How To Start LED Light Manufacturing Business

LED stands for light emitting diode. LED lights are gaining huge popularity these days. The product has the great domestic and export potential also. Find here a detailed LED light manufacturing business plan sample checklist for your ready reference.

LED lights are available in wide range of colors from 2700K to 6500K which are dark, yellow, mild yellow and ultra white. Generally, LED consumes low energy and gives brighter performance compared to a bulb, CFL or tube light.

Any individual can start LED manufacturing business as medium or large scale basis. Definitely, the business demands a substantial startup capital investment. However, LED manufacturing is a highly profitable business as well.

12 Things To Consider In Starting LED Light Manufacturing

 

In starting this business, you must consider the following things:

  1.  What are the key success and risk factors in the LED industry?
  2. Additionally, what is the structure of the LED industry? Who are the key players?
  3. Identify different types of unit operations involved in a LED plant?
  4. Additionally, determine the total size of land required for setting up a LED plant?
  5. Identify the different types of machinery requirement.
  6. Additionally, figure out the major raw materials requirement for starting this business.
  7. Identify the utility requirements like water, electricity, etc.
  8. What are the manpower requirements for setting up a LED plant?
  9. Additionally, calculate the total infrastructure costs for setting up a LED light manufacturing business.
  10. Calculate separately the fixed capital and working capital investment in this business.
  11. Define the pricing of your product carefully.
  12. Finally, calculate the projected ROI and break even for this business.

Step-by-step Guide For Starting LED Light Manufacturing

Business Plan

Crafting a business plan is one of the essential aspects for starting this business. Do some market research and identify the demand for the specific types of LED lights. Identify the major players in the industry and how they are promoting their products. Get the machinery quote and calculate the costs related to setting up the plant. These all will help you in writing the business plan in a more accurate way.

These all will help you in writing the business plan in a more accurate way. In addition, clearly mention your business objective, mission, vision and executive summary. Finally, have a marketing plan. You must have branding and product promotion strategy.

Cost & Investment

Defining the cost and investment is must in the business plan. The business demands a substantial investment in setting up the plant and business operation. Additionally, you must think about the funding assistance from banks or other financial institutions.

Business Compliance

This is an important part in commencing the business. First of all, you will need to register your business with Govt. authority. According to the investment ratio and management pattern, you must register your company. However, if you are starting the business with your own capital only, then you can consider starting the LED light manufacturing as a proprietorship.

In addition, check the licensing factors. This business demands some licensing and permissions from the different Govt. agency. However, it depends on the specific location where you are starting this business.

Location

Location plays an important role in this manufacturing business. It is advisable to start the business in the industrial zone. Generally, industrial zones provide some advantages for starting medium or large scale industries. Additionally, you must secure an area of space according to your business size. Generally, a LED light manufacturing plant demand specific spaces for manufacturing operation, storage, packaging, and office operation.

Machinery

LED light manufacturing or assembling process is complex. And it is difficult to list machinery as a whole. You will need to select machines according to the specific type of LED you want to produce and the raw material you are using. However, here we put a list of major machines required for this business.

  • LED PCB assembly machine
  • LED lights assembly machine
  • High speed LED mounting machine
  • LED chip SMD mounting machine
  • Candlelight assembly machine for LED
  • LED tube light assembly machine etc.

Manufacturing Technology

According to the specific type of LED, you will need to source the manufacturing technology. Generally, some of the Govt. organizations provide the manufacturing technology for the certain amount of fees. However, it is advisable to procure the technology from the reliable sources.

Staffing

This business demands skilled manpower for the production department. Additionally, you must have a sales team for the domestic and international market as well. Therefore, you must prepare an HR manual for your company. Identify the work scope and define the job descriptions clearly. It will help you in the easy recruitment of the employees.

Also Read: 15 Best Business Management Tools For Small Business

Start Operation

Starting and operating a LED light manufacturing company is not an easy task. Therefore, you must be careful in the multiple aspects from the very beginning. Broadly, the operations include production, billing, accounting, distribution etc.

Generally, this type of business includes a wide range of operations as suck It is advisable to use right tools for smooth operation.

Also Read: 40+ Top Self Employed Business Ideas Anyone can Start

Promotion

You must promote your product both in the offline and online. Generally, a well-penetrated distribution network is the best option for this type of business. Additionally, you must consider B2B and institutional selling too. Also, you can explore the export opportunities.

Create your own company website. Create the contact page carefully with all the relevant information. Ensure the availability of your company name in the local directories. Join the local business associations that are related to the electrical industry. Additionally, trade fares are the great places for promoting LED light manufacturing company.