SmallBusinessNewz

After my article about the small town video store with the strange business hours, I got some interesting comments, some of which came from people running their businesses in small towns, and it got me thinking about what advantages could come with operating out of such a town or by contrast, out of a larger city.

Let's examine the subject for a moment.

Small Town Advantages

Of course there are variables that come into play in each aspect of business and often it will depend on what type of business you are actually running, but let's look at a few of these aspects.

In a small town, it seems that customer loyalty would be easier obtain. Depending on just how small the town is, there is a good chance that most of the residents know each other, and know you for that matter, and if they don't know you, they will probably get to know you at least to a small extent if they continue to go to your business, which brings me to the next point.

There is most likely a lot less competition in a smaller town, so this of course reduces the amount of other options when it comes to the type of goods/services that you offer. Loyalty may come by default due to lack of competition.

Big City Advantages

The most obvious advantage of running your business in a big city is the fact that there are more people. This means more potential customers. But that comes at a price. More people not only means more customers, but more competitors too. There are likely more places to get whatever it is that you are offering.

This is why dominating a niche and operating from a good location can be enormously beneficial to your success.

Another advantage of the big city is an extension of the first. Tourism. When I said more people, I was really talking about local residents, but big cities tend to attract more outsiders than the small towns as well, so there are plenty of opportunities bound to come your way as a result of that as well (once again, depending on what type of business you are running).

I've said it before and I'll say it again, location can be of the utmost importance, and should be seriously evaluated in relationship to the type of business you are running. You may be better suited for a small town or for a big city, depending on what you do. Where is the demand? Is the demand strong enough? Always research the competition when considering relocation. Do business online too!

I'm sure you can think of other advantages and disadvantages of both small towns and big cities. Please feel free to share.