Are you thinking about starting a handyman business but don’t know where to begin?
Many people struggle with starting new businesses; we’re here to help.
This article will present everything you need to know on how to start a handyman business, answering all your queries about it.
Are you ready? Let’s begin.
- How Profitable Is Owning a Handyman Business
- What You’ll Need to Start a Handyman Business [& Associated Costs]
- Why You Should Consider Starting a Handyman Business as a Side Hustle
- How to Start a Handyman Business in 6 Simple Steps
- Things to Consider When Building a Handyman Business
- INSPIRATION: Handyman Business Ideas
- Frequently Asked Questions
- Similar Businesses to Consider Starting
- Wrapping Up
How Profitable Is Owning a Handyman Business
If you plan on running a handyman repair service on your own, you’ll find it a profitable venture since all the money you make will be yours for the keeping.
However, if you plan to expand and hire employees for your handyman service in the future, that will incur other expenses on your wallet.
While you can start a business with no money, setting up any new venture will require you to invest startup capital.
After all, you need to set up the tools required for jobs, pay hired employees, train them, and develop a marketing strategy.
All this will adversely affect your profit margins, yet you’ll have to set fair prices for your service and remain steadfast.
In a report from BLS, on average, a handyman makes around $20.76 per hour, which translates to $43,180 per year.
Another statistic from Indeed states that this figure can average around $67,226.
Handymen can make generous earnings; however, this figure also depends on other factors.
You have to keep in mind your experience level, work ethic, marketing, and professionalism.
These will allow you to set your hourly rates, which will determine your total earnings.
What You’ll Need to Start a Handyman Business [& Associated Costs]
Starting a handyman business will require resources and planning.
Listed below are some requirements you need to start a profitable handyman business, as well as the personal funds you would need to invest in each.
As a handyman, you’ll be hired by customers all over the city and will find yourself spending a lot of time on the commute.
As such, it’ll greatly aid you in having a personal vehicle that you can use.
Many professionals in the industry prefer driving pickup trucks and vans due to the extra space they get for their tools and equipment.
A used vehicle can cost you anywhere from $5,000 to $12,000, depending on its condition.
While you might not need an office space when you’re just starting, as your business grows and you have more workers employed, a location that will serve as your base of operations will be needed.
Depending on the size of the space and the neighborhood you choose, this can set you back $5,000 to $10,000.
As a handyman, you’ll need access to an arsenal of tools to get you started. The costs of these vary depending on the type of equipment.
For basic jobs, you can get by with simple tool belts, but as you progress, you might find yourself needing power tools.
Due to this, the costs can go all the way up to $3,000.
Marketing is extremely important for any business owner.
Apart from printing business cards, you should utilize the power of social media platforms to attract potential clients and set up advertisements to reach your target market.
Advertisements can cost anywhere between $150-$500 over the first few months.
4. Liability Insurance
This will mitigate the risk of liability and should cost you anywhere from $30 to $200.
5. Workers Compensation
Any successful handyman business will need to have effective workers with a variety of skills.
You can look for both part and full-time employees depending on your needs.
Depending on their range of services and hourly rates, this may cost you between $40 to $100.
Apart from these, there might be other minor overhead costs that might be incurred.
While you don’t need a loan for some businesses, because of the high cost of vehicle expenses, you might consider getting one for running a handyman services company.
Do I Need a License or Certificates to Start a Handyman Business?
Each state has its licensing requirements and handyman laws, so this will vary depending on where you work and reside.
Why You Should Consider Starting a Handyman Business as a Side Hustle
Starting a handyman company alongside your main job is an excellent way to use your skill set to make some extra money on the side.
- Working for yourself: Being your boss is great! It allows you to have full control over your business plan, and you can choose which projects you want to work on.
- Create your schedules: You can choose to work part-time or full-time, depending on your availability. This flexibility allows you to have a better work-life balance, and you can prioritize your time as you see fit.
- Wide availability of work: Handyman services are in wide demand, meaning there is money to be made. By extending your area of expertise, you can serve a wider target audience.
- Great source of income: Handyman rates per hour are pretty decent, especially if you cater to a wide range of jobs and provide a wide variety of services.
How to Start a Handyman Business in 6 Simple Steps
Starting a business can be a daunting process. It requires meticulous planning and thorough preparation.
Below are 6 easy steps you can follow to launch a successful handyman business.
Step 1: Choose Your Services
After generating this business idea, the first step is to define your area of expertise and select the services you aim to offer.
These can be limited to general handyman services, or you can choose to specialize.
Reflect on the current skills you possess and ask yourself what you do best.
Explore multiple services like electrical repairs, deck repairs, and general maintenance, and discover your niche.
Step 2: Design a Business Plan
A business needs a game plan.
Your business plan should outline your startup costs, operational costs, goals, marketing strategies, target audience, pricing, and hourly rates.
Keep a list regarding any business expenses, overhead expenses, and ongoing expenses, as it is an essential part of running a business and will help you with transparency down the road.
Step 3: Know Your Ideal Clients
Knowing your potential customer base is essential. Not every customer requires a specialist; some only want a general handyman.
Correctly identify your ideal customers, and choose to focus your marketing strategies to target and attract them to your services.
Also, developing strong interpersonal skills can help you increase customer satisfaction which will, in turn, increase customer retention.
Step 4: Register Your Business
Once you have laid down the roadmap for your business, the next step is to choose a name for your startup and get yourself registered.
You can choose to operate as a sole proprietor or a legal entity.
Obtain all legal obligations such as business licenses, handyman licenses, permits, and documentation if required.
For this one, it’s best to check with your state about the business requirements you’ll need to register your business.
Also, remember to get business insurance.
This will safeguard your personal assets, protect you in the event of property damage, and reduce the financial risks associated with running a business.
Step 5: Set Up Your Business Operations
Now that most of the planning and paperwork are finalized, you can start setting up your operations.
Initially, you can work from a home-based office or a mobile unit to save costs, but once you hire employees, you should consider relocating.
Try to develop a referral network with all clients you work with.
Word of mouth and testimonials will greatly market your business, give you credibility, and draw in potential customers.
Develop a search-engine-optimized website, which will then make your website rank higher in search results when people search for handyman services within the area.
This will help with client outreach and get you new leads.
Step 6: Start Offering Your Services
Once everything is up and running, you can start offering your services and accepting clients.
Remember, starting a new venture takes time and consistent effort. Don’t be disheartened if you don’t immediately start getting work.
Things to Consider When Building a Handyman Business
It’s important to take note of key points while building a business.
Here are some things to ponder before pursuing this venture.
Can You Run a Handyman Business by Yourself?
Yes, anyone can run a handyman service alone, provided you have the proper tools and motivation.
However, as the scale of your operations increase and you start getting more clients, you’ll need to manage them accordingly.
In that scenario, you might need to hire other handymen to work for you.
This will test your leadership skills, as well as the commitment and dedication you have for your craft.
How to Reduce the Risk of Employee Injury?
You should know that the risk of injuries is high in this type of job.
To manage and reduce this, you should implement safety policies and procedures.
Employees must be properly trained and have knowledge of handling tools and equipment.
These tools should also be properly maintained and stored after use to avoid accidents.
Should You Use a Handyman Software App for Your Business?
Today’s world is run on technology; your business should take advantage of that.
By getting a custom application built, you can improve employee organization and the division of tasks.
Work schedules can be uploaded, which will improve efficiency.
There may also be a channel for communication and announcements.
INSPIRATION: Handyman Business Ideas
Out-of-the-box thinking will allow you to explore newfound possibilities and open your business to innovation and new ideas.
Here are some creative approaches to apply to your handyman business.
- Handyman Matchmaking: Match qualified handymen with customers to serve any specific needs that the customers might have. This way, customers won’t have to go through the trouble of vetting handymen.
- Subscription-Based Handyman Services: Create a subscription model for your business offering repair services to clients for a monthly based fee. Different tiers of plans may be added to include extra coverage.
- Tool Rental Service: Rent out your tool kits and power saws to customers who want to do home repairs themselves.
Frequently Asked Questions
Can Anyone Start a Handyman Business?
Yes! Anyone possessing the right skill set and knowledge can start a handyman service.
When we say anyone, we really mean anyone; even teenagers can own them too!
However, one must have a motivated mindset and focused work ethic to ensure the business succeeds.
If this mentality is missing, chances are your business will fail, and you’ll be forced to bear losses.
How Do Handyman Businesses Get Clients?
By utilizing effective marketing techniques, such as creating SEO websites, building an online presence on social media websites, running advertisements, and networking with past clients and other small-scale startups.
Similar Businesses to Consider Starting
Being a handyman isn’t for everyone. It requires rigorous physical labor and operating dangerous tools, which can be a potential liability.
So here are some other business options you might be interested in:
- How to Start a Vending MachineBusiness: Own and operate a vending machine that sells items such as snacks, candies, beverages, and personal care items, among others.
- How to Start a Cleaning Business: Provide janitorial services to both commercial clients and residential clients and ensure everything is kept clean and in order.
- How to Start a Clothing Business: Design and sell clothing such as jeans, shirts, dresses, and related garments.
If you enjoy the challenges of physical labor and showcasing your skills, starting a handyman business can be a profitable venture that will bring you both satisfaction and financial reward.
Keep in mind patience and dedication are required to excel in any business, and this is no different; stick to your regime, and the handyman industry will be yours for the taking.
Let us know what you think of the article in the comments box below, and share it with your friends and family who might be interested in starting a handyman business.