Are you about starting a medical equipment rental company? If YES, here is a complete sample medical equipment rental business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a medical equipment rental business. We also took it further by analyzing and drafting a sample medical equipment rental business marketing plan template backed up by actionable guerrilla marketing ideas for medical equipment rental businesses. So let’s proceed to the business planning section.

Why Start a Medical Equipment Rental Business?

If you are interested in the rental industry and you are looking at launching a business as an aspiring entrepreneur, one of your best bet is to launch a medical equipment rental business. The right time to start such business is now because this business concept is presently at its growing stage.

Those that are engaged in medical equipment rental rent out different types of medical equipment, especially surgery and clinical equipment to clients and hospitals that need them to carry out treatments or surgery. Medical equipment rental can be a profitable business for someone who is a contractor. With the right location, reliable medical equipment and good marketing skills, you can attract loads of clients.

It is important to state that starting a medical equipment rental business requires huge startup capital because most of the equipment that these medical facilities use are usually expensive. The bottom line is that if you are determined to explore the entrepreneurial world by starting a medical equipment rental business, then you should consider going through the business plan below.

A Sample Medical Equipment Rental Business Plan Template

  • Industry Overview

The Medical Equipment Rental industry is made up of businesses that engage in general medical equipment rental, some other players in the industry may also engage in support services and surgical equipment rentals. Take for instance, some hospitals or medical facilities rent ultrasound, remote patient monitoring and X-ray equipment, as well as other types of medical equipment that tend to become obsolete quickly.

The Medical Equipment Rental industry offers a range of products, including surgical equipment and medical devices for fixed-term use.

The variety of products rented or leased mitigates the impact of increasing demand. Going forward, the industry will continue benefiting from startup hospitals and medical facilities resuming their prominence as the industry’s largest consumer group. This will be supported by steady growth in the number of startup hospitals, medical facilities and even freelance medical practitioners.

The Medical Equipment Rental Industry is indeed a large and vibrant industry not only in the united states of America and but also in most countries of the world. Statistics has it that the Medical Equipment Rental industry in the United States of America is worth about $4 billion, with an estimated growth rate of 2.9 percent between 2013 and 2018.

There are about 1,283 registered and licensed medical equipment rental businesses in the country and they are responsible for employing about 18,527 people. In the United States, the companies holding the largest market share in the industry include Acelity L.P. Inc. and Universal Hospital Services Inc., even at that, the industry is still very much open for competition from aspiring investors who want to launch their own business.

A recent report published by IBISWorld shows that over the past five years, the Medical Equipment Rental industry has exhibited growth due to the rapid advent of high-cost equipment. As many healthcare providers have grappled with cuts in Medicare and Medicaid reimbursements, and they have implemented cost-saving strategies.

Many healthcare providers have rented rather than purchased medical equipment because they can access up-to-date technologies at a lower cost. Furthermore, the regulatory environment has promoted demand for medical equipment rentals.

The report stated that the Medical Equipment Rental industry has grown by 2.9 percent to reach revenue of $4bn in 2018. In the same timeframe, the number of businesses has declined by -0.9 percent and the number of employees has grown by 1.6 percent.

It is a fact that the medical equipment rental industry is indeed a profitable industry to venture into. The truth is that if a medical equipment rental business is stocked with a wide array of medical equipment and is also well positioned in an environment with the right demography, they will sure attract regular clients and their medical equipment will be hired on a regular basis.

Medical Equipment Rental Business Plan – Executive Summary

Spiff Nathan® Medical Equipment Rental Company, LLC is a licensed medical equipment rental company that will be based in Columbia – South Carolina. We have been able to secure a corner piece property in a centralized location in the heart of the city; a location with loads of hospitals cum medical facilities and of course a location with the right demography for the kind of business we want to run.

We are a standard medical equipment rental company that will be involved in leasing and renting a wide range of medical, surgical, dental equipment and virtually any medical related equipment that is needed to carry out treatment. We are equipped to service a wide range of clientele in and around Columbia – South Carolina.

Spiff Nathan® Medical Equipment Rental Company, LLC is a client-focused medical equipment rental outfit that provides reliable medical equipment at affordable fees that won’t in any way put a hole in the pockets of our clients. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they rent our equipment.

Spiff Nathan® Medical Equipment Rental Company, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, 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 client’s needs precisely and completely.

Our plan is to position Spiff Nathan® Medical Equipment Rental Company, LLC to become the leading brand in the medical equipment rental industry in the whole of South Carolina, and also to be amongst the top 3 medical equipment rental outfits in the United States of America within the first 12 years of operation.

Spiff Nathan® Medical Equipment Rental Company, LLC is owned by Mr. Spiff Nathan. Mr. Spiff Nathan has over 12 years of hands-on experience working at various capacities within the medical equipment rental industry in the United States. Spiff Nathan has a BSc. Degree in Instrumental Engineering from the University of South Carolina.

  • Our Product and Services Offerings

Spiff Nathan® Medical Equipment Rental Company, LLC is going to offer varieties of services within the scope of the medical equipment rental industry in the United States of America. Our intention of starting our medical equipment rental company is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offerings are listed below;

  • Medical equipment rental
  • Surgical equipment rental
  • Dental equipment rental (Contra-angle dental handpiece, High-speed dental handpiece, Low-speed dental handpiece and Turbine dental handpiece)
  • Ophthalmic instrument (Diagnostic equipment, laser surgical equipment, surgical systems and instruments and eye-care diagnostic equipment)
  • Non – electronic medical, surgical, dental and veterinary instruments and apparatus, such as anesthesia apparatus, blood transfusion equipment, electro medical and electrotherapeutic apparatus, X-ray apparatus et al

Our Vision Statement

Our vision is to build a medical equipment rental business that will become the number one choice for both freelance medical practitioners and hospitals in the whole of Columbia – South Carolina. We want to be known as the go to company when it comes to medical equipment rentals no matter how expensive the equipment is.

  • Our Mission Statement

Our mission as a medical equipment rental company is to service a wide range of clientele in the healthcare sector. We are going to position the business to become the leading brand in the industry, and be also amongst the top 3 medical equipment rental companies in the United States of America within the first 12 years of fully launching the business.

  • Our Business Structure

Spiff Nathan® Medical Equipment Rental Company, LLC intends to start small in Columbia – South Carolina, but looks to grow big in order to compete favorably with leading medical equipment rental companies in the United States.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class medical equipment rental business we want to own. This is why we are committed to only hiring the best hands within our area of operation.

At Spiff Nathan, we will make sure that we employ people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. 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 five years or more as agreed by the board of trustees of the company.

In view of the above, we have decided to hire qualified and competent hands to occupy the following positions in our organization;

  • Chief Executive Officer (Owner)
  • Medical Equipment Rental Manager
  • Admin and HR Manager
  • Marketing and Sales Executive
  • Accountant
  • Customer Services Executive
  • Truck Driver

Roles and Responsibilities

Chief Executive Office:

  • 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
  • Responsible for fixing prices and signing business deals
  • Accountable for providing direction for the business
  • 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.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Medical Equipment Rental Manager

  • Manages the rental of medical equipment
  • Achieves maximum profitability and over-all success by controlling costs and quality of equipment and service.
  • Responsible for medical equipment leasing and rental control policies and completion of necessary forms.
  • Follows proper purchasing and requisitioning procedures.
  • Co-ordinates the general assembling and dismantling of heavy medical equipment and ensure that they are safely transported to and fro medical facilities.

Admin and HR Manager

  • Accountable 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.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Marketing and Sales Executive

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Writes winning proposal documents, negotiate fees and rates in line with company policy
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant

  • 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 for one or more properties.
  • Accountable for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive

  • Welcomes guests and clients 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 manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Truck Driver:

  • Accountable for transporting medical equipment rented by our clients from our warehouse to their medical facility and back to our warehouse
  • Run errands for the organization
  • Handles any other duty as assigned by the medical equipment rental manager.

Medical Equipment Rental Business Plan – SWOT Analysis

Because of our drive for excellence, we were able to engage some of the finest business consultants in Columbia – South Carolina to look through our business concept and together we were able to examine the prospect of the business to be sure that we have what it takes to run a standard medical equipment rental business.

In view of that, we were able to take stock of our strengths, weakness, opportunities and also the threats that we are likely going to be exposed to in Columbia – South Carolina. Here is a of what we got from the critically conducted SWOT Analysis for Spiff Nathan® Medical Equipment Rental Company, LLC;

  • Strength:

Notwithstanding the fact that all our medical equipment are of world – class standard and the business is well positioned and equipped to meet the 21st century demand of high profile hospitals, we have a team that can give our clients value for their money; a team that are trained and equipped to pay attention to details as regard assembling, servicing and maintaining medical equipment. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

  • Weakness:

A close study of our Business model shows that we will have to work pretty hard to order customized medical equipment so as to service a niche market in the healthcare industry; that is perhaps what we consider as a weakness for our business.

  • Opportunities:

The opportunities in the medical equipment rental industry is huge considering the number of hospitals that for obvious reasons would prefer renting or leasing medical equipment as against purchasing in the United States. Cost-cutting measures will encourage growth in medical equipment rental, thus benefiting the industry. As a standard medical equipment rental company, we are ready to take advantage of any opportunity that comes our way.

  • Threat:

If you are conversant with the healthcare industry, you will notice that medical equipment can become obsolete within a short period of time and that is perhaps one of our major threats. Some other threats that we may likely face as a medical equipment rental company are unfavorable government policies, the arrival of a competitor within our location of operation and of course a sharp drop in the prices of the medical equipment that we put out for leasing and rental.

Medical Equipment Rental Business Plan – MARKET ANALYSIS

  • Market Trends

Close observation of notable trends in the medical equipment rental industry shows that as healthcare providers experience larger volumes of privately insured individuals, many will use state-of-the-art equipment, such as medical equipment that includes software-based patient flow solutions, to improve patient flow.

As a result, many hospitals will rent medical equipment that helps cut cost and improve patient outcomes. In 2018, the number of people with private health insurance is expected to decline, posing a potential threat to the industry. As the number of adults aged 65 and older rises, so does the incidence of age-related ailments, such as chronic illness.

To provide care to this demographic, many healthcare providers will rent up-to-date medical equipment. In particular, many hospitals may rent more mobility aids. In 2018, the number of adults aged 65 and older is expected to increase, representing a potential opportunity for the industry.

The fact remains that the medical equipment rental industry is in a continuous state of evolution and as such, ground breaking strategies and ideas that were once highly successful are no longer as productive as they were in time past. Close observation of the trend in the industry reveals that the past few years have seen the rise and proliferation of social media and new tech tools.

The trend also extends to increased attention paid to engagement and new market segments, adopting eco-friendly measures and sustainability when making use of equipment, and of course increase in demands from contractors.

Lastly, aside from excellent customer services, medical equipment leasing and rental companies ensure that they have some of the best and latest medical equipment and tools they can get even if it means importing or customizing them. This will enable them to continue to welcome repeat customers on a regular basis.

  • Our Target Market

Even though Spiff Nathan® Medical Equipment Rental Company, LLC will initially serve small to medium sized hospitals, and freelance medical practitioners, but that does not in any way stop us from growing to compete with leading medical equipment rental companies in the United States.

As an all – round medical equipment rental company, Spiff Nathan® Medical Equipment Rental Company, LLC offers a wide range of medical equipment for rent hence we are trained and equipped to service a wide range of clientele base.

Our target market cuts across players in different niche areas in the healthcare industry. We are coming into the industry with a business concept that will enable us work with startups and specialist hospitals in the country. Below are some of our target customers;

  • Hospitals
  • Orthopedic hospitals
  • Health centers
  • Eye care clinics
  • Ear and throat clinics
  • Fertility clinics
  • Heart failure clinics
  • Diabetes clinics
  • Freelance medical practitioners
  • Dental clinics

Our competitive advantage

We know that to be highly competitive in the medical equipment rental industry means that your medical equipment put out for rental must be of high standard and your business must be well – positioned and equipped, you should be able to deliver consistent quality service, your clients should be able to experience remarkable difference cum improvement and you should be able to meet the expectations of your clients.

Spiff Nathan® Medical Equipment Rental Company, LLC might be a new entrant in the industry, but our wide range of medical equipment are top notch and of course our management staff are licensed and highly qualified to run such business.

Other competitive advantages that we are bringing to the market are our ability to quickly adopt new technology, economies of scale and the fact that all our medical tools are of world – class standard and the business is positioned and equipped to meet the 21st century demand.

Lastly, our employees will be well taken care of, and their welfare package will be amongst 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.

Medical Equipment Rental Business Plan – SALES AND MARKETING STRATEGY

We are mindful of the fact that there are fast growing competition amongst medical equipment rental companies in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing concerns.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place.

Our goal is to grow our medical equipment rental company to become one of the top 3 medical equipment rental companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in Columbia – South Carolina.

Spiff Nathan® Medical Equipment Rental Company, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to hospitals, medical clinics and other key stake holders in Columbia and other cities in South Carolina
  • Advertise our business in relevant health magazines, newspapers, TV and radio stations
  • List our business on yellow pages’ ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients
  • Make use of attractive hand bills to create awareness and also to give direction to our facility
  • Adopt direct mailing coupon marketing approach
  • Position our signage / flexi banners at strategic places in and around Columbia – South Carolina
  • Create a loyalty plan that will enable us reward our consistent clients especially those that refer clients to us.
  • Engage in roadshows within our neighborhood to create awareness for our medical equipment rental business.

Sources of Income

Spiff Nathan® Medical Equipment Rental Company, LLC is established with the aim of maximizing profits in the medical equipment rental industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Spiff Nathan® Medical Equipment Rental Company, LLC will generate income by offering the following services;

  • Medical equipment rental
  • Surgical equipment rental
  • Dental equipment rental (Contra-angle dental handpiece, High-speed dental handpiece, Low-speed dental handpiece and Turbine dental handpiece)
  • Ophthalmic instrument (Diagnostic equipment, laser surgical equipment, surgical systems and instruments and eye-care diagnostic equipment)
  • Non – electronic medical, surgical, dental and veterinary instruments and apparatus, such as anesthesia apparatus, electro medical and electrotherapeutic apparatus, X-ray apparatus et al.

Sales Forecast

One thing is certain, there would always be need for some hospitals and specialized clinics to rent medical equipment in the United States of America and as such the services of medical equipment rental companies will always be needed.

We are well positioned to take on the available market in Columbia – South Carolina and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation. We have been able to examine the medical equipment rental market, 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 projection for Spiff Nathan® Medical Equipment Rental Company, LLC, it is based on the location of our business and the wide range of medical equipment that we will be offering;

  • First Fiscal Year: $250,000
  • Second Fiscal Year: $630,000
  • Third Fiscal Year: $950,000

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 within the period stated above. There won’t be any major competitor offering 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.

Hourly billing for rental services is a long – time tradition in the industry. However, for some types of rental services, flat fees make more sense because they allow clients to better predict the overall service charges. As a result of this, Spiff Nathan® Medical Equipment Rental Company, LLC will charge our clients both flat fee and hourly billing as long as it favors both parties.

At Spiff Nathan® Medical Equipment Rental Company, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low. We are aware that there are some clients would need to rent medical equipment on a regular basis, we will offer flat rate for such services.

  • Payment Options

The payment policy adopted by Spiff Nathan® Medical Equipment Rental Company, LLC 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 Spiff Nathan® Medical Equipment Rental Company, LLC 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

In view of the above, we have chosen banking platforms that will enable our client make payment for rentals of our medical equipment and tools without any stress on their part.

Medical Equipment Rental Business Plan – Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the medical equipment rental industry by storm which is why we have made provisions for effective publicity and advertisement of our medical equipment rental company.

Below are the platforms we intend to leverage on to promote Spiff Nathan® Medical Equipment Rental Company, LLC;

  • Place adverts on both print (community based newspapers and health magazines) and electronic media platforms
  • Sponsor relevant community based events
  • 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 Columbia – South Carolina
  • Engage in roadshows from time to time in target neighborhoods to create awareness of our business
  • Distribute our fliers and handbills in target areas
  • Ensure that all our workers wear our branded shirts and all our vehicles and trucks are well branded with our company’s logo et al.

Medical Equipment Rental Business Plan – Financial Projections and Costing

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard medical equipment rental company in Columbia – South Carolina and here are the key areas where we will spend our startup capital;

  • The total fee for incorporating the Business in the United States of America- $750.
  • The budget for basic insurance policy covers, permits and business license – $2,500
  • The amount needed to acquire a suitable facility that will accommodate our heavy duty tools and equipment, trucks and small office facility (Re – Construction of the facility inclusive) – $150,000.
  • The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
  • The cost of launching an official website – $600
  • The cost for the purchase of a wide range of medical, surgical and dental equipment – $500,000
  • The cost for the purchase of a truck – $10,000
  • Budget for paying at least 4 employees for 2 months plus utility bills – $70,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous: $5,000

Going by the report from the market research and feasibility studies conducted, we will need about seven hundred and fifty thousand (750,000) U.S. dollars to successfully set up a medium scale but standard medical equipment rental business in the United States of America.

Generating Funds/Startup Capital for Spiff Nathan® Medical Equipment Rental Company, LLC

Spiff Nathan® Medical Equipment Rental Company, LLC is owned by Mr. Spiff Nathan. He has decided to restrict the sourcing of the startup capital for the business to just three major sources.

  • 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 $150,000 and soft loan from family members $100,000) 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.

MEDICAL EQUIPMENT RENTAL BUSINESS GROWTH: Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their 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 Spiff Nathan® Medical Equipment Rental Company, LLC is to build a business that will survive off its own cash flow without the need for 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 rent out our wide range of medical equipment a little bit lower than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Spiff Nathan® Medical Equipment Rental Company, LLC 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 re – training of our workforce is at the top burner.

We know that if all these are 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 Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank 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
  • Securing a standard warehouse facility and reconstruction inclusive: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating part of the startup capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
  • Purchase of various sizes of standard medical equipment: Completed
  • Purchase of trucks and vans: Completed
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in the industry: In Progress
Joy Nwokoro