How to Start a Handyman Business

You’re a jack-of-all-trades who wants to make a go for working alone full-time and starting your own business, but where do you start? Starting a general handyman contracting business takes more than business cards and a bank account. As a new small business owner, you’ve chosen to embark on a journey that has no guaranteed success or income, but like all entrepreneurs, you’ve decided the risk is worth it. The construction industry is booming, and you’ve got the skill and experience required to take on all kinds of odd jobs — you just need some help with the other areas of running a small business. 

Long-term, your company’s success will rely on attracting enough customers and bringing in enough money to survive. That sounds more like a job for a marketing specialist or customer service rep, but if you don’t count these among your many skills, we’re here to help. You can get started on your business right away, without a complicated marketing strategy, and that’s where Bidmii comes in.

Bidmii helps connect independent contractors with homeowners who need projects done well, and fast. We’re here to help get small businesses like yours off the ground — and the good news is, it’s easier than you think. Below, we cover everything you need to do to launch and grow your business, from your business plan and cash flow to getting your first customers and getting paid. We’ll help provide the knowledge and resources you need when you’re starting a business, so you can focus on what you do best.

Table of contents

• Business Plan
• Selecting a Business Structure
• Register Your Business
• Create a Website
• Get Insurance
• Municipal Licensing
• Get Your First Customers
• How to Bid on a Project
• Complete the Project and Get Paid
• Build your Profile

Choose Your Services

With a handyman business, you’re not limited to offering one specific kind of service. You may have skills, experience, or licenses in different areas like electrical and plumbing, and be able to offer both to different customers, or take on both for the same project. You don’t need to do everything - and in fact - it may be more profitable to specialize in just a few areas. 

When you specialize, you signal to your customers that they can trust you with the finer details of their specific project. As a general handyman, it’s important to show that, although you might be able to do many things, you’ll do an exceptional job on them. You might find that you generate more business than you can handle with a few services, especially if you use Bidmii. 

When you’re starting your business, take some time to think about what handyman services you want to offer, and the ones you have the experience and skills to take on. Remember, you can always add a new service to your website or Bidmii profile later on, so it’s better to get started with the ones you’re most experienced and skilled at completing. As a rule of thumb, we recommend starting with 1-3 different skills and then adding more down the line.

Business Plan & Cash Flow

So you’ve decided you’re starting a handyman business — congratulations! On top of your other odd jobs, you’ll also need to be a CEO, CFO, business leader, and sales person, along with several other responsibilities. If you’re serious about your business, you’ll have a basic business plan and cash flow. You should know the basic services you’ll offer, how much you’ll charge for each service, and whether that means an hourly rate or a rate for each service. It doesn’t have to be pretty or complicated, but it should lay out your path forward.

One of the biggest reasons your business should have a business plan and initial cash flow is to apply for a small business loan. If you need vehicles, materials, or equipment like saws or drills for your handyman business, this will be crucial for you. Your business plan will include a description of your business, the services you will offer, a summary of who is involved and their responsibilities, how you plan to market your services and operate and manage the business, and how much funding you need, if any.

Don’t Forget the Cost of Tools & Equipment

Startup costs are one of the most prohibitive barriers to starting any business. If you’re planning on doing lots of different jobs, you’ll need a wide variety of tools. Examples of tools a general handyman might use include:

• Extension ladders
• Scaffolding
• Drills & drill bits
• Mitre saw, table saw, sawzall, or various other saws 
• Hammers, wrenches, screwdrivers
• Gas-powered generator
• Fall protection equipment

If you’ve been doing these types of jobs already, chances are you already have some tools and equipment that will come in handy, but since you’re just starting your own business, it’s likely that you’ll have to purchase some additional items. After tools and equipment, your next major investment will likely be a company vehicle and job trailer to haul your equipment. Your company truck and trailer can act as a moving billboard to advertise your business, so it’s worth getting your company logo and phone number on them. This helps to build brand awareness and portrays an image of legitimacy and professionalism to your potential customers.

Selecting a Business Structure

A business structure is one of the first decisions you’ll need to make for your professional handyman business. There are 4 standard types of business structures:

• Sole proprietorship
• Partnership
• Corporation
• Cooperative

Each structure type has different pros, cons, and implications, so you’ll need to choose the one that works best for your business. When selecting your business structure, consider your liability. Businesses with higher liability will want to choose a more protective structure, such as a corporation, which costs more than a sole proprietorship but offers benefits such as limited personal liability. If you’re in the construction business, your potential liability is higher, so it makes sense to protect yourself and your business from the start. Learn more about choosing your business structure.

Register Your Business

Now that you’ve selected your business structure, you’ll want to get your handyman business registered. Registering your business protects your business name and proves that your company is a legitimate entity — meaning that you can hire employees and complete legitimate work, among other benefits. To register for a business license, you’ll need to provide your business name and structure type, along with information including your address and other details. You’ll also need to pay for your business registration.‍

Register Your Business in Ontario

Create a Website

In the digital age, if you’re not online, you’re behind. Most owners of small businesses rely on word of mouth and social media to get customers, but a website is a big checkmark that helps to show potential customers that you’re operating as a legitimate company. Your website can be a simple contact page to prove you’re a real company. Many website builders offer a free trial, so you can get a basic website up and running on your own fairly quickly. 

Pro Tip: Your Google business profile will be the largest entry point for your business. Start your site there, and you’ll have an online storefront created quickly for less than $20/year.

Don’t get overwhelmed - just get it launched!

Many business owners will put off launching a website for months because it’s not perfect. In the beginning, you won’t get much traffic, so just make a basic website with relevant information and get it online. You don’t need to spend money on a custom designed website. Once you’ve got money coming in consistently, you can invest more in your website. Just be clear about what you offer. For example, it’s a good idea to include information about the types of jobs you can do, along with your experience in that specific trade. Your customers need to know that your general handyman business provides what they’re looking for, whether that’s framing, flooring, or any other service.

Get Business Insurance

Since you’re in the construction industry, you’ll probably want to consider at least 3 different types of insurance for your handyman business. Depending on the types of projects you’ll be doing, you’ll need to cover your general liability and consider factors like workplace safety and fall protection. It’s worth reaching out to several different insurance agents for quotes and advice. The types of insurance you may need include:

General Liability insurance: potential damage you may unintentionally create at a client’s property.

Workers' Compensation: potential injuries to you or others while on the job.

Equipment insurance: covers theft or damage to your tools and equipment.

Learn the Bylaws and Licences Needed For A Handyman in Ontario

Depending on your location and the type of work you’re completing, different rules and regulations may apply to your handyman business. You’ll want to look into whether your municipality or province requires a contractors license or handyman license, on top of your building license. It’s important to note that, depending on the municipality you’re operating in, a general contractor or handyman may need additional licensing to what is required by the Ontario College of Trades. 

For example, according to bylaws in the City of Toronto, additional license requirements apply to anyone who advertises or solicits for work as a building renovator or building contractor doing renovation work (including altering, repairing, or renovating buildings or structures). This means that if you’re planning to operate your handyman business within the City of Toronto, you’ll need a work permit from the city.  

In order to obtain this permit, you may need to provide additional documentation and submit to project evaluation by city examiners. The local municipal code will detail which trades require city permits, so it’s important to ensure that your subcontractors comply with this rule. If you don’t, you may deal with projects being halted if a representative of the city drops by the job site.

Get Your First Customers

The biggest step to starting your contracting company is getting your first customer. It can quickly become a struggle between lining up new projects and completing those you’ve already agreed to. Most new business owners are forced to divide their limited time on the many different areas of their business. As a business owner, you’ll need to make an executive decision about where your time is best spent.

To ensure that you have new projects coming in, you’ll need to spend time and money on marketing and sales, on top of managing your job sites. Traditional advertising can cost up to $100 per lead for lawn signs, flyers, and more, which is unrealistic when you’re starting your own business. Many successful handyman businesses have achieved the status of preferred contractor for such as real estate agents, but you may find this tough when you’re just starting out. The good news is, that’s why we created Bidmii. It’s the cheapest, easiest, and fastest way to get your first customers. 

How Bidmii Helps You Earn Your First Customers:

With Bidmii, you’ll lower your business expenses and increase your profitability with one simple tool. You’ll never have to pay for marketing expenses and materials because we’ll provide a direct link to your customers. Just create a free profile, select the types of projects you’re interested in, and receive daily notifications for new projects through SMS and emails that connect you with homeowners in your area. You can immediately start bidding on projects you want, send offers to potential customers, and engage in direct conversations with customers in your area. 

How to Bid On a General Handyman Project

Bidding on a project is easy and it helps provide upfront insight into your profitability on each project. If you’re just starting out, you may want to seek advice from other professional handymen on how to price projects, but in general, you should always make sure you can account for your costs. 

Example Project Bid: Handyman Job

Pompi from Mississauga needs repairs to the roofing and soffit of her cabana, so she posts a project on Bidmii. You see the email notification on your phone, and decide to put in a bid. You post additional questions to dive into the details of materials and colours. You estimate that you will incur around $500 in material and transportation. With this in mind, you decide to quote the job at $950. Pompi accepts the bid, and you’re left with at least $750 of profit on your first job, and you only spent money out-of-pocket on your handyman business registration, expenses, and materials.

Your Proposed Price: $950

Equipment & Expenses: $200

Total Profit: $750

Complete the Project and Get Paid

This is why you’re really here, and why you started your business in the first place. With Bidmii, you won’t have to spend your valuable time chasing payments from your customer. You’re protected by our terms and conditions, so you’ll receive payment directly into your account as soon as a project (or project stage) is marked as completed by both parties. 

Build your Profile

Congrats, you’ve completed your first project! If you do high-quality work, you’ll be rewarded with honest, verified ratings and reviews from your customers about your completed projects directly on Bidmii. As you grow your business with Bidmii, homeowners will feel more and more confident using your services which will help you compete for more (and bigger) projects. 

Want To Build Your Business Using Bidmii?

Bidmii is the fastest, easiest, and cheapest way to earn new customers for your handyman business. We’ll help you find new clients and make lasting relationships with homeowners in your area. By completing projects you’ll earn a strong reputation through ratings and reviews based solely on your skillset and communication.

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