Business in a small town; step-by-step instruction
But how to choose one or another business format that would fit in a particular city? There are no universal recipes here. It will not be possible to do here without studying the market, competitors, analyzing the demand and needs of residents. In the article we will consider the nuances of doing business, possible ideas, and their prospects.
One of the most important success factors is profitability. What does this concept mean? That the entrepreneur will make a profit that exceeds the cost. So what are the features and characteristics of a promising business for a small town?
What to fear?
A small town is significantly different from a metropolis. There people are not so spoiled, they have different expenses and lifestyle in general. If your business idea already exists, then you need to make sure that it does not have the following features:
- The need for highly qualified specialists in a large volume. This is difficult in small towns. It is still possible to find a few people, but not the whole state. Many talented and well-trained people leave to work in large cities in order to have prospects and receive a large salary. Therefore, if a high-tech business in a small town can exist, it is unlikely to be able to meet high quality standards.
- Narrow specialization. The town itself is small, and if you also serve only a narrow group of clients, then it is useless to hope for profit and future prospects. To understand what is the demand for a service or product, it is necessary to compile a client base and conduct surveys. Only then can we conclude whether it is worth opening this business from scratch in a small town, or is it better to find another option.
- Not understandable. Practical experience in the chosen field will greatly increase the chances of success. But even if you are unfamiliar with this business, you can make an effort to study its features and important aspects. Only detailed information will help prevent mistakes in the conduct of business.
The presence of even one of the presented features can cause a business idea to fail.
Benefits of starting a business in a small town
And although business in a small town has many difficulties, it also has significant advantages. These include:
- Amount of starting capital. Regardless of the specifics of the activity, it will be possible to start a business with significantly lower costs than in megacities. This is due to the lower rental cost, low wages of employees. Even on the promotion and advertising of your own business, you can save money. A high-quality service or product will quickly win over consumers, and the news about them will spread throughout the city through word of mouth.
- Ability to work under a well-known brand. Many companies do not have their representative offices or franchisees in small towns, so you can start promoting some well-known products by establishing a distribution network. The conclusion of an agreement on the sole representation of the company in its settlement will prevent the opening of the same points by competitors.
- Ability to serve clients from megalopolises. It is not necessary to provide services only within your city. For example, outsourcing can be remote. At the same time, the level of income may be several times higher, because the costs of doing business will be less than in a metropolis.
Features of doing business in a small town
Before figuring out what kind of business to do in a small town, you need to learn about the specifics of working in such settlements. Any business will require a detailed study of the external environment. You will definitely need to pay attention to the following aspects:
Despite the presence of so many features, it will be easier to open your own business than in a metropolis. Residents are not spoiled by delights, and the variety of goods and services is small.
It is generally accepted that people in megacities have better opportunities for starting a business and career growth compared to the population of small towns. This is generally true, but there are some notable exceptions.
In my opinion, if you live in a small town and are not going to move to the capital, this does not mean at all that you will not be able to organize a successful business within your hometown. Naturally, not every business will be profitable, so planning must be approached very carefully.
Bet on what you know well. This is the best approach to gaining the necessary business experience. An experienced accountant, for example, can open his own office to provide financial and tax accounting services.
Pay attention to what is in constant demand. There are certain niches, the demand for which does not depend on the season or the financial situation of the society. People will always eat, drink, buy clothes, take care of themselves, and visit doctors.
Benefit from the Internet. Not a single successful person today can imagine his life without the Internet, and you can turn this fact in your favor. For example, computer courses or Internet cafes can be quite profitable in small towns.
Characteristics of such a business
The specifics of business in small towns are determined by the specifics of their economic development. Usually, a small town is a city center with a population of no more than 50,000 people. If this is what you live in, you should not reject the idea of starting your own business. You just need to know the main specifics of business in a small town.
So, the main features are as follows:
- A small number of free niches for business.
- A special level of competition. You can defeat competitors due to the high quality of services and goods, but do not forget that certain areas of business in a small city are simply not sufficiently covered by entrepreneurs.
- Limited number of visitors. Most often, such cities cannot boast of an influx of tourists. That is why entrepreneurs are forced to constantly update their business in order to attract customers.
- Low start-up costs. Compared to the regional center, buying / renting premises, supplying goods and finding labor in small towns is several times cheaper.
- Reputation matters. In small towns, rumors spread very quickly. Therefore, even a small scandal can ruin your business very quickly.
Where to start
Business ideas for a small town: TOP-best, relevant and profitable business ideas for a small town
In this article, you will find the best small town business ideas. We have collected 50 of the most relevant and profitable, simple and affordable ideas that can bring good profit. Both a beginner and an experienced entrepreneur will cope with the implementation of each of them.
Experienced businessmen say that the best business in a small town is a funeral home. The difficulty lies in the fact that the market for funeral services is divided between several companies, and it is difficult to get into it. To enter such a business, you need to be assertive and have a starting capital of at least $ 30,000. If all goes well, the bureau will generate $ 10,000 or more in net profit.
Sewing clothes for church ministers
There are functioning churches even in the smallest cities, which allows you to earn money by sewing church clothes. With an optimal combination of price and quality, orders will come from other cities in the region and even neighboring regions.
For an original idea to make money, you need to invest $ 15,000 in its implementation. The monthly profit of the workshop will be $ 5000.
Paving slab production
Considering business ideas for men in a small town, one cannot fail to mention the production of paving slabs. This type of road surface is in demand, so there will be a lot of orders.
The main thing is to analyze the market and make sure that there are no competitors that can "crush" a small business.
Implementation of the idea will require about $ 30,000. The expected net income is $ 7,500 per month.
According to the reports of a number of banks issuing loans for opening small businesses, the most popular area of activity among entrepreneurs is associated with cafes and restaurants.
It is worth noting here that even in large cities like Moscow, Yekaterinburg, Novosibirsk, there is a shortage of such establishments focused on people with an average salary in this region.
In small towns there is a boom and fashion for coffee shops with "coffee to go". Minimum investment and good margin.
As a less troublesome and less profitable alternative - vending (trade through special machines). Minimum participation, the ability to enter the business with a minimum amount. Read more about vending machines.
Useful material: how to invest in business?
Food is something that will always be in demand. So the idea is to open a grocery store.
Given that the birth rate is growing in the country, it will be relevant to open a store of goods for children. Here, by the way, there is a very fast payback and there are ready-made solutions, for example, the HEGEMOTIC franchise.
Since franchising is already mentioned, then take a closer look at the option to open a business according to ready-made and proven schemes. Of the advantages, in addition to simplifying many tasks, it is easier to get a loan from a bank.
Some simple options:
- Key making business.
- Services of a private car instructor, lawyer, accountant.
- Services or courses of a hairdresser, masseur, seamstress.
- Repairs, etc. (mediation is also relevant here).
We know how to open a successful business that brings stable income in a small town. Read our instructions and watch video materials!
For the fastest: fast business ideas in a small town
Features of business in small towns
All the features that exist in the city should be taken into account. Because it is unreasonable to engage in, for example, selling boats in an area where there is not a single reservoir.
Some important points:
- Emphasis should be placed on the area that will be in demand. Let's say that there is no sale of some things in the city, for which residents go to a neighboring city. Therefore, it will be very helpful to open a store with these things. This also applies to entertainment venues or play centers.
- We need to create a pleasant service atmosphere. After all, news spreads quickly in a small city and it is possible to lose your reputation in no time. And this promises the loss of clients, who are already few in a small town.
- Prices should correspond to the salary of an ordinary citizen of the city. This point should be considered first of all.
- Registering a private business in a small city is faster and easier than in a large city.
- Before drawing up a business plan, you should conduct a market analysis. What is bought more, what people need.
- It is better to hire people from the same city for work. It will be cheaper, and the reputation will be on a high step, because to the advice “i. Gali ”is listened to by many.
Still, the main point when starting a business should be to study the sales market, what salaries the residents of the city have, what they need most.
The main differences between starting a business in a big and small city
Differences between business for small and large cities:
- Competition. In big cities, competition is simply indecent, but here the main indicator is population. It also takes into account the location of shops, restaurants and other types of services in the districts of the city. After all, a person will not go for a loaf of bread two kilometers away if it costs 10 rubles cheaper. Another thing is in a small town, if there are already several similar enterprises, then there is a possibility that your business will not be able to compete with already recommended companies. Here you have to either lure prices or service.
- Payback. For big cities this is not a problem. There are a lot of people in demand, respectively, more, and therefore the payback of a product or service is faster. As for small towns, the situation here is slightly different. Often the turnover is less and therefore the payback will take much longer. So, you need to understand that the payback will take some time and, therefore, the net profit will not be immediately.
- Limited. The advantage of a big city is that people are better able to perceive any novelties, and this applies to everything. Starting from food products, new clothing collection, play centers, etc. And residents of small towns are limited in their consumption of various types of services. So, it is better to think about starting a business that will work, and before that it is worth conducting a consumer analysis of the city.
Advantages and Disadvantages
- You must be prepared for the fact that a small number of customers awaits you, since there are few inhabitants in a small town. After all, the client base directly depends on the number of residents.
- Business should be focused on people whose salaries are lower than in big cities. It is clear that the purchasing opportunities will be low, and therefore attention will be given to essential products.
- In order for a business to develop well, it is necessary to look for suitable employees. But the trouble with small towns is that a person who has a higher education tends to go to work in a big city, where opportunities and salaries are greater. Small towns are mostly rich in specialists with low qualifications, which can negatively affect business. So, the personnel staff plays an important role.