The handyman industry has benefited from a nationwide increase in household income and the accelerated housing market. Rising property values drive the demand for repairs, maintenance, and remodeling projects. If you're starting a handyman business, follow these helpful tips for success.
Evaluate your skills to decide which services to provide. List everything you're capable of doing, from painting houses to snaking clogged drains. For safety’s sake, don’t dive into entrepreneurship by taking on a trade you have no skills or experience in, such as electrical work.
By defining your ideal customer, you can tailor your services to a specific market niche and compete with larger businesses. There are several factors to consider when targeting customers. For each factor, you'll have to determine what your clients will likely need or want.
Type of property. Will you specialize in commercial or residential buildings?
Service area. Decide the distance you're willing to travel for jobs.
Project size. Will you do quick repair jobs or long-term projects?
Client budget. Do your customers prioritize affordable prices above high-quality work?
Your company's business structure determines how you pay taxes and file paperwork. It also affects your personal liability. Each business structure has its benefits and legal protections:
Sole proprietorship. This is easy to form and gives you total control of the business, but you may be personally liable for debts.
General partnership. This is the simplest structure for two or more people to own a business together.
Limited liability company. An LLC in Florida protects your personal assets, but you must pay self-employment taxes.
Corporation. This offers a strong protection from liability, but it's expensive to form and operate. It requires extensive paperwork and you must pay corporate taxes.
A hybrid pricing model allows you to charge a flat rate for some types of work and an hourly rate for others. You can benefit from charging an hourly rate for complicated jobs that are difficult to price, such as remodeling a bathroom. This will prevent you from losing money if the project proves to be more expensive or time consuming than you predicted. Offer flat rate prices for simple repairs, installations, and simple jobs.
Among the software you use to enhance your business operations, make use of a construction estimating app that includes features to create estimates regarding the costs of materials, labor, and taxes. You can then send estimates to clients and create payment schedules.
Taking customer payments is an essential step toward continuous business growth. Look for an online payment system that both you and your clients can use. And by using a bank account balance API (which retrieves bank account balances in real time) along with a payment system, you can help avoid expensive credit card feeds and provide peace of mind to both you and your clients.
Follow these steps, and you can get started on setting up your handyman business today.
Connect with other local entrepreneurs by joining the Crestview Area Chamber of Commerce.Image via Pexels