How profitable to open a business in a small town
Such a question as a business idea for a small town worries a large number of people in any country of the world, including ours.
If no more than 100,000 people live in a settlement, then it is considered not a very suitable place for entrepreneurial activity, since there are great chances simply not to find your client or buyer. Small towns usually have modest average wages, a shortage of active population, and this casts doubt on even the most sensible plans and calculations.
But not everything is as sad as it might seem at first glance. If you approach business wisely and show some skill, which is simply a must for an entrepreneur, then even in settlements with a population of 20, 30 or 60,000 people, you can find your niche and earn good money.
Features of doing business in small towns
Of the minuses, it's worth noting:
- A small number of people cannot create a truly large demand for even the highest quality products. The question of what to trade is very acute here. New cars will often not be bought from you.
- Limited partnerships. If a person plans to produce something, create something, then for components and materials he will have to travel distant lands, which increases costs.
- It is necessary to correctly calculate the quantity of the offered goods. If, for example, these are agricultural products, then they may deteriorate over time, so it is important to provide how much production, how much the local market can absorb.
Of the pluses, the following points can be noted:
- A small town is a minimum of competitors and possible problems with industry giants. Here, even a product of mediocre quality can be quite in demand.
- It will not be so expensive to organize production - renting premises will not require large investments, modest salaries for employees will also play into the hands of an entrepreneur.
Considering this, you can protect yourself as much as possible and protect yourself from the rapid collapse of even the most productive ideas.
What kind of business to do in a small town
Obviously, it is not worth organizing a car factory in a town for 40,000 inhabitants, just like opening a company to organize flights to the moon.
The most cost-effective business will be one that targets the majority or a significant portion of the population.
There is no need to invent something exotic - a traditional type of activity can bring maximum benefits. Residents of the capital and large metropolitan areas are satiated with an abundance of offers around, but in a small settlement everything is different - even a simple good grocery store with products familiar to everyone or an experienced master tiler can have a constant demand for their activities.
In a small town, you can also successfully run your business and flourish. But you can also burn out or just earn nothing. Moreover, everything depends not only on the will of chance, but also on yourself. How you run your business, what direction you choose, how you organize your business - all this is of great importance.
Let's take a closer look at what the pitfalls of our business are, what benefits can be found and how to organize everything.
Pros and cons of small business in a small town
Before starting your own business, you need to really assess the situation and think it over well. The pros of running your own business in a small town are as follows:
- Absence of competitors (or a small number of them). If you have carefully selected the field of activity for yourself, then you may face the fact that no one else is doing this in your city.
- Ensuring no future competitors. This option is possible if you decide to start selling the products of a well-known company, which does not yet have a representative office in your city. You should sign an exclusive supply agreement, and then you will be protected from the appearance of competitors.
- Rental prices. Whatever you decide to do, in any case in a small town it will cost you much cheaper than in a metropolis. This includes the price of renting premises, salaries of employees and even advertising your business. It will be enough for you to fulfill one or two orders with high quality, and people will know about you. If you are engaged in trade, then you should trade in high-quality and not very expensive goods - then customers will advise their friends and acquaintances to visit your store.
Disadvantages of starting a similar business:
- Fewer clients. Since the population of your town is small, there will be fewer people who need your services.
- Small income level of the population. In smaller cities, salaries are much lower, which means that people are ready to spend less money.
- Lack of qualified personnel. A situation may arise that there are no specialists in the city who are guided by your chosen niche. Or else your competitors have already got them.
- Word of mouth can work not only in your favor, but also against you. If you are punctured once (you sold a poor-quality product, did not complete the order well or did not meet its deadlines), word of this can quickly spread throughout the city. Then you will get a bad reputation, which you absolutely don't need.
Other nuances of starting a business
Before starting your own business, you need to think carefully about its details and take into account the following nuances:
- your business should not require recruiting first-class specialists, as this may cause problems;
- make sure that your business will be in some demand in your area. Otherwise, there is no point in opening it;
- creating your own business, you must be 100% confident in your abilities. If later you can change your mind and close the business because of the difficulties that have arisen, then in a small town it will become public. And then it will be much more difficult for you to open another business - people will not be able to trust you.
What to start from when choosing a field of activity
When choosing what you will do, you need to consider the following factors:
- Your experience in this area. It doesn't matter if you work yourself or hire staff - in any case, you should be well versed in your chosen business and be able to train employees.
- You have an interest in the business. If there is no such interest, then there is no point in doing this.
- Demand for your services in the selected area. Even if you organize everything at the highest level, buy a high-quality product, order a chic signboard and perfectly educate your staff, the local population will not feel the need for your goods - you should not expect much profit.
- Your willingness to devote most of your time to business. By opening a store and hiring a salesperson, you still have to pay attention to the case.
What are the differences between small businesses in big and small cities
In a small city compared to a large metropolis, the following features for doing business:
- Limited sales market or the need to spend money on logistics and deliver products to the end consumer in other settlements;
- Absence of any barriers to starting a business and a minimum of competitors, but underdeveloped market demand and low purchasing power of the population;
- Cheap labor, but at the same time difficulties in finding highly qualified specialists without flaws;
- Low costs of organizing production - lower rental rates , more free commercial space, more affordable repairs, less pathos and the need for extra costs;
- Cheap local raw materials, but expensive imported resources due to transportation costs;
- Availability of development incentives business and support from all kinds of official authorities;
- High value of reputation - mistakes are not forgotten here and it is difficult to find new clients.
If in a large district or regional center, in order to create your own business, significant start-up costs are required (after all, space, advertising, and personnel are expensive), then in a city with a small population this contribution can be minimized required to start a business.
Yes, in a small town there are fewer opportunities and not every idea is suitable for implementation in such a limited space, but the owner of the company will be able to easily manage all the processes and not lose control over his enterprise. Here and the scale is not the same. You can handle all the responsibilities of a family contract and not hire outsiders.
What kind of business you can open in a small town
Of course, you can open another store, as others do, but it is better to pick up the idea that no one else has used in your city before you. What is suitable for implementation within a small town:
Many options can be selected and determined which business can be opened in your small town, looking at the experience of neighboring regions, for example, on the Avito website.
As an example, we can cite an entrepreneur from a small seaside town, who at the beginning of his activity acquired an inflatable slide and now - after 4 beach seasons - there are more than two dozen children's sea attractions on the coast throughout the region and even a water slide. slide for adults. All of them are in demand and there is no end of vacationers in the summer months. The business is seasonal but profitable. It is fortunate that not only residents of a small town choose this vacation spot, but everyone comes here from large centers.
There is another example of success. A small private bakery started in a home kitchen with delivery to a nearby stall, three years have passed and now it provides not only all retail outlets in the city with fresh baked goods, but also supplies bakery products outside the district.
In the subsidized area, almost all loggers exported timber outside the region, and one of the sawmills decided not only to produce boards, but also to open a carpentry shop on its territory. Already in the first year of operation, the workshop was provided with orders for a long time - they make country and home furniture from natural wood, make souvenirs and make gazebos.
How to positively use the conditions of small towns for small business development
You live in a small town and want to start your own business, but don't know where to start? In fact, everything is not as scary as many used to think. It is important to know some of the features of provincial cities, to take them into account when choosing your business.
In small towns, there is often a shortage of basic goods and services. For example, an inexpensive café with delicious food will be popular with locals. But the turnover in an unusual boutique with handmade designer clothes is unlikely to become high. Therefore, we advise you to initially focus on the needs of future buyers.
Features of small towns for starting a small business
Pros of starting a business in a small town
There are many positive aspects to business development in the provinces that may not exist in a large city.
- An opportunity to occupy a free niche. You can become the first in your industry, or identify the weaknesses of your competitors and build on them profitably.
- Savings on basic costs. In small towns, the rent of premises or land is much lower than in a metropolis. Staff salaries can also be calculated according to local rate scales.
- Support for private businesses. Small towns often have various loyalty programs for new businesses, grants and concessional subsidies.
- Easy understanding of customer needs. When all clients are literally in sight, it is not too difficult to understand their requests
Best Small Town Business: Ideas That Work
You don't have to come up with a mega-unique idea that no one else has implemented before. But detach yourself from competitors in the service. For example, free shipping or a cumulative bonus system.
We need to focus on the needs of the majority of the city's population. In this case, you will not work at a loss.
It might be worth looking into the complementary business. For example, the area has a great butcher's shop, but lacks farm dairy products. In this case, you can easily occupy your niche.
And we offer you a large catalog of business ideas for small towns! More than 150 options for the development of your business. Explore, apply and discover what you like!
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