Are you thinking of starting a small business in Canada? If so, you’ll want to know which businesses are the most profitable. If your small business can be found on this list of the most profitable small businesses in Canada 2024, then it should be easy enough to get your business up and running, hopefully quite profitably as well.
Small businesses are usually less expensive to run than large corporations. And they don’t require huge amounts of capital to get started. In fact, some small businesses can even be started with very little money. Most of them offer products or services that people can’t live without, and some cater to industries with very large amounts of disposable income.
No matter what your business is, if you want it to succeed, you need to find ways to make it stand out from the crowd. Here’s a list of the top 10 most profitable small businesses in Canada for 2024, based on average revenue. These businesses are all relatively low-cost to start, so they’re perfect for entrepreneurs with limited capital.
- 10 most profitable small businesses in Canada
- 1. Financial services
- 2. Real estate activities
- 3. Hairdressing, barbering, and other beauty salon activities
- 4. Information Technology service business
- 5. Professional, scientific and technical services
- 6. Repair of computers, consumer electronics, and household appliances
- 7. Retail sale of clothing and footwear
- 8. Retail sale of furniture, carpets, and other home furnishings
- 9. Hotel, restaurant business
- 10. Cleaning services
- 10 facts about small businesses in Canada:
10 most profitable small businesses in Canada
1. Financial services
A recent study by the Canadian Federation of Independent Business (CFIB) found that the most profitable small businesses in Canada are in the financial services sector. This is not surprising, given that this sector is full of businesses that require specialized knowledge and skills. The most profitable business in Canada in 2024 is expected to be a financial advisor.
Financial advisors provide valuable services to their clients, and they are compensated handsomely for their work. If you are thinking about starting a small business, consider entering the financial services sector.
2. Real estate activities
This is no surprise, as the industry has seen incredible growth in recent years. If you’re thinking of starting a small business, real estate is definitely an industry to consider because this is a very profitable business in Canada. Here are some tips for getting started:
- Research the market. Before you start your business, it’s important to understand the current state of the market. What are people buying and selling? What are the prices? What’s the demand like? Doing your research will help you make informed decisions about your business.
- Find a niche. Once you’ve done your market research, it’s time to find a niche for your business. How are you different from other businesses?
- Also read: How to Start a Cleaning Business in Ontario
3. Hairdressing, barbering, and other beauty salon activities
This is another the most profitable small business in Canada is hairdressing, barbering, and other beauty salon activities. This is likely due to the fact that these businesses require relatively low start-up costs and can be run from home.
Additionally, the demand for these services is always high, as people are constantly looking for ways to improve their appearance. If you’re thinking of starting a small business, then this could be a great option for you!
4. Information Technology service business
IT service businesses are among the most profitable Canadian industries, according to a new report from BMO Financial Group.
IT services companies offer a wide range of solutions, including software development, web design, customer support, digital marketing, network management, data analytics, and cloud computing. These services generally require high levels of skill, training, expertise, investment, and ongoing maintenance.
5. Professional, scientific and technical services
These businesses offer a variety of services, including management consulting, accounting, legal and architectural services. They tend to be profitable because they provide valuable services to their clients. Many of these businesses are started by professionals who have years of experience in their field.
Other small business owners may choose this type of business if they already have enough capital on hand or can take out loans from banks to finance the start-up costs.
- Also read: How To Start A Business On Amazon
6. Repair of computers, consumer electronics, and household appliances
The repair of computers and peripheral equipment, consumer electronics, and household appliances is also the most profitable business in Canada. In fact, it’s been ranked as the most profitable business for three years in a row. If you’re thinking of starting a business in this industry, you can’t go wrong.
7. Retail sale of clothing and footwear
The retail sale of clothing and footwear is most unique and profitable businesses in Canada. The industry generates billions of dollars in revenue each year and employs thousands of people across the country. If you’re thinking about starting a small business, this is one sector that you should definitely consider.
There are a few things to keep in mind, however, such as the competition and the need to constantly update your inventory. But if you’re up for the challenge, the retail sale of clothing and footwear can be a very lucrative business venture.
8. Retail sale of furniture, carpets, and other home furnishings
In recent years, the retail sale of furniture, carpets, and other home furnishings has been one of the most profitable businesses in Canada. This is because Canadians are increasingly spending more money on their homes. The reason for this trend is a growing awareness that the way we live at home affects our health, happiness, and productivity outside of it.
It also helps to foster a sense of belonging that boosts confidence and self-esteem. A new trend emerging within this industry is sustainable living. Sustainable living means working with nature rather than against it to create beautiful spaces that can be enjoyed by all people today as well as future generations.
- Also read: 10 Steps to Start an Online Fitness Business
9. Hotel, restaurant business
The hotel and restaurant business is one of the best and very profitable business in Canada for. Hoteliers and restaurateurs can expect to see their profits grow by 5% to 10% this year. The industry is benefiting from strong growth in both domestic and international tourism, says one analyst. And with the low Canadian dollar, we’re seeing more Canadians traveling within the country.
Another key trend that’s driving profits is the popularity of food delivery services like Uber Eats and SkipTheDishes. People are ordering food more often from restaurants, and they’re willing to pay a premium for the convenience, says another analyst.
10. Cleaning services
If you’re looking to start a small business that is both profitable and relatively easy to get up and running, a cleaning service may be the perfect option for you. In most cases, all you need to get started is some basic equipment and a reliable vehicle.
And with the busy lives that most people lead these days, there is always a demand for professional cleaners. As such, this type of business tends to grow fairly quickly and requires little investment to maintain.
10 facts about small businesses in Canada:
Majority of Businesses: Small businesses are the backbone of the Canadian economy, accounting for about 98% of all businesses in the country.
Employment: Small businesses are significant employers in Canada, providing jobs for nearly 70% of the private sector workforce.
Size Definition: In Canada, a small business is typically defined as a business with fewer than 100 employees.
Economic Contribution: Small businesses contribute over 40% to Canada’s GDP, showcasing their vital role in the economy.
Growth Sectors: The fastest-growing sectors for small businesses in Canada include technology, healthcare, and professional services.
Innovation: Small businesses are key drivers of innovation in Canada, often leading in research and development activities.
Entrepreneurship: Canada has a strong entrepreneurial culture, with approximately 3.5 million Canadians being self-employed.
Survival Rate: About 70% of small businesses survive their first year, but the five-year survival rate drops to around 50%.
Regional Distribution: Ontario and Quebec have the highest concentration of small businesses, followed by British Columbia and Alberta.
Government Support: The Canadian government provides various supports for small businesses, including grants, loans, and tax incentives, to help them grow and compete globally.
Bottom line
As we’ve now reached the end of this article about the most profitable business in Canada, we hope you have found it interesting and informative. Let us know what you think in the comments section below or let us know on social media if you would like to hear more from us on this topic or another.
