Introduction

In the heart of every small town lies a unique opportunity for small businesses. These ventures not only contribute to the local economy but also shape the community’s identity. With lower competition and a close-knit community, small town businesses can thrive by addressing unique local needs. This article explores some of the best small town business ideas, providing a great starting point for entrepreneurs and established business owners looking to expand.

Restaurants

In many small towns, there is a need for more diverse food options. Opening a restaurant can be a profitable venture, especially if you can offer something unique to the area. Consider the potential for farm-to-table restaurants that source local ingredients, or restaurants that offer unique cuisine offerings not currently available in your town. This not only fills a gap in the market but also supports local farmers and suppliers.

Hybrid Bar/Coffee Shop

A hybrid bar/coffee shop can be a great business idea for small towns. This type of establishment has the benefit of serving beverages that people want all day – coffee and pastries in the morning, light lunch in the afternoon, and alcoholic beverages in the evening. There’s also potential for crossover business, such as hosting events, offering a co-working space during the day, or live music in the evenings.

Liquor Store

In some areas, grocery stores aren’t permitted to sell alcohol, which can make a liquor store a profitable business idea. However, it’s important to understand local laws and taxes before starting this type of business. Offering a wide selection, including local craft beers and regional wines, can help attract a broad customer base.

Handyman or Contractor Services

There’s a constant demand for handyman services in small towns. Many homeowners need help with maintenance tasks, repairs, and home improvement projects. Starting a handyman or contractor service can be a good business idea, especially if you have skills in a specific area, such as plumbing, electrical work, or carpentry. This type of business can grow through word-of-mouth, as satisfied customers recommend your services to their friends and neighbors.

Automotive Repairs

In rural areas or small towns, automotive repair services are a necessity. With fewer public transportation options, residents rely heavily on their personal vehicles. Offering reliable and quality automotive repair services can be a profitable business for small towns. Additionally, there’s potential for related services such as towing, tire changes, and oil changes.

Home Cleaning Services

There’s a steady demand for professional cleaning services in most areas, including small towns. Many people are willing to pay for the convenience of having their homes cleaned professionally. This can be started with relatively low upfront costs, and there’s potential for pairing with other services like yard work or babysitting to increase revenue.

IT and Computer Services

With our increasing reliance on technology, there’s a universal need for technology support. Starting an IT and computer services business can meet this need. This could include everything from repairing computers to setting up networks to offering software support. Plus, this can often be started with low overhead costs, especially if you’re able to work remotely or travel to clients’ locations.

Pet Store, Grooming, and Boarding

If your small town doesn’t have a local pet supply shop, there’s potential demand for pet services. This could include a pet store that sells food and supplies, a grooming salon, or a boarding facility for when pet owners are out of town. There’s also potential for specialization in certain pet services, such as grooming for specific breeds or selling supplies for rare pets.

Salon or Barbershop

A salon or barbershop can serve an underserved demographic in a small town. Whether it’s a traditional barbershop or a salon specializing in the latest hair trends, this can attract a wide range of clients. There’s also potential for niche hair care businesses, such as a salon that specializes in natural or curly hair.

Gas Station

The essential nature of gas stations in communities reliant on cars for transportation makes this a viable business idea. In addition to fuel, gas stations often sell convenience items and have services like car washes that can generate additional revenue. In some areas, gas stations can also generate revenue from lottery and tobacco sales.

Grocery Store

In small towns, there’s potential for a specialized grocery store that doesn’t overspend on a huge inventory. Instead, focusing on a curated selection of products that cater to the local community can be a successful strategy. There’s also potential for a farmers market-style store that sells local produce, or a specialty food store that focuses on organic, gluten-free, or gourmet foods.

Antique or Thrift Store

An antique or thrift store can be a profitable business idea for small towns, especially if you have access to a good supply of items. This could come from local flea markets, junkyards, estate sales, or donations. There’s also potential for specializing in certain areas, such as vintage clothing, furniture, or collectibles.

Fitness Studio or Gym

With a growing interest in fitness and body care, opening a fitness studio or gym can be profitable. This could be a general fitness space that offers a variety of equipment and classes, or a boutique fitness studio that focuses on a specific type of exercise, such as yoga, Pilates, or spinning.

Tutoring Business

A tutoring business can be a great way to help students who need additional help outside of school hours. This could be helping kids with their homework, providing one-on-one tutoring in specific subjects, or offering test prep services. There’s potential for catering to kids at any level, from elementary school up to college.

Ice Cream Shop

An ice cream shop can be a hot-spot for locals and people from surrounding towns, especially during the warmer months. There’s potential for expansion into other sweet treats, like candy, cakes, and even kids birthday parties. Offering a variety of flavors, including some unique or locally-inspired options, can help attract a wide range of customers.

Dry Cleaner

In many areas, there’s a necessity for dry cleaning for certain clothing items. Starting a dry cleaning business can provide a valuable service to small towns, saving them a trip to a larger town or city. Offering additional services, such as alterations or laundry services, can also help attract more customers.

Bookstore

A bookstore can be a great addition to a small town, providing a place for people to browse, relax, and discover new books. There’s potential for cornering a specific market of readers, such as children’s books, mystery novels, or local authors. A bookstore can also serve as a town historical institution and hold events, such as author readings, book clubs, and children’s story times.

FAQs

Which business is best for small towns?

The best business for a small town depends on several factors, including the needs and interests of the local community, the level of competition, and your personal skills and interests. However, some businesses that often do well in small towns include restaurants, bars, grocery stores, and service-based businesses like cleaning services or automotive repairs.

What small town business ideas are most successful?

The most successful small town business ideas are those that meet a need in the market. This could be a little product or service that is in high demand, or a unique business idea that offers something new and different. In a small town, successful business ideas could include a farm-to-table restaurant, a hybrid bar/coffee shop, a specialized grocery store, or a service-based business like a handyman or cleaning service.

What is the cheapest most profitable business to start?

The cheapest most profitable businesses to start are often service-based businesses, as they typically require less upfront investment in inventory and equipment. This could include businesses like cleaning services, lawn care services, or consulting services. However, the profitability of any business will depend on a variety of factors, including the pricing strategy, operating costs, and the level of demand for the product or service.

How to start a business in a small town?

Starting a business in a small town involves several steps. First, you’ll need to conduct market research to understand the needs and interests of the local community. Next, develop a business plan that outlines your business concept, target market, marketing strategy, and financial projections. You’ll also need to secure any necessary funding, obtain the required licenses and permits, and set up your business operations. Finally, launch your business and start marketing to your target audience.

What are some unique business ideas for small towns?

Some unique business ideas for small towns could include a farm-to-table restaurant, a hybrid bar/coffee shop, a pet grooming and boarding service, or a specialized grocery store. Other ideas could include a thrift store, a boutique fitness studio, or a tutoring business. The key is to find a business idea that not only meets a need in the community, but also aligns with your personal interests and skills.

Conclusion

Starting a business in a small town can be rewarding and profitable. By understanding the community’s needs and offering high-quality products or services, businesses like restaurants, hybrid bar/coffee shops, and handyman services can thrive. Don’t let the size of your town limit your entrepreneurial spirit. With creativity, hard work, and a customer-focused approach, you can build a successful business that positively contributes to your community. Take the leap and start your small town business today.

References

Small Business Trends – 72 Small Town Business Ideas

Shopify – 18 Small-Town Business Ideas to Inspire Your Next Venture