The Complete Guide to Start A Handyman Business in 2022
Running your own business is always an exciting idea. Indeed, it comes with its own set of risks and challenges. But if you proceed carefully and strategically, nothing beats the satisfaction of being your own boss and earning profit. But to do this, you need a profitable business idea first. Next, you need funds. But not all of us have the privilege to have both simultaneously. In that case, you need to have a business idea that does not require a fortune to kickstart. And if you fall in the second category, you might contemplate starting a handyman business.
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That’s right. No matter how trivial it might sound, a handyman business is indeed a profitable business idea. There will always be something that needs repairing at our homes or offices, and that means you will never run short on customers. So, if you are good at mending things around the house, it might be a good idea for you to launch a handyman business. No doubt it is profitable. But more importantly, it does not cost a fortune to start.
Having said that, launching a business with a limited budget is always a tricky task. You need to have a sound strategy and a plan to execute your strategy flawlessly. But how do you do that? In case you are wondering the same, you have reached the right place. In this blog, we will lay out the perfect plan to start a handyman business. Just follow these simple steps and watch your business soar.
Table of Contents
1. Plan Your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. More specifically, a business plan will serve as the roadmap for your journey ahead, guiding you in which direction you should go and which path to avoid. To chalk out a strategic plan, however, you must consider a few things.
i) Market Research:
One of the most common mistakes that handymen make is that they don’t determine if there’s a market for their services. So, before you launch your business, make sure to conduct thorough market research. Find out whether your area has a demand for handyman services. Think about it: if you live in a city where there’s a handyman on every block, chances are you’re going to be facing stiff competition for clients. If, on the other hand, there’s not a handyman for dozens of miles, you could quickly establish yourself as the go-to expert for handyman services.
ii) Competitor Survey
Imitation is the sincerest form of flattery – and if there’s a handyman business you particularly admire, try to figure out what it is about that business that works so well. Think of it as competitor research! Take a look at their websites to see what services they list and the prices they charge. Go online to check out what their marketing looks like. Find out why customers recommend their services. In short, try to figure out what works for them and try to emulate it in your business model.
The next step is perhaps the most crucial one. You need to chalk out a budget plan for your business. This generally varies from area to area, depending on the varied cost of licensing and registration, equipment, and insurance. This will not only help you draw a budget for your business but also guide you to determine the prices and fees for services.
2. Choose A Name
Choosing the right name is important and challenging. This is what makes you stand apart from the crowd. Of course, you can name your business after yourself or a loved one, but it is always advisable to choose a name that is unique and out of the box. This helps to create a strong brand identity. Besides, naming your business has also legal and practical implications. It is mandatory for registering your business. And you will also need this while creating your own website in the future.
No matter what you name your company, make sure the name is not already taken by someone else. If it is already in use, it will confuse potential customers and you mind end up losing business to your competitor. But more importantly, you cannot register your business legally if the name you choose is already registered with someone else. So, before you name your business, research and find out if it is available. Federal and state trademark records, state business records, and even social media platforms are effective ways to find out this information.
3. Form A Legal Entity
Once you zero in on a name for your business, think about the organization structure. This is necessary to register your business as a legal entity. The most common business structure types are sole proprietorship, partnership, limited liability company (LLC), and corporation. Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your handyman business is sued.
4. Get Licensed
A handyman license is a special type of documentation that shows you’ve been cleared by your state to perform specific types of work. While each state has its own special requirements, in general, you’ll need this license to be cleared to do larger projects for your clients. Keep in mind that if you do any type of handyman job that’s above $1000, you may need to apply for a contractor’s license.
5. Register for Taxes
Once you register your company, you will need to register for a variety of state and federal taxes before you can open for business. This varies from state to state. However, you will need to apply for an EIN in order to register for taxes, regardless of wherever you are located. But the good news is, this is free. Further, you will have different options for how your business will be taxed depending on which business structure you choose.
6. Open a Business Bank Account and Apply for A Separate Credit Card
Using dedicated business banking and credit accounts is essential for personal asset protection. When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil. Besides, a separate business account and credit card in your business’s name will help you secure better finances, loans, higher lines of credit, better interest rates, and more.
7. Get Business Insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business insurance protects your company’s financial well-being in the event of a covered loss. There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start your business
8. Develop A Marketing Plan
As soon as you establish your business as a legal entity, focus on getting the words out. To kickstart your business, you need those customers above anything else. For this purpose, you need to let the world know that you are open to business. And a sound marketing plan is the tool you need to achieve this goal. Here are the steps you need to follow:
i) Create a strong brand: Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
ii) Promote your business: you can begin with the traditional way. Put up advertisements in your local newspaper, install billboards, and distribute flyers and pamphlets around your locality. You can also conduct door-to-door promotions, visit trade fairs and expos to meet new people, and contact local subcontractors for business leads. For these marketing approaches, however, you need a professional-looking handyman business card.
iii) Leverage social media: the best way to promote your business in today’s time is to make a strong online presence. Take advantage of the various social media platforms to connect with your potential customers. Create business pages, post regularly, and engage with the users to create a lasting impression.
iv) Build Your Own Website: The best way of doing digital marketing, however, is to have your own business website. This will help you create a strong brand identity and make your business more accessible to your customers. Make sure to create a logo that represents your brand value while designing your website. For this, you can take inspiration from your handyman business card idea so that the designs convey the same brand voice.
v) Enlist your business online: Get your business listed in all local, online directories such as Yelp and Google My Business. Craigslist is also a good idea, but it often ends up generating leads for customers with a small budget. However, it is a good way to kickstart your business. This way, you get some customers and gather some good reviews, which will help you in securing better business opportunities going forward.
9. Buy Necessary Tools
This is one aspect where you must spend some money. After all, you cannot run a handyman business without proper tools. Having said that, you don’t need to blow your bank to buy everything at once. Start with wherever is absolutely necessary and go from there. As your business expands, grow your inventory accordingly. To begin, here is the list of tools and equipment you must own:
- Claw Hammer
- Tape Measure
- Utility Knife
- Impact Driver
- Drill Driver – Included in the suggestion for Impact Driver
- Drill Bits – This includes drills bits and screwdriver attachments
- Circular Saw
- Recipro Saw
- Flashlight – I’d suggest both a handheld and headlamp
- Charging Kit – Included in other power tools
- Wire Stripper
Besides, you must have a vehicle to carry everything around and travel between job sites. In case you already own a truck, you will save some money right there. But in case you don’t have one, you can go for a rental car service to save some money at this point.
10. Sign Up for Field Service Management Software
Now, the most important tip to ensure a successful service business: Go paperless.
In today’s digital age, you are losing serious competitive advantages if you are not using digital tools and technologies. So, to ensure you make the most of your resources, automate your business processes. And for a handyman business, there is no better option than field service software.
The benefits of using a field service management system are endless. It adds efficiency, transparency, and scalability to your operations, standardizes and streamlines your processes, optimizes your resources, and ensures maximum productivity with minimum hassle. And most importantly, it significantly reduces overhead costs to increase your revenue.
Best Field Service Software for Your Handyman Business
With the market overflowing with hundreds of options, it could be quite overwhelming to choose the best software solution for your business. But if you are looking for the best field service management software at the most affordable rate, go for Field Promax and checkout all the features.
This cutting-edge software is tailor-made to serve handyman business needs, with the provision for further customizations. It is a cloud-based software that stores and organizes all your databases, allowing you to take complete control over your business from a single platform. It also comes with an integrated mobile application that lets you access your processes and databases from anywhere, at any time. With the basic plan of Field Promax, you get complete access to all of the following features: