Most Profitable Small Businesses in Canada

Most Profitable Small Businesses in Canada

More Canadians are seeking small and medium businesses rather than the traditional 8-to-5 jobs. For entrepreneurs, knowing the most profitable small businesses in Canada helps them know where to invest their capital.

 Operating a small business in Canada would be ideal because it is more flexible, profitable, and has a better structure. It’s important to note that not all small businesses in Canada are profitable, which is why one should be careful before investing in any business.

This guide will discuss the most profitable small businesses to start in Canada, the requirements for opening a business in the country, and important tips that can help a small business grow in Canada.
The 30 most profitable businesses in Canada

When considering a small business to open in Canada, here are the most profitable businesses to start in Canada:

Freelancing

Freelancing is one of the most profitable small businesses you can start in Canada. With the rise of many online businesses, many customers are seeking a capable copywriter to help them market their products. Copywriting involves several services, which include:

  • Email marketing
  • Landing page Post
  • Blog post
  • Advertising copy

You can establish your rate and offer several incentives to your customers. In Canada, freelance copywriters earn around $30 to $130 per hour.

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Photography business

If you are good at taking clear pictures and images, then delving into this business is recommended. All you need to succeed is good photography equipment and to attend workshops for professional photographers.

Ensure you apply for business insurance for protection against unforeseen issues. In Canada, a professional photographer earns around $150 to $250 an hour.

Start a web design business

If you have excellent web design skills and experience, then you can make money from operating a web development business. This is one of the most in-demand skills required in Canada.

Pick a specific client and establish a niche you are good at. As an experienced web designer, you can make an average of $50,450 to $120,800 per project.

Virtual assistant

Many businesses in Canada require many virtual assistants to help them handle some of their administrative roles. This is one of the easiest and most profitable small businesses to start in Canada.

With as little as $5,000, you can start this business. The most important things you need are a good computer and a stable Internet connection.

Start a fitness training business

If you have an athletic build and skills, you should try opening a fitness training business. The fitness training industry in Canada was worth about $400,000 million as of 2022. However, to become a fitness trainer in some Canadian provinces, you might need some certifications. The earnings of a fitness trainer in Canada are about $31.75 per hour.

Repair appliance business

One of the top businesses you can start in Canada is a repair business. Before you can start this business, you might need to start an apprenticeship or complete a repair program. In certain provinces in Canada, you might be asked for a trade certification from a top regulatory body.

Open a dog grooming business

In recent years, we witnessed an increase in the number of Canadians who own dogs. Buying, grooming, and selling dogs can be very profitable. To be a renowned dog groomer, try to get certified by the National Groomer Association of Canada, and attend grooming courses to learn about pet grooming techniques.

Daycare services

The cost of child care in Canada has been increasing over the years. If you can get a good space, opening a child daycare business can be a good opportunity. A small daycare business in Canada can start with as little as $10,000. You should have the required license and certifications to operate in any province.

Open a security outfit

Security companies are one of the most profitable small businesses in Canada. Almost every home and company requires one form of security or another. Despite the efforts of the Canadian Police, there is still a need for private guards.

 If you are interested in this business, apply for a security guard business permit and register with your province. You are expected to provide your business and personal data to the authorities. Also, your guards must have licenses and complete training tests.

Clothing business

Another lucrative small business in Canada is selling new and second-hand apparel. Experts in the industry expect it to grow by 150% and reach $90 billion by 2026.

You can take advantage of this information and start this business. Your profit margin from selling clothes can be between 6% and 25%. On average, a clothing reseller in Canada will make $500 weekly.

Dropshipping business

Dropshipping is another lucrative but low-cost business you can start in Canada. This business occurs when a third party stores and ships goods to buyers.

Many dropshipping suppliers operate in Canada, such as DropCommerce and Pocket. You can create your online store by using platforms like Shopify. If you take the dropshipping route, you can be looking at around $95,000 in your first year.

Open a cleaning business

Canadians now demand more cleaning experts and cleaners. Before you start this business, apply for cleaning licenses, secure an insurance firm, and buy cleaning equipment.

You will need to draft a pricing guide for your services based on what you want to clean. A cleaning service can make from $200 to $400 per job.

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Tire business

Opening a tire store remains one of the most lucrative businesses in Canada. This is a business that entails the retail sale of different types of tires for all vehicles. The Canadian Tire Corporation is the largest tire retail firm in the country. This type of firm will generate revenue of about $17.2 billion in 2022.

Although this business needs a huge capital investment, you have the option to begin on a smaller scale within your local area. Many top Canadian banks are ready to invest in this business, as long as the entrepreneur has a good business plan. You can make many sales in type if you choose locations such as:

  • Vancouver
  • Ontario
  • Toronto
  • Waterloo
  • Montreal

It’s best to carry out a detailed personal survey and market needs analysis before starting this business in Canada.

Spare parts business

The automobile industry is one of the biggest in Canada. That’s why starting a spare part business in the country is very lucrative. In the spare parts business, you will be selling different types of automobile parts.

 There are thousands of firms and individuals involved in this multi-million dollar business in Canada. If you want this business to succeed, you need to be strategic and employ various marketing and sales tools to reach your customers.

Dairy farm business

Canada’s dairy farmers are some of the most successful entrepreneurs in the country. The dairy business is highly lucrative and attracts grants from the Canadian government.

This business involves breeding cattle for milk promotion. The dairy industry’s revenue currently stands at $5.12 billion and is expected to grow by 2% in 2024.

Some examples of successful dairy farms in Canada are:

  • London Dairy Farms (located in Toronto)
  • Brunswick Dairy Firms (Alberta)
  • Lactalis Canada (Ontario, Toronto)

Hospitality business

The hospitality industry in Canada is very broad, and it includes the hotel business, resorts, and bar business, amongst others. While this industry suffered during the COVID-19 pandemic, it has rebounded and is now one of the most lucrative businesses in Canada.

 The growth of this business is driven by the excellent economic environment in Canada, which has encouraged many investments in the industry. With the increase in travel demand, this industry will continue to remain profitable.

There are several loans and grants available for people who want to start a hospitality business in Canada.

Sell handcrafted products

If you are good with your hands and can produce well-crafted goods, then start selling them in Canada. To minimize cost, you can get your handcrafted materials from your supplier in bulk.

You can sell your handicrafts on marketplaces such as eBay, Shopify, and Etsy. If you have the means, you can open a platform where you will display your crafts for your customers.

Driving school

Starting a driving school in Canada is another way to make money. This business opportunity is among the most lucrative small ventures in Canada, accessible to anyone. Before embarking on this venture, it is essential to acquire the necessary qualifications and become a licensed driving instructor in Canada.

It is important to note that the specific requirements for this type of business may vary depending on your location. In Alberta, for instance, you must pass through a driver training school and have a license.

If you are in British Columbia, you will need to be a licensed driving instructor and have a driving training permit. In whichever province you wish to start a driving business, you will make an average of $6,000 monthly.

Set up a coffee stand

The hot coffee business in Canada is valued at $25 billion. This line of work is common with immigrants and those who want to start a low-cost business. All you need is a stand, coffee mixing equipment, and cups.

Restaurant business

One of the most profitable businesses in Canada is the restaurant business. Since everybody eats and drinks, this business will continue to thrive for life. The strong economy of Canada has ensured steady growth in this business.

 In 2020, the Canadian restaurant industry will generate about $95.7 billion in revenue, which makes it one of the biggest contributions to the country’s economy. Although it also suffered from the COViD-19 pandemic, the Canadian government offered several forms of assistance, such as salary subsidies, to support all businesses.

Advertising business

Another lucrative business Canadians can start in Canada, is an advertising company. An advertising business provides marketing services, which include:

  • Digital Marketing
  • Public Relations
  • Financial services
  • Print services
  • Brand promotions

If your interests are business management, marketing, and accounting, this is a profitable business to start in Canada.

Salon business

Everyone changes their hairstyle regularly to look good and be appealing to others. With millions of Canadian citizens, a salon business will always be profitable. You could either learn how to make and cut hair or employ skilled individuals who know how to do it.

The salon business could either be a male barbershop, a female beauty salon, or a unisex salon. Whichever you choose, you will make your money in little or no time. However, you might have to collect some licenses before you can operate this business, depending on the province in which you reside.

CCTV camera sales

Another lucrative business that thrives in Canada is the sale of CCTV cameras. With various companies springing up in several provinces in Canada, CCTV cameras are needed for security reasons.

You will also get best business loans from Canadian lenders when you start this business. This business isn’t just about the sale of CCTV cameras; you could also make money from the installation of these cameras.

Graphics designing

For Canadians who want profitable small businesses that offer remote opportunities, graphic design is an ideal choice. This type of business doesn’t require renting a location because all you need is an online presence. If you don’t have a skill, you can learn graphic design by using the top online platforms for free.

You must be an expert in this craft, have a portfolio with excellent samples, and then use social media to market your services. If you know your craft well, you can make thousands of dollars per month from home.

Interior designing

An interior design business involves decorating the floors and walls of a building. Since having an appealing and aesthetically pleasing home interior is what every Canadian wants, there is high demand for this business.

 It doesn’t require much capital to start; all you need are good referrals from your clients. Interior designing is one of the easiest most profitable small businesses to start in Canada.

Open a pet supply store

The number of pets in Canada has increased to nearly 9 million in recent years. This is an opportunity for you to make money. Talk to your province’s mayor before starting this business.

In 2020, Canadians will spend over $7 billion on pet food and veterinary care. You can make money from this type of business easily.

Provide book-keeping services

You can decide to open your own booking business in Canada. This can be a profitable business for everyone who has the skills and time for it. A bookkeeper in Canada makes an hourly rate of $30, which varies based on location.

Event planning

You could also consider starting an event planning company in the country. Many people have the money but aren’t aware of how to organize a successful event.

If you are a great event planner, you will be making money weekly. There are many social functions you can help Canadians organize, and you will be heavily compensated. If you are good at what you do, you will get regular contracts from your clients.

Agriculture

Agriculture is another profitable business you can start in Canada. There are many fertile lands that you can take advantage of to produce farm products.

The Canadian government is offering farmers several loan options and financial services to help them succeed. If agriculture is your interest, then you can make a lot of money farming in Canada.

Real estate business

Realtors and house agents are making thousands of dollars in the real estate industry in Canada. Many people are seeking houses and renting spaces all over the country.

All you need to do is connect home seekers and owners, take your percentage, and you are good to go. You can also buy and sell houses if you have the funds. You can’t run a real estate business at a loss in this country.

10 tips to run a profitable small business in Canada

Becoming a business owner in Canada requires a lot of hard work, risk, and capital. If you want your business to succeed in Canada, here are some valuable tips you should have at the back of your mind:

Networking

To make it in any small business in Canada, you need to learn how to network properly. Have a close relationship with entrepreneurs in your line of work and officials at your province’s chamber of commerce.

Exploring best practices is crucial for ensuring the success of your business. You can leverage various professional networks on LinkedIn and industry associations to access valuable resources and guidance.

Know your clients and competitors

When starting a small business in Canada, it’s crucial to understand your local market. Know your customer base in your location and their buying habits.

Don’t also forget to keep an eye on your competitors, especially the successful ones, and learn their marketing strategies. Check their prices, branding techniques, and strategies.

Be passionate

While the endgame for most businesses is making a profit, you should also be passionate about your business. There are times when your business might face problems, but when you are passionate about it, you will survive such problems.

Try to find innovative solutions that can help you build your business and make it attractive to your customers.

Know the regulations for small businesses in Canada.

To be successful as an entrepreneur in Canada, you should familiarize yourself with local regulations and laws. Aside from taxes, learn about all the required documents that you must get. Ensure all your taxes are paid and that there is a detailed record of all payments.

Keep an eye on your finances

Ensure you keep a close watch on all the finances of your business. This includes sales, expenses, profits, and working capital. As someone who wants to start a lucrative business in Canada, ensure all overhead costs are kept low.

When the business starts to grow, you can then start making additional investments. One of the best sources of financial support in Canada are getting personal loans from reputable lenders. Ensure your credit score is positive to improve your chances of accessing loans.

Use digital marketing

Social media is one of the best tools to make your business successful in Canada. Being visible online can help increase brand awareness and generate leads, which will lead to more profits.

Twitter, Instagram, YouTube, Facebook, and TikTok are some of the social media channels you should leverage to get customers.

Understand your value

When making decisions about the prices of goods and services, ensure you account for your time. Many new entrepreneurs in Canada use a cost-plus pricing strategy that factors only raw costs, overheads, business expenses, and marginal profits.

Ensure you add time invested and expertise you bring to the business to succeed in the long run.

Invest in learning

Being a successful small business owner in Canada isn’t easy. You will need to constantly learn and relearn to catch up with your competitors. Invest in online business and marketing courses on Udemy and Coursera. Look for courses that include sales, marketing, and communication.

Understand your limitations

No man can be an expert in everything, so it’s always advisable to know your limits. Avoid being a jack of all trades and a master of none. Build on your strengths and ask for help with your limitations.

To enhance the success of your business, it is advantageous to hire professionals who complement your skills and expertise. You could also seek a mentor who has entrepreneurial skills and can show you how he runs his business in Canada.

Take feedback seriously

Customers’ feedback should be taken seriously to be successful. These complaints and criticisms are invaluable resources for knowing what you need to improve.

Positive feedback encourages you and pushes you to do more. If possible, always seek constructive feedback from your clients and ask where you need to improve.

Final thoughts on the most profitable small businesses in Canada

This guide has everything you need to start some of the easiest and most profitable small businesses in Canada. We explained in detail the most profitable businesses an entrepreneur can start in Canada. Then, we share some important tips that can make a business successful in Canada.

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FAQs about the most profitable small businesses in Canada

Which is the most profitable business in Canada?

The most profitable business in Canada is the spare parts business. This business has generated millions of dollars in the Canadian economy and is very lucrative.

What business is booming in Canada?

The businesses that are booming in Canada include digital marketing businesses, tire businesses, and agriculture businesses. They have contributed the most funds to the GDP of Canada.

Where is the best place to start a business in Canada?

The best place to start a business in Canada is Toronto. Notable mentions include Calgary, Alberta, British Columbia, Waterloo, and Edmonton.

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July 17, 2023
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