How to Start a Holiday Light Installation Business in 7 Easy Steps?

Americans are importing over $463 million of holiday lights from Chinese companies. Holiday lighting is used as a decorative item during holidays and festive events, whether as  Christmas lights or for Halloween.

The demand for quality holiday lighting service providers is rising, and it’s a great time to invest in a powerful business idea that can help you scale and earn decent profits.

So, how to start a holiday light installation business?

How to ensure that you achieve great business heights?

Let’s find out.

7 Steps to Start a Holiday Light Installation Business

You can implement different steps to start a holiday light installation business for Christmas and other festivals, but we have filtered the top seven steps to kickstart your successful business. 

Have a look.

1. Planning

Business plan to start a holiday lighting business

Business planning is an important segment to set up the basics of your business operations. You must create a proper business plan to execute future decisions and avoid misunderstanding. 

A business plan helps to stick to your values, rules, and regulations that can help you scale your holiday light installation business to new heights.

It can help you decide whether you can become a successful business or not. Most businesses that operate without a business plan fail within five years of their operations.

You should plan your finances for marketing, from service business operations to employee management that can help you strengthen your holiday light installation business and scale it to new heights.

Pen down different expenses that you require to kickstart your holiday lighting operations. Your operational costs should include liability insurance, tax license, office setup, initial marketing budget, equipment costs, and employee salaries.

Industry and audience research

You should understand your target market and go through the service business operations of your competitors to get an extra edge before starting a holiday light installation business.

Understanding your target audience’s pain points, doubts, and problems can help you improve your marketing strategies and ensure that you don’t waste your funds on targeting the wrong audience.

Tailoring your audience and following a vertical approach can help you increase your business effectiveness and build a loyal customer base.

Understand the strengths and weaknesses of your competitors, and leverage their weak points to create your strengths.

Analyze the market trends, future technology changes, and other factors that can help solidify your foundation for successful service business operations. 

Once done with the planning, you should also analyze the service pricing of your business. 

2. Calculate the pricing model

Ensure that you charge a competitive price for your holiday lighting business. You must ensure you don’t overcharge to lose competitive advantage or undercharge to shrink your profits.

Calculate your business expenses wisely and understand the overall average pricing of your industry to add your profit margins and scale your business to new heights.

Focus on optimizing the business operations to help you cut down on your expenses and increase business productivity to achieve the desired business outcomes with finesse.

Create a solid image and strengthen your presence in the industry to build a successful holiday light installation business. 

Once you offer quality customer service and have a decent presence, you can increase your prices to stand out and earn great profits in the industry.

3. Register your business

Register your holiday lighting business

You must ensure that you can collect the right documentation before starting your light installation business. Business registration requires you to determine your business structure.

You should choose between sole proprietorship, LLC (Limited Liability Company), or a partnership that helps you approach forward with your lighting service business. 

Different business structures offer options to help you unlock desired results based on your requirements and preferences.

Business name

You should decide on your light installation business name before you file the business registration documents at the concerned authority. 

Your service business name should represent the brand and should look professional. The business name sets the tone of your business and helps you attract prospective customers.

Check the availability of your business name on the U.S. Trademark Electronic Search System to ensure that your chosen lighting business name is not trademarked. 

It can help you avoid future complications and ensure that you can stand out with your unique holiday light installation business name.

You can register your lighting business name with the local government, which can help you avoid future troubles or hassles.

Right licenses and permits

You can apply for the right permits and licenses that can help you operate your holiday light installation business. You can face hefty fines or be forced to shut down if you bypass acquiring the right licenses and permits.

You should focus on contacting the concerned departments to check the required documentation for processing the license or permit for running a successful light installation business.

4. Acquire your business resources

Once the basics are set, it’s time to perform the execution process and ensure you leverage your solid foundation and build a robust ecosystem.


Based on the scale of your business operations, you must decide the total operational costs. Ensure that you acquire the required funds to cover the operational costs.

You can raise business loans from different financial institutions, invest your savings, or ask your friends, partners, and family for financial assistance.

Utilizing your business loans, you can purchase the basic requirements, general liability insurance, quality Christmas lights, and other miscellaneous items for operating a Christmas light installation business. 


You must hire a talented workforce that can assist you with your Christmas light installation services and ensure that you scale your Christmas light business to new heights.

Assign and delegate your different business aspects to ensure you have free time and energy to sprinkle your creativity to scale your business operations.

Hiring the right talent to handle the desired work process to boost your efficiency and help you stand out from other Christmas light businesses.

Light installation business inventory

Focus on building an inventory of lights that can help cover most of the operational costs required to start a holiday light installation business. 

Ensure that you purchase your inventory months before in bulk to avoid the price hike during holidays like Christmas, Halloween, or New Year.

You also need a reliable source to purchase the lights wholesale and focus on investing in good quality lights that can deliver an excellent customer experience to your customers.

Here is the basic light inventory required for your first year of the Christmas light installation business.

  • Wooden ladders
  • Wire cutters
  • Zip ties
  • Electrical tape
  • LED lights
  • Holiday decorations
  • Outdoor extension cords
  • Light clips
  • Other safety supplies

Installing Christmas lights and operating a successful Christmas lights installation business requires keeping in check with your business resources and adding new additional elements to scale your business in the long run.

Being a seasonal business, your holiday light installation business should use strategic financial management to help you stand out and scale your Christmas light installation company.

5. Plan your financial budget

Service companies can make generous profit margins, but poor financial management can result in business losses. Build a solid and robust financial ecosystem to help you achieve a better cash flow, profits, and overall ROI.

Analyze your own Christmas light business setup costs, equipment needed, software investments, and other operational expenses. Also, create a professional business bank account that can handle your outflow and inflow of money.

Run a sustainable long-term holiday decorating service using systematic financial planning and operations. 

6. Market your holiday light installation business

Marketing your holiday decorating services is the heart of your business’ success. You must promote and advertise your new services to your target audience which can help you attract prospective clients and help you scale your business operations.

You can use different online or offline marketing strategies to help you rise in the Christmas light season or other festive seasons. 

Starting a Christmas light business requires out-of-the-box thinking abilities that can streamline your business flow and minimize the hassle. 

But scaling it to new heights requires professional marketing strategies to minimize your stress to generate leads and retain customers.

New business owners avoid taking out a specific marketing budget and ignore the importance of marketing which can hinder the business’s success.

Create high-conversion sales funnels to help you attract residential or commercial clients and boost your customer base.

Use the power of social platforms and create social media accounts that can assist you in creating a stronger presence online and increase your business reach and visibility.

Online marketing

Online marketing

Ensure that you use different online omnichannel marketing strategies like search engine optimization, paid advertisement, email marketing, social media, online listings, and other powerful strategies.

Communicate in a personalized manner that can increase effectiveness and help your target audience to become your long-term customers.

Use different content formats for different communication channels to help you create an impact and provide immense value to your potential customers.

Create different reels, videos, or blogs on how to hang Christmas lights, the best wedding lights, or different lights for a perfect holiday season.

Offline marketing 

In the digital era, don’t ignore the power of offline marketing and ensure that you have implemented the best offline marketing tactics for your holiday lighting business.

Use your business cards, flyers, banners, and other offline marketing tactics to increase your local presence and reach.

Communicate with your local clients effectively and launch a door-to-door marketing campaign to attract decent inquiries and service call requests.

Integrate membership and referral programs to ensure that you retain your customers and build a loyal customer base. It can help you provide special discounts and offers to your audience to make them feel special. 

7. Use modern tools and technologies

With the advancements in the holiday light installation business, you must integrate the best management and business processing software to deliver quality results.

Ensure that you strengthen your business operations, boost your productivity, and minimize the complexities of your business operations.

Keep a bird’s-eye view of your Christmas light installers’ performance and ensure that they deliver the best results while installing lights during Christmas or other holidays.

These steps to starting your Christmas light installation business or holiday lighting business can strengthen your base and help you scale your operations.

But here’s what you must consider before starting your operations.

Manage and Grow Your Holiday Lighting Business

Schedule and dispatch jobs, Create invoices, Get paid, Generate service reports with our All-in-one Service Scheduling and Dispatching Software.

Things You Need to Consider While Starting Holiday Lighting Business

There are different aspects you should consider before starting a holiday lighting business.

1. No compromise in quality

You should not be lenient with the quality of holiday lights provided to your clients. Also, professionalism in service operations should be at the highest level to sustain in the long run.

2. Safety precautions

Don’t forget to train your workforce to take preventive measures for safe and secure light installation. It can help you deliver quality customer experience and light installation results.

3. Choose a quality field management software

The field service management software industry can reach USD 5.7 billion by 2026. Because of the rise in software, it can become difficult for you to filter out the best for your business.

Our team has selected the leading field service management solution for your holiday lighting service business.


Yes. The Christmas light installation business is highly profitable because of the rise in demand and changing industry requirements.
It depends based on the requirements and the service provider. The average light installation cost ranges from $80 to $750.
You can start a holiday lighting business by researching properly, calculating startup expenses, and availing of insurance policies.

FieldCamp Can Simplify Your Holiday Lighting Business

A leading field service scheduling software, FieldCamp, offers a powerful interface to manage your holiday lighting business operations and ensure that you deliver quality results to your clients.

You can streamline your job scheduling, dispatching, and management processes to boost your overall business operations and minimize the complexities of your service business.

You can track your business and workforce performance using well-vetted reports to optimize your existing business performance and remove the weakness in your workflows.

Access the FREE 7-day trial and scale your holiday lighting business. 

Author Bio

Gaurang Bhatt

Gaurang Bhatt is a techie in himself with an ability to solve problems technically and present solutions in the form of a product. He is one of the pioneers to curate FieldCamp with his 15+ years of knowledge and expertise in providing solutions to home service industries. Gaurang aims to overcome challenges faced by service business owners through software solutions and blogs.