Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Starting a home staging business is challenging, and requires diligence, preparation, and knowledge. This step-by-step guide has all the information and insight you need to get started on your entrepreneurial journey to a successful home staging business.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Starting a home staging business has pros and cons that you should consider before deciding if it’s right for you.
High Demand – Home staging is becoming increasingly common
Good Money – With few expenses you’ll have high margins
Fun! – If you’re creative, you’ll love your job
Increasing Investment – As your inventory grows it could get expensive
Business will fluctuate with the real estate market
Home staging industry trends
Staging is becoming more mainstream and is being done at all price points. While staging used to be done only if the home had an issue, such as a poor view, it’s now the norm, even in higher price ranges where you would expect the homes to already show well. The IAHSP study showed that 40% of homes in the $350,000 to $500,000 price range that sold in 2019 were staged, and in the $500,000 and up price range the number was over 20%.
Number of businesses – There are fewer than 10,000 professional home stagers worldwide, the IAHSP says.
Trends and challenges
Industry trends include:
Home sales are projected to increase nearly 7% in 2022, according to Realtor.com, which is good news for the home staging industry.
A National Association of Realtors (NAR) survey showed that 47% of agents said home staging shaped most buyers’ view of the home and 82% said staging made it easier for buyers to visualize the property as a future home.
Challenges in the industry also exist that include:
It’s becoming a very competitive industry because it’s very easy to get into the home staging business.
The long-term real estate market is hard to predict and varies by area, and the home staging industry is directly impacted by the home sales market.
Potential customer base – Around 7 million homeowners are seen to sell their homes in 2023.
Average prices – The average price to stage a home includes $300 to $600 for consultation, and $500 to $600 per month per room as long as the house is on the market.
How much does it cost to start a home staging business?
Startup costs for a home staging business range from about $3,500 to $14,000. Your main costs are the inventory of items that you’ll need for staging. You can start with some second-hand items and add more to your inventory later.
You’ll need a handful of items to successfully launch your home staging business. Here’s a list to get you started:
An assortment of furniture items
Home décor items
Setting up a business name and corportation
$150 - $200
Licenses and permits
$100 - $300
$100 - $300
Business cards and brochures
$200 - $300
$1,000 - $3,000
Initial Inventory of Staging Items
$2,000 - $10,000
$3,550 - $14,100
How much can you earn from a home staging business?
The average price to stage a home ranges from $300 to $600 for an initial design consultation, and $500 to $600 per month per room as long as the house is on the market. This is basically a fee for the staging itself and the rental of the staging items. Subtracting for item delivery and fuel costs, your profit margin should be about 80%.
In your first year or two, you could work from home and stage five homes per month, charging $400 for the initial consultation and $500 per month for an average of 2 months. This would bring you $84,000 in annual revenue and $67,200 in profit, assuming that 80% margin.
As your brand gains recognition, sales could climb to 20 houses per month. At this stage, you’d hire staff and rent a commercial space to store your inventory, reducing your margin to 40%. With annual revenue of $336,000, you’d still make a tidy profit of $134,400.
What barriers to entry are there?
There are a few barriers to entry for a home staging business. Your biggest challenges will be:
It will take time to develop strong relationships with realtors
You’ll need to locate quality items to use for staging
Related Business Ideas
If you’re still not sure whether this business idea is the right choice for you, here are some related business opportunities to help you on your path to entrepreneurial success.
Now that you know what’s involved in starting a home staging business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Why? Identify an opportunity
Research home staging businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a discount home staging company.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as luxury homes.
This could jumpstart your word-of-mouth marketing and attract clients right away.
What? Determine your products or services
You could offer a variety of staging packages for customers. You could offer:
Basic staging involves de-cluttering and rearranging furniture and other items
Staging that includes bringing in items to stage full rooms
Full staging involves bringing in contractors to paint and renovate
How much should you charge for home staging services?
The price for an initial design consultation ranges from $300 to $600. Pricing thereafter is $500-$600 per month for as long as the house is on the market. When starting small, your only ongoing costs should be having items delivered and placed in the house, and fuel costs.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.
Who? Identify your target market
Your target market will mainly be realtors who will give you referrals. You can find them on business-related sites like LinkedIn and on realty sites like Realtor.com.
Where? Choose your business premises
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office with space for storing your staging items. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Central location accessible via public transport
Ventilated and spacious, with good natural light
Flexible lease that can be extended as your business grows
Ready-to-use space with no major renovations or repairs needed
Step 3: Brainstorm a Home Staging Business Name
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
The name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “staging” or “home staging”, boosts SEO
Name should allow for expansion, for ex: “Stage Right Interiors” over “Eco-Friendly Staging Solutions” or “Luxury Home Staging”
Avoid location-based names that might hinder future expansion
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Step 4: Create a Home Staging Business Plan
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
Executive Summary: A brief overview outlining the essence of your home staging business, including its mission, vision, and key objectives.
Business Overview: A detailed description of your home staging business, highlighting its purpose, structure, and the unique value it brings to the market.
Product and Services: Clear delineation of the specific home staging services and products your business offers, emphasizing their quality and appeal.
Market Analysis: Thorough examination of the target market for your home staging services, including demographics, trends, and potential opportunities.
Competitive Analysis: Evaluation of competitors in the home staging industry, identifying strengths, weaknesses, and differentiators to position your business strategically.
Sales and Marketing: Strategic plan outlining how your home staging business will attract and retain clients, encompassing promotional activities, pricing strategies, and sales tactics.
Management Team: Introduction to the key individuals responsible for running and managing your home staging business, emphasizing their skills and expertise.
Operations Plan: A detailed blueprint outlining the day-to-day operations of your home staging business, covering workflow, logistics, and any necessary partnerships.
Financial Plan: Comprehensive financial projections for your home staging business, including startup costs, revenue forecasts, and break-even analysis.
Appendix: Supplementary materials, such as resumes, additional research data, or any other relevant documents supporting your home staging business plan.
If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer to create a professional business plan for you.
Step 5: Register Your Business
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Choose where to register your company
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to home staging.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your home staging will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company(LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Step 7: Fund your Business
Securing financing is your next step and there are plenty of ways to raise capital:
Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Personal: Self-fund your business via your savings or the sale of property or other assets.
SBA loans are one of your best options. The SBA offers an SB 7(a) loan for small businesses with favorable terms. Personal funding is also a good option since the startup costs are not high, and you won’t have to make payments on a loan.
Starting a home staging business requires obtaining a number of licenses and permits from local, state, and federal governments. Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. You could also check this SBA guide for your state’s requirements.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account. Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your home staging business as a sole proprietorship.
Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Step 10: Get Business Insurance
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation: Provides compensation to employees injured on the job.
Property: Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto: Protection for your company-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Essential software and tools
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.
Develop your website
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
For your home staging business, the marketing strategy should focus on showcasing your expertise in enhancing the appeal of properties for sale, your eye for design and detail, and the positive impact your staging can have on the sale process. Emphasize your ability to transform spaces, tailor designs to different property types, and your track record of successful sales.
Professional Branding: Your branding should convey elegance, professionalism, and an eye for design. This includes your logo, business cards, and portfolio of staged properties.
Direct Outreach: Network with real estate agents, property developers, and homeowners. Building relationships with these groups can lead to regular staging opportunities.
Digital Presence and Online Marketing
Professional Website and SEO: Develop a website that showcases your portfolio, outlines your services, and features client testimonials. Optimize your website for local SEO to rank for searches related to home staging, real estate staging, and property styling.
Social Media Engagement: Utilize platforms like Instagram and Pinterest for their visual focus to showcase your staging projects. Use Facebook and LinkedIn to share success stories and network with real estate professionals.
Content Marketing and Engagement
Interior Design Blog: Share informative content about home staging tips, interior design trends, and success stories. This establishes your expertise and keeps your website content fresh.
Email Newsletters: Regular newsletters can keep your network informed about recent projects, home staging tips, and design trends.
Video Tours: Create video content that showcases your staged properties, offering insights into your design process and the transformation achieved.
Experiential and In-Person Engagements
Open Houses and Showcases: Collaborate with real estate agents to host open houses for your staged properties, allowing potential clients to see your work firsthand.
Networking Events: Attend or host local networking events targeted toward the real estate industry to build relationships and showcase your services.
Collaborations and Community
Partnerships with Real Estate Agencies: Develop partnerships with real estate agencies to become their preferred staging service provider.
Collaborations with Local Furniture and Decor Stores: Work with local stores for furniture and decor, which can lead to mutual referrals and discounts.
Customer Relationship and Loyalty Programs
Referral Programs: Implement a referral program that rewards real estate agents or homeowners who refer new clients to your business.
Repeat Customer Discounts: Offer discounts or added services to repeat customers to build loyalty and encourage ongoing business relationships.
Promotions and Advertising
Targeted Local Advertising: Use local advertising in real estate publications, community newspapers, and online platforms to reach potential clients.
Showcase Before and After Results: Highlight the impact of your staging through before and after photos in your marketing materials and on social media.
Focus on USPs
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your home staging meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your home staging business could be:
Luxury home staging to sell your home for top dollar
Affordable home staging to get your home sold fast
Home staging based on your budget
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a home staging business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in home staging for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in home staging. You’ll probably generate new customers or find companies with which you could establish a partnership.
Step 12: Build Your Team
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a home staging business would include:
Designers – Assist with designing the staging of homes
Laborers – Deliver and move furniture and other items
General Manager – To schedule appointments, manage inventory, accounting
Marketing Lead – SEO strategies, social media, call on realtors
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Step 13: Run a Home Staging Business – Start Making Money!
If you’re interested in real estate and interior design, you’ll enjoy having a home staging business. You’ll also be performing a valuable service for your customers who will sell their homes faster and for more money. The key will be to develop relationships with realtors who will refer you to their home sellers, boosting income for all parties!
Starting your home staging business will be a win-win for everyone, especially when you see a healthy profit. Now that you know what the business involves, you’re ready to start designing your own successful home staging company.
Home Staging Business FAQs
How much can I charge for home staging services?
For a design consultation, you can charge between $300 to $600. You can charge additional monthly fees for the staging, usually $500-$600.
Is a home staging business profitable?
Even working by yourself as a home stager, if you just stage five homes a month, you can see annual profit of over $50,000. Profit margins are high because you’ll have few ongoing expenses.
How can I get clients for my home staging business?
While you can do marketing to try to reach homeowners, your best bet is to reach out to realtors who can give you referrals. They need home stagers to help sell homes faster and for more money.
What is the difference between home staging and decorating?
Home staging and decorating differ in their purpose and focus. Home staging involves preparing a home for sale by strategically arranging furniture, decluttering, and enhancing the overall appeal to attract potential buyers. It aims to create a neutral and inviting environment. Home decorating, on the other hand, focuses on personalizing a space based on the homeowner’s preferences and style, incorporating their tastes into the design choices.
How can I promote a home staging business?
To promote a home staging business, it is essential to establish a strong online presence. Create a professional website that showcases your portfolio and services. Utilize social media platforms to share before-and-after photos, provide home staging tips, and engage with potential clients. Network with real estate professionals, attend industry events, and offer your expertise through presentations or workshops.
What additional services can I offer for my home staging business to increase revenue?
To increase revenue in your home staging business, consider offering additional services such as consultation services, where you provide expert advice on home staging techniques and design recommendations. You can also offer vacant staging services, where you provide furniture and accessories to transform empty properties.
How to Start a Home Staging Business
Decide if the Business Is Right for You
Hone Your Idea
Brainstorm a Home Staging Business Name
Create a Home Staging Business Plan
Register Your Business
Register for Taxes
Fund your Business
Apply for Licenses/Permits
Open a Business Bank Account
Get Business Insurance
Prepare to Launch
Build Your Team
Run a Home Staging Business - Start Making Money!
Home Staging Business FAQs
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