‘Broke’: 25yo Australian business owner reveals vicious cycle

A young business owner has exposed the vicious cycle she’s trapped in and why it is leaving her “broke” and “anxious”.

A young Aussie business owner has revealed the vicious cycle stopping her from making money.

Shaina Munro lives in NSW’s Byron Bay and runs the sustainable clothing label, Arlo and Olive.

The brand is very on trend. It’s inspired by the 1970s and has the kind of prints you see all the cool girls wear on TikTok.

Still, she’s noticed a significant drop in sales since the cost-of-living crisis took over Australia.

“I keep wondering why sales are so low on my business right now, but then I remember I too am not buying anything,” she said.

Ms Munro said that she’s “broke” and not shopping herself, so she understands why her customers aren’t buying right now.

“I am broke because you guys aren’t buying anything. You guys are broke because the economy is f**ked,” she said.

“What am I meant to do?”

Shaina Munro revealed why she's anxious right now. Picture: TikTok/arloandolive

She runs a clothing business. Picture: TikTok/arloandolive

Ms Munro isn’t alone in her struggle. Plenty of business owners shared that they were going through the exact same thing.

“It is completely true, just one vicious cycle,” one replied, with Ms Munro responding that the reality “makes me sick”.

Another commented and said their business was going “backwards” because bills came in, so she had to sell her stock “cheaper” than what she bought it for. Someone else said their business was currently experiencing “crickets”, and they were also struggling.

Meanwhile, consumers commented to share that, while they wanted to shop up a storm, they couldn’t afford to.

“All my carts are full! I can’t check them out,” one wrote.

“Babes we got no money! You are right,” another admitted.

“We are spending our entire incomes on food and shelter,” someone else shared.

Ms Munro told news.com.au that the cost-of-living crisis has really strained her business and there is no end in sight.

“Clothing is one of the first things people cut back on,” she said.

She still works full-time to support herself and her business. Picture: Instagram/shainamunro

The business owner has cut down on her own spending. Picture: Instagram/shainamunro

It doesn’t help that her clothing is sustainably made, which means it comes at a high price point. Full-price dresses, as well as pants and skirts, are typically over $100.

“Arlo and Olive uses ethically produced, eco-friendly materials and practices, which come with a higher price tag that people can’t justify right now. It’s sad to see people having to sacrifice their morals to put food on the table,” she said.

The business owner said it is frustrating to see that her business has more brand recognition, but sales have “massively declined”.

“The average order value has significantly decreased, as well as the quantity of items per order. Where customers might have previously bought 2-3 items per drop, they are now buying 1-2,” she said.

This has meant that she’s had to keep her full-time job in e-commerce because she can’t afford to run her own business.

“I feel fortunate that I don’t rely on the business for my full-time income yet. If I did, I don’t know what I would do,” Ms Munro said.

“Initially, I thought that by the three-year mark, I would be running the brand full-time, but at this rate, it looks like it will take over four years of working full-time alongside the business.”

She's anxious about the future of her business. Picture: Instagram/shainamunro

She thought she would be able to fully focus on her business by now. Picture: Instagram/shainamunro

Right now she’s stuck in an endless cycle of waking up every day and feeling “anxious” about the future of her business.

“It definitely makes me anxious, waking up every day not knowing if the business will survive. Especially considering that things are not predicted to improve for e-commerce businesses in the next 12 months,” she said.

The only comfort is that she’s not relying on her business as her sole income, otherwise, she would be in “serious trouble”.

Still, she doesn’t begrudge her customers for not spending at all or less, because she’s doing the same thing.

“I have significantly limited my spending on non-essential items. It’s challenging because I love supporting small businesses and I know they’re feeling the pinch too. Like everyone else, I just don’t have the cash flow,” she said.

Right now, Ms Munro can only be grateful for what she has.

“I’m grateful that I can afford my rent, food, and bills, unlike many others right now, but there’s not much left to support the other businesses around me,” she said

Originally published as ‘Broke’: 25yo Australian business owner reveals vicious cycle