If you’re considering online entrepreneurship, one of the first challenges is deciding which type of business you want to start. There is much talk about choosing a niche, but that only narrows down the options. If you start searching blindly, you’re instantly drowning in repetitive, outdated, and unreliable information.
Like most things online, expert insider information (when you can find it) will guide you to the most helpful corners of the internet. These are the same resources successful online entrepreneurs use to inspire and inform their own business ideas. The accompanying insights are actionable and the strategies are tried, tested and true.
What to Consider Before Choosing an Online Business
Have you decided on your online business model?
In the digital world, there are three primary types of products you can sell, digital products, digital services or physical merchandise. We’ve found the secret to success is to combine business models, but it isn’t necessary to do that to build a profitable online business.
Deciding now allows you to narrow down the possibilities and save time considering businesses that don’t fit your business model. Once you’re familiar with what’s out there, you’ll find yourself coming up with ideas that work well for your business.
Models are continuously evolving so keep your eyes pealed. For example, online franchises and hybrids are now a thing.
“The franchise industry in Canada is on the cusp of transformative change in 2025, driven by economic shifts, technological advancements, and evolving consumer preferences,” writes Sherry McNeil, President & CEO, Canadian Franchise Association. “Online and digitally savvy franchise systems are particularly well-positioned to thrive in this environment, offering consistency, flexibility, scalability, and resilience. Franchise brands like MrTaxes.ca, Megamind Learning Centre, and The UPS Store Canada are poised for success by leveraging online services to meet consumer demands and adapt to emerging trends.”
What restrictions do you have?
Are there laws or policies to comply with? Do you need a business that doesn’t require shipping? What is your budget?
Can you make it profitable?
When you’re at the idea stage, there’s no need to go into a big market or profitability analysis for every lightbulb flash. That said, it helps to know from the start if the idea has at least some profit potential. Keep a few tools handy for quick profitability analysis, such as the Small Business Profitability Calculator. It’s a free online tool for Revenue, Costs & Profit analysis.
8 Ways Experts Find Profitable Online Business Ideas
The following resources and strategies to find profitable online business ideas are based on 25 years of owning them myself, and working with clients. They’re what works best for myself and my mentors time and time again. Try them all to determine what works best for you, then come back and let us know which online business you’ve chosen in the comments below.
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1. International Online Businesses
Canada has been much slower to start online businesses than our American or UK counterparts. There are few upsides to that, but one of best opportunities it presents is a less saturated market. Once you’ve narrowed down the niches you’re interested in, start searching for related businesses in other countries.
You can ‘Canadianize’ ideas based on successful international businesses. Did you find anything that hasn’t been done in Canada? Can you change it up and make it fly in this country? Is it something that will keep you fired up?
2. Marketplaces
Online Business-to-Business (B2B) and Business-to-Consumer (B2C) marketplaces often provide a list of their best sellers, or otherwise categorize their most popular products. Dive into their categories and you’ll come up with even more business ideas. Think deeper! If a vitamin is trending, can you develop information products around it and related health conditions? Are there companies with affiliate programs that you could promote? Are there similar products you could dropship?
Speaking of dropshipping, drop shipper marketplaces often feature their best sellers, which are determined by your wholesaling peers. AliDropship Insights, for example, provides free access to a huge database of bestselling products (AKA ideas). Additionally, there’s no safer way to test product potential than dropshipping.
Marketplaces are also an endless source of inspiration if you develop your own products from scratch or bundle items into a unique offering. Additionally, you’ll come up with similar products, accessories or consumables to sell so you can ride the trend with less competition. If you use wholesale sources, you’ll also be able to find products that are gaining popularity but aren’t saturated yet.
Kick it into the stratosphere with powerful tools developed specifically to research and analyze the Amazon marketplace, such as Junglescout.
Start with these 7 Online Marketplaces for Profitable Product Ideas.
3. What’s Trending that has Staying Power?
Once you have defined your niche, the latest news and trends will be a treasure chest of product and content ideas. Try to identify which trends have staying power and how they might impact each online business idea. Subscribe to newsletters and magazines and pay attention to the advertisements. Many trade magazines are available free of charge to Canadians.
Crowdfunding platforms are often overlooked, but they’re invaluable for trend spotters. ‘Popularity’ is approached from an entirely different angle. These are people who love an idea so much they’re willing to support its launch and preorder. Kickstarter is one of the most well known and largest crowd-funding platforms. Search by popularity, staff recommendations, funding status and more with their advanced search options in Kickstarter Discover. You’re not there to steal ideas. The goal is to find something related (or with similar potential) to the most popular products and businesses.
TIP: Check out all of those award & ranking lists you see for trendy inspiration, such as those compiled by The Globe and Mail.
While you’re following new trends, think of how they could be used to refresh old ideas too. For example, there may be new tech that’s taking the same target market in a new direction, such as AI, SaaS, or an app.
4. Job Listings
Check out the larger job listing platforms for online service business ideas. You can find out what skills businesses are looking for and decide if you can provide it as a contracted service. Additionally, you can determine which skills you’ll need to acquire to provide a full service package, or a more complete one that sets you above your competitors. Udemy has plenty of affordable courses if you need to upskill.
You can also have a look at the freelancer platforms, such as Freelancer.com. Freelancing platforms often publish reports with demand data as well, making it an even more valuable resource.
5. What Do You Love?
Since the ideal business is one you love to operate and promote, starting there makes perfect sense. Search your passions from the perspective of an entrepreneur. What are your favourite brands and websites? Why do you love them? Where do they come up short? Is there a neglected niche?
Take a look at what you love at work too. Is there a certain task or position you enjoy most? Are you constantly thinking of better ways of doing related things? Have you thought, “there should be an app for that?” Is there anything there you could turn into a business? Or merge with another online business idea?
6. What’s Your Problem?
Using your own challenges for inspiration comes with a bonus: inside information. You already have a good idea of what others might be looking for because you’ve searched for it yourself. If you found it difficult to find the information or product you were looking for, odds are a lot of other people are having the same problem.
“What have you found yourself Googling extensively,” asks Ian Pribyl in his book, From Nothing. “What things do you consistently find yourself coming back to and doing more research on? Examples of topics include health, dieting, beauty, money, debt, business, investing, relationships, parenting, pets, and many more.”
Think about who in your circle might be your future target market and ask them about the problems they’ve experienced too. It will help you round out the idea as you identify ways you could help them.
7. Social Media
Social media groups and social media listening can both be an endless source of ideas. They can also be a waste of time if you don’t focus and limit it.
Stay firmly focused on finding great online business ideas. What problems are people having? What are they looking for? What are they into? How can you make their life better or easier?
8. Listicles
There are all kinds of articles listing the best online businesses to start. The most helpful will be more need-driven so you can pre-address some of those considerations we talked about earlier.
For example:
Budget: 10 Low-Cost, Part-Time Businesses you can Start Online from Home
Time: Best Online Side Hustles For Really Busy People
Personality: Introverts Earn More With These Online Side Hustles
Goals & Exit Plan: Digital Empire – Top 8 Online Businesses for Growth Potential
What About AI?
AI tools can help you brainstorm and research ideas, but what you find will already have been shared a million times over. I’ve found it works better as a tool than a reliable source of information. I’m sure that will change as AI matures.
The Idea File
I suggest you start an idea file and begin noting them as they come to you. Don’t worry too much about how feasible they are at first, you can refine, prioritize or discard them later. You’ll also have the option of combining online business ideas into one company.
Where do you go for the best online business ideas? Please share your experience or questions in the comments below or join us in the Online Business Canada Facebook group.
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Last Updated on October 12, 2025 by Melody McKinnon, Online Business & Marketing Manager
Down the rabbit hole I go! I love brainstorming with myself about business ideas and all that! I’m really inspired by your suggestions 😀