Growing a business from scratch to a multi-million-dollar operation teaches many lessons.
Here are ten key takeaways from my journey from a $0 to $2M Christmas light installation service company:
Start Simple
Start with an attainable goal where you can be personally involved in all the touchpoints required to make a happy customer. Due to the creative nature of the Christmas light installation business, you can expect an average of 20 touchpoints per customer per season. This includes everything from marketing to the final removal and follow-up. Keep your offering simple as well. For example, say “no” to elaborate blow-up displays or customers’ own big-box store lights. Instead, focus on just selling a single size of roofline bulbs and mini lights for landscaping.
Invest in Quality
High-quality products and services lead to satisfied customers and fewer callbacks. A single day lost to maintenance calls results in a 3% revenue loss for the season. Furthermore, you want LEDs that are extremely stable and won’t change color or brightness within a few years. This is achieved by using high-quality components like copper from Europe that is 99.9% pure, resistors from Japan, chips from Taiwan, and PVC from the USA. All these combine to provide exceptionally bright lights without having to run a lot of power through them. The less power, the more stable. This is why Big Star Lights runs its E17 bulbs at 0.45W instead of 0.58W or higher, for example.
Understanding the Customer
People don’t need Christmas lights. They want them. But it’s not the Christmas lights themselves they are after. Your customers want just two things: a look and a convenience. It’s imperative to communicate your ability to exceptionally deliver on those two desires better than your competition. This is achieved by showcasing a stunning gallery of photos that are relatable to the client’s property. Mockups can help too, although they can be time-consuming to build. Often, pictures will be sufficient, however. Professional and prompt replies (that include one or two photos) are also important as most people’s desires in this market are immediate, especially in the rush of the holiday season. Therefore, ensure you have a team and systems in place to respond quickly and professionally.
Efficient Operations
Streamline operations with effective scheduling, inventory management, and CRM systems. Efficient operations reduce waste and increase profitability. Stock up on hot-selling products like warm-white or pure-white lights, clips, and wire so that you’re ready to install them on short notice. Often, jobs are won just based on timing, particularly in the month of November. Colors like teal or fuchsia can be ordered as required. Also, make sure customers have a frictionless method to not only pay for your service but to schedule their service for next year! Busy people always take the easiest path, even if it costs a bit more.
Scalable Systems
Implement scalable systems early on. This includes everything from your website and CRM to your scheduling and accounting software. Every touchpoint, every step of the customer journey, every task of a manager or a technician has to be imagined at scale. For example, if you’re training a small team of two technicians this year, what will it take to effectively train a team of 40 technicians in three years? Start building checklists while your hands are dirty and thoughts are fresh. Jot down ideas on your to-do lists that you can work on in the off-season to make the subsequent season even more efficient. While the holiday season is a time to work in the business of Christmas lights, the off-season is the time to work on the business, and this is where the real growth happens.
Marketing is Key
Effective marketing strategies are essential. Invest in a strong online presence, including a professional website, SEO, and social media marketing. An effective ground game is equally as important, which includes door knockers, lawn signs, and vehicle wraps. Train and incentivize your team, including technicians, to find leads. Go a step further and train them on how to upsell by getting technicians to seek and talk to clients about features on a property that should be considered for decorating.
Hire Slow, Fire Fast
Building a reliable team is critical. Hire skilled workers and provide ongoing training. Your team is your most valuable asset. If there’s ever a task that can be done 80% as effectively by someone else with a relatively small amount of training, delegate that task. Repeat this process until you have substantial enough revenue to consider hiring people who are better at doing something than you. This is when growth really accelerates. Review the article "5 Must-Have Characteristics to Interview for When Hiring Christmas Light Installers." Don’t ever feel pressured to fill a position for the sake of filling a position. To scale, you need the right people occupying the right seats, and if they aren’t working out, make changes quickly. And remember: it’s better to have a hole in your company than an asshole in your company.
Financial Management
Sound financial management is vital because Christmas light services is a particularly difficult industry for cash flow. Healthy lines of credit will help cushion the extreme demand over a short period of time. Taking 50% deposits is another tool for easing cash flow issues. A strong controller on your team will keep a close eye on things while you can focus on sales and operations.
Be Nimble
The season is short, so it’s important to pivot quickly when either an opportunity presents itself or if things aren’t going smoothly. However, be mindful that team members can handle change differently, and you don’t want to cause excessive stress late in the season. In other words, pursuing an unforeseen opportunity can lead to complications that may make the very opportunity more damaging than helpful. Keep a finger on the pulse of the team and have scheduled, undistracted, one-on-one conversations with key members on a weekly basis.
Talk to Other Professional Installers
The industry evolves, and it’s important to stay up to date with the latest trends, technologies, and discoveries that others have made to keep your business competitive. Sign up for a Facebook group like our Christmas Light Installer Forum and take part in round-table discussions with other experienced installers who have made many of the possible mistakes that you’re likely to otherwise make. Big Star Lights also has a monthly online forum called Pro Installer Connect, here you can meet entrepreneurs who are succeeding in the Christmas light industry.
The journey from startup to a $2M company can seem daunting, but it’s incredibly rewarding when you get to share it with an amazing team. By focusing on quality, listening to your customers' needs, maintaining efficient operations, and continuously learning and putting those learnings into action, you can sustainably grow your Christmas light installation company to seven figures.