How to Build a Thriving Handyman Business: A Comprehensive Guide

Have you always been handy around the house? Do you enjoy tackling home repair and improvement projects? If so, starting a handyman business could be a great way to turn your skills and passion into a thriving career.

As a handyman, you can make a good living helping homeowners with a variety of tasks like basic plumbing repairs, painting, drywall patching, deck building, and more. The startup costs are low, and you have the potential to build a successful business through word-of-mouth and repeat customers.

In this blog post, we'll walk you through the essential steps to get your own handyman business up and running, from creating a business plan to finding your first clients and everything in between. If you're ready to be your own boss and never have two days of work that are exactly the same, the handyman field could be ideal for you. Let's get started!

The Handyman Market Landscape

The handyman service industry targets homeowners in need of minor repairs, maintenance, and home improvement projects. This includes tasks like installing ceiling fans or cabinets, painting, drywall repair, basic plumbing fixes, and more. The market for these types of services is large since most homeowners do not have the skills, time, or desire to handle many of these jobs themselves.

Handyman businesses typically operate on a local level, serving residential customers in their city or region. While some handymen charge premium rates and market themselves as luxury or high-end services, most target the mainstream market. The work is not usually highly specialized, so handymen rely more on providing good value, quality work, and customer service to build their business rather than niche expertise or credentials.

The broad range of services handymen offer and the ongoing need for home maintenance and repairs provide a lot of opportunity for steady work and repeat clients. With some experience, handymen can also take on larger remodeling and renovation projects to generate additional revenue. The key is providing the types of services that match your skills and that homeowners in your area are looking to outsource.

Your Handyman Services

As a handyman, the services you offer will be the foundation of your business. Focus on the types of tasks you have experience with and can complete efficiently. Some of the most common handyman services include:

•Basic plumbing repairs like fixing leaky faucets, unclogging drains, installing water heaters, etc.

•Minor electrical work such as installing lighting fixtures, ceiling fans, outlets, etc.

•Painting interior rooms and exterior fixtures like doors, shutters, and trim.

•Drywall installation and repair.

•Building and repairing decks, fences, and other exterior structures.

•Installing cabinets, shelving, and other fixtures.

•Pressure washing siding, decks, driveways, and more.

To stand out, focus on providing quality work, meeting deadlines, and exceeding customer expectations. Offer a warranty or guarantee on parts and labor. Provide consultations to evaluate the work needed before starting a project. Be on time, clean up thoroughly, and maintain a professional appearance and attitude.

Promote your services through a professional website, social media profiles, flyers, and word-of-mouth marketing. Offer discounts and specials from time to time. Provide photos and reviews from previous customers. You can also ask happy clients to spread the word about your business to their friends and neighbors.

Developing a menu of services that covers common handyman tasks in your area will give you plenty of work to get started. As you build experience, you can expand into more complex jobs. Focus on the types of projects you genuinely enjoy and excel at for the most success.

The Economics of a Handyman Business

Handyman businesses typically have low startup costs since you do not need an office or retail space and only minimal equipment. However, you will need to invest in tools, supplies, work clothes, transportation, insurance, licensing, and marketing. Plan on budgeting at least $5,000 to $10,000 to get started.

Your main ongoing costs will be supplies for each job, transportation, insurance, and other business expenses. Aim for a cost of goods sold (COGS) of no more than 30-50% of your revenue. Track your expenses carefully, especially when first getting started.

For pricing, you will need to consider your costs as well as the going rates for various services in your area. You may charge by the hour (typically $50 to $100/hour) or by the project (for example, $200 to paint an average sized room). Offer free estimates for larger jobs. Discounts and package deals can help win new clients.

It is a good idea to start with lower rates as you build up experience and reviews. You can then increase your prices over time as you establish your reputation and the demand for your services grows. However, be careful not to price yourself out of your target market. Most handymen earn $30,000 to $50,000 per year in revenue, depending on the area and types of services offered.

With time, you will get better at accurately estimating costs and the time required for different types of projects. This will help you provide fair prices to customers and ensure you are making a good profit at the end of the day. Focus on high-quality work, great customer service, and building a loyal base of repeat clients and referrals. This is the key to success as a handyman.

Marketing Your Handyman Business

To attract new clients, you will need to implement an effective marketing strategy for your handyman business. Some of the best options include:

•Search Engine Optimization (SEO): Optimize your website to rank higher in search engines like Google for terms like “handyman,” “home repairs,” and other relevant searches in your area. This can drive organic traffic and leads.

•Social Media: Create profiles on Facebook, Nextdoor, and other local community platforms. Post updates about your services, share photos of your work, and engage with potential customers. Offer promotions and deals exclusive to your social media followers.

•Direct Mail: Send postcards or flyers promoting your business to local neighborhoods. Include a coupon or discount to encourage people to give you a try.

•Online Advertising: Run targeted ads on Facebook, Google, and other sites to reach homeowners in your region. Offer a first-time customer discount in your ads.

•Networking: Join your local chamber of commerce and attend community events. Introduce yourself to homeowners, real estate agents, property managers, and others who may refer clients to your business. Provide your business cards and information about the services you offer.

•Reviews: Ask satisfied customers to leave reviews on sites like Yelp, HomeAdvisor, and Google. Positive reviews help build trust in your business and can lead to new jobs. Offer a discount on future work in exchange for an honest review.

•Referral Program: Offer existing clients a discount for referring new customers. This incentivizes them to spread the word about your handyman business to people they know.

A combination of online and offline marketing strategies will help raise awareness of your services and keep your business in front of potential new clients. Be sure to track the results of your marketing to determine what is most effective so you can optimize your efforts over time. Consistency is key to building a successful handyman business.

Sales Strategies for Your Handyman Business

To generate sales, focus on converting leads into paying customers. Some effective sales strategies for a handyman business include:

•Free Estimates: Offer free estimates for any jobs over a certain dollar amount, like $200. This allows homeowners to get a better sense of the work and costs involved without obligation. Many will proceed with the work if your estimate is fair and reasonable.

•Upselling: When performing an estimate or job for a customer, look for opportunities to upsell additional services. For example, if repairing drywall, ask if they would like you to paint the room. If unclogging gutters, ask if they need gutter guards installed. Upselling to existing clients is an easy way to increase sales.

•Discounts and Special Offers: Run promotions like 10% off all jobs over $500 or $50 off your first visit. Discounts give new customers incentive to try your services while still allowing you to profit. Limit the number of coupons available to create urgency.

•Payment Plans: For larger jobs, offer payment plans that allow customers to pay over time with no interest charges. This makes the work more affordable and appealing, especially for costly home improvement projects. Require upfront and periodic payments to minimize risk.

•Follow Up: Call or email customers a few days after completing a job to make sure they are fully satisfied with the work. Ask for a review and if they need any additional services. Following up is a chance to get feedback, build goodwill, and potentially generate repeat business or referrals.

•Seasonal Specials: Run sales and promotions during your busier seasons or holidays to encourage more people to book jobs. For example, offer 10% off exterior painting in the summer or $50 off gutter cleaning in the fall. Seasonal specials keep your schedule full when work may otherwise slow down.

Operations and Execution

To run a successful handyman business, you need to establish efficient operations and follow through with high-quality execution. Some key things to focus on include:

•Define your service area and types of jobs you will handle. Only take on work that matches your skills and that you can complete within a reasonable time frame.

•Set a regular schedule for completing estimates, jobs, and administrative tasks. Leave some flexibility in your schedule for emergency calls and urgent jobs.

•Keep your tools, equipment, and supplies well-organized and maintained. Have backups of critical tools and materials on hand.

•Provide professional uniforms, name tags, business cards, and vehicle signage. Your appearance and branding help establish credibility.

•Handle paperwork like contracts, invoices, and receipts in a timely manner. Keep records of all jobs and clients.

•Focus on high-quality work, meeting deadlines, and leaving job sites clean and tidy. Exceed customer expectations whenever possible through friendly service and quality results.

•Ask clients to sign off on completed work to ensure their satisfaction before moving on to the next job. Get reviews and referrals from happy customers.

•Continue learning and improving your skills through online videos, tutorials, and hands-on practice. Take courses on things like plumbing, electrical work, carpentry, and more.

•Build a network of trusted professionals like plumbers, electricians, and contractors to refer work to and get referrals from in return.

•Consider hiring employees or subcontractors as your business grows to help handle the workload. Provide adequate training and oversight to ensure high standards are met.

With diligent operations and a commitment to excellence in your work, you can build a reputable handyman business. Focus on continuous improvement to better serve your customers and scale your company over time.

Legal Considerations

When starting a handyman business, it is important to research the legal requirements to operate in your area. These may include:

•Business licenses and permits: Most cities and counties require handymen to obtain a general business license or permit. Some may require additional permits for certain types of work like plumbing or electrical repairs.

•Insurance: Liability insurance and workman's comp insurance are typically required. Liability insurance protects you financially in case of any injuries or property damage. Workman's comp covers employees and subcontractors.

•Bonding: Some areas require handymen to be bonded to operate. A bond helps ensure you meet licensing and permit requirements.

•Certifications: Certain services like plumbing, electrical work, and HVAC repair may require special certifications or licenses. Make sure you have the proper credentials for the types of jobs you want to perform.

•Zoning laws: Check your local zoning laws to ensure operating a handyman business out of your home or in a separate space is permitted. Some areas prohibit or restrict certain types of commercial activity in residential neighborhoods.

•Taxes: As a business owner, you will need to pay self-employment tax, income tax, and may need to charge sales tax on your services. Consult an accountant to make sure you comply with all federal and state tax requirements.

Failure to obtain proper licenses, permits, insurance, and meet other legal obligations can result in significant fines and even cause you to cease operations. Do thorough research on what is required in your city and state to start a handyman business legally and responsibly.

Conclusion

Starting a handyman business can be a rewarding endeavor for those with the skills and passion to help homeowners with various repairs and maintenance needs. While the work is physically demanding, the potential for building a successful company is substantial.

With low startup costs but high demand, the handyman service industry provides an opportunity to create a profitable business. Focus on the types of jobs you genuinely enjoy and do well, develop a professional brand, and implement a marketing plan to reach new clients.

Provide high-quality work, fair prices, and great customer service. Build your skills through continuous learning and experience. Meet all legal requirements to operate responsibly.

If you are looking to be your own boss and help your community, consider starting a handyman business. With hard work and persistence, you can build a thriving company that allows you to earn a good living using your talents. Start today by creating a business plan, setting up the necessary legal paperwork, developing your brand, and finding your first customers. Then get out there and start tackling those home repair and improvement projects!