Handyman Business Plan Template
If you want to start a handyman business or expand your current handyman company, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of handyman business plans.
The following handyman business plan template and example gives you the key elements you must include in your plan.
Example Business Plan For Handyman Businesses
I. Executive Summary
Business Overview
[Company Name] is a new handyman business located in [location]. The company will offer a variety of residential handyman services, including plumbing, drywall service, carpentry, and door and window repair. [Company Name] strives to be the best handyman service in the area, focusing on customer service and maintaining long-term relationships. We will market ourselves as friendly neighborhood handymen who can help residents with all their home repairs and concerns.
Services
[Company Name] will provide local residents and homeowners with a variety of services to help keep their homes in perfect condition. Some of these services include:
- Plumbing
- Painting
- Door and window repair
- Floor repair
- Drywall installation and repair
- Carpentry
Customer Focus
[Company Name] will primarily serve the residents and homeowners of [location] and the surrounding area. The demographics of these customers are as follows:
- 65,023 residents
- 42% married
- 35% with children under 18
- 55% homeowners
- Median age of 39
These demographics serve our company well. With such a large population of homeowners, many residents will need a local handyman to keep their homes in perfect condition. Many residents own homes that are decades old and need frequent upkeep and repairs. [Company Name] can provide homeowners with whatever services they need.
Management Team
[Company Name] is led by [Founder’s Name], who has been a handyman for [X] years. Throughout this time, he has worked on a variety of installation and repair services while employed by local handyman businesses. He initially worked for local competitors but branched out on his own a few years ago. After being self-employed for a few years, [Founder’s Name] is ready to officially incorporate his business and hire several other handymen who can help expand the business and clientele.
[Founder’s Name] has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.). He also already has a starting customer base to provide revenue for the company.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The company will be providing a valuable service for homeowners who are in need of a variety of handyman services.
- [Founder’s Name] has a track record of success in the handyman industry and already has a loyal client base.
- [Company Name] will provide high-quality installation and repair services for a moderate price.
Financial Highlights
[Company Name] is currently seeking $470,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $150,000
- Vehicle purchase and maintenance: $50,000
- Equipment and initial supplies: $150,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new handyman business located in [location] and will serve residents and homeowners in the city and surrounding area. We will offer a variety of residential handyman services, including plumbing, drywall service, carpentry, and door and window repair. [Company Name] strives to be the best handyman service in the area that residents can trust for all of their home projects. We will market ourselves as friendly neighborhood handymen who can help residents will all their home repairs and concerns.
[Company Name] is led by [Founder’s Name], who has been a handyman for [x] years. He started off his career by working for a variety of local handyman services businesses before branching off on his own as a self-employed contractor. Now with years of experience under his belt and a loyal client base, [Founder’s Name] is ready to turn his side hustle into a thriving business that employs several handymen.
[Company Name]’s History
[Founder’s Name] recently began researching what it would take to incorporate his business and expand his client base. He has analyzed the costs, market, demographics, and local competition. [Founder’s Name] has compiled enough information to develop his business plan in order to approach investors.
Once his research was complete, [Founder’s Name] incorporated [Company Name] on [date of incorporation] as an S-Corporation. The business is currently being run out of [Founder’s Name]’s home, but once the lease on [Company Name]’s office location is finalized, all operations will be run from there. He currently uses his personal vehicle to drive to clients’ homes but will purchase a van that will be used specifically for the business.
Since incorporation, the company has achieved the following milestones:
- Found a commercial space and signed a Letter of Intent to lease it.
- Developed the company’s name, logo, and website located at [website].
- Planned the suite of services to be offered.
- Determined equipment, supplies, and materials needed.
- Begun recruiting key employees and experienced handymen.
[Company Name]’s Products/Services
[Company Name] will provide local residents and homeowners with a variety of services to help keep their homes in perfect condition. These services will include a variety of repair and installation options. Some of these services include:
- Plumbing
- Painting
- Door and window repair
- Floor repair
- Drywall installation and repair
- Carpentry
Handymen will charge an hourly fee that will depend on the service and additional fees for any supplies needed and additional requests.
III. Industry Analysis
No building will ever be completely perfect or without the need for some fixing up and repairs. Therefore, handymen will always be an essential service to businesses and homeowners alike. Homeowners especially will always need help with installation and repair services that handymen provide, as they are often not skilled in the work required to maintain their homes.
Furthermore, society in general is becoming less skilled in basic repair and maintenance skills and is looking to skilled professionals to help keep their homes in good repair. The handyman service market is expected to grow at a compound annual growth rate of 17.2% over the next five years. This is enormous growth for any industry and shows just how in-demand handyman services are. Therefore, there has never been a better time to incorporate a handyman business.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [company location] and its surrounding areas.
The area we service is suburban, with 55% owning homes. This means a sizable portion of the local population will require our services at some point.
Customer Segmentation
[Company Name] will primarily target the following three customer segments:
- Homeowners: We will primarily market our services to new and veteran homeowners who need a friendly and convenient handyman to help them with all their home repairs. [Company Name] will market itself as a convenient option that can provide multiple services, so they don’t need to call multiple companies for help.
- Residents 55 and older: Residents who are near their golden years usually don’t have the time, energy, or ability to keep their house in good repair. When they want to make an update on their house or find themselves facing a huge repair, they look to experienced handymen who are on-call and provide friendly and quick service. We will market our outstanding customer service to show that we are the best business for all their repair needs.
- House flippers: With the housing market booming, more and more house flippers are taking advantage of it to turn a profit. They need reliable handymen who can help them with a variety of projects. Our handymen will have experience in multiple trades so that house flippers don’t need to call several businesses for help.
V. Competitive Analysis
Direct & Indirect Competitors
The following handyman companies operate within a 10-mile radius of [Company Name], thus providing either direct or indirect competition:
Mountainside Handy Services
Established in 1979, Mountainside Handy Services has been a popular local chain offering a variety of handyman services for local businesses and industries. They help offices and other establishments with on-call repairs and general remodeling and installation. Many businesses have sworn by Mountainside’s services, and the company’s reputation has skyrocketed simply through word-of-mouth marketing.
Though Mountainside Handy Services will continue to thrive, the company primarily works with local businesses and, therefore, will be a minor competitor for [Company Name].
John’s Installation And Repair Inc
John’s Installation and Repair Inc has been a profitable small handyman business for over a decade. This small business helps with a variety of residential repair services, including plumbing, electrical, and carpentry. John’s small team has gained a great reputation for their friendly customer service and quick repairs.
Though John’s Installation and Repair Inc has gained a positive reputation, its scope of work remains small, even after a decade. They can only help with small projects and generally don’t sign up for larger-scale services. As [Company Name] grows, we will take on larger and larger projects and aim to be the only handyman that any homeowner needs.
Carpentry And More LLC
Established in 2005, Carpentry And More LLC set out to be the best local business for all carpentry-related needs. Customers can expect high-quality carpentry work paired with excellent customer service. Carpentry and More’s most popular services include deck and fence installation, remodeling, and door replacement.
Though Carpentry And More offers a variety of services, they primarily focus on and make revenue from their carpentry services. Therefore, they are a minor competitor when it comes to other services such as plumbing, painting, and general repairs.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. Those advantages include:
- Customer-Focus: [Company Name] contractors provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the process, from the initial inquiry to the follow-up once the project is completed.
- Management: [Founder’s Name] has been extremely successful working in the handyman industry and will be able to use his previous experience to help clients with whatever they need. His unique qualifications will serve customers in a much more sophisticated manner than many of [Company Name]’s competitors.
- Relationships: Having lived and worked in the community for decades, [Founder’s Name] knows many of the local residents and has already established a loyal clientele from his years as a solo contractor. These relationships will provide the company’s initial clientele and help our business through word-of-mouth marketing.
VI. Marketing Plan
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] seeks to position itself as a high-quality, friendly, and convenient handyman business. Clients can expect to receive the best handyman services from skilled contractors and professionals in [location] using the highest quality materials and tools.
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Client-focused installation and repair services, where the company’s interests are aligned with the customer.
- Service is built on long-term relationships and personal attention.
- Professional industrial experience in a small business setting.
Promotions Strategy
[Company Name] expects its target market to be individuals within a 10-mile radius of its location. [Company Name]’s promotion strategy to reach these potential customers includes:
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other individuals by providing discounts on future services for every new client produced. This strategy will increase in effectiveness over time.
Website/SEO
[Company Name] will invest in developing a professional website that displays all the services offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Company Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographic.
Publications
[Company Name] will advertise its services in key local publications, including newspapers and area magazines. Additionally, the company will print brochures and place them in specific locations frequented by target individuals.
Direct Mail
[Company Name] will blanket neighborhoods in the area with direct mail pieces. These pieces will provide general information on [Company Name], its services, and promotional discounts.
Billboards
[Company Name] will secure a billboard in the area that captures the attention of residents. The billboard will draw attention to the new business and its service offerings.
Pricing Strategy
[Company Name]’s pricing will be estimated on a project basis drawing on [Founder’s Name]’s deep expertise in various installation and repair services. The pricing will be determined by the materials needed and the amount of labor required to finish the job. Pricing will be moderate and less expensive than our competitors, but more expensive than lower-quality, efficiency-driven handyman and repair businesses.
VII. Operations Plan
Functional Roles
[Company Name] will need to fulfill the following functional roles to execute its business plan and ensure the company’s success:
Service Functions
- Installation services
- Repair services
- Customer service
- Scheduling of repairs and services
- Quoting and invoice creation
- Tool maintenance and upkeep
- Purchasing of materials and tools
Administrative Functions
- Social media management
- Website management
- Bookkeeping
- Marketing
- Hiring and training staff
- Maintenance functions
- Other general administrative functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been a handyman for [X] years. Throughout this time, he has worked on a variety of installation and repair services, both while employed by local handyman businesses, and while operating alone. After being self-employed for a few years, [Founder’s Name] is ready to officially incorporate his business and hire several other handymen who can help expand the business.
[Founder’s Name]’s has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.). However, [Founder’s Name] will hire assistant managers to help run the company and adequately train and manage staff. He will also hire administrative staff to help with operations, marketing, bookkeeping, and other administrative functions.
Hiring Plan
[Founder’s Name] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:
- Assistant Managers (1 to start)
- Administrative Staff (1 to start)
- Handymen (2 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenue will primarily come from providing installation and repair services to local homeowners. Pricing will be determined by the services required, materials and tools needed, and scope of the project.
The main cost drivers for [Company Name] will be labor expenses, marketing, and lease for the office space.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $470,000 to launch. The funds will be used for capital expenditures, office build-out, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $150,000
- Vehicle purchase and maintenance: $50,000
- Equipment and initial supplies: $150,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of Clients | Average |
|---|---|
| FY 1 | 100 |
| FY 2 | 120 |
| FY 3 | 150 |
| FY 4 | 200 |
| FY 5 | 225 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
