write a handyman business plan

Handyman Business Plan Template

Written by Dave Lavinsky

Handyman Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their handyman companies.

If you’re unfamiliar with creating a handyman business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a handyman business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Handyman Business Plan?

A business plan provides a snapshot of your handyman business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Handyman Business

If you’re looking to start a handyman business or grow your existing handyman company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your handyman business to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Handyman Businesses

With regards to funding, the main sources of funding for a handyman business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for handyman companies.

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How to write a business plan for a handyman business.

If you want to start a handyman business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your handyman business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of handyman business you are running and the status. For example, are you a startup, do you have a handyman business that you would like to grow, or are you operating a chain of handyman businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the handyman industry.
• Discuss the type of handyman business you are operating.
• Detail your direct competitors. Give an overview of your target market.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of handyman business you are operating.

For example, you might specialize in one of the following types of handyman businesses:

• Plumbing Handyman Business: Specializing in light plumbing services such as fixing a water leak or replacing a garbage disposal.
• Drywall Installation Business: Specializing in installation, drywall repair services, and re-finishing drywall.
• Fixture Replacement Business: Specializing in replacing fixtures including cabinetry, ceiling fans, lighting, and kitchen and bathroom faucets.
• Painting Business: Specializing in painting and patching interior and exterior walls.
• Tiling Business: Specializing in tile installation, replacement, and waterproofing.

In addition to explaining the type of handyman business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of repeat clients, reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the handyman industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the handyman industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the handyman industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your handyman business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners, property managers, schools, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of handyman business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target market. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other handyman businesses.

• What types of customers do they serve?
• What type of handyman business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to acquire your product or schedule handyman service?
• Will you offer products or handyman services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways to establish a competitive edge and document them in this section of your plan.  

Marketing Plan

Product : In the product section, you should reiterate the type of handyman company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide plumbing, electrical, painting, drywall, or other construction services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your handyman company. Document where your company is situated and mention how the site will impact your success. For example, is your handyman business located in a busy retail district, an industrial district, a standalone office, or purely online? Discuss how your site might be the ideal location for your target market.

Promotions : The final part of your handyman marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your handyman business, including answering calls, scheduling appointments with clients, billing clients, and collecting payments.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your handyman business to a new city.  

Management Team

To demonstrate your handyman business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing handyman businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a handyman business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.  

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 clients per day? Will you offer discounts for referrals? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your handyman business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a handyman business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of certifications you’ve obtained.  

Writing a business plan for your handyman business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the handyman industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful handyman business.  

Handyman Business Plan Template FAQs

What is the easiest way to complete my handyman business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your handyman business plan.

How Do You Start a Handyman Business?

Starting a handyman business is easy with these 14 steps:

• Choose the Name for Your Handyman Business
• Create Your Handyman Business Plan
• Choose the Legal Structure for Your Handyman Business
• Secure Startup Funding for Your Handyman Business (If Needed)
• Secure a Location for Your Business
• Register Your Handyman Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Handyman Business
• Buy or Lease the Right Handyman Business Equipment
• Develop Your Handyman Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Handyman Business
• Open for Business

Learn more about how to start your own handyman business .

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Other Helpful Business Plan Articles & Templates

Handyman Business Plan Template

Written by Dave Lavinsky

Handyman Business Plan

You’ve come to the right place to create your Handyman business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Handyman businesses.

Below is a template to help you create each section of your Handyman business plan.

Executive Summary

Business overview.

Fix-It Pro Services is a startup company located in Augusta, Maine. The company is founded by Jimmy Larkin, who has experience in multiple areas of home repair and services Now, with the expertise of knowledge and business acumen, he has determined he can confidently start and effectively grow a successful Fix-It Pro Services company. Jimmy believes his experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of home repair and home service practices will provide everything needed for long-term growth and profitability.

Fix-It Pro Services will provide a comprehensive array of products and services for a wide variety of clients. Fix-It Pro Services will be a one-stop shop, providing for the specific needs of each client while supporting the strategic goals of the company. Fix-It Pro Services will be the ultimate choice in Augusta for clients to ensure that every need of the customers is fully and completely met.

Product Offering

The following are the services that Fix-It Pro Services will provide:

• General repairs and maintenance
• Plumbing and electrical work
• Carpentry and woodworking
• Painting and drywall repair
• Unique services in wallpapering and wall treatments
• Day to day software management system of all projects, guaranteeing on-time completion of projects

Customer Focus

Fix-It Pro Services will target all residents within the greater Augusta region. They will target owners of office buildings, apartment complexes, and commercial buildings, in addition. They will also target those individuals who have residential properties that are rentals and often need repair or painting to prepare for new renters who will occupy the homes. No matter the client, Fix-It Pro Services will deliver the best service and timely completion of projects.

Management Team

Fix-It Pro Services will be owned and operated by Jimmy Hawkins. He recruited his brother and former handyman assistant, Tommy Hawkins, to be his assistant manager of operations and help oversee the handyman projects overall.

Jimmy Hawkins is a professional handyman with over twenty years of experience in residential and commercial properties. Whether repair or maintenance work is required, Jimmy has the expertise and capability to fix or replace items and building components with professionalism and excellent references from former clients.

Tommy Hawkins has served as the assistant to Jimmy Hawkins in his former position and has been in that position for ten years. He graduated from Augusta Community College with an Associates Degree in Electrical Repair. Tommy has concentrated on electrical repair services since his graduation and has completed over one hundred repair contracts for residential and commercial clients during the past ten years. He will take on the role of assistant manager of operations in the new company.

Success Factors

Fix-It Pro Services will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Fix-It Pro Services
• Comprehensive menu of services and a full slate of capabilities within the professional handyman arena. Such services include:
• HVAC maintenance
• Appliance installation and repair
• On occasion, landscaping and outdoor maintenance service are offered
• Unique wallpaper and wall treatment services are provided upon request
• Fix-It Pro Services offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Fix-It Pro Services is seeking $200,000 in debt financing to launch its professional handyman company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Fix-It Pro Services.

Company Overview

Who is fix-it pro services.

Fix-It Pro Services is a newly established, full-service professional handyman company in Augusta, Maine. Fix-It Pro Services will be the most reliable, cost-effective, and efficient choice for residential and commercial clients in Augusta and the surrounding communities. Fix-It Pro Services will provide a comprehensive menu of products and services for any client to utilize. Their full-service approach includes a comprehensive wallpaper and wall treatment special application and repair service.

  Fix-It Pro Services will be able to quickly and efficiently provide services for all clients. The team of professionals are highly qualified and experienced in handyman projects and maintenance. Fix-It Pro Services removes all headaches and issues of property maintenance and repair and ensures all issues are taken care of expeditiously while delivering the best customer service.

Fix-It Pro Services History

Fix-It Pro Services is owned and operated by Jimmy Hawkins, a former handyman who worked for a national handyman company as a manager of residential and commercial services for fifteen years. Jimmy built a large portfolio of properties that were entrusted to his care by clients who experienced Jimmy’s very high degree of professionalism and valuable repair and overall property services. Jimmy has requested that his brother, Tommy, join him in the company, creating a professional duo with over twenty years of experience behind them and a full portfolio of customers waiting to join them in their new company.

Since incorporation, Fix-It Pro Services has achieved the following milestones:

• Registered Fix-It Pro Services, LLC to transact business in the state of Maine.
• Has a contract in place for a 10,000 square foot office at one of the midtown buildings
• Reached out to numerous contacts to include Fix-It Pro Services.
• Began recruiting a staff of two and office personnel to work at Fix-It Pro Services.

Fix-It Pro Services

The following will be the services Fix-It Pro Services will provide:

Industry Analysis

The handyman industry is expected to grow over the next five years to over $315 billion. The growth will be driven by an increase in homeownership as the population grows. In addition, the handyman industry will grow as commercial properties are utilized for expanding technology and commercial concerns. Costs will likely be reduced as repairs or replacement of items will be conducted via software management applications and technology not yet utilized. The costs will also be reduced by an increase in self-employed repair services as individuals move into positions that offer work-life balance.

Customer Analysis

Demographic profile of target market.

The precise demographics for Fix-It Pro Services are:

Customer Segmentation

Fix-It Pro Services will primarily target the following customer profiles:

• Residents within the greater Augusta region
• Owners and managers of commercial buildings
• Owners of apartment buildings
• Owners of residential properties

Competitive Analysis

Direct and indirect competitors.

Fix-It Pro Services will face competition from other companies with similar business profiles. A description of each competitor company is below.

Handyman-in-a-Hurry

Handyman-in-a-Hurry is a national chain of handyman franchises with franchisees who own and operate businesses within various geographic locations. The franchisee, Taylor Tomkin, operates the Augusta location business; however, the national franchisor company oversees the products used, repair services offered, and marketing and brand messaging. Taylor Tomkin started the company in 1998 and has continued in the franchisor/franchisee relationship during the past several years. The company has a solid following of clients who trust Taylor and Handyman-in-a-Hurry, in part due to the national franchise connection and national, on-going marketing efforts.

Handyman-in-a-Hurry does not repair or maintain outdoor landscaping or irrigation, nor does Handyman-in-a-Hurry offer services for wallpapering or wall treatments. The roster of services includes general repair and electrical services, as needed.

The Service Station

Pinky and Charlie Staton started The Service Station ten years ago while the housing industry was booming in the Augusta region. Their company grew quickly as they serviced new residential homes with moving in services, electrical hookups, and set-up of appliances. As the housing industry slowed during recent years, The Service Station has focused more on general repairs and residential painting.

Pinky and Charlie Staton were experienced handyman service providers prior to opening their company. Together, they managed a large residential complex for a nationally-known celebrity homeowner. The multiple-acreage property with several residences and outbuildings required constant repairs and upkeep. Exterior landscaping and maintenance included the twenty-acre complex and, as a result, Pinky and Charlie brought a high level of expertise to the handyman industry.

The Service Station is housed in a former gas station, which lends itself to the name of the company and the owners offer the unique advantage of attracting current and new customers by serving coffee and snacks in one of the converted repair bays of the station on a weekly basis. Homeowner courses in repair and maintenance are offered by Pinky and Charlie at each gathering.

Handyman Haven

Handyman Haven was started in Augusta, Maine in 2018 by Darren Woods. Darren, a former property manager for a large Augusta company, oversees the maintenance and repair of residential home rental properties in the region. Services include move-in/move-out cleaning, painting, wall repairs, electrical installation and other general repair or improvement services for rental properties.

Handyman Haven has produced a business strategy that operates with yearly contracts between rental owners and Handyman Haven. The strategy provides for monthly payments irrespective of general repairs needed and effectively spreads the cost of the residential upkeep over twelve months during each contracted period. Yearly contracts are updated each January and are reflective of the age and condition of each residence. Rental owners may contact Handyman Haven as needed for repairs, painting or other services without incurring additional costs.

Competitive Advantage

Fix-It Pro Services will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Fix-It Pro Services will offer the unique value proposition to its clientele:

• Highly-skilled management with extensive handyman expertise.
• Software management that tracks and schedules appointments, offering customers the ease of online appointments and cancellations, as well as up-to-the-minute tracking of repair and service personnel.
• Unbeatable pricing to their clients; they will offer the lowest pricing in the city.

Promotions Strategy

The promotions strategy for Fix-It Pro Services is as follows:

Word of Mouth/Referrals

Fix-It Pro Services has built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients. The contacts and clients will follow them to their new company and help spread the word of Fix-It Pro Services.

Professional Associations and Networking

Jimmy Hawkins will build on existing client relationships to create new opportunities within associations and trade groups of the handyman industry. He will enter into leadership roles in these groups and encourage new business from these relationships.

Print Advertising

Fix-It Pro Services will offer via a direct mail piece a “first month” discount for all new clients. The piece will be mailed two weeks before the opening of the company and will cover the entire Augusta region. In addition, clients who choose to sign contracts for extended coverage of services (12-18 months), will receive a sizable discount on services if they choose the coverage within the first two months of the company opening.

Website/SEO Marketing

Fix-It Pro Services will fully utilize their website. The website will be well organized, informative, and list all the services that Fix-It Pro Services provides. The website will also list their contact information and highlight their unique wallpapering and wall treatment services . The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “handyman company” or “handyman near me,” Fix-It Pro Services will be listed at the top of the search results.

The pricing of Fix-It Pro Services will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Fix-It Pro Services. Operation Functions:

• Jimmy Hawkins will be the owner and president of the company. He will oversee all staff and manage client relations. Jimmy has spent the past year recruiting the following staff:
• Tommy Hawkins has served as the assistant to Jimmy Hawkins in his former position for ten years. He graduated from Augusta Community College with an Associates Degree in Electrical Repair. He will take on the role of assistant manager of operations in the new company.
• Sue Rodgers will take on the role of Marketing Manager and will provide all marketing for Fix-It Pro Services.

Milestones:

Fix-It Pro Services will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Fix-It Pro Services
• 6/1/202X – Finalize contracts for Fix-It Pro Services clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Fix-It Pro Services office
• 7/1/202X – Fix-It Pro Services opens its doors for business

Tommy Hawkins has served as the assistant to Jimmy Hawkins in his former position and has been in that position for ten years. He graduated from Augusta Community College with an Associates Degree in Electrical Repair. Tommy has concentrated on electrical repair services since his graduation and has completed over five thousand repair contracts for residential and commercial clients during the past ten years. He will take on the role of assistant manager of operations in the new company.

Financial Plan

Key revenue & costs.

The revenue drivers for Fix-It Pro Services are the fees they will charge to customers for their services and products.

The cost drivers will be the overhead costs required in order to staff Fix-It Pro Services. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 80
• Average Revenue per Month: $26,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Handyman Business Plan FAQs

What is a handyman business plan.

A handyman business plan is a plan to start and/or grow your handyman business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Handyman business plan using our Handyman Business Plan Template here .

What are the Main Types of Handyman Businesses?

There are a number of different kinds of handyman businesses, some examples include: Plumbing Handyman Business, Drywall Installation Business, Fixture Replacement Business, Painting Business, and Tiling Business.

How Do You Get Funding for Your Handyman Business Plan?

Handyman businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Handyman Business?

Starting a handyman business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 1. Develop A Handyman Business Plan - The first step in starting a business is to create a detailed handyman business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your handyman business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your handyman business is in compliance with local laws. 3. Register Your Handyman Business - Once you have chosen a legal structure, the next step is to register your handyman business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 4. Identify Financing Options - It’s likely that you’ll need some capital to start your handyman business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 7. Acquire Necessary Handyman Equipment & Supplies - In order to start your handyman business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your handyman business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful handyman business: How to Start a Handyman Company

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Handyman Business Plan

Fixing small problems around the house, tinkering with stuff, and repairing things to make them work as well as new, might seem a simple job.

But it can only be done by someone who has the skill, eye for detail, and passion for it. After all, these small things can make life terribly inconvenient if not fixed the right way.

If you are planning to start a new handyman business, the first thing you will need is a business plan. Use our sample Handyman Business Plan created using Upmetrics business plan software and write your business plan in no time.

Before you start writing your business plan, spend as much time as you can reading through some samples of Cleaning, Maintenance & Repair Business Plans .

Read on to find out more about the industry and important things to take care of before you start your business.

Industry Overview

The handyman services market stood at a global value of 281.65 billion dollars in 2018 and has continued to grow ever since due to the increase in the number of people who look for repair services online.

Handyman services are high in demand due to their multipurpose nature. Most of the services are charged either on a per-hour basis or based on how challenging the job is.

From fixing curtains, and bulbs to maintenance services, a handyman can take care of everything, making their services in demand.

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Things to Consider Before Writing a Handyman Business Plan

Find out the market for your services.

As the handyman business covers a variety of services, it is a good practice to figure out what services are in demand and how they are procured. It is also advisable to see what localities need handyman services the most and can help you have a profitable business.

Research your competitors

Carry out thorough research about who your competitors are, what services they offer, and how they reach out to their target audience. This gives you a head start on the services you should and potentially would have to offer, it helps you figure out a better marketing strategy, and also gives you a chance to do something that’ll help you stand apart from your competition.

Have handy skills to take up unexpected tasks

Handyman services are known for and sought after due to their multipurpose nature. Hence, you need to stay prepared for taking up unexpected tasks that come your way. It is necessary to have both the skill and the right equipment for such problems.

Market research and competitive analysis can help you with this too.

Get permits and insurance

Having the proper legal licenses ensures that you stay on the right side of the law. And having insurance is essential for a handyman business due to the nature of the work that brings about claims of accidents and property damage.

Insurance helps rest assured and focus on what really matters.

Write Your Business Plan

If you have the talent and skill for fixing such problems, you can make it your profession through a handyman business.

All you need to do is find a way to get customers and a handyman business plan.

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample handyman business plan for you to get a good idea about how a perfect handyman business plan should look like and what details you will need to include in your stunning business plan.

Handyman Business Plan Outline

This is the standard Handyman business plan outline which will cover all important sections that you should include in your business plan.

• Market Validation
• Short-Term (1 -3 Years)
• Long Term (3-5 years)
• Mission statement
• Keys to success
• Fixit – 3-Year Revenue Highlights
• Company Ownership/Legal Entity
• Interior Operating Facilities
• Hours of Operation
• Startup summary
• Fixit will offer the following services
• Customer Service
• Market segmentation
• Market Trends
• Fixit Market Distribution
• Competitive Advantage
• SWOT analysis
• Marketing and Promotion Programs
• Positioning Statement
• Marketing Channels
• Pricing strategy
• Organization chart
• Management Team
• Hiring plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this handyman plan into your business plan and modify the required information and download your handyman business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample handyman business plan

Need help writing your business plan from scratch? Here you go;  download our free handyman business plan pdf  to start.

It’s a modern business plan template specifically designed for your handyman business. Use the example business plan as a guide for writing your own.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Last Updated on January 3, 2024 by Arif Chowdhury

Did you know that over 50% of small businesses fail within their first five years? If you’re one of the many handymen looking to start or expand your business, this statistic about homeowners might make you pause.

With well-crafted plans for your products and strategic partnerships in place, you can significantly increase your chances of success and attract a larger customer base.

An overview of your handyman company’s products is essential for a comprehensive business plan . It serves as the roadmap for guiding your operations and decision-making processes, particularly in the area of repair services.

It helps you set clear goals, measure progress, and stay on track towards achieving them. Moreover, a solid business plan also plays a crucial role in attracting strategic partners and securing funding for your company. It ensures customer satisfaction and helps in determining the appropriate fee for your venture.

Here is the download link for your Handyman Business Plan PDF Template.

We’ll explore how business plans can help small business owners navigate the challenges and seize opportunities in this competitive industry.

So let’s get started and discover how to create a winning blueprint for your handyman business.

Overview of a Comprehensive Handyman Business Plan

A comprehensive handyman business plan is like a roadmap for your complete handyman service. It lays out all the details and specifics that are crucial for the success and growth of your company.

It is important to understand the fee and the percentage associated with each line. Let’s dive into the key sections that should be included in this company’s plan, which has a fee attached to it.

1. Executive Summary

The executive summary is like the elevator pitch for your business. It provides an overview of your company, highlighting its mission, vision, and goals.

This section should capture the attention of potential investors or lenders by showcasing the unique value proposition of our handyman services as a company.

2. Company Description

Describe what sets our company apart from competitors and explain how we plan to meet the needs of our target market with our handyman services. As the handyman next door, we are dedicated to providing top-notch services to our customers.

Include details about the services our handyman next door company offers, such as home repairs, maintenance, installations, or renovations. Contact us for all your handyman needs.

3. Market Analysis

Conducting a thorough market analysis is essential to understand your target audience and competition. Research local demographics, and trends in the handyman industry, and identify gaps or opportunities in the market for your company.

This analysis will help your company determine pricing strategies and customer acquisition methods for your handyman services.

4. Organization Structure

Outline the organizational structure of your handyman company business in this section. Specify roles and responsibilities for each team member or contractor involved in providing services to clients in the company.

Whether it’s a handyman next door or any other contractor, it’s important to clearly define their tasks and duties. A well-defined structure ensures smooth operations and efficient service delivery for a company offering handyman services.

5. Services Offered

Clearly define the range of services your handyman company offers. Whether it’s fixing plumbing or electrical issues, performing general home maintenance tasks, or repairing systems – make sure to highlight these services provided by our company in detail.

6. Marketing Strategies

Marketing is crucial for attracting customers to your handyman company. Identify effective marketing channels such as online platforms (website, social media), local advertising (flyers, posters), or partnerships with local businesses (real estate agencies).

Develop strategies to promote the company’s brand awareness and attract new clients consistently for our handyman services.

7. Financial Projections

This section provides an overview of the financial aspects of your handyman company. Include projected revenue, expenses, and profitability for our company’s handyman services over a specific period.

When creating projections for a handyman services company, it’s crucial to be realistic and take into account factors such as pricing, overhead costs, and market demand.

Recommended Reading: Candle Business Plan PDF Template (Free Download)

Step-by-Step Guide to Creating a Handyman Business Plan

Defining the vision and mission of your handyman company is the first crucial step in creating a successful business plan. Your vision for your handyman services should outline what you want to achieve with your business, while your mission statement should reflect the purpose and values that drive your company.

Next, conduct thorough market research to gain insights into your target audience, competitors, and the handyman services company. Identify who your potential handyman services customers are, their needs, preferences, and pain points. This information will help you tailor your services to meet their demands effectively.

Once you have a clear understanding of your target audience, it’s time to determine the services you will offer to your target audience. Consider customer demand and industry trends when deciding on the range of services you’ll provide. Offering a variety of services can attract more customers and increase revenue opportunities for a man.

Developing a robust marketing strategy is essential for promoting your handyman business effectively. Start by creating an online presence through social media platforms and a professional website for handyman services. Utilize local advertising channels such as flyers, newspaper ads, or radio spots to reach potential customers in your area, targeting men.

Networking is another powerful tool in growing your handyman business. Attend trade shows or local events where you can connect with other professionals, in related industries or potential clients who may require your services. Building relationships with other individuals, such as a man, can lead to valuable referrals and partnerships that benefit both parties involved.

Consider these key points when creating a marketing plan for your handyman business:

• Utilize online platforms: Establish an active presence on social media platforms like Facebook, Instagram, or LinkedIn to showcase completed projects, share tips, engage with potential customers, and connect with your audiences.
• Local advertising channels: Explore traditional methods like distributing flyers in targeted neighborhoods or placing ads in local newspapers to raise awareness about your business.
• Networking opportunities: Attend industry-related events or join professional organizations where you can meet potential clients or collaborate with other professionals.
• Customer testimonials: Encourage satisfied customers to leave reviews on websites like Yelp or Google My Business to build trust and credibility with potential clients.

Remember, a well-executed marketing strategy can significantly impact the growth of your handyman business by increasing brand visibility and attracting more customers.

Recommended Reading: Business Plan Workshop: How to Make the Master Plan?

Sample Handyman Business Plan for Reference and Inspiration

Creating a business plan for your handyman venture is crucial for success. It helps you outline your goals, strategies, and financial projections .

To assist you in this process, we have prepared a sample handyman business plan that you can refer to for inspiration.

Gain Insights into Structuring Your Document Effectively

It’s essential to present information in a clear and organized manner. Our sample plan provides a step-by-step guide on how to structure different sections effectively.

From the executive summary to market analysis and financial projections, each component is explained concisely.

Engage Your Readers with an Engaging Company Background

Your company background sets the stage for your handyman business plan. In our sample plan, we demonstrate how to engage readers by sharing relevant details about your experience, skills, and qualifications as a contractor.

By highlighting past projects or certifications, you can instill confidence in potential clients or investors.

Real-Life Examples from Successful Handymen Businesses

To help you understand how the market analysis should be conducted in your handyman business plan, our sample includes real-life examples from successful handymen businesses.

You’ll learn how to identify target markets, analyze competition, and position yourself uniquely in the industry. These examples will inspire ideas and strategies tailored specifically to your situation.

Financial Projections Made Easy

Financial projections can be intimidating for many entrepreneurs, but they are crucial for demonstrating the profitability of your handyman business.

Our sample plan breaks down financial projections into manageable sections such as startup costs, revenue forecasts, and profit margins. With these examples at hand, you’ll gain insights into estimating expenses accurately and projecting future growth.

Customize Your Plan with Ease

Using our sample handyman business plan as a template allows you to customize it according to your specific needs easily.

You can adapt the language, add or remove sections, and tailor the content to reflect your unique skills and services. This flexibility ensures that your business plan accurately represents your vision and goals.

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Financial Projections and Profit Analysis

To ensure the success of your handyman business, it’s crucial to have a solid understanding of your financial projections and conduct a profit analysis .

By accurately forecasting revenue streams and calculating expenses, you can determine the viability of your business model and attract potential investors or secure loans for expansion.

Accurately forecast revenue streams

It’s essential to analyze historical data or industry benchmarks relevant to the handyman sector. This will help you make informed decisions about potential sales and income for your business. Conducting market research and studying market conditions can provide valuable insights into customer demand, pricing strategies, and competition.

Some key factors to consider when forecasting revenue streams include:

• Market analysis: Understand the size of the market, trends, and growth opportunities in your area.
• Competitive analysis: Identify other handyman businesses in your region and assess their strengths, weaknesses, pricing structures, and services offered.
• Potential customers: Determine who your target audience is by considering demographics such as age group, income level, location, and specific needs.
• Sales strategies: Develop effective sales strategies that align with customer preferences and differentiate yourself from competitors.

Calculate expenses

In addition to forecasting revenue streams, it’s important to calculate all expenses related to running your handyman business. This includes not only direct costs but also indirect costs that may impact profitability. Some common expenses include:

• Labor costs: Consider wages for employees or subcontractors who will be assisting with various handyman tasks.
• Equipment maintenance: Account for regular maintenance costs associated with tools, vehicles, or machinery used in providing services.
• Insurance premiums: Factor in insurance coverage for liability protection or workers’ compensation.
• Marketing expenditures: Allocate a budget for advertising efforts such as online marketing campaigns or printing promotional materials.

Conduct a profit analysis

Once you have accurate financial projections and expense calculations in place, conducting a profit analysis is crucial. This analysis will help you determine whether your business model is financially sustainable and if it can generate the desired profit margins.

Key components of a profit analysis include:

• Income statement: Prepare an income statement that outlines your projected revenue, expenses, and net profit over a specific period.
• Balance sheets: Create balance sheets to assess your assets, liabilities, and equity.
• Cash flow: Evaluate the cash flow of your business by analyzing incoming and outgoing funds.
• Executive summary: Summarize the key findings from your profit analysis to present to potential investors or lenders.

Use financial projections to attract investors or secure loans

Financial projections not only help you understand the financial health of your handyman business but also serve as a valuable tool for attracting potential investors or securing loans for expansion.

When presenting your financial projections, be sure to highlight key findings from market research, revenue forecasts, expense calculations, and profit analysis.

Through financial predictions, you may show that you have a thorough understanding of the market, prospective profitability, and successful management techniques, which will improve your chances of getting finance for expansion projects.

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Marketing and Competitive Strategies for Handyman Businesses

To run a successful handyman business, it’s crucial to have effective marketing and competitive strategies in place. These strategies will help you reach your target market, stand out from competitors, and generate more business.

Let’s explore some key tactics that can give your handyman business a competitive edge.

1. Identify Target Market Needs and Preferences

Understanding the needs and preferences of your target market is essential for crafting effective marketing messages . Take the time to research and identify what homeowners in your area are looking for. Are they seeking quick fixes or long-term solutions? Do they prioritize affordability or quality workmanship?

You may improve your connection with potential clients by customizing your marketing messaging to speak to these particular requirements and preferences. For instance, if you discover that homeowners place the highest importance on dependable service, make sure to highlight your commitment to prompt project completion and your timeliness.

2. Utilize Online Platforms

In today’s digital age, online platforms offer valuable opportunities to reach potential customers. Leverage social media platforms like Facebook, Instagram, or Twitter to showcase your work, share customer testimonials, and engage with your audience.

Create compelling content that educates homeowners about common household issues or provides DIY tips – positioning yourself as an expert in the field.

Ensure that your business is listed on local directories such as Yelp or Angie’s List. This increases visibility among individuals actively searching for handyman services in their area.

Implementing search engine optimization (SEO) techniques on your website can also improve its ranking on search engine results pages (SERPs), making it easier for potential customers to find you.

3. Highlight Unique Selling Points

In a competitive industry like the handyman business, it’s crucial to differentiate yourself from other service providers. Identify and highlight unique selling points that set you apart from the competition.

This could be specialized skills in areas like plumbing or electrical work, exceptional customer service, or competitive pricing .

Emphasize these unique selling points in your marketing materials and during customer interactions.

For instance, if you offer a 100% satisfaction guarantee or provide free estimates, make sure potential customers are aware of these benefits. By showcasing what makes your business special, you increase the likelihood of attracting new customers and retaining existing ones.

4. Build Strong Relationships

Networking and building strong relationships with local suppliers, contractors, or real estate agents can be invaluable for generating referrals and increasing brand visibility.

These individuals often have direct contact with homeowners who may require handyman services. Establishing mutually beneficial partnerships can lead to a steady stream of referrals.

Consider attending local networking events or joining industry-related associations to expand your professional network. Actively engage with other professionals in the field by offering assistance or collaborating on projects.

Building these relationships not only helps generate business but also enhances your reputation within the community.

Recommended Reading: How to Start a Parking Lot Business? (Practical Guide)

Funding Options and Equity Financing for Handymen

If you’re thinking of starting your own handyman business, one crucial aspect to consider is how to secure funding.

Without adequate capital, it can be challenging to get your business off the ground and cover initial expenses.

Explore Various Funding Options

There are several avenues you can explore:

• Bank Loans : Approach local banks or credit unions to inquire about small business loans. These loans typically require collateral or a solid credit history but can provide substantial funds for your venture.
• Small Business Grants : Research government grants or private organizations that offer grants specifically for small businesses in the service industry. These grants don’t need repayment and can significantly boost your startup capital.
• Crowdfunding Platforms : Consider leveraging crowdfunding platforms like Kickstarter or Indiegogo to raise funds from a large number of people who believe in your business concept. Create an engaging campaign highlighting the unique aspects of your handyman services.
• Angel Investors : Seek out angel investors who are willing to invest in promising startups. These individuals often have experience in the industry and may provide not only financial support but also guidance and mentorship.

Understand the Pros and Cons of Equity Financing

Equity financing involves selling shares or ownership stakes in your company in exchange for capital. Here’s a breakdown of its pros and cons compared to debt financing:

• Access to Larger Capital: Equity financing allows you to tap into significant amounts of capital that may not be available through traditional loans.
• Shared Risk: With equity financing, investors share the risk with you since they become partial owners of the business.
• Expertise and Connections: Investors often bring valuable expertise, industry connections, and strategic guidance along with their investment.
• Loss of Ownership Control: By selling equity, you dilute your ownership stake and may have to share decision-making authority with investors.
• Profit Sharing: Equity investors are entitled to a share of the company’s profits, which can impact your overall earnings.
• Longer Decision-Making Process: Involving equity investors in your business decisions may lead to more extended discussions and slower decision-making.

Prepare a Compelling Pitch Deck or Investment Proposal

When seeking equity financing opportunities, it’s crucial to prepare a compelling pitch deck or investment proposal. This document should clearly outline your business concept, market potential, financial projections, and how the investor’s funds will be utilized.

Consider including the following elements:

• Executive Summary: Provide a concise overview of your handyman business and its unique value proposition.
• Market Analysis: Demonstrate a thorough understanding of the market landscape and highlight the demand for handyman services.
• Financial Projections: Present realistic revenue forecasts, expense breakdowns, and return on investment projections.
• Competitive Advantage: Showcase what sets your business apart from competitors in terms of service quality, pricing, or customer experience.

Consider Partnerships with Established Companies

In addition to traditional funding options, consider forming partnerships with established companies in related industries. Partnering with companies that offer complementary services can provide access to additional resources or capital.

For example, collaborating with a home renovation company could help you expand your service offerings while leveraging their existing customer base.

You may choose the most effective way to finance your handyman business by researching several funding sources like bank loans, grants, crowdfunding sites, or angel investors. You can also weigh the advantages and disadvantages of debt vs equity financing.

When looking for equity funding opportunities, don’t forget to put together a strong pitch deck or investment proposal. For extra help, think about forming strategic alliances with well-established businesses in comparable areas.

Recommended Reading: How to Start a Mobile EV Charging Business? (Beginner’s Guide)

Key Takeaways

You have successfully finished writing a thorough handyman business plan. You have set yourself up for future success as a handyman business owner by following the detailed instructions and consulting the included sample plan. Recall that this plan is flexible and may be modified as your company expands and changes.

Now that you have your business plan in place, it’s time to take action. Start implementing the marketing and competitive strategies outlined in Section 5 to attract customers and stand out from the competition.

Utilize the financial projections and profit analysis from Section 4 to make informed decisions about pricing, expenses, and growth opportunities. And don’t forget to explore the funding options discussed in Section 6 if you need additional capital to fuel your expansion plans.

Hence, with a well-crafted handyman business plan at your disposal, you are equipped with the tools necessary for success. Take charge of your entrepreneurial journey today!

Frequently Asked Questions (FAQs)

How do i determine pricing for my handyman services.

Determining pricing for your handyman services requires careful consideration of factors such as market demand, competition, overhead costs, materials used, and labor involved. Conduct market research to understand what other handymen in your area are charging for similar services.

Calculate all costs associated with each job and factor in a reasonable profit margin. Consider offering different pricing packages or discounts for loyal customers or larger projects.

What licenses or permits do I need to start a handyman business?

The licenses and permits required may vary depending on your location. Generally, you will need a general contractor license or home improvement license to legally operate as a handyman.

Check with your local government offices or licensing agencies to determine specific requirements for your area. It’s crucial to comply with all legal obligations to protect yourself legally and gain the trust of potential clients.

How can I effectively market my handyman business?

To effectively market your handyman business, start by creating a professional website that showcases your services and contact information. Utilize online directories and review platforms to increase your online presence.

Build relationships with local real estate agents, property managers, and other professionals who may refer clients to you. Word-of-mouth marketing is powerful in this industry, so always strive for excellent customer service and ask satisfied customers for referrals.

Consider offering special promotions or discounts to attract new customers.

How can I ensure customer satisfaction as a handyman?

Customer satisfaction is crucial for the success of your handyman business. Communicate clearly with your clients from the initial inquiry through project completion. Be punctual, reliable, and transparent about pricing and timelines.

Provide high-quality workmanship and pay attention to detail. Follow up with customers after completing a job to ensure their satisfaction and address any concerns promptly. Going the extra mile will not only lead to happy customers but also positive reviews and referrals.

What are some effective ways to expand my handyman business?

Expanding your handyman business requires careful planning and strategic decision-making. Consider diversifying your services by offering additional specialties or partnering with other skilled professionals in related fields such as plumbing or electrical work.

Explore opportunities for growth in neighboring areas or target specific niches within the handyman industry. Invest in marketing efforts to increase brand awareness and reach a broader audience.

Consider hiring reliable employees or subcontractors to take on more projects while maintaining quality standards.

Remember, each business is unique, so it’s essential to assess opportunities based on your specific circumstances and goals.

Handyman Business Plan Template [Updated 2024]

Handyman Business Plan Template

If you want to start a handyman business or expand your current handyman company, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of handyman business plans.

The following handyman business plan template and example gives you the key elements you must include in your plan.

You can download our Handyman Business Plan Template (including a full, customizable financial model) to your computer here.  

Example Business Plan For Handyman Businesses

I. executive summary, business overview.

[Company Name] is a new handyman business located in [location]. The company will offer a variety of residential handyman services, including plumbing, drywall service, carpentry, and door and window repair. [Company Name] strives to be the best handyman service in the area, focusing on customer service and maintaining long-term relationships. We will market ourselves as friendly neighborhood handymen who can help residents with all their home repairs and concerns.

[Company Name] will provide local residents and homeowners with a variety of services to help keep their homes in perfect condition. Some of these services include:

• Door and window repair
• Floor repair
• Drywall installation and repair

Customer Focus

[Company Name] will primarily serve the residents and homeowners of [location] and the surrounding area. The demographics of these customers are as follows:

• 65,023 residents
• 42% married
• 35% with children under 18
• 55% homeowners
• Median age of 39

These demographics serve our company well. With such a large population of homeowners, many residents will need a local handyman to keep their homes in perfect condition. Many residents own homes that are decades old and need frequent upkeep and repairs. [Company Name] can provide homeowners with whatever services they need.

Management Team

[Company Name] is led by [Founder’s Name], who has been a handyman for [X] years. Throughout this time, he has worked on a variety of installation and repair services while employed by local handyman businesses. He initially worked for local competitors but branched out on his own a few years ago. After being self-employed for a few years, [Founder’s Name] is ready to officially incorporate his business and hire several other handymen who can help expand the business and clientele.

[Founder’s Name] has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.). He also already has a starting customer base to provide revenue for the company.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company will be providing a valuable service for homeowners who are in need of a variety of handyman services.
• [Founder’s Name] has a track record of success in the handyman industry and already has a loyal client base.
• [Company Name] will provide high-quality installation and repair services for a moderate price.

Financial Highlights

[Company Name] is currently seeking $470,000 to launch. Specifically, these funds will be used as follows:

• Store design/build: $150,000
• Vehicle purchase and maintenance: $50,000
• Equipment and initial supplies: $150,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new handyman business located in [location] and will serve residents and homeowners in the city and surrounding area. We will offer a variety of residential handyman services, including plumbing, drywall service, carpentry, and door and window repair. [Company Name] strives to be the best handyman service in the area that residents can trust for all of their home projects. We will market ourselves as friendly neighborhood handymen who can help residents will all their home repairs and concerns.

[Company Name] is led by [Founder’s Name], who has been a handyman for [x] years. He started off his career by working for a variety of local handyman services businesses before branching off on his own as a self-employed contractor. Now with years of experience under his belt and a loyal client base, [Founder’s Name] is ready to turn his side hustle into a thriving business that employs several handymen.

[Company Name]’s History

[Founder’s Name] recently began researching what it would take to incorporate his business and expand his client base. He has analyzed the costs, market, demographics, and local competition. [Founder’s Name] has compiled enough information to develop his business plan in order to approach investors.

Once his research was complete, [Founder’s Name] incorporated [Company Name] on [date of incorporation] as an S-Corporation. The business is currently being run out of [Founder’s Name]’s home, but once the lease on [Company Name]’s office location is finalized, all operations will be run from there. He currently uses his personal vehicle to drive to clients’ homes but will purchase a van that will be used specifically for the business.

Since incorporation, the company has achieved the following milestones:

• Found a commercial space and signed a Letter of Intent to lease it.
• Developed the company’s name, logo, and website located at [website].
• Planned the suite of services to be offered.
• Determined equipment, supplies, and materials needed.
• Begun recruiting key employees and experienced handymen.

[Company Name]’s Products/Services

[Company Name] will provide local residents and homeowners with a variety of services to help keep their homes in perfect condition. These services will include a variety of repair and installation options. Some of these services include:

Handymen will charge an hourly fee that will depend on the service and additional fees for any supplies needed and additional requests.

III. Industry Analysis

No building will ever be completely perfect or without the need for some fixing up and repairs. Therefore, handymen will always be an essential service to businesses and homeowners alike. Homeowners especially will always need help with installation and repair services that handymen provide, as they are often not skilled in the work required to maintain their homes.

Furthermore, society in general is becoming less skilled in basic repair and maintenance skills and is looking to skilled professionals to help keep their homes in good repair. The handyman service market is expected to grow at a compound annual growth rate of 17.2% over the next five years. This is enormous growth for any industry and shows just how in-demand handyman services are. Therefore, there has never been a better time to incorporate a handyman business.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the community residents of [company location] and its surrounding areas.

The area we service is suburban, with 55% owning homes. This means a sizable portion of the local population will require our services at some point.

Customer Segmentation

[Company Name] will primarily target the following three customer segments:

• Homeowners : We will primarily market our services to new and veteran homeowners who need a friendly and convenient handyman to help them with all their home repairs. [Company Name] will market itself as a convenient option that can provide multiple services, so they don’t need to call multiple companies for help.
• Residents 55 and older : Residents who are near their golden years usually don’t have the time, energy, or ability to keep their house in good repair. When they want to make an update on their house or find themselves facing a huge repair, they look to experienced handymen who are on-call and provide friendly and quick service. We will market our outstanding customer service to show that we are the best business for all their repair needs.
• House flippers : With the housing market booming, more and more house flippers are taking advantage of it to turn a profit. They need reliable handymen who can help them with a variety of projects. Our handymen will have experience in multiple trades so that house flippers don’t need to call several businesses for help.

V. Competitive Analysis

Direct & indirect competitors.

The following handyman companies operate within a 10-mile radius of [Company Name], thus providing either direct or indirect competition:

Mountainside Handy Services Established in 1979, Mountainside Handy Services has been a popular local chain offering a variety of handyman services for local businesses and industries. They help offices and other establishments with on-call repairs and general remodeling and installation. Many businesses have sworn by Mountainside’s services, and the company’s reputation has skyrocketed simply through word-of-mouth marketing.

Though Mountainside Handy Services will continue to thrive, the company primarily works with local businesses and, therefore, will be a minor competitor for [Company Name].

John’s Installation And Repair Inc John’s Installation and Repair Inc has been a profitable small handyman business for over a decade. This small business helps with a variety of residential repair services, including plumbing, electrical, and carpentry. John’s small team has gained a great reputation for their friendly customer service and quick repairs.

Though John’s Installation and Repair Inc has gained a positive reputation, its scope of work remains small, even after a decade. They can only help with small projects and generally don’t sign up for larger-scale services. As [Company Name] grows, we will take on larger and larger projects and aim to be the only handyman that any homeowner needs.

Carpentry And More LLC Established in 2005, Carpentry And More LLC set out to be the best local business for all carpentry-related needs. Customers can expect high-quality carpentry work paired with excellent customer service. Carpentry and More’s most popular services include deck and fence installation, remodeling, and door replacement.

Though Carpentry And More offers a variety of services, they primarily focus on and make revenue from their carpentry services. Therefore, they are a minor competitor when it comes to other services such as plumbing, painting, and general repairs.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

• Customer-Focus : [Company Name] contractors provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the process, from the initial inquiry to the follow-up once the project is completed.
• Management : [Founder’s Name] has been extremely successful working in the handyman industry and will be able to use his previous experience to help clients with whatever they need. His unique qualifications will serve customers in a much more sophisticated manner than many of [Company Name]’s competitors.
• Relationships : Having lived and worked in the community for decades, [Founder’s Name] knows many of the local residents and has already established a loyal clientele from his years as a solo contractor. These relationships will provide the company’s initial clientele and help our business through word-of-mouth marketing.

VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here. [Company Name] seeks to position itself as a high-quality, friendly, and convenient handyman business. Clients can expect to receive the best handyman services from skilled contractors and professionals in [location] using the highest quality materials and tools.

The [Company Name] Brand

The [Company Name] brand will focus on the company’s unique value proposition:

• Client-focused installation and repair services, where the company’s interests are aligned with the customer.
• Service is built on long-term relationships and personal attention.
• Professional industrial experience in a small business setting.

Promotions Strategy

[Company Name] expects its target market to be individuals within a 10-mile radius of its location. [Company Name]’s promotion strategy to reach these potential customers includes:

Referrals [Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other individuals by providing discounts on future services for every new client produced. This strategy will increase in effectiveness over time.

Website/SEO [Company Name] will invest in developing a professional website that displays all of the services offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Social Media [Company Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographic.

Publications [Company Name] will advertise its services in key local publications, including newspapers and area magazines. Additionally, the company will print brochures and place them in specific locations frequented by target individuals.

Direct Mail [Company Name] will blanket neighborhoods in the area with direct mail pieces. These pieces will provide general information on [Company Name], its services, and promotional discounts.

Billboards [Company Name] will secure a billboard in the area that captures the attention of residents. The billboard will draw attention to the new business and its service offerings.

Pricing Strategy

[Company Name]’s pricing will be estimated on a project basis drawing on [Founder’s Name]’s deep expertise in various installation and repair services. The pricing will be determined by the materials needed and the amount of labor required to finish the job. Pricing will be moderate and less expensive than our competitors, but more expensive than lower-quality, efficiency-driven handyman and repair businesses.  

VII. Operations Plan

Functional roles.

[Company Name] will need to fulfill the following functional roles to execute its business plan and ensure the company’s success:

Service Functions

• Installation services
• Repair services
• Customer service
• Scheduling of repairs and services
• Quoting and invoice creation
• Tool maintenance and upkeep
• Purchasing of materials and tools

Administrative Functions

• Social media management
• Website management
• Bookkeeping
• Hiring and training staff
• Maintenance functions
• Other general administrative functions

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s Name], who has been a handyman for [X] years. Throughout this time, he has worked on a variety of installation and repair services, both while employed by local handyman businesses, and while operating alone. After being self-employed for a few years, [Founder’s Name] is ready to officially incorporate his business and hire several other handymen who can help expand the business.

[Founder’s Name]’s has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.). However, [Founder’s Name] will hire assistant managers to help run the company and adequately train and manage staff. He will also hire administrative staff to help with operations, marketing, bookkeeping, and other administrative functions.

Hiring Plan

[Founder’s Name] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:

• Assistant Managers (1 to start)
• Administrative Staff (1 to start)
• Handymen (2 to start)

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenue will primarily come from providing installation and repair services to local homeowners. Pricing will be determined by the services required, materials and tools needed, and scope of the project.

The main cost drivers for [Company Name] will be labor expenses, marketing, and lease for the office space.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $470,000 to launch. The funds will be used for capital expenditures, office build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

Key Assumptions

  5 Year Annual Income Statement

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How to Create an Effective Handyman Business Plan

Embarking on a journey to launch a handyman business is exciting. But, you must have a clear and strategic roadmap. This is where a solid business plan comes into the picture.  A well-crafted handyman business plan is the cornerstone of a successful enterprise. 

For providing the necessary direction and focus for growth. 

Let’s walk you through creating a written business plan to reflect your vision and set you up for success. 

Understanding Your Handyman Business

Creating a successful enterprise requires understanding what you’re getting into. Ensure to understand your target market, demand for your services in the target area, and your USP. Doing this will allow matching your business goals with customers’ needs.

Here is how to start a handyman business in NC with a good understanding of the industry. 

Identifying your target market

A target market is a particular group of people likely to buy your services. Understanding your ideal customers is part of creating a handyman business plan. This knowledge allows customizing your services and marketing approaches.

To match your customers’ needs and preferences. 

Research is an essential aspect of the whole process. It identifies key demographics, locations, and markets that need handyman services the most. 

Do this to define your target market:

• Compile data on your current customers
• Use social media analytics to picture your target market
• Understand who your competitors are 
• Explain the benefits of your services 
• Create a brand positioning statement 

Knowing your target market allows marketing your services accordingly. Target customers for handyman services include homeowners and professionals. These usually need minor repairs and maintenance services respectively. 

Ensure to understand what each customer segment wants. This allows for improving marketing efforts and building strong customer relationships. 

Assessing the demand for handyman services in your area

Understanding customer needs in the area is crucial. It allows tailoring your services to meet their specific needs. The company will have a competitive edge over its competitors. 

Research your competition to learn the market and what potential customers want. You can do this through surveys and studying demographics. 

Some of the most sought-after handyman services are:

• Replacing fixtures
• Laying tile
• Drywall installation
• Patching and painting
• Deck construction and repair

Understand customers’ needs for seamless planning of marketing, and pricing. Customers will always be happy and more likely to keep coming. This will ultimately help your handyman business grow. 

Defining your unique selling proposition (USP)

Distinguish yourself in the competitive market by defining your USP. It’s the essence of what sets your handyman business apart from the competition. Your USP should showcase the value you bring to the table. 

An ideal USP should be strong and show what makes your business special. It should reflect your business’s specific strengths, qualities, and innovative approaches. For effectiveness in inspiring potential customers to give you business. 

The steps to  create your USP include:

• Define what makes your business unique in the market
• Understand and describe your ideal customer
• Explain the problems your handyman services will fix
• Highlight the benefits of working with you
• State the services you’re offering

You can get an edge in the market by offering specialized services. These may include 24/7 assistance, eco-friendly operations, or emergency assistance. Ensure your USP resonates with your target audience and address their pain points.

The USP attracts customers and fosters brand loyalty. Ultimately, this makes your business the go-to option for reliable handyman services. 

Setting Clear Goals and Objectives

Let’s delve into the crucial process of setting goals and objectives for your business. First, establish objectives to create a roadmap for success. These may include revenue targets, expanding service offerings, and customer acquisition.

Here’s how to start a handyman business in PA after setting clear goals and objectives.

Establishing short-term and long-term goals for your business

Short-term goals provide a roadmap for growth and accomplishment. They typically span six months to one year and are the key to your immediate progress. 

Also, short-term goals allow focus on particular tasks that may include:

• Building a solid customer base
• Enhancing service quality
• Increase customer service ratings 
• Establishing efficient workflows
• Utilize social media to promote services 
• Respond to customer inquiries within 24 hours

Short-term objectives are stepping stones on your entrepreneurial journey.

For offering insights and feedback while navigating the early stages of your business. Additionally, the objectives allow for refining your strategies for optimal performance. 

Long-term goals are visionary targets for your business. These span many years to shape the overall trajectory of your business. 

Examples of long-term goals include:

• Expanding services to other locations
• Scaling operations
• Attend networking events to connect with other professionals
• Create a referral program 
• Become the market leader
• Develop a comprehensive safety plan on all job sites
• Establish relationships with suppliers 

These goals provide a sense of purpose and direction as you make important decisions. 

By driving your business toward sustained growth and prominence in the market. 

Ensure to balance the establishment of short-term achievements with a clear vision of your long-term aspirations. This gives your business a strategic advantage and resilience in the market. 

Defining specific objectives to achieve those goals

When creating a handyman business plan template, define specific objectives. This is crucial to achieving short and long-term goals. 

To provide clarity and direction to help focus efforts and resources on what matters. 

Here are the steps to define specific objectives in your handyman business:

• Define the overall vision for your handyman business model  
• Establish long-term goals for the business based on your vision
• Establish short-term objectives that lead you closer to achieving long-term goals. 
• Identify Key Performance Indicators (KPIs) to track the progress of your objectives.
• Develop action plans for each short-term objective.
• Conduct market research to understand the needs and preferences of your target audience.
• Use the KPIs to monitor and measure progress
• Adjust objectives based on changes in marketing conditions 
• Invest in training and development to build a solid team.
• Continuously seek feedback to identify areas for improvement. 

Specific objectives for all your goals give your handyman business a dynamic blueprint. 

To foster innovation, adaptability, and continual progress. 

Pro Tip: Review and adjust your objectives regularly to ensure your business is on track.

Ensuring your goals and objectives are realistic and measurable

Goals are everything when it comes to managing a handyman business plan. Realistic goals are achievable using available resources in your business. Assess factors that take the form of manpower, budget, and market conditions when setting your goals. The goals should be challenging but attainable.

Unrealistic goals are frustrating and demotivating. So, they’re a hindrance to progress and derail your handyman business. Measurable goals provide a clear benchmark for tracking progress.

Quantifiable objectives allow for assessing the performance of your handyman business objectively and making data-driven decisions. The goals determine whether you’re on track to achieving your handyman business plan targets or not. They also identify areas for improvement.

• Conduct a thorough analysis of market trends to set realistic and measurable goals. 
• Use data and past performance as baseline metrics
• Create a timeline with specific milestones. 
• Track progress and adjust goals based on changing circumstances or new insights.  

Incorporating realistic and measurable goals in your business plan for handyman service. This prepares your business for long-term success and continuous improvement. 

Conducting Market Research

Understanding the market, competition, target customers, and industry trends is crucial. 

Why research?

To gain invaluable insights about the market. This will shape your service offerings, pricing strategies, marketing tactics, and business approach. 

Here’s how to start a handyman business in Massachusetts after conducting research.   

Gathering information about your competitors

Information about your competitors is crucial. It offers valuable insight into the existing landscape and identifies potential challenges. The infromation also uncovers opportunities to differentiate your services. Begin by identifying established and new competitors in your target market. 

Analyze their service offerings, pricing structure, target customer segments, and USP. investigate their online presence, social media engagement, and online reviews.

To gauge their reputation and customer satisfaction levels.

Reach out to former and current customers of your competitors. So as to gather feedback on their experiences. This information reveals areas where your competitors excel and where they fall short. 

Why is this data important?

Use it to refine your business strategy, and to develop a competitive advantage. 

Studying your competitors will give your business a strategic position. So you offer quality services that give exceptional customer experiences. This allows meeting customer needs and setting your business apart in the market. 

Analyzing market trends and opportunities

Market trends offer valuable insights into current and future demand for handyman services. 

For effective allocation of resources and making informed financial decisions. 

Monitor the industry developments to identify emerging service needs and changing customer preferences.

To discover potential gaps in the market that your business can fill. 

Staying tuned to market opportunities allows for optimizing budget allocation. Allocate funds towards training your team to get specialized skills to meet demand. Reallocate funds from services with declining demand to those generating the most income. 

Besides, analyzing markets allows for anticipating seasonal fluctuations which allows budgeting. Allocate more funds for marketing and hiring new staff during peak seasons. Then, do the opposite during slow seasons. 

A thorough analysis of market trends and opportunities is essential during budgeting. It creates a financial plan that aligns with the dynamic handyman industry. The strategic approach enhances the business’ financial health. Besides, it allows capitalizing on new opportunities to build a sustainable venture. 

Identifying potential challenges and risks in the industry

Building a resilient and successful business requires understanding potential challenges and risks. These challenges can impact operations, growth, and profitability. 

Why does it matter?

Recognizing the challenges allows for proactively devising strategies to mitigate their impact. You can develop a contingency plan to navigate through hard times. 

Understanding the risks involved in the handyman business is paramount. It allows implementing measures to protect your business from potential losses.

Some of these risks include:

• Building a strong customer base
• Some handyman tasks are seasonal
• Lack of knowledge to perform particular tasks
• Expensive equipment repairs
• Setting a minimum rate for services 

Diversifying your offerings or building strategic partnerships is a great idea. It ensures that your business has continuity during adverse situations. 

Overall, entrepreneurs should be aware of business risks and challenges. This fosters a culture of innovation and adaptability. You’ll have a proactive mindset that actively seeks solutions. This will protect you from getting caught off guard. 

Doing this lets your business stay ahead of the curve. It also makes the business adapt to market conditions. Additionally, you can easily identify opportunities that may be overlooked by competitors. 

Developing Your Service Offerings

Your services are the backbone of your handyman business. These prove that you meet customer needs. 

Here are the considerations involved in developing your service offerings. 

Determining the range of services you will provide

The services you provide determine your success and ability to grow your business. A balance between meeting market demand and leveraging your expertise to offer quality services. 

Market research identifies in-demand services and potential gaps to fill. Consider the needs of your target audience to tailor your services to address their pain points.

Offering a range of services is tempting in the early stages of the business. But, focusing on areas where your team excels is a good idea. 

Specialize in a few services to build a reputation for excellence and efficiency in those areas.

As your business grows, expand your services gradually based on demand and customer feedback. Thoughtfully determining the services to offer positions you to cater to the specific needs of your target audience. 

To build a strong brand and establish a competitive edge in the market. 

Assessing the profitability and demand for each service

For the overall success and growth of your business, assess the profitability and demand for your handyman services . 

Understanding the financial viability and customer demand for each service allows for making data-driven decisions. This allows optimizing your services and allocating resources efficiently. 

To assess profitability, determine the cost of offering each service. Ensure to include labor, materials, equipment, and related expenses. Compare these costs to the pricing to determine the gross profit margin.

 Analyze the profit margin to identify the service generating the most revenue. Or one that contributes more to the financial health of your business. 

Market research assesses demand for every service. Analyze customer feedback, undertake surveys, and track industry trends.

To find out which services are in high demand. So you can capitalize on areas with the greatest customer interest to get the highest returns. 

Assessing demand and profitability allows prioritizing your handyman services effectively. The rule of thumb is to offer services that are more financially rewarding. These should align with the needs of your target market. The approach enhances customer satisfaction and positions your business as a reliable provider.  

Tailoring your services to meet the needs of your target market

Every customer segment has unique requirements and preferences for handyman services. Your business should understand and cater to these needs to build trust and rapport with your clients. 

Tailoring your services to meet the needs of the target market enhances customer satisfaction and brand loyalty. 

Satisfied customers are more likely to make repeat purchases of your services. These usually end up becoming enthusiastic advocates of your brand. This encourages word-of-mouth marketing and referrals.

Focus on a particular niche to meet the needs of a particular market and make your business stand out. Apart from giving you a competitive advantage, it gives your services a higher perceived value. Aligning your service with market demands and customer preferences optimizes resource allocation, 

Overall, tailor your handyman business services to meet the needs of your target market.

• It fosters customer relations
• It differentiates your brand from competitors
• It supports sustainable growth. 

Here are essential steps to tailor your services to meet market demands.

• Conduct market research to identify particular needs and pain points
• Create customized service packages to address specific customer needs
• Specialize in particular service areas where your team excels
• Maintain open and transparent lines of communication with customers
• Deliver high-quality services consistently
• Consider upselling and cross-selling when interacting with customers 

Tailoring your services to meet customer needs benefits your business in various ways. It increases the chances of repeat customers and creates a virtuous cycle of success. 

Handyman Business Plan Examples

Liveplan has some essential tools and features to empower handyman business owners. You can access templates for inspiration to create a well-structured and comprehensive handyman services introduction.

The platform supports creating financial projections, market research, and collaboration. This tool also allows everyone to contribute to the business plan.    

Here is an inspiring handyman business description sample. It showcases effective and successful implementation that can propel sustainable growth. 

Crafting a good handyman business plan helps your business thrive. Hope the steps in this guide have given you insights and strategies to make a strong plan for success. 

Amplify your own business by using handyman software for estimating, scheduling , and invoicing. This tool allows you to work smarter, optimize productivity, and elevate customer satisfaction. Your handyman business can potentially flourish with passion, dedication, and the right tools. 

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How to Start a Handyman Business and Set Yourself Up for Success

By Nicole Fallon-Peek

Updated on Dec 20, 2023 9:56 PM EST

12 minute read

We may earn revenue from the products available on this page and participate in affiliate programs. Learn More ›

Individuals who have repair skills and a knack for home improvement might consider going into business for themselves as a handyman. Because a handyman service will always be in demand among local homeowners, going into this field can be a smart and profit-making decision for a handy individual.

However, launching a successful handyman business requires more than simply being a skilled tradesperson. As any entrepreneur can attest, it requires thorough research and planning to successfully navigate the complexities of establishing and running a business.

From understanding the market and defining a business model to navigating legal requirements and crafting a marketing strategy, each aspect plays a pivotal role in the successful launch and sustainability of a handyman business. Entrepreneurs will want to make a handyman business startup checklist—a guide to equip them with the knowledge and tools needed not only to start their business but to be able to compete with the best home services .

Before You Begin…

Before diving into the specific steps of starting a handyman business, it’s important for an entrepreneur to consider some factors that can significantly impact the journey.

For those wondering whether starting a handyman business is a good idea in the current market, the answer is a resounding “yes.” Even in challenging economic circumstances, the demand for home maintenance and repair services is often steady, as these needs are ongoing for homeowners. However, success in this field requires a business understanding, customer service skills, and a willingness to adapt to varying job requirements. An aspiring handyman will want to assess the market demand in their area, understand the competition, and identify their unique selling point (USP).

No certification is one-size-fits-all in terms of qualifications required to become a handyman. However, possessing a combination of handyman skills, experience, and, in some cases, specific types of business licenses , is essential for anyone who wants to enter the field.

The qualifications to become a handyman will vary depending on the types of services the business plans to offer and the legal requirements of the state or jurisdiction. For instance, someone who intends to provide specialized services such as electrical work or plumbing may need a professional license in these fields. Even for general handyman services, having a background in trades or construction is invaluable. Additionally, soft skills such as communication, time management, and customer service are essential for a successful business.

Tips for How to Start a Handyman Business

• Develop a comprehensive business plan that includes market analysis, service offerings, pricing strategy, and a clear marketing approach to establish a strong foundation for a handyman business.
• Obtain any necessary licenses or certifications required by the business’s state of incorporation for the specific services the business plans to offer.
• Build a robust network of suppliers and subcontractors, and invest in quality tools and equipment, to ensure efficient, reliable, and high-quality service to clients.

STEP 1: Write up a handyman business plan detailing what services you’ll offer, the business’s goals, and the costs of starting the business.

A good handyman business plan comprehensively outlines the range of services that the business intends to offer, as well as its goals and objectives to serve as a roadmap for growth and development. The business plan could include short-term aims, like establishing a client base, or long-term aspirations, such as expanding services or geographic reach. Entrepreneurs will want to include a detailed analysis of the startup costs involved in launching the business. These costs would include expenses such as tools and equipment, licensing fees, insurance, and marketing.

David Birkes, owner and general contractor of Birkes Builders in Colleyville, Texas, explains that crafting a formal business plan was “instrumental” to his company’s growth and helped with strategizing and outlining its trajectory.

“The process of compiling it allowed me to meticulously consider each aspect of the business, from market analysis and competitive strategy to financial projections and operational planning,” he says. “This level of detail not only provided invaluable clarity but also prepared us for potential challenges, a core reason why businesses fail early on. While the plan has evolved over time, its essence remains a guiding light for Birkes Builders, and I believe its continual refinement is vital for our sustained success.”

STEP 2: Review your state’s requirements for handyman business licenses and permits.

An aspiring handyman will want to thoroughly review and understand their state’s handyman business code, including any specific handyman business license and permitting requirements. The necessity for a handyman to have a license depends on the state.

In some regions, handymen are required to have a contractor’s license, especially for performing specialized tasks, such as electrical or plumbing work, or for handling projects above a certain dollar value. Other states may have more lenient regulations, offering a “handyman exemption” for smaller, less complex jobs.

Additionally, aside from state regulations, local city or county ordinances may also impose additional licensing or permit requirements. A prospective business owner will want to conduct detailed research or consult with local authorities to ensure full compliance with all legal requirements. Handymen will want to learn how to get a business license to make sure they’re operating legally within their jurisdiction.

STEP 3: Choose a business structure.

When deciding on the best business structure for a handyman business, the business owner will want to consider various factors such as liability, taxes, and administrative complexity. For many handymen, starting as a sole proprietorship is a common choice due to its simplicity and ease of setup. This structure allows for direct control over the business decisions and is relatively straightforward in terms of tax filing.

However, if the handyman is concerned about personal liability or plans to scale the business, forming a limited liability company (LLC) might be a better choice. A handyman LLC provides a separation between personal and business assets, offering protection against personal liability while still maintaining operational flexibility. Each structure has its advantages and implications for the business, so the business owner will want to weigh these options carefully, considering both current needs and future plans. Consulting with a legal or business adviser, or even with one of the best LLC services (such as LegalZoom or Northwest Registered Agent ) can also provide tailored guidance to ensure the chosen structure aligns with the handyman’s business goals and legal requirements.

Before officially registering a business, the entrepreneur will want to research handyman business name ideas and make sure another company isn’t already operating under that name and structure. For this reason, many handymen incorporate their personal name into their business name (e.g., “Smith’s Handyman Services LLC”).

STEP 4: If needed, look into options for small-business funding to get your handyman business off the ground.

Several avenues for small-business funding are available to help entrepreneurs get their business off the ground, each with its own set of benefits and requirements.

Traditional bank loans are a common choice, offering lending options tailored to small businesses. Alternatively, government-backed loans, such as loans by the Small Business Administration (SBA) , can provide more favorable terms and lower interest rates. For those looking for less traditional methods, crowdfunding platforms or seeking investments from friends and family can also be viable options. Another avenue for handymen is applying for grants specifically designed for small businesses or trade-specific enterprises.

It’s important for business owners to carefully assess their financial needs, including initial setup costs, tool and equipment purchases, and operating expenses, and then align these with the best funding source that suits their needs. Thorough research and a well-prepared business plan can enhance the entrepreneur’s chances of securing the necessary funding to launch and sustain a handyman business.

STEP 5: Open a business bank account to keep your personal and business finances separate.

Opening a business bank account helps to keep personal and business finances separate. This separation is essential not only for clear financial management but also for maintaining professionalism and simplifying accounting practices. A dedicated business account makes it easier to track expenses, manage invoices, and prepare for tax season, as all business transactions are consolidated in one place. It also enhances a business’s credibility with clients and suppliers, as payments are made to and from a business account rather than a personal one. Additionally, in the event of a business audit, having distinct accounts can provide business owners with a clear financial trail and demonstrate compliance with business regulations.

For handymen just starting out, choosing a bank that offers low fees and good customer service can help minimize costs and ensure a smooth banking experience. Setting up this account early in the business setup process lays a solid foundation for effective financial management and contributes to the overall organization and success of the handyman business.

STEP 6: Purchase the basic tools and equipment you need to get your business started.

Investing in the right handyman tools and equipment will help handymen deliver quality service and handle a wide range of jobs efficiently. Birkes notes that a core handyman tool kit boils down to “versatility and necessity” and recommends that entrepreneurs invest in the following basic equipment to start:

• A set of reliable screwdrivers;
• A quality drill, ideally a combination kit with a hammer drill and impact driver for a broad range of jobs;
• A sturdy ladder;
• Safety gloves;
• High-grade goggles for eye protection; and
• A first aid kit.

Other essentials include tools such as pliers, a saw, a measuring tape, and a level. Depending on the services offered, specialized tools like plumbing wrenches or electrical testers might also be necessary. However, Birkes noted that it’s wise for business owners to pace themselves when investing in specialty tools.

“It’s enticing to splurge on every shiny gadget, but … buy [tools] as certain tasks become habitual,” recommends Birkes. “Sink funds into what will frequently pay itself off. For example, if you find yourself constantly doing tile work, it’s time to pick up that reliable tile saw.”

STEP 7: Set pricing for your handyman services.

Setting the right pricing for handyman services impacts the profitability and competitiveness of the business. Most handymen charge an hourly rate, which can vary widely based on factors such as geographic location, the complexity of services offered, and the handyman’s experience level.

The average self-employed handyman hourly rate will depend on several factors, including the handyman’s geographic location and whether they have any specialized skills. The Bureau of Labor Statistics (BLS) reports that general maintenance and repair workers earn an average of $44,980 per year or $21.62 per hour. This salary can increase with experience, a strong client base, and efficient business management.

When setting prices, handymen will want to consider all of their business operating costs, including tools, transportation, insurance, and marketing, to ensure that the pricing structure supports sustainable business growth and profitability.

Business owners will also want to conduct market research to understand the general rates in their area and to set a competitive yet profitable price point. To do this, Shlomo Cherniak, owner of Cherniak Home Services , a handyman company located in Baltimore, Maryland, advises that handymen consider factors such as the type of service(s) they plan to provide, the complexity of the project, the materials required, and the level of expertise needed. He also recommends that business owners reach out to other professionals in the industry, join trade associations, or consult industry publications to gather information on prevailing rates.

“Setting rates that are too low may undervalue your services, while setting rates that are too high may deter potential customers,” Cherniak explains. “Finding the right balance is crucial for success in the home improvement industry.”

Birkes adds that standing out based on quality and value rather than just price is crucial.

“To implement [value-based pricing], one must deeply understand the client’s needs and how our services generate improvements in their living spaces that push beyond mere renovations,” he says. “This involves tailored designs, high-quality materials, and skillful craft. We conduct thorough market research, consider the value of our design-build approach, and ensure our prices reflect the sophistication and customized experience we offer.”

STEP 8: Get small-business insurance to help protect your business financially from liability.

Securing coverage from one of the best handyman insurance companies (such as NEXT Insurance or Thimble ) is a critical step for handymen, as it provides financial protection from various forms of liability. In the realm of handyman services, the question of whether a handyman needs insurance is straightforward: It is essential. Self-employed handyman insurance safeguards the business against accidents, property damage, and potential lawsuits that could arise during the course of the work. This protection is not just a precaution; it’s a vital aspect of maintaining a sustainable and reputable business.

Business owners will want to consider different types of insurance, such as general liability insurance, professional liability insurance, and workers’ compensation (if the handyman hires employees). This coverage ensures that in the event of an unforeseen incident, the handyman’s business assets and personal finances are not at risk. Moreover, having proper handyman business insurance often enhances the credibility of the business in the eyes of clients, signaling professionalism and responsibility.

STEP 9: Create a service contract for each customer to sign.

A handyman contract establishes clear expectations and responsibilities for both parties. This document will ideally outline the specifics of the job, including the services to be performed, the timeline for completion, cost estimates, payment terms, and any guarantees or warranties offered. This contract serves as a legal agreement that protects both the handyman and the client, ensuring a mutual understanding of the work scope and conditions. It also provides a reference point for both the handyman and the customer in case of any disputes or misunderstandings regarding the job.

Additionally, having a standardized contract template adds a level of professionalism to the business and streamlines the process for future projects. Handymen will want to consider legal counsel when drafting this contract to ensure that all terms are clear, fair, and compliant with local laws and regulations. By implementing a contract, handymen can foster trust with their clients and safeguard their business from potential legal complications.

STEP 10: Come up with a marketing plan to start putting your business in front of potential customers.

Effective handyman marketing needs to encompass various strategies tailored to the target audience and the unique selling points of the business. A well-rounded marketing plan that combines both digital and traditional methods can effectively promote the business and help attract and retain clients in a competitive market.

Creating a professional website and maintaining an active presence on social media platforms can significantly enhance the business’s online visibility and attract a broader customer base. Additionally, a website with informational content and helpful information is more likely to appear in search results when potential clients in the area search “ handyman near me .”

Another way for handymen to attract new customers is for them to sign up for handyman job listing sites and home service apps such as Angi , HomeAdvisor , TaskRabbit , Thumbtack , or Handy . These services can complement these digital marketing efforts and further enhance a new business’s reach and visibility. Handyman business owners can research the top lead-generation websites by reviewing comparisons and reviews.

Traditional marketing methods, such as distributing handyman business cards and flyers in the local community, will also enhance visibility. These tangible materials can be left in local hardware stores, community centers, or with satisfied customers, providing a personal touch that often resonates with the local clientele. Business owners can also network with local contractors, real estate agents, and property managers to further open up referral opportunities.

STEP 11: Invest in a business software program to help you run the handyman business more efficiently.

Modern business software programs offer a range of tools that streamline various aspects of business operations, from scheduling and job tracking to invoicing and customer relationship management. With handyman software, such as Housecall Pro or Jobber , business owners can easily keep track of appointments, manage work orders, and ensure timely communication with clients. Additionally, features like invoicing and payment processing integrated into the software can simplify the financial aspects of the business, making it easier to track income, expenses, and profitability.

• Want to know more? Check out the BobVila.com Jobber review and see which service we like more: Housecall Pro vs. Jobber . 

Handyman software also aids in maintaining a professional image, as it allows for prompt and organized interactions with clients. This software can be instrumental for growing businesses in that it helps to manage an increasing workload and client base efficiently. By leveraging the capabilities of specialized business software, handymen can focus more on their core services and less on administrative tasks, leading to improved productivity and customer satisfaction.

These guidelines serve as a valuable resource, offering practical advice and actionable strategies to navigate the complexities of starting and running a handyman business. By following these steps, new and aspiring handymen can ensure their business not only meets legal and professional standards but also thrives in a competitive market, ultimately leading to sustainable growth and customer satisfaction. The journey of starting a handyman business, while challenging, can be deeply rewarding when approached with dedication and the right preparation.

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Starting Your Own Handyman Business: A Step-by-Step Guide

If you’ve always been good at fixing things around the home and you want to monetize your skills, then starting a handyman business could be the perfect path to pursue. Although you might be uncertain about the steps you need to take, this article covers the key steps to launching your own business. Stick around to discover all the essentials that you need to take care of you on the road to entrepreneurship.

Your step-by-step guide on how to start a handyman business

Ready to explore what you’ll need to get started? Below is a brief outline of the key steps you need to take. 

1. Write a business plan for your handyman business

Your handyman business plan will be your road map to success. This is where you put all your ideas down on paper to ensure that you’re covered from the launch of your business all the way through to operations.

A business plan will contain all the elements of your business. This includes the nature of your business, your marketing plan, your financial projections, your team, and any other information lenders require to offer you funding to get your venture off the ground.

While a business plan may seem as though it’s only created for lenders, it’s also a document you will want to continuously revise as your business scales to account for growth and new opportunities.

2. Secure the necessary handyman licenses in your region

Step two in starting your handyman business includes securing the necessary licenses to operate as a handyman in your state or region.

Every state has different business requirements such as licenses and permits to ensure that your business is regulated and complies with all laws.

3. Acquire capital for your handyman venture

There are several ways to acquire capital for your handyman venture, and these include using your own savings, getting help from friends and family, entering a partnership, or acquiring lending from a financial institution. However, that’s only the first step.

You also need to focus on solid financial planning. For this reason, you need to learn how to manage your cash flow and this will benefit from setting up accounting systems.

You’ll also need to understand your tax obligations and implement strategies for financial growth and stability.

A part of the latter process will involve carefully planning your pricing structures so that your business thrives while remaining competitive.

4. Select the handyman services you will offer

Although handyman services fall under a broad umbrella, there are many areas in which you could specialize.

Examples include furniture building, assembly, and wall anchoring; painting/staining walls, cabinets, and furniture; bathroom and kitchen leak fixes; tile installation, repair, and maintenance; childproofing and accessibility improvements; gutter and window cleaning; and more.

Often, offering a niche service is a good way to help you specialize and become known for the quality of your services.

5. Acquiring essential tools and equipment for handyman work

Determining the type of handyman services you will offer will dictate the essential tools and equipment you will need to carry out your work on a daily basis.

6. Identify your target audience

It’s also essential to identify your target audience. When you do your market research into the demographics you will be serving, you will be better able to tailor your marketing efforts for more visibility and more paying customers.

7. Establish pricing for your handyman services

Although we briefly touched on the importance of pricing for your handyman services, this requires a separate discussion.

Depending on the nature of the services you will be offering, you may want to charge per hour, per job completed, or a fixed rate. This strategy is important over the long term because it will determine whether your business efforts are sustainable.

8. Register your handyman business

The next step is to get the legalities in order by registering your business. You need to choose the type of business structure you will use and determine the levels of responsibility and liability you are willing to take.

Some business structures separate a business from an owner’s personal assets and liabilities while others combine these. It’s a good idea to consult with a lawyer to see what your options are.

9. Obtain insurance for your small handyman business

At times, things can and will go wrong. That’s why you need to ensure that the services you provide are insured. This will give you and your clients more peace of mind.

10. Draft a service agreement

You also need to draft a service agreement that will outline the terms of service you will offer to your clients. This agreement should cover all possible scenarios and clearly outline your scope of duties. This is an important way to protect yourself in the event of legal action or disputes.

11. Launch your business marketing campaign

It’s essential that you market your handyman business so that you can secure paying customers. For this purpose, you will need an online presence.

The most affordable way to achieve this is through a free Google My Business local listing. However, you will also need to invest in the design of your website and getting your social media channels up and running.

Search engine optimization (SEO) for local businesses is another essential element that is a must for any marketing plan and this includes introducing content marketing to your offering.

Also, don’t underestimate the power of email campaigns that you can launch to your current audience and to prospective clients.

12. Implement exceptional customer service strategies

As your business grows, you’ll need to manage your customer relationships. However, this takes time, effort, and resources.

To help you manage this process better, it’s highly advisable to use customer relationship management (CRM) software to maintain long-term customer relationships.

Furthermore, CRM software can help you improve your strategies for upselling or cross-selling other services you may offer. All of this can be achieved with the help of ServiceOS.

13. Expand your team and hire additional handymen

As your handyman business scales and grows, you may consider expanding your team by hiring additional specialists to join your business. However, you may also consider expanding your service offerings or even franchising your business.

In order to take advantage of your growth and manage a remote team in the field more effectively, field service management software is the ideal solution to help streamline your operations.

14. Optimize your business operations

Speaking of streamlining your operations, you’ll need to manage your inventory of tools, equipment, and spare parts. You will also need to implement efficient scheduling and job management practices. With the help of ServiceOS’ business automation tools, you’ll be all set.

15. Build brand recognition within the business community

Finally, to boost brand visibility and recognition within the business community, you might consider networking within the industry and participating in the community through sponsorships or events to build more trust in your brand. 

So, if you’ve always wondered how to start a handyman service, these tangible steps will help guide your journey ahead.

Are handyman businesses profitable?

Handyman businesses can be a profitable venture to embark on as the industry in the US is worth $256 billion this year alone. On average, handyman businesses earn around $540,000 in gross revenue per year. 

Does a handyman need a license?

Depending on the services you’re offering and the value of your work, you may need a license to operate your handyman business. However, most states have exemptions called “Handyman exemption” or “Minor work exemption”, which you will need to study in accordance with the state you are located in.

How much does it cost to start a handyman business?

The average cost of starting a handyman business in the US is around $23,428. This will depend on the nature of the business, the tools and equipment you require, securing insurance, paying your teams, branding, marketing, and advertising, and other costs that are part of your business launch process.

Let your skills shine, your services excel, and your business prosper with ServiceOS

Embarking on the journey of starting your own handyman business is an exciting venture that requires careful planning and dedication. By following the comprehensive guide provided, you’ve laid the groundwork for a successful enterprise.

Remember, integrating a robust field service management system and an efficient online booking system, like ServiceOS , into your business operations is not just an option—it’s a strategic move. These tools will streamline your operations, enhance customer satisfaction, and ultimately, contribute to the growth and sustainability of your business.

As you step into the world of entrepreneurship, armed with the right tools and a clear plan, your handyman business is not just a dream, but a viable, thriving reality waiting to unfold.

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Executive Summary of a Handyman Business: Template & Example

• January 5, 2024
• Business Plan , Executive Summary

A handyman business plan needs a straightforward executive summary . This part of your plan is the first thing investors and partners see, and it should clearly outline what your handyman service is all about. It’s where you explain what makes your handyman service different and worth investing in.

We recommend using a two-slide PowerPoint format for this summary. The first slide should cover the basics of your business and the market you’re entering. Here, you detail your handyman’s services, location, and what sets you apart from others. The second slide focuses on your management team and your financial plans, highlighting the people behind the business and how you expect the service to grow financially.

This simple, two-slide approach ensures that your executive summary is easy to follow and covers all the essential points about your handyman business.

Handyman Business Financial Model

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Handyman Service Executive Summary: Page 1

Business Overview

The business overview serves as the cornerstone introduction to your handyman service within the executive summary. Crucial details such as the service name, operational location, and an overview of the diverse services offered should be succinctly communicated.

This section sets the stage for highlighting the unique selling proposition (USP) of your service. Whether your focus is on versatile expertise, reliability, competitive pricing, or commitment to customer satisfaction, the USP should be the focal point that distinguishes your service.

Example: “HandyPro Services,” centrally located in [City Name], provides prompt and proficient handyman solutions within a [x]-mile radius. Our extensive service range covers general repairs, carpentry, plumbing, electrical work, painting, appliance installation, and routine maintenance. Renowned for our versatility and reliability, we specialize in addressing diverse repair and improvement tasks, enhancing property functionality and value.

Market Overview

An insightful presentation of the broader home improvement industry, encompassing handyman services, is crucial. This section aims to underscore the significant market size , growth trends, and industry dynamics, substantiated by pertinent data on market valuation, growth rates, and emerging trends.

Additionally, a comprehensive analysis of the competitive landscape is essential. Identifying key competitors and elucidating your service’s positioning within this landscape is an opportunity to showcase its unique approach. Whether through comprehensive service offerings, transparent pricing structures, or a reputation for exceptional customer satisfaction, this is where your service’s competitive edge is emphasized.

Example: The broader home improvement industry, which includes handyman services, stands as a formidable market valued at approximately $577 billion, projecting a steady +3.70% CAGR from 2021 to 2025. Within the handyman sector, HandyPro Services operates within a [x]-mile radius, amidst a landscape primarily comprised of independent contractors and small businesses. Our emphasis on versatile expertise and customer satisfaction positions us uniquely among competitors, resonating with clients seeking reliable and proficient handyman solutions.

Handyman Service Executive Summary: Page 2

Management Team

The proficiency and expertise of the management team play a pivotal role in the success of a handyman service. Within the executive summary, it’s crucial to showcase the qualifications and experiences of key team members, underscoring their vital roles in steering the service towards excellence.

This section aims to highlight the core competencies and professional backgrounds of the team, assuring potential investors and partners of the service’s adeptness and capability to thrive in the industry.

Example: At HandyPro Services, our leadership boasts a wealth of expertise across various home repair and improvement tasks. Their leadership ensures stringent quality control, and effective project management, and fosters enduring client relationships, fundamental to our service’s success.

Financial Plan

The financial plan section encapsulates the strategic fiscal objectives and projections of your handyman service. It offers a concise overview of revenue targets, and profit margins, and outlines the trajectory guiding the service’s financial growth.

Example: HandyPro Services is dedicated to achieving substantial milestones in its financial growth trajectory, aiming for a notable annual revenue of $1.1 million, complemented by a commendable [21]% profit margin ( EBITDA ) by 2028. Our financial strategy hinges on maintaining competitive pricing structures while achieving commendable profitability, emphasizing a relentless pursuit of superior service quality and client satisfaction.

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Handyman Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Home Improvement » Handyman

Are you about starting a handyman business ? If YES, here is a complete sample handyman business plan template & feasibility study you can use for FREE .

A handyman business is one that provides a wide range of services needed for the maintenance of buildings and properties. The services provided by a handyman include plumbing, electrical works, carpentry, painting, heating and cooling services and other building and property maintenance and repair works.

The handyman business is becoming more popular in recent times and this is because of the fact that people are becoming creative with ways of making money and developing new business ideas so as to be able to make a living. The creation of this business has also been as a result of people losing their jobs and the increasing number of people who want to set up their own businesses.

A Sample Handyman Business Plan Template

1. industry overview.

The handyman industry is one that was affected adversely by the fall of the housing market. This resulted to a low demand for the services in this industry. When the demand for minor household repairs and maintenance rose, the revenue decline was moderated.

The industry has now benefited from the acceleration house market and the increase in household income. This industry provides general maintenance and repair services to residential and commercial customers, including plumbing and electrical repairs, appliance installation and repair, painting and carpentry.

The industry grew as a result of the shift in focus from do-it-yourself (DIY) to do-it-for-me (DIFM) as the eighties drew to a close.

This was because time became more precious for the coming generation than money. By the mid-nineties handyman businesses began to appear all over the place to cater to people who did not have time to spare to fix little problems in their homes.

In 2003, the handyman industry was one of the fastest growing ones in the united states and the industry keeps expanding further. This sector is a resource for the growing number of aging homeowners and is also a source of business opportunity for entrepreneurs.

The Handyman services industry will continue to grow in the five years to 2019 due to the support it will get from the accelerating house market.

Housing prices are also on the rise and the increase in the existing home sales will help to drive the demand for remodeling projects and repair works in homes and on properties. The sector employs about 9,180 people and the annual growth rate in the industry between 2009 -2014 is 3.5% and the revenue from the industry is $1 billion.

There is a growing need for home repair work and improvement that is reliable because of the emergence of vacation homes, second homes, commercial properties and rental units.

Also the increase in the number of older people who wish to keep on living in their homes is a factor for the growth in the industry and younger families with children of school-age who chooses to renovate and remodel their homes, instead of moving out to look for new homes in the real estate market with its high price.

Statistics has it that the Handyman Services industry in the United States of America, is worth $1bn, with an estimated growth rate of 3.5 percent. There are about 882 registered and licensed handyman services businesses in the United States and they are responsible for employing about 9,180 people. It is important to state that there is no company with a dominant market share.

The Handyman services industry will keep on thriving in the coming decade especially if an entrepreneur in this line of business is committed to providing reliable and quality work for customers in the home repair and property services they render.

The market is highly unsaturated and there is room for growth as the industry is expanding and maturing. The good news for would be entrepreneurs in this line of business is that there is an estimate of continued annual growth for the handyman industry for as high as 20 percent.

Over and above, the handyman services industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business and of course make good money from the industry.

2. Executive Summary

Next Door Neighborhood® Handyman Services is a licensed and standard handyman services company. We have been able to secure a standard and well – positioned office facility in a central business district in Inglewood Los Angeles – California.

We are a handyman services company that is set to compete in the highly competitive handyman services industry not only in Los Angeles – California, but also throughout the United States market.

Next Door Neighborhood® Handyman Services will provide general maintenance and repair services to residential and commercial customers, including plumbing and electrical repairs, appliance installation and repair, painting and carpentry services et al.

Our business goal is to become one of the leading handyman service companies in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

Our workers will be selected from a pool of certified and highly experienced technicians and tradesmen with different trade skills as it relates to our service offerings in and around Los Angeles – California and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading handymen service providers and installation, maintenance and repair companies in the United States and throughout the globe.

At Next Door Neighborhood® Handyman Services, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Next Door Neighborhood® Handyman Services is founded by Drake Morrison a graduated from Illinois Institute of Technology (B.Tech.) and his friend and business partner for many years Fred Sugarland (B.Sc. Business Management).

They have a combine experience that can help them build Next Door Neighborhood® Handyman Services to favorably compete with other leading handyman business and installation, maintenance and repair businesses in the United States of America.

3. Our Products and Services

Next Door Neighborhood® Handyman Services is established with the aim of maximizing profits in the handyman services cum installation, maintenance and repair services industry.

We want to compete favorably with the leading handyman service companies and installation, maintenance and repair companies in the United States which is why we have but in place a competent quality assurance team that will ensure that every repairs, installations and services carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Next Door Neighborhood® Handyman Services is not just accepted in Los Angeles – California but also in other cities in the United States of America. Our service offerings are listed below;

• Plumbing repair
• Drywall installation and repair
• Electrical installations
• Carpentry services
• Appliance installation and repair (TV wall mount installation)
• Flooring installation and repair
• Roofing repairs
• Gutter cleaning
• Kitchen makeover
• Bathroom remodel and Shower remodel
• Attic insulation
• Deck repair
• Door installations
• Fence repairs
• Interior and exterior painting services
• Yard and power tool repair and maintenance
• Building and gardening service
• Other related installation, maintenance and repair services

4. Our Mission and Vision Statement

• Our vision is to establish a standard and all – round handyman services company whose services and brand will not only be accepted in Los Angeles – California but also in other cities in the United States of America.
• Our mission is to provide professional installation, maintenance and repair services and other related services that will assist businesses, individuals, households and non-profit organizations in ensuring that their facility and equipment in good shape.
• We want to build a handyman service company that can favorably compete with other leading brands in the handyman services cum installation, maintenance and repair services industry.

Our Business Structure

Next Door Neighborhood® Handyman Services is a business that intends to start small in Los Angeles – California, but hopes to grow big in order to compete favorably with leading handyman business and installation, maintenance and repair companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Next Door Neighborhood® Handyman Services we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Head, Technical Services

Human Resources and Admin Manager

• Sales and Marketing Executive
• Handymen (With Various Trade Skills as it relates to our Business)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Head, Technical Services:

• Serve as project manager of the organization; works directly with employees
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Make certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and handymen
• Ensures that the organization work in line with international best practices.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office and factory activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Next Door Neighborhood® Handyman Services
• Serves as internal auditor for Next Door Neighborhood® Handyman Services

Handymen (With Various Trade Skills)

• Provides general maintenance and repair services to residential and commercial customers, including plumbing and electrical repairs, appliance installation and repair, painting and carpentry services et al.
• Handles Carpentry services, Appliance installation and repair (TV wall mount installation), Flooring installation and repair, Roofing repairs, Gutter cleaning, Kitchen makeover, Bathroom remodel and Shower remodel, Attic insulation, Deck repair, Door installations, Fence repairs, Interior and exterior painting services, Yard and power tool repair and maintenance
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Next Door Neighborhood® Handyman Services engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured handyman business that can favorably compete in the highly competitive handyman services cum installation, maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Next Door Neighborhood® Handyman Services. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Next Door Neighborhood® Handyman Services;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience technicians, plumbers, and carpenters et al, a team with excellent qualifications and experience in various niche areas in the handyman services cum installation, maintenance and repair service industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

As a new handyman services company in Los Angeles – California, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive handyman services and installation, maintenance and repair services industry; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the handyman services and installation, maintenance and repair services industry is massive considering the number of households and corporate organizations that are would always need one or more things to fix in their facilities.

As a solar panel installation, maintenance and repair company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power.

Another threat that may likely confront us is the arrival of a new handyman business or even installation, maintenance and repair company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

To start a handyman business, there is need to carry out a critical economic analysis to ensure that the risks and threats that are associated with starting a business or investing in a business idea are reduced.

Starting the business is not just about getting a fancy office space and equipping the place. You should also be concerned with how to get customers for the business and how to keep existing customers coming back to use the services of your company.

On the average, starting and running a handyman business can be cost effective. This is especially so when you have highly trained, well qualified and experienced staff as members of your team.

With the quality of work carried out by them for your customers, you will be able to retain your customers and the good work your company does will be well spread by word of mouth as customers will tend to recommend your services to their families and friends once you are able to do a good job in their homes and on their properties.

A company’s ability in providing its customers with quality service at affordable prices will also be a factor that will count in the industry. This way the company will be able to retain existing clients and get more business from new customers. The competition in the handyman industry shows that there is a viable market for the services of handymen.

As long as you are prepared to run a high quality business, you will have your own share of the market as some handyman business that exist take their customers for granted and offer them mediocre services. This gives you room as a new entrant into the business to come in and dominate if you are prepared to give quality service to your client.

8. Our Target Market

Before starting our handyman business in Los Angeles – California, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of handymen on a regular basis.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our services to;

• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Real Estate Owners, Developers, and Contractors
• The Government (Public works department)
• Schools (High Schools, Colleges and Universities)
• Sport Facilities
• Religious Organizations
• Individuals and households

Our Competitive Advantage

Surviving in the business world as a handyman business or installation, maintenance and repair company requires more than, your expertise, knowing how to deliver standard repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an installation, repair and maintenance contract.

There are favorable conditions for growth in the handyman services industry and as a result of this, survival in the industry will require that you build on existing knowledge of the services you offer to your customers and broaden your skill base in order to be able to compete favorably.

More handymen companies are coming up and they are using the services of existing franchise in the business to boost their competitive edge and exposure in the industry.

We are quite aware that to be highly competitive in the handyman services industry means that you are not only expected to be able to deliver consistent and highly reliable installation, repair and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience technicians, plumbers, and carpenters et al, a team with excellent qualifications and experience in various niche areas in the handyman services cum installation, maintenance and repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups handyman services cum installation, maintenance and repair businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Next Door Neighborhood® Handyman Services is established with the aim of maximizing profits in the handyman (repair) services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Next Door Neighborhood® Handyman Services will generate income by offering the following services;

10. Sales Forecast

One thing is certain, there would always be corporate organization, government agencies, households and individual who would need the services of handymen cum installations, maintenance and repair companies.

We are well positioned to take on the available market in the handyman services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our company to enviable heights.

We have been able to critically examine the handyman services cum installation, maintenance and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – California.

Below is the sales projection for Clean Energy Technologies®, LLC, it is based on the location of our business and of course the wide range of our services and target market;

• First Year-: $100,000
• Second Year-: $250,000
• Third Year-: $500,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same installation, maintenance and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the handyman services industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the handyman services cum installation, maintenance and repair services industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Next Door Neighborhood® Handyman Services

Our corporate goal is to grow Next Door Neighborhood® Handyman Services to become one of the top 10 handyman services brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Los Angeles – California but also in other cities in the United States of America.

Next Door Neighborhood® Handyman Services is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to individuals, households, corporate organizations, religious organizations and key stake holders.
• Promptness in bidding for installation, repair, and maintenance contract from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and households in the whole of Inglewood – Los Angeles and beyond which is why we have made provisions for effective publicity and advertisement of our handyman services company.

Below are the platforms we intend to leverage on to promote and advertise Next Door Neighborhood® Handyman Services;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Los Angeles – California
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations and households by calling them up and informing them of Next Door Neighborhood® Handyman Services and the services we offer
• List our company in local directories / yellow pages
• Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Next Door Neighborhood® Handyman Services we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

At Next Door Neighborhood® Handyman Services our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a standard handyman company; it might differ in other countries due to the value of their money. However, this is what it would cost us to set Next Door Neighborhood® Handyman Services in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
• The amount required to purchase the needed tool box and repair equipment – $10,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• Amount required to purchase the needed software applications to run our business – $ 3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $1,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred thousand (200,000) U.S. dollars to successfully set – up a standard handyman company in the United States of America.

Generating Funding / Startup Capital for Next Door Neighborhood® Handyman Services

Next Door Neighborhood® Handyman Services is a business that will be owned and managed by Drake Morrison and his friend and business partner for many years Fred Sugarland. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Next Door Neighborhood® Handyman Services is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our installation, maintenance and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Next Door Neighborhood® Handyman Services will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and installation tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In Progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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How to Start a Profitable Handyman Business [11 Steps]

Business steps:, 1. perform market analysis., are handyman businesses profitable, 2. draft a handyman business plan..

Creating a comprehensive business plan is essential for laying the groundwork of a successful handyman business. It will serve as a roadmap, helping to navigate through the start-up phase and manage your business more effectively. Here are key elements to include in your plan:

How does a handyman business make money?

3. develop a handyman brand., how to come up with a name for your handyman business, 4. formalize your business registration., resources to help get you started:, 5. acquire necessary licenses and permits for handyman., what licenses and permits are needed to run a handyman business, 6. open a business bank account and secure funding as needed., 7. set pricing for handyman services., what does it cost to start a handyman business, 8. acquire handyman equipment and supplies., list of software, tools and supplies needed to start a handyman business:, 9. obtain business insurance for handyman, if required., 10. begin marketing your handyman services., 11. expand your handyman business..

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How to Build a Solid Handyman Business Plan

• Contractor , Handyman
• Jun 07, 2022
• By deependra

Starting a small business is an exciting step for many handymen. You’ve got the skills, your tools , and maybe a customer or two. But do you have a handyman business plan?

A solid business plan could help boost your growth and success. Even the smallest of small businesses could benefit from having one, as it can help guide you through the ups and downs of running your own business.

What is a business plan?

A business plan is a document that describes all parts of your business. It includes details like the services you provide, your ideal customers, information about your competitors, and your strategies for running a profitable small business.

Business plans also contain your goals, such as your plans for growth or financial forecasts. A yearly budget might be included to help gauge your success in these areas.

A business plan is not something that you write once and forget about. It is a guide for your small business, and it should be revisited and revised as your circumstances change. A well-written business plan can help you make decisions, analyze results, and judge your success.

Why do handymen need a business plan?

If you’re like many handymen, you work on your own as a sole proprietor. Creating a business plan may seem unnecessary for such a small business. But a solid handyman business plan could be worth the time and effort it takes to write.

You might decide to invest in handyman service planning to:

• Grow your business – Research has shown that companies that write business plans grow 30% faster and are less likely to fail than those that do not.
• Secure funding – Many lenders and investors will ask for a business plan to help them decide whether to give you a loan or other funding.
• Reduce risk – Business plans can help you identify roadblocks. This could help you come up with ways to avoid or minimize risks to your business.
• Make smarter decisions – A business plan could help you understand how big decisions might impact your business finances and operations.

How to Write a Handyman Business Plan?

While all business plans are different, there are six areas that you will find in most. Here’s a step-by-step guide to help you get started on yours:

1. Executive Summary

The executive summary is a one- or two-page overview of your business and your plans for it. These are the highlights of your handyman business plan, so it may be easier to write it last.

2. Your Services

This section is about more than just the services you are providing. It is also about why people in your area need them—what problem are you solving? As a handyman, you may focus on how you help homeowners who lack the skills and time to repair and maintain their homes themselves.

As you describe your services, you should also talk about your competition. Who else is solving the same problem as you? How will your business do it better? Maybe you offer a specialty service that other handymen in your area do not, or you offer appointments outside of normal business hours.

3. Your Target Market

Here you will describe your ideal customers or target market. Be as specific as possible. Are you targeting residential or commercial properties? Homeowners or renters? How much do they make? What do they do for work? The more detail you can provide, the easier it should be to make a marketing plan and advertise to these people.

You should also provide any market research you have in this section. Explain how the market for handyman services is growing in your area and how you are able to take advantage of this growth.

4. Marketing & Sales

Once you understand who your ideal customer is, you can create a strategy to sell your handyman services to them. This section goes over how you plan to reach customers (your advertising and marketing plans), your pricing, and other steps you need to take to help your business succeed.

5. Company Organization

Many handymen operate as sole proprietors, but this is not always the case. You might adopt a partnership, LLC, or other business structure that suits your business. A lawyer or accountant can help explain your options and the pros and cons of different types of business structures.

If you are already up and running, you could also talk about your business history in this section. You might include short bios of key team members that highlight their background and expertise.

6. Financial Projections

This is often the most intimidating part of a business plan for many people. However, discussing your business financials may be easier than you realize, and you can always ask for professional accounting help if you need it.

The financial projections section of a business plan usually includes:

• Sales and revenue forecast – Monthly projections for the first 12 months and annual projections for the next three to five years.
• Profit and loss statement – An income statement that clearly shows if your business is making a profit or taking a loss.
• Cash flow statement – This keeps track of how much money you have in the bank at any given point.
• Balance sheet – The financial health of your business; a list of your assets, liabilities, and equity.

A Plan for Your Handyman Business

A handyman business plan could serve as a valuable guide for your company. Whether you’re just starting out or are an established tradesman, it’s never too late to write your own business plan. The time and effort you put into creating this document may be well worth your time and crucial to your future success.

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How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

Build your dream business with the help of a high-paying job—browse open jobs on The Muse »

What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

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Business Plan for Sole Proprietor

Published Jul.02, 2024

Updated Jul.02, 2024

By: Alex Silensky

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Table of Content

A sole proprietorship is the simplest and most common form of business ownership, where a single individual owns and operates the business. Creating a business plan as a sole proprietor is essential for setting a clear direction, attracting potential investors, and managing your business effectively. This comprehensive guide will provide a detailed roadmap for developing a robust business plan for a sole proprietor, covering key components such as market analysis, business structure, marketing strategies, financial projections, and more.

Understanding Sole Proprietorship

A sole proprietorship is a business owned and run by one person, with no legal distinction between the owner and the business entity. This form of ownership offers several advantages, including simplicity, full control over decisions, and straightforward tax filing. However, it also comes with personal liability for business debts and obligations. Understanding these aspects is crucial for anyone looking to start and successfully run a sole proprietorship.

Market Evaluation

Before diving into the specifics of your business plan, it is essential to conduct a thorough market evaluation. Understanding the market dynamics, customer needs, and competitive landscape will help you make informed decisions and identify opportunities for growth.

Insights into the Sole Proprietorship Industry

The sole proprietorship industry encompasses a wide range of businesses, from freelance services and small retail shops to independent consultants and tradespeople. According to the U.S. Small Business Administration, sole proprietorships make up about 73% of all businesses in the United States. This prevalence underscores the importance of a well-crafted business plan to navigate the competitive landscape and achieve long-term success.

Benefits of Writing a Business Plan for Sole Proprietors

Writing a business plan offers numerous benefits for sole proprietors. It provides a clear roadmap for your business, helping you to set realistic goals, allocate resources effectively, and track progress. A well-structured business plan can also attract investors and lenders by demonstrating that you have a viable business idea and a solid strategy for achieving success. Additionally, it can help you identify potential challenges and develop contingency plans to address them.

Key Components of a Business Plan for Sole Proprietor

A comprehensive business plan for a sole proprietor should include the following key components:

Executive Summary

The executive summary is a concise overview of your business plan, highlighting the main points and objectives. It should provide a snapshot of your business, including your mission statement, product or service offerings, target market, and financial goals. Although it appears first in the business plan, it is often written last, after you have detailed all other sections.

Business Description

The business description provides an in-depth look at your business. Describe your business, including its name, location, and the products or services you offer. Explain what makes your business unique and how it addresses a specific need or gap in the market. Include details about your business structure, such as your legal name, form of ownership, and any relevant licenses or permits.

Conducting a market analysis involves researching your industry, target market, and competitors. Identify your target market’s demographics, preferences, and buying behavior. Analyze industry trends and growth projections, and assess the competitive landscape by identifying your main competitors, their strengths and weaknesses, and your competitive advantage.

Insights into the Excavation Industry

Conducting thorough market research is vital for any business plan, especially for sole proprietors in specialized industries like excavation. The excavation industry is essential in construction, infrastructure development, and even landscaping. By understanding the specific demands and opportunities within this sector, you can tailor your business plan to meet market needs more effectively. The market for excavation services has been growing steadily due to increased urban development and infrastructure projects. According to a report by Allied Market Research , the global excavation market is projected to reach $63.5 billion by 2027, growing at a CAGR of 4.8% from 2020 to 2027.

Organization and Management

As a sole proprietor, you may be the sole decision-maker, but it’s still important to outline your management structure. Describe your role and responsibilities, and include any plans for hiring employees or working with contractors. Detail your business’s organizational structure, including any key advisors or mentors who provide guidance and support.

Products and Services

Provide a detailed description of the products or services you offer. Explain the benefits and features of each product or service, and highlight what sets them apart from competitors. If applicable, discuss your product development process, any intellectual property protections, and your plans for future product or service expansions.

Marketing and Sales Strategy

Your marketing and sales strategy outlines how you plan to attract and retain customers. Describe your pricing strategy, promotional activities, and sales tactics. Discuss your brand positioning, target audience, and marketing channels you will use to reach your customers. Include details about your sales process, customer service approach, and any plans for loyalty programs or referral incentives.

Financial Projections

Financial projections are a crucial part of your business plan, providing a forecast of your business’s financial performance. Include projected income statements, cash flow statements, and balance sheets for at least the next three to five years. Provide a break-even analysis to determine when your business will become profitable. Discuss any funding requirements, potential sources of financing, and your strategy for managing expenses and revenue growth.

Sample Business Plan for Sole Proprietor

To help you get started, here is a sample outline of a business plan for a sole proprietor:

• Brief overview of the business
• Mission statement
• Key products or services
• Target market
• Financial goals
• Business name and location
• Description of products or services
• Unique value proposition

Market Analysis

• Industry overview
• Target market demographics
• Competitive analysis
• Owner’s role and responsibilities
• Organizational structure
• Detailed description of products or services
• Benefits and features
• Plans for future offerings
• Pricing strategy
• Promotional activities
• Sales tactics
• Projected income statements
• Cash flow statements
• Balance sheets
• Break-even analysis
• Funding requirements

Business Plan Template for Sole Proprietor Design Business

For those in the design industry, creating a tailored business plan can help you focus on your unique strengths and market opportunities. Your plan should highlight your design philosophy, portfolio of work, and target market. Emphasize your expertise in specific design areas, such as graphic design, interior design, or web design, and outline your strategy for attracting clients through online portfolios, social media, and networking events.

How to Write a Small Business Plan for Handyman Sole Proprietor

Writing a business plan for a handyman business involves detailing the services you offer, your target market, and your pricing strategy. Highlight your skills and experience, and explain how you will market your services to homeowners, property managers, and businesses. Include information about your tools and equipment, any necessary certifications or licenses, and your plans for expanding your service offerings.

Sole Proprietorship Business Plan Example

An example business plan for a sole proprietorship might be a freelance graphic designer. The plan would include a description of the services offered, such as logo design, branding, and marketing materials. The market analysis would identify target clients, such as small businesses and startups, and analyze competitors. The marketing strategy might involve showcasing a portfolio on a professional website, leveraging social media, and networking at industry events. Financial projections would include expected revenue from client projects, expenses for software and marketing, and break-even analysis.

Creating a Business Plan Template Free

Many online resources offer free business plan templates that can be customized to fit your specific needs. Websites like HubSpot , Wrike , and Shopify provide templates and guides to help you create a comprehensive business plan. These templates typically include sections for the executive summary, business description, market analysis, organization and management, products and services, marketing and sales strategy, and financial projections.

Form of Ownership in Business Plan

When detailing the form of ownership in your business plan, clearly state that your business is a sole proprietorship. Explain why this structure is advantageous for your business, such as simplicity, full control over decisions, and ease of tax filing. Acknowledge the potential downsides, such as personal liability for business debts, and outline any measures you will take to mitigate these risks.

Business Plan LLC vs. Sole Proprietorship

While this guide focuses on sole proprietorships, it’s important to understand the differences between a sole proprietorship and a limited liability company (LLC). An LLC provides limited liability protection, meaning your personal assets are protected from business debts and lawsuits. However, LLCs require more paperwork, ongoing compliance, and fees compared to sole proprietorships. When choosing the right structure, consider your business’s specific needs, potential risks, and growth plans.

A well-crafted business plan is essential for the success of a sole proprietorship. It serves as a roadmap for your business, helping you set clear goals, attract investors, and manage your operations effectively. By conducting thorough market research, defining your business structure, and developing detailed financial projections, you can create a robust business plan that positions your sole proprietorship for long-term success.

Get Started with OGS Capital Today

Ready to take the next step in your business journey? Start developing your business plan today to set a clear path for your sole proprietorship. For professional guidance and a customized business plan, get started with OGS Capital today. Your dedication to planning and preparation will lay the foundation for your business’s success. Start now and turn your business dreams into reality!

Frequently Asked Questions 

What type of business is best for sole proprietorship?

A sole proprietorship is ideal for small businesses with low liability risks and simple operations. It suits freelance services, consulting, retail shops, and trades like handymen or graphic designers. These businesses benefit from easy setup, full control, and straightforward tax filing. However, high-risk businesses may require additional liability protection not offered by sole proprietorships.

How to write a business plan for a sole trader?

To write a business plan for a sole trader, start with an executive summary outlining your business goals and services. Include a detailed business description, market analysis, and competitor review. Define your marketing and sales strategies, organizational structure, and financial projections. Clearly state your form of ownership and address how you will manage personal liability and risks.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Home >> #realtalk Blog >> Manage a business >> How to write a resta…

How to write a restaurant business plan + free template (2024)

By Homebase Team

Whether you’re living the dream of opening your own restaurant or reworking your existing concept, a restaurant business plan template takes a ton of stress out of writing a business plan.

With prompts for every section you’ll need, we’ve created our free restaurant business plan template to be your operational foundation (you’re welcome!). Something you can download, customize, and come back to whenever you make business decisions for your restaurant.

But first, let’s go through all the ways a written business plan helps shape your restaurant, and why it boosts your business’s chance of success.

What is a restaurant business plan?

A restaurant business plan is a written document that lays out an overview of a restaurant, its objectives, and its plans for achieving its goals.

It’s needed across all kinds and sizes of restaurants, and can be a handful of pages long or much more detailed. A well-written restaurant business plan not only helps you organize your ideas, it’s also a key part of getting investor funding .

Starting a restaurant? Here’s why you need a business plan. 

Creatively, opening a new restaurant can be incredibly exciting. But it’s also super complicated. From licenses, to equipment, to building a team, each phase needs a lot of attention to detail.

Before you jump in, it’s important to shape your plan of attack, organizing your business ideas into a clear, concise narrative that an outsider could easily understand. A business plan is an essential part of this—and here’s why.

Your business plan helps you:

Set short and long-term goals.

A restaurant business plan not only shows how your business will operate in its early stages, it also shows what steps it’ll need to follow as time goes by. Setting both your short and long-term goals at the outset makes you more likely to achieve them.

Understand your resource needs.

Going through the exercise of writing a restaurant business plan is as important as having the finished document in front of you. As you organize your thoughts, your resource needs—from the amount of capital you need to raise all the way down to the equipment you need to find—will take shape. 

Reduce potential risks.

Sadly, some 60% of restaurants fail within the first year of opening. One of the main reasons? A failure to plan. Your business plan will help you plan for most challenges at your restaurant before they come up, keeping you on the right side of that number.

Develop a marketing strategy.

As you do your market analysis and figure out who your customers are likely to be, the ways you’ll promote your business will get clearer. The more specific you are with your market research, the easier and more effective your marketing efforts will be.

Build your team.

Your business plan helps you see who you’ll need on your team and which roles you’ll need to fill first . For investors, it’s a document showcasing everyone’s collective experience, personalizing your restaurant in their eyes and packing a professional punch.

Share your vision.

Whether you’re using your business plan to secure startup funding or need additional capital after you’ve already opened, your restaurant business plan shows an investor or lender exactly why they should get behind you. 

The 9 elements of a strong restaurant business plan.

Your restaurant business plan will be unique to your vision. But all good business plans hit standard points, and whoever reads yours will expect them. As you develop and finalize your ideas, here are nine key elements you should include. 

1. Executive summary

A strong restaurant business plan begins with a strong executive summary. This is a sharp, concise overview of your restaurant and your opportunity to grab people’s attention.

Here’s where you communicate, in a nutshell, what kind of restaurant you want to run. Which demographic will you be targeting? Why is your business something the community wants or needs? Especially if you’re asking for financing, include a snapshot of your financial information and growth plan as well. 

Your executive summary should briefly lay out:

• Your mission statement. Why are you starting this restaurant now, in this location? 
• Your idea. What’s the concept of this restaurant?
• Your plan of execution. What are your key steps to making this concept work?
• Your potential costs. What are your expected expenses?
• Your anticipated ROI. How much do you expect your restaurant to make?

Many investors will make a split-second decision off of the executive summary alone—it might be all they’re going to read, so make every word count.

2. Company description

Now it’s time to let your creativity out and give your restaurant concept life. Give a more detailed description of your concept that lets your passion for what you’re creating come through. 

Flesh out all the other details of your proposed restaurant, including your restaurant’s:

• Style of cuisine and any unique selling points or differentiators that will make customers choose you
• Service style
• Restaurant name (or at least ideas)
• Size, seating style, and capacity
• Location ideas or the location you’ve scouted or secured
• Ambiance ideas including décor, lighting, and music
• Operating hours
• Other service offerings like whether you’ll offer delivery or takeout, delivery guarantees, catering, and any retail products you plan to sell
• Legal structure (e.g. sole proprietorship, LLC) 
• Existing management and their roles, including yours
• Experts or advisors you’ve brought on board

3. Market analysis

Present the research you’ve done on your target market. Make a couple of buyer personas to represent your future customers, explaining:

• Where your target customers live
• Their income levels
• Their dining-out and/or ordering-in pain points (e.g. lack of late opening hours, lack of family friendliness)
• How often they dine out or order in

Go through which other restaurants already have a customer base in your area, then explain why people will choose your restaurant over others. 

4. Sample menu

Even at the business plan stage, menu engineering is crucial. The specific menu items you’re likely to serve—the biggest thing that will set you apart—should shine through with descriptions that are short, clear, and evocative. If you have an executive chef already, this is a great area for them to add input.

Use language that will get people excited about trying your offerings. Hire a designer or use an online program to create your own mockup using the same colors, fonts, and design elements as the rest of your branding. 

5. Business structure

Dive deeper into your business structure (sole proprietorship, partnership, LLC, etc.) and organizational management. Show what your different employee positions will be (co-founders, managers, servers) to give a sense of your team’s makeup. An organizational chart can be helpful here.

Investors won’t expect you to have your entire team on board at this stage, but you should have at least a couple of people firmed up. For the roles that are already filled, including your own, summarize your collective experience and achievements. Bullet points work well, or some people choose to go into more detail with full resumes for the executive team or critical team members.

6. Restaurant design and location

Long before you sign a lease, make sure that your new offering will outshine existing ones nearby. In this section of your business plan, explain why your chosen location, or the ones you’re narrowing down, are going to be an effective space for your target market.

Consider things like:

• Neighborhood demographics
• Foot traffic
• Labor costs
• Accessibility

Hand in hand with location, your restaurant’s interior design—both in its floor plan and its ambiance—is also crucial to your business’s viability. Come up with a captivating restaurant design that communicates your theme and matches your cuisine, creating a memorable customer experience. Decide how many tables you’ll be serving, and plan out any outdoor seating.

Touch on things like:

• Team uniforms
• Flatware and glassware

7. Marketing strategy

How do you plan to market your restaurant? Your plan for grabbing customers’ attention is vital to getting diners through the door, especially at the beginning before word-of-mouth advertising has taken off.

What kind of offers will you provide? Will you have promotional events, direct mail, or a social media strategy ? Go through your planned marketing campaigns and explain how each of them will help secure your target market. 

8. Takeout and delivery options

If you’ve decided to have takeout and delivery at your restaurant—pretty important for most target markets—decide whether you’ll use your own drivers or a professional fleet like Uber Eats or DoorDash.

Show how you’ll provide the smooth digital experience your customers will expect. Decide if and how your website will come into play, bearing in mind that in 2023, 40% of consumers preferred to order directly from the restaurant website .

9. Financial projections

Your restaurant’s projected budget need to be solid, especially if you’re using your business plan to get startup funds. Without this, investors have no way of knowing if your business is a good investment or when it will become profitable.

Hire an experienced accountant with expertise in running restaurants and write down your market research, your planned costs , and your projected income. Show how investor funds will be used and whether you’ll be putting up collateral to get a loan. Give a sales forecast, usually for the first five years, and make sure to give a break-even analysis.

Get started with our free restaurant business plan template.  

As the team behind Homebase , we know how much there is to consider when you’re starting a new restaurant. We’re proud to be an all-in-one partner for thousands of restaurants large and small—helping make everything from staffing, to scheduling, to team communication easier for business owners.

And we know that your restaurant business plan is a high-stakes document. That’s why we created our free restaurant business plan template to make sure nothing gets overlooked.

Check out our free, downloadable template to get your ideas into shape, get started on your restaurant journey—and get investors excited to jump on board with you. 

Download your restaurant business plan template for free: Restaurant business plan + free template (2024)

Stop chasing down phone numbers with our built-in team communication tool. Message teammates, share updates, and swap shifts — all from the Homebase app.

Restaurant business plan template FAQs

What is the basic planning document for a successful restaurant.

The basic planning document for successful restaurants is a restaurant business plan. A restaurant business plan lays out a restaurant’s long and short-term goals and its plans for achieving those goals. Restaurant planners use it both to finetune their ideas and to secure investor funding.

How to write a restaurant business plan.

When writing a restaurant business plan, include an executive summary, a detailed restaurant description, market analysis research, a sample menu, a breakdown of your business structure, the design and location of your restaurant, your planned takeout and delivery options, your marketing strategy, and your financial projections.

What makes a business plan template for restaurants different from a standard business plan?

A restaurant business plan template differs from a standard business plan by including things like menu engineering, interior design, kitchen operations, front-of-house management, takeout and delivery offerings, and location analysis, which are unique to the food service industry.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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• What is an FHA 203(k) loan? 

Types of FHA 203(k) loans

• How to qualify
• The process

FHA 203(k) loan vs. conventional loan

Fha 203(k) loans.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.

• An FHA 203(k) mortgage rolls the selling price of a home and the cost of needed repairs into one loan.
• A minimum credit score of 500 is required to qualify, with down payments as low as 3.5%.
• You can also use an FHA 203(k) loan to refinance your current mortgage to pay for renovations.

Finding an affordable, move-in-ready home in a competitive market can be a big challenge. When there are more buyers than sellers in a particular area, you may find yourself in a situation where bidding wars are pushing prices out of the range you're able to pay.

One way to solve this problem is to find a fixer-upper house in the place you want to live and finance it with an FHA 203(k) loan.

What is an FHA 203(k) loan? 

An FHA 203(k) loan is a government-backed mortgage that combines the purchase price of a house and the cost of the needed renovations into a single loan. Existing homeowners can also use an FHA 203(k) to refinance. "It's the perfect loan for the ugly house that won't sell," says mortgage broker Kris Radermacher of Klear2Klose Team powered by Lincoln Lending Group. "It allows a buyer to go in and negotiate on a home at a lower price and get it to a higher value."

There are two types of FHA 203(k) mortgages, each with different borrowing limits and allowable renovations. If using an FHA 203(k) to buy a home, it must be used as your primary residence. They aren't allowed for investment properties. The loans can have fixed or adjustable rates, with down payments as low as 3.5%. You can use them to finance single-family homes, one-to-four-unit properties, as well as condos and townhomes under certain conditions.

If you don't plan to live in the home during construction, you can finance up to six months of mortgage payments .

There are two types of FHA 203(k) loans with different guidelines and rules for how much you can borrow and how the money is used. The type you choose will depend on the repairs needed.

Limited 203(k) loan

These apply to smaller projects with fewer requirements. They provide as much as $35,000 for renovations, with no major structural repairs.

Standard 203(k) loan

These are used for major structural repairs. Renovation costs must be at least $5,000. An approved FHA 203(k) consultant is required to supervise the project.

Benefits of an FHA 203(k) loan

FHA 203(k) loans have several perks, and they can be a good fit for both homebuyers and existing homeowners in the right situation. Here are some of the benefits these loans come with:

Flexible credit requirements

FHA 203(k) mortgages are backed by the Federal Housing Administration. The qualifications are similar to those for regular FHA loans , which can be easier to get than conventional mortgages. You may be able to get one with a 580 credit score (or sometimes 500, depending on your lender).

Lower down payment requirements

FHA loans also have low down payment options. As long as you have a 580 credit score or higher, you can get a 203(k) loan with just 3.5% down. That's $10,500 on a $300,000 home.

Ability to finance repairs and renovations

FHA 203(k) loans are a good option for buyers in competitive markets where there is a shortage of affordable homes. An FHA 203(k) loan can make it possible to purchase a fixer-upper that other buyers might pass by because of the extra work involved.  

Additionally, if your home needs home improvements such as remodeling the kitchen, new bathrooms, or flooring, you can also refinance with an FHA 203(k) and include the renovation costs in your mortgage.

How to qualify for an FHA 203(k) loan

If you're thinking about using an FHA 203(k) loan for your home purchase or refinance, you'll need to make sure you qualify first.

Eligibility requirements

Below are the FHA 203(k) loan requirements, which are similar in most ways to a regular FHA loan.

• Credit score : A minimum credit score of 500 is required.
• Down payment : A minimum down payment of 3.5% is required if your credit score is 580 or higher. The down payment is 10% for scores between 500-579.
• Debt-to income ratio : Your debt-to-income ratio (including your proposed monthly housing payments) should not exceed 43% of your income. 
• Property type: Eligible property types are single-family homes, one-to-four unit properties, and individual-owned condo or townhome units for interior repairs only.
• Occupancy: The owner must reside in the home. 
• Homebuyers: Loans are available to all borrowers, including first-time homebuyers and existing homeowners who want to refinance.
• Income: There are no income limits.

The FHA 203(k) loan process

Here's the what the process for buying a home with an FHA 203(k) loan:

Application process

The first step is to find an authorized FHA 203(k) mortgage lender and get pre-approved. You can use the US Department of Housing and Urban Development's search page to determine if a lender has done a 203(k) loan in the past 12 months.

Find your home

Find a home that requires renovation. Searching through local online listings for homes that are priced below the area's market value is one way to do it. You can also try keywords such as "fixer-upper" or "handyman special," which is how real estate agents often market such properties. A local buyer's agent can also help you find a place. When you find a home that needs repairs, make sure you let the seller know that you'll be using a 203(k) loan to complete the purchase.

Select your contractor and get bids

When you buy a property that needs structural repairs, you're required to use an FHA-approved 203(k) consultant.  Some 203(k) consultants are licensed contractors and home inspectors. You can search on the HUD website for an approved 203(k) consultant or licensed contractor. An easier way may be to ask a licensed mortgage lender who may know 203(k) consultants to recommend. 

The 203(k) consultant will work with you on the remodeling plans and, having worked under the FHA 203(k) process, be familiar with the requirements. 

Get an offer from a contractor in writing

Once you've accepted a bid from a contractor to do the work, get a detailed offer in writing. It should include all renovation costs including labor and materials. There should also be a specific timeline for the work to be completed.

Submit all the information to the underwriter

The underwriter will work with the appraiser to determine the after-repair value, which determines the loan amount.

Close the loan

When all the above paperwork is finalized, the loan is closed. The purchase amount is disbursed to the seller. The remaining funds to renovate the home go into an escrow account and are disbursed based on the agreed-upon contract.

Managing renovations

The renovations must begin within 30 days of closing the loan, and the work must be completed within six months. If the project is not extensive, you can move into the house right away and live there as it is being completed. If you can't live there during the renovations, it's possible to finance as many as six months of mortgage payments before you move in.

You can also get conventional renovation loans, like the Fannie Mae HomeStyle loan, for example. This would also allow you to buy a home and finance repairs at the same time.

Key differences

There are several key differences between FHA 203(k) loans and conventional renovations loans, including:

• Eligibility requirements: Conventional loans typically require a higher credit score than FHA 203(k) loans. You'll usually need a 620 or higher.
• Mortgage insurance : A FHA 203(k) loan comes with automatic mortgage insurance that you'll pay upfront and every month for the life of the loan. Conventional renovation mortgages won't always come with mortgage insurance and, even then, you can cancel it once you have enough equity.
• Renovation details: Conventional loans allow most renovations (aside from fully rebuilding  the home). FHA 203(k) loans are more strict and exclude items considered "luxury." 
• Property type : FHA 203(k) loans are only for primary residences. You can use a conventional renovation loan for second homes, investment properties, and multi-unit homes.

The right choice between these two loans depends on your financial profile, your goals for the property, and your budget.

Pros and cons

As with any financial decision, using an FHA 203(k) has both its benefits and drawbacks.

While this type of mortgage may provide a way for someone with a lower credit score or less cash for a down payment to get into a home in an area they might not otherwise be able to afford, the process is more complicated and time-consuming than buying a turnkey home or using a home improvement loan separate from your mortgage. 

An FHA 203(k) loan also requires that you pay mortgage insurance. And you aren't allowed to offset the renovation costs by doing any of the work yourself.

Here's a summary of some of the main pros and cons to consider:

FHA 203(k) loan FAQs

An FHA 203k loan is a government-backed mortgage that allows borrowers to finance both the purchase and renovation of a home.

To get an FHA 203(k) loan, you'll need to meet the lender's minimum credit score, have stable income, and have a down payment of at least 3.5%.

FHA 203(k) loan benefits include lower down payment requirements, flexible credit criteria, and the ability to finance home repairs and renovations.

The standard 203k loan covers major renovations with no maximum repair cost, while the limited 203k loan is for minor repairs up to $35,000.

You can apply for an FHA 203k loan through an FHA-approved lender, who will guide you through the application and renovation process.

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