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Medical Supply Business

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How to Start a Medical Supply Business in 13 Steps

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 11, 2022 Updated on July 11, 2024

Investment range

$12,050 - $25,100

Revenue potential

$104,000 - $312,000 p.a.

Time to build

1 – 3 months

Profit potential

$52,000 - $94,000 p.a.

Industry trend

Key considerations to keep in mind when launching your medical supply business:

• Location — Choose a convenient and accessible location for your business, whether it’s a retail storefront, warehouse, or both. Consider factors such as foot traffic, proximity to healthcare facilities, and storage requirements.
• Product range — Decide on the range of products you will offer, such as disposable supplies (gloves, masks), durable medical equipment (wheelchairs, hospital beds), diagnostic equipment, and surgical instruments.
• Permits and licenses — You will need the necessary permits and licenses required by local, state, and federal authorities to operate a medical supply business. This may include a business license, sales tax permit, and permits specific to medical device distribution.
• Compliance — Ensure compliance with FDA regulations if you plan to distribute medical devices. Understand the classifications and regulatory requirements for different types of medical supplies.
• Suppliers — Establish relationships with reliable manufacturers and suppliers to source high-quality medical supplies. Negotiate favorable terms and pricing.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Inventory management — Implement an efficient inventory management system to track stock levels, manage orders, and prevent shortages or overstock situations.
• Distribution — Develop a reliable distribution system to ensure timely delivery of medical supplies. Consider partnering with reputable shipping companies or managing your own delivery fleet.
• Partnerships — Build relationships with healthcare providers, hospitals, clinics, and nursing homes to secure bulk orders and establish long-term contracts.

Interactive Checklist at your fingertips—begin your medical supply business today!

You May Also Wonder:

Can a medical supply business be profitable?

Yes, profit margins on medical supplies are high. The key is to specialize in a certain type of supplies and target a specific market for the products you offer.

How do I determine prices for my medical supplies?

Prices will vary by item. Check market prices to make sure that you’re competitive. After your cost to purchase from the manufacturer, you should aim for a profit margin of about 50%. Once you know your costs, you can use this Step By Step  profit margin calculator  to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who is the biggest distributor of medical supplies?

The biggest distributor of medical supplies may vary depending on the region and industry, but some major players in the global medical supply distribution market include Cardinal Health, Medline Industries, and McKesson Corporation.

What are the top 10 medical consumables?

The top 10 medical consumables can vary based on specific needs and healthcare settings, but some commonly used medical consumables include gloves, syringes, needles, bandages, surgical masks, gowns, catheters, wound care products, IV sets, and disposable medical instruments.

What is the difference between medical supplies and medical equipment?

Medical supplies generally refer to consumable items used in healthcare settings, such as gloves, syringes, and bandages, that are single-use or have a limited lifespan. Medical equipment, on the other hand, refers to durable devices or machines used for diagnosis, treatment, or monitoring, such as X-ray machines, ultrasound systems, and hospital beds.

How can I differentiate my medical supply business from competitors in the market?

To differentiate your medical supply business from competitors, you can focus on factors such as competitive pricing, superior product quality, exceptional customer service, fast and reliable delivery, a wide product selection, personalized solutions for specific healthcare needs, establishing strong relationships with manufacturers and suppliers, and emphasizing your company’s reliability and reputation.

How can I expand my medical supply business to reach more clients and markets?

To expand your medical supply business and reach more clients and markets, consider the following strategies: diversify your product offerings, explore new geographical regions or markets, establish partnerships with healthcare facilities, clinics, and hospitals, leverage e-commerce platforms for online sales, attend industry trade shows and conferences, and invest in targeted marketing campaigns.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a medical supply business has pros and cons to consider before deciding if it’s right for you. 

• To people and facilities that need them
• Good Money – Profit margins on medical supplies are high
• Flexibility – Run an online business from home, set your own hours
• Partner Needed – Finding a quality manufacturer can be difficult
• Crowded Market – Competing with established firms will be tough

Medical supply industry trends

Industry size and growth.

• Industry size and past growth – The US medical supplies wholesaling industry is worth $279 billion in 2022 after annual 2.5% growth the last five years. In the last decade the industry has grown 50%.(( https://www.ibisworld.com/industry-statistics/market-size/medical-supplies-wholesaling-united-states/ ))
• Growth forecast – The US medical supplies wholesaling industry is projected to grow nearly 4% in 2022. 
• Number of businesses – In 2021, 14,067 medical supplies wholesaling businesses were operating in the US.(( https://www.ibisworld.com/united-states/market-research-reports/medical-supplies-wholesaling-industry/ )) 
• Number of people employed – In 2021, the US medical supplies wholesaling industry employed 255,219 people.

Trends and challenges

Trends in the medical supply industry include:

• Therapeutic devices, which includes anything from walkers to hearing aids to catheters, represent 90% of the medical supply industry. 
• The number of elderly Americans is expected to double by 2060 to 95 million, becoming nearly one-quarter of the total population. This will significantly increase demand for high-quality medical supplies. 

Challenges in the medical supply industry include:

• Regulations surrounding medical supplies are constantly evolving and it’s crucial that medical supply businesses stay up to date.
• Continuing healthcare supply chain issues are making it difficult for medical supply businesses to keep inventory stocked. 

Demand hotspots

• Most popular states – The most popular states for medical sales representatives are Ohio, West Virginia, and New Jersey.(( https://www.zippia.com/medical-sales-representative-jobs/best-states/ ))
• Least popular states – The least popular states for medical sales representatives are Montana, Oklahoma, and Louisiana.

What kind of people work in medical supply businesses?

• Gender – 46.9% of medical sales representatives are female, while 49.5% are male.(( https://www.zippia.com/medical-sales-representative-jobs/demographics/ ))
• Average level of education – The average medical sales representative has a bachelor’s degree.
• Average age – The average medical sales representative in the US is 46.7 years old.

How much does it cost to start a medical supply business?

Startup costs for a medical supply business range from $12,000 to $25,000. The largest cost is your initial stock of inventory.

How much can you earn from a medical supply business?

Prices for medical supplies vary greatly based on the item. These calculations will assume an average price of $100, although some items could be significantly higher. Your profit margin should be about 50%. 

In your first year or two, you could work from home and sell 20 items per week, bringing in $104,000 in annual revenue. This would mean $52,000 in profit, assuming that 50% margin. As you ramp up your marketing, sales could climb to 60 items per week. At this stage, you’d rent a commercial space to store your inventory and hire staff, reducing your profit margin to around 30%. With annual revenue of $312,000, you’d make a tidy profit of $94,000.

What barriers to entry are there?

There are a few barriers to entry for a medical supply business. Your biggest challenges will be:

• The startup costs of inventory and a website
• The massive competition in the industry
• Finding a manufacturing partner

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Step 2: hone your idea.

Now that you know what’s involved in starting a medical supply business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research medical supply businesses in your area and online to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a company that sells durable medical equipment, a medical device company, or a hospital bed supplier. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as medical products for nursing homes or therapeutic devices for health care providers.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your product offerings

There are literally thousands of items you could sell. It’s probably best to specialize in a certain type of supplies. 

With thousands of potential items, focusing on a specific category of medical supplies can streamline your business and make it more manageable. Here are some targeted areas to consider:

• Home Health Care Supplies: Target the growing market of aging individuals or those with long-term health conditions, providing daily-use items that enhance their quality of life.
• Specialized Medical Equipment: Focus on products that require detailed knowledge for use, such as orthopedic supports or advanced respiratory devices, catering to specific medical needs.
• Disposable Medical Products: Essential for hygiene and safety in medical environments, these include items like gloves, masks, and syringes that are in constant demand.
• Diagnostic Tools: Equip medical professionals and patients with necessary tools for regular health monitoring, such as blood pressure cuffs and glucose meters.
• Emergency Medical Supplies: Offer essential products for immediate medical responses, including first aid kits and emergency response gear, vital for urgent care settings.

How much should you charge for medical supplies?

Prices will vary by item. Check market prices to make sure that you’re competitive. After your cost to purchase from the manufacturer, you should aim for a profit margin of about 50%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

If you choose to sell to clinics, hospitals and care facilities, find them on LinkedIn and Google Maps. If you decide to sell directly to your customers, they will likely be an older demographic and on Facebook. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storage facility for your inventory. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Medical Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “medical supplies” or “medical products”, boosts SEO
• Name should allow for expansion, for ex: “Care Connectors” over “Diabetic Supplies Direct”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Medical Supply Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief summary of the medical supply business plan, highlighting its key points and objectives.
• Business Overview: An introduction to the medical supply business, including its mission, vision, and key facts about its establishment.
• Product and Services: A description of the medical supplies and services the business offers, emphasizing their features and benefits.
• Market Analysis: An examination of the medical supply market, including its size, growth potential, and target customer demographics.
• Competitive Analysis: An assessment of competitors in the medical supply industry, identifying strengths, weaknesses, and opportunities.
• Sales and Marketing: A plan for how the business intends to promote and sell its products and services in the market.
• Management Team: An overview of the individuals responsible for leading and managing the medical supply business.
• Operations Plan: Details on how the business will operate, including logistics, suppliers, and day-to-day processes.
• Financial Plan: Projections and analysis of the business’s financial performance, including revenue, expenses, and profitability.
• Appendix: Supplementary information such as market research data, resumes of key team members, or other relevant documentation to support the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to medical supply businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your medical supply business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a medical supply business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Licenses and Permits

Starting a medical supply business requires obtaining a number of licenses and permits from local, state, and federal governments.

Some states require a special license to sell certain types of medical supplies. Check with your state for requirements.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your medical supply business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as DME Works , acctivate , or arbimed , to manage your leads, inventory, invoicing, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Professional Branding — Establish a brand that communicates trustworthiness, reliability, and expertise in the medical field through a professional logo, business cards, and an informative website.
• Website and SEO — Develop a comprehensive website that catalogs your medical products with detailed descriptions and optimize it for SEO to rank for relevant search terms.
• Social Media Engagement — Utilize LinkedIn for B2B networking and Facebook to connect with a broader audience, share product updates, and post industry news.
• Content Marketing — Run a healthcare blog with articles on the latest in medical supplies and technology, and distribute regular email newsletters with updates on new products and offers.
• Video Demonstrations — Create videos that demonstrate the features and benefits of your medical supplies, enhancing product understanding and engagement.
• Trade Shows and Expos — Participate in medical trade shows and expos to display your products, meet potential customers, and strengthen industry connections.
• Product Training Sessions — Provide training for complex equipment, adding value to your offerings and enhancing customer satisfaction.
• Manufacturing Partnerships — Establish strong relationships with manufacturers to ensure access to the latest medical technologies and a reliable product supply.
• Healthcare Provider Collaboration — Work closely with healthcare providers to understand their needs and tailor your product offerings accordingly.
• Loyalty and Referral Programs — Implement loyalty programs offering discounts to regular customers and create a referral program with incentives to encourage customer-driven growth.
• Targeted Advertising — Engage in targeted advertising through online platforms and medical journals to reach healthcare professionals and industry decision-makers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your medical supply business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your medical supply business could be: 

• The best therapeutic devices to help you live to the fullest 
• Discount medical supplies for your assisted living facility
• The most advanced medical supplies and equipment for your patients 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a medical supply business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in medical supplies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in medical supplies. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a medical supply business include:

• Distribution Center Workers – prepare items for shipping
• General Manager – ordering, inventory management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Medical Supply Business – Start Making Money!

The medical supply industry is huge and expected to grow in the coming years as the population ages. You can get a share of the market by starting your own medical supply business. It’s not a difficult business to start, and you can run it from home and make a good living. You just need a manufacturing partner, and you can sell to local health care providers and facilities or offer your products online. 

Now that you know what you need to know about the business, you’re ready to get to work and start your entrepreneurial journey to building a successful medical supply business!

Thanks for sharing your expertise and providing such a valuable resource. Your article is not just informative but also motivational for those looking to make a difference in the medical supply industry. Looking forward to more business insights from your platform. Keep up the fantastic work!

please email the me the full step by step plan

You gave me more interests in the business, Your explanation of the entire process could not be clearer. thank you.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Medical Business Name
• Create a Medical Supply Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Medical Supply Business - Start Making Money!

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• Sample Business Plans
• Medical & Health Care

Medical Equipment Business Plan

If you are planning to start a new manufacturing business, the first thing you will need is a business plan. Use our Lanzor – medical equipment manufacturing business plan example created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new medical equipment manufacturing business, spend as much time as you can reading through some examples of manufacturing business plans.

Reading some sample business plans will give you a good idea of what you’re aiming for, and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this medical equipment business plan example for you to get a good idea about how a perfect manufacturing business plan should look like and what details you will need to include in your stunning business plan.

Medical Equipment Business Plan Example Outline

This is the standard medical equipment manufacturing business plan outline which will cover all important sections that you should include in your business plan.

• Market and Opportunity
• Commercialized Products
• Products Under Development
• Competition
• Competitive Advantages
• Marketing and Distribution
• Frank Martin
• Evgeny Shaman
• Kimberly Patric
• Robert Stoddard
• Board of Directors
• Scientific Advisory Board and Clinical Investigators
• Professional Services
• Projected Revenue
• Projected Net Income
• Coronary Artery Disease (CAD)
• Diagnosing CAD
• Treating CAD
• Catheter-Based Procedures
• SmartFlowTM Console
• SmartFlow CFR/FFR Module
• SmartFlow Multiple lesionTM Module
• SmartFlow PTC Module
• SmartFlow@ Pressure Guide Wire (Consumable Product)
• SmartFlow Renal
• Myocardial Perfusion (Distal Vascular Bed)
• Product Acquisitions
• Intellectual Property
• Number of Cath Labs
• Number of Cam Procedures
• Spending on Oath Lab Equipment
• Patient Base
• Economic Impact
• Market Potential
• Interest in Physiologic Data
• Direct Competitors
• Indirect Competitors
• Summary of Competitive Advantages
• Pricing Strategy
• Sales and Marketing Strategy
• Sales Forecast
• Regulatory Approval
• Reimbursement
• Manufacturing and Distribution
• Market Risks
• Competitive Risks
• R&D Risks
• Legal Risks
• History and Structure
• Office Locations
• Evgeny Shalman
• Dov Gal, D.V.M.
• Gideon Tolkowsky
• Hillel Bachrach
• Shmuel Einav
• Takashi Akasaka
• Rafael Beyar
• Bernard De Bruyne
• Organization Chart
• Key Open Positions
• General Assumptions and Notes
• Revenue Assumptions
• Expense Assumptions
• Summary Income Statement($000)
• Capital Requirements a Use of Proceeds
• Exit Strategy

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After getting started with Upmetrics , you can copy this medical equipment business plan example into your business plan and modify the required information and download your medical equipment business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample medical equipment business plan

Need help writing your business plan from scratch? Here you go;  download our free medical equipment business plan pdf  to start.

It’s a modern business plan template specifically designed for your medical equipment business. Use the example business plan as a guide for writing your own.

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About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Medical Supply Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Medical Supply

Are you about starting a medical supply company and need to write a plan? If YES, here is a detailed sample medical supply business plan template & FREE feasibility report.

If the idea of owning a medical related business sounds good to you, then this is indeed the time to start your own medical supply business, create financial freedom, and be your own master.

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Any known medical practitioner needs specific supplies to do their duties and these equipment need to be manufactured and supplied by a firm.

Businesses that supply these equipment are growing on a daily basis. Below is a sample medical supply business plan template that will help you successfully write yours without much stress.

A Sample Medical Supply Business Plan Template

1. industry overview.

Players in the Medical supplies wholesaling industry purchase medical and surgical equipment, instruments and supplies, store these items at distribution centers, and deliver them to medical practitioners, clinics and hospitals.

A close study of the Medical Supplies Wholesaling industry reveals that revenue has increased steadily as the number of age-related non – elective procedures performed in the united states has increased. Rising product prices have also supported industry growth.

Revenue is projected to rise over the five years to 2022 as healthcare providers continue to invest in new equipment to keep up with growing demand for healthcare services. New product development by medical device manufacturers will also contribute to industry growth by offering new solutions to health issues.

The Medical Supplies Wholesaling industry is indeed a thriving in most countries of the world. In the United States of America, the industry generates over $194 billion annually from more than 13,223 medical supplies wholesaling companies.

The industry is responsible for the employment of over 218,294 people. Experts project that the industry will grow at a 1.9 percent annual rate between 2012 and 2017. The establishments in this industry that have dominant market shares in the United States of America are Cardinal Health Inc. and Owens & Minor Inc.

A recent report published by IBISWORLD shows that the barriers to entering the Medical Supplies Wholesaling industry are moderate. The importance of brand identity is minimal, because customers are concerned more with quality and price.

The low cost of customer switching will further ease the entry of new companies into the market. Switching costs are incidental and associated with changing transportation and communication systems.

Low switching costs encourage greater industry competition because new companies can more easily entice customers away from existing operators. The report also stated that, however, operators experience stringent regulatory controls and relatively high fixed costs , including warehousing technology, transportation equipment and complex machinery.

If you are contemplating starting your own medical supplies business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies. If you get some key factors wrong before starting your any business, then you are likely going to struggle to stay afloat.

2. Executive Summary

Phil Jason® Medical Supplies, Inc. is a registered medical supplies wholesaling business that will be located in one of the busiest streets in Cape Coral – Florida. We settled for Cape Coral because it is one of the top 50 markets in the country for the coveted millennial renter.

An appreciable percentage of current tenants are millennials because of close proximity to employment, retail and recreation hubs.

We have been able to lease a facility that can fit into the kind of standard medical supplies wholesaling business that we intend launching and the facility is located in a corner piece property close to the largest commercial hub in Cape Coral – Florida.

Phil Jason® Medical Supplies, Inc. will supply a wide array of medical and surgical equipment, instruments and supplies from different manufacturers (brands) from the United States and abroad. We are set to services a wide range of clientele in and around Cape Coral – Florida.

We are aware that there are several medical supply wholesaling businesses all around Cape Coral – Florida, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to compete with our competitors.

Phil Jason® Medical Supplies, Inc. will ensure that all our customers are given first class treatment whenever they do business with us. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they grow to. We will ensure that we get our customers involved in the selection of brands that will be in our supply chain.

Phil Jason® Medical Supplies, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.

Phil Jason® Medical Supplies, Inc. is owned by Phil Jason and his immediate family members. Phil Jason has Degree in Pharmacy and an MBA, with over 15 years’ experience in the medical supplies industry, working for some of the leading brands in the United States.

Although the business is launching out by concentrating only in Cape Coral – Florida, but there is a plan to engage in supplies all around major cities in the United States.

3. Our Products and Services

Phil Jason® Medical Supplies, Inc. is in the medical supplies business to service a wide range of clients and of course to make profits, which is why we will make available a wide range of medical and surgical equipment, instruments and supplies from top manufacturing brands in the United States and other countries of the world.

Our product offerings are listed below;

• Nonelectronic medical, surgical, dental and veterinary instruments and apparatus, such as syringes, anesthesia apparatus, blood transfusion equipment, catheters, surgical clamps and medical thermometers, electromedical and electrotherapeutic apparatus, X-ray apparatus
• Surgical appliances
• Surgical instruments
• Hospital beds and other specialized hospital furniture
• Personal safety equipment

4. Our Mission and Vision Statement

• Our vision is to become one of the leading brands in the medical supplies line of business in Florida and to establish a one stop medical supplies wholesaling company in Cape Coral – Florida and other key cities in the United States of America.
• Our mission is to establish a world-class medical supplies wholesaling business that will make available a wide range of medical and surgical equipment from top manufacturing brands at affordable prices to businesses in and around Cape Coral – Florida and other key cities in the United States of America.

Our Business Structure

Our intention of starting a medical supplies wholesaling business is to build a standard company in Cape Coral – Florida. Although our company might not be as big as Cardinal Health Inc. and Owens & Minor Inc. et al, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Accountants/Cashiers
• Sales Agents/Customer Services Executive

Truck and Van Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing 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.
• Defining job positions for recruitment and managing interviewing process
• Carrying 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.

Warehouse Manager:

• Responsible for managing the daily activities in the warehouse
• Ensures that proper records of medical and surgical equipment are kept and warehouse does not run out of products
• Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
• Control medical equipment and instrument distribution and supply chain inventory
• Supervise the workforce in the warehouse.
• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Help to ensure consistent quality of medical and surgical equipment from different manufacturers are purchased and retailed in good price
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

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
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
• Make suggestions and encourage purchase of products
• Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Assists in loading and unloading goods/medical supplies
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Assists the transport and logistics manager in planning their route according to a pick – up and delivery schedule.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Reports defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several medical supplies wholesaling businesses all over Cape Coral and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Phil Jason® Medical Supplies, Inc. employed the services of an expert HR and Business Analyst with bias in distribution to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Phil Jason® Medical Supplies, Inc.;

Our business is located in a city with heavy medical activities and also, we can boast of having good business relationship with top manufacturers in the medical and surgical equipment manufacturing industry in and around Cape Coral – Florida.

A major weakness that may count against us is the fact that we are a new medical supplies wholesaling business in Cape Coral – Florida and we don’t have the financial capacity to compete with multi – million dollars medical supplies wholesaling outlets like Cardinal Health Inc. and Owens & Minor Inc. when it comes to supplying at a rock bottom prices.

• Opportunities:

The fact that we are going to be operating our business close to the largest commercial hub in Cape Coral – Florida provides us with unlimited opportunities to sell our medical and surgical equipment to a large number of hospitals and other medical facilities.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they contact us; we are well positioned to take on the opportunities that will come our way.

A major threat that we are going to face as a medical supply business operating in the United States of America is uncertainty in government policies as it relates to price control and influx of medical and surgical equipment manufactured outside the United States of America.

When the prices charged by manufacturers to wholesalers’ declines, wholesalers typically have to reduce their selling prices to retailers. This results in subdued revenue growth for wholesalers, even if demand expands.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with medical supply business, you will quite agree that most medical supply businesses usually locate their warehouse close to medical facilities; it enables them make quick sales.

So also, the need to meet up with international best practices and conforming with the regulatory authority will result in revenue growth, but profit margins will stagnate as medical supplies wholesaling businesses keep prices low to attract more sales amid growing competition.

A close watch on the medical supplies business activities reveals that the industry has indeed done pretty well due to the strong demand for latest and efficient medical and surgical equipment, instruments and supplies. As part of marketing strategies, medical supplies wholesaling companies engage in massive clearance sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

We have positioned our medical supplies wholesaling business to service businesses in the healthcare industry in and around Cape Coral – Florida and every other location where franchise cum supplier will be located all over key cities in the United States of America and Canada.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to supply a wide range of medical and surgical equipment, instruments and supplies to the following customers;

• Medical laboratories
• Medical colleges
• Dental clinics
• Optical centers
• Medical and surgical equipment retailers

Our Competitive Advantage

A close study of the medical supplies wholesaling industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other leading businesses in Cape Coral – Florida.

One thing is certain; we will ensure that we have a wide range of medical and surgical equipment, instruments and supplies from leading manufacturers available in our showroom and warehouse at all times. It will be difficult for customers to visit our showroom and warehouse and not see the type of equipment they are looking for.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Phil Jason® Medical Supplies, Inc. is in business to retail a wide range of medical and surgical equipment, instruments and supplies in and around Cape Coral – Florida. We are in the industry to maximize profits and we are going to ensure that we achieve our business goals and objectives. Phil Jason® Medical Supplies, Inc. will generate income by supplying the following products;

10. Sales Forecast

One thing is certain when it comes to medical supplies wholesaling business, if your showroom and warehouse are stocked with various types of medical and surgical equipment and is centrally positioned, you will always attract customers cum sales.

We are well positioned to take on the available market in Cape Coral – Florida and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base.

We have been able to examine the medical supplies wholesaling industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Phil Jason® Medical Supplies, Inc. it is based on the location of our business and other factors as it relates to medical supplies wholesaling startups in the United States;

• First Fiscal Year (FY1): $450,000
• Second Fiscal Year (FY2): $950,000
• Third Fiscal Year (FY3): $1.850 Million

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 retailing same 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.

• Marketing Strategy and Sales Strategy

Before choosing a location for Phil Jason® Medical Supplies, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for hospitals and healthcare facilities in and around Cape Coral – Florida.

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 good understanding of the medical supplies wholesaling industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Cape Coral – Florida.

In summary, Phil Jason® Medical Supplies, Inc. will adopt the following sales and marketing approach to win customers over;

• Introduce our medical supplies wholesaling by sending introductory letters alongside our brochure to hospitals, dental clinics, optical centers, medical laboratories, medical and surgical equipment retailers and key stakeholders in Cape Coral – Florida
• Ensure that we have a wide range of medical and surgical equipment, instruments and supplies from different brands at all times.
• Make use of attractive handbills to create awareness and also to give direction to our showroom
• Position our signage / flexi banners at strategic places around Cape Coral – Florida
• Create a loyalty plan that will enable us reward our regular customers
• 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 to network and market our products

11. Publicity and Advertising Strategy

Despite the fact that our medical supply showroom is well located, we will still go ahead to intensify publicity for the business.

Phil Jason® Medical Supplies, Inc. has a long-term plan of opening outlets in various locations all around Florida and key cities in the United States, which is why we will deliberately build our brand to be well accepted in Cape Coral before venturing out. Here are the platforms we intend leveraging on to promote and advertise Phil Jason® Medical Supplies, Inc.;

• Place adverts on community based newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Cape Coral – Florida
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact hospitals, dental clinics, optical center, medical laboratories and other health facilities by calling them up and informing them of Phil Jason® Medical Supplies, Inc. and the products we sell
• Advertise our medical supplies wholesaling business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and distribution vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to a medical supplies wholesaling business, which is why big players like Cardinal Health Inc. and Owens & Minor Inc. and co will attract loads of clients.

We know we don’t have the capacity to compete with market leaders in the industry, but we will ensure that the prices and quality of all the medical and surgical instruments and supplies that are available in our supply chain are competitive with what is obtainable in the industry.

• Payment Options

The payment policy adopted by Phil Jason® Medical Supplies, Inc. is all inclusive because we are quite 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 Phil Jason® Medical Supplies, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for their purchases without any stress on their part.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have come up with a detailed budget for establishing a standard medical supplies business and here are the key areas where we will spend our start-up 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 the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Phil Jason® Medical Supplies, 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 cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for warehouse remodeling (construction of racks and shelves) – $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 cost for start-up inventory (stocking with a wide range of medical and surgical equipment, instruments and supplies from different manufacturing brands) – $550,000
• The cost for the purchase of distribution trucks – $29,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of 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 cost of launching a website: $600
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our medical supplies wholesaling business in Cape Coral – Florida.

Generating Funds/Startup Capital for Phil Jason® Medical Supplies, Inc.

Phil Jason® Medical Supplies, Inc. is a private registered business that is solely owned and financed by Phil Jason and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 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.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Phil Jason® Medical Supplies, Inc. is to ensure that we continue to make available a wide range of medical and surgical equipment, deliver quality services, and improvise on how to do things faster and cheaper. We are not going to relent in providing a conducive environment for our workers.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our supply chain. We will not waste time in adopting new technology, best practices and diversifying our services.

Phil Jason® Medical Supplies, 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 retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. 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

• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Compilation of our list of products that will be available in our supply chain: Completed
• Purchase of supply trucks and vans: Completed .
• Establishing business relationship with vendors – manufacturers and suppliers of medical and surgical equipment, instruments and supplies : In Progress

Medical Device Business Plan Template

Written by Dave Lavinsky

Medical Device Business Plan

You’ve come to the right place to create your Medical Device business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Medical Device businesses.

Below is a template to help you create each section of your Medical Device business plan.

Executive Summary

Business overview.

MediTech LLC is a medical device company that sells Class I medical devices to hospitals, clinics, and other establishments in the medical industry. We manufacture a long list of devices including surgical instruments, syringes, and bandages. We know that patients can’t receive quality care if medical professionals don’t have good tools. Therefore, our mission is to provide the best medical devices in the industry so that all hospitals and clinics can provide the best care possible.

MediTech LLC is founded by Sarah Nelson. Sarah has considerable experience as a surgeon and used hundreds of medical devices throughout her career. She knows exactly what it takes to make high quality medical products and has made it her mission to create the best medical devices in the industry. Her expertise and knowledge of the industry will give us a considerable advantage over the competition.

Product Offering

MediTech LLC sells a long list of Class I medical devices. Class I medical devices are low risk devices and are unlikely to cause any harm to users. These include bandages, surgical tools, bedpans, gloves, and surgical masks. Our product list will grow and change depending on which devices are in high demand.

Customer Focus

MediTech LLC will primarily serve hospitals, clinics, and other medical organizations. Some products will be sold in stores to the public, including bandages, gloves, and face masks.

Management Team

MediTech LLC was founded by Sarah Nelson, a licensed and experienced surgeon. While working in the medical industry, she was frustrated by the quality of the medical devices she used. Her hospital routinely purchases low quality devices to save costs and this would affect the quality of her care. She researched what it would take to make higher quality versions of these products and decided to start a company that provides better quality devices for an affordable cost.

Success Factors

MediTech LLC will be able to achieve success by offering the following competitive advantages:

• We will provide the best quality medical devices in the industry. Our devices will help improve the quality of care that our clients give their patients.
• MediTech will price all of its products moderately so all of our clients and customers can afford them.
• Our founder has years of experience as a surgeon in the medical industry, bringing a vast amount of medical knowledge to the table. This will help us create perfect medical devices and products that all medical professionals will be eager to use.

Financial Highlights

MediTech LLC is currently seeking $1,400,000 to launch. The funding will be dedicated to the facility build out, purchase of initial equipment, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Facility design/build: $500,000
• Equipment: $200,000
• Six months of overhead expenses (payroll, rent, utilities): $400,00
• Initial supplies and inventory: $100,000
• Marketing and advertising: $100,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for MediTech LLC.

Company Overview

Who is meditech llc.

MediTech LLC sells high-quality Class I medical devices to the medical industry. Our management team knows from experience that patients can’t receive the best care possible if physicians aren’t using the best tools. However, many medical organizations order lower quality devices in order to save on costs. At MediTech LLC, we are committed to making the best medical devices in the industry that are more affordable than the competition.

  MediTech LLC produces a long list of medical devices for the medical industry. These include bandages, surgical masks, gloves, surgical instruments, and bedpans. All of our products are Class I devices, meaning they present a low risk to the user.

MediTech LLC is founded by Sarah Nelson. Sarah has considerable experience as a surgeon and used hundreds of medical devices throughout her career. She knows exactly what it takes to make high quality medical products and has made it her mission to create the best medical devices in the industry. Her expertise and connections in the industry will ensure that MediTech LLC achieves its mission.

MediTech LLC History

Sarah Nelson founded and incorporated MediTech LLC as an LLC in June 2023. Though the company is currently running out of a small rented office, it will move to a large warehouse once the lease is finalized.

Since incorporation, MediTech LLC has achieved the following milestones:

• Developed the company’s name, logo, and website
• Determined equipment and fixture requirements
• Identified and established relationships with potential clients and suppliers
• Begun recruiting key employees

MediTech LLC Services

MediTech LLC manufactures and sells Class I medical devices. These include (but are not limited to) the following:

• Surgical instruments
• Non-electric wheelchairs
• Stethoscopes
• Surgical masks

Industry Analysis

The medical industry is dependent on the access to high-quality medical devices and products. From gloves and masks to EKG machines, every device used in the care of patients needs to be high quality and always in working order. Devices that are poor quality or don’t work properly can cause significant problems when being used to care for patients.

Medical devices are categorized into three classes. Class I devices are devices that pose very little risk to the user. These items include bandages, surgical instruments, and gloves. Class II devices are intermediate risk devices. These include intravenous pumps and CT machines. Class III devices are high risk and require a great amount of regulation. These devices are also critical to sustaining life. These include pacemakers and brain stimulators.

According to Fortune Business Insights, the medical device industry is valued at $539 billion and is expected to grow at a CAGR of 5.9%. Medical devices are constantly in high demand and are essential for the success of the medical industry. Therefore, now is a great time to start a new medical device company.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

The company will primarily target the following customer segments:

• Medical clinics

Competitive Analysis

Direct and indirect competitors.

MediTech LLC will face competition from other companies with similar business profiles. A description of each competitor company is below.

Smith & Smith

Smith & Smith is a large corporation that sells thousands of products, including cosmetics, hygiene products, and certain medical devices. The medical devices they primarily produce include bandages, ointments, and low risk surgical and physician instruments. They sell many of their products to the general public (such as simple wound care devices) but also sell some devices to the medical industry. They will be a major competitor since they sell primarily Class I devices. However, they currently do not produce as many medical devices as MediTech LLC plans to produce, which gives us an advantage in the market.

MedMonitor is a medical device company that manufactures Class III medical devices. Some of their products include breast implants, pacemakers, implanted prosthetics, and defibrillators. They do sell some Class I and Class II products, such as gloves, wound care items, and surgical masks, but they are not a major manufacturer of these products. As such, we expect that MedMonitor will only be a minor competitor in the market.

MedSource is the source for most of the medical industry’s Class II medical devices. They produce a long list of devices including syringes, testing kits, contact lenses, and blood pressure cuffs. They do produce some products that can be categorized as Class I devices, but their product list does not overlap too much with ours. As such, we expect that MedSource will only be a minor competitor.

Competitive Advantage

MediTech LLC enjoys several advantages over its competitors. These advantages include the following:

• Management : Sarah Nelson has been extremely successful working in the medical industry and will be able to use her previous experience to design and manufacture the best medical devices in the industry.
• Relationships : Sarah knows many of the local leaders, business managers, and other influencers in the medical industry. These relationships will help her have access to quality materials and create an initial clientbase.
• Affordability : Thanks to Sarah’s connections within the industry, we are able to access high-quality materials for our products for an affordable cost. As a result, we can price all our products more moderately than the competition.

Marketing Plan

Brand & value proposition.

The MediTech LLC brand will focus on the company’s unique value proposition:

• High quality medical devices
• Affordable pricing
• Client-focused service

Promotions Strategy

The promotions strategy for MediTech LLC is as follows:

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. MediTech LLC will use social media to develop engaging content in terms of the company’s product offerings. Engaging with prospective consumers and businesses on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Website/SEO

MediTech LLC will invest in developing a professional website that displays all of the products offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Direct Mail

MediTech LLC will blanket businesses with direct mail pieces. These pieces will provide general information on MediTech LLC, offer discounts, and/or provide other incentives for companies to buy our products.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. MediTech LLC will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

MediTech LLC’s pricing will be moderate, so clients feel they receive great value when purchasing our products.

Operations Plan

The following will be the operations plan for MediTech LLC. Operation Functions:

• Sarah Nelson will be the CEO of MediTech LLC. She will oversee the general operations and executive aspects of the business.
• Sarah is joined by Rebecca Smith who will act as the warehouse manager. She will train and manage the staff as well as oversee general production of our products.
• Sarah will hire an Administrative Assistant, Marketing Manager, and Accountant, to handle the administrative, marketing, and bookkeeping functions of the company.
• Sarah will also hire several employees to manufacture our products and maintain the equipment and machinery.

Milestones:

MediTech LLC will have the following milestones completed in the next six months.

• 02/202X Finalize lease agreement
• 03/202X Design and build out MediTech LLC
• 04/202X Hire and train initial staff
• 05/202X Kickoff of promotional campaign
• 06/202X Launch MediTech LLC
• 07/202X Reach break-even

Sarah Nelson is a former surgeon who is familiar with the most popular medical devices in the industry. She knows better than anyone that low quality products means low quality care for patients. As a surgeon, she was often disappointed with the quality of the medical devices she used. Her hospital would routinely choose the cheapest options to save costs. This resulted in more problems and low quality care being delivered to her patients. She is now passionate about starting her own company that provides high quality medical devices for an affordable cost.

Though Sarah has never run a business of her own, she has worked in the medical industry long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. She will also hire several professionals to help her run other aspects of the business she is unfamiliar with.

Financial Plan

Key revenue & costs.

The key revenues for MediTech LLC will come from the sale of our medical devices and products.

The major cost drivers for the company will include manufacturing costs, overhead expenses, labor expenses, and marketing costs.

Funding Requirements and Use of Funds

• Six months of overhead expenses (payroll, rent, utilities): $400,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of wholesale contracts:
• Year 5: 100
• Average order value: $5,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Medical Device Business Plan FAQs

What is a medical device business plan.

A medical device business plan is a plan to start and/or grow your medical device business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Medical Device business plan using our Medical Device Business Plan Template here .

What are the Main Types of Medical Device Businesses? 

There are a number of different kinds of medical device businesses , some examples include: Class 1 medical device, Class 2 medical device, and Class 3 medical device.

How Do You Get Funding for Your Medical Device Business Plan?

Medical Device businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Medical Device Business?

Starting a medical device business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Medical Device Business Plan - The first step in starting a business is to create a detailed medical device business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your medical device business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your medical device business is in compliance with local laws.

3. Register Your Medical Device Business - Once you have chosen a legal structure, the next step is to register your medical device business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your medical device business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Medical Device Equipment & Supplies - In order to start your medical device business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your medical device business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful medical device business:

• How to Start a Medical Device Company

BUSINESS STRATEGIES

How to create a medical supply business plan

• Annabelle Amery
• Sep 5, 2023

When starting a business in the medical supply industry, creating a comprehensive and clear business plan is crucial to lay a strong foundation for success. This plan serves as a roadmap that guides the business owner through key aspects of the business's development and growth.

Crafting a well-structured medical supply business plan is not only essential for navigating the complexities of the medical industry, but also attracting potential investors, securing financing and establishing credibility.

Ultimately, a well-crafted medical supply business plan forms the bedrock of starting a successful medical supply venture, guiding the business toward achieving its goals in a dynamic and critical sector.

Looking to create a online business and get started with e-commerce ? Take Wix’s eCommerce website builder for a spin.

Benefits of starting a medical supply business plan

Writing a comprehensive business plan offers numerous advantages for any type of business . As it regards your medical supply business, a business plan is helpful for:

Attracting funding: A well-crafted business plan acts as a powerful tool to attract potential investors and raise money for starting a medical supply business. Investors want to see a clear understanding of the market potential, revenue projections and strategies for growth. A comprehensive plan demonstrates the business owner's commitment and professionalism, increasing the likelihood of obtaining financial support.

Resource planning: Starting a medical supply business involves a thorough understanding of the resources, supplies and staff needed to establish and operate the business smoothly. A detailed business plan forces you to research and outline the necessary equipment, regulatory compliance, logistics, staffing and partnerships. This clarity ensures that all aspects of your business are considered and addressed adequately.

Success planning: Creating a business plan enables business owners to develop a clear roadmap for success when starting a medical supply business. The plan outlines objectives, strategies and key performance indicators that guide your business's growth trajectory. It helps in setting measurable goals and tracking progress, allowing adjustments to be made to stay on course.

Identifying challenges and opportunities: A thorough market analysis within the business plan helps identify trends, challenges and opportunities in the medical supply industry. Understanding the competitive landscape, customer needs and industry shifts allows the business to tailor its offerings to meet market demands effectively.

Sustainability: Creating a financial plan within the business plan offers insights into revenue projections, expenses and profitability. It ensures that the medical supply business is financially viable and can sustain its operations in the long run. This plan also helps in managing cash flow and making informed decisions about budget allocation.

How to write a medical supply business plan in 6 steps

In the sections below, we’ll guide you through six essential steps to help you craft a comprehensive medical supply business plan that sets the stage for a thriving venture in the healthcare industry.

Executive summary

Business and domain names

Market analysis and research

Operations plan, marketing and advertising plan, financial plan, 01. executive summary.

The executive summary is a succinct overview of your medical supply business plan, providing a snapshot of the entire document. It encapsulates the essence of your business, its objectives, strategies and key points. This section is crucial as it often serves as the first impression for potential investors and stakeholders.

To craft a clear executive summary for your medical supply business, focus on introducing your medical supply business, its mission and its unique value proposition in the industry. Summarize the potential market demand for medical supplies. Then, highlight the types of medical supplies your business will offer, emphasizing any innovative or specialized items.

Describe what sets your medical supply business apart from competitors, such as quality, pricing, distribution network or customer service. You should also provide a glimpse into your revenue projections and growth potential, showcasing the financial attractiveness of your venture. Finally mention the initial funding required to launch your medical supply business and support its early operations.

Here’s an example of an executive summary for a medical supply venture: “MediAid Supplies is a pioneering medical supply business committed to providing healthcare professionals and facilities with the essential tools they need to deliver exceptional patient care. Our mission is to bridge the gap between quality medical supplies and their availability, ensuring that healthcare providers can focus on their vital roles without concerns about procurement challenges.

In an ever-evolving healthcare landscape, MediAid Supplies emerges as a reliable partner, offering a wide range of medical equipment, devices, and consumables. Our dedication to quality, affordability, and timely distribution positions us as a leader in the medical supply industry.

MediAid Supplies anticipates substantial revenue growth by addressing the escalating demand for reliable medical supplies and our commitment to unparalleled customer service. To achieve our vision, we are seeking strategic partnerships and investments that will support our expansion and outreach efforts.”

02. Business and domain names

Selecting a strong business name is crucial for a medical supply business to establish brand identity, build trust, and resonate with industry stakeholders. A well-chosen name should reflect professionalism, reliability and the scope of medical supplies offered. It's essential to ensure the chosen name is not already trademarked and is available for registration.

Using a business name generator can provide inspiration and generate creative ideas for your medical supply business name. Once the company name is finalized, securing a matching domain name for your business website is equally important in today's digital age.

Note: once you’ve settled on a business name and decided on the best structure for your business, you’ll want to register your business .

03. Market analysis and research

Incorporating a comprehensive market analysis and research section in your medical supply business plan is crucial. This section delves into understanding your target market, competitors and industry trends. It helps you craft effective marketing strategies and make informed business decisions.

04. Operations plan

The operations plan outlines practical aspects, such as the location of your medical supply business, premises design, equipment procurement, inventory management and staffing needs. It ensures you have a clear roadmap for effectively managing daily operations.

05. Marketing and advertising plan

The marketing and advertising plan lays out strategies and campaigns to effectively promote your medical supply business. It should highlight strategies such as digital marketing, trade shows, partnerships with healthcare facilities and campaigns that showcase the quality and reliability of your supplies.

Remember to keep your branding consistent no matter where you promote your business. Start by learning how to make a medical logo and then create your own with the use of a medical logo maker .

06. Financial plan

The financial plan is a critical component of a business plan for a medical supply business. It provides a comprehensive overview of the financial aspects of your business, including startup costs, funding sources, revenue projections, expenses and the time frame for reaching profitability. This section helps you demonstrate the financial viability of your business and assists potential investors and lenders in evaluating the potential return on their investment.

Startup costs and funding

Outline the initial investment required to launch your medical supply business. This includes expenses, such as:

Costs associated with procuring the initial inventory of medical supplies, equipment and devices.

Costs for leasing or purchasing a suitable location, interior design and furnishing.

Expenses for business registration, licenses, permits and compliance with industry regulations. For example, starting an LLC where costs vary between states.

Costs for creating a strong brand presence, including logo design, website development and marketing campaigns. Learn more about how to make a medical website.

Estimate costs for utilities, insurance, salaries and any other recurring expenses for the initial period.

Funding sources

Identify the sources of funding you intend to utilize to cover your startup costs. These sources may include:

Personal savings: Investment from your personal savings or assets.

Bank loans: Securing loans from financial institutions.

Investors: Attracting equity investors who provide capital in exchange for ownership.

Partnerships: Partnering with other businesses or individuals to pool resources.

Revenue projections

Provide an estimate of your medical supply business's potential revenue over a specific period. Consider factors like the average transaction value, volume of sales and the pricing strategy for your products. Projections can be broken down by months or years to give a clear understanding of your growth trajectory.

Expenses and costs

Detail the anticipated expenses that your medical supply business will incur. Categorize them into fixed costs (rent, utilities, salaries) and variable costs (inventory, marketing, shipping). This breakdown helps you assess your business's cost structure and manage cash flow effectively.

Profit and loss projection

Present a profit and loss (P&L) projection that outlines your expected revenue and expenses over a specific period. The P&L statement calculates your net income or loss by subtracting total expenses from total revenue. This projection provides a clear picture of your business's financial health and potential profitability.

Break-even analysis

Perform a break-even analysis to determine the point at which your medical supply business's total revenue equals its total costs. This analysis helps you understand the minimum level of sales required to cover your expenses and begin generating profits.

Time frame for profitability

Indicate the expected time frame for your medical supply business to become profitable. This depends on various factors, including market demand, pricing strategy, marketing efforts and operational efficiency. Providing a realistic estimate helps stakeholders understand when they can expect a return on their investment.

Cash flow forecast

Prepare a cash flow forecast to track the inflows and outflows of cash in your medical supply business. This forecast helps you manage liquidity, plan for expenses and ensure you have adequate funds to cover operational needs.

Medical supply business plan example: MediCare Supplies

This draft business plan provides a really great starting point for creating your very own medical supply business plan. Remember to customize the content to your specific goals, target market, and location. Make sure to regularly review and update your business plan as your business grows to ensure its relevance and future success.

MediCare Supplies is a forward-thinking medical supply business aimed at providing high-quality medical equipment, devices, and consumables to healthcare facilities and professionals. Our mission is to enhance patient care by ensuring seamless access to reliable medical supplies. Leveraging our industry expertise and commitment to excellence, we aspire to become a trusted partner in the healthcare sector.

Company and domain names

Company name: MediCare Supplies

Domain name: www.medicaresupplies.com

Our chosen company name, "MediCare Supplies," signifies our dedication to supplying essential medical resources that contribute to the well-being of patients. The corresponding domain name, www.medicaresupplies.com, reinforces our commitment to providing a convenient online platform for healthcare professionals to access our products and services.

Our thorough market analysis indicates a growing demand for reliable medical supplies due to the expanding healthcare industry. Research reveals the need for a comprehensive supplier that offers a wide range of high-quality products. Our target audience includes hospitals, clinics, nursing homes and private practitioners seeking efficient procurement solutions.

Location: Strategically situated near medical facilities to facilitate timely deliveries and direct engagement.

Premises: A well-organized and efficient warehouse designed to accommodate our inventory and streamline operations.

Equipment: Cutting-edge inventory management systems and logistics software to optimize distribution and minimize errors.

Staffing: A team of experienced professionals in procurement, logistics and customer service to ensure seamless operations and client satisfaction.

Our marketing plan includes:

Digital presence: Making a website , optimizing it for search engines and maintaining active social media accounts to reach a wider audience.

Strategic partnerships: Collaborating with healthcare associations, medical facilities and industry influencers to increase brand visibility and credibility.

Educational content: Sharing informative blog posts, videos and webinars that provide insights into medical supply trends and best practices.

Email campaigns: Regular newsletters and updates to keep customers informed about new products, promotions and industry news.

Startup costs and funding:

Inventory procurement: $100,000

Warehouse setup: $30,000

Website development and branding: $20,000

Initial marketing: $15,000

Operational expenses (1st Quarter): $25,000

Total startup costs: $190,000

Funding sources:

Personal savings: $60,000

Bank loan: $100,000

Investment from partners: $30,000

Total funding: $190,000

Revenue projections:

Year 1: $500,000

Year 2: $800,000

Year 3: $1,200,000

Operating expenses:

Rent and utilities: $2,500 per month

Employee salaries: $100,000 per year

Marketing and advertising: $20,000 per year

Inventory restocking: $150,000 per year

Insurance and compliance: $5,000 per year

Profit and loss projection:

Year 1 net profit: Variable based on revenue and expenses

Break-even analysis:

Fixed costs (annual): total fixed costs (rent, salaries, etc.)

Average revenue per month: estimate average monthly revenue

Break-even point: fixed costs / average revenue per month

Time frame for profitability: MediCare Supplies anticipates achieving profitability within the first year of operation by executing effective marketing strategies and catering to the growing demand for reliable medical supplies.

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Medical Supplies Business Plan Template & Guidebook

Starting a medical supplies business is an excellent way to serve a growing segment of the health industry and become your own boss in the process. With the #1 Medical Supplies Business Plan Template & Guidebook, you can create a step-by-step plan to help you launch and grow your business. From researching the market to setting goals and objectives and finding the right legal structure, this guidebook takes you through every step of the journey so that you can become a success in medical supplies.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Medical Supplies Business [11 Steps]
• 10+ Best & Profitable Medical Supplies Business Ideas [2023]

How to Write a Medical Supplies Business Plan in 7 Steps:

1. describe the purpose of your medical supplies business..

The first step to writing your business plan is to describe the purpose of your medical supplies business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a medical supplies business:

Our mission is to provide effective, reliable, and affordable medical supplies and services to both individuals and organizations, empowering them to confidently manage their own health and wellness. By delivering high-quality products and services, we strive to improve the quality of life of our customers.

2. Products & Services Offered by Your Medical Supplies Business.

The next step is to outline your products and services for your medical supplies business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your medical supplies business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your medical supplies business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your medical supplies business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a medical supplies business?

• Business license
• Medical Supplies
• Computers and other office equipment
• Business insurance
• Employee payroll software
• Point-of-sale system for tracking orders and inventory levels
• Accounting software to manage accounts receivable, accounts payable and payroll
• Certifications or other credentials required to operate a medical supplies business

5. Management & Organization of Your Medical Supplies Business.

The second part of your medical supplies business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your medical supplies business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Medical Supplies Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a medical supplies business varies based on many different variables, but below are a few different types of startup costs for a medical supplies business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your medical supplies business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your medical supplies business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your medical supplies business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Medical Supplies Business Plans:

Why do you need a business plan for a medical supplies business.

A business plan for a medical supplies business is needed to help plan operational and financial strategies, set goals and objectives, gain investor backing or financing, and act as a roadmap for the future of the business. It outlines the vision and goals of the business, the market it operates in, a detailed SWOT analysis, an evaluation of potential competitors, strategies for marketing and sales, financial projections, how the company will be structured and managed, profit margins, staffing requirements and other critical elements to ensure successful operations.

Who should you ask for help with your medical supplies business plan?

The best person to ask for help with a medical supplies business plan is an experienced business consultant or mentor who has experience in the medical supplies industry, as they will be best placed to provide you with expert advice and guidance. Additionally, you could seek advice from your local chamber of commerce or small business association, as they may be able to provide resources and insights.

Can you write a medical supplies business plan yourself?

Yes, it is possible to write a medical supplies business plan yourself. However, it is highly recommended to consult with an experienced professional who can provide guidance and support throughout the process. Additionally, there are a number of resources available online that can provide helpful tips, advice and information on writing a business plan, creating a financial plan, and understanding the legal aspects of running a medical supplies business.

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Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

How to Start a Medical Supply Business

Starting a medical supply business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful medical supply business.

Importantly, a critical step in starting a medical supply business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Medical Supply Business :

• Choose the Name for Your Medical Supply Business
• Develop Your Medical Supply Business Plan
• Choose the Legal Structure for Your Medical Supply Business
• Secure Startup Funding for Your Medical Supply Business (If Needed)
• Secure a Location for Your Business
• Register Your Medical Supply Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Medical Supply Business
• Buy or Lease the Right Medical Supply Business Equipment
• Develop YourMedical Supply Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Medical Supply Business
• Open for Business

1. Choose the Name for Your Medical Supply Business

The first step to starting a medical supply business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own medical supply business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your medical supply business.

2. Develop Your Medical Supply Business Plan

One of the most important steps in starting a medical supply business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your medical supply business.
• Company Overview – this section tells the reader about the history of your medical supply business and what type of medical business you operate. For example, are you a medical equipment retailer, wholesale distributor, or online medical supply store?
• Industry Analysis – here you will document key information about the health care industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your medical supply business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What are the startup costs?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your medical supply business.

Next you need to choose a legal business structure for your medical supplies business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the medical equipment business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a medical supply business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a medical supply business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a medical supply business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your medical supply business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Medical Supply Business (If Needed)

In developing your medical supply business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a medical supply business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a medical supply business that they believe has high potential for growth.

5. Secure a Location for Your Business

There are a few things to consider when looking for a location for your medical equipment business. First, you’ll want to make sure the location is accessible and convenient for your customers. You’ll also need to have enough space to store your inventory and equipment. Finally, it’s important to find a location that is affordable. 

6. Register Your Medical Supply Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your medical supply business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your medical supply business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

You will need a business license, a permit to operate as a medical supply business, and a permit to sell medical supplies. You may also need a sales tax permit. Check with your local business licensing office to find out what licenses and permits are required in your area.

10. Get Business Insurance for Your Medical Supply Business

The type of insurance you need to operate a medical supply business depends on the scope of the operation. 

Some business insurance policies you should consider for your medical supply business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Medical Supply Business Equipment

Medical supply companies need essential office equipment, such as computers, phones, printers, and fax machines. You may require other equipment depending on the scope of your operation. For instance, if you operate a warehouse for wholesale distribution, you may need a forklift to move inventory around. If you deliver medical supplies, you’ll need a vehicle for transport. It’s important to research the specific equipment you need to run your business.

12. Develop Your Medical Supply Business Marketing Materials

Marketing materials will be required to attract and retain customers to your medical supply business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your medical supply business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional medical supply business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your medical supply business.

13. Purchase and Setup the Software Needed to Run Your Medical Supply Business

To run a medical supply business, you need software to manage inventory, track sales, and manage customer relationships. You’ll also need accounting software to manage finances. There are many options available for medical supply business software. Some software companies offer all-in-one programs made specifically for medical supply stores. So, with a bit of research, you should be able to find one that suits your needs. 

14. Open for Business

You are now ready to open your medical supply business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Medical Supply Business FAQs

Is it hard to start a medical supply business.

No, it’s not too difficult to start a medical supply business. However, it does require some basic knowledge and understanding of the industry. The most important thing you'll need to get started is a good business plan.

How can I start a medical supply business with no experience?

The best way to start a medical supply business with no experience is to do some research. Learn about the industry, what products are in demand, and what prices to charge. You can also join an industry organization or attend trade shows to learn more about the business. You may want to consider working for a medical supply company and network with medical professionals before starting your own business. This will give you a chance to learn about the industry and gain some experience. Finally, create a business plan and secure financing before starting your business.

What type of medical supply business is most profitable?

The most profitable type of medical supply business is one that manufactures and distributes disposable medical supplies. These large medical supply companies can be exceptionally lucrative because there is a constant demand for their products and they typically have low overhead costs.

How much does it cost to start a medical supply business?

To start a small medical supply business, it will cost you approximately $5,000-$10,000. This includes the cost of setting up your business, getting inventory, and marketing your new business. Costs will be greater for a larger operation.

What are the ongoing expenses for a medical supply business?

Medical supply businesses have a few common ongoing expenses. The most significant expense is the cost of the supplies themselves. This can include anything from bandages and gauze to surgical equipment. Medical supply businesses must also account for the cost of delivering or shipping their supplies. In addition, these businesses often pay for ongoing advertising and marketing to make sure their products are seen by potential customers.

How does a medical supply business make money?

Medical supply businesses make money by selling products to hospitals, doctors' offices, and other medical facilities. They also make money by providing services such as equipment rentals and repairs. Some business owners also earn by taking their medical supply business online.

Is owning a medical supply business profitable?

A medical supply business can be profitable because it meets a fundamental human need. People will always need medical supplies, whether it is for themselves or for a loved one. Additionally, the demand for medical supplies is growing as the population ages and more people require treatment for chronic illnesses.

Why do medical supply businesses fail?

There are many reasons medical supply businesses can fail. A common one is that the company doesn’t understand the needs of its target market and lacks the right products and services to meet those needs. Additionally, many businesses do not have a clear marketing plan or strategy, which can doom them to fail.

Other Helpful Business Plan Articles & Templates

Step-by-Step Guide to Starting a Home Medical Equipment Business

They say that necessity is the mother of all inventions, don't they? In the rapidly evolving and complex field of health care, one necessity that has become increasingly clear is the need for reliable, high-quality home medical equipment (HME). So, if you've been pondering about starting a Home Medical Equipment business, you're onto something promising!

Critical points to remember: - Home Medical Equipment business specializes in providing necessary healthcare-related items for use at home over the long term. - The market for home-use equipment such as wheelchairs, glucose monitors, hospital beds, and more has never been more crucial. - Setting up an HME business involves careful planning, understanding regulatory frameworks, and strategic business tactics.

As we at ProMed DME know from experience, running an HME business can be a fulfilling venture both economically and emotionally, contributing to improving patients' lives. Nevertheless, it's not a walk in the park. This business requires careful navigation of multiple processes, maintaining operational efficiency, and keeping a focus on customer satisfaction and business growth.

Are you intimidated already? Don't be! Continue reading to discover the vital steps in setting up your own HME business and how to overcome common challenges. Our goal is to help you reap high returns and accomplish immense satisfaction as you enhance the lives of your patients.

Understanding the Home Medical Equipment Business

To successfully launch your home medical equipment (HME) business, you need a solid understanding of the industry. So, let's start by defining what a HME business is, why it's a profitable venture, and the existing demand for HME.

What is a Home Medical Equipment Business?

A HME business is a company that specializes in providing healthcare-related items intended for use at home over an extended period. These items range from wheelchairs, glucose monitors, hospital beds to nebulizers, and more. The primary role of a HME business is to deliver these essential items to patients, often coordinating closely with healthcare providers to ensure patients receive the correct equipment for their specific needs. At ProMed DME , we also manage the logistics, such as shipping and handling, and provide customer support services for any issues or concerns our customers might have.

Why is the Home Medical Equipment Business Profitable?

The HME business is profitable due to the increasing demand for medical support as our society grows older. As Mike Breslin, our expert at ProMed DME, points out, the HME market provides an opportunity for high returns. However, it's crucial to remember that success depends on understanding the complex landscape of medical suppliers and clients, navigating processes involving insurance and licenses, and maintaining operational efficiency while keeping a keen eye on customer satisfaction and business growth.

The Growing Demand for Home Medical Equipment

The demand for home medical equipment and durable medical equipment (DME) has never been higher. This growing demand is primarily driven by an aging population that prefers to age in place, a rise in chronic diseases, and an increased focus on home care rather than hospital care. The market size for medical supplies is expected to reach 160 Billion USD by 2025 , providing an immense opportunity for businesses in the HME industry.

This growing demand means that your HME business needs to be ready to deliver a mix of HME products for high-quality care quickly. It also underscores the importance of meeting patient care and revenue goals, which we at ProMed DME are here to help you achieve.

In the next section, we will delve into planning your HME business, including identifying your target market and choosing the right medical supplies to sell. So stay tuned!

Planning Your Home Medical Equipment Business

Starting a successful home medical equipment business requires careful planning and consideration. Here are some key aspects to focus on during your planning phase:

Identifying Your Target Market

The first step is to identify your target market. Questions like: "Who needs my products?", "Which age group do they belong to?", or "What specific health conditions do they have?" are vital in this process.

For instance, as the population ages, the demand for home medical equipment grows, making senior citizens a potentially profitable demographic. Also, people with chronic conditions such as diabetes might require regular supplies of medical equipment at home.

At ProMed DME, we've built a strong reputation by focusing on retirement-aged individuals with chronic health conditions, providing them with personalized care and a reliable supply of medical products.

Choosing the Right Medical Supplies to Sell

Once you've identified your target market, the next step is to determine what medical supplies to sell. This decision should be based on the needs of your identified target market.

For example, if your target market consists of individuals with diabetes, you might want to consider selling diabetic testing kits. If you are targeting seniors, you may want to offer wheelchairs, walkers, or hospital-grade beds. Partnering with a reputable medical equipment manufacturer is key to ensuring the quality of your products .

Creating a Business Plan

A solid business plan is the backbone of any successful business. It should outline your business goals, target market, product offerings, pricing strategy, marketing plan, and financial projections.

When creating a business plan for a home medical equipment business, consider factors such as the cost of purchasing the medical supplies, warehouse or storage costs, marketing expenses, and potential revenue.

Additionally, your business plan should include a strategy for navigating the regulatory and compliance aspects of the industry. This could involve a strategy for securing operating licenses or becoming a certified Medicare and Medicaid provider .

With a well-thought-out business plan, you're setting a strong foundation for your home medical equipment business, increasing your chances of success.

The planning phase is crucial in the home medical equipment business. Armed with a clear understanding of your target market, the right products to sell, and a comprehensive business plan, you're well on your way to establishing a successful business. Stay tuned for our next section on understanding the legal requirements and compliance aspects of running a home medical equipment business.

Legal Requirements and Compliance for a Home Medical Equipment Business

Before you can start serving your customers, it's crucial to understand and meet the legal requirements and compliance protocols for a home medical equipment business. These rules ensure your business operates smoothly and ethically.

Licensing Requirements for Home Medical Equipment Businesses

Whether you plan on operating as a wholesaler or retailer, different licensing requirements apply.

If you're a wholesaler, selling medical devices and supplies to other organizations, you may be required to obtain a license from the regulatory board governing medical equipment in your state, and any state you plan to ship your products to. The application typically includes providing a description of the supplies you sell, a current facility inspection report, and information about your company's corporate ownership and officers.

For DME retailers who sell directly to end consumers, a license may be needed in each state in which you do business. The application process often involves verification of your corporate certificates, a list of corporate officers, a current facility inspection report, a state license or registration, and a sales tax permit.

We at ProMed DME highly recommend verifying the DME licensing requirements of your home state and any state in which you plan to operate.

Compliance with Federal Laws and Regulations

Compliance with federal laws and regulations is crucial for your business. The U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and the Centers for Medicare and Medicaid Services (CMS) conducts strict oversight of DME companies.

Your business needs to have a system of review for all advertising and billing procedures to ensure compliance. Violations often involve improper billing practices, referral fees and kickbacks, and marketing transgressions.

The HHS-OIG provides compliance program guidance documents to help businesses develop effective internal controls for monitoring adherence to statutes and regulations.

Registering for Medicare/Medicaid Insurance Billing

If you're planning to bill a customer's Medicare/Medicaid insurance, it's important to understand the distinct requirements of the billing process. You'll need to register in each state where sales and services will be dispensed. If you're billing Medicaid directly for DME, you're required to enroll as a Medicaid Provider in the state where service is provided.

In addition to completing a state enrollment form, you must provide your FEIN tax ID number, business license certifications of any staff member qualified to sell DME, and a DME Provider Information Request Form.

Failure to register can expose your business to financial risks. If you do not plan to bill Medicare/Medicaid patients, you don’t need to apply for a Medicare/Medicaid Billing Number.

Before taking the leap, make sure you understand these legal and compliance requirements fully. They're not just a matter of paperwork. They're about ensuring your business operates ethically, efficiently, and in the best interest of your customers. At ProMed DME, we're committed to this ethos, and we're here to assist you every step of the way. In our next section, we'll discuss how to set up your home medical equipment business.

Setting Up Your Home Medical Equipment Business

After planning and understanding the legal landscape of the home medical equipment business, the next crucial step involves setting up your operations. This encompasses finding a suitable storage space, establishing wholesale accounts with distributors, and strategizing ways to engage with medical professionals. Let's delve into each of these aspects.

Finding a Suitable Warehouse or Storage Space

The first step in setting up your home medical equipment business is securing a storage space. This warehouse or storage facility will house all the medical supplies you intend to sell. It's important to choose a space that is both convenient and efficient for your operations.

When selecting a storage facility, consider its size, location, accessibility, and the potential for future growth. It's also important to ensure that the storage conditions adhere to any specific requirements necessary for preserving the integrity of your products.

At ProMed DME, we ensure that our storage facilities are optimized for efficiency, allowing us to deliver orders promptly and securely to our customers.

Establishing Wholesale Accounts with Medical Equipment Distributors

Once you've secured a storage space, the next step is to establish relationships with medical equipment distributors. These entities will supply you with the products you'll sell to your customers.

Choose your suppliers carefully. Consider factors such as their commitment to quality, their delivery systems, and their expertise in the market. It's also beneficial if they have plans for future growth and innovation, as this can help your business stay relevant in the evolving medical equipment landscape.

At ProMed DME, we only partner with trusted and reputable manufacturers, ensuring that our customers receive the highest quality products.

Offering Incentives to Medical Professionals

Finally, a strategic way to build your customer base is by offering incentives to medical professionals. After all, they are the ones who often recommend and prescribe durable medical equipment to patients.

Incentives could include special discounts, access to a wider range of products, or even educational resources that they can use to better serve their patients. By building relationships with healthcare providers, you not only increase your customer base but also establish your business as a trusted source of medical supplies.

At ProMed DME, we understand the value of strong relationships with healthcare professionals. We work closely with healthcare teams, gathering prescriptions, and ensuring orders are delivered promptly and discreetly.

Setting up your home medical equipment business is a significant undertaking, but with careful planning and strategic partnerships, it's a venture that can provide immense value to your community and bring you rewarding returns. In our next section, we'll discuss how to effectively market your business. Stay with us!

Marketing Your Home Medical Equipment Business

Once you've established your home medical equipment business, it's time to attract customers. Here at ProMed DME, we've found that a combination of a strong online presence, strategic local marketing, and partnerships with healthcare providers can be key to success.

Building a Strong Online Presence

The first step in marketing your business is establishing a strong online presence. This can be achieved through a well-designed website and active profiles on social media platforms. ProMed DME utilizes an intuitive website layout that allows customers to easily navigate through our extensive range of products.

Your website is a crucial tool in showcasing the medical supplies you offer. Make sure to include detailed descriptions and high-quality images of your products. As a bonus, consider adding a blog or resources section to provide valuable information related to home medical equipment.

Social media platforms can help you reach a broader audience. Regularly posting engaging content and responding to comments or messages can cultivate a sense of community around your brand.

Local Marketing Strategies for Your Business

While a digital presence is important, don't forget the power of local marketing. Consider advertising in local newspapers, health and wellness magazines, or on community bulletin boards. Participating in health fairs and networking with local health professionals can also help spread the word about your business in your community.

Partnering with Healthcare Providers

A partnership with healthcare providers can be a mutually beneficial arrangement. As experts in their field, these professionals can recommend your business to patients in need of medical equipment. At ProMed DME , we've fostered relationships with healthcare providers through a shared commitment to patient care.

To build these partnerships, consider offering incentives, such as discounts on bulk orders or referral programs. Regularly communicate with them about any new products or services you have to offer.

Mike Breslin, a topic expert at ProMed DME, emphasizes the importance of these partnerships, "Working closely with healthcare providers not only drives our business, but more importantly, ensures that patients receive the best care and equipment to manage their health conditions at home."

Marketing your home medical equipment business can be a complex process, but with a clear strategy and a dedication to meeting the needs of your customers, you'll be on your way to success. The goal is not just to sell products, but to provide a service that improves the quality of life for your customers.

Providing Exceptional Customer Service in Your Home Medical Equipment Business

In any business, exceptional customer service is the cornerstone of success, and this is particularly vital in the home medical equipment business. It is about more than just selling products; it's about offering support, guidance, and education to customers navigating their health conditions.

The Role of Customer Service in the Medical Supply Industry

Customer service in the medical supply industry goes beyond the mere transactional relationship of buying and selling products. It involves a deep understanding of the needs of customers and a commitment to helping them find the most suitable solutions. It includes being knowledgeable about the products, understanding the specific needs of different health conditions, and being able to guide customers in their selection of equipment. Customer service also entails handling inquiries promptly, offering help with insurance claims, and providing after-sales support.

How ProMed DME Excels in Customer Service

At ProMed DME, we understand the importance of customer service in the home medical equipment business. We have a dedicated team of professionals with over 100 years of combined service, who are always ready to help customers with their needs. We also have a nurse on staff who is available to answer more complex medical questions and provide expert advice.

Our customer service extends to the seamless processing of orders. We accept most insurance plans and work with your care team to gather your prescription records, making the process easier for you. We also offer free, secure, and discreet shipping right to your door, keeping you updated about the status of your order along the way.

Tips for Providing Top-Quality Customer Service

Providing top-quality customer service requires a commitment to understanding and meeting the needs of customers. Here are some tips to achieve this:

Understand your customers' needs: Every customer is unique, with their own specific health conditions and requirements. Understanding these needs is the first step in providing excellent service.

Be knowledgeable about your products: To guide customers effectively, you need to understand your products thoroughly. This includes knowing the benefits, usage, and any potential side effects or precautions.

Communicate effectively: Clear and empathetic communication can help customers feel understood and valued. This includes listening to their concerns, answering their questions, and explaining complex information in a way that's easy to understand.

Provide after-sales support: Customer service doesn't stop once a sale is made. Offering after-sales support, such as answering questions about product usage or handling returns and exchanges, can help build long-term customer relationships.

Consider the customer's overall experience: From the moment a customer interacts with your business, consider their overall experience. This includes the ease of finding information on your website, the simplicity of the ordering process, and the promptness and courtesy of your customer service interactions.

At ProMed DME, we are committed to providing exceptional customer service. We understand that we are not just supplying medical equipment, but also providing a service that enhances the lives of our customers. We are here to support you in your health journey, providing high-quality products, exceptional customer service, and personalized care every step of the way.

The Future of the Home Medical Equipment Business

As we look forward to the future, the landscape of the home medical equipment business in the United States is set to evolve in line with industry growth, technological advancements, and changing healthcare needs. The durable medical equipment (DME) industry continues to grow, fueled by an aging population and increasing prevalence of chronic diseases. This growth signifies the increasing importance of businesses like ours at ProMed DME in providing essential medical supplies to those in need.

Indeed, technology is playing a pivotal role in reshaping the industry. From advanced product designs to improved logistics, technology is making DME more accessible and user-friendly. For instance, here at ProMed DME , we offer free, secure, and discreet shipping right to your door, with status updates along the way. Technological advancements are also enhancing product selection and customer service, enabling us to provide personalized care and advice to support you in managing your health conditions effectively.

As we move into the future, home medical equipment businesses are set to play a crucial role in healthcare. They provide an essential service, supplying patients with the medical equipment they need to manage their health conditions at home. Moreover, with a shift towards home healthcare, businesses like ours are more important than ever in providing convenient access to medical supplies.

Final Thoughts on Starting a Home Medical Equipment Business

Starting a home medical equipment business requires careful planning, comprehensive understanding of regulatory frameworks, and strategic business tactics. But with the right strategies and resources, you can establish a successful business that not only meets the healthcare needs of your customers but also achieves your business goals.

The journey to starting a DME business may seem overwhelming, but the rewards are worth it. With high returns potential and the immense satisfaction derived from improving the lives of patients in need, this is a venture that promises both financial and personal fulfillment.

As we navigate the future of the DME industry, ProMed DME is committed to being your trusted partner, providing high-quality products, exceptional customer service, and personalized care to support you in your health journey. As a leading home medical equipment business, we are excited to be part of this evolving industry and look forward to supporting you in the years to come.

For further insights into the DME business, explore our other resources and services. We are here to help you every step of the way, ensuring that you receive the support and guidance needed to succeed in this rewarding industry.

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A Sample Medical Supply Business Plan Template

A medical supply company is a business that purchases medical and surgical equipment, instruments, and supplies, stores these items at distribution centers, and delivers these products and related services to medical and dental practitioners, clinics, hospitals, etc.

Statistics made available show that the global medical supplies market was worth USD 80 billion in the year 2019 and it is projected to reach USD 95.04 billion by 2026 with a CAGR of 13.5% between 2022 and 2026. Interestingly, the United States is a major player in the global medical market worth $85 billion according to industry analysts. The United States is home to nearly 11,000 medical supply companies.

Steps on How to Write a Medical Supply Business Plan

Executive summary.

Shannon McKenzie© Medical Supply Company, Inc. is an American-based and licensed medical supply business that will be located in a well-furnished and centrally located warehouse facility in the heart of Fort Wayne, Indiana.

At Shannon McKenzie© Medical Supply Company, Inc., we will supply a wide array of medical and surgical equipment, instruments, and supplies from different manufacturers (brands) from the United States and abroad. We are set to serve a wide range of clientele in and around Fort Wayne, Indiana.

Shannon McKenzie is the founder and CEO of Shannon McKenzie© Medical Supply Company, Inc.

Company Profile

A. our products and services.

Shannon McKenzie© Medical Supply Company, Inc. will be involved in the sale and supply of;

• Nonelectronic medical, surgical, dental, and veterinary instruments and apparatus, such as syringes, anesthesia apparatus, blood transfusion equipment, catheters, surgical clamps, and medical thermometers, electromedical and electrotherapeutic apparatus, X-ray apparatus
• Surgical appliances
• Surgical instruments
• Dental instruments and supplies
• Hospital beds and other specialized hospital furniture
• Personal safety equipment.

b. Nature of the Business

Our medical supply company will operate the business-to-business model.

c. The Industry

Shannon McKenzie© Medical Supply Company, Inc. will operate under the medical supply industry.

d. Mission Statement

Our mission is to partner with leading medical equipment, devices, and related supplies manufacturing companies to become their preferred business partner when it comes to distributing their products in and around Fort Wayne, Indiana.

e. Vision Statement

Our vision is to become the leading medical supply company in the whole of Fort Wayne, Indiana.

f. Our Tagline (Slogan)

Shannon McKenzie© Medical Supply Company, Inc. – The preferred Medical Supply Company!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Shannon McKenzie© Medical Supply Company, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Executive Officer (President)
• Human Resources and Admin Manager
• Warehouse Manager
• Merchandise Manager
• Sales and Marketing Manager
• Accountants (Cashiers)
• Sales Agents
• Customer Services Executive
• Truck and Van Drivers.

i. Ownership/Shareholder Structure and Board Members

• Shannon McKenzie (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Garry Button (Board Member) 18 Percent Shares
• Christian Norman (Board Member) 10 Percent Shares
• Carty Bright (Board Member) 10 Percent Shares
• Lilian Thomas (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal location for a medical supply business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Access to some of the leading medical device and equipment manufacturers nationally and internationally.

b. Weakness

• Financial Constraints
• A new business that will be competing with well-established medical supply companies.
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• A rise in the demand for medical supplies due to the increasing number of new medical and dental practitioners, clinics and hospitals et al within our target market location.
• Online market, new services, new technology, and of course the opening of new markets

i. How Big is the Industry?

Trust me, the market for medical supplies is massive in the United States of America. This can be supported by the fact that the medical supply market in the United States is currently worth $85 billion according to industry analysts.

ii. Is the Industry Growing or Declining?

The medical supply line of business is growing because medical and dental practitioners, clinics, and hospitals et al. cannot operate their business without medical equipment and devices. Come to think of it, with the recent outbreak of coronavirus and the stress meted on the health system globally, the importation of medical equipment has experienced a boom and it will continue in the upper trajectory for a long time to come.

iii. What are the Future Trends in the Industry

The future trends when it comes to the medical supply business will revolve around technology. Software that is meant to predict what customers want from a medical supply company and also to create online markets where people can order medical equipment and devices from the comfort of their offices.

iv. Are There Existing Niches in the Industry? 

No, there are no existing niche ideas when it comes to the medical supply business.

v. Can You Sell a Franchise of your Business in the Future?

Shannon McKenzie© Medical Supply Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving markets in the United States of America.

• The arrival of new medical supply companies or even medical device and equipment manufacturers within our market space
• Unfavorable government policy and regulations.
• Steady wage expenses
• Economic uncertainty
• Liability problems
• The FDA’s Center for Devices and Radiological Health (CDRH) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

i. Who are the Major Competitors?

• AmerisourceBergen
• Henry Schein
• Cardinal Health
• Medline Industries
• Carex Health Brands, Inc.
• Drive DeVilbiss Healthcare.
• NOVA Medical Products.
• Kaye Products, Inc.
• Medtronic PLC.
• Abbott Laboratories
• General Electric Company
• Danaher Corporation
• Boston Scientific Corporation
• Johnson & Johnson
• Varian Medical Systems Inc.
• Siemens Healthineers
• 3M Health Care

ii. Is There a Franchise for Medical Supply Business?

Yes, there are franchise opportunities for the medical supply business, and here are 20 of them;

• Auxo Medical, LLC.
• BioPed Footcare Centers
• Medicap Pharmacies Incorporated
• MEDIchair Ltd.
• OsteoStrong
• Sonus Hearing Care.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Medical Supply Business?

Yes, there are county or state regulations or zoning laws for medical supply businesses. Players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.

Please note that in the United States, the FDA’s Center for Devices and Radiological Health (CDRH) is tasked with regulating firms who manufacture, repackage, re-label, and/or import medical devices sold in the United States. Also, the FDA’s CDRH regulates radiation-emitting electronic products (medical and non-medical) such as lasers, x-ray systems, ultrasound equipment, microwave ovens, and color televisions.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market are medical businesses who have the finance to purchase medical supplies from us.

ii. Level of Educational

We don’t have any restriction on the level of education of those we will welcome to our medical supply company or who will purchase medical supplies from us.

iii. Income Level

There is no cap on the income level of those we are looking to sell medical supplies.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that will purchase medical supplies from us.

v. Language

There is no restriction when it comes to the language spoken by the people that will purchase medical supplies from us.

vi. Geographical Location

Anybody from any geographical location is free to purchase medical supplies from us.

vii. Lifestyle

Shannon McKenzie© Medical Supply Company, Inc. will not restrict any customer from purchasing medical supplies from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Brand All Our Delivery Vans and Trucks.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the health care industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Shannon McKenzie© Medical Supply Company, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the health care industry , and freelancers (medical reps) to help refer customers to us.

Shannon McKenzie© Medical Supply Company, Inc. will also leverage the 4 Ps of marketing which is a place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need to stock up our warehouse with different types of medical supplies per time means that Shannon McKenzie© Medical Supply Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

Shannon McKenzie© Medical Supply Company, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Shannon McKenzie© Medical Supply Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

d. Return Policy, Incentives, and Guarantees

At Shannon McKenzie© Medical Supply Company, Inc., our customers are our top priority hence if you receive any medical equipment or device that is different from your receipt, we will sincerely apologize. Please call us as soon as you notice that there was an error in your order, and you may come to pick up the correct item.

For credit card payments, you will be refunded the sales price amount associated with the error and recharged for the new items’ price. For cash payments, you will be asked to pay the difference of the balance if the new product has a greater value than the product received in error.

In the same way, you will receive the difference of the balance back as credit for the new item if less than the products received in error. In some cases, we may offer you store credit. Your order will be a priority if you come to pick it up. In all cases, please return the medical supplies order in the original container(s) to our host.

e. Customer Support Strategy

Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to all our clients and investors, it will help us to first understand their needs, experiences, and pain points.

Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainership deals that will enable the firm to boost our sales and support revenue growth.

a. What Happens During a Typical Day at a Medical Supply Company Business?

• The business is open for the day’s work
• Stocks are taken for the day in the warehouse
• Customer orders are taken, processed, and are delivered to them by the delivery guys
• Cashier collect’s cash and reconcile account for the day
• Administrative duties are carried out
• The warehouse is restocked when required.
• The business is closed for the day.

b. Production Process (If Any)

The nature of the medical supply business doesn’t give room for a production process.

c. Service Procedure (If Any)

The service procedure for a medical supply company starts with a customer (medical and dental practitioners, clinics and hospitals et al) requesting or ordering medical devices and equipment.

Once the request is gotten, it will be processed and the order delivered to a location as requested.

d. The Supply Chain

Shannon McKenzie© Medical Supply Company, Inc. will rely on key players in the medical device and equipment manufacturing industry to partner with for steady supplies at an affordable rate. So also, we have been able to establish business relationships with medical and dental practitioners, clinics and hospitals et al to be their major suppliers of medical devices and equipment.

e. Sources of Income

Shannon McKenzie© Medical Supply Company, Inc. will make money from selling;

• Nonelectronic medical, surgical, dental, and veterinary instruments and apparatus

Financial Plan

A. amount needed to start your medical supply company.

Shannon McKenzie© Medical Supply Company, Inc. would need an estimate of $2.5 million successfully set up our medical supply company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $3,300.
• Marketing, Branding and Promotions – $2,000.
• Business Consultant Fee – $2,500.
• Insurance – $12,400.
• Rent/Lease – $150,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
• Operational Cost (salaries of employees, payments of bills et al) – $130,000
• Start-up Inventory – $1.5 million
• Store Equipment (cash register, security, ventilation, signage) – $1,750
• Furnishing and equipping the warehouse facility – $20,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $7,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Shannon McKenzie© Medical Supply Company, Inc. will not build a new facility for our medical supply company; we intend to start with a long-term lease for a standard warehouse facility and after 5 years, we will start the process of acquiring our warehouse facility in a centralized location in the city.

d. What are the Ongoing Expenses for Running a Medical Supply Company?

• Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees
• Trucks and vans maintenance
• Marketing costs

e. What is the Average Salary of your Staff?

• Chief Executive Officer (President) – $120,000 Annually
• Human Resources and Admin Manager – $60,000 Annually
• Warehouse Manager – $55,000 Annually
• Merchandize Manager – $50,000 Annually
• Sales and Marketing Manager – $45,000 Annually
• Accountants (Cashiers) – $45,000 Annually
• Sales Agents – $35,000 Annually
• Customer Services Executive – $35,000 Annually
• Truck and Van Drivers – $30,000 Annually

f. How Do You Get Funding to Start a Medical Supply Company.

• 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 a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

There is no fixed price when it comes to medical equipment and supplies; we will supply based on the commission stipulated by the equipment manufacturing company.

b. Sales Forecast?

• First Fiscal Year (FY1): $1.3 million
• Second Fiscal Year (FY2): $2.4 million
• Third Fiscal Year (FY3): $3.5 million

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): $450,000
• Second Fiscal Year (FY2) (Profit After Tax): $950,000
• Third Fiscal Year (FY3) (Profit After Tax): $1.75 million

d. Profit Margin of a Medical Supply Company Product/Service

The ideal profit margin we hope to make at Shannon McKenzie© Medical Supply Company, Inc. will be between 5 percent and 15 percent depending on the product and the brand (medical device and equipment manufacturing company).

Growth Plan

A. how do you intend to grow and expand .

Shannon McKenzie© Medical Supply Company, Inc. will grow our medical supply company by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Shannon McKenzie© Medical Supply Company, Inc. plans to expand first to Miami, Florida, Houston, Texas, New York City, New York, Oklahoma City, Oklahoma, Chagrin Falls, Ohio, Kaysville, Utah, Cedar Rapids, Iowa, Las Vegas, Nevada, Los Angeles, California and Dallas, Texas.

The reason we intend to expand to these locations is that available statistics show that the cities listed above have the most thriving market for medical supply companies.

The founder of Shannon McKenzie© Medical Supply Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another without hitches.

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Start » strategy, how to build a manufacturing business plan.

A manufacturing business plan can help get your new venture off the ground and running smoothly.

A manufacturing business plan outlines the goals, strategies, and operations of a manufacturing company. Use this article as a road map for your business and to help recruit investors as your operation grows.

Manufacturing business plans vary slightly compared to business plans for other types of companies. Here's what goes into a manufacturing business plan and how to create one for your venture.

Why do companies need manufacturing business plans?

Manufacturing business plans are used for the same purpose as other companies' plans. These documents help set clear goals and objectives for internal stakeholders. They provide a framework for making decisions around financing, budgeting, hiring, and procurement. Additionally, investors and lenders often require a business plan to assess the venture's potential.

Business plans are meant to be flexible, living documents that are revisited periodically as the business grows. Writing a manufacturing business plan is a good exercise in understanding what equipment will be needed, evaluating the size of the market your business is based in, and assessing your competition. These things will change over time, so make sure you adjust your plan as your company matures.

[Read more: How to Use AI Tools to Write a Business Plan ]

What goes into a manufacturing business plan?

Manufacturing plans can be very detailed, but at a minimum should include the following sections:

• An executive summary.
• A company description.
• A production plan.
• An industry analysis.
• The target market.
• Compliance.
• A financial plan.

Some manufacturing plans also include sections for marketing, management, and operations. An operations plan can include the details of how you will source materials, your design process, how you will manage production, and ways to coordinate logistics with potential buyers. Marketing sections detail how you will position your product and reach potential buyers, while management identifies the key roles for which you will hire.

[Read more: 6 Product Design Software Programs for Beginners ]

While there's a lot of overlap with a normal business plan, manufacturing companies have unique processes and constraints they need to consider and address in their plan.

Why are manufacturing business plans unique?

The production plan section should provide a detailed outline of the manufacturing process, equipment, facilities, and supply chain. It should also include operational details that are crucial to the success of the manufacturing business: quality control, inventory management, and supply chain logistics, which should be covered extensively.

Manufacturing business plans also play an outsized role in recruiting funding. Manufacturers often require significant capital investments in equipment, machinery, and facilities. The financial projections included in the plan must accurately reflect these costs to ensure adequate funding for getting off the ground.

Finally, meeting global environmental, safety, and quality regulations is no easy feat. Identifying these requirements early positions the manufacturer to be compliant, as well as to assess which supply chain partners are also able to meet these rules. A manufacturing business plan should detail supply chain management, compliance demands, and steps to streamline both of these key elements.

How to write a manufacturing business plan

The easiest way to get started is to use a template. A few outlines are available online, like this one from Katana or this one from MoreBusiness.com . Start by defining your business and answering questions such as:

• What product will the business manufacture?
• Who is the target market of ideal customers?
• What makes this product unique?
• What business structure will be used?

From there, you can work through section by section to conduct market research, develop your operations plan, prototype your product, and identify supply chain partners. Include financial projections such as your startup costs, operational costs, revenue projections, and the break-even point.

"It's important to be optimistic when starting a new business, but you also need to be realistic. This is especially true when it comes to financial projections. Don't overestimate the amount of revenue you will generate or underestimate the costs of goods sold," wrote Katana .

Breaking your plan down into smaller sections can make it easier to identify areas where you need outside help too. Don't be shy about asking others in the industry for advice.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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Original text

Securing a loan is a critical step for many small businesses looking to start, grow, or sustain their operations. Whether the funds are needed for purchasing equipment, expanding facilities, or managing cash flow, obtaining a loan can provide the necessary capital to help a business thrive. The importance of  business loans cannot be overstated. However, the process of securing a loan can be complex and requires careful planning. Here’s a guide on how a small business should approach getting a loan.

1. Assess Your Business Needs

Before seeking a loan, it’s crucial to clearly understand why your business needs financing. Define the purpose of the loan, whether it’s for working capital, purchasing equipment, expanding your premises, or another purpose. Knowing exactly how much money you need and what you plan to use it for will help you choose the right type of loan and lender.

2. Evaluate Your Creditworthiness

Your credit score and financial history are significant factors that lenders consider when deciding whether to approve your loan application. Personal and business credit scores are both important, especially for small businesses where personal finances often intertwine with business finances. A high credit score can open the door to more favorable loan terms, including lower interest rates. Before applying, check your credit reports, address any discrepancies, and take steps to improve your credit score if needed.

3. Prepare a Solid Business Plan

A well-prepared business plan is essential for convincing lenders that your business is a viable investment. Your business plan should include a detailed description of your business, your products or services, target market, and competitive landscape. It should also outline your marketing strategy, operational plan, and most importantly, your financial projections. Lenders want to see that your business has a clear path to profitability and that you have a plan for repaying the loan.

4. Understand Your Loan Options

There are various types of loans available to small businesses, each with its own terms, interest rates, and requirements. Common options include:

-  Term Loans

These are traditional loans where you borrow a lump sum and repay it over a fixed period with interest.

- SBA Loans

 Loans guaranteed by the Small Business Administration (SBA) often have lower interest rates and longer repayment terms but can be harder to qualify for.

-  Lines of Credit

These offer flexible access to funds up to a certain limit and are useful for managing cash flow.

-  Equipment Financing

Specifically for purchasing equipment, where the equipment itself serves as collateral.

- Invoice Financing 

Advances based on outstanding invoices, useful for businesses with cash flow issues due to unpaid invoices.

Research the options and choose the one that best fits your business’s needs.

5. Gather Necessary Documentation

Lenders require various documents to evaluate your loan application. Commonly requested documents include:

- Business and personal tax returns

- Financial statements (balance sheet, income statement, cash flow statement

- Bank statements

- Legal documents (business licenses, registrations, contracts

- Details of any existing debt

Having these documents ready can expedite the application process.

6. Apply for the Loan

Once you’ve chosen a lender and prepared your documentation, it’s time to apply for the loan. Fill out the application carefully, ensuring that all information is accurate and complete. Be prepared to answer questions from the lender about your business, your plans for the loan, and how you intend to repay it.

7. Negotiate Terms and Conditions

If your loan application is approved, review the loan agreement carefully before signing. Pay attention to the interest rate, repayment schedule, fees, and any collateral requirements. Don’t hesitate to negotiate for better terms if you feel they are not favorable. Remember, the goal is to secure financing that supports your business without placing undue strain on your finances.

8. Plan for Repayment

Once you’ve secured the loan, it’s essential to manage the funds responsibly and ensure that you meet your repayment obligations. Create a repayment plan that aligns with your business’s cash flow, and consider setting up automatic payments to avoid missing any deadlines. Managing your loan well will not only ensure that you retain good standing with your lender but also improve your chances of obtaining future financing if needed.

Getting a loan for your small business requires careful planning, a clear understanding of your needs, and diligent preparation. By following these steps, you can improve your chances of securing the financing needed to support your business’s growth and success.

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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No more barriers to get your treatment: Apply for Hero FinCorp Medical Loan for emergency

A medical emergency is often unpredictable. Regardless of your financial planning, a medical crisis can severely impact your finances. Considering the increasing healthcare costs, even a minor medical procedure may cost substantially. A medical loan provides quick funds for such emergencies. By bridging the financial gap, it ensures you get the best medical treatment. Let’s explore Personal Loans for handling medical emergencies.

What is a Medical Loan? A medical loan is a Personal Loan you can borrow online to cover medical costs. It does not require any collateral for security. You receive an approved loan amount according to your eligibility. You must repay in Equated Monthly Instalments (EMIs) over a predetermined repayment tenure.

Key Features Here’s a look at the features of a medical loan:

• Collateral-Free Nature: Since these are unsecured loans, you don’t need to pledge an asset as security. Unsecured nature makes them accessible to most individuals who need medical funds without offering collateral.
• Fixed Interest Rates: Personal Loans usually have fixed interest rates. That means the EMIs remain constant throughout the tenure. It lets you effectively plan your finances and ensure timely repayment.
• Quick Approval and Disbursal: Time is crucial during a medical emergency. Lending institutions like Hero FinCorp supporting 100% digital procedures facilitate swift approvals and disbursals. They make funds readily available within a short period.
• Versatility in Usage: A medical loan is a suitable source of funds to tackle a medical emergency. These include hospitalisation, medicines, doctor’s fees, surgery, diagnosis, therapy, medical equipment, and other related expenses.
• Minimal Documentation: The documentation process for a Personal Loan for medical emergency is relatively straightforward. It is beneficial during emergencies when time is limited.
• Repayment Flexibility: Lending institutions offer flexible tenure options for Personal Loans for medical emergencies. You can select a tenure aligning with your financial capacity. Longer tenures have smaller EMIs but higher interest outgo, while shorter tenures have higher EMIs but lower interest expenses.

Benefits of Using a Personal Loan to Handle Medical Emergencies Medical emergencies can quickly drain your finances, especially if they require surgeries or hospitalisation. A medical loan from Hero FinCorp can meet these unforeseen expenses without hassle. Let’s look at the benefits of obtaining one:

Immediate Funding: These loans require minimal documentation. Hero FinCorp provides quick funds without any office visits or paperwork. As a result, you can get the required treatment without delay.

Preserve Savings: Your savings may take a hit during medical emergencies. Getting a Personal Loan online helps to keep your savings intact. It is significant for ensuring long-term financial stability. You may continue earning returns on your savings and sort out the medical emergency with a loan.

Budget-Friendly EMIs: These loans have flexible loan amounts and repayment terms. With a tenure of up to 36 months, you can select a repayment schedule according to your financial capacity. It prevents unnecessary strain on your budget.

Comprehensive Coverage: These loans cover anything related to medical expenses, including doctor fees, hospital bills, surgeries, diagnosis, medicines, therapy, and post-treatment care.

Covers Insurance Gaps: Health insurance does not provide comprehensive coverage. It often falls short, or the claims process takes time. In such circumstances, a loan bridges the financial gap and ensures interruption-free treatment.

Points to Consider When Seeking a Personal Loan for Medical Emergency

Medical emergencies require urgent handling. While Personal Loans handle the finances, you must know the intricacies. These are some crucial aspects to consider when applying:

Loan Amount: Evaluate the expenses and borrow a sufficient amount to cover them. Avoid overborrowing, as it leads to unnecessary debt.

• Interest Rate: Look for a loan plan with affordable interest rates. Higher interest rates increase the loan cost and burden your finances unnecessarily.
• Additional Charges: Understand the extra charges to keep the loan cost under control. Enquire about the processing fee and other charges to avoid any surprises.
• Repayment Capacity: Assess your repayment capacity to ensure comfortable repayment within the selected tenure. Missing the EMIs negatively impacts your credit score. Use an EMI calculator to choose a tenure with budget-friendly EMIs.
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Surgical Medical Equipment Business Plan

Start your own surgical medical equipment business plan

Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

Bioring SA produces niche-specific rings for cardiac valve repair. It has its main office in Lonay (CH) and maintains a small manufacturing and assembly plant in Lonay, Switzerland. Its products are to be sold through single or multiple distributors.

• This business plan is part of our regular business planning process. We revise this plan every quarter and it is placed under change control.
• In the next two years we intend to develop two new products and to improve revenues.
• Our keys to success and critical factors for the next year are, in order of importance:
• Product approval: CE mark.
• Sales to dealers in volume.
• Financial control and cash flow planning.

The following chart illustrates highlights of our financial performance as projected for the next three years. Sales and profits should continue to grow.

1.1 Objectives

• To give Bioring SA the market presence needed to support marketing and sales goals, and to attract distributors of new Bioring products.
• To develop two new Bioring products by the end of year four.
• To increase sales to reach $312,500 monthly sales by the end of year two, and $830,000 monthly by the end of month eight of year three. 
• To control expenditures to serve the best dividends to the shareholders.

1.2 Mission

Bioring SA addresses the surgical repair techniques which are implemented in open heart surgery. This business is based on a product owned by the company, which is a cardiac implant more precisely called “Kalangos Biodegradable Ring.”

We intend to make enough profit to generate a fair return for our investors and finance continued growth and development in quality products. We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work.

1.3 Keys to Success

 The keys to success in this business are:

• Marketing: either dealing with national distributors or with well-established international companies.
• Product quality.
• Product approval in Europe and USA.
• Management: products delivered on time, costs controlled, marketing budgets managed. There is a temptation to fix on growth at the expense of profits.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Bioring SA Company develops and manufactures cardiac biodegradable annuloplasty devices designed to restore a normal heart function. Its customers are cardiac surgery clinics who want prostheses that accomplish useful tasks with as little expenditure of time and money as possible. The company was incorporated in Switzerland in 2000, after three years of previous developments.

2.1 Company Ownership

Bioring SA is a privately-owned Swiss operation. Raymond Andrieu, Bioring’s founder, is the majority owner. Several members of the board of directors also hold minority stock positions. The initial $642,500 share capital is increased by another $100,000 in April 2000.

2.2 Start-up Summary

Our start-up expenses come to $258,500, which are mostly equipment, legal costs, patent costs and expenses associated with opening our first office and manufacturing facilities.  Another $384,000 is required in start-up assets. The start-up costs are to be financed by direct owners’ investment. The assumptions are shown in the following table and chart.

2.3 Company Locations and Facilities

Headquarters are located in an office of approximately 4,000 square feet at Chemin d’Etraz 2, CH-1027 Lonay, Switzerland.

The present office space is small. As we add employees, we will have to take on additional space. We expect space to be available in our present building. The office space will have assembly space on site and be equipped to handle shipping.

Bioring SA addresses the surgical repair techniques which are implemented in open heart surgery. This business is based on a patented product owned by the company, which is the Kalangos Biodegradable Ring cardiac implant.

The Bioring biodegradable valvular heart ring (Kalangos mitral or tricuspid ring) has been developed and designed to diminish or reinforce the valvular orifices of the heart. The ring allows a normal growth of the valve in newborn and babies, avoiding stenosis and multiple surgical procedures.

The ring is dimensioned to the size and natural geometry of the valve, and it is manufactured with a specially designed biodegradable polymer called polydioxanone. Once implanted, through the regular absorption of the ring inside the endomyocardiac tissue by simple hydrolysis, the body creates (by reaction) a scar along the ring, characterized by fibrotic tissue presenting an improved resistance to elongation. Once the ring has been completely biodegraded, the rigidity of the fibrotic tissue of the scar is maintaining the valvular orifice at the desired dimension.

As the residual scar is made of the proper biologic tissues of the patient, there is no predisposition to infection, and furthermore, the scar is able to grow normally during the growth process of the newborn.

The Kalangos mitral ring is available in 11 dimensions, covering all phases of development and all adult sizes. The Kalangos tricuspid ring is also available in 11 dimensions. Sizers have been designed to help the surgeon surgeon to choose the right ring dimension.

3.1 Product Description

 As of June 2001, Bioring SA has 44 products to sell:

• Kalangos Mitral Biodegradable Ring: sizes 16, 18, 20, 22, 24, 26, 28, 30, 32, 34, 36.
• Kalangos Mitral Sizers: model size 16, 18, 20, 22, 24, 26, 28, 30, 32, 24, 36.
• Kalangos Tricuspid Biodegradable Ring: sizes 16, 18, 20, 22, 24, 26, 28, 30, 32, 34, 36.
• Kalangos Tricuspid Sizers: model size 16, 18, 20, 22, 24, 26, 28, 30, 32, 34, 36.

3.2 Competitive Comparison

There are already existing heart rings on the market: Duran, Carpentier, Puig-Masada, Cosgrove, but none of them produce a biodegradable ring. The major benefits of Kalangos rings when compared to existing products available on the market are:

• Avoiding multiple surgical procedures (newborn and babies).
• Lowering the risk of local infection.

And moreover, the ring is attached to a suture-needle system which makes the surgical procedure easier and faster.

3.3 Sales Literature

Bioring advertisements and sales literature are under development.

Bioring is registered on the Web page of the Chambre Vaudoise du Commerce et de l’Industrie. The company intends to have its own presenting page on the Web once the products have been CE marked. 

3.4 Sourcing

Bioring SA manufactures its own products, using its in-house development process. The raw materials are provided by a major chemical supplier, which delivers to Bioring SA a customized polymer.

An injection molding press has been specially designed and installed to inject the polymer into the proprietary molds.

All operations, including the packaging of the final product, are done in a controlled environment: class 100 clean room.

The list of suppliers is considered as proprietary information, which is not disclosed here.

3.5 Technology

Bioring Kalangos biodegradable rings have been internationally protected by patent. A Swiss patent application has been filed in 1997, followed by a worldwide PCT application filed in 2000. Copies are available.

A trademark application is in progress.

3.6 Future Products

The development of the biodegradable polymer may meet other very promising applications in the fields of cardiac and vascular surgery. We are presently in the process of writing the extension of the initial patent and testing the very first prototypes of new implants. No information can be given at this stage.

Market Analysis Summary how to do a market analysis for your business plan.">

The market for annuloplasty rings is worth an estimated $250 million at end-user value in 2001, and is projected to grow at 3% per year according to professional forecasts published in specialized issues in 2000. Sources included The European Heart Institute and The National Center for Health Statistics in the USA.

Market leaders are Edwards Laboratories, Sulzer Medica, Medtronic. However, the industry is highly concentrated. The 10 major companies account for 95% of the total market.

4.1 Market Segmentation

The rings for annuloplasty belong to the heart valve repair industry.

We prefer a segmentation by addressed patients. This incorporates some of the product type differences, but in a more practical sense:

• The pediatric market, which is a potential market of 40,000 rings implanted per year.
• The adult market, which is a potential market of 200,000 rings implanted per year.

4.2 Target Market Segment Strategy

The following sections outline Bioring SA’s target market segment strategy.

4.2.1 Market Needs

We understand that our target market needs more than just standard rings covered with a polyester mesh. The need grew out of the special needs of neonate cardiac surgery. Our target customer wants to have this new possibility which they consider as a major improvement. There is a need for a high-quality prostheses which solves patient and surgeon problems. We don’t just sell a ring, we sell a new concept and a new surgical procedure.

4.2.2 Market Trends

Our market has finally grown towards more sophisticated technics of valve repair, where the surgeon will try to repair a portion a faulty valve. In the past years, he would have replaced the total valve. Fine repair of cardiac valve is the new trend.

4.2.3 Market Growth

According to The European Heart Institute, (Cardiovascular Device Update, August 98, page 2) the number of congenital heart defects treated in Europe in 1995 represented 24,400 procedures, which represent a rate of 48 surgical procedures per million. In 2002, it is projected to perform 28,000 surgical procedures (50 procedures per million). This market is growing at a annual rate of 1.9%.

According to the same source, the heart valve surgery market has accounted 66,700 procedures in 1995 (131 procedures per million). In 2002, it is projected to amount 84,000 procedures (150 per million), which represent an annual growth rate of 3%.

4.3 Industry Analysis

A recent article published in Cardiovascular Device Update, (December 2000), shows that the European and the U.S. market are practically the same size. The same issue of this paper indicated that the present potential U.S. market for cardiac abnormalities repair amounted $215 million per year, and that the congenital heart defects repair amounted for $149 million per year.

4.3.1 Industry Participants

The major players in this industry are international companies. It is a concentrated industry in which there are a few major players.

We are mentioning: Baxter Corporation (U.S.), Boston Scientific (U.S.), Cryolife (U.S.), Edwards Corporation (U.S.), Guidant (U.S.), Medtronic (U.S.), St Jude Medical (U.S.), Sulzer Medica (Switzerland).

4.3.2 Distribution Patterns

Distribution channels are of two types:

• Distribution through a national dealer.
• Distribution through a large multi-national company.

The cost of marketing a new class III device is becoming a serious barrier to enter a market. For bioring type of company, the best choice is to deal through national dealers in Europe and a major company in USA.

4.3.3 Competition and Buying Patterns

In the high-end specialty market, particularly in our niche, features are very important. Our target customer is not making selections based on price. The high-tech, innovative aspect, the easy-to-implant aspect, the reduced time of procedure, the anatomical shape, the physiological process and the clinical results are more important than pricing.

4.3.4 Main Competitors

In the field of cardiac surgery prostheses, the general trend is to develop anatomical and physiological mimetic implants. The ergonomy of the implant is also important.

In the field of pediatric surgery, as previously mentioned, there is no real competitor. Therefore the strategy of the company is to enter the market together with a well-known market leader, to avoid to be considered as a weak company by the market leaders.

In the field of adult surgery, the company will benefit of the presence on the market of the chosen distributors for pediatric surgery. In this field, our main competitors are: Edwards Laboratories, Sulzer Medica, Medtronic.

Strategy and Implementation Summary

Our strategy is based on serving niche markets well. What begins as a customized product, tailored to the needs of a local pediatric cardiac surgeon, can eventually become a niche product that will fit the needs of the pediatric cardiac surgeons worldwide. Our marketing infrastructure is built to reach our customers across broad geographic lines. Our products are designed to fit the need of the international cardiac pediatric surgeons community, as the market presence requires to fulfill with regulatory rules which are quite costly.

5.1 Marketing Strategy

Our marketing strategy is based on:

• Fulfillment with regulatory requirements: EC mark and FDA approval.
• Publication of clinical data in recognized international papers.
• Exhibition in the major congresses.
• Advertising in international papers.

We intend to participate in May 2001 in the 3rd World Congress of Pediatric Cardiology and Cardiac Surgery in Toronto, Canada, where we are showing our product for the first time to the world community.

In September, we intend to participate to the joint meeting of the European Association of Cardio Throracic Surgeons and the European Society for Thoracic Surgery where our consulting surgeon, Dr. Kalangos, is publishing clinical data.

5.1.1 Positioning Statement

For discriminating pediatric cardiac surgeons who want to benefit from the latest advances with polymer technology, Bioring offers superb anatomical design combined with state-of-the-art technology. For surgeons addressing cardiac adult surgery, unlike other non-biodegradable rings covered with polyester mesh. The Kalangos biodegradable ring, made of polydioxanone, offers an excellent resistance to infection. Polyester mesh is known to be an excellent support for bacterial growth.

5.1.2 Pricing Strategy

In the high-tech products market, pricing is based on the level of other similar products, already on the market. The European end-user market price for a standard cardiac ring is around $1,250. We intend to introduce Kalangos biodegradable ring at the same level of price. Price to distributor is $625, which provides the distributor enough margin to take care of its national market.

5.1.3 Promotion Strategy

The long-range goal is to create enough visibility to achieve the best penetration possible on the different markets.

We are intending to do it through:

• Scientific publications: a clinical study is published in September 2001 in Lisbonne.
• Advertising in specialized surgical journals: one European, one U.S.
• Cardiac surgery congresses and industry trade-shows: May 2001 in Toronto.
• Private clinical support and conferences by our consulting surgeon, who has accumulated strong experience.

5.1.4 Distribution Strategy

• Either through national distribution in Europe, and other parts of the world, and a company in USA.
• Or a large multinational company covering the worldwide market, on an exclusive basis. The exclusivity would have price, estimated to $2 million USD.

5.1.5 Marketing Programs

Our most important marketing program is CE mark approval. Philippe Le Goff is in charge of it, assisted by Raymond Andrieu and A. Kalangos. This program should be completed for the 1st of June 2001. This program will allow us to sell our ring in Europe. Achievement should be measured by receiving a CE number, which has to be printed on all packaging of the products.

Another key marketing program is the European distribution network. Raymond Andrieu is in charge of it, and most of European distributors should be appointed for July 2001. Achievement should be measured by signed agreements in the different countries.

The next important milestone is the FDA approval process. Raymond Andrieu will be in charge of it, with a budget of $ 200,000 and a milestone date of the 1st of December 2002. Achievement should be measured by receiving the official FDA approval document. This process is intended to be done in close collaboration with the U.S. company in charge of distributing the product in USA.

5.2 Sales Strategy

The sales strategy has been forecasted as follows:

Sales in Europe

In each European country a distributor has been chosen. By signing a distribution agreement, he has to order a minimum quantity of products to be sold in his country. This quantity is to be reviewed each year. He will at first develop the pediatric market, then the adult market. Each distributor is supposed to have a team of salesmen or saleswomen who are in charge of visiting cardiac surgeons in the country. Each salesperson is in charge of several hospitals in one area of the country. In a country like Germany, the distributor should have five or six salesmen or women to cover the country. The distributor should have enough products on the shelves to serve the needs of the country. The salespeople would sell products to public and private hospitals and clinics where cardiac surgery, either pediatric or adult, is performed. Large countries like Germany or France should have around 400 rings permanently on the shelves of the distributor. Invoicing to hospital, delays of payment of hospitals, shipment to hospitals, rings freely deposited in hospitals are under the management of the distributor.

Sales in USA

Once the U.S. distribution channel is chosen, the sales strategy will be discussed together with the U.S. company. It does not differ fundamentally from Europe. The major difference is the the U.S. sales team may belong to the U.S. distributor, or be independent from the U.S. distributor.

Sales in Other Parts of the World

It is intended to act as in Europe: nominate a local distributor who is able to have easy access to the cardiac surgeons community of his country.

5.2.1 Sales Forecast

Our sales forecast assumes no change in costs or prices, which is a reasonable assumption for the last few years.We are expecting to increase sales from $2.5 million (4,000 rings) to $10 million (16,000 rings) the second year. The growth forecast is very high, but we are developing new products. We expect growth of the pediatric market, where the product is really needed. We are not projecting significant change in the product line, or in the proportion between different lines.

5.2.2 Sales Programs

The company will mainly sell outside Switzerland, which is representing a very small market. It intends to develop persistent efforts to generate the distribution through major names in each country.

It intends to hire a marketing and sales executive, and a clinical director by 2002. Both positions will support international sales, by training the sales team, assisting them with key customers, and participating in international meetings.

5.3 Strategic Alliances

We have been contacted by several major U.S. companies, (Medtronic, St Jude), who are interested with our product line. In case they would wish to distribute the products worldwide, we would have to negotiate a fair fee for international exclusive distribution (U.S. $2 million), as well as the different involvements of both parties concerning regulatory affairs, marketing, clinical studies.

We would need to understand the real interest of these companies: do they wish to buy Bioring on a middle-term plan? At what price? What do they intend to do with Bioring’s manufacturing facility? The board is of the opinion that a fair offer from one of these companies should be seriously studied.

5.4 Milestones

The accompanying table shows specific milestones, with responsibilities assigned, dates, and budgets. We are focusing, in this plan, on a few key milestones that should be accomplished.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Bioring SA is slow to hire new people, and very loyal to those who are hired.

Immediate personnel plans call for increases from five to seven people two years from now. The increase is needed to support the effort to move on a real international base.

Management style reflects the participation of the owners. The company respects its community of co-workers and treats all workers well. We attempt to develop and nurture the company as a community.

6.1 Organizational Structure

Raymond Andrieu, president, is responsible for overall business management.

Philippe Le Goff, consultant, is responsible for product development, quality insurance and CE mark approval. He closely collaborates with Raymond Andrieu.

Afksendiyos Kalengos, cardiac surgeon, is responsible for the final presentation of the product, its adequation to the clinical needs, and clinical studies. He closely collaborates with Raymond Andrieu and Philippe Le Goff.

Danielle Collomb, assistant to the president, is responsible for relations with furnisher, orders to furnisher and all administrative current workload.

Marlyse Bertholet and Marie-José Raposo are producing the products. They report directly to Raymond Andrieu.

6.2 Management Team

The company is managed by:

Afksendiyos Kalengos: assistant pediatric and adult cardiac surgeon in Geneva University Hospital. He has also been nominated professor in foreign universities. He is presently following an MBA program during his free hours. He is considered as the reference surgeon in pediatric cardiac surgery in Switzerland. He developed the original idea together with the founder. He has a Ph.D.,  is 41 years old, a Swiss citizen, married and has two children.

Philippe Le Goff: chemical engineer, has a Ph.D. from Polytechnique School in Paris, where he ranked second and his wife as the “major” (first rank). He participated to the final development of the polymer synthesis. He is consultant to major pharmaceutical companies, where he is mainly in charge of the approval of the new synthesis pilot production for drugs by the regulatory authorities (CE and FDA). He is also in charge of developing industrial production based on pilot production and approval by authorities. He is a 38 years old French citizen, with Swiss residence approval, married with two children.

6.3 Management Team Gaps

There are two gaps in the planning process:

• The future distribution channel is still not yet established.
• We depend on our attorney to fight for unfair competition if it appears.

6.4 Personnel Plan

The personnel plan has been projected to cover the production needs over the considered period.

Two production people, working eight hours a day, five days a week, are able to manufacture up to 25,000 rings a year. If we add another team of two people, the production capacity reaches 50,000 rings a year.

The personnel table assumes 5% per annum pay raises. We already have a strong benefits policy with fully paid medical insurance for employees. We therefore expect very low turnover. A stock option plan is under study by our auditing company for Mr. Philippe Le Goff.

Salaries are generally in line with market pay for Lausanne and Geneva area, although our benefits are above standard market level, so we ultimately pay a bit more for our people than what might be considered industrial standard in the area. However, we are at the same level in our industrial area that local medical companies and biotech companies.

Financial Plan investor-ready personnel plan .">

The financial picture is quite encouraging. Sales are projected to start slowly, but this is due to the necessity of receiving CE mark. We need a second round of financing in April 2000 to start the sales on the market. The company has financed all machinery and tools and does not have any credit line. The original investors have been financing the development.

We want to finance growth mainly through cash flow. Collection days is very important. We do not want to let our average collection days get above 45 under any circumstances. We must maintain gross profit margins of 90% at the least, and hold marketing costs to no more than 5%. We are planning to receive tax exemption from the Canton of Vaud, which means that only federal tax is due to payment on net profit (around 10%) in FY2000. In the following years the total tax rate will be 25%

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

• We assume a slow-growth economy, without major recession.
• We assume that there are no unforeseen changes in technology to make products immediately obsolete.
• We assume access to equity capital and financing sufficient to maintain our financial plan.

7.2 Key Financial Indicators

The following chart shows changes in key financial indicators: sales, gross margin, operating expenses, collection days, and inventory turnover.

7.3 Break-even Analysis

Our Break-even Analysis is based on running costs, the “burn-rate” costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing. Between payroll, rent, utilities, and basic marketing costs, we think the number shown in the table is a good estimate of fixed costs.

The Break-even Analysis shows that Bioring has a good balance of fixed costs and sufficient sales strength to remain healthy. The essential insight here is that our sales level seems to be running comfortably above break-even.

7.4 Projected Profit and Loss

We expect sales to hit $2,500,000 for this year. It should increase to $10 million by the second year of this plan, as net earnings increase steadily. Our high sales volume has lowered our cost of goods and increased our gross margin. This increase in gross margin is important to profitability.

7.5 Projected Cash Flow

We expect to manage cash flow over the next three years with $100,000 of new investment in April 2000. This additional financing resources are required to finance the working capital.

7.6 Projected Balance Sheet

As shown in the balance sheet in the following table, we expect a healthy growth in net worth. The monthly projections are in the appendix.

7.7 Business Ratios

Our ratios look healthy and solid. Gross margin is projected to stay above 95%, and return on assets and return on equity are very sound. Debt and liquidity ratios also look very good, with debt to net worth running at respectively 0,34, 0,05 and 0,02. The projections, if we make them, are those of a very solid company. Industry profile ratios based on the Standard Industrial Classification (SIC) code 3842, Surgical Appliances and Supplies, are shown for comparison.

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What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

The vice president supports the tax increases proposed by the Biden White House, according to her campaign.

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By Andrew Duehren

Reporting from Washington

In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade.

That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring . Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration.

No one making less than $400,000 a year would see their taxes go up under the plan. Instead, Ms. Harris is seeking to significantly raise taxes on the wealthiest Americans and large corporations. Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.

While tax policy is right now a subplot in a turbulent presidential campaign, it will be a primary policy issue in Washington next year. The next president will have to work with Congress to address the tax cuts Donald J. Trump signed into law in 2017. Many of those tax cuts expire after 2025, meaning millions of Americans will see their taxes go up if lawmakers don’t reach a deal next year.

Here’s an overview of what we now know — and still don’t know — about the Democratic nominee’s views on taxes.

Higher taxes on corporations

The most recent White House budget includes several proposals that would raise taxes on large corporations . Chief among them is raising the corporate tax rate to 28 percent from 21 percent, a step that the Treasury Department estimated could bring in $1.3 trillion in revenue over the next 10 years.

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I'm going on a cruise with my family this winter, and my cruise travel insurance is essential

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• You can never be completely sure that you won't have to cancel a cruise, which is why I got travel insurance.
• My policy was $386 and includes a cancel for any reason benefit that will reimburse most of the cost.
• It also includes medical evacuation and repatriation in case of an emergency at sea.

A few weeks ago, I started researching trips for my family and me over the winter holiday season. After pricing out flights, hotels, and rental cars for vacations in Europe or tropical islands, I decided to pivot my planning.

While it's been 15 years since my last cruise, I was able to find deals that were affordable for a family of three. But I wanted to make sure that if we booked the cruise now, we'd have proper coverage in case something stood in our way from going in December.

With a kid and two adults, you never know who will be sick in the winter months or what types of winter storms will roll through, which makes travel insurance essential. 

While some travel insurance policies cover cruises, not all do. I decided to look into getting cruise travel insurance . Here's what it covers and how much it would cost for a family of three.

I was able to customize what type of coverage I wanted 

While cruise insurance policies offer a lot of the same coverage as travel insurance policies, they also offer additional add-on benefits that are relevant to cruises. I used a cruise travel insurance comparison site to find a plan through WorldTrips that covers all three of us for $386.

As I searched through quotes from different cruise travel insurance companies, I was able to select add-on coverage that I felt we needed. A lot of these options aren't usually offered with standard travel insurance.

For example, I added a hurricane and weather benefit. We live in New York City, and the cruise is in December. In case we're hit with a snowstorm or inclement weather, this policy allows us to cancel the cruise and receive a reimbursement. Without this coverage, we could miss the cruise and lose thousands of dollars.

I added on a cancel for any reason benefit 

One offering that cruise travel insurance companies usually have is a cancel for any reason upgrade. If we decide in the winter months not to go on the cruise anymore for no specific reason, we're able to get 75% of the cost of our trip back. 

This perk is usually an add-on for cruise travel insurance policies, but it is worth it. Even though it doesn't give you a full refund, it allows you to recoup most of your cruise costs if you no longer want to go.

The typical trip cancellation benefit offered by travel insurance companies only provides reimbursement if the trip is canceled due to specific things like illness, injury, or death.

Medical evacuation and repatriation was a must-have for our plan

One of the biggest reasons I wanted cruise travel insurance for my family was to cover any and all medical costs that could happen while we're out at sea. In addition to standard coverage, like emergency medical coverage (the plan I picked offers $100,000 per person in coverage), the plan also covers medical evacuation and repatriation, up to $250,000 per person.

This is important to me because if one of us gets very ill and has to be transported to a medical facility or return back home, this benefit covers the costs of that.

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