While it might not seem so profitable at first, starting a handyman business is actually a brilliant idea at the moment. As the number of homeowners continues to increase in this economy, so does the need for odd jobs, maintenance, and repairs. The demand for handymen is higher than ever and it’s only expected to rise in the future, meaning that starting a business in this field could turn out to be quite lucrative. However, establishing a legal entity can still be a complex and difficult process, so here are some essential steps you need to take in order to start your handyman business successfully:
1. Write a business plan
Just like any other company, your handyman business needs to have a good business plan as well. This is the first step in the entrepreneurial process, and it’s essential for testing the viability of your business, getting adequate funding, defining your main goals, and reaching success. For that reason, you might want to begin by writing a comprehensive plan, one that includes a description of your business, an executive summary, an overview of your industry and competition, a description of services, a management and operations plan, financial projections, and a marketing strategy.
2. Finance your business
If you’ve written a good business plan, you might already have a pretty solid idea of the costs that will be needed for starting your business. Along with the expenses pertaining to the legal side of the business, it might also be wise to consider smaller aspects such as your website, necessary software, business cards, logo design, and uniform, as they can quickly add up. Once you have an approximate figure in mind, you will likely have to seek funding for your handyman business, Whether that means finding an investor, getting a small business loan, or even crowdfunding, the most important thing is to find the most suitable financing solution for you.
3. Get necessary licenses
When starting any company, you will need to acquire a business license, decide on the type of organization you will be running, and get a formal business identification number. There may be some additional licenses that you have to obtain in order to run your business legally, but these will depend on your country, region, or even city. After that., it’s recommended to get a formal handyman or contractor license, even if it’s not necessary for your area. Regardless of your current skills, further education can always be beneficial – it will deepen your capabilities while helping to build trust among future clients.
4. Work with professionals
In order to enhance your skills even further, it might be wise to work with the best industry professionals. For instance, you might want to hire a top level electrician to fix any electrical issues you may have, and watch them while they work. Their professionalism and expertise could give you more insights into their trade. Similarly, you could also seek further gardening training or find a plumbing internship, for example. These tactics will allow you to improve your skills, gain experience, and become an excellent handyman yourself, even before you start your business.
5. Invest in equipment
Every company needs certain tools and machines in order to function optimally, and a handyman business is no different. For the most part, you can comfortably begin working with only fundamental equipment such as a basic tool kit, handsaw, circular saw, reciprocating saw, angle grinder, oscillating tool, cordless drill, wet/dry vacuum cleaner, etc. As your business grows, you will be able to adjust your equipment needs and invest in them accordingly. But as the equipment is determined by the jobs you perform, you might not even need anything more than the basics.
6. Consider your pricing
Once the basic aspects of the business have been set up, it’s also vital to select a suitable pricing model. Most handymen tend to charge by the hour, but you could also decide to charge by the job if that seems like a better solution for your business. Regardless of your decision, the hourly or job rate will also have to be set. This will mostly depend on your location. Do a competitor analysis, see how much similar businesses charge for their services, and set a fair price, preferably somewhere in the middle or on the lower end of the average handyman rates in your area. You can always raise the rate in the future, if necessary.
7. Attract new customers
The final step in your business venture will be to get your first customers, and then continue attracting new consumers until you achieve your goals. In the beginning, simply asking your friends and family members to spread the word and give recommendations could help. But in the long run, you will need to develop a more comprehensive marketing strategy that ensures success. Consider combining traditional tactics such as ads in local magazines and papers with digital marketing tactics like search engine optimization, pay-per-click ads, and social media advertising. This will help to support continuous growth.
The current environment represents the perfect opportunity for a new handyman business. However, you still need to plan in advance and follow the advice above to ensure long-term success.