Big cities are a great place to start a new business, but there is something to be said for small town business life as well. In addition to outstanding customer loyalty if you are successful, promotion can be easier and cost less. Word of mouth is highly effective, as are other forms of simple, low cost advertisement. Rural business loans can also be a boon for small town business owners.
Start With Location
Most small towns have a “main drag,” and if you can score a location along this route you are golden from the get go. This is where everyone in town travels everyday at some point, and just being in sight every day is a great way to get the word out. Add a marquee out front with specials and you are set. If you cannot find a “main drag” location, find the next best thing, taking into account proximity to competition.
Take Competition Seriously from the Beginning
Small towns are different in that there may not be room for more than one type of a business. If there is more than one of the same kind of business, barring any specific uniqueness, the best is really going to win. If the area is small enough, there isn’t going to be a lot of convenience business, meaning customers are going to go to where they can get the most for the least because everywhere is convenient. Two pizza joints, two ice cream parlors, two boutique gift shops, or two consignment shops, whatever the case may be, there are only so many customers to go around in a rural area. This mean your better either be certain your product is the best for the best price or you have a unique edge, such as free toppings on your ice cream or brick oven pizza over traditional style pizza.
Take Advantage of Rural Business Loans and Programs
There are a few out there, include the Small Business Administration’s Business & Industry (B&I) Guaranteed Loan Program. The funds can be used for working capital, machinery and equipment, buildings and real estate, and even some types of debt relief. Do some research and see what may be available to you.
When you are ready to look for rural business loans, Biz2Credit can help. Our network of lenders offers various financing products, including those backed by the Small Business Administration. Visit Biz2Credit.com today for more information.