Your Path to Success: Best Business to Start in Ontario
Thinking of starting a business in Ontario but not sure where to begin? You’re not alone. Ontario’s diverse economy offers endless opportunities, but finding the right venture can be both exciting and challenging.
Small businesses make up 97.7% of all businesses in the province, playing a key role in its economy. With so many options, which path is right for you? Whether you’re a seasoned entrepreneur or starting your first business, our guide provides practical advice to help you decide.
1. Understand the Ontario Market
To start a successful business in Ontario, you need to grasp the local market dynamics. Ontario boasts a diverse economy with various thriving industries. Here are some key steps to help you navigate the Ontario market and position your business for success:
- Conduct Market Research: Understand your target audience and competition to identify gaps and opportunities in the market. This will provide valuable insights for developing your products or services.
- Pay Attention to Regional Differences: Keep in mind that the business landscape in Toronto may differ from that of smaller cities or rural areas. Consider the province’s multicultural population when tailoring your offerings, as it can open up unique business opportunities.
- Stay Informed about Regulations and Tax Obligations: Familiarize yourself with Ontario’s business regulations and tax obligations. This understanding will help you operate smoothly and avoid potential issues down the road.
- Network with Local Business Owners: Build connections with local business owners and join industry associations. These relationships can provide valuable insights, support, and potential partnerships.
- Keep Up with Emerging Trends: Stay abreast of emerging trends and technologies in your chosen industry. Ontario’s government often supports innovation and sustainable business practices, so being aware of these developments can give you a competitive edge.
By thoroughly understanding the Ontario market and following these steps, you’ll be better equipped to launch and grow your business successfully.
2. Major Industries in Ontario
Ontario’s economy thrives on diverse sectors that drive innovation and growth. These industries offer numerous opportunities for entrepreneurs and businesses looking to establish themselves in the province.
Life Sciences
Ontario’s life sciences sector is an undeniable powerhouse of innovation and research. Within this sector, you’ll discover a robust ecosystem comprising pharmaceutical companies, medical device manufacturers, and biotechnology firms.
The region of Toronto and its surroundings serve as a major hub, hosting world-class research institutions and renowned hospitals. This unique combination creates an ideal environment for both startups and established companies to thrive.
Key areas of focus within the life sciences sector include drug discovery and development, medical technology, digital health solutions, and precision medicine.
Ontario’s supportive policies, coupled with its access to a highly skilled talent pool, make it an attractive destination for life sciences businesses aiming to make a significant impact in the industry.
Advanced Manufacturing
You’ll find Ontario at the forefront of advanced manufacturing, blending traditional industries with cutting-edge technologies. The sector employs hundreds of thousands of skilled workers across the province.
Key subsectors include:
- Automotive manufacturing
- Aerospace
- Robotics and automation
- 3D printing and additive manufacturing
Ontario’s strategic location and access to North American markets make it an ideal base for manufacturing operations. The province’s commitment to innovation and sustainability drives growth in this sector.
Technology and Innovation Sector
Ontario’s tech scene is booming, with Toronto emerging as a global hub. The province hosts a wide range of companies, from startups to multinational corporations, driving innovation and developing cutting-edge technologies. Key areas of focus include:
- Artificial Intelligence and Machine Learning: Ontario’s AI and machine learning community is revolutionizing industries and pushing boundaries.
- Fintech: The fintech sector is transforming how we manage money, conduct transactions, and access financial services, with startups and established institutions leading the charge.
- Cybersecurity: With rising digital threats, Ontario has become a leader in advanced cybersecurity solutions, protecting data, and safeguarding digital assets.
- Cleantech: Ontario’s focus on sustainability has fueled a thriving cleantech sector, creating technologies to address environmental challenges and advance a greener future.

With top talent, world-class universities, and a supportive ecosystem, Ontario is a magnet for tech entrepreneurs and investors. Its collaborative culture and entrepreneurial spirit are driving its growth as a global leader in innovation and tech solutions.
Agri-processing
Ontario’s agri-processing sector leverages the province’s rich agricultural resources. You’ll find opportunities in food and beverage manufacturing, value-added processing, and innovative food technologies.
Key subsectors include:
- Dairy products
- Meat processing
- Fruit and vegetable preserving
- Bakery and confectionery
The province’s strategic location and access to markets make it an ideal base for agri-processing businesses. Opportunities for innovation in sustainable and plant-based food products are growing rapidly.
Mining and Natural Resources
Ontario’s mining sector is a key part of the province’s economy, offering abundant mineral resources and opportunities for businesses in mineral extraction and processing. Key minerals include gold, nickel, copper, and platinum group metals.
Ontario’s focus on sustainable mining practices and technological innovation strengthens prospects for growth while balancing economic development with environmental preservation.
Beyond mineral extraction, the mining equipment and services subsectors are essential to the industry’s success. Ontario has a strong ecosystem of mining technology and expertise, offering cutting-edge equipment, innovative solutions, and services to support operations and growth.
With its rich resources, commitment to sustainability, and focus on innovation, Ontario’s mining sector offers exciting opportunities for businesses to thrive and make an impact.
Forestry and Wood Products
Ontario’s vast forests support a thriving forestry and wood products industry. You’ll find opportunities in sustainable forest management, wood processing, and innovative wood-based products.
Key subsectors include:
- Lumber and wood products
- Pulp and paper
- Engineered wood products
- Bioproducts and bioenergy
The province’s commitment to sustainable forestry practices and innovation in wood-based materials creates new business opportunities.
Tourism and Hospitality
Ontario’s diverse landscapes and vibrant cities make it a prime destination for tourism. The province offers a plethora of opportunities across various segments of the tourism and hospitality industry, catering to the diverse interests of travelers.
Key areas that present exciting prospects include eco-tourism and outdoor adventures, cultural and heritage tourism, culinary tourism, and sports and event tourism.
Ontario has made significant investments in tourism infrastructure and marketing, creating a supportive environment for businesses in this sector to thrive. As the demand for sustainable and experiential tourism continues to grow rapidly, there are abundant opportunities for entrepreneurs to enter this dynamic industry.
By capitalizing on Ontario’s natural beauty, cultural heritage, and culinary delights, businesses can create unique and memorable experiences for tourists, fostering growth and contributing to the province’s thriving tourism sector.
3. Business ideas to start in Ontario
Ontario offers diverse opportunities for entrepreneurs looking to launch innovative and profitable ventures. The province’s robust economy and supportive business environment make it an ideal place for startups across various sectors.
Biotech Startups
Biotech is booming in Ontario, with the province hosting five companies on the Global Cleantech Top 100 list. You can tap into this growing field by starting a biotech company focused on medical research, pharmaceutical development, or sustainable biotechnology solutions.
Consider collaborating with Ontario’s world-class universities and research institutions to accelerate your innovations. Focus on areas like personalized medicine, gene therapy, or bioengineered materials to attract investors and government grants.
Precision Machining
Ontario’s manufacturing sector is evolving, and precision machining is at the forefront of this transformation. You can start a business offering high-precision machining services for industries like aerospace, automotive, and medical devices.
Invest in advanced CNC machines and train your staff in the latest techniques. Emphasize quality control and quick turnaround times to stand out in the market. Consider specializing in niche areas like micro-machining or exotic materials to differentiate your services.
Custom Fabrication
Custom fabrication services are in high demand across Ontario’s diverse industries. You can start a business creating bespoke metal, plastic, or composite parts for clients in sectors like construction, manufacturing, and product design.
Offer a range of services from prototyping to small-batch production. Invest in versatile equipment like 3D printers, laser cutters, and welding machines. Build relationships with local businesses and designers to secure a steady stream of projects.
Robotics Integration
As Ontario’s manufacturing sector embraces automation, there’s a growing need for robotics integration services. You can start a business helping companies implement robotic solutions to improve efficiency and productivity.
Develop expertise in various robotic systems and their applications. Offer services like system design, installation, programming, and maintenance. Focus on industries like automotive, food processing, and logistics where robotics can have a significant impact.
AI and Machine Learning Consultancy
Ontario’s IT sector generates about $48.3 billion of GDP annually, making it ripe for AI and machine learning consultancies. You can start a business helping companies leverage these technologies to optimize their operations and decision-making processes.
Offer services like AI strategy development, machine learning model creation, and data analytics. Stay updated on the latest AI trends and tools to provide cutting-edge solutions. Target industries like finance, healthcare, and retail that can benefit significantly from AI applications.
Organic Food Processing
With growing consumer demand for organic and locally sourced foods, starting an organic food processing business in Ontario can be lucrative. You can create a range of products from organic ingredients sourced from local farms.
Focus on developing unique, high-quality products like organic snacks, beverages, or condiments. Build relationships with local organic farmers to ensure a steady supply of ingredients. Emphasize sustainable packaging and production methods to appeal to environmentally conscious consumers.
Cold Storage Facility
Ontario’s food and agriculture sector can benefit from more cold storage facilities. You can start a business providing temperature-controlled storage solutions for perishable goods like fruits, vegetables, and dairy products.
Invest in energy-efficient refrigeration systems and offer value-added services like inventory management and distribution. Consider specializing in specific product categories or temperature ranges to differentiate your facility. Target food producers, distributors, and retailers as potential clients.
Custom Woodworking
Ontario’s rich forestry resources make custom woodworking an attractive business opportunity. You can start a business creating bespoke furniture, cabinetry, or architectural elements for residential and commercial clients.
Develop your craftsmanship skills and invest in quality woodworking tools. Offer a range of styles from traditional to contemporary to cater to diverse tastes. Consider specializing in sustainable or reclaimed wood products to appeal to eco-conscious consumers.
Woodcraft and Artisanal Products
Building on Ontario’s woodworking tradition, you can start a business creating unique woodcraft and artisanal products. Focus on handmade items like wooden toys, kitchenware, or decorative objects.
Develop a distinctive style or product line to stand out in the market. Sell your products through local craft fairs, online marketplaces, and boutique stores. Consider offering woodworking workshops to diversify your income streams and build a community around your brand.
Eco-Tourism Experiences
Ontario’s natural beauty provides ample opportunities for eco-tourism businesses. You can start a company offering sustainable and educational outdoor experiences that showcase the province’s diverse ecosystems.
Design guided tours, wildlife-watching excursions, or wilderness retreats that minimize environmental impact. Collaborate with local conservation groups and Indigenous communities to create authentic and respectful experiences. Emphasize sustainability practices in your operations to appeal to environmentally conscious travelers.
4. Best Business Ideas in Toronto
Explore Toronto’s Culinary Delights
Embark on a culinary adventure through Toronto’s lively neighborhoods, where flavors from around the world come to life. Indulge in authentic dim sum in bustling Chinatown or savor irresistible shawarmas in the heart of Little Arabia. Elevate your dining experience by blending it with Toronto’s artistic spirit—host pop-up restaurants in art galleries or organize food festivals that showcase the city’s rich cultural diversity.
Farm-to-Table Restaurant
Open a farm-to-table restaurant in Toronto that focuses on locally sourced, organic ingredients, offering a menu that caters to health-conscious diners and supports sustainable agriculture.
Culinary Classes and Workshops
Launch a series of cooking classes and workshops in Toronto, where food enthusiasts can learn new culinary skills and techniques from top local chefs, enhancing their gastronomic knowledge.
Trendy Rooftop Bar or Restaurant
Invest in Toronto’s booming real estate market by opening a trendy rooftop bar or restaurant in a newly developed area, offering stunning city views and a unique dining experience.
Food Lovers App
Develop an app for Toronto food lovers that offers exclusive deals, delivery options, and virtual cooking classes, connecting them with their favorite local eateries and culinary experts.
Themed Dining Events
Create themed dining events in Toronto that transport guests to different eras or countries, combining immersive decor, music, and cuisine for a truly memorable evening. Collaborate with local artists, performers, and chefs to elevate the experience.
Bike-Friendly Café
Open a bike-friendly café in Toronto that offers not only delicious snacks and beverages but also on-site bicycle repair and maintenance services, catering to the city’s active cycling community. Let your culinary creativity flourish in Toronto’s thriving food scene, embracing the city’s diverse flavors and creating unique dining experiences that leave a lasting impression.

5. Steps to Start a Business in Ontario
Starting a business in Ontario involves careful planning, making important decisions, and completing key steps. You’ll need to develop your idea, choose a structure, secure a location, create a marketing strategy, and manage risks.
- Crafting a Business Plan: Your business plan is the foundation of your venture. Follow these steps to create a comprehensive and effective business plan:
- Define Your Business Concept and Goals: Clearly outline your business idea and objectives.
- Research Your Target Market: Conduct market research to understand your target audience, their needs, preferences, and buying habits. Analyze your competition to identify your unique selling point.
- Outline Your Products or Services: Describe your offerings, focusing on their features, benefits, and how they meet customer needs.
- Include Financial Projections: Prepare financial projections for the first 3 years, covering startup costs, revenues, and cash flow. Consult a financial professional for accuracy.
- Incorporate Your Marketing Strategy: Describe your marketing plan, including your target audience, channels, and tactics. Highlight your unique selling proposition and market position.
- Include Operational Details: Explain key operations, such as supply chain management, production, or service delivery, and quality control.
- Choose Your Business Structure: Choose from Ontario’s four main business structures: Sole Proprietorship, Partnership, Corporation, or Co-operative. Research legal and tax implications, then register your business name via the Ontario Business Registry.
- Consider Location and Facilities: Pick a location convenient for customers and suppliers, ensure it meets zoning rules, and secure necessary permits. For home-based businesses, comply with bylaws and ensure facilities are suitable.
- Develop Your Brand Identity: Build a strong brand with a professional logo and consistent visuals across all materials.
- Implement Risk Management Strategies: Identify risks, secure insurance, add cybersecurity measures, and create contingency plans. Stay updated on regulations.
A well-written business plan guides decisions, attracts investors, and sets a path for success. Regularly review and update it as your business grows.
Frequently Asked Questions
Ontario offers diverse opportunities for aspiring entrepreneurs. From home-based ventures to trendy sectors and low-investment options, the province’s business landscape caters to various interests and budgets.
Resources for the Best Business in Ontario
Government Resources:
- Ontario Business Registry
- Small Business Centres
- Canada Business App
- Tax Credit Programs
- Economic Development
- Employment Ontario
Industry Resources:
- Innovation Support
- Manufacturing Hub
- Agri-Food Guide
- Mining Insights
- Tourism Ontario
- Tech Fund
- Chamber Network
Other Resources:
About the author
Maurice