register the LLC with the state, get a business license and an EIN (the business tax number from the IRS, free at irs.gov), and register for sales tax if it applies to rental or sales of furniture. We will carry general liability insurance, insurance for our inventory while it is in storage, in transit and in clients' homes, and workers' compensation once we hire. We will not pay or accept referral fees in a way that breaks real estate rules, and I will check with an attorney before offering any referral arrangement.

Where things stand today. This plan is my starting point. Before I buy inventory, I will talk with at least 10 real estate agents, tour 5 recently staged homes, and line up at least 3 agents who say they would book a staging. I will start with a small inventory and add pieces as bookings come in. If I cannot, I will change the plan before I spend money.

Problem & Opportunity

Selling a home is stressful, and presentation matters.

1. Cluttered rooms. Sellers live in their homes and often cannot see how cluttered a room looks to a buyer.
2. Empty rooms are hard to picture. Buyers may not understand how large a room is or how it could be used.
3. Photos matter. Most buyers see a home online first, and flat, dark or messy photos lose interest.
4. Agents have no time. Many agents give advice but do not have time to move furniture, buy decor or arrange rooms.
5. Sellers do not know where to start. They are not sure what to fix, paint or move, or how much to spend.
6. Costs are unclear. Some stagers quote a vague price and sellers worry about extra charges.

How we will find out if people want this before we spend money. I will talk with at least 10 agents and ask how often they recommend staging, what they pay and what they dislike about stagers. I will tour 5 staged homes to see the work and the price. Our Year 1 plan needs about 150 consultations, about 34 vacant projects and about 22 occupied projects, so I will ask at least 3 agents for a written letter of interest.

Products & Services

What we sell. We have four services, each priced simply.

1. Staging consultations. The plan assumes an average of about $175 per consultation in Year 1, rising to about $195 by Year 5, with about $12 per consultation in travel and printing. We expect about 150 consultations in Year 1, growing to about 380 a year by Year 5.
2. Vacant home staging projects. The plan assumes an average of about $2,400 per project in Year 1, rising to about $2,700, covering the setup, the first rental period and removal. Moving, delivery, cleaning and wear on furniture cost about $620 per project. We expect about 34 projects in Year 1, growing to about 94.
3. Occupied home staging and decluttering. The plan assumes about $950 per project in Year 1, rising to about $1,050, with about $140 per project in direct costs. We expect about 22 projects in Year 1, growing to about 52.
4. Extra rental months. The plan assumes about $480 per month in Year 1, rising to about $540, with about $60 per month in direct costs. We expect about 40 extra months in Year 1, growing to about 160.

Our prices. A written price for every project that lists the rooms, the length of the rental, the fee for extra months, the cost of damage or loss and the date the furniture will be picked up. The price does not change without the client's approval.

How it works for a client:
1. The client books a consultation, and we walk through the home and take photos.
2. We send a written plan and a price for the staging.
3. The client signs a short agreement that covers the fee, the rental term, damage and access.
4. We deliver, set up and photograph the home, often in one day.
5. When the home sells or the term ends, we pick up the furniture and decor.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for moving, cleaning, travel and wear on furniture. Our plan shows about 81% in Year 1. That money pays the team, storage, insurance and other bills. Team pay is counted separately, under payroll. The furniture we buy to start is counted as startup equipment.

Market Analysis

Who will use us:
- Real estate agents who recommend staging to their sellers.
- Home sellers who want to prepare a home before listing it.
- Builders and developers with new or spec homes that need a furnished look.
- Investors and owners of vacant properties.

Where we will work. Homes within about 30 minutes of the storage space. Delivery and setup are often done in one day, so keeping the work close matters.

How we sized the plan. Our Year 1 plan needs about 34 vacant projects and about 22 occupied projects, or a little over one project a week. That is a small number, which one stager can handle. I will check the real numbers by talking to agents and builders before spending money.

Season. Spring and early summer are the busiest for home sales, and winter is slower. The numbers show a yearly average. We plan ahead by booking agents early for the spring market and adding pieces to inventory in winter.

We are careful on purpose. The plan assumes a small starting inventory so we can grow with demand.

Competitive Landscape

Other choices sellers and agents have:
1. Do it yourself. It costs less, but the seller may not see the home as a buyer does.
2. Agents who stage with the seller's own furniture. Helpful, but limited for vacant homes.
3. Large staging companies. Professional, with large inventories, but often more expensive and slower to book.
4. Other small staging companies and designers, who compete for the same agents.
5. Furniture rental stores, which offer pieces but not design or setup.

How we will win clients: a written plan, a clear price, fast setup, a tidy inventory, clean and well-kept furniture, and reliable pickup. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How clients will find us.
- Agent relationships. Visit real estate offices, offer a free 15-minute walkthrough for a listing, and share before and after photos.
- A simple website with a gallery of staged homes, a price list and a booking form.
- Social media. Photos and short videos of setups, posted with the seller's and agent's permission.
- Local partnerships. Builders, painters, movers, cleaners and photographers who meet sellers.
- A referral thank-you. An agent who refers a listing gets a small discount on her next project, within the rules for real estate professionals.

Marketing budget. About $6,000 a year in Year 1 (about $500 a month), growing about 10% a year. The logo, website and portfolio photos are paid for from startup costs ($3,800).

Operations Plan

How the business runs day to day.

The inventory. A starter set of sofas, beds, tables, rugs, lamps, art and linens that fit most homes, stored in a clean, dry, secure space and tracked in a simple list.

A normal project:
1. Consultation. Walk through the home, take photos and measurements, and write the plan and price.
2. Prepare. Choose the inventory for each room, check it for damage, clean it and load the truck.
3. Setup. Arrive on time, protect floors and walls, place furniture, hang art and add accessories, then photograph the home.
4. Pickup. When the home sells or the term ends, collect everything, clean it, repair any damage and return it to storage.

Caring for furniture. Every piece is cleaned and checked before and after each job. We do not use furniture that is damaged or has been in a home with pests or mold, and we wash linens between jobs.

Safety. Lifting training, two people for heavy pieces, tie-downs on the truck, no work on ladders without a spotter, and respect for sellers' property and privacy. We do not move or store the seller's valuables.

Equipment. About $38,000 to start: starter furniture inventory ($24,000), lamps, linens and decor ($7,000), a moving dolly, tools and a steamer ($2,200), and a laptop, camera and software ($4,800). We set aside about $12,000 a year after that to add inventory as bookings grow, and the plan increases that amount each year.

Running costs in Year 1: storage space about $9,600, delivery truck fuel and maintenance about $4,800, marketing, photos and samples about $6,000, insurance about $3,000, furniture cleaning, repairs and replacement about $3,000, and accounting, software and legal about $2,400. That is $28,800 in all.

Payment. Sellers and agents pay a deposit to book and the balance when the furniture is set up. Some agents pay when the home closes, so the plan assumes some money is owed to us for a few weeks, and we keep a cushion of cash to cover the wait.

Management & Organization

Who runs the business. Renee Collins, owner and lead stager. As owner I will meet clients, design the staging, manage inventory, train stagers and handle the money side of the business. I plan to pay myself $40,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Staging assistant and mover (part-time): one in Year 1, two in Years 2 and 3 and three in Years 4 and 5, at about $20,000 a year each (about 20 hours a week).
- Stager (full-time): none in Year 1, one in Year 2, two in Years 3 and 4 and three in Year 5, at about $36,000 a year each.
- Scheduling coordinator (part-time): one starting in Year 3, at about $20,000 a year.

We hire people who are reliable, careful with other people's homes and have an eye for design, train everyone on the same setup, cleaning and damage steps, and run background checks (with the person's permission and following the law) on anyone who enters clients' homes.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands inventory and in-home work, a business attorney for a one-time review of the staging agreement, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (3 to 5 months ahead): talk with at least 10 agents and line up at least 3 who would book a staging, tour 5 staged homes, register the LLC and get an EIN, open a business bank account, get insurance quotes, buy a small starter inventory, rent a storage unit, build a portfolio from staged practice rooms, and have an attorney review the staging agreement. Buy more inventory only after the agent bookings are in hand.
- Year 1: open with the owner and one part-time assistant, with about 34 vacant projects and about 22 occupied projects, $147,950 in sales and a profit of about $14,300.
- Year 2: add our first full-time stager, with about 52 vacant projects, $238,425 in sales and a profit of about $22,900.
- Year 3: two full-time stagers and a scheduling coordinator, with about 68 vacant projects, $320,600 in sales and a profit of about $24,800.
- Year 4: three assistants and a larger inventory, with about 82 vacant projects, $397,875 in sales and a profit of about $51,200.
- Year 5: grow to about 94 vacant projects a year with a team of eight, $468,900 in sales and a profit of about $59,800.
Growth depends on winning repeat agents, keeping furniture in good shape and timing purchases to bookings, so treat the later years as goals, not promises.

What we check every week: projects booked, days from consultation to setup, damage and replacement cost, extra rental months, agent referrals, reviews and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $75,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $48,400, listed item by item in the Startup Costs section: $24,000 for starter inventory of sofas, beds, tables, rugs and art, $7,000 for lamps, linens, accessories and decor, $2,200 for moving dolly, tools, straps and steamer, $4,800 for laptop, camera and software setup, $1,600 for storage unit deposit and first month, $600 for business license and local permits, $1,900 for legal and accounting setup, $3,800 for portfolio photos, logo and website, $1,600 for first insurance payment, and $900 for cleaning and packing supplies.
- A cash cushion of about $22,200: about 3 months of running costs. Our cash stays above zero in every year of the plan, but lenders still want a cushion in the bank for slow weeks and surprises. They call this "working capital."
- Together that comes to about $70,600, rounded up to the nearest $500: $71,000.
We are raising $4,000 more than that, $75,000 in all, to leave extra room for loan payments in the first years and for adding furniture as bookings grow.

Where the money comes from:
- My own money: $15,000.
- Amount requested as a loan: $40,000.
- From an investor or partner: $20,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. SBA Microloans, which go up to $50,000 through nonprofit lenders, are another place to ask; their repayment times are usually shorter, so the monthly payment would be higher. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a profit of about $14,300 in Year 1, growing to about $59,800 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $42,200, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $591 a month (about $7,096 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with consultations and occupied-home staging using the seller's own furniture and a small kit of accessories, with no furniture inventory. Startup can be roughly $4,000 to $7,000 for accessories, a camera, insurance and a simple website. Get your own quotes.
- Phase 2: once agents are asking for vacant staging, rent a storage unit, buy a first set of furniture and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your staging agreement, price list and a sample written plan.
- Photos of your work and letters from agents who would use you.
- Quotes for the starter inventory, and a quote for the storage unit.
- Proof of insurance for inventory and in-home work, or quotes.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Staging Consultations: about $175 per consultation in Year 1, rising to $195; about $12 per consultation in direct costs, rising to $14; about 150 consultations in Year 1, growing to 380.
- Vacant Home Staging Projects: about $2,400 per project in Year 1, rising to $2,700; about $620 per project in direct costs, rising to $700; about 34 projects in Year 1, growing to 94.
- Occupied Home Staging and Decluttering: about $950 per project in Year 1, rising to $1,050; about $140 per project in direct costs, rising to $160; about 22 projects in Year 1, growing to 52.
- Extra Rental Months After the First: about $480 per month in Year 1, rising to $540; about $60 per month in direct costs, rising to $68; about 40 months in Year 1, growing to 160.
- Pay: Owner / Lead Stager $40,000 (1/1/1/1/1); Staging Assistant and Mover (part-time) $20,000 (1/2/2/3/3); Stager (full-time) $36,000 (0/1/2/2/3); Scheduling Coordinator (part-time) $20,000 (0/0/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: storage space for furniture and decor $9,600, delivery truck fuel and maintenance $4,800, marketing, photos and samples $6,000, business and inventory insurance $3,000, furniture cleaning, repairs and replacement $3,000, and accounting, software & legal $2,400. These grow between 5% and 22% a year as the business grows.
- Clients pay a deposit to book, but some agents and sellers pay the balance when the home closes. At the end of Year 1 about $14,795 (10% of Year 1 sales) is owed to us by agents and sellers.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs