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5 Reasons To Open A Small Business In A Rural Community

May 26, 2021
Posted by: Stearns Bank

Not everyone is cracked up for the big city.

While a small town lacks the lavishness of an urban setting, rural communities are great environments for an up-and-coming business.

No matter where you start a business, there are pros and cons. But there are plenty of positives to opening a business in an area that isn’t highly populated. Here are a few of them:

1. Lower Costs

Commercial real estate doesn’t come cheap, especially in the 2020s. Real estate prices are normally higher the larger a city gets. You also can’t forget that the cost of living is a lot higher in places like Chicago, Los Angeles, Dallas and Miami. Urban businesses usually have more regulations, fees, taxes and higher supply costs. So, from a cost perspective, more affordable business locations will most likely be in a smaller community. If your budget is modest, smaller locations allow you to take more risks that could help your business grow. And, local governments may also offer new businesses money-saving incentives to stay longer, such as subsidized rent.

2. Community Support

When you start a business in a rural town, you become part of a greater community. You build connections and friendships over time. The more connections you make, the more your business will gain attention and notoriety. A sense of collaboration, a desire to support local businesses and pride in the community strengthens everyone’s will to succeed.

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3. Less Competition

In a larger setting, a small business can be overwhelmed by competitors. Your brand can get lost in a sea of doppelgangers. In a small city, you likely will be the first business of your type in the area. This can create a loyal customer base that buys local rather than from big city competitors.

4. Reliable Workforce

The workforce in smaller communities is generally eager to pursue something new to the area. The turnover rate in larger cities is normally higher because there are more job opportunities. Word-of-mouth is a pillar of any new businesses and welcomed by anyone starting from scratch. Connecting with trustworthy employees starts by connecting with the community around you so you can attract and retain a dedicated staff.

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5. Quality Of Life

Dealing with the hurdles of big-city life isn’t ideal for everyone. Small town living not only brings a sense of connection and community, but it comes with a slower pace and less worrying about things like rush-hour traffic or pollution. Many families appreciate the quality of life and leisure activities in a rural setting. It also provides a good work-life balance because life can be less stressful while being just as productive.

Wherever you choose to launch your dream venture, be sure to have a business plan before seeking a small business loan.

Small communities need small businesses to thrive. If you’ve been dreaming of starting something big in a small town, a USDA Business & Industry Loan might be a good financing option. Contact Stearns Bank to discuss your business needs and objectives, and we can help you determine the right financing approach.

USDA Rural Development Loans  Stearns Bank is a USDA Multi-State Lender, a distinction earned by a select  group of banks. Learn more about how our experience with government loan  programs will make your financing experience easier. Contact Us About USDA Rural Development Loans

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