Starting a small business in Canada can get pretty costly. But in certain situations, with different types of businesses, you may just be able to get away with starting up for under $1,000.
The video above, titled “Starting a small business for under $1,000”, will help you consider the different aspects of starting up and what is possible with just $1,000 or more.
This video is part of the small business video series, where you can learn more about starting up, building a business plan, finding funding, and more.
Starting a Small Business for Under $1,000
While this may not be applicable to every type of business, we will go through a few ideas to determine how possible it is to start your own business and how to find extra money to help you succeed.
Canada is home to thousands of entrepreneurs, with strong government support to assist small businesses.
After helping over 10,000 businesses, Canada Startups has worked with many who started with little to no money.
Key Points to Consider
The Business Idea
Not all business ideas are easy to start with little money. The key is understanding startup costs. The “Must-Have” Startup Costs
These are the essential costs required to launch your business. The Need for More Money?
More funds make things easier. There are many ways to get additional funding. Nearly everything in business has a cost—from basic supplies to equipment. However, many entrepreneurs succeed by using free tools and resources online.
The first step is determining if your idea can be launched with minimal spending.
Do You Have the Right Business Idea?
Your goal is to determine if your business can be started for under $1,000.
This amount can vary depending on the industry—some may require $5,000 or even $50,000—but here we focus on keeping costs low.
Examples Under $1,000
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At-home bakery
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Snow removal business
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Photography business
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Digital marketing agency
Examples Over $1,000
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Restaurant / Bar / Coffee Shop
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Car dealership
If your essential costs exceed $1,000, you may need additional funding.
However, creative solutions like renting equipment or starting small can help reduce costs.
The “Must-Have” Startup Costs
To determine feasibility, identify your essential expenses:
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A restaurant needs a physical location
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A limo business needs a vehicle
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A bookstore needs inventory
If your must-have costs fit within $1,000, your idea may be viable.
Must-Have vs Nice-to-Have
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Must-have: Required to operate
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Nice-to-have: Improves the business but not required
Example:
A limo is required; a second limo is optional.
Example: Photography Business
You can start with:
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A used camera
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One backdrop
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Home or outdoor location
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Free marketing via social media
Some spend $50,000—but starting lean is often smarter.
Reinvest profits as you grow.
Need More Money?
If you can’t start under $1,000, don’t worry.
You can explore funding options such as:
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Government grants
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Government loans
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Tax credits
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Bank financing
The Canadian government supports small businesses to help grow the economy.
Final Thoughts
If your costs align, you can start with minimal investment and grow over time.
If not, funding options are available to help you get started.
Canada Startups experts can guide you through the process.
If you found this helpful, explore more videos in the series: