You have to think of your business in the following fashion. Ask yourself questions, many questions.
Do this place (that means your city/town) needs this service/product?
Is all about supply and demand when it comes to a business. 9 times out of 10 a metro area will already have what you are trying to sell/accommodate. But don't get discourage, if this is the case ask yourself the following questions;
How can I provide such product/service better than the others?
Here your next task is to investigate, how much do they sell things for, how fast, how many buyers exist in the market, can you provide the same service at a better price, faster?
All businesses will always have a bad habit, just as people. Poor customer service, poor marketing, high prices, slow delivery..
These are your doors to offer a competitive advantage.
Just ask questions :)
---Deep down as a principle I reclaim the ability to think globally but act locally. It's all about connecting, the more we connect with people, the higher the potential. Collaborations are the keyword of today's global world. I'm a marketer. - www.cregency.com
It does not matter that small business is running in a small town or a metro city. Ultimately, the quality of products and services that the company provides matters. There are many examples of it. But, before starting such a business, you should consult a professional financial Planner for it.
I personally do not see any problem of starting a business in a big city. In this competitive world, although it will be a little difficult but if your provide your customers proper service then your business will automatically grow.
I am planning to start a small business but I have one doubt that is metro cities are suitable for starting a small business.