Are you good with your hands? Do friends and family constantly call you when something breaks around their house? If you’re nodding along, then starting a handyman business might be the perfect entrepreneurial path for you.
Whether you’re dreaming of a full-time business empire or just want to earn extra income on weekends, the handyman industry offers incredible flexibility. You can start solo from your garage or build a team that tackles multiple jobs simultaneously. The beauty lies in the options.
This guide walks you through everything you need to know. We’ll cover the essential steps to get your business off the ground, key considerations before you dive in, and practical resources to help you succeed. Let’s turn those repair skills into a profitable venture.
Learn How to Launch, Grow, and Succeed As a Professional Handyman
1.) Research the Industry
Starting any business without proper research is like fixing a complex electrical problem without checking the circuit first. You need to understand what you’re getting into.
Get an Inside Look at the Business
The best way to learn about the handyman industry is talking to people already in it. This isn’t just about reading articles online. You need real conversations with real business owners.
Here’s how to approach it strategically. Contact handyman businesses outside your immediate area and explain you’re considering starting your own business. Let them know you’re also exploring franchise opportunities or buying existing businesses. This positions you as someone genuinely seeking advice, not just fishing for trade secrets.
You can also reach out to business owners who won’t be direct competitors. Maybe they specialize in plumbing while you’re thinking about general repairs. Many entrepreneurs are surprisingly willing to share insights when they don’t see you as a threat.
Some people will still be reluctant to talk. That’s normal. But others will be open, and you might even discover opportunities for mutual benefit down the road. Perhaps they need someone to handle overflow work, or you could refer specialized jobs to each other.
For more detailed strategies on this approach, check out our guide on getting an inside look at the business you’re considering.
Expand Your Industry Knowledge
Knowledge is your competitive advantage in this business. The more you understand about the handyman industry, the better decisions you’ll make. This isn’t just about learning new repair techniques, though that’s important too.
You need to understand market trends, pricing strategies, customer expectations, and business operations. Subscribe to industry publications, follow relevant YouTube channels, and join online forums where handymen share experiences.
Make learning a habit. Set aside an hour or two each week for education. Read articles, watch tutorial videos, or study new repair methods. The handyman field constantly evolves with new materials, tools, and techniques. Staying current keeps you competitive.
Consider joining professional associations or local contractor groups. These networks provide ongoing education, business tips, and connection opportunities with other professionals.
Decide What Type of Handyman Business You’ll Start
This decision shapes everything else about your business. Will you be a generalist who tackles any home repair, or will you specialize in specific services?
Specialization has distinct advantages. You can charge premium rates because you’re the expert in your niche. Your efficiency improves because you’re doing similar work repeatedly. Marketing becomes easier when you have a clear specialty to promote.
However, some services require special certifications or licenses. Electrical work, plumbing, and HVAC typically need licensed professionals in most areas. Research your local requirements before committing to any specialty.
On the flip side, being a generalist gives you more flexibility. You can take on various projects and adapt to whatever work is available. This approach works well when you’re starting out and learning what types of jobs you enjoy most.
Choose Your Location Wisely
Location can make or break your handyman business. You need an area with enough demand to sustain your business but not so much competition that you can’t get established.
Research your target market thoroughly. Look at demographics, home ownership rates, and the age of housing stock. Older neighborhoods often need more repairs, while new subdivisions might have warranty work handled by builders.
Check out the competition. How many handymen are already serving the area? What services do they offer? What are their rates? This research helps you identify gaps in the market.
Many owners start from a home base to keep overhead low; confirm local home-occupation and zoning rules. This keeps overhead low and gives you flexibility. You can always move to a commercial location later if your business grows.
Starting from home makes sense for several reasons. Your startup costs stay minimal, you avoid lease commitments, and you can test your business model without major financial risk. As your business expands, you’ll have a better understanding of what kind of commercial space you might need.
2.) Choose a Name for Your Business
Your business name is more than just words on a sign. It’s often the first impression potential customers get of your services. You want something memorable, professional, and clearly connected to handyman services.
Start by brainstorming words that relate to your services. Think about reliability, quality, home improvement, and fixing things. Avoid overly clever names that might confuse people about what you actually do.
Online name generators can spark ideas, but don’t rely on them completely. Everyone has access to the same tools, so you’ll likely see similar suggestions elsewhere. Use these generators to get your creative juices flowing, then develop something unique.
Check availability before falling in love with any name. You’ll need to register your business name, and you’ll want a matching domain for your website. Having consistent branding across your business registration, website, and marketing materials looks professional and builds trust.
Consider how the name sounds when you say it out loud. Will it be easy for customers to remember and spell when they’re recommending you to neighbors?
3.) Identify the Legal Structure of Your Business
Choosing the right business structure affects your taxes, liability, and future growth options. Most small handyman businesses start as sole proprietorships because they’re simple and inexpensive to set up.
With a sole proprietorship, you and your business are legally the same entity. This means your personal assets and business assets aren’t separated. If someone sues your business or if you can’t pay business debts, your personal property could be at risk.
The upside is simplicity. You don’t need to file separate business tax returns or maintain complex records. However, you also can’t have partners, and you have unlimited personal liability for business debts and legal issues.
A limited liability company (LLC) or corporation provides better protection. These structures create a separate legal entity, which means your personal assets are generally protected if the business faces lawsuits or bankruptcy.
Many handymen start as sole proprietors and convert to an LLC or corporation as their business grows. This approach lets you test your business concept without complex setup costs, then add protection when you have more to lose.
If you’re considering anything beyond a sole proprietorship, consult with a business attorney or accountant. They’ll help you choose the best structure for your specific situation and ensure everything is set up correctly.
For detailed guidance on this decision, see our resource on choosing the right business structure and LLC vs sole proprietorship.
4.) Get a Tax ID
Whether you need a tax identification number depends on your business structure and whether you’ll have employees.
If you’re starting as a sole proprietor with no employees, you can use your Social Security number for tax purposes. You don’t need a separate business tax ID, though getting one is still a good idea for professional credibility and banking purposes.
Once you hire your first employee, you must get an Employer Identification Number (EIN) from the IRS. This applies regardless of your business structure.
Getting an EIN is free and relatively straightforward through the IRS website. Avoid services that charge fees for this process, as they’re unnecessary middlemen.
For complete instructions, check out our guide on getting a business tax ID.
5.) Apply for Permits, Licenses, and Registration
This step is crucial and varies significantly depending on your location and the services you plan to offer. Skipping proper licensing can result in fines, legal troubles, and inability to collect payment from customers.
Start by visiting your city hall or local government office. They’ll have information about local business licenses, permits, and registration requirements. Don’t assume the requirements are the same as neighboring cities, as rules can vary dramatically even within the same county.
Pay special attention to state-level requirements. Some states require contractor licenses for jobs above certain dollar amounts. For example, License rules and project-value thresholds vary by state and even by county. For example, California requires a contractor license for jobs of $1,000 or more (labor + materials); Nevada’s exemption tops out at $1,000 and may not apply if a permit is required; and several Tennessee counties require a home-improvement license for jobs between $3,000 and $25,000. Check your local rules before you quote work. Others have lower thresholds or different rules entirely.
Certain types of work typically require specialized licenses regardless of the job size. Electrical work, plumbing, HVAC, and gas line work usually need licensed professionals. Even if you’re skilled in these areas, performing unlicensed work can create serious legal and insurance problems.
Research these requirements thoroughly before taking on any jobs. When in doubt, partner with licensed professionals or refer work to them rather than risk legal troubles.
For comprehensive information about licensing requirements, visit our business licenses and permits page.
6.) Create Your Corporate Identity
Your corporate identity is how customers recognize and remember your business. It includes your logo, business cards, letterhead, and overall visual branding.
Your logo is particularly important. Customers might remember your visual identity before they recall your business name. A good logo should be simple, memorable, and clearly related to handyman services.
If you’re starting small, focus on the essentials first. Get professional-looking business cards and a simple logo. These items provide immediate credibility when you’re talking to potential customers.
You can expand your corporate identity as your business grows. Add letterhead, vehicle graphics, uniforms, and other branded materials when your budget allows.
Consider hiring a professional designer, especially for your logo. A well-designed logo can last for years and becomes increasingly valuable as customers associate it with quality work.
For more guidance on creating effective business branding, see our resources on:
7.) Write Your Business Plan
Every successful business needs a plan, even if you’re starting as a one-person operation. A business plan forces you to think through your goals, strategies, and potential challenges before you encounter them in real life.
Your business plan doesn’t need to be a complex document, but it should cover key areas. Define your target customers, services offered, pricing strategy, marketing approach, and financial projections.
Think about your ideal customer. Are you targeting busy professionals who need weekend repairs? Elderly homeowners who can’t handle physical work? Property managers with multiple rental units? Understanding your customer helps you tailor your services and marketing.
Consider your service offerings carefully. Will you handle emergency repairs, scheduled maintenance, small remodeling projects, or all of the above? Each type of work has different requirements for tools, skills, and scheduling.
If you’re planning to seek funding or want to grow beyond a solo operation, you’ll definitely need a comprehensive business plan. Banks—especially SBA lenders—typically expect a feasible business plan and financial projections.
You have several options for creating your plan. Use a template and fill in your specific information, utilize business plan software that guides you through the process, or hire a professional to write it for you.
For detailed guidance, see our guide on writing a business plan.
8.) Estimate Your Startup Costs
One advantage of a handyman business is relatively low startup costs compared to many other businesses. However, you still need to budget carefully to ensure you have enough capital to get established.
Your main expenses will likely include:
Tools and Equipment: You might already own basic tools, but professional work often requires specialized equipment. Don’t feel like you need everything before your first job. Buy tools as you need them for specific projects.
Vehicle and Transportation: You’ll need reliable transportation for getting to jobs and carrying tools. If you don’t have a suitable vehicle, factor this into your budget.
Insurance: This is non-negotiable for professional handyman work. Budget for general liability insurance at minimum.
Marketing and Advertising: Plan for business cards, basic advertising, and possibly a simple website.
Business Registration and Licenses: Include fees for business registration, licenses, and permits.
Operating Capital: Have enough money to cover personal expenses for at least the first few months while you build your customer base.
The temptation is to buy every tool you might possibly need, but this approach drains your startup capital quickly. Instead, focus on quality basic tools and add specialized equipment as specific jobs require them.
9.) Get Funding for Your Business
Many handyman businesses can start with relatively modest funding, especially if you already own basic tools and have a suitable vehicle.
If you need additional funding, start with your personal bank. Having an existing relationship often helps with loan approval. Prepare your business plan and be ready to explain how you’ll use the funds and repay the loan.
Keep in mind that banks view startups as higher-risk loans. Don’t take rejection personally if it happens. Instead, ask for specific feedback about why your application was declined and address those issues before approaching other lenders.
Alternative funding options include:
- Personal savings
- Credit cards (use carefully)
- Friends and family loans
- Equipment financing
- Small business administration loans
The key is matching your funding source to your actual needs. Don’t borrow more than necessary, but ensure you have enough capital to establish your business properly.
For more information about funding options, see our guide on getting a small business loan.
10.) Choose a Bank
You need a dedicated business bank account, even if you’re starting as a sole proprietorship. Mixing personal and business finances creates accounting headaches and looks unprofessional.
Your current bank might be a good choice, especially if you have an established relationship. However, don’t automatically assume they’re the best option for your business needs.
Consider factors like:
- Business account fees
- Check processing policies
- Online banking features
- ATM availability
- Small business services
- Loan products
The relationship with your banker matters more than the specific institution. A good banker understands your business, can expedite processes when needed, and helps you access additional services as you grow.
Establish this relationship early, even before you need loans or other services. Regular communication helps your banker understand your business and can be valuable when you need financial assistance later.
For detailed guidance on this decision, see our resource on choosing a business bank.
11.) Set Up Payment Processing
Many handyman customers still prefer paying with cash, but you’ll definitely encounter customers who want to pay by card. Having the ability to accept credit and debit cards expands your potential customer base and often results in larger job values.
A traditional merchant account through your bank provides the lowest per-transaction costs if you process significant monthly volume. Your banker can help set this up and often streamline the application process.
If most customers pay cash and you only need occasional card processing, services like PayPal or Square might be more cost-effective. These services charge higher per-transaction fees but have no monthly minimums or setup costs.
Consider mobile payment options that work with smartphones or tablets. This flexibility lets you process payments on-site without carrying separate equipment.
For more information about payment processing options, see our guide on merchant accounts.
12.) Get Business Insurance
Insurance isn’t optional for handyman work. You’re working in people’s homes with tools and equipment that could cause damage or injury. Without proper insurance, a single accident could destroy everything you’ve worked to build.
Imagine you’re installing a ceiling fan and accidentally damage a water pipe, flooding a customer’s home. Or your ladder slips and damages expensive flooring. Without insurance, you’re personally responsible for these costs, which could easily reach tens of thousands of dollars.
General liability insurance covers these scenarios and should be your first priority. This insurance protects against property damage and bodily injury claims related to your work.
Depending on your specific situation, you might also need:
- Professional liability insurance
- Commercial auto insurance
- Workers’ compensation (once you hire employees, as required in most states; note Texas is an exception for many private employers)
- Tool and equipment coverage
Work with an insurance agent who understands contractor needs. They’ll help you get appropriate coverage without paying for unnecessary protection.
Insurance is a business expense that pays for itself the first time you need it. Don’t try to save money by skipping coverage or getting inadequate limits.
For more details about business insurance requirements, visit our business insurance page.
13.) Set Up Your Office
Even if you’re working from home, you need a dedicated space for business administration. This space handles scheduling, preparing quotes, managing finances, and communicating with customers.
Your office doesn’t need to be elaborate, but it should be organized and equipped for efficiency. Essential items include:
- Computer or laptop with internet access
- Printer for contracts and invoices
- Filing system for customer records
- Phone system that presents professionally
- Accounting software or system
- Scheduling tools
Make this space comfortable since you’ll spend significant time here, especially as your business grows. Good lighting, comfortable seating, and organized storage help you work more efficiently.
Consider how customers will perceive your office if they visit. Even a home-based office should look professional and organized.
14.) Choose Reliable Suppliers
Having dependable suppliers can make the difference between completing jobs on schedule and dealing with frustrated customers. Establishing good supplier relationships takes time but pays dividends throughout your business.
Look for suppliers who:
- Stock the products you commonly use
- Offer competitive pricing
- Provide reliable delivery
- Stand behind their products
- Work with you when problems arise
Building relationships with your suppliers means they’ll prioritize your needs when you’re in a bind. If you need a part quickly to finish a job, a good supplier will expedite the order. If a product doesn’t work as expected, they’ll handle returns or exchanges smoothly.
Don’t rely on just one supplier for everything. Having backup options protects you if your primary supplier can’t meet your needs for a specific job.
Consider joining contractor programs that offer:
- Volume discounts
- Extended return periods
- Special ordering capabilities
- Technical support
These programs often provide better service and pricing than standard retail purchases.
15.) Build a Team of Professional Advisors
Depending on your growth plans, you might need professional advisors to help navigate business complexities. These professionals aren’t employees, but they’re valuable resources you can call when needed.
Your advisor team might include:
- Accountant for tax planning and financial advice
- Attorney for legal issues and contract review
- Business strategist for growth planning
- Marketing specialist for advertising and promotion
- IT professional for technology needs
If you’re planning to stay small, you might only need an accountant and attorney. But if you’re thinking about expansion, additional advisors become more valuable.
Build these relationships before you urgently need the services. This means staying in touch periodically, even when you don’t have immediate needs. Professional relationships often develop into valuable long-term partnerships.
For more guidance on building your advisory team, see our resource on building a team of professional advisors.
16.) Plan for Hiring Employees
You might start as a one-person operation, but growth often means adding help. Understanding when and how to hire is crucial for successful expansion.
Starting solo has advantages. You learn every aspect of the business, understand which tasks take the most time, and identify where additional help would be most valuable. This knowledge helps you hire more strategically later.
When you’re ready to hire, focus on the total yearly cost rather than just hourly wages. Consider:
- Base wages or salary
- Payroll taxes
- Workers’ compensation insurance
- Health insurance and benefits
- Paid time off
- Training time and costs
A small crew of five people can easily cost six figures annually in total compensation. Make sure your revenue can support this expense before committing to employees.
Consider alternative arrangements initially. Independent contractors, part-time help, or project-based assistance might meet your needs without the full commitment of permanent employees.
For detailed guidance on hiring decisions, see our resource on how and when to hire employees.
Key Considerations Before You Start
Before diving into your handyman business, take time to evaluate whether this path aligns with your goals and abilities.
Is Running a Business Right for You?
Many people dream of business ownership for various reasons:
- Escaping unsatisfying jobs
- Wanting control over their work
- Improving their lifestyle
- Building wealth
- Pursuing their passion
These are all valid motivations, but passion should be your primary driver. When you’re passionate about your work, you’ll persist through challenges that would cause others to quit.
Ask yourself this question: If you had all the money you’d ever need and complete freedom to do anything, would you still choose to start a handyman business?
If you answer yes, you’re probably passionate enough to succeed. If you answer no, consider what you’d choose instead. That might be your true calling.
Do You Have the Necessary Skills?
Success requires two different skill sets: handyman abilities and business management skills.
You obviously need repair skills to serve customers well. But you also need business skills like:
- Customer service and communication
- Scheduling and time management
- Financial management and pricing
- Marketing and sales
- Problem-solving and decision-making
Don’t worry if you lack some skills initially. You can learn as you go or hire people to handle areas where you’re weak. However, you should understand every aspect of your operation so you can step in when needed.
Should You Start From Scratch or Buy an Existing Business?
Buying an established handyman business has distinct advantages:
- Immediate cash flow from existing customers
- Proven systems and processes
- Established reputation and referral sources
- Skip the challenging startup phase
However, purchasing a business also has drawbacks:
- Higher initial investment
- Potential unknown problems or liabilities
- Existing systems might not match your preferences
- Risk of customer loss during transition
If you’re considering purchasing an existing business, hire an attorney to review all legal aspects. Ensure there are no hidden debts, pending lawsuits, or other problems that could become your responsibility.
What About Franchising?
Handyman franchises offer some appealing benefits:
- Proven business model and systems
- Established marketing strategies
- Brand recognition
- Ongoing support and training
But franchises also have limitations:
- Ongoing fees that reduce profitability
- Strict operational requirements
- Limited flexibility in services and pricing
- Potential territory restrictions
There are recognized handyman franchises (e.g., Mr. Handyman, Ace Handyman Services). Compare their fees/support to going independent. If you find options, evaluate them carefully against starting independently.
Essential Tips for Success
As you build your handyman business, keep these important points in mind:
Embrace Variety: One of the best aspects of handyman work is the constant variety. You’ll face different challenges and work in different environments regularly. This variety keeps the work interesting but also requires adaptability.
Quote Accurately: Your pricing accuracy directly affects profitability. Take time to properly estimate materials and labor for each job. For work that’s difficult to estimate precisely, explain your hourly rate clearly and maintain detailed time records.
Be Reliable: Showing up on time is fundamental to customer satisfaction. People often have negative experiences with contractors who don’t respect schedules. Reliability sets you apart from competitors and generates referrals.
Research Before Starting: If you encounter unfamiliar repair issues, research the proper solution before beginning work. YouTube, manufacturer websites, and professional forums provide valuable guidance. Taking time to understand the job properly prevents costly mistakes.
Know Your Limits: Don’t attempt work beyond your skill level without proper supervision. If a job requires specialized expertise, bring in a qualified professional while you observe and learn. This approach protects your customers and builds your knowledge for future jobs.
Build Strategic Partnerships: Develop relationships with specialists who can handle work outside your expertise. Establish partnerships with licensed electricians, plumbers, and other contractors. This lets you manage entire projects while subcontracting specialized work, keeping you involved as the main customer contact.
Your Path Forward
Starting a handyman business offers tremendous opportunity for someone with the right skills and mindset. The industry provides flexibility, variety, and the satisfaction of helping people solve problems in their homes.
Success comes from careful planning, professional execution, and commitment to customer service. Take time to properly set up your business foundation, understand legal requirements, and develop systems that can grow with you.
Remember that every successful handyman business started with someone taking the first step. With proper preparation and dedication to quality work, you can build a thriving business that provides both personal satisfaction and financial success.
The key is starting with a solid foundation and remaining committed to continuous learning and improvement. Your customers will notice the difference, and word-of-mouth referrals will drive your growth.
For additional guidance on starting your business, explore our comprehensive resources on business startup considerations and essential startup steps.
Take your time with the planning process, but don’t let perfect be the enemy of good. Once you’ve covered the essentials, it’s time to get started and learn as you grow.