Starting your own design business is an important milestone. Top-notch design is a key business asset that can have a significant impact on customer engagement. The design market is vast: the global graphic design market alone was worth $57.5 billion in 2023.

The success of your design business will come from finding the intersection of your passion, your skills, and the problems your clients need you to solve. Below, we’ll walk through the steps, decisions, and tactics you need to start your design business off right.

What’s in this article?

• What types of services can a design business provide?
  
• What skills and tools do you need to start a design business?
  
• What are the legal steps to start a design business?
  
• How do you price your design services?
  
• What are the best ways to find clients for a design business?
  
• How can Stripe help manage payments for a design business?
  

What types of services can a design business provide?

Design businesses provide many different types of services, including the following:

• Graphic design: Graphic designers are the architects of a brand’s visual identity, including logos, branding, packaging, and social media templates.

• Web design: This field needs creatives who blend beauty with function. If you’re excited about user experience and interfaces, it could be a good fit.

• Interior design: Interior designers create environments that shape experiences, from homes to commercial spaces.

• Product design: This involves sketching and making prototypes for physical products or digital applications for both usability and appeal.

• Motion design: This field is ideal for storytellers. Motion graphics add life to static visuals, whether for ads, explainer videos, or in-app animations.

Other possibilities include illustration, industrial design, and even services such as presentation design and event styling. Specialisation makes you indispensable to a specific audience.

What skills and tools do you need to start a design business?

No matter what your design focus is, certain skills are non-negotiable. Here’s what you’ll need in your arsenal.

Required skills

• Design fundamentals: Obtain mastery of typography, colour theory, composition, and other principles that underpin great design.

• Creative problem-solving: Design both creates aesthetic appeal and finds elegant solutions to real challenges.

• Client management: Be a good listener, manage expectations, and learn how to handle feedback with grace.

• Business-savvy: Budgeting, time management, and pricing tactics can keep your business in good standing.

Required programs and software

• Creative software: Adobe Creative Cloud remains the gold standard, but programs such as Figma, Sketch, and Canva can also play a part.

• Project management: Trello, Asana, or Notion can help you manage deadlines and keep clients informed.

• Portfolio platform: Behance, Dribbble, or even your personal website can showcase your work to potential clients.

• Payment systems: Stripe can help with the financial side, from sending invoices to accepting payments.

Your portfolio

Your portfolio tells a story about what you do best. If you’re just starting and don’t have paid client work yet, execute mock projects. Redesign a brand you love or create a conceptual interior for a dream client. Showcasing your vision can be just as compelling. Your portfolio should include:

• High-quality visuals

• Brief case studies that explain your process and results

• A mix of personal passion projects and client work

What are the legal steps to start a design business?

Here are the legal steps for building a successful design business.

Choose a business structure

This determines your legal obligations and tax responsibilities. Here are the most common options:

• Sole proprietorship: This is simple to set up, but you’re personally liable for debts and legal actions.

• Limited liability company (LLC): This offers liability protection by keeping personal assets separate from business liabilities.

• Corporation: This also provides liability protection but involves additional reporting and other requirements. It’s most suitable for larger ventures.

Consider consulting a small business advisor or accountant to decide what works best for you.

Register your business

Once you’ve chosen a structure, register your business with your national or local government. In some places, it’s not required to register a sole proprietorship, but you might need to file a “doing business as” (DBA) name. Limited companies need to file articles of organisation, and corporations must file articles of incorporation. Depending on your location and design niche, you might also need to acquire specific permits or licences.

Get a Taxpayer Identification Number (TIN)

Obtaining a TIN, such as an Employer Identification Number (EIN) in the US, can simplify tax filings and open the door to business banking. It’s free and can usually be done online in minutes. Businesses that plan to hire employees are typically required to have a TIN.

Protect your intellectual property

Your designs are your assets. Safeguard them with the following:

• Copyright: This applies to your designs automatically, but you can formally register it for added protection.

• Trademark: This covers your brand, including your business name, logo, or slogan.

• Contract: This outlines who owns what and prevents disputes with clients over usage rights.

Open a business bank account

Separating your business finances from your personal finances will make life easier when it's time to file taxes. With a dedicated account, you can also use Stripe’s payment solutions, which keep client funds safe and in one place.

Obtain business insurance

Consider getting coverage for the following:

• General liability: This covers accidents or property damage.

• Professional liability: This protects against claims of negligence or mistakes.

• Cyber liability: This covers financial losses caused by data breaches.

Comply with local tax and employment laws

If you’re hiring, familiarise yourself with local employment laws. Even if you’re a sole proprietor, you’ll need to track income and file taxes correctly. Some jurisdictions might also require sales tax collection for certain design services.

How do you price your design services?

Pricing your design services can be difficult. Charge too little and you undervalue your work, burn out, or attract the wrong clients. Charge too much and you risk pricing yourself out of the market. Here’s how to find a sweet spot that reflects the value you provide while keeping your business sustainable.

Understand your costs

Before you set any rates, get a firm idea of what it costs to run your business. Consider the following:

• Fixed costs: Software subscriptions, website hosting, insurance, or workspace expenses

• Variable costs: Materials, outsourcing, or equipment upgrades

• Your time: Administrative tasks such as emails, proposals, and revisions

Your pricing should cover these expenses and leave room for profit.

Know the pricing models

Different projects call for customised fees. Here are three common ways to price design services:

• Hourly rates: This model is best for open-ended projects or when the scope is unclear. To calculate an ideal rate, divide your desired annual income by your expected billable hours in a year. You can determine your billable hours by multiplying the number of business days you expect to work in a year by the number of billable hours you expect to work each day.

• Flat or project fees: This model is ideal for well-defined deliverables such as logo designs and website layouts. It appeals to clients because it provides cost certainty. To calculate these fees, estimate the hours required, multiply that number by your hourly rate, and add a buffer for revisions or unexpected costs.

• Retainer agreements: This is a great option for ongoing relationships. Clients pay a recurring fee for a set number of hours or deliverables each month. This provides financial stability for your business.

Research market rates

Learn what other designers in your specialism and region are charging. Websites such as Upwork and Glassdoor can provide roughly estimated figures, but networking with peers or joining industry groups often yields more specific insight.

Communicate value, not just price

A logo that strengthens a brand or a website by converting visitors into customers has value far beyond the time it took to create. Frame conversations around outcomes to position your services as investments, not expenses.

Factor in extras

Remember to account for the following:

• Revisions: Include a set number in your agreement and charge for additional changes.

• Rush jobs: Account for projects with tight deadlines, which warrant higher rates.

• Licensing: Charge for usage rights if clients will use your work extensively (e.g. on packaging or ads).

Adjust over time

Pricing isn’t static. Reassess your rates annually or as your experience grows. Clients who value your work will accept reasonable increases, especially if you provide consistent quality.

What are the best ways to find clients for a design business?

Finding clients for a design business involves showing your work, building relationships, and staying consistent. Here’s an overview of what to do.

Show off your work

• Enhance your portfolio: Your collection of work is your most valuable asset. Showcase your best projects, and ensure they reflect the type of projects you want to do more of.

• Get it online: Use platforms such as Behance and Dribbble, where clients often go to look for designers. Or create your own website.

Network

• Go to industry events: Design meetups, conferences, and trade shows are great for making real connections with people who can turn into clients.

• Use social media to connect: Share your work on LinkedIn or Instagram, and interact with people if they respond. Initiate conversations and build connections.

• Ask for referrals: Happy clients can be your biggest advocates. Don’t hesitate to ask them to spread the word or introduce you to people in their networks.

Get help from freelance platforms

• Sign up for freelance sites: Platforms such as Upwork and Fiverr can be inconsistent, but they’re a good way to find initial clients or build relationships.

• Check job boards: Sites such as We Work Remotely and Wellfound often have design gigs, especially for startups.

Partner with other pros

• Collaborate with agencies: Design agencies, particularly smaller ones, often outsource work. Contact them and let them know you’re available.

• Team up with related services: Developers, marketers, and copywriters often need designers for their projects. Build relationships with these people; they can send you steady referrals.

Share what you know

• Write about your process: Help potential clients see your value with case studies that explain what you did and the results you got.

• Teach or create content: Share tutorials, design tips, or trends you’re noticing. This shows you know your stuff and builds loyalty with your audience.

• Give freebies: Provide complimentary templates or small design resources, which can attract attention and showcase your skills.

Build your brand

• Find your niche: It’s easier to distinguish yourself if you have a speciality, such as branding for restaurants or user interface design for apps.

• Stay consistent: Ensure your branding (logo, website, social media) looks as polished as the work you deliver.

Contact clients directly

• Send personalised emails: A thoughtful email that explains how you can help a potential client can be more effective than a generic pitch.

• Send DMs: Direct messages on social media can work too, as long as they’re polished and customised.

• Follow up: Don’t assume silence means no. Sometimes it just takes a follow-up to secure the gig.

Let clients speak for you

Testimonials from past clients help build credibility. Share them on your site or when you pitch new clients.

Get involved in design challenges

Competitions or challenges can be a good way to display your abilities and get your name out there. Even if you don’t win, the exposure can lead to work.

Consider local resources

• Contact nearby businesses: Local cafés, shops, or other small businesses often need design help but don’t know where to begin.

• Join local groups: Get involved in your town’s or city’s business scene. Local connections can turn into steady clients.

How can Stripe help manage payments for a design business?

Stripe can help design businesses manage all aspects of the payment process. Here’s how.

Make paying feel effortless

With Stripe, you can send a simple payment link on its own or embed it in a digital invoice, and your clients can pay by card, bank transfer, Apple Pay, or even international payment methods.

Charge for milestones or phases

Big projects often mean splitting payment into stages (e.g. 50% upfront, another 25% after the first draft, and the rest on delivery). Stripe lets you schedule or automate those payments so that you’re not chasing clients or worrying about whether that final payment will come through before you hand over files.

Create recurring revenue with retainers

If you’re working with clients who need regular updates – such as social media graphics and monthly site tweaks – you can use Stripe to set up subscriptions. It handles the recurring payments automatically so you don’t have to keep sending invoices or following up manually.

Sell design templates without a hassle

If you have templates, icons, or other digital assets sitting on your hard drive, why not sell them? Stripe lets you easily create a checkout page for digital products so clients or other designers can buy them directly. It’s an easy way to add another income stream without additional effort.

Simplify working with international clients

When you work with overseas clients, Stripe handles currency conversions for you. Your client pays in their currency, you receive payment in yours, and nobody has to calculate exchange rates.

Automate the tedious stuff

Stripe can connect with apps you already use, such as QuickBooks and Slack. For example, you can set it up so that every time you get paid, it updates your accounting software, sends you a Slack notification, and logs the payment into your customer relationship management (CRM) system.

Give clients payment options without risking your cash flow

If a client can’t pay the full fee upfront but still wants to move forward, you can suggest a payment plan. Stripe makes it easy to set up auto-billing so that payments come in on a schedule and you’re not stuck chasing the client or worrying about late remittances.

Use the data to spot trends

The Stripe Dashboard lists your transactions, making it easy to spot patterns. Maybe most of your clients pay at the last minute, or you find the fourth quarter is the busiest time of year. You can use that info to tweak how you price or market your services.

Simplify taxes

If you’re selling to clients in different regions or countries, taxes can get messy quickly. Stripe has tools to calculate and collect sales tax, value-added tax (VAT), or goods and services tax (GST) automatically. You don’t have to figure it out manually or risk undercharging.

Keep everything in one place as you grow

Whether you’re just starting out or expanding into new areas such as courses, workshops, and design resource sales, Stripe can scale with you.