The First 5 Steps To Starting A Profitable Handyman Business

Starting a handyman business can be profitable and fun with the right approach.

I know this because I’ve been doing it for over ten years.

However, it’s important to understand that a truck full of tools and some home repair skills will only get you so far.

You’ll also need to learn a few business skills to build a profitable business that generates six figures per year or more.

The good news is that it isn’t hard, and you don’t need employees.

Here are the steps I’d take if I started from scratch today.

How to Start a Handyman Business in 10 Easy Steps

1. Define Your Skills & Services
2. Learn the Handyman Laws in Your State
3. Identify Your Ideal Customers
4. Set Your Pricing
5. Nail Your Marketing Strategy
6. Name Your Business
7. Register Your Business
8. Buy Essential Tools
9. Get Handyman Insurance
10. Simplify operations with the right software

BONUS Content

• • How much can you make as a pro handyman?
  • Is starting a handyman business a good idea?
  • How can I be certain this will work for me?

Step #1 – Define Your Skills & Services

The first step is to evaluate your current skills and decide on the services you will provide.

You may be thinking, “Don’t I need to be able to do everything?”

The short answer is no; you don’t. Very few professional handymen can repair or improve everything in a home, and even those who can still don’t.

You can generate large profits by offering a limited range of services. In fact, in some cases, it can be more profitable to specialize.

For example, I can’t legally provide most plumbing, electrical, or HVAC services without specialty licenses in those trades where I live. Additionally, I don’t enjoy painting, so I don’t offer that service either.

Yet, I still have more business than I can handle.

And I’m not unique. Almost every other pro handyman I’ve spoken to (well over 1,000) avoids certain projects and gravitates toward others.

So, even though it’s common for people to think of the slogan “big or small, we do it all,” that’s not required (or even ideal) for running a profitable handyman business.

Additionally, think about the other handyman-like service businesses, such as garage door companies, lawn care companies, locksmiths, home security installers, masons, etc. These businesses all focus on a specific service and can be very lucrative.

As a handyman, you will have a much broader range of services that will span several trades, but you can indeed get started by offering what you know how to do and grow from there. That’s how I started my handyman business, and I’m still learning new skills every day.

Starting this way also allows you to acquire the necessary tools slowly. Here’s a good list of tools to start a handyman business.

So, the first thing to do is list all the possible services you can offer now.

To get some ideas, I recommend reading the free report below. In it, I share ten profitable handyman services you can offer without a contractor’s license, plus some insight into how much to charge.

Step #2: Learn the Handyman Laws in Your State

One of the best ways to ruin your day is to start a business as a handyman, only to realize later you need a contractor’s license to provide the services you want to provide. Hopefully, you don’t discover this the hard way as I did.

Before you get too excited about the service list you just made, it’s time to read about your state’s contracting laws because every state is different. Find out which services you can and can’t offer without a license, or determine what license you need to provide the desired services.

In most states, you won’t need a special license to provide minor repairs for profit.

However, there are usually two limitations on handymen’s services without a contractor’s license.

The first is a dollar limit. Most states have an upper limit for the job size. In California, the limit is $500. In Nevada, it’s $1,000. Every state is a little different (more on that below).

Secondly, most states restrict unlicensed handymen from performing electrical, plumbing, or HVAC work without a specialty license in those trades. However, they typically allow handymen to change light fixtures and ceiling fans, replace toilets and faucets, and do other minor jobs that don’t alter the plumbing or wiring of the house.

These restrictions may sound very restrictive, but plenty of jobs fit within those limits—more than enough to run a profitable home repair business.

In fact, despite the $500 limit in California, I’ve met dozens of pro handymen who are making a killing even without a license.

To learn more about the laws in your state, visit my complete guide to handyman licensing laws here.

If you can’t find the information you need there, you can get a good idea of the laws in your state by going to your state’s contractors’ board website and reading there. Typically, they will have a FAQ section for handymen, outlining small repairs and maintenance laws.

Step #3 – Define Your Ideal Customer

Not every homeowner is a good customer for your business.

I didn’t understand this concept when I started my handyman business, so I worked for anybody I could. I’d lower my prices to get jobs, take on jobs I wasn’t good at, and try to serve everyone who would hire me.

As a result, I found myself rushing jobs, compromising on quality, and getting a couple of bad reviews.

Finally, I learned my lesson. Never lower your rates to get customers. Design your business around helping a specific type of customer and focus on helping them. Your services aren’t a good fit for everybody who needs a handyman.

Some customers want the lowest prices or can’t afford to pay a professional rate. Other customers don’t mind paying higher rates if you provide good service.

Some customers live forty miles away, while others are just five minutes away.

Some customers only want the best of the best, and others just want the job done so they can move on with their lives.

Profit can be made from all of these customers, but deciding on the kind of service you want to offer is essential.

I can’t stress this enough. Targeting the right customers will dramatically impact your enjoyment and profits as a professional handyman.

If you target customers you enjoy working for and are willing to pay decent rates for your services, you’ll be happier, they’ll be happier, you’ll get more referrals and repeat business, and you’ll make more money.

If you try to please everyone, you will struggle financially or emotionally – probably both.

By figuring out who would benefit most from your service and who you want to work for, you can avoid this frustration, and your success will be accelerated.

Step #4: Set Your Pricing

It’s time to figure out how much to charge.

But first, let’s answer the bigger question on your mind.

How much can you make as a pro handyman?

The average handyman in the US charges between $60 and $85 per hour.

With the right pricing strategies, you can easily make an average of $100 per hour. I’ve made up to $200 per hour and currently average about $125 per hour worked (although I don’t charge hourly, I still track my hourly income).

It may surprise you, but it’s not uncommon for pro handymen to generate a six-figure income while providing basic handyman services.

The handyman business can be surprisingly profitable IF you set it up properly.

As with any business, having a good grasp on the financial side of things is essential, especially when setting your handyman rates.

Deciding how much to charge is one of the more difficult parts of starting a handyman business because of the psychology and limiting beliefs involved. This is where I see the most mistakes with my readers. You need to consider things like your experience level, work efficiency, ability to sell, reputation, and professionalism, and you also need to understand what you must charge to actually turn a profit.

Then, you need to have the balls to charge that much!

It’s not easy when you probably have self-doubt about your skills and abilities. (Don’t worry, most people do.)

But here’s the deal. This problem ha