Everyone tells you that location matters when you open a business. But nobody tells you how much it matters until you’ve already made the mistake.
I’m writing this from my coffee shop right now. It’s called The Press Day Coffee, and it’s doing well. But three years ago, I was running a different shop. That one failed completely.
I want to tell you what went wrong. Maybe it’ll save you from making the same expensive mistakes I made.
The “Free Rent” Mistake That Cost Me Everything
When I decided to open my first coffee shop in 2021, I was really worried about money. Starting a business is expensive, right? So I tried to save wherever I could.
My brother-in-law had some land he wasn’t using. He told me I could build my shop there and he wouldn’t charge me rent. Zero dollars per month.
I thought this was amazing. I actually felt like the luckiest person alive. Free rent meant lower costs, which meant I’d make a profit faster. It seemed so logical.
But here’s what I didn’t understand: When something is free, you stop asking the hard questions.
I never asked myself, “Is this actually a good location for customers?” I was too busy feeling grateful for the free rent. I convinced myself that free land was the same as smart business planning.
It wasn’t.
That “free” location ended up costing me my entire business. Because guess what? A shop with no customers loses money every single day, even when the rent is zero. You still have electricity bills. You still have to buy coffee beans and milk. You still have to pay yourself something to survive.
The real lesson: It’s better to pay rent in a busy location than to pay nothing in an empty one.
Why I Thought Big Roads Meant Big Business
The second reason I chose that location was that it was on a major road. I’m talking about a wide, busy highway. Every time I visited the land, I’d see dozens of trucks, buses, and cars driving past.
I did the math in my head. “If just 1% of these drivers stop for coffee, I’ll be successful.” It felt scientific. It felt smart.
The problem? The road was too good.
The traffic was moving at 60 or 80 kilometers per hour. These weren’t people looking for coffee. These were people trying to get somewhere else as fast as possible. The road was so wide and clear that nobody had any reason to slow down.
I was basically invisible. My little coffee shop sat there day after day while hundreds of vehicles zoomed past without even noticing I existed.
I learned something important: Fast traffic doesn’t help you. Slow traffic does.
Starting Over: How I Found the Right Location in 2023
After my first shop closed in early 2023, I took a few months off to figure out what went wrong. I needed to figure out what went wrong and what I’d do differently.
When I finally decided to try again, I changed everything about how I looked for a location.
This time, I wasn’t looking for “free” or “busy highway.” I was looking for something totally different.
I Spent Weeks Just Walking and Watching
I didn’t pick a location from behind a computer. I went out and walked through different neighborhoods for weeks.
I found a spot that caught my attention. It wasn’t flashy. It wasn’t on a highway. But something about it felt right, so I started watching it carefully.
My New Checklist for Choosing a Coffee Shop Location
Here’s exactly what I looked for. If you’re planning to open any kind of small business, maybe this will help you:
1. Slow-moving traffic near daily destinations
My new shop is right next to a USA International School entrance. Every morning and afternoon, parents drive slowly looking for parking. They’re already in “waiting mode.” Teachers walk by. Students hang out after class.
This is perfect for a coffee shop because people aren’t rushing. They have time to stop.
2. Places people visit regularly
Right across from my shop is a water purification station. People from the neighborhood come here almost every day to refill their drinking water. It’s not exciting, but it’s consistent.
That consistency matters more than you’d think. These people are already out of their cars with a routine. Adding a coffee stop to that routine is natural.
3. Very little direct competition
I walked around the entire area checking for other coffee shops. There was one old-style cafe about ten minutes away by motorbike, but nothing similar to what I wanted to offer.
In my first location, there was no competition either. But there were also no customers. Competition can actually be a good sign—it means people in that area buy coffee.
4. Foot traffic, not car traffic
This was my biggest change in thinking. I stopped counting cars. Instead, I sat near the location for several hours on different days and counted people walking.
How many people actually got out of their vehicles? How many walked past on foot? How many stopped to talk to each other?
Cars driving fast don’t matter. Feet on the ground do.
Why I’m Happy to Pay Rent Now
My current location isn’t free. I pay rent every month, and honestly, I’m glad I do.
This sounds weird, I know. But paying rent for the right location is actually much cheaper than paying nothing for the wrong one.
Let me show you what I mean with real numbers:
My first shop (2021):
- Rent: $0
- Daily sales: Maybe $10-15 on a good day
- Monthly profit: Negative (I was losing money)
My current shop (2023-now):
- Rent: I pay a real amount each month
- Daily sales: $100-200 depending on the day
- Monthly profit: Actually positive (I can pay my bills and save)
See the difference? The “free” location was slowly bankrupting me. The paid location is keeping me alive.
When you’re in the wrong location, every day you’re open is another day you’re losing money. The rent being zero doesn’t matter if you’re spending money on electricity, supplies, and your time while making no sales.
What I’d Tell Someone Starting Out Today
If you’re thinking about opening a coffee shop, or really any small business where customers need to physically visit you, please don’t make my mistakes.
Don’t choose a location just because:
- Your family owns it
- The rent is cheap or free.
- You see lots of cars driving past.
- It “feels” right without doing research.
Do choose a location because:
- You’ve watched real people actually stopping there.
- There are reasons people visit that area every day.
- The traffic moves slowly enough for people to notice you.
- You can afford the rent, and the location has real potential.
The best advice I can give you is this: Spend at least two weeks watching your potential location at different times of day. Sit there with a notebook. Count people. Watch their behavior. See if they’re rushing or relaxed.
I know it sounds boring, but those two weeks of research can save you from two years of struggle.
My Shop Today
The Press Day Coffee has been open for over a year now. Some days are still hard. Running a business is never easy.
But the difference from my first attempt is like night and day. I have regular customers now. The school principal stops by every morning. Parents grab coffee while waiting for their kids. Workers from nearby shops come during their breaks.
None of this happened by accident. It happened because I finally learned that location isn’t just important—it’s everything.
I paid for that lesson with my first failed business. Hopefully, by sharing this story, you won’t have to pay the same price.
If you’re planning to start your own coffee shop or small business, I’m rooting for you. Just please, please get the location right first. Everything else you can figure out along the way.
But if nobody walks past your door? Nothing else matters.
