Finance

Finances for Hairdressers – Take Control Without the Stress

Let’s be honest – finances probably aren’t the most exciting part of running a salon. But the truth is, understanding your numbers gives you freedom. It’s not about drowning in spreadsheets or worrying about taxes – it’s about making sure you can do what you love without financial stress holding you back. Many hairdressers feel overwhelmed by taxes, budgeting, and pricing, but you don’t need to be a financial expert to run a successful salon. You just need the right mindset, simple tools, and a bit of structure.

Taxes, VAT & Expenses – What You Need to Know

Yes, taxes are a fact of life. But instead of seeing them as something complicated, think of them as part of your business strategy.

• VAT (Value-Added Tax) – In most European countries, hair salons charge VAT on services and products. This isn’t money that belongs to you – it’s collected on behalf of the government, so setting it aside early will save you from surprises later.
• Income tax – If you’re self-employed, you’ll pay tax on your profits. If you run a company, the business pays corporation tax, and you take a salary.
• Deductions & write-offs – Many hairdressers forget how much they can deduct. Rent, furniture, tools, shampoos, styling products, even education – these are business expenses that can lower your tax bill.

The best advice? Work with an accountant who understands the hairdressing industry. They’ll help you optimize your finances so you keep more of what you earn.

Budgeting – Know Your Numbers & Stay in Control

A budget might sound complicated, but it’s just a simple way to make sure your salon is profitable. You don’t need fancy software—just start by answering these three questions:

1. How much do I need to earn each month to cover my costs?
2. How many appointments do I need to hit that goal?
3. How can I increase my profits without working extra hours?

Once you break it down, it’s easier to adjust your prices, cut unnecessary costs, or invest in better equipment that makes you more money over time.

Pricing – Don’t Undervalue Yourself

One of the biggest mistakes hairdressers make is charging too little. Being affordable might seem like a good idea, but if you’re not making enough to pay yourself a decent salary, you’ll just end up overworked and exhausted. When setting prices, consider:

• Your costs – What does it cost you to have a client in your chair? Think about rent, equipment, and products.
• Your time – A haircut isn’t just about scissors – it’s about your expertise. Charge for your skills, not just the materials.
• Your income goal – How much do you want to earn? Work backwards and set your prices accordingly.

Raising prices can feel scary, but clients pay for your knowledge, skill, and service – not just for a haircut. The right clients will always be willing to invest in quality.

Investments – Buy Smart, Not Cheap

When it comes to salon furniture, equipment, and supplies, the cheapest option isn’t always the smartest choice. Before buying, ask yourself:

• Will this last, or will I need to replace it soon?
• Is it ergonomic, so I can work comfortably without injuring myself?
• Will it improve my clients’ experience, making them return more often?

A good investment pays for itself over and over – whether it’s a chair that prevents back pain, a high-quality hairdryer that speeds up styling, or an extraction unit that keeps your salon’s air clean.

Take Charge of Your Finances & Your Future

Finances aren’t just about numbers – they’re about peace of mind. When you know where your money is going, you can make confident decisions that let you work smarter, not harder. If handling finances feels overwhelming, remember: you’re not alone. Many hairdressers feel exactly the same way, but with a few simple steps, you can take control of your business and build the salon and career you dream of. You’ve mastered your craft – now let’s make sure your business thrives too.