If you are considering opening or moving your business, then there are many benefits of operating a small rural business. Your cost of living is likely to be lower, but there are advantages to your business too.
When you operate a rural business, then you have less competition. In fact, you may be the only business of your type in the community. This may help you lower your advertising costs as people will naturally go to your business when they need the products that you sell. Additionally, since farming communities are often located many miles apart, you can draw customers in from many miles easily.
Access to Financing
Rural businesses usually have an easier time getting financing. Some loan choices, like those from the United States Department of Agriculture, are only available to those operating companies in rural communities. USDA B&I Loans may be possible to help with operating expenses. Rural Energy for America Program (REAP) Loans or Grants may be available to help update your business’ heating and cooling equipment. Intermediary Relending Programs (IRP) may be available to help when conventional funding is not an option. Rural Microentrepreneur Assistance Program (RMAP) may be available if you have fewer than 10 employees. Make sure you are qualifying business before applying for a rural business loan.
Growth Is Slow, But Profit Is More Likely
While small businesses operating in rural areas are slower to grow, they are more likely to be profitable because expenses are usually lower. You will often pay lower insurance costs, especially property insurance. Your property tax rate is generally lower. Since jobs can be challenging to find in rural communities, you can often hire better employees at a lower salary. Additionally, many people are looking to escape the big-city rat race, so they may be willing to move to a smaller community where they perceive that the quality of life is better. You will also need to make less money to thrive in a smaller town.
There are many reasons why rural businesses are more likely to be profitable. Opening one is often easy because many rural communities love to see new enterprises arrive. Not to mention online commerce can expand your business reach. Start exploring the rural landscape today, and decide which rural area meets your needs best. Then, get ready to enjoy slow but profitable growth. Likely, you will also love the people you network within a rural community where people care for each other.