Properties staged, or ready in advance to increase attractiveness to the buyer, sell for up to 20% more than non-staged properties, and more than 80% of real estate brokers find it simpler to sell a property that has been staged. Home staging may be a successful company with the increasing demand, particularly for creative people who can collaborate with real estate brokers.
Starting a home staging business is difficult and demands research, planning, and expertise. You may start your entrepreneurial road to a prosperous home staging firm with the help of this step-by-step manual, which offers all the knowledge and expertise you need.
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
| Increasingly Popular – Home staging is in high demand. High margins are possible with low expenditures. Fun! – You’ll like your career if you have a creative mind. | Investment Growing – As your inventory expands, it may get more expensive. As the real estate market changes, business will as well. |
Industry Trends
Staging is more often done and is available at all pricing tiers. In the past, staging was only done when a property had a problem, like a bad view, but now it’s commonplace, even in higher price ranges where you’d expect the homes to already present themselves well. According to the IAHSP survey, staging was used in over 20% of properties selling for between $500,000 and $500,000 in 2019 that were in the $350,000 to $500,000 price range.
- The International Association of Home Staging Professionals (IAHSP) estimates that 5 million houses were sold in the US in 2019 and that around a million of those sales required staging.
- Forecast for growth: In 2023, 7 million new homes are expected to be sold. [2] Home staging is becoming more popular because it is effective. The IAHSP estimates that staged homes may sell up to 30% more quickly and for up to 20% more money than non-staged properties.
- Fewer than 10,000 professional home stagers operate around the globe, according to the IAHSP.
- Realtor.com predicts that house sales would rise by over 7% in 2022, which is fantastic news for the home staging sector.
- According to a National Association of Realtors (NAR) poll, home staging influenced the opinions of the majority of purchasers and made it simpler for them to picture the property as their future residence for 82% of agents.
Cost of Starting Home Staging Business
An estimated $3,500 to $14,000 is needed to launch a home staging business. The inventory of products you’ll need for staging is where your major expenses will be. You can begin with a few used things and eventually add more to your inventory.
Investment Items:
- Various pieces of furniture
- decor for the home
- Ladder
- Dollies
Is Home Staging Business Profitable?
The typical cost of home staging is between $300 and $600 for an initial design consultation and between $500 and $600 a month for each room while the house is on the market. This amount essentially covers both the staging itself and the cost of renting the staging supplies. Your profit margin should be around 80% after deducting the cost of shipping the goods and gasoline.
You might stage five homes each month while working from home in your first year or two, billing $400 for the first consultation and $500 per month for an average of two months. If you use an 80% margin, this would net you $84,000 in revenue per year and $67,200 in profit.
Sales might reach 20 homes each month as your brand becomes more well-known. At this point, your margin would be down to 40% since you would have hired workers and rented a facility to keep your goods. You’d still come out ahead with a nice profit of $134,400 on an annual income of $336,000.
Entry Barriers
- Strong connections with realtors will take time to establish.
- To stage your space, you must get high-quality props.
Step 2: Create a Strategy
Now that you are aware of the requirements for beginning a home staging company, it would be a good idea to develop your idea before competing in a crowded market.
Even if you already know you have the ideal product or service, market research will give you the edge. Market research is crucial since it may aid in your understanding of your clients, your rivals, and your industry.
Identify a Gap
Look into local home staging firms to compare their services, costs, and feedback from clients. You’re aiming to fill a market gap. For instance, perhaps a cheap house staging business is needed in the area.
Your word-of-mouth advertising may pick up steam as a result, drawing customers in immediately.
Solutions
- Organizing clutter and moving furniture and other objects are basic staging techniques.
- staging in which props are brought in to set up entire rooms
- Contractors are hired to paint and remodel as part of full staging.
Pricing
A first design consultation might cost anything between $300 and $600. For the remainder of the house’s time on the market, the price will be $500–$600 each month. When starting off, your main continuous expenses should be getting things delivered and put in the house and paying for petrol.
To calculate your markup and final price point after knowing your costs, utilize our Step By Step Profit Margin Calculator. Keep in mind that the launch price may need to be adjusted if the market justifies it.
Target Market
Realtors who will recommend you are primarily your target market. Both business-related websites like LinkedIn and real estate websites like Realtor.com have them listed.
Location
You could wish to start your business from home in the beginning to save money. However, when your company expands, you might need to recruit personnel for a variety of positions and rent an office with a storage area for your staging supplies. Use websites like Craigslist, Crexi, and Instant Offices to find rental opportunities for business space in your neighborhood.
These general guidelines may be helpful to remember while selecting a business space:
- Central site that is reachable via public transportation
- Large, well-ventilated, and well-lit
- As your firm expands, you may extend your flexible lease.
- Unrequited big repairs or renovations, ready to utilize area
Step 3: Write a Business Plan
Every organization requires a plan. This will serve as a manual to help you launch your firm and stay focused on your major objectives. A business plan also aids in the better understanding of your firm and its goals by possible investors and partners:
- A concise synopsis of the full business strategy should be prepared as the executive summary.
- Overview of the business, including its vision, mission, ownership, and goals.
- Products and Services: Clearly describe what you have to offer.
- Market Analysis: Conduct a SWOT analysis and evaluate market trends, such as variances in demand and development potential.
- Competitive Analysis: Examine your top rivals, identifying their strong points and areas for improvement. Then, outline the benefits of your offerings.
- Sales and marketing: Consider your firms’ USPs when you create sales, marketing, and promotional plans.
- Overview of the management team, including a description of each member’s responsibilities and history in the business.
- Operations Plan: Your company’s operational plan covers logistics, office location, essential assets, and other information like purchasing.
- Financial Plan: A three-year financial plan that includes initial expenses, break-even calculations, projected profits and losses, cash flow, and a balance sheet.
- Add any extra financial or business-related papers to the appendix.
Step 4: Create a Marketing Plan
Even if some of your clients will be random internet users, you should nonetheless spend money on digital marketing! It’s crucial for new firms to spread the word since it will increase brand and client recognition.
Establish links between your social media accounts and your website once it is up. The ability to generate interesting posts that promote your items on social media makes it an excellent tool for company promotion:
- Facebook is a fantastic paid advertising tool since it lets you target particular demographics, such as males under 50 in the Cleveland region.
- Instagram offers the same advantages as Facebook, but with distinct target markets.
- Website: SEO will make your website more visible at the top of relevant search results, which is essential for boosting sales. Make sure to optimize your website’s calls to action. Test different text, color, size, and positioning options for calls to action such “Schedule Consultation Now.” This may significantly enhance sales.
- Google and Yelp: For companies that depend on local clients, listing on Google My Business and Yelp might be essential to attracting attention and clients.
- Distribute fliers throughout your area and at professional events.
- Offer your services to realtors during in-person sales.
- Create a video describing your product and post it online. If you use comedy, it could become popular online!
- Send frequent emails to clients, prospects, and realtors as part of your email marketing or newsletter strategy. Make them your own.
- Create a blog. Post consistently on your new blog. Share your stuff on other websites while changing it up.
- Encourage consumer recommendations of new clients by providing incentives.
- Paid social media advertisements should be placed on platforms that will allow you to reach your target audience.
- Pay-per-click advertising: Use Google AdWords to rank higher in search results. First, do some keyword research.
- Create a podcast to help you connect with your audience on a more personal level. For small company entrepreneurs, check out these intriguing podcasts.
- Case studies – Share case studies demonstrating how your staging resulted in a significant sale!