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How - and Why - To Start Your Own Company in Rural Nebraska

If you’ve considered starting your own company at all, you’re a special kind of person. You are (or at least consider yourself to be) smart, knowledgeable and multi-talented; you’re self-confident and personable, with enough gumption for two or three people; you have a clear vision of what you want out of life and a work ethic that stretches clear to your toes.

You’re just the kind of person small towns are eager to attract.

Starting a successful business of your own is never an easy path, but, depending on the type of business, you may find it’s easier in a small town than it would ever be in an urban center. Here are some reasons why.

• Governmental support. Governments at all levels, from the federal government in Washington, to numerous Nebraska state agencies, to the boards and councils that govern rural counties and towns are eager for new businesses to locate in rural communities. There are all kinds of programs, grants, advice and financial aid you can tap into if you intend to locate in a rural setting, especially if your business plan indicates your business will create living-wage jobs.
• Community support. It’s hard to imagine an urban community that will pull for your business to succeed the way a small town will. Small towns need an inflow of business to remain viable. They need not only the economic benefit of your sales or property taxes and the jobs you may provide, they need the optimism and spirit your enterprise represents. If you approach your business with diligence and enthusiasm, a small town community will do everything it can to help you be successful.
• Lower cost of space. Many small communities have a surplus of retail and commercial space available. Because too few entrepreneurs have to the vision you do to consider a small town, the demand is low and so is the cost. You’ll find that commercial and retail space – often nice, well-kept properties – can cost half as much as in urban areas.
• Reduced cost of doing business. Some business costs, such as shipping, may be somewhat higher in rural areas, but many costs, such as wages and business insurance are likely to be significantly lower. If you can keep your costs low on the front end, it’s easier to make a profit at the end of the day.
• Lower cost of living. The same forces that drive down the cost of insurance and space for businesses are working to make housing and insurance more affordable on an individual basis. (Take a look at “Ten Good Reasons to Move to a Small Town” elsewhere on this site.) When you consider both your cost of living and your cost of doing business, you’ll find you don’t need quite as much money to make it in a small town.
• Small town way of life. If you think knowing and greeting your neighbors and customers on the street is a good thing; if you like the idea of a low crime rate, no traffic jams and virtually no pollution; if you want to feel integrated into and important to the community you serve, a small-town business might work for you.

How To Get Started

You may wish to explore buying an existing business in a small town. (Try this link to view our database of the best businesses and commercial properties available in our region.) Many business owners feel a responsibility to provide a service to their community, and when the time comes to retire, they are often more interested in finding a viable successor than in making a huge profit.

But regardless of whether you‘re buying a business or starting one of your own, your process should start with research.

If you have a town in mind, start with an assessment of the town’s needs as they relate to your own skills and interests. Some towns have lost goods and services they are eager to replace, while others have a demand for new types of businesses that’s going unfulfilled. Find an opportunity you think will work, then set out to prove it by doing a thorough assessment of the market conditions.

The best way to approach this is by writing a formal business plan. In it, you’ll assess the objective strengths and potential weaknesses of your idea. You’ll identify who your potential customers are, as well as each of your potential competitors. You’ll write down how you intend to reach customers and what about your business will make them stop trading with your competitors and start trading with you. (There are a number of resources online for advice about writing a business plan. One good one is http://www.toolkit.cch.com/.)

Part of your business plan will be to estimate how much money you’ll need to get started. Be sure to include rent, utilities, inventory, advertising – all the expenses you expect to incur, including a modest salary to live on for at least a couple of years. Your own money should make up at least 25-30% of this amount. Even with a good business plan, banks are not eager to lend unless the borrower has a substantial personal investment.

Once the bank has approved your loan, you’ll need to register your business name with the Secretary of State, obtain the necessary permits and licenses, get state and federal tax ID numbers and learn what you need to about collecting and withholding taxes.

Special people – maybe like you? – have what it takes to start and run a successful business in rural Nebraska. We hope you decide to take the plunge and join us out here. One thing for sure, you’ll be welcome when you come.

Additional Resources

Many organizations, educational institutions and governmental agencies offer great resources, advice and support for people contemplating buying or starting a business in a small town or rural area of Nebraska. Here are a few to get started, but there are plenty of others.

• The University of Nebraska Cooperative Extension has a lot of publications on starting a business. Good reading before you take the plunge. Contact them at:
  http://ianrpubs.unl.edu/consumered/nf289.htm.
• The Nebraska Business Development Center will set you up with a consultant of your own to help you work through all the issues of starting a new business. Contact them at:
  www.nbdc.unomaha.edu/consulting/startup.
• The Nebraska EDGE (Enhancing, Developing and Growing Entrepreneurs) is part of the Center for Applied Rural Innovation (CARI) at the University of Nebraska-Lincoln.  It is a community-based entrepreneurial training program designed to encourage the expansion of small businesses. Contact them at:
  www.nebraskaedge.unl.edu.
• The Rural Enterprise Assistance Project (REAP) offers one-on-one technical assistance; networking with other small business owners and managers; peer and direct business micro loans; and business planning and management workshops. Contact them at:
  http://www.cfra.org/reap/.
• The Business Utility Zone has a number of links to free resources and networking opportunities that can help you start and grow your venture in Nebraska. Contact them at:
  http://www.buzgate.org/ne/index.htm

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