The scarcity of jobs that is around would seem to affect small towns more than larger towns. If you have tried getting a nice formal job in a small town then you will understand these sentiments. Factors like the human population, size of the town and number of buildings and structures have a lot to do with this.
Starting your own business may seem like the next best idea. However, this has its benefits but other times there are challenges. For example, some entrepreneurs feel like starting their businesses in a small town limits their potential to grow.
This may be true if the business fails to meet the needs of the townspeople effectively. However, there have been many people whose businesses have done well in small towns and rural communities because they have met the needs of the people adequately. This goes to show that starting businesses in a small town has its benefits.
Some benefits of starting a business in a small town include;
Because of the fewer number of people and therefore fewer businesses in a small town as compared to larger towns or cities, the competition may be far less. The limited competition may propel you to be an industry expert in your field being that if you are not the only business in that particular field, you are one among a select few.
Use this advantage to your benefit and establish yourself as an expert. This will not only raise your clientele but also build trust and respect for you as a member of the community.
Lower Cost of Doing Business
If you start your business at a small town, chances are that your business is closer to the raw materials and this reduces transportation cost. You are also guaranteed of lower rent, cheaper staff and lower advertising costs than in major cities. Advertising in many small towns is by word of mouth and through references which is not only cheaper but one of the most efficient modes of advertising.
People Appreciate Local Flavor
People like to associate with things they are familiar with. Therefore it is easier for the community to accept your products as they can easily associate with it. This is advantageous because they will help to build your business.
In small town, it is easier to speak to people about your product or service and gather enough information to build or improve your business. You will be able to know what exactly your customer wants or values and therefore get a bang for your buck.
However, starting your business may be faced with a number of challenges which include;
Bad News Travels Fast
Because your clientele is in most cases a smaller number, when one or a few are dissatisfied with your product or service, they may tell the other person and the news spreads. This may be their sentiments or an honest mistake and once the news has gone viral, it is very difficult to change the mindset of many people. This may lead to your business collapsing.
Market is Restricted
Since you are doing business in a small town, the targeted market and niches of your business may be smaller than that of a larger town or city.
When you decide to start your business in a small town, it is important to know that your physical and geographical location should not be a hindrance to the growth of your business. This has been made possible by technology.
Many businesses have realized that one of the cheapest, fastest and most efficient ways of advertising is by using the internet. You can now have an online portal to market and advertise your business thereby expanding it. Most common ways could be using social media. Open a Facebook, Twitter, Instagram, Drupal. Whatever you see fit for your business and get closer to your customers.
It is generally a good idea to start a business in locations that can offer higher odds and if that is in a small town, well, take the leap of faith!