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How to Start a Home Staging Business

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Published on January 3, 2022

Updated on September 22, 2022

How to Start a Home Staging Business

Disclaimer: Step by Step Business’ content is for informational and educational purposes only. It’s not intended to be a substitute for professional legal or tax advice. All of our articles are thoroughly reviewed and fact-checked by our editorial team. Read our editorial guidelines for more details.

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Fast Facts

Investment range

$3,550 - $14,100

Revenue potential

$84,000 - $336,000 p.a.

Time to build

1 – 3 months

Profit potential

$67,200 - $134,400 p.a.

Industry trend

Growing

Commitment

Flexible

How to Start a Home Staging Business

Homes that are staged, or prepared in advance to boost appeal to the buyer, sell for up to 20% more than non-staged homes, and more than 80% of real estate agents find it easier to sell a home that’s been staged. With demand growing, home staging can be a lucrative business, especially for creative types who are able to partner with real estate agents. 

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.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a home staging business has pros and cons that you should consider before deciding if it’s right for you.

Pros

  • 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

Cons

  • 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%.

Industry size and growth

  • Industry size and past growth – An estimated 5 million properties were sold in the US in 2019, and about a million were staged, according to the International Association of Home Staging Professionals (IAHSP).[1]https://d3oaxt0bwkjnjn.cloudfront.net/documents/home-staging-industry-statistics-2020-min.pdf
  • Growth forecast – The number of home sales is projected to increase to 7 million in 2023. [2]https://www.statista.com/statistics/275156/total-home-sales-in-the-united-states-from-2009/ Home staging is growing in popularity because it works. Staged homes sell as much as 30 times faster than non-staged homes, and for up to 20% more, according to the IAHSP.
  • Number of businesses – There are fewer than 10,000 professional home stagers worldwide, the IAHSP says. 
home staging industry size and growth

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. 
home staging Trends and Challenges

Consumer spending

  • 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.
home staging business consumer spending

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
  • Ladder
  • Dollies
Start-up CostsBallpark RangeAverage
Setting up a business name and corportation$150 - $200$175
Licenses and permits$100 - $300$200
Insurance$100 - $300$200
Business cards and brochures$200 - $300$250
Website setup$1,000 - $3,000$2,000
Initial Inventory of Staging Items$2,000 - $10,000$6,000
Total$3,550 - $14,100$8,825

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.

home staging business earnings forecast

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

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Step 2: Hone Your Idea

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. 

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
home staging business idea rating

Step 3: Brainstorm a 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: “Jim’s Bakery” over “Jim’s Cookies”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

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 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: Brief overview of the entire business plan; should be written after the plan is complete.
  • Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
  • Product and Services: Describe your offerings in detail.
  • Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis.
  • Competitive Analysis: Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
  • Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
  • Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
  • Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
  • Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
  • Appendix: Include any additional financial or business-related documents.

If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer on Fiverr 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. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state

Choose your business structure

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 ZenBusiness’s 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. 

Step 6: Register for Taxes

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.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

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.

Step 8: Apply for Licenses/Permits

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.

For peace of mind and to save time, we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state, and provide them to you to make sure you’re fully compliant.

Step 9: Open a Business Bank Account

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.

Step 11: Prepare to Launch

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.  

You can use industry-specific software, such as Staging Assistant, StageForce, or Good Shuffle Pro, to manage your inventory, quotes, contracts, team, and billing.

Accounting

  • Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero
  • 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.

Marketing

Some of your business will come from the casual online visitors, but still, you should invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness. 

Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products: 

  • Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area. 
  • Instagram: Same benefits as Facebook but with different target audiences.
  • Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Schedule Consultation Now”. This can sharply increase purchases. 
  • Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers. 

Kickstart Marketing

Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include: 

  • Flyering – Distribute flyers in your neighborhood and at industry events. 
  • In-Person Sales – Offer your services to realtors.
  • Post a video – Post a video about your product. Try using humor and maybe it will go viral!
  • Email marketing/newsletter – Send regular emails to customers and prospects and realtors. Make them personal. 
  • Start a blog – Start a blog and post regularly. Change up your content and share on multiple sites.
  • Seek out referrals – Offer incentives to generate customer referrals to new clients. 
  • Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
  • Pay–per-click marketing – Use Google AdWords to come up faster from searches. Research your keywords first.
  • Make a podcast – This allows you to make a personal connection with your customers. Here are some interesting podcasts for small business owners.
  • Case studies – Post case studies about how your staging led to a big sale! 

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. 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. 

You can create your own website using services like WordPress, Wix, or Squarespace. 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.

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
unique selling proposition

Networking

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: 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 does it cost to start a home staging business?

You can start a home staging business for about $3,500 if you buy second-hand furniture and other items to use for staging. You can add new items and additional items as your business grows.

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.