How to start a handyman business

To start a handyman business, you need to determine what type of handyman business you want to start, do market research on your local area, and research handyman-related laws in your state. Here are more details on these steps and others you can take to start a handyman business:

1. Determine what type of handyman business you want to start. There are a lot of different types of handyman businesses, so it's important for you to have a firm idea of the kind you want to create before taking any other steps.

   There are handyman businesses that service residential homes. You also have the option to service commercial businesses and properties. This also comes down to what handyman services you want to supply.

   You might think that starting a handyman business means you need to be a jack of trades in terms of repairs, maintenance, and other forms of physical labor. While it does help to have a wide variety of skills, your handyman business is likely to be more successful if you specialize in a certain area or niche.

   Licenses also come into play when making decisions on services. For instance, in many states, you must have a professional license to provide services concerning things like HVAC systems, plumbing work, or electrician services.

   Just think about all of the different companies out there that provide highly specific services, like garage door repair companies, landscaping businesses, locksmiths, home security installers, masons, and many others.

   As a handyman, you will need a broad range of services, although it is a good idea to specialize in certain services too. Your skills should probably span several different trades, but also have some relations, and similarities.

   A good starting point is to create a list of all of the services you are qualified to offer right now. This can help you narrow your field and find a niche market or several possible niche markets you can appeal to.

   Eventually, you might want to expand into a handyman business that covers all markets, and that's a great goal to have, however, initially you should try to start your business in a smaller fashion, especially if you are the only worker you are planning to have in your handyman business.

   Try to look into services that you can offer that are not prevalent in your community, this means you will have a wider range of possible clients with less competition.

   Determining what type of handyman business you want to start is also important in terms of figuring out what equipment you are going to need, and how many people you should hire (if any), either as full-time employees, or independent contractors.

   If you are working on a tight budget, you can start a smaller-scale handyman business that services small and moderately sized residential homes or maybe even some businesses. If you are going to be wearing many or all of the hats in your business, just make sure you don't take on jobs or services that you can't handle by yourself.

2. Conduct market research on handyman businesses in your area. It is critical to do a lot of research on your local handyman market, this means finding out the consumer base in your area, as well as any competing handymen, contractors, businesses, or companies.

   It's best to do this research before you start to do anything else in preparation for your handyman business. You might also find that this makes you pivot from your initial handyman business idea if there are already a lot of competitors in that niche of services.

   You need to look into all types of handyman and maintenance-related businesses, those that service residential homes, ones that service commercial buildings, and those that do both.

   Understanding your competition, who they serve, and the price quotes they have will help you determine how you can make a successful handyman business that will stand out.

   When looking at other local competitors, try to get a sense of the types of homes or buildings they service, do they specialize in certain homes or buildings, or are their services more broad, and what is the range of services they offer? If they don't list approximate prices on their website, a call to them for a price quote is a good idea.

   Another great way to learn about competitors is to talk with their customers. Here you can get information on what they are doing right and what they are doing wrong, and at the same time you'll be doing customer research. This will be of great value later when you plan your business and decide on marketing strategies.

3. Research the handyman laws in your state. Before making any big moves with your business, you need to research any applicable handyman laws that might exist in your state.

   You should cross-check the list of the possible services you have created with the different laws and requirements that might apply to them. Every state is different, so there is no universal advice for this step, you just have to do the research.

   Most critical is to find out what services you can offer without a license in your state, and what services you can not offer without having a license in your state. You are likely to find that there are plenty of services you can provide without a license, but you should still do this research, just to be safe.

4. Create a handyman business plan. Your business plan should cover customer research, competitors, a startup budget, and financial projections for your painting business.

   Other things you should add include the problems you will be solving for clients and customers, what sets your business apart from the competition, the resources your business will depend upon, and your businesses' mission statement and vision for the future of the company.

   Your business plan is a critical document for yourself, especially if you are looking to get a small business loan or investors in your company.

   You also need to figure out exactly what services you are going to offer. Are you only going to offer only one type of handyman service or several?

   Providing more services can help you stand out from competitors and create multiple revenue streams within the business, however, it is also most likely going to increase your operating costs. Just be sure to think all of these important issues through when starting to develop your business plan.

   At this stage, you should also choose a name for your business. Pick something concise, catchy, and memorable.

5. Obtain the necessary startup capital. The money needed to start a handyman business can vary widely.

   Depending on what type of services you are going to offer and the overall structure of your business, it may cost you as little as a few hundred dollars or as much as a few thousand dollars to start your handyman business.

   Equipment and transportation are the main factors, as well as license fees, business insurance, and any other insurance you might need to operate your handyman business.

   Determine if you can self-fund the starting of your business or if you are going to need a small business loan or get startup capital from investors.

6. Find out what permits, licenses, and insurance you may need to obtain. As has been mentioned, certain handyman services require you to apply for a combination of licenses and permits from your state and federal government.

   If this is a solo business venture, that you don't think you will want to expand in the near future, you should think about structuring your handyman business as a sole proprietorship.

   However, if you plan to hire other employees, or if that is a near-future goal for your handyman business, you should then consider applying to become a limited liability company (LLC). If you operate as an LLC, your personal and company information is entirely separate. While this changes your tax status, it does protect you from personal losses based on the company's performance.

   Once you have this determined you'll also want to get a Federal Tax ID number. This helps you get a license to run your business. This is also referred to as an EIN or Employer Identification Number.

   Requirements will vary from state to state, so it's important to do your own research into your specific state's requirements. Business insurance is necessary to protect your LLC from liabilities, and other possible claims. You also obviously need auto insurance for all of your business-related vehicles.

   It is highly recommended that you seek the counsel of an experienced insurance agent to determine all the necessary insurance policies you should get for your handyman business.

7. Determine the prices for your handyman services. The market research you performed earlier will now help you in determining the prices of your services.

   At first, you need to try to price your services at competitive rates, in order to draw business away from any potential competition. The trick is that you should not charge too little either, because you need to sustain your business and have it be profitable.

   Handyman businesses can actually generate a lot of money. Some even earn upwards of $100,000 per year, and these businesses sometimes only provide very basic services.

   An experienced handyman can charge as much as $200 per hour, depending on the service they are providing. You should not start out charging these prices unless you somehow know you will have a clientele that will pay them. However, it is a good goal to set for your business.

   Most in the industry charge somewhere between $40 and $100 per hour for handyman services. Remember, set competitive rates at first to gain more customers and clients.

   Don't worry, your price rates are not fixed in stone, and you can adjust them as you see fit during the development of your handyman business.

8. Market your business. Utilize the internet to market your handyman business.

   In the modern world, social media is a critical marketing tool. You should create social media accounts for your handyman business and try to gain friends and followers. On your business social media accounts, you can post about your handyman services and pricing, as well as show actual pictures of your completed projects.

   Another crucial form of digital marketing is the development of a website for your handyman business. This is relatively inexpensive, and if you have some extra cash, you can hire a professional to do a professional-grade website for your business.

   Your website should include your pricing and contact information, as well as things like customer testimonies about your services. Make sure your social media business accounts link to your website and vice versa.

   Remember, one of the most reliable forms of marketing for a handyman business is word of mouth. Here you don't actually have to do much of the marketing at all, just simply provide excellent services to your customers and ask them to recommend you to other possible clients and customers.

   You can also choose marketing strategies that are more old-fashioned and traditional, such as posting advertisements in print publications and newspapers, handing out flyers and business cards, and posting promotional materials on boards at community centers, apartment buildings, and local businesses.

9. Hire qualified and motivated employees. Depending on the scale of your business plan you may not need many (or any) employees initially, or perhaps you do need a large team.

   To provide handyman services to many homes, commercial buildings, or a combination of the two, at the same time, you are going to need a considerable staff.

   There are also going to be administrative duties that you are likely going to need assistance with. You may not need staff for administrative functions at first, however it is always a good idea to plan for the future if your business expands.

   If you are planning on keeping your handyman business on the small side, you can get away with wearing many hats in the business, and hiring only a few employees, or even no employees, but if you want your business to grow in scale, you are going to need a workforce.

10. Invest in equipment and supplies. There are many tools and products that go into handyman services, you should make a list of everything you think your business will need.

    This also depends on exactly what services you are going to provide. Here are some common items that all people in the handyman business should own:

    • Wide variety of tools, including hand and electrical tools

    • Tool boxes

    • Tool belts

    • A good sized truck for transporting all of your gear

    • Ladders

    • A wide array of screws, nails, etc.