Do you want to start an electric bulb manufacturing business? If YES, here’s a complete guide to starting an electric bulb manufacturing business with NO money and no experience. An electric bulb manufacturing business is one of the many businesses that can be started in any part of the world and the owner of the business can still penetrate the global market by simply exporting his or her products to other countries of the world.

An electric bulb consists of a transparent or translucent glass housing containing a wire filament (usually tungsten) that emits light when heated by electricity. Electric light bulbs come in different size and they are used in homes, offices, schools and in facilities and streets (as street lights). This indeed goes to show that there is a large market for electric light bulbs.

So, if you have the desire to start your own electric bulb manufacturing company, all you need do is to read this article and you will be well equipped.

21 Steps to Starting an Electric Bulb Manufacturing Business in the US

1. Understand the Industry

Electric bulb manufacturing companies manufacture a wide range of products, which includes electric light bulbs, tubes, parts and components amongst others. However, this industry excludes light-emitting diode (LED) and lighting fixture manufacturers; LED systems are included in the Semiconductor & Circuit Manufacturing industry.

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 nonresidential 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.

If you take notice of the Lighting & Bulb Manufacturing Industry, you will notice that the 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 electric bulbs and similar products to sourcing them from low-cost Asian countries or third-party contractors.

A good number of electric bulb manufacturers 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. 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 electric bulb manufacturing companies 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.

The lighting and bulb manufacturing industry that electric bulbs manufacturing 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.

2. Conduct Market Research and Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographic composition of those who make use of electric bulbs is far reaching; homes, offices, schools, and all facilities make use of electric bulbs for illumination hence the demographic composition for an electric bulb manufacturing business is all encompassing.

So, if you are thinking of starting your own electric bulb manufacturing business, then you should look beyond producing and marketing your products to just people in your city, but also to people beyond the United States of America.

3. Decide What Niche to Concentrate On

There are two clear cut niche areas when it comes to lighting and bulbs. These two niche areas are light-emitting diode (LED) and electric bulbs.

However, there are other areas that an electric bulb manufacturing company may choose to specialize on.

Here are some of the areas/products that an electric light bulb manufacturing company may consider specializing on;

  • Manufacturing automotive light bulbs
  • Manufacturing compact fluorescent light bulbs
  • Manufacturing electrodes and cold cathode fluorescent lamps
  • Manufacturing filaments for electric lamp bulbs
  • Manufacturing flashlight bulbs
  • Manufacturing health lamp bulbs, infrared and ultraviolet radiation
  • Manufacturing lamp bulb parts (except glass blanks)
  • Manufacturing lamp bulbs and tubes (i.e. fluorescent, incandescent filament, vapor)
  • Manufacturing photoflash and photoflood lamp bulbs and tubes
  • Manufacturing vapor lamps
The Level of Competition in the Industry

The competition that exists in the electric bulbs manufacturing business goes beyond local competition because major electric bulb manufacturing brands in China, Germany, France, Italy, United Kingdom etc. can be found in electric appliance stores all across the United States of America. So, it will be right to say the competition in the electric bulb manufacturing business is tough.

The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your products or business properly, you will always make headway in the industry. Just ensure you have what it takes to churn out quality products (electric bulbs and other related product) and you know how to reach out to your target market.

So, if you choose to start your own electric bulb manufacturing company in the United States, you will definitely meet stiffer competitions amongst electric bulb manufacturing companies in the United States and other countries of the world. Besides, there are larger electric bulb manufacturing companies that determine the trends in the industry and you should be ready to compete with them for customers.

4. Know the Major Competitors in the Industry

It is the norm that in every industry, there are always brands that perform better or are better regarded by customers and the general public than others. Some of these brands have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years.

These are some of the leading electric bulb manufacturing companies in the United States of America and in the globe;

  • GE (General Electric)
  • Koninklijke Philips Electronics NV
  • Aleddra LED Lighting
  • Axis LED Group (ALG)
  • CIRCADIAN Light
  • ConTech Lighting
  • DLU Lighting
  • EarthTronics
  • Jesco Lighting Group
  • AMP Lighting Volts
  • Green Creative
  • Columbia Lighting
  • Hubbel Outdoor Lighting
  • Kim Lighting
  • Universal Lighting Technologies
  • Kliegl Brothers Universal Electric Stage Lighting Company
  • Delray Lighting Incorporation
  • Prudential Limited
  • Heatron LED Integration
Economic Analysis

If you are looking towards successfully launching a business and maximizing profits, then you need to ensure that you get your economic analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in. Electric bulbs manufacturing business is not a green business, as a matter of fact, you will come across several brand names in your local stores when you go shopping.

So if you are considering starting an electric bulb manufacturing company, then your concern should not be limited to the cost of setting up the business and churning out quality electric bulbs, but also on branding and on how to build a robust distribution network. The truth is that if you are able to build a robust distribution network, you are sure going to maximize profits in the business.

5. Decide Whether to Buy a Franchise or Start from Scratch

Unfortunately, you can hardly find the franchise of an electric bulb manufacturing company to purchase meaning that if you want to own an electric bulb manufacturing business, then you must be ready to start from the scratch.

The truth is that it will pay you to start your electric bulb manufacturing company from the scratch. Starting from the scratch will afford you the opportunity to conduct thorough market survey and feasibility studies before choosing a location to launch the business.

Please note that most of the big and successful electric bulb manufacturing companies around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.

6. Know the Possible Threats and Challenges You Will Face

If you decide to start your own electric bulb manufacturing business today, one of the major challenges you are likely going to face is the presence of well – established electric bulb brands cum companies whose products can be found all across the United States and the global market.

So also, just like any other business, one of the major threats that you are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely face also is the arrival of a new electric bulb manufacturing companies or even LED manufacturing company that also manufacture electric bulbs in same location where yours is located.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

When considering starting an electric bulb manufacturing company, the legal entity you choose will go a long way to determine how big the business can grow; some electric bulb manufacturing companies design their products for the regional market, some for national market, while others for the international market.

You have the option of choosing a general partnership, or a limited liability company for an electric bulb manufacturing company. As a matter of fact, if your intention is to grow the business and have your electric bulbs distributed across the United States of America and other countries of the world, then Limited Liability Company, LLC will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your electric bulb manufacturing business; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes.

If you take your time to critically study the various legal entities to use for your electric bulb manufacturing business, you will agree that Limited Liability Company is the most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or a ‘S’ corporation especially when you have the plans of going public.

Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your electric bulb manufacturing business so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company.

8. Choose a Catchy Business Name from the ideas Below

When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents.

If you are considering starting your own electric bulb manufacturing company, here are some catchy names that you can choose from;

  • Michael Smith® Lighting Company, Inc.
  • Y T K® Electric Bulbs, Inc.
  • Light Nation® Electric Bulbs, Inc.
  • Tim Jason Electric Bulbs Manufacturing Company
  • Perfect Brightness® Electric Lightings Brand, Inc.
  • Sleek GAP® Electric Bulb Manufacturing Co, Inc.
  • James Edison® Electric Bulb Production Company
  • River Plate® Electric Bulb Manufacturing Co, LLC
  • Yellow Loop® Electric Bulb, Inc.
  • Lance Allison® Lighting Company, Inc.

9. Discuss With an Agent to Know the Best Insurance Policies for You

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your electric bulb manufacturing business.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your own electric bulb manufacturing business in the United States of America;

  • General insurance
  • Health insurance
  • Liability insurance
  • Workers compensation
  • Overhead expense disability insurance
  • Business owner’s policy group insurance
  • Payment protection insurance
  • Facility/Building insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

The truth is that your label, design and your style need to be protected or else anybody can successfully fake or create similar products and go scot-free making money off your brand name.

So, if you want to protect your unique design, your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO.

11. Get the Necessary Professional Certification

Although you do not need any special professional certification before you can start your own electric bulb manufacturing line business, but you will do yourself a whole lot of favor, if you study electrical electronics engineering or a related course before starting this this type of business.

12. Get the Necessary Legal Documents You Need to Operate

The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own electric bulb manufacturing company in the United States of America;

  • Certificate of Incorporation
  • Business License
  • Business Plan
  • Non – disclosure Agreement
  • Employee Handbook
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Consulting contract documents
  • Online Terms of Use
  • Online Privacy Policy Document
  • Apostille (for those who intend operating beyond the United States of America)

13. Raise the Needed Startup Capital

Starting an electric bulb manufacturing business can be capital intensive. Securing a standard production facility is part of what will consume a large chunk of your startup capital, but if you choose to start the business on a large scale, then you would need to go source for fund to finance the business because it is expensive to start a standard electric bulb manufacturing company.

No doubt when it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.

Here are some of the options you can explore when sourcing for startup capital for your electric bulb manufacturing business;

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for loan from your bank
  • Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
  • Source for soft loans from your family members and your friends

14. Choose a Suitable Location for your Business

When it comes to choosing a location for your electric bulb manufacturing business, the rule of thumb is that you should be guided by the demand for such product and easy access to labor and raw materials. If you are able to secure a central location for your electric bulb manufacturing business, it will enable you cut the cost of transporting your raw materials and finished products to and from your production facility and warehouse.

It cannot be overemphasized that the location you choose to open your electric bulb manufacturing business is key to the success of the business; hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of people with the required purchasing power and lifestyle. If you make the mistake of renting or leasing a facility for your electric bulb manufacturing business in a not too visible or hidden location simply because it is cheap, then you must be prepared to spend more in promoting the business.

It is important to note that a business facility in good location does not come cheap hence you should be able to allocate enough fund for leasing/renting in your budget. If you are new to the dynamics of choosing a location for a business such as electric bulb manufacturing company, then you should feel free to talk to a business consultant or a realtor who has a full grasp of the city.

Most importantly, before choosing a location for your electric bulb manufacturing company, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.

These are some of the key factors that you should consider before choosing a location for your electric bulb manufacturing company;

  • The demography of the location
  • The purchasing power of the residents of the location
  • Accessibility of the location
  • The number of electric bulbs manufacturing companies in the location
  • The local laws and regulations in the community
  • Traffic, parking and security

15. Hire Employees for your Technical and Manpower Needs

If you are considering setting up an electric bulb manufacturing company, it means that you should be prepared to purchase the needed equipment and machines. If you don’t have enough cash, you can start with fairly used machines but if you are financially buoyant, then you should go for brand new ones since they usually have a long life span.

As regards leasing or outright purchase of a production facility or warehouse facility, the choice is dependent on your financial standings, but the truth is that to be on the safe side, it is advisable to start off with a short term rent/lease while test running the business in the location. If things work out as planned, then you go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business.

When it comes to hiring employees for a standard electric bulb manufacturing company, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Sales and Marketing Manager, Electric Electronics Engineers, Quality Control Officer, Machine Operators, Accountant, Distribution/Delivery Van Drivers and Client Services Executive. These are some of the key employees that you can work with. On the average, you will need a minimum of 10 to 15 key staff members to run a small – scale but standard electric bulb manufacturing business.

The Services Delivery Process of the Business

When it comes to the manufacturing of electric bulbs, the first step to take is to come up with a design and then have the design approved by the board. After then, the next step is to determine the quantity, type and sizes (wattage and shapes et al) of the electric bulbs to be produced. Other steps involved in the entire process are producing the component parts and fitting the component parts together, testing the bulbs and putting finishing touches. The next step is to pass them through the quality control department before properly packaging, labeling and branding the products (electric bulbs) for sale.

It is important to state that an electric bulb manufacturing company may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated electric bulb manufacturing business process is not cast on stone.

16. Write a Marketing Plan Packed With ideas & Strategies

Running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch an electric bulb manufacturing company, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands that determine the market direction for the lighting and bulb manufacturing industry.

Your marketing strategy should center on quality and pricing, and above all excellent customer service. The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers.

Businesses these days are aware of the power of the internet, which is why they will do all they can to maximize the internet to market their services or products. In other words, a larger percentage of your marketing effort will be directed to internet users.

These are some of the marketing ideas and strategies that you can adopt for your electric bulb manufacturing business;

  • Introduce your products by sending introductory letters alongside your brochure to corporate organizations, businesses in the retailer industries, electrical appliances stores and key stake holders throughout the United States
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
  • Create a basic website for your business so as to give your business an online presence
  • Directly market your products
  • Engage in road shows in targeted communities from time to time to sell your products
  • Advertise our business in community based newspapers, local TV and radio stations
  • List your business on yellow pages ads (local directories)
  • Encourage the use of word of mouth marketing (referrals)

17. Work Out a Reasonable Pricing for your Services & Products

One key factor that will help you sell your electric bulbs at rock bottom prices is to purchase your raw materials and supplies directly from wholesalers in pretty large quantities. The truth is the higher the quantity of items you purchase directly from wholesalers, the cheaper you tend to get them.

Another strategy that will help you retail your electric bulbs at the right price is to ensure that you cut operational cost to the barest minimum, channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products.

You can also try as much as possible to work with independent contractors and marketers; with that, it will help you save cost for paying sales and marketing executives.

18. Develop Iron-clad Competitive Strategies to Help You Win

The quality and uniqueness of your electric bulb, your business process and of course your pricing model are part of what you need to stay competitive in the industry. If wholesale distributors are making profits from selling your products, they will be more than willing to go the extra mile to help you push your products to consumers.

Another possible competitive strategy for winning your competitors in this particular industry is to build a robust distribution cum business network. Over and above, ensure that your organization is well positioned, key members of your team are highly qualified and your electric bulbs favorably compete with the some of the best in the industry.

19. Brainstorm Possible Ways to Retain Clients & Customers

When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customers’ retention and perhaps to attract new customers is to produce results and satisfy your customers always. If your customers are satisfied with your services delivery, they can hardly source for alternative service provider or products.

Statistics has it that one of the major reasons why client’s source for alternative service provider or product is when there is a drop – in quality. Another reason is poor customer service.

If you can continue to improve on the quality of your electric bulbs and your customer service delivery, then you won’t struggle to maintain loyal customers.

Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers, and building loyal clientele base, you should purchase a customized CRM software. With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick surveys, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive compliant and feedback from them).

20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

If you are in business and you are not deliberate about boosting you brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portrays your business to be. One of the secrets of larger corporations is that they are willing to spend fortunes to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them.

If your intention of starting a electric bulb manufacturing company is to grow the business beyond the city where you are going to be operating from to become a national and international brand, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market.

Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your electric bulb manufacturing company;

  • Place adverts on both print (newspapers and electrical appliances magazines) and electronic media platforms
  • Sponsor relevant community based events
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your business
  • Install your Billboards in strategic locations all around your city or state
  • Engage in roadshow from time to time in targeted neighborhoods to retail your electric bulbs
  • Distribute your fliers and handbills in target areas
  • Contact businesses in the retail industries, electrical appliances stores and key stake holders throughout the United States and Canada informing them about your electric bulb brand
  • List your electric bulb manufacturing company in local directories/yellow pages
  • Advertise your electric bulb manufacturing company in your official website and employ strategies that will help you pull traffic to the site.
  • Ensure that all your staff members wear your branded shirts and all your vehicles and distribution trucks/vans are well branded with your company logo et al.

21. Create a Suppliers/Distribution Network

Business is all about demand and supply; meaning that if you are into electric bulb manufacturing, you will need supply of raw materials and you would also need a distribution network to help you push your products to end users. In order to successfully run a electric bulb manufacturing company, you must establish good business relationship with wholesalers of the required raw materials within the city where your electric bulb manufacturing company is located.

So also, you are expected to create business networks with distributors of electric bulbs and other products that you manufacture. They are your major clients and can help you distribute your products throughout the United States of America.

Ajaero Tony Martins