2018-02-27 14:03:02Business IdeasEnglishTurn your passion into a lucrative career by starting your own small business in Canada. Learn the top industries in which other Canadian...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/02/Entrepreneur-Partners-Discuss-Successful-Canadian-Business-Industries.jpg5 Most Profitable Small Business Opportunities in Canada

5 Most Profitable Small Business Opportunities in Canada

4 min read

Canada has recovered from the global recession of the late 2000s and early 2010s, creating 3.1 percent economic growth in 2017 and tremendous opportunity for entrepreneurs looking to start a small business. Whatever your background is, with the right vision and work ethic, you can find a profitable business opportunity that fits your unique skill set. These five industries are worth thinking about if you’re starting a new venture.

Transportation and Storage

The transportation and storage industry comprises passenger transportation services and the shipping of goods, as well as warehousing and storing products. One nice thing about this industry is you can start small, purchasing a single truck and soliciting a handful of customers, then you can easily expand by hiring more drivers and putting more trucks on the road as your customer base grows.

Don’t think you have to limit your services to trucking. Transportation companies are making money on Canada’s waterways, too. Storage is another option that allows you to start small, renting a modest warehouse space and growing at your own pace.

According to the Canadian government, more than 86 percent of small- and medium-sized enterprises engaged in transportation and storage are profitable as of 2016, with average yearly revenues exceeding $279,000.

Waste Management and Remediation

An unavoidable by-product of a growing economy is the accumulation of waste; as businesses expand, more paper gets used, old electronic devices get tossed in favor of newer models, construction debris piles up from adding new office space, and so on. It’s not great for the environment, and thankfully more businesses every day are accepting their role in promoting a sustainable future for all people and taking proactive steps to curb waste production. Waste is never going away, meaning there’s plenty of opportunity for environmentally conscious entrepreneurs to help the planet and make a nice profit doing it.

Over 86 percent of small- and medium-sized enterprises in this industry turned a profit as of 2015.

Professional Services

Do you have a professional skill, such as accounting, marketing, management consulting, or conducting scientific research? If so, you might consider starting a small business in which you sell your own knowledge and expertise as human capital. If you can help businesses save on taxes, streamline their accounting and payroll processes, improve their managerial strength, or innovate new products, you can find clients to pay you handsomely for your skills and know-how.

Another benefit of a professional services business is that if you are a lifetime learner, you can constantly update your skill set to ensure you remain in demand no matter which direction the economic winds shift or what new technology comes down the pike.

As of 2015, small- and medium-sized professional services enterprises are doing well in Canada, with nearly 89 percent of them profitable and their average annual revenue tipping the scales at nearly $260,000.

Real Estate

Another corollary of a flourishing economy arises from people buying and renting houses, condos, and office space. As businesses grow and expand, they need new workers to fill open positions. Some of these workers are recruited from afar, moving to the city and putting down roots to start their new careers. Real estate professionals help people buy and sell properties, manage rental or investment real estate, and serve as intermediaries between buyers and sellers. If you enjoy keeping your fingers on the pulse of your local market and you’re good with people, a real estate business might be your ticket to a lucrative career.

Real estate businesses in Canada tend to be profitable; 85 percent made money in 2015, pulling in an average revenue of $181,000. Almost all Canadian real estate enterprises are small- to medium-sized enterprises, as fewer than 1 percent have more than 99 employees.

Fitness and Recreational Sports Centres

If you have a passion for fitness and a passion for people, you could turn your love for exercise and being healthy into a lucrative small business. Boutique fitness centres are springing up all over North America, giving big impersonal chain gyms serious competition as the de facto place to go for a workout. Whether your passion is CrossFit, kickboxing, martial arts, yoga, or another hot fitness trend, by picking the right location for your business and knowing how to market it, you can quickly make it a success. In 2015, the Canadian government reports, roughly 70 percent of fitness and recreational sports centres in the country were profitable. For those that did well, profits were strong, to the tune of $312,000 in average annual revenue — the highest amount of all industries profiled. The takeaway is that this industry requires a lot of dedication and hard work, but if you bring that to the table, the sky is the limit.

Starting a small business gives you the autonomy to be in charge of your own destiny and your own success, and it lets you turn your passion into a lifelong career. There are many industries in which you can succeed as an entrepreneur in Canada; the key is finding the one that is right for you.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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