![How to plan and track the budget of your graphic design service [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-2_f2eeb7f6-892b-40c5-be5d-fe7d9c136a54.png?v=1715856550&width=1100)
If you don’t plan and track your graphic design business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for graphic designers, we saw a lot of designers struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial client work.
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 design business's finances around and set you on the path to success!
Get the budget tracker tailored for graphic designers
Most graphic designers don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for graphic designers
Here is an example of a (very) detailed budget for a graphic design business, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office space | $2,000 | $24,000 |
| Electricity | Power consumption for computers and lighting | $300 | $3,600 |
| Internet & Phone | High-speed internet and business phone | $150 | $1,800 |
| Software Subscriptions | Adobe Creative Cloud, stock images, etc. | $100 | $1,200 |
| Insurance | Business liability and equipment insurance | $200 | $2,400 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Lead Designer | 1 | $5,000 | $5,000 | $60,000 |
| Junior Designer | 2 | $3,000 | $6,000 | $72,000 |
| Project Manager | 1 | $4,000 | $4,000 | $48,000 |
| Administrative Assistant | 1 | $2,500 | $2,500 | $30,000 |
3. Office Supplies & Equipment
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Computers & Monitors | High-performance computers and monitors | $500 | $6,000 |
| Office Supplies | Stationery, printer ink, etc. | $100 | $1,200 |
| Printing Costs | Printing proofs and client materials | $200 | $2,400 |
| Furniture | Desks, chairs, and storage units | $150 | $1,800 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, LinkedIn Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Networking Events | Industry events and conferences | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Software Updates | Regular updates for design software | $100 | $1,200 |
| Professional Development | Workshops, courses, and certifications | $200 | $2,400 |
| Client Meetings | Travel and hospitality for client meetings | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
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What are the biggest expenses for a graphic designer?
Be mindful of these critical expenses. Here are five major costs every graphic designer needs to consider, along with some tips on how to manage them effectively.
- Software and Tools The software and tools you use can take a significant portion of your budget. Subscriptions to design software, stock images, and fonts can add up quickly. To keep these costs in check, consider using open-source alternatives, taking advantage of student or professional discounts, and only subscribing to services you use regularly. It's easy to overspend by subscribing to multiple tools that offer similar functionalities.
- Hardware Your computer, tablet, and other hardware are essential for your work, but they can be expensive. This cost is always high because you need reliable and high-performance equipment to produce quality work. You can optimize hardware costs by purchasing refurbished or gently used equipment, upgrading components instead of buying new devices, and taking good care of your current hardware to extend its lifespan. However, be careful not to compromise on quality, as this can affect your productivity and the quality of your work.
- Office Space and Utilities Whether you work from home or rent an office, the cost of your workspace and utilities like electricity and internet can add up. To optimize these costs, consider co-working spaces, sharing office space with other professionals, or negotiating better rates for your utilities. Overspending often happens when you choose a workspace that's too large or luxurious for your needs.
- Marketing and Client Acquisition Getting your name out there and attracting clients can be costly, whether it's through online ads, social media campaigns, or networking events. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can happen if you invest in expensive campaigns without a clear strategy or measurable return on investment.
- Professional Development Staying updated with the latest design trends and skills is crucial, but courses, workshops, and conferences can be expensive. Optimize by taking advantage of free or low-cost online resources, joining professional groups for shared learning, and prioritizing the most relevant and impactful development opportunities. You can overspend by enrolling in too many courses or attending events that don't provide significant value.
How to spend less with your graphic design service?
Here are practical tips to help you, as a graphic designer, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Software Subscriptions | Utilize open-source or free design software alternatives and take advantage of student or educator discounts. |
| Hardware | Invest in high-quality, durable hardware that meets your needs and consider refurbished options to save costs. |
| Marketing | Leverage social media platforms to showcase your portfolio and collaborate with influencers for increased visibility. |
| Office Space | Consider co-working spaces or a home office setup to reduce rental costs. |
| Utilities | Use energy-efficient lighting and equipment to lower utility bills. |
| Client Meetings | Opt for virtual meetings to save on travel expenses and time. |
| Training and Development | Take advantage of free online courses and webinars to stay updated with industry trends. |
| Printing Costs | Use digital mockups and proofs to minimize printing needs and costs. |
| Stock Images and Fonts | Utilize free or subscription-based stock image and font libraries instead of purchasing individual assets. |
| Insurance | Regularly review your business insurance policies to ensure they meet your current needs and compare rates annually. |
| Project Management | Use free or low-cost project management tools to keep track of deadlines and client communications. |
| Networking | Attend local design meetups and online forums to build connections without incurring high costs. |
| Website Hosting | Choose a reliable and cost-effective hosting service for your portfolio website. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan client visits efficiently to minimize travel time and expenses. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital tools. |
| Outsourcing | Outsource non-core tasks like bookkeeping to freelancers to save time and money. |
| Client Gifts | Opt for personalized, low-cost gifts to show appreciation without overspending. |
| Software Updates | Regularly update your software to avoid security vulnerabilities and costly issues. |
| Backup Solutions | Invest in reliable cloud storage solutions to protect your work and avoid data loss. |
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Expenses that are just useless for a graphic designer
Yes, some expenses for your graphic design business are just unnecessary. They don't contribute to increasing revenue or improving client satisfaction.
| Graphic Design Expense | Reason It's Useless |
|---|---|
| High-End Office Space | Luxurious office spaces don't necessarily attract more clients and can be a drain on the budget. |
| Premium Software Subscriptions | Unless you need specific advanced features, most mid-range software options are sufficient. |
| Excessive Hardware Upgrades | Constantly upgrading to the latest hardware increases costs without significantly improving productivity. |
| Expensive Stock Photos | There are many affordable or free stock photo options that can meet your needs just as well. |
| Printed Portfolios | Traditional printed portfolios often have a lower return on investment. Consider digital alternatives in your marketing strategy. |
| Multiple Software Licenses | Having various software licenses increases costs without adding significant value to your work. |
| Excessive Team Members | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Office Supplies | Expensive office supplies often go unnoticed by clients and add unnecessary costs. |
| Exclusive Fonts | Using rare fonts can inflate costs and complicate design processes. |
| Costly 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 Plugins | Paying for plugins with features you don’t use is a waste of resources. |
| Premium Hosting Services | Most clients are content with reliable, mid-range hosting services, making expensive options unnecessary. |
| Extra Office Equipment | Maintaining more equipment than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Office Redesigns | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Desk Accessories | Elaborate desk accessories are often ignored by clients and add to the cost. |
| High-End Office Decor | Luxury office decor is 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. |
| Expensive Branding Materials | 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. |
| High-End Printing Services | Specialized printing services are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your graphic design service!
Managing a budget for a graphic design business 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 projects, leaving you always scrambling to cover costs. 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 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 graphic design businesses just like yours. Get them now!
Make your graphic design service more profitable
We have studied the strategies of the best graphic designers in the world. All their tactics are explained in our pack!
