Get started by: Creating a website → | Getting a domain →
Starting a business in your town is a great way to stay close to your roots and give back to your community. Your journey towards being a successful entrepreneur starts with a significant step - choosing the right business idea.
Becoming an entrepreneur is a way to earn money, but it’s also an outlet to showcase your talents and engage with your community. So, be ready to factor in your interests, experience and values.
In this article, you’ll explore a wide range of small-town business ideas and learn the best way to pick a business idea that succeeds.
What makes a business idea good for a small town?
As you plan to start a business in a small town, consider the community’s needs, your skills and the idea’s profitability. Here’s a list of specific ideals to aim for:
Local demand: Thoroughly understanding your community's lifestyle and needs is essential to choosing a small-town business idea, since your pick should be something the residents want.
Originality: Unique businesses have less competition—or no competition—and thus a clearer shot at success.
Learn more: 25 unique business ideas to inspire you
Engagement: Businesses that help the community come together will be successful in small towns. Consider your idea’s potential to captivate the residents.
Affordability: Your business idea should match the spending power of a small town. Consider your town’s economic condition, especially local prices.
Personalization: In small towns, businesses often succeed by word-of-mouth approval. Deeply connecting with each client will create a strong customer base for your business.
Adaptability: Your business idea should be able to change with the seasons and economic conditions of the town. Be creative: Your lawn care business can switch to a snow removal business during winter.
Partnerships: Choose business ideas that work well if you team up with established businesses to leverage their operations and customer base.
Learn more:
The best small-town business ideas
6. Bookstore
12. Barbershop
16. Food truck
17. Ice cream parlor
18. Home cleaning
19. Art gallery
21. Auto repair shop
22. Hardware store
23. Event planning
24. Co-working space
29. Homecare
31. Flower shop
33. Daycare
34. Music store
01. Coffee shop or cafe
A good cup of coffee is always in demand; roughly three out of four Americans drink coffee every day. Plus, your shop can become a beloved social space, which makes a cafe a great small-town business idea.
How to make a small-town coffee shop profitable?
Start a drive-through cafe
Host comedians, musicians and artists
Obtain a liquor license and serve coffee-based liqueur
Target several types of customers, such as commuters, remote workers and couples
Here’s an inspiration for you: Yiayia's Coffee started by selling gourmet coffee at a farmer’s market in Frisco, Texas.
Learn more: How to create a coffee shop business plan
02. Bakery or baking business
Starting your own bakery or baking business is an excellent small-town business idea to showcase unique recipes and local produce. Open a cozy space or run your baking business from home. Either way, a good donut, croissant or pretzel does more than satisfy hunger; it comforts people.
How to make a small-town bakery successful?
Develop signature dishes unique to your bakery
Serve vegan and gluten-free baked goods
Cater to birthday parties, baby showers and local events
If you’re looking for an exemplary small-town bakery business, check out Hanna Stone Pastry. Their portfolio website showcases beautiful baked goods.
Learn more: How to create a bakery business plan
03. Farmer’s stand
If you aren’t ready to open a store, running a farmers’ stand at your local market is a great alternative. You don’t need to be a farmer to have a farmer’s stand; you could buy local produce, homemade jams and artisanal cheese, then resell them.
Why is a farmer’s stand a great small-town business idea?
Your initial investment in capital will be low
It supports local farmers and artisans
Farmer’s markets often attract tourists and people passing through town
Learn more: How to start a farming business
04. Grocery store
A small town’s grocery store helps the community access fresh produce without having to travel. If your town already has a grocery store, make yours stand out by offering curated items for different cultures and lifestyles.
Tips to make your small-town grocery store a success
Rent a prominent, easily accessible store space
Explore niche markets like ethnic cuisines and gluten-free staples
Plan your inventory around items in high demand
For a model grocery store, check out Fox & West, a successful small-town business in Totterdown, England.
05. Arts and crafts business
Selling arts and crafts is a great small-town business idea to monetize your hobby. You can open a physical store or sell your crafts online. Either way, try selling original paintings, home decor, ceramic pots or jewelry.
How to make money from your arts and crafts store?
Start online stores in established ecommerce marketplaces
Offer craft workshops and art exhibitions
Commission local artists to create unique pieces
Learn more:
06. Bookstore
You’re probably wondering whether it’s a good idea to start a bookstore, considering the rise of online books. Yes, people still find pleasure in browsing through the bookshelves. A bookstore can also become the town’s hub for readers and writers.
How to make money from a small-town bookstore?
Curate books to cater to a specific target audience
Double as a venue for club meetings and book readings
Run a small cafe alongside your bookstore
Open an online bookstore by building an ecommerce website
For inspiration, check out the charming Luminary bookshop, which serves the small town of Gardnerville, Nevada.
07. General store
Opening a general store in your town will help people buy impromptu essentials like milk, tampons, stationery and snacks. Even if your town has a supermarket and grocery store, a general store in a highly frequented area can become successful. Plus, you could start loyalty programs for your regular customers.
08. Technology repair service store
90% of Americans own a smartphone—but unlike in big cities, small towns may not have service shops owned by popular brands. In those cases, starting a repair and service store is an excellent small-town business idea.
How to run a successful repair and service store?
Offer phone or computer services at the doorstep
Handle software updates and installations
Sell cyber security products like antivirus software
09. Family restaurant
Food is a basic necessity, and providing new local options is sure to attract the curiosity of residents. Small towns often have charming restaurants that serve family recipes passed down through generations. Naturally, offering both dine-in and home delivery services will improve your profits.
To make a splash, you could start your food business by bringing a foreign cuisine to your town.
Learn more: How to create a restaurant business plan
10. Boutique clothing business
If you’re a fashion designer—or just interested in clothes—starting a boutique clothing store is a good idea, especially if your town lacks a wide variety of clothing stores and designer boutiques.
How to make a clothing boutique profitable?
Sell clothing inspired by local designs, cultures and textiles
Promote sustainable or preloved clothes and accessories
Open an ecommerce store to supplement the physical store
Offer styling services or sell matching jewelry and accessories
Specialize based on demand, such as a kids' clothing store
11. Pet grooming and boarding
If you love animals, pet grooming and boarding is a great small-town business idea. There’s little upfront cost and you can diversify your business in many ways:
Start a pet salon.
Open a pet toys and food store.
Offer pet sitting and pet walking.
Caring for animals is a fulfilling business, and you can even run it from home. For example, take Melba’s Pawsitive Pet Sitting and its cage-free services.
12. Barbershop
A barbershop is essential for every small town. People prefer their hair cut by a trusted barber, so if you can consistently deliver outstanding service, you’ll have a loyal customer base.
Start small and expand your business. Here are a few services to add later:
Coloring and texture changes
Beard and moustache grooming
Hair care product sales
13. Lawn care, gardening and landscaping
Do you enjoy spending time in your garden? Your hobby is also a business opportunity. With their daily hustle, people often find it difficult to groom their lawns. Start a landscaping business or open up a gardening service to help people make their yards beautiful.
Later on, expand your gardening services. Design new gardens and obtain contracts to maintain them—or to build a nursery and sell plants. For inspiration, check out Wicked Green Lawn Consulting.
14. Fitness studio or gym
Are you a fitness enthusiast? Do you often advise your friends on diets and exercises? Starting a fitness studio could be the perfect business idea for you. Charge for gym subscriptions, cater to people who prioritize their health and inspire them to exercise.
Granted, starting a gym requires a high initial investment for capital, including equipment. Alternatively, make money as a personal trainer.
Here’s a great example of a successful small-town fitness business. WellnessByBB—based in Nashville, Tennessee—offers online and offline fitness training and nutritional advice.
15. Bed and breakfast
A bed and breakfast greatly helps passersby and vacationers in a small town. It could boost your town’s tourism by becoming a popular weekend getaway for people from nearby cities.
Either set up a separate property or set aside a few rooms in your home. It’s a good idea to market your bed and breakfast by listing it on Airbnb and creating a website. Check out Wix for stunning website templates for B&Bs.
16. Food truck
If you are a chef or passionate about food, this is an ideal small-town business idea. A food truck isn’t limited to a specific area—go where the crowd is.
How to make a food truck profitable?
Create a food truck route with multiple stops across town
Serve specialty food featuring local produce
Expand your business to nearby towns
Take your food truck to festivals and events
You can start a food truck business with low capital and expand when business picks up. Check out West Virginia Food Trucks for proof this is a lucrative business idea.
Learn more: How to create a food truck business plan
17. Ice cream parlor
Ice cream parlors are a favorite hang-out spot for kids and families. There are many ways to turn your ice cream shop into a success:
Create signature ice cream flavors with fun visuals
Offer some low-calorie and dairy-free ice creams
Cater to local events and birthday parties
Expand your business by adding cakes and pastries
You could start a franchise or focus on making your desserts groundbreaking. For a successful small-town ice cream parlor that stands out in creativity, see Ice Cream Roll Up in Gardner, Kansas.
18. Home cleaning
Officegoers, young parents and senior citizens typically need cleaning services. Why not help them out?
Why is home cleaning a profitable business idea?
Weekly or monthly cleaning services will bring you recurring income.
You can expand into decluttering, cooking or house-sitting.
In rural areas, it’s easier to get jobs through referrals.
The cherry on top: You don’t need to rent a shop or buy industrial equipment to start a home cleaning business.
Learn more: How to create a cleaning business plan
19. Art gallery
If you are an artist or art enthusiast, opening a gallery is a unique opportunity to make money through your passion. In addition to displaying and selling art, your gallery could become the cultural center of your town.
Tips to make money from an art gallery
Conduct art workshops, themed exhibitions and sales
Offer space for cultural gatherings
Host open mic sessions to feature local artists
20. Laundromat and dry cleaning services
People need clean clothes no matter what, so opening a laundromat is a safe bet in any economy. Granted, you’ll need an initial investment to buy washing machines and dryers. You’ll also have significant operating costs, namely the electricity and water bill. However, if you have less competition and a long-term customer base, you’ll quickly outpace the expenses.
As an example, check out this laundromat based in Albany, New York; it’s a successful business offering both self-service and drop-off services.
Learn more: Making a laundromat business plan
21. Auto repair shop
Imagine having a flat tire and waiting for a mechanic to arrive from two towns over. Establishing a repair shop in your small town is a great business idea that can earn you consistent income.
Here are a few add-ons that’ll bring your repair shop more revenue:
Car washes
Vehicle care products
Towing
Routine vehicle servicing
Vehicles need maintenance all the time, which makes an auto repair shop a fairly recession-proof business idea.
To get inspired, check out S&M Auto Repairs, which provides collision repair, full-body car check-ups and more.
22. Hardware store
Home improvement and maintenance are never-ending projects. That’s why a well-stocked hardware store is a great small-town business idea—you’d be the go-to for specialized tools and supplies.
A hardware shop has a high startup cost, namely renting a storefront and purchasing inventory. However, hardware supplies are always in demand, so you’ll make quick sales. Alternatively, you could offer handyperson services.
23. Event planning
If you’re good at throwing a party, starting an event planning business could be lucrative. In a small town, you’ll find many opportunities to offer your services, such as birthdays, baby showers, anniversaries and weddings.
As an event planner, partner with other local businesses to offer:
Venues for rent
Catering services
Photography and videography
Return gifts
Here’s some inspiration: Pop Tier is a local event planner in Pineville, North Carolina, offering party services.
Learn more: Making a party planning business plan
24. Co-working space
A co-working space offers freelancers and remote workers a place to tackle their to-do lists. The nationwide number of remote workers has increased since the pandemic, and many prefer working from a professional space.
To set up a profitable coworking space, include comfortable seating, high-speed wifi and conference rooms. Try offering snacks and beverages at an additional cost.
25. Tutoring and other educational services
Most students benefit from academic help outside their classrooms. If you’re a teacher or passionate about education, tutoring can bring money as well as satisfaction. You could conduct in-person classes or teach online. Plus, this small-town business idea requires almost zero upfront cost.
For example, see BTR Tutoring—they offer math lessons for kids from 5th to 7th grade. Alternatively, you could coach students for specific competitions like olympiads, spelling bees and standardized tests. Keep in mind that you don’t need to pick an academic discipline to start a tutoring service; why not teach an art form, sport or craft?
Learn more: How to create a tutoring business plan
26. Kids' toy and game store
Toys and games play an essential role in a child’s development. Small towns often have some kids’ toys in supermarkets, but the selection is limited. Opening a dedicated toy and game store is an opportunity to improve people’s childhoods and make money doing it.
How to make a toy store profitable?
Curate toys for children of different age groups
Offer a wide range of developmental and educational toys
Host educational events and workshops for children
Alternatively, start an online toy store. For instance, Cier's Learning Box offers toys and games that teach English.
27. Salon and spa services
There’s always a high demand for grooming services like salons and spas. If you’ve completed a beauty course, try starting a hair salon or nail spa in your town. Consider offering multiple services under one umbrella, such as:
Hair and nails
Spa and massage center
Makeup and grooming
Facials and body care treatments
Learn more:
28. Antique and second-hand selling
Small towns often hold their heritage close to heart. Starting an antique shop showcasing objects from your town’s bygone era would definitely attract attention. An antique shop also attracts tourists and travelers, unlocking a wider audience.
Consider combining your antique shop with a thrift store to sell pre-loved items at an affordable price.
Regardless, you’ll need to rent physical store space, make an ecommerce website, set up a booth during fairs or all of the above.
29. Home care
Caring for older people is a noble pursuit. If your town lacks the facilities for it, starting a home care service is a great small-town business idea. To make it a successful business, lease a lovely property and hire professional nurses.
30. Liquor store, winery or brewery
Liquor is typically a lucrative business with high margins. If your town doesn’t allow grocery stores to sell liquor, opening a dedicated liquor store or brewery is a solid idea to make money.
Alternatively, make wine or beer using local ingredients. A signature drink attracts people from far and wide. Getting a liquor license takes a bit, so look into that process before investing in your store.
31. Flower shop
Your town will benefit from a flower shop that delivers affordable and unique bouquets. After all, flowers are an essential part of any special occasion. If you love gardening and enjoy arrangements, opening a flower shop will bring you both joy and cash.
Starting a garden or partnering with a local nursery will get you fresh flowers at a lower cost. Later on, expand your business with chocolates and gifts. Or, sell bouquets online with quick delivery options.
32. Tattoo and piercing shop
There’s a good chance your small town doesn’t have a tattoo and piercing shop, so you can capitalize on low competition. To make this small-town business idea work, cater to the aesthetic of the locals who are most likely to need tattoos and piercings.
Notably, you’ll need an initial investment to purchase equipment, hire experienced professionals and obtain licenses.
33. Daycare
If your community has many working parents, opening a daycare is a great small-town business idea. Parents would love to have their children meet other kids and be supervised by a pro.
If you have qualifications in child development or a sixth sense for watching kids, you could turn a daycare into a lucrative business.
34. Music store
There’s hardly any community without music enthusiasts. Yet, small towns often lack stores that sell musical instruments; you might enjoy zero competition for your music store.
Along with instruments and equipment, you could sell vintage music albums, conduct classes and bring your town’s audiophiles together.
How to find the right business idea for your small town
Now that you have your eye on some ideas, let’s determine which are most likely to work. Choosing your business idea will be influenced by your experience, your passion for the niche and local demand for the product.
01. Analyze your skills and interests
A business demands your attention, passion and time. With that in mind, consider each of the following aspects to evaluate your compatibility with each idea.
Your interests: Is there anything you can do for hours and not get bored? Once you pinpoint several things you love to do, think about the necessary skills to turn it into a business.
Your skills: You need a basic grasp of customer service to start a cafe. Likewise, for any successful business, you must consistently deliver quality products and services. Are you experienced enough in your niche to understand its nuances?
Your goals: Every entrepreneur has expectations from their business—beyond making a profit. It could be about work-life balance, creating a community, helping others or something else. If your goal is to take nights off, don’t open a bar. If you want to support education for children, start a bookstore.
02. Study your small town
A small-town business idea only works if the owner’s vision matches the community’s needs. Look for a business idea that’s in high demand but has less competition. There are several ways to figure this out:
Talk to residents to understand their pressing needs. Find out what they’re missing and what problems they want to solve.
Take a walk around your town to understand what profitable businesses already exist in your area. Search Google or Yelp for online businesses catering to your town.
03. Explore potential businesses
Once you’ve learned the community’s needs and explored the existing businesses, it’s time to thoroughly flesh out each of your small-town business ideas.
Map demand and supply: Do the residents have to travel to fulfill their wants? Is there an existing business that can solve their problems? Making a list of the town’s needs might give you a great business idea.
Explore emerging trends: Figure out if your town could capitalize on a trend or expand on it. For example, if your community just started using electric vehicles, a repair shop and charging point would help them embrace their eco-friendly commuting.
04. Test and refine your idea
Before starting a business, test whether the idea has the potential to become a success. You can test-drive your business idea by:
Asking a few potential customers, preferably people outside your friends and family. Getting neutral or critical feedback will push you to improve your idea.
Creating a business plan that outlines your target audience, marketing strategy and financial projections.
Conducting a test run. You don’t need to execute your business idea at full capacity at first. Start from home with a limited product selection and a small group of customers.
How to start a business in a small town in 5 steps
Whichever small-town business idea you land on, you’ll need a step-by-step plan to kick-start your business. Here’s the overall path to get started.
01. Market research and idea validation
Since your success depends on the demand for your products or services, do market research that further reveals what your target audience needs.
Here are a few ways to conduct market research:
Ask your friends and neighbor.
Conduct a door-to-door survey
Observe comments on local social media groups
02. Create a business plan
It’s time to develop a business plan, as every small business owner should. Ideally, this document will:
Define your unique value proposition
Determine products and services to offer
Identify your business goals
List out potential risks
Explore financing options
03. Register your business
As an entrepreneur, you need to complete a few legal formalities to start a new business. Go through the basic steps to register a company in the U.S.:
Choose a business name: It should be unique and reflect your small-town business idea.
Choose a business model: Decide whether you want to open a physical store, an ecommerce store or both. Pinpoint which products and services will make most of your profits.
Decide your business’s legal structure: Will your company be a sole proprietorship or a limited liability company (LLC)? Before choosing a structure, consult a lawyer and accountant to explain the tax and legal implications.
Register your company: Depending on the nature of your business, you may need to register your company with local, state and federal authorities.
Apply for necessary licenses and permits: Get business licenses based on your state and industry.
04. Secure financing
Many small business owners must pay rent in advance, decorate the store, purchase inventory and hire employees. You can raise money for your business in several ways:
Personal savings (bootstrapping)
Bank loans
Investments from friends and family
Grants from the government or other organizations
Crowdfunding
It’s a good idea to create a budget so you don’t go overboard with the expenses. Set aside funds for the startup, equipment, products, hiring, initial operating expenses, marketing and unforeseen costs.
05. Market your small-town business
At this point, you’re all set to open your store. The next step is to spread the word about your new business. In a small town, it’s easy to start with face-to-face marketing. Here are a few tips for that:
Ask family and friends to spread the word about your business
Attend social events in town and talk about your business
Volunteer for local events as a brand sponsor
Word-of-mouth publicity is great, but you should also market your business online; creating a business website will attract more customers. Next, try using social media ads or posts. Getting your business listed on Google Local Pack can also attract leads.
Are you looking to build an online showcase for your small business? Wix’s website builder will help you create stunning pages in a few clicks.
Small-town business ideas FAQ
What are some profitable small-town business ideas?
Profitable small-town business ideas include starting a coffee shop, bed and breakfast, grocery store, salon or barbershop.