Small Town

Challenges

While there are many clear benefits to operating in a smaller town, it does come with its fair share of challenges.

40% of rural small business owners use personal savings because they have trouble accessing capital

74% of rural owners can’t find candidates with the right education, skills or training

69% of rural business owners cite a lack of talent pool in their area

56% of rural small businesses do not have good access to digital technology

20/80 rule

20% of rural small businesses generate at least 80% of their revenue by selling online

Source: SCORE.org, 2021 survey thoroughfares like Interstate 94 and Highways 10, 15, and 23 was a deciding factor in where to locate. That was the case for Granite-Tops in Cold Spring, according to Joel Dehmer, vice president of sales. “We chose the Cold Spring area mainly for proximity to our suppliers,” Dehmer said. “There was also more land availability in our Cold Spring area compared to the metro. In the mid1990s, most fabricators started their business in the Cold Spring area since almost all materials came from a couple suppliers. This meant that production was close for trucking and still only an hour away from the Twin Cities for most luxury home builders that used granite for their homes.”

Michael Monson is a community and business development specialist with Community and Economic Development Associates (CEDA), an organization that works with the City of Cold Spring. He agrees that one of the city’s biggest selling points is its location. “Cold Spring is approximately 6 miles from a major interstate (I-94), and about 15 miles from St. Cloud, with easy access to both,” Monson said. “Geographically, Cold Spring is located in an excellent position, and we have plenty of commercial space available for businesses to move in.”

“The small-town atmosphere is great while still having convenient access to St. Cloud and the Twin Cities, as well as other cities in close proximity,” Tayler Burg, human resource generalist at

Midsota by Novae, said of its location in Avon.

Franklin Outdoor Advertising is in Clearwater and services the St. Cloud area as well as the Metro. Location can also play a factor in cost savings, according to Franklin's Market Manager Brent Mellesmoen. “Driving is a big expense for us and our location in Clearwater off I-94 has shortened our drive times,” he said.

Support

Operating in a smaller town can allow for closer relationships between businesses and the city. This open line of communication helps to address concerns, build trust, and ultimately help business owners succeed.

Finding a community with a friendly and supportive administration was important to Julia Krengel when it came to deciding where to relocate her business. “I met with the St. Joseph administration to share my business goals and reno plans,” she said. “They were easy to talk with, they explained the additional resources that were available in St. Joseph, and they even came out to my potential location to help me brainstorm on all my possibilities. I'm so grateful to them for making the process as easy as possible!” Today, The Perfect Fit, a personal training studio, is in a renovated house in St. Joseph.

Mateo Mackbee and Erin Lucas are the owners of Krewe and Flour and Flower in St. Joseph. They love being located in a city that truly lives its motto – small town warmth, big city cool. “We have been supported by this community from the start, it has made us want to show up for them in return,” Lucas said. “We are grateful to be in an area that supports our vision!”

Competition

Businesses located in larger cities reap several benefits, but one challenge that can be addressed with a small-town location is the fact that there is simply less competition. A lack of competition can make it easier for a company to set itself apart as the leader of the industry in its community, according to business consultant Alton. This in turn reduces marketing costs and increases effective word-of-mouth referrals.

On the other hand, competition can have a way of bringing businesses together, which is the case for St. Joseph. “Our businesses have the mentality of ‘we’re all in this together’ versus seeing each other as direct competitors,” Keller said. “We also have a ton of passionate people who work very hard because they truly care about the well-being of the community.” Lucas of Flour and Flower agrees that “all of the independent business owners in town” is one of her favorite parts of operating in St. Joseph.

Community

While there are many great reasons to locate a business in a smaller town, community support is stated as most important for nearly every company. The same SCORE.org data mentioned earlier highlights 80% of rural small business owners believe the quality of life and cost of living are much better in rural areas.

Rotochopper, a manufacturer of grinding equipment, started on a farm in St. Martin. The company now sells equipment worldwide, but it does not have plans to leave the small community despite all of its business growth, according to Angie Brick, director of community relations. In fact, they even plan for an expansion of the St. Martin facility. “Being neighbors come together in time of need and work together as a community.”

Not only is community support important from a business operations level, but it also provides value to employees of these companies. “Our employees are established in the community and appreciate the local employment opportunity,” Granite-Tops’ Joel Dehmer said. “We have been in business since 1995 with many dedicated employees who live and spend their incomes in the Cold Spring area.” understand the attraction to Sartell. It was clear that one of the biggest enticements is our top 20 school district and family-friendly, safe setting,” she said. “This provides a stable workforce for employers.”

“Cold Spring has a strong workforce, a great school district, and community members who take a lot of pride in their hometown and local businesses,” CEDA’s Monson said. “The city is not too big or too small, and has tons of amenities, so it is a great place to live and raise a family.” working together to make the region a great place to own and operate a business. “Doing business in central Minnesota has lead us into being part of other central Minnesota companies,” Midsota’s Burg said.

“I'm grateful that St. Joseph is in close proximity to many wonderful communities,” Julia Krengel said. “My company serves not only St. Joseph, but all of central Minnesota.”