Families and businesses around the country love Christmas lights and decorations but don’t have the experience or the desire to do their own installations. A Christmas lights installation business provides Christmas lights installation services to individuals and businesses who want to enjoy the beauty of decorations but lack the time or skill to install them.

There is much more to starting a business than just getting the job. The following steps outlined below will ensure you have a well-planned strategy and know exactly what to do to start your own Christmas lights installation business.

STEP 1: Plan, plan, plan

A clear, detailed plan is essential for starting a new business. The best thing you can do is think through the process and make a detailed plan so you don't miss anything important!

Some common questions to answer are: 

1. How much is it going to cost to get things rolling?

2. What types of customers should I focus on?

3. How much will I charge for my services?

4. What business name will I choose?

1. How much is it going to cost to get things rolling?

Some of the costs involved in starting a Christmas light installation business include:

• Truck(s) or trailers to carry ladders, tools, and people
• Tools such as ladders, screw guns, and pliers. 
• Insurance to cover your new company
• Website hosting and online marketing fees
• Fees for an accountant to handle your taxes if you choose to not do it yourself
• Business registration fees such as for an LLC
• Commercial-grade lights
• Storage costs
• Salaries

You'll need to make a detailed list of every possible thing you can think of and make sure you have what it takes to get things off the ground. A lot of times businesses that install Christmas lights are already doing something different such as pressure washing or landscaping so it is much easier to add a service. However, it still requires planning.

Also, do extensive research on the types of lights that you want to use. Incandescents or LEDs? No matter which type you choose, cheap lights will cause you a lot of problems so make sure you find a good source for quality outdoor lighting.

Some people might find it easier to buy a franchise. While a franchise can provide a foundation with leads it can be costly, you'll have to decide whether it's worth it yourself by analyzing both options.

2. What types of customers should I focus on?

The best customer is usually a business customer, however, you don't want to be picky unless you can. Business customers tend to spend more money and are more consistent year after year. Don't get me wrong, you will have some wonderful residential customers, especially ones that you already serve with a different business. But if you plan on spending money on marketing and advertising, businesses are a good bet.

3. How much will I charge for my services?

You will get good at quoting work after you do it for a little while - you make your money by installing and removing Christmas lights and other decorations each season. Depending on the size of the house and the number of lights, jobs will vary in cost but the average quote is around $1,500. You'll need to figure out how many lights, how long it will take, and how many people it will take to do it and figure out how much you can charge to be profitable. You might have a general rule of thumb to not take on jobs unless you can make a certain amount of money. If you can line up enough business before the holiday season starts you can potentially make $50,000 - $100,000 in a single season, especially if you do Halloween decorations as well. 

4. What business name will I choose?

Business names are important and there are many different ideas regarding the best type of business name to choose. Here are a few pointers when deciding on your name.

• Avoid names that are hard to spell or remember.
• Avoid choosing a name that limits what you do (Such as saying Christmas Lights Company when you might do Halloween decoration installations as well someday.)
• Make sure you don't choose a name that's all over the internet and someone else dominates the search results. Doing a quick Google search for your desired name can help figure this out. 
• If there's still a .com available for a certain name it's always more desirable but not necessary.
• Look on social media platforms and see if the name is available.
• Do a trademark search to see if you'll be able to get a trademark on the name.
• Search with your Secretary of State to see if you'll be able to incorporate it.

Choosing a name can take some time and research. Don't just go for the first thing you can think of, give it some thought and make the right decision - you'll hopefully have it for a long time!

STEP 2: Choosing a legal structure

There are many legal structures but the most common are sole proprietorships, partnerships, limited liability companies, and corporations. There are a few reasons you need a true, legal business entity. 

Liability

If you form a corporation, only the assets owned in the name of the corporation are subject to the claims of business creditors, including lawsuits against the business. The personal assets of the corporation's members generally cannot be claimed to satisfy business debts. For most people, this is the most important reason to form a corporation. 

Raising Capital

This can be done by bringing in other members who contribute funds, property, or services to the business.

Taxes

There is much more flexibility to pay taxes with a corporation, just be sure to look at each entity and decide what's best for you and your situation.

It's really important to form a corporation if you are planning on starting a business. Just to play out a scenario - let's say your ladder falls right on top of someone's brand new Porsche. The damages are over $40,000 and they sue you. They win in court and without a corporation, they come after your home equity. If you had a corporation your home equity would be protected. If you run a business you should always be incorporated and have insurance.

Learn more about business structures here and depending on what state you are in it's usually the Secretary of State that handles registering corporations.

STEP 3 - Paying your taxes

As a business owner, it’s important to understand your federal, state, and local tax requirements. This will help you file your taxes accurately and make payments on time. The business structure you choose when starting a business will determine what taxes you’ll pay and how you pay them. Tax laws can be tedious and difficult to understand. For this reason, a lot of people will opt to pay an accountant to ensure the proper forms are filed correctly and taxes are paid on time.

EIN

Most businesses need to apply for an Employer Identification Number (EIN). Your EIN is the federal tax ID number you need when you file taxes. You should get one right after you register your new business. Find out from the IRS if you need an EIN and how to get one but most of the time you can just register for one online.

Income Tax

Most businesses are required to file and pay federal taxes on any income earned or received during the year. Partnerships, however, have to file an annual information return but don't actually pay income taxes. Instead, each partner reports their share of the partnership's profits or loss on their individual tax return. Nearly every state imposes a business or corporate income tax, however, each state and locality has its own tax laws. Find out the business income tax requirements in your state or territory.

Self-Employment Taxes

If you have your own business you are required to pay Social Security and Medicare taxes or you won’t be covered under the Social Security system. Look here to learn more.

Employment Taxes

If you choose to have employees, there are certain federal tax requirements you have to pay. Businesses in all states pay state workers’ compensation insurance and unemployment insurance taxes. Check here to learn more.

1. Social Security and Medicare taxes
2. Federal income tax withholding 
3. Federal unemployment tax (FUTA) - ensures people can receive unemployment benefits

Excise Taxes

The federal government taxes certain types of businesses that manufacture or sell certain types of products. Although you probably won’t have to worry about this tax you might want to check here to be sure. 

Property Taxes

Each state has different definitions for what property is taxable. Some collect taxes for business assets such as vehicles and computer equipment and some for businesses considered commercial real estate. You generally pay taxes based on the value of the property. You can check here to find out more.

Sales and Use Taxes

A majority of states tax the sale of goods and services. Check whether your business has to register in your state. States may still tax your business on the use of goods and services, however, this usually applies to goods and services purchased outside of the state your business is in.

Estimated Taxes

You must pay federal tax on income that is not subject to withholding. Or, if the amount of your federal income tax being withheld is not enough to cover the taxes you owe, you must pay an estimated tax. Find out if you will have to pay estimated taxes here.

STEP 4 - Open a business checking account

Using a completely separate business account or accounts is essential for protecting your personal assets. When you mix business and personal accounts, you risk losing it all if you are sued. The whole point of a corporation is to protect yourself. If you mix personal and business finances this is referred to as piercing the corporate veil. You can find yourself in a lot of trouble with the IRS.  

When choosing a business bank account it’s important to remember that what works for your business may not work for another. Business checking accounts are not all alike. When comparing accounts there are several things to consider:

Service Fees

Business checking accounts can come with a variety of different fees such as monthly maintenance, minimum balance, wire transfer, overdraft, and ATM fees. Usually, online banks have fewer fees but it can be a tradeoff to access.

Interest Rates

If you would like to have an interest-bearing business checking account or savings account it’s important to check what the banks are paying themselves, especially when APYs are falling. But this page might help serve as a starting point. 

Branch and ATM Access

Some of the online banks have cheaper fees but IMO if something goes wrong, having a branch where there are real people can sure make things easier than sitting on an online chat or waiting on hold, especially if you make a lot of daily deposits. Also, most banks don’t charge ATM fees if you withdraw from their branded ATMs, so if you remove a lot of cash it could save you quite a bit on fees.

Transaction Limits

If you make a lot of deposits, withdrawals, bill payments, and transfers between accounts make sure you look for transaction limits. You might be limited on the number of checks, limits on the amount of money you can move, etc. Banks can also limit the number of transactions allowed to post to your account in a single day or a fee will be imposed. Try to find an account that allows for unlimited transactions to avoid fees.

Online Capabilities

Banks have become very tech-savvy, but not all banks offer the same tools online. Be sure to check out the features each bank offers on their website/app, it could save you a lot of time. For instance, QuickBooks integration, Zelle® allows you to easily send money to people, customer service through chat can save you a trip, and making mobile deposits is a must-have.

Introductory Offers

Banks often use sign-up offers to attract new customers. For example, some banks offer a cash incentive to open an account with a certain minimum balance or direct deposits. Note - if you do receive a bonus you’ll need to file a Form 1099-INT with the IRS. (Nothing is free I guess.)

When opening a business checking account pick out 5-10 banks and make a list of all the benefits of each one. Choose the one that best fits your personal preference. Offers from banks change all the time like sales at stores so spend some time and get the best deal!

STEP 5 - Establishing business credit

Learning how to build business credit is very important to the long-term success of your business. It can help you get business credit cards, net-30 terms, and financing in your business name. It also reduces your personal liability if your business were to fail. 

Businesses can have credit scores just like individuals do and three main institutions issue business credit scores - Dun & Bradstreet, Experian Business, and Equifax Small Business. They collect information from a variety of sources:

1. Data furnishers such as creditors and suppliers
2. Public records such as liens, judgments, bankruptcies, and incorporations 
3. UCC filings
4. State, city, and county business registrations
5. Corporate financial reports
6. Federal government contracts, grants, loans, and debarments
7. Internet web mining
8. Press releases and news stories
9. Print directories like Yellow Pages
10. Self-reported data

I could write an entire book on this but the main things you need to do to establish business credit are:

Obtain an Employer Identification Number or EIN

As suggested above for tax purposes, your EIN is like your business’s social security number. It is used to identify a certain business entity.

Get a D-U-N-S Number

Dun & Bradstreet has a commercial credit database of businesses and in order to establish business credit, it’s important to apply for this number. It’s free and easy to get here.

Establish a Business Phone Number Listed in 411

You need to get a phone number, preferably a local phone number and list it in 411. This is important for creditors to verify your business.

Incorporate Your Business

Creditors will only issue credit to a business if they are in fact, a business. In order to establish business credit your business needs to be incorporated in your state.

Obtain a Business Address

Although having an actual business address is important it isn’t vital. However, it can help make the difference between getting approved or not. If you cannot afford an actual office, look into virtual office space or a private post office box. Creditors like businesses that have an address.

Open a Business Bank Account

Having a business checking account provides a record of how you handle your finances as well as indicates you have separated your business from your personal finances. Most creditors want to know you have a business checking account and some will ask to see your statements. 

Create a Website

Most creditors will Google you to see if you have a website. It’s important to have something show up online where they can find you.

Register Your Business With Online Services

There are several places to do this online but Google My Business is probably the most important. It shows up in Google searches for your business name and since it requires address verification, it’s just another way for a creditor to ensure you are who you say you are.

Once you have completed the above requirements you can usually get a creditor to offer you a small credit line or net terms. Relationships with vendors that are relevant to your industry can be very beneficial. If you can secure payment terms such as net-30 or net-60 with a few vendors or suppliers who report to the business credit reporting agencies, you can begin to establish a positive credit history and use supplies like lights and pay after you’ve been paid.  

STEP 6 - Accounting and Bookkeeping

Bookkeeping is the day-to-day process of recording transactions, categorizing them, and reconciling bank statements while accounting is a higher-level process that looks at business processes and makes sense of the data compiled by the bookkeeper.

As a new Christmas lights installation business owner, you’ll need to determine how you want to handle your books. Here are the basic methods:

1. You can do it yourself and use something like Excel, Quickbooks, or Wave.
2. You can outsource to a part-time bookkeeper or accountant by searching online or using a family friend.
3. If your business is big enough you can hire an in-house bookkeeper and/or accountant. 

No matter how you decide to keep your books, here are some things you need to consider.

Make Sure to Track Your Expenses

The foundation of solid business bookkeeping is accurate expense tracking, it’s a crucial step that helps you monitor business growth, build financial statements, track deductible expenses, and prepare tax returns. Establish a system for organizing receipts and other records. Shoeboxed is a pretty cool service that can help. Make sure to keep receipts for meals, travel, vehicle, gifts, and even home office stuff. It can all be deducted from your taxes.

Set Up a Payroll System

If you have or plan to have employees, you’ll need to have a payroll system. You’ll need to establish whether that employee is an actual W2 employee or a 1099 independent contractor to know whether to withhold taxes or not.

Determine How To Pay Yourself

If you plan to take a salary and invest back into your company or just take the profit after expenses for each job. It’s good to figure this out before you get started.

STEP 7 - Marketing Your Business

Now that all the administrative tasks are out of the way, how do you drive some business? There are literally thousands of methods for marketing your business, we will focus on the most effective for your industry and for driving local business.

The complexity of marketing a local business has changed so much. A couple of decades ago, as long as you had a listing in the Yellow Pages and were sending out snail mail-outs, you were doing okay. Now not only do you need to be online, but you need to be everywhere all the time. Google used to be the most important strategy but now it’s not only Google but other websites such as Facebook, Apple Maps, and Yelp. And not only do you need to be there but you need to be active in those communities, launching ads, and writing new content.

So what are the basics that need to be addressed when starting a new business?

Build Your Brand

Get a Logo

Creating a logo for your business can be difficult if you don’t know how to use Photoshop but there are many ways to get a logo for your business and for cheap! Here are a few places you can obtain a logo.

• Taylor Brands Logo Maker
• Canva Logo Maker
• Fiverr - This is a freelance site where you can hire someone to do it for you.

Get Some Business Cards

One of the most important first steps in starting your business is to get your name out there everywhere you go. Best way to do that - business cards. Here are a few resources to help you get some great cards.

• I’ve used Uprinting for several years now and the service is always fast, responsive and high quality. I highly recommend them.
• Vistaprint has been around for a really long time as well and I’ve heard a lot of great things about them. I have not personally used them but they are definitely a top choice for a lot of businesses.
• Obviously going to a local print shop is a good option for those who just want to pick something out and have it done. Walking into Staples and telling them you want business cards can help.

Build a Website

Having a basic website is essential for any business nowadays, it’s the first place people go to learn about your business. 

Get Listed on the Internet

Local SEO is the process of proliferating and optimizing your online presence in order to attract more traffic from local searches on Google and other directories. Adding your business to all the main directories will put you in front of potential customers searching for Christmas lights installers. 

The first thing to do is create your Google My Business listing. For businesses that wish to drive local business, it is an essential requirement and needs to be at the top of the list in terms of importance.  

Setup Your Google My Business Listing

Nearly half of all searches conducted on Google are considered “local” searches and around half of the businesses have not even claimed their Google My Business listing. This is a vital step in obtaining new business from Google if you are a local business. People search for local businesses using a variety of different search engines but Google My Business gets a vast majority of the searches. We will visit some of the other methods next.

When setting up your listing be sure to pay attention to the following things, they are very important to get better ranked in the search results. 

Start by visiting the Google My Business page and create an account. Here are some tips to think about when you are setting your listing up:

• Make sure to verify your business - This is a fairly straightforward process where Google sends out a four-digit pin on a postcard to your address.
• Fill in the entire profile - Completely finish filling in all aspects of your profile even if they are only optional, including all business addresses, products and/or services, and website addresses. If you don’t fill it all in Google gives anyone the ability to add information to your profile.
• Ensure your information is accurate - This may seem like a no-brainer but many businesses don’t keep their information updated. With Google My Business operating as a storefront for so many businesses, this is very important.
• Pick relevant categories - The single most important thing a local business can do to its Google My Business profile is selecting the proper service categories. This is the feature that’s used to determine if your listing will be displayed when someone does an organic search. You can define one primary and nine secondary categories and can use a tool like Plepar to help you choose.
• Upload quality photos and videos - Adding high-quality images and videos to your listing is underrated. Pictures and videos show Google that this is a legitimate business. They give someone searching an inside look at your business and helps build trust - a huge ranking factor Google considers. You should also add new media as much as possible and optimize it with alt text, titles, captions, and geotagging.
• Use the Posts on Google feature - Google My Business allows businesses to create interactive posts called Posts on Google, that appear in search results. Creating high-quality posts drives engagement on your profile, improves rankings, and drives traffic & more visibility toward your business. Post with quality content and post often with rich keywords.
• Get reviews - The most important thing you can do to help grow your Google My Business profile ranking is to get and interact with reviews regularly. Get as many positive reviews as possible. Google uses both the number of reviews and the average star rating of reviews in its algorithms that determine which businesses show up first—both in Google Maps and in the local pack for web search results. When you have an interaction with a customer either send an email or hand a card with a review request.

Setup the Remaining Accounts

Go to each of the sites below and set up a complete profile including images, videos where possible, and updated business hours. Fill it out as completely as possible just like Google My Business. These business aggregate data throughout the web and listing here can also help your business information cascade to multiple other websites, apps, and directories.

Here are the main directories you want to be part of.

• Apple Maps
• Bing Places
• Yelp
• Foursquare
• Better Business Bureau
• Yahoo Small Business
• Mapquest
• Yellow Pages

Use Social Media

Social Media Marketing is the use of social media platforms like Facebook, Instagram, Twitter, and YouTube to help increase sales, build your brand and drive new website traffic. In order to be successful, you need to publish great content, engaging with your followers, measuring results, and running ads.

Setup Your Social Media Business Profiles

If you have not already, it’s important to have a strong social media presence across the web. Building out all profiles and creating pages on the right platforms for your business not only helps with your site rankings but also increases visitors, provides a platform for interaction, and helps to build authority. Make sure you have business profiles built on the following social media sites.

• Facebook Page
• Instagram Business
• LinkedIn Business Page
• Twitter

Just like with the directories, you’ll want to make sure to fill out every possible place for data and content. If you can add images, videos, and/or blog posts it enhances your search results.

Post to Social Media Regularly

Publishing to social media is as simple as sharing a post, an image, or a video on one of the social media platforms listed above. It’s very similar to how you would share on your personal Facebook profile but more targeted towards potential customers. It’s much better to plan your content ahead of time instead of creating and publishing content spontaneously. Also, to ensure that you are maximizing your reach on social media, you need to publish great localized content that your audience likes, at the right timing and frequency. Here are some examples of the types of content to promote:

• Jobs you’ve completed - One of the best things to post are jobs that you’ve just completed. After it’s all set up and ready come back in the evening when it’s dark and take tons of pictures and videos. 
• Links to local content - Research different blogs and interesting websites using keywords similar to Christmas lights and post links to them. Make sure to read every post and click around on the website, too. This will ensure you don’t share an article from a site that could negatively represent your brand’s views.
• Images - Images are some of the easiest content to create. Grab your smartphone or camera and take pictures of your business, staff, events, new products, or anything that might paint an idea of a brand in your potential visitors’ minds.
• Videos - Videos are watched constantly. Create some cool videos and post them. Like pictures, they make a huge impression.
• Reviews or testimonials - Contact past customers and ask if they'll offer a testimonial you can use on social media. Get an image of them and make it very compelling.
• Announcements - Using social media just like a news blog - post small and even large announcements your business might have. 
• Contests - Think of a prize that your audience will be interested in winning. Ideally, this will be related to your business, but this isn't mandatory. Then create a schedule for how long the contest will run as well as rules for entering.
• Special discounts - Offer special discounts for Facebook, Twitter, or Pinterest users.

Make sure to always answer comments or questions about your content and stay on top of each social media platform and create your content in advance. You can also set up automated posts and release some content each day with a tool like Hootsuite or Buffer.

Promote Your Social Media Posts

• Pay for promotion - It’s very easy to pay for a post on any social media platform. Paying for and targeting your ad is very effective and should be carefully planned out.
• Create different content for each social network - Each social media network has its own way of presenting content and its own loyal audience who like to consume content in that manner. People will appreciate that you have taken the time and effort to adapt your content according to the demands of that particular platform. For example, on Facebook, you will be better served if you post content that is informative and entertaining, something that is instantly shareable. LinkedIn is more business, Twitter is quick and witty and Instagram is very media-rich. Reach the mood of the network and post accordingly.
• Add a Call to Action button on your posts - Where possible, create posts in such a way that a Call to Action button is prominently displayed, enticing readers to take action. It could be simple such as “Learn More,” taking the reader to a blog post, or a more ambitious “Subscribe Now.”
• Ask sources to share your posts - If you’ve written a great piece of content that quotes an individual or mentions a business, send an email to the source, informing them that you have posted some content mentioning them and ask them to share it with their audience.
• Use industry-specific/local hashtags - This is missed very often. Using hashtags is a great way of getting audiences to participate in your conversations. For example, establishing a hashtag for an event and promoting it to your followers helps you to create real-time coverage of your event and a record of the experience. People search for hashtags and you can improve your exposure.

Use Paid Advertising

Lots of ad platforms allow you to promote the content you’ve created to a highly targeted audience to attract qualified leads and grow your customer base. The only downside is you have to pay for it. However with the hit on the travel industry and so many businesses going bankrupt right now the price of advertising is much less expensive, especially if you look at the entire picture of ROI. Here’s a list of the best platforms to start with: 

• Facebook Advertising
• Google Ads
• LinkedIn Ads
• Twitter Ads

All these platforms require learning some new skills, creating some content, and measuring for success but it is by far the most effective way to generate new leads for your business as fast as possible.

STEP 8 - The Inside Scoop

For the inside scoop please check out our blog posts - Hot Resources for Christmas Lights Installers and Digital Marketing for Your Christmas Lights Installation Business - Pro Advice

Conclusion

Starting a holiday lights installation business can be very lucrative if you do everything right from the beginning. Like any business, it requires planning, execution and maintenance. Be sure to do your due diligence in the area that you’re in and check out your competition.