Part 1: Getting Started as a Handyman – The Essential Foundation

Starting a handyman business can be an incredibly rewarding venture, combining the satisfaction of working with your hands with the freedom of being your own boss. In this first part of our three-part series, we’ll cover the fundamental steps to establish your handyman business on solid ground.

Legal Requirements and Business Structure

Before picking up your first tool as a professional handyman, you need to handle the legal aspects of your business. Each state has different requirements, but here are the essential steps:

1. Choose a Business Structure
   • Sole Proprietorship: Simplest option, but offers no personal liability protection
   • LLC: Recommended for most handymen, provides liability protection and tax benefits
   • Corporation: More complex but offers maximum protection
2. Register Your Business
   • Choose a unique business name
   • Register with state and local authorities
   • Obtain an EIN (Employer Identification Number) from the IRS
3. Get Licensed and Insured
   • Check local licensing requirements
   • Obtain general liability insurance (recommended minimum $1,000,000 coverage)
     • Simple Business is a great place to start looking for liability insurance when you are starting out
   • Consider additional coverage like tools and equipment insurance

Next Insurance has a list of which states require a Handyman license. If you are in Texas like me you do not require a license, but you should check state and local codes as to what work you can and can not do.

Essential Skills and Services

Successful handymen typically excel in multiple areas. Here’s what you should be comfortable with:

Core Skills

• Basic carpentry
• Drywall repair
• Painting
• Basic plumbing
• Basic electrical work
• Door and window repair
• Furniture assembly

Advanced Skills (Optional)

• Tile work
• Deck building and repair
• Kitchen and bathroom remodeling
• Flooring installation

Remember: It’s better to be excellent at a few services than mediocre at many. Start with your strengths and expand your offering as you gain experience.

If you live in Fort Worth, Texas here is a cheat sheet for projects that require building permits.

Initial Investment

Starting a handyman business requires less capital than many other businesses, but you’ll still need to invest in:

1. Tools and Equipment ($2,000-$5,000)
   • Basic hand tools
   • Power tools
   • Ladder
   • Tool storage
   • Work vehicle
2. Business Essentials ($1,000-$2,000)
   • Insurance
   • Licenses and permits
   • Business cards and marketing materials
   • Basic accounting software
   • Website domain and hosting
3. Emergency Fund ($2,000-$3,000)
   • Operating expenses for 2-3 months
   • Tool replacement/repair fund

Tools

Tools are essential to starting a handyman business. Below are tools you should consider as you start your handyman business. If you do not already own them purchase them as you need them, don’t feel like you have to have them all to get started.
NOTE: You may want to consider battery operated as they will offer flexibility in locations without having to run electric extension cables.

Power Tools

• Power Drill
• Cordless Oscillating Tool
• Angle Grinder
• Circular Saw
• Miter Saw (Single bevel minimum)
• Reciprocating Saw
• Jigsaw
• Brad Nailer
• Belt Sander
• Orbital Sander
• Small Shop Vacuum
• Impact Drill
• Router

I am a fan of Ryobi because of price and I already a large collection of tools when I decided to start my handyman business. DeWalt, Milwaukee, and Makita are three other brands highly recommended. My suggestion would be to select a brand where you can interchange the batteries between tools as the batteries are what drive up the cost.

For a list of more tools to start your business visit the Handyman Startup website.

Setting Up Your Business Operations

Create systems from day one to run your business efficiently:

1. Business Planning
   • Define your service area
   • Set your rates (hourly vs. project-based)
   • Create a business plan
2. Administrative Setup
   • Set up a business bank account
   • Choose an accounting system
   • Create estimate and invoice templates
   • Develop a scheduling system
3. Communication Systems
   • Get a business phone number
   • Set up a professional email address
   • Create response templates for common inquiries

Remember: The key to long-term success is treating your handyman work as a business, not just a job.

Next Steps

In Part 2 of this series, we’ll dive deep into marketing your handyman business and building a strong client base. We’ll cover everything from digital presence to word-of-mouth strategies that work specifically for handyman services.