Are you skilled at maintenance and repairs? If so, you might want to provide handyman services to homeowners and businesses.
Caleb started North Seattle Handyman in 2017. Today, he’s making $250K a year with only one employee. He started his handyman business with $5,000 and has never had a month where he didn’t break even.
He explained how he started his business, and we’re going to share his tips with you. We’ll walk you through how you can start your own handyman business step by step.
Keep reading or click on any of the links below to jump to that section:
What is a handyman?
A handyman is someone who does odd jobs like small repairs, hanging TVs, and other home maintenance tasks. Handymen help homeowners and rental property companies keep their properties in good repair. This means that most handymen will be working in a client’s home or business.
Working on someone else’s property has special legal requirements that you need to follow during the beginning stages of starting a handyman business.
We’ll cover them in general terms since each state will have different requirements.
Service Business Case Study: North Seattle Handyman
Caleb started his successful business, North Seattle Handyman, with the goal of remodeling houses. However, he soon realized it was a more profitable business model to work on smaller jobs. He adjusted his handyman business marketing strategy accordingly.
Working on small jobs led to increased customer satisfaction and higher profit rates. Caleb told us:
He also warned new handyman business owners about the risk of overscheduling. It’s common for people to overbook themselves when they’re first starting out.
Want to learn more about how to start a successful handyman business from someone who has already done it? Check out our interview with Caleb below:
Learn About the Handyman Industry
As you review your business plans, you’ll probably have a few questions about overhead costs, finding new customers, and administrative tasks. Let’s discuss some frequently asked questions about the handyman service industry.
What type of work can a handyman legally do?
Each state has different requirements, but in general, a handyman can typically do jobs under $1,000 without a handyman license. If you plan on taking larger jobs, you should check your state requirements for small business owners in this sector.
Do handymen need to be licensed?
Local contracting laws may impact whether you need a handyman license. Go to your city or county’s website to establish whether you have local licensing requirements.
If you wish to do larger jobs like home remodels or offer specialty services such as plumbing or electrical work, then you may need a contractor’s license. Caleb told us:
The spectrum of requirements varies, so make sure to check your specific state requirements.
How much does a handyman business make?
According to our business ideas page, the average handyman business makes $635K per year in revenue with a 5.4% profit margin. That means the average handyman business owner will see approximately $34,290 in profit.
If you’re deciding between a handyman business and other alternatives, you can find more ideas in the UpFlip Academy.
You may also be interested in how much handymen make per year with or without an ownership stake in the company. Caleb told us:
According to the Bureau of Labor Statistics, general maintenance and repair workers tend to average around $47K per year.
How much does it cost to start a handyman business?
According to our database, it costs $3,500 to start a handyman business. This number seems a bit low to me unless you already have the tools and a vehicle to start providing handyman services.
Caleb explained more about his own startup costs:
Your total costs will extend beyond just obtaining a business license and insurance. Starting a new business as a handyman may cost as much as $100,000 if you buy a new truck. Depending on the payment terms of your auto loan, most of the extra cost could be spread out over five to seven years.
How much do handymen charge?
When I researched this question, I found that most self-employed handymen charge between $50 and $125 per hour. Most jobs fall between $65 and $1,200 with an average of $390.
Common jobs may have a flat fee. Materials are typically added to the hourly rate for labor. When we asked how much Caleb charges per hour, he told us:
What skills do I need to become a handyman?
When starting a handyman business, you should have a wide variety of skills. Potential customers want to be able to contact you for any of the tasks they don’t have the time, ability, or desire to do on their own.
Some of the handyman skills potential customers look for include:
- Finding a stud
- Anchoring bookcases, TVs, and other objects
- Filling holes in drywall with spackle
- Fixing loose tiles
- Caulking tubs, sinks, and bathtubs
- Fixing leaking faucets
- Unclogging drains (with or without a snake)
- Sealing cracks in pavement
- Changing shower heads and toilet seats
- Cleaning gutters
- Replacing door knobs and locks
- Changing air filters
- Building and replacing window screens
- Painting
- Replacing light switches and outlets
This is far from an all-inclusive list. The Handyman channel on YouTube teaches people how to tackle many of these projects. You can use this channel or other resources to fill in your personal knowledge gaps.
What are the right tools for handyman jobs?
According to Smart Service, every handyman should have these tools available:
- Claw hammer
- Tape measure
- Level
- Utility knife
- Impact driver
- Drill with a variety of bits
- Saws
- Flashlights and shop lights
- Charging kit for power tools
- Shop-Vac
- Screwdrivers
- Wire stripper
- Pliers
- Gloves
You’ll also need a vehicle to transport everything. Look at work vans and trucks if you don’t already have one. Here’s Caleb’s perspective on tools and transportation:
Now that you have a great list of tools you need to provide handyman services, let’s look at how much it costs to start a profitable handyman business.
How to Start a Handyman Business
It’s helpful to have a solid plan in place when thinking about how to start a handyman business. We suggest taking the following steps:
- Write a handyman business plan.
- Create a service contract.
- Secure funding for your handyman business.
- Set up your business structure.
- Purchase handyman tools and equipment.
- Market your handyman services.
- Provide amazing customer service.
Keep reading to learn more about how to start a handyman business.
Step #1. Write a Handyman Business Plan
A simple business plan will guide your decisions and marketing strategy as you start a profitable handyman business. Additionally, you may want to add information to help employees understand their roles and for lenders to judge whether you’re a good candidate for business financing.
At a minimum, I would recommend including the following details in your business plan:
- Description of services: What services do you offer? Do you refer major construction projects out for a commission? What is your pricing strategy?
- Business goals: Think about your end goals and what it will take to get there. Do you just want to make as much money as you can on your own, or do you want to hire employees?
- Target market: Include details about your target audience. Are you targeting real estate agents, property managers, or homeowners?
- Tools, equipment, and software: What do you need to begin business operations?
- Budget and funding: Consider your startup costs. This should include overhead and marketing costs. How will you get the funding? Will you pursue small business funding?
- Name and branding: Make a list of potential names, logos, and colors for your brand.
- Business formation: Research which regulations you’ll need to follow for each type of business structure. You may want to consider forming a limited liability company to keep your personal and business assets separate.
- Operations plan: Describe how you’ll operate your business from day to day. How will you handle customer relations, vendors, and employee management?
Check out our blog on how to write a business plan. I’d also suggest checking out our interview with Mike Andes:
Step #2. Create a Service Contract
Every professional handyman needs a good service contract. According to Rocket Lawyer, a service provider needs to clearly include the following terms in a service contract:
- Contact information for both parties
- Description of service and scope of work
- Compliance and insurance requirements
- Payment terms
- Confidentiality agreements
- Indemnification
- Warranty
- Default terms
- Remedies and dispute resolution
Make sure you understand each part of your contract. New customers may have specific questions you’ll need to answer.
Step #3. Secure Funding for Your Handyman Business
Your business plan will help you secure funding for your handyman company. In addition to traditional business loans from a bank, common funding paths include:
- Personal assets
- Loans from family or friends
- Funds from a business partner
- Funding from government programs
The U.S. Small Business Administration offers free courses on financing options and funding programs. Alternative sources of funding include:
- Crowdfunding
- Credit cards
- Home equity loans
- Business loan
- Rollover for business startups
Keep reading to learn more about starting a handyman business.
Step #4. Set Up Your Business Structure
First, you’ll want to choose a handyman business name that’s easy to remember. Caleb told us:
Once you’ve done that, you’ll want to:
- Register your handyman business.
- Apply for your employer identification number.
- Obtain a business license.
- Open a business bank account.
- Get small business insurance.
Step #5. Purchase Handyman Tools and Equipment
You’ll want to buy or rent the tools you need to complete odd jobs and provide a quality service. Caleb already had most of the tools, but you can start small if you need to build up your inventory.
Purchase a small number of tools and take on residential clients with simple tasks. From there, you can slowly buy the tools you need for more specialized services as you get more jobs.
Step #6. Market Your Handyman Services
Caleb gave us a lot of great advice about marketing and how to let the local community know that you’re in business:
In other words, avoid using companies like HomeAdvisor and Thumbtack that take a large cut for marketing.
The key is to advertise your skills in detail. This could include anything from hanging TVs to installing faucets. Share pictures of projects on social media and your Google Business Profile. Caleb has his own strategy to show off his handyman work and stay relevant:
Having a website has made a huge impact on Caleb’s business:
You can create an awesome site using Squarespace or similar platforms. If you’re going to build your own website, check out our blog on how to create a website.
Step #7. Provide Amazing Customer Service
Customer service is one of the keys to running any home service business. Make sure to be polite, introduce yourself, and take precautions to protect the customer’s space from dirt or damage. Do the job right the first time.
Always give the customer a chance to inspect the work and approve it before leaving. Once they’ve approved the work, let them know how much you appreciate their business.
Don’t hesitate to ask for a review from satisfied customers. Just asking for a review upfront makes them more likely to take the time to write it.
Useful Software for Handyman Businesses
Caleb explained what software he uses to manage his business:
It sends me an email, and then it also sends it to my customer management system. That keeps everything in one place. So I can invoice, I can talk to the customers, I can schedule through that system, which is Field Pulse. Those systems run around $100 a month. We [also] use HomeWyse. It’s like having an estimating book in your car.
If Field Pulse doesn’t seem like the best CRM for you, there are a ton of different software tools for handyman businesses. Jobber and Housecall Pro are two popular options that have good ratings.
Operating Your Own Handyman Business
Caleb gave us so much advice about operating your own handyman business that I think it’s best to let his words do the talking.
I hope you’ve found this information to be helpful as you learn about starting a handyman service company. If you found this walkthrough useful, subscribe to our newsletter to keep up to date on how to start different types of businesses.
I want to leave you with the best three pieces of advice that Caleb can give you:
