If you are looking for the Best Business to Start in Canada (2026). Congratulations you are on the right page.
According to the Business Development Bank of Canada (BDC), economic growth for Canada slowed down by 1.9% in 2019 due to the COVID-19. Since then, GDP has risen by 3.5% and the economy is still in its recovery period.
The Canadian economy is expected to continue growing, but the growth will be gradual due to strict monetary and fiscal policies.
For an entrepreneur or small business owner, this is a good sign to start a new business or venture in Canada. You don’t necessarily need professional experience, education, or technical skillset to pursue a highly profitable business.
With the right vision and work ethic, you should be able to grab the next big business opportunity.
In this article, we are going to tell you which industries to consider and then show you how you can start one of the best businesses in Canada.
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Best Businesses to Start in Canada (2026)
Here are the best businesses to start in Canada:
1. Woodworking Business
As a home-based business, this is currently one of the best businesses to start in Canada.
As people spend more time at home, it is likely that they will invest more in the furniture and interior of the house. This is why wooden home decorative items are very popular.
It is a safe business to manage by yourself as the sales may be low but the profit margin is very high.
You are expected to earn around $80, 000 per year as a woodwork business.
2. Customised Phone Cases
If you are creative and great at arts and crafts, this is a good business choice for you.
Customized phone cases are a growing market in Canada. Most of your consumers will be children, with a strong need to change their phone covers occasionally.
You can never go wrong here with the variety of diverse phone covers you can sell in the market.
This is also a good choice if you are considering running the business alone. The expected revenue per month would be around $5,000.
3. Axe Throwing Business
Although a unique idea, it is a very good one to consider.
Axe throwing is not a popular business in Canada but it is a fun and interesting activity to try. Consider yourself catering to events such as birthday and bachelor parties.
If you can manage to keep a good reputation, your business can easily become a tourist attraction for anyone visiting the city or Canada in general.
This business is, however, manageable as a group. Expect to hire 5-6 employees to run the palace smoothly. You will also need some licenses, certifications, and signatures of no liability from customers.
Expect to earn around $720,000 a year in this business in Canada. The monthly revenue can be somewhere around $60,000.
4. Meal Prepping Business
You can never go wrong with the food business in any part of the world. The food industry is a never-ending growing industry with room for more.
If you are a creative person with great cooking skills or an interest in cooking then this is an amazing option for you.
With the right marketing strategy and cuisine, expect to earn around $130, 000 per month.
This is a large and small-sized business, meaning if people are liking your food then you can expect to open a small franchise or restaurant in the near future. COVID-19 also had minimal repercussions on home-based food businesses.
5. Car Dealerships
Car dealerships are so far on top of the list of best businesses to start in Canada due to their high-profit margin. The industry has garnered $2.9 billion dollars this past year.
This business is expected to grow with a marginal increase over the next five years. Revenue is expected to grow due to the COVID-19 recovery period as people decide to travel again. Dependence on air transport has also decreased.
This industry has not been affected like most other retail industries.
According to IBISWorld, car dealerships have a market size of $156 billion and an industry employment rate of 184,035.
The range of products and services you can provide are new vehicles, used vehicles, spare parts, maintenance, and repair services.
6. Wheat Farming
Due to economic volatility, there has been a strong demand for more low-cost products, those made from more natural ingredients such as wheat.
Canada is one of the largest producers of wheat in the world.
The types of wheat you can grow in Canada are spring wheat, winter wheat, and Durum wheat.
However, according to industry analysis, revenue is expected to decline by 0.5% over the next few years. This is due to rising prices and inflation. Wheat production costs will grow and demand will decline.
Competition is also growing due to international competitors meaning the products will have to be of the highest quality.
And if COVID-19 persists, it may cause fluctuations in the supply chain.
According to IBISWorld, the wheat farming industry in Canada has a market size of $12 billion with an employment rate of 44,602.
7. Craft Brewery
Despite the economic downturn caused by COVID-19, the Brewery industry has experienced healthy growth in the past five years. Major brewery markets are expected to grow back in the economic recovery period.
The total profit for 22 is expected to be $1.5 billion.
Due to the growing popularity of craft beer from local breweries, the industry has expanded during the past few years.
Customers now prefer drinking beers at home, and consequently, choose more economic ranges of beer rather than the traditional light and premium beer brands which currently represent most of the industry.
The most popular choices of beer in Canada include draught beer, bottled beer, and canned beer. Brewery businesses in Canada are mostly involved in non-alcoholic beer production, canned beer production, bottled beer production, and draught beer production.
According to IBISWorld, the brewery industry has a market size of $7 billion and an employment rate of 16,603.
Hence, craft breweries are now considered one of the most profitable businesses in Canada 2022.
8. Real Estate
Another flourishing industry is the real estate market in Canada. Real estate has been growing periodically for decades. As businesses grow, more office space is required.
Often so, new employees are recruited from afar, often in other cities. As these new workers move in, they need places to live and in the case of families larger properties are bought or rented.
Oftentimes landowners need professionals to manage their rentals, negotiations, and clients. This is where Real Estate professionals come in, these are people who help other people buy and sell properties.
According to IBIS World, the real estate market had a profit margin of 46.5% in 2019 alone. Most of these real estate businesses are small to medium enterprises.
9. Transport and Storage
The transportation and storage industry is about providing customers with transportation services and storing products. This includes shipping foods, products and warehousing these goods.
Due to COVID-19, people have started to prefer online purchasing and managing their businesses. Now the only thing left is the middle man to deliver these products at a much reasonable price as compared to bigger courier companies.
You can start small by purchasing a truck, or maybe a bike if you do not plan on traveling long distances. Storage is another business opportunity that requires you to own warehouse space.
According to the Canadian government, most than 80% of small to medium-sized businesses provide transportation and storage services with yearly revenues exceeding $300,000.
10. Professional Financial Services
If you are a college student majoring in finance or accounting, this is a great opportunity for you.
Finance professionals provide services such as financial management, bookkeeping, and financial consultancy. A few professional certifications, even online- can help you launch your career in freelancing in professional financial services.
With enough experience, this will be highly beneficial in gaining a position at an international company, or maybe starting your own financial services firm.
As a financial consultant, you also have the advantage of knowing which direction the industry trends are shifting in. And so, you can update your skills accordingly to stay in demand.
Small to medium-sized financial services enterprises in Canada has seen a growth of 2.0% since 2018.
11. Waste Management
The most unpopular by-product of a growing economy is its generation of waste. As businesses expand and grow, most resources are used, paper is used, electronics and other utilities, etc.
In today’s more sustainably aware world, there is a growing demand by businesses for sustainable waste management services. And due to the name, investors are ready to seed fund a start-up which centers around sustainability.
This is a great opportunity for environmentally conscious entrepreneurs in contributing to the community. Waste collection services in Canada are expected to garner $4 billion in 2022 alone.
12. Freelance Writing Business
Almost anyone can start this business. All you need is a computer and an internet connection.
There are different niches in freelance writing e.g. academic assignments, content writing for other businesses, or becoming a publisher at a well-reputed blog or newspaper website.
For this, you will need a few samples of your work to display on your portfolio when clients approach you.
This is not a business restricted to Canada only, you can get clients from any part of the world for this. So the revenue range varies solely depending on how much your demand per word is and your work ethic.
People get into this business as a student, as young as 13 years old, and turn this into a legitimate career field.
The profit vs cost ratio is also very high as there is no such cost if you already have a smoothly running computer.
As a well-reputed freelance writer, expect a monthly revenue of anywhere between $10,000 to $50,000 or higher.
13. Dropshipping
This is also a low-skill business idea. Drop Shipping means finding products and then the customers for them.
You do not need a warehouse or storage space. You don’t even need to physically get a hold of the product. In this business, you just act as a bridge between another manufacturer and earn your profit margin.
Also, you can start this business anywhere in the world. Meaning you could be sitting in Malaysia but run an online furniture store in Canada. Moreover, the currency rate is bound to give you more edge in the profits depending on which part of the world you live in.
There is no approximation of what the revenue will look like as it depends on what kind of products you are selling. But it has a high potential for market growth.
14. API Designer
Also known as an application programming interface, is a type of software that develops a connection between two applications or computer programs.
For example, when you use your phone to check the weather, the phone company is not generating the forecast themselves but is using a third-party app to give you information regarding the weather.
API designers are in very high demand and employability in this industry will increase in the next few years.
Becoming a freelance API designer is a good choice if you are a tech-savvy person with some background in IT.
If not, there is nothing to worry about. There are many good courses and online certifications available to get you on track to becoming an API designer.
As an API designer, you can expect to earn around $350,000 per year or $30,000 per month.
15. Tea Business
Tea is still a very popular choice in some commonwealth or ex-commonwealth countries. Other than that, herbal and healthy teas are a growing preference.
If you like growing plants have some garden space and tea then you should consider starting a tea business.
The right marketing strategy can turn your tea business into a legitimate company in the future. Consider getting someone else on board when dealing in the foods and drinks industry.
Starting costs can be anywhere between $1000 to $5000, while revenue generated would be around $8000 to $10,000 per month.
16. Consultancy Firms
Consultancy means providing professional expertise on a specific subject. A lot of growing businesses require consultants to help them structure and improve their business operations.
Finance, marketing, and education are just a few examples of consultancies you can provide. Obviously, you would require some sort of professional experience or professional education to be considered a well-reputed consultant and land client.
In case you do not have the educational background but know a few good or potential consultants, and have good management skills then consider leading a consultancy firm.
The costs of launching a consultancy firm are very low as you can deal with your clients at their offices or through virtual meetings. So, starting costs could be around $1000 for a computer and a good internet connection. Revenue can go as high as $200,000 if you land a good amount of clients or projects.
17. Photobooth Business
Polaroids, frames, and retro-themed parties are a popular choice at parties and events. Almost everyone uses a photo booth at a party.
If you live in a hustling and bustling city, consider starting a photo booth business. All you need to do is create some catchy frames, get a photo booth and rent it out. In most cases, businesses may ask for a commission or pay you a good enough amount to keep you satisfied.
The cost for starting a photo booth business can be around $3000-$5000 with a revenue of $300,000 considering you are managing multiple photo booths.
18. Pet Care Services
With COVID-19, there has been a rise in pet adoptions. But now as people slowly start going back to offices, they will have less time to take care or entertain their pets.
If you are someone who is good with animals, consider starting a part care business. Your services can include grooming, training, walking, and day-care services. Dealing with so many pets will make you more aware of their products and so you can start selling pet products e.g toys and dog food as a side business.
There are no such costs to starting a pet care business as you can be a one-man show.
With no demand for professional licenses or certifications, expect a monthly revenue of $5000.
In Canada, litter removal is also a very good business for itself. Expect to earn around $40,000 per month.
19. Freelance Graphic Designer
If you are a tech-savvy person and good with drawing, consider learning to become a graphic designer. This is a great part-time business for students and people with a creative edge.
There are a lot of great courses available online to help you become a graphic designer. Even well-reputed universities have started giving out certificates. This can be a good competitive edge if you are considering applying for a graphic designer job.
Digital art is in growing demand and you can also sell your artwork as NFTs for a very good price. The market is growing and it has a lot of potentials.
20. Cannabis Business
Although controversial in most parts of the world, Canada is one of the few countries that have legalized cannabis. Companies are starting cannabis flavored chocolate, candies, and gums.
This is a good opportunity for becoming a cannabis supplier to large clients. Not only is the revenue remarkable with $250,000 but also your business will have great potential for growth.
Of Course, you will need some licenses to start growing cannabis and be of legal age.
21. Food Distribution Business
This is more or less like the transportation and storage business we mentioned earlier. But you can also distribute your own range of foods to suppliers e.g. keto diet plans.
Other ideas include gluten-free, lactose-free, kosher, and halal foods. Gluten and lactose intolerance is growing with each generation. Canada is famous for its ethnic communities and so the demand for Kosher and Halal foods is growing with the growing population.
Your basic requirements will include an ice or hot box to keep the food cold or warm and means of transportation. If you are only providing services in town, get a motorbike. In case of larger amounts of food and traveling larger distances, consider buying a van or truck.
The average number of people it takes to run a food distribution service is only 1 and revenue is expected to be $10,000 per month.
22. Facebook AdsConsultant
Online advertisements are the main source of promoting products and services for all sizes of businesses now. People spend most of their free time scrolling through social media apps.
As a Facebook ad consultant, you can advise your clients on how and when to buy Facebook ads. Your job will include analyzing facebook insights and activity for the business and ensuring the advertisement reaches the targeted or maximum amount of people.
The best part is that you can charge by the hour and meet your clients online.
Some Facebook ads consultants have managed to earn as much as $5,000,000 alone per month. It is a business definitely worth considering.
23. Shopify App Developer
Shopify’s popularity is rapidly growing. Due to COVID-19, shops had to shut down for months. Brands started shifting their businesses online.
With experience in app development, you can easily land a job as a Shopify app developer with your local retail businesses.
With a few friends in the field, you guys can start your own Shopify app development business. Not only will this land your more clients, but larger ones.
Starting costs are around $3,000 and revenue would be $15,000 per month.
Your other services can include WordPress, marketing strategy, support, and maintenance services.
Top Business Industries in Canada
If you still can not decide which business idea to go for, here are the most profitable industries in Canada according to IBISWorld:
- Car Dealerships ($2.9 billion)
- Wheat Farming ($1.6 billion)
- Breweries ($1.5 billion)
- Department Stores ($1.2 billion)
- Local Freight Trucking ($1.1 billion)
- Data Processing and Hosting Services ($9 billion)
- Waste Collection Services ($4 billion)
- Security Services ($3 billion)
- Tax Preparations Services ($3 billion)