Why setting up business in a small city a good idea

As we all know there is a huge demand towards big cities for jobs and other business opportunities as compared to smaller towns. But with these multinational companies failing to provide the expected standard of living, almost everyone is switching to their good old small towns. Small towns can be a great choice for startups or any kind of franchise. For every business person knows- cut costs to increase profits, but this might not hold true when it comes to setting up a business in a big city with additional charges such as utility bills, payroll, shipping costs and other miscellaneous expenses.

Well, these charges can be reduced or may be cut down if you plan to set up a business in a small town. It’s a taboo, that successful entrepreneurs lead their businesses in big cities only whereas a businessman can have a completely different image in a rural place of residence. Another added perquisite of initiating a business venture in a small town is- it requires an investment way lesser than what any bigger city would require.

Moving further, here are some of the major reasons why you should consider a smaller town for a flourishing business.

Fresh ground for development

Being located in a smaller city gives you an advantage to be a pioneer in the field of development, which can further help you to build closer relationships with the local business owners and remain at the top of your community’s development through your business.

It takes collaboration to build a business

You will always need and external relationship with the suppliers, people in your business network and your community, no matter how hard you are willing to work inside the business.

Collaboration in small towns is more about holding events, supporting other business that go with it and involving ourselves socially. The truth is, collaboration is the efforts you put in to reach out to the public at large.

Brands are all about a story and selling an experience

Always remember you are a brand more than a product or a service when you start a venture either a small one or a large one. Moreover, you are selling an experience. With today’s fasting moving trends of social media and internet, people are curious to know who you are and what makes you outstanding in your field and to add to this they would also want to relate to your vision. Every little thing of your business tells a story about how much you care and what customer experience one might expect.

Don't forget to stay a step ahead of the market

It is rightly said- businesses that never change are now forgotten. There are always changes in the trends, people and technology even if your town never seems to change. Entrepreneurs that do not innovate will fail to hold their position in the market. People tend to always want for something new and different. The components for success in a small town are the same as anywhere else, but with a healthy dose of localized flavor.

Easier Business Organization

You don’t always need to be out of the box to set up a base for your business ideas. Any new initiative relative to any field can reach out to people very easily. It consumes considerably less amount of time to create a niche in market for your business organization. Since there is less competition in a smaller town there would also be less amount of stress and load when compared to big cities. There is tremendous scope of improvement in a smaller city which will help you reach greater heights.

Cheaper Labor

The labor in small city is cheap when compared to the labors in the bigger cities because the standard of living is low when compared to the larger cities. But that doesn’t mean you take the labors for granted. You have to always keep them motivated and encourage them to work for you in the best possible ways.

Minimal Starting Capital

Starting a venture in small city is not easy but it is not as difficult as to start in a big city. The capital investment required to start a venture in small city is quite manageable and minimum. Hence, there would be no burden of clearing loans or any type of borrowings. Another advantage of setting up a business in small town is- with low investment you will reap huge profits in the future.

Reputation is Important

People need to know about your business in order to form opinion about it, and these opinions would further lead to let them decide how to relate and interact with it. Your business requires a reputation because it needs to stand apart from other business competitors. It should be beyond the ordinary. Not always your business reputation will be in your control, though everything else would be.

You can always do things which you feel will build a rapport with the customers and help create an impact on how they feel about your business. However, one can never have total control over the minds of the customers. You have to earn that reputation.

No Need for Large Advertising Campaigns

The best way to advertise your business venture is – WORD OF MOUTH. But sometimes that would not be enough to reach to the entire city. When compared to big cities, smaller cities do not need large advertising campaigns. You can always have a hoarding, or a Facebook page or any other medium to advertise your organization which would reach put to the maximum of the crowd.

Conclusion

So, if at all you are in two minds to have a startup in a small town, I hope I have justified why you should be choosing a small city for your startup. Always remember, Small things can easily grow to be the empire and legacy you always dreamed about.

Penned By: Nikita Mundada