Best businesses to start in Canada in 2024

Are you looking for the best businesses to start in Canada?

Are you an entrepreneur who wishes to cash in on opportunities the Canadian market offers?

This article is sure to help you out. Starting a business is not an easy feat. It requires in-depth market research, relevant expertise, necessary funds, and a well-planned approach. But, a good business idea is a foremost prerequisite for a successful business.

A good business idea aims to solve the potential consumers’ problems while having a sustainable profit-generating plan. As an entrepreneur looking to start a business in Canada, you must understand the market situation, tap into the opportunities, and craft a strategy to dodge the threats.

This blog article discusses a few best businesses to start in Canada in 2024. Let’s dive right in.

Most profitable businesses in Canada

Profit maximization and wealth maximization are the two most important goals of any entrepreneurial venture. While a business may not be profitable initially, it must aim for long-term profits.

Even better, you can start your business in a sector already making profits. It ensures that there is a demand for your services or products, and you would take less time to expand your business.

Here are a few profitable businesses in Canada:

1. Real estate

The real estate sales and brokerage industry is closely linked with Canadian real estate prices and fluctuations. While high property prices may be a deterrent for the buyers, the real estate businesses can do well out of them. Why? Because the industry revenue typically rises when property rates and the number of transactions increase. It is due to the fact that real estate agents earn on a commission basis.

The expansion of this sector is increasing, and as indicated by Research and Markets, the worldwide real estate market saw a rise from $3694.47 billion in 2022 to $3976.18 billion in 2023, demonstrating a compound annual growth rate (CAGR) of 7.6%. Moreover, anticipated at a compound annual growth rate (CAGR) of 7.0%, the real estate market is projected to reach $5209.84 billion in 2027.

You can take advantage of this high profitability and step in with your real estate business. Further, in this digital era, nothing is non-accessible on phones. You can develop a real estate app to provide your services and attract a broader customer base conveniently.

2. Freight transportation

Freight transportation is a profitable business to start in Canada. It is because of an abundance of goods in Canada. Many people are willing to pay good money for goods they need or want. It also means that many people have money to spend on other things besides buying food and clothing. These people will likely be willing to pay good money for items that must be transported across the country or worldwide, like cars or computers.

As per Mordor Intelligence, the global Freight and Logistics Market is projected to be valued at 5.73 trillion USD in 2023, with an anticipated growth to 7.54 trillion USD by 2029. This represents a steady compound annual growth rate (CAGR) of 4.70% over the forecast period from 2023 to 2029. Specifically, the Canada Freight and Logistics Market is estimated at 102.57 billion USD in 2023, set to reach 135.79 billion USD by 2029, reflecting a CAGR of 4.79% during the same forecast period.

If you’re considering starting a freight transportation company in Canada, there are some essential things you need to know before getting started.

• First, it’s crucial to determine what kind of vehicle you’ll be using and when it will be available. 
• You’ll also need to figure out how much space your vehicle will require and where you’ll find it (either rented or owned).
• Next, decide if your business will be based on one truck or multiple trucks; this will determine what equipment is necessary for maintaining and operating them (tires, brakes, etc.).
• Finally, consider whether you’ll be taking your business online. An online business will likely expand faster than offline because of its broader reach.

3. Waste management

The accumulation of waste is an inescapable byproduct of a rising economy. As firms expand, they use more paper, discard outdated technological gadgets in favor of newer models, add extra office spaces leading to the accumulation of construction debris, and so on. It’s undesirable for the environment, but fortunately, more businesses are acknowledging their responsibility to create a sustainable future for all people and taking proactive actions to reduce trash daily.

Waste management is a profitable business to start in Canada because of the country’s low labor costs, high disposable income, and high population density. This combination allows waste management companies to generate profits without spending much on labor. Additionally, the country has a large number of people willing to pay for recycled goods, making it profitable for waste management companies to sell them at a high price.

The estimated size of the global waste management market reached USD 1052.58 billion in 2022 and is projected to reach approximately USD 1985.06 billion by 2032. This signifies an expected compound annual growth rate (CAGR) of 6.60% from 2023 to 2032.

In Canada, the waste management sector is a significant industry, with key statistics for 2023 underscoring its importance. In 2022, the global waste management market reached a value of USD 1,293.70 billion and is set to grow at a steady compound annual growth rate (CAGR) of 5.4% from 2023 to 2030. Additionally, the waste management market in the United States and Canada combined amounted to an estimated $578.18 billion in 2022, showing a notable 9.6% expected growth by 2023. The market’s revenue is projected to steadily increase, with a 5.4% CAGR from 2023 to 2030, reaching a substantial USD 1,966.19 billion by 2030. These figures emphasize the significant and promising role of the waste management industry in the region.

4. Financial services

Financial services are one of the best businesses to start in Canada because it offers a wide range of growth opportunities.

You can choose from many different financial services, ranging from small-scale loans to high-end investment opportunities. The market is also very diverse and constantly changing, so something new and exciting is always happening. That makes it a great time to start a business in Canada.

Canada’s current account surpluses have been a significant factor that has helped this sector grow. The Canadian government has used its surplus funds to invest in Canadian banks through bond purchases, which has attracted foreign investors to invest in Canadian banks and other financial institutions across the country.

Another way to earn through this sector is to provide financial consulting services. If you have expertise and skills in accounting, taxation, or financial management, you can start a business selling your knowledge as human capital. If you take the digital route to provide your services, you can save on establishment costs and other fixed costs.

Did you know that the Canadian financial services sector plays a crucial role, contributing approximately $82 billion to the country’s GDP and employing around 408,000 individuals across 17,000 financial services firms? For companies located in Toronto, Ontario—the epicenter of Canada’s financial services industry—being situated here means being right at the heart of the action.

5. Fitness services

Fitness services is a profitable business to start in Canada. The reason is that it is a growing industry, and many people need it. The Health & Fitness market in Canada recorded a total revenue of US$106.70 million in 2022 and has grown to a valuation of $4.7 billion in 2023, as reported by industry tracker IBISworld. Projections indicate that the total revenue is poised to exhibit an annual growth rate (CAGR 2022-2027) of 10.56%, leading to an anticipated market volume of US$161.50 million by 2027.

In 2016, the Canadian Fitness Industry Association (CFIA) reported that the demand for fitness equipment grew by 3% in the previous year. In addition, they said that 24% of Canadians say they would like to go to the gym more often but don’t have access to one nearby.

Furthermore, when examining the figures, it is noteworthy that 37% of Canadians engage in physical activity for 30-59 minutes daily, and an additional 8% report being active for over two hours each day. On average, residents of Quebec are the least active, with 64% of the province’s population engaging in less than 30 minutes of exercise per day.

It means that many people need a place to exercise and be healthy. It also means that many businesses can offer these services without spending too much money on equipment or hiring employees.

One way to provide fitness services without investing in a studio or equipment is to launch a fitness application. You can include features such as multiple exercise options, calorie tracking, personalized diet plans, etc., in your fitness app.

Upcoming lucrative businesses in Canada

Apart from the businesses discussed above, several other businesses are taking advantage of the current opportunities. These businesses utilize the latest technology to make the most of every chance.

Here are some of the upcoming lucrative businesses in Canada:

1. Blockchain supply chain management

Blockchain supply chain management is an excellent business to start in Canada because it is a growing market providing vast growth and innovation opportunities. The Canadian government has recognized blockchain as essential technology, and several organizations are working to develop ways to integrate blockchain into the country’s supply chain management systems.

Moreover, blockchain helps reduce costs and fraud and increases transparency throughout the supply chain process. The technology has been proven effective in reducing costs in processing shipments and tracking products as they move through different stages within a company’s supply chain. It also helps companies save money on intermediaries such as couriers or freight forwarders by cutting out these middlemen from the equation altogether.

This means they do not need to take payment from clients as they only receive payment once the shipment reaches its destination. It means they don’t get paid any commission fees, which can add up over time if you’re doing business with multiple clients at once!

2. Cab booking app

Canada is a large country where convenient and affordable transportation is a necessity. Buying a vehicle may not be feasible for many citizens owing to the high upfront costs and maintenance. Moreover, a higher number of vehicles on the roads will ultimately lead to more traffic and a higher commutation time. Thus, many people rely on cabs for their daily travel needs.

You can take advantage of this opportunity and start your cab booking app business. The cab booking app will take care of your customers’ mobility needs. With features such as real-time tracking, in-app map, in-app communication, etc., you can attract users to your app. Although a few players are already in the market, you can get ahead with a unique, robust, and user-friendly app.

3. Cannabis delivery app

Cannabis is legal for both recreational and medical use in Canada. A person must be at least eighteen years old to purchase and consume marijuana in the country. More and more people are willing to get easy and convenient access to cannabis, and cannabis delivery apps can help these people fulfill this demand. These apps connect the customers to the local cannabis dispensaries and help them get their orders delivered to their doorsteps.

If you are looking to start a business in Canada, a cannabis app business can be profitable for you. However, before starting a cannabis app business, you must be aware of the Canadian laws and regulations governing the cannabis trade.

Anyone who wants to engage in cannabis-related activities must obtain a permit from Health Canada. For instance, a license is mandatory if you wish to cultivate cannabis, manufacture cannabis products, or sell cannabis for medical purposes.

Commercial cannabis licenses must be obtained for:

• Micro-cultivation, nursery, and standard cultivation
• Micro-processing and standard processing
• Sale for medical purposes

4. EV charging station finder app

The electric vehicle (EV) market in Canada is steadily growing. According to PwC, the country is targeting a 10% share of EVs in new vehicle sales by 2025, 40% by 2030, and 100% by 2040. This inclination towards electric vehicles also requires the development of more EV charging stations across the country.

While some entrepreneurs might focus on the direct demand and invest heavily in building charging stations, you can benefit from the indirect demand and launch an EV charging station finder app. In a large country like Canada, looking for a charging station for your vehicle can be hectic. You can ease this process for the citizens through your EV charging station finder app.

Thus, your app would help users locate nearby charging stations, find out the charging capacity of the station, reach there using the in-app map, and provide various other features.

5. Renewable energy consultancy

As of 2023, the market size of the Renewable Power industry in Canada is projected to be $39.5 billion, an increase of 1.07% from 2022. The share of Canada’s energy portfolio derived from renewables is projected to rise from about 61.5% in 2010 to 71.2% in 2023.
According to the report, the average residential cost of electricity in Canada is $0.192 per kilowatt-hour (kWh). This rate encompasses both fixed and variable costs and is calculated based on an average monthly consumption of 1,000 kWh. The higher electricity costs are making people look for energy alternatives. Renewable energy sources are a great alternative to expensive and environmentally harmful energy sources.

While these energy alternatives are appealing, people need to know which renewable power to use and when. If you have knowledge and expertise in this area, you can provide consultancy services to guide your customers on the types and applicability of renewable energy.

Is Canada a good location to start a business?

Short answer: Yes. Long answer: Definitely yes.

Canada is a great place to launch a business. Said that, various cities, such as Toronto, Vancouver, Montreal, and Ottawa, are ideal for entrepreneurs to launch their startups. Toronto is known explicitly for its robust startup community with incubators, groups, and a large talent pool.

Canada serves a lot of ideal factors for starting a business:

• Investor protection
• Favorable tax rates
• Credit access
• Property registration
• Insolvency resolution

How Idea Usher Can Help?

Our team at Idea Usher can significantly aid businesses by leveraging its expertise in app and software development. For entrepreneurs in real estate, our tailored solutions involve creating feature-rich real estate apps, enhancing customer engagement, and streamlining transactions. In the freight transportation sector, our innovative applications optimize operations, offering real-time tracking and improving overall efficiency. In waste management, we develop applications to facilitate waste reduction, recycling, and disposal, aligning businesses with sustainability goals.

For financial services, we design seamless mobile banking solutions and financial consulting apps, providing accessible and user-friendly services. In the fitness industry, our fitness applications offer workout routines, calorie tracking, and personalized diet plans, promoting healthy lifestyles. Additionally, we excel in developing solutions for emerging businesses like blockchain supply chain management, cab booking, cannabis delivery, EV charging stations, and renewable energy consultancy, ensuring businesses stay at the forefront of technological advancements. Contact us to catapult your business to newer heights using technology.

Frequently asked questions

Here are some exciting FAQs about the best businesses to start in Canada:

Which Canadian business is the most profitable?

Real estate, freight transportation, waste management, financial services, and fitness services are some of the most profitable industries in Canada.

What businesses are in high demand in Canada?

Several businesses are rapidly gaining popularity and are likely to grow more in the coming years. These businesses include blockchain supply chain management, cab booking apps, cannabis delivery apps, EV charging station finder apps, renewable energy consultancy businesses, etc.

Is Canada good for small businesses?

Canada is a favorable spot for launching a small business. Its tax rates, credit accessibility, property registration, and other factors are great incentives for small entrepreneurs.