Since the start of COVID-19 crisis, people around the world have been spending more time at home—and in some cases, they may be noticing things they’d like to fix or projects they’d like to start. If you’re a skilled handyman, you may be able to help and find a new way to earn a living in the process.
Becoming a business owner certainly comes with some advantages. You are your own boss and you’re able to set your own schedule. You chart your course when it comes to income and the range varies. Rates depend on the amount of work you’re able to obtain, the rates in your area, and the type of clients you target. For instance, while the average independent handyman charges an hourly rate of $60, they can exceed $100 or more if the project is complex, you work for a larger company or have an extreme amount of expertise.
Getting your small business started
Of course before you dive in, there are always considerations. First, as a self-employed person, you may have less stability and benefits than you would with full-time employment. You’ll need to hustle to find work and be comfortable with selling your services. And finally, you’ll need some capital to get your business going, especially if you need to purchase tools or other equipment.
If you see these as less of challenges and more an opportunity—then launching your own business may be for you. Here are a few steps to take to get you started.
Understand the startup costs
Every successful handyman business requires a bit of startup capital to cover everything from your business license to insurance to marketing and more. Some of the costs, such as the required licenses and insurance, are fixed and you need to account for them. Other costs, however, are more discretionary. For example, you may want to add some nice-to-have tools to supplement those you already have or spend some money on marketing to get the word out about your fledgling business.
With these types of expenses, you can meter out your spending so that you’re making strategic investments that quickly pay off. For instance, experiment with a small amount of social media marketing—see if you get results, and then course-correct as necessary. Also consider the costs of time tracking software and other tech tools that can help you be more organized about your business, saving you time and ultimately money in the long run.
Research business licenses and contract licenses
To start your business, google the general business license requirements provided by your state and your county or city. Even if you’re a sole proprietor, you’ll want to establish your business name with the state so that you can report your income and pay the proper amount of taxes. Whether you need a specific contractor’s license, largely depends on where you live and work. In some states if you’re doing only repair work, then there’s no contractor license required.
For instance, in Alabama you only need a contractor license if the cost of the project exceeds $50,000. Other states, such as Arizona or Hawaii, require you to have a license for projects that are $1,000 or more. In California, the threshold for needing a license is as low as $500. In Illinois, you don’t need a license at all. Dive into your local licensing requirements to ensure you’re complying with the law—and that your handyman business doesn’t get into unintended trouble.
Obtain liability insurance
Much like licensing, the requirements for whether a handyman needs business insurance vary by state. Whether it’s a good idea (usually, it is) is another question to consider as well.
Handyman liability insurance can range from $450 to $1,0000 per year, with the area you’re operating in having a big impact on rates. There are different policies and different amounts of insurance you can carry; however, generally speaking, carrying some amount of general liability insurance that covers any damage to property, legal expenses, medical expenses, etc. protects you and your customers from any accidents that happen on the job.
Target potential customers
Once you have the small business basics in place, you can start marketing your business. This is where things get fun. The best first step is to simply leverage word-of-mouth marketing—let your friends and family know that you’re offering handyman services and available for hire. Consider creating a website or at the very least, business cards, so that potential customers can easily find you and reach out.
As you start to build your business, consider placing an ad on Craigslist or purchasing ads in publications that your customers may frequent. You might also network with real estate agents or general contractors who may be able to refer work your way. Explore social media and other online ads, which allow you to target customers by demographics such as their age and where they live.
Time tracking to grow smarter
Establishing a pipeline of work is a huge accomplishment. But it’s just halfway to your ultimate goal—getting paid and making a living with your own business. To move toward the latter, you need to set up a time tracking system that helps you understand the value of the work you’re doing, reveals where you can find efficiencies, and tees you up for further growth.
A time-tracking solution like Hourly makes it easy to track the time you’re spending on each job. With that kind of data, you can begin to understand what type of jobs earn the best return, where you’re losing money, and where you should focus your efforts. Even better, as you begin to grow your company, you may consider hiring employees or independent contractors to meet the customer demand for handyman work.
Hourly provides a great solution for tracking employee time, ensuring that anyone you hire is recording their hours accurately. It also streamlines requirements such as payroll and workers' compensation, allowing you to focus on the big picture of your business, instead of tracking down timecards.
Let’s Wrap it Up
If you have the know-how to fix anything, then starting a handyman business could be a great opportunity. Evaluate the advantages and take the considerations about licensing, insurance, and startup costs into account. Get the word out and then implement the tools that help you track your work time and get paid. Before you know it, you may be making a living doing exactly what you love.
1. Introducing Yourself
Your introductory email needs to pack a lot of information into a small package. Try something like this:
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Hello Jane,
My name is John Doe and I work for ABC Agency, where we provide business insurance policies to many of Dallas' rockstar small businesses.
Congratulations on your new business, Jane's Bakery. Are you wondering if you have all the insurance you need? Or if your policies will really cover you in a pinch?
At ABC Agency, we pride ourselves on providing robust, comprehensive coverage options to companies like yours with flexible, pay-as-you-go plans.
Are you available this week to talk more about how we can help? I can help you find the most affordable rates and the best policies out there.
I look forward to speaking with you soon.
Cheers,
John Doe
2. Presenting a Quote
Once you've met with your potential client, a quick reply with their quote will get the ball rolling.
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Hi Jane,
Thanks so much for meeting with me this morning. I loved touring Jane's Bakery–I can still smell those delicious chocolate chip cookies baking! You have a great location, and I'm sure you're going to do great on Front St.
After reviewing my notes, I've pulled together an insurance quote for you (attached). I recommend a business owner's policy. A BOP includes several insurance products in one: liability, property insurance, and business interruption insurance. It offers robust coverage at a competitive price.
I'll call you in a few days to see what you think about this insurance plan. In the meantime, if you have any questions, don't hesitate to email me or call me at [phone number].
Again, thank you for your time today. I look forward to working with you in the future.
Cheers,
John Doe
3. Thanks for Purchasing a Policy
Gratitude is important! It's never a bad idea to thank your clients for their business.
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Hi Jane,
Thank you for choosing a business owner's policy with ABC Agency. We know it's so important to get the right coverage for your business, and we are honoured you've placed your trust in us.
We're excited to work closely with you, and our no. 1 goal is to make sure you're business is always protected.
Do you have any questions? We are here to help. Reach out whenever something comes to mind.
Thank you again for choosing ABC Agency to insure Jane's Bakery.
Cheers,
John Doe
4. Welcome Email
A welcome email helps clients feel like you're there to help–and can softly pitch other insurance products you offer.
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Dear Jane,
Welcome to the ABC family! We are thrilled to have you as a new customer and can't wait to meet all of your insurance needs.
As an independent insurance agency, we work with multiple insurance providers to find the best coverage options for all our customers. If you need any other type of insurance–like [include additional offerings unique to your agency, like life insurance, health insurance, home insurance or anything else]–we can help you too.
Do you want to discuss any of these policies?
Cheers,
John Doe
5. Introducing a New Product
A happy client may want to expand their business with you.
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Hello Jane,
I hope all is well with you and Jane's Bakery. I stopped in yesterday for a blueberry muffin and coffee, and they were delicious. I loved the hint of cinnamon in the muffin! Was that your idea?
I wanted you to be the first to know we are now offering commercial vehicle insurance to our policyholders. Auto insurance for your catering vans is super important since your personal car insurance won't cover them.
We're offering this insurance coverage solely to our current business clients at the moment and have some very competitive rates.
Would you like me to work up a quote for you?
As always, thanks so much for being a part of the ABC family.
Cheers,
John Doe
6. Asking For Referrals
Once your relationship is established and comfortable, let your clients help you grow.
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Hi Jane,
You've been a valuable member of the ABC family for two years now, and we so appreciate your business–not to mention the muffins you supply for our monthly meetings!
Because you are a valued policyholder, I wanted to ask a quick favour. I know you are active in the local Chamber of Commerce, and I'm hoping you might know some colleagues who would benefit from working with our insurance company.
Referrals are one of the most effective ways to connect with our community since people really trust their friends, family and colleagues. Is there anyone you'd recommend I speak with?
Remember that in addition to business insurance products, we offer everything from life insurance policies to pet insurance.
As a thank you for your help, we will send you an Amazon gift card of $100 when your referrals buy insurance from us.
Thanks so much for your help!
Cheers,
John Doe
7. Policy Renewal
If your client needs to renew their policy with you, send an email like this:
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Hi Jane,
I hope you're doing well! What a year it's been—from being listed as one of the top 5 bakeries in Dallas to being an official vendor for the city—you have so much to be proud of.
Just a heads up that your business owner's policy is up for renewal soon and will expire on June 15, 2023.
If you're still happy with the coverage, we can easily renew it for you.
Do you have some time to chat this week?
Looking forward to serving you again!
Cheers,
John Doe