Home Staging Business Plan Sample
The name of the business will be Designed by Dahlia, LLC. Its vision is to become the leading home staging business in New York. Its mission is to professionally prepare houses for the quickest sale and best prices for the owners. The enterprise will operate as a limited liability company and will be owned by one person. Home staging will be the core product but the firm will also deal with other services such as sales facilitations, client guidance, and drafting of sales contracts. The home staging industry in the U.S. is in the development stages and competition is largely based on product diversification and differentiation. Most of operators are small firms that serve specific areas. Since home staging is a professional service, it can only be expanded to a certain extent. It requires understanding of what is happening in the real estate market to offer customers with the services they expect. Subsequently, Designed by Dahlia plans to use social media, direct marketing, and referrals to reach the target customers. The initial capital required to start the business will be $140,600, which will be raised through a mix of personal contribution of $40,600 and debt financing of $100,000.
Vision and Mission Statement
The vision of Designed by Dahlia, LLC is to become the leading home staging business in New York.
The mission is to professionally prepare houses for the quickest sale and best prices for their owners.
Designed by Dahlia will operate within the legal framework of the United States. The core offering of the firm will be home staging, which will fundamentally involve preparing private houses for sale in the mainstream property market. Customers are expected to get value for their money by making their property more appealing to numerous potential buyers, boosting the prices and offloading the property swiftly. In addition, the business will be offering other services related to exchange of property such as facilitating sales by guiding buyers through the sale process, drafting contracts and leases on behalf of clients, and listing property for sale. In future, the enterprise might consider adding other services in its portfolio such as organizing home staging exhibition, screening buyers’ ability to purchase property, and real estate consultations. The development of all company’s products and services will be aimed at simplifying the process of buying and selling property for homeowners who have inadequate knowledge of the real estate market in the region. As the owner of this venture, I would like to see people realize their dreams of owning homes with minimal procedural hurdles.
Home staging is one of the most difficult industries to assign a value since it is not possible to tell how much a property would have sold without the service. However, there is sufficient evidence from property agents to show that home staging makes a property to attract more potential buyers than if it had not. The latest statistics from a survey done by the National Association of Realtors (NAR) has revealed some interesting facts about this growing industry. First, staging has become a common element of the larger real estate industry as property owners and agents try to find innovative ways of getting the highest price for homes and houses (Home Staging Resources, 2017). Some of the notable trends that were recognized in the NAR survey are the increased importance of staging of outdoor spaces and the growth in the value of staging every room of a house.
The survey also sought to find out how sellers’ agents perceived the role of home staging in influencing the value of the property. It was established that 29 percent of agents believe that home staging increases the value of the property by 6-20 percent. It was also found that 58 percent think that home staging raises the price of a house or home by 1-20 percent. The survey also sought the view of buyers and found that 97 percent believe that home staging somewhat influences their perception of the property, while 77 percent think that it makes it easier to visualize the property. Home staging was also noted to make 27 percent of buyers overlook property faults and persuade 40 percent to be more willing to visit a home that they have seen online. Home buyers attach value to every room in a house and the statistic from NAR illustrated the importance of staging the entire property (Home Staging Resources, 2017). However, the living room and master bedroom were found to be at the top of the buyer’s list of home staging with 86 percent and 84 percent respectively.
As mentioned, home staging is still in the development stages in the American real estate market. It is estimated that 38 percent of sellers’ agents home-stage all the property of their clients before listing them for sale. 14 percent utilize home staging services only when they realize that it may be difficult to sell the property. In addition, the seller is ordinarily responsible for the cost of home staging where they pay 25 percent before the property is listed. It has also been found that the service reduces significantly the time it takes to find a buyer. 39 percent of the sellers’ agents who participated in the NAR survey said that staging significantly reduced the amount of time the property was in the market (National Association of Realtors, 2017). Therefore, home staging has been received positively by bother sellers and buyers in the American real estate market and this trend is likely to continue.
The market for home staging business is highly fragmented with hundreds of small businesses scattered across the United States. Competition is most likely to come from firms that operate within the target market of New York. Some of the leading home stagers in the city include Kelly Designs, Hall Details, OrganizDwell, Upstaged, Rivertown Staging & Design, and Gold Staging and Redesign. Of course, there are dozens of other firms operating in various districts of New York state. Kelly Designs has been running home staging business in New York for over 20 years. They are specialists in interior designs, decorations, space redesigns, dwellings upgrading, and real estate staging. Some of the areas that this firm serves include Bridgeport, Easton, Norwalk, and many others. Hall Details is also a prominent home stager in New York that offers a wide range of services such as property arrangement, uncluttering, pressure washing, painting, landscaping, carpentry, and others. Their operations reach Astoria, Belleville, Fort Lee, Hoboken, and a dozen other areas (Houzz, 2019). Evidently, home stagers in New York compete on the basis of the diversity of services they can offer to their clients. Subsequently, everyone wants to outsmart their rivals by making their offering as unique as possible.
OrganizeDwell deals majorly with color consulting, downsizing, furniture assortment, holiday decoration, home staging, space preparation, and others. Some of the areas it has presence include Edgewater, Fort lee, Jersey City, New York city, and many other. The owner of the venture is a member of the Real Estate Staging Association and was ranked the best home stage in Berge Country in 2015 by Bergen Magazine. Upstaged describe themselves as professional experts in luxury residential visual marketing. They claim that they sell every item they touch. They are involved in interior design services such as color consulting, furniture choice, holiday beautification, home staging, and others. Upstaged are found in major towns in New York such as Allenhurst, Asbury Park, Fair Haven, Monmouth Beach , and Spring Lake (Houzz, 2019). They have also received a number of awards such as Active Rain and MCAR Affiliate.
Rivertowns Staging & Design seeks to create attractive and successful home staging that pulls the highest number of buyers. They focus on presenting to the buyers the positive features of a home while minimizing the desirable aspects. Hence, they strive to create a strong emotional connection with the buyers through color consulting, decluttering, downsizing, and home staging. The business operations spans from Bronxville through New City to Valley Cotta. They have also received few awards. Gold Staging and Redesign has been in operation for over 15 years and its owner, Marlene Gold is reputed for using her unique knowledge of psychology to make decorations that naturally attract buyers. Since its inception, the firm is said to have staged real estate valued over $70 million with a hundreds of satisfied clients. Its operations are majorly in Ardsley, New York, and Rye Brook. The home stager had been featured in Westchester Home and Westchester Magazine (Houzz, 2019). New York has many home staging businesses that compete on the basis of product diversity and professionalism of services. However, there is no single firm that can claim to dominate the market considering the size limitation associated with home staging business.
Home staging is largely a professional service that requires creativity and vast knowledge of the latest trends in the real estate market. I have developed comprehensive strategy that will not only prepare me for success but also enable me to be among the best home stagers in New York. The first step in my business strategy is to learn about the various decorating styles used in homes. Great home stagers understand different styles of decoration and know how to flexibly apply them for the best results. Second, I will acquire furniture and décor that I will be renting to clients. Clients often sell houses that they have already removed their furniture and it is imperative for a great home stager to be able to offer quick solutions by filling any décor and furniture gaps that may be there (Headen, 2018). Research shows that furnished spaces sell faster than empty spaces as the potential buyers are impressed by seeing how the house will look like with furniture.
The third key element of my business strategy is to acquire knowledge on organization and space-saving. People value space and they look for home stagers who can help them optimally utilize the spaces they have. Thus, I will strive to develop a wide range of techniques and resources that I can use to help my clients declutter and de-personalize their spaces. The fourth aspect of the business strategy shall be to develop a team that will work with me in the business. I plan to start with two employees who will help me with most of the handiwork such as painting and minor repairs. It would not be prudent for me to wait until I get my first client to start looking for the staff as the hiring process may take long (Dumpe, 2015). I will also consult human resource management firms in the region to create a list of experts available in the areas where the firm will be operating.
The fourth step in the business strategy will be to draft a service contract that will determine the kind of relationship the enterprise will have with the clients. For example, furniture renting services will be dictated by the terms and conditions stipulating in the contract. It will be important to specify with clients how damages and theft of items will be addressed (Trojanek, 2015). Other important aspects of the business strategy include establishing networks with real estate agents and brokers in New York and development of marketing strategies to create awareness among the target customers.
The primary target market for Designed by Dahlia is real estate agents and brokers. They are the ones who are mostly involved in selling property for their clients. Hence, they are uniquely positioned to provide the new firm with reliable flow of business as long as they believe in the value they will be getting. However, Designed by Dahlia will not solely rely on these customer segments for all its business. It will market its services directly to homeowners through social media marketing, direct marketing, and referrals. Social media networks are inexpensive tools that can be used to reach the homeowners. Once the business is launched, a Facebook account will be opened that will be used to connect with potential customers. Facebook will be the principal social media platform for the new enterprise due to its popularity, visibility, and capacity to generate exposure. In addition, it will be easy to share photos of projects that the firm will have undertaken (Misirlis & Vlachopoulou, 2018). Moreover, I will ask my friends and family to share the message about the business and encourage their friends to connect through the platform.
Direct marketing will also be an important element of Design by Dahlia’s marketing strategy. It will involve going out to the field to meet homeowners in different types of gathering, such as churches and community meetings. I will be looking for opportunities to participate in a wide range of events that I believe some homeowners will be attending, such as charity walks, street cleaning, and many others. I believe that interacting frequently with members of communities in the areas I plan to serve will improve the visibility of the business and become the first choice of many homeowners who will be looking for a home stager (Najman, Menudin & Laidey, 2019). If I learn that someone is selling or planning to sell a home, I will visit them and try to explain to them the importance of incorporating the services of a home stager in the getting the best price.
Referrals are also part of the marketing strategy as homeowners are most likely to trust the word of mouth from their family and friends. Thus, the marketing activities will involve encouraging satisfied clients to share their experiences with others (Scarborough & Cornwall, 2016). Of course, referrals will be built over time as the company must serve a number of customers and ensure that they are happy (Lekhanya, 2014). Therefore, it will be very important to provide the first customers with superior offerings so that they can act as the ambassadors of Design by Dahlia brand. The achievement of this goal will be guided by the understanding that every job done will also serve as a marketing opportunity. Moreover, marketing strategy will include building strong relationship with key players in the real estate industry.
I am planning to start a home staging business in New York and I would like you to provide me with part of the startup capital. My budget is $140,600, which will be used to finance a number of items as shown in the table below.
Particulars Cost in $
Permits and Licenses 2,000
Purchase of Inventory 25,000
Graphic Design 2,500
Computer Software 3,000
Office Expenses 500
Operational Costs 100,000
Website launch 2,600
As the only investor in the new venture, I will raise $40,600 from personal savings. Hence, I will need a loan of $100,000 to be able to launch the business. My investment in the business will largely be used to obtain the necessary licenses and permits, acquire the necessary software, paying initial rent for the office, and equipping the office with relevant machines and furniture. The money I am requesting from you will largely be used to finance operations for the first three months as revenues from sales grow to cover major expenses. If the loan is extended to me, I plan to repay it in one year at an interest rate of 7 percent. It means that I will be paying $8,653 per month. The estimated average sales revenue over this period is $20,000 per month for the first six months and $25,000 for the remaining six months, which will be used as shown in the cash flow projection below.All free term paper examples and essay samples you can find online are plagiarized. Don't use them as your own academic papers! If you need original term papers, research papers or essays of the highest quality, don't hesitate to contact professional academic writing services like EssayLib. Here you can order your custom paper written according to your specifications. A team of highly qualified writers are available 24/7 for immediate help:
Dumpe, M. (2015). Online marketing issues of real estate companies: A case of Latvia. Baltic Journal of Real Estate Economics and Construction Management, 3(1), 130-139.
Home Staging Resource (2017). 2017 staging stats. Retrieved from https://www.homestagingresources.com/2017-home-staging-statistics/
Houzz (2019). New York: NY home stagers. Retrieved from https://www.houzz.com/professionals/home-staging/new-york
Headen, J. (April 27, 2018). Eight tips for starting a house staging business. GoDaddy. Retrieved from https://www.godaddy.com/garage/8-tips-for-starting-a-house-staging-business/
Lekhanya, L. M. (2014). The impact of viral marketing on corporate brand recognition. International Business & Economics Research Journal, 13(2), 213-230.
Misirlis, N., & Vlachopoulou, M. (2018). Social media metrics and analytics in marketing – S3M: A mapping literature review. International Journal of Information Management, 28, 270-276.
Najman, N., Menudin, H., & Laidey, N. (2019). Factors affecting customers’ perception toward service quality of grab. International Journal of Recent Technology and Engineering, 7(5), 55-62.
National Association of Realtors (2017). 2017 profile of home staging. Retrieved from https://www.nar.realtor/sites/default/files/migration_files/reports/2017/2017-profile-of-home-staging-07-06-2017.pdf
Scarborough, N. M., & Cornwall, J. R. (2016). Essentials of Entrepreneurship and Small Business Management (8th ed.). Boston: Pearson.
Trojanek, M. (2015). Strategic municipal real estate management. Journal of International Studies, 8(2), 9-17.