Lucrative Electrical & Electronics Business Ideas in the Manufacturing and Service Sectors
With technology constantly evolving by the day, there has never been a better time to work and do business in the electrical and electronics industry! While there are several companies that have proven themselves globally with their exceptional products and services, there are still plenty of opportunities for business in the manufacturing and service sectors.
Here, we discuss both sectors in detail, and list some electrical and electronics business ideas for each!
If you set up a manufacturing business, you’ll be dealing with raw materials, components or parts to create finished goods. You might want to set up an assembly-line production unit if you’re inclined to produce a specific type of product in large quantities. Depending on the goods you manufacture, you can sell them directly to customers or other manufacturing businesses that will use your goods to make a different product.
Since the demand for manufactured products, particularly in the electrical and electronics field, continues to grow, it’s safe to say that your business will remain strong, provided you’re able to reinvent your product and manufacturing facilities based on changing market needs.
Overhead costs associated with running your manufacturing business will be high. You’ll have to pay for raw materials and labor, while also spending on marketing your product to stand in the face of competition.
Unavailability of raw materials can be another hindrance to your business; if the supplier or manufacturer you purchase raw materials from is unreliable, it could affect your business tremendously. Additionally, a spike in raw material prices will directly translate to a decline in profits for your business.
Control Panel Manufacturing: Rapid electrification and industrialization have led to the high demand for electrical control panels. Functionally, these panels are an integral part of electrical motors, transformers, generators, incinerators, and other such equipment. Authorities like electricity boards consume control panels majorly, so having an established customer base can help sell your products easily.
Household Consumables Manufacturing: You can start an electrical household consumables manufacturing business with a relatively small capital investment. Switches, socket plugs, fan regulators, and the like are essential household items and your business is sure to make profits. These products can also be marketed to commercial establishments and industries.
Generator and Inverter Manufacturing/Assembling: There’s a growing demand for generators of different capacities and inverters for domestic, commercial and industrial use. Manufacturing or assembling these products can be a viable business and can be started on a medium scale with moderate capital investment.
LED Light Manufacturing/Assembling: LED lights are growing in popularity and while manufacturing them will require you to set up a large scale factory with a complex production process, you can easily just set up a small or medium scale assembling unit.
The service sector differs from the manufacturing sector, in that there is no production of goods or no tangible output. In manufacturing, the focus is on machinery, technology, and labor, whereas in service, expertise and knowledge of service providers is of paramount importance. Furthermore, since customers are actively involved with service providers, business strategy, core competency, welfare measures, and other factors vary greatly between the two sectors.
Not having to bother with manufacturing means you get to focus completely on sales. You don’t have to worry about procuring raw materials or labor, dealing with delays in production, or inspecting finished goods before you sell them.
Since you’re an expert in your field, you can constantly work at gaining more skills and bettering your business.
Providing service in the electrical and electronics business means that as you grow or get more work, you might have to hire other skilled persons who can provide the same quality of service that you offer to your customers. You will have to constantly monitor and evaluate your employees, and retrain them if need be.
Despite improving on the quality of service you provide, you might have to deal with demand cut back in tough economic times, i.e., customer might decide to save money by doing a task themselves.
Lastly, while starting a service business can be simple with little to no investment involved; it can be hard to value your business, as there are no assets to claim. As such, if you require a business loan, you’ll have to establish sales record and reliable sales projections for lenders to be able to value your company.
Repair and Servicing: Home appliances and electronic devices like ovens, CD players, televisions, etc. often break down but can be repaired easily with your skills and expertise. You can also provide such services exclusively for gadgets like mobile phones, tablets, and computers.
Retail: Getting into retail can prove to be quite a profitable business for you, given that consumption of electronics products is bound to keep on increasing. You can set up a store to sell a range of household consumables, electronic toys, smartphones and tablets, computers, or niche products like solar system panels or CCTVs. You can also consider setting up a website and selling products or services online.
E-Recycling: Tons of electronic waste is disposed off each year, with the majority of it ending up in landfills. As an electronics recycler, you’ll be responsible for the separation and processing of recyclable and reusable parts, and proper disposal of toxic components.
With so many electrical and electronics business ideas to pursue in both the manufacturing and service sectors, you can be spoiled for choice! Consider all business ideas carefully and think through all things before you take a decision. Put your heart and mind in whatever you do, and you’re sure to succeed!