High-quality equipment is essential for doctors and other medical professionals to be able to treat patients. This equipment include gloves and masks (PPE), as well as specialized tools that are used by doctors, surgeons, and other health professionals. Hospitals and office managers work closely with medical supply businesses to procure this equipment and ensure they always have the items they need. With market size expected to reach 160 Billion USD by 2025, and a CRGA growth rate of 7.2 percent, it’s an opportunity to consider. Learn the basics of starting a medical supply company to ensure your success.
Pick a niche in medicine or an underserved market
A medical supply company is not like any other business. You need to identify what makes your brand stand out. Once you know that, you can find your target market and work to set yourself apart from competitors. To better understand your contribution to the industry, ask questions such as these:
- Do you have a specialization in medicine and can advise specialists on what they need?
- Are you a former doctor or a medical professional with real-life experience in medicine?
- Are there underserved markets that need reliable medical supplies?
- Have you thought of a way to get supplies to doctors quicker and better? Perhaps a subscription service, or an online portal.
- These questions will help you to establish your business. They will also help guide your marketing efforts and help you get funding.
Identify your business type
After you have an idea for a business, you can form your company. You will need to decide whether you would like to be a Limited Liability Corporation, C-Corporation, or S-Corporation. Your business structure will determine the type of business you choose. It will also affect how taxed you are, what fees you have to pay, and whether you need capital.
Work with a local accountant to help you decide what is best for your business and refer to the BizFilings business type comparison tool to get a better understanding of your options. Each state has its own rules and costs when forming a company. For example, you may need to file annual reports or pay an annual fee to keep your business operational. These details will assist you in choosing the right business entity to support your medical supply venture.
Get your operating licenses
You must register your company and obtain the necessary permits and business licenses for medical supply businesses. Although you may be able to legally operate an LLC or C-Corp, it doesn’t mean that you will be able to. The state must know you exist. You need to get your permits or licenses before you can start.
You can use the BizFilings’ Business License Wizard to identify which licenses would be relevant to your business and check with your local business regulations and requirements to ensure you have all the correct paperwork to begin operating. Fees may vary by state and be based on revenue.
Fund your business
A strong financial foundation and accurate bookkeeping are essential to any business. It is important to have a clear understanding of how you will fund your medical supply business and how it will impact your budget in the future. A few funding options include:
- Bootstrapping is when you rely solely on your money.
- A small business loan: You will need to work with a financial lender in order to obtain financing.
- Investors: As an investor, your company will work with private entities to raise funds. You’ll then be able to share a portion of your profits as the business grows.
- Crowd-funding: You can use a website like Kick-Starter, to raise funds from people all over the globe. This is an excellent option for socially-driven companies.
These medical supply financing options are not always viable. It all depends on the size of your company and startup costs. Each option has its advantages and disadvantages. You don’t need to share profits or pay interest by bootstrapping. However, this may not be an option for you if you don’t have startup capital.
Identify distributors and vendors
Your business’ foundation will be the close cooperation with medical vendors and distributors. These large-scale suppliers produce millions of supplies every year and then sell to distributors like you so that you can market the wares at a smaller scale. Consider these key factors when choosing your vendor(s) or supplier(s).
- Future innovation: Is your supplier planning to grow and innovate over the next few years? This will ensure that your business remains relevant.
- Communication: Are they good at communicating with me? Are their terms and details clear?
- Expertise: How knowledgeable are they about their market? What can you learn from their expertise?
- Quality: Do they have the same commitment to quality as you do?
- Delivery systems: Are they easy to use or difficult to manage?
To better understand the characteristics of successful Northwest haulage companies, consult a mentor or expert in medical supply and determine which distributors and vendors would best suit your needs.
Market your business and build your brand
After you have defined your business and its operations, all that is left is to execute your marketing strategy and business plan. You will open your warehouse, web site, or both during this time to ensure that you have somewhere to store the medical supplies, and/or manage orders.
This time can also be used to create marketing materials and reach out to potential clients. Different marketing strategies may be required for different industries. Make sure you do market research before you start to develop your marketing materials. This will allow you to pinpoint who you are trying to reach and how you can best reach them.