Are you about starting a medical supply company and need to write a plan? If YES, here is a detailed sample medical supply business plan template & FREE feasibility report.
If the idea of owning a medical related business sounds good to you, then this is indeed the time to start your own medical supply business, create financial freedom, and be your own master.
Any known medical practitioner needs specific supplies to do their duties and these equipment need to be manufactured and supplied by a firm.
Businesses that supply these equipment are growing on a daily basis. Below is a sample medical supply business plan template that will help you successfully write yours without much stress.
A Sample Medical Supply Business Plan Template
1. Industry Overview
Players in the Medical supplies wholesaling industry purchase medical and surgical equipment, instruments and supplies, store these items at distribution centers, and deliver them to medical practitioners, clinics and hospitals.
A close study of the Medical Supplies Wholesaling industry reveals that revenue has increased steadily as the number of age-related non – elective procedures performed in the united states has increased. Rising product prices have also supported industry growth.
Revenue is projected to rise over the five years to 2022 as healthcare providers continue to invest in new equipment to keep up with growing demand for healthcare services. New product development by medical device manufacturers will also contribute to industry growth by offering new solutions to health issues.
The Medical Supplies Wholesaling industry is indeed a thriving in most countries of the world. In the United States of America, the industry generates over $194 billion annually from more than 13,223 medical supplies wholesaling companies.
The industry is responsible for the employment of over 218,294 people. Experts project that the industry will grow at a 1.9 percent annual rate between 2012 and 2017. The establishments in this industry that have dominant market shares in the United States of America are Cardinal Health Inc. and Owens & Minor Inc.
A recent report published by IBISWORLD shows that the barriers to entering the Medical Supplies Wholesaling industry are moderate. The importance of brand identity is minimal, because customers are concerned more with quality and price.
The low cost of customer switching will further ease the entry of new companies into the market. Switching costs are incidental and associated with changing transportation and communication systems.
Low switching costs encourage greater industry competition because new companies can more easily entice customers away from existing operators. The report also stated that, however, operators experience stringent regulatory controls and relatively high fixed costs, including warehousing technology, transportation equipment and complex machinery.
If you are contemplating starting your own medical supplies business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies. If you get some key factors wrong before starting your any business, then you are likely going to struggle to stay afloat.
2. Executive Summary
Phil Jason® Medical Supplies, Inc. is a registered medical supplies wholesaling business that will be located in one of the busiest streets in Cape Coral – Florida. We settled for Cape Coral because it is one of the top 50 markets in the country for the coveted millennial renter.
An appreciable percentage of current tenants are millennials because of close proximity to employment, retail and recreation hubs.
We have been able to lease a facility that can fit into the kind of standard medical supplies wholesaling business that we intend launching and the facility is located in a corner piece property close to the largest commercial hub in Cape Coral – Florida.
Phil Jason® Medical Supplies, Inc. will supply a wide array of medical and surgical equipment, instruments and supplies from different manufacturers (brands) from the United States and abroad. We are set to services a wide range of clientele in and around Cape Coral – Florida.
We are aware that there are several medical supply wholesaling businesses all around Cape Coral – Florida, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to compete with our competitors.
Phil Jason® Medical Supplies, Inc. will ensure that all our customers are given first class treatment whenever they do business with us. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they grow to. We will ensure that we get our customers involved in the selection of brands that will be in our supply chain.
Phil Jason® Medical Supplies, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, 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 customers’ needs precisely and completely whenever they patronize our products.
Phil Jason® Medical Supplies, Inc. is owned by Phil Jason and his immediate family members. Phil Jason has Degree in Pharmacy and an MBA, with over 15 years’ experience in the medical supplies industry, working for some of the leading brands in the United States.
Although the business is launching out by concentrating only in Cape Coral – Florida, but there is a plan to engage in supplies all around major cities in the United States.
3. Our Products and Services
Phil Jason® Medical Supplies, Inc. is in the medical supplies business to service a wide range of clients and of course to make profits, which is why we will make available a wide range of medical and surgical equipment, instruments and supplies from top manufacturing brands in the United States and other countries of the world.
Our product offerings are listed below;
- Nonelectronic medical, surgical, dental and veterinary instruments and apparatus, such as syringes, anesthesia apparatus, blood transfusion equipment, catheters, surgical clamps and medical thermometers, electromedical and electrotherapeutic apparatus, X-ray apparatus
- Surgical appliances
- Surgical instruments
- Hospital beds and other specialized hospital furniture
- Personal safety equipment
4. Our Mission and Vision Statement
- Our vision is to become one of the leading brands in the medical supplies line of business in Florida and to establish a one stop medical supplies wholesaling company in Cape Coral – Florida and other key cities in the United States of America.
- Our mission is to establish a world-class medical supplies wholesaling business that will make available a wide range of medical and surgical equipment from top manufacturing brands at affordable prices to businesses in and around Cape Coral – Florida and other key cities in the United States of America.
Our Business Structure
Our intention of starting a medical supplies wholesaling business is to build a standard company in Cape Coral – Florida. Although our company might not be as big as Cardinal Health Inc. and Owens & Minor Inc. et al, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.
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 ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Store Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Accountants/Cashiers
- Sales Agents/Customer Services Executive
- Truck and Van Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- 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
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible 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.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Warehouse Manager:
- Responsible for managing the daily activities in the warehouse
- Ensures that proper records of medical and surgical equipment are kept and warehouse does not run out of products
- Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
- Control medical equipment and instrument distribution and supply chain inventory
- Supervise the workforce in the warehouse.
Merchandize Manager
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure consistent quality of medical and surgical equipment from different manufacturers are purchased and retailed in good price
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
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
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Accountant/Cashier:
- 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
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- 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 customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
- Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- Make suggestions and encourage purchase of products
- Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
Truck and Van Drivers
- Assists in loading and unloading goods/medical supplies
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
- Assists the transport and logistics manager in planning their route according to a pick – up and delivery schedule.
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Reports defects, accidents or violations
6. SWOT Analysis
We are quite aware that there are several medical supplies wholesaling businesses all over Cape Coral and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Phil Jason® Medical Supplies, Inc. employed the services of an expert HR and Business Analyst with bias in distribution to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Phil Jason® Medical Supplies, Inc.;
- Strength:
Our business is located in a city with heavy medical activities and also, we can boast of having good business relationship with top manufacturers in the medical and surgical equipment manufacturing industry in and around Cape Coral – Florida.
- Weakness:
A major weakness that may count against us is the fact that we are a new medical supplies wholesaling business in Cape Coral – Florida and we don’t have the financial capacity to compete with multi – million dollars medical supplies wholesaling outlets like Cardinal Health Inc. and Owens & Minor Inc. when it comes to supplying at a rock bottom prices.
- Opportunities:
The fact that we are going to be operating our business close to the largest commercial hub in Cape Coral – Florida provides us with unlimited opportunities to sell our medical and surgical equipment to a large number of hospitals and other medical facilities.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they contact us; we are well positioned to take on the opportunities that will come our way.
- Threat:
A major threat that we are going to face as a medical supply business operating in the United States of America is uncertainty in government policies as it relates to price control and influx of medical and surgical equipment manufactured outside the United States of America.
When the prices charged by manufacturers to wholesalers’ declines, wholesalers typically have to reduce their selling prices to retailers. This results in subdued revenue growth for wholesalers, even if demand expands.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with medical supply business, you will quite agree that most medical supply businesses usually locate their warehouse close to medical facilities; it enables them make quick sales.
So also, the need to meet up with international best practices and conforming with the regulatory authority will result in revenue growth, but profit margins will stagnate as medical supplies wholesaling businesses keep prices low to attract more sales amid growing competition.
A close watch on the medical supplies business activities reveals that the industry has indeed done pretty well due to the strong demand for latest and efficient medical and surgical equipment, instruments and supplies. As part of marketing strategies, medical supplies wholesaling companies engage in massive clearance sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.
8. Our Target Market
We have positioned our medical supplies wholesaling business to service businesses in the healthcare industry in and around Cape Coral – Florida and every other location where franchise cum supplier will be located all over key cities in the United States of America and Canada.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to supply a wide range of medical and surgical equipment, instruments and supplies to the following customers;
- Hospitals
- Medical laboratories
- Medical colleges
- Dental clinics
- Optical centers
- Medical and surgical equipment retailers
Our Competitive Advantage
A close study of the medical supplies wholesaling industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiff competition and we are well prepared to compete favorably with other leading businesses in Cape Coral – Florida.
One thing is certain; we will ensure that we have a wide range of medical and surgical equipment, instruments and supplies from leading manufacturers available in our showroom and warehouse at all times. It will be difficult for customers to visit our showroom and warehouse and not see the type of equipment they are looking for.
Lastly, our employees will be well taken care of, and their welfare package will be among 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.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Phil Jason® Medical Supplies, Inc. is in business to retail a wide range of medical and surgical equipment, instruments and supplies in and around Cape Coral – Florida. We are in the industry to maximize profits and we are going to ensure that we achieve our business goals and objectives. Phil Jason® Medical Supplies, Inc. will generate income by supplying the following products;
- Nonelectronic medical, surgical, dental and veterinary instruments and apparatus, such as syringes, anesthesia apparatus, blood transfusion equipment, catheters, surgical clamps and medical thermometers, electromedical and electrotherapeutic apparatus, X-ray apparatus
- Surgical appliances
- Surgical instruments
- Hospital beds and other specialized hospital furniture
- Personal safety equipment
10. Sales Forecast
One thing is certain when it comes to medical supplies wholesaling business, if your showroom and warehouse are stocked with various types of medical and surgical equipment and is centrally positioned, you will always attract customers cum sales.
We are well positioned to take on the available market in Cape Coral – Florida and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base.
We have been able to examine the medical supplies wholesaling industry, 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 projections for Phil Jason® Medical Supplies, Inc. it is based on the location of our business and other factors as it relates to medical supplies wholesaling startups in the United States;
- First Fiscal Year (FY1): $450,000
- Second Fiscal Year (FY2): $950,000
- Third Fiscal Year (FY3): $1.850 Million
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 and there won’t be any major competitor retailing 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.
- Marketing Strategy and Sales Strategy
Before choosing a location for Phil Jason® Medical Supplies, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for hospitals and healthcare facilities in and around Cape Coral – Florida.
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 medical supplies wholesaling 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 Cape Coral – Florida.
In summary, Phil Jason® Medical Supplies, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our medical supplies wholesaling by sending introductory letters alongside our brochure to hospitals, dental clinics, optical centers, medical laboratories, medical and surgical equipment retailers and key stakeholders in Cape Coral – Florida
- Ensure that we have a wide range of medical and surgical equipment, instruments and supplies from different brands at all times.
- Make use of attractive handbills to create awareness and also to give direction to our showroom
- Position our signage / flexi banners at strategic places around Cape Coral – Florida
- Create a loyalty plan that will enable us reward our regular customers
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
- Join local chambers of commerce and industries to network and market our products
11. Publicity and Advertising Strategy
Despite the fact that our medical supply showroom is well located, we will still go ahead to intensify publicity for the business.
Phil Jason® Medical Supplies, Inc. has a long-term plan of opening outlets in various locations all around Florida and key cities in the United States, which is why we will deliberately build our brand to be well accepted in Cape Coral before venturing out. Here are the platforms we intend leveraging on to promote and advertise Phil Jason® Medical Supplies, Inc.;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Cape Coral – Florida
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact hospitals, dental clinics, optical center, medical laboratories and other health facilities by calling them up and informing them of Phil Jason® Medical Supplies, Inc. and the products we sell
- Advertise our medical supplies wholesaling business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and distribution vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to a medical supplies wholesaling business, which is why big players like Cardinal Health Inc. and Owens & Minor Inc. and co will attract loads of clients.
We know we don’t have the capacity to compete with market leaders in the industry, but we will ensure that the prices and quality of all the medical and surgical instruments and supplies that are available in our supply chain are competitive with what is obtainable in the industry.
- Payment Options
The payment policy adopted by Phil Jason® Medical Supplies, 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 Phil Jason® Medical Supplies, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via credit cards / Point of Sale Machines (POS Machines)
- 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 their purchases without any stress on their part.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have come up with a detailed budget for establishing a standard medical supplies business and here are the key areas where we will spend our start-up capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Phil Jason® Medical Supplies, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- 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 warehouse 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) – $60,000
- The cost for start-up inventory (stocking with a wide range of medical and surgical equipment, instruments and supplies from different manufacturing brands) – $550,000
- The cost for the purchase of distribution trucks – $29,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- Miscellaneous: $10,000
We would need an estimate of $750,000 to successfully set up our medical supplies wholesaling business in Cape Coral – Florida.
Generating Funds/Startup Capital for Phil Jason® Medical Supplies, Inc.
Phil Jason® Medical Supplies, Inc. is a private registered business that is solely owned and financed by Phil Jason and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the 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 signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Phil Jason® Medical Supplies, Inc. is to ensure that we continue to make available a wide range of medical and surgical equipment, deliver quality services, and improvise on how to do things faster and cheaper. We are not going to relent in providing a conducive environment for our workers.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our supply chain. We will not waste time in adopting new technology, best practices and diversifying our services.
Phil Jason® Medical Supplies, 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 company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
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 three years or more. 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.
Check List/Milestone
- 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 shop: 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
- Printing of Promotional Materials: In Progress
- Recruitment of employees: 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
- Compilation of our list of products that will be available in our supply chain: Completed
- Purchase of supply trucks and vans: Completed.
- Establishing business relationship with vendors – manufacturers and suppliers of medical and surgical equipment, instruments and supplies: In Progress