How to Start a Handyman Business
Have you always been handy around the house? Thinking about putting your handyman skills to work and starting your own handyman business? Why not? A handyman business is a great small business opportunity for anyone that knows their way around repairs.
More people every day are too busy to take on projects around their house, don’t have the know-how or would rather just spend their time doing something else. This makes no shortage of opportunities for a good handyman to find work.
Starting a handyman business is a great opportunity to run your own business, do work you love and be your own boss.
But no matter how handy you are and how well you can swing a hammer, you will need a little business know how to start a handyman business.
Here we will talk about the basic business essentials you’ll need to start a handyman business.
Licenses: An important first step to start a handyman business.
Licenses and restrictions on handyman operations vary from state to state. Most states don’t require handyman businesses to have licenses, but they do place restrictions on their operations.
In Florida, for example, a handyman business doesn’t need a license, but if you are going to perform certain types of work such as construction, plumbing or electrical work, you will need a contractor’s license.
Other states also don’t require a handyman business to have a license, but they put other types of restrictions on the jobs a handyman business can do.
For example, in Nevada, a handyman doesn’t require a license, but if you take on a job that requires a building permit or amounts to more than $1,000, you must have a contractor’s license and proper contractor insurance.
Because of the differing state regulations as well as differing county regulations, it is best to check the license requirements in your state and county.
Knowing the licensing requirements for your handyman business will help you when you move on to planning your operations. Which brings us to exactly that!
Operations: Decide what you want your handyman business to do.
Now that you are familiar with the licensing requirements in your state and local areas, you can really start to think about your operations. Every job is different, and you will probably want to consider each job on its own merit, but it is a good idea to have some idea of your handyman business parameters.
What type of work will your handyman business do? Will you specialize in something?
You may want to consider things like:
- Is there any work you will not do (maybe due to licensing restrictions)?
- Will you do residential handyman work or commercial?
- Establish a travel radius. How far are you willing to travel for jobs? Remember to include your travel time and expenses.
To incorporate or not incorporate: How to start a handyman business.
To start a handyman business, you need to choose a business structure. The simplest structure is a Sole Proprietorship which makes no distinction between you as a person and your business. If you have a partner you may want to consider organizing your handyman business as a Partnership or a Limited Liability Partnership.
For more information on structuring your business, you can consult the U.S. Small Business Administration (SBA). They offer a great explanation of how to structure your business.
Banking and Finances: Looking after your handyman business dollars.
All small business owners should be master record keepers. Organized and detailed records will be your friend when tax time comes around, or if you have an insurance claim or litigation.
Start with your financials. You may want to have a separate business account. Most local banks offer a business checking account. This will allow you to track your business income and expenses with no worry about mixing them up with your personal finances.
Talk to your personal banker about opening a business account. They can also give you some advice on a business credit card, or even a small business loan if you need a little start up money for advertising or equipment.
Equipment: Your handyman business can do any job if you have the right tool.
The next step to start a handyman business is take an inventory of your tools and equipment.
Do you have the tools you need for your jobs? Think back to when we talked about your operations. Are you equipped? Don’t be afraid to invest in tools that can cut down on your time and labor.
Pressure washers, paint sprayers, saws and of course quality hand tools may be items you would like to consider. Invest in the best tools you can afford.
Insurance: Don’t start a handyman business without it!
Now you have your tools, you need to protect them! You also need to protect yourself. In fact, home and businessowners that hire you may want to see that you have some insurance. Here is some basic information about what insurance you may need:
- Commercial General Liability insurance – This insurance protects you if you are responsible for causing injury to someone or damage to their property. It is a must. One lawsuit could put you out of business. Don’t risk it.
- Equipment Floater – This insurance protects your tools and equipment. As a handyman, your tools and equipment are second only to you, so make sure they are insured properly.
- Commercial Auto – Are you going to have a vehicle registered to your business? If so you need a commercial auto policy. This works just like a personal auto policy with liability and physical damage coverage.
These insurance coverages are just a baseline. Talk to your trusted insurance professional about the right insurance coverage for your handyman business.
Business Plan: A map to start your handyman business.
A business plan is one of the best tools for starting a handyman business. It will give you vision and goals, and it will keep you on track and focused. Also, if you are applying for any type of loan for your business, it may be required.
A business plan can be as simple or as fancy as you like. The important thing is that it helps to solidify your ideas and gives you an action plan.
Here are a few things you may want to include:
- Narrative – This is the story of your business. You can think of it as an elevator speech. It’s a few sentences about who you are and what you do.
- Goals – Spend some time on this one. If you don’t know where you are going how will you know if you get there? Include both long and short-term goals and don’t forget to dream big!
- Marketing – A marketing strategy answers the question, “How will your customers find you?” A marketing strategy should include a budget and a plan. What will you do on a weekly, monthly, semiannual and annual basis to market your business?
- Expenses and Income – Your business plan should include projected expenses and income. This is necessary if you plan on applying for a loan.
Launch it! The last step to start a handyman business
Have fun! The most important requirement to start a handyman business is enjoy it! Being a businessowner is exciting and rewarding. Don’t forget to work hard and enjoy the rewards!