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Top Challenges for Handyman Businesses and their Solutions

Updated: Oct 26, 2023


Roadblocks in Handyman Business Journey

As per the Globenewswire, the handyman industry is proliferating at a CAGR of 17.2% in the forecast period 2022-2032. The convenience and cost-effectiveness that handyman marketplaces provide to customers not only help them save time but also carry out their daily schedules with minimum interruptions. Due to the high demand for handyman services, several new entrants have stepped into the industry with full-fledged handyman marketplaces.



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While taking inspiration from renowned online handyman businesses like Angi, Thumbtack, TaskRabbit and HomeAdvisor, the new players were able to launch their marketplaces, they remained negligent of certain inevitable challenges that were heading their way on their business journey.


To help such new entrants in the industry overcome those challenges, we have created the following list along with their most practical solutions.


Business Model Overview


Before beginning with the challenges, it is important to have a brief overview of the handyman marketplace business model to understand why those challenges arrive in the first place, and the need to resolve them in time.


  • Skilled handymen sign up on the marketplace and create their profile

  • Customers browse those profiles and select a handyman as per their requirements

  • Customers confirm their booking by paying the handyman fees along with the admin commission on the platform directly

  • The handyman’s fees is stored in an online eWallet

  • The handyman visits the customer for task delivery and marks completion on the platform

  • After reaching a certain threshold limit set by the admin, the handyman can withdraw his earnings from his eWallet


Business Model Variations:


  1. Some handyman businesses have bidding placement on their marketplace. In the bidding placement model, customers upload task requirements (better known as gigs) and handyman professionals place their bids. The winning bidder gets hired.

  2. Some handyman businesses follow a hybrid model inclusive of both direct hiring and bidding placement.


Common Roadblocks that New Businesses Face in the Handyman Industry


Now that we understand the business model, it will become easier for us to understand the emergence and magnitude of following problems and the need to stay ready for them.


1. The Chicken and Egg Problem:

As prevalent in all marketplace businesses, the handyman business is no exception to the chicken and egg problem. The problem simply states the correlation between customers and handymen on a marketplace. To attract customers, the marketplace needs handymen and to attract handymen, the marketplace needs customers. This creates a dilemma in selecting the primary targets for the marketing strategies and may create a growth barrier or plateau.


Solution:

Solving the chicken and egg problem requires a well-balanced approach so that you neither overlook vendors (handymen in our case) nor customers. However, in the initial stages or pre-launch campaigns, it is imperative to attract vendors. The most viable solution to attract vendors is to incentivize them via creating certain value propositions. These can be:


  • No commission charges for the first year

  • Free featured listing spaces

  • Free premium subscription membership

  • Lower withdrawal threshold limit for first few handyman


For more information on attracting vendors to your handyman marketplace, refer to this article.


 

Launch a Handyman Marketplace with

Both Bidding and Direct Hiring



 

2. Finding Skilled Handymen:

We know attracting and onboarding handymen is a problem. However, to provide quality services on your marketplace and satisfy customers, it is equally essential to find skilled handymen that are capable of doing quality work with minimum external assistance. Moreover, as customers will also be coordinating with handymen, you need handyman professionals that have great communication skills as well.


Solution:

Pre-screening interviews have been the most reliable way to refine the talent pool for decades. However, while conducting individual-level interviews at a startup level is possible, it becomes way more cost and time inclusive at a later stage. Thus, a proper solution to this challenge is to only allow certified professionals to sign up on your marketplace. You can do this by integrating a background verification system on your marketplace platform. Additionally, you can mandate handymen to upload their work portfolios on the platform to win the trust of customers.



3. Task Management:

You have on-boarded talented individuals and orders are kicking in. Your handyman business has started to grow. With time, it will get difficult to keep track of all orders and tasks and as the marketplace admin, it is your duty to ensure that all tasks are getting completed on time or else a proper solution is being provided to customers. Poor task management will get even more complex with time, which makes it even more important to resolve this challenge at the earliest.


Solution:

Task management includes too many variables to keep track of. This includes tasks booked, name of the handyman, pending tasks, completed tasks, delayed tasks, etc. To streamline task management, you need to leverage automation. Opt for a platform that can show you all booked tasks at a single dashboard and perform necessary actions, such as message handyman, customer and assign tasks.


4. Creating Repeat Customers:

The handyman business is mostly a B2C business where the majority of clients require help with tasks like plumbing, gardening, carpentering, electricity, baking, cleaning, etc. However, most of these tasks are a one-time job, which raises a big sustainability problem for the handyman business. In addition, customers don’t mind switching their serviceman if they can get the same job done at a better cost. This makes it especially difficult to find repeat customers, which hinders the profitability of the business.


Solution:

Use various discounts and promotion strategies to retain existing customers and obtain a long-term value. You can launch a loyalty program where customers earn points on every order that can be redeemed as discounts in future. Similarly, you can offer promo codes and other types of discounts that customers can avail at checkout. Lastly, make sure that customers are always satisfied with the quality of work done in order to make them repeat customers.


5. Seasonal Fluctuations:

Another major challenge that handyman businesses face is seasonal fluctuations. This means that certain tasks are only required during particular times of a year. For example, gardening and mowing are usually required during spring, roof repairs are common during rainy seasons and snow removal services are required during winters. Similarly, party decorations are more common in festive seasons such as Christmas, New Year, Valentines, etc. During these seasonal demands, the profits can fluctuate and growth becomes unpredictable.


Solution:

Diversify your handyman offering by listing various task categories and services on your marketplace. By doing this, you can make sure that seasonal downfalls do not adversely affect all services provided by your business and a healthy balance is maintained. Moreover, you can again put more efforts towards promotions and marketing strategies to create constant demand throughout the year. If the demand falls unprecedentedly, then paid marketing on Google and social media can help you bring the quick results.


 

Overcome all Business Challenges

with a Single Solution



 

Conclusion


Just like launch and growth, challenges are also a part of the business journey. With timely identification and proper planning, they can be dealt with easily. In the handyman industry, business resiliency is required to help entrepreneurs in clearing the path for growth and walking towards it. They will also need the right set of tools at their disposal to help them simplify operations and implement solutions to several challenges. These tools can be found in Yo!Gigs on-demand handyman marketplace solution that is available at a one-time cost. For more information about Yo!Gigs, you can contact our team or browse our demos.



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