What small business can you open in a small town?
There are about 800 small towns in Russia, where up to 65% of the population lives. At the same time, the main economic potential is concentrated in megacities: salaries are much higher here, and finding a job is not a difficult task even for candidates without higher education and an impressive resume.
This situation forces people to move to larger settlements, or look for affordable business ideas from scratch in a small town. The priority areas in this case can be considered the sale of essential goods and the provision of the most demanded services. However, when choosing a particular type of entrepreneurial activity, one must first of all take into account the local specifics, the presence of competitors, the income of consumers, as well as their habits: in the provinces, people usually perceive the latest fashion trends rather conservatively and are wary of the trends popular in megacities.
Most people in Russia smoke regularly: despite all the measures to combat this addiction, 58% of men and 33% of women cannot do without cigarettes. Considering that the average smoker spends 90–150 rubles a day to buy tobacco products, the list of business ideas for a small town should include the opening of a specialized outlet offering customers:
- Cigars and cigarettes;
- Packaged tobacco for hookah and pipes;
- Gas and petrol lighters;
- Pipes, hookahs and coals;
- Mixes for electronic cigarettes.
The main advantage of selling tobacco and cigarettes is that there is no need for licensing: to get started, it is enough to open an individual entrepreneur and draw up a set of documents standard for a retail outlet. However, when choosing what kind of business to do in a small town, the idea of installing a tobacco kiosk should be evaluated critically: due to such accessibility, all suitable places for its placement are quickly occupied by competitors.
The initial investment in the company will not exceed 400 thousand rubles, and 80% of this amount will have to be set aside for the formation of the inventory. These investments can be recouped on average per year: the income of a kiosk selling 100 packs of cigarettes daily with a 15–20% markup will amount to 55,000 rubles per month excluding rent.
Auto repair shop
In order to avoid significant capital investments, this idea for starting a business in a small town at the initial stage can be implemented in a personal garage or in another room with an area of up to 50 m². Of course, in such conditions it is difficult to cover all possible directions, therefore it is better to focus on the most demanded services, including:
- Body repair, straightening and painting;
- Repair of engines and other units;
- Repair of electrical wiring, installation of an alarm;
- Diagnostics and maintenance;
- Tire fitting, balancing, chassis repair.
As an idea of a profitable business in a small town, the creation of a small workshop will require investments of 800-1100 thousand rubles, which will be spent on the purchase of a lift, compressor, diagnostic devices, as well as hand tools - sets of keys, screwdrivers, wrenches , hammers and pullers.
The net profit from servicing one client is on average 800–1300 rubles. Thus, the monthly income of an entrepreneur who has implemented this relevant business idea in a small town can reach 50 thousand rubles.
Today we propose to discuss the following topic: "Profitable business ideas for small towns". We have collected and prepared a complete description of the business model and invite yours to express your opinion in the comments.
best business ideas for beginners with minimal investment
To open your own business, it is not necessary to have millions of capital, if you have the competence, desire and perseverance, then you have every chance to get by with minimal investments. Small business that does not require large investments is becoming more and more popular, especially in the current realities, when crises one after another hit the big players, removing them from the market and clearing the way for newcomers.
A business that requires minimal investment is usually also a quick payback, bringing good profits in the first months. Therefore, before starting, it is worth analyzing the market for goods and services and thinking about what the consumer is missing. It is necessary to make a choice in favor of the most profitable and promising area.
To prevent your business from failing at the very start, you need a competent organization, i.e. business plan. Any project starts with a business plan, and although in itself it is not of great value, the ability to set goals, analyze your actions is very important - any successful company has a plan to achieve its goals. That is why, after analyzing the market, you need to draw up a business plan that will be useful not only to you, but also to your future investors.
In short, for your business idea to generate 100% revenue, it must meet the following requirements:
- be based on what you love;
- be in demand in the market;
- comply with legal and ethical standards;
- contain unique benefits.
About business: Organization costs - 30,000 rubles. Monthly expenses - 10,000 rubles. Profit per client - approx. RUB 10,000 Payback - 1 month.
About business: Organization costs - 50,000 rubles. Monthly expenses - 5,000 rubles. Monthly profit - 30,000 rubles. Payback - 2 months.
About business: Organization costs - 50,000 rubles. Monthly expenses - 5,000 rubles. The monthly profit in the season is 30,000 rubles. Payback - 2 months
About business: Organization costs - 30,000 rubles. Monthly expenses - 3,000 rubles. Monthly profit - 30,000 rubles. Payback - 1 month.
About business: Organization costs - 20,000 rubles. Monthly expenses - 3,000 rubles. Profit per client - about 15,000 rubles. Payback - 1 month.
Starting your own business in a small town is an alternative to working “for an uncle” for a low salary with no prospects. Entrepreneurship combines the opportunity to earn money with self-realization, therefore it attracts young people who want to get more out of life. There are hundreds of business ideas for a small town, so every aspiring entrepreneur can find the best option for his capital.
Features of small towns for business
A small town is a kind of environment, the characteristic features of which greatly influence business. Entrepreneurship in a metropolis with millions of residents is fundamentally different from owning a business in a city of 100,000. When developing a plan for his business, an entrepreneur must take into account these specific characteristics, otherwise he will not achieve success.
The question of which city is considered small is very controversial. There are different approaches. For example, cities where the number of inhabitants does not exceed 50,000 are often considered small. Another position is 100,000.
Another common approach assumes a value of 500,000 (with this option, most Russian cities will fall into this category).
However, for an entrepreneur, it is not the specific number of residents that matters most, but the specific “provincial” characteristics.
Features of small towns affecting business:
- Low incomes of residents. The average salary in the regions does not exceed 30,000 rubles. According to the Trud newspaper, 4.9 million Russians receive a minimum wage (11,280 rubles) and most of them live in the regions. Poor salaries of potential clients hold back the business - people do not buy additional products. Accordingly, the potential for development is limited.
- Low demand. If residents have little money, they will only spend it on essential goods. Modern services such as food and coffee delivery to the office seem redundant to them. The problem is solved in two ways: the entrepreneur either chooses what will definitely be in demand, or conducts a marketing campaign and convinces potential customers that his products are urgently needed.
- The labor market is poorly developed. In a small town, there may be an acute shortage of qualified specialists and people with higher education - they prefer large cities. It will be difficult for a businessman to staff the staff if his business requires special knowledge and skills.
- Lack of goods and services. Residents of small towns often do not have access to modern goods and services. This applies to grocery stores, clothing, beauty salons, beauty parlors, car washes and car services. The entrepreneur who provides access to them will occupy a stable and profitable niche.
- Limited information field. All news spreads very quickly in small towns. This can be a plus for business - word of mouth will advertise better than television and the Internet. However, the disadvantages should not be discounted either: one bad review of a disgruntled client will significantly damage the reputation of a novice businessman.
A small town is a distinctive environment for business development. It cannot be called unambiguously favorable or unambiguously hopeless. It is important to consider all the features when planning a case. Then the aspiring entrepreneur is more likely to create a profitable business.
Relevant business ideas for a small town
In Russia, small businesses are entrepreneurs and legal entities whose number of employees does not exceed 100 people, and whose annual income is below 800 million rubles. Medium business - from 101 to 250 employees, up to 2 billion rubles.
There is a widespread belief that big money is earned in megacities, while provincial businessmen in a small town have much more modest incomes. This is partly true, because there is a large population in megalopolises, and therefore, the demand for certain goods and services is higher. The purchasing power of the population is also higher here. However, this does not mean that the very idea of opening a business in a small town is something meaningless.
Moreover, according to all economic forecasts, small business is the future, therefore, in a small provincial town there is every reason to count on success.
What is typical for a business in a small town, what are its features?
Let's analyze the main differences between businesses in small towns.
Minimum competition and cheap start
On the other hand, the main disadvantage should be taken into account - it is the low purchasing power of the majority of the population. People in the regions do not have much money and first of all they cover basic needs - food, housing, cheap entertainment, clothes, and only then cafes and restaurants.
Further, we note the low, on average, level of qualifications of the workforce. Brains drain first to large cities, and then possibly abroad.
Mentality is an important provincial factor
Well, and finally, another important provincial factor - mentality. In a small town, where half of the residents know each other, reputation sometimes plays a much more important role than in a large regional center. But it all depends on the city.
Main direction - trade
Anyway, 80% of business ideas in small towns are “tied” to trade, and there is a logical explanation for this. If you decide to “enter the same river”, it may make sense to purchase an existing business. In any case, finding an unfilled niche with good demand will not be easy.
A new direction of business in small towns in - property of bankrupts and debtors of bailiffs
Recently, the number of bankruptcies has increased many times, but few know that debtors' property is sold through public auction, where it can often be purchased for a penny.
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What profitable business can you open in a small town? It all depends on your preferences, capabilities, start-up capital. It is best for a beginner to try to gain a foothold in the field of trade. To get started, just open a small food store or a press kiosk. In the service sector, you can also organize a small but profitable business. Small towns often lack the basic services that city dwellers need. For example, dry cleaning, car diagnostics, clothing repair, entertainment center, etc. When choosing a niche for organizing your business in a small town, consider the competition. You should not open another grocery store if there are already several of them in the neighborhood. Analyze correctly what the people in their city lack and give it to them.
There is an opinion among ordinary people that starting a business in a big city is much easier and more promising than in a settlement with a population of no more than 50,000 people. Undoubtedly, in a big city there is more demand, more opportunities, but at the same time, there are many times more problems there.
If you think that small towns are unattractive for starting and developing your own business, then this opinion is wrong. It doesn't matter where you live - you can learn how to make money everywhere and, most importantly,.