20 Best Small Town Business Ideas for 2021

house construction work is going on in rural areas

Business is not limited to big cities but small towns and rural areas require it to thrive too. 

There is a lot of scope in these areas as well, to have a successful business and that is why it is important to focus on businesses in rural areas these days when covid has rendered even harvesting difficult after growing the crops.

Here is a list of 20 business ideas for rural areas

1. Open a Diagnostic center

Pathology labs or diagnostic centres have turned out to be real profitable businesses in small towns. For any sickness or disease, doctors ask the patients to undergo medical tests such as blood tests, urine tests, etc. All these are carried out at a pathology lab. 

You can establish one such lab in a small town which will require an initial investment and also a license to operate. A loan should be available through banks easily to start such a lab where there is none or a few.

However, once established you can earn a good income lifelong.

This is a good business idea as well as a necessity for people residing in rural areas who might be required to go to a big city when a test is required. They will save time and energy by having a good lab in their little town.

It’s an emergency service needed and allowed especially in these Corona times.

2. Start water treatment plant

This type of business requires medium investment but the returns are worth it. It requires manpower, a lot of equipment installations and most important above all, the water should be clean and pure when used for tests.

Otherwise no test will be valid if it has added germs or impurities from water used for washing the equipment.

So make sure you have clean water available or set up a water filter equipment to make sure a test is valid.

You can become a supplier of packaged drinking water to the people charging a small fee for a container of 20 litres. 

So this can be an additional profitable side business in the long run apart from the money you will earn for carrying out the different tests in the lab.

You should have detailed business plan for mineral water production plant. Make a plan and start implementing in today.

Most villages depend on a borewell where water from the underground can be mixed with impurities and even harmful elements for health hazards.

So setting up a water purifier plant next to a pathology lab can be essential for your lab as well as for people who need a good supply of water.

3. Open a mobile phones and accessories store

Mobile phones are needed everywhere and any rural area is no exception. Therefore, owning a business in mobile phones and accessories anywhere if there is a shortage of such businesses, is a brilliant idea. 

The investment is less as you can keep only those items which are used and have demand in the area where people don’t need high technology but basic services. 

You can start this business easily with a very low investment; all you need is a proper shop in good locality and supplier contacts from the nearby city.

Phone covers, earphones, mobile batteries etc are also needed as accessories. The returns in this business are moderate but you will always grow with time. 

This is an ideal business idea for villages where there are no mobile shops or just a few available.

4. Open a fertilisers and seeds store

One of the common businesses that can really thrive in the rural areas is the fertiliser and seeds store. Farmers are always in need of these two things and if you can provide a small capital, some subsidy is always available from the government. 

Your business is all set with one helper staff to start with.

This business requires a minimal capital to start, especially if you know how to make compost with local material like kitchen and animal waste etc. free of chemicals.

The income from this business can be lucrative; however the business will survive for a long term for sure. Follow the profitable seed business plan and start your business today.

5. Start Organic farming

People these days are crazy about organic foods free from pesticides, insecticide sprays and any form of harmful chemicals because of corona scare. 

Fruits and vegetables are grown in the natural way and are free of chemical toxins in villages. Therefore, organic farming in rural areas is a very good business idea.

Some people are giving up good jobs to start profitable organic farming.

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 and your crops grow to start yielding fruits and vegetables, you will earn a healthy income by selling the agricultural products

Organic farming in the long run is a good business these days to build up immunity and banks are ready to provide loans for the same if you are ready to work hard.

6. Get into livestock farming

Alongside organic farming, livestock farming can be a good and profitable business. Livestock such as cows, hens, goats, etc. can be of significant profit. The investment is mostly in purchasing a few animals and feeding them.

Livestock farming multiplies and the by-products like milk and manure can be sold at a very high price.

This is one of the best and profitable business opportunities in a small town which anyone can do. New entrepreneurs starting livestock farming business with full enthusiasm have never experienced a setback because of rain failure etc.

It requires a small initial investment but returns are high on it. Read more about goat farming business plans.

7. Start a florist business

Flowers are often required for functions, weddings, religious temples and gatherings etc. Therefore, starting a business as a florist can be a good idea. It primarily requires two requisites:  a constant supply of flowers and timely delivery. The above factors are bound to set your business on the roll.

Initially some investment is required to start the business like setting up a shop with a good water supply.

However once the required set up is established with a clientele and a supply chain, 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 loss after harvesting their hard work. Therefore, a business in cold storage can be really profitable to help them preserve what they have grown until they are sold.

To establish a cold storage to preserve farm products, initial capital investment is required for which a loan should be available but the returns are definitely possible if you have as many customers as possible signed up prior to setting up a cold storage to have a good income ensured.

9. Start Small scale manufacturing business

Lots of small scale manufacturing businesses are there with high profit margin such as disposable paper cups, plates, paper bags etc made of agricultural waste 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 cheap raw materials and resources like machinery which comes with a loan and subsidy. You can arrange for some farmers who are ready to supply the raw materials needed for these things and your business is all set to roll. 

Products can be sold to the shops in nearby cities selling wedding and party supplies etc. including take away restaurants.

Timely delivery of the items is very essential for the business to flourish.

10. Open a clothing Store

Clothes are a basic necessity for human beings after the ice age and therefore, it will always be considered as an 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 without any fear of loss. Make sure you don’t have a lot of competitors nearby.

Like any other business, you will require initial investment to establish the shop but if the quality of materials is good and suitable to the local fashion, then you can get a lot of customers.

Also, the demand can be high during festive seasons. Be prepared for seasonal clothing like winter or summer. Spring fashion is different from what we require in the rainy season and so on. Life goes on changing.

11. Establish an educational institutions

Schools and colleges are a profitable business anywhere and the income from educational institutions can be really high according to the quality education you can provide. 

Therefore, starting this as a business can generate huge profit. Also, banks provide loans in rural areas to build schools and colleges and once established you can sit back and enjoy good returns on the investment throughout your life. 

12. Start a skill development centre

In Villages, there is a need for educational institutions as well as skill development schools. 

Skill development classes can include making of handicraft items like jute bags and food items such as pickles, jams or packed snacks like Millet powders and noodles etc from local surplus agro products. 

If you really have the ability to teach, you can skill up the women to make such items and sell them in the market at a good price through your own outlet.

13. Open an internet cafe

Some rural areas do not have proper internet connectivity yet, at least not in every part of the world. In this scenario, opening an internet cafe can be a good business idea.

Internet cafes are very popular among the youth and the charges are usually on an hourly basis to use computers which they don’t have at home. 

You can earn a good income based on the number of customers visiting the cafe. You can start this business with just four computers and a printer which will also handle scanning and photocopy work.

If it’s a tourist village, you will have many tourists as visitors except those who are carrying their laptops.

This business will require not so big investment in the form of computers, internet connections etc, but with time the returns will be worth it.

You can also turn your Internet cafe into a entertainment zone by placing some games for kids. Entertainment related activities will fetch some extra bucks for your business.

14. Take e-commerce to rural areas

In today’s world of corona hit businesses, e-commerce has gained a significant place. It is a good business idea to take e-commerce to far locality.

Buying and selling products online can be extremely beneficial and you can earn a good income from it.

Setting up an e-commerce store targeting small town customers can be challenging in terms of delivery of product and marketing. 

Also, many small town people are afraid of online transactions of not receiving anything after payment, so you should consider COD for this business.

15. Social assistant service

This is another great 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 door to door visits to see who needs help and how you can provide them help in keeping healthy or get self-employed etc.

16. Start a supermarket

Supermarkets are the best to find all kinds of stuff under the same roof. Usually villages lack this facility and therefore owning a supermarket can be a great business opportunity that will flourish.

It will require some huge investment but also there are traders who can supply the required goods on credit; however it will yield good returns and also there will be less competition in this field. This is very popular business among entrepreneurs in India and South Africa.

17. Start private ambulance service

Hospitals and medical facilities should be top notch even if it is a rural areas. Therefore, private ambulance services are a great business idea. It is essential for the people to reach the hospital in time and therefore a dependency is always built on the ambulance.

Due to a shortage of good vehicles and roads in rural areas to get help in medical emergencies an ambulance service can be a lifesaver.

All you need is a good vehicle and equipment like an oxygen cylinder etc with a first aid box.

A good driver licence can get you started.

18. Start export business

Fruits and vegetables grown of high quality and really fresh in rural areas. Such farm vegetables and fruits are always in high demand. But if a perishable item is never sold in time then it is destroyed or rotten quickly.

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. If you are in the USA, you can export products easily to UK, Canada, Mexico and Asian Counties.

19. Start food business

Food business starts with 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 requires a bit higher capital for seating etc.

However, making sure about the quality of food delivered and including rural specialities and the pricing will attract customers. If people really like your village’s authentic food, then your business is bound to flourish and will thrive. Select the profitable food business for your next venture and start implementing the ideas.

20. Open electronics showroom

Electronics showroom with electronic items such as television, washing machine, refrigerator, etc. can be a profitable business in a small town as the profit percentage is high in these products.

You can display products of different companies including the local ones too. It will require high initial investment but you will get good returns on the same if Villages want to modernise their homes.shop

Also, you can have a repairing section  by the side to take care of the damaged products. This will establish a good guarantee with the customers who are afraid of the machinery stopping working.

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