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June 14, 2022

I’ve always been interested in business and healthcare, so when I started researching how to start a medical supply business, it was a perfect fit for me. I knew that there was a need for reliable and affordable medical supplies, so I decided to fill that need.

With the proper planning and execution of your medical supply store, you can reap great profits.

Below you will learn the keys to how to start a medical supply business.

How to Start a Medical Supply Business in 14 Steps

1. Choose a Name

The first step in starting a medical supplies business is choosing what to name it.

Choosing a company name is incredibly important since it’s what you’ll be known by for the lifespan of the business. A memorable name is ideal, but make sure it conveys what the company does.

Here are some things to keep in mind when naming your medical supply business:

  1. Make sure the name is available. Do a trademark search to make sure your name isn’t already taken. Then, check if a domain name is available for your business.
  2. Keep it simple. The most effective names are the ones that are easy to remember, say and type.
  3. Think about marketing. Make sure you think carefully about what kind of image you want to project, and the kind of products you’ll be selling.

2. Write a Business Plan

Before starting a business, the most important step is to develop a comprehensive business plan. This will ensure you know everything there is to know about your market and your business.

The business plan will provide you with a road map and if you need it, a pitch deck that you can use to fundraise.

Your plan should cover these main topics:

  1. Executive Summary – This should quickly summarize the key points of your sales plan so your readers can understand your business.
  2. Company Overview – Tell the reader about the history of your medical supply business and what type of medical business you operate.
  3. Industry Analysis – Conduct market research and document how big the industry is and what trends are affecting it.
  4. Customer Analysis – Who is your ideal customer? What are their demographics?
  5. Competitive Analysis – Make a list of your competitors and how you will build a competitive advantage.
  6. Marketing Plan – Address the 4Ps: Product, Price, Promotions, and Place.
  7. Operations Plan – Write down the key processes for your day-to-day operations.
  8. Management Team – Describe the background of your management team.
  9. Financial Plan – Do you need funding to cover startup costs? How will your medical supply business make money?

3. Choose the Legal Structure for Your Business

You must choose and register a legal business entity for your medical supply company. This must be done in each state where you do business.

Below are the 5 most popular business structure types:

Sole Proprietorship

A sole proprietor is the simplest form of a business. It is owned and run by one person, who is responsible for all liabilities and debt. This form offers complete freedom to the business owner. If you’re thinking about starting a medical supplies company, a sole-proprietorship might be right for you.

A sole proprietor is the simplest and least expensive type of business to set up.

The disadvantage of a sole proprietorship is that the business owner is personally responsible for all the liabilities and debt the business incurs.

Partnerships

A partnership involves two or more people who want to start and run a business together.

The business partners share both the gains and losses of a business.

A business partnership with another firm is an arrangement where two companies agree to work together. The advantage is the ease of forming it, and the partners share the profits and losses.

The disadvantage to forming a partnership with another business is that both you and your business partner are liable for the business’s debts, and it can be hard to come to a consensus if the two of you disagree.

Limited Liability Company

A limited liability company (LLC) is a type of business that shields the owners from personal liability for the company’s debt. An LLC is formed when articles are filed with the state where the business is headquartered.

A limited liability company (LLC) has several benefits for medical suppliers, such as flexible management and limited liability for owners. However, an LLC has a couple of drawbacks, such as not being available in all states and requiring self-employed tax payments.

C Corporation

C corporation is a legal entity that is separate from the people who own it. It has its own tax ID and shareholders.

This type of business offers limited liability to its owners. This means owners are not personally responsible for the debts and liabilities of the company.

This can be advantageous for a medical supply store, as it protects the owner from having to foot the bill if the company is sued or goes bankrupt.

The disadvantage of a C Corporation is that both the company and the shareholder have to pay taxes.

S Corporation

An S-Corporation is a type of business structure that allows business owners to avoid being taxed twice on business profits.

There are limitations to an S Corporation, such as how many owners they can have.

After registering your medical supplies company, you will need to complete additional paperwork, including your “articles of incorporation”, to open a business bank account.

We recommend you consult with a lawyer to see which business structure is best for you. This will ensure you’re set up in the most favorable way.

4. Secure Startup Funding

In your business plan, you realized you needed to secure funding to launch your medical supply company.

Funding options for medical suppliers include credit cards, loans, friends and family, and investments from angels and venture capitalists.

An angel investor is an individual who provides funding to startup companies.

Medical supplies are in high demand, so angel investors usually invest in businesses that have the potential for rapid growth.

5. Find a Location for Your Business

When looking for a location for a medical supply store, make sure it’s easily accessible and convenient for your customers.

You’ll need to make sure that you’re prepared with enough inventory and space for your equipment and supplies. It’s also important to find a cost-effective storage facility.

6. Register Your Business with the IRS

Before you can start operating your business, you’ll need to get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is used to keep track of any taxes that you pay, and it’s also used to distinguish you from other businesses.

To open a bank account, most financial institutions require an Employer Identification Number (or EIN). Likewise, if you want to hire someone, you will need to have an EIN, as this is how the Internal Revenue Service (IRS) keeps track of your payroll taxes.

If you are a sole proprietorship with no other employees, you can use your Social Security number as your TIN.

7. Open a Business Bank Account

Opening a bank account for your medical supplies company is a simple process. Here are the steps:

  1. Contact your preferred bank.
  2. Submit the required documents.
  3. Complete the bank’s application form.
  4. Meet with a banker to discuss your business needs.

8. Get a Business Credit Card

You should get a business credit card for your medical supplies company to separate your business and personal spending.

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

When applying for a business loan, you’ll typically need to provide some information about the small business. This information includes the name of the company, the address of the office, and the type of industry the business is in.

You’ll need to supply some personal information, such as your full name, social security number, and birth date.

Once you’ve received approval for a small business line of credit, you can use it to purchase supplies, equipment, and other business-related items.

You can also build your credit score by using it. This is very important for getting loans or lines of credit from banks or lenders.

9. Apply for Business Licenses and Permits

You will need to obtain a business license, as well as a permit to operate as a medical supply business and sell medical supplies. You may also be required to obtain a sales tax permit. Please check with your local business licensing office to determine which licenses and permits are necessary for your area.

10. Apply for Business Insurance

The types of medical insurance policies you’ll need depend on the scope of your operations.

Some types of insurance that your business should consider having are:

  • General liability insurance: This coverage protects your business from liability issues caused by you or your employees. This includes any bodily or property damage that occurs on your premises.
  • Workers’ compensation insurance: This type of coverage protects business owners from employee injuries on the job. It covers medical costs and wages lost while the employee is recovering.
  • Commercial property insurance: This coverage pays for any property damages resulting from a fire, burglary, or an act of vandalism.
  • Business interruption insurance: This coverage will reimburse you for the income you lose if your company is shut down by a covered loss.
  • Professional liability insurance: This protects you against claims by clients against professional negligence.

An insurance agent can help you figure out which policies you need for your business.

11. Buy or Lease Business Equipment

As a medical supply company, you will need some essential office equipment. This includes items like computers, phones, printers, and fax machines. Depending on the size and scope of your operation, you may need other types of equipment as well.

If you operate a warehouse for wholesale distribution, you may need a forklift to move inventory around. If you deliver medical supplies, you’ll likely need a vehicle for transport.

Depending on the size and scope of your operation, other pieces of equipment may be necessary. It’s important to research the specific equipment required to run your business effectively.

12. Prepare Your Marketing Materials

To attract new customers to your medical supplies company, you’ll need to invest in marketing materials.

Here are the key materials you’ll need for marketing:

  1. Logo: Spend time designing a great company logo for your medical supplies store. Your logo design will be printed onto all of your stationery, including your business cards, letterheads, and envelopes. A well-designed, professional-looking, and memorable brand can help increase your customer base.
  2. Website: Like any other company, a medical supply store’s website should provide basic information like product descriptions, contact information, and company history. But don’t forget that the look and design of your site can also affect how your customers view you.
  3. Social Media Accounts: Create accounts on social media websites such as Facebook, Twitter, and Instagram. These sites can help people find your medical supplies company.

13. Purchase Software for Your Business

You’ll need software to manage inventory, sales, and customer relationships. You’ll also need accounting software to manage finances.

When it comes to software for your medical supply business, you have options. Some software companies offer comprehensive programs made specifically for businesses like yours. With a little research, you can find the right fit for your needs.

So, with a little bit of searching, you should find one that fits your needs.

14. Open for Business

You’re now ready to start your medical supplies company. If you followed the above tips, you should be in an excellent place to start building your business.

Conclusion

If you’re interested in how to start a medical supply business, let these 14 steps be your guide to success. With careful planning and execution, you can be successful in this growing industry.

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