Are you planning to start a handyman business? It is a business that requires high skill in repairing work. If you feel you are skilled enough to handle the work, then we will discuss in detail how to start a handyman business.
Before we understand the step-wise process to start this business, let’s see if this is an ideal business opportunity for you.
Is the handyman business the right option for you?
To become a handyman, you need to be fit and an expert for both exterior and interior work in the first. If you meet those criteria, then it is worth thinking of this business. Some common traits a person must-have for this work are-
- Physical fitness
- Acceptance of working flexible working hours
- The skill of repairing items at a household
- Knowledge of the right parts for different household items.
- A passion to help others
Step-by-step Guidance for Starting a Business as a Handyman:
You meet all the basic criteria to become a handyman. Now you are ready to start a handyman business. Here are a few steps, which when followed will make your life easier while starting your own business as a handyman.
1. Make a business plan:
Do you want your business to be successful? If yes, you need to make a thorough handyman business plan. Planning will work as a guiding map for your business and prepare you for the unknown.
Points that need to be covered in a successful business plan are-
- The startup cost involved in starting a handyman business.
- Cost for proceeding with the busyness.
- Who are your target clients?
- Suitable fees for handyman service that can be charged.
- Profit amount that you expect from the business.
- A suitable name for the business.
- Get yourself an online presence with a domain name.
- See what your competitors are doing in the market and how much they charge.
- Prepare a marketing strategy.
- This is a hardcore repairing work, so be prepared for anything unexpected to happen.
- Check-out the modern and trendy tools in the market to smoothen your work process.
2. Give your business a legal structure:
If you don’t want to get sued for the handyman business, we recommend you decide on the business structure while forming the company. LLC is probably the best option to avoid any personal liability. Other options for a business structure are-
- DBA or proprietorship
While you decide on the structure, you also need to select an agent to get the company registered.
3. Tax Registration:
The moment you are ready to start your business as a handyman, you need to visit the IRS website to obtain your EIN or Employer Identification Number.
If you have an EIN, you are eligible to apply for tax registration under the State and Federation.
4. Opening business account:
Whenever you start a business, it is suggested to have a separate business account for yourself. Mixing your personal and business bank accounts is never suggested.
Ideally, you should open a current account and get a credit card exclusively for the business.
This way of handling the accounts is called “piercing the corporate veil”.
Once you have a business set up ready to function, you will need professional accounting assistance to track your income and expenses. You need to make wise decisions with accounting to ensure the business is a success.
6. Arrange for necessary licenses and permits:
Getting a license for your is a matter of 2 days once you have chosen a name for the business and also got it registered under the state. Licenses are necessary to proceed with the business without being harassed.
A handyman requires a special permit document from the state, clearing to perform certain repairing work. Different states have different requirements altogether. Check with the office for the type of clearance you require for your license.
Having a license ensures a better flow of clients as they get more confidence. If you have a handyman business planned that is worth above $1,000, you need to arrange for a Contractor License then.
Along with the license your permit to prepare contracts to be signed with your clients before doing the job.
7. Purchase insurance for the business:
You would want your business to be protected from any unforeseen circumstances. What can be better protection than getting business insurance done?
Business insurance is likely to cost about $850 in a year. Insurance is even necessary for legal documentation of the business.
8. Purchase or lease a vehicle or truck for the business:
Mobility is essential if you intend to have a successful handyman business ahead. Don’t have a vehicle in working condition yet? We recommend you purchase or lease a business vehicle to store all your equipment and tools.
If you want something affordable, then a truck will be ideal. Regardless of whether you buy or lease your vehicle, ensure it’s a strongly built one. You can even consider getting a second-hand model to keep it cheaper.
A typical truck will cost you about $4,000.
9. Buy the necessary equipment for the business:
To start your business as a handyman, you will be requiring equipment and tools. If you want to keep the budget low, you might not purchase altogether. It’s fine to buy the tools based on their requirement, in order to prevent them from getting wasted and also to save resources.
List of important equipment needed by a handyman-
- Hand-held tools like that of a chisel, hammer, pliers, etc.
- Painting toolbox with a paintbrush, rules, tools for acrylic techniques, etc.
- Toolbox for plumbing with tools for crimping, pipe reattachment, etc.
- Equipment related to garden and lawn maintenance
- Storage Tools
- Equipment for cleaning
10. Branding of the business:
You have your business registered with license and you have the vehicle for mobility. It’s time for branding now. You need to get involved in active marketing and advertising.
If you have your website, then digital marketing and social media marketing is the new trend for advertising.
Get clients and provide them with excellent service. Let your brand name spread with the word of mouth. An important part of the service is to ensure that you have repeat clients.
Now you have a business setting as a handyman, you need to know you should expect on daily basis.
Your job is versatile. No 2 days are expected to go in the life of a handyman. The only constant in the work is labor. It will also call for a considerable amount of traveling you want the business to roll.
Growing as a handyman in the business:
We now know the steps that will help you establish your business as a handyman. We know one needs to have the knowledge in repairing household items to start off as a handyman.
What we need to understand is your growth opportunity in this business. Your growth and business will completely depend on your vision, goal, hard work, and customer service.
A great deal of business success depends on your experience and licensure. If your clients have confidence in your work, you are sure to get more references and earn more profits.