These days business is not limited to big cities only but small towns and rural areas too. There is lot of scope in these areas to have a successful business and that is why business in small towns and rural areas are on the rise these days.
Here we are going to discuss about the 20 most profitable small business ideas for rural areas and small towns that will stick in 2020.
#1. Pathology lab/diagnostic center
These days pathology lab or diagnostic centers have turned out to be a real profitable business in small town. For every disease, doctors ask the patients to undergo medical tests such as blood test, urine test, etc. All these are carried out at the pathology lab. You can establish one such lab in the small rural areas and towns which will definitely require initial investment and also a license to operate. However, once established you can earn a good income lifelong. Here is detailed business plan for pathology lab/diagnostic center
#2. Drinking water treatment plant
This is a huge business idea as well as a necessity for people residing in the small towns and rural areas. This business requires medium investment but the returns are equally good too. It requires manpower, lot of equipment, installation and moreover the water should be clean and pure when supplied to the people.
You can become a supplier of packaged drinking water to the people which costs around 30 to 40 rupees a container(20 ltr). Therefore, this is a profitable business in the long run. Here is detailed business plan for mineral water business
#3. Mobile phones and accessories stores
Mobile phones are everywhere and these rural areas and small towns are no exception. Therefore, owning a business in mobile phones and accessories is a brilliant idea. The investment is less as you can keep only those items which are saleable and has demand in the area. You can start this business easily with very low investment, all you need is a proper shop in good locality and supplier contacts in the nearby city.
Phone covers, earphones, mobile batteries, etc are a good accessory idea. The returns in this business is moderate but you will always grow with time. This is an ideal business idea for village and small town.
#4. Fertilisers and seeds store
One of the common business that can really stick in the rural areas and small towns is the fertilizer and seeds store. Farmers are always in need of these two things and if you provide some subsidy your business is all set.
This business requires minimal capital to start. The income from this business is decent however the business will survive for long term. Read more here about seeds business plan
#5. Organic farming
People these days are crazy about organic food as these foods are free from pesticide, insecticide and any form of harmful chemicals. Fruits and vegetables are grown in the natural process and is free of chemical toxins. Therefore, organic farming in rural areas is a good business idea.
The major investments include purchase of land, agricultural tools and equipment along with good seeds for a healthy yield. Initially the returns will not be very high, however as time passes you will earn a healthy income by selling the agricultural products. Organic farming is a long run business and these day’s banks are ready to provide loan for the same.
#6. Livestock farming
Just like organic farming, even livestock farming can be a good and profitable business. Livestock such as cows, hen, goats, etc. can be of significant profit. The investment is mostly in the form of animal purchase and feeding them. Livestock farming is a profitable business and the by products are saleable at very high price.
This is one of the best and profitable business opportunity in small town. I have seen new entrepreneurs starting livestock farming business with full enthusiasm. It definitely requires some initial investment but returns are high on it. Read more about goat farming business plan
#7. Florist business
Flowers are often required for functions, weddings, religious gatherings etc. Therefore, starting a business as a florist can be a good idea. It primarily requires two responsibility: there must be a constant supply of flowers and timely delivery. Both the above factors are bound to set your business on the roll.
Initially some investment is required to start the business however once the required capital is invested, you will definitely get a good return on your investment.
#8. Cold storage business
Cold storage is another good business idea especially in rural areas. Usually, in these areas the vegetables and fruits get spoiled easily due to lack of cold storage and farmers suffer a lot. Therefore, having a business in cold storage can be really profitable.
It is obvious that to establish the cold storage to preserve food items, initial capital investment is the must but the returns are good and it is better to have as many customers as possible to have a good income.
#9. Small scale manufacturing units
Small scale manufacturing business such as disposable paper cups, plates, paper bags etc. can be a good business idea as these things are always in high demand.
It does not require huge investment, mostly the capital is invested in raw materials and resources which comes cheap. You can arrange for some good and loyal customers who are always in need of these things and your business is all set to roll. Timely delivering the items are very essential for the business to flourish.
#10. Clothing Store
Clothes are a basic necessity of human beings and therefore, it will be always considered as evergreen business. Hence, owning a business in clothing can be really profitable as the margins are high in this business. Based on the requirement and demand in the particular area, one can own a cloth store.
Like any other business, it will require initial investment to establish the shop but if the quality of materials is good then you can get lot of customers. Also, the demand will be high during festive seasons.
#11. Educational Institutions
These day’s schools and colleges are a profitable business and the income from these educational institution is really high. Therefore, starting this as a business can generate huge profit. Also, banks provide loans in rural areas and small towns to build schools and colleges and once established you can earn heavy returns on the investment throughout your life. Read more about business ideas in education sector
#12. Skill development classes
Just like educational institutions, skill development classes can be equally profitable. Skill development classes include making of handicraft items, food items such as pickles, packed snacks etc. if you really have the quality you can skill up the women to make such items and sell them in the market at a good price.
#13. Internet cafe with photo-copy/printing/scanning
Rural areas and small towns still do not have proper internet connectivity, so in this case opening an internet cafe can be a good business idea. Internet café are very popular among the youth and the charges are usually on an hourly basis. You can earn a good income based on the number of customers visiting the cafe. You can start this business in small town with just four computers and a printer which will also handle scanning and photo copy work.
This business will definitely require some investment in the form of computers, internet connection etc, but with time the returns will be equally good.
#14. Taking e-commerce to rural areas
In today’s world, e-commerce has gained a significant place. In such cases, it is a good business idea to take e-commerce to rural areas. Buying and selling of products online can be extremely beneficial and you can earn a good income from it. Setting up an e-commerce store targeting small town customer can be challenging in terms of delivery of product and marketing. Also, many small town people are afraid of online transaction so you should consider COD for this business.
#15. Virtual assistant service
This is another excellent business idea and a creative one too. In this business, you can initially give some online training to the people or resources and then take up different projects which are available online. This can include data entry work, writing or even technical work if your team has an expertise in that.
It requires almost zero investment but the profits are high. The two important factors to be kept in mind are: good training and timely delivery of projects.
#16. Start a supermarket
For any kind of stuff, supermarkets are the best and you can find all types of products under the same roof. Usually small towns and rural areas lack this facility and therefore owning a supermarket can be a great business opportunity that will stick.
It will definitely require some investment and also brokers who can supply the required goods, however still it will yield good returns and also there will be less or no competition in this field.
#17. Private ambulance service for small towns
Hospitals and medical facilities should be of top notch even if it is a rural area or a small town. Therefore, private ambulance services is a great business idea. Moreover, it is convenient for the people to reach hospital in time and therefore a dependency is always built on the ambulance.
#18. Fruits and vegetables export business
In rural areas the fruits and vegetables grown are of high quality and they are really fresh. Such farm vegetables and fruits are always in high demand. This lays the platform to start export business in this area. It will require some initial investment for collection, storing and shipping of the products but the profit margins are very high. Therefore, it can turn out to be a profitable business.
#19. Food business
Food business can include as small as starting a tea or coffee shop along with some tea snacks to a full-fledged restaurant. Both of the ideas can earn you a handsome income. While opening a tea or coffee shop requires minimal investment, a restaurant will require some capital investment.
However, be very sure about the quality of food delivered and the pricing to attract customers. If people really like your food then your business is bound to flourish and will stick.
#20. Electronics showroom
Electronic showroom with electronic items such as television, washing machine, refrigerator, etc. can be a very profitable business in small town, usually the profit percentage is high in these products.
You can keep products of different companies including the local ones too. It will require some initial investment but you will get good returns on the same. Also, you can have a repairing shop too to take care of the damaged products. This will establish a good rapport with the customers.