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Starting a new business in a very small town. Category: Entrepreneurs & Small Business

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 with less than ten thousand people. I want to start a coffee shop business and also offer PC repair. How can I investigate and then promote this business?

A. In a big city, you'll 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 doesn't? 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 nobody's opened a business for awhile, dig deeper. Maybe there's no market. Or maybe they're just waiting for you to arrive! Sometimes a new business can generate latent demand. It's a judgment call.

2. Make a great first impression.

Promotion isn't hard in a small town. Ten minutes after you've 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. If you destroy even one computer after your PC repair service opens for business, you may have trouble finding new customers.

3. Uncover the town's market and memory.

Considering buying a business? Take time to discover the owner's reputation. When the local residents seem eager for a change of management, you'll need a new name and image. But if someone's just moved away and everyone misses them, you've got a wonderful opportunity. Where I live (Silver City, New Mexico), we need dog groomers and pet sitters.

But be sensitive to change. In one small town, three coffee shops failed. But suddenly the time was right! Now that town has four coffee shops, a wine bar, and a micro-brewery!

4. Search the fine print of local regulations.

In one small town, new 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. "It's not listed here," said the clerk, "so it's probably illegal." (The business has opened and thrives.) Another discovered his license hadn't come through because the Council forgot to add it to the agenda and they weren't interested in making last-minute changes.

Any time you serve food or drink, you know you're facing permits. Find out what's 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 I've 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, you'll draw a following. Conversely, if you inadvertently alienate a key player, or if a local person's got an idea on the drawing board, you'll be miserable.

And in a small town, you'll 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.

About the author: 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". subscribe@cathygoodwin.com. Contact: cathy@cathygoodwin.com 505-534-4294


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