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Starting a business in a small town is not just about filling a market need, it's about becoming a part of the community while helping to shape its identity. And it all begins with one crucial decision: the choice of the right business idea.
Why is the right small-town business idea so significant? It's about carving out your niche, branding your identity as a small-town entrepreneur and influencing how your neighbors and customers perceive you. Your business idea isn't just the foundation, it's the cornerstone of your presence in the community.
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What makes a business idea good for a small town?
A good business idea for a small town should resonate with the community, offer value and contribute positively to the local economy and culture. It's about building not just a business but also a lasting relationship with the town and its residents. Here are some key factors that make a business idea well-suited for a small town while making it possible to make money as an entrepreneur.
Local demand: The idea should address a genuine need or problem within the community. Understanding the specific challenges or gaps in goods and services is crucial to being successful in a smaller community.
Community engagement: Businesses that involve and engage with the local community tend to thrive in small towns. Consider ideas that foster a sense of belonging and connection.
Uniqueness: A business with a unique selling proposition can stand out in a smaller market. Look for opportunities to offer something different or provide a unique twist on an existing concept. Learn more: Unique business ideas.
Potential for local partnerships: Partnering with other local businesses or organizations can enhance your business's presence and reach in the community.
Personalized service: In small towns, personal relationships matter. A business idea that allows for personalized and friendly service can be a significant advantage in such a market.
Affordability: Keep in mind the local economic conditions and ensure that your products or services are reasonably priced and accessible to a wide range of residents. Learn more: Best businesses to start with little money, Low cost business ideas.
Adaptability: Small towns can have distinct seasonal variations or economic cycles. A flexible business idea that can adapt to changing circumstances is a valuable one. For example, some small towns might get a large influx of tourists during specific times of the year but almost none at other times. This would have a huge impact on how a business plans revenue and profit cycles throughout the year.
30 small-town business ideas
Small towns are often filled with unique opportunities for budding entrepreneurs. With their tight-knit community focus and distinct charm, these 23 small-town business ideas offer a chance to not only follow your passions but also become a vital part of your local neighborhood. From cozy cafes to niche craft businesses, here are some inspiring ideas for those looking to make their mark in a close-knit community.
01. Coffee shop or cafe
A cozy coffee shop can be a great small-town business idea if started with the aim of becoming a community gathering spot. All small towns need places for people to gather, work from and enjoy a quality cup of coffee. Starting a coffee shop may take considerable resources, including a physical location and coffee-making equipment. As a coffee shop owner in a small town, you can also choose to showcase local artists' work and perhaps host local musicians too.
Check out this coffee shop for inspiration, Yiayia’s Coffee Shop, which sells coffee made from freshly roasted beans in Texas.
02. Bakery or baking business
Another small-town business idea to consider is starting a baking business, either with a physical bakery or from home. Either will allow you to offer fresh-baked goods, including bread, pastries and custom cakes within the community. You could become the go-to business to go to for birthday cakes and other treats for special occasions, as well as a breakfast or weekend spot. Starting a business from home will take less capital than going with a physical bakery.
Hannah Stone Pastry is a great example of a baking business to be inspired by.
03. Farmers stand
You don’t necessarily need to be a farmer or grow anything yourself to consider starting a farmers market stand as your small-town business idea. You can sell locally grown produce sourced from local farmers and growers, homemade jams or other artisanal food products such as cheese or wine.
We love this example of a farming business in a small town, Life Abounds Farm. This micro-farm in Orange County grows crops of all kinds and also rears chickens and goats.
04. Grocery store
Every small town should have a local grocery store to help make local goods accessible like fresh produce, pantry staples and everyday necessities. By selling locally sourced products at an affordable price, a grocery store can become a hub for the community to connect and support local businesses. You can also strengthen your business by partnering with local farmers to show community focus, build trust and guarantee customer satisfaction with fresh, locally sourced items.
A great example is Fox & West, a local grocery store in Totterdown, UK that works with local food banks and provide local produce, cheeses and fresh bread daily.
05. Craft business
Opening a craft store or starting a craft business online can be a successful small-town business idea. You can stock handmade crafts and art supplies and host crafting workshops. This can be a great way to bring local crafters together and create a successful business.
Learn more: Online business ideas, How to sell online
Be inspired by the homemade offerings of Eden Jewelry as one direction to take with a crafting or handmade business.
06. Bookstore
Opening a bookstore is one small-town business idea to consider, selling new books, second-hand books, or a mixture of both. A bookstore can easily become a welcoming space for book lovers with a carefully curated selection of books for sale. It can also evolve into a community meeting spot, hosting local or visiting authors for the benefit of all who love to read and learn. If you start a bookstore you can also sell books online via an eCommerce website to widen your customer base.
The Luminary Bookstore operates out of Gardnerville Nevada and operates out of their store five days a week serving their community with a carefully curated selection of books.
07. General store
Depending on what stores are already open in your small town, a general store can be a viable small-town business idea. General stores can offer a variety of essentials, from over the counter pharmacy items to hardware items that are needed every day by community members. Stock can also be sold via an online store.
08. Technology repair service store
To support the growing demand for tech assistance in small towns, a specialized technology repair service store focused on delivering efficient repairs, personalized customer service and quick turnaround times can become a dependable source for technical help within the community.
09. Family restaurant
Every small town needs a favorite family restaurant and if yours doesn’t have one, this might be a winning business idea to consider. Family restaurants serve classic comfort food and often become local favorites and the place to go. Starting a food business can require extensive startup costs and resources and this should be considered when deciding which small-town business idea to lead with.
Looking for inspiration from other restaurant business owners? Check out West Indian Bake and their menu, for a small-town business example.
10. Boutique clothing business
Whether you specialize in unique fashion items or locally made apparel, starting a boutique clothing business can be a suitable small-town business idea to start either from a physical space or online. Standing out with a boutique clothing business in a small town might mean focusing on unique clothes, or everyday wear, depending on your market research and target audience. You might discover a need or gap in the market for children's clothes (check out these kidswear business ideas), for example and this will strongly influence the type of boutique you start. Or take your boutique online, as a potential ecommerce business idea.
11. Pet grooming and boarding
Both pet grooming and boarding can be considered a good small-town business idea especially if your community has a high rate of pet ownership. Pet care can take place from your own home, which can reduce initial business startup costs and keep your operating overhead expenses lower.
Get inspired by this pet care business example, Melba’s Pawsitive Pet Sitting offers cage-free boarding for all pets.
12. Barber shop
Typically, prospective clients usually schedule a haircut on a monthly basis, making this business a valuable asset in any small town. You could offer traditional barber services, as well as modern grooming options like beard trims and shaves.
13. Lawn care, gardening and landscaping
Live in an area with a lot of private homes and lawns? Then this small town business idea might be a good fit. Starting a lawn care business, or setting up a landscaping business will mean offering services to help small-town residents maintain their lawns and gardens. It might also include gardening services, such as maintenance or planning and planting new gardens. This can also be a great teen business idea for an entreprenurial savvy teen.
Wicked Green Lawn Consulting is a small lawn care business operating out of Hudson, Mass. This small-town business focuses on lawn care consultancy, having turned their passion for lawns into a business.
14. Fitness studio or gym
A fitness studio or gym can be an excellent business idea for a small town for several compelling reasons. One of these is that many small towns lack large commercial gyms or fitness centers, leaving residents with limited options for exercise. Meeting this unmet demand creates an opportunity for starting a fitness business or starting a gym.
A fitness studio can become a hub for community engagement by hosting fitness classes, events and workshops that bring people together, fostering a sense of belonging and connection through exercise. It can also be started small, by running exercise classes from your home or perhaps a rec center.
This online and in-person fitness business, Wellness by BB, offers in-person and online fitness consultations, workouts and nutrition plans. It's a great example of how it’s possible to turn a passion for fitness into a business and make money as a personal trainer.
15. Bed and breakfast
Part of what makes small towns so charming is their quaint hospitality and accommodation experiences. By opening a bed and breakfast or small hospitality business in your community, you can provide visitors with a cozy and personalized stay while also supporting the local economy. With the rise of platforms like Airbnb, it's easier than ever to get started in this type of business.
16. Food truck
Starting a food truck business is a potential small-town business idea and it can always be driven to neighboring communities to access a wider customer base. Food trucks are a great way to showcase your culinary skills and to serve up meals and snacks during local events and gatherings. You can also be hired out for private events.
Learn more: Mobile business ideas
To see how business owners are making food trucks work in communities across West Virginia, check out West Virginia Food Trucks.
17. Ice cream parlor
Who doesn’t love ice cream? Starting an ice cream parlor, or even a food truck selling ice cream is a good way to start a small-town business. If your small town is a tourist destination, an ice cream business could be a smart decision to make. From artisanal, unique flavors to family favorites, there are a lot of directions this business idea could take.
Looking to be inspired by real-life ice cream parlor examples in small towns? Check out Crossroads Ice-Cream Parlor in Onalaska, Wisconsin. They offer super premium quality ice cream and outdoor seating, making them a real community spot. Ice Cream Rollup in Gardner, Kansas is another great example of a small-town ice cream business. They make hand-rolled ice cream, including dairy-free options. They also cater community and private events.
18. Home cleaning
Home cleaning is a good small business idea for several reasons, especially in today's busy world. Cleaning services have a consistent and steady demand and homes need regular cleaning, so even in a small community, it can be a viable and profitable business idea. Starting a home cleaning business typically requires minimal initial investment, especially when compared to other businesses and so it can be set up quickly and easily. New cleaning customers often come through word of mouth, which works more effectively in a small town where people rely on trusted reviews and personal recommendations. In a small town, you might want to offer a larger variety of cleaning services, from house cleaning to organizing and decluttering.
Learn more: Home-based business ideas
Cobalt Cleaners, for example, offers a range of home cleaning services and appointments can be booked directly from their website.
19. Art gallery
If you have experience working with artists, or are one yourself, establishing an art gallery is a creative and interesting small-town business idea to consider. It’s a great opportunity to showcase local artists’ work and host community events centered around art. If you’re an artist or art teacher you could also consider running art classes and workshops.
20. Laundromat and dry cleaning services
Looking for a potential small-town business idea? Consider starting a laundromat business. This will usually involve setting up a physical space with machines where community members can pay to do their laundry themselves, or you do it for them. In a small town, you could also consider offering laundry pickup and drop-off services as a way to attract customers. You can also offer dry cleaning services. Make sure to check demand before starting this type of business in a small community, especially if similar services already exist.
One such business is Albany Laundry, which operates out of Albany, NY. They offer both self-serve machines to do your own laundry or a drop-off service where they do it for you.
21. Auto repair shop
An auto repair shop is an excellent small-town business idea due to the steady demand for vehicle maintenance and repair services. In smaller communities, a local auto repair shop can become a trusted resource for residents, offering convenience, expertise and a sense of community support. Auto repair is also considered an essential service making it a good recession-proof business idea too.
One example of such a business is S & M Auto Repair, which offers mechanical checkups, collision repair and full-body car checkups.
22. Hardware store
A hardware store is an ideal small-town business due to its essential role in meeting residents' needs for tools, home improvement and maintenance supplies. It fosters a sense of community, offers convenience and provides a valuable resource for DIY projects and local contractors, ensuring consistent demand and customer loyalty. You might be often asked for advice from residents who not only need hardware supplies but tips on how best to fix specific areas of their house or other issues. Running a small-town business often involves offering a variety of services and products.
23. Event planning
There is often plenty of demand even within smaller communities for event and party planning services. From personal events, such as weddings and anniversaries, to proms and other community events. This is a great small-town business as you can start a party planning business from home and work first with family and friends before earning more word-of-mouth referrals.
Working out of Pineville, North Carolina, Pop Tier Parties, offers custom party planning services.
24. Co-working space
Creating a co-working environment in your small town can provide a professional and collaborative environment as well as attract remote workers from nearby cities looking for a change of scenery and a comfortable working experience.
25. Tutoring and other educational services
Looking for a small-town business idea that’s easy and low-cost to set up? And that can be done from home or online? If yes, starting a tutoring business might be the best fit for you. You can choose to tutor any age of students, depending on your experience and qualifications and almost any subject from music to mathematics to English. It's the perfect business idea for teachers.
This small business, BTR Tutoring offers online math tutoring for those in Grades 5 -7. It’s run by a dedicated teacher.
26. Kids toys and games store
This type of small town business can cater to families in your local community by offering a wide range of toys and educational activities for children, as well as being a center for events or workshops
Take inspiration from Cier's Learning Box, an online store offering a learning box with materials and games to help teach kids English.
27. Hair salon and services
All small towns need a hair salon or other hair care services. This is a great business idea that can be started at home or you can cut hair from clients' homes. If you don’t need to source and rent a physical space, starting a hair salon can be a low-cost business to start. You’ll need to make sure you have good quality hair-cutting equipment and excellent service.
28. Nail salon and spa
People are always looking for ways to relax and pamper themselves. By opening a nail salon or spa in your small town, you can offer residents and visitors a chance to indulge in self-care and unwind.
Learn more: How to start a nail business
29. Antique and second-hand selling
Starting an antique store or a thrift shop in a small town offers the advantage of catering to a nostalgic and close-knit community. Residents appreciate vintage finds and an antique store or stand can become a cherished part of local culture, attracting both local customers and visitors, fostering a sense of history and supporting the town's economy. You might choose to have an actual antique store, sell online by creating an eCommerce website or a mix of this and selling at local fairs and events.
30. Homecare
Homecare is an excellent small-town business idea due to the growing elderly population. Smaller communities often lack comprehensive senior care services, creating a significant demand for in-home care. Providing personalized, compassionate care to seniors can help them age in place while fostering a sense of community and trust.
How to start a business in a small town in 5 steps
Starting a business in a small town involves a series of steps to ensure your success. Here are five key steps to get you started:
01. Market research and idea validation
Research your small town's demographics, needs and preferences. Then identify gaps in goods or services that you could fill. You can validate your business idea by talking to locals, conducting surveys in your target area and understanding your local audience.
02. Create a business plan
Develop a detailed business plan outlining your concept, target market, competition, marketing strategy, financial projections and funding needs. A well-structured business plan serves as your roadmap and can help secure financing if needed.
03. Register your business
Register your business with the appropriate local, state and federal authorities. Before doing this you’ll also need to choose a legal structure - sole proprietorship, LLC. You'll also need to understand more about the type of business model you plan to follow, eCommerce or otherwise. Obtain any necessary permits, licenses or zoning approvals specific to your small town before getting started.
04. Secure financing
Next, determine how you’ll raise money for your business. You can consider personal savings, loans, grants, or investments from family and friends, as these are all popular ways to fund a small business. You’ll need to prepare a budget to manage startup and ongoing expenses and set aside funds for marketing and other unforeseen costs.
05. Promote and market your small-town business
Start by finding a suitable location for your business if necessary. Consider both accessibility and visibility. Then develop a strong online presence through a website, social media and online listings. Local Facebook groups tend to be a popular way to promote a small-town business, so check out the ones in your area relevant to your business. Next, create a marketing plan tailored to your small town's unique characteristics, focusing on local outreach and community engagement.
Looking to build a business website? Get started with Wix. Or consider these other business ideas to start: dropshipping business ideas, craft business ideas.
How to find the right business idea for your small town
Finding the right business idea for your small town requires a thoughtful blend of introspection, observation and research. Here are some tips to help you discover the perfect entrepreneurial opportunity:
01. Analyze yourself and your skills
What are your passions and interests? What excites you and what are you naturally good at?
What experience and skills do you already have? Can you leverage your existing knowledge to benefit a local need?
What kind of work-life balance do you want? Consider the time commitment and lifestyle demands of different business models.
02. Study your small town
Identify local needs and gaps: What services or products are missing? What problems do people face in your community?
Analyze existing businesses: What types of businesses thrive in your town? Are there any underserved niches you could fill?
Talk to locals: Conduct informal surveys or interviews to understand people's needs, preferences and spending habits.
03. Explore potential business ideas
Match your skills and interests to local needs: Can you provide a service or product that solves a problem or fulfills a desire in your community?
Consider your resources: Look for ideas that leverage your existing skills, assets and available capital.
Research market trends: Stay updated on relevant industry trends and emerging opportunities that could be viable in your small town.
04. Test and refine your idea
Validate your market potential: Talk to potential customers and gather feedback to assess the demand for your idea.
Create a business plan: Outline your target market, pricing strategy, financial projections and marketing plan.
Start small and test your concept: Consider running a pilot project or offering limited services to gauge market response before committing fully.
Small town business ideas FAQ
What are some profitable small town business ideas?
Profitable small town business ideas include local services like a bakery, coffee shop, grocery store, pet grooming, lawn care, tutoring or a local restaurant.