Starting your own handyman business can be a great way to make money, but it can also be expensive. You will incur many costs when beginning this type of business, and it's essential to be aware of them before you start.
This article will discuss the significant costs of starting a handyman business. We will also provide tips on keeping these costs as low as possible.
Legal Documents and Fees
The first thing that you will need to do when starting a handyman business is to obtain the necessary legal documents and licenses.
Depending on your location, this can be a very costly process. In addition, you will also need to pay for insurance and bonding. These costs can add up quickly, so it's important to budget them in advance.
Tools and Equipment
Another major cost you will incur when starting a handyman business is the cost of tools and equipment. You will need to purchase all the tools required to do the job right, which can be expensive.
If you already have some tools, you may be able to save money by borrowing them from friends or family members. However, if you don't have any means, you will need to purchase them new.
Marketing
You will also need to spend money on marketing your handyman business. This can include creating a website, advertising in local newspapers and online, and distributing flyers.
These marketing costs can add up quickly, so it's important to be aware of them in advance.
Insurance
Another cost that you will need to budget for is insurance. This is important because it will protect you from liability if something goes wrong while working on a job.
There are many different types of insurance that you can purchase, and the costs can vary depending on the coverage that you choose. Overall, buying the best insurance is critical to protect your handyman business. Neglecting to buy handyman insurance can be problematic in the long run if someone gets injured or their property is damaged.
Accounting and Bookkeeping
Another important cost that you will need to budget for is accounting and bookkeeping. This is important because it will help you keep track of your income and expenses.
There are many different software programs that you can use to do this, and the costs can vary depending on the features that you need. However, this is a significant cost to consider when starting a handyman business.
Brand Kit Creation
If you want to create a professional brand for your handyman business, you must create a brand kit. This can include creating a logo, choosing a color scheme, and developing marketing materials.
Creating a brand kit can be expensive, but it's important if you want to create a successful business.
Contractor License
Depending on the state that you live in, you may need to obtain a contractor license. This can be a costly process, but it's important to do if you want to start a handyman business.
In some states, the license cost is based on the type of work you will be doing. In other states, the price is based on the size of your business.
This is an important cost to consider when starting a handyman business.
Business Taxes
Another cost that you will need to budget for is business taxes. Depending on the state that you live in, you may be required to pay state and local taxes.
You will also need to pay federal taxes, which can be a significant expense for your business. Overall, it's essential to be aware of the different taxes you will need to pay when starting a handyman business.
Truck and Decal
If you plan to use a truck for your handyman business, you must purchase a truck and decal it with your business information.
This can be a significant expense, but it's important if you want to have a successful business.
Continual Website Design and Hosting
If you want to create a professional website for your handyman business, you will need to pay for website design and hosting.
Many companies offer these services, and the costs can vary depending on the features you need. However, this is an important cost to consider when starting a handyman business.
Office Space
If you plan to have an office for your handyman business, you will need to budget for the cost of rent and utilities.
This can be a significant expense, but it's important if you want to create a professional image for your business.
Phone and Internet
Another cost you will need to consider is the cost of phone and internet service. This is important because you will need to be able to communicate with clients and potential customers.
There are many different providers of these services, and the costs can vary depending on the features you need. However, this is an important cost to consider when starting a handyman business.
How Much Does it Cost on Average to Start a Handyman Business?
Now that we've looked at some of the substantial costs that you need to consider when starting a handyman business, let's look at how much it costs on average to start one.
Starting a handyman business can be expensive, but there are many ways to cut costs. For example, you may be able to find office space for rent at a lower cost than purchasing an office outright.
You can also look for discounts on insurance and other business expenses. The cost of starting a handyman business will vary depending on your specific situation.
All in all, the average cost to start a handyman business is about $10,000. However, this number can be higher or lower depending on the specific costs associated with your business.
Learn More About Starting a Handyman Business
If you're thinking about starting a handyman business, be sure to do your research and understand all the costs associated with it.
By understanding the different costs, you can better prepare yourself for success. For more information on starting a handyman business, check out our other blog posts.