Ep 20 | Hair Stylists Can Earn $250,000 a Year (Here's How I Did It)

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Are you a hairstylist wondering if it's possible to earn a six-figure income?

I've done it myself, and I want to share my journey with you. In this article, I'll break down exactly how I made $250,000 a year as a hairstylist, working just 32 hours per week. Whether you're considering going independent or you're already there but want to boost your income, these insights will help you map out your path to financial success in the beauty industry.

The Power of Going Independent

When I transitioned from being a commissioned stylist to an independent contractor, my income potential skyrocketed.

As an independent stylist, I had more control over my pricing, schedule, and business decisions. This freedom allowed me to implement strategies that dramatically increased my earnings.

Key Takeaway: Consider the benefits of becoming an independent stylist to maximize your earning potential.

Breaking Down the Numbers

Let's get into the nitty-gritty of how I reached that $250,000 mark. Here's a breakdown of my typical work week:

• Hours worked: 32 (8 hours per day, 4 days a week)

• Average hourly rate: $200

• Daily earnings: $1,600

• Weekly earnings: $6,400

Quick Math:

• Monthly earnings (before expenses): $25,600

• Yearly earnings (before expenses): $332,800

Managing Expenses and Taxes

Of course, being an independent stylist means handling your own expenses and taxes. Here's how I managed mine:

• Rent: $325 per week

• Color supplies: $250 per week

• Taxes: 20% of gross income set aside weekly

After subtracting these expenses and setting aside money for taxes, my take-home pay was approximately $236,340 per year or $4,545 per week.

Pro Tip: Always set aside money for taxes first. It's not an emergency fund - it's a non-negotiable expense.

Strategies for Maximizing Your Hourly Rate

Reaching a $200 hourly rate didn't happen overnight. Here are some strategies I used to increase my earnings:

1. Double booking: I always had at least two clients at a time.

2. Working with an assistant: This allowed me to be more efficient.

3. Offering add-on services: Upgrades like keratin treatments or scalp massages boosted my hourly rate.

4. Raising prices strategically: As my skills and demand grew, so did my prices.

Action Steps to Boost Your Income:

• Analyze your current hourly rate

• Identify opportunities to add value (and charge more) for your services

• Consider hiring an assistant to increase efficiency

• Review and adjust your prices regularly

The Impact of an Assistant

Working with a full-time assistant was a game-changer for me. While it did impact my bottom line (I paid my assistant $30,000 a year), the benefits far outweighed the costs:

• Increased efficiency allowed me to see more clients

• Improved client experience led to better retention and referrals

• Reduced stress and improved job satisfaction

Remember: Sometimes spending money can help you make more money in the long run.

Setting Realistic Goals

It's important to note that my earnings reflect years of experience and a strong client base.

If you're just starting out, your numbers might look different. But don't be discouraged! Even at half my hourly rate ($100/hour), you could potentially earn $120,000 a year after expenses and taxes.

Goal-Setting Tip: Start by aiming to increase your hourly rate by $5. Small, consistent improvements can lead to significant gains over time.

The Beauty Industry's Unique Advantage

One of the most incredible aspects of our industry is the ability to give yourself a substantial raise simply by making a few changes.

Unlike many corporate jobs where a $1/hour raise is considered significant, hairstylists can potentially increase their hourly rate by $50 or more through strategic changes in their business model.

Industry Insight: Few other professions offer the same potential for rapid income growth through individual effort and smart business decisions.

Conclusion: Your Path to Financial Success

As a hairstylist, you have the power to shape your financial future.

By going independent, managing your finances wisely, and continuously improving your skills and business strategies, you can achieve earnings that many might think impossible in our industry.

Remember these key points:

1. Calculate your current hourly and yearly earnings

2. Set clear, incremental goals for increasing your income

3. Consider transitioning to an independent stylist model

4. Invest in strategies that boost your efficiency and value

5. Always set aside money for taxes and expenses

Your journey to earning $250,000 a year as a hairstylist starts with believing it's possible and taking actionable steps towards that goal.

I've shared my path - now it's time for you to create yours. Here's to your success in the beautiful world of hair styling!