How to Start a Handyman Business: Complete Step-by-Step Guide

1. Assess Your Skills and Choose Your Niche

Identify your strengths and focus on services you can do well:

• Basic Repairs: Drywall, painting, door/window fixes
• Plumbing: Faucet repairs, toilet installation, minor leaks
• Electrical: Outlet installation, light fixtures (check licensing requirements)
• Carpentry: Shelving, trim work, furniture assembly
• Home Maintenance: Gutter cleaning, deck staining, winterization
• Specialty Services: Appliance installation, smart home setup

2. Get Proper Licensing and Insurance

Protect yourself and operate legally:

Licensing Requirements:

• Business license from your city/county
• Contractor's license (varies by state and services offered)
• Specialized licenses for plumbing/electrical work
• Sales tax permit if required in your area

Essential Insurance:

• General Liability: $500K-$2M coverage ($500-$2,000/year)
• Tool Insurance: Protects your equipment ($200-$500/year)
• Commercial Auto: If using vehicle for business
• Bonding: Some clients require bonded contractors

3. Invest in Quality Tools

Start with essentials and expand your toolkit as you grow:

Basic Tool Kit ($500-$1,500):

• Cordless drill/driver and impact driver
• Circular saw and reciprocating saw
• Level, tape measure, stud finder
• Socket set and screwdriver collection
• Hammer, pliers, utility knife
• Extension cords and work lights

Vehicle Setup:

• Truck or van for tool/material transport
• Tool organization system
• Vehicle lettering for marketing
• Safety equipment (ladder rack, reflective vest)

4. Set Your Pricing Strategy

Price competitively while ensuring profitability:

Common Pricing Models:

• Hourly Rate: $35-$85/hour depending on location and skills
• Flat Rate: Set prices for common jobs
• Material + Labor: Markup materials 15-30%
• Minimum Charges: 2-hour minimum or trip charge

Pricing Considerations:

• Your skill level and experience
• Local market rates
• Travel time and fuel costs
• Tool wear and replacement
• Business expenses (insurance, licensing)

5. Build Your Customer Base

Start marketing before you launch:

Local Marketing Strategies:

• Door-to-door flyers in neighborhoods
• Nextdoor app and local Facebook groups
• Google My Business listing and reviews
• Referral programs for satisfied customers
• Partner with real estate agents and property managers
• Business cards at hardware stores and community boards

Online Presence:

• Professional website with service descriptions
• Before/after photo galleries
• Online booking system
• Customer testimonials and reviews
• Local SEO optimization

6. Provide Excellent Customer Service

Build a reputation for reliability and quality:

• Always arrive on time or call ahead
• Provide detailed estimates before starting work
• Clean up thoroughly after each job
• Follow up to ensure customer satisfaction
• Offer warranties on your work
• Be transparent about what you can and can't do

7. Manage Your Business Operations

Stay organized as you grow:

Business Management:

• Scheduling software for appointments
• Invoicing and payment processing
• Expense tracking for taxes
• Customer relationship management (CRM)
• Inventory management for commonly used supplies

8. Scale Your Handyman Business

Grow beyond solo operation:

• Hire Help: Start with subcontractors, then employees
• Expand Services: Add specialized skills or equipment
• Commercial Clients: Property management companies, offices
• Maintenance Contracts: Regular monthly service agreements
• Emergency Services: 24/7 service for premium rates