‘Alarming’: 34yo Aussie reveals the cost of starting a business

A young business owner has taken to TikTok to make a huge admission about her new company, in a move that she says some may find “quite alarming”.

It has become increasingly common for people to openly discuss money, salaries, mortgages, and expenses. Now, one business owner has taken it further and shared how much debt she’s in.

Kayla Houlihan, 34, has been running a business since her early twenties, first with her skincare line Tribe Skincare, and now with her paint and sip business Canvas and Cork in Torquay Victoria.

On social media, she’s shared the amount of debt she is in with her new business, which she started with the proceeds from the sale of her Tribe Skincare business in September 2024.

The 34-year-old’s two-month-old business, even with an initial $100,000 investment, is $60,000 in debt.

Ms Houlihan sold her skincare business because she saw an opportunity to give herself some solid maternity leave.

“I was pregnant at the time when [the buyers] showed interest in the business, and I wanted to have some proper maternity leave, which is a bit impossible as a business owner,” she told news.com.au.

Kayla Houlihan, 34, has been running a business since her early twenties, Picture: TikTok/CanvasandCork

She's been praised for her transparency. Picture: TikTok/CanvasandCork

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By then, Ms Houlihan had been running the business for seven years and was overdue for a break. Before that, she’d been an art teacher.

This is how the idea of a paint-and-sip studio formed in her head. She knew she wanted to do something community-minded and creative, and art and alcohol bring people together.

“I wanted a business that had a physical presence and gets people out of the house,” she explained.

The business has only been open for a few months but shows all the positive signs of growing and thriving. Canvas and Cork is pretty much fully booked out until next year.

That doesn’t mean it has been instantly profitable.

“I’m $60,000 in negative, but that includes paying myself a $23,000 wage because I’m working on the business,” she said.

“I think it is normal. It might seem quite alarming to be in $60,000 debt, but I see it as a normal place for the business to be in.”

She explained that is ‘normal’ to be in debt when starting out. Picture: TikTok/CanvasandCork

She's loving being creative and creating a community. Picture: TikTok/CanvasandCork

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When she shared how much debt her business was in online, people responded really positively, praising her for being transparent.

“Love that! I hope mine is better than expected next time I check,” one shared.

“I love this transparency. It’s so scary seeing all that money come out but you just have to trust that it’ll work out,” someone else said.

“Love this transparency,” another noted.

One asked, “Why were you paying a wage if there was no income, and it was putting the business into debt?”

“I pay myself a wage because it gives me a more realistic idea of where the business is and I pay staff because I can’t run the business without them! It all just comes out of my start-up capital investment,” Ms Houlihan replied.

“It’s going to be so satisfying when I at least break-even one day.”

Her studio is almost booked out. Picture: TikTok/CanvasandCork

She believes it is ‘important’ to be honest about business costs. Picture: TikTok/CanvasandCork

Ms Houlihan said she’s transparent about money, not just because she understands everyone loves having a “perv” on someone else’s finances, but also because she wants to give a realistic glimpse into what it is like to run a business.

“It is definitely important to be transparent if anyone is thinking about starting up a business because not all businesses are making a huge amount of money,” she said.

“Some people could be operating for two years and still not turning a profit. It is really common for small businesses to struggle.”

The administration side of running a business isn’t what she loves doing.

“I love the business because I love being creative, and I get to create painting concepts and different art activities, and I love the creative side,” she said.

“I’m so interested in the analytics and the business side.”

The 34-year-old said she’s gotten better at it, though, purely because of experience and wanting her business to grow.

“I’m hoping that the mistakes I’ve made in the past will help me run my business,” she said.

Ms Houlihan said that now that she’s become a mum, her business has also become a “rest”. She tends to work when her child is napping or at night, and it keeps her brain stimulated.

“Business is a form of rest and I really enjoy sitting down with my computer and doing all the different tasks,” she said.

“It is really about the mental stimulation, and with the business, I’ve got public coming in, and I’ve got a sense of community, and I get a real buzz from that.”