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Starting a Business in a Rural Location
Is It Possible?
It most certainly is, but there are caveats and this article will list them out, along with helpful solutions to them. Starting a business can be a difficult task, from the initial planning stages to "taking the leap" and leaving full-time employment. These are made more difficult if you are not located in a city. The Media Farm's first office is located in Lunenburg, Nova Scotia, as is HB Studios, Atlantic Composites and more. It can however be a great way to combine a relaxed lifestyle and business.
1. Internet Availability
When we started out as an internet business, our top priority was internet availability. Since more Canadians now surf the web rather than watch tv, it is vital that a business can at least offer an email address (that is checked regularly!). If the business is going to compete with others in Google, then a website is the logical next step. However the updating of the website as well as uploading files to it such as newsletters, brochures and so on, all require a decent internet connection and one that does not tie up your phone line (so no dial-up). Remember also that if you wish to offer POS services, such as a virtual VISA terminal for taking payments over the phone, then it will require an internet connection too.
In a rural location, there are 2 alternatives for receiving internet; cable and wireless. In Nova Scotia, cable is offered by either Eastlink or Aliant. For satellite, there is a rural program for businesses to receive a wireless service, called the Broadband for Rural Nova Scotia (BRNS) program.
2. Mail Delivery
Many clients will prefer to pay you by cheque and unfortunately this can cause headaches. In rural communities, the mail can be delayed by rough weather and sometimes clients may incorrectly address the mail (such as when you live on a small rural route). Consider how much mail you will receive in this manner and act accordingly; if it is going to be significant then purchase a mailbox or check that you have access to one in your local town already.
3. Postage
When starting an online business, it is common to calculate shipping rates online so that the end-user knows the correct total price. When in a rural location, physically stocking products can lead to higher shipping costs. The costs may not be uniform either (for instance purely based on weight) - a carrier may charge by volume. In the early stages of planning for a business that will stock products, consider whether a central distribution location in a city would be a better option. On our client websites that use our FREE E-Commerce solution, Canada Post (among others) can be directly plugged in, meaning that the complex calculations can be avoided for the mostpart and your clients can seamlessly proceed to checkout.
4. Client Meetings
Being rural does not necessarily mean that you are far from a highway or an airport, but it is likely that this will be the case. In such circumstances, it may be difficult for your prospective or current clients to be able to meet with you and as such you may miss out on potential contracts. Early on, take a look in your local towns to see if any office space is offered for temporary meetings. If not, budget for trips into the city. Better yet, invest in a toll-free number such that you can welcome phone meetings easily and affordably. Here at The Media Farm, we use My1Voice.
5. Passing Trade
If your business relies on end-users, consider that there will be no, or little, passing trade (or "foot traffic"). In this case your need for a website and remote communications (such as a toll-free phone number, regularly checked email address and so on, is higher. A storefront in the city benefits from customers who are completely new, but online, your business must rank well in search engines such as Google to make any real profit.
6. Impression
A business, no matter how well it does, will suffer from the attitude that if it is rural, it is not "with it" or is disconnected from modern practices. This is almost always untrue, however if prospective clients are used to the city and used to doing business in the city, then you will need to work hard to prove to them that you are equal, or better, than the competition. Your rental rates may be lower and so you can offer better deals for instance. You may wish to promote your essential business benefits online even more strongly than normal, since you will not have the professional looking office building in the center of the city.