Medical Supply Distributor Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Medical Supply Distributor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Medical Supply Distributor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Medical supply distributors are able to produce sales and income in any economic climate given that people are going to continue need to have their medical supplies sent to them on a monthly basis. One of the nice things about this industry is that an individual entrepreneur can start their operations by specializing in non-prescription based medical supplies with a focus on expanding their inventory as the company grows. In fact, most medical supply distributors who are starting off as smaller businesses will frequently take to providing non-prescription based supplies as a primary inventories until they have the capital to expand into more complex product lines. The barriers to entry for a new medical supply company can vary depending on what types of products are being sold. For instance, if a company specializes in soft medical supplies then the barriers to entry are going to be considered very low given that there is no licensure required in order to operate this type of business. However, if a medical supply distributors initially starts with pharmaceuticals, products that require prescriptions, or customized medical products in the barriers to entry can be significantly higher. The startup costs associated with this type of business is also highly variable as well. For a soft medical supplies distributor, these businesses can be started for as little as $50,000 all the way up to $100,000. For a business that specializes in more complex medical products these startup costs can balloon substantially. For instance, a company that specializes in providing pharmaceuticals can have startup costs as high as $250,000 only up to $500,000 depending on the type of inventories being carried. The gross margins associated with a medical supply are also varied but usually they range anywhere from 30% to 70% depending on the product being sold. A good rule of thumb is that the more complex the product – the higher the gross margins. These businesses, especially ones that provide mail-order service, are able to generate very recurring streams of revenue on a monthly basis which makes this a very attractive investment for a potential investor or financial institution.
Given the economically immune nature of the revenues produced by medical supply distributor – almost all financial institutions and private funding sources are willing to put up the necessary capital in order to launch this type of business. Of course, a medical supply distributor business plan is going to be required. As with all business planning documents, this plan should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that showcases the industry-standard figures for a medical supply distributor. One of the other things that needs to be included within the business plan is a demographic analysis of what type of individuals we purchasing products directly from the company. For soft medical supplies, this can be a highly very demographic given that almost everyone requires these types of products from time to time. However, if this business is going specialize in more complex medically focused products then a much more laser focused demographic analysis needs to be produced in order to understand who to target with specific types of marketing campaigns. In all of these analyses, and examination of population, population size, percentage of people that have a specific element that is being targeted, median household income, median family income, and whether or not the person has health insurance should be discussed within the business plan. Given that many of these businesses operate on both a wholesale any retail basis – and examination of the types of companies that will purchase these products on a wholesale basis may also be included as well.
Beyond the business plan, a medical supply distributor marketing plan should also be produced. This includes discussing how sales agents may be hired in order to develop ongoing purchase order relationships with pharmacies, hospitals, physicians offices, allied health professionals’ offices, and other related medical entities. One of the ways that these companies grow on a wholesale basis is to develop an independent sales network that operates on a commission basis. As it relates to retail sales or sales directly to a customer, it is very important that a expansive presence on the Internet is maintained. This is primarily due to the fact that people will now do their preliminary searches online for companies that provide the specific type of product that they are looking for. This website should have all the inventory offered by the business, hours of operation, when applicable insurance is accepted, and relevant contact information. A presence on social media is sometimes done by a medical supply distributor but is primarily just increase the brand-name visibility of the business. Not many people use popular social media platforms such as FaceBook, Google+, and Twitter in order to find specialized medical supplies. However, given that most companies to maintain a presence on social media it is important to at least have a profile page in place in order to provide a professional appearance for a company.
A medical supply SWOT analysis should also be included. As it relates the strengths, medical supply distributors revenues are completely immune from negative changes in the economy. Additionally, the gross margins generated by these businesses is considered to be moderate and these companies are able to remain profitable in almost any economic climate. For weaknesses, there are several thousand competitors within this market and many of these competitors are household names. As such, the entrepreneur needs to develop an appropriate differentiating factor for their business as they enter the market. For opportunities – as discussed above, many medical supply distributors will continually seek to expand their inventory lines as their client base expands. Given that once a client is obtained, they can be sold a number of different products that they may need on an ongoing basis. For threats, beyond any of the competitive issues that these businesses face there is the risk of decreases in the reimbursement rates among insurance companies, Medicare, and Medicaid. However, many of these businesses sell their products directly to their customers and receive payments directly from then. As such, this really only impacts medical supply distributors that have a significant number of complex medical products offered their frequently paid for by insurance.