Starting a handyman business part-time or full-time is a great way to tap into your skills as a person who knows how to fix things around the house. Many homeowners are reluctant to do certain handyman tasks themselves, which is a boon for a budding handyman business.
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Skills Required for a Handyman Business
Anything handyman related like, carpentry, painting, and home repair. Also a knowledge of basic electrical and plumbing installation (this is typically NOT licensed work, just the very basics like installing a digital thermostat or replacing toilet valves) is important.
Handyman Business Startup Expenses
- Basic tools- You may already have these from doing your own home repairs.
- Work area- Set up one at your home where you can keep files and store odds and ends of supplies and tools. Equip your office with a desk and file cabinet to store forms, advertising brochures about various products you can install and service. You will also need a book shelf for manuals.
- A truck or trailer- Used to transports equipment and materials.
- Liability insurance- Business owners providing services need to have professional liability insurance to protect them from covering breach of contract suits or negligence in the performance of services. “There is no set method for estimating the cost of professional insurance since premiums vary by field, size of the business, income, deductible, and coverage amounts. The only way to make sure you’re getting the best possible deal is to shop around and compare policy coverages, eligibility limitations, and pricing” according to Gaebler Resources for Entrepreneurs.
- Insurance- Update your home insurance to cover the assets of your business.
- Advertising- You can advertise your handyman business through local newspapers and business cards. Check with your local paper on advertising rates because they vary considerably depending on circulation (between $20.00 and $400.00 per inch).
- Legal- As a part-time handyman business, you may elect to be a sole proprietor rather than incorporate. As a sole proprietorship, your business will not need to file corporate paper work with your state. However, you need to check your state and city ordinances to see if you must be licensed to operate a business in your area. For example, the State of Texas offers the following information on legal requirements for starting a business in their state. Processing fees vary by state but usually range from $25.00 to $150.00.
- Banking- Set up a separate bank account for your business.
- Extra Help- Establish a professional relationship with a lawyer and accountant–it is really hard to do everything correctly by yourself.
Expected Monthly Revenue for Handyman Working Part Time
You can expect to earn $2000-$3,000 depending on how many hours you work.
Monthly expenses: Transportation, office supplies, phone, insurance and taxes will be about $300 per month depending mostly on how much driving you have to do. Most supplies and simple tools can be billed as part of a job.
An optional, but likely expense, is adding tools to your inventory and they can cost $200 to $1,000 each, so you want to save a bit each month for those purchases. Don’t forget to pay yourself.
Estimated monthly income: Part-time: 1,500 to $2,500, Full-time: $5,000-12,000 depending on how many hours you work.
Time to break even: 1-3 months
Handyman Business Description
Most handyman business jobs are small and fairly simple, if you have done them before and known how to use tools. However, there are many people who have no idea how to install a light switch or fix a leak. They may not know how or have time to paint a room, change wallpaper, or install a shower rod.
So, a handyman is someone who can do all those little “honey-do’s”. The most important characteristics of a handyman is someone with home-repair skills who is reliable and committed to doing quality work.
You may be asked to solve a problem with a sticking door, weatherproof windows, install a pet door, put on a new lock, and maybe even add a porch or deck. As you know from your own home maintenance, there are literally hundreds of tasks you have to do. As you grow, be prepared to take on bigger projects. You may need to invest in tools such as estimating software for commercial plumbers to ensure maximum profitability.
If you’re skilled at home repair work, starting a handyman business might be just the ticket to launching your own small business.
Download our Business Planning Workbook to lay out a plan that will help you get started:
