Starting a business in Canada with a modest budget of $20,000 is not only feasible but also a promising opportunity given the country’s vibrant entrepreneurial ecosystem.
And with nearly 100,000 small businesses launched annually in Canada, the landscape is ripe for innovative ideas that require minimal upfront investment.
This blog post lists 15 of the best business ideas you can start with $20,000 in 2025, tailored to Canada’s market trends, consumer demands, and economic conditions.
By the way, each idea is designed to maximize your investment while offering scalability and profitability, with practical insights to help you succeed.
Why Start a Business with $20,000 in Canada?
Canada’s economy supports entrepreneurship through government grants, a diverse consumer base, and a robust digital infrastructure.
A $20,000 budget provides enough flexibility to cover essentials like equipment, marketing, and initial inventory without requiring massive loans.
Whether you’re launching from home or a small retail space, these businesses align with current trends such as sustainability, remote work, and digital services, ensuring relevance in 2025’s market.
Read also: How to Start a Business with No Money in Canada
1. Dropshipping E-Commerce Store
Startup Cost: ~$5,000–$10,000
Dropshipping allows you to sell products online without holding inventory, reducing overhead costs. With $20,000, you can build a professional e-commerce website, invest in targeted ads, and partner with reliable suppliers.
How to Start:
- Choose a niche (e.g., eco-friendly products or fitness gear).
- Use platforms like Shopify or WooCommerce.
- Allocate funds for Google Ads or social media campaigns to drive traffic.
Growth Potential: Scale by expanding product lines or targeting international markets. Canadian consumers spent over $50 billion online in 2024, making this a lucrative option.
2. Digital Marketing Agency
Startup Cost: ~$3,000–$8,000
Businesses across Canada are seeking online visibility, and a digital marketing agency can offer services like SEO, social media management, and content creation.
How to Start:
- Invest in a professional website and tools like SEMrush or Hootsuite.
- Hire freelancers initially to keep costs low.
- Network with local businesses in cities like Toronto or Vancouver.
Growth Potential: High demand ensures recurring clients. With a 10% profit margin, you could earn $50,000+ annually within a year.
3. Mobile Coffee Cart
Startup Cost: ~$15,000–$20,000
Almost 75% of surveyed Canadians drank coffee in the last 24 hours.
In fact, the coffee market in Canada is worth more than USD$18 billion. Regular Canadian coffee drinkers consume almost 3 cups per day.
So, yes, Canadians love their coffee, and a mobile cart can serve busy urban areas or events with lower costs than a full café.
How to Start:
- Purchase a used cart or trailer.
- Secure permits and health certifications.
- Source quality beans from local roasters.
Growth Potential: Expand to multiple carts or a fixed location as profits grow. Events like festivals can boost revenue significantly.
4. Pet Grooming Service
Startup Cost: ~$10,000–$15,000
Pet ownership is rising, with Canadians spending $9 billion on pets in 2024. A mobile or home-based grooming service caters to this demand.
How to Start:
- Invest in grooming tools, a van (for mobile services), and training if needed.
- Market through social media and local pet stores.
- Offer add-ons like nail clipping or pet spa packages.
Growth Potential: Build a loyal client base and scale with additional groomers.
5. Online Tutoring Platform
Startup Cost: ~$5,000–$10,000
The demand for online education is soaring, especially for SAT prep, language skills, and STEM subjects.
How to Start:
- Create a website with booking and payment features.
- Use Zoom or similar platforms for sessions.
- Market to parents via social media and school partnerships.
Growth Potential: Tutors can earn $30–$100/hour, and scaling to a team can generate six-figure revenue, as seen with companies like SoFlo SAT Tutoring.
6. Local Lead Generation Business
Startup Cost: ~$3,000–$7,000
Businesses pay for leads in niches like plumbing or tree care. You create websites that rank locally and earn commissions.
How to Start:
- Learn basic SEO and website building (WordPress is ideal).
- Target small businesses in your area.
- Reinvest profits to build more sites.
Growth Potential: A single site can earn $500–$2,000/month passively, with low maintenance costs.
7. Event Planning Service
Startup Cost: ~$5,000–$10,000
Weddings, corporate events, and festivals are back in full swing, with Canada’s event industry valued at $3 billion.
How to Start:
- Build a portfolio website and network with vendors.
- Invest in event management software like Eventbrite.
- Start with small events to gain experience.
Growth Potential: Charge $1,000–$5,000 per event and scale by hiring staff.
8. Craft Business (Handmade Goods)
Startup Cost: ~$2,000–$8,000
Handmade jewelry, candles, or art appeals to Canada’s growing sustainable consumer base.
How to Start:
- Source materials in bulk to save costs.
- Sell on Etsy, at local markets, or via a personal website.
- Use Instagram for visual marketing.
Growth Potential: Successful craft businesses like Stencil Stop earn $100,000+/month by scaling production.
9. Fitness Coaching (Online or In-Person)
Startup Cost: ~$5,000–$10,000
Health-conscious Canadians are investing in personal training, both virtually and in-person.
How to Start:
- Get certified (e.g., CanFitPro).
- Set up a home gym or use public spaces for classes.
- Offer virtual sessions via Zoom.
Growth Potential: Charge $50–$150/hour and expand with group classes or online courses.
10. Cleaning Services
Startup Cost: ~$5,000–$10,000
Residential and commercial cleaning is always in demand, especially in urban centers like Calgary or Montreal.
How to Start:
- Buy equipment (vacuums, eco-friendly supplies).
- Market to offices, Airbnb hosts, and homeowners.
- Hire part-time staff as demand grows.
Growth Potential: Recurring contracts can yield steady income, with potential for franchise opportunities.
11. Photography Business
Startup Cost: ~$10,000–$15,000
Weddings, family portraits, and corporate events drive demand for professional photography.
How to Start:
- Invest in a quality camera, lenses, and editing software.
- Build a portfolio through free or low-cost shoots initially.
- Promote via Instagram and local networks.
Growth Potential: Photographers charge $1,000–$5,000 per event, with room to scale by hiring assistants.
12. Vending Machine Business
Startup Cost: ~$10,000–$20,000
Vending machines generate passive income in high-traffic areas like malls or offices.
How to Start:
- Purchase 2–3 machines (used or new).
- Secure locations through negotiations.
- Stock with popular snacks or drinks.
Growth Potential: Each machine can earn $200–$500/month, with minimal upkeep.
Read also: How to Start a Vending Machine Business in Canada: Complete Guide
13. Freelance Writing Services
Startup Cost: ~$3,000–$7,000
Businesses need content for websites, blogs, and marketing, creating steady demand for writers.
How to Start:
- Create a website to showcase samples.
- Hire freelance writers to scale projects.
- Join platforms like Upwork or pitch directly to Canadian companies.
Growth Potential: Charge $50–$200/hour, with potential for six-figure revenue by managing a team.
14. Green Consulting Service
Startup Cost: ~$5,000–$10,000
Canadian businesses are prioritizing sustainability, and consultants help them adopt eco-friendly practices.
How to Start:
- Gain expertise through online courses or certifications.
- Market to small businesses and startups.
- Use digital tools for remote consulting.
Growth Potential: Charge $100–$300/hour, with opportunities in government contracts.
15. Home-Based Bakery
Startup Cost: ~$10,000–$15,000
Specialty cakes, vegan pastries, or gluten-free treats cater to Canada’s diverse food preferences.
How to Start:
- Equip a home kitchen with commercial-grade tools.
- Obtain necessary permits (e.g., food handler’s certificate).
- Sell online or at farmers’ markets.
Growth Potential: Build a brand and expand to wholesale or a storefront as demand grows.
Tips for Success with a $20,000 Business in Canada
- Write a Business Plan: Outline your goals, budget, and marketing strategy. Resources like CanadaStartups.org can guide you.
- Leverage Government Funding: Explore grants like the Canada Small Business Financing Program to stretch your budget.
- Focus on Digital Presence: A professional website and social media are crucial for visibility.
- Start Small, Scale Smart: Reinvest profits to grow without overextending financially.
- Network Locally: Join chambers of commerce or BNI groups in cities like Ottawa or Halifax to build connections.
The Role of a Strong Online Presence
No matter which business you choose, a professional website is your digital storefront in 2025. It builds credibility, attracts customers, and supports sales.
That’s where Truehost.ca comes in. Offering affordable and reliable web hosting services, Truehost.ca ensures your site runs smoothly with fast load times, 24/7 support, and robust security.
Whether you’re launching a dropshipping store, showcasing your photography portfolio, or promoting your cleaning services, Truehost.ca’s hosting plans start at budget-friendly rates, leaving more of your $20,000 for marketing and growth.
Visit Truehost.ca/web-hosting/ to get started and give your business the online edge it needs to thrive in Canada’s competitive market.
Read also:
- 11 Best Businesses to Start with $10,000 in Canada
- 11 Best Online Businesses to Start in Canada
- 12 Profitable Business Ideas to Start with $200K in Canada
