![How to plan and track the budget of your shorts brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_6ec82e9a-e123-4678-af33-9a1c789b818d.png?v=1715856438&width=1100)
If you don’t plan and track your shorts brand budget properly, you're setting yourself up for failure.
When we developed our strategy pack for shorts 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 shorts brand's finances around and set you on the path to success!
Get the budget tracker tailored for shorts brands
Most shorts brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for shorts brands
Here is an example of a (very) detailed budget for a shorts brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and warehouse space | $4,000 | $48,000 |
| Electricity | Power consumption for office and warehouse | $600 | $7,200 |
| Water | Water usage | $150 | $1,800 |
| Internet & Phone | Internet service and business phone | $200 | $2,400 |
| 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 |
|---|---|---|---|---|
| Designer | 1 | $4,500 | $4,500 | $54,000 |
| Production Manager | 1 | $3,500 | $3,500 | $42,000 |
| Seamstresses | 3 | $2,500 | $7,500 | $90,000 |
| Warehouse Staff | 2 | $2,000 | $4,000 | $48,000 |
| Sales Representatives | 2 | $3,000 | $6,000 | $72,000 |
| Marketing Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Production Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Fabric | Materials for shorts production | $8,000 | $96,000 |
| Trims & Accessories | Zippers, buttons, labels, etc. | $1,500 | $18,000 |
| Packaging | Boxes, bags, and tags | $1,000 | $12,000 |
| Machinery Maintenance | Upkeep of sewing machines and other equipment | $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 | $250 | $3,000 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
| Licenses & Permits | Business licenses, permits, etc. | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
Some shorts brands make 5x more profit than you!
We have studied the strategies of the best shorts brands in the world. Replicate them now!
What are the biggest expenses for a shorts brand?
Be mindful of these pitfalls. Here are five major costs every shorts brand owner needs to consider, along with some tips on how to manage them effectively.
- Fabric and material costsThese can take up a significant portion of your budget. You're dealing with various types of fabrics, and prices can fluctuate 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 high-end materials that don’t add enough value.
- Labor costsYour team is your backbone, but paying for their wages, benefits, and training can be expensive. This cost is always high because you need skilled workers to ensure quality production and smooth operations. 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 quality.
- Rent and utilities of your production facilityPrime locations come with high rent, but they can attract more business opportunities. Utilities like electricity, gas, and water are essential but add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient machinery and lighting. Overspending often happens when you choose a facility that's too big or too fancy for your needs.
- MarketingYou need to get the word out about your shorts brand, but advertising can be pricey, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from sewing machines to packaging tools. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and product quality. 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 shorts brand?
Here are practical tips to help you, as a shorts brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Fabric Costs | Partner with local textile suppliers for high-quality, affordable materials. |
| Labor Costs | Implement a scheduling software to optimize production hours and reduce overtime. |
| Utilities | Install energy-efficient lighting and machinery in your production facility. |
| Marketing | Run social media contests for your shorts brand and collaborate with fashion influencers for free exposure. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers who opt for minimal packaging. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of sewing machines and other equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive production facility. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Inventory Management | Use inventory management software to track stock levels and reduce overproduction. |
| Shipping | Partner with reliable, cost-effective shipping companies and optimize packaging to reduce shipping costs. |
| 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. |
| Waste Management | Implement a fabric waste tracking system to minimize waste and donate excess materials. |
| Technology | Invest in multi-functional sewing machines and utilize production management software for efficiency. |
| 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. |
| Product Development | Use 3D design software to prototype new designs and reduce material waste. |
| Quality Control | Implement a robust quality control process to reduce returns and increase customer satisfaction. |
| Customer Service | Use customer service software to manage inquiries efficiently and improve response times. |
| Uniforms | Choose durable, easy-to-clean uniforms for your staff and offer a stipend for maintenance instead of using an external service. |
Copy the tactics of the best shorts brands in the world!
There are shorts brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a shorts brand
Yes, some expenses for your shorts brand are just unnecessary. They don't contribute to increasing revenue or improving customer satisfaction.
| Brand Expense | Reason It's Useless |
|---|---|
| Luxury Packaging | Overly elaborate packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| High-End Fabric | Unless you are a premium brand, most customers are satisfied with mid-range fabric options. |
| Excessive Product Lines | A large variety of shorts increases inventory costs and leads to more unsold stock. |
| Top-Tier Machinery | Top-of-the-line manufacturing equipment is 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 brand. |
| Multiple Label Designs | Having various label designs increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving product quality. |
| Premium Subscription Services | Expensive subscriptions for design tools or trend reports often go unnoticed by customers. |
| Exclusive Materials | Using rare materials can inflate costs and complicate supply chains. |
| Costly Store Fixtures | High-end store fixtures are not always appreciated by customers and can be a significant expense. |
| Custom Printed Tags | Personalized tags 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 in your office or store. |
| 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 Store Renovations | Constantly updating store decor and layout can be costly and disrupt operations. |
| Expensive Store Displays | Elaborate displays 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 shorts brand!
Managing a budget for a shorts brand when funds are tight can feel like a nightmare. It's like being trapped in a cycle where any unexpected expense can set you back significantly.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together 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 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 shorts brands just like yours. Get them now!
Make your shorts brand more profitable
We have studied the strategies of the best shorts brands in the world. All their tactics are explained in our pack!
