How to start a handyman business ultimate guide
If you’re good with your hands and have a head for business, then starting a handyman business is the perfect business for you. As a handyman, you can provide a wide range of services to customers, from fixing leaky faucets to building decks. To be successful in this business, you’ll need to be well-organized and have a strong work ethic. You should also be comfortable working with a variety of tools and materials. While some handymen start out working solo, others choose to hire employees as their business grows. No matter what route you take, with hard work and dedication, you can build a successful handyman business. In this guide I will show you how to start a handyman business and get it up and running fast.
According to Wikipedia a handyman is a person skilled at a wide range of repairs typically around the home. If this describes you and its something you actually enjoy doing then becoming a professional handyman is a great business to start. You can do something you love and are good at and you get to meet some amazing clients who will keep you busy for a long time.
There are some things you need to be aware of before you jump in your truck with your tools and start fixing stuff around the neighborhood.
How to start a handyman business
Here are the first steps you need to take to starting you business.
- Create a business plan
- Register Your business
- Get business insurance
- Set up a website
- Start marketing your business
1. Create a business plan
A business plan is an important tool for any handyman business or small business owner. It helps you to define your business goals, and map out a path to achieving them. It also forces you to look at your competition, and your target market to determine your marketing strategy.
A well-crafted business plan can also help you to secure funding from investors or lenders.
In short, a business plan is essential for anyone who wants to start a business. Without one, it will be difficult to make your business successful.
Here is what the SBA says:
Here is what a good business plan should include –
Outline of your marketing and sales plans
Financial projection analysis
The purpose of a business plan is to give you a roadmap to follow and gives a document to present if you are requesting financing.
1. Business Name
When starting a handyman business choosing the right name for your business is an important decision. It should also be easy to pronounce and remember, so that potential customers can easily find your business when they’re searching for it.
Naming a business is both an art and a science. While there are many factors to consider, the most important thing is to choose a name that accurately reflects the mission and values of your company.
For example, if you are starting a Green Handyman business, you might want to choose a name that evokes the feelings of organic and good for the environment to use. On the other hand, if you are starting a handyman plumbing company, you might want to choose a name that sounds innovative and modern.
Ultimately, the goal is to choose a business name that will attract attention and give potential customers a positive impression of your business.
You want to make sure that the name you use and want to start marketing is not taken and you can find a domain name that will work for a website.
If you are still struggling with a business name you can always use a business name generator like Shopify’s free tool.
2. Choose a niche
When starting a handyman business, one of the most important decisions you’ll make is choosing your niche. A niche is the type of work you specialize in, and it can be anything from electrical work to painting or carpentry. When starting a handyman business, it can be tempting to try to be all things to all people. However, this approach is rarely successful. It is much better to focus on a specific niche and become the go-to source for that particular product or service.
There are several reasons for this. One, it is much easier to build a brand when you have a clear target audience in mind. You can craft your message and marketing strategy specifically your ideal customer, rather than trying to appeal to everyone. Second, customers are more likely to be loyal to businesses that provide them with exactly what they need. When you focus on a niche, you can develop a deep understanding of your target market and what they are looking for. This allows you to create products and services that perfectly meet their needs. Finally, focusing on a niche allows you to build up a level of expertise that will be difficult to match. As a result, customers will be more likely to trust your advice and recommendations.
Here are a few things to keep in mind when thinking about your niche
1. Consider your skills and experience. What type of work are you most qualified to do? It’s important to choose a niche that you’re comfortable with and have a good understanding of.
2. Think about the needs of your target market. What type of repairs or services do they need?
3. Consider the competition. What types of handyman businesses are already in your area?
By keeping these factors in mind, you’ll be able to choose a niche that’s right for you and your business.
3. Market/Competitor Research
How to do market research
Before starting any business, it’s important to do your market research. This will help you understand the needs of your potential customers and how to best reach them. Market research is the process of gathering information about consumers’ needs and preferences. This information can be used to determine which products or services to offer, how to price them, and where to market them. Market research can be conducted through surveys, focus groups, or interviews. It can also be done by observing customer behavior, such as what they buy, how often they use certain products, and how much they are willing to pay for them. By understanding consumers’ needs and wants, businesses can create products or services that meet those needs and generate profits. For a handyman business, some key questions to consider include: Who are your potential customers? What types of services do they need? What are their budget constraints? How do they prefer to communicate with businesses? Once you have a good understanding of your target market, you can start to develop your marketing strategy and create a business plan that will appeal to them. By taking the time to do your market research upfront, you can set your business up for success from the very beginning.
How to do competitor research
As a handyman, it’s important to stay up to date on your competition. After all, they may be offering services that you don’t, or they might be able to do the same job as you but for a lower price. By researching your competitors, you can stay ahead of the curve and make sure that you’re always offering the best possible service. Here are a few tips for conducting competitor research:
1. Look online. A good place to start is by searching for handymen in your area online. This will give you an idea of who your competition is and what kinds of services they offer.
2. Read reviews. Once you’ve compiled a list of potential competitors, take some time to read reviews of their work. This will give you insight into the quality of their work and how customers feel about their experience.
3. Ask around. If you know someone who has used a handyman before, ask them about their experience and whether they would recommend the person they used. This can be a great way to get first-hand feedback about a particular handyman.
By taking the time to research your competitors, you can ensure that you’re always offering the best possible service to your customers.
When it comes to handyman services, there is no one-size-fits-all pricing structure. The cost of a job will vary depending on the scope of work, the materials required, the complexity of the task, and the handyman’s own experience and expertise.
To determine your price there are a couple of different factors to look at.
1. What does the competition charge. You want to be competitive with the current market expectations. You should never be the cheapest unless you are just starting out then you can charge a little less to get a couple of jobs under your belt and some good referrals.
2. What is your experience: If you have more experience than the average handyman and your quality of work is better. You should charge more. If you are just starting out and do not have a lot of experience you should charge a little less until you can earn more for the quality of your work.
3. Are you going to charge hourly or by the job: There are pros and cons to both. If you do a time and materials job you could charge anywhere from $75.00 to $150.00 per an hour plus materials. This is the most popular but can cause the largest number of customer complaints. A lot of times this type of price will come in over what they expected to pay and they tend to question the number of hours you billed for. If you charge by the job it takes some time to get your pricing right. You have to do a specific job a few times before you get a good idea on how much to charge based on how long it will take and the materials needed.
4. What is your overhead per a month: Overhead is stuff like business insurance, tool and equipment costs spread out over a year, licensing, taxes and everything that you need to pay monthly that you cannot charge client for.
Remember your price does not need to be fixed, it can fluctuate based on the amount of work you have and the season.
Your goal should be to come up with a fair price that your customer is happy to pay based on the quality if work they received and makes you a good profit, so you can continue to provide quality work.
5. Marketing and sales plan
A marketing plan should be about how are you going to reach your ideal customer. There are a number of different ways to market a handyman business but the best one is word of mouth and referrals. If you can consistently get referrals you will consistently have more business than you can handle.
Some marketing ideas for handyman businesses.
A good website that showcases your work and expertise
Posting business cards and posters on community bulletin boards
Door to Door advertising
Cold emailing potential clients like realtors and property managers
Cold calling potential customers on the phone
Sales is simply getting your leads to choose you to do their work. Everyone gets nervous about sales but really its should not be salesy. The number one question you potential customer has is will the work get done the way I want it to for the price I can afford. The number one reason don’t buy from someone is that they are scared of making a mistake and ending up worse off than they are right now.
Building a handyman business from the ground up takes a lot of initial work and investment. But if you have a clear business plan and realistic financial projections, you’ll be in good shape to succeed. First, you need to factor in the cost of supplies and equipment. Will you need to purchase any tools or vehicles? How much will it cost to rent or lease space for your business? Then, you need to think about the cost of labor. If you’re hiring employees, what will their salaries be? What are the going rates for independent contractors in your area? Finally, don’t forget to budget for marketing and advertising. You’ll need to generate awareness for your business if you want customers to start coming through your door.
Your plan needs to clearly state how much business you need to put on the books to break even. Everything over that should be profit.
2. Register your business with the local and state authorities
Every state and city is different for who needs to register and at what point you need to register your business and get a license. Some state and cities put a dollar limit on it for example any project under a 1000.00 and you don’t need to get a permit. Sometimes it is based on the job itself. If you replace a light or plumbing fixture you may need to get it inspected.
Make sure you research the local law and regulations so you don’t get into trouble and risk your business reputation.
3. Get Business insurance and a business license
If you own a handyman business, you may be wondering if you need to get small business insurance. The answer is yes! There are many reasons why small business insurance is a good idea for business owners. First of all, handyman businesses are often liable for any damage that they cause to their clients’ property. If you don’t have insurance and something goes wrong, you could be on the hook for thousands of dollars in repairs. Additionally, business insurance can protect you from lawsuits filed by customers who are unhappy with your work. Even if you’ve done nothing wrong, the cost of defending yourself in court can be very high. Finally, business insurance can give you peace of mind knowing that you and your business are protected in the event of an accident or disaster. Whether you’re just starting out or have been in business for years, business insurance is an important investment.
4. Create A Website
A business can be a great way to earn some extra income. However, if you want to attract customers, it’s important to have a professional-looking small business website. While social media pages are a great way to promote your business, they shouldn’t be the only place where potential customers can find information about your services. A website will give you more control over your branding and allow you to showcase your work in a more professional manner. In addition, a website will make it easier for customers to find your contact information and schedule appointments. If you’re serious about growing your handyman business, setting up a website is essential.
Your handyman website should include information about the services you offer, your contact information, and your prices. You should also include some photos of your work, so potential customers can see what you’re capable of. In addition, your handyman website should be easy to navigate and mobile-friendly.
A handyman is a skilled generalist who can perform a wide range of repair and maintenance tasks. To be successful in this business, it is essential to have the right tools for the job. A basic toolkit should include:
– A hammer for driving nails and pulling them out.
– A screwdriver for tightening and loosening screws.
– A tape measure for measuring spaces and objects.
– A level for ensuring that surfaces are level.
– A saw for cutting wood.
– A drill for making holes in surfaces.
– A utility knife for cutting materials like carpeting and vinyl flooring.
– A set of pliers for gripping and twisting wires and other small objects.
-A set of wrenches for loosening and tightening nuts and bolts.
In addition to these basic tools, it is also helpful to have a few more specialized tools on hand, such as a power washer, a ladder, and a set of saw horses. By stocking your toolbox with these items, you will be prepared to tackle any repair or maintenance job that comes your way.
7. Set up your business software
In any business, it’s important to have the right tools for the job. For a handyman business, this means having a good software system in place. With the right software, you’ll be able to keep track of your appointments, invoices, and customers. You’ll also be able to see which jobs are most profitable and where you need to make improvements.
The software every handyman should have –
Basic accounting software: small business Accounting software should allow you to create and send invoices, track payments, and analyze if a job was profitable or not. The best software I have used is FreshBooks for a true accounting system but if you just need a free model to send the occasional invoice Wave is a good option. The best software allows you to link your business bank account. With your business bank account attached you can instantly see where you stand on a daily basis with your cash flow.
Estimating software: I don’t believe that most handymen need a true estimating software. They can get by with just a invoicing software that allows them to create an quote and turn that into a invoice.
CRM software: Customer relationship management software is a must for any small business. You need to keep track of each customers contact information and be able to send out periodic communication.
How Profitable Is A Handyman Business?
Most handymen want to know, how profitable is a handyman business. A handyman business can be very profitable. If you price your jobs correctly and keep your overhead low you can easily make over a 100,000 dollars a year.
Is A Handyman Business A Good Business To Start?
A handyman business can be a very good business to start after all, there’s always a demand for handymen—whether it’s for repairing a leaky faucet or fixing a broken window. And with the right marketing and pricing strategies, you can build a thriving business. However, there are a few things to keep in mind before taking the plunge. For one, you’ll need to be comfortable working with your hands and have a good amount of experience with home repairs. In addition, it’s important to be organized and efficient, as customers will expect quick turnaround times. Finally, remember that word-of-mouth is everything in this business—so be sure to deliver quality work that will leave your customers happy and wanting to recommend you to others. If you’re up for the challenge, then starting a handyman business could be a great way to achieve your entrepreneurial dreams.
Do I Need A Handyman License?
Most states do not require a license for handymen if the job amount is under a specific amount. However, there are some important things to consider before you get started. You do need to check with your local laws and regulations to see if there are any requirements for handyman businesses in your area. At the very minimum make sure you’re adequately insured and bonded to protect yourself and your customers.
What Type Of Work Can A Handyman Do Legally?
A handyman is a tradesperson who provides a wide range of services, including repairs, maintenance and renovation. In most jurisdictions, there are limits on what type of work a handyman can legally do. For example, in some states a handyman is not allowed to do electrical work or plumbing. However, in other states a handyman may be able to do these things as long as they are not the main focus of their business. A handyman may also be able to do things like painting, carpentry and minor repairs. The best way to find out what type of work a handyman can legally do in your state is to check with your local licensing authority.
How Much Does It Cost To Start A Handyman business?
Starting a handyman business can be a great way to achieve financial independence and control your own work schedule. However, it is important to consider the costs of starting and running a business before making the decision to become a handyman. The most important expense when starting a handyman business is insurance. Handymen are often required to carry liability insurance in case they damage a client’s property or injure themselves while working. In addition, many states also require handymen to have workers’ compensation insurance. The cost of insurance will vary depending on the size of the business and the coverage levels selected, but it is typically a significant expense. In addition to insurance, other costs associated with starting and running a handyman business include marketing, vehicle expenses, tools and supplies, and licenses and permits. By taking all of these costs into consideration, you can make an informed decision about whether starting a handyman business is right for you.
What do i need to start a handyman business?
First and foremost, you’ll need to be handy. This may seem like a no-brainer, but it’s crucial that you have the skills necessary to complete the majority of handyman jobs that will come your way. Even if you’re not an expert in every trade, it’s important to have a strong foundation in basic carpentry, plumbing, electrical work, and other essential repair skills.
Secondly, you’ll need to invest in a reliable truck or van that can serve as your mobile headquarters. This vehicle will need to be large enough to store all of your tools and materials, and it should be equipped with any safety features that are required by law in your area.
Finally, you’ll need to get liability insurance for your business. This will protect you financially in the event that someone is injured while you’re working on their property. With these three things in place, you’ll be well on your way to starting a successful handyman business.
How to run a handyman business
A business can be a great way to make a living while helping others with repairs and maintenance around their homes. There are a few things you’ll need to keep in mind if you want your business to be successful. You’ll need to be sure that you’re familiar with a wide range of repair and maintenance tasks. The last thing you want is to start a job and then realize you’re in over your head. It’s important to build a good rapport with your clients. They should feel like they can trust you to do a good job and not take advantage of them financially. Always be punctual and professional in your work. Handyman work can be unpredictable, but if you make sure to always show up on time and deliver quality work, you’ll find that repeat customers will keep your business thriving for years to come.
How to register a handyman business
Handyman businesses provide a valuable service to homeowners and businesses by offering repairs, maintenance, and installation services. While starting a handyman business may seem like a daunting task, there are a few simple steps that can help you get started. You will need to register your business at the local, state and federal levels.
Each level will be different but in general they are all looking for tax information.
what makes a profitable handyman business?
A profitable handyman business is simply a business that earns more than it spends. the good news is that most handyman businesses are profitable and if you smart a bout your pricing you will have a profitable business