Learn how to start or grow a handyman business
Handyman Startup
Handyman business start-up costs

How Much Does it Cost to Start a Handyman Business?

The cost to start a profitable handyman business will usually fall somewhere between $2,000 and $6,000, depending on how much of the process you outsource vs. do yourself.

However, that doesn’t mean you have to spend that much upfront. These costs can be paid over the first several months in business while you are making money.

While this may seem expensive, the start-up costs for a handyman business are low compared to most businesses, especially if you already have the tools and a work vehicle.

Additionally, I don’t like to think of them as costs but as investments since you are investing in a business that will bring you freedom, high income, and fulfilling work.

Of course, you can start a handyman business for just a few hundred bucks, but that means you’ll be cutting corners that will cost you in the long run.

Here’s a more detailed explanation of costs.

Some of the links on this page are affiliate links. That means I receive a small commission if you click on them and buy. This is at no additional cost to you and helps me to continue publishing free content.

List of Handyman Business Start-Up Costs

This list assumes that you already have a lot of the necessary tools and a work vehicle. If you don’t have either of those, then the cost will be significantly higher, of course.

Business Licensing: $100-$1,000

This expense will vary depending on the city and state in which you plan to run your business, the business structure you choose (LLC, S Corp, or Sole Proprietor), and whether or not you pay somebody to help you submit the forms.

If you go with an LLC and file the forms yourself, expect to spend about $400-$500 here. However, that is the cost for filing with the state, you’ll also need to consider other business licenses such as a city business license. But, those are usually less expensive and should only be around $100-200 for each city you plan to work in.

Contractor’s License (optional in most situations): $0 – $1,000

In most states, you won’t need a contractor’s license to start offering home repairs. However, if you want to tackle large projects such as kitchen or bath remodels and don’t want to be limited to only small repairs, then a contractor’s license is usually necessary.

The cost to obtain that license can vary significantly depending on where you live and other factors. This is something you’ll want to look into for your state.

Liability Insurance: $30 – $200 per month

Getting general liability insurance as a pro handyman isn’t required by law unless you have a contractor’s license, but it’s still a good idea and something I recommend. Here’s a guide to getting the right coverage at the right price.

Tools and Equipment: $0 – $3,000

Typical handyman services only require basic hand tools and a few power tools. Usually, no expensive specialized equipment is necessary.

If you already have most of the essential handyman tools, this will be a small expense. However, if you possess very few tools, then you’ll obviously spend more.

Either way, it’s best to avoid throwing a bunch of money at fancy tools during the first few months. Instead, buy tools as you need them.

Software: $0 – $75

There are two types of software most handymen will need: accounting software and estimating software. There are excellent free options for both, as I mention here. However, these are usually “freemium” models where you will have to pay for certain optional features.

Logo Design: $0 – $1,000

You can design your own or have a pro do it for you. I’d recommend the latter. Crowdsourcing your handyman logo is probably the easiest way to get a great logo designed for about $500. But in a pinch, you could use a service like Fiverr to get one for much cheaper.

Build a Website: $200 – $8,000

If you build your own website (easier than you think), you can save a LOT of money here. To have a decent website designed by a professional will usually cost a few grand. If you hire somebody who can both design and understands marketing, you can easily pay $8,000 or more. Or, you can go through my Handyman Marketing Machine course and learn how to do it yourself the right way, so your website actually generates leads for you.

Uniforms: $100 – $500

Investing in a professional uniform (which can be as simple as a nice polo shirt with your logo on it) will help you build trust with customers and sell your services. This is obviously not required but will make a big difference in how customers perceive you and, therefore, how much they will pay for your services.

Business Cards: $20-$100

You can get 100 basic cards for just under $20, or you can get nicer cards and spend considerably more.

Truck Decals: $0 – $3,000

Branding your work vehicle is a great way to look more professional and get your name out there. I spent about $250 and applied them myself. But if you do a vehicle wrap or have somebody else design them for you, the price will be much higher.

Initial Advertising: $0 – $1,000

This will cover things like paying for leads or priority placement in search engines.

The cost to attract customers will vary based on the advertising method, the effectiveness of your ads, and how aggressively you approach advertising.

If you have a large network of friends and family to promote your services to, or if you are smart with your online marketing, you may never have to pay for ads to keep your schedule filled.

However, for most new handymen getting started, you can expect to spend at least $500 over the first few months paying for leads or ads on various websites.

Bank Account: $529

It usually doesn’t cost anything to set up a business checking account, but there is usually a minimum balance of $500 plus $29 for the first checks.

Bookkeeping services: $0 – $1,000

If you hire someone to handle your bookkeeping, they will often charge an initial setup fee. Of course, this is optional, and you can do your bookkeeping yourself.

Business consulting and Education: $1,000 – $10,000

Paying other people for their knowledge is the best way to shortcut your path to success in business. Online courses, books, and even one-on-one consulting are all recommended because what you learn will often pay for itself within months, give you the best chance for success, and make the process of getting started more enjoyable.

Different strokes for different folks

Ultimately, everyone has a different style when starting a business. Some people are comfortable dropping ten grand because they know this is what they’re going to do, and they know they have the skills to make it work, and others may want to slowly dip their toes into the pool before going all-in with their startup.

Below is a table that demonstrates the expected start-up costs depending on how you approach starting your business.

Table 1: Estimated Start-Up Expenses for a Solo Handyman Business

Costs to start a handyman business

On the left column, you have what I call the “cheap labor” approach. This is when you don’t invest anything into looking professional or into marketing and just rely on word-of-mouth. This usually results in a poor experience, low profits, and becoming cheap labor.

The next column is the “luxury startup,” which is the opposite extreme. This is what you can expect if you outsource everything and hire experts to handle everything from marketing to accounting. While this spare-no-expense approach will certainly help you get started faster, it is prohibitively expensive for most.

The third column is the “Instant Pro” version, which is what I recommend. This is a good combo between frugality and investing in things that have a high return on investment, such as marketing yourself as a professional and investing in your business education.

And finally, you have the fourth column, which is what you can expect to invest if you DIY almost every step of the process, from designing your own logo to doing your own accounting. It will save you money in the short term but will take significantly longer to get your business going.

Conclusion

The cost to start a handyman business is low compared to most businesses, or even career changes for that matter, but it still requires a financial investment.

Being too frugal can cost you in the long run, but that doesn’t mean you need to have $6,000 in savings to be successful. A lot of the startup-up expenses aren’t necessary right away and can be dispersed over several months. I certainly didn’t go out and spend $6,000 in my first month in business. Not even close.

Regardless of how much money you have to invest, you can start a profitable handyman business with the right approach and consistent effort.

If you’re ready to take control of your time and start a profitable handyman business, check out my complete startup guide here.

Thumbnail image for The Handyman Startup Podcast

Now, listen to the podcast version of this article, which includes insights into where to invest your start-up capital for the highest ROI. Listen right here or on your favorite podcast app!

HS027 – How much does it cost to start a handyman business?

Boost Profits and Save Time

Handyman Business Mistakes E-book

FREE REPORT REVEALS…

…three common handyman business mistakes and how to avoid them.

Learn why some handyman businesses THRIVE while others STRUGGLE – and the secrets to growing a massively profitable handyman business.

  • Bob Hamilton December 19, 2013

    I’m very interested in finally starting my own business.I’ve been doing home improvement for about 20 years, approx. 10 of those are on a full time basis. I like your information on the subject and I’m open for any and all I can learn in the future.

    • Dan Perry December 19, 2013

      Well you’ve found the right place! Good to meet you, Bob.

  • Bobby Jania March 22, 2015

    Hey Dan-

    I wanted to start up my own handyman business.

    I need a truck. I have ALL the tools needed to start.

    I was wondering if you could provide Intel on business loans so I could buy a truck and perhaps apply personal debt into that business loan?

    • Dan Perry March 23, 2015

      Bobby,

      I don’t know much about getting a business loan so I’m the wrong person to ask.

      Honestly, I think starting in debt is a bad idea, though. I would recommend starting with whatever vehicle you have right now, get up and running, and if things are going well then get a truck. Starting a business with debt hanging over your head sounds like additional stress you just don’t want.

      Additionally, you can still find ways to look professional without having a nice truck.

    • dale butts December 21, 2016

      I have a. Home improvement business. And am trying to get work a small home improvement. BUsiness. I. Need. My paperwork. I wont someone. Help. Me get that. Can. You do that for me. Let me know soon. Am. In. Fl. Of. Let me know. Wher i. Get. To. Go to. Do that

  • Kate April 6, 2015

    I am a female considering starting a handyman business. Of course I would not be doing any of the work, but rather hiring qualified staff. I have a 23 year old son has not handle but I thought this would be a good way to start a small business inexpensively & a way to get my own minor home repairs done. you mentioned insurance but not being bonded. naturally I would do criminal background checks and drug screens is there anything else you could recommend. Would it be a good idea to attend one of the courses adult classes at a high school or college on how to start a small business?

    • Dan Perry April 7, 2015

      Kate,

      I would recommend getting as much knowledge and help as you can when starting your business so yes, I would at least look into the small business courses you mentioned.

      Dan

  • Wen May 1, 2015

    Hi Dan,
    I’ve been reading your blog for a few days now and I consider it a true blessing. You have no idea how much information your blog provides about the process of starting a handyman business. I am very excited about beginning the business and doing things right by following your steps and learning from your first year in business. I almost can hear and angels choir because you explain everything so clear and easy to follow. We, husband and I, are in Oklahoma, he’ll be the “tough and brave one” and I’ll be the “book worm”! 🙂

    I hope whatever you are doing, (since I visited your website and at this moment you are not taking any new customers), I hope everything is going wonderful for you. Again, thank you for shedding light on the business for us poor and wandering newbies! 🙂

    Wen

    • Dan Perry May 1, 2015

      Hi Wen,

      Thanks for the kind words! Very glad my content has been helpful for you. Also, it sounds like you will do very well as husband wife teams fit this business perfectly.

      Dan

  • Candelario September 21, 2015

    Hi Dan This was a good post! I am excited to start my business right up. Thanks Dan!

  • Giovannie Rivera April 6, 2016

    Hey Dan I have a handyman LLC but will I need workman’s Comp?

  • Gman August 19, 2016

    Great simple, concise info!! Just what I needed for my inquiring mind-Thanks

  • Anthony T. September 3, 2016

    hey Dan,
    im in the brainstorming phase of starting up my construction business. Is there a cheap way to register your own business name and create a website for under a 1000 dollars once I start my business up, or is it alright to do with out a website until I am more established as a company?

    • Dan Perry September 4, 2016

      Hi Anthony,

      Absolutely, although if you want a website that actually gets results, you’ll need to build it yourself if you want to spend less than $1,000.

      I’ve put together a couple of resources for you to get his done. The first is free: https://www.handymanstartup.com/how-to-build-a-website/

      The second is an online course called Handyman Marketing Machine that I’ll be opening up for registration this October.

      Dan

  • Yakima April 21, 2017

    It’s very interesting information about bussines. I have 10 years old experiense in handyman bussined in Yakima. Thanks Dan!

  • Jesus May 21, 2017

    Hello,

    I’m looking for a business oportunity and I think handyman Start Up its a good idea. I have a 50,000 loan from my family. Could you give me an advice?

    Regards.

  • Walter Langely October 7, 2017

    This becomes very very helpful! Right now I’m running 10 hours an afternoon in a gadget store and once I lave that activity I were given and work doing atypical jobs for my uncle. I’m averaging 14-15 hours a day, and I’m mentally and bodily exhausted lol! I’m equipped to take the plunge and strive things on my own and make a few correct cash for myself and not someone else! Thank you!

  • Greg Smullen February 27, 2018

    Hi Dan, thanks so much for the info ! I’ve been working for a handyman for awhile and am really wanting to go out on my own. Have most of my own tools, a truck, and am just waiting to get my confidence up to the point where I’d feel comfortable doing most jobs by myself.

  • Michael r rixie May 31, 2018

    I live in Arizona and am looking to start my own business, do you know of any special licensing I would need other than just a regular business license for handyman work?any feedback is appreciated

    Thank you

  • Oliver Doppler August 31, 2018

    Hi Dan, I am in the process of starting my handyman business and I came across your site here. I have been perusing your site and it seems like it is has a lot of info. Can you tell me, honestly, if this site is legit? I have been duped in the past by companies who offered classes and books who take your money and, in the end, you end up with no ROI. I noticed all the stuff you offer comes at a hefty price. Can you tell me which items I would need to start? I certainly cant afford them all. Thank you for your time and effort.

    • Dan Perry August 31, 2018

      Of course I’m going to say it’s legit, but my 30 day money back guarantee should speak more powerfully than me saying it’s legit.

      If you need help setting up your business from scratch, then get Turn Your Skills Into Profit. If you’ve been offering services for a while and have the basics down, then start with the $100K handyman. You’ll quickly be able to afford the rest if you actually follow the advice.

  • anthony rando November 1, 2018

    Can you recommend a online company website that I can create my LLC to start my handyman business?

  • Ken November 18, 2018

    Hi Dan I had a few questions for you, I am currently looking at starting my own handyman business. I have built three homes of my own know how to do pretty much everything from concrete to roofing. I also had put in three sprinkler systems done a ton of landscaping custom cabinets countertops tile work and have even a wired to of my homes. My question is what is your suggestion when it comes to the amount of money I should have behind me before I jump from the job I currently have into going full time into my handyman business.

    • Dan Perry November 18, 2018

      At least six months of living expenses in savings if you want to quit your job. Although you might be better off starting up part-time and once you have some momentum then leave your job.

  • Rex December 26, 2018

    Hi Dan,
    I have been working in the auto industry for 30 years now but want out and have been wanting to start a handyman business. I have been doing some side jobs for friends and neighbors and built my own garage and love working with my hands, im just not sure if i have what it takes im picky and can be slow because of that could use some advice i have lots of tool and keep picking up more could use a small trailer but any way mainly how do i get faster and better organized?

    Rex

  • aliyanajohnn May 4, 2019

    Awesome.

  • Seamus May 22, 2019

    Hi Dan,
    I’ve really been enjoying the website, very helpful information you are providing here. I’m excited and am going all in, and starting my own handyman business. I’ve been in the construction industry for over 25 years, and have had it with these big companies just kicking you down the road when they are out of projects. I’m excited to learn more from your website, keep up the great work!!!

    Seamus,

  • Ricky Gupta August 7, 2019

    Awesome, very informative blog, you have almost covered all the points which comes into mind while planning to start a business, Thanks for sharing it.

  • Mark September 21, 2022

    Great information. I appreciate the clarity and the vision. I agree that you don’t really need too deep of pockets to get started … just gotta take the plunge! That’s what I’m trying to do.

  • Bradley April 23, 2023

    Hi dan I’d like to start a handyman business id start part to to see if it works and hopefully grow from there any good ideas? I have the truck and the tools/ knowledge

    • Dan Perry May 7, 2023

      So many ideas I can’t possibly share in this comment. Start listening to my podcast episodes on starting out part-time.

Leave a Comment