Updated: 4/27/20
Everyone has Coronavirus on their mind, and rightly so. This could be the most important event in our lifetime. It’s already changed the world. The only question now is “how much will the world change?”
Nobody knows.
Experts are happy to share their opinions, which are likely very good opinions based on complicated economical models, cutting-edge science, and a comprehensive view of history.
But ultimately, nobody knows.
Maybe one of the thousands of brilliant scientists out there will develop a vaccine or anti-viral treatment that works and we can all go on with our merry lives. Or, maybe this will drag on until well into 2021.
This likely leaves you with a lot of questions bouncing around in your head. And as a reader of this website, one of those questions is “how will this impact my handyman business?“
Maybe you are just thinking about starting a handyman business. Is that still a good idea?
Or, maybe you already operate a small local service business. Are you totally f$@ked?
Well, just like everyone else, I don’t know. But I have been thinking about this nonstop since I read this article on March 11th and immediately decided to keep my family at home for at least a couple of weeks (it’s now been nearly 7 weeks).
So, here’s what I’m going to cover in this article.
- The negative impacts COVID-19 has, and will continue to have, on handyman businesses.
- A positive perspective on why it may not be that bad.
- And most importantly…What actions to take so that you limit the downside and and emerge on the other side on top and doing better than ever.
The Negative Impacts of COVID-19
#1 – A temporary drop in demand
The most obvious (handyman business-related) downside is a drop in demand.
On April 1st I surveyed 221 small handyman businesses. Most of them live in the US, but there are some businesses from the UK or Australia as well.
When I asked how COVID-19 has impacted their business in terms of leads, 22% said that customer calls completely stopped. 37% said they had a large reduction in new project requests. The rest of the data is in the chart below.
As you can see, 83% have had at least a small decrease in demand for their services. And, 59% have had a large reduction in new project requests.
Even though some (~16%) are experiencing either business as usual or even an increase in demand, it’s clear that demand has decreased.
Not really surprising, but still interesting to see some data.
There are several things leading to this decrease in demand. The obvious one is social distancing. A large portion of the world just doesn’t want to take unnecessary risks.
Another factor is the uncertainty about the economy. This is leading most homeowners to tighten up their budget a bit – or at least not spend money on non-essentials like kitchen or bath remodels.
The third factor that is just starting to have an effect on demand is rising unemployment (I don’t think this factored in much at the time of the survey). This will likely continue to keep demand lower even after the initial fear of COVID-19 goes away and we start returning to normal again.
So, unfortunately, there has been a drop in demand. The only question is how long will it last and how severe will it be?
Many of the handymen I surveyed have said that customers are postponing a lot of projects. So, there may be pent-up demand building that will more than make up for the drop in demand caused by unemployment rates.
But again, nobody knows what will happen. It’s all speculation right now.
#2 – Working = Exposure
Another obvious downside is that the more work you provide as a pro, the more people you have contact with, and the higher your risk of contracting and spreading COVID-19 (the disease caused by the SARS-CoV-2 virus).
Of course, the risk of getting the coronavirus can be minimized with good hygiene, not shaking hands, staying outside, and staying at least six feet away from people at all times. But even with these measures in place you are still increasing the risk of infection any time you enter a home or shop for supplies.
For some, that’s a risk worth taking. For others, it’s not.
#3 – Many businesses will disappear
For any local service business with employees, this is a tricky time. Many businesses were just barely keeping their heads above water before the pandemic. With the threat of several weeks (potentially months) with little to no work, this will put many people out of business.
A large percentage of handymen operate solo, including most of my readers, which allows them to be more flexible and resilient since their overhead is very low. Yes, they may have significantly lower income for a while, but at least they don’t have to pay employees or the numerous other expenses involved with larger operations.
So inevitably, just like with any other recession, some contractors and handymen will go out of business.
These are three pretty big downsides. However, here’s why being a self-employed handyman is a relatively good position to be in.
The Silver Lining of Being a Self-Employed Handyman
If you are reading this, it’s likely that you are a self-employed handyman. After all, that is the business model that I teach.
If that’s the case, here’s why you will fare better than most in this situation.
#1 – Demand may be lower, but so is supply
Many handymen have decided to temporarily stop offering services in order to limit their exposure to COVID-19. Many of the handymen in America are retired men who do this work because they enjoy it and so they can supplement their retirement. But their handyman business income is not essential. This has allowed them to comfortably shut down their services for a while.
Additionally, handymen who are good at managing their money have been able to shut down operations to minimize risk to themselves and family members. Many of the handymen I surveyed mentioned they were doing this.
This is good news for other pros because it reduced competition. It’s hard to know how much supply has dropped and how many handymen will continue to call it quits for a while, but it will help (and already has) adjust for the lower demand.
Because of those who shut down temporarily the handymen businesses that need to stay open will still be able to generate an income. That income may be lower than normal, but many industries are completely shut down with no income. So compared to other businesses like restaurants and barber shops, this puts handymen in a pretty good spot.
Additionally, the customers of those handymen who stay home are still going to need home repairs. This will give opportunities to handymen who are just starting their businesses to gain traction with new customers.
#2 – This is temporary
Nobody knows how long we’ll be practicing social distancing. It could be a few more weeks. It could be a few more months. I’ve even heard sources say it will last at least a year unless we have a breakthrough in treatment.
Personally, I am optimistic that things will improve sooner. I’m amazed at how well we have reacted as a country so far and I believe there are a lot of smart people working to solve this problem and very few politicians hindering progress. Normally politics and special interests will slow down medical developments. I don’t think that will be the case for this one.
Regardless of how long this lasts, it’s important to remember that it is temporary. The economy will bounce back just like it did after 2008 and the many other recessions our economy has faced. And when it does, there will be a surge in demand for handymen and contractors. Any handyman business who is able to weather the storm will be fishing on less crowded waters when it’s all said and done.
#3 – Homes will always need repairs
No matter how much the economy tanks, how long the NBA is shut down, or how much COVID-19 spreads, homes will always need repairs.
Toilets will continue to need repairs. Fences will continue to blow over in the wind. Refrigerators, stoves, dishwashers, furnaces, and the hundreds of other things that can break down in a home will continue to break down.
The fact that people are in their homes even more now will probably increase the number of repairs needed. Plus, homeowners may be less willing to live with broken things in the home since they now spend nearly 100% of their time there.
Even people who are most afraid of COVID-19 will still go to the grocery store to get food and supplies, just like they will call someone to fix their furnace if it breaks.
Here in Reno, NV, all non-essential businesses have been ordered to shut down. However, one business that will remain open is Home Depot and other hardware stores. That’s because what they sell is essential. So is the service that home repair experts provide.
Additionally, even painting businesses have been deemed essential and, as of now, are continuing to offer services.
Because handyman services are essential, there will likely always be at least some level of demand for them.
#4 – You can focus on outdoor repairs.
As a handyman, you offer a wide range of services and repairs. This allows you to offer indoor services or outdoor services. It allows you to help businesses, homeowners, and even real estate investors.
This wide range of services is difficult to streamline and in a normal economy can actually limit profits. Specializing in one service when things are going good is typically more profitable as I outline in this article.
However, when things start to go south, offering a wider range of services starts to pay off. It leaves you less exposed to shifts in demand. While demand for certain services may evaporate, other services will pick up to take the slack.
This makes a handyman business more resilient than a specialized service business such as a painting contractor or lawn care business.
And in the case of coronavirus, it can allow you to focus on exterior repairs which will limit your exposure and still allow you to generate a profit.
Of course, your ability to pick and choose jobs depends on how good your marketing is, which is why I’m always preaching about the importance of marketing.
As you can see, there are several advantages of being a handyman in this time of uncertainty. Everyone will be affected negatively in some way, but compared to most industries, pro handymen will do quite well.
How To Weather The Storm And Come Out On Top
Now that I’ve covered the impact of this highly contagious virus, let’s talk about what you can do now to position yourself for survival – and potentially even growth.
How you approach this situation will depend on your situation. So I’ll address a couple of different scenarios.
Scenario #1 – If you need to keep providing services to keep your business alive.
The first thing to do in this case is to address your hygiene and social distancing practices. You’ll want to create a comprehensive strategy for limiting your exposure and your customers’ exposure. Figure out how you can shop less in physical stores. Don’t shake customers’ hands. Stay six feet away from customers and people in stores. Sanitize your hands, your tools, and the surfaces on your truck that you touch after every single job. Only install items that you purchase and provide. Practice “contactless services” by billing digitally. Make the customer open all of the windows for a few hours before entering their home. Don’t give the customers physical receipts or brochures. Limit contact as much as possible, and try not to share air.
This may seem extreme, but there are two reasons for this. The first is to “flatten the curve” by not spreading the disease. The second is for marketing purposes. Having a solid social distancing and hygiene protocol is the most important marketing tool at your disposal right now. Customers are unlikely to hire a handyman that doesn’t address this.
Once you’ve created your COVID-19 mitigation protocol, the second thing to do is to share it with your customers. I would approach this in two ways. First, create a page on your website that discusses and explains your protocol for keeping you and your customers safer from infection. Make sure to make this content obvious on your home page as well. Second, write an email to your customers and let them know that you are in business and explain your protocol in the email.
Here’s what to include in the email:
- A thorough description of your COVID-19 risk management protocol.
- A clear description of the services you are still offering.
- Ideas for services (ideally exterior) that customers might want right now.
- Any benefits of hiring you right now (temporary discounts, availability, etc.).
The more thorough your protocol, the safer you will make customers feel. The safer you make customers feel, the more likely they are to hire you.
And don’t be afraid to send more than one email. A short helpful email once a week is a good idea, depending on how much business you have.
If you are a member of Handyman Marketing Machine, I teach E-mail marketing in Module 5. Go through that for additional tips and insights.
Additionally, I’m working on a new marketing program which will come out shortly. So, make sure to sign up for my email list anywhere on this website to get notified when it’s released.
Again, addressing COVID-19 concerns could be the most important marketing tool you could possibly use right now (other than the tools you use to be found by new customers in the first place).
Scenario #2 – You are at risk of being laid off (or already have been).
If this is the case you will first want to decide if starting a business is your best option.
While many of my students who are just getting started experience very fast growth with their businesses, this should not be expected as the norm – especially during a recession.
Anticipate to spend at least 3 months with little to no income while investing at least a couple thousands dollars to get started. Your business may grow faster than this, but given the current circumstances, it will likely take longer.
If you have some runway financially and can go a few months with no income, then proceed just like any other time when starting your business (with the additional stuff I added above). I have over a hundred free articles and resources to help you as well as more in-depth and step-by-step courses to help you accelerate your success.
Scenario #3 – If you don’t need short-term cash flow, but still want to grow your business.
This is for you if you are just starting a business or want to start a business to escape your day job. Or, if you are a seasoned pro who can afford to take a few weeks off.
This is a good position to be in because you’ll likely have extra time at home. If you currently work a 9-5, this offers a huge opportunity to focus on your business for a while.
If you are usually swamped with jobs as a pro handyman and never get a chance to build systems or improve your business, this is also a great opportunity.
Now is the time to invest in your business knowledge and skills. Well, it’s really always a good time to do those things, but now is a REALLY good time.
For a handyman business, there are several areas to focus on that tend to yield the best results:
- Your marketing. By optimizing your marketing you can focus on attracting customers who are closer to you or just for jobs that tend to be more profitable. This is also helpful if you’re just starting your business.
- Your Pricing. Most handymen are leaving so much money on the table every year it’s ridiculous. Limiting beliefs, a lack of a pricing strategy, and just a lack of knowledge about the industry in general lead to very expensive mistakes.
- Your Scheduling. This ties in with your pricing strategy and can lead to dramatic boosts in profit long term.
- Your Systems. Create checklists. Improve how you bill customers. Upgrade your business software. Re-organize your tools. Switch to an S corp. Optimizing these things doesn’t always pay off directly, but will save time and energy which frees you up to make more money or just enjoy more life.
You don’t have to do them all. Just one thing at a time.
Just ask yourself the following questions:
What can I do now that will save me time in the future?
What can I do now that will increase my income per hour worked in the future?
What can I do now to position my business for success in the future?
Then, just pick one thing and actually do it. Staying productive is a great way to gain a sense of control, even in the midst of uncertainty.
Final Thoughts
It’s easy to fall victim to the idea that a situation is helpless, but there is always something you can do. There are always opportunities. There is always a silver lining.
Sure, certain things will suck for a little bit. But don’t just let circumstances mow you over. Get up and focus on what you can improve. Shut off the news. Take a few deep breaths. And get to work. Just choose one small thing and do it. Then do the same thing tomorrow. Then do that every day.
Any time there is a disruption in the world, wealth changes hands. Everyone will suffer losses in the short term, but in the long run, some will gain from this and some will continue to suffer massive losses. You have the choice of which category you fall into.
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Great leadership Dan. Very practical and straight forward advice. Thanks mate.
Thank you so much Dan! That was a perfect email customized exactly to our business model. Having trained with you and implemented several strategies has positioned us well to weather this storm for as long as it lasts. So thank you again!
Good to hear from you Tara! I hope you and your family are doing well.
Spot on Dan! As a new HM business owner, I’ve experienced exceptional growth over the last 6 months. This article reiterates the importance of being organized, having exceptional communication and seeing opportunities where they exist.
Thanks for your positive post. I am past retirement age but have been too busy with my business to enjoy any retiremend untill now. There will be demand for our services after this is over. We need to take this time to take a look at our lives and decide where our priorities are. We all only have one life to live and nobody on their death bed wishes they had spent more time working.
God bless and keep safe.
Great piece Dan! Once again you are spot on. I invested in your programs last year and let me say it was money well spent! The information enabled me to take the time to set up my handyman business before starting to actually work. Then like a switch I turned it all on. I am now in month 3 and I am already profitable! A few of my clients have already reached out to me and asked if I can still provide outdoor services over the next few weeks! Myself and my family thank you!
That’s great to hear, Nick! Thanks for sharing.
Dan, thank you so much for all your insight! I only discovered your website less than a week ago but your guidance has been invaluable to me, even as the owner of a small cleaning business. I am grateful to be considered by my customers as offering a necessary service even during these uncertain times.
I have been running solo for close to twenty years now and I am so grateful to say that not one of the worldwide financial events have had an effect on my ability to maintain my level of business. I discovered your site though through a simple Google search when inquiring “how to confidently provide a fair estimate to a new customer.” Your article was an absolute eye opener and has helped me to reach down in my gut and find the courage to bid on a job that is reflective of my worth. What a blessing to have my offer accepted and to hear my new customer’s satisfaction for the services I provided upon my departure the other day!
I just couldn’t pass up the opportunity to express my gratitude for your sharp insight. I now look forward to reading your articles and each time I just substitute in “cleaning lady” for “handyman” and discern the relevancy for me! : )
God bless you!
Truly,
Nina Joost
“An Angel’s Touch”
That’s so cool, Nina. Thanks for sharing it with me. These kind of comments make my day.
Excellent info. Really good attitude. Very positive. I like it.
Hey Dan,
There is so much I am still learning from your courses, but I am always inspired when you put things in perspective for those of us who struggle with doubts. This article did the trick again. Keep on encouraging your students, we need it – especially these days!
– Josh
I’m often writing to solve my own problems (doubts, fears, etc.), and it’s great to hear that it helps to resolve your internal struggles as well.
Great stuff, we just finished writing our exposure mitigation plan thanks to you.
Glad to hear it!
Very well thought article, it’s true social distancing is a must for safety, I hope that everyone had established an alternative source of income and will make it through these rough times!
Be safe !
Another awesome and invaluable article from you, Dan! Thank you so much, I really appreciate your prescience to many things in this industry that catch many of us flat-footed. I took your advice and ran with it, and have already yielded positive results!
Thank you once again, Dan!
Thank you Dan for your words. We going to win this moment. good look for all. Pedro Jesus
Thank you for your continued guidance during this unpredictable time. We find all of your offerings immensely helpful and use them as a roadmap we continually return to as we develop and grow our business.
All the best to you and your family,
Bryan and Emily Mac
Once again it seems great minds think alike. I have already been informing past and potential customers that for the time being I am only taking on outside work, that we can talk by phone when I am outside their home doing the estimate, and that I will be emailing their estimate to them. And that they can leave their payment outside when the job is complete. (Which I will disinfect prior to handeling.) I let them know this prior to any discussion about the job, and you can tell right away that their anxiety level decreases. You’re right; people will always need certain things taken care of regardless of the situation. But they are still pretty apprehensive about it. Anything we can do to set their mind at ease equals more work (and money) for.
Stay safe and healthy, and keep that great mind working!
Dan,
Thanks for sharing a positive attitude. Even though I operate a mobile sharpening service, your incite has been
very helpful to my one man show.
God Bless you,
I think adding a covid 19 page to your website is a good idea,
Offer an incentive or discount to be a part of the solution
Alot of people are home looking at sll their projects
Great piece Dan! It’s really easy to let yourself get down right now. But like you stated, take this time to focus how you can get your name out when this is all over. People will flood our phones when this is all over. I think it’s also important to take this time and spend it with your family. If your like me, you fill too much of your day with work and the home life suffers. Enjoy this time with your loved ones as well. Thank you.
I have been in business for a little over a year now in the middle Georgia area. I actually seen an increase in jobs up until this week, alot of ppl that where sent home (school teachers mostly)thought it was a good time to get those to do tasks done. I knew it was going to be short lived, so I have contacted all of my elderly repeat clients and have offered to make earrand runs for cost reimbursement and tips. I started targeting rental rehab jobs (although I usually stay away from these) but it will keep me busy and away from people. I also have purchased steel and aluminum tubing, MDF, and epoxy resin with plans to build tables and benches. I did pull a few jobs this week with convenient stores, installing plexiglass covid19 shields above counters and registers. Just a few ideas for anyone trying to figure this out. Luckily for me I had the best quarter yet this year so I have a little padding, but if this would have happened last fall I would be in deep dark hole.
We’re a handyman business for about a year and a half now. Thank you SO much for posting this article. It’s full of great tips and advice!
Great insights Den! Thanks for inspiring us and showing hopes during this hard time.
This was a very enlightening article. It helped me get my drive back into the correct direction.
Wow you went into a lot of depth with some great information. We are still in phase 2 so these tips are really helpful. Thanks for the info.
The article was worth reading. Many businesses and industries have been hit very hard in Coronavirus Pandemic. You have written a great article covering both the negative impacts and what can one do to overcome these impacts?
Useful..!!!
Looking forward to more great content like this.
Thanks Alisha! Glad to hear you found it helpful.
-Dan
Hi Dan, I personally have been doing outside work sense March and put on my website I am nor doing inside work. I am pleased to say I have been busy every single week and get phone calls every day. So in doing that I have found out I like the outside work much better. So it is a win win for me.
That’s great to hear! I also like outside work.
I am reading this in Sept 2021. I would be interested to hear how your thoughts have changed or if they have at this point?
I am just starting my business (less than 6 months) and getting ready to go full time. Seems right as the delta variant is gaining momentum.
I appreciate your insight and have learned alot from your blogs, in fact it was your blog that helped me to finally pull the trigger and go on my own.
Thank you for your insight and tips. They have been very helpful.
Mark
I can understand your concern, especially considering the doom and gloom on the news. However, I wouldn’t let it stop you from moving forward with your business. I’ve heard from several people who started their business at the height of the pandemic (when things were shutting down) and they did very well. Just take a look at local restaurants or football games. People are still living life, and things in the home are continuing to break.