How to Start a Local Handyman Business

Writing a business plan is the first step for any successful handyman business. It doesn't have to be elaborate unless you want to use it to get a business loan. However, the more thought and detail you put into your business plan, the more you'll anticipate business challenges and how to avoid them.

There are many aspects to developing a business plan. However, you should ask and answer the following questions:

• Who is your target market? Do you want to do odd jobs for homeowners, work independently for contractors, or provide services to property management companies? Figure out who your ideal customer is and what they want from a handyman company.
• What type of services will you provide? What type of work do you want to do? Can you handle most home repairs or more specialized tasks such as carpentry or installing drywall or flooring? If you are considering being a general contractor and hiring sub-contractors, look into what it takes to open a construction business.
• What will you charge? Determine your pricing to make sure you are profitable and competitive in your market area. Look at what your competitors charge for similar services and their hourly rates.
• Do you need a contractor's license or a handyman's license? You must understand licensing requirements in your state, county, and city. For example, if you have a job that exceeds $500 in California, you need a general contractor's license. And if you are doing plumbing, HVAC, or electrical work, you may need a special license or certification.
• What are your startup costs? You need tools and equipment, possibly a commercial truck or van, to haul materials. Also, determine your monthly overhead costs to know how much you need to earn to break even.
• What is your marketing strategy? How will you get new customers? Do you need a website, or can you use social media such as Facebook and Instagram to advertise your services? Develop a marketing plan to get clients and referrals.

Think of your business plan as the blueprint for business. The more thought and planning you put into it, the more solid it will be.

Many new businesses start as sole proprietorships where one person is the company. However, many entrepreneurs form a business entity, such as a corporation or limited liability company (LLC), for personal asset protection from business liabilities. So, for example, if a homeowner sued you for property damage or personal injury, they could only go after the assets in the business, not you personally.

The business structure also determines how you pay taxes. An LLC is similar to a sole proprietorship, where the profits or losses of the business go on your personal tax return, making it a popular choice among small business owners. It is easy to set up an LLC in your state by contacting the Secretary of State office or Or you can let our trusted partner LegalZoom handle your business formation filing for $99 plus filing fees.

There are many factors when choosing your business name. You want to make sure, however, that no one has rights to that name. You can go to your Secretary of State's online business portal and put in your name. If no one has registered that name, you can use it. To ensure no one else can use your name, register it with the Secretary of State or file a DBA (doing business as) registration with your county or town.

You want to keep your business records separate from your personal finances, so you will want to open bank accounts for your business. You should set up a merchant account if you want to accept credit cards.

If you are a general contractor, you should have general liability insurance, which may include insurance for personal injury or property damage. You may want to talk to an insurance agent to determine what business insurance you need as a handyman.

While word of mouth is the best advertising, make sure you have an online presence for your handyman services. Listing your business on sites such as Angi.com or Yelp.com is an excellent way for potential customers to find you.

Starting a local handyman business begins with thoughtful planning and organization. Take the time to research laws and requirements to make sure your business stays on a solid foundation.