The median annual wage for a handyperson is $46,700USD per year.
$1,250 to $5,000USD
- Technical Skills
- Problem-solving Skills
- Time Management
- Communication Skills
- Customer Service Skills
High
Three out of four have admitted they’ve had to either abandon a DIY project or call in a local handyperson, showcasing a reliance on skilled workers.
Researching Your Handyman Business Idea
What Services Do Handyman Companies Offer?
Handyman, or handyperson, companies offer a diverse range of services to meet the needs of their clients. Here are some of the most common types of services provided:
- General Home Repairs: This includes a wide array of tasks such as fixing leaky faucets, repairing drywall, patching holes, and replacing light fixtures. General home repair services are essential for maintaining the functionality and safety of residential spaces.
- Installation Services: Handymen often handle installation tasks for various household items, including appliances, ceiling fans, and window treatments. Their expertise ensures that these installations are completed correctly and safely.
- Painting and Drywall Work: Many handyman services include interior and exterior painting, as well as drywall installation and repair. These services help enhance the appearance of homes and can be tailored to clients’ preferences.
- Electrical and Plumbing Services: While extensive electrical and plumbing work typically requires licensed professionals, a handyperson can perform basic tasks such as installing light fixtures, replacing outlets, unclogging drains, and fixing leaks.
- Outdoor Services: Handyman companies also offer outdoor maintenance services, including deck repairs, fence installations, and landscaping tasks. These services help homeowners improve their outdoor spaces and enhance curb appeal.
- Seasonal Maintenance: Handymen can assist with seasonal tasks like gutter cleaning, weatherproofing homes, and preparing outdoor areas for winter or summer. These maintenance services help protect properties year-round.
By providing a broad range of services, handyman businesses cater to the diverse needs of their clients, making them invaluable partners in property maintenance and improvement.
How High Is the Demand for Handyman Services?
The demand for handyman services has surged significantly in recent years, fueled by various factors such as the rise in home renovations, an increase in homeownership, and a growing trend towards DIY home improvement.
The Bureau of Labor Statistics projects that employment for general maintenance and repair workers will grow by 5% from 2021 to 2031, faster than the average for all occupations. This growth reflects a robust demand for skilled tradespeople who can handle a variety of tasks, from minor repairs to extensive renovations.
The surge in online platforms that connect homeowners with service providers also contributes to this demand. A survey conducted by HomeAdvisor found that three in four said they’ve had to either abandon a project or call in a local handyperson, showcasing a reliance on skilled workers. This shift emphasizes the importance of establishing a handyman business that meets this growing consumer preference.
How to Start a Handyman Business With No Experience
Starting a handyman company without prior experience may seem daunting, but with the right approach and dedication, anyone can successfully launch their business.
This guide will walk you through all the steps you need to get your business up and running. But here’s a high-level overview of the steps to take if you’re starting out with no experience:
Step #1: Research the Industry
Begin by familiarizing yourself with the handyman industry. Explore the types of services offered, pricing structures, and local market demand. Understanding the landscape will help you identify potential opportunities and set realistic expectations.
Step #2: Identify Your Skills and Interests
Consider any skills or hobbies you already possess that could translate into handyman services. Whether it's basic repairs, painting, or gardening, leveraging your existing talents can provide a strong foundation for your business.
Step #4: Learn the Basics
Invest time in learning essential handyman skills. There are plenty of online resources, including tutorials, forums, and courses, that cover various home repair techniques. You could also volunteer for local organizations or work alongside experienced handymen to gain practical knowledge.
Step #5: Create a Business Plan
Develop a simple business plan outlining your services, target market, pricing strategy, and marketing approach. A clear plan will serve as a roadmap for your business and help you stay focused on your goals.
Step #6: Obtain Necessary Licenses and Insurance
Research local regulations to determine if you need a license to operate your handyman business. Additionally, having liability insurance can protect you and your clients in case of accidents or damages during your work.
Step #7: Start Small
Begin by offering your services to friends, family, and neighbors. This allows you to build a portfolio and gain testimonials that can attract future clients. Starting small also helps you refine your skills and identify areas for improvement.
Step #8: Market Your Services
Create a simple website or social media profile to promote your handyman services. Use platforms like Facebook, Instagram, or local community boards to showcase your work, gather reviews, and connect with potential clients.
Step #9: Network with Other Professionals
Connect with other service providers in your area, such as contractors, real estate agents, or property managers. Building relationships can lead to referrals and partnerships, helping you grow your client base.
Step #10: Continuous Learning and Improvement
Stay updated on industry trends and continually enhance your skills. Attend workshops, read relevant literature, and engage with online communities to keep learning and improving your services.
What Skills Do You Need to Start a Handyman Business?
Running a successful handyman business requires a diverse skill set to ensure quality service and customer satisfaction. Here are some top skills that can help you excel in this industry:
- Technical Skills: A strong foundation in various repair and maintenance techniques is essential. This includes knowledge of plumbing, electrical work, carpentry, and general home repairs. While you can learn many of these skills on the job or through training, having a basic understanding before you start will be beneficial.
- Problem-Solving Skills: Handymen often encounter unique challenges that require creative solutions. Being able to assess a situation, identify issues, and devise effective solutions is crucial for providing high-quality service and ensuring client satisfaction.
- Time Management: Managing multiple projects and deadlines effectively is vital for success. Good time management skills allow you to prioritize tasks, allocate resources efficiently, and complete jobs within a reasonable timeframe, which enhances your reputation and client trust.
- Communication Skills: Strong communication skills are essential for understanding client needs, explaining services, and providing estimates. Being able to convey information clearly and professionally helps build rapport with clients and fosters positive relationships.
- Customer Service Skills: Delivering excellent customer service is key to building a loyal client base. Being approachable, responsive, and attentive to customer concerns will help you stand out in a competitive market and encourage repeat business and referrals.
- Basic Business Acumen: Understanding the fundamentals of running a business is important, even for a handyman service. Skills in budgeting, pricing, marketing, and managing finances will help you operate your business efficiently and drive growth.
What Training Do You Need to Start a Handyman Business?
While formal training isn't a strict requirement to start a handyman business, acquiring technical skills (especially for electrical or plumbing work) and hands-on experience is essential for success.
For those starting from scratch, think about enrolling in local classes or courses — these can be helpful in getting the technical foundations right. Many community colleges, trade schools, and adult education programs offer courses in essential areas such as carpentry, electrical work, and plumbing. These classes provide valuable hands-on training and foundational knowledge that will serve you well in your handyman career.
In addition to local training, years of on-the-job experience can significantly enhance your technical skills. Working alongside experienced handymen or volunteering for community projects can provide practical insights and reinforce your learning.
Here are some online courses and accreditations from recognized institutions and bodies to help support your training in handyman services:
- National Center for Construction Education and Research (NCCER): NCCER offers various training programs and certifications in construction and maintenance, including plumbing, electrical, and carpentry. Their accredited courses provide foundational skills and knowledge that are recognized across the industry.
- Home Builders Institute (HBI): HBI provides training programs for various construction-related trades, including handyman services. Their online courses focus on essential skills and safety practices, helping you build a strong foundation for your handyman business.
- International Association of Plumbing and Mechanical Officials (IAPMO): IAPMO offers online training courses that cover plumbing and mechanical skills, along with best practices and safety standards. Completing these courses can enhance your plumbing knowledge, a crucial aspect of handyman services.
- American Home Inspectors Training (AHIT):AHIT provides training programs for aspiring home inspectors, which includes essential handyman skills related to home repairs and maintenance. Their online courses offer valuable insights that can help you in your handyman business.
How Much Does it Cost to Start a Handyman Business?
Starting a handyman business can be an affordable venture compared to many other service-based businesses. However, it's essential to understand the various costs involved to ensure you're adequately prepared. Here’s a breakdown of some common expenses you may encounter when starting your handyman business:
Tools and Equipment: $500 to $2,000
Investing in quality tools is crucial for any handyperson. Basic tools may include hammers, screwdrivers, wrenches, drills, and saws. Depending on the services you plan to offer, you may also need specialized equipment.
Licensing and Permits: $50 to $500
While many handyman services do not require a specific license, some areas may have regulations governing certain trades, such as plumbing or electrical work. Check your local laws and budget for any necessary licenses or permits, which can cost between
Insurance: $300 to $1,000 per year
Liability insurance is essential for protecting yourself and your business from potential claims. The cost of general liability insurance for a handyman business typically ranges from depending on your coverage limits and location.
Marketing and Advertising: $100 to $600 per year
To attract clients, you’ll need to invest in marketing your services. This could include creating a website, printing business cards, and running online or local ads.
Transportation
If you plan to travel to clients’ homes or job sites, consider the costs associated with transportation, including fuel and vehicle maintenance. Depending on your location and how far you need to travel, transportation costs can vary widely.
Miscellaneous Expenses
Additional costs might include business registration fees, accounting software, and office supplies. Budgeting around $100 to $500 for these miscellaneous expenses can help cover any unexpected costs.
The total cost to start a handyman business can range from approximately $1,250 to $5,000 or more, depending on the scale of your operation and the services you plan to offer. By understanding these costs and planning accordingly, you can set your business up for success while minimizing financial surprises along the way.
On a Budget? How to Start a Handyman Business With No Money
Starting a handyman business on a tight budget is entirely possible with careful planning and resourcefulness. Here are some cost-saving tips to help you launch your business without breaking the bank:
Tip #1: Start Small with Basic Tools
Instead of purchasing an extensive set of tools right away, begin with the basics that you can use for a variety of jobs. Focus on essential hand tools like hammers, screwdrivers, and pliers, which you may already own or can borrow from friends or family. As your business grows and you start earning income, gradually invest in more specialized tools.
Tip #2: Leverage Free Marketing Opportunities
Use free or low-cost marketing strategies to promote your handyman services. Create social media profiles on platforms like Facebook and Instagram to showcase your work and connect with potential clients. Join local community groups or forums to offer your services and gain visibility without incurring advertising costs.
Tip #3: Network Within Your Community
Building relationships with other local service providers, such as real estate agents or property managers, can lead to valuable referrals. Attend community events or trade shows to network and promote your business without spending money on formal advertising.
Tip #4: Offer Your Services at a Discount
When starting out, consider offering your services at a lower rate or even for free to friends and family in exchange for testimonials and referrals. This approach helps you build a portfolio and gain experience while minimizing upfront costs.
Tip #5: Use Online Learning Resources
Instead of paying for expensive courses or training, take advantage of free or low-cost online resources to improve your handyman skills. Websites like YouTube and community colleges often offer instructional videos and classes that cover various repair techniques and best practices at no cost.
How Much Could You Earn With a Handyman Business?
The earning potential for a handyman business can vary significantly based on factors such as location, service offerings, experience, and the size of your client base. However, understanding the average income can provide valuable insights into the financial prospects of this venture.
According to the U.S. Bureau of Labor Statistics, the median annual wage for general maintenance and repair workers, which includes handymen, was $46,700USD per year as of May 2023. This translates to about $22.45USD per hour.
However, earnings can vary widely based on several factors:
- Experience: More experienced handymen can charge higher rates. Those with specialized skills in areas like plumbing or electrical work may earn even more, often ranging from $50 to $100 per hour for specific tasks.
- Service Area: Your location can impact your earning potential. Urban areas typically have higher demand for handyman services and, consequently, higher rates. Conversely, rural areas may offer fewer clients but lower competition.
- Business Model: Whether you work independently or as part of a larger company can also affect your income. Independent contractors often have the flexibility to set their rates, while employees may earn a fixed salary.
- Seasonal Demand: Some handyman services, like outdoor maintenance or home repairs, may see seasonal fluctuations in demand. Being aware of these trends can help you maximize your earnings during peak times.
Overall, with the right approach and dedication, many handyman business owners can earn a comfortable income, often exceeding the median salary as they build their clientele and establish a reputable brand in their community.
By setting competitive rates, focusing on quality service, and expanding your skill set, you can significantly enhance your earning potential in this rewarding industry.
Building Your Handyman Business
How to Choose What Handyman Services to Offer
Deciding which handyman services to offer is a crucial step in establishing your business. Here are some tips to help you make informed choices about the services that will best suit your skills, market demand, and business goals:
Tip #1: Assess Your Skills and Interests
Begin by evaluating your own skills and interests. Consider the tasks you enjoy and excel at, whether it's plumbing, electrical work, carpentry, or painting. Focusing on services that align with your strengths will not only make your work more enjoyable but also enhance the quality of service you provide.
Tip #2: Research Local Market Demand
Conduct research to identify the types of handyman services that are in high demand in your area. You can do this by checking local classifieds, online service platforms, or community forums to see what homeowners frequently request. Understanding local trends will help you tailor your offerings to meet specific needs.
Tip #3: Evaluate Competitors
Look at what services other handyman businesses in your area are offering. Analyze their strengths and weaknesses to identify gaps in the market that you can fill. By offering unique or specialized services, you can differentiate yourself from the competition and attract more clients.
Tip #4: Consider Seasonal Services
Some handyman tasks are seasonal, such as gutter cleaning or snow removal. Including a mix of seasonal services can help you maintain steady income throughout the year. Be sure to adjust your offerings based on changing seasons and client needs.
Tip #5: Seek Feedback from Potential Clients
Engage with potential clients through surveys or informal conversations to gauge their needs and preferences. Understanding what services they are looking for can provide valuable insights into how to shape your offerings and build a client-centered business.
How to Choose Your Handyman Business Name
Deciding which handyman services to offer is a crucial step in establishing your business. Here are some tips to help you make informed choices about the services that will best suit your skills, market demand, and business goals:
Tip #1: Keep It Simple and Memorable
Opt for a name that is easy to pronounce, spell, and remember. Avoid complex or lengthy names that may confuse potential clients. A straightforward name is more likely to resonate with people and enhance word-of-mouth referrals. Consider testing your name ideas with friends or family to see how easily they can recall and recognize them.
Tip #2: Check for Availability
Before you settle on a name, ensure it is available for use. Investigate if the name is already registered by another business in your state, and check if the corresponding domain name is available for your website. Online tools can help you verify domain availability, and your local business registry will confirm if anyone else is using your preferred name.
Tip #3: Consider Your Target Audience
Reflect on who your ideal clients are and what appeals to them. A name that resonates with homeowners may differ from one that attracts commercial clients. Tailor your business name to align with your target audience’s preferences and expectations, ensuring it conveys professionalism and trust.
Tip #4: Gather Feedback
Once you have a shortlist of potential names, seek feedback from friends, family, and potential clients. Ask for their opinions on the names and whether they find them appealing or appropriate for a handyman business. Their insights can help you make an informed decision and avoid any unintended negative connotations.
Tip #5: Think About Branding
Consider how your chosen name will fit into your overall branding strategy. A strong name can contribute to your brand identity and make it easier to create marketing materials, logos, and a cohesive online presence. Ensure your business name reflects the values and quality of service you want to convey to your clients.
Feeling stuck or lacking inspiration? Durable’s Business Name Generator can help spark ideas and check domain name availability, ensuring you pick a name that’s not only effective but also web-ready.
Why You Need a Handyman Business Website
Having a dedicated website for your handyman business is essential for growth and success in today's digital landscape. Here are several key reasons why investing in a professional website is beneficial:
#1. Showcase Your Services and Portfolio
Your website serves as a platform to showcase the services you offer and display examples of your work. By including photos and descriptions of past projects, you can demonstrate your skills and attract clients who are looking for specific handyman services.
#2. Client Testimonials and Reviews
Including client testimonials and reviews on your website can significantly boost your reputation. Positive feedback from satisfied customers builds trust with potential clients, making them more likely to choose your services over competitors.
#3. Easy Communication and Booking
A website can streamline communication between you and potential clients. By including contact forms, chat features, or even an online booking system, you make it convenient for clients to reach out, ask questions, or schedule services, ultimately leading to increased conversions.
#4. Cost-Effective Marketing
A website is a cost-effective marketing tool that can reach a broad audience. With proper SEO (Search Engine Optimization) practices, your website can rank well in search results, attracting organic traffic without the need for expensive advertising campaigns. This ongoing visibility can lead to a steady stream of clients over time.
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How to Register Your Handyman Company
Registering your handyman company is an important step in establishing your business and ensuring legal compliance. Here’s a step-by-step guide to help you navigate the registration process:
#1. Choose a Business Structure
Decide on the legal structure of your business. Common options include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has its benefits and drawbacks regarding liability, taxation, and regulatory requirements, so choose one that best suits your goals and needs.
#2. Select a Business Name
Choose a unique and memorable name for your handyman business. Ensure it reflects your services and is easy to remember. Once you have a name in mind, check its availability by searching online and checking with your state’s business registry to avoid any conflicts with existing businesses.
#3. Register Your Business Name
If you’re operating under a name different from your legal business name (for example, a DBA — “doing business as”), you’ll need to register it with your state or local government. This process typically involves filling out a form and paying a small fee. Some states may require you to publish a notice in a local newspaper.
#4. Obtain Necessary Licenses and Permits
Research and obtain any required licenses and permits for operating a handyman business in your area. Licensing requirements vary by state and city, so consult your local regulatory agencies to ensure compliance with local laws.
#5. Apply for an Employer Identification Number (EIN)
If you plan to hire employees or operate as a corporation or partnership, you will need an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). You can apply for an EIN online for free through the IRS website.
If you're looking to start a handyman business in a specific state, our State Guides can help. From licensing fees to payroll taxes, they have everything you need to know to start a handyman company in your state.
- How to start a business in Texas
- How to start a business in California
- How to start a business in Ohio
- How to start a business in Georgia
- How to start a business in Michigan
- More State Guides
What Licenses Are Needed to Start a Handyman Business?
Starting a handyman business often requires obtaining specific licenses and permits to ensure compliance with local regulations. While licensing requirements can vary widely depending on your location and the services you plan to offer, here are some common licenses and permits you may need:
- General Business License: Most cities and counties require a general business license to operate legally. This license registers your business with local authorities and ensures that you comply with local laws and regulations. Check with your city or county clerk's office to understand the requirements and application process.
- Home Occupation Permit: If you plan to run your handyman business from home, you may need a home occupation permit. This permit ensures that your home-based business complies with zoning regulations and does not disrupt your neighborhood. Requirements can vary, so check with your local zoning office.
- Contractor's License: While not all handyman services require a contractor's license, certain states mandate it for specific tasks, such as plumbing, electrical work, or major renovations. If you plan to perform specialized services, check your state's licensing board to determine if you need a contractor's license and what the requirements are.
- Specialty Licenses: If you intend to offer specialized services—such as plumbing, electrical, or HVAC work—you may need additional licenses specific to those trades. These licenses often require passing exams and demonstrating a certain level of experience or training.
- Insurance Requirements: While not a license, many states require handymen to carry liability insurance to protect clients and cover potential damages. Additionally, if you hire employees, you may need workers’ compensation insurance to comply with state laws.
- Sales Tax Permit: If your state collects sales tax on the services you provide, you may need to register for a sales tax permit. This allows you to collect sales tax from clients and remit it to the state.
Essential Handyman Business Supplies and Tools
Equipping your handyman business with the right supplies and tools is crucial for delivering high-quality services. Below is a list of essential items that every handyman should consider having in their toolkit:
- Basic Hand Tools
- Hammers: Essential for driving nails and light demolition.
- Screwdrivers: A variety of flathead and Phillips screwdrivers for different types of screws.
- Pliers: Including needle-nose, slip-joint, and locking pliers for gripping and twisting.
- Wrenches: Adjustable wrenches and socket sets for plumbing and mechanical tasks.
- Power Tools
- Drill/Driver: A cordless drill is essential for drilling holes and driving screws quickly and efficiently.
- Saw: A circular saw or jigsaw for cutting wood and other materials.
- Sander: For smoothing surfaces and preparing materials for finishing.
- Measuring and Marking Tools
- Tape Measure: A sturdy tape measure (at least 25 feet) for accurate measurements.
- Level: A spirit level to ensure that installations are straight and plumb.
- Square: A carpenter’s square for checking right angles and ensuring precise cuts.
- Safety Gear
- Safety Glasses: Protect your eyes from debris and dust.
- Work Gloves: Durable gloves to protect your hands from cuts and abrasions.
- Ear Protection: Hearing protection for loud power tools and equipment.
- Specialty Tools
Depending on the services you offer, you may need additional specialty tools.- Plumbing Tools: Pipe wrenches, plungers, and drain snakes for plumbing jobs.
- Electrical Tools: Voltage testers, wire strippers, and a multimeter for electrical tasks.
- Painting Supplies: Brushes, rollers, trays, and drop cloths for painting projects.
- Vehicle and Storage Solutions
- Reliable Vehicle: A van or truck to transport tools and supplies to job sites.
- Toolbox or Tool Bag: To organize and store your tools securely, making it easy to access what you need on the go.
- Storage Containers: For keeping smaller supplies like screws, nails, and fasteners organized.
- Business Management Tools: Investing in software or tools to manage your business operations can streamline your processes. Consider:
- Scheduling and invoicing software
- Website and domain hosting, like Durable’s offers easy-to-use website builders that allow you to create a professional-looking site without needing advanced coding skills.
- Customer relationship management (CRM) systems
- Accounting software
Growing Your Handyman Business
How to Market Your Handyman Business
Effective marketing is essential for attracting clients and growing your handyman business. Here are some tips to help you effectively market your services and reach your target audience:
Tip #1: Create a Professional Website
Establish a user-friendly website that showcases your services, portfolio, and client testimonials. Include essential information such as your contact details, service areas, and pricing. A professional website enhances your credibility and makes it easier for potential clients to find you online.
Tip #2: Post on Social Media
Use social media platforms like Facebook, Instagram, and LinkedIn to promote your handyman services. Share engaging content, such as before-and-after photos of your projects, tips for home maintenance, and client testimonials. Social media can help you build a community and connect with potential clients.
Tip #3: Optimize for Local SEO
Implement local SEO strategies to improve your visibility in search engine results. Use keywords relevant to your services and location in your website content, meta descriptions, and headers. Claim your Google My Business listing to ensure your business appears in local searches and maps.
Tip #4: Network with Local Businesses
Build relationships with other local service providers, such as real estate agents, property managers, and contractors. Networking can lead to referrals and partnerships, expanding your client base. Attend local business events or join community organizations to connect with potential collaborators.
Tip #5: Offer Promotions and Discounts
Attract new clients by offering promotions or discounts on your services, especially for first-time customers. Consider running seasonal promotions or referral discounts to encourage satisfied clients to recommend your services to others.
Tip #6: Request Reviews and Testimonials
After completing a job, ask satisfied clients to leave reviews on your website, social media pages, and online directories. Positive testimonials build trust with potential customers and enhance your reputation in the community.
Tip #7: Allocate Budget for Online Advertising
Increase your visibility through targeted online advertising. Use platforms like Google Ads and Facebook Ads to connect with specific audiences based on their location, interests, and online behaviors. Develop engaging ads that highlight your skills and feature strong calls to action. Consistently track the performance of your ads and make adjustments as needed to optimize their effectiveness.
How to Find and Secure Your First Handyman Client
Securing your first client can be one of the most challenging yet rewarding steps in launching your handyman business. Here are some effective strategies to help you find and secure your initial client:
- Leverage Your Personal Network: Start by reaching out to family, friends, and acquaintances. Let them know you’re starting a handyman business and ask if they need any repairs or improvements. Personal referrals can lead to your first job and provide valuable testimonials that you can use for marketing.
- Join Local Community Groups: Participate in community groups, neighborhood associations, or social media platforms focused on local events. Websites like Nextdoor or local Facebook groups are excellent places to announce your services, share helpful tips, and connect with potential clients looking for handyman help.
- Offer Your Services for Free or at a Discount: To build your portfolio and gain experience, consider offering your services for free or at a discounted rate for your first few jobs. This allows you to showcase your skills and gather testimonials, which can help you attract paying clients in the future.
- Build a Professional Services Profile on Online Platforms: Sign up for online service platforms like Thumbtack, TaskRabbit, or HomeAdvisor, where clients seek handyman services. Create a detailed profile showcasing your skills, services, and any relevant experience. These platforms can connect you with clients actively looking for help in your area.
- Distribute Flyers and Business Cards: Create eye-catching flyers and business cards to distribute in your neighborhood or local businesses. Ensure your contact information and services are clearly listed. Consider leaving flyers at community centers, coffee shops, or bulletin boards where local residents frequent.
- Engage with Local Real Estate Agents: Real estate agents often have clients who need handyman services for repairs or upgrades before selling or moving into a home. Reach out to local agents and offer your services, positioning yourself as a reliable resource for their clients.
- Network with Other Contractors: Build relationships with other contractors in complementary fields, such as plumbers or electricians. They may have clients in need of handyman services and can refer you when opportunities arise.
Learn How to Much to Charge For Your Handyman Services:
Determining how much to charge for your handyman services is a critical aspect of running a successful business. While it can be tough to navigate, these tips should help you build a clear pricing model for your business:
Research Local Market Rates
Investigate what other handyman services in your area charge for similar tasks. This will give you a baseline for setting your rates. Look at local listings, online platforms, and community groups to gather information about competitors’ pricing. Aim to position your rates competitively while considering your skill level and the quality of service you provide.
Consider Your Costs and Profit Margin
Calculate your costs, including tools, materials, transportation, and insurance. Factor in your desired profit margin to ensure your rates cover expenses and generate income. A common approach is to set your hourly rate based on your costs plus a percentage for profit. For example, if your total costs amount to $20 per hour, charging $30 to $40 per hour may provide a reasonable profit margin.
Offer Transparent Pricing
When providing estimates, be clear and upfront about your pricing structure. Consider offering different pricing models, such as hourly rates, flat fees for specific services, or package deals for multiple tasks. Transparency builds trust with clients and can lead to repeat business and referrals.
How to Manage Your Handyman Business Clients
Effectively managing your clients is key to building strong relationships and ensuring the success of your handyman business. Here are some tips to help you provide excellent service and maintain positive client interactions:
#1. Communicate Clearly and Promptly
Clear communication is vital for managing client expectations. Respond to inquiries and messages promptly, whether through phone calls, emails, or text messages. Keep clients informed about project timelines, any changes, and what they can expect from your services.
#2. Set Clear Expectations
Before starting a job, discuss the scope of work with your client. Outline what services you will provide, estimated timelines, and pricing. Providing a detailed estimate or contract can help avoid misunderstandings and ensure everyone is on the same page.
#3. Stay Organized
Use tools like spreadsheets, project management software, or simple to-do lists to keep track of client information, project details, and deadlines. Staying organized helps you manage multiple clients effectively and ensures that nothing falls through the cracks.
#4. Follow Up After Completion
After finishing a job, follow up with your clients to ensure they are satisfied with the work. This demonstrates your commitment to quality service and can provide an opportunity to address any concerns. Additionally, asking for feedback can help you improve your services and build lasting relationships.
#5. Use a Client Management Tool
Consider using customer relationship management (CRM) software to help you manage client information, interactions, and projects. CRM systems can streamline communication, track project timelines, and maintain organized records, making client management more efficient.
Managing Your Handyman Business
Get Handyman Business Insurance
Having the right insurance coverage is vital for protecting your handyman business and ensuring you are prepared for potential risks. Here are a few types of insurance that new business owners should consider:
- General Liability Insurance: This is a fundamental coverage for any handyman business. It protects you against claims of bodily injury, property damage, or personal injury that may occur during the course of your work. General liability insurance can cover legal fees, settlements, and medical expenses if a client or third party is injured or their property is damaged due to your services.
- Professional Liability Insurance: Also known as errors and omissions insurance, this coverage protects you from claims related to negligence, mistakes, or failure to deliver services as promised. If a client claims that your work was subpar or caused them financial loss, professional liability insurance can help cover legal costs and damages.
- Workers’ Compensation Insurance: If you plan to hire employees, workers’ compensation insurance is often legally required. This insurance provides coverage for medical expenses and lost wages if an employee is injured on the job. It protects both your workers and your business from potential lawsuits arising from workplace injuries.
- Commercial Auto Insurance: If you use a vehicle for your handyman business, commercial auto insurance is essential. This coverage protects you against accidents, damages, and liabilities associated with using your vehicle for business purposes. Personal auto insurance may not cover business-related activities, so having commercial coverage is crucial.
- Tools and Equipment Insurance: Handyman work often involves using various tools and equipment. This type of insurance protects your tools against theft, damage, or loss. If your tools are essential for your work and represent a significant investment, this coverage can provide peace of mind.
Set up Invoicing For Your Handyman Business
Having a reliable invoicing system is crucial for managing your finances and ensuring timely payments from clients. Here are some steps to help you set up effective invoicing for your handyman business:
#1. Choose an Invoicing Method
Decide whether you want to use paper invoices, digital invoices, or invoicing software. Digital invoicing is often more efficient and can streamline the process. Many software options allow you to create professional-looking invoices and track payments easily.
#2. Create a Professional Invoice Template
Design an invoice template that includes your business name, logo, and contact information. Ensure that the template also contains sections for the client's details, invoice number, date, itemized list of services provided, individual prices, total amount due, and payment terms. A clean and organized layout makes it easier for clients to understand the charges.
#3. Itemize Services Clearly
When detailing the services provided, be specific about what each charge covers. This transparency helps clients see exactly what they are paying for and can prevent misunderstandings. Include descriptions, quantities, and rates for each service rendered.
#4. Set Payment Terms
Clearly outline your payment terms on the invoice, including the due date and accepted payment methods (e.g., cash, checks, credit cards, or online payment platforms). Consider implementing late fees for overdue payments to encourage timely settlements.
FYI: When you use Durable’s Invoice Builder Tool it’s easy for clients to pay you by credit card, ACH, or Apple Pay.
#5. Keep Records
Maintain copies of all invoices you issue for your records. This practice will help you track payments, manage your cash flow, and prepare for tax season. Organizing your invoices can also assist in resolving any disputes that may arise.
#6. Follow Up on Unpaid Invoices
If a client misses a payment deadline, follow up with a polite reminder. Most clients appreciate the nudge, and a friendly reminder can help you maintain a positive relationship while ensuring you receive payment.
Set up Your Business Accounting and Bookkeeping
Don’t worry if managing your books as a small business owner sounds daunting — you’re not alone! Many small business owners struggle to get their bookkeeping up and running, but in the long term It helps you track income and expenses, manage cash flow, and prepare for tax season.
Here are steps to set up effective accounting and bookkeeping for your business:
#1. Choose an Accounting Method
Decide on the accounting method that best suits your business: cash basis or accrual basis.
- Cash Basis: You record income and expenses when cash is received or paid. This method is straightforward and often used by small businesses.
- Accrual Basis: You record income and expenses when they are earned or incurred, regardless of cash flow. This method provides a more accurate picture of your financial health but can be more complex.
#2. Organize Your Financial Records
Set up a system for organizing your financial records, including income, expenses, invoices, and receipts. Use digital folders or accounting software to categorize your records by month or type of expense. Keeping your records organized will make it easier to access information when needed and facilitate tax preparation.
#3. Track Income and Expenses
Regularly record all income and expenses associated with your handyman business. Include costs such as tools, materials, insurance, marketing, and vehicle expenses. Tracking your financial transactions will help you monitor your profitability and identify areas for improvement.
#4. Reconcile Your Accounts
Periodically reconcile your bank statements with your accounting records to ensure accuracy. This process involves comparing your recorded transactions to your bank statements and correcting any discrepancies. Regular reconciliations help you catch errors early and maintain accurate financial records.
#5. Prepare for Taxes
Stay informed about your tax obligations as a business owner. Set aside funds for taxes and consider consulting a tax professional to ensure you comply with tax laws and maximize deductions. Keep track of deductible expenses, such as vehicle mileage, equipment purchases, and home office costs.
#6. Review Financial Reports Regularly
Regularly review your financial reports, such as profit and loss statements and cash flow statements, to assess your business's performance. Analyzing these reports will help you make informed decisions, set budgets, and plan for future growth.
How to Hire and Train People to Join Your Business
As your handyman business grows, hiring and training additional staff can help you manage increased demand and expand your services. Here are some steps to effectively hire and train new team members:
#1. Define Job Roles and Responsibilities
Before hiring, clearly outline the roles and responsibilities of the positions you need to fill. Identify the skills and qualifications required for each role, whether it’s a handyman, office manager, or marketing specialist. Having a detailed job description will help you attract the right candidates.
#2. Conduct Thorough Interviews
During the interview process, assess candidates’ skills, experience, and cultural fit for your business. Ask questions that relate to their previous work experience and how they handle various situations on the job. Practical assessments or trial work days can also help you evaluate their hands-on skills.
#3. Provide Comprehensive Training
Once you hire new staff, invest time in training them properly. Create a training program that covers essential skills, safety procedures, customer service expectations, and company policies. Hands-on training allows new hires to learn in real-world scenarios and gain confidence in their abilities.
#4. Foster a Positive Work Environment
Create a supportive and inclusive work culture that encourages teamwork and open communication. Providing constructive feedback and recognizing employees’ contributions can boost morale and motivate your team to perform at their best.
#5. Encourage Continuous Learning
Promote a culture of continuous improvement by encouraging your staff to pursue ongoing training and skill development. Provide opportunities for attending workshops, online courses, or industry conferences to enhance their skills and knowledge.
Expert Advice For Running Your Business
Resources for New Handyman Business Owners
Starting and managing a handyman business can be challenging, but there are plenty of resources available to help you succeed. Here’s a list of useful websites, podcasts, and other resources specifically for new handyman business owners:
- HomeAdvisor: A platform that connects homeowners with service professionals, including handymen. HomeAdvisor offers resources on pricing, customer leads, and industry trends.
- Angie's List: A trusted resource for finding local service providers, Angie's List also offers insights into best practices and industry standards.
- NCCER (National Center for Construction Education and Research): NCCER offers training and certification programs for various trades, including handyman services. Their resources help you develop essential skills and enhance your credibility.
- SCORE: A nonprofit organization that provides free business mentoring and education to entrepreneurs. SCORE offers workshops, webinars, and resources tailored to small business owners.
- Durable’s Newsletter: Helps small business owners stay up to date with tips, guides, and marketing strategies to get your business up and running.
You may also want to connect with your local community colleges that offer courses in construction, plumbing, electrical work, and carpentry, providing valuable training for aspiring handymen. They may offer meetup groups, webinars or newsletters to support your business growth.
Similarly, joining industry associations, such as the National Association of Home Builders (NAHB) or the General Contractors of America Association, can provide networking opportunities, training resources, and industry insights.
Your Business Launch Checklist
Starting a Handyman Business Checklist:
Launching a handyman business involves several important steps to ensure a solid foundation and successful operation. Use this checklist to guide you through the process:
- Research the Industry
- Understand the demand for handyman services in your area.
- Identify local competitors and their service offerings.
- Define Your Services
- Determine which handyman services you will offer based on your skills and market demand.
- Consider specializing in specific areas (e.g., plumbing, electrical, home repairs).
- Choose a Business Structure
- Decide on a legal structure (e.g., sole proprietorship, LLC, corporation).
- Register your business name and obtain necessary permits.
- Obtain Necessary Licenses
- Research local licensing requirements for handyman services.
- Acquire any required general business licenses and specialty licenses.
- Get Business Insurance
- Obtain general liability insurance to protect against claims.
- Consider additional coverage, such as workers' compensation and tools insurance.
- Set Up Your Business Accounting
- Choose an accounting method (cash basis or accrual basis).
- Select accounting software to manage finances.
- Organize your financial records and track income and expenses.
- Build a Professional Website using Durable’s AI Website Builder
- Develop a user-friendly website showcasing your services and portfolio.
- Optimize for local SEO to attract clients in your area.
- Establish a Marketing Strategy
- Use social media platforms to promote your services.
- List your business on online directories and platforms like HomeAdvisor and Angie's List.
- Network with local businesses and engage with your community.
- Set Your Pricing
- Research local market rates to determine competitive pricing.
- Calculate your costs and desired profit margin.
- Be transparent about pricing with clients.
- Prepare for Client Management
- Develop a system for clear communication with clients.
- Create a professional invoicing process.
- Maintain records of client interactions and projects.
- Hire and Train Staff (if needed)
- Define job roles and responsibilities.
- Create a recruitment plan and conduct thorough interviews.
- Provide comprehensive training for new hires.
- Gather Resources and Tools
- Invest in essential tools and equipment for your services.
- Organize your workspace and keep supplies stocked.
- Stay Informed and Continue Learning
- Follow industry trends and best practices.
- Seek out additional training and development opportunities.
- Review and Adjust Regularly
- Conduct regular evaluations of your business performance.
- Gather client feedback and adjust your services accordingly.