![How to plan and track the budget of your makeup studio [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-8_d6d6327a-82c3-4ddf-9848-93d715419439.png?v=1715856525&width=1100)
If you don’t plan and track your makeup studio's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for makeup studio owners, we saw a lot of studio owners 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 makeup studio's finances around and set you on the path to success!
Get the budget tracker tailored for makeup studios
Most makeup studio owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for makeup studios
Here is an example of a (very) detailed budget for a makeup studio, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for studio space | $3,000 | $36,000 |
| Electricity | Power consumption for lighting and equipment | $400 | $4,800 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| 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 |
|---|---|---|---|---|
| Lead Makeup Artist | 1 | $4,000 | $4,000 | $48,000 |
| Assistant Makeup Artists | 2 | $2,500 | $5,000 | $60,000 |
| Receptionist | 1 | $2,000 | $2,000 | $24,000 |
| Manager | 1 | $3,500 | $3,500 | $42,000 |
3. Makeup & Supplies Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Makeup Inventory | Foundations, eyeshadows, lipsticks, etc. | $2,000 | $24,000 |
| Skincare Products | Cleansers, moisturizers, primers | $500 | $6,000 |
| Brushes & Tools | Brushes, sponges, applicators | $300 | $3,600 |
| Cleaning Supplies | Sanitizers, brush cleaners, etc. | $100 | $1,200 |
| Disposable Items | Wipes, cotton pads, tissues | $150 | $1,800 |
| Furniture & Fixtures | Chairs, mirrors, lighting | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, magazine ads | $200 | $2,400 |
| 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 studio equipment | $200 | $2,400 |
| Uniforms | Staff uniforms and aprons | $100 | $1,200 |
| Licenses & Permits | Business licenses, health permits, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $50 | $600 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some makeup studios make 5x more profit than you!
We have studied the strategies of the best makeup studios in the world. Replicate them now!
What are the biggest expenses for a makeup studio?
Be mindful of these potential pitfalls. Here are five major costs every makeup studio owner needs to consider, along with some tips on how to manage them effectively.
- Cosmetics and suppliesThese can take up a significant portion of your budget. You're dealing with products that have a shelf life, and prices can vary based on brand, quality, and availability. To keep these costs under control, focus on inventory management, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by purchasing too much or opting for high-end products that don’t provide enough return on investment.
- Your makeup artistsYour team is your foundation, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled professionals to deliver excellent service and maintain your studio's reputation. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be cautious not to underpay or overwork your team, as this can lead to high turnover and poor service quality.
- Rent and utilities of your studioPrime locations come with high rent, but they can attract more clients. Utilities like electricity, water, and heating/cooling are essential 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.
- MarketingYou need to promote your makeup studio, 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 provide in our package. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Studio equipment and maintenance costsThis includes everything from makeup chairs to lighting and mirrors. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and client satisfaction. 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 makeup studio?
Here are practical tips to help you, as a makeup studio owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Cosmetics and Supplies | Partner with local or wholesale suppliers for bulk purchases at discounted rates. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient appliances to reduce electricity costs. |
| Marketing | Run social media contests for your makeup studio and collaborate with local influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste and maintain hygiene standards. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of makeup tools and equipment. |
| 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 for products and offer discounts for customers bringing their own bags. |
| Furniture and Decor | Invest in high-quality, durable furniture that can withstand frequent use and enhances the studio's ambiance. |
| 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 to keep staff updated on the latest makeup trends and techniques. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle where possible. |
| Technology | Invest in multi-functional beauty devices and utilize studio management software for appointments and client records. |
| Linen and Laundry | Partner with a cost-effective linen service and consider reusable towels and capes. |
| Brochures and Flyers | Use digital brochures or QR codes for service menus to reduce printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes for product shipments to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital client management systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage of cosmetics. |
| 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 create a relaxing atmosphere for clients. |
| 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 makeup studios in the world!
There are makeup studios that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a makeup studio
Yes, some expenses for your makeup studio are just unnecessary. They don't contribute to increasing revenue or enhancing the client experience.
| Makeup Studio Expense | Reason It's Useless |
|---|---|
| Luxurious Decor | Overly extravagant decor doesn't necessarily attract more clients and can be a drain on the budget. |
| High-End Makeup Brands | Unless you cater to a very exclusive clientele, most clients are satisfied with mid-range options. |
| Excessive Product Range | Having too many products increases inventory costs and leads to more waste. |
| Top-Tier Equipment | High-end makeup tools are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your makeup studio. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the client experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by clients. |
| Exclusive Ingredients | Using rare ingredients in makeup products can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by clients and can be a significant expense. |
| Custom Printed Items | Personalized items like napkins or towels are a minor detail that most clients 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 clients 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 decor and layout can be costly and disrupt operations. |
| Expensive Centerpieces | Elaborate centerpieces are often ignored by clients and add to the cost. |
| High-End Tools | Luxury makeup tools are prone to damage and expensive to replace, often going unnoticed by clients. |
| 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 Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your makeup studio!
Managing a budget for a makeup studio when funds are tight can feel overwhelming. It's like being trapped where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth opportunities, 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 resources to invest back into your studio.
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 makeup studios just like yours. Get them now!
Make your makeup studio more profitable
We have studied the strategies of the best makeup studios in the world. All their tactics are explained in our pack!
