![How to plan and track the budget of your AR development agency [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-2_d6f20ef7-2424-4964-8f12-1774324f3902.png?v=1715856585&width=1100)
If you don’t plan and track your AR project budget properly, you're setting yourself up for failure.
When we developed our strategy pack for AR developers, we saw a lot of AR agencies struggling with finances and project planning.
They were disorganized, had no grasp of resource allocation, and were drowning in financial troubles despite having substantial client contracts.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our AR Project Budget Tracker and Planner. Let’s turn your agency's finances around and set you on the path to success!
Get the budget tracker tailored for AR agencies
Most AR agency owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for AR agencies
Here is an example of a (very) detailed budget for an augmented reality (AR) development agency, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office space | $4,000 | $48,000 |
| Electricity | Power consumption for computers and servers | $600 | $7,200 |
| Internet & Phone | High-speed internet and business phone | $200 | $2,400 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| AR Developer | 3 | $5,000 | $15,000 | $180,000 |
| 3D Artist | 2 | $4,000 | $8,000 | $96,000 |
| Project Manager | 1 | $6,000 | $6,000 | $72,000 |
| QA Tester | 2 | $3,500 | $7,000 | $84,000 |
| Marketing Specialist | 1 | $4,000 | $4,000 | $48,000 |
3. Software & Tools
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Development Software | Unity, Unreal Engine licenses | $1,000 | $12,000 |
| 3D Modeling Software | Maya, Blender licenses | $500 | $6,000 |
| Cloud Services | Amazon Web Services, Google Cloud | $800 | $9,600 |
| Project Management Tools | Jira, Trello subscriptions | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, LinkedIn Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $400 | $4,800 |
| Content Creation | Blog posts, videos, infographics | $300 | $3,600 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Webinars, virtual events | $250 | $3,000 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of hardware | $300 | $3,600 |
| Office Supplies | Stationery, printer ink, etc. | $100 | $1,200 |
| Licenses & Permits | Software licenses, business permits | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some AR agencies make 5x more profit than you!
We have studied the strategies of the best AR agencies in the world. Replicate them now!
What are the biggest expenses for an augmented reality (AR) development agency?
Be mindful of these critical expenses. Here are five major costs every AR development agency needs to consider, along with some tips on how to manage them effectively.
- Software and hardware costsThese can consume a significant portion of your budget. You're dealing with cutting-edge technology, and prices can vary based on the latest advancements, supply chain issues, and quality. To keep these costs in check, focus on purchasing only the necessary software licenses, negotiate better deals with vendors, and minimize unnecessary upgrades. It's easy to overspend by buying too many licenses or opting for high-end hardware that doesn’t add enough value.
- Your development 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 team to deliver high-quality AR experiences and keep projects on track. You can optimize labor costs by scheduling efficiently, cross-training team members, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor project outcomes.
- Office space and utilitiesPrime office locations come with high rent, but they can attract top talent and clients. Utilities like electricity, internet, and water are essential but add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose an office space that's too large or too luxurious for your needs.
- Marketing and client acquisitionYou need to get the word out about your AR development services, but advertising can be pricey, whether it's online ads, social media campaigns, or industry events. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our strategy guide. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Development tools and maintenance costsThis includes everything from AR development platforms to testing devices. These are expensive because quality tools and regular maintenance are crucial for smooth operations and client satisfaction. Optimize by investing in durable, versatile tools and maintaining them 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 AR development agency?
Here are practical tips to help you, as an AR development agency owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Software Licenses | Negotiate bulk licensing deals with software providers and explore open-source alternatives. |
| Labor Costs | Utilize project management tools to streamline workflows and consider remote work to reduce office overheads. |
| Hardware | Invest in high-quality, durable hardware and consider leasing options to spread out costs. |
| Marketing | Run social media campaigns showcasing your AR projects and collaborate with tech influencers for organic reach. |
| Training | Offer in-house training sessions and utilize free online courses to keep your team updated on the latest AR technologies. |
| Office Space | Negotiate lease terms during renewal or consider co-working spaces to reduce costs. |
| Utilities | Implement energy-efficient practices and consider a hybrid work model to reduce office utility expenses. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Client Acquisition | Use cost-effective digital marketing strategies and leverage client referrals to gain new business. |
| Project Management | Adopt project management software to keep track of deadlines, resources, and budgets efficiently. |
| Networking | Attend industry conferences and webinars to build connections and stay updated on market trends. |
| Prototyping | Use virtual prototyping tools to reduce the need for physical models and speed up the development process. |
| Subscriptions | Regularly review and cancel unused subscriptions to software and services. |
| Data Storage | Opt for cloud storage solutions with scalable plans to manage data efficiently and cost-effectively. |
| Legal Fees | Use legal templates for standard contracts and consider a retainer with a law firm for ongoing needs. |
| Travel | Plan travel efficiently and use virtual meetings to reduce travel expenses. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital documentation systems. |
| Client Demos | Use virtual demo tools to showcase your AR projects to clients remotely, reducing travel and setup costs. |
| Security | Invest in robust cybersecurity measures to protect your data and avoid costly breaches. |
| Team Building | Organize cost-effective team-building activities to maintain morale and collaboration. |
| Software Updates | Schedule regular software updates to ensure optimal performance and security. |
Copy the tactics of the best AR agencies in the world!
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Expenses that are just useless for an augmented reality (AR) development agency
Yes, some expenses for your AR development agency are just unnecessary. They don't contribute to increasing revenue or improving client satisfaction.
| Agency Expense | Reason It's Useless |
|---|---|
| Luxurious Office Space | High-end office spaces don't necessarily attract more clients and can be a drain on the budget. |
| Premium Software Subscriptions | Unless you need specific high-end features, most mid-range software options are sufficient. |
| Excessive Hardware | Having more hardware than necessary increases costs and leads to underutilized resources. |
| Top-Tier Marketing Agencies | Expensive marketing agencies are 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 AR agency |
| Multiple Branding Materials | Having various branding materials increases costs without adding significant value to the client experience. |
| Overstaffing | Overstaffing leads to higher labor costs without necessarily improving project quality. |
| Exclusive Software Licenses | Expensive software licenses often go unnoticed by clients. |
| Rare Development Tools | Using rare tools can inflate costs and complicate project management. |
| High-End Office Furniture | High-end furniture is not always appreciated by clients and can be a significant expense. |
| Custom Printed Stationery | Personalized stationery is a minor detail that most clients overlook, and it can be expensive. |
| Unnecessary Software Features | Paying for software with features you don’t use is a waste of resources. |
| Premium Office Supplies | Most employees are content with standard office supplies, making expensive options unnecessary. |
| Extra Office Space | Maintaining more office space than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Frequent Office Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Office Decor | Elaborate decor is often ignored by clients and adds to the cost. |
| Luxury Office Supplies | Luxury supplies are prone to damage and expensive to replace, often going unnoticed by clients. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Frequent Branding Redesigns | Frequently redesigning branding materials 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. |
| Specialized Development Equipment | Specialized equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your AR development agency!
Managing a budget for an augmented reality (AR) development agency when funds are tight can feel like a nightmare. It's like being trapped in a cycle where any unexpected expense can derail your projects.
This constant pressure makes it nearly impossible to invest in innovative solutions, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources 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 breathing room and more money to invest in cutting-edge AR technologies.
And no, you don't necessarily have to spend a fortune 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 AR agencies just like yours. Get them now!
Make your AR development agency more profitable
We have studied the strategies of the best AR agencies in the world. All their tactics are explained in our pack!
