How to Start a Small Town Business in 5 Steps

There are many types of entrepreneurs. There are many types of entrepreneurs. Some people are drawn to a company because they have a passion for the work, others are born into it. Others are motivated by solving a problem in the market. How can you ensure you start a successful business in small-town areas?

How to Start a Small Town Business in 5 Steps

Step 1: Create your list

It is easy to find a gap in a small community by simply doing a Google search and then taking a walk.

You can simply walk around if you live in a town. Look around at the offerings of local businesses. Pay attention to what you see and consider the possibility of finding something you like.

Spend a weekend if you don’t reside in the area but are interested. Spend some time in the area and ask yourself the same question: Where would you like to go?

You might find restaurants, a hardware shop, and a beauty salon, but what other business would you be interested to have there? What business would be most likely to attract people from a large city if a town has a direct connection to the transit system? Is it near natural resources that people don’t know about?

Are there mountains, rivers, lakes, or hiking trails? What could be a potential business if you had a train link from the city to hiking trails? There may be many urbanites who want to hike but don’t have the time or desire to transport their gear on trains. Perhaps an equipment rental shop could rent all their equipment or a guide service might be a viable business idea.

You might find restaurants, a hardware shop, and a beauty salon, but what other business would you be interested to have there? What business would be most likely to attract people from a large city if a town has a direct connection to the transit system? Is it near natural resources that people don’t know about?

Are there mountains, rivers, lakes, or hiking trails? What could be a potential business if you had a train link from the city to hiking trails? There may be many urbanites who want to hike but don’t have the time or desire to transport their gear on trains. Perhaps an equipment rental shop could rent all their equipment or a guide service might be viable business idea.
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Step 2: Collect a list of people

You have now got your list. But that’s only one perspective. This brings us to the next step. Ask the town about its needs. Ask the residents of the town about their needs and what they wish they had. Are they able to travel far to get to the dry cleaner, to enjoy certain entertainment, or to go to the gym? Ask as many people as possible.

Spend a few hours looking for high-traffic areas in your town. Record the answers and ask questions. Ask local people, ask businesses, and ask anyone you like. You will soon hear the same ideas repeated.

The local Chamber of Commerce is a great place to start your search. Local chambers of commerce are likely to keep a close eye on business ideas. They will not only keep a close eye on businesses but they will also be able to connect with you as the business process progresses. This is a bonus point.

Bonus: Asking a lot of questions will help you to build connections and make it easier to get your business started.

You will have a list of businesses you have created, as well as a list that others have mentioned. Now it’s time for you to compare them. There will be some overlaps from the tests.

Step 3: Identifying the best gap for you

Is there a business on the list that makes sense to you? Are there any gaps that made you realize that “Wow, that’s all I need”?

Example: Have you ever worked in a bakery. What about a pastry shop? Both for retail and production. Are you a baker? Are you able to create your own recipes? Are you a baker? Have you started a baking club?

Is it time for a bakery to be opened? You might think so, but it may not be. The question is: Is that something you really want to do?

It’s okay to know that you don’t want to open your own bakery, even though you love pastries.

You should aim to find something that meets the following criteria:

• What is the town’s need?
• What are my strengths? If I don’t know what I am good at, what do you enjoy doing?
• What are my goals?

These 3 points will align and you’ll be on your way.
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Step 4: Protect your downside and hedge your bets

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We have now asked many questions that have helped us to build a foundation for our business and identified a potential company we want to start. It is now time to address the structural questions that will validate the idea.

These questions will help you to identify the challenges that you need to overcome before you launch a business.

• Is this business doomed to fail because it doesn’t have enough customers to generate an income?
• Is it possible for this business to fail because you lack the necessary knowledge?
• Is your product or service not good enough to make this business work?

This type of analysis will enable you to fill the market gap in the strongest way possible, giving you the best chance of success.

Is it possible to slowly fill that gap with your resources? This will ensure that the business is strengthened correctly, and not just filling the gap to find out it will soon collapse.

Can you do this by starting on a smaller scale? You could sublet some space in a commercial space rather than taking over the entire area. Are you able to get customers to sign up in advance? Can you open it from your own home if you don’t live in the area? You could also fill in a smaller portion of the gap.

You can choose to accept more challenges than your comfort level. You can either create a better solution, or go back to your list and find another gap. You’ve identified your problem, discussed why it didn’t work, and are ready to move on to the next step.
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Step 5: Develop a business plan and go beyond

Now that you have made the decision to go ahead with your business idea it is time to create a business plan. This is possible with the help of all your work.

Be sure to review the business plan carefully and keep in mind that it is dynamic. It is not necessary to follow the plan exactly. The purpose of the business plan is to provide a guide. The skills you have acquired in this process might lead to a better solution, or allow you to expand your horizons – these are all possibilities entrepreneurs explore.

Find the gaps, fill them, decide what is best for you, manage your downside risk, plan, and execute.