Are you ready to start your own profitable handyman business? If yes, then you need to manage many things like creating and managing schedules, assigning jobs to handymen, selecting the type of job, setting your pay rates, and being in complete control of your income.
Starting a new handyman business is the best decision you have taken, but it may seem like a difficult job if not done with proper precautions. Now, what are the precautions that you need to take care of? How do you manage your handymen? Which services will you include in your business?
We have come up with an article that depicts how to start a handyman business from scratch and answer all your questions. So let’s get started.
Table of Contents
Handyman Business: A Basic Introduction
A handyman business offers home repairs and related maintenance tasks, typically based on handyman’s skill sets and customer demand. Such services include both interior and exterior maintenance and repair skills.
Unlike professional contractors, electricians, or plumbers, handymen don’t require any specific license or learn new technology to perform the task and have lower rates. The target market for many handyman businesses is homeowners and property managers. Let’s have a look at the 7 steps guide to start your own handyman business.
How To Start a Handyman Business? – 10 Steps Guide
So, you are ready to take the next step and start your own handyman business. Making the exciting leap from contractor to small business owner takes work, and creating a successful handyman business means putting in the time and effort to start things correctly. From making a business plan to a financing and marketing plan, I will share essential steps for building a handyman business.
Here are the steps to follow to start your handyman business from scratch.
- Create a Handyman business plan
- Make a List of Services You Offer
- Establish a Business Entity
- Name Your Business
- Get Your Handyman Licenses and Permits
- Apply For Insurance
- Develop Effective Marketing Strategy
- Learn about the Handyman Laws in Your State
- Purchase Required Tools and Equipments
- Start Using Tools Like FieldCamp
Create a Handyman Business Plan
Writing the perfect business plan is the essential aspect that helps new business owners map and design the business workflow for starting a handyman business.
In your business plan, you need to make sure of the following key points are included:
- The ongoing expense and initial startup costs
- Based on your job skill set, you need to identify the target audience
- Decide on an expert service you want to include in your handyman business
Do a Market Research
Before starting a handyman business, it’s helpful to do a competitive analysis. Google handyman and the name of your city or town to find out who else is offering similar services in your area. I suggest looking for their services, prices, geographic location, customers, and marketing plan. Armed with this information, you will have a good idea of the handymen in your area. Also, you will know what kind of clients they serve and how many clients do they have, which will help you decide whether to find customers like them or look for different ones.
If you are planning to take any business loan from the bank, you need to provide the business plan to the bank as a handyman business owner. Moreover, you can also include some of the marketing materials that help a handyman contractor company enhance the performance to a great extent.
Make a List of Services You Offer
Now, you need to select the expertise you want to include in your business. Nowadays, you will come across multiple services that you can offer in this competitive world. But do not ever try to make the mistake of including a vast number of handyman services at the starting stage. You need to get started with services in which you are perfect, whether on-site or at the job site.
Some of the standard services that you can include in your business are:
- Leaking Plumbing
- Light Fixture Installation
- Drywall Repair
- Fresh Coat of Paint
- Exterior Upgrades
- Deck Repairs
- HVAC Maintenance
- Flooring Improvements
- odd jobs
In some of the handyman services, you need to opt for the license to use. If you are interested in using those services, you can include them; however, you need to invest some money.
Moreover, whatever expertise you select must be in great demand, and you can eventually run it in a more decent and well-organized way.
Establish a Business Entity
A business entity is a practical approach that allows you to operate your company legally. Generally, for your handyman company, you can select any of the following business entities as per your business requirements:
- Sole proprietorship
- Limited Liability Company (LLC)
Now, whatever legal entity you select, each comes up with its pros and cons, including liability exposure, costs, and administrative requirements.
Along with this, you need to open a business bank account to keep your business finances and personal finances different.
Name Your Business
One of the most challenging tasks in starting a handyman business is to decide the perfect business name.
Whatever the name you select, it should be catchy that the potential customers get attracted once they see the name. In addition, you should keep your name to identify what type of services you offer by seeing the name.
One of the best recommendations is that you should try to find a name with an available domain for the business website and isn’t similar to other local businesses.
Get Your Handyman Licenses and Permits
Usually, based on your specific location, licensing requirements and regulations may differ. Even some states or cities require that the experts from your business hold the necessary licenses. While some states don’t require licenses, it depends on the type of handyman work they need to perform.
Most handyman businesses start as sole proprietorships because they’re the most straightforward structure to use if you’re planning to build your own, with no partners or employees. You’ll also need a business license once you’re registered. It will allow you to run your main business.
Apply For Insurance
When you plan to start a new business, do not forget to buy insurance. You can quickly get the right small business insurance from insurance companies, which eventually saves your time and effort.
For purchasing the business license, proof of General Liability Insurance is required that quickly enhances credibility in customers’ faces. In addition to it, having a handyman insurance policy in your business structure eventually increases business development.
The customers will opt for a handyman license rather than the one without any insurance. Business insurance helps you protect from third-party claims for any injury to employees or property damage.
Develop Effective Marketing Strategy
To market your business effectively, word-of-mouth and customer referrals are the best options that help you enhance the traffic to your company. Additionally, handypersons can even do the marketing on their own.
You can even build a responsive mobile application that quickly demonstrates your handyman business operations.
Build a Simple Website
People use search engines to find anything they need. Hence, creating an online presence by building a website is an excellent step for advertising.
The website doesn’t have to be anything fancy. As long as your consumers know what home repair services you offer, at what price, at what hours, you are good to go. Ensure that the website is mobile-friendly since most users search the web from a phone.
Hence, creating an online presence by building a website is an excellent step for advertising.
Social Media Marketing
Social media platforms like Facebook, Twitter, and Instagram have become commonplace for marketing your business. Nowadays, people spend 30% of their time online on social media. Hence, it is a great opportunity for your business growth and you should capitalize on it.
Create a page for your business on these major social networking sites and free job listing sites, and keep posting regularly. You could post updates about your work, video testimonials from clients, tutorials and DIY projects, and even social issues in your locality. Doing this gives the clients a glimpse of how you conduct business. Also, you can share your business cards with customers.
You can use vehicle signage for low-cost marketing efforts that help the customers view your business operation on running vehicles. Such marketing efforts help even if the vehicle is parked near your house and the neighbors ask about the work quality.
Customer testimonials are one of the most effective ways to market small businesses. They boost your company’s reputation and help build trust amongst your consumers. Hence, next time you service a client, request them to provide a testimonial. They can also leave an online review.
You can compile a book of testimonials or put them up in your office. Thank them for their feedback, and resolve any problems if it arises. It is also essential that you address any negative reviews of your consumers. Take immediate action to rectify the situation.
It will create an impression among your customers that you care about their opinions and the services they get.
Learn About The Handyman Laws in Your State
Getting a contractor’s license is a must if you want to start a handyman company. The contracting laws of every state are different. Hence, determine which services require a license.
One cannot provide services in electrical, plumbing, or HVAC without a license. Also, a contractor’s license is necessary if you want to do a job over 1000$.
It may sound very limiting, but don’t worry. Many jobs fit within those limits and are more than enough to run a profitable business.
Although you could take bigger jobs and make more money with a license. But, if you are focusing on small repairs, then a license is not needed.
To get a general idea of the laws, go to the state’s contractors’ board website. They have a FAQ section for handymen, which will outline laws related to repairs and maintenance.
Purchase Required Tools and Equipment
Here is the essential equipment need that every handyman needs:
- Claw Hammer
- Tape Measure
- Utility Knife
- Cordless Power Tool Set
- Wire Stripper Pliers
- Smart Handyman Service Software
Start Using Software Like FieldCamp
With FieldCamp, you can automate and streamline your business operations. Here are the benefits of using this software:
- FieldCamp has made it easy to assign jobs to your field staff. They will get all the job details from one place. Also, our software is compatible with both Android and iOS.
- Your field service technicians can clock in and out on the jobs assigned by you. FieldCamp will automatically give you the update, which can be “On my way,” “In progress,” or “Complete.”
- With FieldCamp, you can see your technician’s current and future jobs, along with details and immediate status.
- Your technicians can send invoices from the field with a single click. Creating and sending invoices is easier than ever now. The invoices will be instant, accurate, and follow-up is automated.
- FieldCamp uses state-of-the-art encryption. Hence, your data is completely safe. Also, you can set a unique PIN to quickly access your account without having to log in again.
Automate Your Handyman Business Operations
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The Pros and Cons of Starting a Handyman Business
- The startup costs are low if you have the required tools and equipment
- It’s an attractive business to start on a part-time basis
- There is potential to generate high profits
- The overhead expenses are low
- Word-of-mouth and referrals are excellent marketing tools in this business
- Work exclusively with real estate agents or on home remodeling. It’s a perfect opportunity to specialize in one area
- Get the opportunity to build your handyman franchise
- You need to be in a healthy physical state
- Work sometimes may be seasonal
- It can take some time to build a customer base
- Having a comprehensive set of work tools is mandatory
- You may need a contractors’ license
The startup costs typically depend on your business requirements. But, on average, you can expect to spend about $2,000-$4,000 to start your own handyman company.
One of the complicated jobs is to start a handyman company. Handyman business involves freedom to work, and it does not seem more profitable. But, on average, a handyman (maintenance and repair worker) makes about $36,000 a year.
I hope that this article proves helpful to you and helps you start your own handyman business from scratch. Here, we discussed the important steps on how to start a handyman business, the pros & cons of it, and answered important questions.
FieldCamp is one such service scheduling software that improves the productivity level of your technicians, officers and admins of the business. It helps in scheduling and assigning jobs, creating new schedules, invoice creating and payment process, and more.