The Only Handyman Business Startup Checklist You Need
Have you ever tried setting up a tent in the dark without lights? Probably not! That’s exactly what starting a handyman business looks like when you don’t have a solid plan.
The good news is you just need a handyman business startup checklist to start your business. This checklist is your flashlight in the dark, guiding you step by step so you can build a profitable handyman business.
So, let’s see what you need to do.
Are you Ready to Start a Handyman Business?
No, this is not a fancy video game intro asking, “Are you ready?” We are asking this question because we know you’re ready to start—but are you really?
Before starting a handyman business, you need to evaluate and ask yourself some important questions. These include:
What Are Your Specialties?
If you really want to build a profitable business, it pays to focus on your strengths. Are you the go-to guy for drywall repair? A wizard with flooring? A pro at assembling furniture? Identifying your niche helps you stand out and attract the right clients.
Are You Ready for the Business Side of Things?
You’ve got the handyman skills—but what about the not-so-fun parts? We are talking about things like invoicing, scheduling, permits, and customer service? Are you ready to handle the backend operations?
Do You Have the Necessary Funds?
No, you don’t need a fortune to start a handyman business—especially if you already have some tools. But you do need some runway money to keep things moving. Think about vehicle costs, insurance, marketing, and those unexpected expenses that will pop up.
This is your reality check before taking the plunge. Answer these questions now, and you’ll save yourself a ton of stress later.
Handyman Business Startup Checklist
The difference between a thriving handyman business and one that is barely even—it’s preparation. That’s why we’ve put together this ultimate handyman business startup checklist to help you avoid the guesswork and build a profitable business.
1. Create a Business Plan
The not-so-funny part of starting a business is that many startups fail due to lack of planning. That’s why you need to plan everything. A business plan isn’t just a boring document; it acts as a guide. It outlines everything from your target market and executive summary to your marketing strategy and financial projections.
You need to take your time with this step. Do your research, crunch the numbers, and make sure you have a solid business plan before you start spending money on tools, marketing, or anything else. (Don’t worry—we’ll talk about handyman marketing soon.)
2. Register Your Business
Here’s something you might not have thought about, but it’s an important part of running a business. The right business structure can either protect your personal assets or leave them open to risk.
When starting your handyman business, you’ll typically have two main options:
- Sole Proprietorship: The simplest setup with minimal paperwork and costs. But you and your business are legally the same. That means if something goes wrong (like a lawsuit or unpaid debt), your personal assets—car, house, savings—could be on the line.
- Limited Liability Company (LLC): Requires more paperwork and upfront costs but offers legal protection and tax benefits. If anything happens, your personal assets stay safe, and your business stands as a separate entity.
If you’re just starting and want to keep things simple, a sole proprietorship might work. But an LLC is often worth the investment if you’re serious about growth and protecting yourself long-term.
Whichever you choose, make sure to officially register your business with your state and get any required permits or licenses.
3. Get the Required Licensing
Did you know that working as an unlicensed handyman in some states could land you a fine of up to $5,000? It’s not exactly the kind of risk you want to take when starting a business.
The good news is not every state requires a handyman license. But that doesn’t mean you can just grab a toolbox and start charging clients. Different states have different rules, and you’ll need to know exactly what’s required in your area. For example, a handyman license isn’t needed in California, but individual projects must stay under $500.
Other states might require a general contractor license, local business permits, or additional certifications. You should check with your state licensing board and local authorities to make sure you’re compliant.
Even if your state doesn’t require a license, getting one is still smart. It makes your business look more professional, builds trust with clients, and can open doors for bigger jobs in the future.
4. Get Funded
You’ve got the skills, the license, and a market hungry for your services—so you’re almost ready to roll. But wait, starting a handyman business isn’t completely free.
You’ll need some capital to cover essentials like tools, insurance, marketing, and transportation. If you already have the cash, great! But if not, don’t worry—there are plenty of ways to get the funding you need:
- Business Loan: A small business loan or a business line of credit can help you cover initial costs while giving you time to pay it back.
- Personal Loan: Friends and family may be willing to invest in your business in exchange for a stake (or just because they believe in you).
- Credit Cards: A business credit card can help with cash flow, but be smart about it. Look for low interest rates and cashback rewards, and make sure you pay it off each month to avoid debt piling up.
Speaking of business credit cards, if you haven’t got one, Ramp provides corporate cards, and through it, you can pay bills, manage expenses, send invoices, and so much more. Plus, it gives you a $500 sign-up bonus, thanks to our partnership with them. So, make sure to check out the link here.
- Government Funding: The US Small Business Administration (SBA) and the Government of Canada both offer funding programs, grants, and low-interest loans for small businesses. It’s worth checking to see if you qualify.
5. Decide the Services You’ll Offer
Not every handyman does everything—and that’s a good thing. The more focused your services are, the easier it is to market yourself, price your work, and attract the right customers.
But before you start saying “yes” to every job, ask yourself:
- What services am I skilled at?
- What jobs do I actually want to take on?
- Are there any high-demand services that could be a goldmine?
Here are some of the most common (and profitable) services to consider adding to your handyman business:
- Furniture assembly and wall anchoring
- Painting and staining
- Hanging wall art and shelves
- Drywall repair
- Bathroom and kitchen leak fixes
6. Identify Your Ideal Customer
Not every customer is a good customer. Some will nickel-and-dime you over every quote, and others will gladly pay what you’re worth, recommend you to their friends, and call you back for more work. The trick is figuring out who those ideal customers are and focusing on them.
Ask yourself:
- Do I want to focus on quick residential repairs for homeowners?
- Or do I want to target property managers and businesses that need ongoing maintenance?
The sooner you define your Ideal Customer Profile (ICP), the easier everything becomes. Instead of trying to be everything to everyone, you’ll attract the right clients—the ones who value your work and are happy to pay for it.
7. Buy the Tools You’ll Need
A handyman without tools is like a chef without knives—you won’t get very far. No matter the job, having the right equipment, a reliable vehicle, and access to supplies is non-negotiable. The best part is you don’t need to buy every tool—just the essentials to get started.
Here’s what you’ll need:
Tools and Equipment
- Extension ladder
- Basic toolset (hammer, screwdrivers, wrenches, pliers)
- Cordless drill
- Handsaw
- Sander
- Safety gear (gloves, goggles, knee pads)
Transportation
Local Suppliers
Pro tip: Start with the basics, then invest in specialized tools as your business grows.
8. Set Your Prices
Pricing your handyman services isn’t just about throwing out a number that “feels right.” If you charge too little, you’ll be constantly working. On the other hand, if you charge too much, people can find affordable handymen.
Before you take on your first job, create a pricing structure that covers all your costs and ensures you’re making a solid profit. Here’s what to consider:
- Overhead Costs: Factor in expenses like marketing, phone bills, transportation, insurance, and other recurring costs.
- Labor Costs: Don’t just guess your hourly rate. Calculate it by estimating how long a job will take and multiplying it by what your time is actually worth.
- Profit Margin: After covering all expenses, what’s left is your actual profit.
- Taxes: Know your tax bracket and set aside money accordingly. (Yes, even self-employed handymen have to pay up.) Don’t forget sales tax, if applicable, and plan for tax season.
9. Spread the Word
You could be the best handyman in town, but if nobody knows you exist, you won’t have any jobs to book. But marketing doesn’t have to be complicated—you just need to show up where your potential customers already are. Here’s how to get the word out:
- Word of Mouth: The best marketing is free. Happy customers = more referrals. Ask clients to spread the word and leave positive online reviews.
- Social Media Presence: Open business accounts on Facebook, Instagram, and even TikTok (yes, people love DIY and home improvement content).
- Google and Business Listings: Set up a Google Business Profile so people can find you when they search “handyman near me.” Also, list yourself on Yelp for Business and Bing Places to maximize visibility.
- Local Advertising: Old-school but effective. List your services in community newspapers, bulletin boards, and local online classifieds where homeowners actually look for help.
10. Set Up Accounting
Remember your first job when payday rolled around and your check was “delayed”? Now imagine running your own business and not knowing where your money is going.
That’s why setting up a solid accounting and bookkeeping system from day one is non-negotiable. You don’t want to wake up one day realizing you’ve been undercharging, overspending, or, worse, filing taxes without proper records.
You have two options here;
a. You can use software like QuickBooks.
b. You can hire a professional who can take the guesswork out of the equation. They’ll help you not only in accounting but also in growing your business. Even if you start with DIY accounting, consider consulting a professional at least once a year to make sure everything is on track.
We recently discussed outsourced accounting for startups in 2025. So, make sure to check that out after reading this.
How Profitable Is a Handyman Business?
Short answer? Pretty profitable—if you price yourself right.
The average handyman charges around $50-80 per hour, but that number isn’t set in stone. Your actual income depends on factors like:
- Your Location
- Your Experience
- Your Services
At the end of the day, your goal isn’t just to make money—it’s to run a business that pays you well, covers overhead (tools, gas, marketing, insurance), and keeps your clients happy.
Final Thoughts
We know starting your own handyman business can be tough – but it can also be one of the most rewarding things you could ever do. Now that you have the only handyman business startup checklist you’ll ever need, all that’s left to do is act.
Speaking of acting, you need the right expertise to manage your handyman business. Without them, your business can become the house of cards. Tangent Consulting has years of experience as a fractional CFO, business coach, and tax consultant. With us, you don’t need to hire an accountant or business coach separately; you can get both in one place.
P.S. If you are reading this, you can have access to our free consultation for your business. Avail this for free today before we change our mind 😉
FAQs
What do most handymen charge per hour?
Most handymen charge around $50-80 per hour, but rates vary based on location, experience, and job complexity.
What is the best skill for a handyman?
The best skills in carpentry, plumbing, electrical work, and problem-solving can set you apart and increase your earning potential.
What is a handyman calculator?
A handyman calculator is a pricing tool for estimating job costs, including labor, materials, and overhead.