Requirements to Start LED Lighting Company
LED lighting is the current rage today for a number of benefits it has to offer. LEDs consume less energy and are thus cheaper to maintain, especially in indoor areas like shopping malls and restaurants where lights might be on up to 20 hours per day. LEDs are also available in an almost unlimited range from small single bulb units with high luminosity to decorative lights. Finally, LEDs have the latest technological innovations in-built in them and can be controlled from a remote as well as dimmed or increased to meet specific requirements. With all these advantages, it is natural that there is a booming demand for LEDs today and those getting into this business are bound to reap rich dividends in future.
What then are the requirements to start a LED lighting company?
- Studying the market – LED lighting is a gradually evolving market and hence, there will not be many empirical studies on it regarding profitability and other operational factors. Hence it is advisable to acquire firsthand knowledge of the industry before getting into manufacturing. Start a distributorship on a small scale and know about the different types of LEDs, which ones have more demand than others, sources of supply of raw materials and purchasers of finished goods.
- Deciding the quantum of investment – There is no limit to the scale that you can start any business and LED lighting is no exception. However, start small and expand as you get more orders. You can start on a limited scale as large scale investments are not required. LEDs (the main component in the lights), casing and the power drivers do not cost much. Quantum of finances required for purchasing land and setting up a manufacturing unit will depend on the location selected by you. However do not choose a remote location as the charges for transportation will be substantial.
- Hiring skilled and unskilled personnel – This can turn out to be a time consuming affair for you and hence outsource this activity to specialised labour hire agencies that can get the right employees for you quickly. Make sure that those whom you hire have the required experience in manufacturing of LED lights.
- Selecting suppliers and distributors – These are the two crucial components on which your business growth will largely bank on. Make a market survey and prefer suppliers of raw materials that have market reputation for dependability. Similarly, be careful while finalising a distributor for your products as your sales and revenue will fully depend on this alone. From them you will be able to know market demand for specific products. For example if you find that commercial festoon lighting or Starlight lighting has a high share of the overall LED market, you can plan your manufacturing schedule accordingly.
- Getting statutory clearances – This point is given at the end but is of primary importance. Make sure that you have secured all the statutory and regulatory clearances from controlling authorities before you set up shop. You would surely not want inspections and unwarranted litigation to disrupt your business at a later stage.
Follow these simple points and you should be on your way to a flourishing LED lighting business.