The cost to start a profitable handyman business will usually fall somewhere between $2,000 and $6,000, depending on how much of the process you outsource vs. do yourself.

However, that doesn’t mean you have to spend that much upfront. These costs can be paid over the first several months in business while you are making money.

While this may seem expensive, the start-up costs for a handyman business are low compared to most businesses, especially if you already have the tools and a work vehicle.

Additionally, I don’t like to think of them as costs but as investments since you are investing in a business that will bring you freedom, high income, and fulfilling work.

Of course, you can start a handyman business for just a few hundred bucks, but that means you’ll be cutting corners that will cost you in the long run.

Here’s a more detailed explanation of costs.

This list assumes that you already have a lot of the necessary tools and a work vehicle. If you don’t have either of those, then the cost will be significantly higher, of course.

This expense will vary depending on the city and state in which you plan to run your business, the business structure you choose (LLC, S Corp, or Sole Proprietor), and whether or not you pay somebody to help you submit the forms.

If you go with an LLC and file the forms yourself, expect to spend about $400-$500 here. However, that is the cost for filing with the state, you’ll also need to consider other business licenses such as a city business license. But, those are usually less expensive and should only be around $100-200 for each city you plan to work in.

In most states, you won’t need a contractor’s license to start offering home repairs. However, if you want to tackle large projects such as kitchen or bath remodels and don’t want to be limited to only small repairs, then a contractor’s license is usually necessary.

The cost to obtain that license can vary significantly depending on where you live and other factors. This is something you’ll want to look into for your state.

Getting general liability insurance as a pro handyman isn’t required by law unless you have a contractor’s license, but it’s still a good idea and something I recommend. Here’s a guide to getting the right coverage at the right price.

Typical handyman services only require basic hand tools and a few power tools. Usually, no expensive specialized equipment is necessary.

If you already have most of the essential handyman tools, this will be a small expense. However, if you possess very few tools, then you’ll obviously spend more.

Either way, it’s best to avoid throwing a bunch of money at fancy tools during the first few months. Instead, buy tools as you need them.

There are two types of software most handymen will need: accounting software and estimating software. There are excellent free options for both, as I mention here. However, these are usually “freemium” models where you will have to pay for certain optional features.

You can design your own or have a pro do it for you. I’d recommend the latter. Crowdsourcing your handyman logo is probably the easiest way to get a great logo designed for about $500. But in a pinch, you could use a service like Fiverr to get one for much cheaper.

If you build your own website (easier than you think), you can save a LOT of money here. To have a decent website designed by a professional will usually cost a few grand. If you hire somebody who can both design and understands marketing, you can easily pay $8,000 or more. Or, you can go through my Handyman Marketing Machine course and learn how to do it yourself the right way, so your website actually generates leads for you.

Investing in a professional uniform (which can be as simple as a nice polo shirt with your logo on it) will help you build trust with customers and sell your services. This is obviously not required but will make a big difference in how customers perceive you and, therefore, how much they will pay for your services.

You can get 100 basic cards for just under $20, or you can get nicer cards and spend considerably more.

Branding your work vehicle is a great way to look more professional and get your name out there. I spent about $250 and applied them myself. But if you do a vehicle wrap or have somebody else design them for you, the price will be much higher.

This will cover things like paying for leads or priority placement in search engines.

The cost to attract customers will vary based on the advertising method, the effectiveness of your ads, and how aggressively you approach advertising.

If you have a large network of friends and family to promote your services to, or if you are smart with your online marketing, you may never have to pay for ads to keep your schedule filled.

However, for most new handymen getting started, you can expect to spend at least $500 over the first few months paying for leads or ads on various websites.

It usually doesn’t cost anything to set up a business checking account, but there is usually a minimum balance of $500 plus $29 for the first checks.

If you hire someone to handle your bookkeeping, they will often charge an initial setup fee. Of course, this is optional, and you can do your bookkeeping yourself.

Paying other people for their knowledge is the best way to shortcut your path to success in business. Online courses, books, and even one-on-one consulting are all recommended because what you learn will often pay for itself within months, give you the best chance for success, and make the process of getting started more enjoyable.

Ultimately, everyone has a different style when starting a business. Some people are comfortable dropping ten grand because they know this is what they’re going to do, and they know they have the skills to make it work, and others may want to slowly dip their toes into the pool before going all-in with their startup.

Below is a table that demonstrates the expected start-up costs depending on how you approach starting your business.

Table 1: Estimated Start-Up Expenses for a Solo Handyman Business

On the left column, you have what I call the “cheap labor” approach. This is when you don’t invest anything into looking professional or into marketing and just rely on word-of-mouth. This usually results in a poor experience, low profits, and becoming cheap labor.

The next column is the “luxury startup,” which is the opposite extreme. This is what you can expect if you outsource everything and hire experts to handle everything from marketing to accounting. While this spare-no-expense approach will certainly help you get started faster, it is prohibitively expensive for most.

The third column is the “Instant Pro” version, which is what I recommend. This is a good combo between frugality and investing in things that have a high return on investment, such as marketing yourself as a professional and investing in your business education.

And finally, you have the fourth column, which is what you can expect to invest if you DIY almost every step of the process, from designing your own logo to doing your own accounting. It will save you money in the short term but will take significantly longer to get your business going.

The cost to start a handyman business is low compared to most businesses, or even career changes for that matter, but it still requires a financial investment.

Being too frugal can cost you in the long run, but that doesn’t mean you need to have $6,000 in savings to be successful. A lot of the startup-up expenses aren’t necessary right away and can be dispersed over several months. I certainly didn’t go out and spend $6,000 in my first month in business. Not even close.

Regardless of how much money you have to invest, you can start a profitable handyman business with the right approach and consistent effort.

If you’re ready to take control of your time and start a profitable handyman business, check out my complete startup guide here.

Now, listen to the podcast version of this article, which includes insights into where to invest your start-up capital for the highest ROI. Listen right here or on your favorite podcast app!

HS027 – How much does it cost to start a handyman business?

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