This is the first part of the several that constitute a tutorial on how to draft your interior design business plan.
The first part of your Interior design business plan will be the executive summary.
An executive summary is an excerpt of the vital facts and figures that constitute your business plan. And although this is the last thing to be drafted, we nevertheless will give a snapshot of a typical Interior design business plan.
The executive summary is the crux of the entire business plan restricted to 500-1000 words. A typical executive summary for an interior designing firm would look like:
“Psalms interiors is a proposed venture of Psalms LLC and will provide complete interior designing solutions to residential & commercial segment customers in and around Houston, TX, U.S.A.
The company has identified a market size comprising of X numbers of prospective residential customers in the first year of its operation. The later half of the second year will be targeted at Boutique stores, bed & breakfast and hotels in the area. It is proposed to use the first half of the third year to consolidate its existing clientele base. The second half of the third year is proposed to target new industries specially the art galleries in and around Texas. The company further proposes to introduce its own line of furniture by the end of the fourth year.
The company has identified and targeted around 7000 families based out of Houston (out of the population of 0.8 million households) in the first year of its operation and it expects to undertake at least 36 projects during this period.
It is proposed to generate business leads by establish business relation with key people in the identified market and through referrals generated through existing customer base. Online marketing is another major promotional tool that is proposed to be deployed. As per data from Google, there are more than 3000 searches per month from people looking for interior designers in Houston. This highly targeted prospective customer segment will be tapped with a professionally designed website with provisions for taking online quotations.
To cater to a wide variation in clients tastes and preferences, Psalms Interiors has identified and built up a supply chain comprising of 7 furniture suppliers, 3 flooring material suppliers, 19 suppliers of handicrafts and decorative pieces and 1 each suppliers of paint, draperies and wall hangings.
Psalms interiors expects to generate a revenue of USD83,000 and a net profit of USD7000 in its first year of operations. (For details -see Financial section – P.no.26 )
The business plan that follows has laid down a detailed analysis of all the foreseeable aspects of this proposed interior designing business for the next 4 years of its operations bases on realistic assumptions that are backed by evidences wherever possible. “
So that was a sample of what should an executive summary of how your interior design business plan should look like. This should have given you some idea of the contents of your executive summary.
Remember that there are no hard and fast rules for drafting the executive summary of an interior design business plan. If you think there are other salients points that should be mentioned here, you can include them in the executive summary segment.
Mistakes to be avoided when drafting the executive summary of your business plan
1) Do not draft the executive summary in the beginning. The most proper content of the executive summary will come out when it is written after the entire business plan has been formulated.
2) Do not write general remarks in your executive summary – wherever possible – quote figures and numbers. Each statement should preferably be backed by an evidence or else it should refer to the section of the business plan, where it has been elaborated.
The next segment of an interior decoration or design business plan delves into the company information This has been discussed next.