Sample Essay

Once the company has been setup and becomes stable in terms of growth and profitability the company plans to increase the production capacity and product range after the primary products have been established in the market. The company will specialize in providing Light Emitting Diodes to end users as well as components for items being manufactured using Light Emitting Diodes. The founders after considering the rising demand for Light Emitting Diodes in recent times and the high profit margin in the industry have decided to establish a Light Emitting Diode manufacturing company based on this growth evaluation. The founders of the company have vast experience in the field of electronic components and Light Emitting Diode design and manufacturing.

The company will cater to the local and foreign requirements of Light Emitting Diodes by manufacturing the units in Russia. Due to the rising trend of demand in Light Emitting Diodes and Light Emitting Diode based products the company expects to earn high margins of profit during the course of business. The Light Emitting Diodes produced in the company will be sold to the parent company to meet the demand for electrical appliances and sell these diodes to a diverse base of customers including automobile manufacturers, electronic appliance manufacturers, industrial processes, cellular phone companies and other individuals and companies who have use of this product. The newly formed company will have an advantage in terms of sales as the revenues will start coming in almost immediately after the manufacturing process starts as the demand of the parent company are met and Light Emitting Diodes are sold to the parent company.

The initial amount of investment required for the business will be provided by the founders of the company with financing from issue of shares and debt financing from banks and financial institutions are also under consideration to maintain a balanced debt-equity ratio and diversify business risk. The financing form debt is only under consideration and has not been finalized and will only be implemented if there is a shortfall in the issue of shares.

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