Finances for Hairdressers – Get a handle on the numbers without stress
Finances can feel like a heavy, boring topic—something you’d rather get over with as fast as possible. But the truth is, your finances don’t have to be a source of stress. When you’ve got a grip on the numbers, it doesn’t just give you peace of mind—it also gives you the freedom to focus on what you do best: creating fantastic results for your clients. Many Hairdressers walk around with a fear of tax rules, VAT filing, and budgets, but the truth is, you don’t have to be an economist to run a healthy salon. You just need the right tools and the right approach.
VAT, tax, and duties—It sounds complicated, but it doesn’t have to be
Yes, VAT is something we all have to deal with. But instead of seeing it as an overwhelming task, think of it as a fixed part of your business that you can plan around.
- VAT (25%)—When you sell services and products, you charge VAT. It’s not your money, and you just need to set it aside so it can be paid on to SKAT.
- Tax—How much tax you pay depends on your business structure. If you’re a sole proprietor, you pay personal tax on your profit. If you have a company, the business pays corporate tax.
- Deductions and expenses—Many Hairdressers forget how much they can actually deduct. Rent, furnishings, products, Hairdressing chairs, and even continuing education can be deducted as part of your business.
If you get a bookkeeper or accountant to help you (and we recommend it!), make sure it’s someone who understands the hairdressing industry. It makes a huge difference, because they know which deductions and solutions make sense for you.
Budgeting—Get a clear overview of your finances
Creating a budget can feel like a big task, but it doesn’t have to be advanced. A simple overview of your income and expenses can help you make better decisions. Start with these three questions:
- How much do I need to earn per month to cover my expenses?
- How many treatments do I need to do to reach that amount?
- How can I optimize my earnings—without having to work more hours?
When you see it in black and white, it becomes much easier to adjust prices, cut unnecessary costs, or even invest in a better solution that gives you more value in the long run.
Pricing—Set rates that give you a fair wage
One of the biggest mistakes many Hairdressers make is setting their prices too low. It might feel good to be cheap, but if you’re not earning enough to pay yourself a good wage, you’ll end up working far too much without seeing the benefit. When you set your prices, think about:
- Your costs—What does it cost to have a client in the chair? Consider everything from rent and products to ventilation and lighting.
- Your time—If a treatment takes an hour, you need to account not just for product costs, but also your time and expertise.
- Your desired wage—How much do you want to earn per month? Set your prices so you reach that goal.
Raising your prices can feel scary, but remember that your clients are paying for your expertise—not just a quick haircut. A good client understands the value of your work.
Investments—Think long term and avoid bad buys
When you buy furnishings, equipment, or products for your salon, it can be tempting to go for the cheapest option. But the cheapest purchases often end up costing more in the long run because they need to be replaced sooner or don’t work optimally. Always ask yourself:
- Will this product last for many years, or will it need to be replaced in a few months?
- Is it ergonomic so I can work comfortably without harming my body?
- Will it give my clients a better experience so they keep coming back?
The right investment pays for itself again and again—not just financially, but also in the form of less stress, a better work environment, and happier clients.
Use your finances as a tool, not a burden
Finances aren’t just about numbers—they’re about freedom. When you’re on top of your finances, you have the freedom to make the right decisions for you and your salon. You can invest in what makes your day-to-day better and build a healthy business where you make money without working yourself to the bone. If you ever feel like the finances are overwhelming, remember: you’re not alone. Many Hairdressers feel exactly the same, but with a bit of structure and the right tools, you can take control and create the salon and work life you dream of. You’ve mastered your craft—let us help you master the numbers too.
