A handyman business provides a variety of home-based services related to plumbing, electrical, periodic maintenance, etc. One of the advantages of a handyman business is the opportunity to scale, which can be done by adding new services or securing commercial contracts as opposed to working with individual clients. For skilled professionals planning to start their handyman business, this article will serve as an all-encompassing guide.
Obtain Relevant Licenses
Almost every state in the United States requires handymen to have one or more licenses to operate businesses. You can learn about state-specific requirements here!
Before applying, hone in on the services you want to provide as it will affect the type of license you’ll be granted. As reported by Next Insurance, you can opt to be a general contractor covering numerous niches or provide specialized services such as plumbing, roof repair, etc.
The process of obtaining the license will be as follows:
Register for the Exam: Being approved for a contractor’s license is dependent on you passing the exam conducted by the State Board of Contractors. Visit your state’s website to learn about the upcoming dates and exam centers.
Study for the Exam: The exam consists of two parts – law and trade. Study materials can be obtained at your State Board of Contractors website. Additionally, consider attending seminars conducted by the National Contractor License Agency.
Apply for Your License: Test scores are valid for 1 year, hence submit your license application immediately after passing the exam. Additionally, documents required for the license can include proof of home address, proof of business address, resume, sales tax identification number, and payment of the application fee.
Establish a Limited Liability Company
A limited liability company is one of the best business structures for a handyman business. Asset protection is the prominent benefit provided by an LLC. In the unlikely event that a customer sues your business for negligence, damage, or contractual discrepancies, with an LLC, the liability will be limited to the business, safeguarding your assets (such as your home and car) and finances.
Another benefit provided by an LLC is pass-through taxation. Unlike in a corporation structure, where owners are taxed twice, with an LLC, you’ll only pay taxes once when filing your income tax.
If you’re wondering how to start an LLC in Indiana, working with a formation service is the go-to option.
Use Software for Business Management
Handling all major functions of the business manually is a tedious and challenging process. Consider using the following tools to streamline operations:
Cost Estimation Software: A construction estimating software can help create estimates for all types of projects in a blink. Additionally, estimates can easily be edited based on the requirement of labor and materials. The software will automatically account for taxes and provide an invoice to be shared with clients digitally, and reduce the time taken to receive payments. If needed, invoices can be customized based on your brand guidelines.
Time Management Tool: In addition to working in the field, a business owner needs to attend client meetings, develop supplier partnerships, manage bill payments, and much more. Using a time management tool will help you stay on top of important deadlines and keep all stakeholders happy, as reported by Brian Tracy.
Utilize Digital Marketing
As a new handyman business, creating a buzz regarding your services is important to find clients and develop a loyal customer base. Here are two ways to create a digital presence:
Design a Website: Hire a freelance web designer to create a professional-looking website, providing clients the functionality to make appointments.
Be on Social Media: Run localized ads on Facebook and Instagram promoting your services. Even with a limited budget of $50, you can garner thousands of impressions and land numerous clients.
Creating eye-catching graphics will play a key role in grabbing customer attention on your website and social media. With just a few clicks, you can design banners online with this tool.
Starting a handyman business will be a rewarding experience for those with a penchant for skilled trades. You can opt to start with a limited set of services and work towards expanding once the business picks up.
Connect with other local entrepreneurs in Chesterton by joining the Duneland Chamber of Commerce.
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