You live in a small town and want to start a business, but you need some excellent small-town business ideas, right?
Small towns need new businesses, maybe even more than the big city.
Small local businesses are America’s heart and soul and the local community’s lifeblood.
If you need small-town business ideas, you’re in the right place!
I’m here to share my top list of small-town business ideas, the advantages of starting them in a small town, and some disadvantages.
To start a business, you don’t have a perfect business idea. A business idea is often essential and straightforward in a niche market.
The key is to observe your small town and the town business there. You want to fill a demand that is currently underserved.
As part of your local community, start with what you know and use, and think about what you wish you had or had more of in your small town.
I come from a small-town family that has owned and been wildly successful with multiple businesses. Small-town business is in my blood.
My father’s family owned a small town welding shop for generations, and even though they sold the business, our name is still on the sign-out front, and it remains a profitable business to this day.
My mother’s family owned and operated a small town feed store in a tiny town in California for decades, leading to them living an abundant retirement. It was a small town shop that changed our family for generations.
My husband’s family owned a multi-generation custom home-building business, a car wash, and a septic pumping business.
I’m a firsthand witness that small-town businesses can be hugely successful and provide wealth and abundance to the business owner and their family, not just now but for generations into the future.
What Are the Best Small Town Business Ideas?
Small towns are close-knit communities. A profitable small-town business is about building a small community so they don’t have to rely as much on traveling to a big city to purchase goods and services.
Those who live in small towns rely on one another to make the world go round, and local business owners are often significant contributors to local events.
If you start a business in a small town, you will uplift everyone else around you and improve their life as well as yours. Small-town residents are all about community and successful small-town businesses.
Here is how starting a small-town business will improve the entire community since small businesses are the majority of what fuels America:
- Provide employment and mentorship opportunities
- Provide a service that would otherwise be difficult or expensive to find
- Fill and unmet demand that others will benefit from
With the belief that small-town businesses can change lives and that starting one is possible, I hope you find what you’re looking for on this list and make it your own.
Here, I have used my experience to compile a list of the best small-town business ideas so you can start your own business in your small town.
Welding Business
Welding businesses are necessary in small communities where agriculture and farming may be prevalent. Equipment frequently needs welding repairs.
In addition to agricultural and farming communities, small towns generally have a high need for welding, whether it be dirt bike parts, fencing, or specialty items.
Pros:
- Can be started for under $5,000
- It can be operated out of your home, so overhead is low
- Recurring clients
Cons:
- Requires specialized and skilled labor
Car Wash
Car washes are widespread in rural areas because, typically, these areas have more dirt roads and, therefore, dirtier cars.
It’s also common for people to use car washes to pressure wash off-road vehicles, household items, and many other non-car items.
Pros:
- Hands off management
- No need for employees
- High profit margins
Cons:
- More significant than a $100,000 upfront investment
- Need for a prime location.
- Must purchase material upfront
Food Truck Business
Small towns tend to lack good food. A food truck business is a good option because it frees you up to go to the people. Food trucks have gained popularity over the last few decades, similar to the drive-through coffee shop.
Pros:
- Food trucks are portable, so you can go to where people are
Cons:
- $25,000 or more for startup costs
- Inventory has a short shelf life.
- Must follow strict food handling regulations
Feed Store and Garden Center
Feed stores and garden centers are trendy in small towns, where people tend to keep livestock and grow their gardens.
In small towns, feed stores are expected to double as a clothing boutique where locals can get necessities and workwear.
Pros:
- Can start as a home-based business
- Can create for under $5,000
- Highly popular with a high percentage of the population
Cons:
- Requires space to store inventory or a retail location
Plumbing and Electrical Repair
Everyone needs plumbing and electrical help at some point or another. This is a service people need, so it will remain consistent no matter what the economy is doing.
Pros:
- Can start as a home-based business
- Can create for under $5,000
- A business of necessity
Cons:
- Requires specialized and skilled labor
Custom Home Builder
People in small towns need homes, too, and often, large home builders don’t like to travel too far away from their home base to build a house.
Pros:
- Can start as a home-based business
- Can create for under $5,000
Cons:
- Lots of moving parts and demands from clients
- Requires specialized and skilled labor
- Highly logistical
Landscaping Business/Lawn and Gardening Service
People love to have homes that have curb appeal and bring them joy and happiness, but most people aren’t into doing the physical labor required to have a lovely landscape. Lawn and gardening services are lifesavers for many older people who can no longer do the work and younger generations who don’t have time.
Pros:
- Recurring service clients
- Can start as a home-based business
- Can create for under $5,000
Cons:
- Lots of moving parts and demands from clients
Auto Repair and Tire Business
People need to have their vehicles repaired and maintained. Like Plumbing and Electrical businesses, an auto repair and tire business is necessary. People will appreciate not having to drive extensively to a repair shop.
Pros:
- Recurring clients
- A necessity for the majority of people
Cons:
- Greater than $100,000 upfront investment
- Must carry inventory
Hair Salon
A small town hair salon is the epicenter of all the town’s social life and news. This is a great small-town business idea because everyone needs their hair cut, and it’s typically a service that people would prefer to be in their small community so they don’t have to travel too far.
Pros:
- Highly recurring revenue either in station rent, recurring hair clients, or both
Cons:
- $25,000 minimum initial investment
Graphic Design
Larger companies need graphic design, but so do small local businesses. A logo and signage is crucial for even the smallest of businesses.
It’s important to connect with the local market and surrounding towns. You want to build brand recognition within your local community to become a successful business.
Pros:
- You can start at home.
- Can create for under $5,000
Cons:
- Requires specialized and skilled labor
Photography
Photography is a fun and flexible business choice. There are many different directions you could go with a photography business. Some ideas are pictures of babies, animals, landscapes, families, weddings, or senior portraits. The possibilities are whatever your imagination can dream up!
Pros:
- You can start at home
- Can create for under $5,000
- Meager overhead costs
- Skills necessary are easy to learn and practice
Cons:
- Highly competitive
- Very high customer contact and interaction
Coffee Shop
A coffee shop is an excellent choice because they have gained popularity over the last three decades and continue to pick up steam. You can do a walk-in or drive-through coffee shop; both types are lucrative business choices.
Small towns tend to gather at breakfast restaurants, like the local coffee shop. These establishments are a big part of a small town’s social life.
Pros:
- Fun and laid-back environment
- People love their baristas
- It is fairly simple to have multiple locations.
Cons:
- More significant than a $100,000 upfront investment
- Must have a prime location
- Must carry inventory
- Must have employees
Internet Service Provider/Computer Services
Rural areas need internet, too.
Pros:
- Highly recurring revenue
Cons:
- Specific infrastructure needed
- $25,000 minimum initial investment
Septic Pumping
Rural areas typically have septic systems, and they need maintenance. It may sound like a poopy job, but it’s not too bad, and it’s a highly lucrative business.
Pros:
- Recurring revenue
- Necessary service
- You can start from home.
Cons:
- $25,000 minimum initial investment
- Must have a CDL
- Logistics for dumping and cleaning trucks can be challenging
Tree Farm
You can have a tree farm where you sell to landscapers and homeowners, sell Christmas trees, or sell to the logging industry.
Pros:
- Low-maintenance local business
Cons:
- Acreage is required
- Trees grow very slowly
Mortgage Business
The mortgage business can be highly profitable. People buy homes all the time.
Pros:
- There is a low barrier to entry since you can work for a broker to start.
- High commissions
- Schedule flexibility
Cons:
- Must have proper licensing
- Your own business as a sales position
Real Estate Business
People are always buying and selling homes.
Pros:
- There is a low barrier to entry since you can work for a broker to start
- High commissions
- Schedule flexibility
Cons:
- Must have proper licensing
- Your own business as a sales position
Pet Grooming
Small-town pet grooming is a niche market that can be highly profitable. I know multiple people who support their families in this business, and they love spending time with pets all day.
Pros:
- You can start from home.
- Can create for less than $5,000
- Highly recurring revenue
Cons:
- Pet grooming can be physically demanding
Pet Sitting
Pet sitting has become popular in the last decade through sites like rover.com. It is a perfect business idea for a successful small-town business.
Pros:
- Free to start
- Can work from home
- A perfect side opportunity business idea
- Get to hang out with pets all-day
Cons:
- You will be a rotating door for dogs to be in and out of your home
- Not all pets are well-behaved.
- Clients can be demanding.
Floral and Gift
Every small town needs a floral and gift shop. Small-town residents appreciate popping into a small, local flower shop. Brick-and-mortar stores are a social activity in small cities, allowing people to meet up with others in their small community.
Pros:
- You get to sell happiness
Cons:
- More significant than a $100,000 upfront investment
- It would be best if you carried inventory.
- Flowers have a short shelf life.
Ice Cream Shop
Ice cream shops are another business in the category of being the small town gathering place for the local community.
People love to head to the local ice cream shop after lunch or dinner to satisfy their sweet tooth. You can serve up smiles all day long!
Pros:
- Fun atmosphere
- Recurring revenue opportunity
Cons:
- $25,000 minimum initial investment
- Must hold perishable inventory
Now you have it: my list of top small-town business ideas. These are just my top small-town business ideas; there are millions more that a small town could benefit from.
To expand upon this list more, I would recommend looking at what rural areas need. Large-town business ideas could easily be made into small-town business ideas with minor adjustments.
You know your community better than I do, so observe your small town. There are many options for how to fill a void in your small town.
Brainstorm ideas beyond what is here, and I have no doubt you will develop a relatively inexpensive business idea that will be a tremendous small-town business for your area.
Business ideas abound! You must focus on it and choose something in demand in your area.
It’s much easier to fill a demand than it is to try to create the demand. Use no-nonsense business startup principles and take action daily to reach your goals.
Maybe you have an idea that goes beyond your small town. If you want to branch out and create a more significant business, but perhaps money is an issue, look into these incubator programs for assistance. It’s one way to get the help you need!
Nothing in life worth anything comes easy, but I’m here to help and guide you through things I’ve experienced myself. You can do this for your small town!
