The primary concern when starting any home based business is securing legal registration. An at-home home repair handyman business would invariably be a sole Proprietorship that does not require registration and is not recognized as a separate legal entity. The business however require license from the local county office. Some areas have zoning regulations that prevent or restrict home based businesses.
Applying for the contractor’s license and the handyman business license from the local county office provides legitimacy to the business, adds to a professional look, and helps if faced with lawsuits. Several states require separate licenses and insurance for each individual handyman and bar them from major plumbing, electrical wiring or gas-fitting projects for safety reasons.
Insurance is necessary for the home repair handyman business. The best insurance is a property damage liability policy that covers damage to client property owing to negligence or accidents. Sole proprietors can set-off the costs of family health insurance against business profits when filing tax returns.
The tools required to get started include
- a truck or a van to move around
- essential tools of the trade such as hammers and the like.
- computer to keep track of accounts, and a dedicated telephone line
The startup costs for home based home repair handyman businesses cost approximately $1000 excluding the truck and tools.
Handymen charge either on hourly basis or on piece-rate basis, determined before the work starts. The entrepreneur can opt for either approach, but require a fixed rate card to convince the client. The entrepreneur, while fixing prices should neither too much to become prohibitive for clients, or charge too less make it difficult recouping capital and expenses. A good approach towards price fixing is benchmarking the rates of other providers in the area and offering some discounts for repeat and regular customers.
The best advertisement for the handyman business is satisfied customers who spread the business through word of mouth. Success during the early stages before establishing a customer base however depends on advertisements. Low cost advertisement options include word of mouth advertising in the neighborhood, placing notices at local grocery stores, under the car wipers at parking lots, taking advantage of free classified ads, press releases, and the like.
Finally, success depends on perseverance to overcome the odds and remaining motivated to face the challenges as they come.
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