Small towns are great for new businesses. They’re more affordable, and people tend to know each other well. There’s also less competition. Your financial gain can be substantial if you choose a profitable business idea.
Here are 46 simple and cost-effective business ideas for small towns.
Top Online Platforms to Launch Your Small-Town Business
| Provider | Type of Website | Earning Potential | |
|---|---|---|---|
 | Freelance Platform | $5-$100/hour | Visit Upwork |
 | Freelance Platform | $5-$10,000 | Visit Fiverr |
 | Online Tutoring | $15-$25/hour | Visit Preply |
Online Business Ideas
The Internet offers many opportunities. With just a computer and a wifi connection, you can reach customers anywhere. We have a comprehensive article with 49 proven online business ideas, but here’s a short list of those that work particularly well in small towns:
1. Virtual Assistant Agency
Many businesses need help with scheduling or social media. Starting a virtual assistant business can earn you around… $40,000 a year! Offer services based on your skills. Small-town businesses may not know about virtual assistants, so introduce yourself and use platforms like Upwork to find clients.
Perhaps a small town shop wants to start selling online. Offer this service to the owner. Just because you live in a small community, it doesn’t mean virtual assistants are not appealing to business owners. It’s not one of the most popular business ideas, but for certain people, it can be a game changer.
2. Freelance Writing
Freelance writing is flexible and works anywhere. It’s great for people in small towns. Specialize in blogs, technical writing, or ghostwriting. You can start with just a computer with access to the Internet.
Build a portfolio and connect with clients on LinkedIn. Use sites like Upwork, Fiverr, and Freelancer.com to find clients. Then, start writing. You can charge by the word as well. Many writers charge between $2 and $10 per 100 words. Start low and gradually increase the rate.
In this case, you must learn search engine optimization. The purpose of it is to stand out in the online world. In a nutshell, you should optimize your articles so they can be ranked on the first page of Google results. This is something every single client will require.
3. Online Tutoring
Online tutoring is growing, especially with remote learning. Teach students worldwide in subjects you’re good at, like math or music. Invest in a good webcam and join tutoring platforms or create a website.
The best part? You can choose your hours and take on as many students as possible!
There is no need to state the obvious. You need to be proficient in the field you are tutoring. With a bit of luck, you can have a very profitable business.
4. Affiliate Marketing
Affiliate marketing lets you earn money by promoting other people’s products. You earn a commission for each sale through your unique link. It’s easy to start and can generate a lot of passive income.
Pick a niche you enjoy and create content, like a blog or YouTube channel. Trust from your audience is key. Some people make up to $110,000 a year or more, but it takes time to build.
This can become a lucrative business in no time. The best part is obvious. It’s a fairly inexpensive business idea. You need a computer and an internet connection. However, you need a website as well. Luckily making one with one of these best website builders is easier than ever before. Many of these use drag-and-drop systems which are super-easy.
5. Web Design Agency
Every business needs a website, but many guys and gals in small towns don’t have one. If you are a newbie, you can start with WordPress. It is the simplest platform here and the one that can be mastered within days.
Create a few websites first, buy a cheap hosting package, and launch them online. The goal here is to showcase those websites to the local community and gain visibility.
Learn HTML, CSS, and JavaScript through free or low-cost courses. You can learn these in a local coffee shop! This is a perfect business idea for those looking to scale up and earn more. Why you may ask? In small towns, there are not many web design agencies. This is how you can stand up.
6. Online Advertising Agency
Online ads are important for businesses. Help companies promote their products through search engines, social media, and email marketing. It’s a solid business idea for people who are interested in marketing.
You can earn up to $62,000 or more. Stay updated on trends like SEO and pay-per-click ads. Specializing in one area, like Facebook ads, can make you stand out. With a bit of luck, you can turn this into a successful business.
There are some things you must know. The world of online advertising is changing all the time. Know those changes and apply them to your ads. You will also work with small business owners so you need to adapt strategies to their needs.
7. Content Writing Agency
Good content is always needed, and you can earn up to $50,000 a year! You need strong writing skills and must know how to write for different audiences. It can soon become a successful small-town business.
You can find writers online. Then, find clients. Just share the requirements clients have with your writers. Be a medium and start making money. It is easier than it sounds and the earning potential is huge. These can even be blog posts for coffee shops or a gas station. But always focus on quality and pay attention to detail.
8. Online Reselling
Online reselling, or flipping, involves buying items at a low price and selling them for a profit. You can find items to resell at thrift stores or garage sales. Good photos and descriptions are important for attracting buyers online.
Food & Beverage Small Town Business Ideas
Food businesses are popular because everyone eats. In small towns, they can become community gathering places. Even better, there are a lot of options you can choose from. Don’t forget that you can use one of the aforementioned deals alongside this one. Here are a few ideas:
9. Food Truck
Food trucks can go where the customers are. They have lower startup costs than restaurants. Also, many small-town residents will adore the idea. Even better is the fact they can easily become your customers.
Serve unique food and park in busy areas for better results. Most of the time, the best place where to position the food truck is in front of a factory or a large business. Workers can buy meals from you on a lunch break. When ready, scale up this business model and make even more money.
10. Coffee Shop
A coffee shop is probably at the heart of a small town. So, create a cozy space where people want to hang out, and you should be able to turn in a profit. Offer snacks or host events like open mic nights to draw in more customers. Don’t forget the obvious. Build relationships with locals.
In no time you can have a successful small business. If you are really into this idea, you can scale up. Open as many coffee shops as you can. When ready, open one in a big city.
11. Ice Cream Shop
Ice cream shops are popular, especially in the summer. Use local ingredients for unique flavors. Sell seasonal items like hot chocolate in colder months to keep earning. This is a fun and interesting idea but there are a few things you need to know.
It is much better to add it to the existing business. For instance, you can sell ice cream in your coffee shop. If you live in an area where high temperatures are common throughout the year, go for it. Even better, if your town is a tourist attraction near the beach, an ice cream shop is an amazing choice.
12. Bakery
A bakery brings fresh goods to the town. Offer unique items like homemade bread or cupcakes. Pay attention to local tastes and trends. You can sell your baked goods online, but selling to cafes or restaurants adds more income. The more brick-and-mortar stores you cooperate with, the more money you will make.
Know one thing. You will have to either work all night or get up early. Have you ever wondered why bread is fresh and delicious in the morning? It’s because it was made during the night.
13. Juice Bar
Juice bars attract health-conscious customers. Use fresh, local ingredients for your menu. Offer smoothie bowls or snacks along with juice. Educating customers on the health benefits of your menu can help your business grow.
You can start a business venture in no time. If you like a healthy lifestyle, this is probably one of the best ideas for you. Try to position your bar next to the gym and exercise studio. If you are lucky, you will become a happy business owner in no time. However, you do need plenty of foot traffic to make this business idea profitable.
14. Small Restaurants or Diner
A small diner or restaurant can become a favorite spot. Serve comfort food with a twist using local ingredients, especially in tourist-heavy areas. Two important things to know about. First, quality and consistency are key. Yes, this is mandatory for any food-related business.
Offering catering services can add extra income. You can use local farmers as well. It’s a great way to make even more money and help the local community.
15. Microbrewery
Brewing beer is becoming more popular, even in small towns. This is fun too, as a microbrewery lets you create unique beers. Believe it or not, this is easier than it sounds. You don’t need a huge investment. In general, it’s a small business idea that certain people will love.
16. Specialty Food Store
A specialty food store can thrive by offering unique products not found in supermarkets. Sell gourmet ingredients or international foods. Also, build relationships with local producers and offer tastings or cooking demos.
Additional services, such as catering or cooking classes, can boost income. Be ready to educate customers on how to use the products you sell. Yes, this takes some time to get used to and it’s not the simplest idea here. In addition, it is also a large-town business idea.
Retail Business Ideas
Retail businesses do well in small towns when they meet a specific need or sell unique products. Here are a few ideas that work in small towns:
17. Thrift Store
Thrift stores are popular again… Why? Because shoppers want to save money and care about sustainable fashion. In a small town, a thrift store can attract locals and visitors. To make it unique, select the items you sell instead of accepting all donations. Organize the store so customers find what they want easily.
You can also sell furniture, books, and vintage items. Build relationships with the community by partnering with local charities for donation drives. You can also buy things online and sell them to the locals.
18. Bookstore
Even with the rise of e-books and online bookstores, local independent bookstores still play an important role, especially in small towns. You can earn about $30,000 a year, and the store can become a cultural hub.
Create an experience customers can’t get online, like cozy reading areas or events such as author readings and book clubs. Engage with the community by working with schools or hosting writing workshops. Selling items like stationery or local artisan goods can add more income.
Not into running a physical bookstore? Learn how to make money with eBooks instead.
19. Gift Shop
A gift shop adds a special touch to a small town. Offer unique gifts that reflect local culture. Stock items like handmade crafts or locally produced foods. Keep seasonal items for repeat visits. Offering personalized services, such as gift wrapping, adds value. Also, consider selling basic party supplies or office items to meet other needs in the community.
This idea is amazing if your town is a tourist attraction. Luckily most towns have a few areas or places that attract tourists. Try to find those in your town and benefit from each one.
20. Pet Supply Store
Pet supply stores are popular as pet ownership grows. Focus on offering high-quality food, toys, and accessories. Include items for uncommon pets, like birds or fish. Equally important is the next thing. Offering grooming or training services brings in extra income.
Let’s face it. There are a lot of pets in your town. There are a lot of pet shops as well. All of them will need your services. This is how you become a successful business owner in no time.
Service-Based Small-Town Business Ideas
Service-based businesses are great for small-town entrepreneurs. They often need less money to start than retail or food businesses. These ideas are also beneficial if you prefer working with your hands. Here are a few ideas:
21. Pet Grooming
Pet grooming is always in demand and can earn up to $70,000 a year. Learn grooming skills and start small, maybe offering mobile services. Word-of-mouth is key to growing your business in a small town. Then, add services like nail trimming or pet sitting to earn more.
Soon this become an amazing small-town business. However, it is not as easy as it sounds. You may need to work long hours and your clients have to be satisfied with your work 24/7.
22. Lawn Care and Landscaping
Lawn care businesses can earn about $40,000 a year. Start with basic equipment and offer services like mowing and landscaping design. Since lawn care is seasonal, think about offering other services in the off-season, like snow removal. Offering regular maintenance plans can provide steady income.
In addition, lawn and gardening services require plenty of stamina. You will need to be in perfect physical shape before you can meet the expectations of your clients. On the other hand, it can be a profitable and stress-free business. Just make sure there are not many local business owners with the same idea.
23. Handyman Service
Handyman services are valuable in small towns and can earn around $70,000 a year. Be versatile and offer a range of services, from fixing leaks to furniture assembly. Always provide quality work to have regular clients. Many people like working with someone they know and trust for all their small repairs.
To grow your client base, invest in simple handyman marketing like local ads, social media, or listing your services on platforms like TaskRabbit.
24. Computer Repair and IT Support
Tech support and computer repair are needed even in small towns. You can make up to $70,000 a year. Be ready to solve a variety of tech problems, from virus removal to network setups. Don’t forget that you should be able to solve network issues as well. Offer services for both individuals and small businesses, as they often don’t have in-house IT staff.
This is a niche market and it doesn’t work well if you live in a very small town. On the other side, if there are a lot of people and businesses looking to set up their computers or networks, it can be a perfect idea.
25. Car Wash
A car wash business can earn about $40,000 a year. Starting with a mobile detailing service requires less money than a full car wash. Offer personalized services and different packages. Then, partner with local businesses that need regular vehicle cleaning, like dealerships.
In no time you can transform this small-town business idea into something special and profitable. Keep in mind that as a small business owner, you need to find more and more clients. Expand and start looking for them in surrounding cities and towns.
26. Photography Business
A photography business can be profitable in a small town. Offer services for events like weddings, graduations, or family portraits. You can also find a seasonal business with holiday photos or school yearbooks. Networking with local event planners and businesses helps grow your business.
Want to turn your skills into steady income? Learn more about making money with photography:
Health and Wellness Business Ideas
The health and wellness industry is growing, offering small towns many opportunities. Here are some ideas that can work well in a small town:
27. Yoga Studio
Opening a yoga studio can help people improve their physical and mental health. A successful studio can be rewarding and profitable. To start, you need to be a certified yoga instructor and have a space for classes.
Offer different types of yoga, such as gentle yoga for seniors, power yoga for fitness lovers, and prenatal yoga for expecting mothers. To attract more clients, you could also add services like meditation or sell yoga products like mats and clothing.
The best part about this small-town business idea? The odds are high that there is no competition in your town. This is one of the secrets to success and profit.
28. Personal Training
Being a personal trainer can be a good business in a small town, especially if there aren’t many fitness options. You need to be certified and know about fitness and nutrition. Specializing in areas like weight loss or strength training could bring more clients.
In a small town, word-of-mouth is powerful, so focus on getting real results for clients. In addition, you could also offer online training sessions to reach more people. If you already offer tutoring services add these to the list of your offerings.
29. Nutrition Consulting
Starting a nutrition consulting business can help people in small towns make better food choices. You need to be a registered dietitian or have a degree in nutrition. Specializing in areas like weight management or sports nutrition could make your services more valuable.
Offering both individual consultations and group workshops could be effective. It’s a bit more complex but it does pay better. In rural areas, more people than you think will be interested in this type of consulting. It is a valuable business model.
Education and Childcare Business Ideas
Education and childcare services are always needed, even in small towns. Here are some business ideas that can succeed in a small town:
30. Daycare Center
Opening a daycare center can be important in a small town, especially if many parents work outside the area. To start, you’ll need to meet local regulations for safety and staffing. Consider offering flexible hours to help parents with non-traditional work schedules. It’s important to create a safe and fun environment for the kids.
31. After-School Tutoring
After-school tutoring can be a helpful service in small towns where schools may not offer enough support. To start, you need to be knowledgeable in the subjects you want to tutor, like math or science. You could offer one-on-one or group sessions, depending on what students need.
It can be a great business idea if you are a teenager or you are still planning to start another, bigger business. Nevertheless, this will be your own business and you should try to make it work and bring money.
32. Music Lessons
Giving music lessons can be a rewarding business, especially if local schools don’t have many arts programs. You’ll need to be good at playing and teaching an instrument. If you have these skills you can start offering them to people today.
If there are not many people interested in these in your town, try online. There is always a person or two looking to learn how to play a musical instrument.
Arts and Crafts Business Ideas
Arts and crafts businesses can do well in small towns with a strong local arts scene. Here are some ideas:
33. Handmade Goods Store
A store that sells handmade goods can be a great fit for a small town. You can sell items like jewelry or pottery made by local artisans. Having an online shop can help you reach more customers. It can be a lucrative business after all. If you already have a local grocery store, you can add handmade goods for sale.
You can also consider offering workshops to teach people crafting skills. It is an appealing addition and can be perfect for certain people.
34. Art Gallery
Opening an art gallery can bring culture to a small town. You’ll need a space and relationships with local artists. Selling art often involves telling the stories behind the pieces, so be ready to talk about the artists. Offering art classes or renting the space for events can help bring in more income.
We must state the obvious. You should be interested in art to profit from this idea. If you don’t have this, make sure to try another idea from the massive list we have prepared for you.
Entertainment and Recreation Business Ideas
Small towns need places for entertainment and recreation. This will improve town’s social life and also me you a more appreciated individual of your community. Here are some business ideas:
35. Mini Golf Course
A mini golf course can be fun for families and tourists. You’ll need land and money to build the course. In addition, creating a themed course can make it a unique attraction. Now your friends and family can play and have fun.
Consider hosting events like birthday parties to increase revenue. This is an excellent way to make more people engaged and make more money. Although a small business, it can grow substantially.
36. Escape Room
Opening an escape room can be a fun business in a small town. You’ll need a space and creative puzzles to challenge visitors. Offering multiple themed rooms can encourage repeat visits. Corporate team-building events could also be a good fit for your escape room.
37. Board Game Cafe
A board game cafe can be a cozy place for people to gather. You’ll need a good selection of games and a menu of simple food and drinks. Hosting game nights or tournaments can help build a loyal community. Even better, you will have fun on those nights as well.
If this is the only business of this kind in the local area, you are lucky. These can quickly become profitable and popular. There is no need to add that this can be a small-town business idea that can change your life.
Home-Based Business Ideas
Starting a home-based business can be a flexible option in a small town. Here are some ideas:
38. Candle Making
Candle-making can be a profitable business. You’ll need supplies like wax, wicks, and fragrances. Consider selling at local markets or online. Offering custom candles for events like weddings could be an extra source of income.
39. Soap Making
Like candle making, soap making can be a creative business. You’ll need to learn the craft and buy supplies like oils and molds. Selling your soaps at markets or online can bring in customers. Be sure to follow safety guidelines for cosmetic products.
Agricultural Business Ideas
Agricultural businesses work well in small towns. Here are some ideas you can take into account:
40. Farmers Market Vendor
Selling produce at a farmers’ market is a good way to earn money. You can make about $20,000 a year. To start, grow things like fruits, vegetables, flowers, honey, or eggs. Set up an attractive booth and offer samples. You can also sell things like jams or baked goods to increase your profits.
41. Community Supported Agriculture (CSA)
A CSA allows people to pay upfront for a share of their farm’s harvest. You’ll need land and the ability to grow crops. Offer a variety of vegetables to keep your customers interested. Stay in touch with your members through newsletters or social media to build a sense of community.
42. Herb and Spice Growing
Growing herbs and spices can be profitable. Culinary herbs, medicinal herbs, and unique spices are popular. You can sell them fresh, dried, or in products like seasoning mixes. You might also want to offer online sales or partner with local restaurants.
You can sell these to health food stores as well. In addition, many grocery stores will want to work with you.
Automotive Business Ideas
Automotive businesses are in demand in small towns. Here are a few ideas on how to make money with cars:
43. Mobile Oil Change Service
A mobile oil change service brings convenience to car owners. You visit customers at their homes or workplaces and perform oil changes. You can also offer other services like filter changes or safety checks.
If you want to scale up, you can open an auto repair shop. You need skills and knowledge about mechanics. You need clients as well. In addition, start learning about electric vehicles. You will soon have to repair them as well.
44. Tire Shop
A tire shop can make a lot of money, especially in places with rough weather. Sell and install tires, and consider offering other services like wheel alignments. Plan for busy seasons, like winter tire changes.
It is far from a hard job. On the other hand, every single driver will need tires for his vehicle sooner or later. Make sure to cover ATVs, motorcycles, and farming machinery services. These are needed in rural areas.
45. Auto Detailing
Auto detailing involves cleaning and restoring vehicles. You’ll need supplies to start, and you can offer different levels of service. Attention to detail is important, and you might offer specialized services like headlight restoration.
You can share the details of your service on social media platforms. Make sure to stand out and offer something unique. Also, make sure to promote your own business regularly.
Seasonal Business Idea
Yes, we even have seasonal ideas for you. These can be perfect additions to the already existing business plan. But, these can be perfect for those looking to try something new.
46. Christmas Tree Farm
A Christmas tree farm can make around $30,000 a year. You’ll need land and patience, as it takes years for trees to grow. Offer different types of trees and consider adding activities like hayrides to attract customers.
The business idea here can be perfect in the local community. You can even get help from various people and experts for free. Then, use all of those to make your business profitable.
Why Start a Business in a Small Town?
Starting a business in a small town helps both you and your community. Small towns usually have lower costs, so it’s easier to get started. Now you don’t need deep pockets to start a business. On the other hand, a business is a business and it can make a profit. Then you can scale up.
Local people will spread the word about your business, which can help you grow without spending too much on advertising. Yes, you need to offer high-quality products or services. You also need to be polite and make your customers or clients happy.
Many small towns have gaps in the market that you can fill with your new business. You need to explore those gaps and isolate them. Then offer the services or products that fill those gaps.
Another advantage is the fact you will work with local people, you already know. There is much less stress in businesses like these. In other words, it is more appealing to work and make money.
How to Choose the Right Business Idea
To pick the right business, look at what people in your town need. Talk to them and figure out what’s missing. This can last and in some cases, it is a year-long process. Make sure you take into account all the variables.
Choose something you’re good at and passionate about. It will make the job much easier and more appealing. This is probably one of the best secrets we can share with you. Luckily, we all know about this already.
Plan carefully, and know your costs. This is essential. All business owners must know how much it will cost to start a business. In addition, expenses add quickly and they can go over the budget in no time.
Then you need to think about the future. How can you scale up and promote your business? Can you open a new store or can you add more services?
Regardless of which path you choose, a few things are essential. First, you need to be prepared for failure. Not all businesses will become profitable. Try multiple times and you will succeed.
Secondly, you have to invest a lot of time. This applies to every single business idea from the list. There is no other way.
Third, always learn. This is an obvious fact that most people simply skip. You need to stay on trend and you need to know all the details about the business and how to stay relevant.
Lastly, try multiple businesses. It’s a great way to make even more money and develop multiple income streams. Now you can make more money in different ways.
With a bit of luck and plenty of effort, you can start making money quickly. See, living in a small town can be more beneficial than you may know.
Conclusion
Starting a business in a small town can be a rewarding experience. By understanding the local market and offering excellent service, you can create a successful business while becoming an important part of your community.
Next Steps: What Now?
- Take the pros and cons of each idea into account.
- Choose which business idea is the best one for you.
- Create a business plan.
- Start working and making money.
Further Reading & Useful Resources
- 69 Clever Small Business Ideas You Can Start Under $500
- 49 Proven Online Business Ideas (You Can Start Quickly)
- 74 Best Low-Cost Business Ideas (& Which is Right for YOU)
- How To Make Money As An Entrepreneur: 17 Proven Ways
- How to Successfully Sell Online: A 10-Step Guide (+ tips)
- How to Sell a Blog for Profit
- How to Start a Lifestyle Blog and Make Money
- SEO Content Writing: Essential Tips for Successful Results
