START WITH THE CUSTOMER – DON'T JUST LOOK FOR YOUR DREAM LOCATION AND FORGET ABOUT THE BUYERS.

(This article borrows its perspective from a post by my friend Viet Ba – and rewrites it in the way I usually share with those preparing to open a store, so that everyone can easily visualize and apply it in practice.)

A major mistake when looking for a storefront is focusing solely on finding a "prime location," a "cheap price," or one "near the market," without considering who you're selling to.

To clarify this, we need to go back to the basics: STP – Segmentation, Targeting, Positioning

(Segmentation – Targeting – Positioning)

It might sound like marketing theory, but in practice, when opening a store, this is the framework you need to follow:

  • Knowing where to open
  • Who are we serving?
  • And how can I make them remember me?
  1. Segmentation – Segmenting customers before classifying premises

The market is not a homogeneous entity.

If you're selling beef noodle soup, you need to know whether you're selling it to office workers, factory workers, people eating breakfast alone, or families eating together on weekends.

Each region has different customer flows, different needs, and different spending behaviors.

Here are some real-life examples I've encountered:

  • A pho restaurant owner opened a shop on a main road, next to a car showroom. The food was delicious, clean, and reasonably priced – but business was slow. Because customers driving cars don't stop to eat pho on the sidewalk.
  • Conversely, a student who opened a sandwich cart near the student dormitory gate – offering cheap prices and generous toppings – found it extremely popular because it met the right needs and targeted the right audience.

Therefore, before choosing a location, sit down and do the following exercise:

  • What is the income range of my clients?
  • How do they get around (motorcycles, cars, walking, etc.)?
  • What time of day do they usually shop?
  • What are their current consumer habits?
  1. Targeting – Choosing the right customer group to serve

It's impossible to serve everyone. A good location isn't necessarily the most crowded, but one that attracts the right people.

There are three types of goal selection:

  1. Indiscriminate sales – selling to everyone indiscriminately → this approach easily leads to failure because no one remembers you.
  2. Focus on a specific group – serving only office workers during lunchtime, young people taking food away, or mothers with babies early in the morning.
  3. Differentiation into multiple groups is necessary – but a flexible operating model is required (few people manage to do this systematically in the early stages).

One of my students – who opened a takeaway coffee cart – didn't set up shop in the middle of a busy intersection, but chose a small corner near an office with a shortcut for morning walks. He clearly stated: "I only need to serve 100 office workers a day, consistently."“

  1. Positioning – Positioning yourself so customers remember you for the right reason.

The physical location is just the "framework." It's the positioning that helps customers remember you and return.

  • How is selling bread different from the bread shop at the end of the alley?
  • How is your coffee shop different from Highlands or TocoToco next door?

The key is to clearly define: What am I selling – to whom – and why should they come to my shop instead of the one next door?.

This answer helps me choose the most suitable location for the property:

  • If the positioning is "a home-style canteen for office workers that's quick, convenient, and clean," then it needs to be near office buildings, have easy motorbike parking, and a clear view from the main road.
  • If the positioning is "a chill tea shop for Gen Z to check in," then priority should be given to locations with good space and lighting, easy to set up for Instagrammable decor, and in areas with a high density of students.

Applying STP to a point-opening strategy – a relatable example:

You open a lunch restaurant in Tan Binh.

  • Segmentation:

Divide the guests into:

  • Office workers prefer clean, fast service at a reasonable price.
  • Ride-hailing drivers prefer cheap, well-fed meals.
  • Factory workers eat lunch in shifts.
  • Targeting:

Choose to serve the office worker group (because of higher profit margins and easier repeatability of the business model).

  • Positioning:

“"Clean, home-cooked meals, just like mom's cooking – served quickly within 20 minutes during your lunch break."”

With that positioning in mind, you'll know where to find a suitable location, how to choose a layout, how to communicate through signage and fan pages, and how to attract the right customers.

Don't start with the question: "Is this place nice?" Instead, start with: "Does this location cater to the right customers?"“

STP is the foundation for making decisions about opening new retail outlets without ambiguity, without being influenced by emotions, and especially without being lulled into complacency by seemingly "good" numbers that are meaningless to customers.

Anyone who's planning to open a shop should print this out and stick it on their desk – every time they go to survey a location, remember to ask themselves:

Who am I serving – which group am I choosing – and what do I want them to remember me for?

CHOOSING RANDOMLY FOR "EVERYONE" MEANS CHOOSING NO ONE AT ALL!

Imagine you go on a site survey and say, "This place looks okay, the price is reasonable, the storefront is bright, and the traffic is decent..."“

As a result… you don't dare to make a decision.

But if you state clearly: “I’m looking for a location for a takeaway coffee shop, I need a corner location at a crossroads, easy parking, and high traffic during the morning commute,” you’ll immediately find several truly suitable locations. And you’ll make a decision faster and have fewer regrets.

A common mistake made by new business owners: Trying to find a location that is "multi-purpose," "high-potential," or "customizable.".

Result:

– It's unclear who the customers will be entering the restaurant.

It's unclear which time slots are the busiest.

– I don't know what the storefront needs to be for.

And worst of all: I don't know why they chose that place.

The truth is: Choosing a location = Choosing your customers.

You can't just pick a location at random and hope for luck; you have to choose a specific group of people you want to serve – and choose the right places where they are. And accept that you'll have to overlook the rest.

There can't be a "one-size-fits-all" environment.

Therefore, before conducting a survey, ask yourself these three things:

Who am I opening this to – and in what specific context?

→ Not for "coffee drinkers".

Instead, it should be: "For people commuting to work in the office area in the morning, who only stop for 3 minutes to buy something to take away."“

What is that customer doing – and what do they need?

→ Are they driving fast? Are they walking? Can they stop their vehicles easily or not?

Did they notice the shop? Was there enough reason to stop by?

How do I want customers to react when they see this space?

→ Curious? Easy to stop? Motivated to get in?

→ Do you often walk past something and not remember what happens 5 seconds later?

A simpler approach: Choose a location as if you were reopening your first store – with lessons learned from your previous failures.

Specific customer + Specific situation + Specific needs = The right location.

Choosing randomly for "everyone" means choosing for no one at all!

A LOCAL LOCATION DOESN'T NATURALLY ATTRACT CUSTOMERS TO YOU.

No matter how good the location is, if you choose the wrong business model and the target customer base doesn't match, you'll still lose money.

Many people blame the location whenever their store is empty. But in reality, the location only reflects whether you truly understand your business model.

Retail is no longer just about "opening a store and customers finding their way." Some people livestream online sales and ship to customers' door. Others install vending machines in schools and offices. Some open tiny eateries in alleyways and still attract a lot of customers. And some build entire chains of large corner cafes with bright signs and prime locations.

Each sales method requires a different layout formula, but how many people bother to sit down and ask for clarification?

– What am I selling?

– Why are customers seeking me out?

– Do they prefer to visit in person or simply trust the place?

– What role does location play in that experience?

Is this model easy to replicate?

Some people sell primarily online, with the physical store only serving as a showroom to build customer trust. Therefore, the location only needs to be easily accessible for deliveries, close to the warehouse, and have low overhead costs.

Some people open family-run pho restaurants, and the location has to be near residential areas so customers can walk in.

But if you're opening a chain of cafes or franchising, then corner locations, traffic volume, and sign recognition are what really matter.

One thing is clear: a good location only performs at its best when it "fits" with the sales model.

Many people don't know this: retail is divided into three types, each with its own specific layout formula.

Group 1: Non-store sales – livestreaming, Shopee, TikTok Shop, telesales, vending machines. You need good warehouse space, a smooth flow of goods, and don't need to be in an expensive location.

Group 2: Retail sales – cafes, clothing shops, showrooms, mini-supermarkets. This group has the highest rental costs. Location is the deciding factor in the success or failure of the store.

Group 3: Selling services – bank branches, insurance companies, SIM card sales points, clinics, spas. What you sell is not just a service, but trust. The location must be easy to find, easy to access, and have convenient parking. A grand storefront isn't necessary, but it must be trustworthy enough for customers to walk in.

On the same street: Highland Coffee is doing well. But if you open an insurance office there, nobody will feel comfortable visiting, and customers will be hesitant to come.

Conversely, selling online doesn't require a big storefront. A convenient warehouse and reasonable shipping fees are all that's needed, and customers will still buy consistently.

It sounds simple, but how many business owners have actually "made a mistake once and only learned their lesson"? Opening a store is a big deal. But opening with the wrong business model or choosing the wrong location is ten times bigger.

Therefore, before renting, negotiating, or counting cars, you should clearly answer these questions: What business model do you belong to? What kind of customers are waiting for you? Is this location suitable? A suitable location isn't necessarily the most beautiful, but the one that best fits your business model.

Each time you open a new location, ask yourself: have the customers changed? Has their behavior changed? Does the business model need adjustment? The market changes daily; if you don't understand your own model, no amount of space will save you.

Remember: to choose the right location, you must first understand the store's business model. Understand yourself first, then understand where you should be.

3 BILLION VND – 7 MONTHS…

Yesterday afternoon, I went to see a restaurant that a previous owner was selling. The moment I stepped inside, I was taken aback. The place was beautiful, the tables and chairs were neat, the bar, the beverage counter, and the equipment were all brand new. I glanced around and mentally estimated the investment must have been at least 3 billion VND. But this restaurant had only been operating for 7 months. 7 months, from the excitement of its grand opening to its quiet demise. Everything was still there, only lacking customers, the warmth of the atmosphere, and the time to fix the mistakes.

I saw myself from years ago in that restaurant. And I know it's not that the owner didn't try. It's just that they hit a roadblock that landlords only learn about after paying a very high price. Below are 10 lessons I've learned from closing my own businesses and from developing stores for companies.

1. Choose a location in a dead-end alley, where no one will find it.

Ten years ago, the first shop I opened was located in a dead-end alley. It was quiet, very chill, different from the noisy tea shops out there. I thought: it will definitely attract young people who like a slow pace of life. But the problem was: NO ONE KNOWS THE WAY IN. That time, I knew that the location might be beautiful in my eyes, but if customers couldn't see it, couldn't get in, it was meaningless. The location is for business, not for decorating for myself to admire. I closed that shop after 6 months. I lost money, trust, and almost lost three close friends because of what we did together.

2. Renting cheap premises carries significant risks.

I managed to rent a space at a super cheap price, only 6 million VND/month. The area was just enough to open a coffee kiosk near the office area. I thought, "This is a great deal!" – but when I started selling, I realized that the bank next door always had cars blocking the entrance, and the smell of sewage wafted into the shop. Customers weren't interested in coming in.

Cheap premises aren't necessarily because people are stupid, but because they know something we don't. Low costs don't always guarantee profit, and expensive properties in the wrong place can lead to even greater losses.

3. Lack of a clear contract, resulting in sudden rent increases.

Trusting the verbal promise: "Don't worry, I won't raise the price." After 6 months, the shop became busier, and the landlord demanded a rent increase. When I opened the contract, I found the terms were lax. The landlord forced me to leave when the shop had only just started to attract regular customers. I understood: Words speak of friendship, but on paper, it's a matter of survival.

4. Choosing a good location but with no potential customers.

There's a cafe I really love. It has a beautiful view, a youthful style, and is located by the canal. The interior is charming, and every corner is perfect for taking photos. However, customers only visit once because parking is inconvenient. The area doesn't have many office workers or a steady stream of people. I've realized: Don't build a cafe just for "what I like," but make customers want to come back.

5. Failure to design a suitable operating area for employees.

I went to a restaurant where all the space was used for customers, and the staff? They had to fend for themselves. There was no storage, the washing area was small and always dusty. The staff had to carry supplies outside, and every time they ran out, they had to run around. The people behind the counter were always stressed. They quit, and I was surprised, but looking back, wasn't it their fault? For the restaurant to run well, it first had to provide enough for the people inside.

6. The sign is placed in the wrong location; nobody sees it.

You might spend days, even months, designing, choosing colors, fonts, and materials, only for the sign to be too tall, too small, or obscured by trees. The sign is the first impression. No matter how well you do it, it's useless if no one knows about it.

7. Insufficient surveying before making a deposit.

I once saw a property that seemed like a good deal. The owner said, "Many people have already looked at it, you need to decide quickly or someone else will sign it." I hastily put down a deposit. I didn't drive during peak hours, didn't check traffic flow, and didn't verify the legal status. Only after a closer look did I realize that parking was prohibited on this road, the residential area behind it was sparse, and so I ended up abandoning the deposit.

8. Expanding the chain too quickly without sufficient operational capacity.

I opened four locations in three months. Everyone praised me: I improved quickly and professionally.

But internally, things were getting worse; the staff weren't used to the work, supplies were in disarray, and several shops had consecutive problems. I sat there, looking at the list of shops and wondering, "Which one am I actually doing well at?" Opening a shop is easy. Building a long-lasting business is the hard part.

9. Choosing the wrong operator leads to site failure.

I once entrusted a prime location to someone I trusted. Everything seemed to be going according to plan: a clear contract, reasonable costs, and an attractive storefront. But after three months, revenue plummeted. I went to check: staff were constantly changing, there were no established procedures, and customers were being turned away because they were "out of something.".

I realized: The owner chooses the location, but the person who keeps it alive is the one who runs it daily. Not everyone loves the shop as much as I do. So, if there's no training, no support, and no passion instilled – the shop will die silently.

10. Refusing to observe, only following impulse.

After 10 years, what allowed me to survive wasn't luck, nor was it necessarily skill. It was knowing how to sit down, observe, record, and learn from each mistake. I made wrong choices, made wrong decisions, trusted the wrong people, and rushed into things. But each time I stumbled, I tried to figure out why. Developing a business doesn't require exceptional talent. It just requires patience and a slightly more observant eye than others.

If you're starting from scratch, don't force yourself to know everything immediately. But there's one thing you absolutely must cultivate every day: THE ABILITY TO OBSERVE AND LEARN FROM REALITY. As long as you don't give up, are willing to travel more, ask more questions, and make mistakes – each subsequent level will be better than the previous one. And finally, I just want to say: This level isn't for dreamers. It's for those who are level-headed, sincere, and constantly learning.

I wish you strength, determination, and perseverance on your business journey.