![How to plan and track the budget of your online makeup store [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-8_dc7f9e7f-adea-4c26-8c03-43fadf9646a2.png?v=1715856396&width=1100)
If you don’t plan and track your makeup store budget properly, you're setting yourself up for failure.
When we developed our strategy pack for online makeup store owners, we saw a lot of business 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 makeup store's finances around and set you on the path to success!
Get the budget tracker tailored for makeup stores
Most makeup store owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for makeup stores
Here is an example of a (very) detailed budget for an online makeup store, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Warehouse Rent | Lease for storage space | $2,000 | $24,000 |
| Electricity | Power consumption for warehouse and office | $300 | $3,600 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $50 | $600 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Warehouse Manager | 1 | $3,500 | $3,500 | $42,000 |
| Warehouse Staff | 2 | $2,000 | $4,000 | $48,000 |
| Customer Service Representatives | 3 | $2,500 | $7,500 | $90,000 |
| Marketing Specialist | 1 | $3,000 | $3,000 | $36,000 |
| IT Support | 1 | $3,000 | $3,000 | $36,000 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Makeup Products | Foundation, lipstick, eyeshadow, etc. | $15,000 | $180,000 |
| Packaging Materials | Boxes, bubble wrap, etc. | $1,000 | $12,000 |
| Shipping Supplies | Labels, tape, etc. | $500 | $6,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $1,000 | $12,000 |
| Social Media Management | Managing social media accounts | $800 | $9,600 |
| Influencer Collaborations | Partnerships with beauty influencers | $1,500 | $18,000 |
| Website Maintenance | Hosting, domain, updates | $200 | $2,400 |
| Email Marketing | Email campaigns and newsletters | $300 | $3,600 |
| Promotional Events | Special events and promotions | $500 | $6,000 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Software Subscriptions | Inventory management, CRM, etc. | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Licenses & Permits | Business licenses, permits, etc. | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some makeup stores make 5x more profit than you!
We have studied the strategies of the best makeup stores in the world. Replicate them now!
What are the biggest expenses for a makeup online store?
Be mindful of these critical expenses. Here are five major costs every makeup online store owner needs to consider, along with some tips on how to manage them effectively.
- Inventory costsThese can take up a significant portion of your budget. You're dealing with products that have shelf lives, and prices can vary based on brand popularity, trends, 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 buying too much or opting for high-end products that don’t sell quickly.
- Staffing for your online storeYour team is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a certain number of employees to provide excellent customer service and manage operations smoothly. You can 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.
- Website and hosting costsA professional, user-friendly website is crucial, but it comes with expenses like hosting, domain registration, and maintenance. To optimize these costs, choose a reliable hosting service and invest in a scalable website platform. Overspending often happens when you opt for overly complex designs or unnecessary features that don’t enhance user experience.
- MarketingYou need to attract customers to your online store, but advertising can be expensive, whether it's online ads, social media campaigns, or influencer partnerships. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Packaging and shipping costsThis includes everything from packaging materials to shipping fees. These are significant because quality packaging and reliable shipping are crucial for customer satisfaction. Optimize by investing in durable, cost-effective packaging and negotiating better rates with shipping carriers. You can overspend by choosing premium packaging options or expedited shipping services that don’t add enough value.
How to spend less with your online makeup store?
Here are practical tips to help you, as a makeup online store owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Product Sourcing | Partner with reputable suppliers for bulk purchases to get better rates and ensure quality. |
| Website Hosting | Choose a reliable hosting service that offers scalable plans to match your business growth. |
| Marketing | Run social media campaigns and collaborate with beauty influencers for organic reach. |
| Packaging | Use cost-effective, eco-friendly packaging and offer incentives for customers who opt for minimal packaging. |
| Shipping | Negotiate rates with multiple shipping carriers and offer free shipping for orders over a certain amount. |
| Inventory Management | Implement inventory management software to track stock levels and avoid overstocking or stockouts. |
| Customer Service | Use chatbots for initial customer inquiries and invest in training for your customer service team. |
| Advertising | Utilize targeted ads on social media platforms and Google Ads to reach your specific audience. |
| Website Design | Invest in a user-friendly, mobile-optimized website to enhance customer experience and increase sales. |
| Product Photography | Hire a professional photographer for high-quality images or invest in a good camera and lighting setup. |
| SEO | Optimize your website content for search engines to improve organic traffic and reduce paid advertising costs. |
| Returns and Refunds | Implement a clear return policy and use return management software to streamline the process. |
| Software Subscriptions | Regularly review software subscriptions to ensure they meet your current needs and cancel unused services. |
| Content Creation | Leverage user-generated content and collaborate with beauty bloggers for authentic reviews and tutorials. |
| Data Analytics | Use analytics tools to track customer behavior and optimize your marketing strategies accordingly. |
| Payment Processing | Choose a payment gateway with low transaction fees and ensure it supports multiple payment methods. |
| Legal and Compliance | Stay updated with industry regulations to avoid fines and ensure your products meet safety standards. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Staff Training | Conduct regular training sessions and use free online resources to keep your team updated on the latest trends. |
| Technology | Invest in a robust e-commerce platform and utilize automation tools for order processing and customer management. |
| Branding | Develop a strong brand identity and use consistent branding across all marketing channels. |
| Customer Loyalty | Implement a loyalty program to reward repeat customers and encourage referrals. |
Copy the tactics of the best makeup stores in the world!
There are makeup stores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a makeup online store
Yes, some expenses for your makeup online store are just unnecessary. They don't contribute to increasing sales or enhancing customer satisfaction.
| Makeup Store 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 Brand Collaborations | Unless you are targeting a luxury market, most customers are satisfied with mid-range collaborations. |
| Excessive Product Range | A large product range increases inventory costs and leads to more unsold items. |
| Top-Tier Website Features | Advanced website features are 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 makeup store. |
| 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 service quality. |
| Premium Subscription Services | Expensive subscriptions for beauty magazines or exclusive content 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 customers and can be a significant expense. |
| Custom Printed Boxes | Personalized boxes 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 standard bottled water, making expensive brands 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 Website Redesigns | Constantly updating the website design 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 customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Product Photography | Frequently updating product photos 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 online makeup store!
Managing a budget for an online makeup store 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 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, 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 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 online makeup stores just like yours. Get them now!
Make your online makeup store more profitable
We have studied the strategies of the best makeup stores in the world. All their tactics are explained in our pack!
