handyman_business.htm

Perhaps you're one of those people who took your toys apart as a child just to see how they worked. Maybe you're a homeowner who learned to do minor repairs and remodeling projects around your own home, partly in self-defense against high prices charged by professionals. If so, you may have the skill, knowledge, experience—and tools—to start your own handyman business.

A note: Although the common term for this type of business is "handyman," this type of business could be started and operated successfully by men, women, or teenagers. The knowledge, experience, willingness, and tools required to start and succeed in this business have little to do with gender or age.

What will you need?

If you're a homeowner, you may already have the basic tools to fix leaky faucets, paint or wallpaper a room, mow a lawn, change a lock, hang a light fixture, lay carpet or linoleum or repair a screen. You probably have a hammer, pliers, wrenches, screwdrivers, saw(s), paintbrush and lawnmower, maybe even have some specialized tools, like a voltmeter, stud-finder, table saw, snow-blower, etc.

Unlike other home-based businesses, the tools needed for a handyman business are not hard to find or really specialized. If you find you need additional tools, they may be purchased (as you already probably know) from your local hardware, department or discount stores or even farm supply or contractor supply stores. If you need a special piece of equipment for a specific job, you most likely can rent the equipment you need from a local rental service or hardware store.

You also will need a vehicle - probably a pickup truck, SUV or van - one that will hold lumber, tools and whatever else you may need for most jobs. However, if you start with small jobs, even a car may work initially. The cost and upkeep of your vehicle may possibly be written off on your income taxes, particularly if you have some type of sign, indicating the name of your business, somewhere on the vehicle. Of course, you would want to talk to an accountant or tax professional about that, or check the U.S. Internal Revenue Service Website (http://www.irs.gov/) for small- and home-based business credits.

A cell phone or a good answering machine that you check often also is a necessity. Your customers will want to be able to get in touch with you in a relatively short period of time. In addition, schedules change and things happen, and you may need to be able to communicate quickly to reschedule a promised job.

Intangibles required for success and happiness in the handyman business include a love of variety and challenges, enjoyment in being a Jack- (or Jill) of-all-trades, a preference for working with your hands, patience, good people skills, at least some knowledge of home repairs, and a variety of "handy" skills.

Also, among the most important attributes customers will long remember is whether or not you arrived and finished on time and how well you cleaned up after yourself. So, if you are someone who is perpetually running behind, and neatness and attention to details are not your cup of tea, you may want to take these factors into account in your planning. Word of mouth from pleased customers will be your most effective advertising.

The overview

You've got the tools, the vehicle, the knowledge, skills, experience, and the motivation, but you will want to take a look at your local market for a handyman business. Where you live, the type of jobs you will want to tackle, the extent of your knowledge, and the number of tools will significantly impact the viability of your potential business.

Nationally, the market outlook is very good. In the United States, total residential improvement and repair spending (the category in which handyman businesses fit) has grown from about $131 billion annually in 1994 to more than $200 billion by 2005. In 1994, residential maintenance, repairs, alterations, and additions - the types of services handyman businesses usually provide - came to about 80% of the total spending. During the first three quarters of 2004, these categories represented 94% of the total residential improvement and repair spending. The potential market is out there.

Reasons for growth

Why such growth? Several factors contribute to the rosy outlook for handyman businesses:

Aging housing—In the United States, at least, as many as 75% of the homes are more than 20 years old. Although structurally sound, parts of the houses are wearing out or need to be updated, expanded or remodeled. Some experts are predicting that more money will be spent on home improvement projects than on new home construction, according to USA Today's Franchise Center (http://usatoday.franchisesolutions.com/).

Less time—More household have both adults working full-time jobs. They have less leisure time, and what time these couples do have, they don't want to spend making minor home repairs or remodeling projects. They prefer to hire someone to clean the gutters, fix a light switch or leaky faucet or mow the lawn.

They don't know how—These days, about 75% of U.S. workers are the white-collar, information-type workers. They tend not to be as "hands-on" as their parents or grandparents. They know their way around computers, but may not know how to fix a screen door.

More expensive and complicated houses—When housing prices were lower, a slightly botched repair project was no big deal. However, housing prices have risen significantly over the last 20 years, and less-than-professional-looking home repairs can negatively affect the equity and value of the house. Also, solid-state thermostats, high-efficiency furnaces, windows insulated with Argon gas, etc., make repairs or remodeling more complex, and learning how to do it right is more difficult and takes more time.

Aging population—The number of elderly and handicapped homeowners is steadily increasing as the overall population is aging. They may be physically incapable of making minor home repairs, changing light bulbs, or unclogging a sink, and are looking to hire someone to do these simple things.
Where and who are potential customers?

Customers for a handyman business can be your next-door neighbor, a real-estate manager, a local small business, or even a local contractor. The variety of services offered by handyman businesses is great, so you may want to specialize by type of services, local geographic area or in residential or commercial work.

Initially, most of your time will be spent marketing your services. Once you get up and running, that may decrease to about a quarter of your time spent on getting new customers, even if you have the word-of-mouth network going well. Fortunately, with this type of business, initial marketing costs need not be high -- inexpensive business cards and flyers, with the name of your business and examples of the types of services you provide.

Customers are everywhere. Almost anyone who rents or owns an apartment, house, or commercial building probably needs a handyman at some point. Start by canvassing your local neighborhood door-to-door, talking with your neighbors about odd jobs they may have available. You're looking to get a reputation started, as well as business coming in. Put your business card or flyer on community and supermarket bulletin boards. Take out a small ad under "Services" in your local newspaper, or in the Yellow Pages. If you can get magnetic signs made up for your vehicle, you are your own rolling advertising.

Another rapidly growing market includes rental agents and property managers of apartment complexes. When tenants call about something needing fixed, rental agents often will call a professional plumber, electrician or carpenter and pay a hefty per hour fee for some minor repair. If you emphasize your availability, knowledge, and lower pricing, a significant amount of business may result. Absentee owners of houses in your area may be another source of work. They may be interested in hiring someone local to do maintenance and repairs. This can be particularly true if you live in an area where many of the homes are vacation homes whose owners want someone to look after them when they're not there.

Also, don't forget the local senior centers—whether elderly people rent an apartment or own a home, they still may need someone to do minor repairs. Local shop owners - especially one-owner businesses—are another possible source of handyman jobs. Often, they are too busy running their business to keep up with the maintenance and repairs needed at home or at their business.

Research shows that the groups most likely to need the services of a handyman, in addition to the groups mentioned above, include the wealthy, upper middle class, white-collar middle class, unmarried singles, single parents with children, active retired people (they love the latest gadgets, such as sunroofs, decks, alarm systems, etc.), and people who are buying new and existing homes, whether moving up into a second home or relocating to your city.

Handyman franchises also are available and can be found online. However, these franchises usually require a significant up-front investment, but do provide you with instructions, business systems and consultation, advice and support in getting your business started.

What's the potential income?

If you're looking for a six-figure income, this probably isn't the type of business you want. However, many handyman businesses started out with just one person and grew to employ several people. Nationwide, most handyman businesses average between $10 and $30 an hour when they're working. However, most handymen charge per job, rather than per hour, and most have a minimum charge, regardless of the project. The income for your business, therefore, depends on the type of services you offer, the amount of work you may have, and what you will charge for the various services. You also will want to take into account seasonal fluctuations.

You will want to develop some type of formal or informal price list for your services, much like an auto repair business - a set charge for oil changes, tire repairs, brake repairs, tune-ups, etc. Figure what you want to earn per hour, check out the local going rates for handymen, determine the average time common services would take you and develop your price list. The one thing you don't want is to be perceived by your customers as playing favorites. Quote the customer that set price - they don't need to see the breakdown on labor and materials and your markup.

Cautions and caveats

Some drawbacks exist to this type of business, as well as some reasons for caution. Like any construction business, seasonal fluctuations may affect your business, although probably less so than strictly outdoor construction. However, July's "feast" could turn into January's "famine."

Two of the major and most common potential problems for handyman businesses are overloading with too much work, and taking on jobs you end up being unable to do. Although much information is available online and in books, be sure that customers understand you are more like a "helper" than a licensed professional, and you will do the job if you can. If you find that the project is beyond your knowledge, skill or expertise, let the customer know as soon as possible and refer the job to a professional - who may, in turn, refer minor jobs to you.

Another caution - be sure to check out your local licensing laws. You may need a contractor's license, even if you are a home-based handyman business. You also will want to be sure to carry business and liability insurance, since your work will be on other people's property and in their houses.

Although the handyman business traditionally is cash-and-carry, you may want to look into the possibility of taking credit card payments for your services. Many of today's homeowners very seldom have actual cash on hand, but rather live by credit or debit cards.

Good information sources:

HomeTechOnline (http://www.hometechonline.com) has in-depth information on estimating handyman work and even offers an extensive list of services, broke down by category. This informational site also offers a lot of information on nearly every facet of a handyman business, whether franchise or independent, start-up or established.

Another Website with helpful information is How to Advice's Handyman Business Start Up Guide (http://howtoadvice.com/HandymanBusiness), as well as the National Federation of Independent Business Website (http://www.nfib.com/) which offers economic and political news of interest to small businesses, as well as stories about handyman businesses who have succeeded.

In addition, an online newsletter specifically for handymen exists, called, "The Handyman Letter," (http://www.handymanletter.com/newsletter.html).

RESOURCES

Herbert, Rick & Barbara, Editors. "Making Money and Friends in the Handyman Business." How To Advice.com, http://www.howtoadvice.com/HandymanBusiness

Home Repair Links Index, http://www.naturalhandyman.com/linkslibrary/linkslibrary.shtm

Hosch, Pamela Wray. "Starting Your Own Home Based Business: Handyman Services." WordPress, http://wordpress.org/articles/home-business--starting-your-own-home-based-business-handyman-services.htm

Mr. Handyman Franchise. "Seeking a business with tremendous consumer demand? Let's caulk." USA Today Franchise Center, http://usatoday.franchisesolutions.com/index.cfm/fa/adpage/job_id/9587/lsource/4_onsite-services-franchise-opportunities

Moses, Jeffrey. "When Starting a New Business, Don't Overlook What's in Your Own Home." April 1, 2002. National Federation of Independent Business, http://www.nfib.com/object/1583883.html

Stoeppelwerth,Walter. Handyman. HomeTechOnline, http://www.hometechonline.com/handy/
Chapter 1: Introduction
Chapter 2: What is the Handyman Business?
Chapter 3: Economics of the Business.
Chapter 4: Estimating Handyman Work
Chapter 5: Marketing and Advertising

The Handyman Letter, http://www.handymanletter.com/newsletter.html

U.S. Census Bureau
Historic Expenditures for Residential Properties by Old Property Type categories: Quarterly 1962-2003, http://www.census.gov/const/C50/histtab2.pdf

Manufacturing, Mining and Construction Statistics, http://www.census.gov/const/www/index.html

Patricia C. Dinslage is a freelance writer and staff writer for IAHBE. She has BA degree in Economics, BS degree in journalism and is currently working on a Master's degree in career counseling. She has worked in business, government, agriculture and media, including a stint as a business reporter for a daily newspaper.