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The Best Businesses to Start in CanadaJuly 12, 2023
Every year, nearly 100,000 entrepreneurs launch their own small business in Canada.
According to the Government of Canada website, between 2014 and 2018, the average number of small businesses created in the country was 97,640.
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There is endless opportunity in this great country to start your own business. However, just because you start a business, doesn’t mean it will succeed. The average number of small businesses that dissolve in Canada is 89,227.
So, if you’re looking to start your own company, what do you do to ensure its success?
One of the most effective strategies is to start with the right business idea.
In this article, we’ll cover everything you need to know about the best businesses to start in Canada even if you’re new to the country.
You’ll learn what the best industries are, what the most profitable businesses are, and how you can secure funding to start a business here.
With that said though, the best business that you can start is something you are good at like, a catering business, car wash business or lawn mowing. You’re going to need some capital to start your business, depending on what you choose to start. There are plenty of different ideas and options to still consider, so let’s dive in.
What Is the Best Business in Canada to Start?
So, what are the best overall businesses to start in Canada right now?
Well, the right business to start for one person may not be the right one for you.
However, when you look at everything from demand, income, sustainability, and the simplicity of launching a business, these are the top 4 you can start with a relatively small investment:
If there’s one thing all people love—it’s food. It’s something that brings people together. And, when people are brought together for other reasons, such as a celebration, there’s always food involved.
That’s why catering is one of the best businesses you can start with a small investment. Catering isn’t only needed for birthdays and weddings. But, they’re also great for small get-togethers and parties.
If you have a passion for cooking and an attitude of serving, then this could be the perfect business for you. Plus, it can pay really well.
2. Mobile Car Wash Services
With an investment as low as $25,000, you could start your own mobile car washing business.
If you have a passion for cars, and you want the freedom and flexibility that comes from owning your own business, then a car wash business could be a great opportunity.
3. Cleaning Business
Cleaning can be one of the most inconvenient tasks for people. In fact, so many people despise cleaning that they’re willing to pay other people to do it for them.
That’s where the opportunity is for a potential business owner.
You can start a cleaning business in a variety of niches. You could concentrate on home cleaning, office cleaning, window cleaning, or even air-duct cleaning. It’s a relatively simple service business that could easily be scaled by hiring cleaners and gaining new recurring contracts.
4. Marketing Consulting
Do you have experience in marketing or advertising?
If so, then an advertising or marketing consulting service should be worth considering in Canada.
With the right expertise, you could launch your own consulting business with a very low investment. And, even if you don’t have much experience, you can take a few online courses with a small investment to upgrade your skill set and launch your own business.
Business owners are willing to pay third parties a lot of money to optimize their marketing efforts to bring in new business. This could be a quick and easy way to launch your own business without having to purchase a retail space, own inventory, or hire anyone.
What Is the Most Profitable Business in Canada?
When looking into launching your own business, something you need to seriously consider is profitability.
How profitable will your business be?
It will make a huge difference on how much time you spend focusing on budgeting and expenses and managing cash flow versus working on your craft.
For instance, a restaurant could be a good idea, although the profit margins are very low.
Here are 3 of the most profitable business ideas you could launch in Canada:
1. Real Estate
Canada is known for its relatively high cost of real estate.
While this can be tough on homeowners or renters, it can be extremely lucrative for those involved in the real estate business.
Real estate agents help people buy and sell properties. However, there are other real estate industry businesses you could start like real estate investing, property management, or mortgage brokerage.
Even though the market is slowing down a bit now, you can still make good money. According to IBIS World, real estate businesses saw an average profit margin of 46.5% in 2019, making it a very profitable business opportunity in Canada.
2. Storage & Transportation
One of the most important industries in any country is transportation.
Wherever trade occurs in the world, there’s a need for transporting goods.
However, a related industry that’s almost as in-demand in storage. Companies and individuals need to place their goods somewhere—and with a finite amount of space on the planet, storage prices will only continue to rise over time.
According to the Government of Canada website, In 2016, over 86% of transportation and storage businesses were profitable—with annual yearly revenues over $279,000.
3. Waste Management & Remediation
A consumer society like ours is led by production of goods.
However, not everything that’s created to be consumed is fully consumed or reused.
A major portion of goods and packaging produced end up in landfills.
And, as time goes on, more businesses are being driven to use sustainable products.
That’s where waste management and remediation comes into play.
Someone needs to store and get rid of waste. And someone needs to turn plastic bottles into toys.
In 2015, over 86% of businesses in the waste management and remediation industry had a profit.
While this may not be the most enticing industry to enter, it is certainly necessary—and profitable.
What Business Can You Start With 50k in Canada?
The truth is, you need to have money to make money.
This holds true for starting your own business.
And, while some businesses require hundreds of thousands of dollars—or even millions to start up, you can launch a wide variety of businesses with as little as $50,000.
Here are some of the best businesses you can start with $50k in Canada:
- Gourmet Coffee Kiosk (Mobile Coffee) – $25-$50k investment
- 3D Printing – $10-$50k investment
- Dance Studio – $10-$50k investment
- Bakery – $10k-$50k investment
- Catering – $5k-$50k investment
- Food Truck – $35k-$75k investment
- Pet Related Business – $5k-$30k investment
- Editing Services – $0k-$10k investment
- Tanning Salon – $50k investment
- Fitness Boutique – $20k-$50k investment
- Vending Machines – $2k-$50k investment
- CBD Business / CBD Vending – $50k investment
- Cell Phone Repair – $1k-$30k investment
- Co-Working Space – $30k-$100k investment
While these are some of the top businesses to start in Canada with only $50k, there are hundreds of others you can start with just a few thousand dollars.
If you need help funding your business venture, click here.
What Business Can You Start With 100k in Canada?
If you have a bit more capital to work with when launching your business, then you have a few more options when it comes to different business ideas.
Here are a few businesses you can start in Canada with $100k:
- Coffee Shop – $50k-$125k investment
- Auto Repair – $50k-$110k investment
- Beauty Business – $50k-$100k investment
- Accounting Services – $50k-$100k investment
- Event Planning – $30k-$125k investment
- Cold Stone Creamery – $50k investment
- IHOP – $90k investment
What Are the Most In Demand Businesses in Canada?
Many people think of starting a business based on a fun idea or something they’d love to do. However, many of these businesses end up failing because there simply wasn’t enough demand for them.
Business is all about demand. If people don’t want what you have to offer, then you won’t make any money.
That’s why you should always consider how in-demand a particular product or service is before you launch.
Here are some of the most in-demand businesses in Canada:
- Real Estate
- Financial Services
What Are the Most Profitable Industries in Canada?
Some industries are much more profitable than others.
Before you go forward with a business idea, you should consider how profitable the industry is overall.
Here are some of the most profitable industries in Canada right now:
- Oil & Gas Drilling & Extraction – 2022 Profit: $7.9 Billion
- Real Estate – 2022 Profit: $5.2 Billion
- Long-Distance Trucking – 2022 Profit: $3.6 Billion
- Pharmaceutical Supplies – 2022 Profit: $3.5 Billion
- 5. Engineering Services – 2022 Profit: $3.1 Billion
- 6. Thermal Power – 2022 Profit: $2.9 Billion
- 7. New Car Dealerships – 2022 Profit: $2.9 Billion
What Is the Best Manufacturing Business to Start in Canada?
Most people don’t typically think about manufacturing when they first think of starting a business.
Why? Because most manufacturing isn’t that exciting. But, what is exciting is how much revenue manufacturing can bring in.
Here are the top manufacturing businesses you can start in Canada:
- Clothing Manufacturing – Avg. Revenue: $880k/year
- Furniture Manufacturing – Avg. Revenue: $400k/year
- Oil Production – Avg. Revenue: $350k/year
- Healthy Snack Food – Avg. Revenue: $6 million/year
- Fitness Equipment – Avg. Revenue: $8.5 million/year
- Laundry Detergent – Avg. Revenue: $240k/year
- Natural Beauty Products – Avg. Revenue: $60k/year
What Is the Best Business in Canada for Immigrants?
If you’re an immigrant, then one of the best job opportunities in Canada is simply starting your own business.
In Canada, immigrant-owned businesses create more jobs on average than businesses owned by Canadian-born owners.
The Canadian government encourages immigrants to start their own businesses as it is beneficial for the Canadian economy.
Here are some of the top immigrant-owned business opportunities in Canada:
- Agriculture (Farm work, Truck Drivers, Meat Processing)
- Tourism & Hospitality (Restaurant, Café, Hotel)
- Retail (Merchandise Shops, Gas Stations, Motor Vehicle Dealerships)
- Construction (Commercial, Residential)
- Professional Services (Lawyer, Doctor, Accountant, Scientist)
If you haven’t immigrated to Canada yet, then you can apply for a fast-tracked immigration process through the Provincial Nominee Program (PNP) by launching your own business.
What Are the Most Successful Small Businesses in Canada?
Success can mean many things to different people.
For most entrepreneurs looking to start their own business, success is most easily judged by a business that survives the first few years.
If you’re looking for businesses most likely to succeed, then you’ll want to look at the most popular businesses — as they remain alive due to high demand.
Here are some of the most successful small businesses in Canada:
- Retail (12.1% of small businesses)
- Construction (12.3% of small businesses)
- Professional, Scientific, Technical Services (12.1% of small businesses)
- Health Care & Social Assistance (9.5% of small businesses)
- Other Services (9.2% of small businesses)
What Is the Fastest Growing Business in Canada?
As of 2020, the fastest-growing business in Canada was Marlin Spring. It’s no surprise that this is a real estate company, with the recent real estate boom over the past few years.
They were founded in 2013 and have consistently grown over the years, reaching 60,000% growth in five years, making them one of the best success stories in Canadian business history.
Here are a few more of the fastest-growing businesses in Canada:
- Fullscript: Healthcare & Software
- Flexiti: Financial Services
- Shipfusion: Ecommerce & Transportation
- Viral Nation: Marketing
- Article: Retail & Ecommerce
- LPI Mechanical: Construction
- Honk: Information Technology
- Talent.com: Human Resources
- Pela: Retail
According to the Government of Canada Website, the industries that have seen the most growth between 2014 and 2017 are:
- Informational and Cultural Industries
Best Business Ideas in 2023
If you’re looking to start your own business in 2023, you have plenty of options. This is especially the case with so many more people able to work from home and virtually. That said, though, the most profitable, cheapest to start, and something you can do from home or in an office is Bookkeeping and payroll. So many people are looking for someone to help manage their books to keep their business running smoothly.
Home Based Businesses in Canada
While payroll and bookkeeping is one option when it comes to creating a home based business, there are plenty of others as well including:
Best Options Based on Province
If you’re looking to start a home based business in Canada, it doesn’t matter where you live. That’s something you can do from anywhere and offer to anyone. If you’re looking for a business idea that isn’t home based, then you want to consider where you live and what types of businesses would succeed in your area. Let’s look at BC, Ontario and Alberta.
If you live in BC there are plenty of options for you in regards to business ideas. Some of the most successful are:
In Alberta, the most successful businesses are:
Lastly, in Ontario some of the most successful business ideas are:
Work From Home Businesses and Side Hustles
If you’re looking for work from home business, or even a side hustle, with today’s technology, the sky’s the limit. With that in mind, here are some of the most popular and most popular options.
There are plenty of other options out there as well, but these are the most popular currently.
Where Can You Get a Business Loan in Canada?
If you’re a Canadian citizen or permanent resident looking to start your own business in Canada—and you need some help financing it—then your best option is to reach out to a trusted Canadian lender, like Spring Financial.
Spring Financial is an accredited Canadian lender that leverages innovative financial technology to provide fast, same-day funds for Canadians.
Whether you’ve lived in Canada your whole life, or you’re an immigrant, you can rest easy knowing you have financial support to launch your own business.
It only takes two minutes to get approved for an online loan today.