The first step to starting a business in Canada, or anywhere else, is making sure your business idea has the potential to generate a profit. There is a lot of competition, so taking the time to do research can definitely pay off down the line.
Consider how your business will stand apart from the rest, your target group, how much money you will need, and the source of funding.
Most lucrative businesses in Canada
Catering, cleaning, car washing, and marketing consulting are some of the most lucrative businesses in Canada. Catering can be launched with a small investment. There will always be someone in the neighborhood throwing a birthday party, celebrating a wedding, or organizing a small get-together. If you like serving and have a passion for cooking, this could be the perfect business.
You can launch a cleaning business in all sorts of niches – windows, offices, home cleaning, air duct cleaning, etc. This service business is relatively simple, and you can scale up easily by growing a loyal customer base and hiring staff.
People can start a mobile car washing business in Canada with as little as $25,000. Car washing is a great initiative for people who want flexibility and freedom and have a passion for cars.
If you can bring experience in marketing or advertising to the table, a marketing consulting business is worth considering.
No matter what business you choose, you’ll need a website, and fast web hosting in Canada is an absolute must. It would also help to research the market to identify your target group and grasp its desires and needs.
Think about financing
Sources of financing for a startup in Canada include bank loans, credit cards, angel investors, venture capital firms, grants, and friends or relatives. Each has its pluses and minuses. Money from friends or your loved ones might come with very few conditions, but it’s usually not enough to fund your business fully.
- Pro: Low interest
- Con: You need to repay it in monthly installments
- Pro: Will typically share experience and know-how
- Con: They might ask you to relinquish business ownership
- Pro: no need to repay
- Con: Hard to get
- Pro: Easy source of funding
- Con: High-interest rates
Venture Capital Firms
- Pro: More risk-tolerant
- Con: Expect high returns
Choose a Business Structure
The most common business types in Canada are sole proprietorships, partnerships, and corporations. Below are the pluses and minuses of each type.
It’s easy to create a sole proprietorship, which is very informal, making it the most popular business type among budding entrepreneurs. However, you’ll be personally liable as the owner for all debts and operations of the business.
Partnerships have no legal structure either, but the partners typically have an arrangement governing how revenues, costs, and tasks are shared and distributed. You don’t get to make all the decisions yourself.
Incorporating a company offers some liability protection from corporate debt, and the company’s name is protected as well to some extent. The minus is that establishing a corporation involves startup and ongoing expenses for accounting and legal fees.
Canadian businesses have to register for the GST/HST if their total taxable revenue in a fiscal quarter is over $30,000, and they provide taxable services and property in the country.
Permits and Licensing
You might need a permit or a license depending on your business activity. The government website BizPaL can help you find the licenses and permits you need to start and operate your business. You can filter permits based on your activities, market, and location and save the relevant ones.