How to Start a Handyman Business in 10 Steps (2024 Guide)

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.

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 provide plumbing, electrical, or HVAC services without a license in my state. 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 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 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 certainly 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 service.

In most states, you won’t need a special license to provide small 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 has already been solved.

You don’t have to pick a number out of thin air or base your rates on what your friends or family think. You don’t have to undercharge, waste time, and leave money on the table while you learn pricing the hard way.

Instead, you can follow a proven system for setting your pricing that guarantees you generate a healthy profit. (Nothing against your friends and family, but they probably aren’t your ideal customers, so their opinions don’t matter.)

Step #5 – Develop a Marketing Strategy

At this point, you should have a good idea of the services you will offer, who will buy them, and how much you will charge.

The next step is determining how you will reach your ideal clients and convince them to hire you. That’s right. It’s time to form a marketing plan.

The good news for you is that people actively search for your services every day of the year. Handyman services are in high demand, and the demand is growing.

The bad news is that many other handymen have the same thing in mind.

Don’t worry. There’s more good news. Most handymen are terrible marketers, and you can make a killing by putting a little extra effort into your marketing.

There are many different methods for attracting customers to your business, but the most effective way is to build a professional website and online presence.

A good online presence will help you establish credibility and attract customers, allowing you to charge more for your services and easily fill your schedule.

For more details on how to do this, download this free handyman marketing report, where I share the most effective method for attracting high-paying customers.

Step #6 – Give Your Business a Name

Completing the first five steps is the equivalent of forming a business plan.

Once you have that plan, it’s time to give birth to your business by giving it a name.

You don’t need to get fancy here. Just something that sounds professional and clearly indicates the services that you provide.

Including the words handyman, home repair, maintenance, fix, construction, and similar words in your name helps potential customers understand your business.

Tips for Naming Your Handyman Business

• Make it easy to spell or say
• Have it communicate the services you provide
• Keep it as short as possible

When you’re ready for this step, read The Ultimate Guide To Naming Your Handyman Business.

Now, listen to the podcast version of this article, which includes extra content. Listen right here or on your favorite podcast app!

HS028 – The First 5 Steps To Starting a Profitable Handyman Business

Step #7 – Business Licenses and Registration

This step may sound intimidating, but it’s one of the easiest and only takes a few hours.

You’ll want to do three things here:

1. Register your business as an LLC (here’s why a handyman LLC is best).
2. Get your EIN (it’s free).
3. Get the appropriate local business licenses.

Registering your business as an LLC can be done online with your state licensing department, usually costing less than $500.

Once you’ve done that, you can get an EIN, which is like a business’s social security number. This will allow you to set up a business bank account.

The last step is obtaining the appropriate city or county business licenses. You can find out how to obtain these by visiting your local Chamber of Commerce website and filling out the appropriate forms.

You can learn more about registering your business here.

Step #8 – Buy the Tools You Need

Don’t spend $3,000 on tools right away. In the beginning stages of a business, that money can be invested in other, higher-return areas (such as marketing).

Instead, acquire tools as you need them.

Let’s say you get a tile installation job, and you don’t have a tile saw. No big deal. Pick one up at the store while you pick up supplies for the job. Or, better yet, rent one until you are certain you will use it enough to justify owning it.

Of course, certain tools are essential (like a cordless drill, pliers, screwdrivers, etc.), but I’m assuming that if you are a handy person, you likely already have most of those tools or at least know what they are.

But if not, then I’ve got your back. I’ve compiled a complete list of the tools you need to start a handyman business.

Trying to list those tools on this page would be silly since there are a lot of them. The good news is that most tools are low-cost ($10-$30) with a few basic power tools mixed in.

What about a handyman truck or van?

The best vehicle for a handyman business depends on your situation, just like everything else.

If you already own a truck, I recommend starting with that as your business vehicle. After a few months of operating out of that, you will be clearer on the ideal vehicle for your situation.

I’ve even seen people use mini-vans, SUVs, and even sedans. While this isn’t ideal for carrying tools (or looking professional), it can work in the short run while you get established.

Step #9 – Get Handyman Insurance

Handyman insurance isn’t required to operate a handyman business in most areas, but it is a good idea.

While you can get many types of insurance, I universally recommend a general liability policy to protect yourself and your customers if you accidentally drill into a pipe or drop an expensive piece of art on the ground.

As a part-time handyman, this will typically run about $40-$50 per month, which is negligible as long as you charge enough for your services.

As a full-time handyman, you will pay closer to $80 or $90 for a general liability policy of up to $1,000,000 in coverage per claim.

For a complete rundown on handyman insurance and my recommendation for the best place to get it, read my complete guide on handyman insurance here.

Step #10 – Save Time with Handyman Business Software

Some incredible software options are available that will save you time, help you provide better service, and make you look more professional.

The right handyman software will make running your business easier, more fun, and more profitable.

There are two types of software that I view as essential:

1. 1. Bookkeeping software – manages your accounting and keeps you organized for taxes.
   2. FMS (Field Management Software) – manages everything else in your business, from scheduling, estimating, soliciting online reviews, managing customers’ information, and more.

Expect to spend between $50 and $200 monthly for software, depending on your choice.

I’ve tested dozens of software options for my handyman business, and my top recommendation is here.

Conclusion

The handyman business is a proven business model. Thousands of people have made it work. Success is a matter of following best practices and consistently working hard.

Start by taking the first five steps above. Once you do, you’ll have a clear path toward success and a boost in confidence.

I’ve been helping skilled DIYers escape their day jobs by building profitable handyman businesses for over a decade. I invite you to join thousands of other pros (and future pros) by signing up for my email newsletter (it’s free).

Bonus Q&A

Is starting a handyman business a good idea?

If you enjoy working with your hands and helping people, the handyman business can be fun, fulfilling, and profitable. It’s a high-demand service, so job security is high. Also, every day is different, and moving your body all day is healthy.

For me, it has been the most enjoyable career I’ve had so far, and most of my students who use my programs to get started love the businesses they create.

There aren’t many careers where you can move your body, solve interesting problems, and then have customers happily pay you with money and gratitude after a job well done.

However, to be successful, you must be self-motivated. Just like running any business, it requires you to manage yourself. Sure, you get unlimited control over your schedule, but that also means it’s far easier to slack off.

How can I overcome the fears of starting a business?

Starting a business can be scary. So can working in a customer’s home.

Even if you are confident in your home repair skills in your own house, doing it for other people may frighten you.

This is normal.

The best way to overcome this fear is to follow a proven system and surround yourself with a supportive network. Then, take it one step at a time. You don’t have to build your business overnight, and you don’t have to get straight into kitchen remodels. You can start small, offering services you are very confident in, and work up slowly.

Here’s an in-depth article on overcoming the fears.