How to Start a Handyman Business
DIY and basic decorating is not everyone’s favorite task. Numerous people are always looking for someone to complete basic tasks around the home for them. Calling on specialists can sometimes be expensive, normally because these experts prefer to take on larger projects.
Therefore, people tend to turn to handymen. They have smaller charges, but they can also be useful in a community. In this article, we explore how to start a handyman business and why you should consider it.
Why Start a Handyman Business
There are numerous reasons why you might want to think about starting a handyman business. It is a great option for those:
- Looking to be their boss, being able to make decisions about their workday, what work they do, who they work with, how much they earn, and more.
- Wanting to have a career where no two days are the same because the work can vary.
- Need to start a business with low overheads as generally speaking all the equipment required is going to be already in their possession.
- Who wants to work in the local community, with limited commuting?
- Looking to make a big difference in their local community by working on small projects.
- Who has a wide variety of skills and wants to utilize them.
- Want to look at a business they can expand. Handymen businesses can be expanded with ease.
Handyman Business Statistics
Here are some of the key statistics that might interest you about starting a handyman business:
- Despite being a major part of the workforce, only about 7.6% of handymen are women.
- There will be an increase of about 8% in handyman service providers between 2020 and 2030.
- Private investment is the biggest factor supporting the increase in handyman services.
- Homeowners and property managers are those who seek to employ the most handymen.
- Home and building owners are increasingly using handymen.
- The home services market in the US is worth $105.55 billion a year.
- The revenue for most handymen grew by 6.2% in 2018.
- The average age of a handyman is 46.
- Women earn about the same as men in the industry.
- The top 10% of handyman earners are earning approximately $106,000 annually.
- The average handyman earns about $40,850.
How to Start a Handyman Business
Here are the steps that are required when you want to know how to start a handyman business. Follow these steps to get your new business off to the best start.
Step 1 - Research
The first thing that you will need to do is to look at the available opportunities in your area. Depending on where you live, there can be an abundance or shortage of opportunities. Rates will also be very different across the US. Therefore, you need to know what is available for your business in the area.
You should also look at what marketing is done in your local area. There are going to be some businesses that market using social media like Facebook, Instagram, TikTok, YouTube, and other platforms. There are going to be some who market their businesses via leaflet dropping.
In addition, you will want to know who is operating in the area, what jobs they accept, and more. You might find there are already two or three people who operate in the same area doing the same jobs that you want to focus upon.
Research should go into your business plan, into the next step.
Step 2 - Create a Business Plan
Now you need to create a business plan for your business. There are business plan templates that are going to be an important way to create your business plan. The business plan is essentially a document that allows anyone to read it and then replicate your exact plan for starting and running your business. It includes elements such as what you want to do, how you will do it, how you will market, and how you will take payments from your clients.
You should also include elements such as where you will operate, branding, and target audience details.
It is important that while your business plan is supposed to be a document that guides people to do exactly as you plan, it is not set in place. It should only be a rough guide. There are going to be changes as you operate your business and find that a niche is not as expected or that a new competitor has moved into the area.
A good way to improve the chances of not making any changes to your business plan is to have a well-researched business plan. Researching early can be a great way to also see new opportunities.
In addition for your own reference. There can be numerous individuals who might want to see your business plan. Such as the business bank, grant issuers, investors, and more.
Step 3 - Create a Brand
Now you need to create a brand for your handyman business. The business plan should have some sort of elements for your business branding. For instance, it might have the core values and perhaps even a name for your business. However, you can also use the company name generator to help you create a brand name for your business. A company name generator is a free tool that can help you generate lots of different names for you to choose from.
The company names that are developed by the generator should be checked. You need to do a business name search in the state that you want to operate in. If the business name already exists, then it will be protected and you will cause some legal issues. In addition, check on Google, business trade listings, and social media.
You might also need to think about how you’re going to market your new business. Who is the target audience, what channels do they shop in, and what is the value proposition of the business? How are you going to run your business’ marketing, what channels, how often, and what budget will you have?
You might also want to register your business as an LLC. There are numerous tax advantages to registering your business as an LLC. For example, you can protect your personal property from the debt of the business.
Step 4 - Plan your Costs
Now you need to think about the costs of starting your business and the regular business costs. It can be challenging to know what these costs are going to be upfront, but there are ways that you can research them and plan them. You might have a small budget for your startup business. Doing this can be very overwhelming.
If you want to start your business with a relatively small budget, no money, or just with third-party investments, then you might be able to save on costs with some of these areas.
Use your current car/vehicle or buy a second-hand vehicle.
- Use equipment that you already have.
- Market on social media using free profiles and local trade groups.
- Use email marketing services like Mailchimp.
- Build a website yourself using WordPress, Squarespace, or Wix.
- Ensure you get quotes for any work you need to have done from multiple individuals.
It is also important that you plan for the regular costs of the business. For example, you might need to think of trade memberships and permits. LLC costs, trade licenses, loan repayments, insurance, and equipment costs.
Step 5 - Marketing
There are several ways that you’re able to market your new business. The first, and the most obvious, is to have a website. Websites allow you to attract audiences for free using search engine optimization (SEO). This is a process where you allow your website to rank high on Google for searches. As a local business, you need to focus more on local SEO, which can be tough.
There are numerous website platforms that you can use to help you build a website. Squarespace, Wix, and WordPress are the best options.
Another option is to drop in your area. This can be rather expensive and doesn’t always yield great results. Less than 1% of the homes that you send letters through the door will need your services, probably, and fewer are going to be accepting your rates.
A final immediate option is social media. Online marketing through Facebook, Instagram, TikTok, and YouTube are great ways to get noticed for what you’re doing. The more visual your content, the better - videos are the best options.
Remember that when you have returning customers you can improve your profitability. So have ways to keep in contact with customers. Just a 5% increase in retention can lead to a 95% increase in profit.
Final Word: How to Start a Handyman Business
Learning how to start a handyman business is not particularly hard. However, it is one of the roles that requires a lot of dedication and time. Handymen have relatively few barriers to entry, so you need to prove your worth with good work and lots of customer-focused work. Good luck with your new venture.
Marketing is one of the biggest problems for handymen. There are so many who can do this job, that demonstrating the ability to do the job well can be a hard challenge.