Starting A Handyman Business in Ontario? Here’s What You Need to Know
Starting A Handyman Business in Ontario? Here’s What You Need to Know
Have you ever noticed how Canadian geese seem to have their entire life together? They fly in perfect V-formation, stick with their crew, and always know where they’re going (without Google Maps).
This is not a zoology class, and we are no experts. However, we do know that starting a handyman business in Ontario requires being Canadian goose.
You need the right tools, a smart strategy, and a clear path. So, let’s cut to the chase and see how you can start a handyman business in Ontario.
Should You Start a Handyman Business?
Starting a handyman business sounds like a dream for folks who enjoy hands-on work. But there’s more to it than knowing how to fix things.
Sure, you get to be your own boss and set your schedule, but managing your time well is a different skill to learn. Tipping the balance is easy, either by spending too much time on jobs or not enough time with family.
And let’s not forget financial aspects. A handyman business may seem like a way to gain financial freedom. However, without good money habits, you might end up job hunting again.
One smart way to test the waters? You can start part-time. Take on some jobs during evenings or weekends. That way, you can see if running your gig full-time is right.
8 Steps to Starting a Handyman Business in Ontario
Canada’s home improvement industry reached approximately $58.6 billion in sales in 2023, with Ontario leading the charge.
The province has a growing population, and homes need regular upkeep. Many people are looking for someone reliable to help with repairs and maintenance. If you have the skills, the demand is definitely there.
So, here’s how you can start a handyman business in Ontario:
1. Research the Market
Before you hang up your “Handyman for Hire” sign, it’s worth doing a little homework. Knowing your market helps you understand what people need. It shows how much they will pay and who else offers similar services.
Here’s how to get started:
Figure out your ideal customer
Who are you hoping to work with? Busy homeowners? Seniors who need help around the house? New parents with no time for repairs? Knowing this helps you focus your efforts.
Check the competition
Look at other handyman services in your area. What do they offer? What do they charge? Read customer reviews to spot what people love and what they wish were better. That’s where you can step in.
See what’s trending
Use tools like Google Trends or peek at local Facebook groups to see what kinds of home services people ask for. Are people looking for fence repairs, bathroom caulking, or TV mounting?
Talk to potential customers
If you’ve got friends, family, or neighbors in your target area, ask them what kind of help they’d pay for. A quick chat or simple survey can give you real insights.
Know your edge
Think about what you’re great at. Maybe you’re super punctual, extra tidy, or amazing with customer service. Highlight that in your marketing. We’ll talk more about marketing in a while.
Watch for new trends
Eco-friendly home improvements or energy-saving upgrades are becoming more popular. If you can tap into those areas, you might open a whole new market for yourself.
2. Develop a Business Plan
You’re not just the person fixing leaky taps and patching drywall anymore. You’re also the boss, the accountant, the salesperson, and the planner. A clear business plan can make a lot feel more manageable.
Don’t worry, it must not be fancy or full of business jargon. A solid, simple plan gives you a clear direction and helps you stay on track like the Canadian geese.
You need to decide what services you will offer. Then, choose how much to charge, either hourly or per job. Make sure this pricing helps you reach your income goals. We’ll talk pricing in detail in a while.
If you need a loan for tools, a vehicle, or other equipment, lenders will ask for your plan and basic financial projections.
Here’s what to include in your business plan:
- Your business name and mission: What are you all about? Keep it short and clear.
- Who are you serving? Define your ideal customer and where you’ll find them.
- What are you offering and how much does it cost? Be specific. This will help you maintain consistency and clear communication with clients.
- How will you get the word out? Will you rely on social media? Flyers? Referrals? Map out your basic marketing game plan.
- Have you included rough projections of what you expect to earn and spend over the next few months?
- If this business takes off, what’s your end game? Do you want to grow a team or sell the business down the road?
To dig deeper into the business plan, check out our detailed guide on the handyman business startup checklist.
3. Choose a Business Structure and Register Your Business
Picking the right setup for your handyman business in Ontario is crucial. It affects everything from your taxes to your legal responsibilities. So, you need to select a business structure.
Ontario offers several business structures, each with its own pros and cons:
Sole Proprietorship
This is the simplest and most common setup. You’re the sole owner, and while it’s easy to manage, you’re personally responsible for any debts or liabilities.
Partnership
If you’re teaming up with someone, this might be the way to go. You share responsibilities, profits, and liabilities.
Corporation
This creates a separate legal entity, offering liability protection. More complexity comes with additional paperwork and costs.
Cooperative
It’s less common for handyman services, but members can share ownership and make decisions together.
For most solo handyman businesses, starting as a sole proprietorship is straightforward and cost-effective. You can always consider incorporating later as your business grows.
Once you’ve chosen your structure, it’s time to make it official:
- Business Name: If you’re operating under a name other than your own, you’ll need to register it.
- Registration Process: Register your business online at the Ontario Business Registry. You’ll need a My Ontario Account and a ServiceOntario Account.
- Fees: Currently, registering a sole proprietorship or general partnership costs $60. Incorporation fees are higher and vary depending on the specifics.
- Name Search: Check if your desired business name is available using the Ontario Business Registry’s search tool before registering.
4. Get Licensing
Many people ask this question: “Does a handyman need a license in Ontario”?
Generally, you don’t need a specific license to operate as a handyman. Tasks like painting, minor repairs, or installing shelves typically don’t require formal certification. However, certain specialized jobs, such as electrical, plumbing, HVAC, or gas fitting, require specific licenses.
Awareness of these boundaries is important to avoid fines or legal issues. If you want to expand your services to include specialized work, consider obtaining the necessary certifications. This broadens your service offerings and enhances your credibility with clients.
Additionally, some municipalities may have their own licensing requirements. For example, a Building Renovator’s License is necessary in Toronto if you plan to take out permits for renovation projects.
5. Set up Bookkeeping
Keeping your finances in order is essential if you’re running a business in Ontario or anywhere. You need good records to file your taxes. Good bookkeeping also shows you where your money comes from and where it goes. That insight is key when deciding pricing, spending, or even growing your business.
Here’s how to get started with your bookkeeping:
Open a separate business bank account
Mixing personal and business expenses is a headache waiting to happen. A dedicated account keeps everything clean and easy to track.
Speaking of business bank accounts, if you haven’t got one, Ramp provides corporate cards. You can pay bills, manage business expenses, send invoices, and more through them.
Plus, thanks to our partnership with them, you get a $500 sign-up bonus. So, make sure to check out the link here.
Pick a system that works for you
You can go old-school with spreadsheets or use bookkeeping software like QuickBooks. Just make sure it’s something you’ll actually keep up with.
Track everything
Every dollar you make or spend should be recorded in your records. Don’t leave anything out; even small purchases add up.
Sort your transactions
Organize expenses into categories like tools, supplies, fuel, or marketing. This makes tax time way easier.
Check regularly
Compare your bookkeeping records with your bank statements. This helps find errors or missing entries before they become a problem.
Run basic reports
Tools like profit and loss statements or balance sheets help you understand your business’s performance.
Keep your receipts and invoices
These are your backups in case of an audit or to prove a deduction.
Consider a pro
If tracking numbers isn’t your thing, hiring a bookkeeper can save you a ton of stress in the long run.
6. Set Your Prices
Before you start taking on jobs, make sure you’ve got a pricing plan in place. You don’t want to be caught off guard when someone asks, “How much do you charge?”
Start by checking what other handymen are charging in your area. That’ll give you a solid baseline. But don’t just copy their rates—make sure your prices cover your costs and leave room for profit.
Here’s what to factor in:
- Overhead: Think about your ongoing expenses—like gas, tools, marketing, phone bills, and insurance. Estimate how much it costs to run your business each hour, even when you’re not on a job.
- Labor: Figure out your hourly rate based on your skills, experience, and how long a job will take. Multiply it by the estimated hours for each job to get your labor cost.
- Profit: You’re not doing this to break even. After covering your costs, make sure you’re pricing still leaves you with a decent profit.
- Taxes: Don’t forget about taxes. Determine which tax bracket you belong to. Also, find out how much you need to save for income tax and HST, if it applies to your business.
7. Develop a Marketing Strategy
By now, you’ve nailed down what services you’ll offer, who you want to work with, and how much you’ll charge. Now comes the part that makes or breaks most handyman businesses: getting people to hire you.
Yep, it’s time to figure out your marketing.
Here’s the great news: people are searching for handyman services every single day. The demand is real, and it’s not going anywhere. But here’s the catch—other handymen know this too, so you’re not the only one trying to get noticed.
Don’t let that scare you. Because here’s where you’ve got an edge: most handymen are bad at marketing. They either don’t do it or throw up a Facebook page and hope for the best. That means even putting in some extra effort can set you apart.
Your first move is to build a professional-looking website. Think of it as your online storefront. Potential customers go there to see if you’re legit, what you offer, and how to contact you.
Combine that with good online reviews and some before-and-after photos of your work. Suddenly, you look like the go-to person.
A strong online presence makes a significant impact. It helps you build trust, attract better-paying clients, and fill your schedule without chasing every lead. So, whether through Google, social media, or word-of-mouth, make sure your business appears—and shows well.
8. Buy the Tools You Need
It’s tempting to go shopping and stock up on every shiny new tool out there. But don’t drop $5,000 on gear yet. When you’re just starting, that money is usually better spent on things that bring in clients, like marketing.
Instead, build your toolbox as you go.
Say you landed a tile installation job but don’t own a tile saw yet. No problem. You can buy one when you grab the rest of the supplies or rent it for the job. That way, you’re only investing in tools you need and will use again.
Final Thoughts
Starting a handyman business in Ontario is a great way to manage your time. It can also help you earn money doing work you enjoy. But like any business, it takes planning, consistency, and a clear strategy.
By following the steps above, you’ll lay the groundwork for long-term success. Each step moves you closer to turning your side hustle (or idea) into a successful business.
At Tangent Consulting, we have helped many tradespeople and small business owners manage their finances. We help them structure their business correctly and grow with confidence. Whether you need help setting up your books, managing cash flow, or want to stop stressing about tax time, we’ve got you.
P.S. If you are reading this, it means you can have access to our free consultation for your business. Avail this for free today before we change our mind 😉
FAQs
How much does a handyman make in Ontario?
On average, handymen in Ontario earn around $25.38 per hour, with rates varying based on experience and location.
What is the most profitable handyman service?
Specialized jobs like plumbing, electrical work, and HVAC services are often the most profitable. This is because they are in high demand and require specific skills.
What is the hourly rate for a self-employed handyman in Canada?
Self-employed handymen in Canada usually charge $30 to $55 per hour. Their rates depend on their skills, services, and local market rates.