Are you tired of the daily grind and ready to be your boss? Starting a remote cleaning business could be your ticket to financial freedom and flexibility. The global cleaning services market is expected to reach a whopping $468.2 billion by 2027, making it a lucrative opportunity for entrepreneurs like you.
Imagine waking up every day, knowing that you’re building something for yourself and your family. With a remote cleaning business, you can create your schedule, choose your clients, and grow your company at your own pace. Plus, you’ll be providing a valuable service that people always need, no matter the state of the economy.
In this guide, you’ll learn how to start a remove-cleaning business. Topics include market research, competitive analysis, registering an EIN, obtaining business insurance, forming a legal business entity, marketing, and more.
1. Conduct Remote Cleaning Market Research
Before diving into the remote cleaning business, it’s crucial to understand the market landscape and identify potential opportunities. Market research offers insight into your target market, trends in the cleaning company market, and other details important to running your own cleaning business.
Some information you’ll learn through market research for your own remote cleaning business includes:
- The COVID-19 pandemic has further accelerated the demand for cleaning services, especially in the residential sector.
- As more people spend time at home, the need for a clean and sanitized living space has become a top priority.
- The remote cleaning business model offers a unique advantage in this market, as it allows for greater flexibility and scalability.
- By leveraging technology to manage operations, remote cleaning businesses can streamline processes, reduce overhead costs, and expand their reach beyond local markets.
- One of the key target markets for remote cleaning businesses is the residential sector, particularly busy professionals and families who value convenience and quality.
- As companies begin to reopen and welcome employees back to the workplace, the need for professional cleaning and disinfection services has increased.
- To succeed in the remote cleaning market, businesses must differentiate themselves through quality service, competitive pricing, and effective marketing strategies.
By conducting thorough market research, identifying target markets, and developing a strong value proposition, entrepreneurs can tap into this lucrative market and build a thriving remote cleaning business.
2. Analyze the Competition
Analyzing the competition is a critical step in starting a remote cleaning business. By understanding your competitors’ strengths, weaknesses, and strategies, you can identify opportunities to differentiate your business and gain a competitive edge.
For local remote cleaning businesses, visit their websites and social media profiles to gather information about their services, pricing, and target markets. You can also read customer reviews on platforms like Yelp, Google My Business, and Facebook to gain insights into their reputation and customer satisfaction levels.
When analyzing online competitors, pay close attention to their website design, user experience, and content. Evaluate their search engine optimization (SEO) strategies by searching for relevant keywords and noting their search engine rankings. Tools like SEMrush and Ahrefs can help you assess their online presence.
Consider the unique value propositions of your competitors. Do they offer eco-friendly cleaning products, flexible scheduling, or specialized services? By identifying gaps in the market and areas where competitors fall short, you can develop a competitive advantage for your remote cleaning business.
Focus on delivering high-quality services and exceptional customer experiences that justify your pricing. Stay up-to-date with industry trends and emerging competitors. Regularly monitor social media, industry publications, and online forums to stay informed about new players in the market and changes in consumer preferences.
3. Costs to Start a Remote Cleaning Business
Starting a fully remote cleaning business requires careful planning and budgeting to ensure success. While the initial startup costs may seem daunting, the remote nature of the business allows for some cost savings compared to traditional brick-and-mortar cleaning businesses.
Startup Costs
- Business Registration and Licenses: These costs can range from $50 to $500, depending on your state and local requirements.
- Insurance: General liability insurance for a small cleaning business typically costs between $500 and $1,500 annually.
- Website Development: Costs for website development can range from $500 for a basic template-based site to $5,000 or more for a custom-designed website.
- Marketing and Advertising: Initial marketing efforts may include creating business cards, flyers, and online ads. Allocate between $500 and $2,000 for your initial marketing budget.
- Cleaning Equipment and Supplies: Budget around $1,000 to $3,000 for items such as vacuum cleaners, mops, buckets, and cleaning products.
- Vehicle and Transportation: Consider the cost of purchasing or leasing a vehicle, which can range from $5,000 to $20,000, depending on your preferences and budget.
- Estimated Total Startup Costs: $7,550 to $32,000
Ongoing Costs
- Labor: As your business grows, you may need to hire additional cleaning staff. According to Payscale, the average hourly rate for a house cleaner in the United States is $12.19.
- Cleaning Supplies: Ongoing expenses for cleaning supplies can vary depending on the size and frequency of your jobs. Estimate between $200 and $500 per month for supplies.
- Vehicle Maintenance and Fuel: If you’re using a vehicle for on-site cleaning services, budget for ongoing maintenance, repairs, and fuel costs. These expenses can range from $200 to $500 per month.
- Marketing and Advertising: Allocate between $500 and $1,000 per month for ongoing marketing initiatives, such as social media advertising, email marketing, and search engine optimization (SEO).
- Business Insurance: Maintain your general liability insurance policy, which can cost between $500 and $1,500 annually.
- Technology and Software: Budget around $100 to $500 per month for these expenses.
- Business License and Permit Renewals: Renew your business licenses and permits as required, which can cost between $50 to $500 annually.
- Professional Development and Training: Budget around $500 to $1,000 annually for these expenses.
Starting a remote cleaning business requires an initial investment of approximately $7,550 to $32,000, with ongoing monthly costs ranging from $1,500 to $5,000 and annual expenses between $550 and $1,500.
4. Form a Legal Business Entity
When starting a remote house cleaning business, one of the most important decisions you’ll make is choosing the right legal business entity. The four main types of business entities are Sole Proprietorship, Partnership, Limited Liability Corporation (LLC), and Corporation.
Sole Proprietorship
A sole proprietorship is the simplest and most common form of business entity. It’s easy to set up and requires minimal paperwork. As a sole proprietor, you have complete control over your business decisions and keep all the profits. You’re also personally liable for all debts and legal issues, putting your assets at risk.
Partnership
A partnership involves two or more people who share ownership of the business. Partnerships can be structured as general partnerships, where all partners share equal responsibility and liability, or limited partnerships, where some partners have limited liability and involvement in the business.
Limited Liability Corporation (LLC)
An LLC is a popular choice for small businesses, including remote cleaning businesses. It offers personal liability protection, meaning your assets are separate from your business assets and liabilities. LLCs also provide flexibility in terms of ownership structure and tax treatment.
Corporation
A corporation is a separate legal entity from its owners, offering the highest level of personal liability protection. Corporations can raise capital by issuing stock and have a more formal management structure with a board of directors. Corporations also face double taxation, as the business profits are taxed at a corporate level.
5. Register Your Business For Taxes
When starting your remote cleaning business, one crucial step is registering your business for taxes. This process involves obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is a unique nine-digit number assigned to your business, serving as a federal tax ID.
Applying for an EIN is a simple and free process that can be completed online through the IRS website. To get started, visit the IRS EIN application page. The application is available Monday through Friday from 7 a.m. to 10 p.m. Eastern Time.
To apply for an EIN online, follow these steps:
- Select the type of legal structure for your remote cleaning business (e.g., sole proprietorship, partnership, LLC, or corporation).
- Provide your TIN and indicate the reason for applying for an EIN (e.g., starting a new business).
- Enter your business information, including the legal name and trade name (if applicable), address, and the name of a responsible party.
- Answer questions about your remote cleaning business, such as the date you started or acquired the business, the highest number of employees you expect to have in the next 12 months, and whether you’ll have employees who will receive Forms W-2.
- Choose your business’s main activity and assign a NAICS code, which for a remote cleaning business would likely be 561720 – Janitorial Services.
- Once you’ve completed the application, you’ll receive your EIN immediately. Download and save the confirmation notice for your records.
In addition to obtaining an EIN, it’s crucial to register your remote cleaning business with your state’s tax department. This step is necessary for collecting and remitting sales tax on your services, as well as for paying any state-specific business taxes.
While applying for an EIN is free, there may be some costs associated with registering your business with your state. These costs vary by state and may include filing fees for business formation documents, such as articles of organization for an LLC.
6. Setup Your Accounting
Proper accounting is crucial for the success of your remote cleaning business. Not only does it help you stay compliant with tax laws and regulations, but it also provides valuable insights into your business’s financial health.
Accounting Software
To streamline your accounting process, consider investing in accounting software like QuickBooks. This powerful tool can automate many aspects of your bookkeeping by integrating with your bank accounts and credit cards. QuickBooks can help you track income and expenses, generate invoices, and create financial reports with ease.
Hire an Accountant
Working with a professional accountant can provide even greater benefits for your remote cleaning business. An accountant can offer a range of services, including bookkeeping, financial statement preparation, tax planning, and compliance. They can also provide valuable advice on financial strategies.
Open a Business Bank Account
Another crucial aspect of managing your remote cleaning business’s finances is separating your personal and business finances. By opening a dedicated business bank account, you can ensure that your business transactions are kept separate from your expenses.
Apply for a Business Credit Card
A business credit card can help you manage cash flow, track expenses, and build your business credit profile. Unlike personal credit cards, business credit card limits are determined by factors such as your business’s revenue, credit history, and industry.
7. Obtain Licenses and Permits
Obtaining the necessary licenses and permits is a critical step in starting your remote cleaning business. Find federal license information through the U.S. Small Business Administration. The SBA also offers a local search tool for state and city requirements.
The specific licenses and permits required for your remote cleaning business will vary depending on your location and the scope of your services. However, some common licenses and permits that you may need to obtain include:
- Business License: A business license is a general permit that allows you to operate your remote cleaning business within a specific jurisdiction, such as a city or county. This license ensures that your business complies with local regulations and zoning laws.
- Professional Cleaning License: Some states or municipalities require cleaning businesses to obtain a professional cleaning license. This license demonstrates that you have met specific training or experience requirements and are qualified to provide cleaning services.
- Occupational Safety and Health Administration (OSHA) Compliance: As a remote cleaning business owner, you’re responsible for ensuring the safety of your employees and clients. OSHA sets standards for workplace safety, including handling cleaning chemicals and equipment.
- Environmental Permits: If your remote cleaning business uses eco-friendly or sustainable cleaning products, you may need to obtain environmental permits or certifications.
- Vehicle Permits: If your remote cleaning business involves driving to clients’ homes or offices, you may need to obtain vehicle permits or registrations. These permits ensure that your vehicles are properly insured and meet safety standards.
8. Get Business Insurance
Business insurance is a crucial aspect of running a remote cleaning business. It provides financial protection against various risks and liabilities that your business may face, ensuring that you can operate with peace of mind. Without adequate insurance coverage, your business could be vulnerable to significant losses.
One of the primary reasons to obtain business insurance for your remote cleaning business is to protect yourself from potential lawsuits. If a client or third party suffers an injury or property damage due to your cleaning services, they may take legal action against your business. Business liability insurance can help cover the costs.
Consider these three scenarios where not having business insurance could have severe consequences for your remote cleaning business:
- Scenario 1: While cleaning a client’s home, one of your employees accidentally knocks over a valuable vase, causing it to shatter. The client demands compensation for the damaged item, which is valued at several thousand dollars. Without business insurance, you would be responsible.
- Scenario 2: A client slips and falls on a wet floor that your employee recently cleaned, resulting in a serious injury. The client files a lawsuit against your business, seeking compensation for medical expenses, lost wages, and pain and suffering. Without liability insurance, you would have to bear the cost of legal defense.
- Scenario 3: Your cleaning equipment and supplies are stored in a rented storage unit. A fire breaks out in the storage facility, destroying all of your business’s assets. Without property insurance, you would have to replace the damaged equipment and supplies entirely out of pocket.
To obtain business insurance for your remote cleaning business, follow these steps:
- Assess your business’s specific insurance needs by considering factors such as the size of your business, the services you offer, and the potential risks and liabilities you face. The Hartford provides a helpful guide to understanding the insurance needs of cleaning businesses.
- Research and compare insurance providers that offer policies tailored to cleaning businesses. Look for providers with experience in your industry and a solid reputation for customer service.
- Gather the necessary information about your business, such as revenue, number of employees, and details about your cleaning services. You’ll need this information when requesting quotes from insurance providers.
- Request quotes from multiple insurance providers and compare the coverage, deductibles, and premiums offered. Make sure to ask questions and clarify any aspects of the policies that you don’t understand.
- Once you’ve selected an insurance provider and policy that meets your business’s needs and budget, complete the application process, and provide any required documentation.
- After your policy is approved, review the terms and conditions carefully, and keep a copy of your insurance documents on file. Be sure to regularly review and update your coverage as your business grows and evolves.
By obtaining the appropriate business insurance for your remote cleaning business, you’ll be protecting yourself from potential financial losses, legal issues, and other risks that could threaten your business’s success.
9. Create an Office Space
Having a dedicated office space can be highly beneficial for your remote cleaning business, even if your services are primarily provided off-site. An office space can serve as a central hub for managing your business operations, storing supplies and equipment, and meeting with clients or employees.
Home Office
A home office is a popular choice for many small business owners, including those running a remote cleaning business. Setting up a dedicated workspace within your home can be cost-effective and convenient, especially when you’re just starting. A home office allows you to keep your overhead costs low.
Coworking Office
Coworking spaces, like WeWork, offer a flexible and affordable alternative to traditional office spaces. These shared workspaces provide a professional environment where you can work alongside other entrepreneurs and small business owners. Coworking spaces often come with amenities such as high-speed internet, printing services, and meeting rooms.
Retail Office
If your remote cleaning business focuses on serving commercial clients, such as retail stores or restaurants, having a retail office space could be advantageous. A retail office can provide a visible presence in a high-traffic area, making it easier for potential clients to find and contact you.
Commercial Office Building
For remote cleaning businesses that have grown beyond the startup phase and have a larger team, a commercial office building may be a suitable choice. A commercial office space can provide a professional environment for your employees to work and collaborate.
10. Source Your Equipment
Sourcing the right equipment and materials is essential for the success of your remote cleaning business. By having the necessary tools and supplies, you can ensure that your cleaning services are efficient, effective, and professional.
Buying New
You can find new cleaning equipment and supplies at home improvement centers like Home Depot, or online retailers such as Amazon or Uline. Buying new equipment may require a higher upfront investment, but it can pay off in the long run by ensuring that your tools are reliable and long-lasting.
Buying Used
Purchasing used equipment and materials can be a cost-effective way to acquire the necessary tools for your remote cleaning business. Online marketplaces like Facebook Marketplace, eBay, Craigslist, and Letgo are excellent resources for finding gently used cleaning equipment at a fraction of the cost of buying new.
Renting
Renting cleaning equipment can be a smart choice for remote cleaning businesses that have limited storage space or only need certain tools for specific jobs. Equipment rental companies like Sunbelt Rentals offer a wide range of cleaning tools and machines that you can rent on a short-term basis.
Leasing
Leasing cleaning equipment is another option for remote cleaning businesses that want to access high-quality tools without the upfront costs of purchasing them. Leasing allows you to spread the cost of equipment over a set period, typically 12 to 60 months, with options to purchase the equipment at the end of the lease.
11. Establish Your Brand Assets
Establishing a strong brand is crucial for the success of your remote cleaning business. A well-defined brand helps you stand out in a competitive market, builds trust with your target audience, and creates a lasting impression on your customers.
Getting a Business Phone Number
Having a dedicated business phone number is essential for projecting a professional image and ensuring that your clients can easily reach you. A service like Ring Central offers virtual phone systems that allow you to manage your calls, messages, and voicemail from anywhere, using your smartphone or computer.
Creating a Logo and Brand Assets
A logo is the visual cornerstone of your brand, and it should be memorable, versatile, and reflective of your business’s values and personality. Consider using a logo design tool like Looka to create a professional-looking logo that suits your remote cleaning business.
Creating Business Cards and Signage
Business cards are a tangible way to share your contact information and promote your remote cleaning business. Vistaprint is a popular choice for creating custom business cards and signage that align with your brand identity.
Purchasing a Domain Name
Securing a domain name that reflects your business name or brand is crucial for establishing an online presence. When choosing a domain name, keep it short, simple, and easy to remember. Namecheap is a reliable and affordable domain registrar that offers a wide selection of domain extensions.
Building a Website
Having a website is essential for showcasing your remote cleaning business’s services, portfolio, and contact information. Website builders like Wix offer user-friendly drag-and-drop interfaces that allow you to create a professional-looking website. Freelance platforms like Fiverr are another great option.
12. Join Associations and Groups
Joining associations and groups can be a game-changer for your remote cleaning business, providing valuable opportunities to network with industry peers, learn from experienced professionals, and stay up-to-date on the latest trends and best practices.
Local Associations
Connecting with local associations related to the cleaning industry can be an excellent way to tap into a wealth of knowledge and resources. Start by searching for the Building Service Contractors Association International (BSCAI) or the International Janitorial Cleaning Services Association (IJCSA).
Local Meetups
Regularly attending local meetups and tradeshows is an excellent way to expand your network and learn from other cleaning industry professionals in your area. Meetup is a fantastic platform for finding and joining local groups that share your interests and goals. Search for cleaning industry-related meetups in your city.
Facebook Groups
Facebook groups can be incredibly valuable resources for remote cleaning business owners, offering a platform to connect with professionals from around the world, ask questions, and seek advice. Start by searching for CLEANING BUSINESS OWNERS and Commercial & Residential Cleaning Business Owners.
13. How to Market a Remote Cleaning Business
Marketing is the lifeblood of any business, and your remote cleaning business is no exception. To attract customers, build brand awareness, and ultimately grow your business, you’ll need to develop and execute a comprehensive marketing strategy that leverages both digital and traditional tactics.
Personal Networking
As you start your remote cleaning business, your network is one of your most valuable assets. Reach out to friends, family, and acquaintances to let them know about your services and ask for their support in spreading the word. When you deliver excellent service to your first customers, encourage them to refer your business to others.
Digital Marketing
- Develop a strong social media presence on platforms like Facebook, Instagram, and Twitter, sharing valuable content, engaging with your audience, and showcasing your cleaning services.
- Create a Google My Business profile to improve your local search visibility and make it easier for potential customers to find and contact your business.
- Invest in targeted Google Ads and Facebook Ads to reach your ideal customers based on their location, interests, and search behavior.
- Start a blog on your website to share cleaning tips, industry news, and behind-the-scenes glimpses of your business, helping to establish your authority and attract organic search traffic.
- Partner with local influencers or bloggers to promote your services to their engaged audiences, leveraging their credibility and reach to expand your customer base.
Traditional Marketing
- Design and distribute eye-catching flyers and door hangers in targeted neighborhoods, highlighting your services and offering special promotions for first-time customers.
- Send targeted direct mail campaigns to households in your service area, using compelling offers and personalized messaging to stand out in the mailbox.
- Sponsor local events or organizations, such as sports teams or charity fundraisers, to build brand awareness and goodwill in your community.
- Advertise in local newspapers, magazines, or community bulletins, targeting publications that align with your target audience’s interests and demographics.
- While traditional marketing tactics like billboards and radio ads can be effective for some businesses, they often require significant investment and may not provide the best return on investment for a remote cleaning business.
14. Focus on the Customer
In the remote cleaning business, customer service is paramount to your success. Providing exceptional service not only ensures customer satisfaction but also lays the foundation for a thriving business built on referrals and repeat clients.
To deliver outstanding customer service, focus on clear communication, reliability, and going above and beyond expectations. If a client mentions that they’re particularly concerned about eco-friendly cleaning products, take the time to research and suggest the best options for their needs.
If you notice a small repair that could make a big difference in their home, like a loose doorknob or a squeaky hinge, offer to fix it as a complimentary service. These small gestures can leave a lasting impression on your clients, demonstrating your commitment to their satisfaction and well-being.
In addition to providing excellent service, make sure to actively seek feedback from your clients and address any concerns promptly and professionally. Encourage them to leave reviews as positive reviews can help attract new customers and build trust in your brand.
By prioritizing customer service and consistently delivering exceptional experiences, you’ll create a loyal customer base that will eagerly recommend your remote cleaning business to others. This powerful word-of-mouth marketing can help you grow your business sustainably.