DENVER — Businesses often begin with a vision, but the harsh realities of proprietorship are often an afterthought. Colorado small business owners are becoming more familiar with the challenges, as of late.
Stephanie O'Rourke considers herself a perfect case study of the difficulties faced by those trying to recover from pandemic-induced hardships.
"I know that we're all fighting, all of us small businesses," she said.
O'Rourke started her business, Little Piece Of My Heart, in 2017. At one point, she had five storefronts across the state. Now, she only has two — one in Denver, the other in Fort Collins.
For her, the business was a manifestation of her love affair with bright colors and the seventies.
"I was really, my whole life, a big thrifter and really inspired by vintage and just by the whole 60s and 70s — psychedelic era, hippies, free spirits," O'Rourke said with a chuckle.
Each of O'Rourke's stores feature new and vintage merchandise. The variety of bright colors and patterns that adorn the store's walls can also be found in the array of merchandise.
"I've put my literal blood, sweat and tears into the each of these locations," the business owner said.
The pandemic brought forth the initial shift in her business' success.
"First, there's the distancing. And then, obviously, we were shut down entirely for, I guess it was a month or two, which was a huge setback," O'Rourke said. "I think a lot of people were scared to come out for awhile. We had to kind of figure out how to restructure and try to do things online."
The last months of 2021 and the first few months of 2022 brought new customers through her shops' doors, but it was short lived.
"People had their stimulus checks, and they were ready to get out and have some fun," O'Rourke said. "So things were good then, but this year, we're actually down 40% in sales."
Trimming costs and "difficult" layoffs still weren't enough to keep all of her remaining stores up and running. This fall, O'Rourke shuttered her locations in Golden and Boulder.
"We can’t afford the overhead at all," she said as her eyes glistened with tears.
Unfortunately, O'Rourke's heartbreak isn't unique.
According to businessfillings with the Colorado Secretary of State, nearly 12,000 businesses closed during the second quarter of 2022, meaning closures increased 27% year over year. A record number of business closed at the start of year, according todata from the year's first quarter. Third quarter data on the state's business fillings is expected to be released next week.
Experts at University of Colorado's Leeds School of Business are tasked with crunching the numbers and predicting the trend of closures through the year's end.
"Our view is that this continues through the end of this year and into 2023," said Richard Wobbekind.
More closures are anticipated because, in simple terms, consumers and business owners can no longer afford them, Wobbekind explained.
"With this high inflation rate, consumers have to make tough decisions on what they're purchasing and not purchasing necessarily," he said. "We've seen a lot of businesses having to pay more for not only labor, but also for the things that they're actually selling, be it food or clothing."
There is some good news for business owners — Wobbekind said the labor shortage is slowing, and bargaining on leased spaces should be easier.
O'Rourke is focusing on growing her online sales and is fundraising to restructure and stabilize her business. She has created a GoFundMe fundraiser to help.
"At the end of the day, there will be some light at the end of the tunnel," she said. "I really do believe that."
