![How to plan and track the budget of your sports brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_1aab6a2b-760a-4ca3-85a8-52fcd776b37f.png?v=1715856439&width=1100)
If you don’t plan and track your sports brand budget properly, you're setting yourself up for failure.
When we developed our strategy pack for sports brand owners, we saw a lot of 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 sports brand's finances around and set you on the path to success!
Get the budget tracker tailored for sports brands
Most sports brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for sports brands
Here is an example of a (very) detailed budget for a sports brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and warehouse space | $7,000 | $84,000 |
| Electricity | Power consumption for office and warehouse | $1,000 | $12,000 |
| Water | Water usage | $300 | $3,600 |
| Internet & Phone | Internet service and business phone | $200 | $2,400 |
| Waste Removal | Garbage and recycling services | $150 | $1,800 |
| Insurance | Property and liability insurance | $600 | $7,200 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| CEO | 1 | $10,000 | $10,000 | $120,000 |
| Marketing Manager | 1 | $6,000 | $6,000 | $72,000 |
| Product Designers | 3 | $5,000 | $15,000 | $180,000 |
| Sales Representatives | 4 | $4,000 | $16,000 | $192,000 |
| Warehouse Staff | 5 | $3,000 | $15,000 | $180,000 |
| Customer Service | 3 | $3,500 | $10,500 | $126,000 |
3. Inventory & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Raw Materials | Fabrics, rubber, and other materials | $20,000 | $240,000 |
| Finished Goods | Ready-to-sell sportswear and equipment | $15,000 | $180,000 |
| Packaging Supplies | Boxes, bags, and labels | $1,000 | $12,000 |
| Office Supplies | Stationery, printer ink, etc. | $300 | $3,600 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $2,000 | $24,000 |
| Social Media Management | Managing social media accounts | $1,000 | $12,000 |
| Print Advertising | Flyers, posters, magazine ads | $500 | $6,000 |
| Website Maintenance | Hosting, domain, updates | $300 | $3,600 |
| Email Marketing | Email campaigns and newsletters | $400 | $4,800 |
| Promotional Events | Special events and sponsorships | $1,000 | $12,000 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of manufacturing equipment | $1,000 | $12,000 |
| Uniforms | Staff uniforms and safety gear | $300 | $3,600 |
| Licenses & Permits | Business licenses and permits | $200 | $2,400 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $1,000 | $12,000 |
| Staff Training | Training programs and materials | $500 | $6,000 |
Some sports brands make 5x more profit than you!
We have studied the strategies of the best sports brands in the world. Replicate them now!
What are the biggest expenses for a sports brand?
Be mindful of these critical expenses. Here are five major costs every sports brand owner needs to consider, along with some tips on how to manage them effectively.
- Product development and materialsThese can consume a significant portion of your budget. You're dealing with raw materials, and prices can vary based on availability, quality, and market demand. To keep these costs in check, focus on efficient design processes, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by opting for premium materials that don’t add enough value or by producing too many prototypes.
- Your teamYour team is your backbone, but paying for their salaries, benefits, and training can be costly. This expense is always high because you need a skilled workforce to ensure quality and innovation. You can optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and decreased morale.
- 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 fixtures and systems. Overspending often happens when you choose a location that's too large or too luxurious for your needs.
- Marketing and sponsorshipsYou need to promote your sports brand, but advertising and sponsorships can be expensive, whether it's online ads, social media campaigns, or athlete endorsements. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can occur if you invest in high-profile campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from manufacturing machinery to retail fixtures. These are expensive because quality equipment and regular maintenance are crucial 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 sports brand?
Here are practical tips to help you, as a sports brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Product Manufacturing | Partner with local manufacturers for high-quality, cost-effective production. |
| Labor Costs | Implement workforce management software to optimize employee schedules and reduce overtime. |
| Utilities | Install energy-efficient lighting and machinery in your production facilities. |
| Marketing | Run social media campaigns and collaborate with athletes and fitness influencers for organic exposure. |
| Raw Materials | Negotiate bulk purchase deals with suppliers and explore sustainable material options. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of manufacturing equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a more cost-effective location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers who bring their own bags. |
| Product Design | Invest in high-quality, durable materials that can withstand rigorous use. |
| 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 waste tracking system to minimize material waste and recycle excess materials. |
| Technology | Invest in multi-functional machinery and utilize inventory management software for efficient stock control. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
| Product Catalogs | Use digital catalogs or QR codes for product information to reduce printing costs. |
| 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. |
| 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 in stores and host local fitness events 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 sports brands in the world!
There are sports brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a sports brand
Yes, some expenses for your sports brand are just unnecessary. They don't contribute to increasing sales or enhancing customer satisfaction.
| Sports Brand Expense | Reason It's Useless |
|---|---|
| Luxury Office Space | High-end office spaces don't necessarily improve productivity and can be a significant drain on the budget. |
| Premium Packaging | Unless you are a luxury brand, most customers are satisfied with standard packaging options. |
| Excessive Product Lines | A large product range increases inventory costs and can lead to more unsold stock. |
| Top-Tier Equipment | High-end manufacturing equipment is not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Paper ads and billboards often have a lower return on investment. Focus on digital marketing instead. |
| Multiple Uniform Styles | Having various uniform styles for staff increases costs without adding significant value to the brand image. |
| Overstaffing | Having more staff than needed leads to higher labor costs without necessarily improving service quality. |
| Expensive Subscriptions | Costly subscriptions for industry magazines or services often go unnoticed by customers. |
| Exclusive Materials | Using rare materials can inflate costs and complicate supply chains. |
| High-End Office Furniture | Luxury office furniture is not always appreciated by employees and can be a significant expense. |
| Custom Printed Stationery | Personalized stationery is a minor detail that most customers overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most employees and 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. |
| Frequent Office Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Display Units | Elaborate display units are often ignored by customers and add to the cost. |
| High-End Promotional Items | Luxury promotional items 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 sports brand!
Managing a budget for a sports brand when funds are tight can feel like an uphill battle. It's like being stuck in a never-ending cycle where any unexpected expense can throw you off course.
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, cutting corners 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 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 sports brands just like yours. Get them now!
Make your sports brand more profitable
We have studied the strategies of the best sports brands in the world. All their tactics are explained in our pack!
