How to Write a Handyman Business Plan
The handyman industry has been growing steadily over the last several years for specific reasons. First, disposable income in the US has continually increased for homeowners. This increase has allowed homeowners to better afford home repairs and upgrades. Who better to perform these activities, besides the owner, then handyman services.
A second reason for the increase in handyman services is the propensity of people to sell their homes with upgrades. The real estate market often time demands homes to be in tip-top shape to command top dollar. Because of this need, a handyman is often the go-to people for making needed repairs on a home to ensure top dollar for sales.
Because of these reasons and more, Quality Business Plan and our business plan writer have put together helpful hints and tricks to embrace will while writing a lawn care business plan.
Executive Summary for a Handyman Business Plan.
The executive summary section of a handyman business plan should summarize both the internal as well as external aspects of the company’s business. For a handyman service, special attention should be paid to services provided by the organization. For some handyman services, they specialize in doing just a few specific services well. If this is the case, make sure to highlight the fact succinctly in the service section of the executive summary. Other organizations tend to offer a multitude of services. Again, if your handyman service is a generalist as compared to a specialist, make sure to document these aspects accordingly.
Company Information and Location for a Handyman Business.
In the company information section of the business plan, most handyman services do an excellent job of describing their services in a bullet point fashion and structure. However, for some reason, the location of the handyman service is often not covered in detail. In selecting a handyman service location, the choice is oftentimes either a home office or a location close to home. Further, because of this convenient selection, the location or geographic coverage of services is often predicated on the office location. Because of this strategic decision-making process, an explanation should be provided in the business plan regarding the thoughts and ideas about how the handyman comany may be able to exploits opportunities such as this.
Industry research for a Handyman Business Plan
When conducting handyman research for a business plan, most handyman services love to examine the local competition. From this can local competition examination, business owners often differentiate how their services may differ from the competitors. However, in my most humble of opinion, a better strategy may be utilized when doing competitor research. When doing this type of research, start with examining national trends for the home repair and handyman service industry. Once national trends are identified, then compare these trends with local competition to see if they have embraced these changes. It’s not you, then not only do you have good industry research but you also have a competitive advantage that might be implemented in the organization. If they have, then now you’ve identified one of the few true competitors for your organization and then an in-depth analysis is necessitated.
Owner and Management Section of a Handyman Business Plan
As for the owner and management section of the business plan, always start with summarizing your resume for this section. By following this practice, business owners are able to show why they have the experience to start and run a handyman business. Once the structure is complete, then make sure to discuss positions held within the handyman business. Common positions would include handyman assistant, construction experience, and schooling.
Funding Request for a Handyman Business Plan
They handyman funding request section of a business plan could cover a wide array of needs. For example, some handyman services start simply with a drill, car/truck, and a well-designed website. Other handyman services are a little bit more involved. In these types of services, funding requests may include purchasing new trucks, high-end hand tools, various power tools, and a significant amount of working capital to cover startup costs and operational needs.
Regardless of your funny request needs, make sure to start this category with a specific dollar amount needed to start your organization. Once this is identified, then expand upon the dollar amount needed by breaking up the funds into different categories identifying specific needs for your startup or expansion. Finally, always total each category into a total sum section. This total sum section should be identical to the dollar amount requested upfront. In other words, it sure that when you’re requesting money, have a specific dollar amount in mind and justify it accordingly.
Financials for a Handyman Business Plan.
When creating a financial statement or financials for handyman service, make sure to start with daily or weekly sales. In the daily or weekly sales section, line items may include customer visits, services performed, or weekly/monthly prepaid services. Regardless of your financial billing structure, whether it be daily, or weekly, make sure to take these numbers and expand them to cover a full month of services in the second step. Once this is complete, then focus on your fixed costs.
Monthly fixed costs may include a lease, truck payments, gas, and wage payments. Once all monthly costs are identified, total them up and subtract the monthly cost from the monthly revenues. This number will be your net profits for the month. From this foundation, then expanding the monthly profits to annual profits is as simple as updating your spreadsheet to cover a 12-month timeframe as compared to one month.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author