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A big business can be created in small towns. Small towns offer the unique opportunity of a concentrated market as well as the challenge of a limited population. Finding small town business ideas that stick is all about meeting current demand with a great product or service.
Small Town Startup Business Ideas
If you want to start a business in a small town, you will need to do some background research on the local market as well as the specific geography of the physical location. In a small town, you’re much more dependent on a smaller group to run your business, so choosing the right location is critical to optimizing store traffic. Even if your business plan is service-based, it’s still a good idea to have a firm grasp 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 evaluate the costs and requirements of starting a small town business. For inspiration, we’ve gathered this list of 35 small town business ideas every community needs. You can use this list as a starting point for research or maybe find the right business idea for your small town.
Starting a small town business requires careful research and understanding of your community. Once you have an overview of the existing businesses in your area and the 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 business ideas for you to consider:
Dinner, fine dining, or somewhere in between, a successful small town restaurant is all about giving people what they want but don’t have yet. When starting a restaurant, it can be tempting to copy a popular spot in town, but consider catering to a need — or desire — 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 small town business idea, but if you’re not in an agriculturally rich area or one that already exists in your town, consider an alternative. Think about what your family is looking forward to when you leave town. Maybe it’s a fine dining experience, or maybe a slice of New York-style pizza, but there’s a good chance there’s a market for a new restaurant. You just have to find out what people want – and they will eat.
Make up for slower business traffic by serving drinks people want all day. If coffee shops aren’t a “thing” in your town, serving coffee all day in a place where people go – like a bar – can slowly start to normalize the activity and encourage crossover 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 day and night.
Depending on county laws and state taxes, opening a liquor store can be one of the most lucrative 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 up on how to start a liquor store, as securing the necessary documentation (such as a liquor license) can be tricky.
A good handyman 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 slab, you may be well on your way to starting a small town business that works.
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Starting a contractor service will be relatively easy if you already work odd jobs and have an idea of who will hire you. If people in the field are not familiar with your work, try connecting with a general contractor who is willing to bid on a small project and hopefully get your name out there to future clients. In word-of-mouth business such as service, repair and construction, your strongest salespeople are people you already know and who know your work.
If you live in the country or in a small town, having a car is a must, but if you are far from a dealership, routine maintenance can be a problem. Auto repair shops fulfill an obvious need in small towns and make life easier for locals, so you should consider whether there is an opportunity to open a shop in your town.
Likewise, cars break down everywhere and most tow trucks charge per kilometer. So, if your town is quite far between big cities, you may have the opportunity to start towing cars – even if you don’t have a proper repair shop.
Some people just don’t like to clean, and there’s a good chance that a few of them live in your town. Why not start cleaning for them? This is another service that benefits from a word of mouth referral system and can even be paired with other services such as babysitting or yard work. Professional cleaning is a valuable skill, but not one that requires you to spend a lot of money on courses or certifications, so it’s a great option if you’re looking for a low-overhead 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 who use technology – and struggle to connect to WiFi.
This service will require a little more advertising to get the word out, as it is less visible than a storefront business and less regular than a service like 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 already a local pet 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 catering services.
If you are interested in opening a pet store or pet service in a small town, ask local pet owners where they currently receive food and care. An existing pet store owner in your town can also be a good resource if you are interested in offering grooming, walking or boarding services.
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It’s likely that your town has at least one barber shop or salon, but this could help you if you want to open a successful hair salon. If one demographic is underserved—i.e. j. there are only barbershops that cater mainly to men – find out whose hair needs are currently not being addressed on Hlavná Street.
If your city already has full-service hair salons and barbershops, you may want to consider a more specialized hair care business, such as a blowout bar or salon that offers makeup, lashes, and tanning in addition to hair services.
They may not be the fanciest of businesses, but gas stations are absolutely necessary in communities where most people rely on cars and trucks. Small towns located on or near major highways can have significant through traffic, and unlike most businesses, a gas station can actually benefit from a location far between towns. Selling lottery tickets and tobacco can also generate significant income, especially if you are the only seller in the area.
When a town that could support a grocery store doesn’t have one, there’s probably a good reason: maybe most people commute to work every day and use other stores, or the population isn’t large enough to support a large chain.
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If you want to go the independent route (i.e. not open a franchise store), try to find a way to make your store special so you don’t overstock. Use local products, trends and tastes in this decision.
In agricultural areas, farmers’ market-style shops that offer local produce and seasonal goods are usually popular with locals and tourists alike. A city that already has a large chain grocery store but few available options for organic, local, gluten-free, or vegan foods is a great candidate for a specialty grocery store.
A drug store or pharmacy requires more work—from hiring a pharmacist to buying insurance to installing security measures—but if there isn’t a pharmacy in your town, this can be a great opportunity to open a long-term business in your community. .
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