How to Start a Medical Equipment Supplies & Wholesale Business

Saturday, December 20, 2014

How to Start a Medical Equipment Supplies & Wholesale Business

Medical Equipment Business: Business Ideas

Medical equipment is designed to aid in the diagnosis, monitoring or treatment of medical conditions. Health is always given a high priority in all respects - Current generation is conscious on having a periodic checkup and maintaining sound health. This awareness gives an upper hand to medical business and hence the hospital equipment supply business.

A medical equipment business is a good venture to invest on particularly because of the booming healthcare industry. Getting into a business that supplies home medical equipment and hospital medical equipment can be very profitable.

All types of medical professionals, from veterinarians to midwives and eye doctors, need specific supplies to do their jobs. Most medical supplies are bought from niche companies that specialize in a certain type of equipment. Though there are many large medical supply companies, it is quite possible for a small independent medical supply business to find success in this industry. If you're looking to start a retail business and would like to work in the health care industry, consider starting a medical supply company.

This advice is perfect for entrepreneurial folks who hope to start a medical equipment and supplies wholesale and manufacturers business. Make sure you consider this advice before you begin your venture.

Thinking about opening a medical equipment and supplies wholesale and manufacturers business? We tell you what you need to know to get started.

It is however essential that you equip yourself with the necessary know- how in marketing medical equipment supply for you to become competitive in medical equipment sales. Here are some things that you have to remember when starting a medical equipment business:

Types

There are several basic types:

Diagnostic equipment includes medical imaging machines, used to aid in diagnosis. Examples are ultrasound and MRI machines, PET and CT scanners, and x-ray machines.
Therapeutic equipment includes infusion pumps, medical lasers and LASIK surgical machines.
Life support equipment is used to maintain a patient's bodily function. This includes medical ventilators, anesthetic machines, heart-lung machines, ECMO, and dialysis machines.
Medical monitors allow medical staff to measure a patient's medical state. Monitors may measure patient vital signs and other parameters including ECG, EEG, blood pressure, and dissolved gases in the blood.
Medical laboratory equipment automates or helps analyze blood, urine and genes.
Diagnostic Medical Equipment may also be used in the home for certain purposes, e.g. for the control of diabetes mellitus

A biomedical equipment technician (BMET) is a vital component of the healthcare delivery system. Employed primarily by hospitals, BMETs are the people responsible for maintaining a facility's medical equipment. BMET mainly act as a interface between doctor and equipment,

Choose a good location where people can easily buy medical equipment from you

The type of merchandise that you are selling is the ones that people will actually look for after a visit from the hospital or from their doctor. It is therefore a great idea of you choose a location for your medical equipment store that is near, visible and accessible from healthcare establishments like hospitals and clinics. Being able to sell medical equipment supply from these areas will allow people to easily see you when they are looking for home medical equipment or hospital medical equipment. People will also find it easier and hassle-free to buy their medical equipment supply from a medical equipment store that is near them or is very accessible.

Get the best deals from medical equipment manufacturers

In order for you to do well in the medical equipment business, it is a must that you price your goods competitively. This requires that you get the best deals from medical equipment manufacturers where you will be getting the supplies that you will sell in your medical equipment store. You can do this by contacting medical equipment manufacturers and telling them about your business. Most medical equipment manufacturers can provide special prices for medical equipment stores. Get quotes and ask possibility of discount for bulk orders.

Know what medical equipment sells best

If you have limited capital and you cannot afford to make every medical supply available for your clients, it is best that you know what particular medical equipment sells like pancakes and which ones seldom sell. You may decide not to purchase medical supplies that do not sell well but you also have the option to offer your clients an order system when they need to purchase hard- to-find items. If you cannot provide every medical equipment brand for your medical equipment store, get your supplies from reputable and established medical equipment manufacturers because many people still prefer to buy medical equipment made by reputable manufacturers.

Medical Wholesaler Essentials

With healthcare costs estimated to be as much as 16% of the nation's GDP, it's not hard to see why medical equipment & supply wholesale businesses are popular start-ups for growth-minded entrepreneurs.
In contrast to other medical startups, medical equipment & supply wholesale & manufacturing businesses don't require advanced medical training. Although a working knowledge of orthopedics, medical equipment, safety devices and other products is important, you don't need a medical degree to succeed as a wholesaler or manufacturer.

Selling Strategies for Medical Equipment & Supply Wholesalers

The sales strategy you create for your startup will depend on the shape and scope of your operation. If your product line primarily consists of advanced medical equipment (e.g. diagnostic devices for hospitals and physicians), your strategy will need to be more sophisticated and include a team of knowledgeable field reps who are capable of interacting with medical professionals.
On the other hand, if your start-up will mostly cater to patients, you'll need to tailor your sales strategy toward medical equipment and supply retailers, therapeutic clinics and other businesses that distribute crutches, orthopedics, wheelchairs, stools, etc. directly to consumers.

Inventory Concerns for Medical Wholesalers

Inventory management plays a central role in medical equipment & supply wholesale operations. Whether you will stock your own inventory or facilitate deliveries straight from manufacturers to your customers, you'll need to develop technology-driven processes to ensure prompt delivery of merchandise.
Best Practices for Writing a Medical Equipment & Supplies Wholesale & Manufacturers Company Business Plan.
Many new medical equipment and supplies wholesale and manufacturers business owners feel unprepared for the challenge of writing a business plan.
Fortunately, you don't have to tackle your medical equipment and supplies wholesale and manufacturers company's business plan by yourself. These days, there are tons of great resources and solutions available to support the business plan writing process.

Don't Ignore Competitors

Long before you open a medical equipment and supplies wholesale and manufacturers business within your community, it's a good idea to find out how many competitors you have. Use the link below to get a list of local competitors in your area. After following the link, enter your city, state and zip code to get a list of medical equipment and supplies wholesale and manufacturers businesses in your area.

Get a List of Nearby Medical Equipment & Supplies Wholesale & Manufacturers Businesses

How are you going to successfully complete with existing firms? It's important that you never underestimate the competition.

Find Good Remote Business Advice

If you are interested in starting a medical equipment and supplies wholesale and manufacturers business, you really ought to have a conversation with someone who is in the business. If you think owners of nearby medical equipment and supplies wholesale and manufacturers businesses will give you advice, think again. The last thing they want to do is help you to be a better competitor.
However, a fellow entrepreneur who has started a medical equipment and supplies wholesale and manufacturers business in a different city may be willing to share their entrepreneurial wisdom with you, provided that you won't be directly competing with them. In that case, the business owner may be more than happy to discuss the industry with you. In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.
The key question new becomes: how to find somebody who runs a medical equipment and supplies wholesale and manufacturers business in a different locale who can assist you?
Simple. Let your fingers do the walking by using the link below.

Find an Experienced Medical Equipment & Supplies Wholesale & Manufacturers Business Entrepreneur

Benefits & Drawbacks of a Medical Equipment & Supplies Wholesale & Manufacturers Business Acquisition.
Although there are significant benefits to buying a medical equipment and supplies wholesale and manufacturers business (rather than launching a start-up), it's important to weigh the pros and cons before you commit to a purchase scenario.
BENEFITS: Existing companies have proven business models and a history of profitability. They should also have some degree of brand recognition and an established customer base.
DRAWBACKS: On the downside, medical equipment and supplies wholesale and manufacturers business acquisitions can be difficult to adapt to your unique business philosophy so it's important to make sure the business is capable of achieving your ownership goals before you initiate the buying process.

Consider Buying a Franchise

As an entrepreneur, your chances surviving in business are greatly increased if you opt for franchising and benefit from the prior work of others and their lessons learned.
If you are thinking about opening a medical equipment and supplies wholesale and manufacturers business, you may want to check out whether franchising might help you avoid common entrepreneurial mistakes.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.

Tips

Target a niche and target market for your medical supply business. For example, you can sell supplies to home health aides, midwives, dentists or nursing homes.
Contact your state's public health department or medical board to find out if you need to be licensed to sell the types of medical equipment you're interested in carrying. This is not required for all medical suppliers, except those specializing in specific types of equipment.
Obtain the permits required in your city and state to start a retail business. This may include a sales and use tax permit, resale permit, assumed name certificate, or dong business as, or Employer Identification Number.
Lease a commercial warehouse that is temperature-controlled to store your inventory. Your storage facility will need to be clean and free of dust to prevent your supplies from becoming contaminated. Alternatively, a clean spare room or large closet that you dedicate solely to storing inventory would be suitable.
Establish wholesale accounts with distributors of medical equipment suitable for your niche -- buying wholesale is necessary to make a profit. Distributors can be found online, in phone books and business directories. You will likely need to provide business documentation and order a minimum dollar amount to open a wholesale account.
Offer incentives for medical professionals to patronize your medical supply company. For instance, you can offer discounted or free shipping, free delivery within your local area or volume discounts.
Market your medial supply business to medial professionals, especially those within your city. Send fliers and coupons, sponsor medical conventions or health fairs, and send news releases to local medical associations and professional groups.

Our Business Plan Help section discusses some of the business plan resources other entrepreneurs have found useful.

Reference

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Saturday, December 20, 2014