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Small towns can have big business. Small towns present the unique opportunity of a concentrated market as well as the challenge of a limited population. Finding small town business ideas is all about meeting a current need with a great product or service.
Small Business Ideas In Small Town
To start a business in a small town, you need to do basic research on the local market as well as the exact geography of the physical location. In a small town, you are more dependent on a smaller group for business, so choosing the right location to optimize store traffic is critical. Even if your business plan is based on a service, it’s a good idea to have a clear idea of how big the market is.
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Once you understand the consumer market in your town, you can base your ideas on different small town business ideas and ultimately decide which one will work best. After learning about the resources available and other businesses in your area, you can talk to other business owners to assess the costs and requirements of starting a small town business. For inspiration, we’ve compiled a list of 35 small town business ideas that every community needs. You can use this list as a starting point for research or to find the right business idea for your small town.
Starting a small town business requires careful research and understanding of your community. Once you get an idea of the existing businesses in your area and the local demand (more on that below), you’re ready to decide which business is the best fit for you and your community.
Try to find a profitable small business, industry or service that meets the needs of the community and your personal interests. Here are some small town business ideas to consider:
Diner, fine dining or something in between, the successful small town restaurant is all about giving people what they want but don’t have yet. When opening a restaurant, it can be tempting to copy a popular spot in town, but consider satisfying a need or want that locals can’t find nearby and an attraction worth traveling from the next town over.
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For example, a farm-to-table restaurant is a great business idea for a small town, but if you’re not in an area rich in agriculture or your town already has one, consider an alternative. Think about what your family will expect when you leave town. Maybe it’s fine dining or a slice of New York-style pizza, but there might be a market for a new restaurant. You need to understand what people want and eat.
Make up for slow business traffic by serving drinks people want all day long. If coffee shops aren’t a “thing” in your town, serving coffee in a place where people go all day – as if there is – can slowly normalize the activity and encourage cross-business. A bar in your small town may be your dream business, but the coffee shop starts bringing in money when the sun comes up; If you create an environment that works both day and night, you don’t have to compromise.
Depending on county laws and state taxes, opening a liquor store can be one of the most profitable business ideas in a small town. Especially where grocery stores are not allowed to sell alcohol, liquor stores control the liquor market in small towns. Read up on how to start a liquor store, as it can be difficult to secure the necessary documentation (such as a liquor license).
A good craftsman is always wanted, even in small towns. If you’re getting frequent calls from friends, family, and neighbors about a burst pipe or squeaky flooring, you may be on your way to starting a small town business.
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It’s easier to get started as a contractor if you already have an odd job and know who will hire you. If people in the area aren’t familiar with your work, try contacting a general contractor who wants to bid on a small project and hopefully get your name out there among potential clients. In word-of-mouth businesses like service, repair and construction, people you already know and know your work are your strongest salespeople.
If you live in a rural area or small town, having a car is essential, but being far from a dealership can make daily service difficult. Auto repair services fill an obvious need in small towns and make life more convenient for local residents, so you might want to consider opening a shop in your town.
Likewise, cars break down everywhere and most tow trucks charge per kilometer. So if your town is a significant distance between major cities, you may be able to start towing vehicles even if you don’t have a proper garage.
Some people don’t like cleaning and some of them may live in your town. Why not start a cleaning business for them? This is another service that benefits from a word-of-mouth referral system and can even be combined with other services like babysitting or yard work. Professional cleaning is a valuable skill, but it doesn’t require you to spend tons of money on courses or certifications, so if you’re looking for a cheap side job, this is a great option.
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This service will need a bit more advertising to get the word out as it is less visible than a window business and less sustainable than a service like house cleaning. But unless you’re planning a major overhaul, it doesn’t require equipment, so you’ll keep overheads low, too.
Opening a pet store in your town is one of the best small town business ideas if you don’t have a local supply store or a big chain like PetSmart or PetCo. Depending on the pet population in your area, there may be a demand for pet sitting and boarding services.
If you’re looking to open a pet store or pet service business in a small town, ask local pet owners where they currently get food and grooming. A pet store owner in your town can be a good resource if you want to offer grooming, walking or boarding services.
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There is probably at least one barber shop or salon in your town, but if you want to start a successful hair salon, this can help. If one demographic isn’t enough – a barber shop which caters mainly for men – find out whose hair needs are not currently being addressed on the high street.
If your city has full-service barbers and hair salons, you may want to consider a more hair-care business, such as a hair bar or salon that offers makeup, lashes, and color in addition to hair services.
They may not be the flashiest of businesses, but gas stations are essential to communities where most people rely on cars and trucks. Small towns located on or near major highways can have significant traffic and, unlike many businesses, a gas station can benefit from being far between towns. The lottery and selling cigarettes can also bring in significant income, especially if you are the only seller in the area.
If a town that could provide a grocery store doesn’t have one, there’s probably a good reason: most people commute every day and use other stores, or the population isn’t large enough to support a large chain store.
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If you want to go the independent route (ie not open a franchise store), try to find a way to specialize your store so you don’t overspend on a large inventory. Use local products, trends and tastes to inform this decision.
In agricultural areas, farmer’s market-style shops offering local produce and seasonal goods are usually popular with locals and tourists. A town with a large grocery store but few options for organic, local, gluten-free, or vegan options is a perfect candidate for a specialty grocery store.
A drugstore or pharmacy requires more work—from hiring a pharmacist to buying insurance to establishing security measures—but if your town doesn’t have a local pharmacy service, this could be a great opportunity to start a long-term business in your community. .
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