Starting your own home decor business can be a fun and financially rewarding way to dabble in interior decorating. There are several do-it-from-home direct sales companies that focus on decorating and design. Starting with one of these companies can be a good way for beginners to break into the decor sales business.
Another benefit of starting a home decor business is its high-profit margin. You can keep your profit margins at least 20-25%. Also, you have a wide variety of niches to choose from when it comes to selling home decor online.
Create a Strong Business Plan
That is, come up with a company idea for home décor. To begin with, make a list of the essential topics you want to include in your business plan. Your business plan should be product-centric, starting with design and ending with marketing to increase sales.
Most interior decorators and their firms have a gross profit margin of 35-40%. It is also a rule of thumb for all interior design services to budget for 20-30% net profit. A good budget, based on your business model, appears to be 3-12% of your gross sales revenue.
Well, statistics say that home decor is a perfect niche for your business. In fact, that's the way it is.
HIGH POINT — Millennials and Generation Z are driving home furnishings purchases, with nearly 70% of all purchases in the second half of 2022 expected to be made by those two groups, according to new, exclusive Consumer Insights Now research.
New York, May 12, 2023 (GLOBE NEWSWIRE) -- In 2022, the global home decor market was worth USD 672.2 billion. By 2032, it is expected to reach USD 949 billion, growing at a CAGR of 3.6%.
Market Overview
The global home decor market size was valued at USD 665,917.5 million in 2021. It is projected to reach USD 939,637.2 million by 2030, growing at a CAGR of 3.9% during the forecast period (2022-2030).
With a net profit profit margin above 30%, your business is incredibly efficient at generating sales while keeping all expenses low. Nicely done!
The profit margins on home decor ranges from 20% - 45% depend on the price of the product. If you're looking to get quickly popular, I suggest you start with the online store and promote it on offline as well. Keep the margins low initially so that you can attract more buyers.
According to the United States Department of Labor, the average interior designer salary is $57,060 per year, which comes up to roughly $27,43 per hour. The salaries vary by state, with District of Columbia, Arkansas and New York ranking in the top 3 top paying states in the country for this occupation.
Real Deals Home Decor notes that the typical startup money needed to furnish your business with the necessary home decor items is somewhere between $25,000 and $60,000. They note that the general rule of thumb is about $20,000 for every 1,000 feet of showroom space you will be using for display purposes.
Revenue in the Home Décor Segment amounts to US$128.70bn in 2023. The market is expected to grow annually by 5.33% (CAGR 2023-2027). In global comparison, most revenue is generated in the United States (US$33,390.00m in 2023).
Home Décor – short for home decoration, interior décor encompasses items and you guessed it, decorations, that make your home look nice. This can include a range of items such as furniture, art, plants, and accessories.
What is a Good Profit Margin? You may be asking yourself, “what is a good profit margin?” A good margin will vary considerably by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low.
The profit margin for small businesses depend on the size and nature of the business. But in general, a healthy profit margin for a small business tends to range anywhere between 7% to 10%. Keep in mind, though, that certain businesses may see lower margins, such as retail or food-related companies.
If you have a low profit margin, this means that the selling price you chose for a good isn't much higher than its cost. If your company has a low profit margin, you're likely in a very competitive industry, offering products that aren't highly unique.
The home decor market is expected to increase from USD 964.9 billion in 2023 to USD 1341.1 billion by 2032, at a compound annual growth rate (CAGR) of 18.20% between 2023 and 2032.
An interior decorating business most likely targets females with an interest in home décor. Based on the style and types of products you offer, the target age and income level may vary.
Home décor is important because it can affect everything from our self-perception to our confidence and productivity. So, go ahead, buy that new throw pillow or piece of art if it makes you happy. You're not treating yourself, you're creating an environment in which you can be the best version of yourself!
The US Home Decor Market is estimated to be USD 137.25 Bn in 2022 and is expected to reach USD 168.19 Bn by 2027, growing at a CAGR of 4.15%. The US Home Decor Market is segmented based on Products, Price, Distribution Channel, Location and Geography.
In summary, dropship home decor is an attractive option for you to start your business. With its ease of getting started, evergreen market, broad range of products, and low competition, it is a smart choice for you to enter the world of eCommerce.