Start a Handyman Business

In general, a "handyman" refers to anyone (regardless of gender) who performs odd jobs involving general building maintenance and repair. While many handymen are employed by large maintenance companies, others are self-employed. Small startup companies often compete with more established trade firms in the areas of electrical work, painting, carpentry, heating and cooling, and many other aspects of building and maintenance. If you would like to be your own boss and start a handyman business of your own, there are a few steps you must take.

Steps

Laying the Foundation

  1. Have enough experience to work independently. Most handymen who start their own businesses have already spent years working in similar positions. Relevant experience can be obtained through other handyman companies or through fields such as plumbing, construction, building maintenance, or property management.[1]
  2. Figure out a business plan. Before moving forward, you will need a clear idea of what kind of business you would like to create.
    • Think about what types of jobs in which you would like your company to specialize. A "handyman" may do anything from helping to hang pictures to construction work. Make a list of specific services you would like to offer.
    • Consider what type of customers you would like to serve. The two major types are other businesses and private individuals. While some companies focus on one or the other, many smaller startups serve both.[1]
  3. Choose and register your business's name. This can be something as personal as "[Your Name]'s Maintenance." Make sure potential clients can tell that it is a handyman service from the name alone. Try to find a name that has an available simple web address and isn't similar to other local businesses.
    • Use the U.S. Patent and Trademark Office's trademark search tool (or your country's equivalent) to make sure your name isn't identical or similar to an existing trademark.[2]
    • You will likely need to register your company as a "Doing Business As" name with your state or county government.[3]
  4. Obtain required licensing. Licensing requirements will vary depending on your location. Some areas require that all professional handymen hold a license. Licensing in other areas is determined by income or the "size" of a job. In these conditions, a handyman doesn't need to be licensed if he or she makes under a certain amount per year or only does jobs costing under a certain amount of money. Still other locales only require licenses from specialty contractors, such as plumbers or electricians.[4]
    • Licensing qualifications will also drastically vary from place to place. In general, they will include some sort of examination, training, job experience, and/or a processing fee.
    • To find out the requirements for your area, consult with a few different sources. Talk to other handymen or contractors you may know or consult with an attorney who specializes in such businesses. Check your city or state government's official website for more information.[5]
  5. Hire additional employees if necessary. Many common handyman jobs are simple and require only one person to do them. However, as your business grows, you may want to accept larger jobs where two or more workers are necessary. Additionally, with more workers your company will be able to schedule multiple jobs at once to increase revenue.
  6. Purchase appropriate insurance. At the very least, you must insure your company's vehicle. It is also important to have liability insurance. Many insurance companies have policies tailored specifically for handymen.
    • If you hire employees, you must purchase workman's compensation insurance if your business resides in most states in the US. This is not required if the other handymen at your company are business partners or joint owners. Additionally, some large businesses you may wish to work for require that you have workman's compensation insurance even if you are not legally obligated to have it.[6]
    • If you are in the US and your business grows to include 50 or more full-time employees, your company must offer its workers health insurance coverage. You may require your employees go through a waiting period of up to 90 days before coverage applies.[7]

Purchasing Equipment

  1. Make sure you and your workers have reliable transportation. If you already own a truck or van, you may choose to use your own personal vehicle. Otherwise, buy or rent one large enough to safely accommodate any necessary materials.
    • If you're renting, make sure the company who owns the vehicle allows for its commercial use.
    • If possible, decorate your vehicle with your company's name, logo, and contact information. This will work as free advertising and make your business seem more professional to clients.
  2. Assemble a Outfit a Basic Toolbox for each of your workers. Each person at your company should have a basic, easily transportable set of tools. While plenty of complete tool boxes and bags are available for purchase, it may be more cost-effective to outfit custom ones on your own.[8]
  3. Have a reliable supplier for relevant materials. These may include nails, wood, pipes, fixtures, specialty tools, and other items commonly needed for handymen to get a job done. The particulars will depend on what types of jobs your company focuses on and is hired to do.
    • A commercial home improvement store may be all you need early on while your business is small.
    • As your business grows, you may save a lot of time and money by working with a professional supplier.
    • Whichever type you pick, make sure they can have what you need on a moment's notice. Faster job completion and the ability to handle last-minute job requests will earn your company positive recommendations and repeat customers.
  4. Buy your supplies in bulk. A good way for your business to make more money is to save money when buying necessary materials. As a handyman, you will likely use large volumes of items like nails and wood. Buying these materials in bulk at per-unit prices under the single unit cost will save your business money over time.
    • Many popular home improvement stores offer special contractor discounts and volume pricing with costs well under retail.
    • Other suppliers will only sell in bulk and to professionals like you, rather than dealing with the general public.
    • Don't buy more than what you can safely and economically store. It doesn't make financial sense to save $50 on materials if you end up needing to spend $100 to store them.
  5. Keep detailed records of your purchases. This is very important when filing your taxes, as most countries allow you to "deduct" business expenses like equipment from your gross income.
    • For example, if your business charged $500 for a job that used $100 in materials, taxes would only be due for $400.[9]
    • Detailed records will help you to accurately "itemize" these deductions when filing your taxes. In the event your business is audited, having receipts and other documentation immediately available will speed the process.[10]

Growing Your Business

  1. Network and build up business connections. When you're first starting out, most of your work will come from established social contacts. Talk to former coworkers in the field and ask them to refer potential clients. Tell your friends, family, and neighbors about your new business.
    • Construction trade shows are a great way to make business contacts and to learn about new developments that may help your company thrive.
  2. Advertise your services effectively. Print flyers and distribute them around your city. Ask local businesses, such as hardware stores and coffee shops, to display them. Take out an ad in your local newspaper.
    • Consider offering discounted rates in the beginning to grow your customer base.
    • Make sure all advertising materials clearly state your company's name, contact information, and service type.
    • You may want to hire an artist or graphic designer to create an appealing logo for your company.
  3. Design an effective website. First, register a domain that is easy for clients to remember and similar to your business' name. From there, you can either design your website from scratch or by using templates. You may also choose to hire an expert to create your website for you.
    • Avoid using auto-play audio and pop-ups on your website. These design elements often annoy potential clients.[11]
    • Be sure to include your business' name and contact information on every page of your website.
    • Include a defined list of the services your company offers.
  4. Use social media. Social media can be used as an extremely effective, low-cost (or no-cost) method of advertising your business. Register an official account for your business on top websites like Facebook, Twitter, and YouTube.
    • Use Twitter and Facebook to post information about rates and specials. Be sure to include your phone number and main web address in your profile. When a customer asks a question that is relevant for other potential clients (such as whether or not you take on certain jobs), be sure to answer publically for others to see.
    • Consider making your own "how to" videos for simple handyman tasks. Well made tutorials will give potential customers more confidence in your skills.
    • You can also try browsing popular forums and networking sites that focus on your local area. If another user asks for recommendations for a handyman, suggest your business. However, be honest and clear that you are the business owner and not a previous client.
  5. Solicit reviews of your business. After every job, politely ask your clients to leave a review of your services on their favorite relevant website. Don't specifically ask for a positive review or pressure them to use a specific site.
    • Register a professional account on popular review websites and engage with your customers. Thank clients for positive reviews. Answer questions and concerns honestly.
    • Always be polite and remain calm when reacting to negative reviews, no matter how nasty they may be. Address the customer's complaints in a professional, level-headed way. Remember that potential future customers will be reading your words.
    • Be careful when offering incentives for reviews. While some offer small discounts as a "thank you" for clients who take the time to review, others see the practice as damaging to the review's credibility.[12]
  6. Expand your business. In the beginning, your business will be small. However, as your business grows you may find your schedule filling quickly. While being busy is a sign of a healthy business, you will still want to offer customers prompt service. Consider using techniques to expand your business to increase profits and keep your workload manageable.
    • Hire additional handymen. A few more skilled workers will greatly increase the number of jobs your business can complete in a week.
    • Rent out a bigger space. If you started out working from home and storing materials in a tool shed, it may be time to branch out. Consider renting out office or commercial space for your business. Storage units will also allow you to store more materials at a time, increasing your ability to buy in bulk.
    • Take on administrative staff. By hiring an employee for dedicated office work, such as taking calls and filling out paperwork, you will free up time from your busy schedule. Use that time to complete more jobs yourself or work on other aspects of growing your business.
    • Serve more locations. Invite handymen in a nearby town to work for you. Consider adding a second office in that area. Be sure to offer the same quality service as you do in your primary location.

Tips

  • Be sure to both have the available capital to start your business and be able to bear the economic burden in case your business isn't successful.
  • Before starting your business, talk to other handymen in the area. Ask what their workload is like. If multiple companies have issues getting enough work to fill the week, the local market may be oversaturated. Consider starting a different type of business.
  • If you are in the United States, remember that many business expenses can be deducted when you file your taxes, including costs associated with advertising, licensing, employee salary, storage, and purchasing equipment.[9]

Related Articles

Sources and Citations

  1. ↑ 1.0 1.1 http://www.thepennyhoarder.com/handyman-business/
  2. ↑ https://www.sba.gov/content/how-name-business
  3. ↑ https://www.sba.gov/content/register-your-fictitious-or-doing-business-dba-name
  4. ↑ http://askthehandyman.net/do-i-need-a-license-to-be-a-handyman
  5. ↑ http://www.contractors-license.org/
  6. ↑ http://www.entrepreneur.com/article/79594
  7. ↑ https://www.healthcare.gov/small-businesses/health-care-law-and-business/how-aca-affects-businesses/
  8. ↑ http://www.popularmechanics.com/home/tools/how-to/g2109/30-tools-every-man-should-own-the-perfect-toolbox/
  9. ↑ 9.0 9.1 https://www.irs.gov/pub/irs-pdf/p535.pdf
  10. ↑ http://www.gobankingrates.com/personal-finance/deadline-countdown-receipts-save/
  11. ↑ http://www.inc.com/guides/make-a-website-for-business.html
  12. ↑ http://mashable.com/2013/08/07/customer-reviews/#yiA6R57qOgqS
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