Handyman Business Overview

A handyman provides maintenance, repair, and improvement services for residential and commercial properties. These professionals handle a wide range of projects, including plumbing repairs, electrical work, drywall installation, painting, carpentry, and appliance installation.

Many handymen focus on jobs that are too small for specialized contractors but too complex for the average property owner to complete. While some handymen concentrate on residential work, others serve both homes and businesses, offering services from basic repairs to more extensive property improvements. The size of jobs can range from quick fixes that take less than an hour to multi-day installation projects.

The most common business models include:

• Independent Contractor: A self-employed handyman who works directly with homeowners and small businesses. Many owners work as solo practitioners, building their client base through personal referrals and local reputation.
• Handyman Service Company: A business that employs multiple handymen to serve a broader customer base
• Franchise Operation: An independently owned business operating under an established handyman brand name

Related: Checklist To Start A Business

How Do Handymen Make Money?

Handymen earn revenue primarily through service fees charged directly to customers. Most use either hourly billing rates ranging from $50 to $100 per hour or flat-rate pricing based on the type and scope of work. Labor charges form the base of their income, with rates varying based on project complexity and local market conditions. This pricing structure allows them to maintain profitability even on smaller jobs while staying competitive with specialized contractors

Industry Statistics

Handyman services fall under NAICS code 811490 – Other Personal and Household Goods Repair and Maintenance. Let’s look at some numbers that show how this industry is performing.

Handyman Industry Size & Growth: The handyman services industry generated $273.6 billion in revenue last year. The industry has experienced a decline in growth, with an average annual decrease of 1.0% over the past five years. Growth projections indicate an upward trend due to improving consumer confidence and expected interest rate reductions. (IBISWorld)

Number of Handyman Businesses: Currently, 526,000 handyman businesses operate in the United States. This industry remains highly fragmented as most businesses are small, independent operators serving local communities. (IBISWorld)

Handyman Profit Margin: Net profit margins for handyman businesses typically range between 20% to 35% of total revenue. These margins account for operating costs, materials, and labor expenses. (IRS)

States with Most Handyman Businesses: The Southeast region has the highest concentration of handyman businesses, with Florida showing particularly strong demand due to its large retiree population. Population density and demographic factors influence the distribution of handyman services across different regions. (U.S. Census Bureau)

Also See: Ideas for Naming a Handyman Business

Costs To Start a Handyman Business

Starting a handyman business typically costs between $2,000 and $10,000. These amounts represent basic startup expenses for someone beginning as an independent operator.

Starting a handyman business involves several expenses. Here are some of the more expensive items to plan for:

Tools and Equipment: A professional-grade tool collection costs between $1,500 and $4,000. This includes power tools like drills, saws, sanders, and hand tools such as hammers, wrenches, and measuring equipment. Most handymen start with basic tools and add specialized equipment as their service offerings expand.

Vehicle: A reliable work vehicle costs between $5,000 and $15,000. Many handymen choose a van or pickup truck that can transport tools and materials to job sites. The vehicle should have enough space for commonly used materials and equipment.

Insurance: Business insurance typically runs from $500 to $2,000 annually. This includes general liability coverage to protect against accidents and property damage while working at client locations. Some handymen also choose to add tool coverage to protect their equipment.

Licensing and Certifications: Depending on the location and types of services offered, licensing fees range from $75 to $500. Some areas require specific trade certifications for certain types of work, particularly for electrical or plumbing tasks.

These estimates provide a general idea of startup costs, but actual expenses will vary. Location, service offerings, and business size influence total startup requirements.