Adding low-voltage landscape lighting to an existing business is a great way to help you expand and stabilize your operation. For those companies already in the home services industry, it’s a wonderful opportunity to increase your top line revenue.
There are several reasons why you should consider adding outdoor lighting to your current business. The top five reasons are:
1. The Landscape lighting market is growing: Exterior lighting is a $789 million category. A new report from The Freedonia Group predicts 6.9 percent annual growth for the landscape products market through 2017. Increases in construction, existing home sales and new home builds will drive the expansion, which will be especially potent for the residential outdoor living sector, including decorative products, permeable pavers and outdoor lighting.
2. Recurring revenue: Increasing your business’ recurring revenue will help you to grow your bottom line and improve the quality of your revenue. Residential service contracts, like the annual maintenance contract, allow you to get in front of your client on a regular basis, giving you the opportunity to upsell them on more services.
3. Combat seasonality concerns: As fall approaches and daylight savings kicks in, the need for landscape lighting increases. In my experience, October through December are some of the top revenue months to install low-voltage lighting. Holiday lighting services provide an additional opportunity to increase your revenue stream during the fall and winter months.
4. Increased exit multiple: Is your ultimate goal to sell your business? A larger revenue base, stronger margins and improved quality of revenue (i.e., contractually recurring revenue) will boost your exit multiple in a future sale. When the time is right, a larger exit multiple will allow you to maximize the equity value of your entire blended operation, assuming the businesses are sold as a package.
5. Leverage your existing client base: Providing high-quality landscape lighting services allows you to sell and service the client base you’ve already built. Additionally, cross-marketing allows you to promote your respective businesses, which will drive new client acquisition and revenues for each business. Clients who had a good experience working with you in one business will likely be willing to secure additional services. To promote outdoor lighting, Outdoor Lighting Perspectives declared October National Outdoor Lighting month.
Coinciding with Daylight Savings Time, National Outdoor Lighting Month will be an annual consumer awareness effort to educate homeowners about the safety, security and lifestyle enhancements outdoor lighting can bring to their homes.
The company intentionally selected October as the month for this campaign as Daylight Savings Time brings extended evening hours. The darkness really helps drive home the importance and benefit of outdoor lighting and the dramatic difference it can make.
Along with safety, security and curb appeal benefits, outdoor lighting can enhance and extend the enjoyment of outdoor living spaces. Through the strategic placement of LED and halogen outdoor lighting fixtures, peace of mind is a strong secondary benefit to home beautification.
National Outdoor Lighting Month is to educate homeowners about outdoor lighting and the safety, security and lifestyle enhancements outdoor lighting can bring to their homes, according to Outdoor Lighting Perspectives, an owner-run franchise organization with more than 40 locations in the United States and internationally, with activity in Canada, The Bahamas and Kuwait. Outdoor Lighting Perspectives is part of Outdoor Living Brands.
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