![How to plan and track the budget of your CBD brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-7_fb1a3833-ab70-41af-bad2-3af89fde3dba.png?v=1715856411&width=1100)
If you don’t plan and track your CBD business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for CBD entrepreneurs, we saw a lot of business owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
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 CBD business's finances around and set you on the path to success!
Get the budget tracker tailored for CBD brands
Most CBD brand owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for CBD brands
Here is an example of a (very) detailed budget for a CBD brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and production space | $4,000 | $48,000 |
| Electricity | Power consumption for production and office | $600 | $7,200 |
| Water | Water usage for production | $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 | $6,000 | $6,000 | $72,000 |
| Production Manager | 1 | $4,000 | $4,000 | $48,000 |
| Lab Technicians | 2 | $3,000 | $6,000 | $72,000 |
| Marketing Specialist | 1 | $3,500 | $3,500 | $42,000 |
| Customer Service Reps | 3 | $2,500 | $7,500 | $90,000 |
| Warehouse Staff | 2 | $2,000 | $4,000 | $48,000 |
3. Product & Packaging Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Raw CBD | CBD isolate, full-spectrum, etc. | $8,000 | $96,000 |
| Carrier Oils | MCT oil, hemp seed oil, etc. | $2,000 | $24,000 |
| Packaging | Bottles, labels, boxes | $3,000 | $36,000 |
| Lab Testing | Third-party lab testing for quality assurance | $1,000 | $12,000 |
| Cleaning Supplies | Sanitizers, detergents, etc. | $200 | $2,400 |
| Office Supplies | Stationery, printer ink, etc. | $150 | $1,800 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, magazine ads | $300 | $3,600 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of production equipment | $400 | $4,800 |
| Uniforms | Staff uniforms and lab coats | $150 | $1,800 |
| Licenses & Permits | Business licenses, health permits, etc. | $200 | $2,400 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some CBD brands make 5x more profit than you!
We have studied the strategies of the best CBD brands in the world. Replicate them now!
What are the biggest expenses for a CBD brand?
Be mindful of these critical expenses. Here are five major costs every CBD brand owner needs to consider, along with some tips on how to manage them effectively.
- Raw material costsThese can significantly impact your budget. You're dealing with natural products, and prices can vary based on seasonality, supply chain issues, and quality. To keep these costs in check, focus on bulk purchasing, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium ingredients that don’t add enough value.
- Staffing for your CBD brandYour team is your backbone, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a skilled workforce to ensure product quality and customer satisfaction. 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 for your facilitiesPrime locations come with high rent, but they can attract more customers. Utilities like electricity, water, and climate control 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 a location that's too large or too luxurious for your needs.
- MarketingYou need to get the word out about your CBD 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.
- Production equipment and maintenance costsThis includes everything from extraction machines to packaging equipment. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and product consistency. 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 CBD brand?
Here are practical tips to help you, as a CBD brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Partner with local hemp farmers for high-quality, organic hemp at competitive prices. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install energy-efficient lighting and equipment in your production facility. |
| Marketing | Run social media contests for your CBD products and collaborate with wellness influencers for free exposure. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers who return packaging for recycling. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing to avoid costly repairs. |
| 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. |
| Compliance | Stay up-to-date with local and federal regulations to avoid fines and costly renewals. |
| 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 to keep your team knowledgeable about CBD products and regulations. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle excess materials. |
| Technology | Invest in multi-functional production equipment and utilize management software for inventory and orders. |
| 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 spoilage. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Product Testing | Partner with reputable labs for batch testing to ensure quality and compliance, and negotiate bulk testing discounts. |
| Customer Service | Use a CRM system to manage customer interactions and improve service efficiency. |
| Website Maintenance | Regularly update your website with new content and ensure it is optimized for search engines to attract organic traffic. |
| Trade Shows | Participate in relevant trade shows and events to network and promote your brand, but plan and budget carefully to maximize ROI. |
Copy the tactics of the best CBD brands in the world!
There are CBD brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a CBD brand
Yes, some expenses for your CBD brand are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| CBD Brand Expense | Reason It's Useless |
|---|---|
| Luxurious Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| Premium Website Themes | Unless you are a high-end brand, most customers are satisfied with a clean, functional website. |
| Excessive Product Lines | A large product range increases inventory costs and leads to more waste. |
| High-End Office Equipment | Top-of-the-line office 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 CBD brand. |
| Multiple Packaging Designs | Having various packaging designs increases costs without adding significant value to the customer experience. |
| Excessive Staffing | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for industry reports or magazines often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Office Furniture | High-end office furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Labels | Personalized labels 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 Office Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Office Decor | Elaborate office decor is often ignored by customers and adds 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 Marketing Materials | Frequently redesigning marketing 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. |
| 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 CBD brand!
Managing a budget for a CBD brand when funds are tight can feel overwhelming. It's like being trapped 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, pinching 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 resources to invest back into your business.
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 CBD brands just like yours. Get them now!
Make your CBD brand more profitable
We have studied the strategies of the best CBD brands in the world. All their tactics are explained in our pack!
