If you are planning to start a home decor business, it’s a great idea. Home decor is a multi-billion-dollar industry and is thriving right now.
Even if it has been your hobby and you’ve been passionate about it, luckily, it’s no longer just a hobby; it can be a proper business and, in many cases, a very lucrative one.
Net profit margins in the home decor industry range from 5% to 20%, with gross margins typically falling within the 50% to 70% range. So, even with limited sales, there is a chance to make good money if you price things accordingly and logically and manage them well.
The global home decor market is also growing rapidly. According to Fortune Business Insights, the market was valued at 802.26 billion in 2025 and is expected to grow to $1,097.51 billion by 2032. That’s more than a $300 billion growth opportunity in less than a decade.
That is a huge opportunity for anyone looking to start or get into home decor today.
This guide is for aspiring professionals in home decorations. Maybe you are a creative individual who loves crafting items.
Maybe you are looking for a flexible business that you can run from home, or maybe you are ready to do something more serious and create a real brand.
Having a huge budget or a fancy design degree is not a prerequisite. But making a plan is essential.
With our guide, you will learn:
- Your target market for home decor
- The niches that you can work on
- The items needed to get started
- The processes you can go through to create and market items
- Setting rates and selling through strategic means
- Sustaining growth for your venture
If this guide resonates with you within the home decor industry, it means you are ready to pursue your interests.
On this page:
Choose Your Product Type: What Will You Sell?
Home decor is a broad category, so it’s good to narrow down your niche early.
Think about the type of products you want to focus on—will you create macrame, wall art, candles, or custom furniture?
Or do you prefer to curate items with a specific aesthetic like boho, rustic, or modern?
If you don’t want to go through the hassle of creating a product or storing it, you can opt for private labeling or dropshipping, where you do all the branding and marketing while the stock and shipment are handled by someone else.
Other creators do focus on digital products and online decoration pieces such as wall art or planners, especially people who are more designers than crafters.
Regardless of the path you choose to follow, ensure it is close to your personal preferences but also caters to the target audiences. You are not just selling products but rather helping people create an atmosphere they’d love to have in their homes.
You might also like to explore this business idea: Daycare Business: Costs, Profit Margins, And Challenges
Define your target market
Once you have an idea of what you want to sell, you have to figure out who will actually buy it. Your target market is not simply “people who like pretty things”; it’s much more specific.
- Are you selling to budget-conscious renters decorating their first apartments?
- Or are you targeting buyers seeking luxurious, curated, and handmade items for their opulent spaces?
- Are your clients local buyers attending your craft shows?
- Or are they e-commerce shoppers discovering you via Pinterest and TikTok?
Also, think about trends and seasonality.
Seasonal items such as holiday-centered decorations tend to sell extremely well for certain times of the year, but what happens in the off-season?
Trends in color, style, and lifestyle will influence the items customers look for, like Japandi or maximalist aesthetics, which have been popular lately.
The clearer the picture you have of whom you’re designing for, the more easily you’ll be able to design things they’re going to love, set appropriate prices, and speak to them through your branding and marketing.
Plan Your Business Model
It’s time to think about how your business will operate and function now that you’ve decided what and who to sell. Your model will help you decide everything from sales management to product delivery to customer engagement.
Let’s begin with your place of business.
One of the simplest and most inexpensive options is a home-based business. This works well for digital products and for handmade items that do not require a lot of space.
In addition, these types of businesses offer scheduling flexibility.
On the contrary, a brick-and-mortar store provides customers with the traditional shopping experience. Customers are able to interact with your products, which may improve trust and lead to more sales. The store comes with significantly higher costs, such as rent, staff, and utilities.
Selling through the internet is the most convenient option. You don’t need to rent a physical space. Amazon, Etsy, Shopify, and even Instagram let you create a storefront easily.
| Year | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|---|---|---|
| Global Ecommerce Growth Rate | 6.0% | 9.7% | 8.4% | 7.8% | 7.5% | 7.2% | 6.9% |
The next thing to address is deciding on the selling methods for your products. Selling the item as a one-time sold unit is simple to implement. A customer purchases an item, it gets shipped, and that’s the end of the transaction. It is manageable and works wonderfully with most decorative items.
Another alternative is through subscription boxes, which provide recurring revenue. Clients will receive a box with decorative items on a monthly or seasonal basis. This approach can build strong brand loyalty; however, it depends on well-planned marketing, consistent stock planning, and steady supply chain management.
The next step is to pick the platforms to use. With research, you can choose the best platform according to your business model and products. For instance, Etsy is a great platform for vintage items and handcrafted pieces, as there is an established audience.
And with Shopify, you gain more control over your e-store. If you go for Shopify, you don’t get an established audience, but you can sell with social media marketing, SEO, and PPC.
Local craft fairs and pop-up events are also ideal for face-to-face selling and testing new ideas.
Every approach presents a different set of challenges:
- While working from home is convenient and cost-effective, it may stifle expansion opportunities
- Having a storefront provides visibility and attracts customers, but increases costs. For instance, average rent on NYC’s Fifth Ave is around $2,000 / sq ft; labor costs are up 34 % in a decade.
- An online shop allows a broad reach and flexibility, but requires constant effort in marketing and branding. Global e-commerce will hit $6.56 T in 2025, but YoY growth is slowing (7.8% increase from the previous year), and customer-acquisition CPMs keep rising.
- Stable income can be generated from subscription boxes, but there needs to be dependable systems set up
- Selling on Etsy can be attractive because of the instant visibility, but it comes with fees (6.5 % transaction fee + 3 % + $0.25 payment fee = effective take rate ≈ 10 %) and restrictions.
Having said that, choose a business model that falls in line with your resources, your goals, and what you are comfortable with. Most importantly, start with something small and manageable, and grow from there!
What You Need to Get Started
Starting a home decor business doesn’t have to be expensive, but there are a few essentials you’ll need to get up and running. Below are the key areas to plan for, plus a look at how much it might cost.
Workspace
You will need space to work, create, and store inventory. This can be a spare room, a corner of your living room, your garage, etc. Some home decorators may want to consider renting a storage space for the inventory they have created.
If you are creating smaller items such as candles, wall art, or digital prints, a home studio is ideal. But if you are building larger decor such as furniture, shelving, or custom woodwork, you may need more space that has adequate lighting, ventilation, and storage.
A workspace that is clean and organized will help you stay concentrated and productive.
Tools and Supplies
The tools you will be using will depend on the kind of products you will offer in your store/business.
If you are making a handmade product, you may require glue guns, paint, scissors, cutting boards, rulers, fabric, molds, or power tools.
For packaging and shipping, you will require boxes, bubble wrap, tape, labels, and postage supplies.
If you are reselling or curating products, your tools may be more straightforward, but you will still require packaging supplies, and you may want shelving and storage bins to stay organized.
Software and Digital Tools:
Even a small home decor business requires a few digital tools to help keep everything planned and organized, run marketing campaigns, manage sales processes, and streamline the order shipping process.
To begin with, Canva is a basic design tool that provides stunning templates for product labels, social media posts, flyers, website graphics, and branding. It’s user-friendly and has a free version with plenty of templates.
You’ll likely also need a way to keep track of your stock. There are inventory tools like Craftybase, or you can simply build a spreadsheet if you have a few products to stay on top of your stocks and materials.
And don’t forget about your customers. CRM (Customer Relationship Management) tools like Mailchimp and HubSpot will allow you to store customer information, send emails, and automatically follow up after a sale.
When it comes to selling, platforms like Shopify, Etsy, or Big Cartel are well-liked options. They provide you with a location to manage orders, take payments, and list your goods. You can select the one that best suits your company because each offers the best.
Finally, shipping tools are crucial after you begin receiving orders. You will perhaps want to sign up for shipping services like Pirate Ship or ShipStation, which are helpful for printing shipping labels and tracking packages, and also save you time at the post office.
Even if you are not tech-savvy, you can easily learn how to use most of these tools. For new enterprises, many of them provide free or reasonably priced programs.
Startup Budget: How Much It Might Cost
Starting your home decor company can be an expensive venture, varying depending on your ambition and scope.
If you are starting small and keeping things simple, you may consider spending anywhere from $200 to $1,000, which will allow you to purchase basic materials, packaging, design tools, or an online store.
A full launch with more inventory, branding, a custom website, and advertising can range from $2,000 to $10,000 or more.
| Category | Small Scale | Full Launch |
| Workspace (home or rented) | $0–$100 | $500–$2,000 |
| Tools and materials | $100–$300 | $500–$2,000 |
| Branding and packaging | $50–$200 | $500–$1,000 |
| Website/platform setup | $50–$200 | $300–$1,500 |
| Marketing and ads | $0–$200 | $500–$2,000 |
Legal Setup and Business Essentials
Establishing a store, creating products, and developing a brand are all fun. But before you jump into selling, there are a few official steps you need to follow. It might not be the most thrilling part, but it’s really important, and honestly, it’s not as hard as it sounds.
Give your company a name and register it:
First, decide on a name for your company. Make sure it’s not already taken, fits your style, and is simple to remember. You can use the government website or your local business registry to see if a name is available.
| State | Direct Link to Name-Search Tool |
|---|---|
| California | bizfileonline.sos.ca.gov |
| Texas | Comptroller Free Search |
| Florida | dos.fl.gov/sunbiz |
| New York | Corporation & Business Entity Database |
| Delaware | icis.corp.delaware.gov |
| All 50 states | Free Business Name Search |
You can check the trademark from the official trademark database.
After deciding on a name, register it. You can do this online in most places. You might register as an LLC, sole proprietor, or another kind of business, depending on where you live.
Licenses, Permits, and Insurance
Next, see whether you require any permits or licenses. Some cities or states require a home business license, no matter where you are working from.
Getting business insurance is also a good idea. It safeguards you in the event that something goes wrong, such as a product breaking or someone being harmed by something you created.
Create a Business Bank Account
It’s best to keep your business financials separate from your own. A business bank account helps you keep track of expenses, control incoming cash, and supervise your records.
In addition, when you want to grow or need a loan, having a completely separate bank account will make your life much easier.
Manage Taxes and Keep Records:
You will have to pay taxes on your revenue at some point. Once you are off to a start, it is helpful to sit down with an accountant or tax professional. They can help you know what you need to track and when you need to file.
Record everything you can; make sure you track sales, costs, annual fees, shipping costs, and receipts. You can use rudimentary spreadsheets or free accounting tools to help you with the management.
Setting Prices for Your Products
Getting pricing right is crucial for your business. Price too low, and you’ll lose out; price too high, and customers might just walk away.
There are a couple of common methods for figuring out prices.
First up, there’s cost-based pricing. This approach involves calculating how much it costs to make your product and then adding a markup.
For instance, if a candle costs you $10 to produce and you want to make a 50% profit, you’d sell it for $20. This method is especially effective for handmade items, where costs are pretty straightforward to track.
On the other hand, there’s value-based pricing. This one hinges on what customers are willing to pay.
For example, if a stylish ceramic vase costs you $8 to source and it looks trendy with a high-end appeal, you might be able to list it for $30 or more. In this case, the value is based on the vase’s chic style or brand, rather than the cost of materials alone.
Also, when pricing, it’s critical to consider all the hidden costs as well. You want to consider the cost of shipping materials, platform fees, taxes, and the time to create or pack the item. If you forget any of those costs, you could lose your profits before you realize it.
For example, if you are creating a handmade macrame wall hanging and the cost of the materials is $15, the packaging is $2, plus 2 hours of your time. If you plan to pay yourself $15/hour, that’s another $30.
And if you take into account Etsy’s listing and transaction fees, then you are at about $50 total. To make any money, you would need to price the wall hanging at least $70.
Also, consider how your pricing portrays your type of business. Handmade products generally demand higher prices due to labor and uniqueness.
Dropshipped products will typically have lower margins, so you may need to sell more to reach your profit goal. Curated items that you find, source, and sell could also vary widely depending on style, rarity, and branding.
For instance, you buy a curated boho-style throw pillow wholesale for $12; with branding and images, you can sell it for $35. A mass-produced pillow you find through a dropship company may need to be priced under $25 to be competitive.
Ultimately, no matter which model you operate under, the objective is the same: cover your costs, pay yourself a fair wage, and leave room for profit.
Also, remember, pricing is not a “set it and forget it” plan. You can always test, adjust, and improve your pricing structure as you figure out what your clients are looking for and how much they are willing to spend for it.
Building Your Brand
Your brand is more than just a name.
- It’s the emotion people feel when they enter your store, open your package, or scroll through your Instagram feed.
- It’s what differentiates you in a crowded marketplace.
To begin with, select a name that is easy to remember, spell, and say out loud.
The name should represent your aesthetic and the items you sell.
For instance, if your work is focused on clean, minimal design, a name like “Still & Simple” is more fitting than a more whimsical name like “ColorPop Decor.”
Once you have an established name, you will probably want to design a logo that fits your style.
You can create one yourself with Canva or hire someone from Fiverr or 99designs.
Next, create your brand story.
Brand stories outline why you started your business and your inspiration, and for whom you are designing.
No need to write an epic saga; just a few sentences about your style and mission can help your customers connect with you.
Additionally, your brand aesthetic should be specific and consistent. That includes your colors, fonts, your product photography, and even how you write your captions. Do you want to come off soft and calming? Bold and modern? Vintage and rustic? Decide on one direction, and stick with it.
Product photography is a big part of this! Clear, well-lit photos for your shop and social media build trust.
You don’t even need a fancy camera; a phone works fine if you shoot in natural light. Take close-ups, lifestyle shots, and plain background shots. For example, if you sell handmade ceramic mugs, show the mug on the shelf, sitting in a hand, and maybe next to a book with coffee in it.
Customers want to see how it feels to use it. Make sure to use a good light source when taking the product photography.
Finally, you want your online presence to be cohesive and professional. Just a small, simple one-page website with your logo, product pictures, and a simple About section is enough to lend trustworthiness.
If you are on Instagram, the colors, tones, and photo styles you use on your website should translate onto social media. Just make sure your bio clearly indicates what you are selling and who it is for, and include links to your shop or an email signup.
Branding is about being consistent, not complicated. Start with simple choices and just keep showing up with the same look, tone, and message.
As time goes on, people will start to recognize you. And they’ll keep coming back because they appreciate how your brand makes them feel.
Marketing Your Home Decor Business
No matter how stunning your home decor items are, they won’t sell unless they get in front of the right people. So, to get clients, you need to promote your business.
That’s where effective marketing can make a difference; it helps bring your products to the attention of those who will appreciate them.
Leveraging Social Media
First off, social media is a game-changer. Instagram, Pinterest, and TikTok are the best platforms for home decoration business promotion.
These three platforms are visually driven and fast-paced, and people there require design inspiration.
Instagram is great for setting up your brand. You can also upload behind-the-scenes content there to emotionally attach your audience to your brand. And you can also sell your products here.
Pinterest, on the other hand, brings people to your website or Etsy shop.
TikTok is also growing fast and can reach a lot of people with your content in no time.
Suppose your product is handmade wall art. All you need to do is record a short video of your product-making process. Add in a calming song and disclose the story of the piece, together with a hyperlink, in order to buy.
People truly enjoy seeing how products come to life.
Implementing Local Marketing Activities
But why only stop at social media? Local marketing activities can get you good results as well.
Local craft fairs, pop-up booths, and networking with local realtors and home stagers can all be helpful options.
Offering decor style services for open houses or assisting local Airbnb hosts can be a great way to inspire many new clients. You may also want to think about partnering with local boutiques to display some of your pieces in their shops!
Utilizing Content Marketing
In addition, content marketing is a fantastic way to showcase your expertise and establish credibility with future purchasers.
This can entail writing blog posts, creating YouTube or video content, or doing tutorials. You could write a blog post titled “5 Ways to Style a Small Living Room” or shoot a quick video on how to style a gallery wall.
When people discover useful and engaging content, they are much more likely to remember you and purchase from your business in the future.
Collaborating with Influencers and Running Giveaways
Another great way to broaden your audience is by working with influencers. They will charge money, but the results will be instant, and you can expect 200 %–420 % depending on the niche.
Look for small home decorating influencers whose style is similar to your own. You can give them a free product in exchange for a post or a story highlighting your work.
Giveaways will also get you noticed right away. Partner with an influencer or some other small business and encourage individuals to follow, like, or share in order to enter the giveaways.
Mastering Email Marketing:
Email marketing is one of your best long-term tools. Some people have claimed they made $36–$44 revenue for every $1 spent, which is 3,600 %–4,400 % ROI (return on investment).
Begin by gathering emails at your site or at events. Offer them a small discount, like 10% off their first order.
Subsequently, send reports once or twice a month. Write about new products, decoration tips, or behind-the-scenes information.
Keep your emails brief and valuable; the goal is to keep in touch without bombarding your subscribers.
That said, marketing doesn’t have to be super complex. Start with one or two strategies and stick to them. Stay consistent in your presence, and always keep your messaging clear. In the end, make sure you give people a reason to care about what you’re offering.