How to Start a Handyman Business in 2025: 10-Step Guide

What Is a Handyman Business?

A handyman business is a company that provides general home repair and maintenance services that don’t require specialized licensing, such as:

• Minor plumbing, like fixing leaks

• Electrical work, like replacing outlets

• Drywall repair and painting

• Furniture assembly and TV mounting

• Door and window repair

• Gutter cleaning and seasonal maintenance 

Unlike licensed specialists (e.g., electricians or plumbers), a handyman needs to be skilled in a wide range of small to midsized tasks, which means they must be more flexible and cost-effective for quick fixes that don’t require major construction or permits. 

How Do You Start a Handyman Business?

Whether you’re going full-time or starting as a side hustle, it takes the right mix of planning, tools, and local know-how to get started. 

Here’s what you need to do:

Let’s look at these steps in greater depth.

1. Get Licensed

Only two states currently issue handyman licenses, while many others let you work without one (as long as the project’s cost stays under a certain amount). 

For example, the state of Delaware doesn’t offer an official handyman license, but you need to register as a construction contractor to obtain a business license. 

New York and Utah are the only two states that require licenses. 

To be sure and stay compliant, always check and understand each state’s handyman licensing requirements. Also, ask local authorities if they have any rules besides those of the state.

Check out each state’s handyman license requirements.

Pro tip: Some states do not require a handyman license. However, it’s still advisable to get one to appear more credible and earn customers’ trust.

2. Decide What Services You Will Offer

Working as a handyman allows you to offer a wide range of services. However, any service you offer must intersect with your current skill set.

For example, someone doing electrical work as a hobby or possessing a degree in it can offer electrical services. The same applies to people who were once apprentice plumbers or who usually help neighbors, family members, or friends with plumbing tasks.

Offering multiple services from the get-go can be a recipe for disaster. You’ll get more work orders than your current capacity can handle, making it almost impossible to provide quality services to customers. Customers will leave, spread negative reports about you, and never contact you again.

It's better to start narrow and add more service offerings as you grow.

So, list all the odd jobs you’ve done before. Then, build a service around those that reflect your prospective customers’ needs. For example, someone fixing squeaky doors and leaky faucets around the house can offer general home repair services.

Here are some other examples:

• Carpentry

• Tile and flooring

• Landscaping

• Drywall installation, finishing, and repair

• Painting

• Bathroom and kitchen plumbing repairs

• General home repairs

3. Create a Handyman Business Plan

A business plan is a detailed blueprint that guides handyman businesses from start-ups all the way through to revenue-generating companies. It contains strategies for outmaneuvering competitors, attracting customers, and adapting to market trends.

Business plans are working documents. They undergo frequent iterations based on the company's challenges, current market trends, and changes in customer behavior.

Writing a business plan is also a major requirement for capital infusion from lenders, such as banks, investors, private equity firms, etc.

The key to writing a comprehensive business plan is to include the details that readers—investors, business mentors, or employees—need to make decisions. The plan should be arranged to flow logically and make sense to anyone reading it.

Here’s a breakdown of what a logically structured business plan looks like:

• Cover page: States the document's name and the business it was created for.

• Executive summary: Gives a one-page overview of the rest of the document.

• Business overview: This brief description of the business and its owners also states the company's mission, vision, and values.

• Services: Describes the services you’ll offer and why you picked them.

• Market analysis: Contains data about the state of the market. How many homes are in your coverage area? What are your competitors' weaknesses, and what are your strengths? Who are your target customers?

• Financials: Outlines your plan for getting funding. 

• Tools and inventory: Lists the tools and materials required to start.

• Marketing plan: Contains a plan for making customers aware of your services.

Management summary: Briefly lists the names of the management team and what makes them fit for their positions.

4. Get Financing

Businesses can be capital-intensive. Money is needed to buy tools, get licenses, promote your services, and pay for insurance.

Before soliciting funds, make a list of all the items you’ll spend on. Assign dollar amounts to each item, with a buffer to account for price fluctuations and miscellaneous expenses.

Since handyman businesses are usually low-capital ventures, your savings and credit card will likely be sufficient to cover your start-up costs. But if that’s not the case, consider using any of these financing options:

• SBA loans: The Small Business Administration offers low-interest loans to small businesses with long repayment periods. Such loans are ideal for businesses without the financial means to pay huge interest rates.

• Bank loans: Banks offer loans, too. However, they come with high interest rates and stringent qualification criteria, such as collateral, financial reports, etc. Use this option only as a last resort.

• Family and friends: Reach out to friends and family members who believe in your business acumen. Frame the request as an investment and have a lawyer draw up a repayment plan to prevent disagreements down the road.

• Private investors: You can seek capital from private investors through business networks. However, you must be prepared to surrender a portion of the profits and control of the company in exchange.

Handyman grants: This is money from government, nonprofit, and for-profit organizations handed down to businesses. It does not need to be repaid as long as the recipient uses it for the purpose mentioned in the application.

5. Register Your Business

Registering your business ensures you’re legally recognized and eligible for tax deductions and government interventions. It also secures your from being used by someone else.  

Before registering your business, pick a short and easy-to-pronounce name. Then, ensure it's not already taken by searching Google, social media platforms, and trademark databases.

Once you've selected a name, secure it. Register the name with your state's corporation commission and find matching dot com domains and social media handles. This will prevent you from being forced to use a domain name or social media handle composed of something other than your company name.

When filling out the business registration form, you’ll be directed to pick a legal entity. Here are the options to pick from:

• Sole proprietorship is built for one-person businesses. In this case, the owner’s assets are at risk from business liabilities.

• Partnerships involve two or more people who share profits and losses using guidelines enshrined in the partnership agreement. The owners are recognized as self-employed individuals and report their taxes separately.

• Limited liability companies (LLCs) are treated legally as an individual. This means liabilities from the company cannot affect you as long as your expenses don't mingle with the company’s. However, you’ll have to pay taxes on the company’s income and your dividend (or retained earnings).

After completing the business registration document, file the required paperwork and get an employer identification number (EIN) from the IRS website. Depending on your jurisdiction, you may also need to get a tax number from state tax authorities.

Pro tip: Get a separate business phone number to avoid being disturbed by work calls at odd hours. Also, purchase an email hosting service that lets you have an address that matches your domain name, to aid brand recall and legitimacy. It should appear as Yourfirstname@businessname.com

6. Handle Finances & Accounting

Poor financial management is the number one reason businesses fail. It’s hard to monitor cash flow, track liabilities, and identify when debts pile up when you’re stuck with clipboards and countless bits of paper. 

This makes it imperative to have a solid accounting system that organizes and consolidates all financial transaction data. Such a system makes it easier to file taxes, make the right decisions, and clearly understand your company’s financial health.

The first step is to create a business checking account to easily calculate expense deductions when filing taxes and separate business expenses from personal ones.

The bank you decide to do business with should have little or no minimum balance requirement. It should also have a broad ATM coverage in your area and offer high interest rates on savings.

Once you have a business bank account, invest in tools to handle various steps in the accounting process, such as payroll, estimate creation, customer payments, and transaction data analysis.

However, to save costs and avoid manually copying data from different tools, invest in ServiceTitan’s comprehensive accounting platform.

The platform integrates with various accounting tools like QuickBooks, Viewpoint Vista, and Intacct. These integrations eliminate manual data entry and provide a single source of truth about your company’s financial state.

The platform also empowers field techs to accept customer payments via cash, credit card, or check. Such payments are immediately reflected in the central accounting dashboard, which front office staff can access.

This means you always know the financial status of your company before the end of accounting periods.

Finally, the platform has accounts receivable and payable reports that showcase all outstanding invoices and payments in one interface. They show the names of the debtors and creditors, the amounts owed, and their contact details.

Handyman business owners use these reports to follow up on overdue payments and settle vendors’ accounts before late payment penalties kick in. This helps them maintain a healthy cash flow and gain vendors’ trust.

7. Invest In Handyman Equipment

Avoid the temptation to save costs when purchasing equipment by going for lower quality. While it can initially feel like savvy business, the amount you’ll spend on repairs may eventually surpass the cost savings.

Your ability to do the job efficiently and deliver quality results that attract more customers depends on the quality of the tools you buy.

If you must save costs, start with your current tools, buy only those necessary for your services, and hire others from tool rental companies. As you grow, you can get more specialized equipment.

Another way to save costs is to visit pawn shops and yard sales and open a pro account with store chains like Home Depot and Lowe's to enjoy discounts.

In addition to tools and equipment, buy uniforms so customers perceive you as a professional rather than just another handyman with a truck and duct tape. This will also help you charge higher rates.

Once you’ve purchased the necessary tools and equipment, you must ensure they remain in optimal condition and are always available so technicians can do their jobs. That’s where ServiceTitan’s Inventory Management platform comes in.

With the software, handyman business owners can track materials and equipment, create purchase orders, manage replenishments, and handle material returns.

One notable feature of the platform is its Item Overview display interface, which provides a snapshot of all the available materials and tools. The report captures their names, quantities, unit amounts, descriptions, and total values.

Users can also examine each item more closely to determine the number of times it was used, where it currently is, and its deployment history.

ServiceTitan’s Inventory Management software also allows users to create templates for allocating inventory, reserving items for upcoming jobs, and creating purchase orders to replace tools.

This makes it easy to maintain optimum stock levels and reduce turnaround times.

Pro tip: Buy sufficient inventory that will last a while to avoid wasting time and gasoline on frequent supply store visits.

8. Decide on Your Pricing 

To operate profitably, you must use the right pricing strategy. Your prices should also accommodate overheads and have a healthy markup to deliver a return on investment.

For starters, take stock of local competitors’ pricing strategies. Calculate the labor and material costs associated with each service. Then, fix a price that includes a healthy profit margin.

Next, pick a pricing strategy—flat rate, hourly, or hybrid. You can charge flat rates for large projects so customers won't hound you to finish quickly to save costs, and use hourly rates for small-scale projects.

Pro tip: Always sign an agreement containing the price and scope of a project before you begin. This could be a work order, change order, or purchase order. Respectfully refuse extra work beyond the agreed scope unless the customer offers to pay for it.

9. Get Handyman Business Insurance

While this may seem like an unnecessary extra cost, we often advise handyman businesses to take out insurance policies to protect their businesses from liabilities.

Handyman business insurance protects the business and its owner from unexpected events covered by the policy, like work-related injuries, accidents, and lawsuits.

You’ll need these five basic types of handyman business insurance to fully protect yourself and your business:

• General liability insurance protects from workplace injuries, property damage, and personal injury.

• Worker's compensation covers benefits and wages of employees injured on the job.

• Commercial auto insurance provides liability coverage for business vehicles.

• Property insurance protects owned and rented assets and business records from natural disasters and theft.

• Equipment insurance pays for lost or damaged handyman tools and equipment.

Get as many quotes as possible from small business insurance providers. To ensure full liability coverage, pick a $1M- or $2M-dollar policy.

10. Market Your Handyman Business

Now that your business is established, you need people to know about the services offered. They can book an appointment immediately or later, having remembered your company from a business card you shared with them at an event, for example.

That’s where marketing comes in.

Marketing is simply promoting your services in a way that highlights your unique value proposition. The goal is to attract potential customers, make them value your services enough to pay for them, and be their first choice when handyman needs arise.

Before running any marketing campaign, build a digital footprint that customers can use to verify your credibility. Share helpful content on your handyman website and social media handles, then create a Google Business Profile and fill it up with reviews.

Learn how service companies use ServiceTitan’s Reputation Management tool to generate multiple customer reviews within a short period.

You can build a strong online presence via the following low-cost marketing channels to generate more leads:

• Share flyers and business cards.

• Post on your local community’s Facebook pages and groups.

• Register with Thumbtack and other local directories frequented by prospects.

• Invest in pay-per-click (PPC) advertising and Google Local Services Ads.

• Set up email marketing campaigns.

• Use direct marketing techniques such as door-knocking, cold-calling, and word-of-mouth.

To maximize results and reduce waste, monitor each marketing channel’s contribution to your generated revenue. Additionally, keep track of field service performance metrics such as average response rates, employee productivity, repeat visits, and average ticket prices.

ServiceTitan’s Home Services Marketing software lets handyman business owners access a marketing performance scorecard and match new customers to the campaigns they came from via dynamic call tracking (DNI).

With accurate campaign tracking, you can increase the budget for revenue-generating campaigns and pause those performing poorly.

How Long Does It Take to Start a Handyman Business?

Typically, starting a handyman business takes a few weeks to several months. If you already have the skills you need, funding, and a clear business plan, the process of setting up a business is relatively quick. 

But it can also take longer. In short, the timeline depends on several factors, such as: 

• Licensing and registration: Some states require minimal paperwork, while others may involve licensing exams.

• Knowledge, tools, and equipment: Gathering essential tools may take more time and budget planning but not so long if you already have the basics. 

• Marketing setup: Creating a Google Business Profile, social media pages, and business cards can be done relatively quickly, in just a few days. 

In conclusion, most handymen can take on paying jobs within a few weeks with some preparation. 

How Do You Choose a Name for Your Handyman Business?

Choosing a name for your handyman business can be difficult as there are many variables to consider. It must be memorable and unique, ensure prospective customers notice you, and leave a good first impression. 

Here are a few tips to keep in mind when selecting your brand name: 

• Search local trademark databases: Make sure your business name is unique in your city or state, as the same name might send customers straight to your competitor. 

• Consider services and specialties: Maybe you’re offering niche or specialty services, so consider adding them to your business name as it’ll help you stand out from the competition.

• Highlight quality: Use words like “quality” or “expert” to showcase your expertise and service quality. 

• Be descriptive: When choosing your business name, use descriptive words that help customers understand your services better. For example, if you offer high-end services, you can use words that evoke sophistication. 

• Add a personal touch: Choose a creative or fun name that will make your company more friendly, such as Wham Bam Handyman or A Bang-Up Job. 

To make it easier, we have a list of handyman business names you can check out.

How to Start a Handyman Business With No Experience

Anyone can start a handyman business, even if they have no experience, as long as you’re willing to learn and grow gradually. 

Start small by learning basic home repair skills through classes, local workshops, or online tutorials. Try to focus on simple tasks first like patching drywall or fixing leaky faucets, then move on to more complex jobs. 

It’ll also help if you gather some experience. You can do so by offering to help your friends or neighbors for free or at a discount. The idea is to build confidence and a small portfolio. Or you can work as an apprentice for a licensed handyman to gain hands-on experience. 

You don’t have to learn everything all at once. Start with a narrow range of services you’re comfortable with, then expand your skillset as you improve. Take on small jobs and use every project as a learning opportunity, even if you make mistakes. 

Over time, your repertoire of skills will grow and so will your business and client base. 

What Are the Benefits of Starting a Handyman Business?

Still on the fence about starting a handyman business? Don’t be. 

Here are some of the benefits of operating a handyman business for those with a desire for independence but who are afraid of taking the first step: 

• Flexibility: Choose your own hours, whether part-time or full-time, and control which types of jobs you take on. No pressure! 

• Low startup cost: You don’t need a storefront. Just your handy tools and a van. With minimal investment, you can begin earning quickly. 

• Consistent demand: Who doesn’t need repairs from time to time? A handyman business is a thriving industry, as homeowners and landlords often need help with repairs and maintenance. The best part? Many will prefer hiring a trusted local handyman over coordinating with multiple contractors, so you’ll not be short on jobs! 

The biggest benefit is that you’re your own boss. You can choose your clients and work on your own terms. And, as you build a client base, you’ll see the potential for strong income growth, especially through referrals or repeat business. 

What Are Common Mistakes When Starting a Handyman Business?

Sure, starting your own business can be rewarding. But to ensure long-term success, you need to avoid some pitfalls, such as: 

• Underpricing services: You might be tempted to charge too little or do jobs for free to attract clients. But you might end up burning out or operating at a loss. Consider your time, tools, and material costs when pricing your services—and be fair with yourself. 

• Skipping licenses and insurance: Even if your state doesn’t require a handyman license, working without proper registration or liability insurance can leave your business vulnerable to legal and financial issues. 

• Failing to use contracts or written estimates: Clear agreements between two parties protect you from disputes over project time, for example. Set clear expectations around scope, timeline, and payment right from the start. 

• Poor customer service: Even if your work quality is high and you come recommended, being late, not following up, or failing to communicate in case of delays can quickly damage your reputation.

• Neglecting marketing: Relying on word-of-mouth marketing isn’t enough. Creating a basic online presence and asking for reviews from happy clients can help attract steady leads. 

How Can You Grow a Handyman Business?

Once your handyman business is up and running, you need to expand beyond basic jobs and one-off clients by improving your visibility and spreading brand awareness. 

Here are the key strategies to grow your handyman business: 

• Expand your services: Try to add new skills and services to your repertoire, such as minor electrical work or seasonal maintenance packages. Broader services will attract a wider range of customers. 

• Raise your rates: Now that you have a solid customer base, demand will grow, so don’t be afraid to adjust your pricing to fit the workload. Higher rates reflect your value and allow you to work profitably. 

• Hire help: You can’t tackle larger or more jobs on your own, ( so don’t be afraid to bring in outside assistance or subcontractors who can increase your capacity. 

• Improve your marketing: Make sure to stay active on social media by responding to comments and involving yourself in local community groups. Always ask satisfied customers for reviews after each job to increase your visibility. 

• Use professional services: Tools like ServiceTitan can help you with customer communication, scheduling, and reputation management—all from a single platform. You stay on top of your projects and remain organized, especially when your business grows and jobs pile up. 

• Build a strong reputation: Word-of-mouth, referrals, and positive reviews are your most powerful marketing engine, so make sure you always show up on time, communicate clearly with customers, and deliver quality work. 

• Offer repeat services: In your chase for new clients, you might forget about existing ones. Follow up with them and offer seasonal check-ins or maintenance plans, as they’re often more profitable than constantly finding new customers. 

Now it’s your turn! 

Over to You!

Now, you’re set to become a fully fledged business owner and grow your company. Whether you’re just getting started or looking to scale, the tips and tricks provided in this article will guide you to success—from avoiding common mistakes to choosing the right name for your business. 

To start, spread the above steps across two weeks or 10 working days. 

Then, invest in ServiceTitan’s comprehensive handyman business software to hit the ground running and streamline operations. The tool can consolidate customer data, boost booking efficiency, and maintain optimum stock levels. 

ServiceTitan is an all-in-one, cloud-based handyman software solution that helps automate business operations. Home services providers have recorded a 25 percent average increase in revenue within one year of using the software.

Frequently Asked Questions (FAQs)

Still have questions about starting a handyman business? Learn more answers below.

How much does it cost to start a handyman business?

Data from Zen Business says starting a handyman business costs between $2,000 and $10,000. The exact cost depends on salaries, registration fees, and your location’s cost of living.

Are handyman businesses profitable?

Yes, handyman businesses are highly profitable since they offer various services people frequently need. The Bureau of Labor Statistics says a handyman or a general maintenance and repair worker makes $48,620 per year (in 2024) or $23.38 per hour.

What type of business is best for a handyman?

The best type of business for a handyman will depend on the business owner's skill set and the services their target market needs. They can offer the following services:

• Furniture assembly and repair

• House moving assistance

• Carpet cleaning and installation services

• Home security system installation

• Minor plumbing system repair and maintenance

• Landscaping

• Window washing services

What is the difference between a handyman and a contractor?

Both handymen and contractors work in the home improvement space, but there are a few differences between them:

• Licensing: Handymen are not required to hold a contractor license (though some states may require it) while contractors have a state-issued license which permits them to take on larger and more complex projects. 

• Job scope: A handyman focuses on small-scale repairs and maintenance (e.g., fixing doors or replacing faucets). Contractors handle larger projects such as remodeling kitchens or major plumbing work. 

• Project size and complexity: Handymen take on small, quick jobs that don’t require permits or inspections, while contractor projects may need permits, inspections, and subcontractors. 

• Client expectations: Customers hire a handyman for convenience and affordability, while they hire contractors for larger renovations or construction projects with detailed plans and timelines. 

In a nutshell, you typically hire a handyman for quick fixes and general maintenance. A licensed contractor is ideal for more complex, high-risk jobs. 

What are the first steps to becoming a handyman?

Here are the essential first steps to becoming a handyman: 

• Assess your skills and find what you’re comfortable offering as paid services (e.g., drywall repair, furniture assembly, painting, etc.). 

• Get the right tools, such as cordless drill, screwdrivers, ladder, safety gear, handyman apps, etc. 

• Set up basic marketing, enough for people to find and contact you, such as a Google Business Profile or simple social media page. 

• Find your first clients by asking friends, family, and neighbors if they need help or join local Facebook groups to offer your services.