The start up costs for a handyman business are extremely low compared to most other types of businesses. If you already have the tools and the skills, you can get started for under $1,000. Just like with any other type of business, however, there are plenty of hidden costs that you may not see coming.
In this post I’ll share how much you can expect to spend starting a handyman business. For information on how much I spent to start my handyman business, check out my monthly income reports.
Handyman Business Start Up Costs
If you already have a lot of tools, are willing to do your own marketing, and don’t have a lot of money to spend, you can start a handyman business for a little over $500. Hopefully you have a little more than that to spend if your considering opening a business. If you want to go big and hit the ground running, the sky is the limit. You can spend well over 10 thousand. Most handymen will fall somewhere in the middle of these figures and can expect to spend about $2,000-$4,000.
Here is a comprehensive list of the common costs a new handyman business should expect to encounter.
- Cost: $100-$400
- This cost will vary depending on the city and state in which you plan to run your business and the structure that you decide to file under. The cost listed above is for an LLC (Limited Liability Company).
- Cost: $20-$80 online
- The price of your business cards will reflect the quality.
- Cost: $125-$250 (rental for 6 months)
- This is one of those costs that you may not see coming as I didn’t when I started my handyman business. I do strongly recommend that you rent a mailbox opposed to using your home address.
- Cost: $40
- Technically it doesn’t cost anything to set up a bank account, but there is usually a minimum balance of $25 plus about $15 for the first 100 checks.
- Software: $0-250
- Consultation with Accountant: $50-$500
- Free accounting software does exist but a paid version is going to be better in the long run. If you use a PC, Quickbooks is the way to go. I recommend AccountEdge for the Mac user. If you aren’t familiar with accounting, you may consider consulting with an accountant before trying to tackle your books.
- Cost: $150-$8,000
- If you setup your own website (easier than you think), you can save a LOT of money. To have a decent website designed should cost a couple thousand bucks. If you hire somebody to design a high end site you can pay up to $8,000.
- Cost: $100-$350
- This expense is optional, but recommended. It will help make you appear more established and sell your services a little easier. Some polo shirts with your logo are all you really need.
- Cost: $0-$500
- You can design your own or have a pro do it for you. I’d recommend the latter. Outsourcing your handyman logo is probably the easiest way to get a great logo designed for less than you would pay a logo designing consultant.
- Cost: $0-$500
- If you simply start out advertising on craigslist, signing up for online directories, and building your website, it may not be necessary to pay for advertising. However, dedicating a couple hundred dollars to experiment with a few methods of advertising will pay off.
- Cost: $0-$500
- I recommend buying tools as necessary. Hopefully you have the basics such as a drill, miter saw, circular saw, a hammer, and some screw drivers.
- Some states require you to have a license in order to perform any work on a home. My state doesn’t require a license, but I have a limit of $1,000 per job. I’m currently unlicensed and this is the way I recommend starting out if you can.
- Some say you need handyman insurance right away, I disagree in most cases. I held off for several months before getting it myself.
- These aren’t necessary right away and I waited about 3 months before getting mine. I spent about $250 and applied them myself.
That should just about cover it. If you think I’ve left something out or think I’ve got something wrong, please leave a comment below.
Although this list seems long, don’t let it discourage you. A lot of these costs aren’t necessary right away and can be dispersed over several months. I certainly didn’t go out and spend $3,000 my first month in business. I think it’s best to spend money on business upgrades as a business grows.
If you still have questions concerning handyman business start up costs, I recommend reading my monthly reports starting with my first one.