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What You Need To Start A Handyman Business
Handyman businesses are one of the easiest small businesses to start because they do not require a large overhead, a retail location or any expensive certifications. But you do have to get some things right in order to be ready for business. Here is a list of the basics you should check off before you show up at your first job.
1) A name
Check the phone book and the internet to make sure no one else in your state is using the company name you are considering. Make the name memorable, but do not make people think too hard to understand what you do. Attention-grabbing names may be good, but only if no one will ever have to guess what you do. After you’ve come up with four to six names you like, ask friends and neighbors and other business people and potential clients what they think of the names. Take a poll and pick the winner.
2) A business license
You will need to register your business in your county, which should cost around $40, and you may have to register with a state for taxation purposes. In New Mexico, for example, you have to register for Gross Proceeds Tax, which means filling out another form and paying another application fee. It may be different in your state.
Then you will probably need to get either a contractor’s license or a maintenance license to do your handyman work. You probably do not need a full contractor’s license, just a maintenance license, but check with your state’s local rules to be sure. In California, the rule is that so long as you charge less than $500 for each of your jobs, you do not need to get a contractor’s license. Contractor’s licenses are much more expensive than plain maintenance licenses, and sometimes they require that you also be bonded and insured to get the license. If you can, skip getting bonded when you are just starting out.
3) Insurance
Handyman work is physical labor, so there’s always the potential to get hurt. There’s also the potential to do damage to a client’s property. Shop around for your insurance, and make sure the deductible and the monthly payment are something you can live with.
4) A checking account
Start with a low-activity business checking account. Put your contact information and your business license number and “bonded and insured” if that applies to you. Have the account under your business name, not your personal name.
5) Business cards
Go to Vistaprint.com and get yourself 500 business cards. They have hundreds of pre-designed templates and more than three dozen of them are for handymen and contractors. Put your business name, your name, two phone numbers, your address, your business license number and what kind of work you specialize in on the card. Do not worry about getting a logo yet — do that after you’ve saved three months living expenses. Skip all other advertising right now, including the phone book. Wait until you’ve been in business three months.
6) Tools and supplies and a vehicle
You will probably be using your existing car or truck. In terms of tools, you’ll need basic painting supplies, enough woodworking tools to at least build a dog house, and landscaping tools like a shovel, a rake, a ladder, a couple of five gallon buckets. You’ll also need enough plumbing supplies to fix a leaky faucet and get a toilet to stop running. For electrical equipment you’ll need tape, switchplates, wire cutters, a flashlight and more.
About the Author
Pam Neely writes about how to start your handyman business, including how to choose a name for a handyman business and how to advertise a handyman business.
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