Are you about starting a blood bank? If YES, here is a complete sample blood bank business plan template & feasibility report you can use for FREE.
Blood is life and there is a thriving business that revolves around making blood available to those who need blood transfusion to stay alive. If you are an entrepreneur in the United States or in any country where private individuals are allowed to own blood banks, then you might want to consider starting your own blood bank business.
A blood bank is a facility or enterprise that collects and stores human blood from blood donors. Please note that a blood bank is one of those businesses that require you to first look at the existing laws in the country or State you reside before starting the business.
This is so because there is hardly any country that does not pay serious attention on their health sector. Any blood bank related business is usually highly regulated so as to guide against the infiltration of quacks.
If you want to start your own blood bank, then you should visit the health and medical regulatory body in your country to get all the required information. You should ensure that you carry out thorough feasibility studies and market survey.
Business plan is yet another very important business document that you should not take for granted when launching your own blood bank business. Below is a sample blood bank business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Blood Bank Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
The blood bank business falls under the Blood and Organ Bank industry and this industry comprises of medical facilities that primarily collect, store and distribute human blood, blood products and human organs.
In recent time, operators in the Blood and Organ Bank industry are contending with steadily rising demand for organs and blood. As a matter of fact, every year, there is a shortage of organs needed for life-saving transplants. In the face of high demand for certain organs and blood products, revenue hinges on donations.
Therefore, due to decreasing demand and supply constraints, industry revenue is expected to stagnate over the five years to 2017. Going forward, revenue is expected to slowly grow.
The Blood and Organ Bank industry is indeed a very massive industry in the United States. Statistics has it that the industry is worth $11 billion, with an estimated growth rate of 0.1 percent within the next five years. There are about 1,521 registered and licensed blood and organ banks in the United States and they are responsible for employing about 77,515 people.
It is important to state that American Red Cross and Blood Systems can boast of having the lion share of the available market in the industry in the United States.
A recent report published by IBISWorld shows that over the five years to 2017, the Blood and Organ Bank industry experienced both increased demand for and shortages of products and services. The industry relies heavily on donation of organs, blood and tissue which it collects, stores and distributes.
However, the number of donated organs has not satisfied public demand. Also, the report shows that each year, the number of individuals on the waiting list grows, while the number of willing donors and available transplants increases only tepidly.
The lack of available organs drastically hinders industry revenue. Over the five years to 2017, revenue rose at a marginal annualized rate of 0.1 percent to $11.1 billion. In 2017 alone, revenue is forecast to grow 0.7 percent. If you are considering starting your own blood bank in the United States, then you should try and work around the industry barriers.
The truth is that the barriers to entry in the blood and organ bank industry are high because of the significant regulatory requirements and the experience and strength of incumbents. For example, medical licensure creates a barrier to entry in the healthcare sector.
As a matter of fact, it is absolutely compulsory for any investor who is looking towards starting a blood bank business to meet extensive federal, state and local laws and regulations. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures.
Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly for aspiring entrepreneurs to enter the industry.
Over and above, if you are determined and you are ready to go all the way, you will surely succeed in establishing your blood bank in the United States of America and you will be glad you did because it is indeed a profitable line of business.
2. Executive Summary
Life Gate® Blood Bank, Inc. is a standard, licensed and government approved blood bank that will be located in the heart of Carson City, Nevada – United States of America. We have been able to acquire a standard facility that is highly suitable for the kind of business we want to operate.
Life Gate® Blood Bank, Inc. is in the healthcare services industry to collect blood from donors, and make available tested and well – screened blood for sale. We are well trained and equipped to service the market segments that require our healthcare related services.
We are in the blood bank business to deliver excellent services to all those who will patronize our services. We will also ensure that when carrying out our duty, we will comply with the laws and health regulations in the State of Nevada and the United States of America. Our employees are well trained and qualified to handle the wide range of services we will be rendering.
Life Gate® Blood Bank, Inc. will operate 24 hours, 7 days a week; our facility will be open round the clock to attend to clients.
We have a standard medical call center that is manned by trained health workers. Our employees are going to be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers.
Life Gate® Blood Bank, Inc. will ensure that all our patients cum customers are given first class treatment whenever they visit our blood bank. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base grows.
Life Gate® Blood Bank, Inc. is a family business that is owned and managed by Dr. Jake Larson and his immediate family members. Dr. Jake Larson is a Phlebotomist and a certified specialist in Blood Bank Technology with over 10 years’ experience working as a Clinical Laboratory Scientist with the United States’ government.
3. Our Products and Services
Life Gate® Blood Bank, Inc. is in the blood bank industry to make profit and we are going to do all that is permitted by the law of the United States of America to meet our corporate goals and ambitions. These are the services that Life Gate® Blood Bank, Inc. will be offering;
- Red blood cell collection, processing, and distribution services
- Blood plasma collection, processing, and distribution services
- Health screening services
- All other human blood services
- Reproductive and stem cell bank services
4. Our Mission and Vision Statement
- Our vision is to become the one stop shop when it comes to human blood delivery in the whole of Carson City – Nevada and also to be amongst the top 10 private blood banks in the United States of America within the next 10 years.
- Life Gate® Blood Bank, Inc. is in business to establish a first – class privately run blood bank that will at all time abide by international best practices in the industry. We want to become one of the leaders in the blood bank industry in Nevada, and in the United States of America.
Our Business Structure
From the outset, we have decided to recruit only qualified professionals in the blood bank industry to man various job positions in our organization. We are quite aware of the rules and regulations governing the blood and organ bank industry which is why we decided to recruit only well experienced and qualified employees as staff of the organization. We hope to leverage on their expertise to build our private blood bank to be well accepted in Carson City – Nevada and the whole of the United States.
When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. 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 five years or more.
These are the positions that will be available at Life Gate® Blood Bank, Inc.;
- Chief Phlebotomist/Chief Executive Officer
- Lab Technicians/Phlebotomist
- Nurses/Nurse’s Aides
- Sales and Marketing Executive
- Customer Care Executive
5. Job Roles and Responsibilities
Chief Phlebotomist/Chief Executive Officer:
- 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; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Answerable for fixing prices and signing business deals
- Accountable for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Takes care of the induction for new team members
- Responsible for managing our blood bank services
- Responsible for collecting, screening and storing human blood and organs from donors and sellers
- Issues out blood and organs that matches the request of our clients/patients
- Certifies that the organization abide by international best practices as it relates to our industry
- Responsible for managing our patients
- Assist the phlebotomist and lab technician in collecting blood
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- In charge of handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Produces new markets cum businesses for the organization
- Allows and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization.
Client Service Executive
- Welcomes clients and potential clients (donors) by greeting them in person or on the telephone; answering or directing inquiries
- 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 clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the chief executive officer in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for cleaning the blood bank facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Handle any other duty as assigned by the chief phlebotomist or any superior officer
6. SWOT Analysis
Life Gate® Blood Bank, Inc. is set to become one of the leading blood banks in Carson City – Nevada which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ in our business. We want our blood bank to be the number one choice of all hospitals and healthcare facilities in Carson City – Nevada.
We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.
Even though our Chief Phlebotomist has a robust experience in the blood and organ banks industry, we still need to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also help us structure our business to become a leader in the blood bank industry.
This is the summary of the SWOT analysis that was conducted for Life Gate® Blood Bank, Inc.
Our strength lies in the fact that we have a team of qualified professionals manning various job positions in our blood bank. As a matter of fact, they are some of the best hands in the whole of Carson City – Nevada. Our location, the Business model we will be operating on, opening 24 hours daily and 7 days in a week, multiple payment options, well equipped medical call center and our excellent customer service culture will definitely count as a strong strength for us.
Our perceived weakness lies in the fact that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business and also the finance needed to run the facility.
The opportunities that are available to blood banks are unlimited considering the ever-growing rate of blood transfusion carried out all across the world and we are going to position our blood and organ bank to make the best out of the opportunities that will be available to us in Carson City – Nevada. A fast-growing elderly population will contribute to higher demand for blood and organs.
Just like any other business, some of the major threats that we are likely going to face are lack of organ donations which is a prevalent problem for the industry, economic downturn and unfavorable government policies (healthcare reforms). Another threat that may likely confront us is the arrival of a bigger/well established blood and organ bank in the same location where our facility is located.
7. MARKET ANALYSIS
- Market Trends
The United States leads the global market especially as it has a healthcare system that is not only well developed but also properly coordinated. Other factors causing the United States to lead the pace is also its adoption of advanced technologies, its reimbursement policies that are favorable, its high standard of care and the strong support it gets from government.
The Asia-Pacific has however been projected to lead the fastest growth due to its growing per capita spending on healthcare, underserved blood services causing the inability to meet patient needs, development of healthcare infrastructure and the rising demand for medical tourism.
The blood bank industry has its challenges though and one of them has to do with a market that is constantly shifting. Blood banks over the years have often operated on the assumption that there will always be blood shortage which led to several cancelations of elective surgeries.
However, the recession caused a change in the procedures as there was surplus blood being ready to be supplied. This however led smart entrepreneurs to act as industry middlemen and therefore take advantage of the surplus by soaking up the excess blood pints and then distributing them where they are needed.
Whole blood usually cost around $100, however when broken into various components can fetch nearly $200. Because of the limited number of days red blood cells (42 days) and platelets (5 days) can be stored, there is a huge waste in the system as every year, up to 14 percent of blood pints that had been donated are being discarded. Also, some of the blood pints that are being discarded spoil during shipping, while the rest are wasted at hospitals.
8. Our Target Market
Life Gate® Blood Bank, Inc. is in business to service a wide range of customers in Carson City – Nevada. We will ensure that we target self – pay customers who do not have health insurance cover, and those who have health insurance cover.
The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the blood banks industry in the United States.
Our Competitive Advantage
Aside from the competition that exists amongst various blood banks, they also compete against other healthcare services providers such as hospitals, health centers and community clinics that collect and distribute blood. To be highly competitive in the blood bank industry means that you should be able to collect and make available well – screened blood and should be able to meet the expectations of your clients at all time.
Life Gate® Blood Bank, Inc. is coming into the market well prepared to compete in the industry. Our blood and organ bank is well positioned and visible, we have enough parking space with good security. Our staff are well groomed in all aspects of blood banking service delivery and all our employees are trained to provide customized customer service to all our clients.
We are going to be one of the few blood banks in the whole of Carson City – Nevada that will run a standard medical call center for 24 hours a day and 7 days a week.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Life Gate® Blood Bank, Inc. will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the sources we intend exploring to generate income for Life Gate® Blood Bank, Inc.;
- Red blood cell collection, processing, and distribution services
- Blood plasma collection, processing, and distribution services
- Health screening services
- All other human blood services
- Reproductive and stem cell bank services
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also on the assumptions readily available on the field.
We have been able to critically examine the blood banking market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Carson City – Nevada.
- First Fiscal Year: $50,000 (From Self-Pay Clients/Patients) and $100,000 (From Health Insurance Companies)
- Second Fiscal Year: $100,000 (From Self-Pay Clients/Patients) and $150,000 (From Health Insurance Companies)
- Third Year: $150,000 (From Self-Pay Clients/Patients) and $300,000 (From Health Insurance Companies)
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing and sales strategy of Life Gate® Blood Bank, Inc. will be based on generating long-term personalized relationships with customers (blood donors and collectors). In order to achieve that, we will ensure that we offer well screened blood at affordable prices compare to what is obtainable in Carson City – Nevada.
All our employees will be well trained and equipped to provide excellent blood banking services and customer service. We know that if we are consistent in offering high quality service delivery and excellent customer service, we will increase the number of our customers by more than 25 percent for the first fiscal year and then more than 40 percent subsequently.
Before choosing a location for our blood and organ bank, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for hospitals and other healthcare facilities in Carson City – Nevada. 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 blood bank 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 Carson City – Nevada.
In summary, Life Gate® Blood Bank, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our business by sending introductory letters to hospitals and health facilities in and around Long Beach – California
- Advertise our blood bank in community based newspapers, local TV and radio stations
- List our blood bank on yellow pages ads (local directories)
- Leverage on the internet to promote our blood and organ bank
- Engage in direct marketing
- Leverage on word of mouth marketing (referrals)
- Enter into business partnership with health management organizations, government agencies and health insurance companies
11. Publicity and Advertising Strategy
We are in the private blood banking line of business to become one of the market leaders and also to maximize profits hence we are going to explore all available means to promote our business.
Life Gate® Blood Bank, Inc. has a long – term plan of opening our blood and organ collection centers in key cities around Nevada which is why we will deliberately build our brand to be well accepted in Carson City before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public.
Here are the platforms we intend leveraging on to promote and advertise Life Gate® Blood Bank, Inc.;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community health programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Carson City – Nevada
- Engage in roadshows from time to time in target communities
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our organization’s logo
12. Our Pricing Strategy
Life Gate® Blood Bank, Inc. will work towards ensuring that all our products and services are offered at highly competitive prices compare to what is obtainable in the United States of America.
On the average, blood banks usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment. In view of that, it is easier for blood banks to bill their clients based in their discretion. We will ensure that we abide by the pricing model of what is obtainable in the blood and organ banks industry.
- Payment Options
The payment policy adopted by Life Gate® Blood Bank, 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 Life Gate® Blood Bank, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- 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 our services and products without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
If you are looking towards starting a standard blood bank, then you should be ready to go all out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.
You would need money to secure a standard facility, you will need money to acquire medical equipment and supplies and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them. The items listed below are the basics that we would need when starting our blood and organ bank in the United States;
- The total fee for registering the Business in the United States – $750
- Legal expenses for obtaining licenses and permits – $1,500
- Marketing promotion expenses for the grand opening of Life Gate® Blood Bank, Inc. – $3,580
- The cost for hiring Business Consultant – $2,500
- The cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400
- 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 blood bank 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) – $300,000
- The cost for Start-up inventory – $250,000
- Storage hardware (bins, rack, shelves,) – $3,720
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000
- The cost of launching a website: $700
- Miscellaneous: $10,000
We would need an estimate of $700,000 to successfully set up our blood bank in Carson City – Nevada.
Generating Startup Capital for Life Gate® Blood Bank, Inc.
Life Gate® Blood Bank, Inc. is a private business that is owned and managed by Dr. Jake Larson and his immediate family members. They are the financier of the business, but may likely welcome partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my 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 duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Life Gate® Blood Bank, Inc. is to build a business that will survive off its own cash flow without the need of injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Life Gate® Blood Bank, 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 organizations’ corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
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.
- Business Name Availability Check: Completed
- 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 facility to suit the design of our blood bank facility: 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
- Graphic Designs and Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of lab and medical equipment and instruments et al: 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
- Opening party/launching party planning: In Progress
- Establishing business relationship with key stakeholders in the industry: In Progress