![How to plan and track the budget of your soft drinks brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_6dd129de-5336-4725-a841-c54d9dc6db7f.png?v=1715856408&width=1100)
If you don’t plan and track your soft drink brand's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for beverage entrepreneurs, we saw a lot of soft drink brand 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 soft drink brand's finances around and set you on the path to success!
Get the budget tracker tailored for soft drinks brands
Most soft drink beand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for soft drinks brands
Here is an example of a (very) detailed budget for a soft drinks brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for production facility | $4,000 | $48,000 |
| Electricity | Power consumption for production and office | $1,200 | $14,400 |
| Water | Water usage for production | $500 | $6,000 |
| Gas | Gas for heating and production | $300 | $3,600 |
| Internet & Phone | Internet service and business phone | $200 | $2,400 |
| Waste Removal | Garbage and recycling services | $150 | $1,800 |
| Pest Control | Monthly pest control services | $75 | $900 |
| Insurance | Property and liability insurance | $600 | $7,200 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Production Manager | 1 | $5,000 | $5,000 | $60,000 |
| Quality Control Specialist | 1 | $4,000 | $4,000 | $48,000 |
| Production Workers | 5 | $2,500 | $12,500 | $150,000 |
| Sales Representatives | 3 | $3,000 | $9,000 | $108,000 |
| Office Staff | 2 | $2,500 | $5,000 | $60,000 |
| Marketing Manager | 1 | $4,500 | $4,500 | $54,000 |
3. Production Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Raw Materials | Ingredients for soft drinks | $15,000 | $180,000 |
| Packaging | Bottles, labels, caps, etc. | $5,000 | $60,000 |
| Cleaning Supplies | Sanitizers, detergents, etc. | $300 | $3,600 |
| Maintenance Supplies | Tools and parts for equipment maintenance | $200 | $2,400 |
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, newspaper 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 production equipment | $600 | $7,200 |
| Uniforms | Staff uniforms and safety gear | $250 | $3,000 |
| Licenses & Permits | Health permits, business licenses, etc. | $150 | $1,800 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $150 | $1,800 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some soft drinks brands make 5x more profit than you!
We have studied the strategies of the best soft drinks brands in the world. Replicate them now!
What are the biggest expenses for a soft drinks brand?
Watch out for these budget busters. Here are five major costs every soft drinks brand needs to consider, along with some tips on how to manage them effectively.
- Raw material costsThese can take a significant portion of your budget. You're dealing with ingredients like sugar, flavorings, and carbonated water, 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.
- Labor costsYour team is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a skilled workforce to ensure quality production and efficient operations. Optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and decreased morale.
- Production facility rent and utilitiesPrime locations for your production facility come with high rent, but they can be crucial for logistics and distribution. Utilities like electricity, water, and gas are essential but can 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 large or too sophisticated for your needs.
- Marketing and advertisingGetting the word out about your soft drinks brand is essential, 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 bottling machines to refrigeration units. 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 soft drinks brand?
Here are practical tips to help you, as a soft drinks brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Source ingredients from local suppliers to reduce transportation costs and ensure freshness. |
| Labor Costs | Utilize workforce management software to streamline scheduling and minimize overtime. |
| Utilities | Invest in energy-efficient production equipment and LED lighting to cut down on utility bills. |
| Marketing | Leverage social media campaigns and collaborate with influencers to boost brand visibility at minimal cost. |
| Packaging | Opt for eco-friendly, cost-effective packaging solutions and encourage customers to recycle. |
| Equipment Maintenance | Maintain a regular servicing schedule for production machinery to prevent costly breakdowns. |
| Rent/Mortgage | Negotiate better lease terms or consider relocating to a more cost-effective facility. |
| Insurance | Review and compare insurance policies annually to ensure they meet your current needs at the best rates. |
| Distribution | Optimize delivery routes and partner with efficient logistics providers to reduce transportation costs. |
| POS System | Choose a POS system that integrates seamlessly with your inventory and sales tracking software. |
| Staff Training | Offer regular training sessions and utilize free online resources to keep your team updated on best practices. |
| Waste Management | Implement a waste reduction program and recycle materials whenever possible. |
| Technology | Invest in advanced production technology to increase efficiency and reduce operational costs. |
| Office Supplies | Buy office supplies in bulk and transition to digital documentation to cut down on paper usage. |
| Inventory Management | Use inventory management software to monitor stock levels and reduce waste. |
| Licensing and Permits | Stay informed about local regulations to avoid fines and ensure timely renewals of necessary permits. |
| Transportation | Plan delivery schedules efficiently to minimize fuel consumption and reduce costs. |
| 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. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local musicians during off-peak times. |
| 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 soft drinks brands in the world!
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Expenses that are just useless for a soft drinks brand
Yes, some expenses for your soft drinks brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Soft Drink Brand Expense | Reason It's Useless |
|---|---|
| Luxurious Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| Premium Ingredients | Unless you are targeting a niche market, most customers are satisfied with standard, high-quality ingredients. |
| Excessive Flavor Varieties | A large variety of flavors increases production costs and can lead to more waste. |
| High-End Production Equipment | Top-of-the-line production equipment is not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your soft drinks brand. |
| Multiple Bottle Designs | Having various bottle designs increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving production efficiency. |
| Premium Subscription Services | Expensive subscriptions for market research or industry reports often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients 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 Sources | Most customers are content with purified water, making expensive water sources 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 Rebranding | Constantly updating branding and packaging can be costly and disrupt operations. |
| Expensive Promotional Items | Elaborate promotional items 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 employees. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Marketing Materials | Frequently redesigning marketing materials 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 soft drinks brand!
Managing a budget for a soft drinks brand when funds are tight can feel like an uphill battle. It's like being stuck in a maze where any unexpected expense can throw you off course.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you perpetually focused on just staying afloat. 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 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 soft drinks brands just like yours. Get them now!
Make your soft drinks brand more profitable
We have studied the strategies of the best soft drinks brands in the world. All their tactics are explained in our pack!
