What Business To Open In A Small Town: 6 Working Ideas
It is realistic to conduct a successful business in a small town, knowing the nuances of the situation. In these markets, doing business is both easier and more difficult. Easier, since the threshold for entering the market is lower in comparison with large cities. Competition is also lower, there are no large chains with proven logistics, sales and marketing promotion schemes.
At the same time, a small number of the population limits the market itself both in geographic size and in terms of purchasing power. Residents usually have less income and less money to spend. Business expansion is also more difficult – there is not enough market size and potential.
What business to start from scratch in a small town? We analyzed the situation and identified 58 working business ideas for aspiring entrepreneurs. Here are their advantages and disadvantages, so that the reader can draw his own conclusions.
- Clothing Store
- Specialized Store (auto parts, fishing, etc.)
- Pet Store
- Thrift Store
- Grocery Store
- Hardware Store
1. Clothing Store
Clothing stores are always in demand: now clothing is a way of personal expression and demonstration of social status. When opening a business in a small town, you need to correctly draw up an offer – people are more likely to buy clothes of Chinese or Belarusian production in stores of the middle and even lower price segment. Starting a business does not require special knowledge, and when organizing a business, you do not need to obtain permits or licenses.
In a highly competitive environment, the new store will have to be advertised. It is useful to use non-standard, low-cost advertising methods for promotion (word of mouth, etc.), effective at the level of a small settlement.
But the competition and inertia of consumers’ thinking will have to be taken into account – you should not expect big profits during the promotion. An important point is suppliers. Despite their abundance in the market, it can be difficult to find reliable suppliers with suitable prices and conditions.
2. Specialized Store (auto parts, fishing, etc.)
The opening of a highly specialized store will clearly outline its consumer, his needs. This will allow you to better approach the satisfaction of requests and the construction of advertising. Successful development of the store will allow you to gain a foothold in your own niche, create a source of constant income from it.
But you need to remember – for long-term success, you need to have enough competence in this area. Only detailed planning of work, taking into account and anticipating customer requests, will distinguish the auto parts store from other similar places. And advertising will be required – even in small towns there are competitors.
But at the planning stage, you need to carefully assess how profitable the opening of such an object will be, to study the market (what kind of vehicle fleet, people’s income), the geography of the area (are there any reservoirs), etc.
3. Pet Shop
The idea of opening a pet store in Russia is relevant: our fellow citizens love to have pets. Russians are ready to buy food for their pets every month, regardless of income.
In a pet store, you can offer a lot of goods, constantly update the nomenclature, adding new ones to the assortment, attracting customers. A promising business – with the right organization, it will quickly pay off. There is less competition in small towns – there are, of course, pet shops, but the market is not full, open to new participants.
Please note that veterinary drugs must be licensed, which means spending resources. And when organizing a business itself, you need to take into account a lot of mandatory requirements, including for premises for a pet store, especially if you intend to sell pets.
4. Commission Shop
A good idea for a small town business. It can be organized with a small start-up capital if the goods are supplied for sale from individuals. A contract is concluded with them, on the basis of which, after the sale, people are given the due payment.
The main problem at the beginning is where to get the product for sale. You will need to spend a long time searching for products or start interacting with warehouses that give used things for sale. When planning, you should not count on high income. The profitability is low here, especially at the level of a small settlement.
5. Grocery Store
Food products account for almost half of the total turnover in the Russian market. It’s the same in small towns – the demand for food is high and growing predictably. The need for food is a basic one that must be satisfied constantly.
The plus of opening a grocery store at the small town level is that you can start at a fairly low cost without investing in a large facility. Often there are no large networks there, and the competition is easier. Opening a self-service supermarket or even a counter-type store is also fine.
It is not a problem to find wholesalers – now this market is well developed, companies offer good service and conditions for creating an assortment matrix. You need to be ready for constant work on the purchase, acceptance and storage of inventory. For large volumes, an automated accounting program will be required. Personnel will be required, although it is not difficult to find them at the level of a small town where there is a need for work. However, you need to learn how to control workers.
6. Hardware Store
Unlike a grocery store, where you will need to obtain permits and monitor quality, in a hardware store it is much easier in this regard.
Household demand for household goods is consistently high. With the organization of the correct work, you can start working with small wholesalers. There are several options for opening a store, and the opening of a large self-service store will become a feature for a small town, attracting residents to itself. Naturally, at reasonable prices and a rich offer.
One must remember about competition, both direct and indirect. There are already several hardware stores operating in the market of even a small town, and household goods are also sold in fairly large grocery stores. The proposal must be approached thoughtfully, minimizing the hit on the shelves of “dead” goods that will be on sale for a long time.