The go-to solution for all your DIY projects, pesky chores, and small repairs: handyman business excels in executing every detail with precision
Owning your own business can be fascinating, especially when it aligns with a service that you’re passionate about. If you’ve always wanted to be your boss and use your skills in repair and maintenance, starting a handyman business can be a good choice.
It’s time to turn your passion into a profitable business. Here, we’ll guide you through everything you need to know about how to start a handyman business. So grab our toolkit with 6 essential steps, and let’s start on this exciting path to entrepreneurship!
But before you delve into the process, let’s discuss what handyman services are and why you should start this business.
What does a handyman do?
A skilled handyman performs various tasks at customers’ homes or workplaces. The range of repair and maintenance services a handyman provides can differ based on the customers’ requirements and the tasks you can handle. Mentioned here are some of the most popular services that handymen offer.
- Furniture assembly
- Drywall repair and maintenance
- Interior and exterior painting
- Minor plumbing and electrical services
- Babyproofing
- Light fixture installation
- Tiling and Carpentry
- Pressure washing
- Smart home upgrades
- Fence, window, and gate repair
- Window coverings and Door hardware installation
- Senior home upgrades
- Gutter cleaning
- Window washing
- Screen installation and repair
- Small appliance installation and repair
- Picture hanging and installation
- Maintaining gardens and lawns
Why starting a handyman business is a smart choice?
The home improvement industry is expanding rapidly. According to a recent report in 2023, the global market for home improvement reached a value of around $867.6 billion and is expected to increase approximately 6% annually from 2023 to 2032. Again starting a handyman business comes with endless opportunities to be your boss, create your schedule, and select the projects you are most passionate about.
Meanwhile, With the rise in remote work, the demand for home repairs and improvements has increased significantly. According to a 2022 report, 55% of homeowners plan to undertake home improvement projects within the next two years.
These statistics are enough to support the point that the handyman services business will bring great benefits in the future.
Now that you have got the answer to what a handyman does and the services you can provide, we will take you to the steps to kick-start your handyman business successfully.
Steps to start a handyman business:
Starting a handyman business? Research the market, define your skill set, consider legal aspects, register the business, set prices, plan finances, and plan effective marketing. Mentioned here are the key steps you need to take.
Follow this step-by-step guide to starting a handyman business:-
1. Define Your Skills & Services:
Identify the skill set you are best at and decide the service you want to offer as a handyman. From carpentry, electrical wiring, property maintenance, and more always start offering the services you are knowledgeable about and then expand from there as you gain experience.
2. Business registration and licensing:
Depending on your geographical location and the service you want to offer, you will need a contractor license and permit. The first step here begins by registering your business name with the appropriate state or local authorities. Next consult with a legal advisor who could help you with different business structures say, LLC, for liability protection and tax benefits. Also, Don’t forget to buy a relevant general liability insurance cover to protect yourself and your clients from unexpected losses.
Other relevant insurance to consider includes:
Inland Marine Insurance: the insurance protects your tools and equipment at your main location.
Professional Liability Insurance: The insurance safeguard you against the client’s claims of negligence or inadequate service quality.
Workers’ Compensation Insurance: this courage is compulsory if your company employs staff, covering their medical expenses and lost wages when they fall sick and suffer work-related injuries.
Handyman Bonds: Surety bonds that serve as a guarantee that you will perform the assigned job on mutually agreed-upon terms. If you fail, the client will be compensated for any financial losses incurred.
3. Financial Setup:
Again an important step to start a handyman business is to open a dedicated business bank account to maintain clear transparency between personal and business finances. This practice will simplify your financial setup and help you track your income, expenses, taxes, and invoices and prepare financial reports accurately.
4. Pricing:
Determining your pricing can be a challenge, the act involves maintaining the balance between staying competitive and grabbing profit.
Factors to consider include understanding the market, the cost of material used, your experience in a particular field, the services you provide, your goodwill or reputation, professionalism, and your ability to sell.
5. Branding and marketing:
Spread the word about your business. Develop a dedicated marketing plan by understanding your market, competitors, and client’s needs. Marketing your product or services will help you grow effectively. To market your business effectively Create your portfolio, logo, business cards, and advertising in local newspapers. As we are getting digital these days, market your business online too (e.g., Instagram, Facebook, Twitter, YouTube) and search engine optimization.
Get LLC:- LLC ( limited liability company) helps you in securing your liability for your handyman business. The two main reasons you should consider taking LLC for your handyman business are it gives your liability an extra layer of protection, other, it shows your professionalism as well and enhances the goodwill in the market. Form an LLC by choosing a different name and articles of organization, which show the basic information of your business such as name and address.
7. Tools you need:- Please find the list of tools required for a handyman business below
- Basic hand tools: Screwdrivers, pliers, wrenches, hammers, tape measures, knives, etc.
- Power tools: Power sander, cordless drill, circular saw or jigsaw, Oscillating multi-tool, and Reciprocating saw.
- Plumbing tools: Pipe wrenches, Plumber’s wrench, Pipe cutter, Plunger, and drain snake.
- Electrical tools: Wire cutters and wire strippers, Voltage tester, Electrical tape, wire nuts, and Fish tape.
- Measurement and layout tools: Laser level or laser distance measurer, Carpenter’s square, Stud finder, and Chalk line.
- Painting Tools: Paint brushes and rollers, Paint trays and liners, Drop cloths or plastic sheeting, and Painter’s tape.
- Miscellaneous Tools: Step ladder, Flashlight or headlamp, Toolbar or tool belt for organization and easy access, Safety equipment, and more.
Always use high-quality tools and undergo regular maintenance to ensure their good working conditions.
If you’re ready to consider handyman services as a business option? Here’s what you need to look forward to:
Benefits of Starting a Handyman Business:
Be Your Boss: better flexibility and control over work hours and business decisions.
High Demand: handy services are always in need, so your business is always in demand.
Affordable Costs: The handyman business has low startup costs compared to other businesses.
Skill Utilisation: Opportunity to use a diverse skill set to tackle different tasks.
Growth Potential: Opportunity to expand services, hire additional help, and specialize in certain areas.
Challenges of Starting a Handyman Business
Building a Client Base: Initial income might be inconsistent and takes time to establish a steady income and client base.
Physical Demands: Handyman work can be physically demanding and sometimes involve risks.
Business Management: Besides hands-on jobs, handling marketing, finances, and customer service can be challenging sometimes.
Licensing and Certification: Depending on the location of work, you may require additional costs and time to obtain the necessary documents.
High Competition: Standing out in a crowded market requires strategic thinking to differentiate your services.
Customer Expectations: Ensuring consistent quality and dealing with various expectations can be demanding.
Tips to manage a handyman company:
Here are some helpful tips for effectively managing your handyman business:
1. Research the industry: know the target market, analyze competitors, services offered and in demand, your ideal customers, marketing approaches, and pricing strategies to tailor your business approach accordingly.
2. Prioritize Customer Service: Happy clients are more likely to recommend your services to others, so be open, punctual, and reliable.
3. Gain experience: Prior experience is valuable in any field. Consider working for another handyman company or volunteering at a handyman agency before starting your own business.
4. Networking and building relationships: Forming connections with real estate agents, property managers, and local businesses can help expand your client base. Additionally, nurturing strong relationships with suppliers is essential for business growth.
5. Adapt to market changes: Stay updated on what is going on in the market, recent trends, and emerging needs to keep your services relevant as a business owner.
Common mistakes to avoid when starting a handyman business:
Handyman business comes with many challenges but it is also rewarding at the same time if one avoids the several mistakes that make sure the business is successful. Here are common mistakes you should avoid while considering a handyman business:-
1. Lack of research: If you plan to start a handyman business, thorough market research including target market, competitor analysis, pricing, and target audience is important. Never underestimate the importance of market research.
2. Not investing in branding and marketing:- Marketing is essential for any business you do so not investing in branding and marketing for your business can lead to losses. Your business logo, and online and offline marketing are important for the business.
3. Ignoring customer services:- Customers are the main thing in business and if we do not care about them, then how will our business run? Never forget to provide good customer service and build goodwill in the market
4. Overcommitting and not fulfilling:- Sometimes some businessman over-commit to their clients for any reason and then fail to deliver the services that directly impact business. Which leads to dissatisfaction among clients. Commit what you can do in a given time.
5. Underestimate legal and requirements:- Never underestimate the legal formalities in handyman business. Every business person should follow the legal requirements to ensure the complaint.
What are the costs of starting a handyman business?
For starting a handyman business typically you need to spend around $1,390–2,930+ (USD). Key costs include:
Business license and registration: $75–400
Handyman license and exam: $300–550
Business insurance: $360–1,000+
Home service software: $400
Uniform and tools: $105–$430
Website and business cards: $150
Beyond the initial setup costs; the other additional expenses to consider include Marketing and advertising costs, vehicle expenses, including fuel, maintenance, and insurance, Subscriptions to invoicing software, and legal services fees.
How does a handyman’s business make money?
A handyman business is a service-based business that earns money through service fees charged for tasks like repairs, maintenance, and home improvements. Other income sources are project pricing for larger jobs, emergency service fees, markups on materials, and consulting fees for expert advice.
