The path to launching or buying a lucrative business can be an exciting but unpredictable one. Although there is no surefire way to make money, the odds are much improved with smart planning.
Before making the decision to venture into a business, it’s essential to conduct in-depth research on the market demand, operational expenses, possible profit margins and any industry trends you’re likely to encounter. You should investigate different opportunities while pursuing your entrepreneurial aspirations.
With that in mind, we’ve put together a carefully curated list of some high-profit types of business which have demonstrated resilience or recent growth in Canada. If you’re looking to start or buy a business in 2024, these ideas could help spark your imagination.
1. Waste Management
As the economy expands, businesses will naturally produce more waste and create new opportunities in the waste management industry, which could be an unexpected route for budding entrepreneurs.
Many companies are now placing a strong emphasis on sustainability, looking for sustainable ways to manage and reduce their waste. Finding solutions to these challenges can be lucrative as well as beneficial for the planet: in 2022, the global waste management market reached a value of $1413.56 billion CAD. Looking ahead to 2032, experts predict that it will reach approximately $2665.84 billion CAD.
Anyone looking to enter the industry will need to be committed to keeping up to date with changing regulations and environmental standards. But entrepreneurs who are willing to take the plunge can help develop innovative solutions that cater to the ever-changing needs of businesses striving for a sustainable future.
2. Real Estate
The Canadian real estate market, encompassing both brokerage and sales, experiences significant impacts from changes in the nation's housing sector. Urban centers like Toronto and Vancouver frequently face high demand, resulting in rising property value which can present opportunities for real estate companies.
Although the competition may be fierce, there is ample opportunity for creativity, particularly in the realm of environmentally friendly and cost-effective housing options. Embracing changing market trends and harnessing digital technologies can boost the opportunities for startups in the Canadian real estate industry.
According to Research and Markets, the global real estate market has experienced significant growth in recent years, reaching a value of $5339.81 billion CAD in 2023 from $4961.49 billion CAD in 2022 - a compound annual growth rate of 7.6%. This ongoing expansion is not projected to stop any time soon, either. By 2027, the real estate industry is projected to be worth a staggering $6996.55 billion CAD.
3. E-Commerce Store
An e-commerce site is one of the most profitable side businesses that can be pursued with minimal investment. According to Statista, there is a projected revenue growth rate of 14.6% for e-commerce stores in Canada in 2024.
Promoting a product or service that resonates deeply with you can be a great opportunity to generate income. Digital tools such as Shopify, WooCommerce and SquareSpace can make it easier to get started with an online business. Choose a specialization for your store and stock it with items you believe will be popular with customers - your passion and knowledge can help set you apart from the crowd.
To effectively connect with your target audience, you should also consider creating advertisements and establishing a presence on various social media platforms.
4. Hotels
After taking a hit during the pandemic, the hotel industry has been bouncing back in Canada, with occupancy rates on a steady rise for the last couple of years.
Businesses in the hospitality industry are anticipating a rise in revenue due to this growing demand for tourism. In 2023, the hospitality industry generated $2.82 billion CAD in revenue, boasting a profit margin of 11.8%. This makes it an appealing proposition for anyone looking to start or buy a Canadian hospitality business in 2024.
Newcomers to the hotel industry will benefit from its low barriers to entry, such as minimal regulatory restrictions and smaller initial capital requirements than many other sectors. Purchasing an existing hotel business can also be a great way to get your foot in the door.
5. Campgrounds & Recreational Vehicle Parks
Campgrounds and RV parks, which accommodate campers and provide services for a fee, have seen a small increase in number over the past five years. Recreational vehicles and extended camping trips provide an alternative to international travel, which was heavily impacted by the Covid-19 pandemic.
This shift in people’s travel patterns can provide opportunities for the operators of RV parks. Although the industry saw limited growth during the pandemic, there is an expected growth in industry revenue over the next five years, reaching $4.83 billion CAD. This represents a compound annual growth rate of 4.6%, reflecting positive progress in the industry and establishing RV parks as a viable business opportunity.
6. Pet Care
If you need a small business idea that won't be above your budget, then pet care is a good option.
It's likely that there are many pet owners in your area, regardless of whether it's a bustling city or a quaint town. Pet sitting involves providing care for pets in the absence of their owners, completing tasks such as walking, feeding and giving medication.
You might be surprised to know that the average base pay for a pet sitter in Canada is about $63,468 CAD annually. One extra advantage is that many pet care businesses won’t require an office or storefront, as you’ll be caring for your clients’ pets in their homes.
If you have a fondness for furry companions and want some flexibility in your schedule, this could be the ideal business opportunity for you.
7. Financial Services
There is ample opportunity for growth in the Canadian financial services industry, which has experienced significant expansion in recent years. This is largely due to Canada's current account surpluses and the bonds it has purchased, which have attracted the attention of international investors.
One way to generate income in this field is by providing financial consulting services. If you have experience in accounting, taxation, or other kinds of financial management, offering your advice for a fee is a profitable business strategy. By offering these services online, you can also reduce overhead expenses such as rent and utilities.
The financial services industry plays a crucial role in Canada, with approximately 408,000 people employed by 17,000 companies. The sector also contributes around $110 billion CAD to the country's GDP.
8. Freight Transportation
Launching a freight transportation firm in Canada can provide a promising opportunity for a successful career. Significant numbers of people are willing to pay freight charges for the shipping of luxury items from abroad such as computers, jewelry, precious metals and cars. This has made freight transportation a viable investment opportunity.
Mordor Intelligence predicts that the global freight and logistics market is expected to reach a value of $10.13 trillion CAD in 2029. During the projected period from 2023 to 2029, there is an expected compound annual growth rate (CAGR) of 4.70%.
Conclusion
If you’re about to embark on the exciting journey of becoming a business owner, there are three things you should keep in mind. Make sure to thoroughly research the industry, competition, and any current market trends before diving in. Having a robust understanding of the terrain allows for better preparation and informed decision-making when facing obstacles. The BusinessesForSale website can help you discover a wide selection of profitable businesses ready for acquisition.
Assess your financial readiness for the undertaking. Consider the initial investment, the ongoing expenses, and any fluctuations in revenue. In order to navigate through uncertain times and ensure long-term sustainability, it is crucial to have a carefully crafted financial strategy. Take a moment to review our financing access guide.
Choose a career path that aligns with your passions and abilities. Being resilient is crucial for entrepreneurs, and a genuine passion for your work will help you stay dedicated through both the ups and downs. When confronted with challenges, it's important to remain flexible, adjust accordingly, and persevere.
Are you ready to start a new business in Canada? Then, we recommend you read our start-up guides.
Helpful FAQs
1. What are the most profitable businesses in Canada?
The most lucrative businesses in Canada can differ, but sectors such as real estate, financial services and e-commerce have demonstrated impressive performance.
2. What kind of online business is most profitable?
E-commerce, digital marketing agencies, and software development are highly lucrative online ventures.
3. What small business has the highest profit margin?
Service-based businesses like catering, financial services, and hospitality can be lucrative small businesses, with the potential for high profit margins.
4. What is the easiest business to succeed in?
The business that is most likely to lead to success varies depending on your unique skills and interests. However, ventures that prioritize providing services or franchises are often seen as more approachable options for those starting out.