How To Start a Handyman Business in 2021? – [7 Steps Guide]

A handyman is an individual who offers a range of home repair services based on skillset and something that meets the customer’s demand.

Common services that a handyman provides include maintenance and repair, both exterior and interior trade skills. So, if you possess handyman skills and planning to start your own handyman business, then you have landed at the right place.

In this article, we have answered the question: How to start a handyman business? So let’s get started.

Overview of Handyman Business

A handyman business offers services related to home repairs and related maintenance tasks, typically based on their skill sets and customer demand. Such services include both interior and exterior maintenance and repair skills.

Handymen are expert professionals who possess skills in multiple areas, no matter whether a small-scale or a large-scale project. A single handyman can efficiently perform the task like putting up drywall, tile floor installation, fixing a leaky faucet, and many more.

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 handyman businesses is homeowners and property managers. Now, let’s discuss how to start a handyman business in simple steps.

How To Start a Handyman Business? – 7 Steps Guide

Below is the list of steps that will help you to start your handyman business from scratch.

7 Steps to Start a Handyman Business

Step 1: Make Perfect Business Planning

For starting a handyman business, your business plan is the essential aspect that helps you map and design your business workflow.

It’s not just like that only banks require the business plan from small business owners. In your business plan, you need to make sure of the following key points:

  • 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

Moreover, you can also include some of the marketing materials that help a handyman contractor company deal with enhancing the performance to a great extent.

Step 2: Make a List of Services You Offer

Once you successfully crossed step 1, 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 mistakes to include a vast number of handyman services at the starting stage. Just you need to get started with services in which you are perfect whether on-site or job site.

In some of the handyman services, the owners need to opt for the license to use. If you are interested in using those services, you can include them; however, you need to be ready to invest some money.

Moreover, whatever the expertise you select, it must be in great demand, and you can eventually run it in a more decent and well-organized way.

Step 3: Forming a Business Entity

A business entity is a practical approach that allows you to operate your handyman business legally.

Generally, for your handyman business, you can select any of the following business entities as per your business requirements:

  • Sole proprietorship
  • Partnership
  • Corporation
  • Limited Liability Company (LLC)

Now, whatever business entity you select, each comes up with its pros and cons, including liability exposure, costs, and administrative requirements.

Step 4: Name Your Business

One of the most challenging tasks in starting a handyman business is to find the business name.

Whatever the name you select, it should be catchy that the potential customers get attracted once they see the name. You should keep your name such that customers 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 having a common domain name on the website and isn’t similar to other local businesses.

Step 5: Get Your Business 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 handyman business hold a license. While some states don’t require licenses, it depends on the type of handyman work they need to perform.

For example, to perform jobs related to plumbing, electrical, or even roofing, a handyman business owner must have a license. Moreover, many towns even require a contractor’s license to perform the handyman works on a large scale.

If the situation arises that your handyman may need to work from another place, then you must have a permit from another company to run everything smoothly.

Step 6: Apply For Business 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 the business having a handyman license rather than the one that does not have any insurance type. Insurance helps you protect from third-party claims for any injury to employees or property damage.

Step 7: 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, handymen can even do the marketing on their own.

You can even build a responsive website that quickly demonstrates your business operations’ working in your marketing strategy. In addition to it, you can also opt for other marketing activities like:

  • Using social media platforms
  • Direct mail promotions
  • Print advertisement

The business owner can also use online marketing on leading sites like Facebook, Craigslist, Yelp, and even Angie’s List.

For low-cost marketing activities, you can use vehicle signage that helps the customers view your business operation on running vehicles. Such marketing strategies help even if the vehicle is parked near your house and the neighbors ask about the work quality.

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The Pros and Cons of Starting a Handyman Business

  • Lower startup costs (If tools and equipment are available)
  • Start your company even on a part-time basis
  • Quickly gain high-profit margins
  • Low overhead expenses
  • Opportunity to grab expertise by working with a real estate agent or on home remodels
  • Complete focus on commercial and residential services
  • Franchise opportunities
  • You and your work need to be in a better physical condition
  • You need to deal with seasonal work
  • Complex licensing requirements in some areas
  • Handymen must possess substantial experience in working with home construction, common repair
  • Business license, contractor’s license, liability insurance, and some bond types based on areas might be required as per the company demand

7 Tips For Starting a Handyman Business in 2021

It’s high time to see the list of essential tips that help you and your handyman business know the importance of starting a business from scratch.

7 Tips to Start a Handyman Business

1 – Figure Out If There Is A Market For Your Business

For starting your own handyman business, the first and foremost thing you need to perform is identifying the list of services in demand.

Usually, it’s a common mistake that most entrepreneurs make, and in the end, they suffer a lot in their company.

Apart from this, selecting the perfect location for your business is essential. It’s a crucial decision to choose a location because you need to verify whether any other handyman shop is available in your nearby area. In such cases, there are more chances of tough competition.

On the other hand, it might happen that the location that you select might not have any of the similar handyman shops far away. Eventually, you can quickly start your company as there will be low competition and a high earning scope.

2 – Check Out What Others Are Doing

The next essential tip for starting a business is to perform intimation. It means that you need to analyze the list of activities other businesses are doing.

With intimation, you can quickly learn about different techniques that you can implement in your business. Moreover, you need to figure out the pros and cons of your competitors and the reasons that they are performing well and you are not.

It is nothing but the competitor’s research that helps you understand the areas you need more improvement.

There are certain things that business owners should consider:

  • Analyzing their company website to identify what services they provide and their respective pricing
  • Having a look at their marketing tools
  • Having a conversation or communication with a local handyman of your area to get advice on his personal experience on working with the handyman business

These things will help you to understand the business pattern of your competitors and enhance your business growth.

3 – Make Arrangement For Business Insurance

As a small business owner, it becomes your prime responsibility to know the importance of insurance.

Appropriate preparation for the business insurance must be kept ready with you. So, at the time of emergency, enough finances must be available with you for supporting online trading companies to a great extent.

Whatever insurance policy you select, it should also have other factors like providing a required amount of resources in case of an accident, illness, or even some injuries, specifically on-the-job.

Such claims help you to cover the essential metrics that occur during any unforeseen and complicated situation. It also helps your contractors work as per the schedule defined, and you can easily manage the organization.

When you plan to purchase business insurance, you need to make sure that it comes up with all the essential policies.

4 – Make an Estimate of How Much Money You Require

For starting your handyman business, you must be ready to estimate how much money you typically require. Generally, there are two ways where you can categorize your expenses.

  • Fixed cost: Expenses that are mandatory for running your business
  • Variable cost: Expenses of items that you can ignore and consider as per your needs

In general, you, as an owner, must chalk out the expenses in the right and well-defined manner that help to achieve your business goal quickly.

Accordingly, a proper estimation of your business plan is a must by considering the daily working capital requirements.

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5- Expect the Unexpected

One of the significant factors that affect your business is that you need to expect the unexpected. You need to manage several things and perform different jobs while working in the handyman business.

You must be ready to deal with various work opportunities while working with the handyman business in simple words. You need to perform multiple activities in a different hierarchy to gain massive success in your industry. You must:

  • Enhance the marketing skills for your services
  • Build invoicing and payment billing system
  • Developing a business website
  • Perform a business registration
  • Open your business bank account
  • Purchase tools and equipment
  • Save your receipts and invoices

The list does not end here, as other essential things significantly impact your business as per your basic needs.

6 – Put Together Your Perfect Business Plan

Once all your essential things are ready with you, it’s time to mention such things in your business plan. You need to be very careful while including every small and significant aspect of your needs.

In your business plan, you need to achieve everything related to business aspects from your handyman business. To get into action, you can communicate with other colleagues to know the working patterns of business operations.

One of the best recommendations is to bifurcate your business plan in different stages to achieve business goals. Even you can include various items to include in your business checklist by asking the question: What do you want to accomplish in the first six months or the next one year or five years?

Once your analysis is done, you need to make sure that you have quickly achieved your goals. It is possible only if you’re able to:

  • Make a detailed report of list of clients you now have
  • Analyze the business profitability your gain based on the location you’re working
  • Deal with the list of employees that can be easily afforded in starting stage
  • Identify the real income source

If you have all these parameters, no one can stop you from improving your customer service and growth.

7 – Get Proper License

To become a boss of your handyman business, you need to have a legal business license. You can quickly get the license from the local authority or state government.

Having a proper license for your handyman business states that you have cleared all the state norms, contracting laws, and even handyman laws to run your business successfully to perform these types of work.

These are some of the essential tips that you must consider to enhance your handyman business. So, you need to consider the key factors that quickly control your high usage of money on a large scale.


The startup costs typically depend on your business requirements. On average, you can expect to spend about $2,000-$4,000 to start your own handyman business.

One of the complicated jobs is to start a handyman business. 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 you are now ready to become a boss of your own successful handyman business.

In this blog post, we have come across various steps that make it easy for you to start your business from scratch. So, take your valuable time to view each step mentioned in the article.

Moreover, we have also discussed some key tips that will enable you to make a perfect decision on pre-requisites before starting your industry. Trust me, no one can stop you to enhance your business productivity if you follow every step and tips for your business.

Want to streamline daily operations and grow your service business?