Are you about starting a led bulb assembling plant? If YES, here is a complete sample led bulb assembling plant business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a led bulb assembling plant. We also took it further by analyzing and drafting a sample led bulb assembling plant marketing plan template backed up by actionable guerrilla marketing ideas for led bulb assembling plants. So let’s proceed to the business planning section.
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Why Start a LED Bulb Assembling Plant?
One of the businesses that an investor who wants his products to be sold not only in the united states of America but in other countries of the world can consider starting is an LED Bulb Assembling plant.
A LED lamp or LED light bulb is an electric light used in light fixtures that produces light using light-emitting diode (LED). Although low voltage LED lamps are available, but LED lamps contain a circuit for converting the main AC into DC at the correct voltage. These circuits contain rectifiers, capacitors and may have other active electronic components, which may or may not permit the lamp to be dimmed.
It is important to state that starting this kind of business can be capital intensive and requires that you hire experts, but the fact still remains that it is highly profitable. If you are truly convinced that starting a LED bulb assembling plant is the right business for you to do, then you need to write your own business plan.
The essence of writing a business plan before starting any business is for you to have a blueprint of how you would want to setup, manage and expand your business. So, ensure that you consider all the available factors involved in the business you are about setting up when preparing your business plan.
Below is a sample LED bulb assembling plant business plan template that will help you successfully write yours with little or no stress.
A Sample LED Bulb Assembling Plant Business Plan Template
1. Industry Overview
A light-emitting diode (LED) is a semiconductor device that emits visible light when an electric current passes through it. LEDs are currently catalyzing a revolution in the global lighting industry. Compared to conventional lighting technologies, LEDs are smaller, have a longer operating life and involve a lower cost of ownership.
LEDs first appeared in 1962 and are commonly used for indicator lights (such as power on/off lights) on electronic devices. They also have numerous other applications like in electronic signs, clock displays and flashlights. Driven by factors such as their high efficiency and long shelf life, they have also begun to replace traditional light bulbs in several areas.
Some examples include street lights, automobile lights, and various types of decorative lighting. Driven by its numerous advantages over conventional lighting technologies, we expect this market to exhibit exponential growth in the short and medium term and dominate the global lighting market for years.
LED lamps have a lifespan and electrical efficiency which are several times greater than incandescent lamps, and are significantly more efficient than most fluorescent lamps, with some chips able to emit more than 300 lumens per watt (as claimed by Cree and some other LED manufacturers).
The LED lamp market is projected to grow by more than twelve-fold over the next decade, from $2 billion in the beginning of 2014 to $25 billion in 2023, a compound annual growth rate (CAGR) of 25 percent as of 2016. LEDs use only about 10 percent of the energy an incandescent lamp requires.
LED bulbs assembling plants falls under the Lighting & Bulb manufacturing industry and players in this industry manufacture a wide range of products, which includes electric light bulbs, tubes, parts and light-emitting diode (LED) and lighting fixture manufacturers.
Research conducted by IBISWORLD shows that Nonresidential lighting systems are expected to account for 48.0 percent of industry revenue in 2017. This product segment includes light bulbs and parts for ceiling lamps, fluorescent lamps and mercury lighting fixtures installed on various commercial, institutional and industrial buildings.
As non-residential private construction activity has remained below prerecession levels, fewer nonresidential lighting systems were needed in the past five years than during the previous five-year period. Consequently, this segment’s share of revenue has decreased in the past five years.
The Lighting & Bulb manufacturing industry has contracted over the past five years. Import competition has been a major factor in the declining performance of this industry, with many players in the industry shifting from manufacturing light-emitting diode (LED) bulbs and similar products to sourcing them from low-cost Asian countries or third-party contractors.
A good number of light-emitting diode (LED) bulb plants have departed the industry, unable to sustain operations in the price-pressured environment. In the five years to 2016, the industry has struggled with rising import penetration and increasing input costs, which constrained revenue and profit growth.
In addition, the increasing substitution of LEDs for traditional lighting systems has dramatically reduced demand for industry products. As a result, industry revenue is expected to decrease in the five years to 2016. Poor industry performance is expected to continue over the next five years, as contractors and homeowners alike are expected to increasingly opt for LED-lighting systems over industry products, significantly reducing downstream demand. As a result, industry revenue is projected to decrease over the five years to 2021.
The Lighting & Bulb Manufacturing Industry is indeed a major sector of the economy of most countries in the world (United States of America, Italy, France, united kingdom, China and India et al). Statistics has it that in the United States of America alone, the Lighting & Bulb Manufacturing industry generates over $2 billion annually from more than 69 registered and licensed big scale light-emitting diode (LED) bulbs assembling plants scattered all around the United States of America. The industry is responsible for the employment of over 5,082 people. Experts project the industry to grow at a -5.9 percent annual rate between 2012 and 2017. GE (General Electric) and Koninklijke Philips Electronics NV are the companies with the lion share of the available market in the United States of America.
Over and above, the lightings and bulbs manufacturing industry that light-emitting diode (LED) bulbs assembling business is a part of, is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business as long as they have the finance.
2. Executive Summary
Michael Smith® Lighting Company, Inc. is a registered LED bulbs assembling plant that will be located in Denver – Colorado; in an ideal location and standard facility, highly suitable for the kind of production business we want to establish.
Michael Smith® Lighting Company will manufacture different colors and sizes of LED bulbs and of course other electric light bulbs.
We are aware that there are several LED bulb assembling plants around the United States of America, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete in the market.
Michael Smith® Lighting Company, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.
Michael Smith® Lighting Company, Inc. is a family business that is owned by Michael Smith and his immediate family members. Michael Smith has a Degree: B.Engr. in Electrical Electronics Engineering from University of Denver – Colorado and MBA from Harvard, with over 13 years experience in the electric light bulbs manufacturing industry, working for some of the leading brands in the United States.
3. Our Products and Services
Michael Smith® Lighting Company, Inc. in the electric bulbs manufacturing industry to service a wide range of clients and of course to make profits, which is why we will give our clients and potential clients options. Our product offerings are listed below;
- Manufacturing of light-emitting diode (LED) bulbs
- Manufacturing of other electric bulbs
4. Our Mission and Vision Statement
- Our vision is to ensure that our compact LED bulbs are used in every five facilities/homes in the whole of Colorado and throughout the United States of America.
- Our mission is to establish a world – class LED bulb manufacturing business whose products will not only be retailed in the United States of America, but also be exported to other countries of the world.
Our Business Structure
Michael Smith® Lighting Company is set to build a standard business whose products will be exported to other countries of the world. We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
Modalities have been put in place to ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Plant Manager
- Human Resources and Amin Manager
- Sales and Marketing Manager
- LED Bulbs Plant Operator
- Customer Services Executive/Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, training, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives
- Accountable for fixing prices and signing business deals
- Provides direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Oversees the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Responsible for overseeing the smooth running of the LED bulbs assembling plant
- Part of the team that determines the quantity, colors and sizes of LED bulbs and other electric light bulbs that are to be produced
- Maps out strategies that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures that the steady flow of both raw materials to the plants and easy flow of finished products through wholesale distributors to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the factory meets the expected safety and health standard at all times.
- Interfaces with third – party suppliers (vendors) of raw materials
- Controls distribution and supply inventory
- Supervises the workforce in the factory.
Sales and Marketing Manager
- Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyzes the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Detects development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluate new plans for increasing sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
LED Bulbs Plant Operators
- Responsible for operating machines used in manufacturing and packaging of light-emitting diode (LED) bulbs and other electric bulbs
- Handles any other duty as assigned by the plant manager or supervisor.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive/Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for the company
- Distribute mails in the organization
6. SWOT Analysis
Michael Smith® Lighting Company, Inc. is set to become one of the leading LED bulbs assembling plants in the whole of Denver – Colorado and we are fully aware that it will take the right business concept, management and organizational structure to achieve our goal.
We are aware that there are several LED bulbs assembling plants all over the United States, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Michael Smith® Lighting Company, Inc. employed the services of an expert HR and Business Analyst with bias in manufacturing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Michael Smith® Lighting Company, Inc.;
Our strength lies in the quality of our products, the power of our team and the state of the art assembling plant that we own. We have a team of highly trained staff members that can produce durable products. We are well positioned in the heart of Denver – Colorado and we know we will attract loads of clients from the first day we open our LED assembling plant for business.
One of the obvious facts that will stand as a weakness is the fact that we don’t have the financial capacity to compete with multi – million dollar LED assembling plants in the United States when it comes to manufacturing LED bulbs and electric light bulbs and related products at rock bottom prices. Also, we may not have enough cash reserve to promote our LED bulbs the way we would want to do.
LED bulbs are high tech bulbs and they are in high demand not just in the United States of America but all across the world, and good enough LED bulbs produced in the United States are in high demand all across the world hence we are ready to take advantage of this opportunity to sell our LED bulbs.
One of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the infiltration of equal quality of LED bulbs that are produced in China and Japan. So also, unfavorable government policies may also pose a threat for our business.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the trends in the Electric Light Bulbs Manufacturing industry, you will agree that the industry has benefited from improved industrial production and construction activities over the last half a decade. Revenue from generic and non-energy saving electric light bulbs has been falling due to product standardization, with increasing competition from low-cost, low-priced imports produced in China and elsewhere.
Economic recovery and increased manufacturing activity and of course the introduction of energy saver light bulbs have helped boost sales. Operators have altered their current business procedures to correspond with new laws and profit margins are projected to remain tight due to volatile raw material costs.
LED bulbs and similar products segment has been growing steadily, and its sales are becoming more significant to the overall performance of the industry. Precision-turned products are high in demand in the automotive industry, as well as for aerospace, medical manufacturing and other applications. In the coming years, the industry is expected to benefit from persistent demand for energy saver bulbs.
8. Our Target Market
It will be safe to submit that the electric light bulbs manufacturing industry cum LED bulbs has the widest range of customers as they are used in every facility.
In view of that, we have created our product to well – accepted in Denver – Colorado and every other location where we intend distributing our products. We are in business to manufacture a wide range of LED bulbs and other electric light bulbs for the following clients;
- Facility managers
- Automotive assembling plants
- Home remodeling companies
- Construction companies
- Electrical and lightings material dealers
We are aware of the competition in the LED bulbs manufacturing industry and we are prepared to compete with other leading LED bulbs assembling plants in Colorado and throughout the United States. Our LED bulbs assembling plant is located in an ideal property highly suitable for the kind of manufacturing company that we want to run.
One thing is certain; we will ensure that we manufacture a wide range of LED bulbs and other electric light bulb to meet international standards. One of our business goals is to make Michael Smith® Lighting Company a one stop LED bulbs assembling plant.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Michael Smith® Lighting Company, Inc. is in business to manufacture and retail a wide range of LED bulbs to clients in the United States of America and other countries of the world. We are in the LED bulbs assembling plant line of business to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
Michael Smith® Lighting Company, Inc. will generate income by selling the following products;
- LED bulbs
- Other electric light bulbs
10. Sales Forecast
One thing is certain when it comes to LED bulbs assembling plant business, if your plant is properly located, your bulbs are of excellent quality and you have good business network, you will always attract customers cum sales and that will translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Denver – Colorado and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base beyond Denver – Colorado to other states in the United States of America and other countries of the world.
We have been able to examine the LED bulbs assembling plant line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in the United States of America.
Below are the sales projection for Michael Smith® Lighting Company, Inc., it is based on the location of our business and other factors as it relates to LED bulbs assembling plants startups in the United States;
- First Fiscal Year: $260,000
- Second Fiscal Year: $650,000
- Third Fiscal Year: $880,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing or retailing same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Prior to choosing a location for Michael Smith® Lighting Company, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for stakeholders in and around Denver – Colorado. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have a good understanding of the business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Denver – Colorado and throughout the United States of America.
In summary, Michael Smith® Lighting Company, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our LED bulbs assembling plant in a grand style with a party for all.
- Introduce our LED bulbs assembling plant by sending introductory letters alongside our brochure to home remodeling companies, automobile assembling plants, construction companies, households and key stake holders in and around Denver – Colorado and the entire United States of America
- Ensure that we manufacture different colors, sizes and shapes of LED bulbs and other related products
- Make use of attractive hand bills to create awareness and also to give direction to our plant
- Position our signage/flexi banners at strategic places around Denver – Colorado
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our LED bulbs assembling plant and of course of LED bulbs brand
- List our business and products on yellow pages’ ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
- Join local chambers of commerce and industries with the aim of networking and marketing our products.
11. Publicity and Advertising Strategy
Despite the fact that our LED bulbs assembling plant is well located, we will still go ahead to intensify publicity for the business.
Michael Smith® Lighting Company, Inc. has a long – term plan of opening other retail outlets all around Denver – Colorado and key cities in the United States which is why we will deliberately build our LED bulb brand to be well accepted in Denver – Colorado before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Michael Smith® Lighting Company, Inc.;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our LED bulb brand.
- Ensure that our we position our banners and billboards in strategic positions all around Denver – Colorado
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our LED bulb assembling plant and products in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
We will ensure that we peg our price to what is obtainable in the electric light bulbs manufacturing industry in the United States of America. Although, we have plans to sell our LED bulbs and other electric light bulbs a little bit below the average prices of similar products so as to gain entrance and acceptability from the available market.
- Payment Options
The payment policy adopted by Michael Smith® Lighting Company is all inclusive because we are aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Michael Smith® Lighting Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for our LED bulbs and other electric light bulbs without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget of achieving our aim of establishing a standard and highly competitive LED bulb assembling plant in Denver – Colorado and here are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing expenses for the grand opening of Michael Smith® Lighting Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a Business Consultant – $2,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The total cost for long – term leasing of a standard warehouse and showroom – $250,000
- The total cost for remodeling the LED bulbs assembling plant and warehouse – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The total cost for LED bulbs assembling machines and start-up inventory – $250,000
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The total cost for the purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The total cost of launching a Website: $600
- The total cost for our opening party: $7,000
- Miscellaneous: $10,000
We would need an estimate of three hundred and fifty thousand dollars ($350,000) to successfully set up our LED bulb assembling plant in Denver – Colorado.
Generating Startup Capital for Michael Smith® Lighting Company, Inc.
Michael Smith® Lighting Company, Inc. is a family business that is owned and financed by Michael Smith and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Michael Smith® Lighting Company, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to manufacture and retail LED bulbs and other electric light bulbs a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Michael Smith® Lighting Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility (Assembling plant): In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed LED bulbs and electric light bulbs assembling machines, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – suppliers and wholesale distributors of LED bulbs and related products: In Progress
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