How to Start a Handyman Business: Startup Checklist

In a world full of malfunctions and mishaps, handymen are the problem solvers who keep our lives in working order. If you’re skilled at fixing things and enjoy helping others, starting a handyman business could be a rewarding career choice.

In this article, we’ll show you how to start a handyman business step by step. From defining your services and getting licensed to setting up your business structure and marketing your skills, you’ll learn everything you need to know to turn your passion for fixing things into a thriving business.

1. Define Your Handyman Services List

Before you start your handyman business, it’s important to decide which services you’ll offer.  Put together a list of all the services you’ll offer to share with clients. 

As a handyman, you have many options to choose from. You could do plumbing, electrical work, carpentry, painting, or general repairs. But it’s important to be smart about which services you choose. 

Think about your skills and experience. And consider what people in your area need. It might be tempting to offer a lot of different services to get more clients. But focusing on a few main areas can help you become an expert and stand out from other handymen.

For example, if you’re really good at carpentry and woodworking, you can highlight these skills in your services list. This can help you attract clients who are looking for those specific services.

Keep in mind that some services, like electrical work, may need special licenses or certifications. Research what’s required in your state when putting your list together. 

2. Create a Business Plan

A business plan is a document that describes your business, your goals, and your plan for success. It’s like a roadmap for your handyman business.

Before you write your handyman business plan, do some market research. This means learning about your potential customers, your competition, and the demand for services in your area. This information lets you make better business decisions.

Your business plan should include several key parts:

• Executive Summary. This is a short overview of your business and your plans.
• Company Description. Describe your handyman business in more detail.
• Market Analysis. Share what you learned from your market research.
• Services. List and describe the services you’ll offer.
• Marketing and Sales. Explain how you’ll attract and keep customers.
• Financial Projections. Estimate how much money your business will make and spend.

Having a clear business plan can help you stay organized and focused as you start and grow your handyman business.

FROM ONE OF OUR PARTNERS — How To Write a Business Plan: A Step-By-Step Guide

3. Organize Your Handyman Business Finances

It’s critical to keep your business money separate from your personal money. This will help you stay organized and avoid potentially costly mistakes when tax season comes.

The first step is opening a business bank account. This keeps your personal finances separate from your business finances. It also makes it easier to monitor how much your business is making and spending.

Another helpful tool is accounting software. These tools simplify the process of creating invoices, recording expenses, and analyzing your profits. They also make it a lot less likely that you’ll make mistakes.

4. Choose a Business Structure

Your business structure is how your business is set up legally. It affects how you pay taxes, how much paperwork you have to do, and how much personal responsibility you have for your business and its finances.

The most common business structures for small handyman businesses are:

• Sole Proprietorships. This is the simplest and most common choice. With a sole proprietorship, you’re the only owner of your business. Registration requirements and paperwork are minimal.
• Partnerships. This is similar to a sole proprietorship, but ownership is split between two or more people.
• Limited Liability Companies (LLCs). An LLC is a special type of business structure that gives you some extra legal protections. For example, running a handyman LLC keeps your personal assets separate from your business assets. On the other hand, LLCs also come with some extra paperwork and regulations.

FROM ONE OF OUR PARTNERS — The 8 Most Common Business Structure Types and How To Choose One

5. Get the Required Licenses in Your State

What can a handyman do without a license? The short answer is: Not much.

In most states, you need a handyman license before you can legally start working on significant paid projects. The rules for getting a license are different in each state, but there are some common steps you’ll probably need to follow.

In many states, you’ll need to pass one or more exams to get your license. These tests will check how much you know about building codes, safety rules, and general handyman skills. Many states also require you to have a certain amount of experience before you can get fully licensed. You may need to provide financial statements and proof of insurance, too.

RELATED ARTICLE — How to Get a Handyman License: Steps and Best Tips

6. Get Insured

It’s important to protect yourself and your business with the right insurance. This will help you avoid major financial problems if something goes wrong on the job.

The most important types of insurance for handymen include:

• General Liability Insurance. This covers you if you accidentally damage someone’s property or if someone gets hurt because of your work.
• Commercial Property Insurance. This protects your business property, like your office or workshop, from damage or loss due to things like fire, theft, or natural disasters.
• Workers’ Compensation Insurance. If you have employees, this mandatory insurance covers them if they get hurt on the job. It can help pay for their medical bills and lost wages.

FROM ONE OF OUR PARTNERS — Do You Really Need Business Insurance for a Home Services Company?

7. Register Your Business

Once you’ve got your license and insurance, it’s time to make your handyman business official. Here’s a quick overview of what you need to do:

1. Choose a Name. Pick something memorable that tells people who you are and what you do.
2. Register With Your Local Government. This typically means paying a registration fee, trademarking your business name, registering your domain name (if you want a website), and specifying your business structure.
3. Get a Business License. Check with your local Chamber of Commerce about the requirements for getting a business license. This shows that you’re legally permitted to work in your area.

FROM ONE OF OUR PARTNERS — How To Register a Business in the US: A Comprehensive Guide

8. Buy Tools, Equipment, and Supplies

To be a successful handyman, you need the right tools and equipment. While it’s one of the biggest costs of starting a handyman business, having high-quality, reliable tools will help you do your job better and faster. It’s worth investing in great tools that will last a long time.

Here are some of the most important tools and equipment for a handyman business:

• Hammer
• Screwdrivers
• Pliers
• Wrenches
• Measuring tape
• Utility knife
• Level
• Flashlight
• Safety glasses
• Work gloves
• Ladder
• Saw
• Drill
• Sander
• Caulking gun
• Paintbrushes and rollers
• Tool belt or toolbox

In addition to these basic tools, you may need specialized equipment depending on the types of jobs you do. For example, if you do a lot of plumbing work, you’ll need plumbing-specific tools like a pipe wrench and a basin wrench.

Don’t forget about supplies. Stock up on things like nails, screws, bolts, sandpaper, caulk, and paint. Having a good supply of these items on hand saves you time and trips to the hardware store.

9. Set Your Pricing

One of the most impactful decisions you’ll make as a handyman is how much to charge for your services.

A typical self-employed handyman’s hourly rate is between $50 and $80 per hour. But the exact amount you charge will depend on a few things, including:

• Competitor pricing
• The types of services you offer
• Your experience and skills
• Your location
• The types of clients you’re targeting

Make sure you incorporate these considerations before settling on a final hourly or per-project rate.

RELATED ARTICLE — How to Price Handyman Jobs

10. Create a Marketing Strategy

To get customers for your handyman business, you need to let people know about your services. Here are some simple ways to market your business:

• Create a Website. Use it to show off your services, prices, and contact information.
• Use Social Media. Make a Facebook page or Instagram account for your business. Post pictures of your work and ask satisfied customers to leave reviews.
• Advertise in Local Newspapers or Online. Choose places where your ideal customers are likely to see your ads.

FROM ONE OF OUR PARTNERS — How to Use Facebook to Market Your Handyman Services

3 Tips for a Thriving Handyman Business

Starting a handyman business is exciting, but it takes hard work to make it successful. Here are some tips to help your business thrive:

• Keep Learning. Stay up-to-date on new tools, techniques, and safety procedures. Consider taking courses or workshops to improve your skills and learn new ones.
• Get Feedback. Ask your customers to leave reviews on your website or social media pages. Use their feedback to improve your services.
• Network With Other Professionals. Build relationships with other handymen, contractors, and suppliers in your area. They may be able to refer customers to you or give you advice on running your business.

Send Professional Invoices to Your Customers

Your invoices should be as clean and professional as the work you do for your clients.

Create and share invoices in just minutes with our easy-to-use mobile invoicing tool. Record payments, issue payment reminders, and easily keep track of your monthly sales.