Took a leap of faith and started a small online clothing boutique in 2020. Six month’s later, opened a physical location. Worked hard to keep cost low, cash flow all expenses, did not take on any debt, and the business did better than we anticipated. Beat our initial year sales goal by about $20,000. Quickly grew a good customer base with lots of returning customers.

In 2021, business grew, hired more employees, carried more inventory. In 2022, business kept growing, and we grew with it. More staff, inventory, and profit. For this year, we were a bit slower, not bad. For 2023, up through the first two quarters, we were only running about 3% behind the same period in 2022.

Started noticing a trend of a growing customer base from a “Town B” about an hour away from my physical location in Town A. Comments such as “I wish there was a store like closer to my house” kept being repeated from people who lived around Town B. We occasionally visited this town, and noticed there wasn’t quite anything like my store in the area. Town B seems to be booming. Neighborhoods and subdivisions being built left and right. Town B has a higher cost of living, more upscale restaurants, and is rapidly growing in population. Average household income around this new location was much higher than our hometown.

Made the decision to start investigating opening a second store in this area. Floated the idea to lots of people, and everyone we talked thought it would be a great idea. By all the research and networking I tried to do, I honestly felt like store #2 would quickly generate more revenue than store #1.

We made a plan, and if sales continued like they had the last two years, would be able to cash flow the expense of opening the second location. A spot opened up just in the area we were looking for, but had a little more risk than was ideal for us. Rent was higher (as expected), but the most uncomfortable part was a 5 year lease with a personal payment guarantee. We tried to negotiate that, but the landlord was unwilling. We discussed this, but eventually decided to sign the lease in the third quarter of this year and proceed with opening. Used some business savings to purchase new inventory, signage, buildouts, etc.

Then…it was like someone kinked the revenue hose. Suddenly it seems, total orders started dropping off, average order value has fallen about 30-40%, less people are walking in the door. Even my best repeat customers are starting to cut way back. Overall, total sales are down 16% YTD from last year in Town A. Town B store has only been opened for a few weeks, but today, we didn’t have a single person walk in the new store and make a purchase. Total sales were $0!

I’m starting to go into panic mode. Last year, November and December were the months we killed it. 90% of our net profit came between Thanksgiving and Christmas. However, Black Friday thru Cyber Monday this year were mediocre at best.

Had we not just made this huge new investment, I feel like we were prepared to weather a bit of an economic downturn. However, because of this, I will have no choice but to borrow some money to settle the bills coming due for the expense of store #2.

I do believe that this slowdown is a result of the economy and not something I have changed to cause this. Talking to other businesses around me, most say they are also seeing slowing sales. The stress I am feeling though is real. My body is telling me to jump ship. Do I close my stores and go back to working for someone else? Do I did my feet in and try to hold out? How far do I let this go before I will know?