![How to plan and track the budget of your bookstore [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_3549634a-29fd-4fbc-bdb6-f5dab5f7c815.png?v=1715856373&width=1100)
If you don’t plan and track your bookstore budget properly, you're setting yourself up for failure.
When we developed our strategy pack for bookstore owners, we saw a lot of bookstore 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 bookstore's finances around and set you on the path to success!
Get the budget tracker tailored for bookstores
Most bookstore owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for bookstores
Here is an example of a (very) detailed budget for a bookstore, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for bookstore space | $4,000 | $48,000 |
| Electricity | Power consumption for lighting and heating | $600 | $7,200 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $3,500 | $3,500 | $42,000 |
| Assistant Manager | 1 | $2,500 | $2,500 | $30,000 |
| Booksellers | 3 | $2,000 | $6,000 | $72,000 |
| Cashiers | 2 | $1,800 | $3,600 | $43,200 |
| Stock Clerks | 2 | $1,800 | $3,600 | $43,200 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Books | New releases, bestsellers, and classics | $8,000 | $96,000 |
| Magazines | Monthly and weekly publications | $1,000 | $12,000 |
| Stationery | Notebooks, pens, and other office supplies | $500 | $6,000 |
| Gift Items | Bookmarks, tote bags, and other merchandise | $500 | $6,000 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $400 | $4,800 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Author signings, book launches, etc. | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of store equipment | $200 | $2,400 |
| Uniforms | Staff uniforms and aprons | $100 | $1,200 |
| Licenses & Permits | Business licenses, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some bookstores make 5x more profit than you!
We have studied the strategies of the best bookstores in the world. Replicate them now!
What are the biggest expenses for a bookstore?
Be mindful of these potential pitfalls. Here are five major costs every bookstore owner needs to consider, along with some tips on how to manage them effectively.
- Inventory costsBooks are your primary product, and stocking them can be a significant expense. Prices can vary based on publishers, demand, and special editions. To keep these costs under control, focus on maintaining a balanced inventory, negotiate better terms with distributors, and minimize unsold stock. It's easy to overspend by ordering too many copies or opting for expensive editions that don’t sell well.
- Staff at your bookstoreYour staff is essential for providing excellent customer service and managing daily operations, but their wages, benefits, and training can be costly. This expense is always high because you need knowledgeable employees to assist customers and keep the store organized. Optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your bookstorePrime locations come with high rent, but they can attract more foot traffic. Utilities like electricity, heating, and water are necessary but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient lighting and heating systems. Overspending often happens when you choose a location that's too large or too upscale for your needs.
- MarketingGetting the word out about your bookstore is crucial, 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 recommend in our guide. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Store fixtures and maintenance costsThis includes everything from bookshelves to reading nooks. These are expensive because quality fixtures and regular maintenance are crucial for a pleasant shopping experience and customer satisfaction. Optimize by investing in durable, functional fixtures and maintaining them regularly to avoid costly repairs. You can overspend by going for the latest trendy designs that you don’t really need.
How to spend less with your bookstore?
Here are practical tips to help you, as a bookstore owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with local authors and publishers for consignment deals and bulk purchase discounts. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient heating and cooling systems. |
| Marketing | Run social media contests for your bookstore and collaborate with local influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own bags. |
| Display Fixtures | Purchase high-quality, durable display fixtures that can withstand frequent use. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a recycling program for paper and cardboard to minimize waste. |
| Technology | Invest in multi-functional devices like tablets for inventory management and customer service. |
| Events | Host book signings and readings with local authors to draw in customers without high costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| 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. |
| Inventory Management | Use inventory management software to track stock levels and reduce overstocking. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Ambiance | Use a streaming service for background music and create cozy reading nooks to enhance customer experience. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best bookstores in the world!
There are bookstores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a bookstore
Yes, some expenses for your bookstore are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Bookstore Expense | Reason It's Useless |
|---|---|
| Luxurious Shelving | Overly expensive shelving units don't necessarily attract more customers and can be a drain on the budget. |
| Premium Coffee Brands | Unless you are a high-end café, most customers are satisfied with mid-range coffee options. |
| Excessive Book Inventory | Having too many books increases inventory costs and can lead to unsold stock. |
| High-End Reading Chairs | Top-of-the-line reading chairs are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your bookstore. |
| Multiple Uniform Styles | Having various uniform 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 magazines or music often go unnoticed by customers. |
| Exclusive Book Editions | Stocking rare book editions can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Bookmarks | Personalized bookmarks 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 Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Table Centerpieces | Elaborate centerpieces are often ignored by customers and add to the cost. |
| High-End Tableware | Luxury tableware is 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 Book Display Designs | Frequently redesigning book displays 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 bookstore!
Managing a budget for a bookstore when funds are tight can feel like a nightmare. It's like being trapped in a maze where any unexpected expense can throw you off course.
This constant pressure makes it nearly impossible to invest in growth projects, 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 pennies 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 your bookstore.
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 bookstores just like yours. Get them now!
Make your bookstore more profitable
We have studied the strategies of the best bookstores in the world. All their tactics are explained in our pack!
