In every town and city across the country, people need help with small home repairs and improvements, but many people don't have the time, skills, or tools to tackle these projects themselves. This is where a handyman business comes in.
With a handyman business, you can provide essential services that cater to a wide range of customers, from homeowners and renters to businesses. In fact, owning your own handyman business can be a great opportunity to enjoy the freedom of being your own boss while providing valuable services to your community.
That being said, you probably have questions about what it takes to get started. So, let's take a closer look at four common questions about how to start your own handyman business.
What Are the First Steps for Starting a Handyman Business?
Starting a business from the ground up can be a daunting task. There are so many things to know and do before you ever start providing services. To make it easier, here are the first steps to take to start a handyman business.
Research and Planning
The first step to starting any business is to conduct research and create a solid plan. For example, you should research the handyman industry, your competition, and potential customers. This planning stage is critical and lays the foundation for your entire handyman business.
Here’s what you should do in the research and planning stage of your business:
- Market Research:Understand the demand for handyman services in your local area. Research your potential competitors, the types of services they offer, and their pricing.
- Identify Your Niche:Determine which specific services you are skilled in and would like to offer. This could be services such as carpentry, plumbing, electrical work, painting, or a combination of these.
- Target Audience:Define your target customer base. Are you targeting homeowners, property managers, businesses, or a specific demographic?
- Business Plan:Create a detailed handyman business plan that outlines your services, target market, pricing strategy, marketing approach, financial projections, and operational structure. Your business plan will serve as a roadmap for your business's growth and success.
Thoroughly researching and planning your business helps you understand the market dynamics, your competitive advantage, and how you will position your business to attract customers.
Secure Funding for Your Handyman Business
Once you have done some research and created a business plan, your next step is to figure out how to fund your handyman business. In general, successful businesses are those with a foundation of good financial planning.
To determine your start-up costs, make a list of everything your business needs and how much it will cost. Then, research your funding options to secure the needed amount. If you don’t already have the startup capital you need, consider applying for small business funding through other avenues. These may include:
- Small Business Administration (SBA) loans:The Small Business Administration works with lenders to provide loans to small businesses for startup costs, equipment upgrades and other business expenditures.
- Alternative Lenders:These lenders offer creative solutions to financing challenges. They may look beyond credit scores to consider the overall potential of a business. Many have a simple, online application process, and they may be able to provide funds more quickly than traditional lenders. Business News Daily provides a list of alternative lenders they consider to be reputable.
- 401 K/IRA Business Financing:If you have built up a significant nest egg in a retirement account, you may be able to access your funds—without incurring early withdrawal fees or tax penalties—to start a new business or purchase a franchise.
- Personal Loans:Tell your friends and family members that you’re starting a handyman business and ask if they could provide a small startup loan. They may be willing to support you in exchange for a stake in your business.
Choose Your Handyman Services
With a plan and funding figured out, your next step is to decide which services your handyman business will offer. This is one of the most important parts of your handyman business startup checklist. Many handyman businesses offer services like general home repairs, carpentry work, drywall repairs, painting, and basic plumbing or electrical work. These small projects are the bread-and-butter services of the handyman industry and account for 50% of handyman services.
However, it can be difficult to differentiate yourself from other handyman businesses if you only offer the same services they do. In addition to basic handyman services, you may want to consider offering several new and in-demand services based on your target customer demographics. Some handyman business ideas for growth include:
- CCTV Camera Installation Services
- Furniture Assembly and Repair
- Light Fixture Installation
- Senior Home Enhancements
- Eco-Friendly Upgrades
- Rental Property Maintenance
- Smart Home Services
Knowing what type of services are in demand in your area and adding them to your business can help you stand out from your competition and attract more customers. Just be sure to research the necessary tools and equipment needed to complete them successfully!
Register Your Handyman Business
Once these important business decisions have been made, it’s time to look into business registration and licensing. Depending on the type of business structure you choose, the registration process can vary. In some states, a handyman business license is required to operate legally in your area. Part of getting licensed may include the following steps:
- Choose a name: Pick a handyman business name that describes who you are and what you offer. Make sure it’s memorable and unique in your geographic area.
- Choose a business structure: You can register your handyman business as a sole proprietor, partnership, or limited liability company (LLC).
- Register the business: Go to your local registry to register your handyman business.
- Get a business license: A business license allows you to legally work in your area. Contact your local Chamber of Commerce to see what type of license you need and apply for it. Check with state, county or local contractor licensing boards to find out if a government issued license is required.
Do I Need Handyman Experience?
Most people assume that you need to have handyman or construction experience to start a handyman business. And it's true that having experience in relevant trades and skills can be beneficial. As a rule, your skill level and willingness to learn play a significant role in the success of any independent business.
Handyman experience isn’t always a requirement, especially for those who want to run a handyman business - and not necessarily work in it. With some training and experience, you can gain the skills and knowledge you would need to get started. This is why if you don’t have any prior experience, franchising might offer a better path to handyman business ownership versus starting from scratch.
Many franchise opportunities provide training and support for new business owners, including comprehensive training programs that cover marketing, business operations, and customer service. This can give you the confidence and knowledge you need to succeed, even if you don’t have prior experience in the industry.
Are Handyman Businesses Successful?
When thinking about starting a business, it's natural to wonder if starting a handyman business is a successful venture. As with any business, there will be a variety of factors that will contribute to the success of your business. If you're looking for an industry with solid growth and recession-resistant demand, home services are an ideal choice.
Consider this: approximately 80% of American households need the services of a handyman at least once a year. As residential home prices continue to increase, that demand has only strengthened. More homeowners than ever are choosing to stay in their homes and renovate and repair rather than buy a new one. This has led market experts to predict continued growth of the industry, which is expected to reach 1.8 billion by 2033, from 390 million in 2023.
This statistic is a powerful indicator of the large and consistent demand for handyman services, as well as the overall potential for success in the handyman industry. While the ultimate success of your business depends on your operating costs, wages, equipment, marketing costs, and so on, starting a business in such a strong and growing industry makes starting a handyman business an attractive option for entrepreneurs.
Should I Consider Purchasing a Handyman Franchise?
For a variety of reasons, purchasing a handyman franchise may be a smart option for you. Franchising offers many benefits that other start-ups simply can't match. For example, a handyman franchise model will allow you to run a business without prior industry experience. Another huge advantage that comes with owning a franchise business is being able to eliminate some standard operating costs. Most handyman businesses use a home-based business model that you can run from practically anywhere barring zoning or HOA restrictions. You will also save money on marketing costs, since a franchise business typically comes with instant brand recognition that can help you get a jump on the local competition.
Finally, franchising can help you access business funding more easily and boost your handyman business’ capital needs. Many lenders are more likely to finance an established franchise business, especially one with a respected reputation. With proper business funding secured, you can focus on leveraging the strengths of your business in your market area and tap into the power of an established business model to maximize your business potential.
Franchise with Mr. Handyman®
As you can see, there is a lot to think about—and even more to do—if you want to start your own handyman business. You can bypass a lot of the guesswork and put your new business on the fast track by investing in a Mr. Handyman franchise.
Mr. Handyman offers savvy entrepreneurs the chance to build a thriving business with an internationally known and well-respected industry leader. The list of advantages available to you as a Mr. Handyman franchisee is long, but includes:
- Designated territories, brand recognition and the use of registered trademarks
- Established marketing tools, materials and strategies
- Startup consultation to help with business setup
- Ongoing training and coaching for franchisees
- Nationwide networking opportunities
- Special vendor discounts
- And more!
Are you ready to get started? Visit us online to download our free Franchise Guide to learn more about franchising with Mr. Handyman today!
