Interior Design

Name: Reda Alsaleh

Professor: Dr Affholter

Subject: Semester Project Report

Date: Apr 19, 2014

Interior Design Business Model
The Great Lakes Bay Region is one of the fastest growing residential areas in the region.
This rapid growth comes with demand for interior design dcor services to cater for the
residents interior dcor needs. Currently, there is no interior design business in the area to cater
for these needs and residents have to look for these services far from the area, which is not only
inconveniencing, but also very costly. A business in Interior design Dcor is highly desirable to
offer the services to the residents. Such a business will tap into the fast growing population and
be profitable because the demand for the services and goods for interior dcor is very high. This
paper is a description of a Business Model for an Interior Design Dcor Business in the Great
Lakes bay Area.




Interior Design

Justification for the Business Model
The Great Lakes Bay area has the highest population in the wider Saginaw County as
follows:

Figure: Graph of the 2009 Population in Saginaw County and the Region (United States
Census Bureau)
The population of Great Lakes Bay Region grouped in age groups can be represented as follows
Age Bracket Size % of the Population
0-17 Years 92,828 23.8%
18-65(Core Working Group) 240,650 61.7%
Over 65 Years 56, 554 14.5%
Table: Age groups of the Great Lakes Bay Region Population (United States Census Bureau)
From the information above, two things are noticeable. Firstly, the population of Great
Lakes Bay region is high and can give an adequate market for the interior design businesss
goods and services. Secondly, the age bracket of the working group, which is very valuable in
33,345 55,238
200,050
390,032
0
100000
200000
300000
400000
500000
Saginaw
Charter
Township
City of
Saginaw
Saginaw
County
Great Lakes
Bay Region
Saginaw County and Regional population
census(2009)
Saginaw and Regional
population census(2009)
Interior Design
such a business, represents 61.7% of the total population in the region. This group represents
homeowners and new homeowners especially in the age bracket of 30-40years (United States
Census Bureau).
Further, from the market research carried, it was revealed that the region does not have
any interior design dcor business and residents depend on services from businesses in Saginaw
and Midland, which are far from the area and hence highly inconveniencing. This far away
business as well as individual interior designers are the main competitors in this business
segment. The cost of sourcing the services from out of the city was also very prohibitive, with
residents reporting expenditures of 40% higher than the industry rates. In addition, most
residents who had used those services of the interior designers were not satisfied with the
services or products.
The research also revealed that most residents in the area were warming up to customized
interior dcor designs, which represents a great market potential for the business. As such, the
business will offer customized services to suit the needs of customers. The business will bring a
wide range of products and services, which will be achieved through establishment of supplier
linkages. The business will serve homeowners in the 20-60 year age bracket, a population
segment that constitutes majority of the working class and homeowners in the region (United
States Census Bureau).
Discussion of the Business Model Canvas
There are different factor of consideration in the Business model for the Interior Design
Business. These factors are crucial in ensuring that the business runs sustainably and profitably.

Interior Design
Key Partners
Key partners are very important as they provide the motivation, resources and
opportunities for growth for a business (Osterwalder). The Interior Design Business will have
different partners including the government, suppliers and customer relations.
The government represents different regulatory authority, which control the licensing and
the operations scope of business. The business will work closely with different regulatory
authorities to ensure that there is compliance to all statutory guidelines to avoid problems, which
may hinder the growth of the business (Osterwalder). Working closely with government ensures
that a business is compliant with different tax, quality and environment regulations and avoids
incurring costs from non-compliance. Further, the government is mandated with creating jobs for
its population and thus, working closely with the government may open opportunities, which
may propel the interior design dcor business. Such opportunities may include low interest
financing and government tenders.
The suppliers for interior dcor products and services are most important in the business.
The business will establish a close working relationship with the suppliers in a bid to ascertain
that the business is capable of offering a wide variety of services and products. This partnership
is because suppliers have become an essential part of any business as this allows closer
collaboration to identify innovate ways of supplying the core services and products.
Another important partner is the media. Media gives a business much needed publicity,
which not only improves awareness of the business, but also leads to more clients and more
business. The interior design dcor business will focus on establishing a close partnership with
the lifestyle and homes magazines to feature innovative projects that the business will be
Interior Design
undertaking. Further, the media will offer a good platform for advertising, which will allow the
business to flourish.
The local community provides the customers for the business. With this in mind, the
business plans to be an active member in various activities in the society. Further, the business
will offer internships to interior design students to give them the much-needed hands on
experience. This will create a good name for the organization, which will also lead to more
satisfied customers.
Key Activities
The key activities for the interior design business will involve the provision of services
and goods to customers in the Great Lakes Bay region. The products and services will include
dcor fabrics, accessories and art pieces, interior shutters, interior design services and furniture
through special purchase arrangement with furniture dealers in the Bay area. Other products and
services will be offered after a customer valuation on interior dcor.
Value Proposition
The business will offer unique client experience by ensuring that the staff is highly
trained and professional, which will make sure that clients demands are met and expectations
exceeded. Further, the business will provide a wide range of services and goods in the same
building including new and antique furniture, accessories and customized dcor fabrics. Services
and products, which the business cannot offer, will be sourced through the elaborate supply
network established by the business. In addition, the business will bring personal assistance
services for special products, services to ensure the objectives of each project are met, and
customer needs satisfied. Lastly, the business will offer discount for loyal customers.
Interior Design
Customer Relations
The business is guided by the principle of the customer is the king and as such, it is at
the core goal of the business to have strong customer relations. Firstly, the business will offer a
wide variety of services and products, all under one roof. This saves the customers a lot of time,
which they would have spent moving from one shop to another. The business will also offer
customized services to customers by giving them the opportunity to have a choice for the dcor
they want. With a professional and highly trained team, the business will meet these special
requests for different dcor choices according to customer preferences. All this efforts will be put
in place to ensure that the business has loyal customers to drive the sales and ensure
sustainability of the business.
Customer Segment
The business will serve the population of the Great Lakes Bay Region, which has a
population of 390032, where 61.7% of the population represents the working group from 18-65
Years (United States Census Bureau). The business will also offer the services and products to
the wider Saginaw County. The main customers will be between the ages of 30-40, and will
mostly be young families as well as businesses under establishment. Further, the customers will
mostly have offices and homes valued at UDS$32,500 and higher. The targeted groups have
offices or homes in the region. At the beginning, the business will serve 1000 homes and offices
in the region.
Channels
The business will establish working channels to maintain customer and supplier-business
communication. Firstly, the business has open contact telephone numbers for enquiries from
Interior Design
customers. In addition, the business will offer follow up support after the services to ensure that
customers are satisfied with the services.
Cost Structure
The cost structure of the business consists of the funds to start and running costs, broken
down as follows:
START-UP COSTS
Premises USD$ 1000
Recruitment of three attendants USD$ 600
Supplies USD$ 1500
Website USD$ 150
Licenses USD$ 180
Running Costs USD$ 1000
Miscellaneous USD$ 500
TOTAL USD$ 4930
Table: Cost Structure
The business will be financed through personal savings. However, banks will be valuable
sources of more funds through loans.
Revenue Stream
The business will offer a variety of services and products, which will provide the revenue
stream for the business. The goods and services will include dcor fabrics, accessories and art
pieces, interior shutters, interior design services and furniture.


Interior Design
APPENDICES
Business Model Canvas
Key partners
Key partners
include interior
dcor suppliers
Customers
relations
Local
Community

Key Activities
Require
customer
valuation on
interior decors
Value
proposition
Discounts on
loyal customers
Unique
Customer
Experience
A Wide range of
services and
products
Customer
relation
Choice of dcor
Variety
Customer loyalty
Customer
segment
Family homes
Individuals
Office
Channels
Manage after
sales through
phone support
Cost Structure
Important cost model are:
Startup funds
Running costs
Revenue stream
Revenue stream
Design of interior items
Decorating interior decor





Interior Design
Works Cited
Osterwalder, Alexander. The Business Model Ontology-A Proposition in a Design Science
Approach. New York: University Press, 2004.
Romig, Walter, LHD. Michigan Place Names. Detroit, MI: Wayne State University Press, 2004.
United States Census Bureau. United States Census Bureau-Saginaw. 1 April 2010. 8 April 2014
<http://www.census.gov/geo/landview/lv6help/coastal_cty>.