![How to plan and track the budget of your home decor brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_4d93470b-fea3-44c7-a5c0-74aba62bbb9f.png?v=1715856417&width=1100)
If you don’t plan and track your home decor budget properly, you're setting yourself up for failure.
When we developed our strategy pack for home decor enthusiasts, we saw a lot of homeowners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having a clear vision for their home.
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 home decor finances around and set you on the path to success!
Get the budget tracker tailored for home decor brands
Most home decor brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for home decor brands
Here is an example of a (very) detailed budget for a home decor brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for showroom and office space | $4,000 | $48,000 |
| Electricity | Power consumption for lighting and office equipment | $600 | $7,200 |
| Water | Water usage for restrooms and cleaning | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| 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 |
|---|---|---|---|---|
| Store Manager | 1 | $3,500 | $3,500 | $42,000 |
| Interior Designer | 2 | $3,000 | $6,000 | $72,000 |
| Sales Associates | 3 | $2,500 | $7,500 | $90,000 |
| Warehouse Staff | 2 | $2,000 | $4,000 | $48,000 |
| Marketing Specialist | 1 | $3,000 | $3,000 | $36,000 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Furniture | Sofas, chairs, tables, etc. | $15,000 | $180,000 |
| Decor Items | Vases, wall art, rugs, etc. | $5,000 | $60,000 |
| Lighting | Lamps, chandeliers, etc. | $3,000 | $36,000 |
| Textiles | Curtains, cushions, throws, etc. | $2,000 | $24,000 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $200 | $2,400 |
| Packaging Materials | Boxes, bubble wrap, etc. | $300 | $3,600 |
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 office equipment | $200 | $2,400 |
| Uniforms | Staff uniforms and aprons | $100 | $1,200 |
| Licenses & Permits | Business licenses, 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 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some home decor brands make 5x more profit than you!
We have studied the strategies of the best home decor brands in the world. Replicate them now!
What are the biggest expenses for a home decor brand?
Be mindful of these potential pitfalls. Here are five major costs every home decor brand owner needs to consider, along with some tips on how to manage them effectively.
- Inventory and material costsThese can consume a significant portion of your budget. You're dealing with items that may vary in cost based on material quality, supplier pricing, and market demand. To keep these costs under control, focus on bulk purchasing, negotiate better deals with suppliers, and minimize waste. It's easy to overspend by stocking too much inventory or opting for premium materials that don't offer a proportional return on investment.
- Staffing for your home decor brandYour team is essential, but paying for their salaries, benefits, and training can be costly. This expense is always high because you need skilled employees to provide excellent customer service and manage operations efficiently. You can optimize labor costs by scheduling effectively, cross-training staff, and monitoring productivity. However, be cautious not to underpay or overwork your team, as this can lead to high turnover and diminished service quality.
- Showroom and warehouse rent and utilitiesPrime locations come with high rent, but they can attract more customers. 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 appliances and lighting. Overspending often occurs when you choose a location that's too large or too luxurious for your needs.
- MarketingGetting the word out about your home decor 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 in our guide. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Store fixtures and maintenance costsThis includes everything from display units to office furniture. These are expensive because quality fixtures and regular maintenance are essential for a professional appearance and customer satisfaction. Optimize by investing in durable, energy-efficient 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 home decor brand?
Here are practical tips to help you, as a home decor brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Partner with local suppliers for sustainable and cost-effective materials. |
| Labor Costs | Implement project management software to streamline workflows and reduce overtime. |
| Utilities | Install energy-efficient lighting and climate control systems in your workshop and showroom. |
| Marketing | Run social media contests for your home decor brand and collaborate with interior design influencers for free exposure. |
| Packaging | Use eco-friendly, cost-effective packaging and offer discounts for customers who opt for minimal packaging. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of tools and machinery. |
| 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. |
| Showroom Display | Invest in versatile, high-quality display units that can be easily reconfigured for different setups. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with inventory management. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff updated on trends and techniques. |
| Waste Management | Implement a waste tracking system to minimize material waste and recycle or repurpose excess materials. |
| Technology | Invest in multi-functional tools and utilize design software for efficient project planning and execution. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems and design plans. |
| Inventory Management | Use inventory management software to track stock levels and reduce overstocking or stockouts. |
| 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 Service | Invest in a CRM system to manage customer relationships and improve service quality. |
| Product Photography | Use high-quality, versatile photography equipment and consider in-house photo shoots to save on costs. |
| Trade Shows | Participate in local trade shows and events to gain exposure without the high costs of national events. |
| Website Maintenance | Regularly update your website with new products and use SEO strategies to drive organic traffic. |
Copy the tactics of the best home decor brands in the world!
There are home decor brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a home decor brand
Yes, some expenses for your home decor brand are just unnecessary. They don't contribute to increasing sales or enhancing customer satisfaction.
| Home Decor Expense | Reason It's Useless |
|---|---|
| Overly Lavish Showroom Decor | Extravagant showroom decorations don't necessarily attract more customers and can be a drain on the budget. |
| Premium Packaging | Unless you are a luxury brand, most customers are satisfied with simple, eco-friendly packaging. |
| Excessive Product Range | A large product range increases inventory costs and can overwhelm customers. |
| High-End Office Furniture | Top-of-the-line office furniture is not always necessary and can be cost-prohibitive. |
| Traditional Print Advertising | Print ads often have a lower return on investment. Don’t include them in the marketing strategy of your home decor brand. |
| 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 Display Furniture | High-end display 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 Showroom Updates | Constantly updating showroom decor and layout can be costly and disrupt operations. |
| Expensive Store Centerpieces | Elaborate store centerpieces are often ignored by customers and add to the cost. |
| High-End Display Items | Luxury display items 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 Catalog Designs | Frequently redesigning catalogs 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 home decor brand!
Managing a budget for a home decor brand when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw everything off balance.
This constant pressure makes it nearly impossible to invest in new collections or marketing campaigns, 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 flexibility and more resources to invest in your brand.
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 home decor brands just like yours. Get them now!
Make your home decor brand more profitable
We have studied the strategies of the best home decor brands in the world. All their tactics are explained in our pack!
