A handyman business offers a variety of home repair services, based on their skill set and the customer’s needs. This can include, but is not limited to, bothinterior and exterior trade skills, maintenance, and repair.
We have put together this simple guide to starting your handyman business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
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Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Handyman Business Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
Assuming you have a reliable vehicle to transport tools, your start-up costs will be fairly minimal. In fact, experienced business owners indicate you can start your business with less than $1, 000. The only items you need are standard home repair tools, marketing materials, andinsurance. Insurance costs vary, depending upon your experience and scope of projects you plan to take on. Average cost is $361 to $792. To escalate your business’ growth, consider having a simple website built, where customers can find out basic information and locate contact information.
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While yourongoingexpenses will be higher than initial start-up costs, most handymen report fairly minimal overhead costs. You will need to maintain the necessary licenses and carry proper insurance. Ongoing maintenance, repair, and replacement of all tools, including your vehicle, will be your largest expense. If you employ a crew, you’ll also need to consider Workers’ Compensation costs, as well as costs associated with payroll.
In this industry, you have a large pool of potential customers to choose from. Most consumers don’t have the knowledge, time, or desire to perform home maintenance and repair. Identify your target audience by considering the type of jobs you plan to take on and the customer baseyoufeel drawn to work with. For example, single women over the age of fifty who live alone is a standard target market. They often lack the skills to complete most home repair tasks and are willing to pay to employ a honest, hard-working repairman.
Yourfees will vary, depending upon location and size and scope of each project. Some handymen charge a standard hourly rate, while others set their fees on a per-job basis. Average hourly rates range from $60 to $125. To avoid under and/or overcharging, professionals recommendsettingcost-based fees. For more information on this, consider downloading thishandyman hourly rate calculator.
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While the standard, one-man operation averages just around $40, 000 annually, there are many handyman businesses that report earning as much as $3, 000 per week. Your profits are directly tied to the types of jobs you take on and how accurate your fee structure is.
To maximize your profits, it’srecommendedthat you employ multiple workers with a variety of skills. The more quality workers you employ, the more jobs your business is able to take on. Those reporting the highest profits also indicate that working with property management companies yields the highest profits.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your handyman business is sued.
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You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?
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There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
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Certain state permits and licenses may be needed to operate ahandyman company. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
Handymancompanies should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions and service level expectations.Hereis an example of one such services agreement.
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Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
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FInd out what types of insurance your Handyman Business needs and how much it will cost you by reading our guide Business Insurance for Handyman Business.
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
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If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
The first item on your marketing checklist is to get your business listed in all local, online directories such as Yelp and Google My Business. Some handymen have reported success advertising on free job listing sites such as Craigslist. Unfortunately, this often generates leads for consumers on a small budget, so you may want to set some parameters before taking advantage of this free resource. Small ads in community websites and local publications should also help bring business until you’ve established a name for yourself.
Industry leaders indicate they found the most success through reaching out to property management companies in the area. This is an effective way to ensure a steady stream of jobs.
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As indicated previously, it’s important to understand the local handyman laws. There are often rules regarding how and what you are allowed to advertise, which varies depending upon the size of jobs you take on. To avoid the headache and costs associated with breaking these rules, conduct thorough research on the front-end.
If you have ever been in the market for help with a home repair project, you’ll know that price is only one of the factors. When meeting with a prospective client, make sure you maintain an air of professionalism and are able to educate the customer on their needs. Show them how your work is a step above the rest.
Try to set fair prices, comparable to others in the area. Ignoring this unwritten rule undervalues not only your work, but everyone else’s in the industry. Additionally, always strive to be on time and on budget with your projects. Quality customer service will help spread the word and assist in long-term growth.
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While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and
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