Top 40 Small Town Business Ideas with Low Investment

Are you based in a small town or in a rural area or a village? Are you looking for the best profitable small town business ideas and opportunities that are profitable to start in villages and rural areas too? Read this post and explore the business ideas listed below and find the one which suits you the most.

Parameters for selecting a business in a small town or village are different from a city. Generally, a small town or village lacks the business infrastructure that a city provides an entrepreneur. However, you must take advantage of an easy source of raw materials of land, labor, and raw materials that are in abundance in small towns and rural areas where ever you stay.

List of Top 40 Profitable Small Town Business Ideas

1. Start a Small Farm

If you have vacant land, which is easier to have in small towns and rural areas, starting a small farm can be a profitable business venture to start. There are plenty of agricultural items which you can be produced which can give excellent returns on investment.

2. Start Online Business

If you have a computer and an internet connection, it does not matter whether you stay in a city or a small town. There are plenty of individuals making millions staying in smaller towns doing online business. Check out our article on online business ideas to find an online business that can be started with no or small investment.

3. Construction Related Business

It is seen worldwide, construction has seen a big growth in small towns. If you are related to construction-related activity, starting a business in the real estate industry can fetch you good returns.

4. Clothing and Jewelry

You can make a lot of money if you can properly diagnose the fashion trends of local people. You can also start a clothing business buying clothes and jewelry from local manufacturers and sell those in marketplaces.

5. Tour Operating Business

If you have a place of attraction which attracts tourist, tour operating business can be the business just for you. Set up a travel service related company to provide tourist guides who would take visitors around and educators who would provide historical facts and information about what tourists have come to see.

6. Bakery Business

There is a good demand for baked foods in small towns. You can start a bakery and sell freshly baked bread, cakes, cookies, etc. You can also buy bakery items from manufacturers and sell those items in the nearby marketplace.

7. Bee Keeping

Beekeeping business perfectly fits in rural areas and villages. Beekeeping business opportunity demands day-to-day monitoring with close supervision of the bees. With the increasing awareness of health, the demand for honey is growing globally. Beekeeping for selling honey and other products like wax is a profitable venture to start with less startup investment.

8. Coffee Shop

Though coffee shops are available in plenty in cities, there is a good demand for coffee joints in small towns. If you have a retail space with a small frontage, this has the potential of being one of the top small town business ideas to consider.

9. Fish Farming

The commercial fish farming business is a lucrative investment in small towns that can spin money at any time of the year continuously. With the implementation of modern techniques and having owned space, an entrepreneur can start this business with moderate capital investment.

10. Mushroom Farming 

A mushroom farming business can be a means of big profit-making business in suburban areas. A person who has a little bit of idea in the science & technology of mushroom growing and has an own building for having the farm – mushroom farming business will be the perfect option for him to start.

11. Organic Farm Green House

An organic farm greenhouse business is one of the most popular small town business ideas int the agricultural field. It has a high potential to grow and succeed because steadily the demand for organically grown farm products has grown considerably.

Organic farm greenhouse business was normally done on small, family-run farms. But since the demand for organically grown food products is now increasing, people are investing in land for organic farming.

12. Poultry Farming

Poultry farming has transformed into a techno-commercial industry from the status of backyard farming for three decades. Poultry farming is the fastest growing sector in agriculture and farming business. The annual growth rate worldwide is increasing. Poultry farming business tailor-made for small towns and rural areas.

13. Sugarcane Farming

Sugarcane is an important cash crop worldwide. Sugar cane is used for sweetening purposes. It is the most important and cheapest source of refined sugar. If the soil is fit for sugarcane farming, you must try this business in small towns or rural areas.

14. Start a Restaurant

The restaurant business is growing in small towns. Do some research and find out food items that are in demand in the local community. You can also come out with a different theme, like farm to table restaurants if you have agricultural products sourcing.

15. Liquor Shop

If the local laws do not allow selling alcohol from grocery stores, opening an exclusive liquor shop is a profitable small town business. You need to check with concerned local authorities about the requirements of licenses and permits to start a liquor store. It is among the very popular small town business ideas for people with a reasonable investment.

16. Barbershop

Though you will find already operating barbershop in most localities in small towns. However, if you can up with some extra services, starting a barbershop can fetch you good returns.

17. Pet Store

If you are a lover of pets, opening a pet store is a profitable business to start in small towns. It is advised to talk to local pet owners and try to learn their requirements. If there is already a local pet store owner, try to understand from him the services and products which are selling most in the local locality.

18. Consignment Shop

The success of the consignment shop business largely depends on the quality and range of products offered to customers. If you have a good retail location in an area with expected footfalls and a network of quality suppliers, starting a consignment business have a greater chance of being successful

19. Diagnostic Center

An individual having experience in laboratory science can initiate diagnostic center business with substantial capital investment. A Diagnostic center with pathology is one of the most profitable businesses in the medical and pharma industry. Heightened physician awareness and the increasing patient requirement to avail of high-quality care have increased the demand for a good quality diagnostic center.

20. Computer Repairing Business

If you enjoy fixing computers, laptops, starting a computer repairing business is potentially profitable.  Not everybody throws their new computer when defects are found. They look for qualified professionals to fix them.

Thriving Small Town Business Ideas

21. Medical Store

Medical store business opportunity is perfect for those who are a chemist or has years of experience as a pharmacist. There are many types of business opportunities are available apart from only medicine selling in this business. It is only for increasing demand for medicine and related health care products and supplements.

22. Computer Training Institute

The computer training institute is an ideal business opportunity for aspiring computer-savvy professionals. Running a computer training institute with some other value-added services can be a profitable and self-rewarding business. The only criteria to succeed in this business is you have to be knowledgeable enough about computers and the internet.

23. Smartphone Repairing

The sale of mobiles especially smartphones are rising as never before in small towns. Most mobile companies are now concentrating on expanding their market in smaller towns. It is obvious, the need for repairing mobile phones will increase.

24. Veterinary Clinic

Veterinary Clinic business in a small town is surely a good idea to explore if you are a veterinary doctor. Even if you are not a doctor, you can start the clinic hiring veterinary doctors. You only need to make a survey whether there is a demand is there or not in the nearby locality.

25. Video Editing Service

Video editing service in providing business small towns or rural areas can be initiated in two ways. One is a home-based and part-time basis. Another one is with full-fledged studio setup.

26. Vape Shop

Vaping is the act of inhaling and exhaling the aerosol. It is popularly referred to as vapor. It is produced by an e-cigarette or a similar device. Traditional smoking is on the decline in most developed countries like the United States. The demand for vaping has seen a huge rise in recent times. There are more than 11, 000 vape stores operating only in the United States presently. If you have space in a high traffic area, opening a vape store might fetch you good returns.

27. Food Truck

If you are passionate about food and want to start a food-related business with low investment, consider starting a food truck business. However, you need to come out with an innovative and creative theme to attract customers as the market is a little competitive.

28. Thrift Shop

A thrift store generally sells low-cost second-hand goods to customers. Thrift shop can be one of the most profitable small business ideas as more customers look for products that are less in price.

29. Car Wash

Sales of cars are increasing in small towns. Car owners more and more are looking forward to professional car washing facilities in small cities and towns. To start a car wash business, you are not required to invest much.

30. Be a Tutor

If you someone who enjoys teaching, starting a tutoring service business is a good way of earning good money in small towns. You can also set up a tutoring academy and hire tutors to make more money.

Small Town Business Ideas That Thrive

31. Ice Cream Shop

If you have a low budget and want to get into a food retail business, an ice cream shop is worth trying. Ice cream shops usually work as hangouts for local people. You can expand the business by adding food items like cakes, candies, fruit juices, etc to make more profit.

32. Bed and Breakfast

Bed and breakfast business is ideal for areas where tourists visit from outside areas. If you have extra rooms for people to stay, this business can fetch good returns in small towns.

33. Book Store

If you observe closely, people in small towns are more addicted to buying books from shops than from online marketplaces. Adding some creative additions like making a small place for an eatery, hosting events, workshops, etc will bring in not only more profits but also bigger footfalls to your bookstore.

34. Catering Services

People looking to enter the food business but do not have the budget to open a restaurant in, starting a catering company can be a good alternative in small towns.

35. Real Estate Agency

There are many small towns which are growing in size and more and more people are looking for better accommodations. If you are the one staying in such a town and having a good network with people, starting a real estate agency business can bring in good profits.

36. Event Planning

Nowadays event planning is no more a city-centric business. The demand for event planners is growing in small towns too. If you have the passion and experience in hosting events, it is worth considering to start this business.

37. Health Clinic

The investment to start a Health clinic is high. However, if your town does not have or a few health clinics, it can be one of the most profitable small town business ideas to start and run.

38. Hardware Store

You will probably find a hardware store already in your town as every household and building construction companies need supplies for tools, gardens, hand tools, building materials, etc. Though the market is competitive, still the market is so big there is always a demand for these items around the year.

39. Handyman Services

An expert handyman service professional is always in demand in all places. People staying in small towns are no exception. If you have the necessary skills, this business can be a profitable one.

40. Automobile Repairing Service

This is another business that requires some expertise to start. There is no shortage of demand for skilled automotive repairers in small towns. If you have the experience in repairing automobiles, this is one business where getting customers is not going to be a problem.

What Kind of Businesses is Profitable in Small Towns?

People looking forward to starting a business in a small town often comes out with this question. The answer though is not simple. The reason primarily is in modern days, many a small town is cash-rich. If that is true in your small town too, you can start a value-based venture or buy a franchise of a reputed brand operating in cities and big towns.

However, people on average in most small towns across the globe do not have much surplus money to spend. In this scenario, it is best to choose a business that satisfies the basic needs of the local populace.

How to Choose the Best Business in  A Small Town or Rural Area?

The best way to choose the best business is to understand the basic needs of the local community. After you understand the specific need, provide them the products or services with an intelligent pricing strategy. The location of the small town also plays a big role.

For example, if your small town is located nearby a tourist destination, the bed and breakfast business can be a profitable venture.

Finally, there are more small business ideas for towns and rural areas depending on the specific requirement of the local community. Analyze and choose the best small town business opportunity which fits you most.