![How to plan and track the budget of your necklace brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_7ae76a7d-078e-4193-9159-f0e2ba6738ef.png?v=1715856414&width=1100)
If you don’t plan and track your jewelry business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for necklace brand owners, we saw a lot of entrepreneurs 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 necklace brand's finances around and set you on the path to success!
Get the budget tracker tailored for necklace brands
Most necklace brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for necklace brands
Here is an example of a (very) detailed budget for a necklace brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and workshop space | $2,500 | $30,000 |
| Electricity | Power consumption for lighting and equipment | $300 | $3,600 |
| 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 | $200 | $2,400 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Designer | 1 | $4,000 | $4,000 | $48,000 |
| Jewelry Maker | 2 | $3,000 | $6,000 | $72,000 |
| Sales Associate | 2 | $2,500 | $5,000 | $60,000 |
| Marketing Specialist | 1 | $3,500 | $3,500 | $42,000 |
| Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Materials & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Metals | Gold, silver, and other metals | $5,000 | $60,000 |
| Gemstones | Diamonds, sapphires, etc. | $3,000 | $36,000 |
| Packaging | Boxes, bags, and wrapping materials | $500 | $6,000 |
| Tools & Equipment | Jewelry making tools and machinery | $300 | $3,600 |
| Office Supplies | Stationery, printer ink, etc. | $100 | $1,200 |
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 tools and machinery | $200 | $2,400 |
| Licenses & Permits | Business licenses, permits, etc. | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some necklace brands make 5x more profit than you!
We have studied the strategies of the best necklace brands in the world. Replicate them now!
What are the biggest expenses for a necklace brand?
Be mindful of these crucial factors. Here are five major costs every necklace brand owner needs to consider, along with some tips on how to manage them effectively.
- Material and production costsThese can take up a significant portion of your budget. You're dealing with precious metals, gemstones, and other materials whose prices can fluctuate based on market demand, quality, and availability. To keep these costs in check, focus on bulk purchasing, negotiate better rates with suppliers, and minimize waste. It's easy to overspend by opting for high-end materials that don’t add enough value to your designs.
- Labor costsYour artisans and designers are the heart of your brand, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled professionals to create high-quality pieces. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and compromised quality.
- Retail space and utilitiesPrime retail locations come with high rent, but they can attract more customers. Utilities like electricity, heating, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient lighting and appliances. Overspending often happens when you choose a location that's too large or too luxurious for your needs.
- MarketingYou need to get the word out about your necklace brand, 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 occur if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from crafting tools to display cases. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient tools and maintaining them 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 necklace brand?
Here are practical tips to help you, as a necklace brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Material Costs | Source materials directly from reputable suppliers and buy in bulk to get discounts. |
| Labor Costs | Utilize skilled artisans and implement efficient production schedules to maximize productivity. |
| Utilities | Invest in energy-efficient lighting and machinery to reduce electricity costs. |
| Marketing | Run social media campaigns for your necklace brand and collaborate with fashion influencers for organic reach. |
| Packaging | Use eco-friendly, cost-effective packaging and offer incentives for customers who opt for minimal packaging. |
| Equipment Maintenance | Maintain a regular servicing schedule for all equipment to prevent costly breakdowns. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider a shared workspace to reduce overhead costs. |
| Insurance | Review your insurance policies annually to ensure they meet your current needs and compare rates for the best deal. |
| Inventory Management | Implement an inventory management system to track stock levels and reduce overproduction. |
| Shipping | Partner with reliable shipping companies and negotiate bulk shipping rates. |
| Website Maintenance | Use a cost-effective e-commerce platform and regularly update your website to enhance user experience. |
| Staff Training | Conduct regular training sessions and utilize free online resources to keep your team updated on the latest trends and techniques. |
| Waste Management | Implement a recycling program for scrap materials and donate excess stock to charities. |
| Technology | Invest in multi-functional tools and software to streamline design and production processes. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| 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. |
| Customer Service | Use customer relationship management (CRM) software to track interactions and improve service quality. |
| Photography | Invest in high-quality photography equipment or hire a professional to create stunning product images. |
| Trade Shows | Participate in relevant trade shows to showcase your products and network with potential buyers. |
| Product Development | Conduct market research to understand customer preferences and develop products that meet their needs. |
Copy the tactics of the best necklace brands in the world!
There are necklace brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a necklace brand
Yes, some expenses for your necklace brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Necklace Brand Expense | Reason It's Useless |
|---|---|
| Overly Luxurious Packaging | Extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| Premium Gemstones | Unless you are targeting a high-end market, most customers are satisfied with mid-range options. |
| Excessive Design Variants | A large variety of designs increases inventory costs and leads to more unsold stock. |
| High-End Display Cases | Top-of-the-line display cases 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 necklace brand. |
| Multiple Packaging Styles | Having various packaging 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 magazines or industry reports often go unnoticed by customers. |
| Exclusive Materials | Using rare materials 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 Bags | Personalized 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 Renovations | Constantly updating store decor and layout can be costly and disrupt operations. |
| Expensive Store Decorations | Elaborate decorations 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 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 necklace brand!
Managing a budget for a necklace brand when funds are tight can feel overwhelming. It's like being trapped where any unexpected expense can throw your plans off course.
This constant pressure makes it nearly impossible to invest in growth projects, 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 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 necklace brands just like yours. Get them now!
Make your necklace brand more profitable
We have studied the strategies of the best necklace brands in the world. All their tactics are explained in our pack!
