Handyman Maintenance Business Plan Example

Handyman Stan is a start-up offering handyman services in Duluth, Minnesota. By establishing a reputation as a qualified, affordable, and reliable provider, Handyman Stan aims to quickly gain market share and build a loyal customer base.

Handyman Stan’s target market consists of homeowners and property managers. The homeowner segment has 24,090 potential customers with an annual growth rate of 5%. The property manager segment has 1,243 potential customers and a 4% annual growth rate.

As a handyman, Stan offers a wide range of home repair services. These services typically involve minor tasks, but if a problem becomes major, it is best to consult a contractor. However, if Stan is unable to perform a repair, he provides the value-added feature of pre-screening a reliable contractor. This builds trust with the customer and increases the likelihood of them reaching out to Stan for future minor issues. Stan’s fix-it services include plumbing, electrical work, fences, windows, decks/patios, painting, weatherproofing, and floors.

Handyman Stan differentiates himself from competitors by offering low prices and a low minimum charge. He charges a reasonable $30 per hour to encourage customers to hire him for tasks they might otherwise attempt themselves or neglect until they become more problematic. Additionally, Stan only has a one-hour minimum, while other competitors often require a two to three-hour minimum. This creates an incentive for customers to seek Stan’s assistance earlier than they would with comparable service providers.

1.1 Mission

HandyMan Stan’s mission is to provide knowledgeable, convenient, and reasonably-priced handyman service to the Duluth, Minnesota community. HandyMan Stan will provide every customer with an honest day’s work and will fix anything that is not done right.

1.2 Keys to Success

• Treat every customer as the most important customer.
• Evaluate the needed skills for a job and pass it onto a contractor if it is too difficult.
• Work hard, guarantee all work, and promote 100% customer satisfaction.

1.3 Objectives

• Develop the business into full-time employment within 12 months.
• Generate steady revenue per year by the end of year two.
• Create over 20% of business from repeat customers.

Company Summary

HandyMan Stan has been formed as a Minnesota Limited Liability Company (LLC) by Stan Roberts. Stan will be the sole employee and owner of the company. The company will incur start-up costs, primarily tools, detailed in the Start-up Summary section.

2.1 Start-up Summary

HandyMan Stan will incur start-up costs associated with the beginning of the business. The following table details the start-up costs and indicates the needed capital for initial operations. Stan will be using his personal tools for jobs but will need to purchase additional equipment/tools including:

• Assorted plumbing tools: slip wrenches, snakes, teflon tape, and assorted caps, nuts, and bolts.
• Electrical tools: electrical gauge meters, wire cutters, various wires and wire caps, and a soldering iron.
• Painting materials: paint brushes, paint roller, pneumatic paint sprayer, air compressor, sandpaper, spackle tools, and masking tape.
• Pressure washer.
• Various general tools.
• Assorted power tools: drill, saw, sander, Dremel.
• Assorted nails, bolts, screws, and fixtures.
• Laptop with portable printer for mobile invoice printing and submission.
• Mobile phone.

Start-up Requirements:

– Legal: $500

– Accountant: $500

– Brochures: $250

– Insurance: $250

– Total Start-up Expenses: $1,500

Start-up Assets:

– Cash Required: $20,500

– Other Current Assets: $0

– Long-term Assets: $8,000

– Total Assets: $28,500

Total Requirements: $30,000

Start-up Funding:

– Start-up Expenses to Fund: $1,500

– Start-up Assets to Fund: $28,500

– Total Funding Required: $30,000

Assets:

– Non-cash Assets from Start-up: $8,000

– Cash Requirements from Start-up: $20,500

– Additional Cash Raised: $0

– Cash Balance on Starting Date: $20,500

– Total Assets: $28,500

Liabilities and Capital:

– Liabilities:

– Current Borrowing: $0

– Long-term Liabilities: $30,000

– Accounts Payable (Outstanding Bills): $0

– Other Current Liabilities (interest-free): $0

– Total Liabilities: $30,000

– Capital:

– Planned Investment:

– Investor 1: $0

– Other: $0

– Additional Investment Requirement: $0

– Total Planned Investment: $0

– Loss at Start-up (Start-up Expenses): ($1,500)

– Total Capital: ($1,500)

Total Capital and Liabilities: $28,500

Total Funding: $30,000

Company Ownership:

Stan Roberts is the founder and owner of HandyMan Stan. The company will remain a one-man operation for the foreseeable future.

Services:

HandyMan Stan offers home repair and maintenance for homeowners and property managers in the community of Duluth. All services start at $30 per hour plus parts. HandyMan Stan provides at least one hour of work at the customer’s property. For larger jobs requiring a contractor, HandyMan Stan will pre-screen a service provider. Repairing items is prioritized over replacement, and HandyMan Stan offers a one-year guarantee for all work.

Market Analysis Summary:

HandyMan Stan’s target customer segments are homeowners and property managers. These customers often have small repairs that are too small for a contractor but too complicated to do themselves. The handyman industry competes with the contractor industry, with handymen typically handling small items and contractors taking on more extensive projects. Word of mouth referrals are crucial, and HandyMan Stan aims to provide exemplary service to generate new and repeat business.

Market Segmentation:

The market is segmented into two customer groups:

– Homeowners:

– The value of their homes generally ranges between $150,000 and $650,000.

– 47% attempt small repairs themselves but often realize they lack the necessary skills. The remaining 53% call a professional right away.

– 62% have owned their homes for more than two years.

– 73% wait until several small problems accumulate before calling a handyman, avoiding a large upfront charge for a single repair.

– Property Managers:

– Manage between three and 20 units.

– Typically don’t have their own in-house repairman to reduce overhead expenses.

– The range of monthly rental costs for their units is $350 to $675.

Market Analysis

Customer Segments:

Home owners

Property managers

Home owners prefer to hire someone for repairs instead of tackling them themselves.

Property managers with less than 20 units are more likely to hire someone for maintenance.

Location:

Majority of business will come from residents and rental properties within the Duluth city limits.

Service Business Analysis

Handymen are generalists who can handle a wide range of repairs.

Contractors are more specialized and suited for technical or extensive repairs.

Competition and Buying Patterns

Competitors:

– Jack Of All Trades: employs six handymen, lacks personal customer experience

– Fix-It-Up: specializes in plumbing and electrical problems, mixed customer reviews

– Duluth Contractors: full-service general contractor, does commercial and residential work

– Red Rock Contractors: small contractor, focuses on residential jobs

Consumers base their buying patterns on recommendations from friends or neighbors.

Word of mouth referrals will be important for HandyMan Stan.

Strategy and Implementation Summary

HandyMan Stan’s strategy is to offer reasonable prices and a one hour minimum for greater customer convenience.

Marketing Strategy

Advertisement placement in organizational newsletters to develop awareness and trust among a community.

Sales Strategy

Convert current customers to use HandyMan Stan for a wide variety of repairs by showcasing professionalism and offering solutions to problem areas.

Sales Forecast

Conservative sales forecast based on activities performed by HandyMan Stan.

Needed parts billed additionally, consumables included in hourly fee.

Note:

This revised text eliminates redundant phrases and streamlines the information while maintaining clarity and impact.

5.4 Milestones

HandyMan Stan has identified several specific milestones that will function as goals for the organization. The milestones will provide a target for achievement and a mechanism for tracking progress. The following table will provide a timeframe for each milestone.

Web Plan Summary

HandyMan Stan’s website will serve as a basic catalog of offered services. In addition to a listing of Stan’s different skills, testimonials and referrals will be included on the site. This is effective at swaying unsure people who have never heard about HandyMan Stan. More inquiries will be directed to Stan’s phone number.

6.1 Website Marketing Strategy

The marketing strategy will employ two mechanisms:

• Search engine submission: This is useful for people unfamiliar with HandyMan Stan and for those looking for a local handyman.
• URL on all printed material: The site’s Web address will be listed on every printed piece of material.

6.2 Development Requirements

The site will be developed by a friend under a barter agreement. Because the value of the development services will be less than $600, it will not need to be listed as a payout of 1099 income for tax purposes.

Management Summary

Stan Roberts is the founder and sole employee of HandyMan Stan. Stan began as a “fixer” out of high school when he secured a job with a general contractor. Without formal contractor/construction experience, he assisted in a wide range of capacities.

Over ten years, Stan became proficient in a wide range of activities, becoming a journeyman plumber and electrician as well as developing a strong repertoire of general fixing skills.

Stan enrolled in business courses at the local community college at night, spending two years developing his business skills. Once he completed the course, he felt more comfortable with starting a new business.

7.1 Personnel Plan

HandyMan Stan is a one-man business. Stan will perform all of the handyman activities and be responsible for accounting issues using Quicken. With a laptop computer and portable printer, Stan will be able to create, print, submit, and collect invoices on site immediately following the completed project.

Financial Plan

The following sections outline important financial information.

8.1 Important Assumptions

The following table details important financial assumptions.

8.2 Projected Profit and Loss

The following table and charts indicate the projected profit and loss.

Pro Forma Profit and Loss

8.3 Break-even Analysis

The Break-even Analysis shows the required monthly revenue to reach the break-even point.

Break-even Analysis:

Monthly Revenue Break-even: $2,860

Assumptions:

– Average Percent Variable Cost: 10%

– Estimated Monthly Fixed Cost: $2,580

8.4 Projected Cash Flow:

The table and chart below show the projected cash flow.

Pro Forma Cash Flow

8.5 Projected Balance Sheet

The table below presents the projected balance sheet for the given period.

8.6 Business Ratios

The following table presents business ratios specific to HandyMan Stan as well as industry ratios for the Personal and Household Goods Repair and Maintenance industry (NAICS code 811490).

Pro Forma Cash Flow

Cash Received

Cash from Operations

Cash Sales

Subtotal Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received

New Current Borrowing

New Other Liabilities (interest-free)

New Long-term Liabilities

Sales of Other Current Assets

Sales of Long-term Assets

New Investment Received

Subtotal Cash Received

Expenditures

Expenditures from Operations

Cash Spending

Bill Payments

Subtotal Spent on Operations

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current Borrowing

Other Liabilities Principal Repayment

Long-term Liabilities Principal Repayment

Purchase Other Current Assets

Purchase Long-term Assets

Dividends

Subtotal Cash Spent

Net Cash Flow

Cash Balance

Pro Forma Balance Sheet

Assets

Starting Balances

Current Assets

Cash

Other Current Assets

Total Current Assets

Long-term Assets

Long-term Assets

Accumulated Depreciation

Total Long-term Assets

Total Assets

Liabilities and Capital

Current Liabilities

Accounts Payable

Current Borrowing

Other Current Liabilities

Subtotal Current Liabilities

Long-term Liabilities

Total Liabilities

Paid-in Capital

Retained Earnings

Earnings

Total Capital

Total Liabilities and Capital

Net Worth

Business Plan Outline

• Executive Summary
• Company Summary
• Services
• Market Analysis Summary
• Strategy and Implementation Summary
• Web Plan Summary
• Management Summary
• Financial Plan
• Appendix

Andrew Brooks

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