Over the last two years, many people have left Montreal and other cities. Some were looking for more space; others saw their jobs move to remote work permanently. A significant number of them now face the same question: is it possible to earn a living in the region?
It can be. However, the startup ideas that succeed in a small region differ from those featured in technology news. A village of two thousand residents does not need another app, but it may have a real need for someone who can repair a furnace on a Sunday.
Travelling to canoe trips last summer, through one small town after another, we observed the same gaps repeatedly. Below is the approach we recommend for finding an idea that fits the region.
Where can a viable business idea be found in a small region?
In what residents leave the region to buy. In our experience, this is the most reliable source of small business ideas. Each time someone drives an hour to obtain a product or service, a potential business exists in that gap.
Ask residents directly. Where do they go for a haircut they are satisfied with? For a phone repair, a small engine repair or a bicycle tune-up? Where do they buy good bread, fresh fish or a birthday cake? Who prepares their taxes? Who helps an older parent with a new computer?
Some of these gaps exist for a valid reason: the market is genuinely too small. Others exist because no one has tried, or because the last person offering the service has retired. These are the opportunities worth examining.
New residents also create needs. People working from home in the country require a reliable internet setup and IT support. Cottage and cabin owners need someone to check on the property, plow the driveway and clean between rentals. In some areas, these services barely existed a few years ago; demand for them is now steady.
Can a business based in a rural area sell online?
Yes. The second option is to live in the region and sell primarily outside it.
This approach is more viable now than ever. Setting up a small online store takes an afternoon on Shopify or WooCommerce. Canada Post collects parcels from rural addresses. The pandemic has also accustomed many Quebecers to buying local products online; Le Panier Bleu, the provincial directory of Quebec businesses, emerged from that movement.
Products that sell well from a rural base often carry a story connected to the place: maple products, as well as honey, preserves, soap, crafts, woodwork, specialty foods and printed goods. Services that do not require a physical presence are also well suited, including bookkeeping, design, translation and web work. We have carried out this type of work from locations far more remote than rural Quebec, with much weaker internet connections.
Internet access remains the main constraint. The Quebec and federal governments have committed to providing high-speed access to every household by this September, and considerable work is under way on the ground. In areas where high-speed service has not yet arrived, we recommend confirming availability before building a business that depends on it. A well-built online store is of little use if product photos cannot be uploaded.
Combining local and online sales
The most resilient businesses we observe do both. A bakery sells in the village on weekends and ships its granola across Quebec. A craftsperson operates a small shop in town alongside an online store. Local sales provide weekly revenue and customer feedback, while online sales provide room for growth once the local customer base has been reached.
How can the size of a local market be assessed?
With realistic figures, before any commitment. This is the stage where many rural business ideas fail, and it is far better for that to happen on paper than after signing a lease.
Work through the calculation step by step. Suppose the service area has 8,000 residents. How many of them are potential customers? For a children's activity, the market consists of families with children of the right age, which may represent a few hundred households. How often will they buy: once a year or every week? How much will they pay, considering that some earn considerably less than urban wages?
Then reduce that figure by half, since not everyone will choose your business. If the result still supports a living, the idea is viable. If it does not, the project is not necessarily over; it may require a second revenue stream, a larger service area or an online component.
Seasonality must also be considered. Many rural regions in Quebec have a busy summer, a steady fall and a very quiet period from November to the holidays, followed by another slow period during the spring thaw. We recommend planning cash flow for the quiet months from the outset.
Does online visibility matter in a small town?
More than is generally assumed. Small towns do rely partly on word of mouth. However, new residents do not yet know anyone, and cottage owners are present only on weekends. They search on their phones.
We recommend claiming your Google Business Profile listing, adding real photos and keeping your hours up to date, along with a simple website that clearly describes your service area. Basic local SEO is inexpensive and, in a small region, there is often very little competition. This is an often-overlooked advantage of a small market.
Where can entrepreneurs get help developing their idea?
The BDC offers a useful set of free articles in its start or buy a business section, including extensive material on business plans and on acquiring an existing business. That second option deserves more attention in the regions. Many owners are nearing retirement with no successor in place. Acquiring an operating business with an established customer base can involve less risk than starting from nothing.
Your local SADC and your MRC's economic development team know the region's needs better than anyone. We recommend meeting with them with your idea in writing. They can tell you whether someone has already tried it and why it did not succeed, which is highly valuable information.
In our view, ten small, viable businesses offer a region more than one large idea that requires an urban market to survive, and small regions tend to reward this approach.