A solid business plan could help boost your growth and success. Even the smallest of small businesses could benefit from having one, as it can help guide you through the ups and downs of running your own business.
What is a business plan?
A business plan is a document that describes all parts of your business. It includes details like the services you provide, your ideal customers, information about your competitors, and your strategies for running a profitable small business.
Business plans also contain your goals, such as your plans for growth or financial forecasts. A yearly budget might be included to help gauge your success in these areas.
A business plan is not something that you write once and forget about. It is a guide for your small business, and it should be revisited and revised as your circumstances change. A well-written business plan can help you make decisions, analyze results, and judge your success.
Why do handymen need a business plan?
If you’re like many handymen, you work on your own as a sole proprietor. Creating a business plan may seem unnecessary for such a small business. But a solid handyman business plan could be worth the time and effort it takes to write.
You might decide to invest in handyman service planning to:
- Grow your business – Research has shown that companies that write business plans grow 30% faster and are less likely to fail than those that do not.
- Secure funding – Many lenders and investors will ask for a business plan to help them decide whether to give you a loan or other funding.
- Reduce risk – Business plans can help you identify roadblocks. This could help you come up with ways to avoid or minimize risks to your business.
- Make smarter decisions – A business plan could help you understand how big decisions might impact your business finances and operations.
How to Write a Handyman Business Plan?
While all business plans are different, there are six areas that you will find in most. Here’s a step-by-step guide to help you get started on yours:
1. Executive Summary
The executive summary is a one- or two-page overview of your business and your plans for it. These are the highlights of your handyman business plan, so it may be easier to write it last.
2. Your Services
This section is about more than just the services you are providing. It is also about why people in your area need them—what problem are you solving? As a handyman, you may focus on how you help homeowners who lack the skills and time to repair and maintain their homes themselves.
As you describe your services, you should also talk about your competition. Who else is solving the same problem as you? How will your business do it better? Maybe you offer a specialty service that other handymen in your area do not, or you offer appointments outside of normal business hours.
3. Your Target Market
Here you will describe your ideal customers or target market. Be as specific as possible. Are you targeting residential or commercial properties? Homeowners or renters? How much do they make? What do they do for work? The more detail you can provide, the easier it should be to make a marketing plan and advertise to these people.
You should also provide any market research you have in this section. Explain how the market for handyman services is growing in your area and how you are able to take advantage of this growth.
4. Marketing & Sales
Once you understand who your ideal customer is, you can create a strategy to sell your handyman services to them. This section goes over how you plan to reach customers (your advertising and marketing plans), your pricing, and other steps you need to take to help your business succeed.
5. Company Organization
Many handymen operate as sole proprietors, but this is not always the case. You might adopt a partnership, LLC, or other business structure that suits your business. A lawyer or accountant can help explain your options and the pros and cons of different types of business structures.
If you are already up and running, you could also talk about your business history in this section. You might include short bios of key team members that highlight their background and expertise.
6. Financial Projections
This is often the most intimidating part of a business plan for many people. However, discussing your business financials may be easier than you realize, and you can always ask for professional accounting help if you need it.
The financial projections section of a business plan usually includes:
- Sales and revenue forecast – Monthly projections for the first 12 months and annual projections for the next three to five years.
- Profit and loss statement – An income statement that clearly shows if your business is making a profit or taking a loss.
- Cash flow statement – This keeps track of how much money you have in the bank at any given point.
- Balance sheet – The financial health of your business; a list of your assets, liabilities, and equity.
A Plan for Your Handyman Business
A handyman business plan could serve as a valuable guide for your company. Whether you’re just starting out or are an established tradesman, it’s never too late to write your own business plan. The time and effort you put into creating this document may be well worth your time and crucial to your future success.
Handyman insurance could help protect the business you are building. Learn more about insurance for handymen and compare quotes from top-rated insurers today!