![How to plan and track the budget of your activewear brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_a363aa20-6f2b-4504-aed4-7e4ce3d39dd5.png?v=1715856560&width=1100)
If you don’t plan and track your activewear brand's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for activewear entrepreneurs, we saw a lot of brand owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial sales.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your activewear brand's finances around and set you on the path to success!
Get the budget tracker tailored for activewear brands
Most activewear brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for activewear brands
Here is an example of a (very) detailed budget for an activewear brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and warehouse space | $4,000 | $48,000 |
| Electricity | Power consumption for office and warehouse | $600 | $7,200 |
| Water | Water usage | $150 | $1,800 |
| Internet & Phone | Internet service and business phone | $200 | $2,400 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| CEO | 1 | $8,000 | $8,000 | $96,000 |
| Marketing Manager | 1 | $5,000 | $5,000 | $60,000 |
| Designers | 2 | $4,000 | $8,000 | $96,000 |
| Warehouse Staff | 3 | $3,000 | $9,000 | $108,000 |
| Customer Service | 2 | $3,000 | $6,000 | $72,000 |
| Sales Representatives | 2 | $3,500 | $7,000 | $84,000 |
3. Inventory & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Fabric & Materials | High-quality fabrics and materials | $15,000 | $180,000 |
| Packaging | Boxes, bags, and labels | $2,000 | $24,000 |
| Office Supplies | Stationery, printer ink, etc. | $300 | $3,600 |
| Warehouse Supplies | Shelving, pallets, etc. | $500 | $6,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $1,000 | $12,000 |
| Social Media Management | Managing social media accounts | $800 | $9,600 |
| Influencer Partnerships | Collaborations with influencers | $1,500 | $18,000 |
| Website Maintenance | Hosting, domain, updates | $200 | $2,400 |
| Email Marketing | Email campaigns and newsletters | $300 | $3,600 |
| Promotional Events | Special events and promotions | $500 | $6,000 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of office and warehouse equipment | $300 | $3,600 |
| Uniforms | Staff uniforms and branded apparel | $200 | $2,400 |
| Licenses & Permits | Business licenses and permits | $100 | $1,200 |
| Software Subscriptions | Design, accounting, and project management software | $400 | $4,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some activewear brands make 5x more profit than you!
We have studied the strategies of the best activewear brands in the world. Replicate them now!
What are the biggest expenses for an activewear brand?
Be mindful of these pitfalls. Here are five major costs every activewear brand owner needs to consider, along with some tips on how to manage them effectively.
- Material and production costsThese can take up a significant portion of your budget. You're dealing with various fabrics, and prices can fluctuate based on availability, quality, and market demand. To keep these costs in check, focus on bulk purchasing, negotiate better rates with suppliers, and minimize waste. It's easy to overspend by opting for premium materials that don’t necessarily add enough value to your products.
- Your teamYour team is your backbone, but paying for their salaries, benefits, and training can be costly. This expense is always high because you need a skilled workforce to ensure quality and efficiency. You can optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and decreased morale.
- Retail space and utilitiesPrime retail locations come with high rent, but they can attract more customers. Utilities like electricity, heating, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient fixtures and appliances. Overspending often happens when you choose a location that's too large or too luxurious for your needs.
- MarketingYou need to get the word out about your activewear brand, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our guide. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from sewing machines to display fixtures. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your activewear brand?
Here are practical tips to help you, as an activewear brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Fabric Costs | Partner with sustainable fabric suppliers for bulk discounts and eco-friendly materials. |
| Labor Costs | Implement a workforce management software to optimize production schedules and reduce overtime. |
| Utilities | Install energy-efficient lighting and machinery in your production facilities. |
| Marketing | Run social media challenges and collaborate with fitness influencers for organic exposure. |
| Packaging | Use cost-effective, recyclable packaging and offer incentives for customers who return packaging for reuse. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of manufacturing equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a more cost-effective location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Inventory Management | Use inventory management software to track stock levels and reduce overproduction. |
| Technology | Invest in multi-functional manufacturing equipment and utilize brand management software for sales and orders. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff updated on best practices. |
| Waste Management | Implement a waste tracking system to minimize fabric waste and recycle excess materials. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Product Development | Use 3D modeling software to prototype designs and reduce material waste. |
| Customer Service | Implement a CRM system to manage customer interactions and improve service efficiency. |
| Website Maintenance | Choose a cost-effective e-commerce platform and regularly update your website to enhance user experience. |
| Trade Shows | Participate in virtual trade shows to reduce travel and accommodation expenses. |
| Prototyping | Use digital tools for initial design prototypes to save on material costs. |
| Quality Control | Implement a robust quality control system to reduce returns and improve customer satisfaction. |
Copy the tactics of the best activewear brands in the world!
There are activewear brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for an activewear brand
Yes, some expenses for your activewear brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Activewear Brand Expense | Reason It's Useless |
|---|---|
| Luxury Packaging | Overly elaborate packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| High-End Fabric Options | Unless you are a premium brand, most customers are satisfied with mid-range fabric options. |
| Excessive Product Lines | A large product range increases inventory costs and leads to more unsold stock. |
| Top-Tier Manufacturing Equipment | State-of-the-art manufacturing equipment is not always necessary and can be cost-prohibitive. |
| Print Advertising | Traditional print ads often have a lower return on investment. Don’t include them in the marketing strategy of your activewear brand. |
| Multiple Branding Styles | Having various branding styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for design tools or industry reports often go unnoticed by customers. |
| Exclusive Materials | Using rare materials can inflate costs and complicate supply chains. |
| Costly Store Fixtures | High-end store fixtures are not always appreciated by customers and can be a significant expense. |
| Custom Printed Tags | Personalized tags are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Store Redesigns | Constantly updating store layout and decor can be costly and disrupt operations. |
| Expensive Store Displays | Elaborate displays are often ignored by customers and add to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Catalog Designs | Frequently redesigning catalogs is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your activewear brand!
Managing a budget for an activewear brand when funds are tight can feel like an uphill battle. It's like being stuck in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, cutting corners and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more flexibility and more resources to invest in your brand.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of activewear brands just like yours. Get them now!
Make your activewear brand more profitable
We have studied the strategies of the best activewear brands in the world. All their tactics are explained in our pack!
