Making sure that you have contractor business insurance is only the first step when it comes to starting your own handyman business.
If you enjoy working with your hands and are always occupied with DIY projects around the home, turning your skill into a handyman can seem like a common-sense move. As a handyman, you get to work for yourself. This is also a good move if you aren’t comfortable with a regular nine-to-five job.
Make it official
However, deciding to start a business is just the first step to starting a handyman business. You will need to take some official steps. These will differ from city to city and state to state. It’s best to check your local laws regarding starting a new small business and becoming a contractor.
Once you’ve done so, you’re well on the way to starting a new business. However, as with any new business, there are still a lot of things you will need to keep in mind when starting a handyman business:
Create a business plan
This will help you decide what you want to achieve with your business. It will help motivate you to run and grow your company to its fullest potential by setting out your long- and short-term goals.
Your business plan should include your projected income from your business every six months to a year. It should also include your expected costs, what services you will offer, and any other business-related details you can think of. You can easily find fillable templates online if you aren’t sure where to begin.
Determine an hourly rate
Choosing prices per project can result in you overpricing or under-pricing your services, depending on how long any given job takes you. To make sure that you’re not losing money by setting the wrong hourly rate, do some research.
Depending on the type of job, the average rate for per hour handyman services falls between $65-$125. However, make sure to check average prices in your area so that you can offer competitive pricing in your local market. At the same time, be careful of under-charging. If you charge too low, you may get many jobs, but you’ll find it challenging to achieve your financial goals. You may even lose money, depending on your overhead costs.
Get Contractor Business Insurance
Getting insured is critical for any small business, but this is especially important for a handyman. General liability insurance will cover a host of things, including bodily injury, property damage, personal injury, and advertising damages. It will cover you if you accidentally damage a customer’s home or suffer an injury at work, for example.
Injuries and accidents are common in a handyman business, and insurance will help protect you in the case of lost wages from such mishaps. They will help you ensure that your business continues to run successfully in the case of a lawsuit by a disgruntled customer, or simply if you find yourself suffering from a work-related injury.
In fact, most states require you to be insured before you start a business as a contractor, like a handyman business. This means that getting insured is a key step to making sure your new business is thriving.
How do I get contractor business insurance?
Talk to a trusted insurance professional about getting quotes for different types of contractor business insurance, including ones tailored to your specific needs as a handyman. If you’re unsure where to start, you can contact Farmer Brown Insurance on (888) 973-0016.