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Handyman Business

A repair-and-install service for people who already have practical skills, which in California starts with small jobs under $1,000 and can grow into a licensed contracting business.

Figures last verified October 30, 2026

$1,043 – $25,187*

Startup cost

Coming soon

Time to first revenue

Moderate

Difficulty

High

Physical demand

Yes

Can run solo

Year-round

Seasonality

* Startup cost excludes budget lines we haven't sourced yet.

Risk Meter

Eight factors from this guide's own data, each scored 1 (lowest risk) to 5 (highest). Every score shows why.

Overall risk

Elevated

3 out of 5

Average of 6 of 8 factors, weighted equally. 1 is the lowest risk and 5 the highest. It measures risk, not how much you'll earn, and it isn't a prediction. How we score risk.

  • Money at risk

    Not scored

    At least $25,187

    3 startup lines aren't sourced yet, so the real total is higher. We'll score this once the budget is complete.

  • Time to earn it back

    Not scored

    Not scored yet

    Some startup or operating cost lines aren't sourced yet, so a payback time would look shorter than it really is.

  • Franchise closure rate

    2 / 5

    5.3% a year

    Average of 2 brands: Mr. Handyman 3.5% (2025); Ace Handyman Services 7.0% (2025). Our calculation from each FDD's Item 20.

  • Loan default rate

    5 / 5

    11.9% vs 7.2% for all industries

    764 of 6,426 SBA 7(a) loans to Residential Remodelers (NAICS 236118), approved FY2010–2019, were charged off. Our count from the SBA's loan-level data; 486 loans were still open, so the final rate may be slightly higher.

  • Demand trend

    2 / 5

    Growing faster

    Residential remodelers, which includes handyman services (NAICS 236118): employer establishments +17.8% (114,874 to 135,337) vs +5.1% for all industries, 2019–2023.

  • Licensing and rules

    3 / 5

    Moderate

    Without a license you are limited to jobs under $1,000 with no permit and no employees on the job; above that you need a CSLB B license, which requires four years of experience and two exams (see Licensing).

  • Customer concentration

    1 / 5

    Many customers

    Many households with one-off and repeat jobs; no single customer carries the business.

  • Physical demand

    5 / 5

    High

    From the guide's at-a-glance rating; see the risks section for details.

Franchise vs. Independent

Same type of business. Two very different paths.

5-year totals assume $55,536–$147,888 in yearly revenue (our forecast presets at full volume), the same sourced operating costs (insurance, software, fees) on both paths, and both the lean and professional independent plans. Franchise investment figures come from each brand's disclosure (FDD Item 7) and already include the franchise fee. * Excludes independent startup lines we haven't sourced yet. Adjust the assumptions.

What franchisees report taking in

From each brand's own disclosure (FDD Item 19), copied exactly. These are gross sales before royalties and costs, not profit, and not a promise of what you will earn.

  • Mr. Handyman

    The 2026 FDD reports 2025 gross sales for 165 franchisees grouped by how many units they own, plus gross sales per job.

    • Average 2025 gross sales, 57 single-unit franchisees$773,574 a year
    • Median 2025 gross sales, same 57 single-unit franchisees$580,422 a year
    • Lowest 2025 gross sales among the 57 single-unit franchisees$208,200 a year
    • Average 2025 gross sales per job, 165 franchisees$742
  • Ace Handyman Services

    The 2026 FDD reports 2025 revenue, costs and owner discretionary income for 77 single-territory operators and 77 multi-territory groups, in quarters by revenue.

    • Average 2025 total revenue, top quarter of single-territory operators (19)$775,337 a year
    • Average 2025 total revenue, second quarter of single-territory operators (19)$533,854 a year
    • Average 2025 total revenue, third quarter of single-territory operators (19)$347,542 a year
    • Average 2025 total revenue, bottom quarter of single-territory operators (20)$250,699 a year
  • HandyPro

    We couldn't check Item 19: no FDD for this brand was on file in Minnesota CARDS when we looked, so the figures above come from Entrepreneur's franchise directory.

What a franchise does give you

Franchises cost more, but the fees buy real things. Weigh them honestly.

  • Part of Neighborly, a large group of home-service brands
  • Classroom and on-the-job training before opening
  • Local marketing resources and help finding customers
  • Access to a group purchasing network (ProTradeNet)
  • 15% off the franchise fee for qualifying veterans
  • Backed by the Ace Hardware name, which many homeowners already know
  • About 25 to 34 hours of classroom training plus on-the-job training at headquarters
  • A business model built around managing a team of craftsmen rather than doing every job yourself
  • $7,000 off the first-unit franchise fee for qualifying veterans
  • A much lower franchise fee than the larger handyman brands
  • Classroom and on-the-job training
  • Shared scheduling and business systems
  • 25% off the franchise fee for qualifying veterans

Going independent means

  • You keep 100% of what you earn after costs — no royalties.
  • You build your own brand, systems, and customer base.
  • You need more self-reliance, especially in the first year.

Startup Budget

One-time costs to launch, from cited sources. Totals are added up from the lines below.

Handyman startup budget, lean start
ItemLowMidHigh
Hand tools, basic set$200$300$400
Power tools: drill, circular saw, jigsaw or oscillating tool (budget)$225$363$500
Ladders: 6-foot step ladder plus an extension ladder (budget)$100$150$200
Tool bags and boxes$50$75$100
Vehicle: the car or truck you already own$0$0$0
Website, do-it-yourself$0$100$200
Marketing launch: business cards and flyers$30$65$100
California LLC filing (Articles of Organization plus first Statement of Information)$90$90$90
City or county business licenseData coming soon
Scheduling, quoting and invoicing software, first year$348$348$348
Total (sourced lines only)$1,043$1,491$1,938

Share of mid estimate

  • Hand tools, basic set20%
  • Power tools: drill, circular saw, jigsaw or oscillating tool (budget)24%
  • Ladders: 6-foot step ladder plus an extension ladder (budget)10%
  • Tool bags and boxes5%
  • Vehicle: the car or truck you already own0%
  • Website, do-it-yourself7%
  • Marketing launch: business cards and flyers4%
  • California LLC filing (Articles of Organization plus first Statement of Information)6%
  • Scheduling, quoting and invoicing software, first year23%

Budget spreadsheet

Every line with its sources, included in the complete kit.

Mid is the halfway point between low and high where a source gives only a range.

The total leaves out 1 line we haven't sourced yet. We don't guess.

24-Month Forecast

An example to plan with. Every assumption is yours to change.

This is an estimate, not a prediction

Ticket is the low end of Thumbtack's simple-task range ($178). Jobs per week, ramp-up, cost share and seasonality are assumptions, not operator data. Change any assumption to match your market. Your results will differ.

Break-even
Month 2
Year-1 revenue
$41,151
Year-2 profit
$42,358
Show monthly table
MonthJobsRevenueCostsProfitCumulative cash
1 (Mar)8.7$1,543$635$907-$584
2 (Apr)11.9$2,121$722$1,399$815
3 (May)14.3$2,545$786$1,760$2,575
4 (Jun)15.2$2,700$809$1,891$4,466
5 (Jul)17.3$3,085$867$2,219$6,684
6 (Aug)19.5$3,471$925$2,546$9,230
7 (Sep)21.7$3,857$983$2,874$12,105
8 (Oct)23.8$4,242$1,040$3,202$15,307
9 (Nov)26.0$4,628$1,098$3,530$18,836
10 (Dec)26.0$4,628$1,098$3,530$22,366
11 (Jan)23.4$4,165$1,029$3,136$25,503
12 (Feb)23.4$4,165$1,029$3,136$28,639
13 (Mar)26.0$4,628$1,098$3,530$32,169
14 (Apr)28.6$5,091$1,168$3,923$36,092
15 (May)28.6$5,091$1,168$3,923$40,015
16 (Jun)26.0$4,628$1,098$3,530$43,545
17 (Jul)26.0$4,628$1,098$3,530$47,075
18 (Aug)26.0$4,628$1,098$3,530$50,605
19 (Sep)26.0$4,628$1,098$3,530$54,134
20 (Oct)26.0$4,628$1,098$3,530$57,664
21 (Nov)26.0$4,628$1,098$3,530$61,194
22 (Dec)26.0$4,628$1,098$3,530$64,724
23 (Jan)23.4$4,165$1,029$3,136$67,860
24 (Feb)23.4$4,165$1,029$3,136$70,997

Assumptions

Chemicals, fuel, and other per-job costs.

Starts at the insurance we've sourced, divided by 12.

Starts at the lean plan's mid estimate (sourced lines only).

Seasonality by month

1 = an average month. 1.3 = 30% busier.

Pricing

What customers typically pay, from large-sample cost data.

What customers pay

What similar businesses take in

Context only, not a promise of what you will earn. Government figures cover every business in the industry; guide figures are rougher. Tap the source icon to see which is which. These are revenue, before costs.

Key Risks and How to Manage Them

  • The $1,000 limit in California

    Without a CSLB license, every job (labor plus materials) must stay under $1,000, need no building permit, and be done without employees. Splitting a bigger job into smaller invoices is not allowed. Unlicensed contracting can bring fines and legal action.

    How to manage it: Stick to small repairs and installs, write every quote with a clear total, turn down permit work, and start building toward a license if larger jobs keep coming your way.

  • Ladder falls

    Ladders are involved in about 1 in 5 worker fall injuries, and the CDC found fatal ladder-fall rates rise sharply with age. For a 55-year-old, a fall that a younger worker walks away from can end a career.

    How to manage it: Use a sturdy fiberglass ladder, keep three points of contact, refuse roof and second-story work, and set a personal height limit you never break.

  • Physical wear

    The work means kneeling, crawling under sinks, lifting doors and drywall, and long days on your feet. Knees, back and shoulders take the strain, and income stops when you can't work.

    How to manage it: Choose the job types you can do comfortably, schedule recovery days, use lifting aids, and consider disability insurance.

  • Damage and liability claims

    A leaking fitting or a badly hung shelf can damage a client's home, and you are responsible for the repair.

    How to manage it: Carry general liability insurance, take photos before and after each job, and decline work outside your skills.

  • Underpricing and scope creep

    Small jobs often grow once you're in the house, and new owners tend to underquote, especially for travel time and supply runs.

    How to manage it: Set a minimum charge, quote in writing, and price any extra work as a new job — keeping California's $1,000 cap in mind if you're unlicensed.

  • Earning trust against cheap competition

    Homeowners worry about letting strangers in, and many unlicensed and part-time handymen compete on price.

    How to manage it: Lean on reviews, a clean appearance, punctuality and clear communication.

Licensing by State

Requirements vary by state and local jurisdiction.

More states are coming.

A general guide only. Rules change and vary by city and county — confirm with your local government before you start.

The Playbook

A step-by-step guide from setup to growth.

  1. Phase 1

    Setup

    • List the jobs you can do well and safely, and the ones you'll turn down
    • Learn California's $1,000, no-permit, no-employee rule
    • Choose your business structure and get a city business license
    • Get general liability insurance
    • Set up quoting, scheduling and invoicing
  2. Phase 2

    Pricing

    Included in the complete kit

  3. Phase 3

    Launch

    Included in the complete kit

  4. Phase 4

    Marketing

    Included in the complete kit

  5. Phase 5

    Operations

    Included in the complete kit

  6. Phase 6

    Getting licensed

    Included in the complete kit

  7. Phase 7

    Growth

    Included in the complete kit

Suppliers and Tools

Vendors independent operators use.

No supplier pays to be listed. If we ever earn a referral fee from a link, it will say “Affiliate link” right next to it.

Scheduling and invoicing software

Quotes, scheduling, invoices and payments.

Work vans

Cargo vans for the professional plan.

The Kit Is Coming

Everything on this page is free. The downloadable kit (playbook, spreadsheets, templates) is in the works.

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Frequently Asked Questions

Is this a franchise?

No. The Open Franchise is not a franchise and does not sell franchises. You start and own your business yourself, with no franchise fee, royalties, or territory rules. We sell guides and kits; that's all.

Do I need a contractor license to be a handyman in California?

Not for small jobs. You can work without a CSLB license if each job totals under $1,000 for labor and materials, needs no building permit, and you have no employees, and your ads must say you're not licensed. For anything bigger, you need a license.

How long does it take to get a B license?

CSLB requires four years of journey-level experience in the trade within the last ten years, verified by people who know your work, plus passing the exam and filing a $25,000 bond.

Will I pay royalties or ongoing fees to you?

No. Kits are a one-time purchase. Everything you earn is yours.

Are these numbers guaranteed?

No. Every cost and price is an estimate from a cited source, shown as a range where possible, with the date we last checked it. Your costs and results will depend on your market and choices.

Figures last verified October 30, 2026. Every number links to its source. See all sources for this page.

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