In recent years, especially during the COVID-19 pandemic, home-based businesses have become increasingly popular in Canada. This development, which has been made possible by advancements in technology, is being driven by changing work cultures and increasing desire for work-life balance. Entrepreneurs can work from home easier than ever thanks to a range of digital tools and the rise of remote work.
Canadians are starting home-based businesses for various reasons, ranging from the desire to achieve financial independence to pursuing their passions. While running a business from home is not without challenges, it offers control and flexibility that traditional employment usually lacks.
If you are considering starting a home-based business, continue reading as we explore some great home-based businesses for Canadians.
Home-Based Business Ideas for Canadians
Airbnb Hosting
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| Hosts in the right locations can earn a steady income, which is often higher than earnings from traditional long-term rentals. | Some areas/buildings have strict rules on short-term rentals, and you may have to comply with licensing and zoning laws. |
| You can choose how often you want to rent your space, making it easy to fit the business around your lifestyle. | Frequently changing guests means more cleaning and maintenance, taking more of your time. |
Canadians who have a spare room or two in their home can make reasonably easy money by renting their spare rooms on Airbnb. Short-term rentals can generate significant income, especially if you live in a high-demand tourist area or a city with limited hotel options. However, if having a stream of strangers in your home does not sound appealing, you can also consider longer lets for students or business travellers. Some people also rent out whole apartments, but note that some properties and areas may have restrictions on short-term lets such as Airbnb.
Renting Tools and Party Supplies
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| People generally prefer to rent expensive tools or party supplies rather than buy them, which ensures you have a steady stream of customers. | You will need storage space to keep the rental equipment safe and in good condition. |
| This home-based business has good scalability, as you can increase your rental inventory over time. | Frequent use by different people who may not use or look after the items properly means more wear and tear and potentially more repairs and more frequent replacements. |
If you own equipment, such as tools or party supplies, you can rent them out to people who only need them for a short time and, therefore, are unwilling to purchase them. You can generate income by renting out items such as power tools, photography gear, and event decorations for individuals and businesses looking for cost-effective solutions. However, you might not want to rent out items you still use yourself, as some customers may damage the items through carelessness or incorrect use, leaving you short of equipment when you need it.
Blogging, Vlogging, and Podcasting
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| You can start with no or minimal upfront investment. For example, there are many platforms where you can start a blog for free, and many vloggers start with just their mobile cameras. | Most bloggers, vloggers, and podcasters spend a long time before they see the fruits of their labour through financial income. |
| Potential for multiple income streams through product sales, ads, sponsorships and affiliate marketing. | To succeed in this line of work requires you to post regular, high-quality content to attract and keep your audience. |
Content creation, whether through blogging, vlogging, or podcasting, has become a popular home-based business venture in Canada. Bloggers can choose from a range of platforms, free or paid, to share written content, vloggers can create and share videos on platforms such as YouTube, and podcasts can be shared on various streaming services. The different mediums allow creators to build audiences and monetise through affiliate marketing, sponsorship deals, advertising, and digital product sales. Aspiring content creators should prepare to work consistently for a while before receiving any financial rewards, as building an audience takes time and constant production of high-quality content.
Home-Based Food Business
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| There is rising demand for items such as custom-made cakes, healthy meal preparation, and homemade speciality foods. | The food industry has some of the strictest regulations in Canada, and your business may need to be licensed and inspected, which can be costly and time-consuming. |
| Entrepreneurs can start small by selling locally to individual clients, with the option to expand through online sales and partnerships with local stores. | Preparing, packaging, and delivering food items is labour intensive and time-consuming. |
If you have culinary skills, starting a home-based food business can be a financially rewarding venture. Canadians with a passion for food can sell homemade custom cakes, offer meal preparation and delivery services, or create specialty food items such as sauces and jams. With the rising demand for local, high-quality food products, home-based food businesses have strong potential but need to be prepared to navigate complex food safety licensing and regulation requirements.
Print-on-Demand
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| With a print-on-demand business, you don’t have to hold an inventory, keeping your startup costs low. | Your per-product profits are smaller compared to traditional retail. |
| This business model offers passive income potential with minimal effort required once products are uploaded. | There is a lot of competition, so you will require strong branding and unique designs combined with effective marketing to succeed. |
Print-on-demand (PoD) is a business model that can easily be done from home since you don’t have to handle any inventory yourself. You set up an online store which links to a third-party supplier who processes and sends out all orders. This is a low-risk business model and requires minimal upfront financial investment. However, you will need to invest time and effort into your designs, market research, and advertising your PoD store. Entrepreneurs can choose from a wide range of products, including t-shirts, phone cases, tote bags, and mugs to sell through platforms such as Etsy and Shopify.
Dropshipping
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| Similarly to PoD, the startup costs are low because you don’t need to buy inventory. | Another similarity to PoD is the lower profit margin than you could expect from traditional retail. |
| A low-risk business venture because you are selling products for a third party. | Your success depends on the third-party suppliers and their being reliable and staying in business. |
While there are similarities to PoD, the two business models differ because with dropshipping, you are not selling your own products. Instead, you sell products from third-party suppliers who handle inventory and shipping. This keeps your startup costs low. However, with a lot of competition, you need to spend time choosing the right niche products for a better chance of success. Your success also depends on the third-party suppliers they choose and their remaining in business. If you only work with one partner, you could end up with nothing to sell should they go out of business. To avoid this, diversify your supply partnerships.
Handmade Crafts
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| Creative individuals can profit from their passion with an increasing interest in one-of-a-kind items among Canadian consumers. | Making and selling handmade products is often labour-intensive, which makes this business model harder to scale up.
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| Opportunities to sell products both in-person and online. | You need to compete against cheaper, mass-produced items, which can be tough, especially during economically challenging times. |
If you are a creative person who enjoys handmade crafts, you can start a home-based business selling your products. Canadian entrepreneurs can create and sell, for example, handmade candles, knitted items, jewellery, artwork, and home décor. Products can be sold online on platforms such as Shopify or Etsy or in-person, for example, at local markets. This business venture allows makers to turn their passion into profit, selling to customers who appreciate the originality and quality of handmade items. The downside of this business idea is that it can be challenging to expand because this would generally require hiring help, which may not be profitable.
Homemade Pet Treats
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| Canada has a thriving pet industry with a growing number of Canadians willing to spend more on natural products for their pets. | Just like companies that make and sell food products for people, pet food companies need to comply with certain regulations and laws. |
| You can attract a dedicated customer base by offering customisable treats. | Sourcing high-quality ingredients can be time-consuming as can making the treats from scratch. |
Starting a home-based company making handmade treats for pets can be a fulfilling and profitable venture, tapping into the thriving market for pet-related products. Entrepreneurs with a passion for looking after pets can share this with other pet owners looking for high-quality natural alternatives for their pets. Products can be prepared at home and sold online, at farmers’ markets, or through local pet stores. Canadians considering making and selling pet treats, need to ensure they comply with laws and regulations, which can be just as strict as for food made for human consumption.
Pet Sitting and Dog Walking
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| Can be started with no upfront costs as the business mainly requires time and effort to start. | Potential for good profits as many pet owners are willing to pay more for reliable pet sitters and dog walkers. |
| Many pet owners need someone to walk their dogs during the working day, making this a challenging business to start if you also work full-time. | Income may be inconsistent, fluctuating based on customer demand, seasons, and number of pets being cared for. |
There are around 8.1 million domestic cats and 7.7 million domestic dogs in Canada, with many pet owners needing occasional help with their pets. If you love working with animals, you can make quick profits looking after pets while the owners’ are away or taking their dogs for walks when they are at work. This business venture is easy to start with minimal or no financial investment and it is scalable, with the option to offer additional services such as pet training or grooming. However, since you will be responsible for other people’s pets whilst they are in your care, consider taking insurance to cover yourself should anything unexpected happen.
Plant Hotel
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| You would be tapping into a niche market with low competition. | Looking after a wide range of plants can be time-consuming. |
| Requires minimal investment to get started, the main thing you need is space to accommodate people’s plants. | Demand for plant hotel services is likely to fluctuate with highest demand during holiday seasons, leading to inconsistent income. |
Canadians who have green fingers and have the space to accommodate extra plants temporarily, may want to consider starting a plant hotel. This niche market, catering to plant owners who need someone to host their plants while they are away, offers low competition and quick profits since it can be started with no upfront cost. While this business is easy to start and run, anyone interested in offering plant hotel services, need to remember they are looking after other people’s property and insure themselves for unforeseen events.
Medical Transcription
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| Consistent demand with healthcare providers constantly needing accurate transcriptions. | Healthcare providers are likely to expect you to have specialised knowledge, such as understanding medical terminology. |
| You can choose how much and when you want to work, making it easier to balance work and freetime. | This work can be very monotonous, with hours spent on typing and listening. |
Digital technologies have made it possible for Canadians to offer medical transcription services from home. The work involves listening to medical audio recordings and transcribing them into written reports. This work is generally highly confidential, involving patient histories, medical research papers, and doctors’ notes. You will need attention to detail and strong typing skills, together with knowledge of medical terminology. As a medical transcriber, you will benefit from flexible workloads and hours. While medical transcribers can earn well, your income will depend on how much work you can manage.
App Development
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| High potential for passive income once the app is ready through sales, ads, and subscriptions. | You will need technical expertise, including programming skills and experience in mobile platforms. |
| Rapidly growing market offers opportunities for both small and large app development projects. | Initially a very time-intensive process, requiring developing, testing, and troubleshooting. |
If you have the skills and knowledge to develop apps, this can be a very lucrative business venture with potential for passive income. Tech savvy Canadians can create apps for businesses, develop games, or develop their own app ideas. There is consistent demand for mobile apps with businesses and individuals relying on apps for various functions. While app development is a lengthy process, there is potential for significant profits through advertising revenue, subscriptions, and in-app purchases. However, this is a highly competitive market and success requires finding a way to stand out in a crowded market place.
Online Therapy or Counseling
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| Online professionals offering therapy or counselling can work with clients from anywhere, creating a wide potential client base. | Therapists must be licensed to practice in Canada and you must comply with privacy and confidentiality laws. |
| You can set your own hours, scheduling sessions around your other commitments, even around a full-time job. | Both you and your clients will need reliable internet access to ensure seamless therapy or counselling sessions. |
Canadians qualified to offer therapy and counselling can utilise their expertise by offering virtual sessions from home. This is a growing market, led by increasing awareness of the importance of mental health on our overall well-being. Professionals can offer support via video calls, over the phone, or even through chats in various areas such as depression, anxiety, relationships, and careers. Therapists working online must abide by the same laws and regulations as colleagues working from physical offices and have professional qualifications. In addition, service providers must ensure they are protecting clients’ privacy and personal data.
Fitness and Wellness Coaching
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| Growing demand for tailored fitness and wellness coaches with people becoming more health-conscious. | You can set your own hours and work online or in-person in clients’ homes or outdoors. |
| To build your credibility, you need to invest in certifications in nutrition, fitness, and wellness, depending on your niche. | Ensuring that clients stay with you for the long-term requires you to find new ways to challenge and motivate them. |
Fitness and wellness coaching in Canada involves guiding individuals and groups in achieving their health and fitness goals. This can include nutrition advice, workout plans, mental wellness strategies, and lifestyle coaching. There is growing interest in health, wellness, and self-care in Canada, and professionals can tap into this and offer services online or in-person. While some professionals might offer a wide range of fitness and wellness services, it can be more beneficial to narrow your focus and offer specialist advice in, for example, weight training, yoga, or mindfulness.
Subscription Box Business
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| Subscription businesses can provide consistent and predictable income. | Managing inventory and timely deliveries can become complex and time-consuming. |
| This business model is easily scalable by adding new products, offering different tiers, or expanding marketing efforts. | Keeping customers can prove challenging due to “subscription fatigue” with customers cancelling in search of something new. |
Starting a subscription box business has a lot of potential for long-term, recurring profits. It involves curating and delivering customers a selection of products on a regular basis. Entrepreneurs can tailor subscription boxes to specific niches, for example, beauty products, gourmet snacks, pet supplies, or fitness gear. Successful subscription companies offer their customers access to unique or exclusive items with an element of surprise. However, today’s customers can easily become bored with so much choice available for them, so it is important to keep your offerings fresh and interesting to keep your customers.
Benefits and Challenges of Home-Based Businesses for Canadians
Canadians who are considering starting a home-based business can look forward to several benefits that come with working from home. However, there will be challenges, too, and it is important to consider both before launching your business.
Benefits
- One of the biggest advantages is lower costs. With no need to rent office or retail space, you can save money on rent, utilities, and commuting.
- Most home-based businesses can be scheduled to fit around your other commitments. However, this depends on the type of business, for example, counselling or fitness services often have more demand during evenings and weekends.
- Canadians running a business from home can benefit from tax deductions; expenses related to running your business, such as office supplies and utilities are often partially deductible reducing your taxable income.
- Running a home-based business can improve work-life balance since you can choose when to work and how much work to take on.
- Many home-based businesses offer opportunities for future expansion and higher profits.
Challenges
- There may be restrictions on what type of business you can run from home in some areas, so ensure you check for local rules and regulations for running a business, including permits and licenses.
- Working from home can come with space issues, especially if you hold inventory or see clients at home.
- While working from home can be beneficial for work-life balance, it can also be challenging to separate work and personal life, which can in turn lead to overworking or difficulty maintaining focus.
- Running a business from home can be lonely work with limited in-person interaction.
- Depending on your niche, you may face fierce competition and finding customers requires strategic efforts and online presence.
- Proper financial management can be a challenge to many home entrepreneurs and it is often necessary to use an account or tax advisor to ensure everything is done properly.
Conclusion
In many ways, Canada is an ideal place to start a home-based business. It offers a diverse range of potential clients, excellent internet connections, and you may be entitled to financial support for your new business venture.
Many home-based businesses can be started with minimal resources and funds, making it easier to tip your toe into the world of being your own boss. However, there will naturally be challenges, too, such as finding your first clients and staying relevant in often competitive markets. But with the right business idea and strategy, home-based businesses can be profitable with potential to expand.
Sources
- Government of Canada: Starting a Business – https://www.canada.ca/en/services/business/start.html
- CRA (Canada Revenue Agency): Business Registration – https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/registering-your-business/bro-register.html
- Canada Small Business Financing Program – https://ised-isde.canada.ca/site/canada-small-business-financing-program/en
- Futurpreneur Canada – https://www.futurpreneur.ca
- BDC (Business Development Bank of Canada) – https://www.bdc.ca
- Innovation, Science and Economic Development Canada: Market Research and Statistics – https://ised-isde.canada.ca/site/sme-research-statistics/en
- Small Business Statistics – https://ised-isde.canada.ca/site/sme-research-statistics/en/key-small-business-statistics
- Canadian Industry Statistics – https://www.ic.gc.ca/eic/site/cis-sic.nsf/eng/home
