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If you don’t plan and track your interior design budget properly, you're setting yourself up for failure.
When we developed our strategy pack for interior designers, we saw a lot of designers struggling with finances and project planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial client projects.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your interior design business's finances around and set you on the path to success!
Get the budget tracker tailored for interior designers
Most interior designers don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for interior designers
Here is an example of a (very) detailed budget for an interior design business, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office space | $2,500 | $30,000 |
| Electricity | Power consumption for office and design studio | $300 | $3,600 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $50 | $600 |
| Insurance | Property and liability insurance | $200 | $2,400 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Lead Designer | 1 | $5,000 | $5,000 | $60,000 |
| Junior Designer | 2 | $3,000 | $6,000 | $72,000 |
| Administrative Assistant | 1 | $2,500 | $2,500 | $30,000 |
| Project Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Design Materials & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Design Software | Licenses for design software (e.g., AutoCAD, SketchUp) | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Sample Materials | Fabric swatches, paint samples, etc. | $200 | $2,400 |
| Furniture & Decor | Items for client presentations and office decor | $500 | $6,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, magazine ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of office equipment | $100 | $1,200 |
| Professional Development | Workshops, courses, and certifications | $200 | $2,400 |
| Licenses & Permits | Business licenses, professional memberships | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Client Entertainment | Meals, gifts, and other client-related expenses | $150 | $1,800 |
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We have studied the strategies of the best interior designers in the world. Replicate them now!
What are the biggest expenses for an interior designer?
Be mindful of these pitfalls. Here are five major costs every interior designer needs to consider, along with some tips on how to manage them effectively.
- Material and furnishing costsThese can consume a significant portion of your budget. You're dealing with items that vary in price based on quality, availability, and trends. To keep these costs under control, focus on sourcing materials wisely, negotiating better prices with suppliers, and minimizing waste. It's easy to overspend by choosing high-end materials that don't necessarily add enough value to the project.
- Staff and subcontractor expensesYour team is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled professionals to deliver quality work and meet deadlines. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be cautious not to underpay or overwork your team, as this can lead to high turnover and subpar results.
- Office rent and utilitiesPrime office locations come with high rent, but they can attract more clients. Utilities like electricity, internet, and water are necessary but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient office equipment and lighting. Overspending often occurs when you choose a location that's too large or too luxurious for your needs.
- Marketing and client acquisitionYou need to promote your services, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Tools and software costsThis includes everything from design software to project management tools. These are expensive because quality tools and regular updates are crucial for efficient operations and client satisfaction. Optimize by investing in reliable, user-friendly software and maintaining it regularly to avoid costly disruptions. You can overspend by going for the latest high-tech tools you don't really need.
How to spend less with your interior design service?
Here are practical tips to help you, as an interior designer, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Material Costs | Source materials from local suppliers and consider using reclaimed or upcycled items to reduce costs. |
| Labor Costs | Hire freelance contractors for specific tasks and use project management software to streamline workflows. |
| Utilities | Install energy-efficient lighting and smart thermostats in your office and project sites. |
| Marketing | Run social media campaigns showcasing your projects and collaborate with home decor influencers for free exposure. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital design tools and project management systems. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of design tools and office equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider a co-working space to reduce overhead costs. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Client Meetings | Use virtual meeting tools to reduce travel costs and time. |
| Software | Choose design software that offers essential features with affordable subscription plans and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep up with industry trends. |
| Waste Management | Implement a waste tracking system to minimize material waste and donate excess materials to local charities. |
| Technology | Invest in multi-functional design tools and utilize project management software for efficient workflow. |
| Sample Management | Partner with suppliers for sample libraries and consider digital samples to reduce physical storage needs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan site visits efficiently to maximize time and reduce fuel costs. |
| Inventory Management | Use inventory management software to track materials and reduce over-ordering. |
| Pest Control | Schedule regular pest control services for your office and project sites to maintain cleanliness standards. |
| Client Entertainment | Use virtual tours and 3D renderings to showcase designs and host local events during off-peak times. |
| Uniforms | Choose durable, easy-to-clean attire for site visits and offer staff a stipend for maintenance instead of using an external service. |
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Expenses that are just useless for an interior designer
Yes, some expenses for your interior design business are just unnecessary. They don't contribute to increasing your client base or improving the quality of your services.
| Interior Design Expense | Reason It's Useless |
|---|---|
| Overly Lavish Showroom | A high-end showroom can be a financial drain without necessarily attracting more clients. |
| Premium Design Software | Unless you are working on highly specialized projects, mid-range software often suffices. |
| Excessive Material Samples | Having too many samples increases storage costs and can overwhelm clients. |
| High-End Office Furniture | Luxury office furniture is not always appreciated by clients and can be a significant expense. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your interior design business. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the client experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for design magazines or online platforms often go unnoticed by clients. |
| Exclusive Materials | Using rare materials can inflate costs and complicate supply chains. |
| Costly Client Gifts | High-end gifts are not always appreciated by clients and can be a significant expense. |
| Custom Printed Stationery | Personalized stationery is a minor detail that most clients overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Office Supplies | Most clients are content with standard office supplies, making expensive options unnecessary. |
| Extra Company Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Office Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Office Decor | Elaborate office decor is often ignored by clients and adds to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by clients. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Portfolio Designs | Frequently redesigning portfolios is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Presentation Equipment | Specialized presentation equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your interior design service!
Managing a budget for an interior design business when funds are tight can feel overwhelming. It's like being trapped in a situation where any unexpected expense can throw your plans off course.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your designs.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of interior design businesses just like yours. Get them now!
Make your interior design service more profitable
We have studied the strategies of the best interior designers in the world. All their tactics are explained in our pack!
