If you don’t plan and track your haircare budget properly, you're setting yourself up for failure.
When we developed our strategy pack for haircare professionals, we saw a lot of salon owners and independent stylists struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having a steady stream of clients.
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 haircare business's finances around and set you on the path to success!
Get the budget tracker tailored for haircare brands
Most haircare brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for haircare brands
Here is an example of a (very) detailed budget for a haircare 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 | $100 | $1,200 |
Waste Removal | Garbage and recycling services | $80 | $960 |
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 |
Marketing Manager | 1 | $3,500 | $3,500 | $42,000 |
Production Staff | 3 | $2,500 | $7,500 | $90,000 |
Customer Service | 2 | $2,000 | $4,000 | $48,000 |
Sales Representatives | 2 | $2,500 | $5,000 | $60,000 |
3. Product & Packaging Costs
Item | Description | Monthly Cost | Annual Cost |
---|---|---|---|
Raw Materials | Ingredients for haircare products | $8,000 | $96,000 |
Packaging | Bottles, labels, boxes, etc. | $3,000 | $36,000 |
Shipping Supplies | Boxes, tape, packing materials | $500 | $6,000 |
Cleaning Supplies | Sanitizers, cleaning agents for production area | $150 | $1,800 |
4. Marketing & Advertising
Item | Description | Monthly Cost | Annual Cost |
---|---|---|---|
Online Advertising | Google Ads, Facebook Ads, etc. | $400 | $4,800 |
Social Media Management | Managing social media accounts | $600 | $7,200 |
Influencer Partnerships | Collaborations with influencers | $1,000 | $12,000 |
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 | $300 | $3,600 |
Uniforms | Staff uniforms and protective gear | $150 | $1,800 |
Licenses & Permits | Health permits, business licenses, etc. | $100 | $1,200 |
POS System | Point of Sale software and hardware | $100 | $1,200 |
Contingency Fund | Emergency repairs and unexpected costs | $400 | $4,800 |
Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
Staff Training | Training programs and materials | $200 | $2,400 |
Some haircare brands make 5x more profit than you!
We have studied the strategies of the best haircare brands in the world. Replicate them now!
What are the biggest expenses for a haircare brand?
Be mindful of these pitfalls. Here are five major costs every haircare brand owner needs to consider, along with some tips on how to manage them effectively.
- Product formulation and ingredientsThese can consume a significant portion of your budget. You're dealing with raw materials that can vary in price based on quality, availability, and market demand. To keep these costs under control, focus on efficient formulation, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by purchasing premium ingredients that don't necessarily add value to your products.
- Your teamYour team is the heart of your brand, but paying for their salaries, benefits, and training can be costly. This expense is always high because you need skilled professionals to ensure product quality and customer satisfaction. You can optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, be cautious not to underpay or overwork your team, as this can lead to high turnover and decreased morale.
- Rent and utilities of your facilityPrime locations come with high rent, but they can enhance your brand's visibility. Utilities like electricity, water, and heating are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient equipment and lighting. Overspending often occurs when you choose a facility that's too large or too luxurious for your needs.
- MarketingGetting the word out about your haircare brand 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. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from manufacturing machinery to office furniture. These are expensive because quality equipment and regular maintenance are essential 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 haircare brand?
Here are practical tips to help you, as a haircare brand owner, optimize your budget and manage expenses more effectively.
Expense | Tips to Optimize |
---|---|
Product Ingredients | Partner with local suppliers for high-quality, natural ingredients 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 haircare products and collaborate with beauty influencers for free exposure. |
Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers who bring their own containers. |
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. |
Research and Development | Allocate a budget for R&D to innovate new products and improve existing ones. |
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 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. |
Quality Control | Implement strict quality control measures to ensure product consistency and customer satisfaction. |
Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
Customer Feedback | Regularly collect and analyze customer feedback to improve products and services. |
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 haircare brands in the world!
There are haircare brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a haircare brand
Yes, some expenses for your haircare brand are just unnecessary. They don't contribute to increasing revenue or improving customer satisfaction.
Haircare 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. |
High-End Ingredients | Unless you are targeting a niche market, most customers are satisfied with quality, mid-range ingredients. |
Excessive Product Lines | A large variety of products increases inventory costs and can lead to more waste. |
Top-Tier Equipment | High-end manufacturing 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 haircare brand. |
Multiple Packaging Designs | Having various packaging designs increases costs without adding significant value to the customer experience. |
Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving product 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 employees 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 Rebranding | Constantly updating branding and packaging can be costly and disrupt operations. |
Expensive Promotional Items | Elaborate promotional items are often ignored by customers and add to the cost. |
High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by employees. |
Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
Expensive Product Designs | Frequently redesigning products 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 Manufacturing Equipment | Specialized manufacturing equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your haircare brand!
Managing a budget for a haircare brand when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can set you back significantly.
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, cutting corners and just getting by. But there's another part of the equation you might be overlooking. Instead of solely focusing on reducing expenses, you can focus on increasing your revenue. More income means more flexibility and more resources to invest in your brand.
And no, you don't necessarily have to spend a lot to grow. There are plenty of zero-cost initiatives and strategies that can help you boost your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of haircare brands just like yours. Get them now!
Make your haircare brand more profitable
We have studied the strategies of the best haircare brands in the world. All their tactics are explained in our pack!