28 Jun Setting up a Business in a Small Town: The Pros and Cons
Is it possible to make money in a small town? The shortest answer to the question is a solid yes—making money should be possible regardless of the setting. However, there are differences to expect from setting up a business in a small town compared to in a big city. People tend to have that one mindset about big cities and their ability to provide opportunities to make money. Bigger cities do indeed have the upper hand over small towns in many fronts: There are more suppliers to depend on, more complete logistics to rely on, and more demands to meet. Those living in small towns seem to have their destiny written in stone, i.e. stuck with a local factory with a salary that may or may not be able to support their life.
However, this is not completely true as there are even more potentials to setting up a business in a small town—if you manage to unveil the facts behind it. It is almost a given that there are not many living in a small town with an ambition of being an entrepreneur. Well, there may be some of them but the amount of individuals willing enough to execute that ambition is even smaller. This then leads to many possible business niches that you can thrive in. With less competitions involved, your chance to win the market is wide open. Still, with limited population number, you can’t expect much in terms of new customers—unless you manage to also lure new ones from out of the town, which is special feat in itself. Recoupment is also another issue that you need to take into account. While it’s possible to make money in a small town, it is also possible that it might take a long time before you can recoup the investment you make.
Another thing that you need to be aware of is the matter of people’s salaries in a small town. Typically, people living in such a setting have a salary that is much lower than that of big-city dwellers. As such, they have an equally lower buying power so you should anticipate the fact that their focus primarily centers on the essentials. But a small town does indeed offer something that big cities cannot. Rent, for example, is pretty affordable. An expansive office space can be rented with ease while the same size of space in big cities might cost you an arm and a leg.
If your business revolves around jobs that require specific skill sets, you’re out of luck in a small town. But if what you need is labor force, a small town is loaded with tons of people with such a skill. Marketing is much easier in a small town. Word-of-mouth would be the dominant advertisement, which allows you to spread the news about your business—for free! Just make sure you do right by prominent figures within the town. These figures would be instrumental in helping your business expand even more.