Rural business people are trying a variety of different business models today, including pop-ups, shared buildings, businesses inside of other businesses and more. Entrepreneurs are using these smaller-scale experiments and tests to learn what works before making a huge investments. Learn how these Innovative Rural Business Models are being used right now in small towns in this video from the RuralRISE speaker series, featuring Becky McCray and Deb Brown, co-founders of SaveYour.Town

Innovative Rural Business Models, Becky McCray and Deb Brown, RuralRISE Virtual Speaker Series, 2023 (59 minutes)

Download the slides (PDF)

Download the sample lease agreement (PDF)

The sample lease agreement for a shared building is one that we were given permission to share with others. Please have your own legal representative make a specific lease for your situation.

Would you like a presentation on the Innovative Rural Business Models?

Invite Deb and Becky to your town or event for a presentation or workshop.

Starting a business the old way is hard

On an Idea Friendly visit to Jackson County, Kentucky, I visited with a group of artists/entrepreneurs. This group had created a loose organization called the Jackson County KY Creative Community. They wanted to start businesses, but were not ready to get a building and go through the extensive process of starting a business. Some needed to see if their work had a market and value to the customer. They felt stuck. Product and excitement, but no money to get their businesses off the ground.

Smaller steps to try first

We had gathered in an art studio in McKee, KY. There was lots of discussion around taking smaller steps to start your business.

• You could sell online in places like Etsy or eBay.
• You could ask a local business if you could have just one shelf to sell your product on.
• Or showcase your artwork on an empty wall in a place like the bank, or the insurance agents office.
• You could set up a card table at an event and sell from there.

Downtown McKee, KY, car show photo by Anthony Jackson

Try using an empty lot

The group shared there was a car show coming to town soon. How could they piggyback on that event? There was an empty lot right downtown on the main highway, right across from where the cars would be parked. It wasn’t the best looking lot, it needed some attention. There was kudzu climbing the walls of buildings next to it, graffiti on the same buildings and the weeds needed some major whacking.

Ask

Kathy Spurlock owned the empty lot. I had already visited with her. I knew her time was already stretched thin, and her funds were being used for other community projects. Still, there was this empty lot waiting to be filled.

I asked her if the artists in the Jackson County KY Creative Community could possibly use it for a popup.

She said yes

The empty lot pop up was created! One artist’s husband took his weedwhacker and cleaned out an area just big enough for pop-ups. Everyone in the group spread the word a pop up was coming through social media and word of mouth. Other artists were invited. Signs were posted around the county. No one person was in charge, everyone participated as best they could.

Empty Lot Pop Up photo by Greg Lakes

It worked!

There were many entrepreneurs set up with their works displayed. Folks came and bought from them, enjoyed the car show, and ate some food from local vendors. The Jackson County Creative Community added more artists as members too. There were lessons learned.

• You can pop up anywhere.
• It’s a good idea to join in another event and promote them both for more attendees.
• People are looking for something new and unique to do. Your excitement brings them in.
• Entrepreneurs come in all shapes and sizes and offering this kind of small step helps create more businesses in your community.
• Business can be conducted in unusual locations and empty lots are great testing grounds.
• It’s a small step. If it doesn’t work, you haven’t lost anything.

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Find this and other Global Entrepreneurship Week events listed on the official calendar at GenGlobal.

The old way to go into business

Imagine all the work that goes into starting a new business. You need to be a good business manager, a marketing guru, and a financial wizard. You need to have great credit, have plenty of your own money, and you better know the right people. You need to have all your ducks in a row.

It takes a lot of time, money and work just to get into business.

The new way is to start small

Now imagine building some steps in between. If you could buy just a few products and test them by renting a booth at a festival, you’d learn more about what works. You could run a temporary business inside another business for a month or two for more testing. You could outfit a travel trailer as a store and set up a circuit of small towns, building a customer base. If something doesn’t work, you can fix it and try again. Now jumping up to starting a traditional store doesn’t seem as hard. You’ve learned what people want to buy. You’ve established relationships with suppliers. You’ve gained a loyal following. All those smaller steps lift you up closer to jumping over that hurdle of starting a traditional business. And if you miss a jump at a smaller step, it’s easier to recover and try something new.

That’s the purpose of the innovative rural business models. They put you in a much better position to succeed, or to fail in a manageable way. It cuts time and money off the process of getting into business.

You don’t need to have all your ducks in a row, as long as you can find one of your ducks and get started.

The Innovative Rural Business Models

First is TINY

• Rather than expect your business to start full-sized, it’s much easier to start something small.  With tiny retail shops, tiny food kiosks, tiny industrial spaces, tiny offices, and tiny artist studios, starting small takes fewer resources, and puts your fragile new entrepreneur idea at less risk from big failures.

Second is TEMPORARY

• Rather than expect to start with a permanent business, try a pop-up. A temporary business will give you immediate feedback on whether there’s even a market for this idea.

Third is TOGETHER

• Rather than sink or swim on your own, start thinking about how to nurture your new business inside an existing business. This can be retailers splitting a space, or a startup using an extra office desk in a service business, or even nurturing a tiny maker inside of an existing manufacturing business. Small towns have fewer usable buildings, so we have to make the best use of every usable building we have.

Fourth is TRAVELING 

• You’re used to seeing food businesses operating out of trucks and trailers, but this idea has expanded. Rather than depending on the market in one town only, innovative businesses are hitting the road to round up customers. Retail stores and boutiques now commonly operate from a truck or trailer. Service businesses are using this model, too: wedding planners, financial consultants, and dog groomers.

Share your own story

You can add your own story, too. What have you learned about rural small business? What’s working in your own business and your own community? What have you learned to avoid?

Leave a comment or use our contact form to share, and I’ll reach out to follow up.

This is global. Stories from anywhere rural are welcome.

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The challenge of rural entrepreneurship

Rural entrepreneurs and small town businesses face extra challenges including online competition, limited workforce and even finding a usable building. Today, creative entrepreneurs are using new innovative business models to overcome these challenges and start businesses that reshape their communities for the better.

What you’ll learn – Start Smaller in Your Small Town

Photo by Becky McCray

At SmallBizSurvival.com from Nov 13-19, 2023, you’ll discover articles, short videos, audios and more free resources focused on how smaller small businesses can succeed. Learn the Innovative Rural Business Models and uncover hidden opportunities, like business inside a business and more.

Contributors Becky McCray and Deb Brown will share their own entrepreneurial experiences, stories from international rural entrepreneurs and their materials from SaveYour.Town and Building Possibility.

Find this and other Global Entrepreneurship Week events listed on the official calendar at GenGlobal.

Once we get going, you can see all our stories tagged with Global Entrepreneurship Week here.

Share your own story

You can add your own story, too. What have you learned about rural small business? What’s working in your own business and your own community? What have you learned to avoid?

Leave a comment or use our contact form to share, and I’ll reach out to follow up.

This is global. Stories from anywhere rural are welcome.

Subscribe to SmallBizSurvival

How Holyoke Hummus stays Idea Friendly through a crisis

One of the first small steps: a used minivan and a tiny food cart. Photo courtesy of Holyoke Hummus Company.

John is the owner of Holyoke Hummus in Massachusetts, along with Dawn and their family. Like a lot of food entrepreneurs, John started by cooking for friends and family. He grew through a series of small steps and experiments, from selling at a folding table at a event, through a tiny food cart, a mobile truck, and pop-ups at more events. Eventually, he opened a cafe in downtown Holyoke across from city hall.

Holyoke isn’t a small town, but you have seen this same type of experimentation by entrepreneurs in small towns that you know.

This was a perfect example of the Idea Friendly Method in business. You start with your big goal. You use that goal to Gather Your Crowd. You turn your crowd into a powerful network by Building Connections. And you and your newly-powerful network accomplish that goal by Taking Small Steps.

Through each step, John was Gathering His Crowd as he built a following. He was Building Connections networking to find resources and answers before taking each step. And of course he was Taking Small Steps.

Business was up and down, mostly good, until COVID hit and closed down the downtown around him.

John didn’t stop. He closed his dining room, of course, but he kept experimenting. As soon as mobile dining was allowed, he converted his cafe to a production base for his food truck. He is also exploring opening it as a shared kitchen for other food businesses needing a base for their mobile operations.

Another small step, the food truck. Before investing in a custom paint job, a small banner held on with bungee straps was good enough to test the market. Photo courtesy of the Holyoke Hummus Company.

Since the downtown location wasn’t working anymore, he wanted to test a new location for his food truck in a nearby community, but there’s a local regulation that doesn’t allow selling from food trucks on the streets. John found the owner of an empty muffler shop building. He asked him for permission to park on his parking lot, and the owner said yes. So he’s setting up shop on the empty parking lot and building a new customer base. Another Small Step.

It’s not easy to keep a business going when a crisis hits, but the Idea Friendly Method makes it possible to move forward without knowing all the answers.

Thanks to our friend Rob Hatch for sharing updates on his friend John and the Holyoke Hummus Company.

Update: 2022 Growing again

Holyoke Hummus is still adapting to changing times. Read how they’re growing without going back to a restaurant.

Idea Friendly means you don’t have to know it all

You don’t have to know all the answers. You just have to be open to new ideas.  

Being open to new ideas requires us to let go of worrying about whether the idea will work. Lots of those ideas will fail. In fact, most ideas will fail. By keeping the tests and trials very small and immediate, we can reduce the cost of failure to almost nothing.

Author Clay Shirky says “Failure is free, high-quality research, offering direct evidence of what works and what doesn’t.”

It will never go back to the way it used to be. You have to start from here and go forward, one small step at a time.

Get the Idea Friendly Method Video

At SaveYour.Town, we’re offering a special video on using the Idea Friendly Method to make your community a better place. Learn more about the Idea Friendly Method video at SaveYour.Town.

This is a short sample from the SaveYour.Town video “Refilling Your Business Pipeline” featuring Deb Brown and me.

Small towns and rural communities will need new business startups to revitalize their local economies, but not many people have the resources today to do a startup the way it’s traditionally been done.

Part of what holds your potential new entrepreneurs back is thinking that going into business has to be a big and difficult and long project.

Imagine all the work that “everyone knows” is part of starting a new business:

If you decided to open a retail store, you have decide on your specialty and what kind of merchandise to carry, deciding or guessing whether your town will support it, finding a location and remodeling it or even bringing it up to code, decorating, finding suppliers and getting started with them, getting your local banking established, securing financing, hiring staff, advertising and marketing, and all that before you even know whether your initial concept is actually sound.

In small towns, those problems can be magnified where you may face a shortage of usable buildings, long distances to suppliers who don’t pay attention to small accounts like yours, few local banks, no chance of local financing, few choices for potential workers, and a smaller potential market. It seems like it takes a lot of time, money and work just to get into business.

You have to get all your ducks in a row.

What if I told you there was a much easier way to get into business?

Just get one duck and go from there. 

Imagine building some steps in between. If you could buy just a few products and test them by running a temporary business inside another business for a month or two, you’d learn a lot about what sells in your local market right now. If that works, maybe you could rent a small booth in a shared retail building. If something doesn’t work, you can fix it and try again.

From there, jumping up to starting a traditional store doesn’t seem as hard. You’ve learned what people want to buy. You’ve established relationships with suppliers. You’ve gained a loyal following. All those smaller steps lift you up closer to jumping over that hurdle of starting a traditional business. And if you miss a jump at a smaller step, it’s easier to recover and try something new.

Why this works

That’s the purpose of the innovative rural business models. They put people in a much better position to succeed, or to fail in a manageable way. It cuts time and money off the process of getting into business. 

For economic developers, these give you an easy way to add entrepreneurship promotion to existing projects and activities. It’s not about starting new things from scratch. It’s about finding and building on the small steps that already exist in your area.

Get the full video

The entire 30 minute is available for purchase at SaveYour.Town: Refilling Your Business Pipeline.

Learn more