Are you someone who enjoys working with your hands? Has a talent for fixing things? And is looking for a way to start your own business? Then then you should know about how to start a handyman business!
Handyman services typically cater to homeowners and businesses who need help with various repairs and maintenance tasks around the property. There is a high demand for handymen, as many lack the time, skills, or tools to tackle repairs and upkeep tasks independently.
In this blog, I’ll cover topics on how to start a handyman business. From assessing your skills to finances, the blog discusses in detail to start your own successful handyman business. Because, this business is not only high in demand, but starting a handyman business also offers the blessings of low startup costs, flexible hours, and the ability to work independently.
So, let’s set it in motion!
Before getting started, take a look at the infography. It will provide you with the whole content interestingly.
Assess Your Skills
The first step to starting a handyman business is to identify the skills valuable for your business. For that, I list some skills for you here. Check them to identify what works for you!
Carpentry: If you’re skilled in woodworking, you can offer services such as making decks, installing cabinets, and fixing furniture. Carpentry is profitable as the demand for furniture assembly is growing in individuals’ lives.
Plumbing: Do you know to plumb? Then you can proffer services such as fixing leaks, unclogging drains, and installing new fixtures. You can save clients from hiring plumbing contractors by assisting them with your plumbing knowledge.
Electrical Work: Are you skilled in performing electrical work? Start to provide services such as installing new outlets, replacing light fixtures, and troubleshooting electrical problems.
Painting: If you know painting, you can offer services such as interior and exterior painting, staining, and refinishing works. The demand for painting services is always there in the locality. You can use the opportunity by serving a broader scope of clients.
General Repairs: Do you have general repair skills? Then you can provide services such as fixing drywall, repairing roofs, and fixing broken appliances.
It’s also important to keep up with industry trends and new technologies while you accurately assess your skills and skill level. So that you can meet the needs of your clients and create a fulfilling career for you.
Decide Your Business Structure
It’s necessary to decide on the business structure for your handyman business during the startup process. The business structure you choose will determine your legal and financial responsibilities, as well as the tariffs you’ll need to pay. There are several business structures to set upon. Below, I enlisted some of them. Study them out.
- Sole Proprietorship:
In a sole proprietorship structure, you are the only owner and are responsible for all aspects of your handyman business. This structure offers you to start a handyman business most flexibly and requires the least amount of paperwork and startup costs. At the same time, you are personally liable for any debts or legal issues that arise in the course of your business.
- Partnership:
If you plan to start your handyman business with one or more partners, a partnership structure is to be viewed. You have to think about managing disagreements between you and your partners as it can put each partner’s personal assets at risk.
- Limited Liability Company (LLC):
An LLC is a favored business structure of small business owners as it provides the benefits of both a sole proprietorship and a corporation. Simply say, you are the owner of the LLC and are not personally liable for any debts or liabilities incurred by the handyman business.
- Corporation:
A corporation is a more complex business structure. But it provides the highest level of protection for your personal assets. While it’s not so easy to set up and maintain because it is more expensive and time-consuming than other business structures.
You need to be more careful in determining the suitable business structure while starting a handyman business. With the right determination, you can designate your business for long-term success. You can protect your personal assets from legal and financial issues too.
Construct a Business Plan
Creating a business plan helps you determine the viability of your business. It is like a roadmap that outlines your goals, strategies, and financial projections before you start a handyman business.
I documented areas you need to consider while making the business plan here. Reap those benefits without being late.
- Prepare an executive summary of your business. That should include the mission, business structure, services to provide, target market, and economic forecasts.
- Describe your company’s ownership structure, location, and legal structures. Sketch the current market for handyman services in your area.
- Incorporate a SWOT analysis, that helps you pinpoint the strengths, weaknesses, opportunities, and threats of your business.
- Silhouette strategies for elevating your business and attracting customers.
- Calculate the startup costs and revenue projections. Do a cash flow analysis. These will help you have a better idea of the investment requirements to initiate the handyman business.
- Do a break-even analysis, to recognize the point at which your business will become profitable.
Reevaluate and rework your business plan systematically as your handyman business evolves. A thorough business plan will help you define your goals and strategies. As well as it aids you to identify probable challenges and opportunities that arise out of the business. It can also act as a testimonial while seeking a budget from investors or taking loans.
Obtain Required Licenses and Permits
To start a handyman business, licenses and permits are mandatory to run legally. It’s very important for this business. Failure to obtain them can land your business in hefty fines or legal action.
Some of the licenses and permits you need to start a handyman business are:
- Business License:
You’ll need to get a business license from your state or local government to operate your handyman business.
- Contractor’s License:
Some states require contractors, or handymen, to obtain a contractor’s license before providing services. You have to pass an exam and meet specific requirements to get it.
- Trade-specific Licenses:
Depending on the types of services you’ll provide, you may need to obtain trade-specific licenses, such as an electrical or plumbing license.
- Insurance:
You have to acquire liability insurance to protect your business from any damages or injuries that may occur anytime in handyman services. Plumbing, electrical works, and carpentry are highly inclined to damage and injuries. Those businesses are mandatorily insured. But it’s better to obtain insurance in common. Some states may demand specific types of insurance, so be sure to check with your local government.
- Tax Identity Document:
To report your handyman business’s income and pay taxes, you have to obtain a tax ID from the Internal Revenue Service (IRS).
Know the specific requirements of licenses and permits for your location and industry. Fetch mandatorily all the necessary documents before starting your handyman business.
Establish Your Business
After completing the basic processes to start a handyman business, it’s time for you to establish your business. But it’s not so easy as a cakewalk. Though you can break down the operations of launching your new business step by step to make it easier. Let’s see the steps involved:
- Choose a Name:
Choose a name that accurately represents your handyman business and is easy to remember. Ensure the name is not already in use by another business in your area.
- Register Your Business:
Register your business with your state Government to obtain a legal recognition certificate. So you can provide certified services endorsed by the Government.
- Set Up a Business Location:
Determine your handyman business location. Consider setting up a home office or renting a commercial space. Make sure it is located at the center of the target location. So you can provide punctual services to the clients.
- Acquire Necessary Equipment:
Decide on the equipment you’ll need to perform your handyman services. This may include tools, transportation, and safety equipment. Ponder over purchasing used equipment to save on costs.
- Set Up a Payment System:
Set up payment systems to accept payments from your customers. Better set up online payment options or provide credit and debit card payments to make hassle-free transactions.
Consult with a handyman business advisor or attorney to ensure you’re complying with all legal requirements and driving your business toward success.
Build Your Brand
Building a strong brand is indispensable for a handyman business. A strong brand can help you stand out from your competition, improves customer attraction, and establish trust with your clients.
Effective steps to build your handyman business are:
- Develop a Logo:
Creating a logo on the theme of your handyman business is an essential part of your branding. Because it deeply tells about your business at a glance. So hire a proficient graphical designer to create a logo that precisely portrays your business.
- Build a Digital Platform:
Building a digital platform like a handyman app or handyman website is vital for your business. It’s part of your online presence which is essential in today’s digitized world. So hire a mobile app or website development services company today to show your digital presence.
- Utilize Social Media:
Use social media platforms, such as Facebook, Twitter, and Instagram to showcase your work, share tips and advice, and interact with your followers. These are excellent tools for building your brand and engaging with your audience.
- Consistency:
Consistency is key to building a strong handyman brand. Assure that all of your branding materials, including your logo, website, and social media profiles, are consistent in their design, quality, and messaging.
Building a brand takes time and effort, but it’s the core of essentials for your business. It’s better to hire a branding expert or marketing consultant who helps develop your brand that aligns with your goals.
Market Your Services
Nowadays marketizing businesses is important to attract new customers, specify your brand, and enrich revenue. Handyman business is not an exception from the list of businesses.
So it’s crucial to develop a marketing strategy that matches your business objectives and target market.
In this tech world, it’s easy to advertise a handyman business. And it consists of two effective tactics to improve business.
- Online Marketing
- Offline Marketing
Online marketing has many benefits over offline marketing. It’s trackable, cost-effective, and potent compared to offline marketing. It’s not that offline marketing is outdated.
But, in today’s trend, online marketing comes up with a variety of options such as social media, email marketing, and direct mail. But offline marketing has minimal options and is unable to track conveniently.
Whatever means of marketing you do, ensure that all of your marketing efforts, including your logo, online platforms, and social media profiles, accurately represent your business and appeal to your handyman target market.
If not, you can’t enjoy the many benefits you can get from marketing. It’s adequate to evaluate the effectiveness of your marketing efforts oftentimes. Think about tracking your marketing activities and examining the results to determine what’s working and what can be improved.
Manage Your Finances
Managing your finances is essential to keep track of your income and expenses, create a budget, and plan for the future.
Even at the beginning of the business, hire an accountant or bookkeeper to help you manage your finances and ensure that your records are accurate and up to date. Finance in accounting software simplifies your monetary administration processes and makes it easier to follow your income and expenses.
Form financial goals for your handyman business and create a plan to accomplish them.
Regularly check your finances and modify your strategies as needed to ensure that your business stays profitable and endurable. By managing your finances effectively, you can position your handyman business for victory.
Conclusion
Starting a handyman business can be a rewarding and promising venture, but it mandates meticulous planning and practice.
By following the steps outlined in this blog post, you can establish a solid foundation for your business.
Assess your skills, choose your business structure, create a business plan, obtain the necessary licenses and permits, establish your business, build your brand, manage your finances, and market your services effectively.
Additionally, the handyman business demands hard work, dedication, and perseverance. But remember that the rewards can be significant. As a handyman, you have the opportunity to assist others, work independently, and grow a successful business. Stay focused on your goals, remain adaptable to change, and continually evaluate and alter your strategies.
Have the proper mindset and approach. That’s how to start your own handyman business. You can build a flourishing and fulfilling handyman business over time. Soon, you can serve your customers and achieve your personal and professional goals.