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.
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.
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.
Handyman Company Overview Example
Welcome to CraftsmenElite Home Services, a newly established handyman business dedicated to serving customers in Bloomington, IN. As a local enterprise, we’ve recognized the gap in high-quality handyman services within our community and are here to fill it. Our commitment lies in providing unparalleled service and craftsmanship to our clients, ensuring their home maintenance and improvement needs are met with the utmost professionalism and skill.
At CraftsmenElite Home Services, our offerings encompass a wide range of home maintenance and improvement solutions. These include general repairs, installation services, painting and decorating, carpentry work, as well as plumbing and electrical repairs. Our team is equipped to handle tasks of various complexities, ensuring that your home is in capable hands. We pride ourselves on delivering quality workmanship across all our services, aiming to exceed customer expectations with every project we undertake.
Our operations are rooted in Bloomington, IN, where we cater to the needs of the local community. Our deep understanding of the area, combined with our commitment to serving our neighbors, positions us as a handyman service that truly cares about making a difference in the community. By focusing our efforts locally, we ensure a prompt and reliable service that our customers can depend on.
The foundation of CraftsmenElite Home Services is built on a solid base of expertise and dedication. Our founder brings valuable experience from previously running a successful handyman business, giving us a competitive edge in the market. Additionally, our expertise in carpentry sets us apart from the competition, alongside our comprehensive suite of handyman services. This unique combination of skills and offerings makes us uniquely qualified to meet the diverse needs of our customers, ensuring our success in the market.
Since our establishment on January 7, 2024, as a Limited Liability Company, we’ve made significant strides in building our brand. Our accomplishments to date include the creation of our logo, the development of our company name, and securing a prime location for our operations. These achievements mark the beginning of our journey towards becoming the go-to handyman service in Bloomington, IN, and reflect our commitment to building a reputable and trusted business.
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.
Handyman Industry Analysis Example
The Handyman industry in the United States is a sizable market, with an estimated worth of $74 billion in 2020. This industry encompasses a wide range of services, from basic home repairs to more specialized tasks like remodeling and renovation. With an increasing number of homeowners opting to outsource their home maintenance needs, the Handyman industry is expected to continue growing in the coming years.
One of the key trends driving growth in the Handyman industry is the aging population in the United States. As more individuals age, there is a greater demand for home maintenance services to help with tasks that may become more challenging with age. Additionally, the trend of homeowners investing in their properties to increase resale value has also contributed to the growth of the Handyman industry. These trends bode well for CraftsmenElite Home Services, as they position themselves to meet the increasing demand for reliable and skilled Handyman services in Bloomington, IN.
CraftsmenElite Home Services is well-positioned to capitalize on the growth of the Handyman industry in the United States. By offering a wide range of services and emphasizing quality craftsmanship and customer satisfaction, CraftsmenElite Home Services has the potential to carve out a significant market share in Bloomington, IN. As the Handyman industry continues to expand and evolve, CraftsmenElite Home Services can differentiate itself by providing exceptional service and building a strong reputation within the local community.
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.
Handyman Customer Analysis Example
Target Customers
We will primarily target local residents in Bloomington, IN, who are homeowners looking for reliable and professional handyman services. These customers will likely appreciate the convenience and expertise offered by a reputable service provider like us, especially for tasks such as home repairs, maintenance, and renovations. Our services will appeal to those who value time efficiency and the assurance of quality work in maintaining their homes.
In addition to individual homeowners, we will also target rental property owners and landlords who require consistent and dependable service to maintain their properties. This segment will benefit from our services for routine maintenance, tenant turnover repairs, and property upgrades. By offering competitive pricing and flexible scheduling, we will ensure that property owners find our services both accessible and valuable.
We will further extend our services to businesses and commercial properties in the area, recognizing the demand for skilled tradespeople to handle tasks ranging from minor repairs to larger facility maintenance projects. These clients will expect durability and professional execution, which we will deliver through our skilled team. By fostering relationships with local businesses, we will establish ourselves as the go-to handyman service for commercial needs.
Additionally, we will target senior citizens and individuals with limited mobility, who may require assistance with household repairs and improvements. By offering personalized service and understanding their unique needs, we will create a supportive and trustworthy environment for these customers. This approach will position us as a community-focused service provider dedicated to enhancing the quality of life for all residents.
Customer Needs
Customers in the Bloomington area have a strong demand for high-quality carpentry services, and CraftsmenElite Home Services meets this need by providing expert craftsmanship that enhances both functionality and aesthetic appeal in their homes. Whether it’s building custom cabinetry, creating intricate woodwork, or completing small carpentry repairs, customers expect precision and attention to detail. These services not only improve the value of their properties but also offer tailored solutions that reflect the homeowners’ personal styles.
Additionally, convenience and reliability are critical needs for customers seeking handyman services. CraftsmenElite Home Services offers flexible scheduling and prompt service, ensuring that projects are completed efficiently and on time. By maintaining clear communication and providing transparent pricing, customers can trust the services they receive and plan their budgets accordingly.
Safety and cleanliness are also top priorities for homeowners, particularly when inviting service providers into their living spaces. CraftsmenElite Home Services adheres to stringent safety protocols and leaves work areas tidy and free of debris, providing peace of mind to customers. This commitment to safety and orderliness not only protects the homeowners and their families but also enhances the overall service experience.
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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.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or complete handyman service. This includes other types of maintenance and repair contractors, do-it-yourself (DIY) tutorials that show customers how to tackle the project themselves, or enlisting the help of family and friends to complete the tasks instead of hiring a handyman.
For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- 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
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a handyman business, your marketing strategy should include the following:
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.
Handyman Operations Plan Example
Key Operational Processes
To ensure the success of CraftsmenElite Home Services, there are several key day-to-day operational processes that we will perform:
- Customer Communication: Maintain consistent and open communication with customers through phone, email, and online platforms to address inquiries, provide quotes, and confirm appointments.
- Appointment Scheduling: Use an efficient scheduling system to organize service appointments, manage time effectively, and minimize downtime between jobs.
- Inventory Management: Regularly check and restock necessary tools and materials to ensure readiness for any job, reducing delays and enhancing service efficiency.
- Work Order Management: Create detailed work orders for each job, outlining customer requirements, scope of work, and any special instructions to ensure clarity and consistency in service delivery.
- Quality Control: Implement a quality control process to review completed work and address any customer feedback or complaints promptly, ensuring high standards are consistently met.
- Technician Coordination: Coordinate with technicians to assign tasks based on skills and availability, ensuring that the right person is handling each job efficiently.
- Billing and Invoicing: Prepare and send accurate invoices to customers promptly after service completion, and manage payment follow-ups effectively to maintain cash flow.
- Marketing and Promotion: Engage in regular marketing activities, such as social media updates, local advertising, and community involvement, to attract new customers and retain existing ones.
- Training and Development: Conduct regular training sessions for staff to enhance their skills, knowledge, and customer service abilities, ensuring they remain competitive and effective.
- Health and Safety Compliance: Adhere to all relevant health and safety regulations, ensuring a safe working environment for both employees and customers.
- Performance Tracking: Monitor key performance indicators (KPIs) such as customer satisfaction, job completion rates, and revenue growth to identify areas for improvement and make informed business decisions.
- Supplier Relations: Maintain strong relationships with suppliers to secure the best rates and ensure the timely delivery of materials and tools required for operations.
Milestones
CraftsmenElite Home Services expects to complete the following milestones in the coming months to ensure its success:
- Secure Initial Funding: Obtain the necessary capital to cover startup expenses, including tools, transportation, marketing, and initial operational costs.
- Obtain Licenses and Insurance: Ensure all necessary business licenses are acquired and appropriate insurance policies are in place to protect against liabilities.
- Launch Handyman Business: Officially begin operations, offering services to customers in Bloomington, IN.
- Develop a Robust Marketing Strategy: Create and implement a marketing plan to build brand awareness and attract an initial customer base through online and offline channels.
- Establish Strategic Partnerships: Form alliances with local suppliers and businesses to enhance service offerings and secure advantageous pricing on materials and supplies.
- Build a Strong Online Presence: Develop an engaging website and establish profiles on relevant social media platforms to reach a broader audience and facilitate customer engagement.
- Achieve $15,000/Month in Revenue: Aim to reach this revenue level through consistent service delivery and customer satisfaction within the first year of operation.
- Implement Customer Feedback System: Develop a system to gather and analyze customer feedback to continuously improve service quality and customer satisfaction.
- Hire and Train Additional Staff: As demand increases, recruit and train additional skilled handymen to meet customer needs and maintain service standards.
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
- Taxes
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment
Appendix
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.
Summary
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.
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