Business Ideas for Small Towns [Profitable Businesses]

. 7 min read
Business Ideas for Small Towns [Profitable Businesses]

These days, business is conducted in large cities and small towns, and other areas. There is a lot of room for growth in rural areas, so industry in small towns is increasing day by day. Even though India is one of the world's top three start-up hubs, Indian small towns are still wary of new business opportunities. Small towns, unlike large cities, respond to new businesses in very different ways. Each city has its own identity and therefore has its own set of requirements.

We've all had several online business ideas that we haven't been able to put into motion. Many people suggest new business ideas for small towns to seize business opportunities. There are many small-town business ideas, but many entrepreneurs shy away from them due to a lack of resources.

This article will discuss the best business ideas and the 10 most profitable small town business ideas and opportunities that will last forever.

Benefits of opening a business in small towns

Before we become familiar with the low investment business ideas, here are some of the benefits of new business ideas in small towns:

  • Affordability
  • A less competitive atmosphere
  • The cost of land is fair
  • Labor availability at a low cost
  • Full support from the community
  • Effortless network-building opportunities
  • Better quality of life
  • Expansion and growth opportunities

Top 10 low business ideas for small towns

Small business concepts are those that can be started with a small investment and scaled up. On the other hand, some business ventures can be launched everywhere, while others can only be started in towns and cities. There are a few profitable small business ideas that can be launched in small towns or villages. What are the best small business ideas for small towns to consider? What are some small business ideas for small towns that can be started with little capital and produce high profits? Here are the answers to these questions.

1. Grocery store

Kirana shop, a term that appears to be well-known, has left legacies, and this is one business idea that cannot fail if the location and area are well-chosen, the standard is preserved, and the prices are fair. The recession may affect luxuries, but needs are inevitable regardless of the economic conditions of the people residing in small towns.

So, if you have some spare cash, grocery stores might be a good investment option. Almost every wholesaler extends credit based on goodwill, reducing the need for working capital significantly. This is an excellent small business concept that needs a small to medium investment to get started.

2. Food truck

Small towns are familiar with the concept of food trucks. Food trucks, which belong to old-world 'Thella’s,' are mobile dining establishments that can provide exclusive cuisines at an affordable price. A food truck's versatility allows it to set up shop in various places at the most convenient times. A food truck, for example, will park outside any office or school depending upon the time and requirements. Food trucks are a great way to start a small business on a tight budget because you don't have to spend on land or property.

3. Tutoring

There will be children with families, and there will be troubles over learning the different subjects. Even though online tutoring programs abound, nothing will ever replace the advantages of having an in-person instructor.

Tutoring can be a lucrative business for both you and those who work for you, in addition to being a brilliant business concept for small towns. We suggest starting with a few tutors who specialise in math, reading, writing, and science if you're looking for employees. Look for tutors who have prior tutoring or teaching experience and specialise in a single subject.

4. Salon

It's a service that almost everyone wants a few times a year, regardless of age. You're thinking too broadly if you're multiplying the average number of women in your town by three and saying that's the amount of business you'll generate annually. Opening your hair salon or beauty salon would allow you to provide a range of additional services in addition to haircuts. Consider nails and makeup, to name a few. Men have their hair cut at least once a month, so keep that in mind. This will be a good business option.

5. Organic farming

People are demanding organic food these days because it is free of insecticides, pesticides, and other harmful chemicals. Fruits and vegetables are cultivated without the use of chemicals in a natural process. As a result, organic farming in rural areas is a viable business opportunity.

Land, agricultural tools, machinery, and good seeds for a healthy yield are among the main investments. The returns will be poor at first, but as time goes by, you will be able to earn a decent living by selling agricultural products. Organic farming is a long-term venture, and banks are now willing to lend money for it.

6. Library or bookstore

The continuous emphasis on education for all, especially women, has made a significant difference in how people have begun to recognise education’s value. In this case, opening a bookstore can be a perfect way to make money while also raising social consciousness.

7. Medical store

The number of diseases and reliance on medications is rising as stress levels rise. This opens up the possibility of making drugs accessible in a nearby area. In small towns, it is often possible to open a medical store and provide medicines. People are more likely to develop serious diseases due to a lack of basic drugs or medical facilities, so starting a company to earn money while contributing to a social cause is a good idea.

8. Fish and poultry farming

How is this business useful for small towns and cities? Yet again, a place to sell the products and store them to keep them fresh for a long time is needed. One can also be involved in fish farming. It's even possible to sell them in a nearby town for a profit.

Poultry farming is ideally suited to small towns because it is more cost-effectively controlled there. The only significant expense would be the time and effort taken to construct a sanitary setup and transport it to the required venue.

9. Thrash management

While this may sound unappealing to others, it is unquestionably an urgent need. Trash management is a problem in most cities. Segregation at the source is important for better waste management, and it also offers a safe margin. Many involved in such a venture may also work with local governments to maximise benefit while reducing effort.

interior of a pharmacy store

10. Cold storage business

Another good business idea, especially in rural areas and small towns, is cold storage. Fruits and vegetables spoil quickly in small-town areas due to a lack of cold storage, and farmers suffer greatly as a result. As a result, running a cold storage company can be highly profitable.

Establishing cold storage to store food products necessitates an initial capital expenditure. Still, the returns are decent, and it is preferable to get as many buyers as possible to generate a good income.


Regardless of the business ideas for small-town  you select, careful planning is critical to its success. And, because owning a small business is both a lifestyle and a time investment, make sure it's one you can see, giving you both profit and growth in the long run. The investment is based on the investor's size and risk-taking ability, and location or place. Entrepreneurs should conduct research and recognise one of the best small business concepts before launching it in their communities.

Also Read:

1) Best business in India
2) Best business in Delhi
3) Best business in Jaipur
4) Best business in Goa
5) Best business under Rs. 50,000

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.

FAQs on Small Town Business Ideas

Q. What are the other low-investment business ideas for a small town?

Ans. The other key low investment business ideas for a small town include opening a bakery, florist, small manufacturing unit, fertiliser shop, small electronics store, drinking water plant, pathology lab, clothing store, ice cream shop, etc.

Q. What is the minimum amount of investment required for opening up a barbershop?

Ans. The amount of investment ranges from INR 10,000 to INR 5,00,000 for opening up a barbershop, depending upon the business’s location, skills, and scale.

Q. Which is the best business idea after lockdown?

Ans. After lockdown, the best business ideas can be a pharmacy store, doorstep delivery services, tiffin services, online hobby classes, online coaching classes, etc.

Q. What are the different forms of business?

Ans. The different business forms are sole proprietorship, partnership firm, corporation, and a limited liability company.

We hope you liked our article. To know more details about business ideas in India, you can visit these linked articles as well:
Business Ideas in Goa Business Ideas in Assam Business Ideas for Rural Areas
Business Ideas in Rajasthan Business Ideas for Student Business Ideas in India