Posted on July 28, 2010.
7 Tips for Starting a new business in a small town Q. I am in transition to a new career after sixteen years to spend more time with my family. We moved into a very small town (less than ten thousand people) and I want to start a business in coffee and also offer repair PCs. How can Iinvestigate then promote this business?
A. In a big city, you have to make decisions by numbers and neighborhoods. In a small town, you schmooze!
On the surface, everyone is friendly, upbeat and positive.
Your challenge: Get below the surface and learn the real story. You might consider asking many questions before you disclose your own intentions. Listen, I want that we had "
1. Talk to other businesses that have opened recently.
What challenges do they face? What works and what does not? Others were newcomers with success? If yes, have they truly new or did they have deep roots in the city, as a brother who has lived here for forty years?
If someone opened a business for some time, dig deeper. Perhaps there is no market. Or maybe they are waiting for you to arrive! Sometimes a new business can generate latent demand. It is a question of trial.
2. Make good first impression.
Promotion is not difficult in a small town. Ten minutes after you've opened, everyone will know! Some towns resist doing business with the arrogant newcomers. Other welcome new blood. Nevertheless, your first impression will linger a long, long time. And you will be hard to recover from a local opinion leader with a bad experience.
3. Discover the market town and memory.
Consider buying a business? Take time to discover the reputation of the owner. When people seem eager for a change of direction, you'll need a new name and image. But if someone has just moved away and everyone is missing, you have a wonderful opportunity. Today in Silver City we could use some first-rate pet-sitters and groomers for dogs.
But be sensitive to change. Before I came here, said at least three cafes failed. Now we have several, with a wine bar and a microbrewery. All seem to be booming.
4. Search the fine print of local regulations.
Here in Silver City, our new businesses have been struggling against all sorts of red tape to get open. One called City Hall to help a company that was new in the region. "It's not listed here, said the clerk, so it's probably illegal." (The business was open and thriving.) Another discovered his license had not come through because the Council has forgot to add the agendaand they were not interested to make last minute changes.
Every time you serve food or drink, you know you're facing permits. Find out what it means locally.
5. Prepare yourself for most of the work yourself.
In a small town, you may have trouble finding good help. The local work ethic may surprise you - in both directions.
6. Know your community.
Will your market come from second and third generations of local residents? Or are you serving those who have recently moved into urban areas? Here, I met people who think three dollars is too high to pay for drinks espresso. But those who bonded with Starbucks buys at least one cup a day, every day.
7. Build relationships.
If you can attract a leader in town, you draw a following. Conversely, if you inadvertently alienate a key player, or if a local person has an idea on the drawing board, you will be unhappy.
And in a small town, you should be a super-citizen. Choose alliances and sponsorships carefully. Get ready for all sorts of friendly requests to donate time, materials and cash.