Small town business ideas

How to choose an idea for a small town?

At the word "business" a certain image often arises 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.

You just need to take into account some of the features 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.

A little about small towns

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 well-being 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 the city dwellers.

Olga Kosets

Take into account the specifics of the population, namely the qualitative composition: military, workers, people of science, as well as age categories.

Business features in a small town

Perhaps, you should immediately start with what "pitfalls" are fraught with a small city for business. Let's talk about the cons:

Small income

Since your potential clients earn little and are ready to spend accordingly, then you should hardly count on a millionth profit. Assess the situation soberly.

Limited growth opportunities

If in a metropolis you practically have no limits for the development of your business, provided that the idea for it is chosen correctly, then in a small city everything is different. The number of your customers will grow only until a certain point, after which the growth in demand will stop. This point should be taken into account in advance and lay in your business opportunities for scaling. When new buyers stop appearing, you should try to open your own branch in the suburbs or take up the development of some related business. You can also try investing in a completely new project if you see more promising niches in the process. But it is not always worthwhile to focus on increasing the average check. Remember: residents' incomes are often low.

Narrow market

In a small town, there are not many opportunities to realize some extraordinary ideas. They may simply be unclaimed. At the same time, the market capacity for standard establishments is also limited. In Moscow and St. Petersburg, you can safely open another pizzeria, even if a hundred of the same ones are already operating. In a small town, there may not be clients for the next establishment.

Nevertheless, the peculiarities of small towns give beginner businessmen some advantages:

Low market entry threshold

Starting a business in a small town will cost you less than in a metropolis. Rental rates for commercial real estate in the province are lower than in millionaires, as are the salaries of staff. Thanks to these items, the regular costs of your business will be lower.

Favorable competitive environment

Small businesses in small towns are usually underdeveloped, and you will most likely have few competitors. In addition, many potentially demanded business niches turn out to be completely empty. At the same time, it will not be difficult to find such niches, says Ivan Plastun, co-owner of an online freight service: "In a small town, it is much easier to do this, because all companies and retail outlets can be bypassed on their own."

Support

This feature is to some extent related to the previous point. Since private business in small towns is underdeveloped, the authorities are willing to make efforts to change the situation. For entrepreneurs, there are support programs, for example, for issuing grants for opening or providing subsidies, as well as special institutions that help start their own business - business incubators, business accelerators. True, the attitude of entrepreneurs towards them is ambiguous.

Olga Kosets from the organization "Business People" advises to study support programs and get to know the employees of the relevant departments in person:

Olga Kosets from the organization "Business People" advises to study the support programs and get to know the employees of the relevant departments in person: "Their direct responsibility is to direct you in the right direction."

But Anatoly Churgel from the Russian National Committee for the Black Sea Economic Cooperation warns: "You should not turn to local structures for advice - ideas will be grabbed on the fly."

In his opinion, it is better to start not with a large-scale business project, but with something that requires small investments. Subsequently, they can be multiplied, and at the same time - you can gain business experience, look at the problems of entrepreneurs from the inside. You can also refer to the experience of friends: which of them resorted to the help of local authorities when starting a business? What result did this lead to?

In the case of business in small cities, there are also several controversial points that can be turned both to the benefit of your business and to the detriment.

How to choose a business idea for a small town?

Having familiarized yourself with the peculiarities of small towns and entrepreneurship in them, it will be much easier to choose your business idea. True, the criteria for choosing a business idea for a small city are absolutely the same as for a large one, insists Ivan Plastun, co-founder of the service “Lucky for everyone”. In both cases, it must have a certain novelty. This does not mean that your business has to offer something that no one else has heard of before. On the contrary, it should be understandable to consumers. But you shouldn't completely copy other people's business ideas.

If your competitor has already opened Tire Service on Vishneva, do not open another one, Olga Kosets advises. It is better to supplement it with "Moika" or a small cafe, or both. It is likely that this format will grow later, and in symbiosis you are more crisis-resistant, and you have a better chance of survival and success.

Another criterion for a successful business idea for both small and large cities is its demand among a wide range of potential consumers. Ideally, your business should solve some kind of massive problem that plagues most of the city's residents.

But what this problem is, in each case you will have to solve it individually. There is no single universal answer for the average small town.

Before starting your search for a business idea, take a look around. Perhaps you will immediately see that your city lacks, for example, inexpensive entertainment venues.

Take a closer look at potential customers. This should not be some narrow group of the population, but the overwhelming majority of the city's residents. Who are these people? What interests do they live by? What do they need?

If you have noticed any need of the population, on the satisfaction of which you can make a business, conduct benchmarking *.

The same applies to the service market. In small towns, standard options such as laundries, dry cleaners, ateliers, shoe and clothing repairs, and car repair shops may be in demand.

Olga Kosets

President of the Interregional Public Organization for the Protection and Support of Small and Medium Business "Business People"

When looking for a business idea, try to build on the specifics of the labor market. Few highly qualified lawyers or programmers? Give up the idea of ​​launching your website or starting a legal services agency. Instead, try to concentrate on things people can do with their hands, such as fixing phones, computers, motorcycles, or cars. If there are enough personnel with such competencies, open a service center or service station. Such a business may also be in demand in a small town.

Your business idea can be either very simple or have some "chips". For example, if you are thinking of starting a farm products store, try developing an online store and arranging delivery. This will immediately set you apart from the competition, and at the same time provide additional opportunities for business scaling, which are so necessary in a small city.

If you decide to open a business in a small tourist town, you can also turn it to your advantage. See the cozy private shops, workshops and family businesses of old Europe. You can open something similar in your city by making your small business a local attraction.

Another coup for a tourist destination is to pay attention to local traditions and crafts. At the same time, it is not at all necessary to open another shop with souvenirs. Try organizing traditional entertainment, such as falconry or fishing tourism, advises Anatoly Churgel.

So, small towns have certain specifics, which also affect the conditions for doing business in them. Not every establishment can be opened in a small town. When choosing an idea for a business in a small town, take into account the economy, living conditions of the population and its mentality. You should not open a luxury clothing store in a mining village, or a raw food cafe in a military town. You simply will not find buyers, and your establishment runs the risk of closing quickly.