If you have a passion for fixing things and enjoy working with your hands, starting a handyman business may be the perfect way to turn your skills into a profitable business.
Starting a handyman business can be an excellent opportunity for those who enjoy working with their hands and want to be their own boss. With the demand for home repairs and renovations on the rise, starting a handyman business can be a lucrative venture. In this guide, we'll walk you through the essential steps to get your handyman business up and running successfully.
Business Planning
Another important step in starting a handyman business is creating a business plan and setting goals. Your goals should be specific, measurable, achievable, relevant, and time-bound. For example, you may set a goal to acquire five new clients per month, increase your revenue by 25% in the next six months, or expand your services to include additional home improvement tasks.
Get help with your business plan here.
Before launching your handyman business, you'll need to consider your startup costs and ongoing expenses. To determine your startup costs and ongoing expenses, you should create a detailed business plan that includes all of the necessary expenses associated with starting and running your handyman business. By understanding your costs upfront, you can better plan your pricing strategy and ensure that your business is profitable.
Costs & Revenue
This can be a simple and straightforward way to price your services, but it may not always be the most profitable option. You may also consider charging a flat fee for certain types of jobs or services. To determine your profit margins, you'll need to consider your costs, your desired salary, and your overhead expenses.
Developing a revenue projection can be a helpful tool for guiding your business decisions and ensuring that your handyman business is on track to meet your financial goals. A revenue projection should include estimates of your monthly and annual revenue, as well as your expenses and profits. To create a revenue projection, you'll need to consider factors like the number of jobs you expect to complete each month, the average price of each job, and your estimated expenses for each job.
Before you start getting a contractor's license or other licenses to start your handyman business you need to take a step back and understand what the rules are around being a handyman. a handyman in California can only work on projects where the total cost is capped at $500 including parts and labor. this also means that you can't piecemeal a project in stages to circumvent the rule.
Most handymen will probably start out as a sole proprietorship depending on what kind of services they're offering if you feel like there might be a larger amount of liability then you may want to think of starting an LLC or even a corporation if you were looking to grow into a larger business. we have guides on how to start all three.
Developing a revenue projection can be a helpful tool for guiding your business decisions and ensuring that your handyman business is on track to meet your financial goals. A revenue projection should include estimates of your monthly and annual revenue, as well as your expenses and profits. To create a revenue projection, you'll need to consider factors like the number of jobs you expect to complete each month, the average price of each job, and your estimated expenses for each job.
Licenses & Permits
Most handymen will probably start out as a sole proprietorship depending on what kind of services they're offering if you feel like there might be a larger amount of liability then you may want to think of starting an LLC or even a corporation if you were looking to grow into a larger business. we have guides on how to start all three.
Identify the licenses and permits needed to start your business
The first step in managing your finances as a handyman business owner is to set up an accounting system. This system should include software or tools that can help you track your income and expenses, manage invoices, and record all financial transactions. You can use accounting software such as QuickBooks or Xero, which can help you manage your finances effectively.
Once you have set up your accounting system, the next step is to keep accurate records of all financial transactions. This means recording every transaction, including payments received from clients, expenses such as materials and tools purchased, and any other financial transactions related to your business.
Finally, it is important to use financial reports to monitor the health of your business and make informed decisions. For example, if you notice that your expenses are higher than your revenue, you may need to adjust your pricing or cut back on unnecessary expenses to improve profitability. These reports will provide you with valuable insights into the financial performance of your business, including your revenue, expenses, and profitability.
Developing a solid marketing strategy is critical to the success of your handyman business. Before you start marketing your handyman business, you need to identify your target audience. This may include homeowners, property managers, and small business owners in your local area.
In today's digital age, having a website and social media profiles is essential for any business. Social media can be an effective marketing tool for a handyman business as well. Platforms such as Facebook and Instagram allow you to showcase your work, share tips and advice, and connect with potential customers in your local area.
In addition to your website and social media profiles, there are other marketing tactics you can use to attract customers. Advertising through local radio or television stations, billboards, or online advertising platforms such as Google Ads can help you reach a wider audience. Other marketing tactics to consider include offering discounts or promotions to new customers, sponsoring local events or sports teams, and partnering with other local businesses to cross-promote your services.
Record Keeping
Once you have set up your accounting system, the next step is to keep accurate records of all financial transactions. This means recording every transaction, including payments received from clients, expenses such as materials and tools purchased, and any other financial transactions related to your business.
Finally, it is important to use financial reports to monitor the health of your business and make informed decisions. For example, if you notice that your expenses are higher than your revenue, you may need to adjust your pricing or cut back on unnecessary expenses to improve profitability. These reports will provide you with valuable insights into the financial performance of your business, including your revenue, expenses, and profitability.
Marketing
In today's digital age, having a website and social media profiles is essential for any business. Social media can be an effective marketing tool for a handyman business as well. Platforms such as Facebook and Instagram allow you to showcase your work, share tips and advice, and connect with potential customers in your local area.
In addition to your website and social media profiles, there are other marketing tactics you can use to attract customers. Advertising through local radio or television stations, billboards, or online advertising platforms such as Google Ads can help you reach a wider audience. Other marketing tactics to consider include offering discounts or promotions to new customers, sponsoring local events or sports teams, and partnering with other local businesses to cross-promote your services.
Check out our other marketing guides
Let me know what you think. Are you looking to start a handyman business and were sure how to begin? Do you have any questions about how to begin your next handyman business? Let us know in the comments below.
Conclusion
Starting a handyman business can be a rewarding and profitable venture if you are willing to put in the time, effort, and dedication required to make it successful. Follow the steps outlined in this post, believe in yourself, take action, and persevere through challenges, and you can achieve your dream of owning and operating a successful handyman business.Let me know what you think. Are you looking to start a handyman business and were sure how to begin? Do you have any questions about how to begin your next handyman business? Let us know in the comments below.
Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.
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