7 Tips for Starting a New Business in a Small Town
Author: Cathy Goodwin, Ph.D.
Q. I am transitioning to a new career after sixteen years to spend more time with my family. We moved to a very small town (less than ten thousand people) and I want to start an coffee shop business and also offer PC repair. How can Iinvestigate and then promote this business?
A. In a big city, youll make decisions by numbers and neighborhoods. In a small town, you schmooze!
On the surface, everyone will be friendly, optimistic and positive.
Your challenge: Get below the surface and learn the true story. You might consider asking a lot of questions before you disclose your own intentions. Listen for, "I wish we had"
1. Talk to others who have opened businesses recently.
What challenges have they faced? What works and what doesnt? Were others newcomers successful? If so, were they truly new or did they have deep roots in the town, such as a brother who lived here forty years?
If nobodys opened a business for awhile, dig deeper. Maybe theres no market. Or maybe theyre just waiting for you to arrive! Sometimes a new business can generate latent demand. Its a judgment call.
2. Make a great first impression.
Promotion isnt hard in a small town. Ten minutes after youve opened, everyone will know! Some towns resist doing business with uppity newcomers. Others welcome new blood. Regardless, your first impression will linger a long, long time. And youll have trouble recovering from a local opinion leader with a bad experience.
3. Uncover the towns market and memory.
Considering buying a business? Take time to discover the owners reputation. When the local residents seem eager for a change of management, youll need a new name and image. But if someones just moved away and everyone misses them, youve got a wonderful opportunity. Right now in Silver City we could use a few first-rate pet-sitters and dog groomers.
But be sensitive to change. Before I moved here, Im told, at least three coffee shops failed. Now we have several, along with a wine bar and a microbrewery. All seem to be thriving.
4. Search the fine print of local regulations.
Here in Silver City, our newest businesses had to fight all kinds of red tape to get opened. One called City Hall to get help with a business that was new to the area. "Its not listed here," said the clerk, "so its probably illegal." (The business has opened and thrives.) Another discovered his license hadnt come through because the Council forgot to add it to the agendaand they werent interested in making last-minute changes.
Any time you serve food or drink, you know youre facing permits. Find out whats involved locally.
5. Prepare to do most of the work yourself.
In a small town, you can have trouble finding good help. The local work ethic may surprise you - in either direction.
6. Know your community.
Will your market come from second and third generation local residents? Or are you serving those who relocated recently from urban areas? Here Ive met folks who think three dollars is way too much to pay for espresso drinks. But those who bonded with Starbucks will buy at least one cup a day, every day.
7. Build relationships.
If you can attract a town leader, youll draw a following. Conversely, if you inadvertently alienate a key player, or if a local persons got an idea on the drawing board, youll be miserable.
And in a small town, youll be expected to be a super-citizen. Choose alliances and sponsorships carefully. Prepare for all sorts of friendly requests to donate time, materials and money.
Cathy Goodwin, Ph.D., is an author, speaker and career/business consultant, helping midlife professionals take their First Steps to a Second Career. http://www.cathygoodwin.com
"Ten secrets of mastering a major life change"
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Contact: mailto:cathy@cathygoodwin.com 505-534-4294
