Business, How To, News

How to Start a Home Repair Business in 6 Easy Steps

People sitting around table with construction plans and a sign that reads "Under Construction"

Starting a home repair business is a great entrepreneurial opportunity for any experienced handyman. If you start as a one-person business, the costs to start up are low.

However, starting a handyman business is not a walk in the park. You will face numerous challenges, such as securing funds or competing with reputable home repair companies.

Here are a few tips to help you.

1. Research your Market

Before you register your home repair business, you need to do thorough market research. The goal is to determine whether there is a market for your services.

One such example is Cricket Pavers. They have noticed the growing need for affordable patio design in South Florida. They have addressed the market demand by offering a wide range of wholesale paving supplies and providing installation services.

By analyzing your target market, you will adapt your business plan and services to current market demands.

2. Choose your Business Type

Before you officially start your handyman business, you need to choose the right business structure. There are several business types to consider for your home repair company, including:

Sole proprietorship

A sole proprietorship is perfect for handymen planning to work alone.

These business structures are inexpensive and simple to start.

Most importantly, with sole proprietorships, your business and personal assets and liabilities are not separate.

General partnerships

You can also form a general partnership with another person in the same industry. Partnerships are flexible since you share the profits, losses, and responsibilities of starting and running the home repair company. As a partner, you cover half of the debt and assets.

A Limited Liability Corporation

An LLC can be started by one person or a group of founders.

It protects your personal assets, such as your house, savings accounts, or vehicle, in case of bankruptcy or lawsuits.

3 Get Licensed

Before you start your handyman business, it is vital to understand the industry laws in your state. Every state has different regulations. Sometimes, they even contradict, so you will need to perform thorough research on your own.

Sometimes, customers will ask you to perform jobs outside of your legal limits. Remember that you cannot offer services you are not licensed for. Only by understanding the regulations in your state will you be able to turn them down and avoid legal headaches.

For starters, talk to other businesses in the niche and consult an attorney to provide you with legal advice. Then, focus on securing the licenses required for offering and advertising your services. They ensure they can perform specific types of work in your state.

Remember, for any handyman job above $1000, you need to have a contractor’s license.

4. Determine your Hourly Rate

When starting out, repairmen often decide to choose an arbitrary project rate. That is a big mistake. If you choose the wrong hourly rate, you may end up wasting time and losing money.

Precisely because of that, you need to determine our best hourly rate. If you go to relevant business directories, you will notice that handymen charge different hourly rates.

Hourly rates depend on various factors. Some of them are:

  • your business expenses, such as tools, health insurance, office supplies, phone, internet, website hosting, and vehicle maintenance
  • your taxes – As a self-employed contractor, you need to keep your taxes in mind. These include state income tax, federal income tax, and self-employment tax.
  • the billable hours you are planning to work monthly

5. Setting Up a Shop 

Now that you have chosen your market and secured the right licenses, it is time to set up your shop. That is a far more creative aspect of starting a home repair business. Here are a few steps to take:

  • Choose a name for your business. It needs to be relevant, original, and easy to remember.
  • Have your logo designed. Keep it authentic, memorable, and professional.
  • Hire web developers and designers to create your business website. In today’s hyperconnected era, a website is your company’s portfolio. Publish photos of your previous work, share customer testimonials, list your services, and write a detailed “About Us” page.

6. Promote your Business

Once you launch your business, you will also need to market it. To attract local audiences, combine online and offline marketing.

For example, in addition to your website, you should also claim your Google My Business listings that help you attract local customers right from Google’s SERPs. Also, register on all relevant business directories customers use to find home repair businesses.

Print materials, such as flyers or promotional items, may also help.


Starting a home repair business can be challenging, but you can make it work. All you have to do is have a business plan and make business decisions strategically. I hope these tips will serve as your solid starting point.

Eve Anderson


Eve Anderson is a marketing specialist turned blogger. Interested in sports and exciting travel destinations. Love to share content that can inform people.



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