A huge difference exists between identifying that you have a skill that can make you money and setting up a handyman business with each step of the way chalked out in order. Being a Handyman in NYC is one thing but to start a business is no child’s play. This article will help you to consider and work on all the aspects of starting a handyman business for yourself and ensure success.
- Check whether your services are in high demand
While you can set up a handyman business for yourself, if there is not a sizeable market for your services, your investment will quickly start making losses for you. For example, if you are Handyman in Manhattan or working in a city where there is a handyman service on each block, you will be facing stiff competition to get clients for your business. Alternately, if there is not a single handyman business for many miles altogether, then you can quickly establish yourself as the handyman expert.
You should do thorough online and on-ground research before you start a handyman business. Make sure that your services are in demand. Otherwise, you can end up making losses in less than a year.
- Figure out what your competitors are doing
Successful businesses have already removed the pain points of starting a running a new business and it is beneficial to learn from them. Look at the website or online presence of your competitor and check how they are marketing their services. You can even ask a local handyman to accompany you for a coffee or a beer and ask him for advice on how to go about the business.
Just remember that if there are a lot of handyman businesses in your area, then you might want to consider the first pointer of this article.
- Buckle up for working in multiple job roles
As a handyman in NYC, you will be able to take care of the service side of the business. But to run a handyman business successfully will require you to fill into multiple job roles such as a marketer, an office manager, an accountant, a bookkeeper, and a lawyer. You will be shuffling between these roles almost daily. In fact, on some days, this extra work will take more of your time than actual handyman work.
This information is not given to sow seeds of doubt, but rather to help you prepare yourself for a highly successful start to your handyman business.
- Insurance for your business
Business insurance is a must for all handyman jobs as it helps safeguard you from claims related to property damage and accidents. If you get injured or contract an illness that can be attributed to your work, then the insurance can pay for the treatment. This goes for you and your employees.
- Calculate the start-up cost
The start-up costs for a handyman business can be kept low, especially if you have your tools. Moreover, once you start generating revenue by acquiring projects, you can always add more tools at a later stage. A fair estimate would be $2000-$4000 in start-up costs for a new handyman business.
- Develop a business plan
Here you must list down all that you want to achieve through your handyman business. A business plan will be a written checklist of where you will be after six months, one year, and five years from the day of starting your business.
Some questions that can help you start preparing a business plan are:
- Where will your business be located?
- How many employees will your business employ?
- What is a realistic number of clients for your business?
- How much profit will your business be making?
- From where will you get most of the work?
As your business progresses, you can adjust the milestones. But do remember one thing – if you are constantly adjusting milestones, then your business outlook might not be realistic.
- Licensing
Some states may require you to register for and get a handyman license which shows that you have been authorized by the civil administration to perform specific work. Although each state has its policies, for working on larger projects, this license will be required. Some Handyman in NYC jobs will also need a contractor license if you want to work on them.
- Customer Acquisition
Once your research is complete and you have identified that your services are in high demand, you will need to reach out to potential customers.
Listing your services on business listing sites such as Craigslist can sound exciting but do remember that almost every other handyman in your competition is listed on those sites as well. This will make you compete more with the established service providers for small amounts of revenue.
Instead, focus on getting your presence on websites like HomeAdvisor and NextDoor. These websites connect you with your local neighborhoods which increases the chances of your potential customers noticing you.
- Calculate your hourly rate
One of the biggest mistakes made by handymen is that they do not have a pricing plan in place and instead choose to charge arbitrary rates and see what works for them.
A more professional approach is to figure out how much time is required to perform different tasks. If you are unable to figure out the time required, you can always try to ask another handyman for their feedback.
Moreover, the hourly rates do not need to be considered as set in stone. You can always increase your hourly rates annually to reflect on your growing experience.
While a handyman business is not easy to start, if you plan properly and execute your planning with thorough preparation, you can successfully start and run a handyman business.
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