If you’re handy with tools and enjoy working on home improvement projects, starting a handyman business could be a great way to earn a living. Florida is one of the best states for starting a handyman business. The number of homes and businesses is constantly growing in Florida, which means there is always a need for handyman services. Handyman businesses can be very successful, but it’s important to put in the work and build up a good reputation.
In this article, we will walk you through all the steps you need to follow to start a handyman business in Florida, what kind of licenses and permits you will need, how much money you need to begin your business, where you should start looking for customers and what kind of services should you offer them.
So, without any further ado, let’s begin!
Steps to Start a Handyman Business in Florida
1. Create a business plan for your handyman business
The first step in starting your own handyman business is to create a business plan. A business plan is a document that outlines the goals and objectives of a company, as well as provides details on how you will achieve them. This document will serve as your roadmap, helping you to make decisions about everything from your target market to your marketing strategy.
It is important to write a business plan because it forces you to think about the future of your business and allows you to identify potential problems before they happen. By taking the time to create a comprehensive business plan, you’ll increase your chances of success as a handyman entrepreneur.
Here are some important things to focus on when crafting a business plan:
Startup and ongoing costs
When it comes to starting a handyman business, the initial costs can vary greatly depending on the size and scope of the operation. Assuming you already have a reliable vehicle to transport tools, it is typically possible to get started with an investment of $3,000 to $5,000.
This will cover the cost of basic tools and equipment, as well as any necessary licenses and insurance. The cost of registering an LLC will fall between $300 and $500. Liability insurance will cost you somewhere around $800.
Tools and Equipment will cost you around $2,000. Setting up a business website can cost another $400. You’ll also need to factor in the budget for marketing materials such as logo, uniform, business cards, flyers, truck decals, etc.
In terms of ongoing costs, you will need to factor in the cost of fuel, maintenance, salaries if you hire employees, and repairs for your vehicle, as well as the cost of replacement parts for any tools or equipment that break down over time. Additionally, you will need to set aside money each month for marketing and advertising. With careful planning and management, it is possible to keep your costs under control and generate a healthy profit margin.
In order to be successful, every business must identify and target a specific market. For a handyman business, the target market will consist of homeowners who need assistance with minor home repairs and maintenance tasks but are typically busy with work and other commitments and does not have the time or inclination to learn how to do home repairs themselves. As a result, they are willing to pay for the convenience of having someone else take care of the repairs.
To reach this market, the business will need to focus its advertising and marketing efforts on local print and online publications that cater to homeowners. In addition, word-of-mouth will be an important marketing tool, as satisfied customers are likely to recommend the business to their friends and neighbors. By targeting its marketing efforts carefully, a handyman business can build a strong base of loyal customers.
When it comes to setting your handyman service fees, there is no one-size-fits-all solution. Instead, you’ll need to take a number of factors into account, including your location, the size and scope of each project, and your own experience and skill level. Some handyman charges on per hourly basis, which typically ranges from $60 to $100 in Florida, while some prefer to charge on a per-job basis.
When setting your prices, it’s important to consider both your costs and the going rates in your area. You’ll need to factor in the cost of materials as well as your labor. Additionally, you’ll want to be sure that your prices are competitive with other handymen in your area. One way to do this is to research the going rates for similar services. Once you have a good understanding of the market, you can set your prices accordingly.
Keep in mind that your prices may need to be adjusted from time to time based on changes in the market and the cost of materials. By taking the time to research and set fair prices, you can ensure that your handyman business is both profitable and competitive.
For those in the handyman business, the profit potential is often very high. After all, the low overhead costs associated with being a handyman mean that a large percentage of each job’s cost can go straight into your pocket. If you pass on the cost of materials to the client, you can easily aim for a profit margin of around 90%. If you work 20 hours a week and charge $60 per hour, you can easily make $51,840 in annual profit.
2. Choose a suitable name for your company
The next step is to name your handyman business. You’ll want to make sure that the name is catchy and memorable but also professional and simple. You might want to choose something that has a strong connection to your values or philosophy as a company.
Try to avoid names that are too long or difficult to say, as those can be off-putting for potential clients. You want them to be able to tell their friends about it and remember it when they need help in the future.
Here are some useful tips to keep in mind when naming your handyman company:
1. Keep it short and catchy: A long or complicated name can be difficult for customers to remember. And if people can’t remember it on the spot, they might forget about you when they need a handyman service again!
2. Make sure it’s easy to say and spell: If people have trouble pronouncing or writing down your name, they won’t be able to remember it, which means you won’t get repeat customers!
3. Make sure it reflects who you are as a company: Are you going for a serious tone or a fun one? Is there something unique about your company that deserves to be highlighted in its name? Try thinking about these questions when brainstorming names for your business!
4. Avoid too narrow or too literal names: A name that is too specific can be limiting. You want something that represents the broad scope of your business, not something that pigeonholes you into one particular product or service.
4. Make sure the name is not already trademarked: Be sure that the name is not already trademarked by another business in your industry. You can do this by searching through the U.S. Patent and Trademark Office’s (USPTO) database for free, or you can hire an attorney to perform this search for you. If there’s another company with a similar name—even if it’s not doing exactly what yours does—you may have trouble registering a trademark for your business.
5. Check for domain name availability: Having a matching domain name is the key. You want to be able to easily find an available domain name that matches your business name.
Also read: 443 Catchy Handyman Business Name Ideas
If you’re struggling to find a good name for your handyman business, feel free to check out our naming service.
3. Form your handyman business into a legal entity
Before you can start operating your business, you need to choose the legal structure that best suits your needs and incorporate your business. There are several factors to consider, including the size and type of business, the level of liability protection you need, and the amount of paperwork you’re willing to deal with.
The most common business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. All of them have different tax implications and levels of liability protection, so it’s important to choose carefully. You’ll want to talk with an experienced business attorney about which one is right for your business and what the costs will be to get set up properly.
Sole proprietorship: A sole proprietorship is when you are the only owner of your company, and you run it under your own name. This is the simplest form of business. If you’re just starting out and don’t have much money, this is the easiest way to get going. It’s also the riskiest because it leaves your personal assets exposed if there is a lawsuit against your company or if you default on any debts and bills.
Partnership: A partnership is similar to a sole proprietorship in that the partners are personally liable for the debts and obligations of the business. However, partnerships can have more than one owner, so they can be a good choice for businesses with more than one person involved.
LLC: LLCs are separate legal entities from their owners, so the owners are not personally liable for the debts and obligations of the business. LLCs offer the advantage of limited liability for the owners, like corporations, but they are easier to set up and less formal than corporations. This is why most handyman businesses in Florida are registered as LLCs.
Corporation: A corporation is a complex legal entity that offers the greatest amount of liability protection for its owners but is also subject to a higher level of regulation. They require ongoing compliance with state and federal regulations. The major disadvantage is that corporations have a lot more responsibilities and reporting requirements than sole proprietorships or LLCs. This means you have to make sure you’re following all the necessary laws and regulations, which can be time-consuming.
4. Obtain EIN for your business
The next step is to obtain an Employer Identification Number (EIN) from the IRS. An EIN is a unique nine-digit number that is assigned to your business, and it is used for tax purposes. Your EIN is what the government uses to identify you as a business entity, and it’s required for everything from filing taxes to opening a bank account or applying for business loans.
While you can apply for an EIN online, by mail, or by fax, the fastest and easiest way to obtain your EIN is through the IRS’s online application system. You’ll need your company name and address, as well as some other information about yourself and your company, before applying for the EIN.
5. Purchase business insurance
Protecting your business should be a top priority as a handyman. Without the proper coverage, you could leave yourself vulnerable to lawsuits or other issues that could put a serious damper on your bottom line. You could be held accountable for any accidents that happen on the job, which is why business insurance is so important.
Whether your work requires a license or not, here are some types of insurance you may need:
General Liability Insurance: This type of insurance will protect you from claims made by clients and third parties for bodily injury or property damage that results from a faulty job.
Workers’ Compensation Insurance: If you plan to hire employees, it is mandatory to get workers’ compensation. This type of insurance covers injuries sustained by employees while on the job. If an employee gets injured, then this type of insurance would cover their medical bills and lost wages while they recover.
Commercial Auto Insurance: This type of insurance covers any vehicles that belong to the business (and its employees) should they be involved in an accident.
6. Open a bank account for your business
Before you can start operating your business, you need to open a business bank account. It is a valuable tool that can help you manage your company’s finances, and it can also give you a way to track your expenses and income. It’s important to choose the right account for your business, so take some time to compare your options.
Consider the fees, minimum balance requirements, and interest rates. You’ll also want to make sure that the account offers the features that you need, such as online banking, merchant services, etc. Once you’ve found the right bank, you can open it online or in person at your local bank branch.
7. Obtain the required licenses and permits for your handyman business
As a handyman operating in the state of Florida, you don’t need a license for basic services or minor repairs. For example, replacing the handles on cabinets or fixing minor electrical issues, or fixing a leaky faucet are tasks that can generally be completed by a handyman without needing additional licenses. However, for projects that involve extensive work like major renovations, electrical work, and plumbing, then you’ll need a general contractor license.
Examples of handyman jobs that don’t require a license:
- Door repairs
- Window repair
- Fixing a loose tile
- Fixing a leaky faucet
- Clearing gutters
Examples of jobs that’ll likely require a general contractor license:
- Kitchen & Bathroom Remodeling
- Installing new floors
- Building a deck
- Home Construction
The process of obtaining a general contractor license can be time-consuming and expensive, but it is worth it for handymen who want to be able to offer their customers the widest possible range of services.
8. Purchase handyman tools & equipment
As a handyman, you will need to have a wide variety of tools and equipment on hand to be able to complete the tasks that your clients require. Here are some tools and equipment that you may want to purchase:
Hand Tools Kit: You’ll want to keep a full hand tool kit on hand with all the basics, including screwdrivers, hammers, saws, wrenches, and more. A basic hand tool kit should include a claw hammer, voltmeter, knife, various sizes of drill bits, screwdrivers, a chisel, an adjustable wrench, and pliers.
Drills: Drills are another important tool for any handyman. They can be used to drill holes into walls or floorboards, as well as installing screws or bolts in place with ease!
Ladders: If you’re doing any work above ground level, you’ll definitely need ladders—you never know when they might come in handy!
PPE: Personal protective equipment (PPE) is important for keeping yourself safe while working on projects around the house—be sure to have goggles and gloves on hand at all times!
Plumbing toolbox: If you work with plumbing repairs often enough in your business that having a separate toolbox just for plumbing-related issues makes sense for your operation, then buy one.
Measuring tape: A measuring tape is one of the most basic tools in a handyman’s arsenal. A good tape measure allows you to quickly and accurately measure the dimensions of a room or piece of furniture, giving you the exact measurements you need for an accurate estimate.
Cleaning equipment: A good set of cleaning supplies is also important, as you will need to clean up after completing the work. A broom, dustpan, and dust clothes will help you clean up the mess. In addition, a vacuum cleaner can be handy for quickly cleaning up sawdust or other debris.
9. Setup a business website
Setting up a business website is an important step in establishing your brand and reaching new clients. It can be used to showcase your work, which will help you build credibility with potential clients. If your website is well-designed and easy to navigate, it can even serve as a sales tool—potential customers can see what kind of work you’ve done for other clients before hiring you for their own projects.
The site should be designed with a clean and professional layout. Be sure to list the services offered in a clear and concise manner. Also, make sure to include contact information so that potential customers can easily get in touch with you. You can also include testimonials from previous clients so that potential clients can see what other people think about your work.
Once you have a website set up, it’s important to keep it updated and relevant by adding new informational blog posts regularly. This will help bring in more traffic from search engines like Google or Bing! By following these simple guidelines, you can ensure that your business has a strong online presence.
10. Market your business
As a handyman, you offer a valuable service to your community. From repairing broken appliances to fixing leaky faucets, you help keep homes and businesses running smoothly. But in order to be successful, you need to market your business effectively.
One way to market your handyman business is by word-of-mouth. Make sure your friends and family know about your services and ask them to spread the word. If you do a good job for your customers, they’re likely to tell their friends and family about you, which can help you expand your business. You can also distribute flyers in your neighborhood or local businesses.
The next step is to have a strong online presence. This means having a website and social media profiles where people can find out more about your services. It also gives potential customers an easy way to contact you and request quotes or book appointments with ease. Also, don’t forget to set up Google Business profile so that people can find you when they search “Handyman near me” in Google.
You can also use Google Local Service Ads. These ads allow you to target the demographics that are most likely to hire you, and they’re great for getting your name out there and building your brand. Rental owners and property management companies often need to have things done around their homes. Partnering with them can bring in a steady flow of work.
Targeting the senior demographic can also be an effective marketing strategy for handymen. Seniors are often looking for help around their homes and are willing to pay for it, so consider targeting this group if you see an opportunity there!