The Handyman Startup Podcast

You only need to do two things to grow a profitable home repair business. Put in consistent, focused work. Work on the right things. That’s because the handyman business is a PROVEN business model. There are thousands of handymen all over the world already doing this. Simply follow best practices, put in the work, and do that consistently, and as long as your city is big enough to have a hardware store, you will eventually build a thriving business. However, that is MUCH easier said than done. That’s because there are many pitfalls along the way that sap motivation, focus, and time, making it impossible to grow a business. These pitfalls are why competent, motivated people fail to build a business they love. So, in this podcast episode, I discuss four of those pitfalls and how to avoid them so you can finally grow your business to the level you want. If you’d like 2024 to be the year where you finally reach your business goals, then I highly recommend listening to this podcast and taking notes. HS044 – Avoiding Common Pitfalls: Four Reasons Competent People Fail In Business In this episode, you’ll learn: Four reasons competent people fail to grow a business. How your immediate environment determines whether you follow through or give up. How to boost and maintain your motivation over the long term so your business growth becomes a matter of time. How to increase confidence and clarity. How to become a more effective person in general. I’m confident that if you implement the protocols in this episode, you will make substantial progress toward your business goals this year. Links and Resources: Register for the upcoming webinar here. Podcast episode on overcoming the fears of starting a business. How to set SMART goals. The post Avoiding Common Pitfalls: Four Reasons Competent People Fail In Business appeared first on Handyman Startup.

There are many profitable services to offer as a handyman, and one niche you may not have heard about is Aging-In-Place services. Aging-In-Place services are home modifications and improvements that allow aging adults to live in their homes safely and for longer. Examples include installing grab bars and rails, building ramps, improving lighting, and installing chair lifts. Aging-In-Place services first came on my radar about eight months ago when one of my students mentioned it on a live webinar. Ever since, I’ve seen it pop up all over the place. And that’s why I’m excited to bring you this interview with Pat Lund. As the executive director of Age Well At Home, he’s an expert in this field and happily shares how to capitalize on this growing business opportunity. HS043 – How to build a profitable aging-in-place business – Interview with Pat Lund About Pat Lund Pat is the creator and executive director of Age Well At Home – a non-profit business in The Twin Cities, Minnesota, that provides home modification and improvements to help aging adults live in their homes for longer. Pat has a ton of experience in the home service industry, which started when he got a job painting houses to help him get through high school. He later became director of several non-profit programs, including Paint-a-Thon, Meals on Wheels, and A Brush with Kindness. He worked locally and nationally with Habitat for Humanity to implement programs to assist lower-income families in maintaining their homes. About six years ago, Habitat for Humanity wanted him to help create a program to help the aging population stay in their homes, eventually leading to his current venture. Aside from his vast experience and connections, he’s just an overall nice guy who wants to connect with and help others in this industry. Resources Mentioned in the Podcast AgeWellAtHome.org (Pat’s website) National Council of Non-Profits (Help to financing for non-profits) Become a Certified Aging-In-Place Specialist (CAPS training) Harvard Joint Center for Housing Studies (home service statistics) Johns Hopkins CAPABLE Notes and Takeaways From This Episode These are great services if you enjoy working with your hands and helping people. The average job size to transform a home is $4,000-$5,000, but just $1,500 in home modifications can go a long way toward making a home safer for seniors. The population of people over 60 is exploding, so the demand and opportunities are growing. Most in-demand services include: Grab bar installation, Ramps, and Chair lifts. Other services: Taller toilets, walk-in shower installation, tub cut-outs, changing appliances, changing and adding lights, handheld shower heads. It can be challenging to gain the trust of seniors, but partnering with their healthcare providers is a great way to establish trust. If you can get them to recommend you, they will trust you. This is hard to do, but it’s well worth it. Advertising in the newspaper, local radio or TV station, and other local media outlets is a great way to reach potential customers. News outlets love a story about someone who had their life improved by some of these services. About 1/3 of referrals come from the kids of the aging adults. Becoming a Certified Aging-In-Place Specialist is a great way to build trust and connect with like minded individuals. Running your business as a non-profit can help build trust and allow you to help people who otherwise wouldn’t be able to afford your services. Aging-In-Place services are easy to learn, but business skills are what make the difference between success and failure. The post Unlocking the Business Potential of Aging-In-Place Services with Pat Lund appeared first on Handyman Startup.

After interviewing Rick McFadden and Bryan Clayton on my podcast – two guys who have scaled their home services businesses, I’ve been thinking a lot about the pros and cons of hiring employees. Is it worth the effort and stress? And since I’m certain I’m not the only one, I decided to write about the topic in-depth. So, in this podcast & article, I’ll dive into the advantages and disadvantages of hiring employees vs running a solo handyman business. I’d love to hear your thoughts as well. Please comment at the bottom of this article to share your opinion. Let’s start with the advantages of each. Listen to the podcast version of this article, which includes extra content. Listen right here or on your favorite podcast app! HS042 – Should You Hire Employees or Stay Solo? The advantages of staying solo #1 – It’s Enjoyable Being a handyman is the most enjoyable job I’ve had, which is why I continue to do it. I get to work with my hands, buy new tools, build relationships with my customers, do something new every day, and customers pay me with a smile. Jobs are short, so looming stress is rare. Sure, sometimes I’m doing something repetitive or boring, or I forget an essential tool and that puts me behind schedule and stresses me out, but for the most part, it’s a great career. I certainly enjoy it more than sitting in front of a computer. #2 – It’s Healthy Providing handyman services is relatively low-stress once your business is established and you get your systems down. Stress is a big killer in America, so this isn’t a small benefit. Providing handyman services is also an active job without being too labor intensive. You get to keep moving all day without breaking your back, carrying heavy loads, digging with a jackhammer, or working in uncomfortable positions for long periods. Lowering your stress and living an active lifestyle not only makes you feel better but it lowers your chances of diabetes, heart disease, and other diseases of modernity. Then, there is the social component of the job. As social creatures, we humans need healthy relationships with others. We also need to feel needed. As a handyman, you get both of these things. Less stress, more activity, and connection with others = better health. #3 – Flexible Schedule As a solo handyman, if you need some time off, you can take it. Your business won’t crumble to pieces while you’re gone. But when you hire employees, the stakes are a bit higher. Other people are relying on you to make tough decisions and put out fires. If you get burned out, you might not have a choice to take time off. You are fully committed. In many ways, that commitment is a good thing. It will keep you motivated and help you push through challenges you otherwise wouldn’t. But that may come with a hefty dose of stress, working long hours, and burning yourself out. Of course, once you get to the point where you have good people around you managing the day-to-day of your business, then you can take more time off. But, there will inevitably be stages where taking a break isn’t optional. A solo handyman business wins regarding the flexibility of your schedule. #4 – It’s easy (relatively) Starting any business is challenging because you not only have to work hard and make good decisions, but you also have to overcome setbacks and win the mental game. However, when comparing the two, scaling a business is clearly more difficult than starting a one-person show. There is more risk, tough decisions, and pitfalls along the journey when employees are involved. As a one-person handyman business, all you have to manage is yourself and the customer’s expectations. #5 – It’s a fast path to profits and more leisure time. Once you get your solo business up and running, which can be done in a matter of months with strategic effort, you can enjoy extra free time and control over your schedule. During the first several years of scaling a business, you will likely need to work hard six or seven days a week. Working solo is also a much faster way to a six-figure income because scaling a business requires investing much of your profits into growth, meaning a longer timeline of several years before you can have a high income, and even then, it will be limited by your motivation to grow. When working solo, any business growth immediately translates to higher income. Overall, a one-person handyman business is a great career with many benefits, but let’s look at the advantages of hiring employees. The advantages of hiring employees #1 – Higher Income Potential One of the main reasons to scale a business is to make more money, and who doesn’t want to make more money? As a solo handyman, you can make a solid income of well over $100,000 per year if you dial in your marketing, pricing, and specialties. But, no matter how well you dial in your business, you’ll always be limited by how much time you can work. If you scale your business and hire employees, the income potential exponentially increases. If you go big enough, there’s no reason you couldn’t make $1M per year in profit, although I’m sure that is rare. So, the income potential is higher, but that isn’t guaranteed, and it often means making less money for several years while you invest in your business to grow it. Growing a business is always a game of delayed gratification. #2 – Passive Income (more leisure time) You can make more money when you hire employees, and that money can be made passively once you get to a certain point. This is more difficult than it’s made out to be in books like “The 4-hour Workweek,” but once you get good systems and people in place, you can take a step back from your business and let other people run the day-to-day. You can go golfing, fishing, or whatever you enjoy doing with that extra time. As a solo handyman, you must always work to generate income. If you enjoy the work, this can be a good thing. I’ve seen handymen work into their late 80s or 90s and love what they do. They have a sense of purpose and connection, which many retirees struggle to find. Consistent movement keeps their bodies and minds younger. And, it provides a supplementary income for retirement. Because of these benefits, many people start a handyman business after they retire! #3 – You can hire people to do things you don’t like As a solo handyman, in addition to providing handyman services, you’ll follow up with customers, schedule jobs, collect payment, shop for materials, estimate jobs, market your business, and more. But once you have a team in place, you can delegate the things you don’t enjoy to people better suited for those tasks – allowing you to work on more challenging (and potentially interesting) problems related to growing the business. You can also outsource tasks as a solo handyman, such as bookkeeping, marketing, and even phone answering. The only challenge is that justifying these expenses is more difficult because they quickly eat into your profits. #4 – You are building an asset you can sell A business with good systems and employees is much more valuable than a one-person handyman business if you ever need an exit strategy. You can sell a solo handyman business, and I’ve seen it done. It’s just not nearly as valuable. #5 – Higher Status While being a pro handyman is an enjoyable and well-paying career, it’s not considered a high-status job in America. However, owning a successful business with a dozen employees is. As much as I’d like to say that chasing high status is a fool’s errand, I can’t help but recall the book Behave by Robert Sapolsky, where he digs deep into this topic and concludes that, in general, higher status leads to better health, longevity, and a sense of well-being. So, scaling a business has some compelling benefits. You can make more money, have more leisure time in the long run, eliminate tasks you don’t like, and potentially get more respect. But are the extra benefits worth the effort? Let’s start with money. It’s hard to argue that having less money is better than having more. Money can solve many modern problems and reduce or eliminate many stressors. For example, a new mother who can afford a full-time nanny will likely be healthier and happier than a mother who has to do it alone. When your car breaks down and you’re faced with a huge repair bill, having enough money can be the difference between a minor inconvenience and something that takes months to recover financially and emotionally. There are thousands more examples like this. So, I think it’s safe to assume that having more money is better. But that doesn’t mean it’s worth the blood, sweat, and tears to attain more money if you already have enough to live a good life. How many people have sacrificed the best years of their lives doing things they didn’t enjoy just to retire rich, bored, miserable, and without a purpose? Chances are you probably know somebody like this. How often do you see someone spending all of their time stressed out about work so that they can afford nice cars and big houses? How much time are you willing to sacrifice with your kids now (when they need you most) so you can spend more time with them later? Again, I think having more money is better than less, but at what expense? So, that leads us to the question – Is the additional risk, time, stress, and effort of scaling a handyman business worth the additional money? If you enjoy the work required to build a business, don’t have kids, and, as Bryan Clayton says, “have a fire in your belly,” I think the answer is yes, it’s worth the effort. But for others, the answer is less clear. Are you falling victim to the Arrival Fallacy? One of the most challenging psychological biases to overcome is the Arrival Fallacy – the illusion that you will attain lasting happiness and fulfillment once you accomplish a specific goal. You know the arrival fallacy is playing its trickery when you think, “Once I get X, I’ll live happily ever after.” So often, people are fooled by the arrival fallacy and end up sacrificing years of their lives to achieve a goal that only brings temporary satisfaction. Sometimes, achieving our goals makes us more durable happiness, but that is usually only if you eliminate a significant stressor. Getting out of an abusive relationship, eliminating a long and stressful commute, or solving a nagging health issue are examples. Quitting my soul-destroying 9-5 seems to have had a lasting impact on my happiness. But, if your goal is to have more (respect, wealth, freedom, a bigger house, etc.), then there’s a good chance the arrival fallacy is fooling you. Once you get more money, it may feel good for a while, but you’ll adapt and need more to get another hit of pleasure. Getting recognized by your peers will feel great, but that moment is fleeting, and you’ll have to achieve bigger things to get more recognition. I can give you a million more examples, but the point is that there is no finish line, regardless of how our minds like to convince us otherwise. This isn’t an argument to keep your business solo, avoid setting goals, or sit around thinking everything is pointless. Instead, it’s an argument to focus on the process vs. the outcome. Or, said another way, live your life how you think life should be lived right now instead of waiting for that next thing to be acquired or accomplished. Instead of asking, “What do I want to have or accomplish?” Ask, “How do I want to spend my constructive time, and with whom?” If the answer is managing people, working behind a desk, and evaluating spreadsheets, then definitely scale your business. There is nothing wrong with that. But if the answer is something else, then do that as much as you can. Passive Income/Retirement Isn’t All Sunshine and Roses One thing glorified in the last decade is passive income and getting to the point where work is optional. This is just another example of how powerful the Arrival Fallacy can be. Passive income is great. Again, more money is better than less money. But there’s very little logic with this mindset. Think about it. Your goal is not to have to work anymore. To get there, you’re going to spend years doing a LOT of work you probably don’t enjoy, so you can one day stop doing that work completely. You’re essentially working more, so you can work less. Does this make sense to you? And if that’s not enough, even if you accomplish your goal of early retirement or financial freedom, what will you do with all that time? Golf? Go to the beach? Fish? Hunt? Mountain bike? Ski? Spend more time with your kids? Those are all great things, but there are two more problems. First, you’re going to be lonely. Your kids will be in school most of the time, and your friends are likely still working or busy with their lives. Secondly, suppose you achieve the goal of passive income early. In that case, you’re probably a type A personality, and you won’t be able to sit on the sidelines while watching everyone else progress in life. Despite your massive successes, you’ll start to feel like a failure. You’ll feel a dulling of your abilities. You’ll miss the sense of progress. You’ll probably set a bigger goal and continue working because that’s the only thing that feels meaningful. I’m not saying that achieving financial freedom isn’t worth it. I’m saying that investing massive amounts of time doing things you don’t enjoy to get there is often a mistake. It makes much more sense to follow your interests. Find a career that interests and stimulates you. Do what you enjoy. Maybe that is scaling a business, maybe it’s repairing and fixing stuff, or maybe it’s something completely different. What’s your stress tolerance? The ideal way to approach any large endeavor, like growing a business, is to put in the effort without getting attached to the results. Be OK with things failing. Never get too attached to a positive outcome. Play the game to win, but don’t lose your head when things don’t go your way. I’ve met some business owners who have this laid-back approach. Somehow, they have enough motivation to methodically show up to work every day, but can maintain a “this isn’t life and death” attitude. They have a dozen balls in the air and sleep soundly at night. Personally, that’s not so easy for me. If I have the drive to win, that’s because I really want it, and setbacks or having too many balls in the air destroys my sleep quality. This is probably one of the most important things to consider. Suppose you can maintain the right attitude and avoid getting overly stressed but still have enough motivation to push through the challenges. In that case, you can likely have all of the upsides of scaling your business without the age-accelerating stresses. Do it for the money or follow your passion? There is often a conflict between obtaining money and doing what you enjoy. Sometimes, these two things align, which is amazing. Someone may love the process and challenge of building businesses and, as a result, naturally grow wealth without feeling like they are working or sacrificing. They get to do work they enjoy and make lots of money. But more often, the two don’t align, making things more complicated. Someone may love woodworking and have a great small business building custom furniture for people. However, their desire for more money may eventually trap them in an office managing their business and other people instead of working with their hands. We all need a certain amount of money to live our lives in a way we enjoy, and sometimes that requires sacrifices. But, before you decide to go after the money, I think it’s good to answer the following question: “If you didn’t need the money, how would you spend your time?” Conclusion Running a solo handyman business is an excellent option if you love working with your hands and want a flexible schedule with relatively low stress. Scaling a handyman business is a great option if you want more money and a bigger challenge and don’t mind a much larger commitment and more office work. Either way, systemizing and optimizing your business in such a way that would allow you to hire employees profitably is always a good idea. So what do you think? Is staying solo or hiring employees the better option for you? I’d love to hear your thoughts in the comments. The post Stay Solo or Hire Employees? Here’s How to Decide appeared first on Handyman Startup.

In this podcast episode, Rick McFadden, a handyman business owner, shares his expertise on hiring and managing employees. They discuss the systems needed before hiring, finding good employees, mindset shifts, keeping employees motivated, getting rid of poor fits, and getting more online reviews.

Bryan Clayton, founder and CEO of GreenPal, shares insights on growing a $10M landscaping business and the importance of motivation, profitable services, and leveraging technology. He also discusses the high-risk, high-reward nature of snow plowing and the potential for profit in emergency restoration work. The chapter concludes with an exploration of GreenPal as an end-to-end solution for managing lawn care businesses efficiently.

After ten years of estimating handyman jobs, I’ve learned a few tricks. And in this article, I will share everything you need to know to estimate jobs quickly and accurately. Whether you are looking for helpful estimating tips that will make you more money or just a free template you can use for your first estimate, I’ve got you covered. Let’s get started. Contents: Why estimating is so important How to estimate handyman jobs How to create and send a handyman estimate What to include in a handyman estimate Do you always need an estimate? Free handyman estimate template Five tips for more profitable estimates Listen to the podcast version of this article, which includes extra content and tips. Listen right here or on your favorite podcast app! HS039 – Estimating Handyman Jobs – Proven Tips for Boosting Income Why estimating handyman jobs is so important. The decision about how much to charge is where your profits are made or lost. If you underestimate a project, you lose money and waste time. Overestimating is preferable, but can lead to losing customers. When you compare how much time you spend estimating a project to how much time you spend performing the labor, estimating takes up a relatively small amount of your time. But, your decision in these short minutes (or even seconds) will impact your profitability for the entire job. A small mistake can cost you hundreds and sometimes thousands of dollars. So it’s essential to give this process the respect and attention it deserves. How to estimate handyman jobs (step-by-step) You can use several methods to estimate a home improvement or repair. One example is seen with painters or flooring installers, who often create estimates based on a project’s square footage or yardage. Another example is seen with companies that charge flat rates for projects. A lawn care company may charge $35 per week for a mow-and-blow, or an electrician may charge $250 to wall mount a TV. However, as a handyman, it rarely makes sense to copy these estimating strategies. Instead, it’s usually best to stick with good old T&M (time and materials), especially when first starting. T&M is when you simply estimate how long a project will take you, multiply that by your rates, and then add on the material costs. Basing your estimates on time and materials is the best way to ensure you make a profit and avoid undercharging, especially when estimating your first few jobs. If you ask pro handymen on online forums about how they charge, most experienced pros will say that charging by the hour is a terrible idea and you can make more money with a flat rate or quoting each job. But those pros have been in business for years and have estimated hundreds of projects. Most have forgotten what it’s like to be a beginner, so don’t listen to them. There’s nothing wrong with charging based on time. Most of the pros I consult with make more money using T&M to esimate. Put simply, unless you specialize or have loads of experience, stick with T&M. As you gain more experience, you can utilize other methods. Here’s how to estimate handyman jobs based on time and materials, step-by-step. Step #1 – Assess the project The first step is to thoroughly understand what the project entails. You’ll want to learn things like: What exactly needs to be done? What materials will you need? Is the project area easy to access? Is there anything that could go wrong or be more challenging once you get into the project? Is the customer going to be difficult to deal with? Assessing the project may require a visit to the customer’s home. If you’ve never done a given project before, or if you’re just starting your handyman business, then seeing the project in person is essential to creating an accurate estimate. However, once you gain experience, you may feel comfortable estimating based on pictures sent by the customer or asking the customer some questions. This is how I quote every job now, and I never give in-person free quotes because they eat into my profits. Step #2 – Calculate the cost of labor Once you have a clear picture of what needs to be done, the next step is to figure out how much you will charge for the labor portion of the project. Pro Tip Understanding how much you must charge per hour (or per day) to generate a profit is essential before submitting your first estimate to a customer. Read this article to learn how to do that. Assuming you know how much you need to charge for your time, here’s how to calculate the labor portion of your estimate: Break the project down into steps and write down each step. Visualize yourself completing each step and write down a time estimate for each step. Add up the time (include time for shopping, setup, and cleanup). Multiply the total time by your rates to get your labor. Then DOUBLE it. Why double it? Because of the little quirk in human psychology known as the Planning Fallacy, we all tend to underestimate how long a project will take (usually by about half), even if we have done a similar project. Things always seem more straightforward in your mind. But the reality of doing a project is always more complex. So, I advise any new handyman to take your estimate of how long a project will take, then DOUBLE IT, and base your estimate on that amount of time. Yes, it may be uncomfortable or extreme, but it’s better than underestimating a project and losing money. Pro Tip It’s better to overestimate than to underestimate. If you overestimate, you risk losing the job to a lower bidder, which isn’t fun. But if you underestimate, you are guaranteed to waste time and make little to no money. Unless your main goal is to get some jobs under your belt, you’re better off spending your time on marketing than doing jobs that aren’t profitable. Step #3 – Calculate the cost of materials Here, you’ll determine how much you will charge for the labor portion of the estimate. This process is similar to calculating the labor and goes like this: Visualize yourself completing each project step (don’t forget setup and cleanup). Make a list of materials you will need as you imagine doing the project. Take that list of materials and write down the cost of each item. You may have to do some shopping online to figure out the cost. Total up the materials and then apply a markup. The amount you will charge for materials will be the total cost plus whatever markup you apply. To learn more about the appropriate markup for materials, consider investing in my pricing course for pros. Step #4 – Add it up! Now that you have the labor and materials, simply add these together to create your estimate. It’s important to note that most of your profits as a pro handyman will come from your labor. As a self-employed handyman, your profits should be built into your rates, so there is no need to apply a markup to the labor portion of your estimate. However, you may calculate your profits slightly differently if you run a company with employees. For example, you may calculate the total cost of materials and labor, then apply a markup of 25% to the entire job. But, as a self-employed handyman, it’s usually best to simply calculate your profits into your rates, as I demonstrate here. How to create and send a handyman estimate There are several ways to provide estimates to potential customers, and there is no correct answer for every situation. Sometimes you may give a verbal estimate over the phone. Other times, you may send your quote via text. And in some cases, you may write up a formal estimate, email it to the customer, and have them sign it (several apps make this process seamless). Which option you choose depends on who the estimate is sent to, your relationship with that person, and what the job entails. Recently, a new customer called me to hang two TVs on the wall. I’ve hung hundreds of TVs, so I gave her a verbal quote on the phone. She agreed to the price and scheduled the job immediately. When one of my repeat customers had a drywall repair, he texted me. I had him send me some pictures from there, and we continued our conversation via text. I even sent my estimate via text. Here it is… The customer accepted my quote a hired me. Other times (usually when working for a new customer), I’ll use an app on my phone to quickly create a formal estimate and email it. I never require anyone to sign a contract or estimate because my average job size is so small. The point is that you don’t have to overthink your estimate for handyman jobs. A verbal estimate usually suffices since most jobs are just a few hundred bucks. A more formal, signed estimate is probably necessary when tackling a bigger project like a kitchen remodel. Of course, it’s nice to have the estimate in writing, but if you are dealing with someone who will stiff you, they will stiff you whether it’s in writing or not. Three ways to create a written estimate: Use a smartphone app (BEST) – This is the easiest and fastest method. Writing an estimate this way takes seconds, and you can usually send the estimate right from the app. I recently wrote an in-depth article on handyman software where you can find my recommendation for which apps to use. Use Excel – This is the old-school way, but it still works. If you are just trying to send one or two estimates without downloading an app, this is a good way. Word processor – Microsoft Word or Apple Pages can also work. Any word processor can work. Again, overthinking this isn’t going to land you more jobs. What to include in an estimate What you include in your estimate is far more important than how you create or deliver it. Whether you text your estimates or create fancy written estimates and hand-deliver them with a box of chocolates, the key components are always the same. Essential components of a handyman estimate: Description of work – You want to be ultra clear on what the estimate covers and, often more importantly, what it does NOT cover. Sometimes, all you need is one line of text to describe the work, like “wall mount two TVs.” In other cases, you may need to explain the project in depth. The estimated price – This can be in one lump sum, or you can itemize everything. Important disclaimers – Some projects can start small and become much more extensive. For example, if you are going to replace some damaged siding, you never know what you will find behind that siding. The estimate is your chance to manage the customer’s expectations so they aren’t met with additional charges they didn’t see coming. If you think there could be an issue, let the customer know in the estimate. Additional “nice-to-have” components of a handyman estimate Benefits of hiring you – If a potential customer is getting multiple estimates, finding a way to differentiate yourself is helpful. Otherwise, all the customer has to compare is the price. My favorite way to use the project description to imply some benefits. Let’s say I was building a new gate. I may say something like “Construct gate with diagonal support to prevent sagging” and “install reliable latching mechanism.” Even if other pros will build the gate the same way, the customer is assured that the gate I build won’t sag and will latch reliably. There are a million ways to do this, and it can be done in writing on the estimate or verbally when you speak with the customer. Your availability – I don’t include this on the estimate itself, but with my message when I deliver it. Since handyman jobs are usually small, customers don’t want to go back and forth a hundred times just to get it scheduled. They want clear, concise communication. That’s why I always include my next available times whenever I submit an estimate. This serves two purposes. It reduces back and forth and gives the customer a sense of urgency to get back to me before my schedule fills up. Components of a written estimate Your company information (name, address, phone #, email) Customer information (name & address) Date estimate was created Project description Estimated cost (can be itemized or one lump sum) Important disclaimers and exclusions The expiration date of the estimate Payment terms Acceptable payment methods Should you require a customer signature on your estimate? You can have the customer sign and approve the estimate before you start if necessary. But as I mentioned, most handyman jobs are small (around $200-$1,000), so formal contracts are rarely worth the time and formality. As long as you communicate clearly with the customer before, during, and after the project, you will run into very few problems with customers questioning your bill at the end. And from my experience, 99% of customers will pay without hassle. I’ve only had a few customers not pay me the entire time I’ve been in business, and I doubt having a signed contract would have changed anything. If you’re dealing with a customer you don’t trust, you may be better off turning down the job. You’ll probably avoid more than one headache by doing so. Do customers always need an estimate? No, in many cases, as you build trust with clients, they will no longer ask how much a project will cost. Instead, they would rather just skip the whole estimating process and have you get to work. Estimates are most important when doing more extensive projects or dealing with new customers, commercial customers, or customers who are challenging to deal with. Free handyman estimate template As mentioned above, some great apps make creating and sending handyman estimates easy. These are the way to go if you are serious about growing your business. However, if you just want a template to use now, click the link below and download a free handyman estimate template. (You may need to right-click to download). Handyman Estimating Template (Microsoft Excel) Handyman Estimating Template (Microsoft Word) Handyman Estimating Template (macOS Pages) Handyman Estimating Template (macOS Numbers) Five handymen estimating tips for higher profits Now that you know how to estimate a handyman job, here are some tips to help you boost your profits and conversions. Tip #1 – Understand your numbers The most critical step in creating estimates is understanding how much you need to charge for your time to make a profit and run a sustainable business. You don’t want to have just a general idea. You want to have an exact number. When most handyman business owners finally dig into the math, they realize they need to charge more than they thought they needed. That’s because hidden expenses add up, and what you make as an employee is nowhere near what you need to charge as a business. Tip #2 – It’s better to overbid than to underbid When you underestimate how long a project will take, and the customer hires you, you are guaranteed to lose money, waste time, and experience frustration. But, when you overestimate, you only increase your odds (sometimes only slightly) of losing the job to your competition. In many cases, when you overestimate, you’ll still get hired, which means you either make more money, spend a little more time doing an outstanding job, or cut the customer a discount when the project is done. If you lose a job because you were too expensive, it’s far better than getting a job for being the lowest bidder and then ending up working your ass off just to avoid losing money. Good marketing eliminates the pain of losing a job to overbidding, so invest your time there. Tip #3 – Be firm with your price, but try to save the customer money I like to view my pricing as if some authority determined it, and I can’t change it. I let the profitability gods (math) set my pricing and never transgress. I never negotiate on my pricing for handyman jobs. But, I try to save customers money in any way I can. For example, one of my customers hired me to replace some roof tiles a few months ago. He was a smart and handy guy. He just doesn’t like getting on the roof. So, I told him he could save a couple of hundred bucks by shopping for the replacement tiles himself since this is easy but time-intensive. He was happy to do the shopping, and I was happy to avoid it. However, I wouldn’t recommend the same to every customer. Some customers want to save time and don’t want to deal with shopping. I try to read the situation and only make these recommendations for price-sensitive customers. This helps build trust and gives the customer perspective when interpreting my prices. I’m not out to price gouge people, but I’m not out to give my time away, either. Tip #4 – When in doubt, double your estimate If you’re quoting a project that you’ve never done before, or you just don’t have much experience quoting a particular type of project, you will have a natural tendency to underbid (which can cost you a lot). This is normal, and everyone does it. So, once you’ve thoughtfully created an estimate of how long it will take you, double that time. Seriously, double it. At a very minimum, add an extra 50%. This may seem extreme, but this tip alone can save you hundreds of dollars on your next job. Tip #5 – Give options (pricing tiers) In some cases, giving different pricing options for a project can be helpful. For example, customers may call you because their gate isn’t latching. After looking at the gate, you may see they would benefit from a completely new one. In this instance, you could give them three different quotes: A quote for fixing their existing latch (cheapest option) A quote for replacing the existing latch with a better one (middle option) A quote for building an entirely new gate that doesn’t sag (most expensive option) Providing the customer with options is helpful because it places them in a position of power. Even though there is a good argument that more options lead to lower satisfaction in life and fixing gates, people like to have options. Conclusion Estimating handyman jobs is an important skill to learn as a handyman because it has a tremendous impact on your profits. There is a steep learning curve, and you are bound to underbid at least a few jobs, but by having a system to follow and learning the right perspective, you can significantly increase your income. I’ve shared some powerful tips in this article. Still, if you are serious about growing a profitable handyman business, I highly recommend you invest in my course on handyman pricing – $100K Handyman Pricing. You’ll learn secrets, strategies, and mindsets you can’t find anywhere else that will boost your confidence and your profits. The post Handyman Estimates: The Ultimate Guide (+ Free Template) appeared first on Handyman Startup.

As I’ve said before, there are several ways to start a profitable handyman business. And while starting your business from scratch is typically the most profitable route, I’d be doing my readers and listeners a disservice if I didn’t explore the idea of handyman franchises. That’s why when a representative of Ace Handyman Services asked if I’d like to interview Colette Bell – VP of franchise development for Ace Handyman Services, I jumped at the opportunity. I immediately saw it as a chance to dig deeper into the costs, benefits, and profitability of becoming a franchisee. Then, when the interview finally came, I was not disappointed. Colette was very generous with her knowledge and time. She was also transparent, even sharing details about how much Ace Handyman Services franchise owners make in profit. And beyond the franchise information, Colette shares some best practices and strategies for any handyman business. So, even if you have zero interest in investing in a handyman franchise, I know you’ll find this interview insightful and motivating. I highly recommend giving it a listen. HS038 – Colette Bell of Ace Handyman Services: The Costs, Benefits, and Expected Profit of Investing in a Handyman Franchise About Colette Bell Colette is the VP of Franchise Development for Ace Handyman Services, a nationwide handyman franchise.  Colette has over 20 years of experience in the handyman business. For 18 years, she was the chairman and co-owner of Handyman Matters (a large handyman franchise) and grew that business from scratch with her husband, Andy Bell. In 2019, Handyman Matters was acquired by Ace Hardware and rebranded as Ace Handyman Services, which (at the time of recording this interview) has 378 territories in 46 states.  Colette is a wealth of knowledge about the handyman business, and I’m excited to have her on the show. What are the benefits of an Ace Handyman Services franchise? One of my focuses for this interview was to better understand what a handyman franchise can bring to the table. Here is a summary of what Colette mentioned in the interview (which you can listen to toward the top of this page). Consolidation of Power – Having 378 franchises can bring some negotiation firepower because of the volume. She gave the example of getting better prices on software, but I can see how this could be helpful in many other areas. Consolidation of Knowledge – Colette explained that one of the franchise’s job is to continue improving systems and roll them out to the territories. While doing this, they benefit from learning from all of their franchisees. So instead of only learning from one business’s mistakes and successes, they can learn from hundreds of businesses to help them make better decisions. Keeping operating expenses low while expanding – Colette explained that one of the challenges of scaling a handyman business is that operating costs can balloon as well, but with Ace Handyman Services systems and software, these costs are limited – allowing a business to scale with lower costs. Emotional Support – Running a business can be lonely. With Ace Handyman Services, you have access to a dedicated business coach you can reach out to for counseling and advice. There are also regional groups where business owners get to meet with each other and discuss problems and opportunities. A Large women owners group – This can be a big plus for women looking to get into the home repair industry. A large group of Vets – Colette mentioned that many veterans get involved with the franchise. How much does an ace handyman services owner make? One of the main things I was interested in during the interview was how much an Ace Handyman Services owner can expect to make. And as you may expect, the answer to that is more complicated than just giving a number. The region someone operates in, how many territories a franchisee owns, how long a territory has been operating, and the effectiveness of the franchise owner are just some of the factors that can influence the bottom line. But Collete was able to provide some numbers. She mentioned that the top 20 franchisees average roughly $852,000 in revenue and operate at about 22% profit. Once you remove about 6% of that profit for the franchise royalty fee and an additional 2% for the national marketing fund, a franchisee can expect profit to be 14% of total revenue. So, if we multiply $852,000 by 14%, you get $119,280. So, the top twenty Ace Handyman Franchise owners generate an average profit of about $120K. To put that into further context, some of these franchisees also collect a paycheck so that profit is in addition to what they pay themselves. Also, some of these franchisees have multiple territories, further complicating things. While this still doesn’t fully answer how much you can expect to make, it provides insight into the upside of becoming a handyman franchisee. Ultimately, further research and analysis will be necessary to estimate profit for the territory you live in. How much does it cost to buy an Ace Handyman Services franchise territory? The benefits that come with investing in a franchise are not free. Colette (VP of Franchising Development) mentioned that the initial cost to start an Ace Handyman Franchise is usually around $128,000 to $204,000, which covers the franchise fees, startup costs, and the first three months’ operating costs. That includes the franchise fee, photo shoots, website setup, in-person training, rent for a physical office (required), necessary computer and office equipment, business licensing, and other costs. However, there are more costs. There are also franchise royalties (where the franchise takes a percentage of the total revenue), the national marketing fund (which adds to the franchises marketing budget), a $499 monthly fee for software and website management, and of course, the monthly fixed and variable costs that come with running any local business. Here’s a quick summary of franchise costs: $70K franchise fee – Covers first ten-year contract for a single territory. After ten years, it’s $5,500 for ten more years. 6% of revenue for franchise royalties. 2% of revenue for the national marketing fund – to invest in marketing for the franchise to further brand recognition. $499 per month for website and software These costs do not include the other costs of starting a handyman business. Also, depending on the time you read this article, this may not be a comprehensive list of costs. What requirements must you meet to become an Ace Handyman Services franchisee? The financial requirements are that you have at least $75,000 liquid and your net worth is at least $250,000. But those are just financial requirements. To be a good fit for the company, Colette mentioned that candidates are what she calls “servant leaders,” meaning they operate from a position of service to their employees and the craftsman they hire. She mentioned that if it’s just about the money for someone, then they should “go somewhere else.” And that makes sense because, from my analysis, if you wanted to start a handyman business and optimize for profit, you’d be better off starting from scratch and doing it without the burden of franchise fees and royalties. However, if you prioritize the benefits of the franchise over pure profit, then I don’t see anything wrong with taking that hit on profit. How can you learn more about starting an Ace Handyman Franchise? Colette mentioned that for those interested, the best place to start is to head over to AceHandymanFranchising.com – where you can learn more, contact the franchise, and see if your territory is available. While there are 378 territories taken, Colette mentioned there are nearly 1,800 territories in the United States. So there are plenty still available. What do you think of handyman franchises? I’m curious to hear your thoughts on Ace Handyman Services and other franchises to help provide further insight to people considering this investment. The post Colette Bell of Ace Handyman Services: The Costs and Benefits of Investing in a Handyman Franchise appeared first on Handyman Startup.

Unexpected challenges and setbacks are unavoidable when growing a business, and if not managed properly, can really fuck up your progress. One day you might feel on top of the world, then BAM, a customer gives you a bad review, you lose a job you quoted, and you find out that your sales are dropping. Or, maybe you are just starting your business, and your enthusiasm gets squashed by realizing there is a LOT more competition than expected. There are endless ways that setbacks can hit, but when these inevitable bad days happen, they can crush your spirit and leave you anxious and stressed. They’ll have you questioning yourself and your abilities and, in many cases, lead you to give up. Overcoming setbacks is one of the two things that make growing a business hard (the other one is showing up to do the work consistently). And, if you can learn how to overcome setbacks without letting them destroy your confidence, motivation, and momentum, then you are infinitely more likely to succeed. The Reality of Setbacks Setbacks are unavoidable in business and life. Period. I don’t care if your name is Elon Musk or Michael Jordan, you’re going to go through some shit at some point, and it will challenge your resolve. No amount of worrying, planning, list-making, mentoring, researching, practicing, investing, or experience will allow you to escape this reality of being alive. Life is fun and interesting, and sometimes it’s really hard. My purpose in highlighting this is not to be pessimistic. In fact, I find it liberating and motivating. It reminds me that I’m not the only one who hasn’t figured it all out. I’m not the only one who loses sleep when my income drops for a couple of months, when a marketing strategy that I relied on stops working, or when new competition enters the arena making my life harder. Embracing this reality is one of the things that helps me get through the struggle. It also allows me to turn my head toward dealing with the setbacks when they happen instead of beating myself up, bathing in anxiety, and spiraling downward. How to Overcome Setbacks and Unexpected Challenges Once you accept that they are inevitable, the obvious next step is to learn how to work through them. I’m 99% certain that there is no way to completely avoid the negative emotions and painful experiences of setbacks. They will always suck to a certain degree. However, I’m equally sure that how you process negative emotions that arise will determine the duration, intensity, and impact they have on you and your business. I’ve found that failing to process my struggles in a somewhat structured way will prolong the suffering, cause me to lose sleep, and lead to poor decisions that hurt myself or others. In the past, I’ve let setbacks destroy my peace of mind and productivity, but over time, I’ve learned strategies for overcoming them so I can move on within minutes or hours instead of days or weeks. So, in this podcast episode, I wanted to share strategies I’ve found effective for dealing with these mental struggles. I hope you find them helpful. Mastering the mental game of business is essential to your success. Listen to the full podcast to learn eight strategies for overcoming setbacks faster and while taking less damage. HS037 – Overcoming The Setbacks of Growing a Business Books Mentioned in This Podcast The Wisdom of Insecurity by Alan Watts Zen and the Art of Motorcycle Maintenance by Robert Persig (I recommend the audiobook) The Obstacle is the Way by Ryan Holiday Cleaning Up Your Mental Mess by Caroline Leaf (useful journaling practice) The Art of Living by Thich Nhat Hanh The post Overcoming Setbacks – Mastering the Mental Game of Business appeared first on Handyman Startup.

Few business mistakes are worse (or more common) than consistently undercharging. You’ve done all of the work to get the customer, they hired you, and then you did more work to complete the project for them. The only problem is that you don’t make enough money to justify the time and effort if you undercharge. You waste your time, and you don’t get that time back. Undercharging makes investing in growing your business, buying better tools, improving your marketing, and having free time to relax nearly impossible. It destroys all the fun and forces you to grind. Every. Single. Day. Even worse, undercharging can cause you to build a clientele based on having low prices, making it even more difficult to raise your rates in the future. The truth is that pricing your services is hard, and there are many pitfalls that are easy to fall victim to. So, in this podcast, I discuss nine pricing pitfalls that are guaranteed to kill your profits and enjoyment in this business IF you fall victim to them. I hope that by sharing these mistakes, I can help you avoid making some of them and, in turn, make more money. HS036 – 9 Pricing Pitfalls That Destroy Profits and Fun Pricing mistakes are common, and you’ll never avoid them completely, but you can avoid many of them most of the time and, in doing so, make more money and have more fun. Like, a LOT more money. Listen to the full podcast to learn what they are. The content in this podcast is taken from my handyman pricing course: “$100K Handyman Pricing.” If you find this helpful and want to learn how to price your services to maximize profits and customer satisfaction, I recommend checking that out. If you like this podcast, you’ll enjoy my article on how I lost over $52,000 by undercharging. The post Pricing Pitfalls – Nine Ways Handymen Leave Money on the Table appeared first on Handyman Startup.

Handymen are well known for their “big or small, we do it all” approach, offering a wide range of services. Many view us as “jacks of all trades, and masters of none.” And this generalist approach has its benefits. You need fewer customers to keep your schedule full, every day is different, and you get to build close relationships with clients. There’s also built-in job security when you can handle a wide variety of projects. However, from a purely business standpoint, it can be significantly more profitable and enjoyable to specialize and limit the services you provide. So in the rest of this article, I will explore the benefits of specializing and compare that to the typical MO of a pro handyman. You’ll find this concept motivating and intriguing, even if you enjoy being a generalist. Listen to the podcast version of this article, which includes extra content. Listen right here or on your favorite podcast app! HS035 – Make Your Business More Profitable By Specializing What does it mean to specialize? In most cases, it means you focus on one specific trade, such as plumbing, electrical, or HVAC. Most licensed contractors are specialists. However, you can specialize even further. For example, an electrician can specialize in home theater installation. A plumber can specialize in unclogging drains or emergency services. A carpenter can specialize in custom door installation or building decks. A handyman can specialize in power washing. With the internet now connecting you to virtually endless people, it’s possible to specialize in a very specific niche and still keep your schedule full. For example, I once met a guy who specialized in trampoline assembly and was making a killing. Here’s a picture of the work truck of a guy who specializes in picking up dog poop. The options are endless when it comes to services you can specialize in. Do you have to limit yourself to that one service? No, not necessarily. Even if you offer a wide range of handyman services, it’s beneficial to choose one or two services to get good at and then promote those to customers. The benefits of specializing Benefit #1 – Expert Positioning When you specialize, you automatically position yourself as an expert, which is helpful for marketing. Being seen as an expert builds trust and helps you stand out. This is especially true when trying to attract wealthy clients. They often have refined tastes and aren’t looking for some weekend handyman who can “probably figure it out.” They want somebody that’s like, “This is what I do!” They want an expert. For example, one of the services I specialize in is TV wall mount installation, and it’s one of the primary services I promote to gain new clients. Simply promoting this service has positioned me as an expert. The funny thing is that customers who hire me to hang a TV will often ask me if I do anything else. I love when I hear this because I know that my marketing worked. Although I am a handyman and do all kinds of services, they see me as a TV wall mounting expert. Most handy people can wall-mount TVs, but customers hire me more often because I’ve chosen to promote it as my specialty. Benefit #2 – Higher Income Potential By specializing, you can make more money in less time. This is true for a few reasons. Customers are willing to pay more for an expert. That’s because hiring an expert implies more certainty that the job will be done well. It’s a form of insurance. Additionally, customers often assume the job will be done better when a specialist is at hand. You become more proficient, allowing you to complete a project in less time and often with higher quality. This is especially important in a competitive area because it will enable you to make more money without raising your prices. You can package your services in more profitable ways. For example, instead of charging based on time, you can charge flat rates. You can also create packages, upsells, and even recurring services. There are all kinds of creative ways to package your services, and specializing gives you the time and focus to develop and test different offerings. You can avoid free quotes, which is an insidious practice that eats into your profits. Of course, you can do all of these things without specializing in one service, but it’s more complex. You only have so much time and mental energy, after all. The simplicity of specializing allows you to get more creative. Benefit #3 – Higher Conversions Whether you are marketing with craigslist, your website, or Thumbtack, you will have higher conversions if you specialize. That means a higher percentage of people that see your ads will contact you. By promoting your specialty instead of general “handyman services,” you stand out from other handymen. Example: Let’s say a customer is looking for a fence repair on Craigslist. They come across a few posts with the following titles: “Local Handyman – 30 Years of Experience” “$10/hr Handyman Services” “Professional Handyman” “Fence Repair Service” Each ad offers fence repair, but which one would you click on? You’re most likely going to click on the most relevant ad, which is the one that says fence repair. This scenario plays out in countless ways on all marketing platforms. The more relevant your business is to the exact service someone needs when searching for a pro, the more likely you will grab their attention and turn them into a lead. Sometimes people are looking for a general handyman and a specialist ad will be less likely to convert, but I’ve found that most people are searching for the exact service they need when looking for a pro to hire. Benefit #4 – Easier to Hire Help As a professional handyman, you tackle various problems that require creative solutions and a broad spectrum of knowledge. Additionally, you need to understand your limits and which jobs to avoid. Hiring somebody who’s equally skilled and trustworthy is challenging. Typically, you will need to pay more for this level of skill. Becoming an all-around handyman takes years of experience or a certain type of person. But, if your business only offers one or two services, it’s much easier to train somebody with less experience. If you specialize in something basic, you can often train a complete newbie in a few days. For example, if you specialize in gutter installation, you could train an unskilled laborer in a matter of weeks, freeing your time to focus on other things. Benefit #5 – Simplified Pricing Quoting jobs can be a serious time-suck. As a new handyman, you’ll find yourself running all over town quoting jobs because you’re unsure which jobs you can handle or what each job entails. Additionally, pricing as a handyman is one of the hardest things to get right. You often have to perform a repair several times and make a few mistakes before you figure out how to price that project appropriately. And as a handyman, you handle many projects, which usually means lots of undercharging. Projects almost always take longer than you expect. Specializing eliminates much of this complexity. There’s still a learning curve, but it’s much shorter because there is less to learn in most cases. Specializing also makes it easier to quote jobs over the phone or email, eliminating the need to travel and quote in person. If you specialize, you will likely develop fixed pricing and easily quote over the phone without visiting customers’ houses. Simplified pricing also makes it easier to hire somebody to answer the phone for you, once again freeing you up to do more impactful things in your business, like marketing or creating systems. #6 – Streamlined Operations One of the downsides of being a handyman is that you need so many tools and supplies, and it’s a constant effort to manage them. Before heading to a job, you will likely need to load or unload certain tools from your vehicle. Unless you have a dedicated trailer, you probably can’t carry all your tools simultaneously. When you only offer one or two services, you can usually carry everything you need on you at all times. You never have to stop and think about which tools you need before leaving your house for a job. You can also have more specialized tools (usually overkill for a generalist) that can save you time and make jobs easier. And you can carry common supplies allowing you to make fewer trips to the store. This streamlines your business, making nearly every aspect of it more efficient. And when you are getting paid for your time, efficiency is a big deal. The Disadvantages of Specializing At this point, you’re probably thinking that specializing is a no-brainer. And it is. But just like everything, it does have some downsides. The first one is that specializing requires more marketing effort to keep your schedule full, and that’s because fewer customers will turn into repeat clients. Compare that with a traditional handyman business, where just a few good customers can keep your schedule mostly full. Your marketing will be more effective if you specialize, but you need more customers consistently. For someone starting their business who is new to marketing, this can make things more challenging. This isn’t necessarily a bad thing, though, especially if you’ve implemented what I teach in Handyman Marketing Machine and already have more customers than you need. Another downside of specializing is that you may find yourself getting bored. One of my favorite things about the handyman business is that I’m solving new challenges every day. One day I might be building a new gate. The next, I’m hanging pictures, fixing doors, and installing a stripper pole. The variety you get with a handyman business is not only stimulating for the mind, but it helps avoid repetitive stress injuries. I couldn’t imagine installing flooring every day, for example. And lastly, when you specialize, you are less likely to build close relationships with customers since many will only hire you once. If you like to get close to your clients and remember their dogs’ names, then specializing may not be for you. The best of both worlds Luckily, there is a third option. You can still offer a wide variety of handyman services while having a specialty or two. Those specialties can help you stand out from the competition with your marketing, and then you can promote your handyman services once you get in the door. You can also start offering every service you can, then find what you like most and dig deep into that. Then focus your marketing on that service, which will allow you to increase your profitability while still relying on the security of your general handyman services. You can start as a generalist (usually easier) and slowly develop a specialty or two (generally more profitable). Conclusion Choosing a service or two to specialize in is an excellent way to increase your profits, differentiate yourself from competitors, simplify your business, and make it easier to hire employees. Even if you continue to offer a wide range of handyman services, you can still experience many benefits, such as boosted profits and differentiation. The key to making it work is to invest your time and effort into marketing your specialty. As I’ve said before, good marketing makes everything in your business easier and more profitable. Of course, you’ll need to learn some new skills and buy some specialized tools as well, but that will inevitably happen when people consistently hire you for the same project. The post Specialist vs. Generalist: Six Reasons it Pays to Specialize appeared first on Handyman Startup.