Business Idea

Start A Lighting Store

About

Starting a lighting store requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell lighting, or selling lighting online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a lighting store ➜

Key stats

market size
$52.6B
revenue (monthly)
$35K
starting costs
$42.3K
gross margin
9%
avg product price
$5
time to build
10 months
growth
SEO
business model
E-Commerce
time investment
Side project

About

Starting a lighting store requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell lighting, or selling lighting online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a lighting store ➜

Key stats

market size
$52.6B
revenue (monthly)
$35K
starting costs
$42.3K
gross margin
9%
avg product price
$5

 

time to build
10 months
growth
SEO
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,200
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $4,786
Other Expenses $0 $300
Specific Industry Expenses $0 $500

Successful Businesses

Business URL Rank
Lamps Plus lampsplus.com #11,432
Lumens.com lumens.com #26,910
Classic American Lighting and House Parts rejuvenation.com #30,564
Philips philips.co.in #30,642
1000's Bulbs 1000bulbs.com #38,831
BD SHOP bdshop.com #40,293
ylighting.com ylighting.com #48,182
Olight Store olightstore.com #66,180
Shades of Light shadesoflight.com #73,793
Lighting New York lightingnewyork.com #77,170
Lightology lightology.com #80,948

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a lighting store. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the lighting store, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Control of workload With starting a lighting store, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Unlimited income potential With starting a lighting store there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A lighting store can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your lighting store are typically around 9%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the lighting store, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a lighting store, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a lighting store, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.