How Profitable is a Handyman Business in 2023?

With a current market value of $256 billion and a projection to grow to $314.7 billion by 2028, the handyman industry presents a lucrative opportunity for entrepreneurs. This article dives into the heart of the handyman business, exploring its profitability, market dynamics, and the costs involved in starting your own venture.

We’ll look at the financials: What does the average handyman business earn? How does this translate in terms of daily jobs and annual revenue?

Finally, we address the startup costs incurred for starting a handyman business. Indeed, setting up a handyman business involves various expenses, from equipment to marketing. We’ll break down these costs to give you a clear idea of the initial investment required. Let’s dive in!

Handyman Services market overview

As per IBIS, the handyman services market in the U.S. represented revenue of $265 billion and is expected to grow to $314.7 billion by 2028.

There are various industry services offered in this market such as plumbing repair, drywall installation and repair, electrical installation and repair, carpentry services, painting services, appliance installation and repair, flooring installation and repair, roofing repair, and gutter cleaning and repair. Yet, with over 1.4 million handyman service businesses across the country, the competition is also fierce.

How much revenue does a handyman business make?

Using the same source earlier, it’s safe to assume that the average turnover for a handyman business is around $498,000. Indeed, the U.S. handyman service industry is worth $256 billion in 2023 and there are about 1.4 billion handyman businesses across the U.S.

Now, using data from more than 770 franchised handyman businesses, a handyman business earns $540,000 in gross revenue per year on average. This number is the average gross revenue per business from 770 businesses of the largest 6 handyman service franchises in the U.S.

With an average cost per service of $375, that’s a total of 1,440 jobs per year. Assuming 250 working days per year, that’s on average 5-6 jobs per day per business.

Yet, not all handyman businesses have the same yearly revenue. Logically, some will earn more than others because of many factors like location, skill set, reputation, and the range of services offered.

How much does it cost to start a handyman business?

On average, it costs between $92,000 to $162,000 to open your own handyman business.

This includes various costs such as a vehicle, signage, equipment, inventory, computer hardware and software, furnished offices, etc. Here’s the detailed breakdown:

• Vehicle (9%): Funds for acquiring and maintaining vehicles to ensure timely and efficient travel to client locations.
• Real estate (4%): Cost for securing a central office or storage space for tools and equipment.
• Leasehold improvement and signage (4%): Costs to enhance the visual appeal of the leased office or workshop and for effective signage to attract local customers.
• Equipment, supplies, and inventory (5%): Cost of necessary tools, supplies, and inventory to carry out a variety of handyman services.
• Computer hardware and software (6%): Investment in technology infrastructure, including hardware and software solutions, to ease administrative tasks and enhance customer service.
• Furniture, fixtures, and office equipment (2%): Cost to furnish the central office or workspace with comfortable and functional furniture, fixtures, and essential equipment.
• Marketing (15%): Funds for local marketing initiatives, such as online presence, flyers, or local advertisements, to increase visibility and attract customers.
• Training (6%): Cost dedicated to ongoing training programs for the handyman team to stay updated on the latest techniques and safety measures.
• Permits, licenses, insurance, and professional fees (9%): Covering the costs associated with necessary permits, licensing, insurance coverage, and professional fees to ensure legal compliance and customer trust.
• Working capital (40%): The primary cost to manage day-to-day operations, cover admin expenses, and facilitate growth in the handyman business for the first 3-6 months.