The renovation and remodeling industries are booming across the US with a market share of $450 billion by 2027, and handymen and small trade businesses are thriving. If you are looking to take advantage of this opportunity, now’s the time to pull out your tools and serve your community.
In this article, we’ll explore what a handyman does and how they differ from construction contractors. Then, we’ll examine the state of the market before diving into the importance of professional invoicing. Finally, we’ll unpack the anatomy of an invoice so you can learn precisely how to invoice for handyman services.
Let’s get started.
What Does a Handyman Do?
A handyman is a multi-skilled person who performs a wide range of minor repair, upgrade, and maintenance services in residential and commercial settings. They complete tasks often referred to as ‘odd jobs,’ including the following:
- Drywall repairs: A handyperson can repair holes, dents, and scuffs in drywall by patching, sanding, and painting the affected area.
- Household carpentry: A handyman can repair or replace window and door frames and trims, skirting boards, handrails, decks, and other timber structures.
- Minor plumbing: Some handymen have the skills needed to repair minor plumbing issues (those that don’t require a license). They can generally stop leaks and solve other small-scale problems.
- Painting: While a handyman will not typically repaint a whole home, if it’s a window trim, feature wall, or new door that needs painting (or staining), they can take care of it.
- Home maintenance: Some handymen can perform general home maintenance tasks, such as lawn mowing, gutter cleaning, and squeaky door fixing.
- Furniture assembly: Putting together flat-packed furniture is a common job for a handyman. In some cases, a handyperson can help move or position furniture and hang paintings and mirrors, too.
What’s the Difference Between a Handyman and a Contractor?
A handyman is a Jack (or Jill) of all trades. They do a little bit of everything and generally take on short-term, small-scale jobs. Handymen are not usually licensed in any particular trade. In contrast, a construction contractor offering building or remodeling services is typically a licensed and specialized professional.
For example, a homeowner would hire a construction contractor to build a room addition, not a handyman. But that same homeowner might enlist the help of a handyman to add the finishing touches or repair any mishaps when construction is complete.
Why Handymen Are Thriving in Today’s Home Improvement Market
The pandemic changed many things about how we live and work — including how much time we spend in our homes and how we use them. In response, the home improvement and building industry has boomed to all-time highs.
Home improvement spending has been trending upward for years, but the post-pandemic spike is startling. According to the 2022 US Houzz & Home Study, renovation spending rose 20% in 2021 compared to the previous year.
In addition, more homeowners took on renovations, with 55% of people engaging in home improvement projects in 2021. More than half of homeowners decorated their homes in 2021, too.
In this context, handyman services are in high demand. If a homeowner decides to DIY their home improvement project, handymen are often called in to execute higher-skilled jobs or tasks that require specific tools. They may even be hired to fix DIY mistakes. If a homeowner works with a construction or remodeling company, a handyperson may be employed to tie up loose ends, repair errors, replace faulty fittings, and make other minor fixes.
Either way, handymen are thriving in today’s booming home improvement market—and you can too.
Why Professional Invoices Are Integral to Your Success
Regardless of your business setup—even if you are a sole proprietor—you must provide professional invoices to your customers. Your long-term success depends on it, and here are some of the reasons why.
Professional Invoices Improve the Customer Experience
Your billing process can significantly impact your customer’s experience. For example, a professionally formatted invoice reduces billing questions and improves clarity. As a result, your customers can see precisely what they are paying for and how much it costs in black and white, which mitigates the risk of a misunderstanding or disagreement.
In addition, an invoice outlines accepted payment options, giving your customer all the information needed to make a prompt and accurate payment. Learn more about invoices specifically designed for contractors and handymen.
Invoices Allow for Fast and Easy Order Tracking and Referencing
Whether for tax purposes or to resolve an issue, you’ll likely have to regularly revisit the details of a service you provide. With a unique identifying code and detailed information, invoices allow for fast order tracking and referencing.
Invoices Ensure You Get Paid on Time
For most businesses, handymen included, cash flow is key to unlocking sustainable success. You must get paid in full and on time to continue delivering your services, and professional invoicing can help with exactly that. Here’s how:
- Invoices list the total amount owed clearly, so there’s no confusion.
- They also detail payment options and instructions, minimizing friction and encouraging fast payment.
- Invoices typically include payment terms, which might set a due date and, in some cases, late fees.
The Anatomy of a Handyman’s Invoice
Invoicing is critical, and now, the question begs: How do you invoice for handyman services? Here’s a breakdown of the key elements of a handyman’s invoice, which you can use to shape your own professional invoices and reap the benefits:
- Business name and address: If you are the sole proprietor, your full name may be your business name. And, if you are like most handypersons, you don’t have business premises. In that case, the address may be a PO Box or your home address.
- Client name and address: Keep in mind that the client’s address may not necessarily be the premises you worked on. For example, a son may hire a handyman to perform repairs for his elderly mother. The client’s address would be the son’s address.
- Project address: This is the address of the premises you worked on. So, using the example above, it would be the elderly mother’s address.
- Invoice number: An invoice number is a unique identifying code that allows you to track and reference your invoices. You can generate invoice numbers manually using a system of your choosing or automatically through an accounting software. Some common invoice numbering techniques include:
- Sequential invoice numbers (e.g., 0001, 0002, 0003)
- Date invoice numbers (e.g., 040522-001, 050522-002)
- Client name invoice numbers (e.g., MJ-0001, RS-0002)
- Invoice date: This is the date the invoice was created and issued.
- Payment terms: Payment terms include the due date, any incentives for early payment (e.g., a discount), and any penalties for late payment (e.g., late fees).
- Line Item description: Briefly describe the handyman services delivered (e.g., bedroom 3 door installation).
- Hours worked: Only include your hours if you charge by the hour.
- Amount due: If you provided several services, include the price of each service. Then, calculate the total amount due.
- Tax: If taxes apply to your services, be sure to include the taxable amount on your invoice.
- Payment information: This is generally included at the bottom of the invoice and details your accepted payment methods, such as credit card and direct debit.
Invoicing Protects You and Your Customers
The right invoicing process protects your business’s cash flow while giving your customers the details they need for their personal records. It’s a win-win. Learn how to get started and give it a try when you sign up for the Joist app.