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Plan Template
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.
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 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.
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;
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.
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.
Plant Manager:
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.
Accountant/Cashier:
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
Strength:
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.
Weakness:
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.
Opportunities:
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.
Threat:
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.
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.
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
Companies
Home remodeling companies
Construction companies
Electrical and lightings material dealers
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
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;
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.
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.
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;
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.
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.
LED Bulb Assembling Plant Business Plan – 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.
Check List/Milestone