Like many small business owners, saving money might be an important part of running your handyman business. Pinching pennies helps stretch your budget, freeing up cash that can be reinvested into your company. It also helps you increase your profits, making each job you do more cost-effective and valuable.
Here are eight tips to save on your handyman business to help boost your budget and increase handyman profits.
1. Know your inventory
Wasting money on unneeded tools and materials is a surefire way to eat into your profits. Knowing what inventory you have on hand can help stop this from happening. Keep a list of your tools, materials, and other essential supplies and update it regularly. Before you head to the store or place an order, check if you really need those items or if you already have the supplies you need.
Pro tip: Inventory apps can help you keep tabs on your tools and materials from anywhere, even the home improvement store.
2. Batch trips to the home improvement store
Busy handymen will often find themselves at the home improvement store. If you are scheduling jobs more than a week in advance, you might want to batch these trips to save time and money. A single trip once a week means less time spent traveling to and from the store. It can also help you save money on gas and puts fewer miles on your work vehicle.
Pro tip: Encourage apprentices or other contractors you work with to also batch their supply runs, especially if you are reimbursing them for gas or mileage.
3. Negotiate with suppliers
Many handypeople work directly with material suppliers for larger, more complex projects. Negotiating with them is another way to increase handyman profits for your small business. Suppliers often offer discounts for supplies bought in bulk. Even if they’re unable to lower the price per unit, you may be able to negotiate free shipping or delivery on your orders.
Pro tip: Some suppliers (particularly other small businesses) may be open to trading your handyman services for discounted materials.
4. Take care of your tools
Frequently repairing or replacing tools can quickly become expensive. Proper care and maintenance could help your equipment remain in working order for years. User manuals often include cleaning and storage instructions for power tools, and other handyman tips and tricks for proper tool care can be found online.
Pro tip: Cleaning and properly storing your tools at the end of each day helps make care a habit and makes it easier to find tools when you need them.
5. Rent or borrow high-priced tools
Owning a quality set of tools is important for your handyman business, but you probably don’t need every tool available. It may be more economical to rent or borrow specialty tools that you won’t often use. Certain power tools, such as floor sanders or post-hole diggers, are useful but expensive to buy. It might not make sense to own a specific tool or piece of equipment unless you’re doing a lot of jobs that require it.
Pro tip: Consider renting out any big-ticket tools or equipment you do own to other handymen or contractors in your area.
6. Use tech to your advantage
Time is money when you’re running a small business. You might be a pro at home improvement but less talented with balancing the books. Using apps and software to help you manage the admin side of the business could save you countless hours of work and help things run more smoothly. Tools are available to help handypeople write estimates, create invoices, track payments, file business taxes, and take care of other parts of their business.
Pro tip: Apps and online software can also help you build a professional website, create ads, and schedule posts on social media.
7. Compare insurance policies before renewal
Many people in the field use handyman business insurance (policies such as General Liability and tool coverage) to protect their small businesses. However, they might renew their policies each year without reviewing them simply because they’re too busy. This could mean missing out on savings or coverage better suited to your business needs.
Pro tip: At renewal time, use BizInsure to compare your handyman business insurance. It only takes a few minutes to compare policies from top-rated insurers. You might even switch and save in as little as 10 minutes.
8. Take safety seriously
Injuries and property damage are concerns for anyone working in the home improvement and maintenance industry. Needing to compensate a customer after accidentally causing them injury or damaging their belongings is an expense most small businesses want to avoid. Putting safety measures in place could help you prevent costly claims and lawsuits against your handyman business.
Pro tip: Fewer insurance claims can also help keep your insurance premiums low, as insurers may charge you more for a policy if you have a history of claims.
These handyman tips and tricks could help you save money and increase your business profits. Freeing up cash flow can be valuable for a small business, helping you invest back in your business through new equipment, advertising, management tools, or other tools to help your handyman business grow and thrive!
Switch and save on your handyman business insurance with BizInsure. Compare policies from top-rated insurers and get instant coverage in minutes—start now!
As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this guide is general only and should not be relied upon as advice.
The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.
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