A Full Service Interior Design Firm Looking for Equity Investment

Opportunity Snapshot

  • Country: India India
  • Industry: Construction, Engineering, Architecture
  • Stage: Initial growth (first revenues)
  • Years in operations: 2, Employees: 5
  • Investment size: $50,000 / min. $50,000
  • ROI: 15% in 5 years
  • Type of investment: Debt, Equity

Investment Opportunity

I am looking to expand my interior designing business in Kerala. The service we are providing is decorating commercial & residential spaces.

At this stage I am looking for Investors for funding. I have working experience in the fields of construction and interior designing of 9 + years. I worked with prestigious construction groups like Dodsal Engineering, Desert Designers and others.

The design business enjoys strong demand as people continue to buy or move into new homes and remodel old ones. According to Home magazine, 30 per-cent of Indian & foreign people plan to redecorate or remodel in the next five years, compared with 30 per-cent in the previous five years.

The interior design business is a go–out–of–your–house kind of home business. While doing the business aspects inside the home, most of the sales will be done at the client's home or office as we evaluate the space, match colour swatches to existing furniture and measure windows for draperies, etc.

The growth of this sector and the fact the city that we are going to setup interior designing firm.

Right at this moment in the market, we have a few competitors. We believe based on their offerings and training we will win more profitable jobs due to these lack of skills on their part.
Our interior design business requires basic office supplies and equipment such as computers, telephones, and fax. In addition to the standard word processing and spread sheet software, invest in ArchiCAD & AutoCAD software to present more professional looking design solutions to clients with three–dimensional realism. AutoCAD software will cost from Rs. 2 L to Rs. 5 L depending on the applications we purchase.

We also need to buy books of samples, which are the lifeblood of a design business. Manufacturers of wallpapers, paint and carpets produce samples costing about Rs. 2 L each representing various products in all sorts of design and colors. Try negotiating with sales representatives, as they can give some of these sample books for free, particularly if they see the potential that we can sell their product.

When buying samples, we will be very careful of companies that will require us to purchase pre–selected samples on a monthly basis—even if we don't need it. These samples we can in our office for sales. Wallpaper and large fabric companies are particularly notorious for this practice.

Yearly Operating Expenses
1. Office Rental— Rs 50000 monthly
2. Telephone— Rs. 3000 monthly
3. Office Equipment—Rs. 500000 (for book value only)
4. Software— Rs. 500000 (for book value only)
5. Postage—Rs. 20000
6. Special Tools— Rs. 1000000 (for book value only; )
7. Advertising—50000
8. Company Van—Gas, Repair and Maintain—Rs.50000 monthly
9. Office Staff Salary – one designer – Rs. 25000 monthly
One receptionist – Rs. 7000 monthly

We will develop strategic alliances with local builders, realtors and home improvement firms. This will allow us to have a several lines of revenue into our company.

Competitive Advantage

Right at this moment in the market, we have a few competitors. We believe based on their offerings and training we will win more profitable jobs due to these lack of skills on their part.

The market is mostly scattered, with local interior designers and carpenter designers, small scale business more concentrated on routine than on volume and variety. There is also second line interior designers who started as a company and are gaining markets. However, the market is big enough for all to grow as the housing sector itself is growing here.

After establishing the primary business and the human capital infrastructure, we will focus on market growth and rapid expansion to cover the whole city. As of now the market is simply big enough for all market players to grow without intensive competition. In the long run we will evaluate our strategy to acquire more customers. This strongly depends on how we handle our present customers, so our focus will be on customer satisfaction and building of a strong network.

Rationale for the deal

Because, I feel that it has a great opportunity and a huge potential to un-tap, sort of hidden industry with less market players and enough space to grow as a business.

Kerala is one of the fastest growing cities in India with presence of strong IT and technology related companies with young population and increasing per ca pita income.

The city is expanding, and there are lot of development projects which are underway to expand the city further. For example, in the areas nearby an airport is being developed and there are also Express Highway projects and Metro project. All these developments will increase the property price in the areas it covers.

I will approach Builders, Real Estate Agents, City Developers, Construction Companies, and Architects to get jobs in this fields.

In interior designing business we can earn 20% to 50% depend on work and clients.

I am having 5 years experience in Interior Designing.

Use of financing

Funding is required to setup office - infrastructure, to set up my interior designing firm and to start it up.

As scope we are having in India - at start-up I will need approximately 50 L.

After executing the work with in 6 months more than crores will be requiring as we excel as a builder in market.

Our interior design business requires basic office supplies and equipment such as computers, telephones, and fax. In addition to the standard word processing and spread sheet software, invest in ArchiCAD & AutoCAD software to present more professional looking design solutions to clients with three–dimensional realism. AutoCAD software will cost from Rs. 2 L to Rs. 5 L depending on the applications we purchase.

We also need to buy books of samples, which are the lifeblood of a design business. Manufacturers of wallpapers, paint and carpets produce samples costing about Rs. 2 L each representing various products in all sorts of design and colors. Try negotiating with sales representatives, as they can give some of these sample books for free, particularly if they see the potential that we can sell their product.

When buying samples, we will be very careful of companies that will require us to purchase pre–selected samples on a monthly basis—even if we don't need it. These samples we can in our office for sales. Wallpaper and large fabric companies are particularly notorious for this practice.

Yearly Operating Expenses:

1. Office Rental— Rs 50000 monthly
2. Telephone— Rs. 3000 monthly
3. Office Equipment—Rs. 500000 (for book value only)
4. Software— Rs. 500000 (for book value only)
5. Postage—Rs. 20000
6. Special Tools— Rs. 1000000 (for book value only)
7. Advertising—50000
8. Company Van—Gas, Repair and Maintain—Rs.50000 monthly
9. Office Staff Salary – one designer – Rs. 25000 monthly
One receptionist – Rs. 7000 monthly

We will develop strategic alliances with local builders, Realtor and home improvement firms. This will allow us to have a several lines of revenue into our company.

Opportunity for the investor

We were looking for equity investment for interior designing business.

Looking for similar investment opportunities