11 Expert Tips for How to Start a Handyman Business

How to Start a Handyman Business in 11 Steps

Here are the essential steps you need to follow to become a handyman and start your new venture.

1. Write a Handyman Business Plan

The first step is to create a detailed business plan that outlines the type of handyman services you will offer and how you plan to manage client service calls. Additionally, it’s important to establish a method for tracking both accounts receivable and accounts payable.

Addressing potential challenges in the plan will help ensure you can easily reach out to clients, complete jobs efficiently, and receive timely payments. This business plan should serve as your roadmap for achieving steady growth over time. Below are factors to consider when drafting your plan.

• Analyze market trends: Identify the market condition and zero on your service area where you will be fixing things for homeowners. This will also help you understand prospective clients and fluctuating service demands. Explore other service providers in the selected area and come up with strategies to beat the competition.
• Define objectives: Clearly specify your business goals in the plan to create effective strategies for your service and repair work. List out both long-term and short-term objectives so that you can prioritize your focus based on immediate needs and promote growth. This will make sure your actions align with your broader business vision.
• Allocate financial budget: Next, decide how much money you will spend on buying equipment, tools, or automation software for performing daily activities. Also, make a plan for the budget you want to allocate for marketing and advertising your handyman business.

2. Register Your Handyman Business

Registering your business is another thing you must pay attention to right after you have a business plan ready. But, before you apply, make sure you have finalized a business structure – sole proprietor, partnership, or LLC. The LLC is an ideal option for a handyman business. Registering your business won’t take more than just a few hours. Here’s what you need to follow.

1. Finalize your business name so that it is easy to remember.
2. Visit the local registry and register your business as a sole proprietor, partnership, or LLC.
3. Obtain necessary business licenses to operate your service legally within your area.
4. If you have hired employees, then get an EIN.

This registration process for your handyman business may cost you around $400-$500. Post business registration, you will be then allowed to open your business bank account.

3. Get the Required Handyman Licenses for Your State

Since you want to start your handyman business legally, getting a business license from a government agency should be your top priority. It might be easy to launch your business, but obtaining licenses may take some time, delaying you from offering services.

As per your state, you will have to apply for different licenses required to get your business started. Some states like California and Florida don’t even have any business license requirements.

However, it is advisable to check with your state licensing authority. Apart from state licenses, your business should also comply with the state rules and regulations. In case you fail to meet the state-level requirement, it may lead to severe penalties or even business closure.

4. Secure Funding for Your Handyman Business

If you are planning to run a small handyman business, it’s important to have a robust financial plan right from the start. You need to have a clear picture of how to cover your business expenses, including equipment, office rent, and payroll if you have staff.

Also, factor in your tax obligations, such as federal taxes or local business taxes. Here are several options for funding your handyman business.

• Business loan: You can apply for a small business loan that you can pay back once you set up the client base and start earning profits.
• Personal loan: Opt for a personal loan to cover expenses for business equipment or marketing your services if required for a short period.
• Credit cards: Get a business credit card that has a low interest rate to manage business expenses.
• Government funding: Look for government-backed funding programs to secure loans and start your own handyman business.

5. Decide Handyman Services to Offer

Before you start providing handyman service, make sure you have a handyman business startup checklist ready. You must finalize what type of services you will offer to homeowners. You may have residential as well as commercial clients with their unique requirements.

So, based on such things, it’s you who decides whether to carry out repair work on-site or bring it to the office. With an eye out on competitors’ offerings, you can finalize handyman services from the below list.

• Drywall repair work
• Leak fixes
• Curtain installation
• window cleaning
• Gutter cleaning
• fencing repair and painting
• Wall shelves work
• Kitchen appliance repair
• Bathroom tile installation & repair

6. Get an LLC

Next, get your handyman business registered as an LLC (Limited Liability Company). For that, you can simply fill in an online application form on the state’s government website and register your business. The online registration process includes approx $100 charges that you need to pay at the time of applying.

Getting an LLC means you get liability protection from everything. Even if someone sues you, your company’s assets will be protected. In case you go bankrupt, then also will protect your personal assets.

So, no wonder why we recommend LLC instead of sole proprietorship. Apart from liability protection, getting an LLC will definitely foster a client’s trust in your services. If your handyman business is registered as an LLC, then clients will know you are operating it legally and not just a random guy.

7. Purchase Handyman Tools and Equipment

As a handyman, you know whatever project you work on, without the right tools and equipment you won’t get it done. In the starting phase, you can rely on low-cost items rather than buying new equipment.

As you work on more projects, you will realize the need for more tools that should be added to the toolkit. Here are some common Handyman tools to be kept with you.

• Broom
• Dustpan
• Wrenches
• Hammer
• Power drill
• Duct tape
• Nail and screw sets
• Roller brush
• Gloves & earplugs
• Nails and wire
• Putty knife

Besides on-site equipment, you will also need automation software, mainly for office use. There is plenty of software available, from which Moon Invoice can be the best bet, helping you enhance the invoicing process and encouraging clients for timely payments. It offers readymade handyman estimate templates and handyman invoice templates to speed up your invoicing and estimation process. You can send a professional and polished invoice to clients within a few minutes instead of creating poor invoices on paper.

8. Set Prices for Your Handyman Services

Next comes setting up prices for your services before you start providing them to the customers. Finalizing the handyman rates for different services could be difficult but crucial to running a profitable business. Remember your business can be lucrative if you get the prices right for your target customers.

To create a solid pricing strategy, consider your years of experience as a handyman and analyze competitors’ service costs. After that, factor in labor costs, overhead costs, and profit margin.

For labor costs, estimate the time required to complete the handyman job and multiply it by your hourly rate. For example, if it takes you 2 hours to fix a shower head and your hourly rate is $20.10, the labor cost would be $40.20.

Similarly, calculate overhead costs by dividing your monthly expenses by the total working hours for that month. Finally, once you have both labor and overhead costs, add a 10-15% profit margin based on the project value.

9. Get Handyman Business Insurance

Having handyman insurance can protect you from unwanted expenses that may incur if your equipment is damaged or stolen. It also safeguards you if you sustain injuries while working or accidentally damage your client’s property.

There are multiple types of insurance available, from which you can get general liability insurance. Choosing general liability insurance means you need to pay $60-$90 per month and it offers a coverage of $ 1,000,000.

Apart from this insurance, here are some other insurance to consider when you want to work full-time as a handyman.

• Business income insurance
• Compensation insurance for employees
• Property insurance
• Commercial auto insurance
• Employment practices liability insurance
• Cyber liability insurance

10. Hire Experienced Handymen

Once you start offering handyman service, you’ll quickly realize the need for additional skilled handymen, as you can’t be everywhere. This would be the main concern as soon as your business begins to grow. And that’s where you become the boss of other handymen you hired.

Finding the right employees may take weeks or even months because, ultimately, you need someone who works hard and shares your passion for helping homeowners.

Here’s how to start hiring someone as a handyman.

• Firstly, figure out the requirements for a handyman – if you want a part-time or a full-time employee.
• Write a detailed job description for the right candidate, highlighting their duties and responsibilities.
• Then, share the hiring post on online platforms such as LinkedIn and Indeed.
• Now you can make a list of qualified candidates for your job openings and then schedule interviews.
• Finalize a new hire who meets all the criteria and ensure a smooth transition into your team.

11. Start Marketing Your Handyman Services

So, you have finalized your pricing and are ready with your team. Now what’s next? Simply, acquire the job you want to work on. But, getting a profitable job opportunity is not easy unless you have a robust marketing plan. Therefore, next you should build a marketing plan that gets paid off.

Since many homeowners are looking for a handyman services company through online channels, you can make a strategy to promote your services using social media accounts.

At the same time, the question may arise – how will you beat the competition? Such things should be addressed when you make a marketing plan to sell your services. It does not matter whether you advertise your handyman business online or offline, you should be capable enough to convince clients why they should hire you.

You can either build your own website to find prospects online or print business cards to expand your network locally. In short, you should make the most of social media platforms where prospective clients typically spend their time, which can ultimately lead to more job opportunities.

How Much Does it Cost to Start a Handyman Business?

The cost of starting a successful handyman business ranges anywhere between $5000 – $10,000, depending on whether you work by yourself or choose to outsource. At first glance, you might think it’s so expensive, but not in comparison to other businesses. Up to $10,000 is what you pay for several months until you start earning money.

The starting cost may be somewhat cheaper if you already have the essential tools and equipment to carry out handyman work.

Here’s the breakdown of factors that contribute to the total cost of starting a handyman business.

Conclusion

In conclusion, we’ve outlined 11 essential steps to help you kick-start your handyman business. These steps will serve as your blueprint, guiding you through the complexities that often come with the early stages of launching a business. With a clear understanding of both the process and the costs involved, you are now well-prepared to not only get started but also gain a competitive edge in the market.

Now, it’s time to put your skills to work and turn your passion into a profitable venture. If you’re aiming for rapid growth rather than just running a regular business, automation software like Moon Invoice is worth a try. Avail a 7-day free trial now and explore more.

FAQs