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Big business can happen in small towns. Small towns offer the unique opportunity of a concentrated market, but also the challenge of a limited population. Finding business ideas for small towns that will stick around is all about meeting current demand with a great product or service.
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If you want to start a business in a small town, you will need to do background research on the local market, as well as the specific geography of the physical location. In a small town, you are much more dependent on a small group to do business, so choosing the right location is crucial to optimizing store traffic. Even if your business plan is service-based, it’s still a good idea to have a solid idea of how big your market is.
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Once you have an idea of the consumer market in your town, you can lay the groundwork for different small town business ideas and ultimately decide on the one that you think will work best. Once you learn more about available resources and other businesses in your area, you can talk to other business owners and assess the costs and requirements of starting a business in a small town. For inspiration, we’ve compiled this list of 35 small town business ideas that every community needs. You can use this list as a starting point for your research, or perhaps find just the right business idea for your small town.
Starting a business in a small town requires careful research and understanding of your community. Once you have a feel for existing businesses in your area and local demand (more on that below), you’re ready to decide which business is right for you—and the community.
Try to find an industry or service where profitable small businesses, community needs, and your own interests intersect. Here are some small town ideas to consider:
A restaurant, a great restaurant or somewhere in between, a successful small town restaurant is all about giving people what they want but don’t have yet. When you’re setting up a restaurant, it might be tempting to copy a popular spot in town, but consider catering to a need—or want—that locals can’t find nearby and an attraction worth visiting from the next town over.
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For example, a farm-to-table restaurant is a great business idea for small towns, but if you’re not in an agriculturally rich area or if one already exists in your town, consider an alternative. Think about what your family looks forward to when they leave town. Maybe it’s a fine dining experience, or maybe a slice of New York pizza, but chances are there’s a market for a new restaurant. You just have to figure out what people want — and they’ll eat.
Make up for slower business traffic by serving drinks people want all day long. If coffee shops aren’t a “thing” in your town, serving coffee all day in a place where people hang out – like a bar – can slowly start to normalize activity and encourage cross-business. A local bar in a small town may be your dream business, but a coffee shop can start bringing in money at sunrise; there’s no need to compromise as long as you create an environment that works both day and night.
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 in areas where grocery stores are not allowed to sell alcohol, liquor stores control the alcohol market in small towns. Be sure to read how to open a liquor store, as obtaining the necessary documentation (such as a liquor license) can be difficult.
A good master will always be in demand, even in small towns. If you’re frequently getting calls from friends, family, and neighbors to check on a leaky pipe or a wobbly board, you may be well on your way to starting a small town business that works.
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If you already do odd jobs and have an idea of who will hire you, it will be relatively easy to set up a contract job. If people in the area are not familiar with your work, try contacting a general contractor who is willing to bid on a small project and hopefully get your name out to future clients. In a word-of-mouth business like service work, repair and construction, people you already know and know your work are your strongest salespeople.
If you live in the country or in a small town, having a car is a must, but if you are far from a dealer, routine servicing can become difficult. Auto repair services fill an obvious need in small towns and make life easier for locals, so you may want to consider whether there is an opportunity to open a shop in your town.
Similarly, cars break down everywhere and most tow trucks charge per mile. So if your town is quite far from the bigger cities, there might be an opportunity to start towing cars – even if you don’t have a proper garage.
Some people just don’t like to clean, and there’s a good chance that a few of them live in your city. Why not start a cleaning company instead? 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 that doesn’t require you to spend a ton of money on courses or certifications, so it’s a great option if you’re looking for a low-cost side hustle.
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All businesses and individuals need technology support, regardless of where they are located. No matter how big or small a city is, there will always be people using technology – and having trouble connecting to their WiFi.
This service will require a bit more advertising to get the word out as it is less visible than a business with a shop and less regular than a service like house cleaning. But if you don’t plan on doing major repairs, it won’t require a lot of equipment, so you’ll also keep overhead costs low.
Opening a pet store in your town is one of the great small town business ideas if there isn’t a local pet store or a large chain like PetSmart or PetCo. Depending on the pet population in your area, there may be a demand for pet boarding and boarding services.
If you’re interested in opening a pet store or pet service business in a small town, ask local pet owners where they currently get their food and grooming. An existing pet store owner in your town can also be a good resource if you’re interested in offering grooming, walking or boarding services.
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Chances are your town has at least one barber shop or salon, but this could actually help you if you want to open a successful hair salon. If one demographic group is underserved – ie. there’s only one barber shop that caters primarily to men—find out what hair needs they’re not currently serving on Main Street.
If there are already full-service hair salons and barbers in your city, you may want to consider a more niche hair care business, such as a blowout bar or a salon that offers makeup, lashes, and tanning in addition to hair services.
They may not be the most glamorous businesses, but gas stations are essential in communities where most people rely on cars and trucks for transportation. Small towns located on or near major highways can have significant traffic, and unlike most businesses, a gas station can actually benefit from a location far between towns. Lottery and tobacco sales can also generate significant income, especially if you are the only seller in the area.
If a town that could support a grocery store doesn’t have one, there’s probably a good reason: either most people commute to work every day and use other stores, or there isn’t a large enough population to support a chain of big-box stores.
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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 overstock huge inventory. Help yourself in this decision with local products, trends and tastes.
In agricultural areas, farmer’s market-style shops selling local produce and seasonal goods are usually popular with locals and tourists alike. A city that already has a major chain grocery store, but few available options for organic, local, gluten-free, or vegan food, is an excellent candidate for a specialty food store.
A pharmacy or dispensary requires more work—from hiring a pharmacist to purchasing insurance and installing security measures—but if there isn’t a local pharmacy in your town, this could be a great opportunity to open a long-term business in your community.
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