What business is profitable to do in a small town
Setting up a business in a small town is often more difficult than in a metropolis. A novice merchant needs to take into account the specifics of work in a small settlement. How to choose a business direction? What to consider to withstand the competition? What benefits can you expect? Answers to these and other questions, as well as fresh ideas for business in a small town - in our article.
Business specifics in the province
In a small town for 52 thousand inhabitants, the "Kitchens to order" salon was opened. The first months there were many clients, the investment paid off, but a year later the company turned out to be unprofitable and went bankrupt.
Why did this happen? Perhaps the entrepreneur did not take into account the specifics of doing business in a small town. Families looking for a custom-sized headset purchased one in the first months of the salon's operation.
Others go to order kitchens in the regional center or buy inexpensive serial furniture.
To open a business and not go bankrupt, take into account the peculiarities of a small town:
- Low purchasing power. Salaries in the province are low, so essential goods and services are in demand.
- Low level of competition. There are two reasons for this: either local entrepreneurs have lost sight of a promising direction, or the products are not in demand among the population of a provincial town.
- Minimum expenses for opening and maintaining a business in a small town. Renting and advertising are cheaper than in large settlements. The level of staff salaries is also low.
- Lack of qualified personnel. Highly qualified specialists see no growth prospects in a small town and leave the provinces.
- Rapid dissemination of information (word of mouth). In a small town, word of your company spreads instantly. If you pay attention to the quality of service and service, you will quickly gain a good reputation and increase the flow of customers.
In addition to general rules, you need to take into account other features: proximity / distance from the regional center, local traditions and established habits of residents.
Do not forget about the opportunity to devote more time to business, transferring some of the routine functions to outsourcing.
Choosing a business area and market niche in a small town
Choosing a direction for small businesses in a small town, follow the same rules as everywhere:
- Income. Activities that meet the needs of people will make money faster.
- Professionalism. It is easier to develop a direction in which the entrepreneur is an expert.
- Interest. A business that does not give the owner pleasure is more likely to fail.
Successful business lies at the intersection of three areas
Self-employment is now at its peak. Why work for someone if you can do it for yourself. You can open your own business not only in large cities, but also in small settlements. There are interesting and profitable business ideas for a small town with minimal investment. However, before opening your own company, you need to familiarize yourself with some important nuances.
Features of starting a business in a small town
First of all, it is necessary to pay attention to the state of the economy in the settlement, namely the financial situation of its inhabitants. Typically, salaries in small towns are lower than in metropolitan areas, and most people work in one city-forming enterprise. Therefore, it makes no sense to open some kind of extravagant business with expensive goods or services. For example, boutique, beauty salon or luxury fitness center, etc. For this, people simply will not have the money.
A store with inexpensive clothes from China, on the other hand, will be in demand. In the provinces, such things are often lacking, and people want to look beautiful at an affordable cost. You can also open a retail outlet with scarce products, household goods, etc. Additionally, catalogs can be made so that people can order products of interest.
Geographic location is important. For example, in the northern regions there will be no demand for a point selling beach umbrellas, and in the southern regions - with felt boots.
It is necessary to take into account the availability of personnel. If you are going to open a complex production, take into account that there may not be highly specialized specialists in a small settlement. And not everyone will agree to come to work in the province if you want to invite personnel.
Please note that business growth in small towns is limited. This means that when the level of profit reaches a certain "ceiling", development will stop. You won't be able to earn more. It will be necessary to raise the average amount of a check (which may scare off some customers) or open new points in neighboring settlements, master related industries, and sign a franchise agreement.
When starting your own business, do not forget that news in small towns spreads like word of mouth. This can be good for you: you don't have to spend money on advertising. But also harm at the slightest mistake. If someone speaks badly about the outlet or its owner, you can lose all customers.
If you approach business wisely, take into account all these nuances, analyze the market, the business will bring not only income, but also the pleasure of doing it.
Where to start, market and niche analysis
You can't just open a business without drawing up an action plan. Without it, any project will simply burn out.
Choice of direction and analysis of competition
Small town business ideas
How to choose an idea for a small town?
The word "business" often gives rise to a certain image in my head: a respectable man in a business suit leaves the office of an international corporation. At the same time, the office is certainly located somewhere in a skyscraper in the very center of the metropolis.
However, we all know that businessmen can look whatever they want, and business has a place not only in millionaires, but also in small towns. And you can run your business in the regional center no less successfully than in Moscow.
It is only necessary to take into account some peculiarities of small towns. If you are just about to open your own business in one of these settlements and are looking for a business idea for it, this article is for you.
When opening a business in a small town, it is important to take into account its peculiarities. As a rule, they are about the same, regardless of whether it is a resort town in the south or a small northern settlement.
There is no consensus about which city is considered small. As a rule, small towns include those where the population does not exceed 50 thousand people. But businessmen often call cities with a population of 500 thousand people small.
The main thing that makes it possible to classify cities as small is the state and peculiarities of the economy. What are they?
The first thing worth paying attention to is the welfare of the residents. In small towns, as a rule, there is little work; often a large proportion of residents work in one city-forming enterprise. This allows business owners to set small wages. Therefore, the incomes of the population in such towns are often low. Although, of course, there are exceptions to this rule.
The second important factor is the mentality of city residents.
President of the Interregional Public Organization for the Protection and Support of Small and Medium Business "Business People"