The journey of a 27-year-old Californian who launched a hair-care brand in her kitchen with $400 and achieved $180,000 in sales last year is truly exhilarating.

The Millennial Money series by CNBC Make It showcases how individuals worldwide manage their finances, including their income, expenditures, and savings.

Sarah Cloes' small business, Flora Flora Co., has been a success by any measure. The 27-year-old founded the brand, which specializes in sustainably packaged shampoo and conditioner bars, in 2021 without taking on debt or outside investment. Thanks to popularity on social media, the operation grew from a one-woman show in her kitchen to a company with two full-time employees and a warehouse in San Marcos, California.

For the first three years, Cloes and her husband Bret lived frugally while investing company profits back into the business. During this time, revenues increased from approximately $40,000 in 2021 to $102,000 in 2022 and reached roughly $215,000 in 2023.

In 2024, Flora Flora's revenue dropped to $180,000, and the brand's buzz on social media faded. Despite Cloes keeping her salary modest at $29,500, the company didn't turn a net profit due to a large tax bill and a deposit on a new warehouse.

Cloes is confident that she will have Bret's support as they work together on Flora Flora part-time, and they both believe that growth in her business could lead to long-term financial freedom for them as a couple.

The effectiveness and appeal of her products, which she claims provide salon-quality hair care without the environmental cost of mass-produced plastic bottles.

She wouldn't trade any of this for a regular 9-to-5.

"The lows are low, but the highs are exhilarating and addicting, which is why I couldn't let go. The organic feedback from customers about how my hair-care products have changed their lives is everything, something I didn't anticipate when I started making them."

Launching a new business: 'Dove in head-first' and 'got obsessed'

Initially, Cloes had no intention of revolutionizing the world or launching a successful business. However, she became aware of the excessive plastic packaging used for her hair products and was unimpressed by the available alternatives. As a result, she decided to create a better option.

Cloes was passionate about working with her hands and by 2014, as a freshman at the University of Hawaii, she was actively creating, including painting and developing her own health and beauty products such as deodorant and mascara.

Cloes started with experimenting on her kitchen stove and later sought the guidance of a cosmetic chemist, who taught her about hair-care formulations. She became fascinated with learning about hair science and became obsessed with it.

The outcome of her research: solid shampoo and conditioner bars, eliminating the need for plastic containers.

Cloes had tested her products on friends and given them to hairdressers, receiving positive feedback. By 2021, she was ready to launch them in the market.

With the extra time and money she had after a Covid-era layoff, she started a business at her local farmers market for just $400.

"I began with a small amount of ingredients and purchased molds and paper for labeling. As time went on, I invested in a website, but I continued to focus on growing my business through selling at the farmers market."

In 2022, Flora Flora started selling products online and Cloes launched a TikTok account to document her journey running the brand, which helped boost sales that year.

"Our TikTok and Instagram grew quickly, especially TikTok, which was a huge driver of sales in the beginning and catapulted us in a way. That was my primary marketing method."

Flora Flora was able to move into the company's first commercial space due to the influx of sales and $12,500 in small business grants from California.

She lived frugally by paying herself only the minimum amount and avoiding purchasing new items.

During the initial phase, Cloes' personal finances were limited. She and Bret resided in a shared apartment in Encinitas, California, and divided all expenses equally. Cloes only paid herself the minimum amount required in those days. Bret, who had earned a master's degree in psychology and was working as an associate, earned only slightly more, making $30,000 annually.

During the initial stages of their financial partnership, Cloes and her partner were largely restricted by the Covid pandemic. As a result, they had limited opportunities to engage in leisure activities outside of their homes. Despite this, they both shared similar spending habits, which included avoiding the purchase of new items and refraining from eating out or taking trips.

Until 2024, the couple's combined income remained relatively stable. However, in August, they got married and Bret, who became a practicing therapist, experienced a significant increase in his business. He earned approximately $95,000 for the year, bringing their combined income to about $125,000.

Cloes experienced relief both personally and professionally because Bret was able to cover more of their expenses.

"She says that she feels relieved because they've been under a lot of stress for a long time, but now they can finally breathe a little easier and enjoy some of the little things in life, like going out with friends or buying a new outfit."

Here's how they spent their money in October 2024.

• Rent, HOA fees, power, Wi-Fi, and phone bills amount to $2,422 for housing and utilities.
• Groceries and dining out: $783
• The cat needs a trip to the veterinary hospital and the car requires $751 in parts.
• Regular expenses such as household items, clothing, pet, and entertainment costs amount to $548.
• Health and auto insurance: $547
• Transportation: $341 on gas, tolls, rideshares and parking
• Dental: $333 on out-of-pocket costs at the dentist
• The monthly fees for subscriptions and memberships to ClassPass, Surfline, Spotify, and Netflix amount to $168.

Cloes and her husband continue to split their major expenses, including rent, HOA fees, and utilities. Cloes takes care of her own health and auto insurance, as they own three vehicles that are fully paid off. Additionally, she covers her ClassPass membership and other household expenses.

Bret's salary covers the majority of the household budget, including the bulk of the grocery bills and any unexpected charges that come up, such as a trip to the animal hospital for their cat. However, he picked up a bill for the dentist in October out-of-pocket since the pair, both self-employed, currently live without vision or dental insurance.

Flora and Bret manage their finances together, with Bret providing short-term income to support their lifestyle while they invest all their resources into the growth of Flora Flora.

Cloes explains that the more money we invest in the business, the less I have to withdraw to pay myself, which is beneficial for the business in the long run.

Looking ahead: 'I know I'll always be creating'

The couple and Flora Flora have been able to accumulate $30,000 in savings due to their frugal habits and the long-term success of their small business.

Though they are exploring other ways for the company to grow, they are willing to invest all of that into the business if necessary.

Bret has been responsible for expanding Flora Flora's sales reach by reaching out to retailers in his part-time role.

Cloes, who runs the day-to-day operations of the company, is working 10-hour days to expand the appeal of her products. She believes that investing in marketing is the next step for the company, which has never spent money on advertising. "I think that a big next step for us is actually investing into marketing a bit more to see if we can get more exposure and just get in front of more people," she says.

She also contemplates purchasing additional machinery to increase production of her in-house made product.

If the couple cannot obtain the necessary funds from their savings, they may need to seek outside investment for the first time, possibly from friends and family. "We're trying to keep it as personal as possible," Cloes says.

Cloes believes that the key to success for the business is to establish itself as a leading company in the personal care industry, with a focus on eco-friendly hair care products.

Their personal goals are typical: travel, owning a home, and having children. While Flora Flora may not become the renowned brand Cloes envisions, it won't deter her from continuing to innovate and create new products.

She expresses her desire to always be involved in the creation process and to contribute to the development of more startups, as well as to bring new brand ideas to life.

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