If you are thinking about buying a business, one of the first questions you may ask is: What are the most popular businesses to own?
The answer depends on your goals. Some businesses generate high profit margins. Others produce strong cash flow and owner earnings. Some offer recurring revenue and stability, while others have significant growth potential.
In Canada, many entrepreneurs are looking beyond startups and choosing to buy established businesses. If you’re considering an acquisition, our guide on how to buy a business step by step explains the entire process from search to closing.
Purchasing an existing business often provides immediate revenue, an existing customer base, trained staff, and proven systems.
Service based businesses, professional services, trades, manufacturing, transportation, and recurring revenue businesses continue to rank among the most attractive opportunities for business buyers.
Understanding Profit Margin vs Owner Earnings
Before looking at the most popular businesses, it is important to understand two key metrics.
Profit Margin
Profit margin measures how much of every dollar earned becomes owner profit or discretionary earnings.
For example:
- Revenue: $1,000,000
- Owner Profit: $250,000
- Profit Margin: 25%
Higher profit margins often indicate efficient operations and lower overhead costs.
Owner Earnings (Cash Flow)
Owner earnings, often called Seller’s Discretionary Earnings (SDE), represent the cash flow available to the owner after expenses. If you’re unfamiliar with this metric, read our guide on EBITDA vs Adjusted EBITDA (SDE).
Many business buyers focus more on owner earnings than revenue because cash flow determines how much money the owner can actually take home.
A business generating $5 million in revenue may be less attractive than one generating $1 million if the smaller business produces more owner cash flow.
Top 20 Popular Businesses to Own
The following table combines profitability data, owner earnings trends, and buyer demand across North America and Canada.
| Business Type | Typical Profit Margin | Estimated Median Owner Profit (CAD) | Why Buyers Like It |
|---|---|---|---|
| Vending Machine Business | 56% | $80,000 to $150,000 | Low overhead, semi passive |
| Software and App Company | 55% | $150,000 to $400,000 | Highly scalable |
| Insurance Agency | 50% | $150,000 to $350,000 | Recurring commissions |
| Accounting Practice | 50% | $120,000 to $300,000 | Stable client base |
| Pest Control Business | 47% | $150,000 to $300,000 | Recurring contracts |
| Funeral Home | 41% | $200,000 to $400,000 | Consistent demand |
| Commercial Laundry | 38% | $150,000 to $350,000 | Contract driven revenue |
| Dry Cleaner | 38% | $100,000 to $250,000 | Repeat customers |
| Car Wash | 37% | $100,000 to $300,000 | Limited staffing needs |
| Banking and Lending Business | 37% | $950,000+ | High value transactions |
| Laundromat | 37% | $100,000 to $250,000 | Predictable cash flow |
| Law Firm | 35% | $150,000 to $400,000 | Professional services |
| Truck Stop | 20% to 25% | $1.7M | Massive revenue volume |
| Towing Company | 20% to 30% | $600,000 | Essential service |
| Heavy Construction Business | 15% to 25% | $590,000 | Strong project values |
| Trucking Company | 15% to 20% | $560,000 | Logistics demand |
| Electrical Contractor | 18% to 25% | $550,000 | Skilled trade demand |
| Manufacturing Business | 15% to 25% | $500,000 | Production scale |
| Car Dealership | 10% to 15% | $520,000 | High transaction values |
| Warehousing and Storage | 15% to 25% | $250,000 to $500,000 | Ecommerce growth |
Profit margin and earnings figures are based on industry transaction data and converted to approximate dollar ranges where applicable. Source: BizBuySell
Businesses with the Highest Profit Margins
Some businesses consistently generate exceptional profit margins because they require relatively low overhead and benefit from recurring revenue.
Vending Machine Businesses
Vending businesses often lead profitability rankings with median owner profit margins above 50%.
Why?
- Minimal staffing requirements
- Low operating costs
- Predictable inventory management
- Ability to scale across multiple locations
Software and App Companies
Software businesses benefit from a unique advantage: once the product is built, adding new customers costs very little.
Benefits include:
- Subscription revenue
- High scalability
- Global customer reach
- Limited physical overhead
Insurance Agencies and Accounting Firms
Professional service businesses often rank near the top because they generate recurring client relationships and require little inventory.
These businesses benefit from:
- Strong customer retention
- Predictable annual revenue
- Low equipment costs
- Referral driven growth
Businesses with the Greatest Owner Earnings
Profit margins tell only part of the story.
Some industries generate enormous owner earnings despite lower margins because they operate at a much larger scale.
Truck Stops
Truck stops consistently rank among the highest earning businesses.
Although margins are lower than software companies, revenue volumes are extremely high due to fuel sales, convenience stores, food services, and trucking traffic.
Median owner earnings can exceed $1.2 million USD annually.
Banking and Lending Businesses
Specialized lending businesses often produce exceptional cash flow.
Reasons include:
- Strong fee income
- High value transactions
- Recurring client relationships
- Limited inventory requirements
Construction and Contracting Companies
Heavy construction and electrical contracting businesses generate substantial owner earnings because projects are large and demand remains strong.
Canada continues to experience demand for infrastructure, housing, and commercial construction, supporting long term opportunities in these sectors.
Popular Canadian Industries Showing Strong Growth
Canadian business buyers are increasingly attracted to industries with favorable long term trends.
Warehousing and Storage
The growth of ecommerce continues to drive demand for storage and logistics facilities.
Reports also show that Canada’s warehousing and storage industry has experienced steady growth due to increased online shopping and supply chain expansion.
Skilled Trades
Businesses such as:
- Plumbing
- Electrical
- HVAC
- Roofing
- General contracting
remain highly sought after because of ongoing labour shortages and strong demand across Canada.
Healthcare and Personal Services
Demand continues growing for:
- Dental practices
- Home care services
- Physiotherapy clinics
- Child care centres
- Senior care businesses
Canada’s aging population is expected to support these industries for years to come.
What Makes a Business Attractive to Buyers?
The most popular businesses typically share several characteristics:
Recurring Revenue
Businesses with repeat customers are often worth more because future income is easier to predict.
Examples include:
- Insurance agencies
- Accounting firms
- Pest control businesses
- Software subscriptions
Strong Cash Flow
Most buyers focus on cash flow rather than revenue.
Understanding how to value a business properly can help buyers determine whether those earnings justify the asking price.
A business earning $300,000 annually for the owner may be more valuable than a larger company with lower profits.
Limited Customer Concentration
Businesses are more attractive when revenue comes from many customers rather than relying on one or two major accounts.
Growth Potential
Buyers look for opportunities where revenue can increase through:
- Marketing
- Additional locations
- New services
- Expanded territories
Conclusion
There is no single “best” business to own.
If your goal is maximum profit margin, businesses such as software companies, insurance agencies, accounting firms, and vending operations often rank at the top.
If your goal is maximum owner earnings, industries like trucking, construction, lending, manufacturing, and transportation can generate significantly larger cash flow.
The most successful buyers focus on more than revenue alone. They evaluate profit margins, owner earnings, recurring revenue, industry trends, and long term growth potential before making a purchase. Failing to assess these factors can result in buying the wrong business, even if the financials initially look attractive.
For many entrepreneurs, buying an established business with proven cash flow remains one of the fastest and most reliable paths to business ownership in Canada.
