![How to plan and track the budget of your furniture store [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_00c61bd5-d1c7-4bf2-a947-a91b44cfad41.png?v=1715856366&width=1100)
If you don’t plan and track your furniture store budget properly, you're setting yourself up for failure.
When we developed our strategy pack for furniture 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 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 furniture store's finances around and set you on the path to success!
Get the budget tracker tailored for furniture stores
Most furniture store owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for furniture stores
Here is an example of a (very) detailed budget for a furniture store, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for showroom and storage space | $7,000 | $84,000 |
| Electricity | Power consumption for lighting and equipment | $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 | $500 | $6,000 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $4,000 | $4,000 | $48,000 |
| Sales Associates | 3 | $2,500 | $7,500 | $90,000 |
| Warehouse Staff | 2 | $2,000 | $4,000 | $48,000 |
| Delivery Drivers | 2 | $2,500 | $5,000 | $60,000 |
| Customer Service | 1 | $2,500 | $2,500 | $30,000 |
| Interior Designer | 1 | $3,500 | $3,500 | $42,000 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Furniture Inventory | Sofas, tables, chairs, etc. | $20,000 | $240,000 |
| Decor Items | Lamps, rugs, wall art, etc. | $5,000 | $60,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $200 | $2,400 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $100 | $1,200 |
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 | $400 | $4,800 |
| Print Advertising | Flyers, posters, newspaper ads | $300 | $3,600 |
| 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, etc. | $100 | $1,200 |
| 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 | $200 | $2,400 |
Some furniture stores make 5x more profit than you!
We have studied the strategies of the best furniture stores in the world. Replicate them now!
What are the biggest expenses for a furniture store?
Be mindful of these significant expenses. Here are five major costs every furniture store owner needs to consider, along with some tips on how to manage them effectively.
- Inventory CostsFurniture inventory can be a substantial part of your budget. You're dealing with large, often expensive items, and prices can vary based on materials, craftsmanship, and supplier terms. To keep these costs in check, focus on inventory management, negotiate better prices with suppliers, and minimize overstock. It's easy to overspend by ordering too much or opting for high-end pieces that don’t sell quickly.
- Staffing CostsYour staff is crucial to your business, but paying for their wages, benefits, and training can be costly. This expense is always significant because you need knowledgeable employees to provide excellent customer service and manage operations smoothly. 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 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 lighting and climate control 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 furniture store is essential, 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. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Store Fixtures and Maintenance CostsThis includes everything from display units 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 or replacements. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your furniture store?
Here are practical tips to help you, as a furniture store owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with local manufacturers for high-quality, cost-effective furniture pieces. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient HVAC systems. |
| Marketing | Run social media contests for your furniture store 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 waste tracking system to minimize waste and recycle materials. |
| Technology | Invest in multi-functional office equipment and utilize inventory management software. |
| Store Decor | Partner with local artists for cost-effective decor and consider rotating displays to keep the store fresh. |
| Catalog Printing | Use digital catalogs or QR codes for product access 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 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 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 furniture stores in the world!
There are furniture stores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a furniture store
Yes, some expenses for your furniture store are just unnecessary. They don't contribute to increasing sales or enhancing the customer experience.
| Furniture Store Expense | Reason It's Useless |
|---|---|
| Luxurious Showroom Decor | Overly extravagant showroom decorations don't necessarily attract more customers and can be a drain on the budget. |
| Premium Wood Finishes | Unless you cater to a high-end market, most customers are satisfied with standard finishes. |
| Excessive Product Range | A large inventory increases storage costs and can lead to unsold stock. |
| High-End Tools | Top-of-the-line tools are not always necessary and can be cost-prohibitive. |
| Paper Catalogs | Traditional paper catalogs often have a lower return on investment. Don’t include them in the marketing strategy of your furniture store. |
| 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 design magazines or software often go unnoticed by customers. |
| Exclusive Materials | Using rare materials can inflate costs and complicate supply chains. |
| Costly Fixtures | High-end fixtures are 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 the showroom layout can be costly and disrupt operations. |
| Expensive Display Pieces | Elaborate display pieces are often ignored by customers and add to the cost. |
| High-End Office Furniture | Luxury office furniture 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 Brochure Designs | Frequently redesigning brochures 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 Delivery Equipment | Specialized delivery equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your furniture store!
Managing a budget for a furniture store 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 store.
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 furniture stores just like yours. Get them now!
Make your furniture store more profitable
We have studied the strategies of the best furniture stores in the world. All their tactics are explained in our pack!
