The interior design services market in the United States is expanding due to the high demand of recreation and smart co-working spaces. This interior design business plan sample will help new business owners to meet growing market demands. Our business plan writers created this sample for a company launching in the City of Chicago.
Executive Summary
Smart Spaces Designs (herein also referred to as “SS Designs” or “the company”) was incorporated in the Province of British Columbia on December 22, 2019 by Founder and Director of Designer, Ms. Donna Simmons. Headquartered in downtown Chicago, Illinois, U.S.A.; SS Designs provides premium interior architecture and design services to an array of commercial clients.
In 2007 Ms. Donna Simmons set out on a lifelong journey to pursue her professional passion, Interior Architecture and Interior Design. Over the past 15 years, Ms. Donna Simmons has amassed a plethora of experience as a leading interior architect and designer in Dubai, successfully completing a multitude of high profile projects, and being recognized as “Top Interior Designer” by International Design Awards in 2020.
Today, SS Designs operates as a lean enterprise, climbing the ranks with a focus on unparalleled quality and creativity. This plan is strategic in nature, distinguishing the company’s market position, growth plan, marketing strategy, operational process, and financial projections. The following is intended to be read in detail by SS Designs team members, and stakeholders. Over time the contents will be reviewed and revised, making way for the next layer of corporate strategy.
The interior architecture and design industries are primarily driven by the real estate sector. As such, the company is focused on positioning in areas well known for strong real estate markets including Chicago, Illinois, U.S.A.; Dubai, UAE and eventually Riyadh, SA. With fruitful connections in Dubai and Riyadh, Ms. Donna Simmons seeks to grow a versatile team in Chicago and service future operations in the middle east from U.S.A.. SS Designs is focused on positioning as a premium service provider and plans to compliment this position with superior service. More specifically, the company will provide industry-leading communications such as same day responses, same week proposals, and a detailed client discovery process.
This will all be achieved by curating a talented, respected and supported internal team. Ms. Donna Simmons cherises the hard working and diverse team that has been established to date, and is motivated to provide a promising, challenging and rewarding home for all SS Designs team members. New clients will be generated by continued referrals through the SS Designs ecosystem. Additionally, a digital marketing campaign will commence in August 2022 to further the company’s brand on social media, organic search and to begin structuring a lead capture and reporting process. This will all only be possible if the SS Designs team is capable of being self-motivated, executing on each team member’s specific duties, and coming together weekly and monthly to share wins, challenges and new ideas for growth. Ms. Donna Simmons intends to develop a corporate culture which inspires positivity, openness and mutual drive to provide the highest standards of quality and service to each client.
Business Overview
Smart Spaces Designs is a boutique Interior Architecture and Design services firm based in beautiful Chicago, Illinois, U.S.A. The company operates with four team members, while planning to expand the volume of staff consistently over the next five years. SS Designs prides itself on offering high-quality architecture and design, founded on a pursuit to develop innovative and custom fitted solutions. Ms. Donna Simmons believes that each project is unique and deserves its own individual approach; therefore, the company ensures that each project provides guests with a purposeful experience of their respective space.
Mission Statement
Our mission is to be innovators in the interior architectural space for all Chicago consumers.
Vision Statement
Our vision is to leave each client with a space that is practical, customized and simplifies commercial client’s space.
Goals and Objectives
Market Analysis
SS Designs operates in two industries: Interior Architecture and Interior Design. Interior Architecture being the company’s primary focus. The following market analysis discusses recent performance in each industry, including future forecasts.
Interior Architecture Industry
Companies in this industry are primarily engaged in the planning and design of buildings and other structures. Consequently, industry revenue is tied to the health of the real estate market. For instance, as corporate balance sheets improve, many businesses expanded their storefronts and offices, increasing demand for services. Positive long-term trends such as an aging, urbanizing and a progressively wealthy population, have helped spur demand for residential construction, especially in metropolitan areas, which boosted revenue for architectural services. In addition, an increase in public-private partnerships for infrastructure projects, under which the financing and operation costs are shared between the government and private sector, raised architectural revenues.
Steady growth in the American real estate market is projected to drive industry revenue, which is expected to increase an annualized 3.0% to $5.8 billion over the four years to 2026. American architects will benefit from anticipated increases in corporate profit and disposable income, as these drivers will propel residential and nonresidential construction. Further, industry growth will hinge on the popularity of environmentally conscious designs. Higher projected oil prices, along with increased regulations regarding the reduction of carbon emissions, will incentivize energy-efficient structures, aiding architectural firms that specialize in planning environmentally friendly homes and commercial structures.
Key External Drivers
Value of Non-residential Construction
Trends in institutional and commercial developments are major drivers of industry revenue. The value of non-residential construction serves as a proxy for commercial and industrial developments. Services related to these types of developments generate over 50% of industry revenue. Demand for non-residential construction is sensitive to employment, consumer spending, corporate profit and interest rates.
Value of Residential Construction
Demand for the construction of single- and multifamily residential units influences demand for industry services. In total, projects related to residential construction account for an estimated 17.9% of revenue in the American Architects industry. Demand for residential construction is sensitive to economic and financial conditions, such as employment, consumer disposable income and interest rates.
A high share of industry revenue comes from commercial and industrial construction. To pay for or finance a building project, a company must first have a healthy balance sheet. Therefore, a higher corporate profit margin coincides with higher levels of commercial construction.
Housing starts measure the number of new, privately owned housing units started in a given year. The number of housing starts has a direct influence on industry revenue, with an increase in the number of housing starts positively affecting the industry.
The overnight rate is the rate at which major financial institutions can borrow and lend short-term funds to one another. Changes in the overnight rate affect institutional lending to builders and developers. During periods of low rates, builders can more easily afford construction projects. In turn, increased construction boosts demand for architectural services, as architects are needed in the design stages of residential and nonresidential building projects.
Industry Outlook
Revenue for the American Architects industry is expected to increase at an annualized rate of 3.0% to $5.8 billion over the four years to 2026. Growth in corporate profit and consumer spending is expected to provide the framework for an improved American real estate market, which will boost demand for industry services. Architecture firms will benefit from growth in non-residential construction, which is the industry’s largest market. The value of nonresidential construction in Canada is expected to increase at an annualized rate of 4.4% over the four years to 2026, bolstering demand for the design and planning of office, industrial, retail and other commercial construction projects.
Another force driving the industry’s growth is the low interest rate environment resulting from a recovering economy after the COVID-19 (coronavirus) pandemic. Low interest rates make it easier for companies or individuals to borrow money to finance new building projects, due to the lowered cost associated with paying back the loan. Downstream buyers will be more willing to take on new projects and hire industry operators. In addition to other improving economic drivers, industry demand is expected to continue to flourish.
Increased Investment will Boost Demand
Rising investment in large-scale commercial building developments, most notably offices and hotels, is expected to boost industry revenue. These types of community projects will continue to improve industry revenue because architectural services will be needed in their design. In addition, an increase in the popularity of mixed-use properties that contain retail, office and residential components, will promote the design of innovative buildings, increasing demand for architecture in metropolitan regions. Although short-term lending rates are expected to slightly increase over the four years to 2026, interest rates are still expected to remain relatively low. This will incentivize investors to put cash into real estate developments in Canada, which will continue to offer attractive returns compared with other forms of investments.
In the residential market, urbanization and an aging population will likely lead to an increase in high-rise condominium and apartment construction, especially in major cities such as Calgary, Toronto and Vancouver. For example, the 81-storey M3 Condo, which is currently in the construction process and is scheduled for completion in the latter half of 2023, is a new modernly designed luxury condo that is going to be a part of the M City community in the heart of Mississauga, ON. This building is designed by industry player IBI Group Inc., and is going to become the tallest tower in Mississauga by a significant margin. Demand for architectural services in the housing construction market will also increase, aiding small industry operators that specialize in home design and planning. Moreover, the value of residential construction is expected to continue rising, growing at an annualized rate of 0.6% over the four years to 2026.
Competition
Industry revenue growth and an increasing profit margin will bring more operators into the industry. The number of industry operators is forecast to increase at an annualized rate of 1.9% to 7,766 companies over the four years to 2026. Meanwhile, industry employment is also projected to increase, rising at an annualized 2.8% to 28,656 people during the same period, as greater demand for architectural services will lead to more hiring. The industry is labour intensive, and businesses will find it difficult to find a cost-efficient substitute for knowledgeable employees. As a result, wages are expected to increase an annualized 2.9% to $2.4 billion over the four years to 2026. Since revenue growth is projected to be faster than wages, profit is also anticipated to marginally increase over the next four years.
An increase in industry operators will also lead to heightened competition. Many of the industry’s largest companies also serve as engineering and construction companies, offering clients a one-stop shop for design, procurement and construction services. Small and medium-sized industry operators will experience direct competition with multi disciplined design, engineering and building companies, making it difficult for architecture-only firms to secure contracts for large-scale building projects. The industry’s largest companies will benefit from offering a broad range of predesign and other design services, including planning, interior design, landscape architecture and engineering services.
LEED Certification
However, an increasing number of companies will offer LEED-certified green building designs. Canada has more square metres of LEED-certified space than any nation except for the United States, according to the American Green Building Council. An increase in demand for environmentally conscious designs and potential savings on energy costs will further drive industry revenue growth over the next five years, especially for operators that specialize in green and LEED design.
Market Segmentation
The majority of revenue generated in the American Architects industry is through nonresidential architectural services. The four subcategories within this market include educational projects, office building projects, healthcare institutions and retail and restaurant projects. The products and services offered by industry operators are not expected to change much due to the COVID-19 (coronavirus) pandemic. However, demand for certain products and services may fluctuate during this time of economic uncertainty. For example, healthcare institutions and advisory services may endure a slight increase in demand due to the importance of healthcare institutions and advisory services for renovations. However, recreational facilities and other nonessential projects may endure a short period of decreased demand.
Office Buildings
Demand for architectural services for office building construction and renovation has grown in line with the overall American economy during the past five years. Office construction is principally determined by growth in the service sector workforce. The office segment comprises a variety of different sectors, including technology, finance and communications. Typically, demand peaks during periods of strong economic growth because the need for space rises as new businesses enter the market and existing companies expand operations.
Retail and Restaurants
Architects are also contracted to design retail buildings, including shopping malls, restaurants, bars and fast-food outlets. As a result of the adverse economic effects from coronavirus, the retail and restaurant segment has endured many changes to its architectural design structure that incorporates social distancing protocols and other changes to ensure these sectors can operate safely and effectively. This, in turn, has slightly boosted demand for new retail and restaurant spaces, which ultimately benefited the Architects Industry in Canada.
Healthcare Institutions
Healthcare facilities, which include hospitals, clinics, doctors’ offices, rehabilitation centres and general health centres, are typically owned by nonprofit corporations. Consequently, healthcare construction is usually funded privately or through a combination of public and private financing. Therefore, trends in private nonresidential construction investment, as well as demographic shifts in the number of elderly consumers in Canada, are strong indicators of demand for architectural services related to healthcare construction. This segment has endured a slight decrease as a share of industry revenue over the past five years.
Educational Institutions
Architects are commonly contracted for new construction projects, additions and renovations on educational buildings, such as schools, colleges and universities. Most education is publicly funded in Canada, with relatively few private schools at the primary, secondary and postsecondary levels. Therefore, educational construction projects are largely funded by the government, with budgetary priorities determining demand for new school construction and existing structure repair and renovation. Educational institutions are estimated to account for 9.8% of industry revenue. Due to the well-established educational institutions already in place, this share of industry revenue has decreased slightly over the past five years.
Other Non-Residential Buildings
Other categories within the non-residential market are architectural design services related to hotel and convention centre projects, recreational building projects and industrial construction projects. Improving employment, rising disposable income and higher consumer spending have led to an increase in commercial building activity and architectural service revenue. However, trends in oil and commodity prices determine industrial and commercial development in resource-rich provinces such as Alberta.
Single-Family Residential Projects
Conversely, single-family projects are expected to account for 3.3% of industry revenue. This segment has slightly decreased over the past five years, as multifamily buildings are growing more in popularity across major cities such as Toronto, Vancouver and Montreal.
Multifamily Residential Projects
The provision of services to multifamily projects is estimated to account for 14.6% of revenue. Architectural revenue from multifamily residential projects in Canada has increased over the past five years, as American real estate stability was driven by strong underlying fundamentals. A growing, aging, urbanizing and progressively wealthy American population has boosted residential real estate demand and increased revenue for architectural design services related to residential construction. For the majority of the past five years, strong revenue growth in this market occurred in major cities such as Toronto, Vancouver and Montreal.
Other
Other services commonly include advisory services related to urban planning, project site master planning, interior design, landscape design and engineering services. Demand for these functions may be driven by private or public sources. This segment has increased over the past five years, as external competition increases and industry operators need to rely on other services for another revenue stream. This category is expected to account for 27.6% of industry revenue.
US Interior Design Industry
Over the past five years, the Interior Designers industry in Canada has exhibited moderate success, reflected through its revenue growth and solid operational expansion. Demand from downstream markets, predominately the residential construction sectors, has buoyed revenue growth during times of volatile commercial conditions. During the COVID-19 (coronavirus) pandemic, large drops in corporate profit, nonresidential construction and consumer spending all attributed to a large decline in revenue in 2020. Fortunately, demand from the commercial sector played its role in supporting revenue growth, as the industry relies on a diverse client base, including corporate offices, shopping malls, hotels, restaurants and hospitals.
The residential market has also been supported by rising residential construction, per capita disposable income and the number of households earning $100,000 or more per year. However, nonresidential markets experienced more volatile growth resulting in only a marginal rise over the past five years. Industry revenue is forecast to grow an annualized 2.3% to $2.1 billion over the five years to 2027. Industry revenue is anticipated to rise at a slightly slower rate than the previous five-year period in part due to a slowdown in the housing markets. Although residential construction and residential renovation expenditure are both forecast to expand, they are expected to rise at a slower rate than the previous five years. In addition, a slight decline in corporate profit is expected to further restrict the industry’s growth. Major commodity prices are expected to improve over the next five years, encouraging more demand for non-residential construction markets and driving general economic growth. Despite the slight slowdown in revenue growth, the industry’s profit margin is forecast to slightly improve over the five years to 2027.
Demand from non-residential building construction. The commercial sector accounts for the most demand for interior design services. Typical projects from the commercial sector include corporate offices, restaurants, hotels, airports and hospitals. When these clients are expanding their facilities, commercial construction is projected to rise, increasing demand for professional interior design services. The value of non-residential building construction is expected to increase in 2022.
Industry Landscape
The industry is highly fragmented. According to Statistics Canada, almost 75.0% of industry establishments are nonemployers. The industry’s low barriers to entry have enabled many small non-employers to enter the industry, which has prompted industry enterprise growth. The number of industry enterprises is expected to grow at an annualized rate of 1.9% to 7,449, most of which are non employing enterprises. Similarly, industry employment is expected to increase at an annualized rate of 2.1% to 6,153 workers during the same period. The difference in growth between the two can be attributed to the increasing popularity of nonemployers that are able to charge lower prices. Despite employment rising at a quicker pace than enterprises, the industry’s average wage has increased over the past five years. This rise in the average wage can be mainly attributed to the amount of skill required by each employee.
With revenue growth and slight changes in wage costs, the industry profit margin, measured as earnings before interest and taxes, is expected to remain stagnant at 20.3% of revenue in 2022. This stagnation is primarily due to the coronavirus pandemic, which caused economic drivers to suffer in 2020 and the resulting economic recovery after the peak of the pandemic have caused those drivers to recover.
Due to profit stagnating, more interior designers are strengthening their product portfolio by including design layout services, which typically produce a higher margin. It should be noted that profit varies significantly depending on whether a company specializes in residential or commercial interior design. Projects for the residential sector tend to be more profitable, as commercial projects are typically prone to high price-based competition to secure contracts.
Industry Life Cycle
The Interior Designers industry in Canada is in the mature phase of its life cycle. Industry value added (IVA), which measures an industry’s contribution to the overall economy, is expected to grow at an annualized rate of 2.8% over the five years to 2027. Comparatively, the American economy is anticipated to grow at an annualized rate of 1.7% during the same period. Industry operators’ relatively standardized skill set and product portfolio, coupled with low technological innovation, is indicative of an industry in the mature life cycle stage.
Products and services have remained essentially the same, despite some industry operators gaining a competitive advantage with diversified portfolios, such as providing layout design expertise. Thus, price-based competition has intensified as operators attempted to secure favourable contracts with businesses, among other non-residential downstream markets. Conversely, rising demand for industry services from healthcare facilities, coupled with many new businesses entering the market over the next decade, may offer an opportunity for future industry growth. For example, industry operators are commonly hired by hospitals, doctors’ offices and extended care facilities to design and decorate patient rooms, entrances and waiting rooms. However, rising interest rates could hamper demand for both commercial and noncommercial construction, which may limit industry revenue growth.
Market Segmentation
Demand from businesses has decreased from 2020 since companies were more focused on staying operational than changing the interior of their locations. As economic conditions continue to improve, demand from each segment is forecast to grow.
Businesses (50.4%)
Establishments in this industry are commonly hired by architectural firms that outsource the services of interior designers. These designers, in turn, help plan and arrange the interiors of office, residential or commercial construction projects. Due to the scale and variety of these projects, a high portion of revenue from this market comes from architectural firms. Businesses can directly employ interior designers to create and style office spaces in a way that best uses space, safety and light while projecting the company’s corporate philosophy to employees and customers. Retail and commercial clients can hire interior designers to plan the interior of their shops and stores. For these projects, designers must be cognizant of safety issues, pedestrian traffic and local government building code requirements. A sharp decline in the value of non-residential construction in 2020 has driven a decline in demand for architectural services, which has shifted industry revenue away from commercial clients and toward residential clients, as interior designers are commonly hired by architecture firms. However, as the economy began improving after the peak of the pandemic, demand for the industry’s services is forecast to steadily increase over the five years to 2027.
Individuals and Households (30.4%)
Sales to individuals and households are driven by a range of economic factors, including unemployment and per capita disposable income levels. Throughout the majority of the past five years, a decline in unemployment, combined with a rise in disposable income, have led to an increase in demand for interior design projects, as individuals have more money to spend on non discretionary services such as a household’s design. Households typically spend the most on interior design work when they first move into a house. However, over the past five years, national residential expenditure on renovation has driven demand from this market. As a result, this segment’s share of total industry revenue is expected to rise during the five-year period. The proportional increase is not only the result of a rise in revenue for household projects but is also due to declines in other markets such as business clients.
Other (11.3%)
These clients include international companies, foreign governments and other nondomestic players. The main service provided for these clients is often merchandise sales. Collectively, these customers account for an estimated 11.3% of industry revenue. This segment’s share of industry revenue has slightly increased over the past five years, primarily due to the decreases in demand from businesses and corporations.
Government and Public Institutions (7.9%)
Interior designers also provide services to government-owned or operated institutions such as hospitals, universities and the offices of federal, provincial and municipal public institutions. Government clients are expected to account for 7.9% of total industry revenue in 2022. Within this market, one bright spot has been the healthcare sector, which has become a growing source of income for interior designers, as Canada’s aging population leads to greater demand for healthcare services. As a result, hospitals and other health providers have expanded capacity and hired interior designers to plan these new spaces, making them accessible for the elderly. With overall demand for municipal building construction rising over the past five years, this increased this segment’s share of industry revenue in 2022.
Government Regulations
Regulations for the Interior Designers industry in Canada are still being developed. Canada does not have widespread legislation to regulate this industry and currently, only Nova Scotia has a Practice Act, while six other provinces have Titles Acts. A Practice Act regulates who is permitted to perform the services provided by a particular industry. It requires industry participants to obtain a license before they can perform their services. A Titles Act regulates the use of a title. One must meet the criteria set out by the licensing body to use a specific title, for example, certified interior designer. However, Titles Acts do not prevent individuals from performing a particular service if they are not certified; they just manage the use of state-regulated titles. These acts are there to ensure that the public is aware of the education, experience and qualifications needed to become a registered service provider in the hope that people would turn to licensed providers as opposed to non licensed ones.
Operators in this industry, however, must adhere to health and safety precautions, local building codes and laws and environmental regulations put in place by various state legislatures and international organizations. For example, the International Code Council develops international building codes related to structural elements of a building, use and occupancy classifications, interior finishes and interior environment and accessibility. While these codes are non-binding and can be modified by provincial governments, they aim to outline the best practices within the industry, which are used as benchmarks for further legislation.
As this profession grows, the regulation of this industry is expected to increase and become more streamlined. For example, Interior Designers of Canada (IDC), a professional association for industry operators representing more than 5,000 members, proclaims that it wishes to have stringent regulations all across Canada, whereby all associations should have professional requirements for their members to adhere to. This would make it compulsory for industry participants to become members of a professional association and adhere to all its laws and regulations.
Additional Certifications
- Interior Architect Degree or Diploma – Staff
- Interior Design Degree or Diploma – Staff
- NCIDQ Examination for Interior Design Qualification
Products and Services
SS Designs provides two primary services: interior architecture and interior design services. The following section summarizes each sub-service, and it’s average pricing:
Detached Building Architecture
For homes larger than 3,000 square feet. Designing a brand new space from scratch.
Commercial Interior Architecture
This is our primary service. Developing a new commercial space based on our client’s needs, size of space, their requirements to sync with city building codes.
Residential Interior Architecture
Working with architects and builders to create spaces which meet the client’s needs, and connects exterior concepts with interior design.
Commercial Interior Design
Design interior spaces by selecting finishes and materials to match the client’s brand guidelines, and vision for the space.
Residential Interior Design
Design interior spaces by selecting finishes and materials to match the client’s requirements, and vision for the space.
Project Management
Creating a project schedule and timeline for development, construction and budgetary requirements. Work with contractors, suppliers and tradespeople to ensure deadlines are met, and materials arrive on time.
Pricing Model
Competitive Advantages
SS Designs will execute on the following competitive advantages:
Prompt Quoting and Service
SS Designs prioritizes prompt quoting and quick turnaround of proposals and service. By being responsive, clients will feel prioritized and satisfied even on the first stage of the service. Eventually, SS Designs will adopt augmented reality tools that will allow clients to set preliminary designs and get rough estimates and proposals. A standard proposal pack with estimated rates is always available, alongside the semi-annual catalog which will be provided to all prospective clients.
Software Utilization
Ms. Simmons and Ms. Thompson are both experts in 3DS Max and Corona Software for 3D rendering and creating design proposals. These are two of the most advanced software applications in the industry, and are currently not used by any competitors in the Chicago market. The difference in quality between 3DS Max, Corona Software and the competition is staggering, and therefore the company will continue operating with these applications to help differentiate from the competition.
Creative Culture
There is an ongoing global trend on space saving due to the increase in condominiums in metro areas, including in Chicago, Dubai and Riyadh. Japanese and Scandinavian space-efficient designs are in demand, such as the Kanso concept of design. SS Designs has this at the core of its design philosophy. By adding unique and creative designs to this, the product becomes more attractive to the target markets. This is also a manifestation of the creative and professional working environment that Simmons is implementing into its business culture.
Positioning
SS Designs positions its services at the upper to mid tier of pricing in the market. By incorporating unique and contemporary concepts to interior architecture and design, the company can charge a higher price than the competition. By positioning the company in leading real estate markets such as Chicago, Dubai and eventually Riyadh, SS Designs will access an array of target customers that seek high-caliber concepts and designs. The company will meet this market with appropriate positioning; communicating premium quality and service through all marketing channels.
Key Success Factors
Use of Advanced Architectural Planning Tools
Interior architecture is more advanced and specific due to the integration of advanced rendering and planning tools, starting with AutoCAD in the 90s up to 3d and rendering tools such as 3D Max and Corona Software. Computerized 3D models are now the norm when it comes to design. SS Designs will incorporate the latest architectural technologies to all services.
Competent and Established Team
Having competent and accomplished architects, interior designers, and design consultants is important in terms of acquiring clients, especially in the mid and high end sectors in North America and the Middle East. SS Designs takes pride in employing the best architects who have an eye for good design and are able to connect better with clients. Ms. Heba will also ensure that team members get competitive salary and benefits packages, as well as a positive and creative work environment.
Marketing Channels
Catering to a mid to high end market in North America and the Middle East, SS Designs must strike a balance between traditional and digital marketing. Effective traditional marketing strategies include presentations, scheduling meetings, showrooms, virtual showrooms, and the distribution of seasonal catalogs. Digital marketing strategies include search engine optimization, pay per click ads and community building and engagement on social media.
Understanding of Target Market
North American and Middle Eastern markets are diverse in terms of culture, economic situation, and, in the case of the UAE and Saudi Arabia, religious beliefs. North American architecture focuses on modern and sustainable design, though interior architectural designs vary. Meanwhile, the UAE and Saudi Arabia are more extreme in their preferences, such as luxury, futuristic and sometimes traditional designs. As such, it is imperative for the Simmons team to understand the requirements of each local market.
Effective Project Management
Generally speaking project management is the process of managing the whole project; the programme, the budget, the execution and all the individual team members required to successfully complete a project. A project manager within the luxury residential sector is responsible for ensuring that every element of the project, from start to finish, is planned for, communicated to all stakeholders, reviewed, approved and delivered safely within the timeframe and on budget. Effective project management is a key success factor that must always be upheld by SS Designs.
Sales and Marketing Plan
This sales and marketing plan includes traditional and digital marketing strategies. In order to meet the company’s scale and expansion plans it is imperative to execute on the following:
Target Customers
The company’s target customers are segmented into the five following groups:
Hospitality
- Hotels
- Restaurants / Bars
- Cafes
- Beauty / Esthetician Salon
- Tourism Agencies
Finance and Law
- Law Offices
- Insurance Offices
- Business Centres
- Financial Institutions
Health Care
- Hospitals
- Doctor’s Office
- Walk-in Clinics
- Physiotherapy Clinics
- Medical Pharmacies
Education
- Private Schools
- Private Learning Centers
- Colleges
- Universities
Residential
- Single Family Homes (more than 3,000 sq ft)
Key Channels
Key channels are segmented into two groups: traditional and digital marketing channels.
Traditional Channels
Seasonal Catalogs
Seasonal catalogs have been an effective marketing channel and will continue to be utilized. Every 6 months SS Designs will create a Spring & Summer catalog and Fall & Winter catalog. These catalogs provide a unique way for clients to experience the SS Designs brand, outside of consuming content through a desktop or smartphone screen. Furthermore, this provides the company with a non-traditional way of marketing its services, and building an engaged community.
Onsite Visits
SS Designs will conduct visits to construction sites, real estate developers, offices, property managers and other potential clients. Seasonal catalogs will be distributed, and in person meetings held. Prior to such in person meetings the company will utilize outbound phone calling and email metrics to make an effort to arrange such gatherings beforehand. Developers will then refer Simmons to their prospective tenants, which will eventually grow into paying clients.
Trade Shows / Community Events
SS Designs will also take part in trade shows and events in Chicago, Illinois, across the U.S.A., and eventually in the UAE and Saudi Arabia.
Digital Marketing Channels
Social Media
SS Designs currently utilizes Linkedin and Instagram to host a community of clients, and followers. Both of the social media platforms will continue to be utilized moving forward; however, the company will launch a YouTube channel and Facebook page by February 2023. These channels are an excellent place to remind past clients of the work the company is doing, and to cultivate new leads and awareness of SS Designs. The company will work with a third party marketing form to post at least 3x a week across Linkedin, Instagram and Facebook. Publishing videos on YouTube will be completed less frequently.
Search Engine Optimization
Once the updated website is completed there will be monthly work completed on additional landing pages and blog articles. This approach will increase the volume of website pages, and increase the sites ranking on search engine results pages (SERPs). The company may work with BSBCON or another firm to establish specific landing pages that will reflect the target audience.
Pay-Per-Click (PPC Ads)
Pay-per-click (PPC) Ads or “paid ads” are utilized across social media channels and search engines alike. For SS Designs, PPC Ads will focus primarily on Google to rank for relevant search queries. Google Ads are an excellent way to reach new audiences. At first glance, they can seem expensive, however when the lifetime client value of new leads is considered, and the referrals generated from such leads, Google Ads often result in being the most direct marketing channel for most modern companies.
Email Marketing
Email marketing continues to be an effective digital marketing channel. SS Designs will continue to collect the contact information of new leads and clients, then record such information into a respective customer relationship management system (CRM). Either MailChimp and/or HubSpot will be utilized as a CRM. Each quarter, the Simmons team will discuss ideas for value based content to include in the monthly email marketing campaign. Instead of “selling”, the company will focus on educating email recipients, and positioning SS Designs as a market leader that is building awareness to its community.
Key Performance Indicators
The following table outline key performance indicators (KPIs) which will be followed in order to track the performance of each silo within the company:
SWOT Analysis
Outbound Sales Approach
- Create a list of developers, builders, architects, real estate agents, business owners, and direct target customers.
- First, contact the lead by phone. They will often ask you to email someone from their organization.
- Take the email address, record it and send an email.
- Arrange a video call with Heba via her calendly schedule.
- The Sales Associate will pass all information over to Heba, so she has a summary of the lead.
- During the Discovery Call, Heba will ask questions to better understand them.
- If it’s a developer or builder, the goal will be to have them refer their future tenants to SS Designs. If it’s a direct target customer, the goal is to have the lead interested in a catalog, and initial proposal.
- If the lead is interested in proceeding please continue with “Phase 0 (Pre-Project) #3”. If we do not hear anything back, follow up with the lead via phone call / email.
Operational Plan
Interior Architecture Project Process
Phase 0 (Pre-Project)
Discovery Call
- We host a discovery call via Zoom, phone call or in person to understand their requirements and budget.
Initial Proposal
- Provide a proposal (catalog). Every 6 months we update it (spring/summer and fall/winter catalogs). We want to ensure they are confident so we provide an initial presentation (mildly customized).
Contract Agreement
- We send a contract agreement to the prospective client via DocuSign. (signed)
Initial Invoice
- We send an initial invoice to the prospective client for 50% of the total cost (paid).
Create the File Project
- We create the physical and digital file document via Google Drive, including:
- Client requirements
- Client name, business name, mailing address, phone number, email address
- Pictures from the client
- Architectural, mechanical, electrical drawings for the property (separate folder – “Building Drawings”)
- “Concept Presentation Folder” is created
- “Construction Drawings Folder” is created
- “Building Permits Drawings Folder” is created
- “Minute Meetings Folder” is created
- “3D Rendering Folder” is created
Initial Team Meeting
- An internal team meeting is scheduled to discuss the project, deliverables and team responsibilities.
Project Schedule Proposal
- Once we have received the paid invoice and signed consulting agreement we provide a receipt and a project schedule with specific dates and deadlines.
Understanding Client Preferences
- We send the client a series of inspirational ideas (pictures) to gauge their preferences and personality.
Phase 1 (Concept Presentation)
Commence the Concept Presentation
- Once received, we commence development of the concept presentation for style and an initial proposal for the “layout”.
Concept Presentation Meeting
- We host a meeting via Zoom or in person (preferred) to present the initial concept presentation. We record the meeting minutes (what is said). We send the meeting minutes to the client and CC everyone involved in the meeting.
Modifications to Concept Presentation
- Once we have received their input we proceed with modifications to the initial concept presentation proposal. We then send the initial concept presentation with the required modifications to the client.
Confirmation to Proceed
- We receive their feedback, and require a confirmation to proceed via email. We need them to “confirm or approve the layout”.
Phase 2 (Design Presentation)
Commence Phase 2
- We begin creating a furniture layout, 3D Rendering, and basic selection finishes.
Phase 2 Presentation Meeting
- We present the furniture layout, 3D Rendering, and basic selection finishes to the client. This step is extremely important and we make our best effort to have the meeting in person (if not via Zoom). We record the meeting minutes (what is said). We send the meeting minutes to the client and CC everyone involved in the meeting.
Feedback on Modifications
- We receive their feedback and understand where modifications are required.
Execute on Modifications
- Modifications are made and the updated Phase 2 Presentation is presented via email to the client.
Approval of Design Presentation
- We go back and forth until we receive their approval. We send them formal approval for Phase 2 via DocuSign, email or in person and require a legal signature from the legal signing authority (LSA).
Phase 3 (Technical Drawings)
Create Tenant Improvement (TI) Package
- Tenant Improvement Package (Phase 3) is created.
Tacking the TI Package to the City
- Two paths forward – the contract might say that SS Designs takes the Tenant Improvement Package to the city OR it will state that the client takes the package to the city (which is less common).
Prepare Specifications
- Meanwhile we prepare specifications (quantities, millwork and construction documents).
Review Application Package with the City
- We review the application package with the city (if we are contracted to work with the city).
Resubmit to the City
- After receiving the city’s feedback we make modifications to the Tenant Improvement Package and resubmit it to the city.
Phase 4 (Project Budget)
Receive Supply and Trades Quotations
- We utilize our own contacts/suppliers/trades to receive supply and construction quotations, and then present each quotation to the client.
Submit Formal Project Budget
- Once we receive the client’s feedback we develop a formal project budget, and submit it to the client for their review and approval.
Signature for Specifications & Project Budget
- The client will sign for project specifications and project budget.
Submit the Final Project Package to Client & Contractors
- We submit the project package by email (PDF) and AutoCAD to the client and each contractor. The legal contract between the project and contractors is to be developed and managed by the client. This step marks the finalization of services rendered for Interior Architecture.
In the situation the client seeks to retain SS Designs for project management services, a separate contract would be established.
Health & Safety
WorkSafe enforces the Occupational Health and Safety Regulation. It contains requirements and standards that all workplaces must meet to promote occupational health and safety, as well as to protect workers from work-related risks to their health, safety and well-being. General rules such as fire safety, occupational first aid, evacuation and rescue must be met and enforced by Smart Spaces Designs The company will also look into supplemental private health insurance for employees on top of the public health care plan. The company also intends to provide vehicle and accident insurance, as architects and interior designers will be traveling often, either by car or public transport, to project sites and client meetings.
Equipment & Inventory
SS Designs will utilize the following equipment and tools to successfully execute on operations:
Digital Hardware and Software
- Simmons and Ms. Thompson will use a MacBook Pro for design activities, as well as managing and operating the business, including finance and marketing. Apple laptops with the new M1 and/ir M2 chips can run Autodesk, Corona and other design software programs efficiently. Laptops are also mobile and can be brought off-site to client meetings.
- A back-up iPad with a sketching tool such as Apple Pencil is also useful for quick designs and presentations to clients on-site.
- Internet connection and company mobile phones will also be provided
- Autodesk 3DS Max Software is a professional computer graphics program for making 3D animations, models and images. It provides professional interior designers and design studios industry leading 3D interior rendering tools that give them the power to bring their concepts to life.
- Corona Renderer delivers high-quality, physically based shading for production rendering. “Be an artist, not a technician, and achieve realism with greater ease than other rendering software.” Corona Renderer is an integrated solution for selected 3D applications
- Google Workspace is a collection of cloud computing, productivity and collaboration tools, software and products developed and marketed by Google. It includes Google Drive, Google Docs for word processing and Google Sheets for spreadsheets and financial documents. This is free of charge for Gmail account holders, but the company will pay for additional cloud storage when required
- Presentation tools such as Microsoft PowerPoint and video editing software like Adobe Premiere Pro CC will also be used to create presentations and video walkthroughs of SS Designs’s interior design and architecture projects.
Interior Design/Architectural Supplies and Tools
- Drawing tools for sketching room designs and plans include a pencil, ruler, compass, protractor and graph paper.
- The color wheel demonstrates the relationships of primary, secondary and tertiary colors. The wheel helps designers create pleasing color schemes based on a combination of complementary and analogous colors.
- Paint manufacturers produce sets of paint chips or strips of colors for each of their lines. Interior designers use them, along with fabric books, to select room colors and coordinate paint colors with fabric, furniture and accessories.
- Interior designers rely on measuring tapes to verify and calculate dimensions of interior spaces and furnishings. Rigid tapes measure straight lengths while cloth tapes calculate curved and angled surfaces.
Transportation Vehicle
- The company will look into a long term rent or a purchase of an official company vehicle which will be used to travel to client meetings, construction sites, and conferences. The vehicle will have ample space to transport marketing materials such as model designs, pull-up banners and brochures.
Office Furniture and Fittings
- A sufficient number of work desks, conference tables, chairs, air conditioning units, kitchen/pantry appliances are needed in the Chicago office
- The company will also have a 3-function laser printer, scanner and copier to print drawings, proposals and marketing materials
Location
This section outlines the company’s current and future locations:
Headquarters – Chicago, Illinois, U.S.A.
SS Designs’ headquarters is located at 120 S Morgan St #725, Chicago, IL 60607, United States. This is a strategic location because of its close proximity to the financial district, and downtown Chicago. By being close to major corporate offices and hubs, SS Designs will be able to keep track of upcoming real estate developments and visit potential clients needing to revamp their offices. Also, the team can easily invite clients to the company headquarters, situated in the iconic Chicago convention center. The office has workstations and a conference room for internal team and external client meetings.
Year 3 Expansion (2025) – Dubai, U.A.E.
SS Designs is planning its expansion to Dubai, UAE. The key industries in Dubai with tremendous growth potential include technology and finance. With foreign and local investors pouring in investments in this tax-friendly and accessible country. Dubai Internet City has over 130,000 square meters of prime commercial office space, in which over 1,400 companies with over 10,000 workers are based. There are 25 low, mid and high-rise office structures here, occupied by multinational companies such as Facebook, LinkedIn, Tata Consultancy, Oracle, as well as UAE-based companies such as Ducont. It is also adjacent to Dubai Media City and Dubai Knowledge Park, which will introduce the company to expanding sectors, as well as high-earning professionals who seek premium interior architecture and design services for their own residences.
Year 5 Expansion (2027) – Riyadh, Saudi Arabia
By 2027, SS Designs intends to capitalize on the projected growth of the Saudi Arabian economy. Riyadh is an important financial, business and manufacturing center. Major banks are headquartered in the city, as well as numerous private companies. Every publicly quoted company is compelled by local laws to have an office in the city. The Business Gate in the Qurtuba district of Riyadh comprises 110,000 square meters of office space, 5 star hotels with 350 rooms, 4 star hotels with 250 rooms and 5,000 square meters of retail space, as well as an exhibition and convention center with conference and banqueting facilities. This area has easy access to offices, including Alcatel Lucent, Sony and Samsung.
Risk Analysis
Management Team
Currently, Smart Spaces Designs has two management team members including:
Donna Simmons
Chief Executive Officer
Ms. Simmons is the CEO for SS Designs and she plays a major role in executing strategies to ensure the growth of the company. Her passion for working smart translated into designing smart work spaces for her clients. She obtained her management skills from collaborating with various clients and projects in the last 7 years.
Marylou Thompson
Senior Designer
Ms. Thompson has worked with Ms. Simmons in various design projects for the last 5 years. She has valued her client’s ideas and has worked well with them without compromising her design standards. Her network in the design industry will help the company bring in more projects and increased revenues.
Key Personnel
Operations Director
- Playing a leading role in compiling company budget and growth strategy, particularly the expansion to Dubai and Riyadh
- Executing strategies to optimize company and asset growth
- Ensuring expertise and effectiveness of architects and designers
- Creating financial reports
- Managing capital, accounting, and bank processes
- Driving and leading performance reviews, to ensure an engaged and skilled workforce
- Initiating improved business practices
- Collaborating with architects, designers and administrative staff in building an environment of collective responsibility and accountability
- Ensuring adherence to key performance objectives to meet business and customer expectations
Administrator
- Welcoming visitors and directing them to the relevant office/personnel
- Clerical duties such as answering phone calls, responding to emails, and preparing documents
- Coordinating and managing appointments, meetings, and the conference room schedule
- Performing bookkeeping tasks such as invoicing, monitoring accounts receivable, and budget tracking
- Maintaining general office files, job files, vendor files, and others related to the company’s operations
- Purchasing office supplies, equipment, and furniture
- Oversee the maintenance of office facilities, and equipment
Senior Architect
- Reviewing and designing architectural and engineering plans
- Ensuring all plans are compliant with American government health and safety regulations
- Researching and maintaining knowledge of various engineering disciplines, application methods, and materials
- Monitoring the work of other Architects and making recommendations and scheduling workshops
- Providing guidance to subcontractors like builders, plumbers, and electricians, and helping them interpret design specifications
- Liaising with clients to ensure all issues are addressed in a timely manner, and that project requirements are met
- Ensuring the team works together to achieve set goals and targets
- Acting as a mentor to new Architects and helping them fine-tune their design skills and improve their industry knowledge
- Networking and consulting with various industry professionals
Senior Designer
- Participating in client meetings to discuss design plans and gather feedback on preliminary designs
- Reviewing construction documents to ensure that specifications meet design requirements
- Coordinating with architects and contractors to ensure that construction meets design specifications
- Creating conceptual sketches, renderings, and illustrations to communicate design concepts to clients
- Compiling data regarding client preferences, lifestyle habits, and architectural styles to create a design concept that meets the client’s needs in terms of style and ergonomics
- Presenting design concepts to clients in order to gain approval of preliminary plans
- Developing interior design concepts for commercial, retail, or industrial spaces
- Consulting with clients about their needs in order to create a design solution that meets their goals within their budget constraints
Intermediate Designer
- Oversee and supervise junior team members on projects within the target industries
- Develop overall furnishing layouts for per industry standards
- Independently prepare Concept Design presentations including rendered plans, section elevations, Color/Material boards, and furniture/fixture/accessories selections using Adobe CC and AutoCAD
- Oversee and review Junior Designers’ rendering of simple floor plans and select elevations
- Work independently to render detailed floor plans and detailed elevations
- Conduct product resource selection for ongoing and future projects
- Develop Furnishing, Color and Material Boards, including materials, fabric, and imagery
- Coordinate Computer-Generated Imagery (CGI) with Ms. Thomspson
Junior Designer
- Outline client design objectives
- Conceptualize and sketch design plans
- Determine cost of completion and project requirements in the budgeting phase
- Set a timeline for the completion of an interior design project
- Source materials and products included in plans
- Create ‘mood boards’ to sample your design vision
- Utilize computer applications in the design process
- Inspect design after completion to determine whether client goals have been met
Graphic Designer
- Planning concepts by studying relevant information and materials
- Illustrating concepts by designing examples of art arrangement, size, type size and style and submitting them for approval
- Preparing finished art by operating necessary equipment and software
- Coordinating with outside agencies, art services, web designer, marketing, printers, and colleagues as necessary
- Contributing to team efforts by accomplishing tasks as needed
- Communicating with clients about layout and design
- Creating a wide range of graphics and layouts for product illustrations, company logos, and websites with software such as photoshop
- Reviewing final layouts and suggesting improvements when necessary
Recruitment Plan
Recruitment, Hiring, Onboarding
Receiving New Candidates / Recruitment
We primarily post job postings on Linkedin, Indeed, and also receive referrals from industry contacts.
Hiring Process
- Ask for a resume and portfolio.
- We arrange a 15 minute phone call interview and ask questions.
- Have an initial interview in person.
- Second in person interview – we provide them a small assignment which takes around 3 hours to gauge their skillset and productivity.
- We confirm their references, and arrange a phone call to discuss the candidate.
- We send them a personality test and review their results.
- Founder, Donna Simmons creates a formal job offer and sends it to the candidate.
- The candidate reviews, and has the opportunity to discuss the offer. If required, revisions will be made.
- The job offer is signed.
Onboarding a New Team Member
- We request their SIN number, address, phone number, email address, legal name, driver’s license #, and bank account / institution #.
- We send this information to our accountant and ensure they are set up properly.
- We then send the new team member an SS Designs – Employee Handbook
- We prepare a start date and propose it to the new employee.
- We send a welcome email to the new employee and CC the rest of the SS Designs team.
- The new employee is welcomed on their first day. The first day is typically quite slow where they shadow other team members.
- Every day for the next 2 weeks we prepare specific training to ensure they understand all processes.
Financial Plan
The following financial plan was conservatively developed including a pro forma income statement, cash flow statement and balance sheet.
Pro Forma Income Statement
Pro Forma Cash Flow Statement
Pro Forma Balance Sheet
