While they say location is everything in real estate, it’s a crucial aspect to consider as well when launching a business. In this article, we’ll walk you through 7 steps for how to choose the best location for an interior design business so you can explore all the key elements before making this big decision.
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Why is location so important for an interior design business owner?
Your business’ location can contribute lots of important benefits to your success. Knowing how to choose the best location for your interior design business can help you maximise profits, reach your ideal client, minimise your overhead costs and more. Let’s examine these further.
Demand
Wherever you decide to locate your interior design business needs to have enough demand for your services to support your operation. If you’re going to serve clients virtually or in different counties, then you may have more flexibility in terms of assessing client demand in various areas (both online and offline). Still, most interior designers will be serving clients in their local area and region, so it’s important to make sure your work is in high demand where you’ll be operating.
Competition
Another key factor to consider when deciding the best location for your interior business is competition. Are there lots of other interior design companies in the area? Any big or very established companies that might be challenging to compete with? If so, you may need to consider a less competitive location or focus on ways you can differentiate yourself as an interior design business serving that area.
Costs
From rent and utilities, to maintenance fees if you buy the property (landscaping, repairs, cleaning, etc.), business location costs can definitely add up. So, before you get your heart set on a certain spot for your business, think about how the various costs associated with that location will factor into your budget so you can protect your bottom line. Learn more about how much it costs to start an interior design business.
Government incentives
Small business owners can be eligible for local government incentives depending on where they operate. Definitely look into any of these helpful opportunities when searching for the right location.
How to pick a location for your interior design business
Now, let’s get into how to choose a location for interior design business ventures, based on the specific goals you want to achieve. Read on for 7 major factors to consider before deciding where you’ll operate.
1. Picture your long-term brand
The location of your business can have a big impact on your brand. Do you want to be in the centre of a large city or would working in a more remote setting cater more to your brand and style? Consider “who” you are as a business and how certain locations could help grow your brand the way you envision it versus others.
2. Determine the type of space you’ll need
Figuring out the kind of space you need for your interior design business is very much tied into your business goals and brand. Here are some questions and ideas to consider:
- Do you want a hands-on, personal approach to meetings with clients and exploring samples and materials? If so, then you’ll want to have enough space in your business location to hold client meetings and create a welcoming environment for them.
- Are you needing the storage space of a more industrial location away from everyday commercial and residential areas, or do you want to be right within a main business borough to attract foot traffic?
- Would you be able to operate your business from home, and if so, what kind of space adjustments might you need to make?
- Do you anticipate hiring an employee or employees? If so, would a particular location have the required space?
As an interior designer, you know that a lot can be achieved in almost any space, but make sure to think through all the practical needs you might have when starting your business and for when you grow. Explore where interior designers can work to learn more.
3. Define your budget
As we mentioned earlier, the costs associated with a location — from rent to property maintenance — can take up a significant portion of your budget. You also want to factor in your commute time if living farther away from where you work, as well as the security of the area and what insurance costs you might have. Clearly, certain areas will be more expensive than others but could be more profitable, while others may be less expensive but might not have the right clientele in the area. Before looking for your dream location, nail down your budget and make a plan to stick to it in your search.
4. Consider your network of suppliers and subs
Being close to the subcontractors and suppliers you do business with can really help with cutting down on time costs. And if your ideal business location is too far from your network, then you may have to rebuild brand-new working relationships, which can be challenging for any interior design business. Keep this in mind and how it could potentially affect your business when scouting locations.
5. Consider your network of existing and potential clients
If you’re already established as a freelancer in the area where you live, or have friends, family and existing clients nearby, it may be beneficial to remain close to where you have great word-of-mouth marketing potential. On the other hand, while heading into a newer area could be more challenging, it might be just the right place if that location can help achieve your brand vision and business goals. Weigh how much your current network factors into your plans for your business before deciding on a place.
6. Visualise your ideal client
Location and demographics go hand in hand. Certain types of clients are going to live in certain areas, as well as clients who can afford particular budgets for design projects — and these are very important factors to consider when choosing a location for your interior design business. Put yourself in the shoes of your ideal customer and brainstorm where they’re most likely to live and frequent to help determine your best locale. Check out our guide on How to Find Interior Design Clients to learn more.
7. Research market demand for your top areas
Last but not certainly least, you need to conduct in-depth research on the level of demand for an interior design business in the locations you’re considering. Is the market already overly saturated with other designers? Does the area have more established homeowners who are less inclined to redesign their homes?
Conclusion
With a vision of your long-term brand in mind, as well as essential factors like budget, the type of space you’ll need, your ideal client and more, you now know how to pick a location for your interior design business that will best suit your needs. For more tips on launching your business, check out “How to Register Your Interior Design Business” to learn more.
