Starting a handyman business is more than having tools and fixing things. You need a handyman startup guide to learn business basics, get the right licenses, and find your customers. By focusing on what you’re good at and offering those services, you can make your business successful from the beginning.
To build a strong handyman business, first learn about your state’s laws and figure out who your customers are. Handyman services can charge between $40 and $100 per hour. This makes it a great business to start. And with the industry growing fast, it’s the perfect time to get started.
Define Your Skills and Services
Starting a handyman business is an exciting journey. You need to check your handyman skills, decide what services you’ll offer, and get the right tools. Focusing on specific handyman services lets you stand out and possibly make a lot of money.
Evaluate Your Current Skills
First, assess your skills carefully. Knowing what you’re good at helps provide top service. With tips from professionals with over 10 years in the field, focus on certain skills to increase your income. Learn how over 1,000 handymen found success in their crafts.
Decide on Specific Services to Offer
After evaluating your skills, pick the services you’ll focus on. Specializing lets you market yourself better and charge more. In the US, handymen earn between $60 and $85 per hour, but experts can earn up to $200. Pick your niche carefully to aim for a six-figure income.
Acquiring Necessary Tools Gradually
Starting your handyman business is easier when you buy tools gradually. Begin with what you have to save money. As your business and services grow, slowly buy more tools. This approach helps manage costs and keep your finances stable. Remember, truck insurance costs $100 to $300 a month, and you’ll need extra insurance for your equipment.
Learn the Handyman Laws in Your State
Before starting a handyman business, it’s key to know your state handyman licensing laws. Each state has its own set of rules. Make sure you understand what’s needed in your area.
Understand Licensing Requirements
The contractor license requirements differ a lot from state to state. For example, California requires a general contractor license for jobs over $500. But in Virginia, you can do work up to $1,000 without this license. For bigger projects or if your yearly work goes above $150,000, Virginia asks for a license. The Virginia Department of Professional and Occupational Regulation Board for Contractors can help with questions. They also handle license renewals every two years.
Common Restrictions for Handyman Services
There are strict rules on what handymen can do in many states. For instance, in Georgia, any project over $2,500 needs a Residential-Basic Contractor license. Florida calls for a general contractor license for any structural work, though other tasks might not need one. In Hawaii, any job over $1,000 or that requires a building permit also needs a license. Always check your state’s rules to stay out of trouble.
Useful Resources and Links
There are many places to get info on your state’s handyman laws. The Contractors State License Board in California has lots of details on licenses and how to apply. Virginia’s Department of Professional and Occupational Regulation Board for Contractors offers help with renewals and following the rules. For Texans and Georgians, local government sites are a good source for what you need to know about licensing.
- California: General contractor license for jobs over $500
- Virginia: General contractor license needed for projects exceeding $1,000
- Georgia: Residential-Basic Contractor license required for projects over $2,500
- Hawaii: License needed for jobs over $1,000 or requiring a building permit
Identify Your Ideal Customers
Understanding who your ideal customers are is key to a successful handyman business. By knowing your target market, you can tailor everything from services to prices. This helps meet your customers’ needs better. It’s important to figure out who you’re serving.
Understanding Your Target Market
Knowing your target market is the first step to success. Take Walmart and Apple as examples. Walmart focuses on budget-conscious shoppers, while Apple targets premium product lovers. By defining your target, you focus your efforts better. Keep these points in mind:
- Identify demographics such as age, income, and homeownership status.
- Understand psychographics, including lifestyle, values, and pain points.
- Create buyer personas based on market research data.
For instance, you might discover stay-at-home moms value trust more than technical skill in handyman services. Understanding your customers’ needs boosts your marketing and engagement.
Factors to Consider When Choosing Customers
Choosing the right customers helps balance work and profit. Here’s what to consider:
- Value over Price: Aim for clients who prefer quality and are willing to pay for it.
- Customer Needs: Customize your services to fit your target group’s needs and values. This encourages loyalty and repeat business.
- Market Research: Deep research helps you grasp your audience’s demographics and psychographics. This fine-tunes your offerings and messages.
Focusing too wide can be draining. Instead, target your ideal customers. This approach improves your rates, relationships, and reputation. A focused customer strategy not only makes marketing easier but also enriches the customer experience.
Setting Your Pricing Structure
Starting a handyman business means setting the right prices. You need to find a balance. Your rates should be competitive but also make sure you profit. Think about your skills, costs, taxes, and the money you want to make. Prices can go from $40 to $100 an hour. This depends on where you are and the job size.
Average Rates for Handyman Services
Handyman service rates vary for many reasons. This includes the type of work and where you live. The average rate is around $60 per hour. For easy jobs like hanging pictures or fixing ceiling fans, you might charge $75-$150. Mid-level jobs, like updating shower caulk, can earn you $150-$300. And for big tasks like painting a room or fixing lots of drywall, you could get $300 to $1,000.
Setting Profitable Pricing
Making a handyman pricing strategy that brings profit means doing some math. In places with high living costs like Alaska and Washington, D.C., rates are about $25 an hour. Remember to include your materials, any minimum fees, and your break-even point in your prices.
Deciding Between Hourly or Flat Rates
Choosing how to charge, by hour or a flat rate, depends on what works best for you. Some handymen like a set hourly fee because it’s simple. Others change their rates based on how complex a job is. In expensive areas, hourly wages can be $26-$29. Pick what fits your business and what your customers like.
Creating a Marketing Strategy
A strong marketing strategy makes your handyman business pop. To reach potential clients, it’s key to be online and use different marketing methods. Let’s see how to build a great marketing plan for your handyman business.
Building an Online Presence
Nowadays, being online is a must for handymen. More than half of searches for local handymen go to Google Maps first. Having your business there boosts how many people see you. For instance, Honest Lee Handyman gets lots of calls and website visits monthly from their Google My Business profile. This shows the strength of local SEO and having a strong online presence.
Start with a great website. Think of it as your online business card. It should work well on mobiles because that’s where most people will see it. Using strategies to get more leads and calls is smart. Also, real reviews and Google Local Service Ads can bring in more handyman clients and make your online rep better.
Effective Marketing Techniques
Good marketing isn’t just about being online. It uses many ways to get handyman clients. Here’s what you can do:
- Spend at least $100 on a quality logo with Fiverr to look professional.
- Keep your social media, like Facebook and LinkedIn, active to connect with clients and boost your SEO.
- Give out business cards and flyers to offer more services and build trust.
- Send newsletters with tips, deals, and news to keep clients coming back.
- Show off your services in professional videos to quickly grab potential clients’ attention.
Having good online reviews on places like Google and Yelp really helps bring in new clients. Ads on Craigslist can get leads for free. Working with rental owners and property management can also open up big chances.
Combining an online presence with these methods makes a full marketing plan. It helps you reach more clients and keep your business growing.
Register Your Handyman Business
Launching your handyman services starts with proper business registration. This means picking the right business structure. It also means following local laws to avoid legal problems later.
Choose a Business Structure
When starting your handyman business, there are a few structures to consider. A sole proprietorship is easy but offers no protection from personal liability. On the other hand, an LLC or Corporation offers liability protection and possible tax advantages. Think about your goals and how much risk you’re willing to take.
Filing Necessary Paperwork
Once you pick your structure, you need to do the paperwork. This usually means registering your business name and getting an EIN if you’re hiring. You might also need federal licenses. Some states, like Virginia, need contractors to have special licenses for certain jobs.
For instance, a Class A contractor license in Virginia is needed for big contracts or yearly work exceeding certain amounts, while Class C is for smaller projects.
Acquiring Business Licenses
Getting the right business licenses is key to working legally. This can differ depending on where you are. Some places may require tests or years of experience. For example, getting a Class A license in Virginia means having five years of experience and a certain net worth.
Having the right licenses not only keeps you within the law. It also shows clients that you’re a qualified, trustworthy handyman.
Getting Handyman Insurance
Getting the right insurance is key to protect your handyman business from risks. It’s vital whether you’re starting or have years in the trade. Knowing what insurance you need and selecting a provider can feel challenging but is necessary.
Types of Insurance Needed
You should think about several insurance types:
- General Liability Insurance: It’s crucial since it covers bodily harm or property damage claims. Handymen often choose coverage limits from $300,000 to $1,000,000 per claim. This amount protects well against lawsuits.
- Workers’ Compensation Insurance: This insurance is a must if you have employees. It pays for medical bills and lost wages from job injuries. States like North Carolina require it for businesses with three or more workers.
- Commercial Auto Insurance: Needed for business vehicles. Premiums vary from $150 to over $200 monthly, based on your coverage details.
- Tools and Equipment Insurance: This insurance helps if your tools get damaged or stolen. It costs about $12 to $45 a month.
Finding the Right Insurance Provider
Then, you need to find a good insurance provider. Companies like NEXT Insurance focus on handymen and contractors. They offer tailored policies that cover:
- General Liability: This protects against a wide range of claims from your handyman services.
- Professional Liability: Important for handymen, though it’s commonly used by consultants and lawyers.
- Tools & Equipment: This helps keep your vital tools safe against theft or damage.
- Commercial Auto: It covers your business vehicles after accidents.
Getting a policy with them is fast, usually under 10 minutes online. Plus, once you buy a policy, you can access your certificate of insurance (COI) instantly, anytime.
With strong insurance, your business is protected against financial troubles. This lets you expand your services and focus on helping your clients better.
Streamline Operations with the Right Software
Choosing the right handyman software can greatly improve your business’s effectiveness. It lets you handle job scheduling, invoicing, and customer management all in one place. This leads to smoother operations and improved service.
Importance of Business Software
Efficient tools are a must for a successful handyman business in today’s market. A survey found that 16% of handymen don’t use software, causing errors and inefficiencies. Handyman business platforms offer features like inventory management and CRM. This helps keep the business organized and efficient.
Recommended Tools and Platforms
It’s important to choose software that meets your business’s needs. QuickBooks is popular for accounting, used by 59% of businesses. Housecall Pro offers lots of features and automated review reminders, making it a top choice. Square and Wave provide free services, helping you save money. Here’s a summary:
- QuickBooks: Starting at $15/month, ideal for accounting and bookkeeping.
- Housecall Pro: Best for comprehensive features, starting at $49/month.
- Square: Free, focuses on point-of-sale services.
- Wave: Free accounting software, earns through credit card processing fees.
- ServiceFolder: Centralized customer info, efficient task management.
- All-In-One Calculator: Useful for accurate project planning.
Using a mix of these tools can change your handyman business for the better. It leads to more efficient time management, happier customers, and improved operations.
Conclusion
Starting a handyman business takes careful planning. First, you must check your skills against what customers need. It’s important to know your state’s rules for handymen. This ensures you’re legal and ready to go.
Finding the right customers and setting good prices are key. You can choose between charging by the hour or a flat rate. Using online tools and social media is a smart way to get noticed and attract business.
To keep things legal, register your business and get the right insurance. Picking the best software helps run the business smoothly. With hard work and the right approach, your handyman business can grow and succeed in this busy market.