20+ Small Town Business Ideas (+ Ones to Avoid)

Live in a small town, and looking for a business idea that will do well in a small community? You’re in the right place.

I grew up (and still live) in a small town, and have a few game-changing business ideas below that would do well in a town of any size.

Starting a business in a small town may mean less clientele, but it also means much less competition.

I’ve seen many businesses start and close over the years, and am going to give you ideas for ones that stick for you to become gainfully self-employed.

Many of the ideas below are AI proof as well – if you invest the time and effort, you could have a thriving business for life.

Let’s jump in – small town business ideas!

Small Town Business Ideas

Some of these ideas may require a degree, licence and/or certification – I’ve made notes on the jobs that may require some further education or a licence.

1. Food establishment- brick and mortar (restaurant, bakery or café)

*Licence/certification may be needed

One thing people often wish is in small towns is more, and better food options. In small towns, options are limited and often very similar (pizza, burgers, maybe a pub.)

Here are some ideas for brick-and-mortar food businesses that do well in small towns:

• a cozy cafe for people who work remotely?
• a bakery
• a food truck
• an ice cream parlour, or truck (although, may be seasonal)
• smoothie bar
• a vegan/vegetarian options
• ethnic options, like sushi, Indian or Thai

2. Florist

*Licence/certification may be needed

One thing we have more than one of in our small town is florists – and they’re all generating enough business!

Here’s the kicker – while most flower shops are brick and mortar, it’s possible to own a home-based flower shop as well.

Here are things you can make money off of in a flower shop:

• Bouquets and other flower arrangements
• Seasonal planters
• Fall arrangements
• Christmas wreaths and centrepieces
• Add-on delivery service for all of the above

My favourite florist in our town turned her flower shop into a cafe and gift shop as well, so people can buy gifts for others as well as a cup of coffee and baked goods.

3. Handyman (or woman) services

People need help with a variety of things around their home, such as:

• Building furniture (great if you’re into woodwork)
• Assembling furniture

If you want to go deeper into handyman stuff, like electrician, roofer or plumber, there is good money in these kinds of businesses in a small town but you do need to get the appropriate diplomas and/or licences.

4. Home-based food business

Enjoy making food for peope, but don’t want to start a brick and mortar business? Many people in our small town earn money from home-prepared food items.

Here are some ideas:

• pickled veggies
• freeze-dried fruits and candies
• cakes, cupcakes and other baked goods
• hot chocolate bombs
• charcuterie boards
• homemade teas
• Personal/private chef services

5. Rent out equipment

You can invest in equipment that people want to rent out for special events, and then when they need something like that, they rent it from you.

Examples:

• Bouncy castles
• Chairs, tables
• Tents

6. Homemade bath and spa products

People love to buy locally made, and often clean-ingredient spa, skincare and bath products.

These are things you can make from home, create an instagram page for and sell online, or at local fairs.

• bathbombs
• creams
• lip glosses
• salves, for sore muscles or cuts
• handmade soaps

7. Babysitting/Childcare

It is said that when you start a business, you should look at what problems there are – and solve them.

One problem is that parents, more than ever, are lacking a support system to help raise their kids. A babysitting or childcare service can look like a few different things:

• Before and/or after school care for kids in school
• An evening babysitting service that you offer in other people’s homes, or at your own home
• A nannying service
• Opening an in-home daycare

8. Dog walking/pet care

One thing that has become apparent in recent years is people spend a lot of money on their dogs.

Dogs are also a very common pet in small towns. If you love dogs and are good with them, this could turn into a small-town business opportunity.

Ideas for dog/pet-related businesses

• Walking dogs
• In-home pet-sitting
• Dog boarding
• Grooming for cats and dogs
• Making pet products

9. Esthetics, makeup and/or hair

People love spa and beauty treatments, and often, small towns are limited in these kinds of services, such as:

• Nails
• Makeup
• Hair syling/cutting/barber
• Facials
• Waxing

An esthetics, hair or makeup service can be a brick and mortar business, or it can be set up in your home.

There are a couple in-home hair salons, and medi-spas in the small town where I live.

10. Massage therapy

*requires a degree, licence and/or certification

Massage therapy services can be mobile (travelling to other people’s homes), brick and mortar, or offered in your home.

11. Therapy/counselling

*requires a degree, licence and/or certification

Small towns can mean a good sense of communuty, but people often struggle with having someone to talk to, confidentially.

A counselling, therapy or life coaching service would benefit many in a small town, especially if all age groups can benefit. Bonus: consider offering in person and virtual sessions.

12. Landscaping/gardening

Life is often slower paced in small towns, but still, you’ll find many people who would love a beautiful lawn or garden, but either:

• don’t have the time
• not super interested in creating one themselves
• have physical restraits (elderly, etc)

13. An event venue

An event venue would mean either renting out or investing in some property or space. But it can be a valuable business idea, for a number of event types and uses:

• An indoor playground
• Wedding venue
• Kid’s birthday parties
• Bachelor/Bachelorette parties

14. Lessons/classes for kids or adults

People are often looking for enrichment for their kids, and fun lessons for adults too. Depending on your skillset, offering after-school lessons for kids or evening and weekend classes for adults may do well in any of these areas:

• School subject tutoring (can be done in your home, theirs, or online)
• Musical instruments, and/or singing

Being a school teacher isn’t a business idea, but every small town does need teachers. Take a browse at my become a teacher section to see if its a good career choice for you

15. Monetize a farm

There are many farms outside of our small town that have monetized themselves, and turned their farm into a place of lots of fun, plus a source of income for the family. Here are ways to do that:

• Sell produce and other farm products
• Have a farm store on your property
• Offer pick-your-own services
• Host fall and winter festivals
• Have a space for people to rent out for birthday parties, weddings, or even yoga retreats

16. Uber/taxi service

Some small towns are small enough that everyone can walk everywhere, but some of them are continuoisly growing.

Depending on how well-developed public transit is in your area, a taxi or uber service may be something else that people need. Some examples on selling this further:

• Rides to the airport
• Pick ups on late nights from pubs/bars

17. Notary professional

*requires either a degree, licence and/or certification

Does your town have enough notaries? No one wants to drive to get documents signed and legitimized. This would be a good side-business opportunity, but isn’t likely to be a full-time income.

18. Yoga teacher

*requires a certification

Getting certified to teach yoga can open up a number of business opportunities in a small town. Here are some examples:

• Evening, weekend or early morning yoga classes
• Yoga retreats
• Virtual classes, for parents or other people who can’t leave home
• Start a YouTube channel and teach yoga online

19. Housecleaning

Similar to yard work and gardening, not everyone has the time (or desire) to maintain their houses the way they’d like them to be maintained.

20. Speech therapy

*requires a degree, licence and/or certification

Speech and Language Pathologists (SLPs) are a huge benefit to a small town, as so many people need these services.

In our town, we only have a few SLPs and they all have long waitlists.

21. Funeral home

*requires a degree, licence and/or certification

I know its a sad topic to bring up, but every town needs dignified death services for these life events.

22. Blogger/website owner

I have a very popular section on my travel blog that only deals with the small community that I live in.

I have blog posts about:

• Fall events
• Christmas events
• Easter events
• Things to do in and near our area

And these blog posts have made me a decent amount of money. You could also include blog posts on a list of festivals, summer events, best restaurants, date night ideas and more.

People often like to have all the information available in one space, and in small communities, sometimes there isn’t someone putting all that information together in a space.

If you love writing, and are interested in digital nomadism, then blogging about your town might be for you!

23. Dentist

*requires a degree, licence and/or certification

Every small town needs a dentist (or lots.) There are a number of dentists in our small town, and they all receive lots of business.

24. Manage social media for other businesses

Interested in remote work, but the blog post idea doesn’t grab you? Another idea is to take over social media business accounts for local businesses.

Managing social media for a business is a lot of extra work. As a business owner, I can tell you that it eats away quite a bit of my time. Despite how automated it can be, any business owners are looking to pass the whole responsibility to someone else.

Read my post on how to become a freelance social media manager

Small Town Businesses Ideas to Be Careful With

Retail Store

You may be wondering why you didn’t see any time of shop in the list above. In my small town, I’ve seen many, many retail stores open, and close within a 2-year period.

Unless your small town is touristy and receives a lot of outside visitors, it can be very hard for a retail store to survive, depending on what you’re selling.

To succeed at owning your own shop of some sort in a small town, you have to have a good business mindset and make good decisions to benefit your business and keep it going.

Here are retailers that do well, and don’t do well, in small towns (from my experience) plus my tips for success!:

 ✅ Used bookstores. The used bookstore in our town has been running for over 5 years. To run a used bookstore, you need to charge a minimum of $10/book, and allow people to turn in books for a credit only (DO NOT pay people for their used books, or you won’t make money.)

Also, only accept books that are less than 5 years old. Organize the books well in your shop in a way that makes sense and make it a cozy, inviting space. Consider partnering with a coffee shop or bakery. You can also rent out the space for events.

❌ High-end retailers in non-touristy small towns don’t tend to do well. Once your clientele has bought from you, there’s nothing pulling them back to buy more.

I’ve seen a number of ‘nice’ stores open up in my own town, but sadly, they don’t end up continuing for long, because you run out of customers quickly. It’s hard to make a profit.

If you do decide to open up a shop that sells more expensive things, then I recommend:

• Partnering with other small businesses in town (you can sell their products in your store and keep a fraction of the price)
• Host events, like paint nights
• Sell items that people need to come back for, like cosmetics, cleaning products, stationary, books, etc
• Rent out your space for events

Dos and Don’ts For Starting a Business in a Small Town

As I’ve mentioned, I’ve seen many businesses start and stop in small towns, and have an idea of what tends to make or break them. These kinds of things can make a HUGE difference in the success of your business

✅  Do create a social media presence, even if it’s just a simple page with announcements. It legitimizes you, builds trust, helps get the word out, and its an easy way to communicate with your customers. If you want to run a thriving social media page for your biz, then read my tips here
✅ Do collect email addresses and have a newsletter that you send out with any announcements, promotions or events too
✅  Do market yourself and get the word out there! It’s a small town, so you may not have to advertize as hard as you would in a big city. But, you still need to tell other people about your business and services in order for them to
❌ Don’t feel bad about charging people money. In a small town, its possible that you know some of your customers personally, but don’t let this pressure you into giving things out for free or even for a discount. You deserve to be paid in full for your work, regardless of who’s paying you. I highly recommend you read some money mindset books
❌ Don’t try to do everything yourself. Burnout is probably the number one reason why some businesses don’t succeed, and trust – we miss you when you close down. Invest in hiring other people to do the parts of the job that you don’t enjoy doing or aren’t good at – and you focus on what you are good at

Final Thoughts on Small Town Business Ideas

I hope that this article full of small town business ideas has been helpful to you. Having lived in a small town my entire life, I have seen what does well (and why) plus what doesn’t (and why.) So, the above is my heart poured out of ideas for you.