So, you're eyeing a business for sale in Toronto. Maybe you're tired of the 9-to-5. Or maybe you've already run a few ventures and want something more stable. Either way, buying an existing business can be a solid way to skip the early chaos that comes with starting from scratch.
Toronto is fast, diverse, and a little intense. But it's chock-full of opportunities if you know where to look. This guide will discuss the right way to buy a business for sale in Toronto. We'll also look at specific successful industries and tips on what to do after taking over.
Why Buy a Business Instead of Starting One From Scratch?
Six in ten Canadians have thought about starting their own business, but only a third actually follow through. That's not surprising, as starting a business from scratch is much harder than it looks.
That's why many entrepreneurs in Toronto aren't building from scratch—they buy something that's already working.
Buying a business in Canada means purchasing an existing company for sale, not just a concept on paper, but an established business with a foundation already in place. While it doesn’t mean skipping the work, it certainly gives you a head start.
Why take this route? When you buy a business for sale in Ontario, you get built-in cash flow, a proven track record, existing staff and systems, and less trial and error to deal with. If you're thinking about buying, make sure to read The Secrets of Due Diligence – Everything You Need to Know When Buying a Business.
What are the Best Industries to Invest in Toronto?
Toronto is a great place to run a business, but some types thrive more than others. The best businesses to buy often have loyal customers and steady, repeat revenue, like local cafes, service-based operations, and niche retail.
These are some of the best-performing industries in Toronto to consider for your upcoming venture.
Retail
Retail businesses that sell locally sourced products and services, and often don't depend on international supply chains or currency fluctuations, tend to offer more stability. Neighbourhood bakeries, independent bookshops, pet supply stores, and groceries are a few examples.
Pros:
- Customer trust and foot traffic are already there
- Comes with inventory, physical location, and goodwill
- Choose between franchise and independent models
Cons:
- Rent, staffing, and utilities can add up
- Sales might dip depending on the time of year
While retail has its challenges, it's often backed by proven systems. Retail is a good option if you enjoy being involved in the day-to-day and have strong management instincts.
When getting started, consider the following:
- Due Diligence: Review financial statements, lease agreements, and inventory levels. Assess foot traffic and customer demographics in the area.
- Permits: Obtain necessary municipal licenses, including zoning permits and health inspections if applicable.
- Financing: Consider small business loans or lines of credit from local banks. The Canada Small Business Financing Program may also be an option.
Online Businesses
Toronto has a strong appetite for online businesses. It's a city filled with tech-savvy consumers and entrepreneurs who know how to spot opportunities in fast-moving markets. This category includes everything from e-commerce stores and subscription services to digital agencies and affiliate sites. For more information, read our article Everything You Need to Know About Buying an Online Business.
Pros:
- No need for a physical storefront or a large staff
- Easier to grow across Canada or internationally
- Many can be managed remotely or from home
Cons:
- Online traffic and revenue data need careful analysis
- Many niches are already saturated
Online businesses don’t require a storefront, but demand some strong digital marketing know-how and experience in remote operations. You should also be prepared to study website analytics, and ensure that you comply with Canadian privacy laws and related digital regulations.
Make sure to register your business with the Ontario Business Registry. Depending on the nature of the business, additional licenses may also be required. For funding, you can explore options through the BDC or local financial institutions that support digital enterprises.
Services
Service businesses, like residential cleaning, appliance repair, and even tutoring, are well-paying in Toronto because they meet essential, ongoing needs in a fast-growing city.
Pros:
- Often built on regular clients or service contracts
- No heavy investment in physical goods
- Easy to add new services or expand territories
Cons:
- Transitions can be tricky if customers are loyal to the founder
- Skilled workers are in high demand
- Service quality must stay high to retain clients
If you're good with people, operations, or managing teams, service businesses are a more practical path to ownership. Depending on the service, you may need specific certifications or licenses, so check with the City of Toronto for requirements. You can also look into microloans or government grants aimed at service-oriented businesses.
Franchise Resales
Franchise resales offer a bit more structure than independent ventures. These work in Toronto because you get the backing of an established brand and an already effective operational system. Most of these also come with training and onboarding support.
Pros:
- Customers already know the brand
- Franchisors often assist with training and systems
- Easier to follow business roadmap
Cons:
- Royalties and marketing contributions can eat into margins
- Branding and operations/processes are mostly non-negotiable
- Must be approved by the franchisor, which can take time
Toronto has many franchise opportunities across food, fitness, home services, education, and more. But you'll need to weigh that against the fees and rules that come with a franchise agreement.
How to Start or Buy a Work From Home Business in Toronto
More and more people prefer to work from home in Toronto, ditching commutes and office politics in favour of work they can control right from their kitchen table or spare room. Whether you're dreaming of buying a work from home Toronto business or picking up an existing one, here's a clear breakdown of how to do it right in five steps.
1. Start From Scratch or Buy One That's Running
First, figure out if you’re more of a builder or a buyer. If you're starting from scratch, you'll need a solid business idea that fits a remote model that can run with a laptop and Wi-Fi. On the flip side, buying an existing business gives you a head start. It comes with systems, customers, and revenue streams already in place (if you choose right). Know your comfort zone.
2. Check Licensing and Zoning in Toronto
Even though you're working from home, don't assume you're off the regulatory hook. Toronto has specific zoning bylaws for home businesses.
Generally, you can operate as long as your work doesn't involve heavy foot traffic, loud machinery, or external signage. But you may still need:
- A business license from the City of Toronto
- A BN (Business Number) from the CRA for taxes
- HST registration if you make over $30K annually
Check with the City of Toronto or speak with a local small business advisor before making it official.
3. Figure Out Your Financing
Even small home-based businesses can cost more than you'd expect.
In Toronto, you have a few ways to finance the deal or startup costs:
- Personal savings
- Bank loans (BMO, RBC, and TD have small business programs)
- Government grants or microloans (check Startup Canada or the BDC)
- Seller financing (some sellers let you pay in installments)
If you're applying for financing, a well-written business plan goes a long way. Keep it grounded, as lenders want proof that the numbers make sense.
4. Set Up the Tech and Workspace
As a work-from-home business, your home business setup drives your operations, so invest in it. Take note:
- Reliable Wi-Fi is non-negotiable
- Use cloud-based tools like Zoom, QuickBooks, Trello, or Shopify (depending on what you do)
- Make sure your home office complies with local fire and safety regulations, especially if you'll ever meet clients in person
Want a change of scenery? Toronto has plenty of coworking spaces where you can rent a desk a few days a week.
5. Build Your Local and Online Presence
Even if your business operates completely online, building a strong local presence is key to connecting with customers, partners, and suppliers.
- List yourself on Google My Business (use your postal code)
- Join Toronto-based networking groups or Slack communities
- Show up in local SEO searches, like Toronto + [your service] should be easy to find
Start small, but plant roots. Locals like doing business with locals, even online.
Tips for Success After Buying a Business for Sale in Toronto
Once you've closed the deal, the real work begins. Here are a few tips that can help you settle in and move forward with confidence:
- Network locally: Join your BIA (Business Improvement Area) or attend local Chamber of Commerce events. These groups often open doors faster than cold outreach.
- Watch for seasonal trends: Toronto foot traffic shifts dramatically between summer festivals, back-to-school periods, and winter slowdowns.
- Hire staff with local know-how: A team that knows the city and your neighbourhood can make smarter decisions, quicker.
- Follow city regulations closely: Toronto is strict with zoning, signage, and licensing. It's best to double-check rather than backtrack.
- Prioritize delivery and pick-up options: Even brick-and-mortar shops are expected to offer digital convenience.
Adjusting to ownership in Toronto takes patience, but the payoff is real. Keep showing up and striving to improve your business.
Looking for your next opportunity? Check out the BFS category page to browse all the business types available for sale on our platform. You can also browse our business articles for more insights into owning and operating a business in Canada.
Frequently Asked Questions
Do I need business brokers in Toronto?
You don't need a business broker in Toronto, but having one can definitely help, especially if you're buying for the first time or negotiating a complex deal. If you're confident doing your own research and due diligence, going solo is possible, but many buyers appreciate having expert guidance.
How do I start a work-from-home business in Toronto?
You can either build a home-based business from scratch or skip the startup phase and buy one that's already running. Buying an owner-retiring business for sale in Toronto means you get existing systems, revenue, and often loyal customers. Regardless, you'll need to register your business with the province, check zoning permissions, and handle any tax or specific licensing requirements.
Where can I find a business for sale in Toronto?
You can browse hundreds of Toronto-based listings on BusinessesForSale, one of the most trusted platforms for buyers and sellers. Whether you're looking for a cafe, cleaning service, or online business, you'll find verified opportunities with detailed info to help you compare and decide.