So you have a passion for interiors and a creative eye for detail. Interior design and decorating may be your forte. However, one of the hardest things for freelance creatives to overcome is getting your business started in the first place. Unfortunately, these responsibilities exist when setting up any business, and you cannot avoid them. Accordingly, this article contains some helpful information on how to start an interior design business to help you on your way.
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Business structure
The first thing you will need to determine is your business structure. Are you looking to form a company or register a business as a sole trader? There are some important differences, and benefits to both. As a company, you will limit personal liability. For example any damage done to property by contractors could result in liability. In the regrettable, albeit possible instance that this happens, you want to distance your own personal assets from the business.
However, companies are not without their pitfalls. It is common for freelance creatives that the next payday can be uncertain. As such, you may need to dip into business money for your own personal use from time to time. As a company, you will not be able to make personal drawings, and any expenses outside of that which constitutes day to day running of the company cannot be drawn from the company account. Companies also cost more to register, and require greater administrative protocols and maintenance.
Conversely, registering a business name as a sole trader allows you to make personal drawings, as you are not required to setup a separate bank account. However, keeping your personal and business finances separate is always advised. You can always begin as a sole trader business and then transfer your business name to a company should your business grow and evolve over time. Tax law applies to either business structure in different ways. Therefore, it is wise to think properly about which will be most suitable for you prior to starting. The Australian Government Business website contains further guidelines on this.
Legal documents
Whilst the interior design business is a creative domain, there are still a number of legal considerations to make. As with any business, it is important to safeguard yourself through having the requisite legal documents at your disposal. We have listed a few for you below.
- Statement of Work that forms part of your contract. This outlines project proposals, timelines, costs, objectives, and estimated schedules and completion times.
- Non-disclosure agreement to protect your intellectual property, as well as protect the privacy of any clients
- Contractor and subcontractor agreements for project work outsourced to third parties. This is especially important as a big part of the interior design business is project management
Website & marketing
In today’s modern world, an online presence is key. It is important to showcase your work so that people may see what you are capable of. This may be displayed on various social media platforms, or may be centralised through your own website. Below are some really important points for you to consider when going through this process.
- Try to get a matching domain. It can be difficult to funnel people to your website if it differs too much from your brand
- It may be worth speaking to a trademark lawyer to see how best you can protect any branding associated with your business name
- If people are using your services through your website, you must legally have a Terms and Conditions or Terms of Service
- You must also ensure that you abide by and follow any legal obligations you have to fulfil in respect of Australian Consumer Law. Marketing can be very useful in giving you the upper hand, but making sure your marketing strategies are all legal and above board is paramount
Starting a business can be a daunting task. However, if you do your research and are thorough in your preparation, there is no reason why you cannot succeed. Although being a creative may place limitations on your ability to deal with the legal aspects of a business, they are still incredibly important. If you are unsure about your situation, it is recommended you speak with a business lawyer.
