Startup cost
$1.0k–$10k
TRUiC Business Ideas
How to Start a Handyman Business
Decision Snapshot
Handyman
Idea Score
63
Profit margin
14%
Break-even
4 mo–12 mo
Time to launch
2 wk–8 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Medium
Time commitment
Flexible
Part 1 - How to start a Handyman business - Background
A handyman business offers a variety of home repair services, based on their skill set and the customer’s needs. This can include, but is not limited to, both interior and exterior trade skills, maintenance, and repair.
You may also be interested in additional side hustle ideas.
Our guide is in 3 parts:
- Part 1 - How to start a Handyman business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a handyman business?
Assuming you have a reliable vehicle to transport tools, your start-up costs will be fairly minimal. In fact, experienced business owners indicate you can start your business with less than $1,000. The only items you need are standard home repair tools, marketing materials, and insurance. Insurance costs vary, depending upon your experience and scope of projects you plan to take on. Average cost is $361 to $792. To escalate your business’ growth, consider having a simple website built, where customers can find out basic information and locate contact information.
What are the ongoing expenses for a handyman business?
While your ongoing expenses will be higher than initial start-up costs, most handymen report fairly minimal overhead costs. You will need to maintain the necessary licenses and carry proper insurance. Ongoing maintenance, repair, and replacement of all tools, including your vehicle, will be your largest expense. If you employ a crew, you’ll also need to consider Workers’ Compensation costs, as well as costs associated with payroll.
Who is the target market?
In this industry, you have a large pool of potential customers to choose from. Most consumers don’t have the knowledge, time, or desire to perform home maintenance and repair. Identify your target audience by considering the type of jobs you plan to take on and the customer base you feel drawn to work with. For example, single women over the age of fifty who live alone is a standard target market. They often lack the skills to complete most home repair tasks and are willing to pay to employ a honest, hard-working repairman.
How does a handyman business make money?
Fees vary, depending upon the complexity of the job you’re hired for and are collected once the job is complete.
How much can you charge customers?
Your fees will vary, depending upon location and size and scope of each project. Some handymen charge a standard hourly rate, while others set their fees on a per-job basis. Average hourly rates range from $60 to $125. To avoid under and/or overcharging, professionals recommend setting cost-based fees. For more information on this, consider downloading this handyman hourly rate calculator.
How much profit can a handyman business make?
While the standard, one-man operation averages just around $40,000 annually, there are many handyman businesses that report earning as much as $3,000 per week. Your profits are directly tied to the types of jobs you take on and how accurate your fee structure is.
How can you make your business more profitable?
To maximize your profits, it’s recommended that you employ multiple workers with a variety of skills. The more quality workers you employ, the more jobs your business is able to take on. Those reporting the highest profits also indicate that working with property management companies yields the highest profits.
Day-to-Day and Growth
What happens during a typical day at a handyman business?
Unless you decide to focus on just one or two services, each day will vary tremendously. One day you might be drywalling, while another day might be spent fixing a washer and tearing down popcorn ceiling for a rental company you service. A portion of each day will be spent traveling from site to site and purchasing the items you need to complete the work. Those who have realized the greatest success indicate at least one day a week should be dedicated to marketing the business and networking within the community.
What are some skills and experiences that will help you build a successful handyman business?
In addition to being skilled and knowledgeable in home repair, it is critical that you be organized, patient, and possess strong interpersonal skills. Each day will offer up a new set of challenges. You must be confident enough to make decisions without hesitation or guidance, eager to face the next challenge as it arrives.
No amount of home maintenance knowledge can prepare you for running a business. The primary reason for most businesses’ failure isn’t their lack of hands-on skill, but rather the inability to make sound business decisions. If this isn’t your strong suit, consider taking a business course online or at your local college. The information gained will benefit you for years to come. The United Handyman Association can offer guidance regarding how to properly run and market your business. They can also assist in standard start-up needs, like insurance and legal assistance.
What is the growth potential for a handyman business?
The growth of your new business venture will depend, largely, on your overall vision and drive to meet those goals. Many handymen enjoy working alone and choose to keep their business’ small and local. With the right knowledge, skills, and crew, however, there is significant growth potential in this industry. If you possess a background in business, starting a handyman franchise would be a very lucrative way to grow your business.
What are some insider tips for jump starting a handyman business?
It always helps to have insider knowledge from the industry’s leaders:
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Most individuals just starting out feel as though they have to do it all. This is simply not the case. Stick with what you’re most skilled at. Your business has great potential to be profitable, even if you offer a limited range of services.
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There is no way of knowing exactly what tools you need for every job. Rather than wasting money on something you may never need, purchase tools on an as-needed basis. This will increase your ongoing expenses, but tremendously reduce your start-up costs.
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Prior to offering your services, make sure you understand applicable laws in your region. This is absolutely critical to your business’ success. Consulting with an attorney and an investigator from the contractor’s board in your area is highly recommended.
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While not required, being licensed, bonded, and insured is recommended. It displays an air of professionalism that is sure to gain you a larger customer base.
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Once you qualify, consider becoming a certified handyman professional. The Association of Certified Handyman Professionals offers a great program.
How and when to build a team
No matter how much you charge, there is never enough time or money to do everything yourself. Consider employing a team of hard workers. Hire team members that are skilled in areas you aren’t, as this will make your business eligible for a greater pool of jobs. Once you’ve built a skilled team, your schedule will open up some, allowing you to focus on administrative and marketing tasks.
Due to the complexities regarding local and state laws, many experienced handymen suggest retaining an attorney. This should give you the peace of mind of knowing that research is done thoroughly and help safeguard against issues later on down the road.
Part 2 - Is a Handyman business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Handyman business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Handyman Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Handyman business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.