Home |  Business Startup Guides |  About Us |  Policies |  Contact



Handyman Business & Estimating Guide

By HandyDavid

sampleAbout The Author:

I have been involved with the handyman and construction industry for over 30 years. I currently live in Florida but I have lived in Nevada, California, Mississippi and Iowa.

If you are considering becoming a handyman and have a good general knowledge of construction or you are mechanically inclined and learn quickly then you will have a great career as a handyman. You do not need to know how to perform every job there are plenty of how to books in the home improvement stores to help you with the hands on part of the job.

First thing you want to remember is to be fair with your pricing. As a handyman doing the work yourself you will not become rich but you will make a good living. Being your own boss is very rewarding and fulfilling.

Over time you will get a handful of clients that will keep you busy full time. I have three one owns a Title company and two commercial buildings with rental space. I take care of her buildings and her residence. I also do work for most of her employees at one time or another. This person and her employees and friends keep me very busy. My second client has five commercial metal buildings from 5,000 to 10,000 sq ft each. I get them ready for tenants and any office build outs. I also do work at his residence when needed. My third client has 6 rental homes that I maintain along with his personal residence.

It takes time to build relationships with clients to develop your business into what I have. You will start out working for a lot of different people which is great there is nothing wrong with that, it will build a great business. But you will see once you work for a few business owners and they find out you are a hard worker and fair they will want to keep you busy because they do not want to lose you to someone else.

Download E-Book

If you would like to download this author's work in an easy to read & print E-Book format click on the button below. Thank you for your support.

Business Sections

Qualifications:

Be Handy, you don’t have to already know everything to become a handyman. There are plenty of excellent “How To” books and help at Home Centers. Besides, you only need to take on jobs which you are comfortable in doing.

When starting out don't be afraid to try something you are completely sure how to do. Just be up front with your customer about your handyman skills. Explain to them that it will look great when you’re done but it may take a little longer because you have not done this particular project before. Just make sure you give them a break on your hours you charge. If you get asked to do something that is either too difficult for you or they could save money by using someone that specializes in that field let them know. Always be honest.

The biggest problem you will have starting out as a handyman is turning down jobs that are too big and time consuming. You will not be able to afford to take on a 2 month project and loose all the small jobs. In the long run the small jobs will be your business and if you keep putting clients off they will find another handyman to do it. Then once you finish you big job you will be starting all over again trying to build up a client base. Now there are seasons that business may be slow. Once you know when these times are you can take on that bigger project.

Getting Started as a Handyman:

Ok you have decided to start your own handyman business. Here is a list of things to check and make sure you are ready.

Get together some basic materials.

Look professional, printed shirts or printed hat. Put together a uniform of sorts. Same color shirt with handyman on it. Wear the same color jeans. Good pair of sneakers, remember you go in and out of houses a lot so if you get work boots make sure they do not track a lot of dirt. Always have extra shirts with you so you can change into a clean one if needed.

Now you are ready to start letting people know you are in business. Start with friends, relatives, business people you already know. After you exhaust all of your own contacts and their contacts it will be time to start your plan for advertising.

Handyman VS Handyman Franchise

I have much simpler goals and like to keep it simple. (KISS) My objective is to:

I try to always keep focused on these objectives and not get distracted. I am and want to be “A Handyman”

Some other advantages to being a Handyman are:

Common misconception:

I would describe the “Handyman Business” as being an independent business or franchise which:

This “Handyman Business / Franchise” requires business management education and skill sets.

 

Purchase a Handyman Franchise

This is actually very different then being a handyman. To own a handyman franchise you do not necessarily need to be a handyman. What you need to be is a good business man. Now it does help to be knowledgeable in construction work but not a necessity. Many of the handyman franchises are extremely successful. They will give you great support and advertising power. They hold your hand the whole way. If you have the money and are looking to have a larger operation this may be the way to go.

Licenses:

Every state is a little different when issuing a license to become a handyman. Some states like California will only let you do work if the total job is under $500.00. Many Florida counties are trying not to even issue licenses. I am not trying to scare you from becoming a handyman; actually I think it is probably one of the best businesses to start. Now here is some very good advice and I suggest you pay attention.

When going for your handyman occupational license in any of the states along the gulf coast always play dumb. Go in and tell them you are going into business (do not say what type of business if asked, tell them you are not sure what you would classify it as) tell them you are going to do some simple things for people like hang pictures, clean windows, yard work, assemble office furniture that comes in a box, hang holiday decorations, fix broken door knobs. Keep it simple; let them find the license for you. They will probably give you a general maintenance license which will cover everything you need. After they give you the license ask them if they have a paper explaining what type of jobs the license will allow you to do. Explain to them you do not want to do anything you shouldn't. I know this sounds crazy, but because of the hurricanes many of the gulf coast states are trying to make everyone have a contractor’s license for everything. The problem is contractors will not come out for the small jobs.

Occupational License

If you are going to operate a handyman business you must get an occupational license. Now before you head down to your local licensing board you need to have a few things figured out. I put them in order of so you can go step by step making it easy.

Once you take care of these steps it is time to get your handyman occupational license. This is not usually very difficult. Either in your phone book or on the internet and find your local city hall occupational license division. Most license are under $100.00 and they will give you a simple form to fill out and if you chose a fictitious name you will have to usually run it in the local town paper to make sure no one else has a claim to it. Some cities do not require this. If you went through the steps I listed you will have little to no problems getting your license.

Getting Insurance

This is a must. Some counties require you have insurance in order to obtain your occupational license. Your customer will be most likely to use a handyman who is insured then someone who is not. I go over some of your insurance options and some of the companies that are offering good rates in my section on insurance. This is a good thing to remember when you hire someone to work in your house, if the person working in your house is not insured and they get hurt your homeowners insurance will end up paying and your rates will go up. You do not have to be over insured but you need something.

Download E-Book

If you would like to download this author's work in an easy to read & print E-Book format click on the button below. Thank you for your support.

Insurance:

You will find many handymen do not carry insurance. This is a big mistake. The cost of the insurance will be offset by the quality of the customers you will end up doing work for because you have insurance. Always put licensed and insured on all of your business stationary, advertising and signs. I will go over the basic insurances you will need or should purchase for your handyman business.

Liability Insurance

Liability coverage will compensate others for their losses if you're responsible for injuring another person or if you're responsible for damaging another person's property. Liability coverage also helps you pay the costs of related lawsuits. Imagine if you had to pay for all this without insurance! I suggest getting a minimum of $300,000 dollar worth of liability insurance. If you can afford to purchase $1,000,000 of general liability would be ideal. My understanding is that Net Quote is giving the best rates at this time. It only takes a few minutes to fill out their quote request form. I would take care of it now so when you get ready you will know what it is going to cost you.

Workman's Comp

You will not need this in most states unless you hire employees. I highly recommend if you start to hire employees look into using a payroll leasing company. What they do is act as the employer, because of this they will do all your payroll handle the taxes and any audits, stay up on all the insurances and so on. You will pay them and they will pay everyone who works for you. They do this for many businesses so they get a huge break on insurances. This usually in itself will justify the cost of using them. You will also be able to offer your employees the option of purchasing health and Life insurances along with setting up retirement accounts through the payroll leasing company.

Health Insurance

If your spouse can not add you to her policy, then you will have to check around because this can get costly. Check with your small business association in your area, many times they have good deals because they get a group rate. I shop my health insurance every year and so far no one has been able to beat the quotes I get from Assurant Health and Net Quote they also offer business insurance so you mine as well check their rates also. I pay $225.00 per month for me and my wife's health insurance and that is good deal.

Inland Marine Insurance

This insurance coverage is a broad type of insurance protecting articles that are transported from place to place from the risks associated with moving, storage and usage. If you find yourself moving a lot of items with a commercial account you may have then I would look into this insurance, but for the most part I doubt you will need it.

Life Insurance

Take care of your spouse and get some life insurance. The cost is cheap for a term policy and it is well worth the money. I mean it is something like $15.00 for 250,000 dollars. While you are at Net Quote filling out for the business insurance take 1 minute and answer the 5 questions and get a quote. When you live on two incomes just think how your spouse will get by if you are not around to help out. Depending on the structure of your business and the type of services you will be providing, insurance needs will vary greatly. Some people starting out are already wealthy people and therefore will have more to lose and require more insurance. The largest amount you could possibly be sued for is the amount of insurance coverage to obtain, not what your business is worth. These are only suggestions and I wouldn't presume to dictate what you need. It is best to discuss your individual needs with a professional insurance agent.

Incorporating:

Corporation

A business may incorporate without an attorney, but legal advice is highly recommended. The corporate structure is usually the most complex and more costly to organize than the other two business formations. Control depends on stock ownership. Persons with the largest stock ownership, not the total number of shareholders, control the corporation. With control of stock shares or 51 percent of stock, a person or group is able to make policy decisions. Control is exercised through regular board of directors' meetings and annual stockholders' meetings. Records must be kept to document decisions made by the board of directors. Small, closely held corporations can operate more informally, but record-keeping cannot be eliminated entirely. Officers of a corporation can be liable to stockholders for improper actions. Liability is generally limited to stock ownership, except where fraud is involved. You may want to incorporate as a "C" "LLC" or "S" corporation. This is one of the easiest and least expensive places to incorporate. They are online and can incorporate you for any state. Incorporate Online Inexpensively

How does incorporating help a small handyman businessman?

If the handyman business goes bankrupt, you limit your loss to what you have invested in the corporation. Your other personal assets are protected. Why would a small business go bankrupt? The business is not profitable and is forced into bankruptcy by creditors for supplies, materials, rent, etc. Something is done by an employee of the corporation, which has caused a lawsuit or claim not covered by insurance or in excessive of insurance limits. Let’s say you are going to be in your own business. Suppliers are going to require you to sign a “personal guarantee” before opening accounts. If you personally do something wrong which causes a lawsuit, the corporation does not protect you from personal liability.

Why Not Incorporate

The expense and time in setting up the corporate entity (about $1,000) The tax returns of a Cooperation (no matter how small) must be completed by a CPA (about $2,000 a year) The Expense and time invested in government compliance to hold the corporation active (about $500 a year)

Sole Proprietorship

This is the easiest and least costly way of starting a handyman business. A sole proprietorship can be formed by finding a location and opening the door for business. There are likely to be fees to obtain business name registration, a fictitious name certificate and other necessary licenses. Attorney's fees for starting the business will be less than the other business forms because less preparation of documents is required and the owner has absolute authority over all business decisions. This is how most handyman start out. Once again Florida throws a curve. In Florida if you are a sole proprietor you must have workman's comp insurance. If you incorporate you can exclude yourself from workman's comp. Because of the cost of workman's comp insurance you may be better off incorporating in Florida.

Partnership

There are several types of partnerships. The two most common types are general and limited partnerships. A general partnership can be formed simply by an oral agreement between two or more persons, but a legal partnership agreement drawn up by an attorney is highly recommended. Legal fees for drawing up a partnership agreement are higher than those for a sole proprietorship, but may be lower than incorporating. A partnership agreement could be helpful in solving any disputes. However, partners are responsible for the other partner's business actions, as well as their own.

A Partnership Agreement should include the following:

Naming Your Handyman Business:

This can be fun so I would include the whole family. Now there are two ways to go. One you can use your personal name, which makes the process a lot simpler. The other way is to choose a fictitious name, this will take some thought to come up with a good name but a good catchy name is worth a fortune when you start advertising. Let’s discuss the pros and cons for each choice.

Personal Name

When using your own name, when your customer pays you in a check you can go directly to their bank and cash it. This will let you know the check is good without waiting a week for your bank to notify you if it bounced. Plus when starting out you sometimes need the cash immediately. Just don't forget to enter the cash you received on your books or the IRS wouldn't know you made it (hmm). Now the downside is using your own name may be hard for people to remember versus a catchy handyman name that sticks in your customers head. Remember word of mouth will be your best advertising so if people can remember your name easily, you will be busier and make more money. Now just because you chose your personal name does not mean you cannot have a catchy handyman name and logo that you use for people to remember you by. The only difference is when people go to write out their check you have to remind them to make it out to your name and not the web name you choose. Sometimes customers will not like this because it seems shady. But if you decide to go this route you can go to hodihosting.net and search for the name to see if it is taken. If you need help creating a great logo you can go to logo works they do a great job.

Fictitious Name

Choosing a fictitious name can be fun and challenging. A couple of things you need to think about. First when you come up with a list of handyman names you like, you need to check and see if the name is available on the internet. If you go to hodihosting.net you can check to see if the name is available. Don't worry you do not have to purchase it at this time. I do suggest that if you decide this is the handyman business name for you that you do purchase the name soon. Also check your name in the online listing of the yellow pages for your state. You don't want to go through the entire licensing and fictitious name search to find out afterwards someone took the name while you were getting everything worked out. Having your own domain name with a simple page explaining what services you offer and how to get in touch with you is vital in today's market. Before settling on a name, call a couple of friends or relatives and try the name on them. Also make sure the name's initials do not spell out something nasty. Now that you have chosen a name you will have to open a business bank account in order for you to deposit checks that you receive and to keep your personal and business accounts separate.

Business Entity

You need to decide whether you are going to operate your handyman business as a sole proprietorship, corporation or partnership. This will take some thought but in my section on incorporating I try to too simplify the decision process for you.

Income & Sales Tax:

Income Tax

Everyone hates the tax man. Now if you incorporate you will have to use an accountant to do your taxes. You will also have to pay your payroll taxes quarterly. If you stay a sole proprietor I would suggest holding out 25% of your gross sales and deposit it in a separate account or make sure you deduct it from the account you use so you do not spend it. Every quarter you must send in your estimated tax payment. The first year you start your handyman business you probably will not have any payment vouchers from the IRS, but after your first year they will estimate your quarterly taxes owed and give you 4 tax slips one to mail in with each quarterly payment.

Sales Tax Certificate

Yes you will need a sales tax number. All materials that you use on the job and charge the customer for are taxable. Labor is not. Now some states may vary from this so make sure you check with states department of revenue where you live. You can go about handling your sales tax responsibilities in two ways. When you make your material purchases you can show them your sales tax certificate and they will not charge you sales tax. Now when you use those materials you charge the customer sales tax on them. Each county sometimes will have a different sales tax rate make sure you charge the correct amount. Now at the end of each quarter when taxes are do you will need to pay your state the tax you collected minus a very small collection allowance. The other way which is much easier, is to pay tax when purchasing your materials just like any customer would. Now you still have to charge the customer tax on the materials you use just like above. The difference is at the end of each quarter when taxes are due you will add up what you collected from each customer and subtract it from the tax you paid on the receipts. This is the amount you will have to send in to your state. This is easier because it keeps you from having to fill out a tax exempt form when making purchases. You will not make the mistake of spending the tax money you collected and not have it when it is due.

Advertising:

Yellow Pages I would not advertise in the yellow pages. I do not even have a land business line. I only use a cell phone. One of the most important things is answering your calls. If you are at a handyman job I would walk out to my truck and take the call or call the person back while I you stand out by your truck. It doesn't look good if you talk on the phone while standing in someone's house while you are supposed to be working. Now granted you will get some business from the yellow pages, but you will also get a lot of empty leads that waste your time. The cost is not worth the return for a one man operation.

Word of Mouth

The very best way to get your handyman name out is word of mouth. Have your friends or family let people know at their work that you are a handyman. Give them plenty of handyman business cards to pass out. When you go to your doctor or dentist make sure you give out your cards to the receptionist or any other worker you come in contact with while you are there. Stop by other professional centers like title companies, law offices and realtors leave them your cards. These types of business have a lot of women working for them. Women are your best customers by far. It does not take long to get started. Once you do a few jobs word of mouth will take off and you will have as much business as you want.

Sample Flyer & Business Card

  1. Business Card
  2. Business Card
  3. Business Card
  4. Newspaper Ad
  5. Newspaper Ad
  6. Newspaper Ad
  7. Flyer (set printer to landscape)
  8. Door Hanger

Join Groups and Organizations

You can join networking groups like BNI they put together a group of businessmen like yourself who help each other with referrals and give each other a chance to talk about marketing and pricing strategies. These groups work well if you commit to them. You could also join the local chamber of commerce and your local small business association.

Signs and Business Cards

Make sure you get some magnetic signs for your truck and or trailer, you can get them at a great price online. VistaPrint make sure they are easy to read. Just your name, phone number, web address, licensed and insured and that you are a handyman. Your business cards also need the same information on them. You can put a little more on you business cards because people have time to look at them, but try to keep them clean and simple. Here is a great place to get handyman business cards VistaPrint. You can also use door hangers. When you do a job for someone hang a door hanger advertisement on the neighbors door, write on it the address of the job you just did. If they have a job they will ask their neighbor how you did. Next thing you know you have another job.

In a Nut Shell

Website:
Bookkeeping:

Record Keeping If you have never been in business before or have a friend that can help you set up your books and explain how to keep them up I would suggest talking to a bookkeeper. There are a few computer programs out there that make the task easy. I would suggest QuickBooks Simple Start it cost about $100.00. I kept my books using a pencil and paper for years. The principal is the same the computer just makes it easy to do the math and look back at your figures to see how you are doing. I would get the program if you can afford it. Now you need to set up your books immediately. You will have entries to make as soon as you get your license and bank account.

The first thing you need to set up in your handyman bookkeeping whether it be manual or on a computer is your chart of accounts. I have put together some basic forms and a sample chart of accounts you can use to get started. You can download the trial version here Microsoft Office Free Trial.

How to Keep Organized

It is very important to start your bookkeeping system from day one. You will have expenditures to enter from the first day of business including the purchase of this information. The more detailed and accurate your records are, the easier to see how your business is doing.

If you are going to write off your actual vehicle expense instead of taking the standard IRS allowed deduction, you need to keep a log. Just keep a notebook in your truck every time you get in it to go to a job write down the date, job and mileage. That's it. Now at the end of each month make a photo copy and drop it in that month's work folder just in case you lose the book.

What You Need

Lets Get Started

Expenses Not Paid-

Take a file folder and label it accounts payable and place it inside one of the penda-flex folders in your file cabinet. For every invoice still owed, mark the due date on top then put them in the folder according to the due date, earliest being first. Once you pay the bill, put it in the plastic box marked expense receipts. Even though the bill was from a different month, enter it in the journal for the date it was paid.

Expenses Paid-

Put all of the current month's receipts for expenditures your business has incurred in the box marked expense receipts. Take them out at the end of the month and put them in order according to date, from the beginning of the month to the end of the month. Now, take one of your journals and mark it expenses. On the top of the first page write the current month and year. Each column can be labeled for one of the expense categories. Example; office supplies, auto repair, gas, phone, advertising etc... Now, take each receipt and write the amount in the correct category. At the bottom of the page, add up each column total for that category. Then add up all the category totals across and this is your expense total for the month. Label your penda-flex folders with each month of the year and put all of your entered expense receipts into the appropriate month.

Invoices Not Paid-

Take a file folder and label it accounts receivable. This is where you keep a copy of each unpaid invoice you've billed your customers. Place them in alphabetical order. After you receive payment, put the invoices in the plastic box marked Invoices paid. This is so you make sure you record them at the end of the month in the journal you will mark accounts receivable. Even though the date on the invoice may be for a different month, record them in the month they were paid. Just list the invoices in one column of the journal. If you want to keep track of a particular clients business, you can create a separate column just for them. Now, at the bottom of the page total the columns down and then across to give you your total income for the month. Then you need to file them alphabetically in the penda-flex folder. Keep a separate folder for customers who frequently use your service.

Invoices Paid-

If your client pays at the time of service rendered or prepays, place the invoice in the plastic box marked invoices paid. This way you will not forget to record them at the end of the month. Then you need to file them alphabetically like previously mentioned above.

Business Checkbook-

One of the first things you should do when you start a business is open a business checking account. You should keep your business account separate from your personal checking account. The business checkbook is your basic source of information for recording your business expenses. You should check your account for errors by reconciling it. Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. You should also note on the deposit slip the source of the deposit and keep copies of all slips.

You should make all payments by check to document business expenses. Write checks payable to yourself only when making withdrawals from your business for personal use. Avoid writing checks payable to cash. If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment. Use the business account for business purposes only. Indicate the source of deposits and the type of expense in the checkbook.

Let’s See How You Did-

Subtract your expenses from your income. This is what you made for the month. Because you are not counting accounts receivable until they are paid, the month may not look as good on paper as it really was. However, this will balance itself out when a financial statement is done at the end of each quarter. This is done the same as each month, just add the totals for the 3 month period and see how you are doing over a greater period of time.

Scheduling:

Time Management

In over 30 years of being self-employed, the managing of time has been the single most difficult hurdle to conquer and overcome and there are times when I still lose the battle.

In a home-based handyman business, time management can be the difference between success and failure just as assuredly as any of the following:

What falls under the term "time management"?

How about procrastination? "Putting off until tomorrow..." Well you know the rest. You can find many excuses to put a task off. "I'll do it tomorrow." or I'll  do it when I have more time." But you never seem to have more time and tomorrow comes... and tomorrow... and tomorrow… and tomorrow…

What about the attitude, “I am the boss!" It is so easy to goof off when you are your own boss, working at home. After all, there is no authority figure above you in the chain of command. But remember, you are the boss and as the boss you are ultimately responsible to get the job done.

Chances are, as a small one person business, it will be solely up to you to get a lot of things done. But look on the bright side, when your business is successful you can hire someone to do all the things you don't want to do, just like your boss does now.

Misspent time or time not spent wisely. For instance, you keep checking and reading your email and not getting other work done or you surf the Internet for no specific purpose or go off on a tangent while doing research on another subject.

You take the easier road or course of action. For instance, you know that promoting and marketing yourself and your web site are ongoing and daily tasks. But they can be boring, arduous and time consuming, so you put up your web site and then sit back and wait to get rich. Then you wonder why you are not successful?

I am sure you or I could find many other ways to "waste time"; I always said I had it down to an art form. But the bottom line is that time, (next to your health) is probably the most important commodity an individual in his or her own business has.

Time management is crucial to your business plan. You must "control" the use of your time; because the one thing you have no control over is the "passing of time". No matter what you do, time is still going to go by, therefore, you should make the most of your time.

What will it take to conquer time? You probably never will! But if you are aware that it is a problem that plagues us all and challenge it, you can be time's master and not its slave.

What you need above all to conquer time is focus and discipline.

Here are, without a doubt, the two most important attributes a self-employed person can possess. Focus and Discipline. If you have focus and discipline, everything else will fall into place.

Some Timely Tips

It's action that makes the difference. Doing something that moves you forward will help you feel you have more control of your day and your workload. Just thinking about doing something is a waste of your time.

Delegate, don't be afraid to enlist the help of others to complete projects that are time consuming or monotonous. Whether you have to ask your wife or your 10-year old son do it.

Set goals. It's much easier to get something done if you know exactly what it is you're working toward. Set long-term goals first and then determine the short-term goals that will serve as stepping stones toward the larger goal.

Sort your mail immediately. Mail can quickly become beastly, taking over every nook and cranny. When you get your mail each day, open it directly over the garbage can. Most likely, the bulk of it can be dropped right in. For the rest, determine what action needs to be taken and deal with it appropriately.

Make an appointment with yourself. Schedule at least one hour each day for "catch up" tasks such as work overflow, returning phone calls, answering emails etc. If you pencil time into your calendar, you're less likely to let the mundane (but necessary) tasks pile up.

Have an assembly line mentality. Complete like tasks together such as returning phone calls, answering email, sending out invoices etc. You'll be much more productive.

Work when you're most alert. Figure out your most productive time of day and set your work schedule accordingly.

Use checklists. For tasks that must be completed on a regular basis, make and keep simple checklists to ensure you don't overlook important steps in the process.

Give everything a place. Don't waste your time trying to find things that seemed to have disappeared. Organize your workspace so that every item has a home. It'll make locating and storing items a snap.

Be prepared to reserve 5 minutes at the end of each day to review your schedule for the next. That way, you'll have no surprises.

Estimating:

Charge by the Hour

This is the fairest way to get paid for you and the customer. I charge $35.00 per hr. but every state has different circumstances that will lower or raise how much you can charge. I found the easiest way to figure how much an hour your area can handle is to go to 4 or 5 local garages, not the franchise ones but the local shops and see what they are charging. Then take 45% of that. So if the average hourly rate of 5 garages is $70.00 then multiply that by %45 (70.00 x %40 =33.75) round it up to $34.00 and that is what I would charge.

Charge by the Job

The problem is some customers need to have an idea how long the job is going to take before you start. This can be difficult sometimes, especially when you are first starting out. I tried to help you with this by including my estimating guide.

Charging For Materials

I do not mark up my materials. I do charge for the time to go get them. Since I do not make anything off of materials, I just show the customer the receipts and have them broken down on the invoice. Now you have to keep the receipts because of tax purposes the customer uses your bill to for their records.

Getting a Deposit

If the job is under $100.00 in materials then no I do not get a deposit. I just use my credit card that is just for my handyman business and charge the customer after the job is done. If the materials will exceed $100.00 I either have the customer purchase a gift card from Home Depot or Lowes for the approximate cost that I have figured or give me a check. If it cost less they will see the deduction on the bill if it cost more I pay the difference and charge it to them on the bill.

By charging for materials this way the customer can see what you expected what the job was going to take. Now let’s say you removed the door and find the wood behind it rotten you can explain to the customer that obviously they need more materials and it will cost a little more because you had no way of knowing this problem existed.

Weekends and Odd Hours

I do not charge anything extra for working weekends. Some commercial accounts you may have to do early mornings or late nights when they are not open. I do not charge any extra for this either. Your commercial accounts will bring you more customers then you can imagine. Usually you will end up doing work for the owner’s personal home and then his friends and employees. You need to be flexible. You will find that once a wealthy person has you start doing work for them and they like it, they will be afraid of losing you or you not being available when they need you. So they will keep you busy 1 or 2 days a week doing something. Before long you will have 6 or 7 solid customers and you will be making a great living & loving your job. Now it takes time to get customers like this but as you go along working for people every now and then you run into a great one. Once you get enough great customers you will be turning down work because you are so busy.

Work Tips:

Keeping Your Customers Pays

The Bill:

Accepting Payment

I would accept personal checks, credit cards and cash. The more payment methods you take the more customers you will have. Now the easiest way to accept credit card payments is with (accept by phone) they only charge you $5.00 per month and a small percentage per transaction. You can accept any major credit card and use you cell phone to do it. Fantastic company called Accept by Phone I highly recommend them.

Unless it is a commercial account that I do work on a weekly or monthly basis, I get paid when the job is done period. If it is a commercial account that I do work for often I will bill them, these accounts usually give me a credit card for materials that I use when doing work for them this way I have no money at of pocket. I am just waiting on my check for labor.

Making out the Bill

When making out the bill make sure you write down everything you did. I will give you an example below. The first one the customer thinks that was expensive. The correct one the customer got a great deal.

For example, I would not give a bill like this:

XYZ Office Complex

Repaired ceiling and cleaned AC drains $445.00

** you would have to charge tax on the total $445.00 instead of just the materials used.

The Bill would look more like this:

XYZ Office Complex -

  1. Material: $55.00
  2. Sales tax: 3.30
  3. Labor: $490.00
  4. Total Due $548.30
Hiring Help:

Hiring Temp Help

If you just need help on one job and you don't have a friend or family member who can help, then I would go to one of the local labor for hire places. They handle all the paperwork and all you do is pay the company. If the guy isn't working out just call the company and they come get them. Most of them will work hard for you.

Hiring Permanent Help

Embarking on a new venture while the original business is at the throes of expansion may nip the growth in the bud. Your efforts will be diluted, your resources divided, and your time and attention will be watered down. Before you know it, you might lose your first business before your new one is even started.

Don't rush to hire a permanent full time handyman employee. Start with one or two part time people and slowly work them into your business. This gives you a chance to see how they do and what they can handle. It also helps you to take the expansion slowly.

What I Look For In Employees

Financing:

Confused by how to finance a small handyman business? One key to a successful business start-up and expansion is your ability to obtain and secure appropriate financing. Raising capital is the most basic of all business activities. But as many new entrepreneurs quickly discover, raising capital may not be easy; in fact, it can be a complex and frustrating process. However, if you are informed and have planned effectively, raising money for your business will not be a painful experience.

This section focuses on ways a small business can raise money. There are several sources to consider when looking for financing. It is important to explore all of your options before making a decision.

Things You Will Need

Also be prepared to show these documents.

Selling Your Handyman Business:

Worth More than You Think

Let’s say you have been a successful Handyman for 10 years and earn $60,000 per year and would like to retire. Are you just going to close-up? Are you going to slow down, work part time and let the business just fall off? There is a market for selling your business. Some people would say, "You are the business and if you leave, there is nothing to sell." That is not true. You have several valuable assets to sell. A phone number which rings with people looking to spend money with a Handyman. You have a database of 10 years worth of satisfied customers who have and will continue to use a Handyman. On the job training which you could provide a purchaser this would pretty much guarantee their success.

How would you set the price for this business?

Most businesses are valued at a multiple of earnings. But if you are a one-man operation and you leave there are no earnings. So what about the real world construction business? Let’s say an average tradesman in your area makes $30,000 per year and is someone who would be capable of working as a Handyman for your customers. He can come up with $15,000 for a down payment (refinancing house, Sell car, Loan from parents, etc) to purchase your business. You work with him for a sixty day training and transitional period. He agrees to pay you $15,000 per year for three years. He is happy because he immediately goes from making $30,000 per year to making $45,000 per year for three years and then up to $60,000 thereafter. You are happy because you realized $60,000 for your business, which you might have just let fold. This is an oversimplification. But, you need to go into this business with the attitude that that you are developing a significant asset which has substantial value to the right individual. I would recommend spending the three years prior to retirement looking for a perspective buyer.

If you have a goal in mind, you are half way there.

Jobs to Take:

You need to keep a record of how long it takes to do some of your basic handyman jobs. You can give them a rough idea over the phone of how much it will cost them. You are not trying to build a business where you have to go out on a bunch of leads and give free estimates. This is why you are cheaper than a handyman franchise.

Tell your customers or put on your handyman business cards, “If a receptionist answers the phone you're paying too much”. Remember, take the gravy jobs. Don’t do major electrical, but replacing a receptacle or changing floodlight bulbs will make you good money. They will love you because they can’t get anyone out there to do it.

Remember electrical is about the only thing you do that could cause serious injury to a client or their property. Not too many clients have been injured by a wall falling on them or by a bad plumbing job after you have left. So if you do not feel comfortable doing certain electrical jobs let the customer know, or have a electrician you know do it and just pay them yourself then charge the customer. Even if you lose a couple of bucks on that particular part of the job if you keep the client for everything else it was worth it.

Keeping Your Clients:
Tools & Supplies:

Truck

If you can get a truck with a topper, something you can lock up your tools in. I try to keep with me at all times the tools I use every day. The larger items or specialty tools I just take when I know I need them. The more you can carry the better off you will be. I would pick up a 5 x 10 utility trailer one with full size tires. I use this to haul my materials when needed. Make sure you keep your truck clean. Remember it represents you and how you look and act is a good sign of the type work you do. It does not have to be new but just clean.

Tools Needed

You do not have to have every tool I have listed in order to start your business. Some of the larger items you are better off renting until you can afford them. Some items I still rent because I just do not use them often enough to warrant the purchase. When purchasing your power tools pay the extra money and get the ones that come in cases. These are much easier to store and keep in good shape.

Power Tools for the Handyman

Hand Tools for the Handyman

Supplies for the Handyman

Paper Towels, Rags, Assorted Tap Cons, Assorted Anchors, Assorted Screws, Assorted Wire Nuts, Assorted Tape, Drywall Mud, Drywall Tape, Couple of Receptacles, A/C Filters (assorted), Toilet Parts, Couple of Switches, Cover Plates, Some Electrical Wire, Paint Rollers, Roll Brown Paper, Assorted Light Bulbs, Some Lubricants, Assorted Caulking, Picture Hangers, Some Cleaning Supplies, Plumbing Fittings, Pencils.

Download E-Book

If you would like to download this author's work in an easy to read & print E-Book format click on the button below. Thank you for your support.

Handyman Estimating Sections

Electrical

NEVER ASSUME the electricity is off. Before servicing an electrical device, disconnect it from its electrical source either by unplugging the appliance or turning off the power at the breaker or fuse box. Mark the service panel with a note so that no one will restore power while you are working. After turning off the power to the circuit, test the circuit to be certain that there is no power. Some devices can store a hazardous electrical charge even when disconnected from an electrical source, always discharge these devices before attempting service.

If you are unfamiliar with a device or its components, consult with a professional before attempting service. When working with electrical equipment wear rubber-soled shoes, avoid damp locations and hold all tools by their insulated handles. Never touch conductive surfaces such as pipes or metal bracing. Use a non-conductive fiberglass ladder when working with electricity. Avoid shorting electrical circuits.

SWITCHES

RECEPTACLES

FANS

LIGHTING

APPLIANCES

COMPUTERS & TV

Plumbing

The biggest mistake most people make when soldering is failing to get the interior of the fitting and the exterior of the pipe clean and shiny. Polish these surfaces with a fine emery clot until bright. When soldering, never heat the pipe, but instead heat the fitting. Doing so allows the solder to be drawn into the fitting by capillary action. Use a propane torch to heat the fitting to the correct temperature. Uncoil the solder so that it is easy to work with, and when the fitting has reached the proper temperature, apply the solder. It will be sucked into the joint as the proper temperature has been reached. It may take a bit of practice, so try this first on some scrap pieces.

The market today has quick-connect fasteners for every plumbing need. They work well with almost every kind of pipe. These connectors remove any chance of leaks, eliminate the need for high-temperature propane torches when working in a confined space and eliminate the learning curve for soldering.  There are several different types of these connectors available.  Some of them are even repairable, eliminating the need to replace the entire unit. If you do not know how to do something visit http://www.doityourself.com they have a lot of answers and tips.

SINKS

FAUCETS

TUB & SHOWER

TOILET

Painting

Keep windows wide-open, as weather permits, for about 2 to 3 days after painting to avoid unwanted exposure to paint vapors (and to return to acceptable indoor air quality). Use window-mounted box fans to exhaust vapors from the work area. Make sure they cannot fall out of the window. If fans cannot be used, make sure that rooms being painted have adequate cross-ventilation. Provide advance notice to neighbors in adjacent units that painting is to begin. Take frequent fresh air breaks while painting. Avoid freshly painted rooms for 2 to 3 days, whenever possible. Keep young children and individuals with breathing problems from freshly painted rooms. Leave painted areas if you experience eye watering, headaches, dizziness, or breathing problems.

INTERIOR

EXTERIOR

(Prep work, see pressure washing section)

STAINING

WALLPAPER

A/C & Heating

One easy way to determine if your air conditioner or heat pump needs a tune-up is to check the difference in temperature between the air exiting the supply ducts and that drawn into the return ducts. You will need an accurate thermometer for the test and to operate the cooling equipment for at least 15 minutes when the outdoor temperature is above 80 degrees.

While the unit is running, measure the temperature of the air at a return and a supply register. These registers should be the ones closest to the inside cooling equipment. The temperature difference should be between 14 and 20 degrees. A smaller difference indicates time for service.

Miscellaneous

Though not always required by code, one important safety feature is a toe rail along a handrail that prevents a wheelchair from rolling under the handrail and off the side of the ramp.

Every inch of rise requires a foot of ramp. So a ramp that goes up to a doorway 20 inches off the ground should be at least 20 feet long. The slope should never exceed a 1-to-12 ratio.

A landing should be 60 inches by 60 inches, for five feet square.

Improper venting or a clogged dryer vent will give the following results:

  1. Long drying times
  2. Clothes are hot at end of cycle...bad for Perma-Press items
  3. Dryer is noisier than usual
  4. Clothes still hot and damp after cycle ends
  5. Automatic sensors fail to shut off
  6. Premature failure of heating element, motor or bearings
Windows

Depending on your space available and preference, most use either a cutting bench or a wall-mount system. In either case, it is best to use a proper, tungsten carbide cutting wheel, rather than a cheap 'DIY' store one, or a diamond. Glass to be cut should be dry and warm (i.e. above 55°f / 12°c) for reliable results. The cutting wheel should be kept free of dirt and dust build-up and lubricated.

Always use a proper T-square or straight edge and cut smoothly across the sheet from edge to edge. Do not go over the cut again. Always break out the cut quickly - the longer it is left the less reliable will be the result.

Doors

Determining the proper door swing? Stand in the doorway with your back to the hinges. (You will be standing sideways in the opening, looking at the part of the opening where the door latches into place when closed). Which side of you is the door on? If the door is on your right hand side, it is a right handed door. If the door is on your left side, it is a left hand door. All exterior doors should swing out, for fire safety. All doors in a commercial building should have lever handles not knobs per most state codes. Most state codes require commercial doors to have three hinges.

INTERIOR DOORS

EXTERIOR DOORS

 Carpentry

When figuring how much molding to quote for, always add 1 foot for every corner inside and outside corners. If you want a heavy crown look without the purchasing very expensive molding, use a two piece crown or even three pieces. You will have no compound miters and it looks great. It goes without saying that if you have a place to nail your crown into you're most likely going to do a better job of installing it. Whether or not you install blocking in the ceiling is really a function of the type of crown you're going to install and how bad the walls and ceilings are. If you're going to install a paint grade crown the need for blocking really becomes less than if you're going to install a stained grade crown. Since the installation of stain grade crown is more demanding the need to secure the molding better is of great importance.

INSTALL CROWN MOLDING

INSTALL CHAIR RAIL MOLDING

INSTALL BASE MOLDING

Cabinets

When you are installing kitchen cabinets always clamp the cabinets together and pre drill before screwing them together. When installing cabinets that you have to assemble from a box. After you assemble the cabinet lay it on its face square it up and glue the back to the frame with good quality hot glue. This will make the cabinets square and much more solid. Always make a jig up when attaching new handles to new cabinet doors. This is the easiest way to make sure they are all the same height and straight.

Concrete & Masonry

The key to a lasting repair is to make a saw cut around the perimeter of the damaged area, cutting back to solid concrete. The cut should be at least 3/8 in. deep: Most repairs that fail do so because the patch is too thin at the edges and breaks off. Set a masonry blade at a 5-degree angle so the cutout is slightly wider at the bottom than at the top. This helps “lock in” the patch . Slowly guide the saw through the concrete. The masonry blade grinds a groove, so don’t put a lot of pressure on the saw; let the blade do the work. Cut about 1/4 in. on each pass.

A patch will be lighter-colored than the old concrete. Even after weathering for a few years, the new patch will probably still stand out. One way to hide the patch is to stain the entire surface to blend the old with the new. But you’ll have to renew the stain periodically.

Drywall/Sheetrock

The two most common drywall compounds are lightweight and all-purpose. They both are easy to work with, and have a shelf life at room temperature of about nine months. If you have an entire house to repair, buy a 4.5-gal bucket of the material ($11 to $15) and keep using it until the project is done. For small repairs, buy a 1-gal. container but be advised that you might pay nearly as much for that as you will for the 4.5-gal size, depending on where you shop. For a few minor repairs, buy a quart (about $5). The differences between the two are that the lightweight product weighs about a third less than all-purpose, it dries more quickly and takes less force to sand It's best to do a repair with three or four thin coats of compound--if possible leaving sanding for just the last coat. Also, "the most important thing with a repair is to build the joint out wider than you would normally.  

DRYWALL SCREWED TAPED & FINISHED

PATCH HOLES TO MATCH EXISITNG TEXTURE

REPAIR CRACKS & FINISH TO MATCH EXISTING

*** You have to charge a minimum for drywall repairs unless you are doing other work for the customer.

Insulation

Some fiber glass insulation materials may be dusty or irritate the skin. Many insulation jobs are done in confined areas such as attics or crawlspaces. Therefore, the following protective gear is strongly recommended:

General Installation Tips For fiber glass insulation:

Leave fiber glass insulation in its wrapper until you're ready to use it. Packaged insulation is highly compressed and expands greatly when the wrapper is opened. Use continuous rolls in floors because of longer joist spans. To cut insulation, lay it on a board with the Kraft or foil facing down, if applicable. Lay a yardstick (or 2 x 4) over the area of insulation to be cut. Press your straight edge down hard and cut with a utility knife, using straight edge as a guide.

Hauling & Cleanup

Another common and much overlooked item are electric motors. Many are just thrown out and those still attached to their appliances are usually easily removed. It doesn’t take long to accumulate 100 pounds of them and at their height they fetched over twenty cents per pound.

The easiest way to determine if the metal is steel or aluminum is to use a magnet. Magnets will not stick to aluminum. The big 50 gallon steel drums, normally you have to cut the closed end off and flatten it in order to scrap it. If possible leave paints and other chemicals for the home owner to dispose of. Usually it is free for them 2 times a year. Otherwise you will have to charge them at least $25.00 for your disposal costs.

Item Assembly

The first thing you want to do is have plenty of workspace available to unpack and inventory all of the parts in the box. While unpacking your new unit, make sure to check everywhere including all of the slots inside of the Styrofoam where small bags of hardware may be hidden and don't throw away any of the packaging until the item is completely assembled. The next step would be to inventory all of the nuts and bolts and other small parts by using the parts list located in the instruction manual. This is done so while assembling you can easily find the needed parts without searching and possibly using the wrong part and damaging the unit. Now that we have inventoried everything we can start building. One problem that many people encounter is jumping steps. You must go in the order as the instructions refer. Take your time while working through the steps to insure a quality product once assembled.

Roofing

When roofing ladder safety is improved and gutters are better protected if you use a “gutter-guard.” To do this, notch a piece of scrap plywood to accept the width of a ladder, and fasten the wood to the roof deck. Set the ladder in the notch and tie it in place. The ladder won’t touch or crush the gutter, or slide sideways during wind gusts or while being climbed. Leave steep and/or high roof work to the pros. The few dollars you’ll lose by not taking the job aren’t worth the risk of death or a lifelong disability if you fall. Pick a clear, calm, cool time of day to work on roofs. Wet roofs are slippery. Wind also poses a danger, and excessive heat softens the shingles, making them vulnerable to damage.

Replace defective or broken shingles    3.0 hrs up to 5 shingles, each additional shingle 0.33 hrs. each Paint roof with aluminum based roof paint    1.0 hrs per 100 sq. ft. Replace wood damaged or leaking wood shingles    3.0 hrs up to 5 shingles each additional shingle0.33 hrs. each Re-seal skylight    1.0 hrs. Replace broken clay tile    0.75 hrs. per tile Repair cracked clay tile    0.5 hrs. per tile Replace skylight in metal roof    3.0 hrs. Replace rusted & leaking metal roof panel    4.0 hrs. per panel Flashing repair with roof cement (small repairs)    2.0 hrs. per patch Clean roof valleys    1.0 hrs. per valley

GUTTERS

SOFFIT & FASCIA

CHIMNEY

Flooring

If the vinyl flooring was definitely made after the 1970's, you can remove it yourself. if made before 1970 it will most likely contain asbestos and I would go over it rather than pay to remove it. The best way to tear out vinyl flooring is to pull it up and then go back and remove the remaining glue and pieces of flooring.

For sheet flooring (or rolled flooring), you will probably want to score the flooring into strips to make it easier to handle and pull up. Some people choose to use heat guns to soften the flooring's adhesive, making it easier to remove; some people just pull it up without any pre-work. Whichever method you choose, keep in mind that this process is going to take some time and effort, but it will be worth it in the end.

TILE

VINYL

CARPET

WOOD

LAMINATE FLOORING

Pressure Washing

Pressure washers rated at 1300-2200 PSI are for only light, occasional chores such as cleaning a small area, lawn equipment, cars, trucks, mud or dirt. Models rated at 2200-3000 PSI are designed for more frequent users and for larger jobs such as cleaning vinyl and wood siding easier, whether the surface is being prepared for painting or to remove dirt and grime. Units rated at PSI 2200-3500 are used for professional use on heavy-duty projects. Contractors and commercial users turn to this category to clean their heavy equipment, construction sites, paint preparation and other demanding projects. Some units are rated above 3500 psi however there are few advantages or applications for this extreme pressure.

Belt driven washers will last you much longer then a direct driven washer. If you can afford it they are the ones to buy. Cold water pressure washers are most suitable for car, deck, grill, patio, sidewalk, house, bus, and truck power cleaning. On the other hand, hot water pressure washers are excellent for oil, grease, and fuel spills, and for sanitization. Hot water pressure washers are also the best candidates for places such as garages, industrial plants, agriculture machineries, service areas.

Lot Maintenance

Seal and waterproof cracks or larger damaged areas in asphalt driveways. To make repairs, simply cut a piece of material the size of the cracked area, peel off the adhesive backing paper and press the fabric down on the pavement. The heavy duty polypropylene fabric, saturated with rubberized asphalt, Self-adhesive, Comes in rolls 6 inches wide by 9 ft. long.

Great Startup Specials:

Get great insurance rates for your business and more with NetQuote.

You can get 250 free business cards with Vista Print.

Accept credit cards using your phone. Just $10.00 per month with Accept by Phone.

Have Logo Works design your new logo professionally.

Easiest way to incorporate with Incorporate Now.

Make your own professional custom signs, banners, magnets, etc... with Build A Sign

Get your website going with HodiHosting.net only $5.00 per month.

Handyman business plan click here.