How to Start a Handyman Business

Did you know that the handyman services market is expected to reach a value of $1,190.4 million by 2026?

Starting a handyman business can be a lucrative opportunity for those with repair skills and a passion for helping others.

Whether you’re an experienced handyman looking to branch out on your own or someone ready to start a new career, this article will guide you through the step-by-step process of starting and growing a successful handyman business.

Key Takeaways:

• Starting a handyman business can be a profitable venture for individuals with repair skills.
• A well-written business plan is essential for success and can help you outline your goals and strategies.
• Securing funding for your handyman business may be necessary to cover initial expenses.
• Deciding which handyman services to offer is important for attracting customers and establishing your expertise.
• Investing in the right tools and equipment is crucial for providing quality services to your clients.

Write a handyman business plan

A business plan is essential for starting a profitable handyman business. It serves as a roadmap to guide you through the process of establishing and growing your business.

Your handyman business plan will outline your goals, define your target market, and set financial projections. It is a crucial document that not only helps you stay organized but also attracts potential investors or lenders.

To create an effective handyman business plan, follow these essentials:

• Define your business concept: Clearly articulate the services you plan to offer as a handyman. Identify your target customers and determine your unique selling proposition.
• Research your market: Conduct a thorough analysis of the market demand for handyman services in your area. Identify your competitors and understand their pricing, services, and customer base.
• Set financial goals: Determine your financial objectives, including revenue targets, profit margins, and expenses. Project your startup costs and estimate ongoing operational costs.
• Create a marketing strategy: Develop a plan for promoting your handyman business and attracting customers. Identify the most effective marketing channels, such as online advertising, social media, or local networking.
• Outline your operational processes: Define how you will deliver your handyman services, including scheduling, customer communication, and project management. Consider the tools and technologies you will use to streamline operations.
• Formulate a pricing strategy: Determine your pricing structure based on factors such as market rates, your costs, and the value you offer. Consider offering different service packages or options to meet various customer needs and budgets.
• Establish a financial plan: Create a detailed financial forecast for your handyman business, including projected revenue, expenses, and cash flow. Consider seeking professional help to ensure accuracy and realism in your financial projections.

By writing a thorough and well-researched handyman business plan, you will increase your chances of success and demonstrate your commitment to potential investors or lenders. Take the time to carefully craft your plan, refining it as your business evolves. With a solid business plan in place, you’ll have a roadmap to guide you towards starting and growing a profitable handyman business.

Secure funding for your handyman business

Starting a handyman business requires some initial financial investment. Whether you need funds for tools, marketing, or operating expenses, it’s important to explore different funding options to ensure your business’s success. Here are some strategies to secure funding for your handyman business:

1. Savings and personal assets: Consider using your personal savings or assets as a source of funding. This may include using your own money or liquidating assets to generate capital for your business.
2. Business loans: Explore options for small business loans from banks or credit unions. These loans can provide the necessary capital to start or expand your handyman business. Be prepared to present a solid business plan and financial projections to lenders.
3. Government grants and programs: Research government grants and programs specifically designed to support small businesses. These funding opportunities can provide financial assistance or access to resources that can help you start your handyman business.
4. Investors or partnerships: Consider seeking investment opportunities or partnerships with individuals or organizations interested in supporting your handyman business. This can provide additional funding as well as valuable expertise and industry connections.

Once you have secured funding for your handyman business, it’s important to set up a dedicated business bank account. This will help you separate your personal and business finances, track expenses, and manage your cash flow effectively. A business bank account also adds credibility to your business and makes it easier to handle financial transactions.

Decide which handyman services to offer

When starting a handyman business, one of the key decisions you need to make is which services to offer. By offering a range of handyman services, you can attract more customers and increase your earning potential. Here are some factors to consider when deciding which services to provide:

• Assess your skills and expertise: Take stock of your handyman skills and determine which areas you excel in. Are you particularly skilled in plumbing, electrical work, or general maintenance tasks? Identifying your strengths will help you focus on offering services that you can deliver with expertise and confidence.
• Consider market demand: Research the local market to understand which handyman services are in high demand. Look for services that have a steady flow of customers and are less likely to be affected by seasonal fluctuations. This will ensure a consistent stream of work throughout the year.
• Identify profitable services: While it’s important to consider market demand, it’s equally crucial to assess the profitability of each service. Determine the potential profit margins and overhead costs associated with different handyman services. Aim to offer services that provide a good balance between demand and profitability.
• Specialize or offer a variety of services: Decide whether you want to specialize in a specific area, such as electrical work or carpentry, or offer a wide range of general handyman services. Specializing may allow you to develop expertise in a particular niche, while offering a variety of services can attract a broader customer base.

Remember, it’s important to offer services that align with your skills and expertise. Providing high-quality work will help you establish yourself as a professional handyman in the industry and earn a reputation for reliability and excellence.

Purchase handyman tools and equipment

To effectively provide handyman services, you will need the right tools and equipment. Whether you are just starting out or looking to upgrade your existing toolkit, having the essential tools is crucial for getting the job done efficiently and professionally. Here are some key tools every handyman should have in their arsenal:

1. Hammer: A sturdy hammer is essential for various tasks, including driving nails and removing small fixtures.
2. Screwdriver Set: Invest in a quality screwdriver set that includes different types and sizes of screwdrivers. This will come in handy for electrical work, furniture assembly, and other tasks that involve screws.
3. Adjustable Wrench: An adjustable wrench is versatile and can be used for tightening or loosening nuts and bolts of different sizes.
4. Tape Measure: Accurate measurements are crucial for precise work. A good-quality tape measure will help you take measurements quickly and easily.
5. Utility Knife: A sharp utility knife is essential for cutting various materials, such as carpet, drywall, and packaging.
6. Level: A level ensures that your work is straight and even. It is especially useful for hanging shelves, pictures, and other items.
7. Power Drill: A power drill is a handy tool for drilling holes and driving screws more efficiently than a manual screwdriver.
8. Toolbox: Invest in a sturdy toolbox or tool bag to keep your tools organized and easily accessible.

When purchasing tools and equipment, consider your budget and the specific tasks you will be undertaking. You don’t need to buy every tool at once; start with the basics and gradually expand your collection as needed. Look for reliable brands that offer durable and high-quality products. Taking good care of your tools by cleaning and maintaining them regularly will ensure their longevity.

Having the right tools and equipment is essential for success in the handyman industry. With a well-stocked toolkit and the necessary equipment, you will be ready to tackle a wide range of handyman jobs and provide excellent service to your customers.

Define your business’s ideal customers

In order to run a successful handyman business, it is essential to define your target market and understand your ideal customers. By identifying and catering to the needs of your target audience, you can tailor your services and marketing efforts to attract the right customers.

When defining your ideal customers, consider the following strategies:

1. Segmentation: Divide your target market into smaller segments based on demographic characteristics such as age, gender, location, and income level. This will help you understand the specific needs and preferences of each segment.
2. Identify pain points: Determine the common problems or challenges that your target customers face, which your handyman services can solve. This will allow you to position your business as a solution provider.
3. Research competition: Analyze your competitors who offer similar handyman services. Identify their target customers and the unique selling propositions (USPs) they use to attract them. This will help you differentiate your business and appeal to a specific niche.
4. Customer feedback: Collect feedback from your existing customers to gain insights into their preferences and satisfaction levels. Use this information to refine your services and improve customer experience.
5. Service professionals: Consider targeting service professionals such as real estate agents, property managers, and contractors. These professionals often require handyman services for their clients and can provide a consistent source of business.

Once you have defined your target customers, tailor your marketing efforts to reach and engage with them effectively. Utilize digital marketing channels such as social media, online directories, and search engine optimization (SEO) to increase your visibility among your target audience.

Set prices for your handyman services

When starting a handyman business, one of the crucial decisions you’ll need to make is setting prices for your services. Proper pricing is essential for profitability and attracting customers. In this section, we will discuss different pricing strategies and factors to consider when determining the optimal pricing structure for your handyman business.

1. Calculate Your Costs: Before setting your prices, it’s important to understand your costs. Consider factors such as materials, labor, overhead expenses, and desired profit margin. Calculating your costs will help ensure that your prices cover expenses and generate a reasonable profit.

2. Research Competitors: Researching your competitors’ prices is crucial to stay competitive in the market. Take a look at other handyman service providers in your area and see what they charge for similar services. This will give you an idea of the pricing range and help you position your business effectively.

3. Consider Your Value Proposition: Assess the unique value your handyman services offer. If you specialize in certain areas or provide exceptional customer service, you may be able to justify higher prices. Determine how your value proposition sets you apart from competitors and price accordingly.

4. Offer Pricing Options: Consider offering different pricing options to cater to various customer needs. For example, you can offer hourly rates, flat fees, or package deals for multiple services. Providing flexibility in pricing allows customers to choose the option that best suits their budgets and requirements.

5. Test and Adjust: Initially, it’s important to experiment with your pricing strategy and monitor its impact. Test different price points and evaluate customer response and profitability. Based on the results, make adjustments to optimize your pricing structure for maximum revenue and customer satisfaction.

By carefully setting prices for your handyman services, you can attract customers while ensuring profitability for your business. Remember to regularly review and update your pricing strategy as market conditions and business circumstances change.

Register your handyman business

Now that you have planned and prepared for your handyman business, it’s time to make it official by registering your business. Registering your handyman business is an essential step to establish it as a legal entity and gain the benefits and protections that come with it.

When registering your business, one of the first decisions you’ll need to make is choosing a suitable business structure. The most common types of business structures for a handyman business are sole proprietorship, partnership, corporation, and limited liability company (LLC).

Choosing a business structure:

If you’re a solo handyman, a sole proprietorship may be the simplest option. It doesn’t require formal registration but still allows you to conduct business under your own name.

If you have a partner or multiple handymen joining you, a partnership structure may be more appropriate. This structure allows for shared responsibilities and profits but also means shared liability.

A corporation is a more complex business structure that offers additional liability protection, but it involves more paperwork and ongoing formalities.

Lastly, establishing your handyman business as a limited liability company (LLC) can combine the benefits of a corporation and a partnership. It provides personal liability protection for the owners (members) while offering flexible operational structures.

Once you have decided on a business structure, you will need to file the necessary paperwork with the appropriate government agency. The specific requirements and forms may vary depending on your location, so be sure to research the registration process in your state or locality.

Registering your handyman business is an important legal step that not only establishes your credibility but also protects you and your personal assets in the event of any legal disputes or liabilities. It’s crucial to follow the registration process accurately to ensure compliance with local regulations.

Now that you understand the importance of registering your handyman business and choosing a suitable business structure, you’re well on your way to establishing a strong foundation for your venture.

Get the required handyman licenses for your state

Operating as a handyman requires you to comply with the licensing and permit regulations set by your state. It is essential to obtain the necessary licenses to ensure that you are legally authorized to provide your services. Each state has its own requirements for handyman licensing, so it’s crucial to research and understand the specific regulations in your state.

To help you navigate the process, we have provided an overview of the handyman licensing requirements and steps to obtain the necessary licenses for your state:

1. Research your state requirements: Start by researching the licensing requirements for handymen in your state. Check with your state’s contractor licensing board or the Department of Professional Regulation to gather information on the specific licenses or permits you need to operate as a handyman.
2. Attend necessary training or courses: Some states may require you to complete specific training or courses related to your handyman trade before you can obtain a license. These courses are designed to ensure that you have the necessary knowledge and skills to perform your duties safely and effectively.
3. Prepare the required documentation: Once you have identified the necessary licenses or permits, gather all the required documentation to support your license application. This may include proof of identity, proof of experience or education, and proof of insurance coverage.
4. Submit your license application: Complete the license application form provided by your state licensing board and submit it along with the required documentation. Be sure to follow the instructions carefully, providing accurate and up-to-date information.
5. Pay the licensing fees: Most states require you to pay a fee for your handyman license application. The fee amount may vary depending on your state. Be sure to include the correct payment method and amount specified by your state licensing board.
6. Pass any required exams or assessments: Some states may require you to pass exams or assessments to demonstrate your competency in your handyman trade. These exams are typically designed to assess your knowledge and skills in areas such as safety practices, construction codes, and trade-specific techniques.
7. Obtain liability insurance: While not always a legal requirement, it is highly recommended to obtain liability insurance for your handyman business. Liability insurance provides protection in the event that you cause property damage or personal injury while performing your services.

By obtaining the necessary handyman licenses for your state, you not only ensure compliance with local regulations but also gain credibility and trust from your customers. Having a valid license demonstrates your professionalism and dedication to your craft, giving customers confidence in your abilities.

Remember, the licensing requirements may vary from state to state, so it’s crucial to stay updated on the latest regulations in your area. Consult with your state contractor licensing board or seek legal advice to ensure that you fulfill all the necessary requirements to operate as a licensed handyman.

Get small business insurance

Protecting your handyman business with insurance is crucial to safeguard your financial interests and mitigate risks. As a small business owner, you need to consider the different types of insurance coverage that can provide liability protection and ensure the smooth operation of your business.

One essential insurance policy to consider is general liability insurance. This type of insurance protects your business from third-party claims for bodily injury or property damage that may occur during your handyman services. It covers legal fees, medical expenses, and potential settlements or judgments.

Additionally, you should also consider worker’s compensation insurance to protect your employees or subcontractors in the event of work-related injuries or illnesses. This type of insurance covers medical expenses, disability benefits, and lost wages.

When searching for insurance policies for your small business, it’s important to find comprehensive coverage that meets your specific needs. Consider factors such as the size of your business, the nature of your handyman services, and your desired coverage limits to determine the best insurance options.

It’s also wise to compare quotes from different insurance providers to find the most affordable policies without compromising on coverage quality. Look for insurance companies that specialize in small business insurance and have a good reputation in the industry.

By securing the right small business insurance policies, you can protect yourself, your employees, and your customers from unforeseen events and maintain peace of mind as you run your handyman business.

Create a service contract

When running a handyman business, it is essential to protect yourself and your clients by having a well-written service contract. A service contract outlines the terms and conditions of your services, ensuring clear expectations and legal protection for both parties involved.

To create a comprehensive service contract, consider including the following:

• A clear description of the services you will provide
• The agreed-upon price for the services
• Payment terms and conditions, including any upfront deposits
• Expected timelines for completing the work
• A dispute resolution process
• Limitations of liability
• Terms regarding cancellations or rescheduling

This template can serve as a starting point for customizing your own service contract. However, it’s important to consult with a legal professional or a contract specialist to ensure that your contract complies with local laws and regulations.

By having a well-crafted service contract in place, you can establish trust with your clients, set clear expectations, and protect yourself legally.

Start marketing your handyman services

Once you have established your handyman business, it’s time to start promoting your services and attracting customers. A well-executed marketing strategy can help you build an online presence and reach your target audience. Here are some effective tactics to consider:

• Create a professional website: A visually appealing and informative website is crucial for showcasing your services. Include photos of your previous work, detailed descriptions of the services you offer, and your contact information. You can use a website builder like Wix or WordPress to easily create a professional-looking site.
• Utilize online directories: Register your business on popular online directories such as Yelp, Google My Business, and Angie’s List. This will make it easier for potential customers to find and contact you.
• Harness the power of social media: Create business profiles on social media platforms like Facebook, Instagram, and LinkedIn. Regularly post engaging content related to your services, share customer testimonials, and respond promptly to inquiries.
• Offer special promotions: Encourage new customers to try your services by offering limited-time discounts or promotions. This can help attract initial customers and generate positive word-of-mouth recommendations.
• Ask for reviews and testimonials: Satisfied customers can be your best marketing tool. Encourage them to leave reviews on your website or social media platforms. Positive reviews and testimonials can go a long way in building trust and credibility.

Remember, consistency is key. Stay active on your marketing channels, engage with your audience, and continually refine your strategies based on what works best for your business. With a solid marketing plan in place, you can effectively promote your handyman services and grow your customer base.

Hire other handymen as employees

As your handyman business continues to thrive and expand, you may find yourself facing increased demand for your services. In order to effectively meet this growing demand, hiring other handymen as employees can be a smart and strategic move.

• By hiring employees, you can delegate tasks and responsibilities, allowing you to focus on managing and growing your business.
• Having a team of handymen working under your business can enable you to take on multiple projects simultaneously, increasing your productivity and earning potential.
• When hiring employees, it is important to find and select qualified handymen who are skilled in various areas of repair and maintenance.
• Consider conducting thorough interviews and background checks to ensure that you hire reliable and trustworthy individuals who will represent your business well.
• Offering competitive salaries and benefits can help attract and retain top talent in the handyman industry.
• Scaling up your handyman business through employee expansion may come with challenges such as managing a larger team, coordinating schedules, and maintaining consistent quality of work.
• However, with proper planning and efficient systems in place, these challenges can be overcome, allowing you to further grow and succeed in your business.

Remember, hiring other handymen as employees is a strategic step towards scaling up and expanding your business. It can help you meet the increasing demand for your services while allowing you to focus on the overall growth and management of your handyman business.

Use the right software to manage your handyman business

Running a successful handyman business requires efficient management of various tasks and processes. Thankfully, there are numerous software solutions available that can streamline your operations and improve overall efficiency. By utilizing the right software and tools, you can simplify scheduling, automate invoicing, and enhance customer relationship management. Let’s explore some essential handyman business management software options to help you effectively manage your business.

Scheduling is a critical aspect of running a handyman business, and there are software tools specifically designed to simplify this process. With scheduling software, you can easily manage your appointments, assign tasks to specific handymen, and keep track of job progress. Some popular scheduling tools include Acuity Scheduling, Jobber, and ScheduleOnce. These platforms offer convenient features like calendar synchronization, automated reminders, and online booking, allowing you to efficiently manage your schedule and provide exceptional service to your customers.

Invoicing software is another essential tool for your handyman business. It enables you to create professional invoices, track payments, and manage your financial records seamlessly. With invoicing software such as QuickBooks, FreshBooks, and Zoho Invoice, you can easily generate and send invoices to clients, automate payment reminders, and even accept online payments. These tools ensure accurate and timely invoicing, helping you maintain a healthy cash flow and build trust with your customers.

To effectively manage your customer relationships, consider using a customer relationship management (CRM) software. A CRM allows you to centralize customer information, track interactions, and nurture long-term relationships. With a CRM tool like Salesforce, HubSpot, or Zoho CRM, you can store customer details, track communication history, and automate follow-ups. These platforms also provide valuable analytics and reporting features, enabling you to gain insights into your customer base and make data-driven business decisions.