40 rural business ideas to start in the UK

Before embarking on any business venture, it’s crucial to conduct research to understand the characteristics of the local market. 

Demographics of the rural market

As of July 2023, Around 10 million people live in rural areas – and the more rural the areas, the older the average age (and the faster this average age is increasing). A mix of retirees enjoy a peaceful lifestyle in rural areas, as well as younger families seeking a slower pace. Overall, ‘white’ is the majority ethnic group in both rural and urban areas, however urban areas tend to be more ethnically diverse.

In terms of net internal migration, it leans towards predominantly rural areas, and the rate of this migration has grown since 2011; the exception to this is amongst those aged 17-20 who are leaving predominantly rural areas in search of education and training opportunities.

Unique characteristics of rural markets

Rural markets are characterised by tight-knit communities, where word-of-mouth recommendations heavily influence consumer choices. With lower population densities, dispersed settlements, limited access to amenities and a strong reliance on agriculture and local businesses, local marketing strategies are not just a nice-to-have, but a necessity.

Rural markets are witnessing a shift towards sustainable living and eco-friendly initiatives. Prioritising tradition and heritage, rural dwellers are also driving demand for locally sourced goods and agritourism experiences.

Interestingly, two sectors have been identified by the Government as the joint largest based in predominantly rural areas in England:

• The first is distribution, transport, accommodation and food (19%)
• The second is public administration, education and health (19%).
• Agriculture, forestry and rural affairs contributed 2% of rural England’s total economic output. The rural economy’s reliance on agriculture and primary industries does result in seasonal fluctuations.

Current market trends in rural areas

There’s a growing emphasis on sustainability, with increased demand for locally sourced products, eco-friendly initiatives and ethical practices across various sectors, including agriculture, tourism and retail. City residents are also moving to rural homes in their quest to live more sustainably. Rural homes often come with the potential to harness renewable energy sources such as solar and wind power, to grow your own food and live a life more in tune with nature’s rhythms. As the climate change drum beats louder, being able to reduce your own carbon footprint by living off the land is an enticing concept for many conscientious consumers. We can’t see this trend budging any time soon as climate change will only continue to become a more and more pressing issue.

Despite challenges like digital connectivity issues in rural areas, there’s been a rise in remote working and digital connectivity – prompting some urban dwellers to relocate to greener and more pleasant lands. This has driven a surge in property sales and investment in rural infrastructure. The global pandemic undoubtedly altered views on the traditional work environment, with remote work becoming not just a necessity but a sustainable option for many.

Agritourism is also gaining traction, with more farms diversifying their revenue streams by offering experiences such as farm stays, tours and workshops, catering to the growing interest in rural lifestyles and agricultural education.

There’s also a rising awareness and appreciation for rural arts, crafts, and cultural heritage, leading to increased support for local artisans, festivals and community events – all successfully fostering a sense of pride and identity within rural communities.

Let’s quickly summarise the key steps to follow when launching a rural business (or any business venture for that matter!):

1. Research: Thoroughly research the viability of your business idea in rural areas by understanding the needs and preferences of local residents. Analyse the competitive landscape to identify gaps in the market that your business can fill. Consider conducting surveys or interviews with potential customers to gather insights into their purchasing behaviour and preferences.
2. Business plan: Develop a comprehensive business plan outlining your objectives, target market demographics, unique selling points, pricing strategy, and sales projections. Include detailed financial forecasts, such as startup costs, revenue projections, and break-even analysis. Your business plan will serve as a roadmap for your venture and help secure funding from investors or financial institutions.
3. Legal requirements: Familiarise yourself with the legal and regulatory requirements for starting a business in the UK. Register your business with HMRC for tax purposes and ensure compliance with relevant regulations, such as health and safety standards, food hygiene regulations (if applicable), and licensing requirements specific to your industry.
4. Funding: Explore funding options available for rural businesses, such as government grants, loans, or investment opportunities from angel investors or venture capitalists. Prepare a convincing business proposal and financial projections to secure financing that aligns with your startup capital needs and growth plans.
5. Location: Choose a strategic location for your rural business that maximises accessibility for customers and suppliers while minimising operational costs. Consider factors such as proximity to transportation routes, availability of utilities and the potential for foot traffic or passing trade. (Online-only businesses won’t need to worry about physical location, but will need to consider online visibility through local SEO to ensure their business is found online by local communities.)
6. Branding and marketing: Develop a strong brand identity that resonates with your target market and reflects the unique value proposition of your rural business. Create a marketing strategy that utilises a mix of online and offline channels to reach and engage customers, including social media, local advertising, community events and partnerships with other businesses or organisations.
7. Operations: Establish efficient operational processes for the day-to-day management of your rural business, including production, inventory management, customer service and administrative tasks. Invest in technology and systems that streamline operations and enhance productivity, such as point-of-sale (POS) systems, inventory management software and customer relationship management (CRM) tools. (Different types of businesses will require different processes and equipment.)
8. Launch: Execute your business plan and officially launch your rural business, leveraging your marketing efforts to generate buzz and attract customers. Monitor key performance indicators (KPIs) closely and be prepared to adjust your strategy based on customer feedback and market dynamics. Continuously seek opportunities for growth and expansion while maintaining a focus on delivering value to your customers and building a sustainable business in rural areas.

Marketing a new business is a whole topic in itself but here are some quick points you’ll want to factor into your launch and ongoing operations:

• Online presence: Get your house in order before you press the promotion button. Your website and social media platforms will help you reach customers beyond local boundaries and engage with a wider audience – ensure they’re informative, engaging, have clear calls to action and are device and user-friendly before picking up your marketing trumpet. 
• Local advertising: Depending on your audience preferences and offering, utilise traditional methods like community newspapers, radio ads, signage and sponsorship of local events to build brand awareness within your rural community. (Read more: 17 ways to do effective local marketing)
• Email marketing: Implement email marketing campaigns to communicate with customers, share promotions and build relationships. Personalising your emails to customer profiles and preferences will drive better results. A CRM system will help with this.
• Search engine optimisation (SEO): Optimise your website content for search engines to improve visibility and attract organic traffic from people searching for products or services online that match your offering. (Read more: Search engine marketing for small businesses)
• Community engagement: Establish strong relationships within your local community through participation in events, supporting local causes and providing exceptional customer service.
• Word-of-mouth marketing: Encourage satisfied customers to spread the word about your business through positive reviews, referrals and recommendations to friends and family.
• Targeted promotions: Offer special promotions, discounts or loyalty programmes tailored to the needs and preferences of rural customers, incentivising repeat business and customer loyalty.
• Partnerships and collaborations: Join forces with other local businesses, organisations or influencers to cross-promote products or services and expand reach within the rural community. Jump onto social media to see which local businesses have a hefty social following to steer your initial search to aid exposure. Ensure your collaborations are thought through – they need to be complimentary offerings with similar audiences to give your business the best chance of generating new customers.

As you can see, rural Britain is certainly the land of opportunity for entrepreneurs looking for a life in the countryside.

A few final tips:

• It goes without saying, but ensure you have – or get! – the necessary training and qualifications to start your rural business venture.
• Consider working with professionals including an accountant and legal advisor to ensure everything is set up correctly.
• Market research is crucial – gaps in the market, opportunities and challenges will vary area by area, as will the amount of competition you’re up against. Ensure you dedicate enough time to this phase of your business plan. Find the right offering in the right area and you’re giving your countryside career the best chance of success.
• Network, network, network.