How to Open a Medical Supply Business
Starting a medical supply business can be a lucrative enterprise and a vital asset to the community. Medical supply businesses can offer services to people of your community as wells as medical facilities. And Internet sales may also supply added marketing opportunities for your business. Opening a medical supply business is much like starting any other product supplying business--there are several key steps to starting a business.
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Instructions
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Draft a professional business plan that outlines your medical supply business. The business plan should outline your goals and your business's planned development over the next five years. You should explain what your medical supply business will offer in services and who your target customers will be. Additionally, you should show how you expect to pay for the business, what kind of staffing you will need along with any other pertinent materials your new business may require to be fully operational. Make sure you explain the total startup costs you expect your business will require and the overhead costs you anticipate as well as all expected profits and expenses.
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Apply for any business loans or other financing funding options you may need in order to open your medical supply business, including applying for small business grants. Some government small business grants are available (see Resources). Medical supplies are quite costly, and initial startup costs can be high, so you should research other medical supply businesses in order to make sure you secure enough money to open your business. You will also need to set up your business banking account, including allowing for customer credit card payments.
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Apply for a business license with your city clerk's office and file all required state forms needed for opening a new business. Make sure you meet all the necessary state and local requirements for opening a new business, including acquiring business insurance. You will also have to apply for a employer identification number with the IRS, make sure you also pay any necessary new business fees and take care of all appropriate paperwork before the business is opened. Paperwork can consist of any hazardous material handling filing or licensing if your medical supply is going to handle oxygen tanks as well as X-ray chemical supplies. Check with the city clerks office on hazardous materials licensing for your businesses, along with any requirements you must meet.
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Locate a place of business and make sure that you are in an area that is easily assessable to the public--easily seen and not off the beaten path. The business location should also have plenty of space available for necessary deliveries of equipment and supplies. The business should offer space for deliveries, and should be big enough for any inventory you may need to keep in stock. A good way to gauge space requirements is to check with other medical supply businesses on space requirements, along with inventory that is in high demand and check turn-around time with distributors to make sure anything else you may need immediately can be overnighted to you at a moments notice (see Tips).
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Research and set up accounts with manufacturers and distributors you plan on ordering from. While some accounts will have to be prepaid when the orders are placed there may be some distributors that will set up business accounts for your company to be paid after receipt of merchandise. Start purchasing all the necessary business supplies and stock as soon as possible, including display cases, shelving and any other medical supply delivery equipment you may need to meet your medical supply orders.
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Hire all necessary employees needed for your business. Your medical supply business will also need a way to take messages when the business is closed in order to make sure the business is available at all times to its customers. The number of employees depends on the supplies your business will be handling. You may need to hire delivery personnel as well as a receptionist (see Tips). If you offer supplies that require professional training, such as oxygen delivery and setup, you must hire professionally trained and certified personnel to maintain that section of the business and its equipment. Personnel and patron safety must be maintained at all times or you could face fines by state inspectors (see Tips).
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Make a marketing plan for your medical supply business. Look for cost effective ways in which your business can market to the whole community along with any surrounding areas. Make sure you visit local medical facilities to entice them with introductory specials, free and fast delivery as well as fast and efficient repair of any equipment they may purchase. Leave fliers and business cards in offices, facilities and other public places to announce your medical supply business to the area.
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Tips & Warnings
Visiting other medical supply businesses can help you identify what your competitors have in stock and what services they have or may be lacking.
A good medical supply office should be at least 1,500 square feet with ample parking space.
Inquire of hospital procurement departments and medical facilities what are their most needed items and make sure you stock them.
Hire at least three people--one to help you in the store and two for delivery of supplies and equipment in case of employee absences.
Hire delivery drivers with previous medical hazardous materials handling experience if you will be delivering oxygen tanks and setup or X-ray chemicals.
References
Resources
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