Dream Big Start Small: 18 Best Small Business Ideas in Canada

If you’re considering starting a small business in Canada, you’re in good company. According to Statistics Canada, as of December 2022, there were 1.22 million employer businesses in Canada. Of these, 1.19 million (97.8%) were small businesses. These small businesses employed 5.7 million individuals in Canada, or 46.8% of the total private labour force., and produced over 40.8% of the total value of Canadian exports.

One of the reasons why Canada has such a vibrant small business landscape is that the Canadian government offers a variety of programs and incentives to help entrepreneurs get started. For example, the Canada Small Business Financing Program provides loans of up to $1 million to help small businesses purchase equipment, real estate, and other assets. The Canada Revenue Agency also offers a number of tax credits and deductions to small business owners.

If you’re thinking about starting a small business, it’s important to do your research and understand the unique challenges and opportunities that come with being an entrepreneur in this country. However, with the right idea, hard work, and a little bit of luck, you could be on your way to building a successful and profitable small business in Canada.

Factors to Consider Before Starting a Small Business

Before you dive into starting a small business, it’s important to consider a few factors that can help you succeed. Here are some key things to keep in mind:

Market Research

Before starting your small business, it’s essential to do market research. This will help you understand your target audience, competitors, and industry trends. You can conduct market research by analyzing industry reports and trends, customer surveys, and online reviews. This will help you identify gaps in the market and opportunities for growth.

Business Plan

A solid business plan is crucial for any small business. It outlines your goals, strategies, and financial projections. A well-written business plan can help you secure funding, attract investors, and stay focused on your objectives.

Legal Requirements

Starting a small business in Canada requires compliance with various legal requirements. You’ll need to register your business, obtain necessary permits and licenses, and pay taxes. It’s important to consult with a lawyer or accountant to ensure you’re meeting all legal obligations.

Financing

Starting a small business requires capital. You’ll need to determine how much money you need to get started and where you’ll get it. Options include personal savings, loans, grants, and crowdfunding. It’s important to have a solid financial plan in place to ensure you have the resources you need to succeed.

Best Small Business Ideas in Canada

With an understanding of the small business landscape and the key considerations before embarking on an entrepreneurial venture, we can now explore some promising business ideas worth considering.

1. E-commerce Ventures

With the rise of online shopping, there are plenty of opportunities to start an online store and sell products to customers all over Canada and beyond. Here are two e-commerce business ideas you might consider:

Online Retail Stores

Online retail stores are a popular type of e-commerce business. With an online retail store, you can sell a variety of products, from clothing and accessories to electronics and home goods. One of the benefits of starting an online retail store is that you can reach customers all over the country, and even internationally. This gives you the potential to grow your business quickly and reach a large audience.

When starting an online retail store, it’s important to choose a niche or product category that you’re passionate about. This will help you stay motivated and interested in your business as you work to grow it. There are many e-commerce platforms available that can help you get started, such as Shopify, WooCommerce, and BigCommerce.

Read more: How To Start An E-Commerce Business In Canada

Dropshipping Businesses

Another e-commerce business idea is to start a dropshipping business. With a dropshipping business, you don’t need to hold inventory or handle shipping yourself. Instead, you work with a supplier who will ship products directly to your customers. This can be a great option for those who want to start an e-commerce business but don’t have a lot of capital to invest upfront.

To start a dropshipping business, you’ll need to find a reliable supplier and set up a website to sell your products. You’ll also need to market your business and build a customer base. One of the benefits of a dropshipping business is that you can start small and scale up as your business grows.

2. Sustainable and Green Businesses

If you are passionate about the environment and want to make a positive impact, starting a sustainable and green business could be the perfect option for you. These businesses focus on reducing waste, using eco-friendly materials, and providing sustainable services to customers. Here are some eco-friendly small business ideas that you might want to consider.

Eco-Friendly Products

One of the best ways to start a sustainable business is by creating eco-friendly products. You can use recycled materials, natural ingredients, or sustainable production methods to reduce your environmental impact. Here are some ideas for eco-friendly products you can sell:

• Reusable bags and containers: With the increasing awareness of the negative impact of single-use plastics, reusable bags and containers are in high demand. In fact, the global Reusable Shopping Bag market is expected to expand at a CAGR of 8.38% reaching USD 13610.95 million by 2028. You can create your own designs and sell them online or in local stores.
• Organic clothing: Many people are looking for sustainable and ethical fashion alternatives. You can create your own line of clothing made from organic cotton, hemp, or bamboo.
• Eco-friendly cleaning products: Traditional cleaning products contain harmful chemicals that can be dangerous for the environment and human health. You can create your own line of natural cleaning products using ingredients such as vinegar, baking soda, and essential oils.

Sustainable Services

Another way to start a sustainable business is by offering eco-friendly services. These services can help customers reduce their environmental impact and live a more sustainable lifestyle. Here are some ideas for sustainable services you can offer:

• Green consulting: You can help businesses or individuals implement sustainable practices by offering green consulting services. This can include energy auditing, waste reduction strategies, and sustainable product recommendations.
• Composting services: Composting is an easy way to reduce waste and create nutrient-rich soil for gardening. You can offer composting services to households, businesses, and community gardens. The Compost Council of Canada provides great resources for this sector.
• Green pest control: Traditional pest control methods often involve harmful chemicals that can be dangerous for the environment and human health. You can offer eco-friendly pest control services using natural methods such as essential oils, diatomaceous earth, and beneficial insects.

3. Health and Wellness Industry

If you’re passionate about health and wellness, starting a small business in this industry can be a great way to turn your passion into a profitable venture. Here are a few ideas for starting a health and wellness business in Canada:

Personal Training

With the rise of health and fitness awareness, personal training is a great business idea for fitness enthusiasts. You can offer one-on-one training sessions or group classes to clients who want to improve their physical fitness. You can also specialize in specific types of training, such as weightlifting, yoga, or cardio.

To start a personal training business, you will need to have a personal trainer certification. You can get certified through organizations like the Canadian Fitness Professionals or Canadian Society for Exercise Physiology. You’ll also need to invest in equipment like weights, mats, and resistance bands.

Nutrition Consulting

Nutrition consulting is another great business idea for people who are passionate about healthy eating and want to help others improve their diets. As a nutrition consultant, you can offer one-on-one consultations to clients who want to lose weight, manage chronic conditions, or improve their overall health.

Wellness Coaching

Wellness coaching is a growing industry that focuses on helping people improve their overall well-being. As a wellness coach, you can offer one-on-one coaching sessions to clients who want to improve their physical, mental, and emotional health. The Canadian Health Coach Alliance provides resources regarding this industry.

4. Local Tourism and Experiences

If you’re looking for a small business idea that can thrive in Canada, local tourism and experiences should be at the top of your list. Canada is home to some of the most beautiful natural landscapes in the world, making it a popular destination for tourists looking for adventure and cultural experiences.

Adventure Tourism

Adventure tourism is a growing industry in Canada, with visitors from all over the world coming to experience the country’s rugged wilderness. From hiking and camping in the Rocky Mountains to kayaking in the Great Lakes, there are plenty of opportunities for adventure tourism entrepreneurs to create unique experiences for their customers.

One example of a successful adventure tourism business is Banff Adventures. This company offers a variety of outdoor activities, including hiking, rafting, and skiing, and has been in business for over 20 years.

Cultural Tours

Canada is also rich in cultural experiences, with a diverse population and a long history of indigenous peoples. Cultural tours can include anything from visiting museums and art galleries to attending festivals and cultural events.

When starting a local tourism and experiences business, it’s important to research your target market and create a unique offering that sets you apart from competitors. Consider partnering with other local businesses to create packages that offer a variety of experiences, and use social media and online marketing to reach potential customers.

5. Creative Businesses

If you have a creative streak, there are several businesses you can start in Canada. Here are some creative business ideas that can help you turn your passion into profit:

Handmade Goods

If you enjoy making things by hand, you can turn your hobby into a business by selling your handmade goods. Whether you specialize in jewellery, clothing, or home decor, there is a market for unique, handmade items. You can sell your products online, at craft shows, or in local boutiques.

Art Workshops

If you have a talent for painting, drawing, or other forms of art, you can share your skills by teaching art workshops. You can host classes in your home or rent a space to hold workshops. You can also offer online classes to reach a wider audience.

Graphic Design/Web Design

If you have a talent for design, you can start a business as a graphic designer or web designer. You can offer your services to small businesses or individuals who need help with their branding, marketing materials, or website design. You can work from home or rent a space to meet with clients.

Photography/Videography

If you have a passion for photography or videography, you can start a business as a photographer or videographer. Even a photography side hustle in Canada can earn you over $50k per year. You can specialize in weddings, events, or portrait photography. You can also offer videography services for weddings, events, or corporate clients.

Event Planning

If you enjoy planning and organizing events, you can start a business as an event planner. You can specialize in weddings, corporate events, or social events. You can work from home or rent a space to meet with clients. You can also offer event design services to help clients create a cohesive look for their event.

6. Food and Beverage Sector

If you have a passion for food, starting a small business in the food and beverage sector can be a great option. According to Statistics Canada’s June 2024 report, accommodation and food services were up 2.3%, the largest growth rate since January 2023. Here are some small business ideas in the food and beverage sector that you can consider:

Specialty Food Shops

Speciality food shops are stores that sell unique and high-quality food items that are not typically found in regular grocery stores. These shops can specialize in a wide variety of food items such as cheese, chocolate, coffee, tea, spices, and more. If you have a passion for a particular type of food, opening a speciality food shop can be a great way to share your passion with others.

Catering Services

Catering services are a great option for those who love to cook and entertain. Catering businesses provide food and beverage services for events such as weddings, corporate events, and parties. If you have experience in the food industry and enjoy working with people, starting a catering business can be a great way to turn your passion into a profitable business.

7. Educational Services

If you have a passion for teaching and sharing knowledge, starting an educational service business can be a great way to turn your passion into a profitable venture. Here are two educational service business ideas that you can consider starting in Canada.

Online Tutoring

With the rise of remote work and online learning, online tutoring has become a popular business idea for educators. Online tutoring allows you to reach a wider audience and offer your services to students from all over the world. You can offer tutoring services for a variety of subjects, including math, science, languages, and more.

There are many platforms you can use to offer online services including Canada Online Tutoring, Teachers on Call, Mobile Tutors, and others.

Skill Workshops

Skill workshops are another great educational service business idea that you can start in Canada. Skill workshops allow you to share your expertise with others and help them develop new skills. You can offer workshops on a variety of topics, including cooking, photography, art, writing, and more.

Resources for Starting a Small Business in Canada

Government Resources

Industry Associations

Other Resources