Start a Christmas light installation business by following these 10 steps:
- Plan your Christmas Light Installation Business
- Form your Christmas Light Installation Business into a Legal Entity
- Register your Christmas Light Installation Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Christmas Light Installation Business
- Get the Necessary Permits & Licenses for your Christmas Light Installation Business
- Get Christmas Light Installation Business Insurance
- Define your Christmas Light Installation Business Brand
- Create your Christmas Light Installation Business Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your Christmas light installation business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
What are the costs involved in opening a Christmas light installation business?
The startup expenses involved in opening a Christmas light installation business include:
- a vehicle for transporting crews and lights to customers’ sites
- ladders for installing lights
- commercial-grade lights
Because a Christmas light installation business is usually started to complement another seasonal business, most business owners who get into this line of work already have a vehicle, ladders and insurance from their other business. For instance, a painter or landscaper likely already has the equipment and insurance they need.
Some business owners may be tempted to purchase inexpensive lights to save money starting out, but this strategy often backfires. Cheap lights are more likely to break than commercial-grade ones, and the labor costs of replacing lights that break often exceed any savings the less expensive lights offer.
Instead of purchasing low-quality, inexpensive lights, businesses should invest in a few samples of high-grade lights. Representatives can use these samples to show customers what the lights look like, and then customers’ initial payments can be used to actually purchase the lights that will be used in displays.
Finally, some business owners may want to invest in a franchise. Opening a successful holiday lighting franchise costs between $10,000 and $15,000. While franchises can offer some nice benefits, business owners don’t have to start their business as a franchise. Many open independent businesses that are successful.
What are the ongoing expenses for a Christmas light installation business?
The ongoing expenses for a Christmas light installation business include storage costs for lights during the year, employees’ salaries and equipment costs. Storage costs are typically factored into customers’ quotes. Employees’ salaries and equipment costs are normally covered by another seasonal business during the rest of the year.
Who is the target market?
While most Christmas light installation businesses have lots of residential customers, a business’ ideal customer is another business. Businesses frequently are willing to spend more on displays than individuals are able to, and most businesses don’t have employees to install lights for them. Lots of individual homeowners prefer install their own lights, making individual homeowners a less reliable source of regular business.
How does a Christmas light installation business make money?
A Christmas light installation business makes money by charging customers for to install, service and take down decorative lights during the holiday season. Most customers are given individual quotes based on the size and complexity of their display.
How much can you charge customers?
The average cost of a Christmas light installation is $1,500, but some jobs run as high as $15,000 or $20,000. Many businesses don’t take on displays for less than $500 or $1,000.
How much profit can a Christmas lights installation business make?
A Christmas light installation business can bring in $50,000 or possibly $100,000, according to Ron Robey from Kingdom Christmas Lights in Houston Texas. This is in addition to any revenue earned by another seasonal business.
How can you make your business more profitable?
A Christmas light installation business can generate more revenue by offering decorative lighting services at other times of the year. Some individuals may be willing to pay for Halloween decorating, and many people will hire a professional service for weddings or other special events.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Christmas Light Installation Business Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state’s business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It’s very important to secure your domain name before someone else does.