Podcast Summary
Podcast: How I Built My Small Business
Host: Anne McGinty
Episode: How to Start a Christmas Lighting Business: Listener Q&A
Date: September 16, 2025
Overview
In this special Listener Q&A episode, host Anne McGinty sits down with a curious aspiring entrepreneur (Listener B, a construction project manager) to answer in-depth questions about starting and scaling a Christmas lighting installation business. Anne draws from her 13 years of experience running a Christmas light business with her husband, Mark, which grew from a single truck operation to a six-truck, 20-employee seasonal company before they sold it in 2020. This episode is a hands-on "how-to" guide, exploring everything from materials and pricing to hiring, operational logistics, and lessons learned—presented with Anne’s trademark emphasis on the human journey rather than just the numbers.
Key Discussion Points and Insights
1. Starting Out: Inventory & Materials
[02:47-11:10]
- Anne recommends starting with only the minimum inventory needed—initially incandescent, but quickly transitioned to almost all LED for efficiency and quality.
- Types of Lights: LED “5 mils” (little hats), LED Minis, C7 and C9 bulbs for rooflines, SPT wire (SPT2 for higher amperage), and various color wires to match house trim ([02:47-09:01]).
- Anne notes the importance of prepping materials before the season, such as removing tags from strands.
- Professional-grade extension cords, staple guns (J21 light-duty), “all-in-one” clips, zip ties, timers, and dielectric grease for wet locations are must-haves ([09:01-12:29]).
- For ladders, a range is needed: step ladder, 24ft self-leveling, and 32ft extension ([09:01]).
Notable Quote:
“You kind of create an assembly line so you can be quick at it. ... We would pre-prep all of our materials before we showed up at any job sites.” – Anne ([09:01])
2. Installation Techniques & Customer Experience
[12:29-16:43]
- Best practices include customizing solutions for each home’s architecture, from gutters and fascia boards to specialty roof types (e.g., tile or shingle).
- Anne stresses honest communication with clients—if there’s a risk of damage (like cracking tile), be upfront and include disclaimers ([14:10-15:27]).
- Details matter: removing staples, tidying up, and ensuring quality presentation is key to a “white glove” customer experience.
Notable Quote:
“It’s going to be a custom—you’re going to have to figure that out, like, one by one. … We would focus on other areas, other landscape features.” – Anne ([13:00-14:32])
3. Ownership of Materials: Sale vs. Lease
[16:45-20:15]
- Anne initially sold lights to homeowners (who stored and reused them), but this proved inefficient due to changes or failures.
- They switched to leasing lights and materials, handled storage themselves, and incorporated regular replenishment (every 2-3 years) into the pricing for ongoing quality ([16:56-20:15]).
- Leasing proved more profitable and efficient, enabling quality control and smoother logistics.
Notable Quote:
“Honestly, it’s more profitable to lease the lights.” – Anne ([19:02])
4. Seasonal Timeline: Marketing & Booking
[20:15-22:51]
- Their first installs began early November, but as they scaled (especially with commercial work), seasons extended from July through December.
- Early marketing: targeted, hands-on flyer drops in affluent neighborhoods for initial traction; quick response to inquiries is essential.
Notable Quote:
“Our first job was on November 4th… We targeted a very, very high net worth area.” – Anne ([20:38])
5. Quoting & Pricing Strategy
[23:39-29:55]
- Initial pricing was hourly, bundling install and takedown (e.g., $250/hr for a crew of two; increased with crew size and complexity).
- Accurate quotes required detailed site notes (type of light, placement, needed supplies, power sources).
- Provided “whole job” pricing with clearly spelled out inclusions, rather than a la carte—speed and specificity were client trust builders.
Notable Quote:
“Speed really matters in customer service. ... The sooner you can get it, the better.” – Anne ([27:53])
6. Handling Special and Custom Requests
[31:16-33:10]
- Large displays (e.g., giant snowflakes, LED spheres) are possible, but bring storage and logistics challenges.
- For such items, either charge the customer for storage or require them to store it off-season.
7. Hiring, Training, and Retaining Employees
[37:52-43:42]
- Early hires were friends/friends of friends; later, Craigslist and even gym bulletin boards (for comfort with heights).
- Wages evolved over the years: from minimum wage up to $25-45/hr, with structured bonuses (15% of seasonal wages for individual, team, and company performance) and seasonal return bonuses ([38:19-41:18]).
- A three-person, lead-driven crew structure proved most efficient. Team leads handled truck responsibilities, customer communications, and the complex “power puzzle.”
Notable Quote:
“If you find someone who is just a really good employee, we would give a raise every single year. ... And the other bonus we started bringing on was a return for the season bonus.” – Anne ([38:19])
8. Logistics, Trucks, and Job Organization
[46:01-50:22]
- Early days: Anne and Mark’s apartment was the “warehouse;” as the company grew, proper storage and box trucks became essential.
- Box trucks doubled as mobile warehouses and moving billboards—clean, simple truck branding was credited for marketing success ([48:45-49:10]).
- Crew leads managed daily material pick-up and organized installs/takedowns by geography for maximum efficiency as operations scaled.
Notable Quote:
“Box trucks. And the reason why is that they’re moving billboards.” – Anne ([48:44])
9. Supplies and Sourcing
[50:23-52:19]
- Anne recommends S4 Lights for bulk supply needs (SPT wire, bulbs); Home Depot or Lowe’s (with contractor pricing) for extension cords.
- Bulk buying is critical to secure discounts and meet demand during peak season.
10. Insurance & Liability
[52:23-53:32]
- General liability and workers comp are musts (especially for commercial jobs). Anne’s insurer allowed unlimited “additional insured” certificates.
- Insurance costs were baked into the hourly pricing structure, not treated as a separate line item.
Notable Quotes & Memorable Moments
- On Leasing Lights: "Honestly, it’s more profitable to lease the lights." – Anne ([19:02])
- On Starting Small: "We started out where we would sell them the lights and put them in a bin ... We stopped doing that after several years." – Anne ([16:56])
- On the Importance of Authenticity: "I think honestly what people want is authenticity. They want trust, honesty." – Anne ([22:51])
- On Employee Retention: “We would give them a 15% bonus potential ... And then we would do a signing bonus for returning for the next season.” – Anne ([40:24])
- On Grassroots Marketing: "Our first job was on November 4th ... We targeted a very, very high net worth area." – Anne ([20:38])
- On Marrying Skill Sets: “My wife is you. She’s very ... she knows the books, the insurance, and all that stuff. So I’m like, 'babe, we got this. We just got to marry our skills together and run and do it.'” – Listener B ([35:48])
- On Team Structure: “The team lead was responsible for driving the truck ... Basically delegate what the plan is ... while everybody else is preparing lights and supplies.” – Anne ([42:03])
- On Community/Referral Power: “You can also say you’re our first job in this neighborhood … if you’re happy … we’d be honored if you would let any of your friends or neighbors know.” – Anne ([53:59])
Timestamps for Important Segments
- [02:47] – Materials and installation supply discussion
- [09:01] – Ladders, tools, and site prep
- [16:56] – Buy vs. lease materials policy
- [20:38] – Marketing and first customer stories
- [23:55] – Approaching pricing and quoting jobs
- [31:16] – Handling custom display and storage challenges
- [38:19] – Employee hiring, pay, training, and bonus systems
- [46:01] – Daily logistics: trucks, warehousing, supplies
- [50:23] – Sourcing materials and supply chain tips
- [52:23] – Insurance requirements and best practices
- [53:59] – Word-of-mouth and neighborhood marketing
Takeaways & Life Wisdom
- Start lean; evolve processes and pay as you grow.
- Authenticity, prompt communication, and quality presentation are your best sales tools.
- Always build systems that prioritize efficiency, customer experience, and staff retention.
- Niche services can thrive when targeted at a market willing to pay for convenience and quality.
- Combining complementary skill sets (technical + business admin) within a partnership can be a significant advantage.
Those interested in starting a holiday lighting business—or any seasonal, high-value, service-oriented operation—will find this episode a comprehensive, actionable, and human-centered primer.
