How to Start a Handyman Business
The Handyman Business is booming.
So, if you’re thinking of starting one, you could be on to a winner!
Check out these statistics:
In 2021, the average US Handyman business generated over $50,000/year; some earned as much as $1000 daily.
And those figures are rising!
The good news is you don’t need years of experience or a collage degree to start a handyman business.
But you’ll need more than a toolbox to become a success.
That’s where this post will help you.
We’ll look at the pros and cons, the different services you can offer, how to choose your target market, how to charge, and how to beat your competition–plus your business registration options, license and permit requirements, handyman website designs, and effective and affordable marketing strategies.
And, I included some pro tips on automating your business using job scheduling and invoicing tools, and how to turn your customers into return clients.
So, keep reading–because starting a handyman business could be the best decision you’ll ever make.
What You Need to Know Before You Start
We’re going to dive deep into how to start, run, and become a thriving handyman business.
But before jumping in, let’s see if the handyman business is right for you.
Is it profitable?
People often think that the handyman business is low-profit and unscalable.
They’re wrong, and here’s why:
The US Bureau of Labor Statistics lists the average handyman’s annual wage as $43, $180, or $20.76 per hour. It predicts wage growth of 8% between now and 2030.
But you’re not starting your handyman business to be average, right?
So, I dug deeper and found that many successful handyman businesses earn between $100-$125 an hour.
One example is Nicholas Ciano, owner of Go Green Cleaning & Maintenance, an exterior home cleaning business. After 4 years, Nicholas averages $20,000/month; now that’s more like it!
But how do you go from the Bureau’s average to Nicholas’s $20,000/month?
The answer is to focus on a specific high-paying niche or a target market; I’ll explain why and how later.
But first:
Is it right for you?
It takes a particular type of person to run a handyman business. Sure, a range of trade skills will help, but you’ll also require some necessary personal attributes.
Such as:
- The ability to work one-to-one with clients
- Physical strength, to use machinery and move heavy equipment and materials
- Ability to resolve problems and adhere to health and safety guidelines
- A can-do attitude
- And, of course, to be resourceful and self-motivated
In my 20 years working for homeowners, I found that while providing high-quality work is crucial, reliability and a helpful attitude were equally important for many clients.
Okay, let’s look at the basic skill sets required for the main handyman tasks and services:
Do you have the skills required?
A handyman business is straightforward to enter for anyone with a vast range of trade skills.
These include plumbing, carpentry, landscaping, decorating, and general property interior and exterior maintenance.
But what if you’re new to the game?
The good news is, you don’t need 20 years of construction experience to start a handyman business, because you can focus on one specific niche–such as hanging TVs or cleaning patios.
Pros and Cons of Starting a Handyman Business
Starting a handyman business offers many advantages, but running any business has some downsides.
Let’s begin with the good news:
Pros
Of course, the best part of being a business owner is you’re the boss. And the handyman business has many advantages over other industries:
- When you already have the tools and equipment, start-up costs are low.
- If needed, you can start a handyman business on a part-time basis.
- You can scale up or down with demand.
- The potential profits are high.
- Running overheads are low.
Cons
There are some potential challenges to starting your handyman business, including:
- You might require a business license; in some states, you’ll need to be bonded (we’ll look at those later).
- To scale up, you may need a contractor’s license.
- You must be in good physical condition.
- You’ll need the right tools and a work van or truck.
- You’ll need a marketing strategy that attracts the right clients.
If number 5 leaves you a little unsure, don’t worry; you’ll know how to create a marketing strategy for your handyman business by the end of this post.
And now that you have a feel for the handyman business, let’s check out what kinds of services you can provide.
Step 1: Decide What Services You Want to Provide
You could start your handyman business and offer a full range of services, but if you don’t have those skills, you can focus on one niche.
And focusing on one niche or smaller jobs is often more profitable than providing a full contractor’s service.
For starters, you’ll need less equipment, and you can create a marketing strategy for a specific audience.
Here are just some of the services you can offer as a handyman business:
Common handyman tasks
Your first step in starting your handyman business is evaluating your skills, so you can create a marketing strategy for the audience that needs them.
Some handyman skills you could consider:
- Installations (toilets to faucets)
- Appliance installation and repair (you might need a license for this one)
- Basic plumbing
- Dry rot and drywall repairs
- Tile installation
- Caulking
- Hanging TVs
- Fitting LED lightbulbs
- Interior and exterior property maintenance
- Gutter and roof cleaning
- Interior and exterior painting
- Fencing repair and maintenance
- Decking repairs and maintenance
- Patio cleaning and re-pointing
Before you choose your service, consider the following points.
Considerations when choosing your niche
Things like your skill set, experience, equipment requirements, and location can all help determine the niche you’ll choose. Let’s look closer at each:
Licenses and permits
When choosing your niche, consider if you’ll need specific licenses or permits to operate your business.
Depending on your service, licenses and permits come at local, state, and federal levels.
You can contact your local County Clerk’s office or research the Small Business Association (SBA) website to see if your niche needs a license.
Special or expensive equipment
Will your niche require special or expensive equipment, and can your initial budget afford it?
For example, suppose you start a cleaning business like Nicholas Ciano, owner of Go Green Cleaning & Maintenance. In that case, you’d need 12-foot ladders, pressure washers, a truck, a working-at-heights permit, and suitable insurance.
Specific skills
Before choosing your niche, check if you need specific skills (and if you don’t have them, can you get them in your location?).
Because having sufficient skills for your niche is crucial, as you can’t offer services you’re not qualified to provide.
For example, you might need a certificate in appliance repair to fix minor electrical appliances.
Is there a demand for your niche?
Your chosen niche will need sufficient demand in your local community to be sustainable and profitable.
One way to determine this is by researching your niche and location online.
For example, the search term “handyman deck cleaning Florida Keys” has a lot of handyman businesses show up in the search results, so you know there’s a demand in that area.
Can you compete?
Once you know there’s sufficient demand, you can also check out your competitors to determine if there’s enough room for you by researching your niche keyword.
Here’s how you do it:
If you’re offering a handyman carpentry service (repairing fencing and decking), use the search term “handyman fence repair + your location.”
Then look for:
- Your main competitors
- The number of reviews they have
- If they focus only on that niche or offer a range of services
Focusing on one niche is a proven way to start a new handyman business. Still, you can offer a complete handyman service if you choose a target audience, which we’ll talk about now.
Step 2: Decide Which Clients to Work For
Who do you want to work for, clients that pay $40/hour or $100?
You might think I’m joking, but now is when you choose your target market.
But before we look at your options, here’s what I’ve learned about picking clients:
- Higher-paying clients need a job done that they don't have time to do themselves; this means if you can solve their problem, they'll pay your $100/hour rate
- Lower-paying clients often need to squeeze every dime out of the time you provide
The best approach is not to lower your prices to get work; instead, identify a target audience willing to pay what you need to earn.
Here’s how:
Type of client - commercial vs. residential
With the proper advertising in place, you could get calls from commercial real estate companies, condominium managers, or contractors the moment you start your handyman business.
But they’ll charge a commission, so you’ll earn less.
While it can take longer to build your client list, I always found it more profitable to work for residential customers.
Clients’ location
How far are you willing to travel?
It’s an important question, because if you travel one hour each way to a job and spend 2 hours on it, it might not be worth your while.
A better approach is to pick your location based on your target audience and then focus all your marketing strategies on that area.
For example, if you live in North Boston, use a name like “North Boston Handyman,” as that’s what people will search for on Google, Yelp, and social media.
Clients’ price range
Here’s where your niche matters, because people are only willing (or can afford) to pay so much for specific services.
For instance, assembling flat-pack furniture would have a lower-paying audience. In contrast, a solar panel cleaning service would attract higher-paying clients.
Clients’ standards
When you offer a higher-skilled service that charges higher rates, your clients expect top-class results–for example, cleaning chandeliers (yes, that’s a handyman business) is different from fixing a leaky faucet.
You can only offer a service like Ollie’s chandelier cleaning service if you’re confident you can meet your client’s high standards.
Clients’ appreciation
I don’t enjoy working for clients who expect without appreciation; I’m, well, getting on in years.
If you’re like me, then choose a niche people will appreciate.
For example, some people need help installing LED energy-saving lightbulbs, moving heavy furniture, or unblocking a toilet, and I’ve found those clients often appreciate you the most.
Step 3: Research Your Competition
Your competitors can provide a wealth of inside information on starting and running your new handyman business.
So why not use it?
Just like before, put your chosen niche keyword into Google, and the top 10 handyman businesses will appear.
Next, look for the following information and make a list:
- Who's providing handyman services in your area?
- Which services do they offer?
- How much do they charge?
- How do they charge, by the hour or at a flat rate?
- What marketing strategies are they using–i.e., a website, Facebook, or local traditional marketing techniques
Also, research local handyman services on Google My Business listings to see what people say about your competitors. It’ll tell you what they do right or wrong and the services they offer.
Step 4: Know What it Costs - Understand Your Initial Budget
Most folks have a budget when starting a business, and you might be the same. The good news is, you can create a handyman business without breaking the bank.
An example of this is Caleb of North “Seattle Handyman.” He started his handyman business with only $5000 and now earns $250K/year.
The best way to understand your initial budget is to know what you need to start your handyman business and then calculate your running costs.
Start-up costs
Your start-up costs will depend on your niche, whether you provide a complete handyman service or location.
But most new handyman businesses have the following costs:
- Tools (the list can be extensive if offering a complete handyman service)
- A work vehicle; new, secondhand, or consider a lease
- Business insurance (we'll look at your options in a minute)
- Local licensing, such as a business license and any relevant permit
- State licensing, if applicable to your niche
- Commercial driver's insurance
- Your website, domain name, hosting service, and software setup cost
- A minimum of 1 month's marketing expenses
- Business structure registration, like an LLC
- Or a Doing Business As (DBA) if you choose to operate as a sole proprietor
Ongoing costs
Some of your initial costs will become ongoing ones, and as your business grows, you might have new ones–but those will be a sign of your success!
Ongoing costs could include:
- Business licenses and permits (yup, there's an annual charge)
- Annual insurance costs
- Yearly website hosting and software fees
- Regular bookkeeping and accountancy costs
- Local and federal taxes
- Ongoing equipment/vehicle maintenance and renewal expenses
- Employee insurance and payroll taxes (if you hire staff)
- Office costs
Regarding office expenditure, many people run their handyman business from home, as you may be able to apply for a 20% tax discount on your home office costs. But always talk with a tax accountant before making any claims.
Okay, that’s what you’re spending. What about income?
