People often think that starting a business in Canada requires a lot of capital. While it is true that some business ventures require large investments to get off the ground, there are plenty of business ideas that can be started with very little and even with no money at all.
In this article, we highlight low-investment business ideas for Canadians, starting with those that require no money upfront. These business ideas rely on your skills and creativity instead of cash to generate income. Whether you want to make some extra money or escape your 9-to-5 job, let these ideas inspire you to launch your own business.
Why Are Low-Investment Business Important in Canada?
Low-investment business opportunities have always been important for the Canadian economy. In fact, a large majority of Canadian companies are small and most likely were started with little or no initial capital. According to the Business Development Bank of Canada over 73% of Canadian businesses have fewer than 10 members of staff, while over half, 55.3%, have up to four employees. But opportunities to start a business with low financial investment is not only important to the economy, it is also important to individual Canadians.
Importance to Canadian Economy
- Low-investment businesses have a lower barrier to entry, thus encouraging entrepreneurship and innovation.
- Many low-investment businesses grow to hire staff, which creates jobs at the local level. Solo entrepreneurs also support job creation by hiring, for example, bookkeepers or virtual assistants.
- Low-investment businesses can help generate income within rural and underserved areas and support economic activity in locations often overlooked by large companies.
- Businesses that require little financial investment can be more resilient during economic downturns thanks to lower overheads.
- Low-investment businesses help to diversify the Canadian economy and encourage multiple paths to grow.
Importance to Individuals
- Low financial risks allow Canadians to try out their business idea without the fear of losing significant amounts of money.
- Enables people from diverse backgrounds without significant financial resources to start their own business venture.
- Low-investment opportunities are often flexible; they can be started small to test ideas and scaled at the owner’s preferred pace.
- They can support financial independence and build wealth, especially with rising living costs.
- Many low-investment business ideas can be executed remotely, meaning you are not tied to a single location.
- Because low-investment business ideas have lower startup and running costs, they can become profitable faster, even within weeks.
- Starting a low-investment company allows the entrepreneur to have full control over what direction they want to develop their business, their pricing and operations.
Low-Investment Business Ideas for Canadians
Below, you will find suggestions for businesses that can be started with low funds, starting with ideas for Canadians who prefer to invest no cash into a business idea. However, budding entrepreneurs should note that while these ideas require no or little monetary investments, they require time and effort to grow and ensure regular income.
That said, as long as you are ready to put in the hard work and by choosing an idea that corresponds with your interests and skills, these business ideas can be turned into profitable long-term ventures.
No-Investment Business Ideas
Businesses that require no upfront cash investment rely on your time, skills, and dedication. They often leverage existing resources such as your computer, internet access, and expertise.
Freelancing
Key benefit: Offers flexibility in terms of workload and schedule, making it an easy business to start alongside your regular job.
If you have skills such as writing, web development, graphic design, translation, or video editing, you can offer your services as a freelancer. By using platforms designed for freelancers, Canadian freelancers can find clients not just within Canada, but globally. Most freelance platforms allow you to create a free profile and connect you with clients with no upfront cost. In return, they will take a percentage of your earnings.
The key to success as a freelancer is building a strong portfolio, networking to attract clients, and offering competitive rates. However, when working out your rates, it is important to estimate how long the work will take you to complete and set the price accordingly. Over time, you have the option to scale your business by increasing your rates, specialising in niche markets, hiring subcontractors to help with larger projects, or even starting your own agency.
Online Tutoring
Key benefit: You can help others while earning money.
Canadians with a teaching background or expertise in a specialist subject can make money by teaching others online. While a teaching background can help, it is not necessary as long as you have proven expertise in the field you want to teach, especially if your target audience consists of adults. Tutors with school experience can provide extra support in school-related topics, while popular subjects among adult learners include foreign language and computer-related topics.
The easiest way to get started is to create yourself a profile on a tutoring website to allow potential clients to find you. Do your homework before you set your rates and keep them in line with others offering similar topics. Too low and it may lead clients to doubt your credibility, too high and they will go elsewhere. Note that you may face a lot of competition so consider carefully what you can offer your clients that makes you stand out.
Print-on-Demand Online Store
Key benefit: With no inventory to manage, you get to focus on being creative.
Print-on-demand (PoD) is a business model where you create custom designs that are then printed on to your chosen products, such as t-shirts, hats, and mugs by a third party. This type of business can be started with no upfront spending by using platforms that allow you set up a free account and connect with the third party service that handles the printing and shipping for you. You only pay when a customer places an order.
Successful PoD stores sell unique designs printed on good-quality materials. They also know how to drive traffic to their online store by effective marketing, for example, on social media, blog, or vlog. Note that while you can start a PoD business with no upfront cost, paying for certain services, such as promoting your listing or advertising on social media, can help you start selling faster.
Social Media Manager
Key benefit: You can choose your hours and get to work with interesting clients and help them grow.
In today’s world, businesses and personal brands need a strong presence on social media, but not everyone has the skills or time to manage their social media accounts effectively. As a social media manager, you would be helping your clients grow their social media presence by creating engaging content and running ad campaigns.
New social media managers can start by offering their services to relatively new influencers, small businesses, and start ups. You can grow your own business as you help your clients grow theirs. Over time, you can scale your business venture by offering additional services such as paid advertising and branding. You will also be able to increase your rates as your reputation grows.
Affiliate Marketing
Key benefit: Once set up, offers potential for passive income that requires minimal maintenance.
Affiliate marketing is a business model that requires no inventory. Instead, it involves promoting other companies’ products through referral links and earning commission for sales made through your links. Products and services can be promoted on blogs, YouTube channels, and social media accounts.
While this business can be set up with no cost to you, for most people it will take considerable effort and time before they start making a decent income from affiliate marketing as results depend on the number of people you get to view your blog, vlog, or social media posts in the first place. You can increase your chances of success and build an audience faster by carefully choosing your niche. It should be something you are passionate about to write, vlog, or post about consistently.
Low-Cost Business Ideas (Under $1,000 Investment)
For Canadians willing to invest a small amount of money, there are numerous opportunities that require less than $1,000 to get going. These business ideas generally require you to purchase tools, materials, or equipment, whilst still maintaining a low financial risk. Here are five low-cost business ideas that can start small with good potential for growth.
Pet Sitting & Dog Walking
Key Benefit: Earn money while spending time with animals.
Canadians are pet-loving people with many owners needing regular help walking their dogs or occasional pet sitting services during vacations. You can offer pet owners services such as walking, feeding, and overnight stays, with no upfront cost, except for transport if picking dogs up by car for their walks.
Since dog walking and pet sitting will be a localised business venture, you can market your services online through neighbourhood discussion groups. You can also put up leaflets in local stores, cafes, libraries, and other gathering places. Often word-of-mouth is one of the most beneficial forms of marketing in services such as this. Options for growth include offering additional services such as pet training or hiring staff to manage more pets.
Dropshipping
Key benefit: You don’t need to manage inventory or handle any shipping.
If you enjoy selling, you can try your hand at dropshipping. With dropshipping, you run an online store but you don’t handle inventory or shipping. With dropshipping, you sell products by a third party who handles shipping for you. While this eliminates the need to pay for stock, you need to invest in an online sales platform. How much that will cost you depends on the platform and which tier you choose (many platforms offer different tiers with increased benefits for more expensive options).
Entrepreneurs who like the sound of dropshipping need to be aware that there is a lot of competition. Therefore, to increase your chances of being noticed and making a profit, you need to choose a profitable niche, make your online store visually appealing and easy to use, and market your products, for example, on social media. Once successfully set up, dropshipping offers good potential for passive income and scaling with a wider range of products.
Resume Writing and Career Services
Key benefit: Always in high demand and very low starting costs (with a no-cost option)
This business idea combines marketing and writing skills and would suit people with some experience of working in recruitment or human resources. Many talented people struggle to present themselves successfully on paper or online (for example, LinkedIn profiles), which can lead to them missing out on job opportunities.
To get started, you will need a computer and internet connection. You may also need some templates or design software, which will require small financial investment from you. However, if you also have strong design skills, you may prefer to skip these and start with no financial cost to you at all. You can start by simply offering resume or profile writing and expand by offering comprehensive packages including resume writing, cover letters, interview coaching, and profile revamps.
Home-Based Sewing and Alterations Service
Key benefit: Low setup costs and high demand for custom tailoring, especially in affluent areas.
If you know how to use a sewing machine, you could start a sewing and alterations business in your home. Many people need their clothing repaired or resized but do not have the time or skill to do it themselves. To get started, you will need a sewing machine, a basic one will be fine, thread, some tools, and a small work space.
You can start by offering your sewing services through local Facebook or other community groups or by advertising at local notice boards, for example, at libraries or cafes. This business can be scaled by making clothes from scratch and selling them online or at local craft markets.
Mobile Car Cleaning
Key benefit: Your overheads will be lower with no physical location.
Many people love their cars but hate cleaning them, which makes mobile car cleaning service a great business idea. By offering the service at clients’ homes or offices, you also make it more convenient for them, meaning you can charge more for the work. The added bonus of offering your services at business premises is that you may be able to clean multiple cars at one location, saving travel time and cost and improving profit margins.
You will need to invest in cleaning supplies, including a vacuum cleaner, brushes, and waxes and you will need transport. However, you can save by advertising in local community groups online and by visiting companies to spread the word of your service. To expand your business, you can hire additional staff and eventually focus on the managerial side yourself.
Moderate Investment Business Ideas ($1,000 – $5,000)
Business ideas in this group usually require you to purchase equipment, software, or inventory. However, they are still relatively affordable. With the right strategy, these business ideas can be scaled quickly to increase profits.
Photography Business
Key benefit: Multiple ways to make money from your photographing skills.
If you are an amateur photographer, you could turn your hobby into a profitable business. There are different ways you can start: by selling stock images online or through event and portrait photography. You can even do both since once your images are uploaded on to a stock image website, they can start earning you passive income while you make an active income from event and portrait photography.
Your main investments when starting a photography business will involve your camera equipment and editing software. While you can upload a certain number of images for free on most stock images sites, you may prefer to pay for the service for more visibility and to upload more images. Over time, you can scale your business in various ways, including video services and in-person or online photography workshops and tutorials.
Gardening and Landscaping
Key benefit: Steady demand for recurring services, especially in suburban areas.
If you enjoy gardening and landscaping, you can start your own gardening business. Of course, the feasibility of this business venture depends on your location: areas with houses with large gardens and longer summers offer the best opportunities. Since this work is seasonal in all of Canada, you can switch to snow removal services during winters.
To start a gardening and landscaping business, you will need to invest in equipment including a lawnmower (unless all your clients can provide you with one), trimmer, and rake. You will also need transportation to get to your clients’ homes. Reliable gardeners and landscapers can often charge premium rates, and while the work may be seasonal, you have the opportunity to build recurring revenue during the summer with customers’ gardens needing regular maintenance.
Online Store
Key benefit: Ability to reach a global audience and easily scalable.
If you have capital to invest into your business, you could start an online store selling physical products. The benefit of this business model over dropshipping or print-on-demand is that you get to keep a larger share of the profits. However, it also means taking a bigger risk by investing in items to sell. You also have to handle the shipping, which can be time-consuming.
You can maximise your chances of success by choosing a popular niche. For example, many Canadians are searching eco-friendly or handmade alternatives to mass produced goods shipped from, for example, China. However, there is a lot of competition and you need a good marketing strategy to drive traffic to your online store. Scaling options for your online store include expanding your product lines, selling internationally, and even opening a physical store.
3D Printing Services
Key benefit: You would be tapping into a growing market for on-demand, custom-made products.
If you can operate a 3D printer, you can start a business offering 3D printing services. 3D printing business can be run from home, requiring only minimal space and you can offer your services to inventors, hobbyists, and small businesses. You can print items such as models, parts, prototypes, and personalised items.
Your biggest investment will be the 3D printer. While some 3D printers are available for less than $1,000, you will want to invest in a high-quality printer to order your customers high-quality products. You will also need to purchase filament materials and modelling software. Scalability options include offering more advanced printing and design services.
Mobile Escape Room
Key benefit: This unique entertainment option has strong appeal for team-building and events.
A mobile escape room is a unique business idea that would suit Canadians who are creative thinkers, love storytelling, and event planning. While traditional escape rooms require a physical location, with a mobile option you can bring the excitement to your clients, which can include schools, businesses, and private parties.
The costs you will need to cover upfront include your transportation, and developing the puzzle-solving games and additional props. However, the costs are considerably lower than running an escape room in a physical location. You have the option to charge per session or you can offer packages with different themes for different group sizes.
A Few More Words to Finish
Starting a business in Canada with low or no upfront investment is an achievable goal, with a variety of business ideas to choose from. You can start a successful company with minimal capital by focusing on your skills and expertise and gradually expanding as you generate revenue.
The key is to choose a business that you feel passionate about and that has market demand. By starting with minimal cash investment, you can test ideas without big risks, and reinvest your profits. If you have been dreaming about your own business, why not start with one of our low-investment ideas for Canadians.
Sources
- Canada Business Network – https://www.canada.ca/en/services/business/start.html
- BDC – https://www.bdc.ca
- Futurpreneur Canada – https://www.futurpreneur.ca
- BDC: Facts about small businesses – https://www.bdc.ca/en/articles-tools/business-strategy-planning/manage-business/10-things-didnt-know-canadian-sme?utm_source=chatgpt.com
- BDC: How to start a business – https://www.bdc.ca/en/articles-tools/start-buy-business/start-business/small-business-ideas-starting-own-business
- Quickbooks – https://quickbooks.intuit.com/global/resources/starting-a-business/how-to-start-a-business/
- Starter Story – https://www.starterstory.com/home-based-business-ideas-canada
