Is A Handyman Business Profitable 2024?

Thinking of starting a handyman business but wondering is a handyman business profitable? We got you!

Currently, the handyman services market in the U.S. is $265 billion and is expected to grow to $314.7 billion by 2028, which means that there is still some space for new entrepreneurs in this industry.

So whether you are a seasoned independent handyman looking to build a business or someone who wants to enter this profession, this guide will give you answers to all the questions you might have.

Is a Handyman Business Profitable

Who is a Handyman?

A handyman is a person who does a number of odd jobs such as repairs, home maintenance, home improvement, etc. Some of the services that you can expect to offer as a handyman include:

  • Anchoring TVs and other objects on a stud
  • Fixing loose tiles
  • Filling holes in drywall
  • Fixing leaking faucets
  • Caulking tubs, sinks, and bathtubs
  • Seal cracks
  • Unclogging drains
  • Clean gutters
  • Change showerheads and toilet seats
  • Change tighten hinges, doorknobs, and replace door locks
  • Change filters
  • Painting
  • Building and replacing window screens
  • Changing light switches and electrical outlets

Tools you need to become a handyman:

You can either start a handyman business from the tools you already have and add items as you cater to more clients and offer more services. And if you are starting from scratch, then having these tools could come in handy:

  • Claw Hammer
  • Level
  • Tape Measure
  • Impact Driver
  • Utility Knife
  • Circular Saw
  • Drill Driver
  • Recipro Saw
  • Drill Bits
  • Flashlight
  • Screwdrivers
  • Charging Kit
  • Shop-Vac
  • Wire Stripper
  • Gloves
  • Pliers

Work that a Handyman Can Do Legally

Work that a Handyman Can Do Legally

Different states have different requirements for the kind of work a handyman can do. However, without a handyman license, a handyman can take jobs for under $1,000 only.

If you want to take a larger job, then you should go to your relevant state authority to find out the legal requirements for working as a handyman in your area.

If you want to offer services such as plumbing, HVAC, home remodeling, or major electrical repairs, you might require a contractor’s license.


How Much Does it Cost to Start a Handyman Business?

The cost to start a handyman business can vary depending on your scale of operation. However, while just starting out, you can start a handyman business for as low as $2,000 and $6,000. And the cost would increase if you rent out an expensive place, hire a team, buy lots of equipment, etc.

Here’s a breakdown of the cost of starting a handyman business:

Type of expenseCost
Business Licensing$100 – $1,000
Liability Insurance$30 – $200 per month
Contractor’s License$0 – $1,000
Tools and Equipment$0 – $3,000
Software$0 – $75
Website$200 – $8,000
Logo Design$0 – $1,000
Uniforms$100 – $500
Truck Decals$0 – $3,000
Business Cards$20-$100
Initial Advertising$0 – $1,000
Bookkeeping services$0 – $1,000
Bank Account$529

Handyman Business Start-up Cost Breakdown

Handyman Business Start-up Cost Breakdown

Although we have already told you about the amount that you can expect to make in this business, here’s the breakdown of costs that you would have to consider:

Start-up Costs

  • Cost of tools: If you don’t have tools already
  • Cost of DBA in your location
  • Cost of work vehicle: In case you are buying/leasing one
  • At least a month of marketing expenses
  • Cost of the website: if you decide to build one
  • Handyman Insurance/Small Business Insurance: Find out how much the renewal period
  • State and Local Licensing: Find out the renewal period
  • Cost of Commercial driver insurance: Find out the renewal period

Operational Costs

  • Vehicle costs: $.58/mile (average)
  • Income Tax: Can assume 20% of revenue
  • Sales tax: Based on revenue estimates and locations
  • Materials: 20% of revenue
  • Loan Payments: if applicable
  • Employees: 20% of revenue or $40k per employee
  • Miscellaneous expenses

How to Start a Profitable Handyman Business?


How Much Does a Self-Employed Handyman Make?

A self-employed handyman or a handyman working solo without a team can expect to make an income of $51,000 to $110,000 per year on average.

The earnings of a self-employed handyman can, of course, vary depending on the location, experience, demand, etc. But if you market yourself correctly and offer excellent services, then you can make a lot of money from this business.

Here’s a table showing the billable hours and income potential accordingly:

Weekly Billable Hours$40$50$60$70$85
15$15,090$21,315$27,541$33,766$43,104
20$22,102$30,402$38,703$47,004$59,454
25$29,114$38,489$49,865$60,241$75,805
30$36,126$48,577$61,027$73,478$92,155
65$43,138$57,664$72,190$88,716$108,505
40$50,150$66,715$83,352$99,953$128,555

This table represents the actual income after deducting expenses, taxes, etc. As you can see, two things will affect your income largely:

  • Number of hours you work and,
  • Your rates

So make sure you keep a good balance of the two in order to make the most out of your skill.


Calculating Billable Hours of an Independent Handyman

Calculating Billable Hours as an Independent Handyman

As an independent handyman, you will be working more hours but won’t be paid for every hour you put in. For example, you might be on calls with customers, buying tools, marketing your business, etc. All these accounts for working hours but can’t be billed.

So, a reasonable estimate for a handyman’s working hours could be between 25 and 35 billable hours per week, and the rest of the time can be given to other business-related tasks that you can’t account for.

You can do your own calculation by multiplying the number of working hours by your hourly rate. So, for example, if you work for 25 hours a week and charge $60 per hour, then you will make $50,000 in a year.


How Much Can a Handyman Charge?

According to different sources online, a handyman charges the following:

  • The hourly rate of self-employed handyman is $50-$125/hour.
  • Most handyman jobs cost between $65 and $1200, with the average being $390.
  • Common jobs may be charged on the basis of a flat fee.

How Much Does a Handyman Business Owner Make?

The income of a handyman business owner could vary depending on the location, fee, demand, working hours, size of the business, etc.

However, on average, a small handyman business owner can expect to make between $25,000 and $75,000 in annual income. But as your business grows, you can hire more people, cater to more customers, and can increase your earnings to as much as $160,000. 


Is a Handyman Business Profitable?

Handyman Business Profitability

Yes, a handyman business is very profitable, and handyman business owners enjoy an average profit margin of 15% to 50% and easily make yearly earnings of $25,000 – $75,000+ on average.

To build a profitable handyman business, you only need relevant skills and a solid business plan. Of course, building a profitable client might take some time, as it would in any other business.

But by offering excellent service and customer satisfaction, you can achieve success in this business.


Pros & Cons of Handyman Business

Pros of Handyman Business

  • Low start-up cost
  • Low overhead expenses
  • Can be done part-time
  • Profitable
  • Can also buy Handyman franchises
  • Can offer specialized services
  • You are your own boss

Cons of Handyman Business

  • Some work may be seasonal
  • Might take some time to build a good client base
  • Might need different kinds of licenses and permission

How To Find Your First Clients as a Handyman?

Here are some proven ways to find your first few clients as a new handyman:

  • Family and friends: Most people’s first clients are usually people from their friends and family circle. Offer your services to them and expect to find a few more if they spread the word.
  • Online listings: The most effective way to find customers in your area is by listing your business on platforms such as Google My Business, Yelp, TaskRabbit, Nextdoor, etc.
  • Flyers: You can get your first customers as a handyman by hanging flyers in local community centers, your neighborhood, hardware shops, etc.

Wrap Up

Starting a handyman business might seem daunting, but you can go for it since this business has a low investment cost and high-profit margin.

The key here is to do solid research, build an effective business plan, and offer unmatched services. With smart work and perseverance, you can excel in this business.

We hope after reading this guide, you have found your answer to the question: Is a handyman business profitable?


FAQ’s

Which kind of handyman job pays the most?

Handyman jobs that require specific training, courses, or certificates pay the most. Tasks, such as plumbing, electrical work, or HVAC repairs, offer more money as compared to other common tasks such as painting, carpeting, etc.

Here are the five highest-paying handyman jobs:

  • Shovel Operator: $69,000-$69,500 per year
  • Tradesman: $44,000-$55,000 per year
  • Jack of all trades: $38,000-$54,500 per year
  • Gardener: $36,000-$50,500 per year
  • Swamper: $37,000-$50,500 per year

Is being a handyman a good side hustle?

Yes, being a handyman is a good side hustle. You can work as a handyman part-time and easily charge between $25-$50/hour while just starting out, and you can increase your rate as you gain experience. 

How much does a handyman get paid in Los Angeles?

The average hourly pay for a handyman is $24.72 an hour in Los Angeles.

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