Interior Design Studio

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Warm Room Interiors is an interior design studio serving homeowners, renters and small businesses in our city and the nearby suburbs. We plan and style rooms, choose furniture and finishes and manage the buying and delivery, so clients get a space that works and looks good. Most people know what they like but not how to put a room together, and mistakes with furniture and finishes are expensive. Many designers are costly or hard to reach, and some clients feel talked down to. We will win clients by listening, working within their budget, explaining choices clearly and managing every detail. Here is what our numbers show. We expect sales of about $57,000 in Year 1, growing to about $227,400 by Year 5 as we add a design assistant and more furnishings projects. We expect losses of about $24,300 in Year 1, $34,700 in Year 2 and $2,300 in Year 3 while we build our customer base, then a profit from Year 4 (about $23,100), growing to about $52,900 by Year 5. We need $90,500 in total. That covers $9,500 in startup costs (a laptop and design software, samples, a camera, insurance, vendor accounts, contracts and a portfolio website) and a cash cushion of about three months of bills. I am putting in $10,000 of my own money, and I am asking for $64,500 as an SBA 7(a) loan, plus $16,000 from an investor or partner. I will work from home and at clients' homes, so no studio lease is needed on day one. I am Sandra Rodriguez, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Warm Room Interiors will be a limited liability company (LLC) in Ohio, owned by Sandra Rodriguez. We will work from my home office, with meetings at clients' homes and cafes. What we believe. Listen first, respect the budget, explain every choice and finish what we start. What we offer:
- Room design and space planning. - Furniture, lighting and finishes selection. - Furnishings procurement, delivery and installation. - Color consultations and styling. - Design for small businesses, offices and short-term rentals. Licenses and insurance. Interior design rules vary. Some states regulate the title "interior designer" or require registration for certain work, and most places require a business license. Selling furniture and finishes requires a resale certificate for sales tax. Our state does not license residential interior designers, and I will register for a resale certificate for furniture purchases. We use written contracts with a clear scope, fee and deposit, carry liability and errors and omissions insurance and, for work that changes walls, wiring or plumbing, we work with licensed contractors and follow building codes. Where things stand today. I have designed rooms for six friends and family members, I have studied interior design and I have a portfolio of past work.

Problem & Opportunity

Homeowners and small businesses near us want well-designed spaces without the stress. 1. Overwhelmed. Choosing furniture, color and layout is hard. 2. Costly mistakes. Furniture that does not fit or match is hard to return. 3. High prices. Many designers charge more than clients expect. 4. No follow-through. Some designers disappear after the plan is made. How we know people want this. Six friends and family members paid me for design help last year, and a real estate agent asked about staging for her listings.

Products & Services

What we sell. 1. Design fees. A fee for planning and designing a space. Our plan assumes an average of about $3,500 per project in Year 1, rising to about $4,000 by Year 5. Direct costs, such as renderings and samples, run about $400 per project. We expect about 12 projects in Year 1, growing to about 42 a year by Year 5. 2. Furnishings and procurement markup. When we buy furniture and finishes for clients, we earn a markup. Our plan assumes an average of about $1,500 per project in Year 1, rising to about $1,650, with the items costing us about $850. We expect about 10 projects with purchasing in Year 1, growing to about 36. Our prices. Room design from $1,500. Whole-home design from $6,000. Hourly consultation $125. Furnishings at cost plus 25%. How it works for the customer:
1. A free first conversation about the space, the style and the budget. 2. A written proposal with the scope, fee and timeline, and a deposit. 3. A design plan with layouts, finishes and a shopping list. 4. Ordering, delivery, installation and a final walk-through. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 77% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Homeowners who want help with a room or a whole house. - People moving into a new home who need to furnish it. - Small business owners with offices, shops and restaurants. - Short-term rental owners who want a stylish, durable space. Where we will work. Clients in our city and the nearby suburbs and nearby, with a focus first on three neighborhoods and two nearby suburbs within 25 minutes of my home. Season. Design work is busiest in spring and fall, and before the holidays. We use quieter months for planning, portfolio work and vendor relationships. Our plan is careful on purpose. About 12 design projects in Year 1 is a workload one designer can handle well, with extra help later.

Competitive Landscape

Other choices customers have:
1. Larger design firms. Studio Nova (a made-up name) charges about $3,500 for a room design; known for high-end work, but expensive for most homeowners. 2. Furniture stores that offer free design with purchases. Convenient, but limited to their products. 3. Online design services. Cheap, but without a person in your home. How we will win customers: a listening approach, clear fees, honest budgets, trusted vendors and follow-through.

Marketing & Sales Strategy

How people will find us. - A portfolio website with before-and-after photos, and a free Google business listing. - Social media posts of real projects, with permission. - Relationships with real estate agents, builders, contractors and stagers. - Asking every happy client for a review and a referral. - Free mini design consultations at community events. Marketing budget. About $8,000 a year for marketing and portfolio work. The brand, portfolio website and business cards are paid for from startup costs.

Operations Plan

How the business runs day to day. Clients and projects. The owner meets clients, designs spaces, orders furnishings and manages installation. In Year 1 the owner works alone, with trusted vendors and contractors. We add one design assistant and project coordinator in Year 2. Each project has a contract, a design plan, an order list with deposits and a delivery schedule. Equipment. About $4,000 to start: laptop and design software; tablet and measuring tools; camera for portfolio photos; fabric and finish sample library. We set aside about $1,500 to $2,000 a year for repairs and replacements. Upkeep. Sample libraries and vendor contacts kept up to date, project files organized and photos taken of finished work. Safety. Safe handling of furniture and fixtures, careful measuring and planning for fit and safe clearances, and use of licensed contractors for any work that affects building systems. Running costs in Year 1: marketing and portfolio about $8,000, software and sourcing tools about $3,000, admin and insurance about $4,000. Scheduling and billing. An online proposal and invoicing system, with a deposit at signing, progress payments and furnishings paid up front.

Management & Organization

Who runs the business. Sandra Rodriguez, owner. As owner I will design, meet clients, order furnishings, manage installations, market the studio and handle the money side of the business. I plan to pay myself $44,000 a year in salary in Year 1. Crew. Design assistants and project coordinators at about $38,000 a year each (or part-time pay): none in Year 1, one in Year 2, one in Year 3, one in Year 4 and one in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Thomas Carter serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: register the business, get insurance, open trade accounts, build the portfolio website and book the first clients. Target start: March 2027. - First year: complete about 12 design projects and 10 purchasing projects, for about $57,000 in sales. - Year 2: add a design assistant and project coordinator, about $93,700 in sales, and a loss of about $34,700. - Years 3 to 5: grow to one design assistant and project coordinator and about $227,400 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: inquiries, projects on schedule, orders and deliveries, invoices paid, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $90,500. The Funding Need Calculator in this plan shows a minimum, and we plan to raise a little more than that so the loan payments in the early years are also covered. The calculator's number adds up: - Startup costs of $9,500, listed item by item in the Startup Costs section (about $4,000 for the laptop, software, tablet, camera and sample library, $300 for the business license and resale certificate, $1,700 for insurance and vendor trade accounts, $1,000 for entity formation, contracts and bookkeeping, and $2,500 for the brand, portfolio website and business cards). - A cash cushion of about $81,000: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $74,500 (rounded up to the nearest $500), which is the minimum the calculator shows. We are planning for $90,500, which adds room for the early loan payments. Where the money comes from: - My own money: $10,000. - Amount requested: $64,500. - From an investor or partner: $16,000. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender, plus investor or partner money, which is not paid back with interest but gives that person a share of the business. How we will pay it back. We expect losses of about $24,300 in Year 1, $34,700 in Year 2 and $2,300 in Year 3 while we build our customer base, then a profit from Year 4 (about $23,100), growing to about $52,900 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $954 a month are already included in our cash flow. What we are offering the lender: our equipment and my personal guarantee 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 a few small design projects and consultations on evenings and weekends, using your laptop and phone, while keeping your current job. Startup can be under $1,500. - Phase 2: once you have more clients than you can handle part-time, go full time, open more vendor accounts 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 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 portfolio: photos and before-and-after examples. - A sample proposal and contract. - A list of preferred vendors and references, if you have them. 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):
- Design Fees: about $3,500 per project in Year 1, rising to $4,000; about $400 per project in direct costs; about 12 projects in Year 1, growing to 42. - Furnishings & Procurement Markup: about $1,500 per project in Year 1, rising to $1,650; about $850 per project in direct costs; about 10 projects in Year 1, growing to 36. - Owner salary: $44,000 a year. Crew: $38,000 a year each, from none in Year 1 to one in Year 5. - Other yearly costs in Year 1: marketing and portfolio about $8,000, software and sourcing tools about $3,000, admin and insurance about $4,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs