How to Start a $3 Million Junk Removal Business - UpFlip (2024)

Think you live in a big city? Think again.

Most Americans live in small towns. Curiously, many who think they live in big cities actually reside in one of many incorporated locations that blend together—that’s what a big city is, after all!

That’s why you should get to know the best small-town business ideas. You won’t believe how few people you need for some of these small-town business ideas to take off. Surprisingly, a cleaning company, for example, can survive with less than 300 people in a town.

We used IBIS World and the U.S. population to easily compare the best small-town business ideas. We even share experiences from small-town business owners who have already succeeded in their small businesses.

Use the links below to jump to any section in the article.

[su_note note_color="#dbeafc"]

• What Is a Good Business to Start in a Small Town?
• How to Choose a Small-Town Business Idea
• Best Business to Open in a Small Town
• Best Food Business Ideas for a Small Town
• Best Small-Town Businesses That Thrive in Smaller Markets
• Retail Business Ideas for Small-Town Shops
• Unique Business Ideas for Small Towns
• Things Every Town Needs
• Choose a Lucrative Business![/su_note]

What is a Good Business to Start in a Small Town?

Lucrative small-town business ideas normally fall into a few categories:

1. Businesses that people routinely go to the next town to shop at.
2. Companies that can take clients from anywhere in the world.
3. Industries that the current competition needs to meet the needs of the population.

It should be noted that many small-town business ideas face steep competition from major players like Walmart.

Nationwide, there’s a Walmart for every 63,000 people (calculated using U.S. population divided by number of Walmarts), but many small towns are losing their Walmarts—so you may be able to sustain your small-town business idea even if it has to compete with Walmart.

How to Choose a Small-Town Business Idea

Small-town business ideas can be harder to choose than businesses in major cities. You may need to be more creative about choosing your business idea because the population can only sustain a certain number of similar businesses.

One of the easiest ways to compare small-town business ideas is to follow this process:

Part 1: Calculate the businesses per capita in the small town.

1. Look up the population of the small town.
2. Use Google Business Profiles to look up the number of businesses offering the service you are considering offering in the town.
3. Divide the town’s population by the number of businesses.

Part 2: Calculate the businesses per capita in the U.S.

1. Use U.S. population of 331.9 million.
2. Look up the number of businesses for the industry in the U.S.
3. Divide the U.S. population by the number of businesses in the industry nationwide.

Part 3: Compare values using the table below.

We’ve done the calculations for you for each of the entries in our list.

Now that you know how to determine the potential success of your small-town business, let’s dig right into the best small-town business ideas!

Best Business to Open in a Small Town

Idea #1. Local Grocery Store

U.S. Population Per Store: 5,239 people/store
Medium Success: 5,763 people/store
High Success: 7,859 people/store
Average Annual Revenue: $9,338,000
Average Profit Margins: 1.8%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 0.8%
Best for: Organized entrepreneurs with excellent customer service skills, effective team builders and managers, supply chain pros

Even through the disruptions of the pandemic, the grocery store market grew by 15% from 2019 to 2021. And it makes sense. Food is a basic necessity that people will keep in their budget regardless of what’s going on in the economy, and that makes a local grocery store a perfect small-town business idea.

If your local community is already saturated with standard grocery store options, consider whether a niche market could be a profitable business—for example, a store that focuses on locally grown ingredients or a specialty food shop that sells vegan, ethnic, or other specialty products people can’t find at the typical grocer.

Best Food Business Ideas for a Small Town

Idea #2. Coffee Shop

U.S. Population Per Store: 4,601 people/cafe
Medium Success: 5,061 people/cafe
High Success: 6,902 people/cafe
Average Annual Revenue: $865,800
Average Profit Margins: 5.8%
Startup Costs: $1K-$3.5M
Time To Revenue: 3+ months
Annual Market Growth Rate: 1.2%
Best for: Baristas and food service professionals, morning people, customer service and team building pros, artists, writers, musicians, and other creative folks

A neighborhood coffee shop is more than just a place to get a cup of joe. Especially in small towns, a coffee shop is often a gathering place for the local community. They give small-town residents a spot to socialize and often serve as a venue for local artists and musicians working to build their own businesses.

These factors together give a coffee shop the potential to be a successful small-town business, even in a small community. It can also be a fairly inexpensive business idea if you approach it the right way.

Maxwell Mooney started a coffee cart with just $1,800 then invested those profits to expand into a brick-and-mortar store. Hear how he did it in this interview:

[su_youtube url="https://www.youtube.com/watch?v=HPq05GXUgL8"]

Idea #3. Food Truck

U.S. Population Per Truck: 9,137 people/truck
Medium Success: 10,051 people/truck
High Success: 13,706 people/truck
Average Annual Revenue: $41,040
Average Profit Margins: 6.4%
Startup Costs: $1K-$100K
Time To Revenue: 3+ months
Annual Market Growth Rate: 1.2%
Best for: Cooks, chefs, food service professionals with customer service and marketing expertise

One of the advantages of a food truck business over a restaurant is that you don’t need to make customers come to you—you can meet them where they are.

This flexibility puts food trucks among the top small-town business ideas, letting you serve small-town residents at festivals and local community events. You can also partner with another small-town shop like a bar, cafe, or entertainment venue to help each other attract customers.

Since it’s mobile, a taco or food truck can thrive even in rural areas. A solid business plan involves seeking out fairs, markets, and other small community events where people from across the area will gather (and need something to eat while they’re there).

Strong marketing is key to making a food truck a profitable business idea in a small town. If you want more advice, hear how Jen Gustin started her food truck, Boss Mama’s Kitchen, in this interview:

[su_youtube url="https://www.youtube.com/watch?v=rd5aLi5TCbY"]

Idea #4. Ice Cream Shop

U.S. Population Per Store: 19,892 people/store
Medium Success: 21,881 people/store
High Success: 29,838 people/store
Average Annual Revenue: $279,590
Average Profit Margins: 3.7%
Startup Costs: $1K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 0.7%
Best for: Friendly, creative, fun-loving, and detail-oriented entrepreneurs focused on customer service

Everybody loves a sweet treat now and then. A trip to the ice cream shop is an iconic small-town summer experience, and providing that experience can be a solid business idea.

One thing to keep in mind with ice cream shops is that they’re prone to wide seasonal shifts. In most of the U.S., an ice cream shop will get most of its customers from May through August.

For some people, a seasonal business model is ideal, giving them winters off to travel or spend time with family. If you want to stay open year-round, consider other ways to attract customers during the winter.

For example, you can integrate other business ideas, like a seasonal market for the holidays or selling hot chocolate and similar warm treats when it’s cold out.

Idea #5. Sports Bar

U.S. Population Per Store: 5,147 people/bar
Medium Success: 5,662 people/bar
High Success: 7,721 people/bar
Average Annual Revenue: $515,304
Average Profit Margins: 6.3%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 0.9%
Best for: Bartenders, sports fans, social and community-focused entrepreneurs

Similar to a coffee shop, a sports bar is more than just a place to enjoy a drink. It’s a social hub for rural areas and small-town communities, and this added draw can make it the best business to start in a small town.

While sports fans represent a niche market, they’re passionate about the home team. You can draw on that passion to grow your small-town business. There are other revenue streams you can add to a sports bar small business. The most obvious is to operate as a bar/restaurant.

If there are already a few good restaurants in your area, another option is to focus on entertainment. You can offer things like pool tables and dart boards or host local bands and other live entertainment when there aren’t big games to watch.

Best Small-Town Businesses That Thrive in Smaller Markets

Idea #6. Cleaning Services

U.S. Population Per Business: 277 people/business
Medium Success: 305 people/business
High Success: 416 people/business
Average Annual Revenue: $74,880
Average Profit Margins: 6.7%
Startup Costs: $1K-$30K
Time To Revenue: 1-6 months
Annual Market Growth Rate: 1.2%
Best for: People who like physical work and have a sharp eye for detail, system- and team-focused entrepreneurs with strong marketing skills

A cleaning service is one of those rare business ideas that’s equally viable in rural areas, small towns, large towns, and big cities.

Not only is a cleaning service a lucrative business, it’s also a fairly inexpensive business idea to start. To start a successful business as a cleaning service, all you need are basic tools like a vacuum, broom, and mop, and some way to get to your customers.

You don’t need a storefront to run this kind of small business. Just set up your own website and list your services on sites like Craigslist, Yelp, and Nextdoor. Fliers and other traditional marketing can also be effective ways to get customers for a small-town cleaning service.

The UpFlip 7-Figure Cleaning Business Blueprint is a great way to learn how to start a cleaning business. Watch this video to hear how course instructor Chris Mondragon started his small business, Queen Bee Cleaning, and grew it to $1.5 million a year:

[su_youtube url="https://www.youtube.com/watch?v=d4Iip7BHXwg"]

Idea #7. Computer Services

U.S. Population Per Store: 11,113 people/store
Medium Success: 12,227 people/store
High Success: 16,670 people/store
Average Annual Revenue: $2,305,520
Average Profit Margins: 5.5%
Startup Costs: $500-$250K
Time To Revenue: 3+ months
Annual Market Growth Rate: 0.6%
Best for: Electronics, technology, and repair pros, detail-oriented and mechanically minded entrepreneurs

The average U.S. household owned 22 connected devices in 2022. Those devices are more critical to our lives than ever before, too, with 45% of households including at least one person working from home and 23% with someone who attends school from home.

It’s no surprise, then, that computer services are among the most in-demand small-town business ideas. Small-town residents need someone to fix their devices and are less likely to have easy access to a large electronics retailer that offers these services.

Another reason a computer services business is among the best small shop ideas is that it doesn’t cost much to start or run. Joe’s Electronics Repair was started with just a few hundred dollars and in five years grew to a seven-figure business. Hear how Joe Pilat did it in this interview:

[su_youtube url="https://www.youtube.com/watch?v=Rqce8NAZWYw"]

Idea #8. Pet Grooming

U.S. Population Per Store: 2,112 people/store
Medium Success: 2,323 people/store
High Success: 3,168 people/store
Average Annual Revenue: $73,533
Average Profit Margins: 11.5%
Startup Costs: $1K-$100K
Time To Revenue: 3+ months
Annual Market Growth Rate: 1.1%
Best for: Pet owners, lovers, and experts, entrepreneurs who are patient and empathetic with strong communication skills

Pet ownership is on the rise across the United States. There were about five million more pets in 2023 than there were in 2019, and the amount people spend on these furry family members is expected to increase by 134% over the next decade.

A pet grooming shop is the perfect business idea to capitalize on this trend. It’s among the best small-town business ideas because, even though people all over the country own pets, groomers often aren’t easy to find outside of urban areas.

Other pet services can be sparse in rural areas and small towns, too. This means there are many other revenue streams you can add to your pet grooming business to boost its profits. For example, you can also have a pet store or pet supply shop or offer both grooming and boarding services for animals in the same small business.

Idea #9. Hair Salon or Barber Shop

U.S. Population Per Store: 348 people/store
Medium Success: 383 people/store
High Success: 522 people/store
Average Annual Revenue: $51,380
Average Profit Margins: 5%
Startup Costs: $1K-$100K
Time To Revenue: 3+ months
Annual Market Growth Rate: 0.9%
Best for: Beauticians, barbers, and hair stylists with excellent customer service, communication, and organization skills

Hair salons and barber shops can be profitable businesses for small towns for the same reason as the ideas above: They provide a service everybody needs that can be tricky to find in smaller markets.

You don’t need a giant market to make money with a hair salon. The average salon works with 6 to 20 customers daily. If there are just a few salons in town (or especially if you’re the only option), those aren’t difficult numbers to reach.

Most states require hair salon owners to have a cosmetology license. If you don’t already have one, that’s something you’ll want to look into before you take any steps to open your business.

On the plus side, the start-up costs of a salon or barber shop are reasonable. Bernard Franklin opened Busy B’s Barbershop with around $15,000. Hear how he got started in this interview:

[su_youtube url="https://www.youtube.com/watch?v=jWXB8eSmqOw"]

Idea #10. Handyman Business

U.S. Population Per Business: 2,048 people/business
Medium Success: 2,253 people/business
High Success: 3,072 people/business
Average Annual Revenue: $204,700 per employee
Average Profit Margins: 5.4%
Startup Costs: $500-$5K
Time To Revenue: 3+ months
Annual Market Growth Rate: 0.7%
Best for: Construction and repair professionals, people who like physical work, fixers and makers

If you’re looking for good business ideas for small towns that you can start from home, a handyman business can be a great choice. Since you’ll be working on-site at customers’ homes, you don’t need a storefront or other commercial space.

In fact, all you really need to get started are some basic tools and knowledge of how to use them. If you have that, this is one business idea guaranteed to be in demand just about anywhere.

Wondering how much you can make? Caleb Ingraham earns around $1,000 a day as a handyman. While he operates in the larger market of Seattle, the same principles can be used to open a home improvement business anywhere. Hear his advice in this interview:

[su_youtube url="https://www.youtube.com/watch?v=leUta_q_MPQ"]

Idea #11. Car Wash

U.S. Population Per Business: 5,846 people/business
Medium Success: 6,431 people/business
High Success: 8,769 people/business
Average Annual Revenue: $73,100
Average Profit Margins: 16.1%
Startup Costs: $500-$5K
Time To Revenue: 3+ months
Annual Market Growth Rate: 1.0%
Best for: Car lovers, cleaning pros, system-oriented entrepreneurs with high attention to detail and strong customer service skills

There are a few different ways to start a car wash business. One option is to open a brick-and-mortar car wash that customers can drive through to clean their vehicles.

Another option is to open a mobile detailing or car wash business. Under this model, you go to customers and clean their cars at their homes or workplaces. That’s the model Abu Waggeh uses to bring in an average of $40,000 a month in revenue:

[su_youtube url="https://www.youtube.com/watch?v=Rk4L1O2b84Q"]

Either option can be a great business idea for small towns, and each approach has its advantages. A brick-and-mortar car wash can be automated to generate passive income, though that will take a large up-front investment.

A mobile detailing business, on the other hand, can be started for just a few hundred bucks, as we discovered in the interview above. Along with a low barrier to entry, the mobile model can expand your potential customer base in a small-town market.

Idea #12. Lawn and Gardening Service

U.S. Population Per Business: 511 people/business
Medium Success: 562 people/business
High Success: 767 people/business
Average Annual Revenue: $272,790
Average Profit Margins: 8.7%
Startup Costs: $2K-$10K
Time To Revenue: 1-3 months
Annual Market Growth Rate: 8.1%
Best for: Entrepreneurs with a green thumb, landscape architects and gardening pros, people who love physical work and being outside

Lawns tend to be larger in small towns than in large cities, but that doesn’t mean small-town residents have more time to care for their outdoor spaces.

It also means ample opportunities for entrepreneurs who offer lawn and gardening services. This is another small-town business idea with a low barrier to entry.

Legends Lawn Care Services founder Russell was only 19 when he started, without any spare cash or industry experience. He grew to more than 300 customers and $100,000 in revenue by the end of his first year. Hear his advice in this interview:

[su_youtube url="https://www.youtube.com/watch?v=cxhAGHg1uV0&"]

Retail Business Ideas for Small-Town Shops

Idea #13. Hardware Store

U.S. Population Per Store: 31,932 people/store
Medium Success: 35,125 people/store
High Success: 47,898 people/store
Average Annual Revenue: $2,098,550
Average Profit Margins: 3.9%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: -0.4%
Best for: Makers, construction pros, and DIYers with strong communication and customer service skills

If you’re looking for retail store ideas for a small town, a hardware store is a solid choice. It is a profitable small-town business idea because it sells things people need in a hurry to get the job done. Filling an unmet need is always a smart move when starting a new small business.

One pro of opening a hardware store is that they tend to be recession-resistant businesses. In fact, their revenue can actually see a spike during down economies since they sell supplies for DIY projects and home repairs.

This is likely why hardware stores saw an increase in revenue in 2020. The industry saw total sales of $59.2 billion that year and has continued to grow steadily since.

Idea #14. Thrift Store

U.S. Population Per Store: 11,505 people/store
Medium Success: 12,655 people/store
High Success: 17,258 people/store
Average Annual Revenue: $453,257
Average Profit Margins: 6.7%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 1.5%
Best for: People with retail experience, customer- and community-focused entrepreneurs, fashion-lovers, collectors, and antiquers

A thrift store is a win-win for communities. It gives people a place to sell or donate things they don’t need as well as a place to buy second-hand clothes, household goods, and other items at affordable prices.

Thrift stores and second-hand shops can sell a variety of goods. Some focus on basic clothing necessities, while others are stocked mostly with toys, collectibles, or vintage and antique items.

There are a range of ways thrift stores get their inventory. Some sell items on consignment, while others source their own inventory from storage unit auctions and estate sales.

Deciding what you’ll sell (and how you’ll get it) will depend both on your interests and the needs of your area. Do some research into your local market to identify the right niche for your thrift shop.

Idea #15. Clothing Boutique

U.S. Population Per Store: 2,065 people/store
Medium Success: 2,272 people/store
High Success: 3,098 people/store
Average Annual Revenue: $141,492
Average Profit Margins: 5.3%
Startup Costs: $1K-$100K
Time To Revenue: 3+ months
Annual Market Growth Rate: 0.5%
Best for: Stylists, designers, graphic and visual artists, fashionable entrepreneurs who excel at identifying trends

In some small towns, people need to drive for miles just to get basic clothing items—and even further if they want things that are fashionable, trendy, or unique.

A clothing boutique is among the top small-town business ideas because you won’t just get customers from your own neighborhood but can also become a convenient destination for stylish residents in surrounding communities.

Another advantage of opening a clothing boutique is that you can easily operate as both a brick-and-mortar store and an online business. Adding an eCommerce shop expands your brand and potential customer base beyond your small community.

Lee Smith used both an eCommerce store and a brick-and-mortar location to grow the revenue of his clothing boutique Urbanity to over $100,000 a month. Hear his advice in this interview:

[su_youtube url="https://www.youtube.com/watch?v=_wUc28d8KkE"]

Idea #16. Local Flower Shop

U.S. Population Per Store: 9,931 people/store
Medium Success: 10,924 people/store
High Success: 14,897 people/store
Average Annual Revenue: $262,690
Average Profit Margins: 5.4%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 2.8%
Best for: Gardeners and plant care pros, creative entrepreneurs with strong communication skills

A flower arrangement is a beautiful, fresh-smelling way to show someone you love them or send your well wishes. Unfortunately, many small towns don’t have a place that sells fresh flowers, aside from the few bouquets sold at the supermarket. Filling that niche with a flower shop is the perfect business idea for entrepreneurs who have a green thumb or an eye for design.

One consistent challenge for a small town flower shop is inventory and waste control. Partnering with a local nursery, or starting a flower farm or greenhouse of your own, can help you to cut down on storage and shipping costs and reduce wasted product.

There are other ways to diversify your flower shop revenue streams, too. When Dylan Capshaw turned his online flower shop Stemistry into a brick-and-mortar, he added a coffee shop, giving customers more reasons to visit. Hear how he started his business in this podcast interview:

Unique Business Ideas for Small Towns

Idea #17. Health Food Store

U.S. Population Per Store: 36,878 people/store
Medium Success: 40,566 people/store
High Success: 55,317 people/store
Average Annual Revenue: $130,133
Average Profit Margins: 5.4%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 0.4%
Best for: Wellness and nutrition professionals, athletes and fitness experts, entrepreneurs who excel at organization, sales, and customer service

People who live in large cities aren’t the only ones who want to eat healthily. Unfortunately, the organic food and nutrition supplement options at the typical small-town grocery store are limited.

A health food store is a small-town business opportunity that will provide a needed service to the community while you make a profit. It also pairs nicely with other business ideas, like a gym or other fitness business, since those are likely to appeal to the same customers.

Idea #18. Wine or Cheese Shop

U.S. Population Per Store: 8,089 people/store
Medium Success: 8,897 people/store
High Success: 12,134 people/store
Average Annual Revenue: $1,747,080
Average Profit Margins: 3.8%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 0.9%
Best for: Foodies, chefs, and sommeliers, retail and customer service professionals, entrepreneurs who excel at marketing and community building

A specialty food shop can add a touch of luxury to the food options in a small town. Like other shops on this list, it fills an often-neglected niche, giving people a place to buy high-end, unique ingredients they can’t find at other local stores.

A wine or cheese shop can become a destination store for surrounding communities that also lack this option, expanding your potential customer base beyond the town where you’re located.

Since wine and cheese aren’t essentials, you’ll need to be active in promoting your brand. Planning events like wine and cheese tastings or hosting booths and pop-ups at farmers markets and fairs can be great ways to build your customer community.

Idea #19. Bed and Breakfast

U.S. Population Per Business: 22,743 people/business
Medium Success: 25,017 people/business
High Success: 34,115 people/business
Average Annual Revenue: $201K
Average Profit Margins: 8.1%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 2.2%
Best for: People with hospitality and customer service experience, outgoing and community-oriented entrepreneurs

Many people don’t think of investing in tourist-oriented business ideas in small towns or rural areas. This is part of what can make a bed and breakfast a very lucrative small-town business model.

One target market for a bed and breakfast are small-town ambiance patrons—in other words, people from larger cities who travel to rural areas to escape the hustle and bustle.

Bed and breakfast owners don’t only cater to travelers, either. You can attract customers who live nearby and want a spot for weekend getaways or a romantic night out. These same customers can also be regular patrons of other revenue streams you add to the business.

Idea #20. Market Research

U.S. Population Per Business: 7,833 people/business
Medium Success: 8,616 people/business
High Success: 11,750 people/business
Average Annual Revenue: $733,200
Average Profit Margins: 10.7%
Startup Costs: $500-$5K
Time To Revenue: 1-3 months
Annual Market Growth Rate: 2.2%
Best for: Data scientists and analysts, marketing and advertising pros, entrepreneurs with strong communication, problem-solving, and analytical skills

Odds are you’re not the only person with small-town development ideas. Other people want to start small retail stores or have neighborhood business ideas. They’ll need data and advice to build a successful business, and providing that can be a great business idea.

The volume of data available to businesses has exploded over the past decade, and the need for people to make sense of it has grown, too. The market research industry more than doubled from 2008 to 2022, reaching a value of over $81 billion.

Starting a market research firm is also a fairly inexpensive business idea. While you’ll likely want to invest in some analytic tools and software, these costs are minimal compared to starting businesses that require lots of equipment, space, or inventory.

Things Every Town Needs

Entertainment Business Ideas for Small Towns

Every small town needs things to do for fun. When I was living in Michigan in a small town, some of my favorite things to do were:

• Play pool
• Go to the movies
• Go to small music events
• Ride ATVs
• Go bowling

If there aren’t small-town businesses already providing these services, you might want to look into how you can provide them.

Basic Life Necessities: Best Businesses for Small Towns

There are some services and products that people will always need no matter where they live. These include things like:

• Places to buy food and beverages
• Gas stations
• Pharmacies
• Utilities like power, heat, and water

Even if these already exist, having a new option in a more convenient location, or one that offers a different array of goods or services, can fill an unmet need for local residents.

Service Businesses Are Great Small Business Ideas for Small Towns

Online shopping gives residents of rural areas and small towns access to goods they can’t find in local stores. When it comes to service businesses, though, they need to find someone nearby.

We highlighted a few profitable service business ideas in the list above, like cleaning services, lawn care, handyman services, and computer repair. Other services that are often lacking in smaller markets include:

• Pet care services like dog walkers, pet sitters, or veterinarians
• Health and wellness services like gyms, personal trainers, or mindfulness and holistic wellness studios
• Laundry and dry cleaning services
• Home improvement services (house painting, construction, landscape design, etc.)
• Daycare, nanny, and childcare services

If these are lacking in your area, starting a business in one of these niches can be a successful venture.

Choose a Lucrative Business!

There are plenty of great small-town business ideas. You just have to be more careful about selecting which to start. We’ve given you an easy way to make that decision with the calculations above, and now it’s up to you.

What are some good business ideas for a small town that you’d like to know more about?