34 Small-Town Business Ideas That Every Community Needs
Filling the local community's needs can help a new business grow.
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Updated · 15 min read
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Small towns offer a unique business opportunity. You get a concentrated market, but also a limited population.
The best small-town businesses meet a local need with a great product or service. Here are 35 small-town business ideas for inspiration. Or jump to tips on finding the right one for your community.
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Small-town business ideas
1. Restaurants
A successful small-town restaurant provides what people want, but don’t already have. That could be a diner, fine dining or something else.
It might be tempting to copy a popular place in town. But consider meeting a need — or desire — locals can’t find nearby.
Think about what food you look forward to when leaving town. Is it the experience of an elegant meal? Or just a slice of New York-style pizza? Figure out what people want and makes sense in your community.
For example, a farm-to-table restaurant is a great small-town business idea. But that's not the case if your area isn't agriculturally rich or such a place already exists in your town.
2. Hybrid bar/coffee shop
A small-town bar might be your dream, but it won't bring in business all day. Make up for those slow periods by offering different beverages at different times.
A coffee shop can bring in money at sunrise. There’s no need to compromise, as long as you create an environment that works for both day and night
Coffee shops not a “thing” in your town? Serving coffee where people do go — like a bar — can normalize it and encourage crossover business.
» MORE: Best bar POS system
3. Liquor store
Opening a liquor store can be a lucrative small-town business idea. But much depends on your county laws and state taxes.
In areas where grocery stores can't sell alcohol, liquor stores control that market. Be sure to research how to start one in your area. Securing the documentation you need (like a liquor license) can be tricky.
» MORE: Best liquor store POS systems
4. Handyman or contractor
A good handyman is always in demand. If you're whom friends, family and neighbors call to look at a leaky pipe or wobbly board, you might be well on your way.
Starting a contractor service can be straightforward. That's especially true if you already work odd jobs and have an idea of who will hire you. If not, see if an existing general contractor will offer you a small project. Do a good job, and they'll hopefully pass on your name to future clients.
Service work like this is ultimately a word-of-mouth business. The people you know — and who know your work — are your strongest salespeople.
5. Automotive repairs
Living in a rural area or a small town almost requires having a car. But being far away from a dealership can make routine servicing a hassle. Auto repair services fill an obvious need.
These businesses make life more convenient for locals. You might consider whether there’s an opportunity in your town to open up shop.
Likewise, cars break down everywhere, and most tow trucks charge per mile. So, if your town is a significant distance between major cities, consider towing cars. There might be an opportunity for you, even if you don’t have a proper repair shop.
6. Home cleaning
Some people don’t like to clean. There’s a good chance a few of them live in your town.
Cleaning businesses are another service that benefit from word of mouth. You can even pair it with other services, like babysitting or yard work.
Expert cleaning is a valuable skill. It doesn't require tons of money for courses or certifications to get, though. That makes this a great option for a side hustle with low overhead.
7. IT and computer services
All businesses and individuals need tech support, no matter how big or small the town. Everyone uses technology — and has trouble with their Wi-Fi or hardware.
You'll need more advertising for this service. It’s less visible than a business with a storefront. It's also less regular than a service like housecleaning.
But if you don’t plan to offer major repairs, you won't need much equipment. That will keep your overhead costs low.
8. Pet store, grooming and boarding
Opening a pet store is a great small-town business idea. Start by asking local pet owners where they get their food and grooming.
There might be demand for supplies if there isn’t already a local shop or a large chain, like PetSmart or PetCo. Even if there is, community members may still need pet grooming or boarding services.
If you’re interested in services like grooming or walking, connect with an existing pet shop owner (if there is one). You may be able to bundle your services with theirs.
9. Salon or barbershop
Chances are, your town has at least one barbershop or salon. But that might actually help you.
Figure out whose hair needs aren’t currently addressed on Main Street. An underserved demographic — i.e., there’s only a barbershop for men — could be an opportunity for you.
If your town already has full-service hair salons and barbers, consider a niche alternative. For instance, you could start a blow-out bar or a salon that offers makeup, eyelashes and tanning.
» MORE: Best salon POS systems
10. Gas station
Gas stations may not be glamorous, but they're essential. That's especially true in communities where most people rely on cars and trucks.
Small towns located on or near major highways can get considerable through-traffic. And unlike most businesses, a gas station can benefit from being far between cities. Gas stations can also generate revenue from lottery and tobacco sales, especially if they're the only vendor around.
11. Grocery store
When a town that could sustain a grocery store doesn’t have one, there’s probably a good reason. Maybe most people commute every day and use other stores. Or perhaps there isn’t a large enough population to support a big-box chain.
If you go the independent route (i.e., not a franchise), try to specialize — for example, focusing on organic, local, gluten-free or vegan choices. That way, you won’t overspend on a huge inventory.
Use local products, trends and tastes to help inform this decision. For instance, in agricultural areas, a farmers market-style store might work. You could carry local produce and seasonal goods. Both are usually popular with locals and tourists.
» MORE: Best grocery store POS software
12. Drugstore
A pharmacy is an essential business in every community. But if you decide to open an independent pharmacy, be wary of competing with large chains.
Be prepared for legwork too. You'll need to hire a pharmacist, buy insurance, install security precautions and more.
Still, if your town isn’t served by a local pharmacy, opening one could be a great value in your community. This idea is best if you're a trained pharmacist or involved in the local medical profession.
13. Antique or thrift store
This is a great option for touristy areas. Quaint gift shops can turn a profit on finds from local flea markets, junkyards and estate sales.
Turnover for an antique store may be slow, but your inventory won’t expire or need much upkeep. If your town has several shops like, consider a specialization. For instance, you could focus on retail consignment, second-hand clothing or local crafts.
14. Fitness studio or gym
Odds are, more than a few fitness-junkies live in your town. That could make starting a fitness studio or gym a great small-town business idea. You can focus on a boutique fitness theme, or just offer a general fitness space for your community to work out.
This ides does requires overhead to start — namely, gym equipment. But if you gain members quickly, you should make that money back, especially if there's a gap in fitness services in your town.
» MORE: Best gym equipment financing
15. Tutoring business
Every town has children who need to go to school. A tutoring business can help those students — and their parents alike.
This is a great idea that lets you give back to your small town and grow your community. You can cater to kids at any level — elementary, high school or college prep. Just think about a subject that you're knowledgeable and passionate about. Then, connect to kids who need help.
A tutoring business is also a great option for parents who have a large network of other families in their town.
16. Ice cream shop
Food-related businesses can be some of the most popular in a small town. If you don't want to run a full-fledged restaurant, consider opening an ice cream shop.
Ice cream shops can be hot-spots for locals, as well as people from surrounding towns. If your town doesn't have a business in the dessert market, an ice cream shop is worth thinking about. Plus, if you find success, you could expand into candy, cakes and even birthday parties.
17. Dry cleaner
No one likes finding out the new sweater they bought is "dry-clean only." But dry cleaning is a necessity, especially for items like suits, dresses and jackets.
If your town is without a dry cleaner, this may be the small-town business idea for you. A local dry cleaner lets people properly care for their clothes, without having to go out of their way.
18. Bookstore
The popularity of big online sellers might make opening a bookstore sound ridiculous. In small towns, though, a local bookstore can corner a specific market of reader.
As a small-town business idea, a bookstore can succeed in more than one way. In addition to selling books, your bookstore could:
- Serve as a town historical institution.
- Hold events, like readings with local authors.
- Incorporate TV and film into its offerings.
If your town is missing a location for reflection, discussion and reading, a bookstore might be perfect.
19. Bed and breakfast
Regardless of the size of your town, you'll always have visitors. It could be family from out of town for the holidays or tourists passing through. Offering them a place to stay, like a bed and breakfast, can be a great small-town business idea.
A bed and breakfast can service a variety of clientele and operate all year round. It also doesn't require too large of a space or staff. If your small town is close to a major highway or city, a breakfast can be even more appealing. It could give locals a quaint, affordable spot for a weekend away.
20. Floral shop
Flowers can be a go-to gift for any holiday or event, from Valentine's Day to graduations to a "get well" present. If your town doesn't have a floral shop, this might be the small-business idea for you.
Flowers are versatile beyond making great gifts. Events like proms or weddings need flowers. Or they can simply brighten a kitchen.
A floral shop can fulfill a local need, without the complications of some businesses. Yes, you might have to learn how to source and arrange flowers. But this business doesn't need expensive machinery, long days or a large staff.
21. Gardening and landscaping
Like cleaning, people may not want to garden and landscape (or feel like they're good at them). They are willing to pay for these services instead.
Any resident can benefit from gardening and landscaping, especially in warm weather. That's especially true if your town has home communities with lawn requirements.
Gardening and landscaping recommendations is another word-of-mouth business. Success can easily spread around a small town if you capitalize on a currently empty market.
22. Nail salon and spa
This business may cater to a similar demographic as hair salons and barbershops. But it fulfills a different need. It can also perform great during warm weather — especially for graduations, proms or weddings.
Compared to some of the small-town business ideas on this list, a nail salon and spa would require more staff. You might need more supplies, too.
23. Photography
There will always be a market for creative professionals, especially photographers. People want professionals to photograph events, like weddings, engagements and graduations. People may also seek a photographer for specific portraits or family studio shots.
If your town doesn't have a photography business, you might jump on this idea. {hotography equipment can be expensive. But you can keep costs low by sticking with the essentials.
Try to capitalize on your local market as much as possible as well. For instance, school photos, can be a surefire way to extend your services on an annual basis.
24. Clothing boutique
Even with the prevalence of online shopping, sometimes it's just better to try on clothing in person. If your town lacks a large clothing retail store, you might consider opening a small boutique.
Boutiques can offer anything — from T-shirts to unique, locally made items. Depending on the location of your town, a clothing boutique can service locals and visitors or tourists.
25. Daycare
If you have a background in teaching or childcare, a daycare might be the perfect endeavor.
Parents — especially working ones — may need childcare before their kids reach school-age and after school hours. A local daycare, of course, is going to be all the more convenient.
If your town doesn't offer daycare services, you can easily sustain this business.
26. Hardware store
A hardware store can meet many needs, from painting to gardening to pool maintenance. A local option can be a lifesaver, especially for home repairs that can't wait for online delivery.
A hardware store is the perfect business idea if you like to fix or build things. Plus, maintenance and repair are markets that will always be around.
27. Catering company
If you have experience with food and cooking but want more flexibility than a restaurant can offer, consider a catering company. Catering may be a more niche market. But word of mouth and working town events can be a great way to get your name out there and grow this kind of business.
28. Real estate agency
When people in your town are looking to buy or sell a house, or other types of property, who do they turn to? Perhaps, they should turn to you — if you start your own real estate business.
Even in the smallest towns, individuals and businesses buy and sell property every day. A local real estate agent who knows the area and the market can serve as an indispensable resource and facilitator.
As you develop your real estate operation, you can venture into other towns. Taking advantage of neighboring markets can help you better service your clients and business.
29. Event venue and planner
People will always want to celebrate. Everything from small get-togethers to parties and events can be a business opportunity. To fill this need in your town, consider opening an event venue and planning business.
An event venue can service all kinds of needs. It can encourage individuals, your town and other towns alike to take advantage of the space. Plus, you could offer the added value of event planning with your space. That can let you grow your customer base, as well as expand it by offering this service outside the venue itself.
30. Tattoo and piercing shop
Depending on your town, this may be the most unique business ideas on this list. But just because it's out of the box, doesn't mean you shouldn't consider it.
Setting up a tattoo and piercing shop will require the right employees and permit. But it can be a solid business — especially if you're the only shop within a small community.
If you have a business inclination and creative streak, this type of shop can check both boxes. Remember, this business will need a storefront, equipment and marketing. Be sure you have the necessary funds upfront to get started.
31. Veterinary office
A vet office will require licenses, permits and educated and skilled staff. It's only a choice if you're a veterinarian or know one looking for a practice.
If you have the funding (or can get a veterinary business loan), you can easily become a go-to for pet owners in your town. After all, pets need a place for annual checkups and emergencies. And proximity is often key.
32. Food truck
Why let location limit you? Take the opportunity to travel with your food business by starting your own food truck.
Food trucks let you service many towns in your area. They're also perfect for parties, graduations and town events.
If your food truck can serve good, affordable food, you'll be able to take advantage of a specific market. And you'll do so without the time, resources and hassle of running a full-on restaurant.
33. Health clinic
This will likely require the most funding, as well as specific resources. But if your small town lacks a health clinic, this could easily become a lucrative business. After all, everyone gets sick and needs the necessary diagnosis and medications.
This is another example where proximity is key. When you or a family member is sick, you're not going to want to travel far away for care. You're going to want the place that's closest to home.
34. Bakery
Nothing is better than a small-town bakery — a place for residents to go for a good cookie, slice of cake or croissant. If you have a talent for baking or know someone who does, this could be the perfect small-town business idea for you.
A bakery can appeal to the sweet tooth of your small town. It can also service those looking for a quick pastry and cup of coffee in the morning before work.
Your bakery could make cakes, cupcakes or any kind of specialty dessert for events and parties. Starting a bakery is even better if your small town doesn't currently have one. Plus, it can be less involved than a full-service restaurant.
How to find the right business idea for your small town
1. Think about what drives you
Picking a business based on what you’re good at or your experience makes sense. But you don't have to be an expert or even passionate about your business idea.
It can help, though.
Running a business is difficult. If you're entrepreneurial, making a profit or being your own boss may be motivation enough. If not, in those tougher times, believing in your business idea can help move you forward.
So before you start, ask yourself:
- What kind of businesses are you interested in?
- What finances you have and are willing to invest?
- How are you going to go about getting your business off the ground.
2. Meet a local demand
It's great to be the only type of a specific business in town. It will position you to control the local market — as long as there's demand for the good or service you offer.
As important as it is to set your business apart, it’s also crucial to fill a need. So, think about not only what's missing in your small town but also the kind of business people want and can support. Get involved in your local community to understand its consumers' needs.
Ultimately, generating and sustaining demand for a business is crucial to its success. That can be tricky if your town has a static population and little visitor traffic. The ideal small-town business is essential to the community and offers something consumers can’t find locally.
Things like restaurants, gas stations and pharmacies are the safest choices. But with the right planning and community environment, you may find success with more original ideas.
3. Scout locations
Explore the town where you intend to start your business. See where businesses have successfully operated for years, as well as spots where they've struggled.
You'll also want to observe traffic patterns around any potential properties. Consider factors like visibility and neighboring businesses already attracting customers to a particular area.
Assess whether your community is the optimal location for a new business. Look into nearby towns to see if they have a greater need for certain businesses. They may also have a larger population that can support multiple vendors.
4. Calculate the costs of starting a business
Before you make any decisions, consider all the startup costs. Think about the money you'll need for property, inventory, equipment, employees and more. How does that compare to the capital you have right now?
Running a business in a small town may cost less than in other places. Real estate and taxes may be cheaper, for instance. But you'll still need to consider upfront costs and how fast you'll be able to make that money back.
Write a business plan, and pressure-test it with an expert. That could be a fellow business owner or a mentor from an organization like SCORE.
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