Industries
Your industry, the way a lender or a buyer reads it.
The same firm, read through your industry: what a lender or a buyer measures first, the figures they expect to see, the financing that fits, and the programs worth applying for. The typical figures below are the ones our free calculators grade you against.
12 industries
Which one is yours?
Professional servicesAccounting, law, consulting, engineering, architectureWhat matters, and what fits →
Software and subscriptionsB2B SaaS, platforms, subscription productsWhat matters, and what fits →
Construction and tradesGeneral and specialty contracting, civil, electrical, mechanicalWhat matters, and what fits →
Home and field servicesHVAC, plumbing, electrical, landscaping, cleaning, pest controlWhat matters, and what fits →
Manufacturing and physical productFood and beverage, wood products, metal fabrication, consumer goodsWhat matters, and what fits →
Wholesale and distributionDistributors, dealers, brokers of physical goodsWhat matters, and what fits →
Import and exportImporters, exporters, cross-border tradersWhat matters, and what fits →
RetailStores, showrooms, franchises with a storefrontWhat matters, and what fits →
Online storesE-commerce, marketplace sellers, direct-to-consumer brandsWhat matters, and what fits →
Restaurants and food serviceRestaurants, cafes, bars, catering, food trucksWhat matters, and what fits →
Transportation and logisticsTrucking, courier, freight, warehousingWhat matters, and what fits →
Health and medical practicesDental, physiotherapy, veterinary, pharmacy, clinicsWhat matters, and what fits →
Typical figures are broad averages for owner-led businesses in Canada, not targets, and a lender or a buyer will apply its own. They are here so you know the yardstick before someone else holds it up.
Accounting, law, consulting, engineering, architecture
Professional services
The business is its people and its relationships, so a lender or a buyer looks past the balance sheet to who does the work and whether clients would stay if the founder left.
What matters most
Owner dependencyHow much of the billing and the client relationships sit with one person. It sets the multiple more than any ratio does.
Utilization and rateBillable hours against capacity, and the effective rate per hour. Together they explain the margin.
ReceivablesProfessional firms are paid slowly. Days to get paid is the working-capital number a lender watches.
Recurring workRetainers and repeat clients are valued; one-off projects are not.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 55% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 18% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 3.0x to 4.0x adjusted EBITDA |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 45 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.5x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.5x |
| Largest customerAbove that, lenders and buyers see a business that would be badly hurt by losing one account. | under 15% of sales |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeFormal proposals. A sole practitioner converting referral enquiries usually sits higher. Deltek Clarity A&E study 2026 (896 US and Canadian firms, median win rate 49%); RAIN Group (472 sellers, 47%); Loopio RFP statistics 2026 (39% to 45%). | 40% to 50% |
|---|---|
| Spent on marketingReferral-driven firms sit near the Canadian tax-return floor of about 2% of revenue on advertising; firms deliberately buying growth report 10% to 12%, not counting staff time. Statistics Canada Financial Performance Data 2024 (professional, scientific and technical services: advertising and promotion 2.1% of revenue); Hinge Research Institute High Growth Study 2026 (495 professional services firms: high-growth 12%, no-growth 5%); The CMO Survey 2026 (B2B services 10%). | 3% to 8% of sales |
| Cost to win a customerWinning a client through search advertising runs about C$140 to C$180 a lead for business and legal services, and C$700 to C$1,700 a client for a law firm (LocaliQ 2026; First Page Sage 2025, US clients, converted at C$1.40 per US dollar). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. First Page Sage 2026 (legal 2.4%, financial 2.5%, IT 2.8%); Ruler Analytics 2026 (professional services 6.1%, legal 7.9%); calls are half the enquiries. | 2.5% to 6% |
| Sales cycleFrom first contact to order. First Page Sage 2025 (professional services 51 days; $1 million to $5 million companies 43 days). | 40 to 60 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Operating line of creditThe right facility for a firm whose cost is payroll and whose cash arrives 45 days later.
- Partner buy-in financingTerm debt to bring a new partner into ownership, usually against the firm's cash flow rather than assets.
- Practice acquisitionBuying a book of business or a retiring practitioner's firm, with a vendor take-back as part of the price.
Programs worth applying for
- BC Employer Training GrantTraining for professional staff.
- Canada Small Business Financing ProgramLeaseholds and equipment for a new office.
B2B SaaS, platforms, subscription products
Software and subscriptions
Valued on recurring revenue rather than profit, and financed on it too. The measures are different from every other industry here, and a lender who does not know them is the wrong lender.
What matters most
Recurring revenue and churnAnnual recurring revenue, how much of it renews, and how fast customers leave. Everything else is read against these.
Gross marginSoftware should keep most of every dollar. Hosting, support and onboarding costs are what pull it down.
Cost to win a customer against lifetime valueThe ratio that decides whether growth is worth funding.
Cash runwayMonths of cash at the current burn. The first question from any investor or venture lender.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 78% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 15% |
| ValuationSubscription businesses are priced on revenue that renews, not on profit. | 2.0x to 3.0x recurring revenue |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 30 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.5x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.0x |
| Largest customerAbove that, lenders and buyers see a business that would be badly hurt by losing one account. | under 15% of sales |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeFrom a qualified opportunity to a closed deal. HubSpot close-rate survey 2024 (software 22%); First Page Sage SaaS funnel benchmarks (opportunity to close 36% to 39%). | 20% to 40% |
|---|---|
| Spent on marketingMarketing alone is a median 8% of recurring revenue for private software companies, with sales another 15%; the fastest-growing spend far more on the two together. SaaS Capital Spending Benchmarks 2026 (more than 1,000 private B2B software companies: marketing 8% and sales 15% of annual recurring revenue, medians); KeyBanc Capital Markets and Sapphire Ventures SaaS Survey 2024 (sales and marketing 27% to 68% of revenue by growth rate). | 8% to 25% of sales |
| Cost to win a customerA blended C$340 per business customer for small-business software, from C$380 (e-commerce and retail customers) to C$2,000 (financial customers); the rule of thumb is lifetime value at least three times the cost, recovered within twelve to eighteen months (First Page Sage 2026, US clients converted at C$1.40; David Skok, ForEntrepreneurs; KeyBanc 2024: median payback 20 months). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. First Page Sage 2026 (B2B SaaS 2.5%, software development 2.9%); Unbounce 2024 (SaaS landing pages 3.8% median). | 1% to 4% |
| Sales cycleFrom first contact to order. Optifai 2025 (939 companies: median 84 days; deals under about C$21,000 14 to 30 days); First Page Sage 2025 (67 days). | 30 to 90 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Revenue-based and venture debtDebt sized on recurring revenue, for companies that are growing but not yet profitable.
- Operating line on receivablesOnce contracts are annual and invoiced, a bank will lend against them.
- EquityAn equity raise is a trade in securities, executed by our registered dealer partners.
Programs worth applying for
- NRC IRAPAdvisory and cost-shared funding for technical development.
- SR&ED tax creditsA refundable credit on eligible development work.
- Innovate BCProvincial programs for BC technology companies.
General and specialty contracting, civil, electrical, mechanical
Construction and trades
Thin margins, lumpy cash and bonding requirements. Lenders read a contractor's work-in-progress schedule before its income statement, because that is where the profit is really decided.
What matters most
Work in progressBillings against costs on every open job. Under-billing hides losses; over-billing borrows from next month.
BacklogSigned work not yet done. It is what a lender lends against and what a buyer pays for.
Holdbacks and days to get paidTen per cent of every invoice waits on completion. Cash arrives long after the work.
Bonding capacitySet by the surety on the strength of the balance sheet. It caps the size of job you can bid.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 22% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 8% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 2.5x to 3.5x adjusted EBITDA |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 60 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.4x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.0x |
| Largest customerAbove that, lenders and buyers see a business that would be badly hurt by losing one account. | under 15% of sales |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeBy kind of bid: hard-bid public work 10% to 20%, negotiated or repeat-client work 30% to 50% and above; most residential trades win over half their quotes. ConstructConnect bid-hit ratios 2026; Jobber Home Service Trends Report 2026 (1,050 owners); First Page Sage 2025 (real estate and construction opportunities 16%). | 20% to 50% |
|---|---|
| Spent on marketingContractors win work by bid and relationship; the Canadian tax-return average is 1% of revenue, and a third report no advertising at all. Five per cent and above is a business building a new customer base. Statistics Canada Financial Performance Data 2024 (construction: advertising and promotion 1.0% of revenue; 67% of firms report any); Houzz State of the Industry 2025 (1,537 renovation businesses: a quarter name marketing a top-three cost pressure); BDC (B2B rule of thumb 2% to 5%). | 1% to 5% of sales |
| Cost to win a customerAbout C$290 a customer from search and C$690 from paid advertising for commercial construction; C$140 to C$170 for an electrical contractor (First Page Sage 2025, US clients converted at C$1.40). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. First Page Sage 2026 (construction 2.9%, HVAC 2.8%); Ruler Analytics 2026 (construction and engineering 4.9%, a fifth by phone). | 2% to 5% |
| Sales cycleFrom first contact to order. First Page Sage 2025 (commercial construction opportunities 147 days); residential quotes close in days to weeks (Jobber 2026). | 30 to 150 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Operating line of creditTo carry payroll and materials between progress draws.
- Equipment financing and leasingTrucks, excavators and tools, financed on the asset itself.
- Canada Small Business Financing ProgramGovernment-guaranteed loans for equipment and leaseholds.
Programs worth applying for
- BC Employer Training GrantApprentice and safety training.
- WorkBC wage subsidyWages while training a new hire.
HVAC, plumbing, electrical, landscaping, cleaning, pest control
Home and field services
Paid quickly, priced on the technician's hour, and valued on the service agreements that bring customers back. Among the most sought-after businesses for buyers, when the systems do not depend on the owner.
What matters most
Service agreementsRecurring maintenance contracts are the asset a buyer pays for.
Revenue per technician and per truckCapacity is the fleet and the crew. The numbers show whether either is idle.
Gross margin on labour and partsPricing discipline shows here first.
Owner dependencyWhether the phone rings for the company or for the owner.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 45% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 15% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 3.5x to 4.5x adjusted EBITDA |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 15 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.4x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.5x |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeMost home-service businesses win half to seven in ten of their quotes; roofing, plumbing and electrical report the highest. Jobber Home Service Trends Report 2026 (1,050 US owners in cleaning, HVAC, roofing, plumbing, electrical, lawn care, tree care and contracting; Jobber is based in Edmonton); ServiceTitan call-booking rates 2022 (about 42% of calls booked). | 50% to 70% |
|---|---|
| Spent on marketingNo survey reports a share of revenue for home services; the consumer rule of thumb is 5% to 10%, and the customer searches when the problem happens, so search and reviews carry the spend. BDC (B2C rule of thumb 5% to 10%); Jobber Home Service Trends Report 2026 (15% to 35% of new work should come through referral and other high-trust channels); Statistics Canada Financial Performance Data 2024 (construction floor 1%). | 3% to 10% of sales |
| Cost to win a customerAbout C$125 a customer from search and C$160 from paid advertising (First Page Sage 2025, US home-services clients converted at C$1.40); search advertising about C$125 a lead (LocaliQ 2026). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. First Page Sage 2026 (pest control 3.7%, HVAC 2.8%, solar 2.3%); Ruler Analytics (consumer services about 1% to 1.7%). | 2% to 4% |
| Sales cycleFrom first contact to order. Same-day repairs; replacement and installation quotes close in days to a few weeks (Jobber 2026: 60% of pros answer new leads the same day). | 1 to 14 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Vehicle and equipment financingThe fleet, financed on the vehicles.
- Acquisition financingBuying a competitor's customer list and crew, a common route to scale.
- Operating line of creditSeasonal working capital.
Programs worth applying for
- CleanBC Go ElectricRebates on electric commercial vehicles and charging.
- BC Employer Training GrantTechnician certification.
Food and beverage, wood products, metal fabrication, consumer goods
Manufacturing and physical product
Asset-heavy and capital-hungry. Lenders like it, because there is equipment and inventory to lend against, and they look hard at how efficiently that capital is turned into shipped product.
What matters most
Gross marginMaterial, labour and overhead against price. Small changes move the whole business.
Inventory turnsHow many times a year stock is sold and replaced. Slow turns tie up the operating line.
Capacity utilizationHow much of the plant is producing. It decides whether the next order needs the next machine.
Customer concentrationOne large buyer is a strength until it is a risk.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 35% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 12% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 3.5x to 4.5x adjusted EBITDA |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 50 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.6x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 3.0x |
| Largest customerAbove that, lenders and buyers see a business that would be badly hurt by losing one account. | under 15% of sales |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeCustom parts and job shops report about three in ten quotes won. Paperless Parts (job-shop quoting, about 30%); First Page Sage 2025 (manufacturing opportunities 19%). | 20% to 35% |
|---|---|
| Spent on marketingDistributor-led manufacturers sit near the Canadian tax-return average of 1.5%; 5% and above is a product launch or a new market. Statistics Canada Financial Performance Data 2024 (manufacturing: advertising and promotion 1.5% of revenue); The CMO Survey 2026 (manufacturing 5.6%, large firms; B2B product 7%); BDC (B2B rule of thumb 2% to 5%). | 1.5% to 5% of sales |
| Cost to win a customerAbout C$920 a customer from search and C$1,260 from paid advertising (First Page Sage 2025, US manufacturing clients converted at C$1.40); sales-rep costs come on top. | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. First Page Sage 2026 (manufacturing 3.1%, heavy equipment 2.3%); Ruler Analytics (industrial 3.4% to 5%). | 2% to 4% |
| Sales cycleFrom first contact to order. First Page Sage 2025 (manufacturing 124 days, the longest of its seven segments). | 90 to 180 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Equipment financing and leasingMachinery financed on the machine, over its useful life.
- Asset-based lendingA line sized on receivables and inventory together.
- BDC term loansLonger terms for expansion when the bank stops at the collateral.
Programs worth applying for
- BC Manufacturing Jobs FundCapital funding for projects that add jobs.
- NRC IRAPProcess and product innovation.
- CanExport SMEsEntering a new export market.
Distributors, dealers, brokers of physical goods
Wholesale and distribution
A business of margin over volume, run on working capital. The whole balance sheet is receivables and inventory, and the lender's question is how fast each turns into cash.
What matters most
Gross marginThin by nature. The difference between three per cent and five is the difference between a business and a hobby.
Days to get paid and days in inventoryThe cash conversion cycle. Every day shorter is money back on the line.
Supplier termsPayables are financing too; the terms a supplier gives are worth a bank facility.
Customer concentrationLenders discount a distributor that lives on one account.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 25% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 7% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 3.0x to 4.0x adjusted EBITDA |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 45 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.6x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 3.0x |
| Largest customerAbove that, lenders and buyers see a business that would be badly hurt by losing one account. | under 15% of sales |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeNo published benchmark for distributors; the cross-industry figures are shown. Repeat-order rate is the better yardstick. RAIN Group (proposal win rate 47%); First Page Sage 2025 ($1 million to $5 million companies, 26% of qualified opportunities); HubSpot 2024 (20%). | 25% to 45% |
|---|---|
| Spent on marketingDistribution runs on price, availability and the sales team; the Canadian tax-return average is 1.4% of revenue. No trade survey publishes a distributor figure. Statistics Canada Financial Performance Data 2024 (wholesale trade: advertising and promotion 1.4% of revenue); BDC (B2B rule of thumb 2% to 5%); The CMO Survey 2026 (retail and wholesale 8.8%, large firms). | 1.4% to 5% of sales |
| Cost to win a customerNo distributor-specific figure; business-to-business customers cost C$340 to C$1,100 to win across First Page Sage's 2025 US client data (converted at C$1.40). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. No direct benchmark; Ruler Analytics B2B e-commerce (1.5% to 3.9% by source) and First Page Sage transportation and logistics (2.4%). | 1.5% to 4% |
| Sales cycleFrom first contact to order. No published figure; repeat-order distribution is transactional, new accounts follow the business-to-business pattern. | 7 to 60 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Asset-based lendingThe natural facility: a line that grows with receivables and stock.
- Receivables financingWhen growth outruns the bank line.
- Trade financeEDC insurance and guarantees on foreign receivables.
Programs worth applying for
- CanExport SMEsSelling into a new country.
- EDCInsuring receivables so the bank will lend on them.
Importers, exporters, cross-border traders
Import and export
Cash goes out months before it comes back, in another currency, through a port. Financing the gap and insuring the receivable is most of the work, and Crown lenders exist for exactly this.
What matters most
Cash conversion cycleDeposit to supplier, transit, customs, sale, collection. Count the days; a lender will.
Currency exposureMargin can disappear in a rate move. Hedging is a lending condition as often as a choice.
Concentration by supplier and customerOne supplier country or one buyer is the risk a lender asks about.
Gross margin after landed costDuty, freight and brokerage belong in the cost of goods, not overhead.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 22% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 6% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 2.5x to 3.5x adjusted EBITDA |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 50 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.5x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.5x |
| Largest customerAbove that, lenders and buyers see a business that would be badly hurt by losing one account. | under 15% of sales |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeNo published benchmark for import and export businesses; the cross-industry figures are shown. RAIN Group (47% of proposals); First Page Sage 2025 (26% of qualified opportunities for $1 million to $5 million companies). | 25% to 45% |
|---|---|
| Spent on marketingNo benchmark exists for import and export businesses; the wholesale figures are the nearest, and export marketing is often cost-shared through CanExport. Statistics Canada Financial Performance Data 2024 (wholesale trade 1.4%); BDC (B2B rule of thumb 2% to 5%); Global Affairs Canada CanExport SMEs (reimburses up to half of eligible market-development costs). | 1.4% to 5% of sales |
| Cost to win a customerNo industry figure; the business-to-business range of C$340 to C$1,100 a customer is the nearest (First Page Sage 2025, converted at C$1.40). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. No direct benchmark; the nearest business-to-business figures are shown. | 1.5% to 4% |
| Sales cycleFrom first contact to order. No published figure; the cross-industry business-to-business range is shown (Databox 69 days; Optifai 84 days median). | 30 to 90 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Trade finance and letters of creditThe bank pays the supplier on your behalf, against the order.
- EDC guarantees and insuranceInsuring the foreign receivable makes it bankable.
- Asset-based lendingA line against inventory in transit and receivables abroad.
Programs worth applying for
- CanExport SMEsMarket entry costs shared.
- Trade Commissioner ServiceIntroductions in-market, at no cost.
How we help
Stores, showrooms, franchises with a storefront
Retail
Paid at the till, so there is no receivable to lend against; the money is in inventory and the lease. Buyers and lenders think in sales per location and per square foot.
What matters most
Sales per locationThe comparison every retailer is judged by.
Inventory turns and shrinkSlow stock and missing stock are the two quiet leaks.
Rent as a share of salesThe lease is the biggest fixed cost, and the hardest to change.
Gross margin by categoryWhere the margin actually comes from, which is rarely where the volume is.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 40% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 8% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 2.0x to 3.0x adjusted EBITDA |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.5x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.5x |
| Measured per locationHow businesses with a storefront are compared with each other. | sales and profit per site |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeFor a shop, the share of people who walk in and buy: specialty retail 15% to 30%, grocery 20% to 40%, big-box 10% to 20%. TruRating retail conversion analysis 2026, as cited by Shopify's retail conversion guide. | 15% to 30% |
|---|---|
| Spent on marketingIndependent shops report about 1.5% of revenue on advertising in Canadian tax returns and about 4% in US surveys; the consumer rule of thumb is 5% to 10%. Statistics Canada Financial Performance Data 2024 (retail trade: advertising and promotion 1.5% of revenue); Small Business Trends 2018 via the U.S. Small Business Administration (retailers about 4%); BDC (B2C 5% to 10%); The CMO Survey 2026 (B2C product 12%, large firms). | 2% to 8% of sales |
| Cost to win a customerSearch advertising runs about C$70 a lead for shopping and gifts and C$140 for apparel and jewellery (LocaliQ 2026, US campaigns converted at C$1.40). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. Ruler Analytics 2026 (retail and e-commerce 2.4%); First Page Sage 2026 (apparel 3.2%). | 1.5% to 3% |
| Sales cycleFrom first contact to order. The same visit. | up to 1 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Canada Small Business Financing ProgramLeasehold improvements and fixtures, government-guaranteed.
- Inventory financingA line against stock, for the season.
- Merchant cash advanceFast and expensive. Know the real cost before you sign.
Programs worth applying for
- Buy BCMarketing funding for BC food and beverage products.
- FortisBC and BC Hydro rebatesLighting, heating and refrigeration.
E-commerce, marketplace sellers, direct-to-consumer brands
Online stores
The store is a set of numbers: cost to win a customer, what the customer is worth, and what is left after advertising. Inventory is the balance sheet, and the platform holds your cash for a while.
What matters most
Cost to win a customer against lifetime valueThe ratio that decides whether spending on ads builds a business or rents one.
Contribution margin after advertisingGross margin is not the number; what is left after the ad spend is.
Inventory turnsStock sitting in a warehouse is cash sitting in a warehouse.
Platform dependenceOne marketplace or one ad channel is a concentration risk, like one customer elsewhere.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 45% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 12% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 3.0x to 4.0x adjusted EBITDA |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.5x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.0x |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeFor an online store, the share of visitors who order; food and drink stores higher, furniture lower. Dynamic Yield e-commerce benchmarks 2024 (2.9% overall) via Smart Insights; IRP Commerce market data 2026 (2.2%); Littledata Shopify benchmark 2023 (1.4% average, top 10% above 4.7%). | 2% to 3% |
|---|---|
| Spent on marketingAn online store buys its visitors: businesses selling entirely online report marketing at nearly a fifth of revenue while growing, half that once established. The CMO Survey 2026 (companies with all sales online: 18.8% of revenue, small sample); First Page Sage e-commerce customer acquisition cost report 2026; Shopify (customer acquisition cost by industry, 2024). | 10% to 20% of sales |
| Cost to win a customerAbout C$90 a customer, from C$75 (food and beverage) to C$245 (home goods), with lifetime value of three times the cost as the target (First Page Sage 2026, converted at C$1.40); Shopify's own data for stores with under four staff runs C$30 to C$530 by category. | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. Share of visitors who order: Littledata 2023 (1.4% average, 3.2% top fifth); Dynamic Yield 2024 (2.7% to 2.9%). | 1.4% to 3% |
| Sales cycleFrom first contact to order. The same session; about three carts in four are abandoned (Dynamic Yield 2024). | up to 7 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Revenue-based financingAdvances against sales, repaid as a share of revenue. Fast; price it carefully.
- Inventory financingFor the seasonal buy.
- Canada Small Business Financing ProgramEquipment and fit-out for a warehouse.
Programs worth applying for
- CanExport SMEsSelling into the United States and beyond.
- Innovate BCFor product and platform development.
Restaurants, cafes, bars, catering, food trucks
Restaurants and food service
High gross margin, low net margin, and everything depends on the lease, the labour and the location. Lenders are cautious; the ones who understand the industry lend on the operator's record.
What matters most
Prime costFood and beverage cost plus labour, as a share of sales. The single number a restaurant lives or dies on.
Sales per seat and per locationCapacity and how much of it is used.
Rent as a share of salesPast ten per cent, the lease is running the restaurant.
Owner's hoursA business that only works because the owner works eighty hours is valued accordingly.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 68% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 10% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 2.0x to 3.0x adjusted EBITDA |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.0x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.0x |
| Measured per locationHow businesses with a storefront are compared with each other. | sales and profit per site |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Customers who come backA restaurant does not quote. The yardstick is the share of guests who come back: about 7% of first-time guests return without a loyalty programme, about 30% with one, and a small core of regulars brings up to half of orders. Toast, The Regulars Report 2026 (Toast platform data and a 1,500-diner survey). | see note |
|---|---|
| Spent on marketingCanadian restaurants report 1.8% of revenue on advertising in tax returns; the US guide is 3% to 6% including paid advertising, more in the first year, and delivery-platform commissions are a marketing cost too. Statistics Canada Financial Performance Data 2024 (food services and drinking places: advertising and promotion 1.8% of revenue); Toast, restaurant marketing budget guide 2024 (3% to 6% of revenue); Small Business Trends 2018 via the U.S. SBA (restaurants 1.9% on advertising). | 2% to 6% of sales |
| Cost to win a customerSearch advertising is among the cheapest of any industry at about C$43 a lead (LocaliQ 2026, converted at C$1.40); a regular is worth far more than a new guest (Toast, The Regulars Report 2026). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. First Page Sage 2026 (food and beverage 2.8%); Littledata (food and beverage stores 1.5%). | 1.5% to 3% |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Canada Small Business Financing ProgramLeaseholds and kitchen equipment, the classic use.
- Equipment leasingOvens, refrigeration and fit-out on the asset.
- Merchant cash advanceCommon in the industry and usually the most expensive money on the page.
Programs worth applying for
- Buy BCMarketing for BC-made food and drink.
- FortisBC and BC Hydro rebatesKitchen and refrigeration efficiency.
- BC Employer Training GrantStaff training.
Trucking, courier, freight, warehousing
Transportation and logistics
A fleet on the balance sheet, fuel and drivers on the income statement, and receivables from shippers who pay when they pay. Equipment lenders know the industry well; that is the door to start with.
What matters most
Revenue per truck and per mileUtilization of the fleet decides the margin.
Days to get paidShippers and brokers pay slowly. Factoring is common for a reason.
Fleet age and replacementMaintenance rises with age; a lender wants to see the replacement plan.
Driver turnoverThe operating risk that shows up nowhere on the statements until it does.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 35% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 13% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 3.0x to 4.0x adjusted EBITDA |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 45 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.3x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 3.0x |
| Largest customerAbove that, lenders and buyers see a business that would be badly hurt by losing one account. | under 15% of sales |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeNo published benchmark for trucking or courier work; spot-freight quoting is high-volume and low-hit, contract logistics behaves like business-to-business services. RAIN Group (47% of proposals); First Page Sage 2025 (26% of qualified opportunities); HubSpot 2024 (20%). | 25% to 45% |
|---|---|
| Spent on marketingCarriers and couriers win freight by relationship and price: 1.3% of revenue in Canadian tax returns, and fewer than half report any advertising, the lowest of any sector. Statistics Canada Financial Performance Data 2024 (transportation and warehousing: advertising and promotion 1.3% of revenue; 47% of firms report any); BDC (B2B rule of thumb 2% to 5%). | 1% to 5% of sales |
| Cost to win a customerNo industry figure; the business-to-business range of C$340 to C$1,100 a customer is the nearest (First Page Sage 2025, converted at C$1.40). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. First Page Sage 2026 (transportation and logistics 2.4%; B2B 1.4%). | 1.5% to 2.5% |
| Sales cycleFrom first contact to order. No published figure; the cross-industry range is shown. | 14 to 84 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Equipment financing and leasingTrucks and trailers financed on the unit, including manufacturer finance.
- Receivables financingStandard in freight; compare the cost against a bank line.
- Operating line of creditFuel and payroll between collections.
Programs worth applying for
- CleanBC Go ElectricRebates on electric commercial vehicles.
- BC Employer Training GrantDriver and dispatcher training.
Dental, physiotherapy, veterinary, pharmacy, clinics
Health and medical practices
Steady, well understood by lenders, and valued on the patient base and the recurring visits behind it. Banks have specialist teams for professional practices; use them.
What matters most
Patient base and recallActive patients and how reliably they return. The asset a buyer pays for.
Revenue per practitioner and per roomCapacity, and whether the space or the people is the constraint.
Associate dependenceWhether the revenue belongs to the practice or to one clinician who could leave.
Days to get paidInsurers and public plans pay on their own schedule.
The figures a lender expects
| Gross marginSales less the direct cost of delivering them. | about 60% |
|---|---|
| EBITDA marginOperating profit before interest, tax and depreciation, as a share of sales. | about 20% |
| ValuationWhat a buyer of a well-run, owner-independent business in this industry ordinarily pays. | 3.5x to 4.5x adjusted EBITDA |
| Days to get paidMoney owed by customers, divided by a day's sales. | about 30 days |
| Current ratioWhat you could turn into cash within a year, against what is due within a year. | 1.5x or better |
| Debt to EBITDAHow many years of operating profit it would take to repay every loan. Lenders stop lending past this. | up to 2.5x |
| Measured per locationHow businesses with a storefront are compared with each other. | sales and profit per site |
Typical for owner-led businesses of this kind. The free reports grade your own figures against them.
The sales engine| Quotes that closeFor a dental practice, the share of treatment plans accepted: 45% on average, 75% in the top tenth of practices. Physiotherapy and chiropractic report higher conversion of referrals to first appointments. Henry Schein One, 2026 Catalyst Index (dental case acceptance). | 40% to 60% |
|---|---|
| Spent on marketingMost independent practices spend 1% to 5% of gross revenue; publicly funded demand sits at the 1% floor, and a new private-pay clinic (dental, physiotherapy, med-spa) runs higher. Tebra survey 2023 (106 US independent practices: 62% spend 1% to 5% of revenue); Statistics Canada Financial Performance Data 2024 (health care and social assistance: advertising and promotion 1.0% of revenue); The CMO Survey 2026 (healthcare 5.9%, large firms). | 1% to 5% of sales |
| Cost to win a customerC$225 to C$870 a new patient by specialty: general practice about C$280, dentistry about C$530, dermatology about C$630, cosmetic surgery about C$870; by channel, search about C$310 and paid search C$490 (First Page Sage patient acquisition cost report 2026, small US samples converted at C$1.40). | in Canadian dollars |
| Website visitors who enquireOf the people who visit the website, the share who call, send a form, book or order, calls counted. First Page Sage (healthcare 2.1% to 3.1%); Ruler Analytics 2026 (health 2.3%, beauty 3.5%, more than a third by phone); Unbounce (health and wellness pages 5%). | 2% to 5% |
| Sales cycleFrom first contact to order. Appointment-driven: days, not months. | 1 to 7 days |
From the published benchmark studies named against each figure (the sources); mostly American and British data, and not a rule. The Business Development Plan reads your own figures against them.
Financing that fits
- Professional practice loansMost banks have a practice-finance team with terms built for this.
- Equipment financingClinical equipment financed on the asset.
- Practice acquisitionBuying a practice, with a vendor take-back and a transition period.
Programs worth applying for
- BC Employer Training GrantClinical and administrative staff.
- Canada Small Business Financing ProgramLeaseholds for a new clinic.
Where the sales-engine yardsticks come from
The sources, checked 29 SEP 2026.
Yardsticks for owner-led businesses, from published benchmark studies (named against each figure). Almost all are American or British datasets of businesses that already measure their marketing; no Canadian or BC survey reports conversion rates, so a BC business that does not count its phone enquiries will usually measure below them. Close rate is the share of quotes or proposals that become orders; marketing is what is spent on being found and getting enquiries, as a share of sales, not the salaries of the people who sell; the sales cycle runs from first contact to order; website conversion is the share of visitors who enquire, call or buy. Dollar figures are American benchmarks converted to Canadian dollars at C$1.40 per US dollar, the Bank of Canada rate in late September 2026. A business on the wrong side of one of these is not wrong, but a lender or a buyer will ask why.
- RAIN Group, Average Sales Win Rates (472 sellers and sales executives)
- HubSpot, Average Close Rate by Industry (2024 survey)
- First Page Sage, Sales Pipeline Velocity Metrics 2026 (247 North American B2B organizations) and Website Traffic-to-Lead Conversion Rate 2026
- Ruler Analytics, Conversion Rate Benchmarks 2026 (110 million sessions, 13 industries)
- Jobber, Home Service Trends Report 2026 (1,050 home-service owners)
- ConstructConnect, Bid-Hit Ratios for Commercial General Contractors 2026
- Deltek, 47th Annual Clarity Architecture and Engineering Industry Study (896 US and Canadian firms)
- TruRating, Retail Conversion Analysis 2026, via Shopify
- Smart Insights (Dynamic Yield data), E-commerce Conversion Rate Benchmarks 2025
- Henry Schein One, 2026 Catalyst Index: dental case acceptance
- Toast, The Regulars Report 2026
- Optifai, B2B Sales Cycle Length Benchmarks (939 companies)
- Unbounce, Conversion Benchmark Report 2024 (41,000 landing pages)
- WordStream by LocaliQ, Google Ads Benchmarks 2026 (13,474 US search campaigns)
- BrightLocal, Google Analytics for Local Businesses Study (11,000 local sites) and Local Consumer Review Survey 2025
- Statistics Canada, Survey of Digital Technology and Internet Use 2023
- CFIB, Small Business Digital Presence (September 2025 survey, 2,478 owners)
- The CMO Survey, Spring 2026 Firm and Industry Breakout Report (Duke University, Deloitte and the American Marketing Association)
- Gartner, 2025 CMO Spend Survey (marketing budgets at 7.7% of company revenue)
- BDC, What is an average marketing budget for a small business?
- Statistics Canada and ISED, Financial Performance Data 2024 (advertising and promotion by industry, businesses with $30,000 to $5 million in revenue)
- U.S. Small Business Administration, How to Get the Most From Your Marketing Budget (2019)
- Hinge Research Institute, 2026 High Growth Study (495 professional services firms)
- SaaS Capital, 2026 Spending Benchmarks for Private B2B SaaS Companies
- David Skok, Startup Killer: the Cost of Customer Acquisition (the 3:1 and 12-month rules)
- First Page Sage, Average Customer Acquisition Cost by Industry, B2B and B2C editions, and the e-commerce, SaaS and patient acquisition cost reports (US client data)
- Tebra, Healthcare marketing budget benchmarks for independent practices (2023)
- Toast, How to Create Your Restaurant Marketing Budget
- Houzz, 2025 U.S. State of the Industry (1,537 residential renovation businesses)
- Shopify, Customer Acquisition Cost by Industry
Not on the list?
Most businesses are a mix, and the measures still apply: what you keep from every sale, how quickly you are paid, what you owe against what you earn, and how much depends on one customer or one person. Run the health check with the closest industry and read the grades with that in mind.
Typical figures are broad averages and change with conditions. They are general information, not advice, and no lender or buyer is bound by them. Want a set read for your business? The call-back form is below.