$2K-$10K
Startup Range
$50-$100
Per Hour
$40-$90
Insurance/mo
16%
Annual Growth
Complete Startup Cost Breakdown
| Category | Budget | Professional | Notes |
|---|---|---|---|
| Tools & Equipment | |||
| Basic Hand Tools Kit | $200-$400 | $500-$1,000 | Hammers, screwdrivers, pliers |
| Power Drill + Bits | $100-$200 | $200-$400 | Cordless, 20V+ preferred |
| Circular Saw | $50-$100 | $150-$300 | Essential for wood cuts |
| Miter Saw | $100-$200 | $300-$600 | Trim, molding work |
| Jigsaw, Oscillating Tool | $75-$150 | $150-$350 | Detail & demo work |
| Ladders (6ft + extension) | $100-$200 | $200-$400 | Fiberglass for electrical |
| Measuring & Levels | $50-$100 | $100-$200 | Tape, laser level, squares |
| Tool Storage (bags, boxes) | $50-$100 | $150-$400 | Organization = efficiency |
| Vehicle | |||
| Use Personal Vehicle | $0 | — | Track mileage for taxes |
| Used Work Van/Truck | — | $5,000-$15,000 | Cargo van ideal |
| Vehicle Wrap/Signage | $200-$500 | $1,000-$3,000 | Mobile advertising |
| Insurance & Legal | |||
| General Liability ($1M) | $40-$60/mo | $60-$90/mo | Property damage coverage |
| Tools & Equipment Insurance | $15-$20/mo | $15-$30/mo | Theft, damage protection |
| Commercial Auto (if needed) | $75-$150/mo | $100-$200/mo | For dedicated work vehicle |
| Business License | $50-$200 | $50-$500 | Varies by city/county |
| LLC Formation | $50-$300 | $50-$300 | Recommended protection |
| Marketing & Technology | |||
| Website | $0-$200 | $500-$2,000 | DIY vs professional |
| Google Business Profile | $0 | $0 | FREE - critical for local |
| Business Cards, Flyers | $30-$100 | $100-$300 | Leave at every job |
| Scheduling Software | $0-$30/mo | $30-$100/mo | Jobber, Housecall Pro |
| Uniforms (polo + logo) | $50-$100 | $100-$300 | Builds trust instantly |
| TOTAL STARTUP | $2,000-$4,000 | $7,000-$25,000 | Lower end = existing tools |
Smart Strategy: Start with basic tools you have. Buy specialized tools as jobs require them—your first drywall job pays for drywall tools. Most costs spread over first 3-6 months while earning.
Monthly Operating Costs
| Expense | Solo | With Employee |
|---|---|---|
| Insurance (liability + tools) | $55-$110 | $150-$300 |
| Vehicle (fuel, maintenance) | $200-$400 | $300-$600 |
| Phone & Software | $50-$100 | $75-$150 |
| Supplies & Materials | $100-$300 | $200-$500 |
| Marketing | $50-$200 | $100-$400 |
| Workers Comp | — | $200-$500 |
| TOTAL MONTHLY | $455-$1,110 | $1,025-$2,450 |
Pricing Your Services
| Service Type | Hourly Rate | Typical Job |
|---|---|---|
| Basic repairs (doors, fixtures) | $50-$75/hr | $75-$200 |
| Drywall repair | $60-$85/hr | $100-$400 |
| Deck/fence repair | $60-$90/hr | $200-$800 |
| Painting (small jobs) | $50-$80/hr | $150-$500 |
| Bathroom fixtures | $65-$100/hr | $150-$400 |
| Flooring repair | $60-$90/hr | $200-$600 |
| Minimum Service Call | $75-$150 (covers travel + 1 hr) | |
Don't underprice. New handymen often charge $20-$30/hour to "get clients." This leaves no margin after expenses. Minimum $50/hour—price for value, not volume.
Licensing Requirements by State
General Rule: Most states don't require a license for general handyman work. However:
- Electrical, plumbing, HVAC almost always require licenses
- Some states have dollar thresholds (e.g., California: $500+)
- Always check your city/county requirements
Common questions
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Frequently Asked Questions
Q.01 How much does it cost to start a handyman business?
Typical startup: $2,000-$6,000 if you already have basic tools and a vehicle. Full professional setup: $7,000-$25,000 including quality tools, work vehicle, insurance, licensing, and marketing. Costs spread over first months while earning.
Q.02 Do I need a license to be a handyman?
Most states don't require a handyman license for general repairs. However, specific trades (electrical, plumbing, HVAC) require licenses if work exceeds certain dollar thresholds. California's C-61 license is required for jobs over $500. Always check local requirements.
Q.03 How much does handyman insurance cost?
General liability: $40-$90/month ($480-$1,000/year) for $1M coverage. Workers comp (if employees): $50-$200/month. Tools/equipment coverage: ~$17/month. Business Owner's Policy (BOP): ~$90/month bundled.
Q.04 What tools do I need to start a handyman business?
Start with basic hand tools ($200-$500): drill, circular saw, tape measure, level, hammers, screwdrivers, pliers, wrenches. Add power tools as needed ($500-$1,500): miter saw, jigsaw, oscillating tool. Buy tools as jobs require them.
Q.05 How much can a handyman earn?
Solo handymen earn $50,000-$100,000/year. Charging $50-$100/hour is standard in most markets. At $75/hour with 30 billable hours/week, gross revenue is $117,000/year. Net profit after expenses: $60,000-$80,000.
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