How to Start a Christmas Light Installation Business

Even if your venture is limited to the Christmas season, writing up a business plan is a good idea. What are your strengths, and what do you need to develop for your business? Do you currently have a landscaping business and can add holiday lighting installation services? Or will you only do this as a short-term endeavor covering the holiday season? Can you expand your services off-season, such as offering window cleaning or landscaping services? Once you outline the scope of your business, you should determine the following:

• Who is your competition?
• What is their pricing?
• How will you reach potential customers?
• Do you need startup capital, or can you finance it yourself?
• Will you do this yourself, or do you need to hire employees?

You can find many online business plan templates to organize your thoughts and develop an action plan.

Do you know how to install holiday lights? Do you have the proper equipment and tools? The essential items you will need to start include the following:

• Scissors, cutters, pocket knives
• Zip ties, light clips, hooks
• Outdoor extension cords, timers, and surge protectors
• Work belts and protective equipment, such as gloves
• Ladders

Also, give thought to the details of your service, for example:

• What safety precautions will you need to take?
• Will you provide Christmas decorations, or will the homeowner?
• Will you use incandescent or LED lights?
• Can you schedule installation and removal services to meet your customers' neighborhood rules?

Many homeowners' associations (HOAs) have rules about when light displays can go up and when they must come down.

Naming a venture is an important step for any new business. If you want to focus solely on a holiday light installation business, you can put that in your business name. However, if you expand your services, you may not want to have a name that is too specific. You can register your name so others can't use it by forming a corporate entity or filing for a “doing business as" (DBA) in your local county.

While you do your best at installations, there may be situations when you damage someone's property, or someone trips over an extension cord and sues for personal injury. Many business owners take additional steps to insulate themselves from their business debts, liabilities, and lawsuits by doing the following:

• Set up an LLC Business Structure. For a sole proprietor, a limited liability company (LLC) is a preferred business structure because it requires minimal paperwork, allows the owner to declare profits or losses on their personal income tax return, and provides liability protection.
• Look Into Liability Insurance. Insurance companies provide insurance plans to cover liabilities, accidents, business interruptions, etc. Find out the different business liability insurance plans and if it would help you.

You will want to get an Employer Identification Number (EIN) from the IRS if you hire employees or meet other requirements for an EIN. An EIN is a unique identifier of your business. You can get an EIN for your business by filing an IRS SS-4 form or filing online. You may need to open a business bank account to receive payments and get a merchant account to accept credit card payments. To open a business bank account, a bank may want to see your business formation documents, such as an LLC Certificate of Formation and operating agreement.

Understand where you must register for a business license, whether at the state, county, or local level. If you form an LLC, you are permitted to operate your business in the state. However, you may need local business licenses from your county or town.

Find out what licenses and permits your local town or county requires for operating your business. Installing holiday lights should be limited to hanging, securing, and removing the lights. You will need an electrician's license if a homeowner wants electrical work done.

The next step is to advertise. Think about what sets your service business apart from your competition. Here are some ideas to attract new customers:

• Distribute business cards to homeowners
• Ask current clients for referrals to friends and neighbors (word of mouth referrals are the best)
• Post videos of your work on social media (Be sure to ask the client's permission first)