If you’re planning to start a handyman business and want to know how best to go about it, this post is meant for you.
Like most entrepreneurs, you might be asking yourself some of these questions:
“Where do I start?”
“How much experience do I need?”
“How much money can I make from handyman business?”
“What kind of insurance and licensing do I need?”
All these questions will be answered in this post. But, no matter what questions you might have or how much experience you have, you should keep the following tips in mind.
Choose Your Niche
Before anything else, be sure to evaluate your skills and decide on the services you’re going to offer.
Some people think that they can make more profit if they’re able to do everything. But this is far from the truth. In fact, you can make more money by specializing in a limited set of services.
Even if you’re not licensed to offer some services such as plumbing, electrical, and more in your state, you can still have more than you can handle.
Think about all other types of businesses out there such as lawn care businesses, home security installers, locksmiths, masons, and many more. They all focus on a specific service and are still highly profitable.
While you might have a wide range of services to offer as a handyman, you can start by offering what you are good at and build yourself from there.
Consider the Local License and Permit Regulations
Depending on which state you live in, you might be required to obtain a contractor’s license to operate a handyman business.
Now that you’ve made a list of services you’re going to offer, you should read the contracting laws in your state. This will help you to understand which services you can provide with or without a license, as well as the license that you need to provide the services that you want to offer.
Some repair jobs like plumbing, electrical, advanced construction, home or commercial systems, heating, and more, require you to have an additional specialty trade license. So be sure to find out which jobs you can do without proper documentation in your area.
You’ll also need local building permits for most repair jobs, so check with local building authorities to understand which repair jobs need permits.
Obtain Proper Insurance Coverage
As a handyman, you’ll be working in people’s homes most of the time. This means you’ll have some degree of liability on your hands.
While the risk might not be so high, you’ll want to ensure that your business is not brought down by the cost of a critical error.
Investing in a proper business insurance plan, for instance, handyman insurance at Next-Insurance.com will protect and separate you from your business.
Liability insurance will cover you and your customers if something unpredictable happens on the job. It also helps build credibility among customers.
Define Your Target Customers
Not everyone can make a good customer for you. Unfortunately, most handymen don’t understand this when starting their businesses. Some even lower their prices so they can take more jobs including ones they are not good at. Due to this, they end up getting negative reviews and undercharging for their services.
Instead, you should design your business towards helping a certain group of customers. Your services aren’t the best fit for everyone in your city.
Targeting your ideal customers for your business is essential, and will have a huge impact in terms of your fulfillment and your profits as a handyman.
This applies to any business, especially so for a handyman, an electrician, a plumber, or a contractor as they deal with customers face to face.
Set Your Pricing
The amount you earn as a handyman depends on how much you’ll be charging per hour. Deciding on your pricing is one of the most challenging parts of starting a handyman business. While you should consider things such as your level of experience, ability to sell, work efficiency and professionalism, you should also know what to charge to make a profit.
Develop a Marketing and Advertising Plan
Now that you’ve identified the services you’re going to offer, your target market, as well as your price, have you thought how you’re going to reach those clients and convince them to take your services?
The only way your business will gain customers is through marketing and advertising. That’s why you need to develop a proper marketing strategy.
Take time to figure out what marketing methods will be most effective and have the highest return on investment (ROI).