Ideas for Starting a Business in a Small Town

Starting a business in a small town presents its own set of challenges. There is less competition, but there are also fewer potential customers, and people in small towns may have less money to spend on luxuries. You may also need to avoid competing against businesses that are already well-established and popular. On the other hand, many small towns lack a wide variety of businesses, and people may be craving something new.

 Local Businesses

One idea for a small-town business is to make or produce something that is uniquely local, such as photos of the local area or food products produced locally. You can also sell handmade jewelry or clothes that are either customized to represent some feature of the local area or made locally. You could target tourists or people who live in the town part-time, or sell your products on the Internet as a "taste of the town". You can also provide a local service, such as running a children's camp for the local community that incorporates the local geography and heritage in its activities.
Local Knowledge

Some types of business trade on local knowledge. For example, if your town is in a popular tourist area, you could make guides to the area or act as a tour guide. If the town makes a unique type of product, such as jewelry or a speciality food product, you could sell these on the Internet or in larger towns. You can also buy products that are hard to find locally and sell them. Another idea would be to renovate a derelict building and develop it as an artistic or community center or a conference center.

Related Reading: Tax Benefits of Starting a Small Business

Serve Existing Businesses

Many small towns lack a source of business know-how. You could target existing businesses by providing services and skills that are harder to come by or that are in demand in small towns. For example, you could run a business providing virtual assistants, accountants, web design or business coaching to existing businesses. With the wealth of government contracts available to businesses in rural areas, you could help other businesses to find and apply for these contracts.
Supply What's Missing

In many small towns, there are few places for people to spend leisure time. A business that combines two or more leisure activities may be welcome. For example, you could open a movie theater with a bar or coffee shop in it or a shop that boasts space for holding art classes. Or, your business could take advantage of popular local activities by catering to bird watching, hiking or biking enthusiasts and provide supplies and instruction.

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