25 Profitable Small Business Ideas for Small Towns

Small towns have a unique charm and friendly vibes. The pace of life is slower and the stress of the big cities doesn’t follow suit.

If you’re an individual who is independent and doesn’t want to work a nine-to-five job but you like the appeal of small towns, then considering opening your own business is a great idea.

Serving the local community can be highly rewarding as you make a visible difference in people’s lives. But what small town business ideas should you consider?

We offer a range for you to choose from below. Let’s get started.

What Kind of Business Would Thrive in a Small Town?

In essence, there are many small town businesses that thrive and do well. These businesses aren’t limited to a particular niche.

However, what is important is doing market research to determine the demand for your product or service while ensuring that the demand will be sufficient to tide you over.

A successful small town business should also consider the location and pricing of their items as well as ensure that they offer a novel idea that doesn’t have much competition.

25 Profitable Small Town Business Ideas in the UK

And now, without further ado, we jump into a broad range of small business ideas for small towns that you can consider when deciding to make your move. Some of the ideas below are seasonal while others are evergreen. Some require certain skills while others only need business acumen. Ultimately, you’re bound to discover one that suits your needs and personal aspirations, so let’s take a closer look.

1. Coffee shop

Coffee shops are the heartbeat of small towns. That’s where locals and passers-by gather to enjoy the lull in the pace of life. Whether it’s sitting down to rest or to catch up with a friend, coffee shops are the social gathering point that offers lucrative business opportunities.

But how do you get started? Firstly, you’ll need to find a suitable location. Areas with high foot traffic are ideal for the purpose. Just bear in mind that you’ll either need to buy the premises or rent them. Then, of course, there is the outfitting of your coffee shop.

You will need inventory such as tables and chairs, umbrellas for hot days, a bar counter, coffee-making machines, a till, card machine for accepting card payments, and you may need to hire a few team members to help you out. The devil is in the details so you’ll also need cutlery, a backroom kitchen area for cleaning up, detergents, and accessories to make your coffee shop feel homely and cosy.

Overall, a small town coffee shop is a medium-sized investment but as an evergreen business, you’ll get patrons coming through all year round.

2. Ice cream shop

If you want to cater to a niche market, ice cream shops are the way to go. You’ll serve a broad clientele, from young to old. Just be aware that this is a seasonal small town business idea and that you may need to rely on other earnings to carry you through the cold winter months. 

Overall, as an ice cream shop business owner, you’ll naturally want to stock the right quantities of high-quality ice cream so that your clientele keeps coming back for more. You’ll also need the right refrigeration appliances to keep the ice cream cool.

There are utility payments such as electricity, water and gas to consider. And you will either need a fixed physical space to operate from or a type of mobile food truck that can be relocated to cater to different local events.

3. Farm to table restaurant

If you’re considering a restaurant idea, there’s nothing better than a local successful small town restaurant that is of the farm-to-table style.

Sourcing fresh local produce from local farmers will be a strong selling point that sets your business idea apart from the competition. That’s because you’re not only helping local communities thrive through job creation but also offering fresh ingredients that are hard to come by in larger cities.

Naturally, you will need premises in a high-traffic area. You’ll also need the cooking equipment, furniture, accessories and even a team of employees to help you manage and run the restaurant well. 

Other considerations include getting the necessary licences and insurance, such as licences for playing music and serving alcohol. Ultimately, purchasing fresh food from the local market could be the perfect business idea for you.

4. Computer services

If you possess computer skills, you could offer computer services in your chosen small town. These can range from software updates and installations to more complex programming or even hardware repairs.

You’ll need small premises from which to work, and you’ll also want to invest in marketing your business so that you attract a local clientele. Luckily, many people have laptops and desktop computers and because of constant updates, computer services come in quite handy.

5. Landscaping business

For those of you with green fingers and who know their way around a garden, you may want to put your skills to good use with a landscaping business.

Small towns often consist of properties with gardens and whether it’s lawn mowing, hedge trimming or something more sophisticated, you could have business all year round.

Especially if you secure contracts with schools or public properties such as parks and recreation centres. 

The good news about a landscaping business is that you can run its administrative aspects from the comfort of your own home. However, the actual work will be done on the premises of your clients.

This necessarily means that you’ll need a van to store your equipment and which will take you from A to B with ease. Apart from the van and the business licences you’ll need, you may also need to hire a team as your business grows.

6. Food truck

A fairly inexpensive business idea in the food industry is launching your own food truck business to cater to local demand. A great opportunity for those who do not wish to be fixed at a permanent location and who would like to take advantage of local events.

You could even do weddings or make your services available to local sports events or festivals. It’s simply a matter of purchasing the food truck and outfitting it with the right equipment.

You will also need licences and insurance and you’re almost ready to go. Make sure you purchase fresh produce and that you use your culinary skills to attract and retain your clientele.

7. Real estate business

Just because a small town doesn’t have a large population doesn’t mean that property doesn’t get sold or rented out. Starting your own real estate business does not require much start-up capital and if you’d like to help buyers, sellers, tenants and landlords find the perfect match, this could be for you.

Although you will spend a lot of your time showcasing properties to potential buyers and renters, you will also need a physical space where you can carry out your administrative work.

The cost of renting will be your biggest expense, followed by utilities, software, computer equipment and marketing (in no specific order). Marketing will play a huge role in attracting the right clientele for estate sales. You’ll also need a website and photographic equipment as a local real estate agent with your own real estate agency.

8. Tattoo and piercing shop

Other business ideas for small towns that tend to be out of the box include tattoo and piercing shops.

This is a highly specialised offering but it is increasingly attracting a solid audience. With interest from your customer base, you could enjoy an evergreen small business that even attracts people from neighbouring towns.

Also, because there’s still not much competition for this small business idea, you’re likely to enjoy a profitable business that is rewarding for you and for the local community you serve.

To kick off your tattoo and piercing shop business, you need small physical premises to rent or buy. You’ll also need all your inks, equipment and needles. Furthermore, marketing will play an important role in getting your business off the ground and sustaining a solid customer base throughout the year.

9. Bed and breakfast

If you own a property that you’d like to rent out to travellers on short temporary stays, a bed and breakfast is a great idea.

Since you already own the property, it’s a matter of marketing it well on key hotel and accommodation websites. Yes, they will get referral commissions for the guests they find for you. However, this is a sound way to get your name and property listed and in front of a wider audience.

Some costs to bear in mind include the cost of food for the guests’ breakfast and laundry fees for bedding and towels. You may also wish to hire the services of a professional cleaning company to clean up after the guests have vacated the property.

10. Clothing boutique

Local businesses that attract customers are those that cater to their needs. And a clothing boutique could be just the solution for you. If you have a flair for retail and you love fashion, you will need to plan your business well. But the potential for returns are good.

Clothing boutiques require physical premises that are located in high foot traffic areas. You’ll also need the actual stock or clothing inventory that you’ll sell. There are marketing strategies you should also employ, such as having a store website, creating brochures or pamphlets with the latest seasonal sales and email or social media marketing to get more visibility for your store.

Other essentials will include staffing your store with a team of helpers and creating a pleasant shopping environment through your furnishings and the ambiance you create. Naturally, there are also utilities to consider as are rental costs.

11. Nail or spa business

After Covid-19, grooming services are back in high demand. You can create a nail business or a spa business where you give your clientele beauty and massage treatments.

While a nail business can be mobile, a spa business requires a sizable physical space to operate from, which will necessarily incur costs. You’ll also need to focus on the installation of jacuzzis, baths and saunas to create a fantastic relaxation experience.

Other potential costs to consider apart from premises and retrofitting the spa centre include hiring a qualified team of professionals to carry out the service. You will also need to market your business so that you attract visitors from far and wide. For this purpose, a website and online presence will be highly beneficial.

12. Grocery store

You don’t need to run a major chain grocery store in a small town. However, you can run a local grocery store nonetheless. It’s all about catering to your local community’s basic needs by offering them fresh produce at affordable prices.

Premises will be key for this endeavour, as will ensuring that you choose the right location. You will also need to ensure that you have strong supply chains in place as well as transportation solutions you can rely on for a constant and steady stream of stock.

The costs of your inventory will be worth considering as well. Furthermore, you will need to pay utilities, licences, insurance, employee salaries and the marketing of your local grocery store to your local residents.

13. Pet grooming and boarding

A great business idea for those who love pets is to get involved in pet grooming and boarding. This type of business can add extra value for local pet owners who want their pets to look great. Alternatively, with pet boarding services, you can look after pets while the owners are away.

This service will require skills in pet grooming or you can always hire someone to help you out. As for pet boarding, you’ll need the right premises, licences and insurance to ensure that you are fully covered in the event that something goes wrong.

14. Event planning services

Small business owners can also do something that’s fun and rewarding. Especially for those who have strong organisational skills. The answer lies in offering event planning services for weddings, conferences, trade fairs, baptisms, birthdays, anniversaries and so much more. To get this business idea off the ground, you’ll need to do exceptional marketing to attract clients.

Once you’ve done so, you can help them find venues, organise catering and drinks, help with decorations and organise guest lists and invitations. You don’t need physical premises to run this type of business. However, you will need to do effective marketing to get new clients. Your business start-up costs will be extremely low because you can work from home. On the other hand, you will need to establish important industry connections with venues and catering companies to ensure you provide your clients with an exceptional service.

15. Sports or wine bar

Some common small town businesses include sports and/or wine bars, catering to the local clientele. These are great places for people to unwind and relax with a drink while supporting their favourite team. This is where local business owners can capitalise on the demand with a unique and convenient offering.

A sports and wine bar is a place where people go to get away and immerse themselves in something fun. As such, it requires a physical space where many people can gather together during the different seasons. Apart from premises, you’ll also need a licence to serve alcohol and display music/sports games.

You’ll need inventory such as alcohol and various furnishings to ensure that your patrons are comfortable. Several large screen televisions are a must. If you serve food, you’ll need a fully equipped kitchen as well as staff such as waiters and chefs.

16. Doctor’s practice

If you are a registered and licensed medical practitioner who wants to enjoy the sense of community while running a successful small town, then opening your doors and representing the local medical profession is the ideal choice for you. 

Running a medical business in a small town means organising premises that are conveniently located where you can serve your patients. You will also need to ensure that you have all the medical apparatus necessary to carry out your medical specialty with ease.

There will also be a cost for a receptionist to make your appointments and a bookkeeping service to ensure that you send out invoices on time. Other aspects to consider include your utilities, disposable items, over-the-counter medication for emergencies, etc.

17. Local artists

Moving on from the medical profession into the opposite direction of the humanities and arts, there is also an opportunity for local artists to make a living by running a successful business through selling their artwork. While you may need a studio later on, you can paint or sculpt from the comfort of your own home initially.

And if you keep going and stay determined, you’ll run a profitable business based on your innate talent. Once you’ve gathered a collection of artwork, you can then contact galleries to display it or use the opportunities that local markets present to showcase your work. For supplies, you’ll need the artwork materials that align with your needs.

From paints and brushes to clay and canvases, these materials are generally inexpensive, making this opportunity a low investment one that will ensure you get exposure for your name in the art market.

18. Hair salon

Another profitable business idea for aspiring business owners looking to start a new business is to open a hair salon. If you are trained and skilled as a hairstylist, you can perform the work yourself. However, if you aren’t, then you can hire a hairdresser to work for you. You also have a choice with regard to your location.

You can either work from a physical salon or you can create a mobile hairdressing unit that brings your service to your customers. For the salon, there will be rental and utilities costs. For the mobile unit, you’ll need a branded vehicle, insurance as well as money set aside for servicing and repairs.

19. Tutoring business

For those of you who are really good at certain school subjects, languages, musical instruments, etc., a great idea for a business to start is in the tutoring space. These small businesses can be highly profitable and rewarding as you help people improve their knowledge and understanding of subjects they find difficult.

Similar to a hair salon, you can either work from a particular location or you can save on rental costs and teach each of your students in their homes. It’s ultimately your choice. However, this opportunity allows you to capitalise on your talent and knowledge and you do not need much inventory to get started.

20. Veterinary office

Many people have pets in the UK and small town communities are no different. That’s why, if you have the skills, knowledge and qualifications, you can pursue a solid business idea in the form of a veterinary office. If you love animals and can do the work yourself, that’s a solid start to running your own business.

However, if you don’t, you can also hire a veterinarian to perform the actual work for you. Physical premises will be key in this regard, as will medication, disposables, equipment and accessories to outfit your vet office properly. You’ll also want to get a receptionist or a secretary to make appointments and hire a nurse to assist with more complex procedures.

As a side note, you can also consider selling pet accessories, toys and food to boost your earnings. Naturally, you’ll want to run a business that’s legitimate so you will have to have the necessary business and professional licences and permissions to practise.

21. Small town bakery

Small towns are typically associated with freshly made food. And nothing beats the rich and amazing aroma of baked treats such as croissants, muffins, freshly baked bread and more. If you’ve got the skills of a baker, then opening a small town bakery could be the ideal business opportunity for you.

Apart from the physical premises where you’ll sell your goodies, you’ll also need the right appliances and equipment such as ovens, blenders, mixers and more to get started. You’ll also want to keep food fresh so using the right window displays will be a good idea.

A lot of electricity or gas will go into your baking venture so be sure that you’re prepared for the cost of utilities at the end of the day. Plus you may need to hire an additional employee or two to help you run the counter while you do what you’re best at in the kitchen.

Sourcing fresh ingredients will be another key cost. As will marketing your bakery at the beginning to ensure you get more foot traffic and buyers flocking to your store.

22. Liquor store

Earlier, we mentioned potentially opening a sports or wine bar. However, that requires staff to man the venue and ensure your patrons’ drinks are always topped up. If you’d like to have a less customer-service oriented business in the same niche, you could also consider opening a liquor store.

This store will require a physical space with good opportunities to park nearby. And apart from renting or buying the premises, you’ll also need to spend a considerable amount on your inventory because it can add up quite quickly and will be one of the costliest aspects of running the business.

Once you’ve created the set up inside (fridges, shelving, furnishings, cash register, card acceptance, etc.) and you’ve figured out your logistics and supply partners, you’re well on your way to earning from your profitable business. Just bear in mind that you’ll need the right licences and permissions for selling alcohol and keeping the rules in mind regarding the trade will help you avoid any potential legal fallouts.

23. Flower shop

If you are considering shop business ideas, why not opt for the more unusual and rare kind of shop in the form of a flower shop? For this business idea to take off, you’ll need to have an exceptionally strong supply chain and transportation network that can deliver fresh flowers to your shop on a regular basis.

You’ll also need to have a plan in place for what to do with flowers that you do not sell. Running a flower shop can be done from a shop or from a small town market. You may want to start small until you’ve generated enough capital to cover the costs of your shop. You’ll need a cool store where you’ll keep your flowers as some are quite temperature sensitive. Others will need more light.

It’s a fine balance of ensuring that the flowers don’t wilt before you’re able to sell them. Talk to suppliers that you can trust and focus on building sound relationships to ensure the smooth running of your flower shop business.

24. Local supply shop

Of the multiple retail business ideas we’ve covered here, you can also consider starting your own local supply shop. What kind of supplies are we talking about? Anything from hardware and equipment to tools and accessories. You can also sell art supplies, painting supplies, and a whole lot more as you cater to your customers’ needs.

Shop ideas like this are quite versatile and handy. And they see a substantial amount of demand from local communities for people who enjoy DIY projects. For this business idea to take off, you’ll want to secure premises for your shop. Then, you’ll want to stock it with the right materials. And you’re ultimately ready to sell. 

Other considerations include hiring staff, ensuring a seamless supply chain, marketing your products and business, utilities, bookkeeping, cash and card acceptance, etc.

25. Gym

The last business idea on this list is penetrating the small town fitness market with your own gym or fitness studio. There’s rising health consciousness worldwide and small towns are no exception to following a healthy lifestyle through exercise. 

As a mid-size investment, you’ll need a physical space from which you can offer fitness classes. The other part of your investment will be in the gym equipment that needs to be purchased. You’ll also want to hire a team of personal trainers who can help your clientele reach their health and fitness goals.

Further costs apart from business registration and utilities include outfitting your gym with a dedicated shower area. In addition, you’ll need to pay a team to keep your gym hygienic and sterilised at all times to prevent the spread of dirt and bacteria.

How to Choose the Right Small Town Business Idea

Above, we’ve presented 25 small town business ideas that you can select and get started on the road to entrepreneurship. However, how should you choose the best idea for you? Below are some criteria worth considering as you embark on your business journey.

Budget

Every aspiring entrepreneur is different and has different budgets. Some have savings, some will borrow from friends and family, while others may seek partnerships, investors or even speak to a lender for financial assistance.

Whatever your available budget and access to financial resources is, you need to take into consideration obvious and upfront business costs as well as hidden costs that may inadvertently add up over the course of time.

Skills and experience

The second consideration you should bear in mind when starting your small town business is your skills and experience. Some business opportunities enable you to start without prior knowledge or experience in a certain field while others are more specialised and require a specific skill set and knowledge.

Sometimes, further professional and educational qualifications are required. Make sure you are fully aware of all the requirements that go into starting your business in terms of relevant experience and skills.

Personal and professional goals

Another criteria to consider is what you aim to achieve with your business. Is it something that you’d like to invest in for the short to medium term and then sell on or is it something you’d like to immerse yourself in for a long period, and even think about retiring through it?

Also consider other aspects such as serving a local community, becoming a respected member of the community, your prospective earnings and what they will enable you to afford and other personal and professional goals you may have.

Location and demand

Finally, you need to carefully study your chosen location to determine the levels of demand for your product or service. This market research will help you evaluate whether your business has the potential to succeed or whether demand is low and you’ll only be breaking even for a prolonged period of time.

The size of the population is another important factor to consider because this will be your market. The more people you can serve with your business, the better for your business. However, small towns are small in population by nature and you need to evaluate your prospective earnings based on a combination of average local income and demand.

Conclusion

Starting your own business in a small town holds a lot of charm and potential for growth as you embark on a quieter and more relaxed lifestyle while pursuing your professional and personal aspirations. It’s a great way to escape the nine-to-five rat race while building your dreams one day at a time.

While it will require careful evaluation and planning for greater levels of success, with the right partner at your side to help you with payment acceptance, you’ll be ready to break through barriers and launch a business that is highly rewarding, both personally and professionally.

Frequently Asked Questions

What are the requirements of starting a business in the UK?

To start a business in the UK, you need to register the business under one of several business models or structures. You’ll also need to create a business plan to secure financing as well as ensure that you have all the necessary licences and insurance in order to protect yourself from not complying with regulatory requirements.

How much does it cost to start a business in a small town?

Starting a business in a small town can be affordable and require little start-up costs, depending on the type and nature of the business you plan to open. The cost will depend on your specific business niche. Some of the highest costs of business ownership are premises rentals and/or purchase of immovable property.

Which is the best small town business idea for me?

The best small town business idea for you will depend on your budget, skills, experience, and professional aspirations.