The global consuming patterns of modern day consumers have changed. Today, consumers prefer convenience and are ready to spend for the same. This is where the handyman services industry leverages and captures the market share. Due to the modern occupied schedules and long working hours, what in the 20th century used to be a DIY-job, has been overtaken by the handyman businesses. This even includes small jobs such as assembling a table, fixing a tap, mowing lawns, decorating patios and even walking dogs.
The statistics show the proliferation of the handyman services industry across the world. To begin with, the global handyman industry is expected to grow almost 5 times in the upcoming 9 years. Its compound annual growth rate is an astonishing 17.2%1 in the projection period 2022-2032. The North American region is the biggest market accounting 36.5% of all market share, followed by Europe with 24.80% share.
Fortunately, there is immense scope in the handyman industry for new entrants at both global and regional levels. Interested entrepreneurs can have a look at our following insights to know more about the industry including growth factors, top players and prerequisites to build your own handyman services marketplace.
Several factors are accountable for the discernible growth rate of the handyman services industry.
After conducting a market analysis, we found that the majority of handyman service marketplaces offer the following services on their platform. You can also do your own research and create a list of most demand services to list on your online handyman business:
The handyman services industry is dominated by several players. These include both incumbent and new entrants. For reference, take a look at the following graphic:
|Marketplaces||Launch Year||Estimated Revenue|
The handyman industry vastly operates online with the help of Peer-to-Peer marketplace platforms. The platform is required to streamline and simplify the hiring experience for customers, who can easily book handyman services from the comfort of their four walls. In addition, as everything takes place digitally, there’s no paperwork involved..
Note: The following operational models are only for reference purposes. The actual model can vary as per independent handyman business’ requirements and on the business owner’s sole discretion.
Both the operational models include three user types, which are:
There can also be a third model, which can be a combination of both these models, i.e, that allows customers to directly hire service providers and also supports the job posting & bidding system.
In terms of revenue, service commission remains the primary source of profit for a handyman business. However, there can also be some other methods. We have mentioned all common revenue generation streams below:
There are several methods to create your own handyman services marketplace. While the conventional ones emphasize on custom development, the modern day world does not require marketplaces to be built from scratch. Instead, entrepreneurs can rely on readymade software solutions that do the job without coding. The only exception to this scenario is when you require your marketplace to be developed on a very specific technology or programming language, and cannot find any readymade software powered by it. In this case, the traditional bespoke development approach remains your only option.
Transitioning to the practical aspects of establishing your handyman services marketplace, this part of the article breaks down the marketplace strategy into three parts; identifying the feature set, technology and brand building.
Your handyman marketplace should have multi-vendor management features along with high scalability to simplify the overall experience for customers and service providers. These features can include:
As we said above, using a readymade software is a very efficient method to launch your handyman business. However, there are also several readymade software available in the market including both SaaS and perpetually licensed software, which makes it difficult to find the ideal software.
If you are looking for a solution that is highly cost effective in the long run, then you can opt for Yo!Gigs handyman software. Yo!Gigs is a self-hosted software that gives handyman businesses the freedom to host it on their own in-house servers or select a third party hosting service like Amazon AWS. In addition, Yo!Gigs comes with all essential features required to launch and manage a robust handyman marketplace. Below are some other reasons to select Yo!Gigs for launching your handyman services marketplace.
In order to successfully penetrate any market, it is essential to craft a brand identity that resonates with your intended audience and aligns seamlessly with the services you offer. The chosen brand name should be concise and easy to remember. Along with selecting your brand name, you also need to invest in a domain name. It is better for digital marketing purposes if you can match your domain name and brand name. Lastly, you will need to register all your trademarks including logo and other intellectual property. After everything is set, you can harness the built-in capabilities of your software platform to efficiently promote and oversee the operations of your handyman business.
According to the statistics, there is significant potential in launching a handyman business. Those entrepreneurs who are able to capitalize on the potential in time leverage the first mover advantage. They would be able to establish a strong presence in their target audience. For properly targeting the market, your overall business strategy should focus on increasing customers and onboarding service providers as well. For onboarding purposes, you can check out this guide that sheds light on some methods that you can use to onboard your first few service providers.
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