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Starting a business in a small town can be incredibly rewarding. It offers unique opportunities to serve a close-knit community while enjoying lower overhead costs compared to big cities. Small towns often have niche markets and demand for personalized services that larger urban areas might overlook.
Whether you’re interested in retail, services, or food, the potential for growth and community impact is significant. Explore these business ideas to find the perfect fit for your small-town venture.
Here Are Some Small Town Businesses Ideas
Exploring business opportunities in a small town can be incredibly rewarding. With a close-knit community and unique local needs, there are countless ways to start a successful venture. Here are some innovative business ideas tailored to thrive in small towns.
Restaurants
Whether it’s a diner, fine dining establishment, or something in between, a successful small-town restaurant focuses on offering what people want but still need to get.
Instead of replicating a popular local spot, consider filling a gap by catering to a need or desire that isn’t currently met in the area. This could even attract visitors from nearby towns. For example, a farm-to-table restaurant can be a great idea for a small town, but if the area needs to be more agriculturally rich or already has such a restaurant, think of alternatives.
Reflect on what your family enjoys when dining out of town. Perhaps it’s the elegance of a fine meal or the unique taste of New York-style pizza. There’s a demand for something new in your town. Your task is to discover what locals crave and would love to eat.
Hybrid Bar
Boost business by serving popular beverages throughout the day with a hybrid bar/coffee shop. If coffee shops aren’t common in your town, offering coffee at a popular spot like a bar can gradually normalize the activity and attract crossover customers.
While a small-town bar might be your dream, a coffee shop can generate revenue starting at sunrise. There’s no need to choose between the two, create an environment that works for both day and night to maximize your business potential.
Handyman or Contractor
A reliable handyman is always in demand, even in small towns. If you often get calls from friends, family, and neighbors to fix a leaky pipe or repair a wobbly board, you could be on your way to starting a successful small-town business.
If you already do odd jobs and have a sense of who will hire you, starting a contractor service can be straightforward. If people are unfamiliar with your work, connect with a general contractor who might give you small projects and refer you to future clients.
In service work like repairs and construction, word-of-mouth recommendations from those who know your work can be your best advertising.
Automotive Repairs
In rural areas and small towns, owning a car is almost a necessity, but being far from a dealership can make routine maintenance a hassle. Auto repair services meet an obvious need in small towns, making life more convenient for locals.
Consider whether there’s an opportunity in your town to open an auto repair shop. Since cars can break down anywhere, and tow trucks often charge by the mile, starting a towing service could be a viable business even without a repair shop, especially if your town is situated between major cities.
Home Cleaning
Not everyone enjoys cleaning, and it’s likely that some of these people live in your town. Starting a cleaning business could cater to their needs. This service benefits from word-of-mouth referrals and can be paired with other services like babysitting or yard work.
Expert cleaning is a valuable skill that doesn’t require significant investment in courses or certifications, making it a great option if you’re looking for a low-overhead side hustle.
Health Clinic
Opening a health clinic in a small town can be a highly profitable venture, especially if the town currently lacks such a facility. Although this idea requires significant funding and specific resources, the demand for nearby healthcare services is undeniable, particularly during cold and flu season.
When people are sick, they prefer to seek medical care close to home rather than traveling long distances. A local health clinic can meet this essential need, making it a vital and lucrative business.
Bakery
A small-town bakery can become a beloved community staple, offering residents delicious cookies, cakes, croissants, and more. If you have a knack for baking or can partner with someone who does, starting a bakery might be the ideal small-town business for you.
A bakery can cater to the town’s sweet cravings and provide quick breakfast options like pastries and coffee. You can create specialty desserts for events and parties. This business has the potential to thrive, especially if there isn’t already a bakery in your town, and it’s less complex to manage than a full-service restaurant.
Tattoo & Piercing Shop
Among the small-town business ideas, opening a tattoo and piercing shop is unique. However, its distinctiveness could be a significant advantage. Establishing such a shop will require hiring qualified employees and obtaining the necessary permits, but it can be a profitable venture, especially if it’s the only one in the community.
This type of shop can be very fulfilling for those with a business mindset and a creative streak. However, you’ll need a storefront, equipment, and effective marketing, so ensure you have the required funds to get started.
Veterinary Office
If you’re a veterinarian or know one seeking to start a practice, opening a veterinary office in your small town could be an excellent business opportunity.
This venture requires licenses, permits, and a skilled team, but with adequate funding and dedication, it can become the go-to place for local pet owners. Families need a convenient, reliable place for their pets’ annual checkups and emergencies, making proximity essential. A well-established local veterinary office can fulfill this critical need and thrive.
Food Truck
Why limit yourself to one location when you can take your culinary skills on the road? Starting a food truck allows you to travel and serve multiple towns in your area. Food trucks are ideal for events like parties, graduations, and town festivals.
By offering a variety of affordable, delicious food, you can tap into a specific market without the extensive time, resources, and financial investment required to run a traditional restaurant.
Hardware Store
Even if your town has a grocery store, residents will likely need a specialized place for home maintenance supplies, avoiding the wait for online deliveries. A hardware store can fulfill various needs, from painting to gardening to pool maintenance. It’s an excellent business idea for those inclined toward fixing or building things, as the demand for maintenance and repair services is constant.
Catering Company
If you have a passion for food and cooking but seek more flexibility than a traditional restaurant offers, consider starting a catering company. Although catering may target a niche market, word-of-mouth referrals and working at town events can help grow your reputation and business.
Catering services are valuable for individuals hosting parties and can extend to neighboring towns, providing a broad customer base.
Real Estate Agency
When people in your town need to buy or sell property, who do they turn to? If you start your own real estate business, the answer could be you. Even in small towns, there’s a steady demand for real estate services.
A local agent with knowledge of the area and market can become an essential resource. As your business grows, you can expand into neighboring towns, serving a wider market and enhancing your operations.
Event Venue & Planner
People always have reasons to celebrate, from small gatherings to large events. Consider opening an event venue and planning business to meet this need in your town. An event venue can cater to various occasions, attracting clients from your town and nearby areas.
Offering event planning services alongside the venue can expand your customer base and allow you to provide planning services for events held at other locations, further growing your business.
Photography
There’ll always be a demand for creative professionals, particularly photographers. People often seek professional photographers for events like weddings, engagements, and graduations.
There is a need for portrait and family studio photography. If your town lacks a dedicated photography business, this could be a great opportunity, especially if you have a creative background.
While photography equipment can be expensive, you can minimize costs by starting with the essentials and focusing on your local market. Offering services like school photos, especially for high school seniors, can provide a steady stream of business.
Clothing Boutique
Everyone needs clothes, and despite the rise of online shopping, there’s still a desire to try on clothing in person. If your town doesn’t have a large clothing store, consider opening a small boutique.
You can explore various avenues, from a T-shirt business to unique, locally-made items. Depending on your town’s location, your boutique can cater to both locals and visitors or tourists from nearby areas.
Daycare
If you have experience in teaching or childcare, starting a daycare could be an excellent small-town business idea. Working parents always need reliable childcare services, especially for children not yet of school age and for after-school hours.
A local daycare offers convenience, allowing parents to drop off their kids before work and pick them up afterward. If your town currently lacks daycare services, this business can easily become a sustainable venture.
Brewery or Winery
Although opening a brewery or winery requires significant research and investment, it can be a highly successful business in a small town. Breweries and wineries can serve as community gathering spots, offering not only drinks but also venues for events and social gatherings, particularly if you have outdoor space for warmer weather.
The popularity of small-town breweries and wineries has grown in recent years, presenting opportunities for growth and development despite the initial investment.
Floral Shop
Flowers make a perfect gift for any occasion, from Valentine’s Day and graduations to “get well” wishes. If your town lacks a floral shop, this could be the ideal small business for you. Flowers are versatile, not only for gifts but also for events like local proms, weddings, and simply brightening up a home.
While you may need to learn flower sourcing and arrangement, this business doesn’t require costly machinery, long hours, or a large staff. A floral shop can meet a local need without the complexities that come with some other businesses.
Gardening & Landscaping
Similar to cleaning services, gardening and landscaping are tasks that many people either don’t enjoy or don’t feel skilled at, and will pay someone else to handle. While related to a floral shop in terms of industry, a landscaping business meets a different small-town need and can be equally popular.
This service can appeal to a wide range of residents, particularly during warm weather, and is especially useful in communities with lawn care requirements.
Like handyman services, word-of-mouth recommendations can drive success for gardening and landscaping businesses. If your town currently has a gap in this market, starting a landscaping business could be highly profitable.
Nail Salon & Spa
If your small town already has hair salons and barbershops, a nail salon and spa could be the next personal care business to explore. This business meets a different need and can attract significant clientele, especially during warmer months with local graduations, proms, and weddings.
Compared to some other small-town business ideas, a nail salon and spa might require more staff and supplies, but it can still be a sustainable venture, particularly if there are no existing nail or spa services in your area.
Ice Cream Shop
Food-related businesses can be highly popular in small towns. If running a full-fledged restaurant seems overwhelming, consider opening an ice cream shop. These shops can become hot spots for locals and visitors from surrounding areas, especially in warm weather.
If your town lacks a dessert-focused business, an ice cream shop is worth considering. You can start with ice cream and later expand into selling candy, cakes, or even hosting kids’ birthday parties.
Dry Cleaner
Dry cleaning is often a necessity for items like suits, dresses, and jackets. If your town lacks a dry cleaner, this could be a great small-town business idea. A local dry cleaner would be convenient for residents, especially those who commute to the city for work and need professional attire.
Offering dry cleaning services means providing a valuable convenience without requiring residents to travel far.
Bookstore
Despite the dominance of online retailers like Amazon, a local bookstore can thrive in a small town by catering to a specific market of readers.
Besides selling books, your bookstore could host local author readings, serve as a historical institution, and even incorporate TV and film events. A bookstore can be a place for reflection, discussion, and community gathering, filling a niche that online stores can’t match.
Bed & Breakfast
Visitors will always come to town, whether they’re family for the holidays or tourists passing through. A bed and breakfast can serve a variety of clientele, operate year-round, and doesn’t require a large space or staff.
Located near a major highway or city, a quaint and affordable bed and breakfast can appeal to visitors and locals looking for a weekend getaway.
Floral Shop
Flowers are a popular gift for holidays and events like Valentine’s Day, graduations, and “get well” occasions. If your town lacks a floral shop, this could be an excellent business opportunity. Flowers are versatile and needed for events such as proms, weddings, and simple home decor.
While you might need to learn flower sourcing and arrangement, this business doesn’t require expensive machinery or large staff. A floral shop can meet local needs with fewer complications than some other businesses.
Gardening & Landscaping
Gardening and landscaping are services many people prefer to outsource. Starting a landscaping business can meet a different kind of need compared to a floral shop but can be just as popular.
Especially in warm weather, gardening and landscaping services are in demand, particularly in communities with lawn requirements. Recommendations and word-of-mouth can drive success in this business, especially if there’s a current gap in the market.
Tutoring Business
Every town has children who need to go to school, and many of these students require additional help outside of school hours. A tutoring business can be beneficial for both children and parents.
If you’re seeking a small-town business idea that allows you to give back to the community and foster growth, consider starting a tutoring service. You can cater to students at any level, elementary, high school, or college prep.
Choose a subject you’re knowledgeable and passionate about, and it’s easy to connect with kids who need help. This small-town business idea is also an excellent option for parents with a large network of families in the area.
Drugstore
Opening a drugstore or pharmacy involves significant preparation, such as hiring a pharmacist, obtaining insurance, and implementing security measures. However, if your town lacks a local pharmacy, it could be a prime opportunity to establish a vital, long-lasting business.
This idea is suitable for trained pharmacists or those involved in the local medical profession. A pharmacy is essential in every community, but be mindful of the competition from large chain drug stores if you choose to open an independent one.
Antique or Thrift Store
In touristy areas, quaint gift shops can profit from finds at local flea markets, junkyards, and estate sales. While turnover for an antique store might be slow, your inventory doesn’t expire or require much upkeep. If your town already has several such shops, consider specializing in retail consignment, second-hand clothing, or artwork from local craftspeople to stand out.
Fitness Studio or Gym
With the growing interest in fitness and health, a fitness studio or gym could be a fantastic small-town business idea. If you believe there are fitness enthusiasts in your town, consider opening a fitness studio or gym.
You could focus on a boutique fitness theme or offer a general fitness space for the community. While this business idea requires significant initial investment, particularly in gym equipment, attracting early members can help you quickly recoup these costs, especially if you dominate the local fitness market.
Gas Station
While they may not be the most glamorous enterprises, gas stations are essential in communities where cars and trucks are the primary modes of transportation.
Small towns located near major highways can attract substantial through-traffic, making gas stations highly profitable. Sales of lottery tickets and tobacco products can generate significant revenue, especially if you’re the only vendor in the area.
Grocery Store
When a town lacks a grocery store despite the potential to sustain one, there’s often a specific reason: perhaps most residents commute and shop elsewhere, or the population needs to be bigger to support a big-box chain.
If you’re considering opening an independent grocery store (rather than a franchise), consider specializing to save money on a vast inventory. Use local products, trends, and tastes to guide your offerings.
In agricultural areas, stores resembling farmers’ markets that carry local produce and seasonal goods are usually popular with locals and tourists. A town that already has a major chain grocery store but lacks options for organic, local, gluten-free, or vegan products would be an ideal location for a specialty food store.
Handyman or Contractor
A reliable handyman is always in demand, even in small towns. If you often receive calls from friends, family, and neighbors to fix a leaky pipe or repair a wobbly board, you might be ready to start a successful small-town business.
Launching a contractor service can be straightforward if you already do odd jobs and have a potential client base. If people are still getting familiar with your work, try collaborating with a general contractor who will give you small projects and pass on your name to future clients. Word-of-mouth referrals from those who know your work are invaluable in the service industry.
Automotive Repairs
Owning a car is almost a necessity in rural areas or small towns, but finding convenient auto repair services can be challenging. Opening an auto repair shop can fill this vital need, making life easier for locals.
You might also consider starting a towing service if your town is between major cities. Towing fees per mile can be high, and a towing service can provide an additional revenue stream even without a full-fledged repair shop.
Home Cleaning
Only some enjoy cleaning, and there’s likely a market for home cleaning services in your town. Starting a cleaning business is an excellent idea, especially since it relies heavily on word-of-mouth referrals and can be paired with other services like babysitting or yard work.
Professional cleaning is a valuable skill that doesn’t require extensive investment in courses or certifications, making it a great low-overhead side hustle.
IT & Computer Services
Technology support is essential for businesses and individuals, regardless of location. Even in small towns, people use technology and often need help with issues like WiFi connectivity. Although this business might require more advertising due to its less visible nature, it doesn’t need much equipment if you’re not doing major repairs, keeping overhead costs low.
Pet Store, Grooming, & Boarding
Opening a pet store is an excellent idea if your town needs a local supply shop or a large chain like PetSmart or PetCo. Depending on the local pet population, there might also be a demand for grooming and boarding services.
If you want to start a pet-related business, ask local pet owners where they currently get their supplies and grooming services. You can also speak with an existing pet shop owner to explore offering additional services like grooming, walking, or boarding.
Salon or Barbershop
Most towns have at least one barbershop or salon, which can be advantageous if you’re looking to open a new hair salon. Identify underserved demographics. For instance, if there’s only a barbershop catering mainly to men, consider addressing the hair care needs of women or children.
If your town already has full-service salons and barbershops, think about niche markets such as a blow-out bar or a salon offering makeup, eyelash extensions, tanning services, and hair care.
Cell Phone Store
The demand for technology repair services is on the rise as more people depend on their phones and computers for work and entertainment.
There are often fewer service providers in small towns, resulting in less competition for phone and computer repair businesses.
Offering additional services such as maintenance, software installation, data recovery, and cybersecurity can help you appeal to a wider customer base.
