On Aug. 21, owner Phyllis Jung will close the women's apparel store, but she plans to be in the shop boxing inventory through the end of the month.

Jung said business has been slow since the store opened in September 2003, never really getting off the ground.

"I've had some of this merchandise since last year," she noted.

In addition to poor sales, Jung also said her earnings suffered when the rent for the space was raised from $2,500 to $2,600 a month, with sales falling short of the monthly nut.

"You're always digging and digging," she said. "Good thing I didn't have to rely on income from the store."

Although Jung initially started the business with her sister, Della Zehner, she has been running On the Avenue alone since Zehner left in December. Unable to afford extra employees, Jung does all the work herself.

"There's so much to do," she said. "It's hard. I have to change the mannequins, dress the windows. It's too much."

Jung has worked in the retail industry for more than 50 years, but On the Avenue is the first business she has owned. After the store closes, the 75-year-old Almaden resident plans to retire.

Speculating about why her business hasn't been successful, Jung suggests that it comes down to the age-old business mantra: location, location, location. She is concerned that the space, located near the Garden Theatre, is not a prime spot for attracting customers.

"A lot of people tell me they don't even walk this far downtown," she said.

A neighboring store, Time 2 Celebrate, is also preparing to shut down. Owner Jerry Katz could not furnish a specific date but said the store, which opened in October 2003, would close sometime in late September.

According to Norma Ruiz, Willow Glen Business and Professional Association executive director, the location of a business is but one factor in a much larger equation. She said, "You also have to look at a combination of physical location and what the product is, or if what the business is offering is what the community wants. You also have to look at the demographics and see if they match up with what you are selling. The location might be ideal for something else."

Another key factor in the success of a business, she added, is the prior experience of the owner. "If a new business owner has no background, a lot of times owning a store is more work than they initially thought. Small-business owners have to do everything on their own, like advertising and figuring out a marketing plan."

Ruiz said that struggling new stores like On the Avenue and Time 2 Celebrate are not alone. Most businesses don't make a profit in their first year, she said, because it takes time to build a clientele. "The first year is always the toughest," she said.

If fledgling owners discover that managing a business is more than they bargained for, Ruiz said help is available. "I recommend they work with an entrepreneur center," she said. "It's an affordable service for small businesses. They can help owners develop business plans."

But, in the end, starting up a new business is always a gamble. Some make it; others don't. Ruiz said, "Businesses closing is always part of the cycle. I hate to see a business not succeed. It's like life—it starts and it ends. I hope the next businesses are more successful."