40 Most Profitable Small Town Business Ideas (2023)

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Most Profitable Small Town Business Ideas

Are you looking for ways to earn extra income or start a side hustle in 2023? If so, then you might want to consider starting a small town business. There are plenty of opportunities out there for those who have the skills and knowledge needed to succeed.

Small towns tend to be less competitive than big cities because they don’t have as much competition. This means that you can charge higher prices for your services without having to worry about other businesses stealing your customers.

Starting a small business can be challenging, especially if you don’t have much experience. In addition, running a successful business requires a lot of time and effort. There are several types of small-town businesses that you can choose from. If you want to get started, the following are the 40 most profitable small-town business ideas that you can start in 2023.

1. Ice Cream Shop

Are you looking for a profitable small-town business idea? If yes, then an ice cream shop might be a good option. Ice cream shops are very popular across the globe. They offer delicious flavors and serve them at reasonable prices. The demand for ice cream has increased over the years due to its health benefits. People also enjoy ice cream because of its sweet taste.

Must read: 20 Amazing Business Ideas for Teens

2. Bakery

This is another of the best small-town business idea. Baking is a wonderful hobby. Not only does it give you the chance to cook delicious treats for yourself and others, but it also helps people get rid of those extra pounds they’ve gained over the holidays. Starting a bakery doesn’t have to require a lot of money. In fact, many bakers use their own home ovens to bake their goods, saving money and making sure everything turns out perfect.

3. Fish Farming

Fish farming may not sound exciting, but it’s actually a pretty cool way to make some extra cash from a small town. Most people don’t realize just how much fish farms contribute to our economy, and they really don’t know about the fish farming jobs either. Since fish farmers need to purchase their food and supplies, they often end up spending more than what they earn. However, once you invest in the right equipment, you’ll start seeing profits in no time at all.

4. Mushroom Farming

Mushroom growing is becoming increasingly popular, especially among chefs who want to add variety to their menu items. Because mushrooms are fungi, they’re relatively cheap to buy, they grow easily and can be grown in almost any type of environment. You’ll find mushroom farming businesses in both urban and rural areas, and they produce enough income for a single entrepreneur to make a comfortable living.

5. Farmer’s Market Vendor

If you enjoy cooking and eating, then starting a farmer’s market stall might be the ideal way to combine your interests. A farmer’s market provides local residents with access to fresh foods while giving vendors the opportunity to connect directly with consumers. Farmers’ markets aren’t open 24 hours a day, seven days a week, so you will likely be able to select a more flexible schedule than you could with a full-time job.

Must read: 20 Best Home Based Business Ideas for Moms

6. Food Stand

Starting a food stand gives you the opportunity to share your passion for cooking with others, and turn it into a profit-making venture. If you have a special recipe that becomes wildly successful, then consider opening a catering company or restaurant someday, in this business you can earn very decent money from a small town.

7. Medical Store

Starting a medical store offers you a unique opportunity to help people improve their quality of life. Many medical stores specialize in natural remedies and products, meaning you can provide effective treatments without using dangerous pharmaceutical drugs, and a medical store is the most profitable small town business.

8. Chicken Farming

Chicken farming is a great way to make money in a small town or rural if you live in a small town where people don’t have much access to fresh food. If you have a lot of lands, you could raise chickens and sell their eggs. You would need to find out what regulations apply to raising poultry in your area before starting.

9. Thrift Stores

Thrift stores are everywhere, not just in small towns or rural. You can start a thrift store business in your community. Sell old clothes, shoes, household items, and collectibles. If you do well, you may even make money selling goods on eBay!

10. Handyman Service

If you’re handy around the house, then consider starting a handyman service, with this business idea you can definitely earn good money from a small town. People need help fixing things around the home, this is a nice small town business idea.

11. Start A Restaurant

Starting a restaurant is a great business idea in rural or small towns. Most people love having food delivered right to their homes or offices. You can run a catering service for parties and events.

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12. Catering Services

Catering services are popular among busy professionals. Starting a catering service is a good way to get extra income from a small town, and rural.

13. Sugarcane Farming

Sugarcane farming is a viable business idea for anyone who lives in a tropical country. Sugarcane is a type of grass that grows naturally in warm climates. The farmer harvests sugarcane in the summertime and refines it into sugar. Sugar cane juice is used in making soft drinks, alcohol, and many types of foods.

14. Coffee and Tea Shop

Starting a coffee and tea shop is a good business idea in a small town. Many people enjoy a nice cup of java in the morning. You can brew your own tea and serve hot beverages throughout the day.

15. Food Truck

A food truck is a vehicle designed specifically for mobile restaurants. These vehicles are equipped with refrigeration units, cooking facilities, and seating areas. A food truck can provide a variety of foods, including breakfast, lunch, dinner, snacks, drinks, and desserts. In addition, they are often open 24 hours per day.

16. Dry Fruits Shop

A dry fruit shop is a small retail establishment that specializes in selling dried fruits. Dried fruits are often sold in bulk, making them perfect for customers who want to stock up on their favorite snacks. Many people buy dried fruits because they’re healthier than fresh ones since they don’t require refrigeration.

17. Home Cleaning Service

A home cleaning service provides housecleaning services all over rural, small towns, or big cities. These services range from deep cleaning to basic mopping. Most of these businesses hire professional cleaners to do the work. However, if you own a vacuum cleaner, mop, and other household equipment, you can start your own home cleaning business.

18. Computer Repairing Business

A computer repair shop offers repairs on computers, laptops, tablets, and smartphones. Computers break down over time, especially if you use them frequently. Therefore, having a computer repair business lets you fix things before they become unusable.

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19. Mobile Repairing Business

A mobile repairing business fixes phones, tablets, and other electronic devices. Like computer repairs, electronics break down over time. By fixing these items early, you prevent them from becoming completely useless. Starting a mobile store is s good small business idea for making money.

20. Hardware Store

A hardware store sells tools, nails, screws, hammers, paint, and other building materials. People need these supplies to build homes, offices, garages, sheds, and other structures. Starting a hardware store is a good idea if you enjoy working around tools and selling products.

21. Gardening and Landscaping

Gardening and landscaping businesses help homeowners improve their gardens and lawns. They sell fertilizer, sod, mulch, seeds, and other gardening supplies. If you love being outside, then starting a gardening or landscaping business could be a fun side hustle.

22. Grocery Store

Grocery stores are a great way to start a small business. If you live in a rural area where people don’t have access to fresh produce, then opening a grocery store may be a good idea. You could sell fruits, vegetables, ration, bread, dairy products, and even snacks.

23. Clothing Boutique

If you love clothes and want to make some extra money from rural areas, or small towns, starting a clothing boutique might be a good option. You would need to buy clothes at wholesale prices and sell them at retail prices.

24. Pet Grooming and Boarding

Pet grooming and boarding businesses are booming right now. People are always looking for ways to cut costs and save money, so if you own a pet, you should think about starting a pet grooming and boarding business.

25. Tutoring Service

Tutoring services are becoming increasingly popular. If you’re passionate about teaching others, then starting a tutoring service might be something you’d enjoy doing.

26. Specialty Health Food

Starting a specialty health food store is a great way to provide healthy options to customers who are interested in natural remedies. Many people are turning towards alternative medicine because they believe it’s safer than traditional drugs.

Must read: 20 Profitable Businesses in India with Low Investment

27. Packaging

Packing snacks and selling them online or offline is a perfect way to make extra cash in a small town. You can find many different types of snack foods, including granola bars, trail mix, and chips.

28. Snack Foods

Snack foods are a great addition to any party. Starting a snack food company is a fun way to earn some extra money while providing tasty treats to friends and family.

29. Unisex Saloon

A unisex saloon is a business where men and women can both go to get their cars repaired. It’s a great idea for small towns and rural communities. You could offer services such as oil changes, brakes, tune-ups, and minor repairs. If you’re going to have a unisex saloon, make sure it’s located in a larger town or city.

30. Auto Repair Service

You could open an auto repair shop that specializes in servicing vehicles. People need their cars fixed, especially if they live in a smaller community. You could provide them with quality workmanship at affordable prices.

31. Car Wash

If you want to start a car wash, you’ll need a location that’s close to residential neighborhoods. You could use a commercial-grade washer and dryer to clean cars. Ensure that your car wash is well advertised.

32. Body Shop

This is a good business idea for people who love working on cars. There are many different types of body shops. A full-service body shop might do everything from paint jobs to customizing the vehicle. Other types of body shops specialize in specific things, such as collision repair.

33. Tire Care Center

Tire care centers are popular businesses. They sell tires, wheel alignments, brake pads, and other automotive products. You could buy used tires and resell them to customers.

Must read: 20 Most Profitable Wholesale Business Ideas

34. Gas Station

Gas stations are always busy places. You could run a gas station and sell snacks, drinks, and other items. You could even sell cigarettes and alcohol.

35. Used Cars Dealership

Used car dealerships are popular businesses. These stores purchase old cars and then sell them to customers. You could buy a few cars and then resell them to make money.

36. Personalized Candy

Company Starting a candy company where you create custom candies would be a lot of fun. From candies shaped like favorite cartoon characters to gourmet chocolates, there’s no limit to what you can do.

37. Custom T-Shirt Printing

Custom t-shirt printing is another fun way to earn extra income while staying in your pajamas. You can get creative and print almost anything onto clothing including designs printed right onto the material.

38. Candle Making Business

Candles are a relaxing hobby to make and sell. There are many different ways to turn candles into profit making opportunities. Candles can be sold wholesale to stores like Anthropologie or online via Etsy.

39. Flower Arranging Business

Flower arranging is a fun hobby to make money doing. All you need is some basic supplies and knowledge about flowers and arranging them. You can either start small offering arrangements only to friends and family or start charging money for your services. Either way, you’ll be able to make money off of something you love doing.

Must read: 20 Most Profitable Rental Business Ideas

40. AirBNB

AirBNB is a website where homeowners rent out rooms to visitors. Because both parties benefit, it’s a win-win situation. Hosts get paid for letting strangers stay in their homes and guests get to sleep in unique places. This is a fun way to travel while making money.

The following are some tips to help you get started in your own small town business!

  • Be sure to find out what is already happening in your community before you start your small town business idea. If something is already going on that you think would work well for your small town business, then it’s a good place to start. You can use Facebook, Google, and local newspapers to investigate ideas.
  • Do your research. Before starting your small town business, do your homework. Find out about the industry, demographics, competition, and more. Make sure that your small town business fits into the market.
  • Start slowly. If you want to make money, you need to start slow. Don’t go in head first. Get feedback from people who have been successful in the same field. Ask them how they got started.
  • Network and network. Connect with other entrepreneurs. Join networking groups online and offline. Attend seminars and conferences where you can learn more about your small town business.
  • Know your limitations. When you’re starting your small town business you should know what you can and cannot do. What you can do is different than what you can actually do. You may not be able to build a skyscraper or write a bestselling novel. But, you can still start a small town business.

Must read: A Guide to Starting a Beverage Business in India

FAQs on starting a business in small town

What is a small town?

A small town is defined as a community where the population is less than 50,000 people. Small towns tend to have fewer businesses and industries than larger cities. Many small towns are located in rural areas, making them ideal places to start a business.

Why do I want to open a business in a small town?

Small towns often offer lower rents and taxes, which make starting a business easier. Additionally, they provide a sense of community and help foster a strong local economy.

What do I need to start my own business?

You don’t need much to start a business. All you really need is a good idea and some capital. If you have both of these things, then you’re ready to go!

How do I find customers?

There are many ways to find customers. One way is to look at what’s already out there and try to improve upon it. Another way is to create something completely new. Either way, you’ll want to make sure that you’re offering something unique and valuable to your potential customers.

Do I need any special licenses?

No. In fact, if you’re starting a business in your home, you may not even need a license. However, if you plan on selling your product outside of your house, you’ll likely need a seller’s permit.

What’s the best time to start a business?

Anytime is a great time to start a business. However, if you’re looking to build a long term company, you might want to wait until you have a few years of experience under your belt before taking the plunge.

How much money do I need to start my own business?

You should have at least $1,000 to get started. You may need more depending on what type of business you choose. If you plan to purchase inventory, you’ll need to budget for additional funds.

Must read: A Guide to Starting a Food Truck Business


The conclusion of our research was that small town businesses have many advantages over big city business ideas. Small towns tend to be less competitive than cities, they are often more affordable, and they offer a slower pace of life. In addition, small towns are often more family-oriented and friendly.

In conclusion, We believe that small town businesses are great places to start a business, We hope that you enjoyed reading this article about small town business ideas. If you have any questions about the information provided here, please comment below. Thanks!

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