How does a handyman business make money?

A listing usually shows one revenue number for a handyman firm, and that number hides several different kinds of work. Each kind behaves differently once the owner leaves, so a buyer is better off seeing them apart. The questions below help you split the total into its parts and read the records with that split in mind.

Hourly work and flat-rate jobs

Some jobs are billed by the hour and some are quoted as a flat job. Hourly work is easy to track but depends on how many hours get booked. Flat-rate work depends on how well the quotes were judged. Ask for a sample of completed jobs with the quote, the hours spent and the invoice, so you can see how closely they matched.

Call-out charges and materials

Many firms charge a minimum visit fee, and many pass materials through at cost or add a markup. Ask how materials are bought, who carries the cost until the customer pays, and whether supplier accounts are in the business’s name. A firm that marks up materials will show it in the gap between supplier bills and customer invoices.

One-off jobs and repeat work orders

A homeowner may call once. A landlord or property manager may send work orders every month. Repeat accounts make revenue more predictable, but only if the relationship belongs to the business. Ask which accounts are largest, how long each has lasted and who deals with them. Work often shifts with the seasons, so ask to see a full year, not a single busy stretch.