A handyman business is a fantastic way to turn practical skills into profit. With steady demand for home repairs and the flexibility to start small, it’s no wonder so many people consider this path. But before you grab your toolbox, you need to know the price tag.
Costs can range from a few hundred bucks to tens of thousands, depending on your plans. In this article, we’ll break down what it takes to launch a handyman business and give you a clear cost range to kick things off.
Factors That Influence Startup Costs
Your startup expenses depend on a handful of choices:
- Service Scope: Basic fixes like painting or assembling furniture cost less to start than specialized work like electrical repairs or drywall installation.
- Business Model: Going solo keeps it cheap; hiring a team ups the ante.
- Location: Big cities might mean pricier licenses and fuel, while rural areas could save you cash.
- Scale: A part-time gig on weekends is leaner than a full-time venture covering a whole region.
These variables shape your budget, so nail down your approach first.
One-Time Startup Costs
Here’s what you’ll shell out upfront:
- Business Formation
Registering as a sole proprietorship might be free, but an LLC costs $50–$500, depending on your state. Want a snappy name like “Fix-It Fred”? A DBA (Doing Business As) adds $10–$100. - Licenses and Permits
A general business license runs $50–$400, based on your city or county. If your state requires a contractor’s license for certain jobs (like plumbing or electrical), that’s $200–$1,000+. - Tools and Equipment
A basic kit—hammer, screwdrivers, drill, saw—starts at $200–$800. Add power tools, ladders, or a tile cutter, and you’re looking at $500–$2,000+. - Insurance
General liability insurance, covering accidents or property damage, costs $400–$1,000 for the first year. If you hire help, workers’ compensation might add $500–$2,000 annually. - Branding and Marketing Setup
Business cards, a logo, and a basic website can be $100 if you DIY, or $1,000 with pros. Initial ads—think flyers or local online posts—run $50–$500.
Ongoing Operational Costs
Once you’re in motion, these keep you going:
- Supplies
Nails, screws, paint, and caulk add up to $50–$200 a month, depending on jobs. - Transportation
Gas and vehicle wear (or a lease if you’re carless) range from $100–$600 monthly, based on your service area. - Marketing
Ongoing ads or listings on platforms like Yelp or Google cost $50–$300 a month. - Insurance Premiums
That $400–$1,000 liability policy breaks down to $35–$85 monthly. - Labor (if applicable)
Assistants or subcontractors earn $15–$30 an hour, plus payroll taxes if they’re employees.
Low-Budget vs. High-Budget Startup Examples
Your costs can swing big:
- Minimalist Approach: Solo, using your old drill, working from home, and posting on free sites—$500–$2,000 total.
- Professional Approach: LLC, a helper, a full toolset, and ads in local papers—$5,000–$15,000+.
A lone fixer can scrape by cheap; a pro setup with staff and gear takes more dough.
Hidden or Unexpected Costs
Watch for these curveballs:
- Certifications: OSHA training or trade courses might run $100–$500 if you need credentials.
- Tool Repairs: Broken drills or dull blades need fixing.
- Travel: Long drives to jobs eat time and gas.
- Client Acquisition: Free estimates or cheap first gigs to win trust can dent early earnings.
How to Budget and Reduce Costs
Stretch your dollars with these tricks:
- Start Lean: Stick to repairs you can do with tools you own.
- Buy Smart: Grab used tools online or rent big items like sanders.
- DIY Marketing: Post on free platforms like Nextdoor or Facebook instead of paying for ads.
- Financing: Use savings, snag a small loan, or lease equipment to spread costs.
You don’t need a fortune—savvy moves keep it affordable.
Estimated Total Cost Range
Here’s the rundown:
- Low-End: $500–$2,500 for a basic, solo start.
- Mid-Range: $2,500–$7,000 for a small, pro-level operation.
- High-End: $10,000–$20,000+ with employees and top-notch tools.
Your location, services, and goals tweak these figures, but this is your starting point.
Conclusion
Starting a handyman business can be as cheap as a few hundred bucks or as hefty as a five-figure investment—it’s all about your approach. Whether you’re patching walls part-time or building a full repair empire, planning is key. Invest what you can afford, grow with demand, and watch your skills pay off. Take a sec to tally your local fees and tool needs, then get moving. Your handyman hustle is closer than you think!