There’s more to running a handyman business than just being good with your hands. You need a functional and sustainable business model, tools to get the work done and insurance to protect yourself and your new business. To give you an idea of how to start a handyman business, these seven steps will get your small business up and repairing.
Step 1: Find your niche or specialization
When launching a handyperson business, be sure of two things: you have the skills necessary to serve your clients and sufficient demand in your area. Specialization can help with both. If generalized handymen flood your local market, consider focusing your business around a few in-demand services where you are highly skilled. You can still offer diversified services, but focusing on where you’re most adept can give you an edge over other handypeople in your market.
Additionally, knowing what defines your “brand” as a handyman will help you develop a concise message when you advertise your business. With a defined brand in place, you will better connect with customers looking for your specific services.
Step 2: Learn about your local laws
Once you’ve zeroed in on your unique offerings, make sure you’re following the legal requirements for businesses in your area. This includes registering your business with your secretary of state, obtaining business licenses and ensuring you’re prepared for business tax filings. You’ll also need to decide if your business will be an LLC, sole proprietorship or other business entity.
Your state’s website will have detailed instructions on how to register your business and general information on different types of business entities and the legal requirements of each. It’s also important to understand the services handypeople can legally perform and the services that require a contractor’s license.
When you register your business, pick a company name that is clever and memorable to help get customers engaged and excited to work with you. Search your secretary of state’s website to confirm the desired name is still available. Once your handyman business is registered, you can focus on how you’ll make money as a handyman.
Step 3: Set your pricing
Knowing what to charge can be difficult when you’re starting out. You want to make enough money to pay your bills and see a decent profit without pricing yourself out of the local market. The best way to develop your pricing structure is with in-depth research into your local market and your competitors.
Look over your competitor websites and reviews, and read guides on pricing structures for handymen to help you develop your pricing strategy. It’s also key to ensure your pricing structure is competitive in your specific market. For example, if you’re located in Florida, don’t base your pricing on the California market.
A well-researched pricing structure will help you budget your business and estimate profit potential, but you’ll need to factor in how much and how often you work as a handyman.
Step 4: Decide your business structure
Are you planning to work full-time as a handyman, or will you keep a day job and do repairs and other handyman work on the side? Are your plans likely to change as you grow your business and acquire more work? Deciding how you want to structure your business now and setting goals for the future are important steps to help you stay on track with your new business. You’ll want to put significant thought into why you’re launching a handyman business and how it will fit into your life now and in the future.
Another aspect of your business structure to consider is whether you’ll work alone or with fellow handypeople. Working solo or with a business partner or employees can mean different legal responsibilities and different opportunities for scaling your business. Even if you start solo, consider how you’ll operate if demand justifies additional people.
Step 5: Secure all the equipment you’ll need
When you launch your handyman business, you’ll need more than a hammer and some duct tape to be successful. Ensure you have the right tools on hand to accomplish the different jobs you advertise or can acquire new tools as needed. This will require inventorying your existing equipment, making lists of equipment necessary for future jobs, and preparing for upfront costs should you need to purchase new equipment.
You’ll also need to transport your tools from job to job. Whether you use your personal vehicle or purchase a truck or van specifically for your handyman business, ensure you have a safe space for all your tools and equipment, and proper insurance for your vehicle as you drive to and from jobs.
Another crucial piece of equipment you’ll need for your business is a means of processing payments. While it is possible to operate as a cash- and check-only business, you’re more likely to have clients who prefer to pay via credit or debit card or online money transfer. Thankfully, there are many simple ways to process payments, including payment apps and devices that connect to phones. Choose an option you’re comfortable operating and link it to a business account.
It’s crucial to have all your tools and equipment in place before advertising your services, so you’re not caught off guard when clients make requests. Once you have the necessary components to open for business, it’s time to get the word out.
Step 6: Market your business
Handymen market their businesses in a variety of ways, including listing their services on platforms like NextDoor, Home Advisor, TaskRabbit and similar sites. You’ll also want to set up professional pages on social media like Facebook, where you can list your services and contact information. And, register your business with Yelp and Google My Business, so customers can leave reviews and search engines can display your listing.
Some handymen choose to build custom websites to show off their businesses and services in more detail. Having a website can help you stand out from competitors and provide an added layer of professionalism.
As with many personal service businesses, word-of-mouth advertising will be huge for your handyman business. Customers feel more comfortable hiring a professional with references; satisfied customers can be your most valuable advertising tool. To help the referral process, consider printing business cards, flyers or magnets with your contact information and services. That way, your customers will have an easier time remembering your business and sharing your information with future clients.
Step 7: Purchase Handyman Insurance
As a handyman, you know that many things could go wrong on the job, no matter how skilled and safe your practices are. That’s why small business owners need Handyman Insurance to safeguard themselves from the impact of many common risks. However, the cost of an annual policy can be prohibitive for handymen who are just starting out. Thankfully, there’s a more affordable option.
With Thimble, you can get coverage by the job, month or year, so you’re only paying for coverage when you need it. Then, as your business grows, you can level up from a by-the-job approach to a policy that offers coverage 24/7/365 or whenever you need it.
When you purchase a Handyman Insurance policy from Thimble, you’ll receive your policy and as many Certificates of Insurance as you need in your email inbox right away. You can add or modify Additional Insureds as often as you’d like, so your insurance coverage can grow with your business. We mean business when it comes to putting you in the driver’s seat of your business insurance.
Get covered and get your hardhat
By following all these steps, you can be on your way to a successful and exciting handyman business — one that’s correctly set up and properly protected. With the tools of the trade, a strong business plan and Handyman Insurance from Thimble, you can feel confident in your decision to start a handyperson business.
