Many handymen confident of their home repair skills always look to move beyond handling smaller jobs to start a handyman business. If you’re thinking of starting your own company, there are certain tips to keep in mind about running a successful one. In this article, we review these tips and how they can turn your small workman services into a profitable handyman business. Every top handyman company started as a small business. Proper guidance from industry experts helped most businesses grow into a household franchise. We can also credit these handymen business success to many things, including in-depth knowledge of business law, a solid business plan, effective marketing strategy, efficient utilization of personal assets and resources, etc.
Running a successful handyman business is possible, but it doesn’t come easy. This is what new business owners must know. You must possess strong interpersonal skills that can help you keep up with the daily need to relate with people, some of which are potential customers. You must build the capacity of your new business beyond handling small jobs like home repair services to a level where you can partner with property management companies to carry out large projects. To ensure such growth for your business, it’s important to project the right image to your target audience. This sets your business apart from most small businesses and ensures potential clients find it appealing. This starts from choosing an appropriate business name, making your business a legal entity (by registering the business), and up-scaling your handyman services beyond odd jobs. We highlight the tips that can help you achieve all these below.
How to start a Successful Handyman Business
Many handyman businesses failed to grow to maximum potential due to a lack of guidance and implementation of appropriate business practices. Most intending business owners are mainly bothered about the startup costs, without developing a solid business plan and choosing the appropriate business structure. You can avoid such in your own handyman business by utilizing the following tips. They are:
1. Get a Handyman License and Liability Insurance
As a handyman business owner, having the necessary licenses is enough proof of your business’s legitimacy. Clients are more at ease with a licensed small business owner because the business is traceable. Hence, you must get a proper contractor’s license to prove your legitimacy. Online research can help you determine the local licensing requirements in your state to get an authentic business license. Carrying a general contractor’s license also allows you to hire subcontractors that can carry out specialized work when handling a large project.
Also, you need small business insurance to protect your handyman business from possible debts. There are lots of business insurance that can provide coverage for financial losses. The essential insurance for this type of work includes General Liability Insurance and Worker’s Compensation Insurance (if you hire employees). Handyman insurance protects small business owners from claims and suits against their business due to accidents causing property damage or injury. The General Liability Insurance policy pays for third-party damage or claims, medical payments, legal fees, etc. Worker’s Comp takes care of medical bills and lost wages for any workers who suffer workplace injuries. You can also purchase general contractor’s insurance in a bundle as a business owner’s policy. The BOP contains the essential liability insurance coverage you need, including property insurance, professional liability insurance, business interruption insurance, etc. Carrying the right business insurance provides financial protection and coverage for your business against potential risks.
2. Use a Strong Advertising Strategy
Marketing and advertising is a vital part of your business plan. It’s important that your marketing plan transcends beyond the use of local newspapers and business directories. Leveraging social media platforms and other online spaces can increase the reach of your business to your target market and attract new customers. Ensure you have designated social media accounts for your handyman business and employ handlers that can help you optimize these accounts to drive engagements and generate leads. The more visible your business is, the more likely you will grow via improved patronage. Hence, use appropriate marketing materials like flyers, posters, business cards, etc., to promote your profession.
3. Invest in High-quality Tools and Equipment
Your client expectations are essential when delivering your services, and not meeting them can be bad for your business. Hence, you must possess top-notch tools and equipment that can improve the quality of your service delivery. You can’t go wrong by investing in necessary business tools and equipment. They make your work better and easier.
4. Keep a Proper Record and Accounting
To ensure effective record keeping and small business accounting, you should have a business bank account to track income, expenditures, sales tax, and other compulsory expenses. This is essential to maintain proper business cash flow. The record also helps you determine how many clients you get on average within a specific period. This information is vital to ensure proper business management.
5. Build a Strong Team of Subcontractors
Beyond your local handyman work, your business may need to handle larger projects involving specialized subcontractors. Having an already built team saves you time and the cost of finding independent contractors willing to work with you. This also proves your readiness and competence to clients.
6. Stay Updated on Industry’s Latest Trends & Technology
Having the right information at the right time is an effective way of staying ahead of the competition. Using the latest technologies and techniques helps improve service quality and sets you apart from competitors. As a new business, it’s always hard to get ahead of the competition, but by setting the pace when it comes to the latest trends, it won’t be long before you find yourself up there. You’re doing yourself a great disservice if you stick to the conventional work approach everybody is utilizing. Stand up by efficiently using the latest technologies and trends to improve your services.
7. Offer Competitive Rates Without Compromising Service Quality
A professional company that offers great handyman services at affordable prices stays ahead of the competition. This promise is what every customer wants, and if you can deliver on that with optimum satisfaction, nothing can stop your growth. However, you mustn’t end up running on a loss while trying to offer competitive rates. Ensure your business remains profitable and worth more than the startup costs.
Licensing and insurance are essential things you need when starting a handyman business. You can always work with Insurance agencies like ContractorsLiability.com to get professional guidance on the insurance policies that suit your handyman business.