![How to plan and track the budget of your natural beauty products brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_a5311806-0f0b-4642-9523-ed0eb2791c42.png?v=1715856431&width=1100)
If you don’t plan and track your natural beauty products business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for natural beauty product entrepreneurs, 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 revenue.
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 natural beauty products business's finances around and set you on the path to success!
Get the budget tracker tailored for beauty brands
Most beauty brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for beauty brands
Here is an example of a (very) detailed budget for a natural beauty products brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and production space | $3,000 | $36,000 |
| Electricity | Power consumption for production and office | $500 | $6,000 |
| 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 |
|---|---|---|---|---|
| Production Manager | 1 | $4,000 | $4,000 | $48,000 |
| Formulation Chemist | 1 | $3,500 | $3,500 | $42,000 |
| Production Staff | 3 | $2,500 | $7,500 | $90,000 |
| Marketing Specialist | 1 | $3,000 | $3,000 | $36,000 |
| Customer Service | 2 | $2,000 | $4,000 | $48,000 |
| Office Manager | 1 | $3,000 | $3,000 | $36,000 |
3. Raw Materials & Packaging
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Raw Ingredients | Natural oils, extracts, and other ingredients | $8,000 | $96,000 |
| Packaging Materials | Bottles, jars, labels, etc. | $3,000 | $36,000 |
| Shipping Supplies | Boxes, packing materials, etc. | $500 | $6,000 |
| Cleaning Supplies | Sanitizers, detergents, etc. | $200 | $2,400 |
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 |
| Print Advertising | Flyers, posters, magazine ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| 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 | $150 | $1,800 |
| 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 beauty brands make 5x more profit than you!
We have studied the strategies of the best beauty brands in the world. Replicate them now!
What are the biggest expenses for a natural beauty products brand?
Be mindful of these critical expenses. Here are five major costs every natural beauty products brand owner needs to consider, along with some tips on how to manage them effectively.
- Raw material costsThese can take up a significant portion of your budget. You're dealing with natural ingredients, and prices can vary based on seasonality, supply chain issues, and quality. To keep these costs in check, focus on bulk purchasing, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium ingredients that don’t add enough value.
- Staffing for your brandYour team is your backbone, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a skilled workforce to ensure product quality and customer satisfaction. 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.
- Rent and utilities for your production facilityPrime locations come with high rent, but they can enhance your brand's image. 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 appliances and lighting. Overspending often happens when you choose a location that's too large or too luxurious for your needs.
- MarketingYou need to spread the word about your natural beauty products, 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 occur if you invest in flashy campaigns without a clear return on investment.
- Packaging and product development costsThis includes everything from eco-friendly packaging to product formulation. These are expensive because quality packaging and innovative products are crucial for customer satisfaction and brand reputation. Optimize by investing in sustainable, cost-effective packaging and maintaining a streamlined product development process. You can overspend by going for the latest trends or high-tech packaging solutions you don’t really need.
How to spend less with your natural beauty products brand?
Here are practical tips to help you, as a natural beauty products brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Partner with local organic farms for high-quality, sustainable ingredients at lower 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 beauty 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 | Utilize in-house expertise and free online resources for product development and testing. |
| 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. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Product Testing | Partner with local labs for cost-effective testing and compliance checks. |
| Customer Feedback | Use online surveys and social media to gather customer feedback and improve products. |
| Trade Shows | Attend local trade shows and events to network and promote your brand cost-effectively. |
| Website Maintenance | Use a reliable, cost-effective web hosting service and regularly update your site. |
| Subscription Services | Review and cancel any unnecessary subscription services to cut costs. |
Copy the tactics of the best beauty brands in the world!
There are beauty brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a natural beauty products brand
Yes, some expenses for your natural beauty products brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Expense | Reason It's Useless |
|---|---|
| Luxurious Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can significantly increase costs. |
| Exotic Ingredients | Using rare and expensive ingredients can inflate costs and complicate supply chains without adding significant value. |
| Excessive Product Lines | Having too many product variations increases inventory costs and can lead to more waste. |
| High-End Office Space | Premium office locations are not always necessary and can be a drain on the budget. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your beauty 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 service quality. |
| Premium Subscription Services | Expensive subscriptions for industry magazines or databases often go unnoticed by customers. |
| Exclusive Scents | Using rare scents 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 Office Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Office Decorations | Elaborate office decorations are often ignored by employees 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 natural beauty products brand!
Managing a budget for a natural beauty products brand 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 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 natural beauty brands just like yours. Get them now!
Make your natural beauty products brand more profitable
We have studied the strategies of the best beauty brands in the world. All their tactics are explained in our pack!
