Do you want to start a business in Canada? Are you searching for profitable investment opportunities in Canada? Here in this post, we have accumulated some of the profitable sectors to invest in Canada and lucrative business ideas in Canada for citizens and immigrants.
Like other developed countries, the Canadian economy is dominated by the service industry, which employs three-quarters of Canadians. As per this report, about 1.19 million small businesses were operating in Canada at the end of the year 2022. This is about 97.8% of the total businesses, including medium and large scale.
According to the World Bank Group, Canada ranks 23rd in starting a business under the report of ease of doing business in Canada. Getting the registration procedures done for a new initiative takes only a day. According to a report released by the International Monetary Fund, Canada is ranked the 10th largest economy in the world in 2023.
62 Profitable Business Ideas in Canada
Automotive Business Ideas in Canada
The automotive service industry has huge potential in Canada. To complement the country’s wide manufacturing activities, the industry boasts a well-developed vehicle dealer network, plus an aftermarket organization that has grown into a world-class distribution system and service provider. This creates several small business opportunities in the automobile sector.
1. Tire Store
If you want to start a retail-based business in any city or town in Canada, a tire shop is a lucrative option you can explore. However. you need a strategically correct location for your tire shop. Check this business plan to learn more about starting a tire shop.
2. Automobile Service Station
If you have some auto repair experience or a mechanical graduate degree from an institution in Canada, auto repair and service is a good business to start. To make more profit in this business, the repair shop’s location will play a big role.
3. Driving School
The average Driving Instructor’s salary in Canada is more than $40,275 per year. There is a good demand for deriving instructors in Canada, especially in cities like Toronto. If you are good at driving or have a good network of driving instructors, starting a driving school can fetch you good returns.
4. Mobile Oil Change
You can provide services like conventional oil, filter, lube, and inspection service for regular cars or light trucks that require maintenance services at certain intervals. There are many companies in Canada making decent money providing oil change services.
5. Car Wash Business
You can start a car wash business in Canada with an investment of $25,000. Check around if there is a demand for car wash services from car owners in your nearby locality, a mobile car wash business is worth starting.
6. Spare Parts Distribution
If you have a retail space in a commercial location in a city or a small town in Canada, starting a spare parts selling is a profitable niche in the automotive sector.
7. Tow Trucking Service
If you have considerable money to invest, starting a vehicle towing service has a wide scope of making good money in Canada.
8. Catering Service Business
People look for catering services not only for birthday or wedding parties. Catering services are popular in every small get-together or small party or for a small number of guests. If you have a well-organized kitchen, a passion for cooking, and an attitude of serving people – the business is perfect for you. Local networking is important. Make your business available in local online directories.
9. Cleaning Service Business
You can start any type of cleaning business from home. The startup cost is much less. According to your skill, you can concentrate on the niche segment. You can also start a cleaning agency. Office cleaning, window cleaning, and air duct cleaning are popular cleaning business opportunities to start on a small scale.
Consulting Business Ideas in Canada
Experts and professionals from various industries look for profitable consulting business ideas to do something different, enjoy more job flexibility, and make more money. Consulting is not a new phenomenon. It has been around for years. The consulting trend is continuing to build as companies are staying as lean as possible in tough economic times.
10. Advertising Consulting
Do you have good experience in the field of advertising? If yes, an advertising consulting service is worth considering in Canada.
11. Image Consulting
Image consulting is all about advising people to look and feel better to appear confidently. If you are the one who understands a thing or two about beauty makeovers, image consulting is the business you can consider diving into.
12. Internet Marketing Consulting
Every small business nowadays looks forward to making a presence on the internet. This interest has created a demand for trained internet marketing professionals in Canada.
13. Public Relations Agency
Public relations professionals in general work with print media, electronic media, and also digital media. The media industry in Canada provides a wide scope for professional public relations specialists.
14. SEO Consulting
Every business wants to get a higher ranking on internet search engines. If you have the knowledge and the tricks of search engine optimization, it is worth considering starting a business on SEO consulting.
15. Wedding Planning
Wedding planners are in high demand at present in the country. If you enjoy planning events and parties, a wedding planning business is the one that can fetch you good returns.
Beauty Business Opportunities In Canada
The beauty and cosmetics industry in Canada is booming, which is good news for entrepreneurs in the field of beauty. The Canadian Cosmetic Toiletry and Fragrance Association (CCTFA) reports that beauty in Canada is a $9.5 billion-a-year industry.
The beauty industry is steadily growing by 0.7% a year and there’s still ample room for opportunity, especially in Quebec, Ontario, and British Columbia. Although Toronto, Vancouver, and other major cities have competitive beauty industries – the rest of Canada offers little to market saturation – which makes starting a beauty business much easier than in other countries.
16. Beauty salon
Beauty salons provide a wide range of services from cosmetic treatment and personal care. If you have some experience in makeover service and retail space, opening a beauty salon is worth considering in cities like Toronto, Ontario, etc.
17. Makeup artist
As a makeup artist, you will offer a variety of different makeup services. You may also make money by selling makeup and makeup supplies.
18. Nail Salon
Starting a specialized nail is another beauty-related business you can consider. The demand for manicure and pedicure services is expected to grow in Canada in the coming five years.
19. Mobile Spa
If you are an expert in spa-related services and do have not much money to invest, think starting a mobile spa can be a good idea. However, in addition to knowing the art, you need networking capability to make the business more profitable.
20. Barber Shop
A barbershop is an inflation-free business. If you have retail space and haircutting skills, getting customers is not difficult in small towns and cities in Canada.
21. Beauty Supply Store
If you have a retail shop space in a good location, starting a beauty supply store in Canada is worth considering. Other than buying equipment and accounting software, you need to invest in buying makeup and haircare-related beauty products in your store.
Online Business Ideas in Canada
Much like the rest of the global market, the online business industry in Canada is on the rise. Find below some of the most in-demand online businesses that can be started with minimal investmnet.
22. Start an Online Product Store Business
More and more people are showing interest in buying products online in Canada. If you are a small manufacturer or have a product distribution business, making an online shop will not only fetch more customers but also enhance brand growth.
For people who are not in the product-selling business but still want to enter the online selling space, dropshipping is a good alternative.
23. Freelance Writing Business
As more and more companies in Canada enter the online market, creating websites is becoming mandatory for them. And so is the demand for content writers is also growing. If you enjoy writing, starting a freelance writing business can fetch good profits.
24. Become an Affiliate Marketer
If you are looking for a home-based online business with almost no investment in Canada, start an affiliate marketing business. As an affiliate marketer, you will be promoting the products or services of companies. When a sale is made through your effort, companies will pay you commissions.
25. Start a Niche Blog
If you are good at writing and have experience in a specific field of beauty, sharing your thoughts through a blog can fetch you good money. There are many in Canada making millions out of blogging. In addition, you can earn extra income by selling or recommending products and services.
Read: How to Start a Blog & Make Money
26. Create Online Courses
Nowadays, there is a huge demand for online learning in almost all countries across the world. And Canada is no exception. You can design an online course on a subject or subjects where you have certain expertise and have a good demand. Once your course is accepted by students, you start to earn recurring income.
27. Become a YouTuber
The popularity of YouTube is gaining day by day. There are thousands in Canada making good money running YouTube channels. If you have a passion and expertise in a certain niche, consider starting a YouTube channel and making extra money.
28. Virtual Assistant
The job of a virtual assistant generally revolves around administrative activities. It can be scheduling appointments, making phone calls, arranging travel for executives, or organizing emails. More and more companies in Canada are hiring people remotely for these jobs on a part-time basis. Check our detailed guide on how to start a virtual assistant business to learn more.
29. Online Surveys
There are plenty of online survey companies that provide survey job opportunities to Canadians. You can read this article to learn how to make money from online surveys.
30. Start a Digital Marketing Business
At present, digital marketing is among the top career opportunities in Canada as the demand for professional digital marketers is huge. As more and more companies are trying their best to attract customers in the online space, the need for qualified digital marketing personnel is expected to rise. One can start a small digital marketing company IN Canada even with a small investment of $5K.
Financial Service Business Ideas in Canada
31. Investment in Startups
If you have some extra money, investing in startups is a profitable business in Canada. Canadian investors can also invest in private syndicates which are in plenty here in the country,
32. Accounting Firm
Most small businesses in Canada look for professional accounting firms for their accounting needs. If you have experience in accounting activities, it is worth considering starting an accounting firm.
33. Debt Collection Agency
A collection agency is generally hired by a lender to help in collecting the debt that remains unpaid for a longer period. Talk with the competent authority in your locality, and understand the legalities of starting a debt collection agency in Canada.
34. Forex Trading
Before starting a forex trading business, it is very important to understand how it works. In addition, it is important to choose a proper forex trading platform.
35. Bookkeeping
To start a bookkeeping business, you don’t need to have any formal qualifications. If you are good at numbers and have some years of experience, consider offering bookkeeping services to customers.
Handyman Business Ideas in Canada
36. Air Conditioning Service
Canadian winters and hot summer days require heating and air conditioning systems in their homes. Installing and maintaining warming and cooling systems creates a profitable business opportunity in Canada. Hence if you have some experience in this field, starting an HVAC business can be a lucrative venture.
37. Appliances Repair Service
There is a good demand for repairing appliances like a refrigerator, washers, dryers, stoves, ovens, dishwashers, etc in every city and town in Canada. You can get trained in appliance repair and start a small venture.
38. CCTV Camera Sales & Installation
The business of CCTV installation is getting momentum here in this part of the world. However, to start this business you need to learn the technical aspects of installing and maintaining these devices.
39. House Painting
House painting is another service that has good demand in almost all cities and towns in Canada. You can start this business by hiring some people having expertise in this trade.
Home-Based Business Ideas In Canada
Home-based business opportunities are great solutions for many individuals either as part-time or full-time income alternatives. Successful home businesses are real businesses.
To turn a home business opportunity into a success, you need to be prepared to work at it and have the appropriate knowledge and skills that you need to run any business. Find below, some of the most potentially profitable business ideas for people staying in Canada.
40. Property Management
Real estate owners and landlords in cities like Toronto, and Vancouver are always looking for dependable and professional property managers in selling their properties. As a property manager, you will act as a facilitator between real estate buyers and sellers.
41. Bed and Breakfast
A Bed and Breakfast or B&B business is all about leveraging the extra rooms of your home for people looking for short-term accommodations. The guests are provided with breakfast as a part of the service. You will plenty of B&Bs coming up in cities like Toronto, Quebec City, Calgary, Montreal, and Vancouver presently. You can start also start a bed and breakfast business if you have spare rooms in your home.
42. Graphics Design Service
Graphic design is a highly paid job online. If you have a passion for creating art, this business can give you good money from home.
43. Alteration Service
You can start an alteration service business in many different ways. Right sewing knowledge and experience are needed. You can also take some classes for different types of sewing and designs.
44. Interior Designing
Interior design is a highly paid job in Canada. However, to be a professional interior designer, you need to be certified. In addition, you have to have certain years of working experience in the job before offering services as a professional.
45. Pet-Related Business
The pet industry is growing rapidly worldwide. People are buying more pets nowadays and spending a lot of money on them to give the ultimate comfort. The attitude and sentiment behind this are the majority of the population now considers their pet to be a member of the family. In this scenario, starting a pet-related business from home is just a wise decision.
46. Sports Business
Sports industries accounted for 105,200 jobs, a 0.6% share of the total economy. Almost 90% (93,200) of the jobs in sports industries are sports jobs, but the sports industries also contribute non-sport jobs (12,000 jobs) to the economy.
The potential segments of sporting and athletics are baseball, basketball, billiards, fishing, football, golf, gymnastics, hockey, pool, racquet sports (e.g. tennis, squash, etc.), and specific equipment such as sailboards, skates (ice and roller), exercise machines, snowshoes, skis, swimming pools, and playground equipment.
47. Security Business in Canada
If you are interested in starting a security-related business in Canada, it is vital to choose your niche. There are multiple niches you can consider like home security, personal security, event security, security for automobiles, etc.
The demand for a professionally managed security company is a reality. Check this article to learn more about different security businesses you can start in Canada.
Upcoming Innovative Business Ideas in Canada
48. Blockchain Supply Chain Development Company
The business of import-export is big in Canada. Business owners often complain about the long waiting times to get clearances in getting goods transported. If you have experience in blockchain and foreign trade, developing a blockchain supply chain can be hugely profitable in the country.
49. Immigration Consultant
People from all across the world come to Canada and take citizenship. However, there is always a demand for professional immigration consultants here in this part of the world. If you have the necessary experience, you can start this business at a low cost.
50. Marijuana Regulatory Management Consultancy
Cannabis is now legal for both recreational and medicinal purposes in Canada. The legal age to purchase and consume marijuana in the country is 19. However, dispensaries and people related to the business are yet to understand and implement the exact laws associated with the trade. Hence the demand for consultants who know the law and can guide them is rising.
51. Electric Car Charging Station
Canadians are mostly eco-friendly people. More and more people here are using electric vehicles for transportation. As a result, the need for electric car charging centers is also growing. This business can bring big profits in the present future in Canada.
52. Become a Renewable Energy Consultant
The price of gas is rising in Canada. And more Canadians are looking for energy alternatives for electricity needs. If you have the necessary expertise and knowledge, there will be no dearth of customers in Canada for sure.
Best Businesses to Start in Canada
53. E-commerce Business
The e-commerce sector in Canada is booming, thanks to increasing internet penetration and a growing preference for online shopping. Unlike traditional brick-and-mortar stores, an e-commerce business can operate with significantly lower overhead costs. You can reach customers not just locally, but across Canada and internationally.
54. Real Estate Business
The real estate market in Canada is thriving, especially in major cities like Toronto, Vancouver, and Montreal. With a growing population and increasing urbanization, there’s a constant demand for residential and commercial properties. Real estate can be a lucrative investment with potential for significant returns.
55. Healthcare Services
Canada’s aging population is driving demand for healthcare services, making it a promising sector for new businesses. There’s an increasing need for healthcare services, especially for the elderly. You can explore a wide variety of niches from home healthcare to telemedicine.
56. Technology Solutions
Canada is a hub for innovation. Hence, starting a tech company can be a lucrative venture. Cities like Toronto, Vancouver, and Montreal are tech hubs with access to skilled talent. Tech businesses can scale rapidly and reach a global audience. Look for venture capital or government grants to fund your startup.
57. Food and Beverage Industry
The food and beverage industry in Canada is diverse and continually growing, providing numerous business opportunities. There’s a high demand for diverse cuisines and food products. Health-conscious and eco-friendly food products are gaining popularity.
Best Manufacturing Business Ideas in Canada
Canada is an excellent location for manufacturing businesses. It is due to its stable economy, skilled workforce, and access to international markets. Here are the promising manufacturing business ideas that can grow in Canada:
58. Food Processing
Food processing is a robust industry in Canada, given the country’s rich agricultural resources. This business involves converting raw ingredients into packaged food products. There is a high demand for processed foods, both domestically and internationally. Some of the popular niches you can explore are frozen food production, snack manufacturing, organic food processing, etc.
- Initial Investment – $100,000 to $500,000+
- Expected Profit Margin – 15% to 30%
59. Clean Energy Products Manufacturing
There is a growing emphasis on sustainability in Canada. Hence, manufacturing clean energy products such as solar panels, wind turbines, and energy-efficient appliances can be promising ventures. You can consider starting solar panel manufacturing, wind turbine components, energy-efficient home appliances, etc.
- Initial Investment – $200,000 to $1,000,000+
- Expected Profit Margin – 10% to 25%
60. Medical Devices Manufacturing
Canada’s healthcare sector is continually expanding. Thus creating a demand for innovative medical devices. Manufacturing these devices can be a lucrative business. Think of manufacturing diagnostic equipment, surgical instruments, home healthcare devices, etc.
- Initial Investment – $500,000 to $2,000,000+
- Expected Profit Margin – 20% to 35%
61. Automotive Parts Manufacturing
Canada’s automotive industry is a key sector. Hence manufacturing automotive parts can be profitable. This includes components for both conventional and electric vehicles. Some of the popular niches in this sector you can consider are engine components, electrical systems for EVs, and safety systems.
- Initial Investment – $150,000 to $700,000
- Expected Profit Margin – 10% to 20%
62. Textiles and Apparel Manufacturing
There is a rising demand for sustainable and ethically produced clothing in Canada. You can utilize high-quality canadian craftsmanship and tap the domestic demand as well as export to fashion-forward markets.
- Initial Investment – $50,000 to $300,000
- Expected Profit Margin – 12% to 25%
Frequently Asked Questions
Is Canada a good Place to Start a New Business?
Canada’s regulatory framework is transparent and straightforward. Hence, it makes easier for businesses to comply with legal requirements. The country also boasts excellent infrastructure. It includes transportation, communication, and utilities, supports business operations.
Canada’s strategic location provides easy access to both North American and international markets. In addition, trade agreements like the Canada-United States-Mexico Agreement (CUSMA) and Comprehensive Economic and Trade Agreement (CETA) with the European Union make it easier for businesses to expand their reach.
As of December 2022, according to of the official site of the Government of Canada, there were 1.22 million businesses operating in Canada. Out of these, 1.19 million (97.8%) were small businesses, 23,395 (1.9%) were medium-sized businesses, and 3,128 (0.3%) were large-scale businesses.
How to Start a Small Business in Canada?
You need to follow some basic steps to start a business in Canada. Some of the important steps are listed below:
- Choose a Business Idea
- Create a Business Plan
- Select a Name for your Business
- Register Business
- Get Licenses and Permits
- Apply for a CRA Business Number
- Open a Business Bank Account
- Buy Business Insurance, if needed
- Arrange Funds
- Have a Marketing Plan
What are the Best Places to Start a Business in Canada?
Location plays a vital role in the overall success of a business. Some of the best cities in Canada that provide good support for startups in Canada are listed below:
- Toronto
- Quebec City
- Calgary
- Montreal
- Vancouver
- Edmonton
- Waterloo
- Ottawa
- Saskatoon
- St. John’s
- Kelowna
- Kingston
How Much Does it Cost to Start a Business in Canada?
The approximate cost of starting a legally compliant small business in Canada will be around $5000 to $10000. However, if you are innovative, there are a number of businesses that can be started with almost no money here in this country.
Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.
