![How to plan and track the budget of your skate shop [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_04058ec8-4bb9-4282-a5f9-894879acc0a6.png?v=1715856516&width=1100)
If you don’t plan and track your skate shop budget properly, you're setting yourself up for failure.
When we developed our strategy pack for skate shop owners, we saw a lot of shop 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 skate shop's finances around and set you on the path to success!
Get the budget tracker tailored for skate shops
Most skate shop owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for skate shops
Here is an example of a (very) detailed budget for a skate shop, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for retail space | $3,000 | $36,000 |
| Electricity | Power consumption for lighting and displays | $400 | $4,800 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $3,500 | $3,500 | $42,000 |
| Sales Associates | 3 | $2,000 | $6,000 | $72,000 |
| Inventory Specialist | 1 | $2,500 | $2,500 | $30,000 |
| Marketing Coordinator | 1 | $3,000 | $3,000 | $36,000 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Skateboards | Decks, trucks, wheels, and bearings | $5,000 | $60,000 |
| Apparel | Clothing and accessories | $3,000 | $36,000 |
| Safety Gear | Helmets, pads, and guards | $1,000 | $12,000 |
| Tools & Maintenance | Skateboard tools and maintenance kits | $500 | $6,000 |
| Display Fixtures | Racks, shelves, and display units | $300 | $3,600 |
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 | Skate competitions and community events | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of store equipment | $200 | $2,400 |
| Uniforms | Staff uniforms and branded apparel | $100 | $1,200 |
| Licenses & Permits | Business licenses and permits | $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. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some skate shops make 5x more profit than you!
We have studied the strategies of the best skate shops in the world. Replicate them now!
What are the biggest expenses for a skate shop?
Watch out for these budget busters. Here are five major costs every skate shop owner needs to consider, along with some tips on how to manage them effectively.
- Inventory CostsSkateboards, wheels, trucks, and accessories can take a significant portion of your budget. Prices can vary based on brand, quality, and demand. To keep these costs in check, focus on stocking popular items, negotiate better prices with suppliers, and avoid overstocking. It's easy to overspend by buying too much or opting for high-end products that don’t sell quickly.
- Staffing Your Skate ShopYour employees are essential for providing excellent customer service and maintaining the shop. However, wages, benefits, and training can be costly. Optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. Be cautious not to underpay or overwork your staff, as this can lead to high turnover and poor customer service.
- Rent and Utilities of Your ShopPrime retail locations come with high rent, but they can attract more foot traffic. Utilities like electricity, heating, and water are necessary but can add up quickly. To manage these costs, negotiate favorable lease terms and invest in energy-efficient lighting and appliances. Overspending often occurs when you choose a location that's too large or too upscale for your needs.
- MarketingGetting the word out about your skate shop is crucial, 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 happen if you invest in flashy campaigns without a clear return on investment.
- Shop Equipment and Maintenance CostsThis includes everything from display racks to point-of-sale systems. Quality equipment and regular maintenance are essential for smooth operations and customer 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 skate shop?
Here are practical tips to help you, as a skate shop owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with local skateboard manufacturers for bulk discounts and exclusive products. |
| Labor Costs | Use scheduling software to optimize staff hours and reduce overtime, ensuring you have the right number of employees during peak and off-peak times. |
| Utilities | Install LED lighting and energy-efficient HVAC systems to reduce electricity bills. |
| Marketing | Run social media contests for your skate shop and collaborate with local influencers and skateboarding communities for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste and maintain a clean, inviting store environment. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of skate ramps, tools, and other equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location with good foot traffic. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually to get the best deal. |
| Packaging | Use cost-effective, eco-friendly packaging for products and offer discounts for customers bringing their own bags. |
| Display Fixtures | Invest in high-quality, durable display fixtures that can withstand frequent use and showcase products effectively. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with inventory management software. |
| Staff Training | Conduct regular in-house training sessions on product knowledge and customer service, and use free online resources. |
| Waste Management | Implement a recycling program for packaging materials and encourage customers to recycle old skateboards and parts. |
| Technology | Invest in a robust e-commerce platform to expand your reach and utilize retail management software for inventory and sales tracking. |
| Uniforms | Choose durable, easy-to-clean uniforms for staff and offer a stipend for maintenance instead of using an external service. |
| Event Hosting | Host local skateboarding events and workshops to build community engagement and drive foot traffic to your store. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals, especially for events and skate park operations. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs, especially for online orders and local deliveries. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems and inventory management. |
| Inventory Management | Use inventory management software to track stock levels, reduce overstock, and ensure popular items are always available. |
| Pest Control | Schedule regular pest control services and maintain cleanliness standards to prevent infestations, especially in storage areas. |
| Music and Entertainment | Use a streaming service for background music and host local DJs or live music events during special promotions. |
Copy the tactics of the best skate shops in the world!
There are skate shops that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a skate shop
Yes, some expenses for your skate shop are just unnecessary. They don't contribute to increasing sales or improving customer satisfaction.
| Skate Shop Expense | Reason It's Useless |
|---|---|
| High-End Store Fixtures | Overly luxurious fixtures don't necessarily attract more customers and can be a drain on the budget. |
| Premium Skate Brands | Unless you cater to a niche market, most customers are satisfied with mid-range options. |
| Excessive Inventory | Stocking too many products increases inventory costs and can lead to unsold items. |
| Top-of-the-Line Tools | High-end tools for board assembly and maintenance 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 skate shop. |
| Multiple Uniform Styles | Having various uniform 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 music or magazines often go unnoticed by customers. |
| Exclusive Skate Parts | Using rare parts can inflate costs and complicate supply chains. |
| Costly Furniture | High-end 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 decor and layout can be costly and disrupt operations. |
| Expensive Display Pieces | Elaborate display pieces are often ignored by customers and add to the cost. |
| High-End Display Cases | Luxury display cases 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 Signage Designs | Frequently redesigning signage 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 skate shop!
Managing a budget for a skate shop when funds are tight can feel like a nightmare. It's like being stuck in a grind where any unexpected expense can throw you off balance.
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 spend.
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 skate shops just like yours. Get them now!
Make your skate shop more profitable
We have studied the strategies of the best skate shops in the world. All their tactics are explained in our pack!
