Small town business ideas.

[EC44]

Okay, so I live in a small town which has a population of roughly 5,000 within the limits and another 10-15,000 people in the rural area who frequent the town.

We have a small cafe that does well, but mostly it`s Walmart and other big box stores that are doing well. I have been debating opening up something downtown (which seems to be dying..and it`s no doubt because of Walmart).

With that being said, there is cheap retail downtown and I want to take advantage of that, perhaps with something unique that Walmart or various other big business cannot offer. Also there is the sense in town to try and support local business now, as everyone has seen the affect the Walmart has had on the town and other business. But, no one wants to risk opening new shops..and when they do, it`s always something stupid. Like a cheap ass dollar store.

Other things we have:
3 Tim Hortons (Most per capita in Canada)
McDonalds, A&W, Dairy Queen, Subway, Quiznos, Pizza Hut, Pizza Delight
Theater
Walmart, Super Store (large chain of grocery stores in Canada),
Sobeys (Another large grocery chain.)
Various smaller stores, that sell mostly nick-nacks, your typical small town junk. Sporting good store...oh and the liquor store, of which is controlled by the province, so no way to get in on that. <3 Beer.

Any ideas, has anyone opened something up in a small town that has had success?

[speedguy]

The stores you have mentioned seem to focus mostly on the food and grocery businesses. What about computers? PC repair/setup + graphic design/logo setup + business stationary?

Or may be you can try to focus on the 10K rural people around you. See what they need. Maybe a product or maybe information(via website) on whats going on in the city such as local jobs, information about local product sales/discounts that they can avail (but that they don't get to know about in time because that info is not available to them easily)

[EC44]

Yeah, there has been computer shops but they usually fail. There is a guy in town who does general repair, he does well but he has been around for 20+ years. I have well..lets say half a degree in Computer Science, and he is the only one I trust with my hardware. Lets just say he has been around an iron long enough that he can touch the tip without flinching.

Anyway, I do have a few web based projects on the go, but I want to go retail for some reason - small business which I can operate daily and have a small office in back in which I can do my own work out of during the day and the rest during the night. My father is also semi-retired, so I have an intelligent employee I can count on who can cover the store when I am not around.

I am thinking some sort of bulk store, I think it would do well - but it`s kinda risky to go that niche in the small town.

[awayoflife]

It sounds as if the town is starved of entertainment! What do the teenagers and kids do? Maybe think of something to cater to their needs and wants?

[EC44]

It is, the coffee shop has jams from time to time, it`s a hang out spot I guess. They recently took DOWN the skatepark that a group of kids spent years raising money for, and $50k raised because there was damage done to a vehicle. The town is VERY conservative and VERY stupid, I really need to oust the town council. Unfortunately, I live JUST outside the limits and thus, cannot vote/do anything.

[mthomas]

My only suggestion is be careful of trying to beat Walmart on price. They can easily cut their prices even more and still remain profitable, where you are left having to lower your prices, resulting in a loss. Instead, try to differentiate yourself by offering higher priced, but higher quality products.

Walmart is by no means socially responsible and will not hesitate bending laws to put you out of business. Therefore it is very possible they will engage in practices such as predatory dumping, where they sell their products at a loss, knowing you can't do the same.

I like that you are going for retailers that are unique that Walmart doesn't compete in. Capitalize on this opportunity to niche down so you can utilize premium pricing.

[awayoflife]

I think that the provision of some sort of entertainment is necessary. If possible get the kids involved in setting it up. This will mean that they have a personal connection with it so the likelyhood of damage being done is reduced. Maybe you could raise money for another skate park? Or if there is a warehouse somewhere in or near the town you could buy/rent it and build the skate park inside it. Try to get a skate shop there to help cover the rent and sell drinks, bars, burgers etc to bring in more money. Sell it to the council as creating employment and keeping the kids out of trouble. Advertise on the walls aswell maybe?

[Exact]

I also live in a small town. My wife and I started a web-based software company. You might do that or try beating Wal-Mart by doing online retail. After all, their web site sucks and they are sure to eventually be doomed by online retailers if they don't get with the program!

[ScottRobertson]

My only suggestion is be careful of trying to beat Walmart on price. They can easily cut their prices even more and still remain profitable, where you are left having to lower your prices, resulting in a loss. Instead, try to differentiate yourself by offering higher priced, but higher quality products.

I, obviously, agree that you will not beat Walmart in pricing. However, you might still be able to compete with them if your small town hates Walmart/"Corporate America."

It would be irresponsible of me to advise you to sell premium products without knowing more about your market.

Walmart is by no means socially responsible and will not hesitate bending laws to put you out of business. Therefore it is very possible they will engage in practices such as predatory dumping, where they sell their products at a loss, knowing you can't do the same.

It would be fantastic if they tried that. It is illegal in the US to attempt to eliminate competition in that way. Sue Walmart and use the money for another venture!

[ScottRobertson]

I think that the provision of some sort of entertainment is necessary. If possible get the kids involved in setting it up ... Or if there is a warehouse somewhere in or near the town you could buy/rent it and build the skate park inside it. Try to get a skate shop there to help cover the rent and sell drinks, bars, burgers etc to bring in more money. Sell it to the council as creating employment and keeping the kids out of trouble. Advertise on the walls aswell maybe?

I like this idea. If the kids were able to raise that much money for their skatepark it tells you two basic things:

1) skate market exists
2) they are quite serious about it

Hell, you might even be able to get the kids to help as small time investors. Pay them interest (which they will essentially pay back to you when they visit the indoor skatepark every day!) and give them entertainment.

There is a member or two on this board that seems to be quite involved in the skate industry (his name is Sk8ramp or something). Try speaking with him about this.

[Doodyps]

It really depends on exactly how much money you want to make. A town of 5k isn't a great market if you want to be a multi millionaire...unless you invest in real estate. If your community is really conservative, there may be something too that. What about a Wine and Cheese place that serves lunch? I know of one that opened up in New Orleans and people love it. It carries all sorts of stuff you can only get in France otherwise. I don't know much about where you live, but if politics is important, maybe a printing business that could supply the town with cheap signs and other means to advertising. Ive had an idea for a while to turn making those plastic signs used in campaigns and marketing more profitable.

It really depends on how much money you want to make. Is your goal to live off your business and stay in the town or is it to raise money for a bigger future venture in a big city?