![How to plan and track the budget of your concept store [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_0bd70284-e62b-4e59-8848-a5dbeb7ce0b4.png?v=1715856341&width=1100)
If you don’t plan and track your concept store budget properly, you're setting yourself up for failure.
When we developed our strategy pack for concept store owners, we saw a lot of store 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 concept store's finances around and set you on the path to success!
Get the budget tracker tailored for concept stores
Most concept store owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for concept stores
Here is an example of a (very) detailed budget for a concept store, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for retail space | $4,000 | $48,000 |
| Electricity | Power consumption for lighting and displays | $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 |
| Sales Associates | 4 | $2,000 | $8,000 | $96,000 |
| Visual Merchandiser | 1 | $2,500 | $2,500 | $30,000 |
| Cashier | 2 | $1,800 | $3,600 | $43,200 |
3. Inventory & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Product Inventory | Clothing, accessories, and other retail items | $15,000 | $180,000 |
| Display Materials | Mannequins, racks, shelves, etc. | $500 | $6,000 |
| Packaging Supplies | Bags, boxes, tissue paper | $300 | $3,600 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $100 | $1,200 |
| Office Supplies | Stationery, pens, printer ink, 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 | $500 | $6,000 |
| 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 | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of store equipment | $300 | $3,600 |
| Uniforms | Staff uniforms | $150 | $1,800 |
| Licenses & Permits | Business licenses, permits, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some concept stores make 5x more profit than you!
We have studied the strategies of the best concept stores in the world. Replicate them now!
What are the biggest expenses for a concept store?
Be mindful of these potential pitfalls. Here are five major costs every concept store owner needs to consider, along with some tips on how to manage them effectively.
- Inventory CostsStocking your store with unique and high-quality items can be expensive. Prices can vary based on seasonality, supplier reliability, and product quality. To keep these costs in check, focus on inventory management, negotiate better prices with suppliers, and minimize overstock. It's easy to overspend by buying too much or opting for high-end products that don’t sell quickly.
- Staffing Your StoreYour staff is essential for providing excellent customer service and maintaining store operations, but wages, benefits, and training can add up. This cost is always significant because you need a certain number of employees to assist customers and manage the store. 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 StorePrime retail 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 appliances. Overspending often happens when you choose a location that's too large or too upscale for your needs.
- MarketingGetting the word out about your concept store is crucial, but advertising can be costly, 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.
- Store Fixtures and Maintenance CostsThis includes everything from display shelves to point-of-sale systems. These are expensive because quality fixtures and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, versatile fixtures and maintaining them regularly to avoid costly repairs. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your concept store?
Here are practical tips to help you, as a concept store owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with local artisans and suppliers for unique, high-quality products at competitive prices. |
| 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 concept store and collaborate with local influencers for free exposure. |
| Store Supplies | Train staff on efficient use of store 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 waste tracking system to minimize waste and donate excess items. |
| Technology | Invest in multi-functional devices and utilize store management software for inventory and sales tracking. |
| Cleaning Services | Partner with a cost-effective cleaning service and consider reusable cleaning materials. |
| Signage | Use digital signage or QR codes for product information to reduce printing 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 spoilage. |
| 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 host local artists for in-store events. |
| 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 concept stores in the world!
There are concept stores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a concept store
Yes, some expenses for your concept store are just unnecessary. They don't contribute to increasing revenue or enhancing the customer experience.
| Concept Store Expense | Reason It's Useless |
|---|---|
| Luxurious Store Fixtures | Overly extravagant fixtures don't necessarily attract more customers and can be a drain on the budget. |
| High-End Product Displays | Unless you are a luxury brand, most customers are satisfied with well-organized, mid-range displays. |
| Excessive Product Variety | A large variety increases inventory costs and can lead to more unsold items. |
| Top-Tier Security Systems | High-end security systems are not always necessary and can be cost-prohibitive. |
| Printed Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your concept store. |
| Multiple Staff Uniforms | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Overstaffing | Having more staff than needed leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Product Lines | Stocking rare products 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 Bags | Personalized shopping bags 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 Store Decorations | Elaborate decorations are often ignored by customers and add to the cost. |
| High-End Display Units | Luxury display units 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 Signage Designs | Frequently redesigning signage 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 concept store!
Managing a budget for a concept store when funds are tight can feel like a nightmare. It's like being in a jail where any unexpected expense can drown you.
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 spend.
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 concept stores just like yours. Get them now!
Make your concept store more profitable
We have studied the strategies of the best concept stores in the world. All their tactics are explained in our pack!
