7 Small Business Ideas That Every Town Needs

7 small business ideas that every town needs

So you live in a small town and want to make money and start a small business. so we have 7 small business ideas. But you're unsure which business ideas would work best to make money in your  community and have the greatest chance of success. So you're looking for the best business ideas that your small  town or rural community absolutely needs. Well, we've used our own small town roots and some stone-cold  money making facts and have come up with seven small business ideas just for you.

Let's take a look at them:

• Grocery Store

• Hardware Store

• Coffee shop and diner

• Hair salons and barbershops

• Auto Repair Shop

• Gas Station

• Convenience Store

These are small businesses ideas that every town absolutely needs to survive and thrive,  which makes them excellent prospects for A new entrepreneur looking to make money.But before we get to that secret, we need to answer the question what makes these  businesses so essential to small towns in America? To get that answer we'll start the countdown  with small business money making idea number seven.

The seventh case of small business ideas: Grocery Store

Grocery store is one of small business ideas. People who live in small towns all need certain basic products and services. But a grocery it's an expensive business to get started with pretty low profit margins,  which is why we've put this business in the number seven spot. So here's some numbers to consider. Grocery stores and supermarkets are an $800 billion industry in the United States. There are over 63,000 grocery stores and supermarkets operating in the U.S., of all sizes.

The grocery business has grown 2.6% annually over the last five years. It  is forecast to continue growing by 3% every year through 2030. So does your small town need this business? That depends on a lot of factors,  including how big your town is and if you already have a grocery store or supermarket. If you live in a town of a couple hundred people, it could probably support one small grocery store.

Larger towns, or towns with large surrounding rural populations,  can often support more than one. Remember, competition is not a bad thing. But let's say you've done your due diligence and come to the  conclusion your town is in need of this business. What can you expect? Well, start-up costs are high. Rent, shelving and initial inventory can run in the hundreds of thousands of dollars.

Profit margins are thin - on average three percent - so you'll need a steady flow of customers. And then there's the secret way to break into small business,  including the grocery business – it's to buy an existing one. Independent local grocery store owners all have reasons to eventually sell their business,  think retirement, divorce, illness, death. i think the seventh case of small business ideas is very good.

The sixth case of small business ideas: Hardware Store

The sixth case of small business ideas: Hardware store. If things need fixing, you start at the hardware store. People in small towns were DIY before DIY was a thing. The hardware industry is a $35 Billion business in the United States. It grew during the last few years because so many people were at home doing renovations,  but it's expected to slow down by 1.5 percent in the next year as things normalize again.

There are almost 15,000 hardware stores in the United States but if you have a  Home Depot or Lowe's nearby, maybe avoid this idea as a small business. However, if you're town is lacking a place to get tools and supplies,  the average store has a ten percent profit rate. That's not bad for retail. If you can provide reliable products, with helpful, knowledgeable, advice,  you're on to a winning formula to make money from a small business that every community needs.

The fifth small business ideas: Coffee shop and diner

The fifth small business ideas: Coffee shop and diner. Coffee shops and diners not only serve an important function - coffee when you need  it most and a possibly some eggs and bacon - but they also bring a community together. They give small towns unique and affordable places for residents to  meet up and share stories all the while grabbing a quick coffee and bite to eat. And who would your customers be? Well, almost everyone.

66 percent of all Americans over 18 years old drink coffee everyday. The majority drink at least two cups a day and spend $2000 on average a year on coffee alone. For coffee shops, the profit margin is usually 25 percent on average. In most towns, coffee shops and diners aren't fancy establishments. Simple decor and simple food at decent prices are the name of the game.

The fourth small business ideas: Hair salons and barbershops

Now just before we get to the number one place on  our list of ways to make money with essential small town business ideas,  we've included an extra bonus idea for you to consider: Hair salons and barbershops. Hairdressers and barbers essentially do the same thing, but are very different businesses. For starters, the barbershop market in the United States is a $4.5 billion industry.

By comparison, the U.S. hair salon industry is a $46 billion industry. What they have in common is both industries are growing and every  small town needs them because hair is everywhere. Hair salons and barbershops are true small businesses and are probably the  cheapest to get up and running of all the small businesses mentioned on this list. But there's also a lot of competition out there for that exact same reason.

There are over 100,000 barbershops in the U.S. and over 900,000 hair salons. But keep in mind, a hair salon can be as simple as a single hairdresser working out  of their house in a converted room or a full set up on main street with multiple chairs,  equipment and full range of products for sale. Employee turn-over tends to be high in this small business as customers tend  to be loyal to the individual hair dresser as opposed to the business location itself.

And that's further proof of the small town demand for this type of business,  when an employee leaves a hair salon, more often then not, it's to start their own business. Barbershops tend to be walk-in, not appointment based which makes them informal meeting places. If you have to sit and wait for your cut, chances  are you're going to have a conversation with people you know and even strangers. Places like that are harder to find these days and  it's likely why they remain a popular business model after all these years.

The third small business ideas: Auto Repair Shop

There are over 264,000 auto repair shops in the United States. That's a lot. The auto repair industry is a $68 billion industry in the U.S. And here's another important percent of auto  repairs are done by small, independent businesses. The remaining 25 percent are done at dealerships. Add to that the industry is expected to keep growing by 10 percent through to the year 2026. Like most of the businesses on this list,  you just can't go out and open it up without some experience.

Being certified by the National Institute for Automotive Service Excellence or ASE isn't  a requirement in every area, but it's pretty much a necessity to obtain liability insurance. That said, before you can open your own shop,  most areas require you to obtain a general business license. The exact license requirements vary from state to state and even and county to county.

You'll need to do some local research with town officials to find out what's needed. Start-up costs will be high because there's a lot of equipment that's needed for a full shop. But don't forget about buying an exiting shop. The average mechanic in the United States is 40 years old. That means on the upper end, there are a lot of older entrepreneurs  out there running their own shops, who are likely looking for a good retirement exit.

How much money you can make from a business idea like this depends on a lot of factors such as: How much are you charging for your work? How long does it take you to complete a job? How busy are you? A good reputation is a big factor in how busy your repair business is. Do you have other licensed mechanics or repair technicians working for you? All these things and more will determine who  much money you actually take home at the end of the day.

The second small business ideas: Gas Station

Despite the growing popularity of electric vehicles, gas stations are  what keeps people in small towns moving and working so they are an essential business. And it's highly likely your town has one or more already. That said, there's still plenty of older,  run down, independent stations out there that are looking for new ownership. The average profit margin on gas station sales is between 3 and 5 percent, which isn't very high,  but the profit comes from volume and other purchases made at the checkout.

Gas stations are a difficult and expensive business to start from scratch. Because of the nature of handling and storing fuel,  there's many permits that are needed to run this type of small business so a lot of planning,  time and money is needed before you even make your first dollar. And they are also often paired with auto repair shops, car washes and convenience stores or even  bait and tackle shops, depending on if you're close to tourist country.

The First small business ideas: Convenience Store

Which brings us to the number one way to make money with essential  small town small business idea on our list: Convenience Store. Convenience stores are pretty common, but this type of store comes in many different  forms and it's just assumed you'll be able to find one quickly and easily. People love convenience - the convenience store industry has  grown 37 percent in the last decade and is still expected to grow more.

Convenience stores mostly cater to quick impulse-type purchases. Think snacks, drinks, lottery tickets, those types of things. And they make quite a bit of money because they charge more for those items since they  carry less of them in stock and, you're paying for the convenience as well. And in a small town, the convenience store can hit so many markets. It can be paired with a gas station - another small town  essential business we've already mentioned.

The gas itself doesn't make a lot of money for a gas station,  it's the purchases made in the store where the real profit is made. Convenience stores can also double as a mini-grocery store,  carrying staples like bread, milk, eggs, cereal, toilet paper. It can also be a take-out donuts and coffee stop, a beer and wine retailer in many areas, ice cream  counter, or even a lunch spot where people can grab per-made sandwiches or slices of pizza to go.

Convenience stores are versatile, flexible and profitable. No specialized certificates are needed to operate one and with good employees,  they can be run 24 hours a day. That's why this business idea landed in our number one position. What do you think about our number one pick? What would you have chosen? Let us known in the comments below.

You can read more about small business ideas in Here

But to make each of these ideas, you need basic solutions that are detailed in the table below:

A tip from Thomas J. Watson for small business ideas

Here is a bonus small business tip from one of the  world's greatest businessmen, Thomas J. Watson,  a failed sewing machine salesman who would later become the CEO of the company that is today IBM. Watson once said: “Would you like me to give you a formula for success? It’s quite simple, really: Double your rate of failure. You are thinking of failure as the enemy of success.

But it isn’t at all. You can be discouraged by failure, or you can learn from it, so go ahead and make mistakes. Make all you can. Because remember that’s where you will find success.” For new entrepreneurs, it can be intimidating to take the plunge and try something new. However, Watson gives an important reminder that failure should not be  feared but rather embraced as a learning opportunity. We have to recognize that it is through failure that we gain invaluable insight  and understanding needed for our eventual success.

We must remain open to making mistakes and  experimenting in order to unlock our full personal and business potential. True success comes from pushing ourselves out of our comfort zone and trying things  even if they don't succeed the first time around. And while our own failure is a great teacher,  there is nothing wrong with learning from other people's mistakes and successes.

You can also watch this video in this regard: about best small business ideas at home