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BUSINESS STRATEGIES

How to create a medical supply business plan

• Annabelle Amery
• Sep 5, 2023

When starting a business in the medical supply industry, creating a comprehensive and clear business plan is crucial to lay a strong foundation for success. This plan serves as a roadmap that guides the business owner through key aspects of the business's development and growth.

Crafting a well-structured medical supply business plan is not only essential for navigating the complexities of the medical industry, but also attracting potential investors, securing financing and establishing credibility.

Ultimately, a well-crafted medical supply business plan forms the bedrock of starting a successful medical supply venture, guiding the business toward achieving its goals in a dynamic and critical sector.

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Benefits of starting a medical supply business plan

Writing a comprehensive business plan offers numerous advantages for any type of business . As it regards your medical supply business, a business plan is helpful for:

Attracting funding: A well-crafted business plan acts as a powerful tool to attract potential investors and raise money for starting a medical supply business. Investors want to see a clear understanding of the market potential, revenue projections and strategies for growth. A comprehensive plan demonstrates the business owner's commitment and professionalism, increasing the likelihood of obtaining financial support.

Resource planning: Starting a medical supply business involves a thorough understanding of the resources, supplies and staff needed to establish and operate the business smoothly. A detailed business plan forces you to research and outline the necessary equipment, regulatory compliance, logistics, staffing and partnerships. This clarity ensures that all aspects of your business are considered and addressed adequately.

Success planning: Creating a business plan enables business owners to develop a clear roadmap for success when starting a medical supply business. The plan outlines objectives, strategies and key performance indicators that guide your business's growth trajectory. It helps in setting measurable goals and tracking progress, allowing adjustments to be made to stay on course.

Identifying challenges and opportunities: A thorough market analysis within the business plan helps identify trends, challenges and opportunities in the medical supply industry. Understanding the competitive landscape, customer needs and industry shifts allows the business to tailor its offerings to meet market demands effectively.

Sustainability: Creating a financial plan within the business plan offers insights into revenue projections, expenses and profitability. It ensures that the medical supply business is financially viable and can sustain its operations in the long run. This plan also helps in managing cash flow and making informed decisions about budget allocation.

How to write a medical supply business plan in 6 steps

In the sections below, we’ll guide you through six essential steps to help you craft a comprehensive medical supply business plan that sets the stage for a thriving venture in the healthcare industry.

Executive summary

Business and domain names

Market analysis and research

Operations plan, marketing and advertising plan, financial plan, 01. executive summary.

The executive summary is a succinct overview of your medical supply business plan, providing a snapshot of the entire document. It encapsulates the essence of your business, its objectives, strategies and key points. This section is crucial as it often serves as the first impression for potential investors and stakeholders.

To craft a clear executive summary for your medical supply business, focus on introducing your medical supply business, its mission and its unique value proposition in the industry. Summarize the potential market demand for medical supplies. Then, highlight the types of medical supplies your business will offer, emphasizing any innovative or specialized items.

Describe what sets your medical supply business apart from competitors, such as quality, pricing, distribution network or customer service. You should also provide a glimpse into your revenue projections and growth potential, showcasing the financial attractiveness of your venture. Finally mention the initial funding required to launch your medical supply business and support its early operations.

Here’s an example of an executive summary for a medical supply venture: “MediAid Supplies is a pioneering medical supply business committed to providing healthcare professionals and facilities with the essential tools they need to deliver exceptional patient care. Our mission is to bridge the gap between quality medical supplies and their availability, ensuring that healthcare providers can focus on their vital roles without concerns about procurement challenges.

In an ever-evolving healthcare landscape, MediAid Supplies emerges as a reliable partner, offering a wide range of medical equipment, devices, and consumables. Our dedication to quality, affordability, and timely distribution positions us as a leader in the medical supply industry.

MediAid Supplies anticipates substantial revenue growth by addressing the escalating demand for reliable medical supplies and our commitment to unparalleled customer service. To achieve our vision, we are seeking strategic partnerships and investments that will support our expansion and outreach efforts.”

02. Business and domain names

Selecting a strong business name is crucial for a medical supply business to establish brand identity, build trust, and resonate with industry stakeholders. A well-chosen name should reflect professionalism, reliability and the scope of medical supplies offered. It's essential to ensure the chosen name is not already trademarked and is available for registration.

Using a business name generator can provide inspiration and generate creative ideas for your medical supply business name. Once the company name is finalized, securing a matching domain name for your business website is equally important in today's digital age.

Note: once you’ve settled on a business name and decided on the best structure for your business, you’ll want to register your business .

03. Market analysis and research

Incorporating a comprehensive market analysis and research section in your medical supply business plan is crucial. This section delves into understanding your target market, competitors and industry trends. It helps you craft effective marketing strategies and make informed business decisions.

04. Operations plan

The operations plan outlines practical aspects, such as the location of your medical supply business, premises design, equipment procurement, inventory management and staffing needs. It ensures you have a clear roadmap for effectively managing daily operations.

05. Marketing and advertising plan

The marketing and advertising plan lays out strategies and campaigns to effectively promote your medical supply business. It should highlight strategies such as digital marketing, trade shows, partnerships with healthcare facilities and campaigns that showcase the quality and reliability of your supplies.

Remember to keep your branding consistent no matter where you promote your business. Start by learning how to make a medical logo and then create your own with the use of a medical logo maker .

06. Financial plan

The financial plan is a critical component of a business plan for a medical supply business. It provides a comprehensive overview of the financial aspects of your business, including startup costs, funding sources, revenue projections, expenses and the time frame for reaching profitability. This section helps you demonstrate the financial viability of your business and assists potential investors and lenders in evaluating the potential return on their investment.

Startup costs and funding

Outline the initial investment required to launch your medical supply business. This includes expenses, such as:

Costs associated with procuring the initial inventory of medical supplies, equipment and devices.

Costs for leasing or purchasing a suitable location, interior design and furnishing.

Expenses for business registration, licenses, permits and compliance with industry regulations. For example, starting an LLC where costs vary between states.

Costs for creating a strong brand presence, including logo design, website development and marketing campaigns.

Estimate costs for utilities, insurance, salaries and any other recurring expenses for the initial period.

Funding sources

Identify the sources of funding you intend to utilize to cover your startup costs. These sources may include:

Personal savings: Investment from your personal savings or assets.

Bank loans: Securing loans from financial institutions.

Investors: Attracting equity investors who provide capital in exchange for ownership.

Partnerships: Partnering with other businesses or individuals to pool resources.

Revenue projections

Provide an estimate of your medical supply business's potential revenue over a specific period. Consider factors like the average transaction value, volume of sales and the pricing strategy for your products. Projections can be broken down by months or years to give a clear understanding of your growth trajectory.

Expenses and costs

Detail the anticipated expenses that your medical supply business will incur. Categorize them into fixed costs (rent, utilities, salaries) and variable costs (inventory, marketing, shipping). This breakdown helps you assess your business's cost structure and manage cash flow effectively.

Profit and loss projection

Present a profit and loss (P&L) projection that outlines your expected revenue and expenses over a specific period. The P&L statement calculates your net income or loss by subtracting total expenses from total revenue. This projection provides a clear picture of your business's financial health and potential profitability.

Break-even analysis

Perform a break-even analysis to determine the point at which your medical supply business's total revenue equals its total costs. This analysis helps you understand the minimum level of sales required to cover your expenses and begin generating profits.

Time frame for profitability

Indicate the expected time frame for your medical supply business to become profitable. This depends on various factors, including market demand, pricing strategy, marketing efforts and operational efficiency. Providing a realistic estimate helps stakeholders understand when they can expect a return on their investment.

Cash flow forecast

Prepare a cash flow forecast to track the inflows and outflows of cash in your medical supply business. This forecast helps you manage liquidity, plan for expenses and ensure you have adequate funds to cover operational needs.

Medical supply business plan example: MediCare Supplies

This draft business plan provides a really great starting point for creating your very own medical supply business plan. Remember to customize the content to your specific goals, target market, and location. Make sure to regularly review and update your business plan as your business grows to ensure its relevance and future success.

MediCare Supplies is a forward-thinking medical supply business aimed at providing high-quality medical equipment, devices, and consumables to healthcare facilities and professionals. Our mission is to enhance patient care by ensuring seamless access to reliable medical supplies. Leveraging our industry expertise and commitment to excellence, we aspire to become a trusted partner in the healthcare sector.

Company and domain names

Company name: MediCare Supplies

Domain name: www.medicaresupplies.com

Our chosen company name, "MediCare Supplies," signifies our dedication to supplying essential medical resources that contribute to the well-being of patients. The corresponding domain name, www.medicaresupplies.com, reinforces our commitment to providing a convenient online platform for healthcare professionals to access our products and services.

Our thorough market analysis indicates a growing demand for reliable medical supplies due to the expanding healthcare industry. Research reveals the need for a comprehensive supplier that offers a wide range of high-quality products. Our target audience includes hospitals, clinics, nursing homes and private practitioners seeking efficient procurement solutions.

Location: Strategically situated near medical facilities to facilitate timely deliveries and direct engagement.

Premises: A well-organized and efficient warehouse designed to accommodate our inventory and streamline operations.

Equipment: Cutting-edge inventory management systems and logistics software to optimize distribution and minimize errors.

Staffing: A team of experienced professionals in procurement, logistics and customer service to ensure seamless operations and client satisfaction.

Our marketing plan includes:

Digital presence: Making a website , optimizing it for search engines and maintaining active social media accounts to reach a wider audience.

Strategic partnerships: Collaborating with healthcare associations, medical facilities and industry influencers to increase brand visibility and credibility.

Educational content: Sharing informative blog posts, videos and webinars that provide insights into medical supply trends and best practices.

Email campaigns: Regular newsletters and updates to keep customers informed about new products, promotions and industry news.

Startup costs and funding:

Inventory procurement: $100,000

Warehouse setup: $30,000

Website development and branding: $20,000

Initial marketing: $15,000

Operational expenses (1st Quarter): $25,000

Total startup costs: $190,000

Funding sources:

Personal savings: $60,000

Bank loan: $100,000

Investment from partners: $30,000

Total funding: $190,000

Revenue projections:

Year 1: $500,000

Year 2: $800,000

Year 3: $1,200,000

Operating expenses:

Rent and utilities: $2,500 per month

Employee salaries: $100,000 per year

Marketing and advertising: $20,000 per year

Inventory restocking: $150,000 per year

Insurance and compliance: $5,000 per year

Profit and loss projection:

Year 1 net profit: Variable based on revenue and expenses

Break-even analysis:

Fixed costs (annual): total fixed costs (rent, salaries, etc.)

Average revenue per month: estimate average monthly revenue

Break-even point: fixed costs / average revenue per month

Time frame for profitability: MediCare Supplies anticipates achieving profitability within the first year of operation by executing effective marketing strategies and catering to the growing demand for reliable medical supplies.

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Medical Supply Business

Back to All Business Ideas

How to Start a Medical Supply Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 11, 2022 Updated on March 13, 2024

Investment range

$12,050 - $25,100

Revenue potential

$104,000 - $312,000 p.a.

Time to build

1 – 3 months

Profit potential

$52,000 - $94,000 p.a.

Industry trend

The pandemic and our ageing population have sharply increased the need for medical supplies, spurring 50% market expansion in the last decade. You could start a medical supply business by partnering with a manufacturer and selling the medical supplies at resale prices either online, in-person, or from your own store. If you sell online or directly to healthcare facilities, you can run the business from home, and make some good money while making sure that caregivers and patients have the life-saving tools they need.

Before you get started, however, you need to understand how to launch a business. Fortunately, this step-by-step guide lays out all you need to know to start a successful medical supply business. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a medical supply business has pros and cons to consider before deciding if it’s right for you. 

• To people and facilities that need them
• Good Money – Profit margins on medical supplies are high
• Flexibility – Run an online business from home, set your own hours
• Partner Needed – Finding a quality manufacturer can be difficult
• Crowded Market – Competing with established firms will be tough

Medical supply industry trends

Industry size and growth.

• Industry size and past growth – The US medical supplies wholesaling industry is worth $279 billion in 2022 after annual 2.5% growth the last five years. In the last decade the industry has grown 50%.(( https://www.ibisworld.com/industry-statistics/market-size/medical-supplies-wholesaling-united-states/ ))
• Growth forecast – The US medical supplies wholesaling industry is projected to grow nearly 4% in 2022. 
• Number of businesses – In 2021, 14,067 medical supplies wholesaling businesses were operating in the US.(( https://www.ibisworld.com/united-states/market-research-reports/medical-supplies-wholesaling-industry/ )) 
• Number of people employed – In 2021, the US medical supplies wholesaling industry employed 255,219 people.

Trends and challenges

Trends in the medical supply industry include:

• Therapeutic devices, which includes anything from walkers to hearing aids to catheters, represent 90% of the medical supply industry. 
• The number of elderly Americans is expected to double by 2060 to 95 million, becoming nearly one-quarter of the total population. This will significantly increase demand for high-quality medical supplies. 

Challenges in the medical supply industry include:

• Regulations surrounding medical supplies are constantly evolving and it’s crucial that medical supply businesses stay up to date.
• Continuing healthcare supply chain issues are making it difficult for medical supply businesses to keep inventory stocked. 

Demand hotspots

• Most popular states – The most popular states for medical sales representatives are Ohio, West Virginia, and New Jersey.(( https://www.zippia.com/medical-sales-representative-jobs/best-states/ ))
• Least popular states – The least popular states for medical sales representatives are Montana, Oklahoma, and Louisiana.

What kind of people work in medical supply businesses?

• Gender – 46.9% of medical sales representatives are female, while 49.5% are male.(( https://www.zippia.com/medical-sales-representative-jobs/demographics/ ))
• Average level of education – The average medical sales representative has a bachelor’s degree.
• Average age – The average medical sales representative in the US is 46.7 years old.

How much does it cost to start a medical supply business?

Startup costs for a medical supply business range from $12,000 to $25,000. The largest cost is your initial stock of inventory.

How much can you earn from a medical supply business?

Prices for medical supplies vary greatly based on the item. These calculations will assume an average price of $100, although some items could be significantly higher. Your profit margin should be about 50%. 

In your first year or two, you could work from home and sell 20 items per week, bringing in $104,000 in annual revenue. This would mean $52,000 in profit, assuming that 50% margin. As you ramp up your marketing, sales could climb to 60 items per week. At this stage, you’d rent a commercial space to store your inventory and hire staff, reducing your profit margin to around 30%. With annual revenue of $312,000, you’d make a tidy profit of $94,000.

What barriers to entry are there?

There are a few barriers to entry for a medical supply business. Your biggest challenges will be:

• The startup costs of inventory and a website
• The massive competition in the industry
• Finding a manufacturing partner

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Step 2: hone your idea.

Now that you know what’s involved in starting a medical supply business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research medical supply businesses in your area and online to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a company that sells durable medical equipment, a medical device company, or a hospital bed supplier. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as medical products for nursing homes or therapeutic devices for health care providers.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

There are literally thousands of items you could sell. It’s probably best to specialize in a certain type of supplies. 

How much should you charge for medical supplies?

Prices will vary by item. Check market prices to make sure that you’re competitive. After your cost to purchase from the manufacturer, you should aim for a profit margin of about 50%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

If you choose to sell to clinics, hospitals and care facilities, find them on LinkedIn and Google Maps. If you decide to sell directly to your customers, they will likely be an older demographic and on Facebook. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storage facility for your inventory. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Medical Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “medical supplies” or “medical products”, boosts SEO
• Name should allow for expansion, for ex: “Care Connectors” over “Diabetic Supplies Direct”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Medical Supply Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief summary of the medical supply business plan, highlighting its key points and objectives.
• Business Overview: An introduction to the medical supply business, including its mission, vision, and key facts about its establishment.
• Product and Services: A description of the medical supplies and services the business offers, emphasizing their features and benefits.
• Market Analysis: An examination of the medical supply market, including its size, growth potential, and target customer demographics.
• Competitive Analysis: An assessment of competitors in the medical supply industry, identifying strengths, weaknesses, and opportunities.
• Sales and Marketing: A plan for how the business intends to promote and sell its products and services in the market.
• Management Team: An overview of the individuals responsible for leading and managing the medical supply business.
• Operations Plan: Details on how the business will operate, including logistics, suppliers, and day-to-day processes.
• Financial Plan: Projections and analysis of the business’s financial performance, including revenue, expenses, and profitability.
• Appendix: Supplementary information such as market research data, resumes of key team members, or other relevant documentation to support the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to medical supply businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your medical supply business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a medical supply business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Licenses and Permits

Starting a medical supply business requires obtaining a number of licenses and permits from local, state, and federal governments.

Some states require a special license to sell certain types of medical supplies. Check with your state for requirements.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your medical supply business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as DME Works , acctivate , or arbimed , to manage your leads, inventory, invoicing, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your medical supply business, the marketing strategy should focus on showcasing the quality, range, and reliability of your products. Emphasize your commitment to meeting healthcare needs with timely deliveries, adherence to medical standards, and providing a broad spectrum of medical supplies, from basic consumables to specialized equipment. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should convey trustworthiness, reliability, and expertise in the medical field. This includes a professional logo, business cards, and an informative website.
• Direct Outreach : Network with hospitals, clinics, nursing homes, and other healthcare facilities. Offer demonstrations or samples of your products to showcase their quality and effectiveness.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop a comprehensive website that catalogs your products, including detailed descriptions and specifications. Optimize for SEO to rank for searches related to medical supplies, healthcare equipment, and medical products.
• Social Media Engagement : Utilize LinkedIn for B2B networking and Facebook to connect with a broader audience, share product information, and post about health industry news.

Content Marketing and Engagement

• Healthcare Blog : Share informative content about the latest in medical supplies, healthcare technology advancements, and guides on choosing the right equipment.
• Email Newsletters : Regular newsletters can inform your clients about new products, special offers, and company updates.
• Video Demonstrations : Create product demonstration videos, explaining the features and benefits of your medical supplies.

Experiential and In-Person Engagements

• Trade Shows and Medical Expos : Participate in medical trade shows and expos to showcase your products and connect with potential customers.
• Product Training Sessions : Offer training sessions for complex equipment to medical staff, adding value to your services.

Collaborations and Community

• Partnerships with Manufacturers : Build strong relationships with medical supply manufacturers to ensure a steady supply of products and the latest in medical technology.
• Collaboration with Healthcare Providers : Work closely with healthcare providers to understand their needs and offer customized solutions.

Customer Relationship and Loyalty Programs

• Loyalty Discounts : Implement loyalty programs offering discounts or benefits to regular customers.
• Referral Programs : Encourage referrals from existing customers with incentives for both the referrer and the new customer.

Promotions and Advertising

• Targeted Advertising : Use online platforms and medical publications to reach healthcare professionals and decision-makers in the medical industry.
• Sponsorships and Community Involvement : Sponsor local health events or charity drives to build brand recognition and goodwill in the community.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your medical supply business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your medical supply business could be: 

• The best therapeutic devices to help you live to the fullest 
• Discount medical supplies for your assisted living facility
• The most advanced medical supplies and equipment for your patients 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a medical supply business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in medical supplies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in medical supplies. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a medical supply business include:

• Distribution Center Workers – prepare items for shipping
• General Manager – ordering, inventory management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Medical Supply Business – Start Making Money!

The medical supply industry is huge and expected to grow in the coming years as the population ages. You can get a share of the market by starting your own medical supply business. It’s not a difficult business to start, and you can run it from home and make a good living. You just need a manufacturing partner, and you can sell to local health care providers and facilities or offer your products online. 

Now that you know what you need to know about the business, you’re ready to get to work and start your entrepreneurial journey to building a successful medical supply business!

• Medical Supply Business FAQs

Yes, profit margins on medical supplies are high. The key is to specialize in a certain type of supplies and target a specific market for the products you offer.

Prices will vary by item. Check market prices to make sure that you’re competitive. After your cost to purchase from the manufacturer, you should aim for a profit margin of about 50%. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

The biggest distributor of medical supplies may vary depending on the region and industry, but some major players in the global medical supply distribution market include Cardinal Health, Medline Industries, and McKesson Corporation.

The top 10 medical consumables can vary based on specific needs and healthcare settings, but some commonly used medical consumables include gloves, syringes, needles, bandages, surgical masks, gowns, catheters, wound care products, IV sets, and disposable medical instruments.

Medical supplies generally refer to consumable items used in healthcare settings, such as gloves, syringes, and bandages, that are single-use or have a limited lifespan. Medical equipment, on the other hand, refers to durable devices or machines used for diagnosis, treatment, or monitoring, such as X-ray machines, ultrasound systems, and hospital beds.

To differentiate your medical supply business from competitors, you can focus on factors such as competitive pricing, superior product quality, exceptional customer service, fast and reliable delivery, a wide product selection, personalized solutions for specific healthcare needs, establishing strong relationships with manufacturers and suppliers, and emphasizing your company’s reliability and reputation.

To expand your medical supply business and reach more clients and markets, consider the following strategies: diversify your product offerings, explore new geographical regions or markets, establish partnerships with healthcare facilities, clinics, and hospitals, leverage e-commerce platforms for online sales, attend industry trade shows and conferences, and invest in targeted marketing campaigns.

Thanks for sharing your expertise and providing such a valuable resource. Your article is not just informative but also motivational for those looking to make a difference in the medical supply industry. Looking forward to more business insights from your platform. Keep up the fantastic work!

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Medical Business Name
• Create a Medical Supply Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Medical Supply Business - Start Making Money!

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From Pills to Profits: The Ultimate Guide to Starting a Successful Medicine Store

Related blogs.

• The Surprising Truth About the Profitability of Medicine Stores
• 7 Ultimate KPIs for Medicine Stores to Boost Growth and Customer Satisfaction
• 10 Crucial Steps to Launch Your Lucrative Medicine Store Business.

Startup Costs

Equipment for the store.

• Initial inventory and supplies
• Store renovations and leasehold improvements

Marketing and advertising expenses

• Legal and administrative fees

Hiring and training employees

• Technology and software investments

Starting a medicine store requires a significant amount of investment. The startup costs include expenses related to equipment, store renovations, inventory, marketing, advertising, and legal fees. The exact amount may vary depending on various factors like location, store size, and product offerings.

The above ranges are just estimates and may vary depending on several factors like location, region, products offered, etc. Apart from these startup costs, ongoing expenses include rent, utilities, insurance, payroll, inventory management, and taxes. It is essential to have a comprehensive business plan and conduct thorough market research before opening a medicine store.

Opening a medicine store can be a profitable venture, but it requires a significant investment of both time and money. The startup costs can range from $120,000 to $280,000 depending on various factors. It is essential to create a solid business plan and work with professionals to make informed decisions at every stage of the process.

Basic Equipment

• Refrigeration units: You need to equip your store with fridges and freezers to store medicine at the right temperature. The cost of refrigeration units can vary between $2000 to $10000 depending on your store size and requirement.
• Cash register and POS system: Setting up a cash register and POS system will cost approximately $2000 to $5000.
• Shelves and racks: To display and store medicines, you will need shelves and racks costing around $2000 to $8000.
• Computers and Software: You will need a computer system with some specialized software to maintain records and manage inventory. The cost of a computer system can range between $1000 to $3000 depending on your requirements.

Additional Equipment:

• Security Systems: To protect your store and goods, you should also invest in security cameras, alarms, and lighting systems that can cost anywhere from $2000 to $10000.
• Signage: You will need signs for your store, boards, and banners when you launch your medicine store. A good sign can cost $500 to $4000.
• Delivery Management: Depending upon your location, you may need a delivery management system to handle orders and deliver medicines. The cost of such a system can be anywhere from $1000 to $5000.

Tips & Tricks: Lease the equipment: If you are working with limited funds, consider leasing equipment instead of purchasing them initially. Leasing can be a great way to save upfront costs and spread the expenses over time. Buy used equipment: You can save a significant amount of money by purchasing used equipment rather than buying brand new ones. Consider the long-term: When choosing equipment, it is essential to consider longevity as well as cost. It's better to invest in a slightly pricier item with a more extended warranty than a cheaper piece that may break down before your store takes off. In conclusion, starting a medicine store requires investment in equipment that can total to around $50,000 to $100,000. As a business consultant, I recommend prioritizing basic essentials such as refrigeration units, cash registers, and POS systems when developing your budget. Investing in additional equipment like a security system and signage can provide long-term benefits. By following the Tips & Tricks provided, you can save significantly on these costs.

Initial inventory and supplies.

As a professional business consultant who has helped start thousands of businesses in my career, I can confidently say that opening a medicine store can be a lucrative and rewarding venture. However, the initial costs associated with starting such a business can be quite high.

According to recent statistical data, the average startup cost for a medicine store in the United States is approximately $250,000. This includes the initial inventory and supplies, as well as the cost of rent, equipment, and staffing.

• Initial inventory costs can vary depending on the size of the store, the type of medicine being sold, and the location. On average, the initial inventory cost for a small-to-medium-sized medicine store can range from $75,000 to $150,000.
• In addition to the inventory cost, you will also need to purchase equipment such as shelving, display cases, and refrigerators to store the medicine. The cost for this equipment can range from $10,000 to $30,000 depending on the size of the store.
• Other startup expenses may include legal fees, insurance, permits, and advertising. These costs can range from $5,000 to $15,000 depending on the specific requirements in your area.

Tips & Tricks

• Research different suppliers to find the best deals on medicine inventory.
• Look for used equipment to save money on initial startup costs.
• Consider starting with a smaller inventory and gradually expanding as your business grows.

It is important to keep in mind that these costs are just an estimate and can vary depending on the location and size of the store. However, with careful planning and budgeting, it is possible to open a successful medicine store without breaking the bank.

Store Renovations and Leasehold Improvements

Opening a medicine store can be a very profitable and fulfilling business. However, it involves a lot of planning and preparation as well as significant costs. Store renovations and leasehold improvements are two major startup costs that any aspiring pharmacy owner must consider. These costs are essential in creating the right environment and infrastructure for your store. So, how much does it cost to open a medicine store?

• The average cost of store renovations and leasehold improvements for a 1,000 sq. ft medicine store ranges from $50,000 to $100,000.
• The cost can vary depending on the location, local regulations, the type of store, and the level of customization needed.

You need to make sure the store layout suits your requirements and the business needs. A well-designed pharmacy layout typically results in higher customer satisfaction, improved productivity, and better revenue. Your store should have distinct areas for medicines, personal hygiene products, and other health and beauty items. You may also need to invest in fixtures, such as shelves and cabinets that match your brand image.

Leasehold improvements are making space ready for the intended use by adding or modifying elements such as walls, electrical and plumbing mechanisms, and fixtures. Some leasehold improvements may not be immediately apparent, such as the need for subfloor repairs or electrical upgrades. In some instances, negotiating with the landlord to share some of these costs may help you stay within your budget.

Tips & Tricks for Managing Store Renovations and Leasehold Improvements Costs

• Plan for the unexpected by budgeting more than you might need to cover unforeseen expenses.
• Check with your landlord about building codes, permits, and other local regulations before starting the renovation process.
• Work with an architect or experienced contractor who can help you get the best value for your money and avoid costly mistakes.

Proper store renovations and leasehold improvements will contribute significantly to your store's success. If you invest in high-quality fixtures and a modern, functional space, it can help you attract more customers and create lasting relationships with them. Do not hesitate to hire a professional or consultant for assistance if you are not sure where to start.

Starting a medicine store can be a lucrative business opportunity, but it requires significant financial investment. The costs for opening a medicine store depend on various factors such as location, size of the store, and the types of medicines and products you intend to sell. One of the primary expenses is the marketing and advertising cost.

According to recent statistical data by the Small Business Administration, a typical medicine store startup cost can range anywhere between $200,000 to $500,000. This high cost is mainly due to the expenses associated with the store's location, rent, licenses, insurance, inventory, and staff salaries. A substantial proportion of this cost also goes towards the marketing and advertising of your store.

• Digital marketing: In today's digital age, an online presence is a must for any business, including a medicine store. You will need to invest in creating a website, social media profiles, and online ads to drive traffic to your store. The cost for digital marketing on these platforms ranges between $500 to $10,000 per month depending on the size and reach of the audience.
• Local advertising: You must target the local audience in your area through traditional advertising mediums such as radio, television, billboards, and flyers. The advertising cost varies with the reach of the medium and can range anywhere from $500 to $5000 per month.
• Public relations: Good public relations and media coverage can help boost your store's image and credibility. It is essential to hire a professional public relations team that can help you manage your relations with the media and customers. The cost of hiring a public relations team can range from $5000 to $10,000 per month.
• Start with a comprehensive business plan that includes all the expenses, including the marketing and advertising cost.
• Utilize social media platforms to promote deals, discounts, and new arrivals to your store.
• Offer loyalty programs, rewards, and referral bonuses to retain existing customers and attract new ones.

Overall, the cost of launching a medicine store involves several expenses, including marketing and advertising costs. Therefore, it is crucial to budget for these costs and have a sound financial plan in place. Hiring a professional business consultant can help you navigate through these expenses and get your business off the ground.

Legal and Administrative Fees

Starting a medicine store involves several expenses, including legal and administrative fees. These fees depend on factors such as location, type of business entity, and marketing strategy. As a pro business consultant who has helped to start thousands of businesses in my career, I have a wealth of knowledge and experience to share with you.

• Research the legal and administrative requirements in your area to ensure compliance.
• Consider hiring a lawyer to assist with legal issues and paperwork.
• Utilize online resources to understand the different types of business entities and their associated fees.

The cost of legal and administrative fees for opening a medicine store in the United States typically ranges from $1,000 to $10,000. This includes expenses such as business registration, permits, licenses, insurance, and compliance with regulations.

One of the primary expenses related to legal and administrative fees is registering the business entity. The cost of registering a business depends on the type of entity chosen, such as a sole proprietorship, partnership, or limited liability company (LLC). In addition, the cost of registering a business varies by state.

Permits and licenses are also required to operate a medicine store. These include state and federal licenses, tax registrations, zoning permits, and health department permits. The cost of permits and licenses range from $100 to $5,000.

Insurance is another significant expense associated with opening a medicine store. Liability insurance, property insurance, and worker’s compensation insurance are some examples of insurance coverage that a medicine store may require. The cost of insurance varies depending on the coverage and the insurance provider.

In summary, the cost of legal and administrative fees for opening a medicine store varies depending on several factors. However, by doing thorough research, working with a legal professional, and utilizing online resources, you can reduce your expenses and ensure compliance with regulations.

Opening a medicine store is a promising venture, and with the global pandemic still ongoing, it has become a lucrative business to venture into. However, like other businesses, it requires a good amount of capital, and one of the major costs of starting a medicine store is hiring and training employees.

• The average cost of hiring and training an employee in the pharmaceutical industry is around $3,000 to $4,000. This includes advertising for job vacancies, screening applicants, conducting interviews, and providing training.
• Additionally, it’s important to note that the cost of hiring and training employees varies depending on the state. As per the U.S. Bureau of Labor Statistics, the five states with the highest hourly wages paid to pharmacists are California, Alaska, Vermont, Maine, and Wisconsin.
• It’s important to invest in your employees. Building a professional team that is knowledgeable about the medicine store’s offerings will help ensure that the store succeeds. Employees are a reflection of the business, and it’s important to invest in their training and development.
• Have a comprehensive onboarding program - Investing in a good training program can lead to fewer mistakes by employees and quicker integration into the team. A good onboarding program should include proper guidance on medicines and their uses, customer service techniques, and other relevant skills.
• Offer competitive compensation and perks - Offering competitive compensation is key to attracting and retaining talent. Consider offering benefits like medical insurance and flexible work arrangements to showcase your commitment to employee well-being.
• Maintain a positive work culture - Creating a harmonious work environment can lead to better employee retention rates, as well as higher productivity and job satisfaction. Encourage teamwork, positivity, and open communication to build a healthy work culture.

In conclusion, the cost of hiring and training employees is an important consideration when starting a medicine store. Investing in employees is critical to provide quality customer service and to develop a successful business. Be sure to create a good training program, offer competitive compensation, and maintain a positive work culture to attract and retain the best talent.

Technology and Software Investments

As a professional business consultant who has helped to start thousands of businesses, I have seen firsthand how important it is to invest in technology and software to stay competitive in today's market. The latest statistical information shows that startup costs for technology and software investments can vary greatly depending on the business's needs and goals.

• On average, businesses can expect to spend anywhere from $10,000 to $50,000 on technology and software investments in the initial startup phase.
• However, for more complex businesses with advanced technology needs, startup costs can exceed $100,000 or more.
• It's crucial to carefully assess your business's technology requirements and budget accordingly.

With the rapid advancements in technology, startups need to invest in the latest software to stay ahead of the curve.

• Start with a comprehensive list of your business's technology needs and prioritize them accordingly.
• Research different vendors and compare pricing and features to find the best fit for your business.
• Work with an experienced IT consultant to assess your needs and help you make informed decisions.

In addition to hardware and software costs, other technology investments such as website development and digital marketing should also be factored into your startup budget.

• Website development can range from $3,000 to $50,000 depending on the complexity of your site and the level of customization required.
• Digital marketing investments, such as social media and search engine marketing campaigns, can range from $2,500 to $10,000 per month depending on your desired level of advertising reach and engagement.

It's important to work with experienced professionals when developing your website and digital marketing campaigns to ensure that you are getting the best possible return on investment.

In conclusion, investing in technology and software is an essential part of launching a successful business in today's digital age. By carefully assessing your needs and budgeting accordingly, you can set your business up for long-term success and growth.

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Home » Healthcare » Medical Supply

How to Start a Medical Supply Business [Business Plan]

A medical supply company is a business that purchases medical and surgical equipment, instruments, and supplies, stores these items at distribution centers, and delivers these products to medical practitioners, clinics, hospitals, etc.

Recent data made available online shows that the global medical supplies market was worth USD 80 billion in the year 2019 and it is projected to reach USD 95.04 billion by 2026 with a CAGR of 13.5% between 2022 and 2026. Interestingly, the United States is a major player in the global medical market worth $85 billion according to industry analysts, and the United States is home to nearly 11,000 medical supply companies.

Steps on How to Start a Medical Supply

Conduct market research.

The first step in the market research process for your medical supply business is to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source for information that will help you maximize your business, give you reliable information of what your potential market will be looking out for from a medical supply business, the product and brands that people will be able to spend a premium on and also to help you operate your medical supply business with less stress.

a. Who is the Target Market for Medical Supply Business?

Your target demographics should include Hospitals, Medical laboratories, Medical colleges, Dental clinics, etc.

b. Is Medical Supply Business a Profitable Business?

• Medical laboratories
• Medical colleges
• Dental clinics
• Optical center
• Botox clinics
• Medical device retailers
• Healthcare centers
• Medical Research institutes
• Veterinary clinics.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to the medical supply business, and here are some of them;

• Brick and mortars medical supply business
• Online medical supply business

d. Who are the Major Competitors?

• Abbott Laboratories
• AmerisourceBergen
• Henry Schein
• Cardinal Health
• Medline Industries
• Carex Health Brands, Inc.
• Drive DeVilbiss Healthcare.
• NOVA Medical Products.
• Kaye Products, Inc.
• Medtronic PLC.
• General Electric Company
• Danaher Corporation
• Boston Scientific Corporation
• Johnson & Johnson
• Varian Medical Systems Inc.
• Siemens Healthineers
• 3M Health Care

e. Are There County or State Regulations or Zoning Laws for Medical Supply Business?

Note that in the United States, the FDA’s Center for Devices and Radiological Health (CDRH) is tasked with regulating firms who manufacture, repackage, re-label, and/or import medical devices sold in the United States. Also, the FDA’s CDRH regulates radiation-emitting electronic products (medical and non-medical) such as lasers, x-ray systems, ultrasound equipment, microwave ovens, and color televisions.

In addition to that, it is important to state that in the United States, government agencies and departments routinely grant variances to rules and regulations. Often, you only have to fill out a short form. In other cases, your request may have to be publicly heard before your city council, zoning board, or other body. Please check with your zoning or planning department to find out what options are available to you.

f. Is There a Franchise for Medical Supply Business?

Yes, there are franchise opportunities for the medical supply business. Here are some of them;

• Auxo Medical, LLC.
• BioPed Footcare Centers
• Medicap Pharmacies Incorporated
• MEDIchair Ltd.
• OsteoStrong
• Sonus Hearing Care

g. What Do You Need to Start a Medical Supply Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Shop Facility
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Suppliers of Medical Equipment, Equipment, and Supplies
• Distribution Trucks and Vans
• Startup and Working Capital

Memorable Medical Supply Business Names

• Forty Cent© Medical Supplies, Inc.
• MT Technologies® Medical Supplies and More, LLC
• Mike and Co© Medical Supplies, Inc.
• Medic Solutions® Medical Supplies, Inc.
• The Expats™ Medical Supplies, Inc.
• TD Engineering™ Medical Supplies, LLC.
• San Tamils© Medical Supplies, LLC
• Sheen Global® Medical Supplies, Inc.
• Lance Bowline© Medical Supplies, Inc.
• Wana Bros© Medical Supplies, Inc.
• Mili Cent® Medical Supplies, Inc.
• Cletus McPherson® Medical Supplies, LLC
• Stretch® Medical Supplies, Inc.
• Value Base® Medical Supplies, Inc.
• Garry Holmes® Medical Supplies USA LLC.
• Emmy Allen® Medical Supplies, Inc.
• Denis Palermo® Medical Supplies USA LLC
• Fahrenheit ® Medical Supplies, LLC
• Star Engineering® Medical Supplies USA LLC
• Brent Jones® Medical Supplies USA LLC.

Register Your Business

A. what type of business structure is best for medical supply business.

Although there are several options when it comes to the business structure for a medical supply business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Medical Supply Business?

• General Business License
• Seller’s Permit
• Fire and Safety Permit (Fire certificates)
• Federal Export Licenses
• Zonal Permits
• Signage Permit
• State Occupational Licenses
• Operational State Facility Inspections (Building Permits)

d. What Type of Certification is Needed to Open a Medical Supply Business?

• Certified Healthcare Supply Chain Analyst (CHSCA)
• Healthcare Supply Chain Certification.

e. What Documents are Needed to Open a Medical Supply Business?

• Business and liability insurance
• Federal Tax Payer’s ID
• Dealer License and Surety Bonds
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a medical supply business, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a medical supply business.

When it comes to starting a medical supply business, the startup costs vary and it could range from $100,000 to over a million dollars. This is because the startup inventory is on the high side.

b. What are the Costs Involved in Starting a Medical Supply Business?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $3,300.
• Marketing, Branding and Promotions – $2,000.
• Business Consultant Fee – $2,500.
• Insurance – $12,400.
• Rent/Lease – $150,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
• Operational Cost (salaries of employees, payments of bills et al) – $130,000
• Start-up Inventory – $1 million
• Store Equipment (cash register, security, ventilation, signage) – $1,750
• Furnishing and equipping the warehouse facility – $20,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Medical Supply Business?

• The size of the medical supply business
• The choice of location
• The required licenses and permits
• The type of medical supply business
• The types and brands of medical supplies to be retailed in the store
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the medical supply business
• The cost for furnishing and equipping the medical supply facility
• The cost for insurance policy covers
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the medical supply business.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Actually, it is not compulsory to build a new facility for your medical supply business, but if you have the required finance, it will pay you to build your own facility (warehouse and shop). The truth is that building or reconstructing a facility for your medical supply business will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Medical Supply Business?

• Rent and lease
• Supplies and inventory
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Marketing cost
• Distribution trucks and vans maintenance
• Salaries of employees

f. What is the Average Salary of your Staff?

• Chief Executive Officer (President) – $120,000 Per Year
• Human Resources and Amin Manager – $60,000 Per Year
• Warehouse Manager – $55,000 Per Year
• Merchandise Manager – $50,000 Per Year
• Sales and Marketing Manager – $45,000 Per Year
• Accountants (Cashiers) – $45,000 Per Year
• Sales Agents – $35,000 Per Year
• Customer Services Executive – $35,000 Per Year
• Truck and Van Drivers – $30,000 Per Year

g. How Do You Get Funding to Start a Medical Supply Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and your friends.

Write a Business Plan

A. executive summary.

Mili Cent® Medical Supplies, Inc. is a standard medical supply business that will be based in Los Angeles – California, USA. We have been able to secure a corner piece location where we intend to launch our first medical supply store before venturing out to open chains of medical supply stores all across major cities in the United States of America.

b. Products and Service

• Non-electronic medical, surgical, dental, and veterinary instruments and apparatus
• Surgical appliances
• Surgical instruments
• Dental instruments and supplies
• Hospital beds and other specialized hospital furniture
• Personal safety equipment

c. Mission Statement

Our mission is to build a highly successful medical supply business that will grow from one store to different locations all around key cities in the United States of America. We want to become a one-stop medical supply shop.

Vision Statement

Our vision as a medical supply business is to become the number one choice in Los Angeles – California and also to be amongst the top 2 leading medical supply stores in the State of California before our 10 th anniversary.

d. Goals and Objectives

The goals and objectives of a medical supply business are to provide a distribution channel and retail outlet where organizations can order a wide range of medical supplies from different manufacturers both from the United States of America and from other countries.

Organizational Structure

• Chief Executive Officer (President)
• Human Resources and Amin Manager
• Warehouse Manager
• Merchandise Manager
• Sales and Marketing Manager
• Accountants (Cashiers)
• Sales Agents
• Customer Services Executive
• Truck and Van Drivers

Marketing Plan

A. swot analysis.

• Ideal location for a medical supply business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Access to some of the leading medical device and equipment manufacturers nationally and internationally.
• Financial Constraints
• A new business that will be competing with well-established medical supply companies.
• Inability to retain our highly experienced and qualified employees longer than we want.

Opportunities:

• A rise in the demand for medical supplies due to the increasing number of new medical and dental practitioners, clinics and hospitals et al within our target market location.
• Online market, new services, new technology, and of course the opening of new markets.
• The arrival of new medical supply companies or even medical device and equipment manufacturers within our market space
• Unfavorable government policy and regulations.
• Steady wage expenses
• Economic uncertainty
• Liability problems
• The FDA’s Center for Devices and Radiological Health (CDRH) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

b. How Do Medical Supply Business Make Money?

Medical supply businesses make money from selling;

• Nonelectronic medical, surgical, dental, and veterinary instruments and apparatus
• Personal safety equipment.

c. Payment Options

• 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

d. Sales & Advertising Strategies

• Place adverts on both print (newspapers and medical-related magazines) and electronic media platforms
• Sponsor relevant events and programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
• Install your Bill Boards in strategic locations all around your city or state
• Distribute your fliers and handbills in target areas
• List your medical supply business in local directories/yellow pages
• Advertise your medical supply business on your official website and employ strategies that will help you pull traffic to the site.
• Position your Flexi Banners at strategic positions in the location where your medical supply business is located.
• Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo et al.

Financial Projection

A. how much should you charge for your product/service.

There is no fixed price when it comes to medical equipment and supplies; the supply is usually based on the commission stipulated by the equipment manufacturing company.

b. How Much Profit Do Medical Supply Business Owners Make a Year?

It depends, but an available report shows that at a minimum, online or in-store, a medical supply business owner should net from $80,000 to $150,000 annually. The amount you make in a physical location can be tied to where you are – in a big city location you can make from $100,000 to $300,000 annually. You can make as much as a medical supply business with online sales.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the medical supply business
• The types and brands of medical supplies retailed in the shop
• The location the medical supply business is covering (online or strictly brick and mortar)
• The management style of the medical supply business
• The business approach of the medical supply business
• The advertising and marketing strategies adopted by the medical supply business.
• The number of years the medical supply business is in business

d. What is the Profit Margin of a Medical Supply Business Product/Service?

The gross profit margin for the medical equipment and supplies industry averages 12.1%, according to data from CSImarket.com.

e. What is the Sales Forecast?

Below is the sales forecast for a medical supply business. It is based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year (FY1): $1 million
• Second Fiscal Year (FY2): $2.2 million
• Third Fiscal Year (FY3): $3 million

Set Up your Shop 

A. how do you choose a perfect location for medical supply business.

• The demography of the location as it relates to the number of hospitals and other medical facilities
• The demand for medical supplies in the location
• The purchasing power of businesses and the residence of the location
• Accessibility of the location
• The number of medical supply businesses and other outlets that retail medical supplies in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Medical Supply Business?

• Las Vegas, Nevada
• Los Angeles, California
• Chicago, Illinois
• Boston, Massachusetts
• Silver Spring, Maryland
• Rowland Heights, California
• Portland, Oregon
• New York City, New York
• Atlanta, Georgia
• Dallas, Texas

c. What Equipment is Needed to Operate a Medical Supply Business?

• Receipt issuing machine, POS, and related software apps.
• Distribution trucks and vans

Hire Employees

When it comes to hiring employees for a standard medical supply business, you should make plans to hire a competent chief executive officer (owner), warehouse manager, merchandise manager, accountant (cashier), sales boys, and sales girls (van drivers).

Launch the Business Proper

You can choose to do a soft opening party for your medical supply business or you can go for a grand opening party. The bottom line is that with a proper launching of the medical supply business, you will be able to officially inform people in your city that your medical supply business is open for business.

a. What Makes a Medical Supply Business Successful?

• Choose a good location to launch the business
• Partner with leading medical device and equipment manufacturers
• Make sure your warehouse is stocked with different brands and types of medical supplies
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your medical supply business
• Leverage on all available online and offline platforms to promote your medical supply business

b. What Happens During a Typical Day at a Medical Supply Business?

• The business is open for the day’s work
• Stocks are taken for the day in the warehouse
• Customer’s orders are taken, processed and they are delivered to them
• Cashier collect’s cash and reconcile account for the day
• Administrative duties are carried out
• The store or warehouse is restocked when required.
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Medical Supply Business?

• Customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining and bidding skill
• Work experience in a medical supply business environment
• Experience in managing people
• Experience in business administration

More on Medical Supply

Pharmaceutical Business Plan Template

Written by Dave Lavinsky

Pharmaceutical Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their pharmaceutical companies.

If you’re unfamiliar with creating a pharmaceutical business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a pharmaceutical business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Pharmaceutical Business Plan?

A business plan provides a snapshot of your pharmaceutical business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Pharmaceutical Company

If you’re looking to start a pharmaceutical business or grow your existing company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your pharmaceutical company to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Pharmaceutical Businesses

With regards to funding, the main sources of funding for a pharmaceutical business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for pharmaceutical businesses.

Finish Your Business Plan Today!

How to write a business plan for a pharmaceutical company.

If you want to start a pharmaceutical company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your pharmaceutical business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of pharmaceutical business you are running and the status. For example, are you a startup, do you have a company that you would like to grow, or are you operating pharmaceutical companies in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the pharmaceutical industry.
• Discuss the type of pharmaceutical business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of pharmaceutical company you are operating.

For example, you might specialize in one of the following types of pharmaceutical businesses:

• Generic Pharmaceutical Manufacturing : this type of pharmaceutical business develops prescription or over-the-counter drugs products that do not have patent protection.
• Vitamin & Supplement Manufacturing: this type of pharmaceutical company primarily develops products that contain ingredients intended to supplement the diet.
• Brand Name Pharmaceutical Manufacturing: this type of pharmaceutical business engages in significant research and development of patent-protected prescription and over-the-counter medications.

In addition to explaining the type of pharmaceutical business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of patents awarded, the extent of your product portfolio, reaching X number of distributors under contract, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the pharmaceutical industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the pharmaceutical industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the pharmaceutical industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your pharmaceutical company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: healthcare providers, chain pharmacies, independent retailers, and consumers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of pharmaceutical business you operate. Clearly, individuals would respond to different marketing promotions than hospitals, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other pharmaceutical businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes imported alternatives, herbal remedies, or customers’ nutritional self-care. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of products do they manufacture?
• What are their research and development capabilities?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide product development?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a pharmaceutical company, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of pharmaceutical business that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you manufacture patent-protected prescription medications, or a range of vitamins?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your pharmaceutical business. Document where your company is situated and mention how the site will impact your success. For example, is your pharmaceutical company located in an industrial district, near a major medical and/or scientific hub, or near input markets? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your pharmaceutical marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Advertise in trade publications
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your pharmaceutical company, including meeting with potential customers, creating and distributing product information, developing and manufacturing products, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to produce your Xth product, or when you hope to reach $X in revenue. It could also be when you expect to expand your pharmaceutical business to a new city.  

Management Team

To demonstrate your pharmaceutical company’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing pharmaceutical businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a pharmaceutical business or successfully running a R&D company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions including your sales projections. For example, will you manufacture a line of general sales products, or will you specialize in manufacturing controlled drugs? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your pharmaceutical company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a pharmaceutical company:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility blueprint or a list of products you manufacture.  

Writing a business plan for your pharmaceutical business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the pharmaceutical company industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful pharmaceutical company.  

Pharmaceutical Business Plan Template FAQs

What is the easiest way to complete my pharmaceutical business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your pharmaceutical business plan.

How Do You Start a Pharmaceutical Business?

Starting a pharmaceutical business is easy with these 14 steps:

• Choose the Name for Your Pharmaceutical Business
• Create Your Pharmaceutical Business Plan
• Choose the Legal Structure for Your Pharmaceutical Business
• Secure Startup Funding for Your Pharmaceutical Business (If Needed)
• Secure a Location for Your Business
• Register Your Pharmaceutical Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Pharmaceutical Business
• Buy or Lease the Right Pharmaceutical Business Equipment
• Develop Your Pharmaceutical Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Pharmaceutical Business
• Open for Business

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OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Medicine Store Business Plan

$59.00 $39.00 4 reviews

Resources On Medicine Store

• Financial Model
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model

Marketing Plan

• Bundle Business Plan & Fin Model
• Description

Executive Summary

Products & services, market analysis.

• Management Plan
• Financial Plan

Many individuals face the inconvenience and expense of prescription medication for conditions that can be treated with over-the-counter (OTC) remedies. Additionally, finding a retailer with a broad range of reliable OTC products can be challenging, especially for those who prefer to shop in-person rather than online. Medi-Stop aims to solve this problem by providing convenient and affordable access to a wide selection of OTC medications, supplements, and personal care products. With our physical storefront location in a prime spot in Los Angeles and potential for an online store, we are filling a need for customers seeking a one-stop-shop for all their health and personal care needs. Our knowledgeable staff will assist customers with product information and queries, ensuring a streamlined and convenient experience for all.

Medi-Stop provides a solution to the problem of expensive and inconvenient access to health and personal care products. Our walk-in medicine retail store offers a wide range of over-the-counter medications, supplements, and personal care products at competitive prices. With our physical storefront location, customers can conveniently access all their health and personal care needs in one place. Our knowledgeable staff members are available to assist customers with product queries, making Medi-Stop a one-stop-shop for all their health needs. Additionally, we plan to launch an online store in the future, providing customers with the convenience of shopping from the comfort of their own homes. At Medi-Stop, our goal is to provide customers with an affordable and convenient solution to their health and personal care needs.

Target Market

Medi-Stop aims to serve a diverse customer base in Los Angeles, California, who are seeking convenience and affordability for their health and personal care needs. The target market for our walk-in medicine retail store includes individuals from all age groups, genders, and income levels who require access to over-the-counter medications, supplements, and personal care products.

We will cater to customers who prefer to shop for health and personal care items in-store rather than online, and those who want a one-stop-shop for all their needs. Medi-Stop will offer competitive prices on all our products to make them accessible to a broader range of customers.

We aim to attract customers who prioritize exceptional customer service and seek knowledgeable assistance while purchasing health and personal care products. Additionally, we plan on implementing a loyalty rewards program to retain customers and encourage repeat business.

Our target market also includes tourists visiting Los Angeles, who may require access to medication or personal care products during their stay. Medi-Stop will provide a convenient and accessible brick and mortar store located in a prime location to meet their needs.

Overall, our defined customer base includes anyone seeking convenience, affordability, and top-notch customer service for their health and personal care needs.

Competition

Medi-Stop will be competing against other brick and mortar medicine retail stores in the Los Angeles area. Our biggest competitors include Walgreens, CVS, and Rite Aid, which are established retail chains that offer a range of health and personal care products. Additionally, there are independent pharmacies and specialty stores that cater to specific health needs, such as herbal remedies and organic products.

However, Medi-Stop aims to differentiate itself from the competition by providing a wider range of products at competitive prices, as well as exceptional customer service. Our knowledgeable staff will be available to assist customers with their health and personal care queries, and we aim to establish a loyal customer base through implementing a potential rewards program. Furthermore, we will explore potential partnerships with suppliers and manufacturers to offer unique and innovative products that our competitors may not have access to.

Financial Summary

The financial plan for Medi-Stop is based on a robust cost structure and a revenue stream model that is driven by product sales.

Key highlights of the financial plan include:

• Startup costs of $500,000 to cover rent, inventory, employee wages, and marketing expenses
• Aiming to achieve profitability in the first year of operation
• Revenue streams driven by product sales
• Strict cost-cutting measures to ensure profitability in the first year of operation
• Potential for expansion of physical storefront presence in other cities and states across the US in the long-term

The financial plan of Medi-Stop is focused on establishing a profitable and sustainable business model while providing unparalleled customer service to customers. By focusing on a cost structure that ensures profitability and a revenue stream model that is driven by product sales, Medi-Stop aims to become a leading brick and mortar medicine retail store in Los Angeles and potentially across the US.

Funding Requirements

To launch Medi-Stop, we require a total of $500,000 in seed funding. The breakdown of the required funds is as follows:

• $150,000 for rent and store renovation
• $200,000 for initial inventory
• $100,000 for employee wages for the first year of operation
• $50,000 for marketing and advertising expenses

The seed funding will be used to cover startup costs and ensure a successful launch for Medi-Stop. We plan to implement cost-cutting measures in our first year of operation to achieve profitability and ensure long-term sustainability. We believe that this funding will allow us to meet our immediate business goals and establish ourselves as a reputable and reliable source for affordable health and personal care products in the Los Angeles area.

Milestones and Traction

Medi-Stop is focused on achieving specific milestones to successfully establish itself in the Los Angeles market. Below is a roadmap HTML table of our planned milestones:

Our team is committed to achieving these milestones and gaining traction in the market through providing exceptional customer service and affordable prices for all health and personal care needs. We believe that with the right roadmap and resources, we can establish a profitable and sustainable walk-in medicine retail store.

Problem Worth Solving

Access to affordable and convenient health and personal care products is essential for every individual. However, customers often find it challenging to find a complete range of over-the-counter medications, supplements, and personal care products at competitive prices, all in one place. With limited options available, customers end up paying exorbitant prices or having to travel to different stores to fulfill their health and personal care needs. This is where Medi-Stop comes in, providing a one-stop solution with a vast selection of affordable and convenient products. Our aim is to make access to health and personal care products easy, convenient, and affordable, thereby solving a significant pain point for our customer base.

Our Solution

Medi-Stop offers a comprehensive solution for all your health and personal care needs. Our extensive range of over-the-counter medications, supplements and personal care products, all under one roof, provide an unparalleled level of convenience and affordability for our customers.

Our products are sourced from reputable manufacturers with a proven track record of quality. Our staff members are highly knowledgeable about all the products that we offer and are always available to assist customers with any queries they may have.

At Medi-Stop, we believe that everyone should have access to affordable healthcare. That is why we have a wide variety of products to cater to different budgets and needs. Whether you are looking for pain relief, skincare, or immunity boosters, we have got you covered.

In addition to our vast product selection, we also offer excellent customer service. Our staff members are committed to making your shopping experience as hassle-free and enjoyable as possible. Moreover, we are working on implementing a loyalty rewards program to incentivize our customers to keep coming back.

Overall, our solution is to provide a one-stop-shop for all your health and personal care needs, offering convenience, affordability, and exceptional customer service.

Validation of Problem and Solution

There is a clear need in the market for a brick and mortar medicine retail store that offers a wide range of over-the-counter medications, supplements, and personal care products at competitive prices. According to a report by Grand View Research, the global OTC medication market is expected to reach $239.8 billion by 2025, driven by the increasing prevalence of chronic diseases, rising self-medication among individuals, and growing awareness about preventive healthcare.

Furthermore, a survey by the National Center for Health Statistics found that 81% of adults reported using OTC medications, with the most common types being pain relievers, cough/cold remedies, and multivitamins. This further emphasizes the need for convenient and affordable access to OTC medications and supplements.

By offering a wide range of OTC medications, supplements, and personal care products, Medi-Stop aims to fulfill this need in the market. Our knowledgeable staff will also be trained to provide customers with product information and assist them with their queries, further adding value to our offering.

In addition, we plan to implement a loyalty rewards program to attract and retain customers. Studies have shown that loyalty programs are an effective way to increase customer retention and overall profitability. According to a report by Bond, customers enrolled in loyalty programs spend 18-22% more than those who are not enrolled.

Overall, our business model is based on providing customers with a convenient and affordable solution for their health and personal care needs, and we are confident in the demand for our products and services.

Product Overview

Medi-Stop is a walk-in medicine retail store that offers a wide range of over-the-counter medications, supplements, and personal care products at competitive prices. Our product range includes trusted and reputable brands of OTC medications, such as pain relievers, cold and flu medicines, and digestive system aids. We also offer a variety of vitamins and supplements to help customers maintain their health and wellness.

Our beauty and personal care items include products for skin care, hair care, oral hygiene, and first aid. We strive to provide our customers with a one-stop-shop for all their health and personal care needs.

Our products are suitable for anyone seeking convenience and affordability for their health and personal care needs. Whether it's a busy working adult who needs a quick and easy solution for a headache, or a health-conscious customer looking for natural supplements to support their immune system, we cater to all.

The benefits of shopping at Medi-Stop include competitive pricing, trustworthy products sourced from reputable manufacturers, and knowledgeable staff who are ready to assist customers with their queries. Our goal is to provide an affordable and convenient solution for all our customers' health and personal care needs.

There are several existing walk-in medicine retail stores in the Los Angeles area that offer similar products. However, Medi-Stop seeks to differentiate itself through our commitment to providing unparalleled customer service and affordability. Our knowledgeable staff will be available to assist customers with their queries and recommend products that suit their needs and budget. In addition, we plan to offer competitive prices for all our products to make it accessible to everyone.

One of our main competitive advantages lies in the size of our product range, which will include over-the-counter medications, vitamins, supplements, beauty, and personal care items. We will source all our products from reputable manufacturers with proven track records to ensure quality and safety. Our physical storefront location also adds convenience for customers who prefer to browse and shop in person.

Lastly, we plan to implement a loyalty rewards program to incentivize customers to keep returning to Medi-Stop. We believe that our customer-centric approach and competitive pricing will enable us to succeed in the highly competitive walk-in medicine retail industry.

Roadmap - Products & Services

At Medi-Stop, our goal is to offer customers the most convenient and affordable solution for all their health and personal care needs. Our product range includes OTC medications, vitamins and supplements, and beauty and personal care items. We source all our products from reputable manufacturers to ensure the highest quality for our customers.

So far, we have taken the following steps to establish our business:

As we continue to establish and grow our business, we plan to take the following steps:

• Finalize the lease agreement for our physical storefront location.
• Set up our inventory management system and receive our first shipment of products.
• Launch our marketing campaign to attract customers to our physical storefront location.
• Explore potential partnerships with manufacturers for exclusive product offerings.
• Consider expanding our physical storefront presence to other cities and states across the US.

By taking these steps, we aim to become a go-to destination for customers seeking convenience and affordability for their health and personal care needs.

Market Segmentation

The potential customer groups for our medicine retail store can be segmented based on the following characteristics:

By catering to the various needs of these customer segments and offering competitive prices for our products, we have significant potential for success in the market.

Target Market Segment Strategy

Our ideal customer is anyone who values convenience and affordability when it comes to their health and personal care needs. We understand that not everyone has the time or resources to schedule a doctor's appointment for minor issues or to drive long distances to find the products they need. Our walk-in medicine retail store solves that problem by providing access to a vast selection of over-the-counter medications, supplements, and personal care products at competitive prices.

We believe that our target market segment also includes individuals who are health-conscious and seek alternative or natural remedies for their health concerns. Our knowledgeable staff can provide guidance and recommendations for their specific needs, making our store a one-stop-shop for all their health and personal care needs.

By providing convenience, affordability, and a vast selection of products, we aim to become the go-to destination for anyone seeking non-prescription health and personal care products in the local community.

Key Customers

Our ideal customer archetype is a busy individual who values convenience and affordability in their health and personal care purchases. This individual may not have the time or desire to visit a traditional pharmacy or navigate online ordering. They trust our knowledgeable staff to provide them with the best over-the-counter solutions for their needs. They are likely to become return customers who appreciate our competitive prices and potentially participate in our loyalty rewards program. Our business thrives on these repeat customers who spread the word about our convenient and reliable services.

Future Markets

Based on our market analysis and business plan, we see significant potential for growth and expansion in the future. Our focus on convenience and affordability appeals to a broad customer base, and our knowledgeable staff and wide selection of products sets us apart from competitors.

As we continue to build customer loyalty through excellent customer service and potentially implement a rewards program, we believe our customer base will continue to grow. Additionally, expanding our product offerings to include specialty items and potentially integrating an online store could further increase our reach and revenue streams.

Overall, we are optimistic about the future of our business and the potential for growth in the retail medicine market.

There are several potential competitors in the market, including:

While there are established national chains in the market, our business aims to differentiate itself by offering a wider selection of products and more competitive pricing.

Marketing and Sales Plan

Our marketing and advertising strategy will focus on both online and offline channels. We will utilize social media platforms such as Facebook and Instagram to promote our products and offer special deals and promotions. We will also advertise through local newspapers, flyers, and radio ads to reach a wider audience.

Our main goal is to increase our customer base and sales by at least 15% within the first year of operation. Our advertising budget will be approximately 10% of our projected revenue, with the majority of expenses going towards online advertising and local print ads.

Location and Facilities

Medi-Stop will be located in a prime location in Los Angeles, California to ensure easy accessibility for our customers. The storefront will be spacious and bright to provide customers with a welcoming and comfortable atmosphere. The rent for the storefront will be one of our major fixed costs. However, we have carefully selected a location that is highly visible and frequented by potential customers to ensure that our revenue stream will be maximized.

In addition to our prime location, we will also focus on equipping our store with the necessary facilities to provide customers with an exceptional shopping experience. Our store will have ample parking space for our customers, making it easy for them to access our services. We will also ensure that our store is clean, organized, and well-stocked with the latest health and personal care products. Our staff members will be trained to maintain excellent facilities as part of our commitment to providing unparalleled customer service.

Equipment and Tools

For our walk-in medicine retail store, we require various equipment and tools to support our marketing and sales plan. Below is an outline of these requirements along with associated costs:

Our equipment and tools are essential to our successful operation as a walk-in medicine retail store. The POS system ensures accurate sales transactions and inventory management. The barcode scanner and printers streamline our sales process. The cash register provides us with a secure location for handling cash transactions. Our shelving and display cases allow us to showcase our products properly and maximize sales. Security cameras ensure the safety of our staff and customers. Lastly, our store signage communicates our brand message and attracts potential customers.

Management and Organization

Organizational structure.

Our walk-in medicine retail store follows a simple structure that allows for efficient daily operations. At the top of the hierarchy is the owner, who oversees all areas of the business and makes crucial decisions. They are responsible for maintaining supplier relationships and ensuring the company's financial stability.

Reporting to the owner are the store managers and supervisors, who handle day-to-day operations such as inventory management, employee scheduling, and customer service. These employees are responsible for hiring and training new staff, ensuring a smooth and efficient customer experience.

At the retail level, we have sales associates who provide customers with product recommendations and process transactions. They are responsible for ensuring that customers find what they need and have a positive shopping experience.

We foster a culture of open communication between levels of the organization, allowing for a smooth flow of information. Our goal is to create a collaborative environment where all employees feel valued and empowered to contribute to the success of the business.

Management Team

The success of our walk-in medicine retail store depends heavily on the competency and experience of our management team. We intend to recruit individuals who have skills in retail management, supply chain management, marketing, and customer service.

Here is a table of potential candidates we anticipate taking on high-level management roles within our company:

We believe that this team has the potential to excel in managing our walk-in medicine retail store and ensure that our customers have a great experience.

Management Team Gaps

Personnel plan.

Below is a table of the potential positions we expect to require in order to run our walk-in medicine retail store effectively:

Company History and Ownership

Medi-Stop is a walk-in medicine retail store that will be located in Los Angeles, California. The idea for the business came from the founders’ personal experiences of struggling to find affordable and convenient access to over-the-counter medications and personal care products. They saw a gap in the market for a store that offers a wide variety of products at competitive prices, and decided to fill it.

The company will be owned by a team of experienced entrepreneurs with a strong background in retail and healthcare. They have a solid understanding of the market and are committed to providing customers with an exceptional shopping experience.

The team has spent several months researching and planning for the launch of Medi-Stop. They have conducted extensive market research, established relationships with suppliers, and secured funding to cover startup costs. Their attention to detail and dedication to the success of the business will ensure that Medi-Stop quickly becomes a staple in the Los Angeles community.

Management and Organization of Medi-Stop will prioritize achieving the following goals:

Key Metrics

As a walk-in medicine retail store, some key metrics that should be tracked to gauge overall performance and health of the business include:

• Revenue and profit margins: This will help track how well the business is performing financially.
• Customer satisfaction rates: Feedback from customers can help identify areas for improvement and how well the business is meeting their needs.
• Inventory turnover rate: This will help track how quickly products are being sold and how well inventory is being managed.
• New customer acquisition rate: This metric will help track how effective marketing efforts are in attracting new customers.
• Loyalty program participation: This will help track how well customers are engaging with the business and incentivizing repeat business.

Financial Plan and Metrics

Sales forecast.

The following table shows the projected sales for the three years (2023, 2024, 2025) broken down by product categories:

These sales projections are based on market research and industry trends, as well as our own analysis of potential customer segments and competitors. As we establish our brand and reputation in the Los Angeles community, we anticipate increasing sales and potential for expansion in other markets.

Starting and operating a walk-in medicine retail store involves several expected or incurred costs. Below are the details of startup costs and operational expenses:

Startup Costs

Operational expenses.

These costs will be monitored and adjusted as necessary to ensure the business remains financially sustainable.

Projected Profit and Loss

Medi-Stop aims to reach profitability within the first year of operation. Our projected sales forecast for the next three years is as follows:

Our primary source of revenue will be product sales, and we expect to achieve gross margins of at least 50% over the next three years. We plan to implement cost-cutting measures in our first year to ensure profitability. Our expenses list includes rent, inventory costs, employee wages, and marketing expenses.

Projected Cash Flow

Below is a projected cash flow statement for Medi-Stop for the years 2023, 2024, and 2025.

The inflow for 2023 is expected to be $500,000, which will cover startup costs such as rent, inventory, employee wages, and marketing expenses. In 2024 and 2025, the inflow is expected to increase to $750,000 and $1,000,000 respectively as the business establishes itself within the Los Angeles community and potentially expands its physical storefront presence in other cities and states.

The outflow for 2023 is expected to be $450,000, while in 2024 and 2025, it is expected to be $600,000 and $700,000 respectively as the business grows and invests in inventory and marketing expenses.

The net cash flow for 2023 is expected to be $50,000, which will increase to $150,000 and $300,000 in 2024 and 2025 respectively. The cumulative net cash flow for 2023, 2024, and 2025 is expected to be $50,000, $200,000, and $500,000 respectively.

Projected Balance Sheet

The projected balance sheet shows steady growth in assets, liabilities, and equity over the course of three years, indicating a healthy and sustainable financial position for the medicine retail store. The balance sheet categories of assets, liabilities, and equity have been accurately represented in the table for each respective year, reflecting the expected financial status of the business for the given time frame.

Our walk-in medicine retail store will require a team of knowledgeable and friendly staff to provide excellent customer service. We intend to hire both full-time and part-time employees with experience in the healthcare industry and retail sales. Compensation will be competitive and fair, with potential for bonuses based on performance. Our employees will be an essential part of our business operations, assisting with inventory management, sales and marketing, and customer service. We will provide training and ongoing professional development opportunities to ensure our staff is equipped to meet the needs of our customers and grow with our business.

Use of Funds

The $500,000 seed funding will be allocated towards necessary startup costs as follows:

We will also implement cost-cutting measures in our first year of operation to ensure profitability and sustainability for the future.

Exit Strategy

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Medicine Store Business Plan | Medicine Store Budget Template | Medicine Store Pro Forma | Medicine Store Financial Model

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Medicine Store Financial Model/Business Plan Excel Template

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Business Plan Guide and Business Plan Template in MS Word Format

Financial Dashboard in Excel To Track Your Business Performance

MEDICINE STORE STARTUP BUDGET INFO

Five-year horizon 5 year cash flow projection template for the Medicine Store business for early-stage startups to impress investors and raise capital . Use Medicine Store financial plan template excel to get funded by banks, angels, grants, and VC funds . Unlocked - edit all.

Medicine Store cash flow proforma template evaluates the impact of an investment. The pro forma template excel is a more advance with options making adjustments to create a Pro Forma closing balance sheet, incorporate s given scenarios and terms of the deal, and as well as performs break even point, and determining the expected impact on valuation.

Our Business Plan Template For Medicine Store designed to help you make informed principal business and financial decisions bases on accurate reporting. This business plan financial projections template excel Medicine Store contains all relevant statements and tables which are necessarily required to project and analyze business financial outcomes.

The Medicine Store Pro Forma designed by our team allows the user to forecast revenue and expenses of a startup or existing business for up to 60 months; additionally, it includes three financial statements ( monthly profit and loss statement template , cash flow forecasting model , pro forma balance) on a monthly and annual basis. And, it also includes sales analysis, feasibility matrices, diagnostic tools. It also includes financing options analysis for the project, including equity funding from investors.

This Medicine Store cash flow projection template excel excel Medicine Store has a complete business financial plan for all the Medicine Stores of any size or belongs to any phase. This model has all significant tools that are urgently required for planning, operating, and creating a successful small or huge Medicine Store. The advantage of this excel Medicine Store is that you don’t need to have any professional finance knowledge or technical skills. Everyone belongs to any background can work with it.

MEDICINE STORE FINANCIAL PLAN REPORTS

All in One Place

Our projected cash flow statement template excel is fully customizable, and you change the core parameters such as startup financials template, operating costs, hiring plan, startup valuation calculator excel, capitalization table, and reporting as per your needs. This startup financial model template excel also allows you to alter the projection that suits your business; even you can add new projections. In addition, you can add new assumptions and forecasting methods in our flexible financial projections 12 months template that suits your business. Our templates are fully customizable, and you can edit every cell and formula as per your needs and tailor the whole 5 year financial projection template excel for your business needs.

This business plan financial projections template has an all-in-one dashboard. This tab is a snapshot of a business's start-up metrics at a particular point in time. You can see your core start-up financials, revenue breakdown by years, cash flow excel sheet data, profitability forecasts, and cumulative cash flow on this dashboard in the form of charts and graphs.

Startup Financial Statements Examples

This pro forma excel automatically generates all your key annual three key financial statements for you! It is simple to use and follows the assumptions you provide. Input the details of your assumptions into our ready templates and let our projected income statement template excel do the rest!

Sources And Uses Of Funds Statement

This financial model in excel helps to know what are the sources of cash flow and how they are distributed within the company. This provides the necessary conditions for structured business planning and management. This simplifies the reporting process, because all sources of income are analyzed and calculated down to the smallest detail.  That's why this startup financial model template excel is a very effective and reliable tool.

Cvp Chart Excel

The cashflow projection has an integrated template for the break-even analysis. The break even chart excel calculation helps the company's management understand when the company is expected to become profitable. This cash flow format in excel will automatically generate y break-even timing, break-even units, and break even sales calculator of the company.

Top Revenue

The Top Revenue tab helps you create a demand report for your Café products and services. You can also access the profitability and Financial metrics depending upon your assumptions. You can quickly analyze the pro forma template's revenue depths and revenue bridge. The revenue template also helps you get the projection for different periods such as weekdays or only weekends. With these revenue reports, you can better decide when you have adequate resources and need more resources.

Company Top Expenses List

For this purpose, it is necessary to analyze the highest costs and work on their always optimization. In our startup costs spreadsheet we have created a top expense report that helps users with this task. It summarizes the four expense categories that are biggest and the rest of the expenses as the 'other', so the users can easily monitor these expenses and track the tendencies related to their increase or decrease from year to year. It is very important for a start-up and existing company to monitor, plan, and manage its costs and expenses to maintain a high-level of profitability.

MEDICINE STORE FINANCIAL PROJECTION EXPENSES

Our startup budget is an essential tool for any organization, and any industry, thanks in large part to its intuitive cost management and forecasting structures. Our Medicine Store financial projection template allows you to organize and project your financial expenses and budget for up to 5 years and see the variations and changes over different time horizons. We do this with the help of preliminary parameters, such as cost-to-income percentages, payroll, current and recurring costs, and grouping of expenses and costs based on the major categories: cost of goods sold (COGS), fixed or variable costs, wages, and/or capital expenditure.

Initial Startup Costs

The initial startup costs reflects the total amount of money spent by the business to defend, develop, and improve its business and competitiveness. Staff salaries and operating costs are not included in these costs. The study enables readers to determine which aspects are more advantageous to invest in and which are not. Because capital expenditures range greatly amongst business models, this report must be included in the business model description.

Debt Repayment Plan

Monitoring and managing loans profiles, repayment schedules, and the corresponding use of proceeds is an essential skill for all companies, but especially for start-ups and growing enterprises. Key to this is the right infrastructure and software, which has information (the best have line-by-line breakdowns) about amounts outstanding, maturity dates, maintenance ratios, and other key covenants. A standard loan repayment schedule should show the interest expense and principal repayment milestones, which impact the company's business plan cash flow forecast. Furthermore, the closing debt balance should flow and link onto the balance sheet. Above all, it should be clear how the regular expenses and repayments of loans impact the cash flow statement on a regular basis so that users can see their financial obligation.

MEDICINE STORE INCOME STATEMENT METRICS

Profitability KPIs

EBITDA refers to the business earnings before income tax, depreciation, and amortization, and it is the basic metrics calculated by a feasibility study template excel to measure the operating performance of any business or company.

Cash Flow Statement Excel Template

The monthly cash flow statement format in excel is one of the most important excel financial statement template since it calculates how much cash a business has on hand or if it does not have enough to gain additional financing. Our template contains a dedicated sheet where users can track and analyze your company's cash flows. This cash flow analysis excel is based on: Payable and Receivable Days, yearly income, working capital, long-term debt, and net cash. These calculations are then used as an input in net cash flow, including beginning and end cash balances. This business plan projections template is a great representation of your company’s cash flow management.

Industry Benchmarks

The business plan excel financial template benchmark tab generates the key performance indicators (KPIs) for each comparative company. These KPIs are typically business or financial in nature and are used to position the user's company in an industry-wide context against relevant and comparable businesses and players. From each KPI an average value is derived, and these industry average metrics are then the basis for computing the relative value, which is the end result for benchmarking analysis. For all companies, benchmarking is a crucial and standard form of check-and-balance as well as strategic planning. For financial planning, companies use financial benchmarks - this is especially useful for start-ups, as this analysis illustrates best practice standards within an industry for neophyte companies within a single exercise, which gives the eponymous 'benchmark' that the company can measure itself against. This is very useful and valuable to a new company.

P&L Statement Template Excel

Projecting a business' profit and loss statement in order to have an understanding of Medicine Store's future financial performance is the most modern and arguably the most effective method to plan your business. By assuming income and expenses based on past performance, users can project forward and plan a strategy based on what is forecasted to be the strongest drivers for profitability and potential shortfalls.

Pro Forma Balance Sheet Template Excel

The pro forma balance sheet template excel is a financial statement that shows your Medicine Store's main assets, such as building, equipment, and others, along with its liabilities and capital at a specific date. Banks want to see in your projected balance sheet for startup business the loan security in the assets section.

MEDICINE STORE INCOME STATEMENT VALUATION

Pre Revenue Valuation

You'll get all the data your investors need with our pre-built seed stage valuation in the business plan excel template. The weighted average cost of capital (WACC) will show your stakeholders the minimal return on capital invested in the enterprise's activities. The cash flow accessible to all investors, including shareholders and creditors, will be shown in a free cash flow valuation. The value of future cash flows will be reflected in discounted cash flow in proportion to the current period.

Cap Table Startup

The equity cap table reflects the share capital of the company. It is essential to make financial decisions involving shares' value analysis and the company's market capitalization and market value. With the captable, you can determine the Medicine Store's market value you want to invest in. As you can see, the full version of our financial forecast template contains proformas for all financial reports and additional calculations that you may need for the financial assessment of the project, and you can buy it right now.

MEDICINE STORE PROJECTED FINANCIAL STATEMENTS IN EXCEL FORMAT KEY FEATURES

Save time and money

Via 3 year financial projection template excel you can without effort and special education get all the necessary calculations and you will not need to spend money on expensive financial consultants. Your task is building a strategy, evolution, and creativity, and we have already done the routine calculations instead of you.

Prove You Can Pay Back the Loan You Requested

When you apply for a business loan, bankers will study your cash flow analysis spreadsheet in an attempt to answer this question: Can this business pay back the loan? Requesting a loan without showing your monthly cash flow statement format in excel for paying it back is a common way to land in the rejection pile. It is exceptionally accurate if your current cash flow won't cover all of your monthly operating expenses — plus your loan payment. Don't fall into this kind of situation. Use cash flow analysis excel to strengthen your case by showing the banker exactly how you plan to use the loan and when you will start repaying the debt. This type of forecasting helps you create a road map that can impress a lender with the confidence they need to approve your loan.

Print-ready Reports

Solid package of print-ready reports, including a p&l statement template excel, cash flow pro forma, a balance sheet, and a complete set of financial ratios.

Manage surplus cash

Most companies don't have excess cash in the bank. It is a well-known situation. But managing surplus cash for reinvestment in new market opportunities, or debt repayments can be essential to keeping stay in the business. Managers are entirely ready to plan for what to do with the cash surplus if they have the forecast of when and where the business will have surplus cash in the bank account. cash flow projection business plan will provide supplementary guidance on what to do with a cash surplus.

Get Investors to Notice

Most entrepreneurs can't get investors to return their calls. With the Medicine Store excel pro forma template, you will secure meetings with potential investors easily.

MEDICINE STORE 3 WAY FINANCIAL MODEL ADVANTAGES

Choose One Of 161 Currencies For Settlements

Pro Forma Projection Allows To See And Compare Business Expenses And Income For Periods

Determine Your Medicine Store Financial Needs

Financial Plan Template Excel Helps You Better Understand Your Customers

Grow Your Business With Medicine Store business financial model template

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Medical Supply Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Medical Supply

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.
• 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.
• 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
• 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.;

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.

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.

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;

• 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;

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

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Medicine Dispenser Business Plan

Start your own medicine dispenser business plan

Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

Sunapto will manufacture and market an automated pill dispensing unit, the MedCabinet and a companion monitoring service to fill the medication compliance problem in the United States. The elderly often have multiple disease states and/or chronic conditions and consume an average of four to five prescription drugs and two over-the-counter drugs per day. Nearly 67% of all elderly patients fail to follow important dosage instructions for their medications. The risk of hospitalization due to adverse medication outcomes in elderly patients is almost 6 times greater than that for the general population.  

Sunapto’s mission is to provide people the opportunity to live better and healthier lives though the use of technology. They will provide medical systems for the home that will use patentable technology to ensure safety, ease of use and a continuous partnership with healthcare providers. Their target market is the 65 and over age group. Thirty-five million Americans are in this group and the group is growing at 1% per year. They intend to grow the business and to establish their brand as a product leader and innovator in home healthcare devices.

Sunapto’s marketing strategy will follow from industry/trade and physician/pharmacist awareness campaigns to specific executions directed at specific customer segments. Sunapto’s initial sales strategy is to sell the MedCabinet directly to consumers. The MedCabinet is projected to sell for $700 and will provide medication users with the right pill at the right time.

Sunapto faces competition in the medication compliance market from reminder devices, automated medication dispensers and compliance services. The closest competitor to be considered is a similar product in the automated medication dispenser and compliance service market. Its weaknesses are its cost, limited dosing events and its weak marketing and distribution channels. This makes it vulnerable to a new, improved entry.

Sunapto is in the pre-start-up stage. Sunapto will be formed as a start-up LLC in MidWest, USA. The management team has experience in growth-oriented technology, business unit development, finance, and team leadership and development. Having witnessed the problems of medication compliance in their families, the management team is committed to being part of the solution that addresses the compliance issue that plagues the elderly. Sunapto is looking to add sales, marketing and medical device product development experience to its management team.

The MedCabinet is in the concept development stage. Sunapto anticipates having a working prototype five months after plan initiation and for sales to begin 12 months after plan initiation. Initial sales projections are 11,077 units during Year 2 and 13,419 units during Year 3.

Sunapto needs substantial investment to bring the MedCabinet to market. They anticipate two rounds of financing. The founders have pledged personal financial contribution for Round 1. Sunapto is seeking additional outside investors before launching the company. These funds will be used for management team gaps, prototype development and initial product marketing expenses. They anticipate Round 1 outside investors to realize a healthy return per annum over three years. Round 2 funding will be needed during the seventh month of operations. Round 2 funds will be used for management team gaps, prototype to product development, product marketing and for their contract manufacturing production expenses. Sunapto anticipates Round 2 outside investors to realize a respectable return per annum over three years.

1.1 Mission

Sunapto is a home healthcare technology company dedicated to enhancing peoples’ lives by bringing healthcare home. Sunapto provides home medical systems. These systems use technology to ensure safety, ease of use, an independent lifestyle and a continuous partnership with healthcare providers. Sunapto intends to seek a fair, yet aggressive profit, which will allow the company to be financially healthy for the long term as well as provide compensation to both owners and investors for their money and risk. They intend to grow the business and to establish their brand as a product leader and innovator in home healthcare devices. They intend to finance continued growth through a combination of equity investment and internally generated cash flow. Sunapto will continue to develop new product extensions once their marketing platform is established. Sunapto will maintain a strong and cohesive work environment with a shared ethos and a passion to grow with the intensity that only comes from belief.

1.2 Keys to Success

The keys to success for Sunapto are:

• Product Quality : A safe, reliable, easy to use product consisting of a well engineered design, quality workmanship, easy to follow programming, accurate dispensing and uncomplicated use.
• Marketing : Once a quality product is available, the success of Sunapto rests in the marketing venue. The MedCabinet is a new product and consumers must be educated to gain market penetration in a market comprised of people that often have a harder time accepting new technology.
• Partnerships : Sunapto is a management/marketing/technology company, not a manufacturing company. They will rely on partners to produce and deliver the product. The establishment and maintenance of partnerships will be crucial.
• Philosophy : Sunapto is in business to earn a higher than normal return for its business partners. In order to achieve this they will take a balanced approach in guiding the company. Sunapto will not be driven blindly from the financial perspective, but will be guided by four perspectives: Financial, Customer, Internal Process, and Learning & Growth.

1.3 Objectives

• Increase sales to more than 24,000 MedCabinet units by Year 3.
• Seven percent of units subscribed to monitoring and notification service by Year 3.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Sunapto will be a start-up Limited Liability Company (LLC) located in MidWest, USA. Sunapto will manufacture and market the MedCabinet automatic pill dispenser, targeting the 65 and over market segments. Initial market research has been completed and this business plan will serve as the framework for bringing their product to market.

Sunapto is in the development stage and its proposed operations are subject to all the risks inherent in the establishment of a new business enterprise, including the absence of an operating history. The likelihood of Sunapto’s success must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with the formation of a new business, and the competitive and regulatory environment in which Sunapto will operate. Although forecast revenues and expenses are set forth in this Plan, the actual amounts may vary substantially from those projected and no assurance can be made that the results forecasted in this Plan will be achieved.

2.1 Start-up Summary

Sunapto’s start-up costs are expected to be minimal. They will be mostly stationery, legal costs, and expenses associated with opening their first office. The start-up costs are to be financed by direct owner investment. The assumptions are shown in the Start-up Table.

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2.2 Company Ownership

It is anticipated that Sunapto will be structured as an LLC in MidWest, USA. Ownership will be distributed amongst the founding partners. The founders intend to sell limited ownership to outside private investors in external financing rounds.

2.3 Company Locations and Facilities

Sunapto is presently operated out of the home of the founder. Relocation to office space in the greater MidWest, USA area is anticipated at the realization of this business plan. Initially, the office space will be small to serve management of marketing functions, sales/ordering processing and technical development. As Sunapto adds employees, they will take on additional office space. Sunapto expects that space will be available in the future location.

Sunapto will conduct a search for a contract manufacturer for the MedCabinet. The contract manufacturer will initially handle distribution. Orders will be drop shipped from the plant. This eliminates the need to invest in distribution space at the outset.

Products and Services

Sunapto will initially develop and market one product and two companion services to enhance the product.

• MedCabinet , an automatic pill dispensing system. Its purpose is to facilitate medication compliance/adherence and alleviate other common problems with medication usage in the home, such as double dosing, losing pills and forgetting to take pills. The MedCabinet will dispense the correct medication at the right time, and will notify the user.
• MedCabinet Monitoring Service provides secure website access to details about the MedCabinet’s dispensing activities.
• MedCabinet Notification Service provides caregiver notification of events that may disrupt the MedCabinet’s dispensing activity or the user’s medication compliance.

The technology used in the MedCabinet will contain items subject to patent protection.

3.1 Product and Service Description

A detailed and technical description of Sunapto’s initial product and service line follows:

MedCabinet The MedCabinet is an automatic pill dispensing system. The MedCabinet will dispense the correct medication at the right time, and will notify the user of the medication’s availability. The MedCabinet provides protection against both serious and minor complications caused by drug-related problems, especially in the elderly. The MedCabinet is a single user product and is not intended to dispense medications to multiple users.

The MedCabinet has some specific safety features. The medications in the MedCabinet are secured under lock and key. In the case of a caregiver, this protects the medications from tampering by the person under care. In all instances, this protects the medications from unauthorized access from others. The MedCabinet has a battery backup system to ensure proper dispensing during a power outage.

The U.S. Food and Drug Administration (FDA) – Center for Devices and Radiological Health (CDRH) monitors and controls medical devices. It is expected that the FDA will classify the MedCabinet as a class I device. The FDA requires a manufacturer to register its class I device but it does not require a premarket notification application or a clearance from the FDA before marketing the device. As required by the FDA, the MedCabinet will be registered 30 days before manufacturing starts.

MedCabinet Monitor Service The MedCabinet monitor service allows third parties to monitor the product’s dispensing activity. The monitoring activity is accessible by secure Web access.

MedCabinet Notification Service The MedCabinet notification service allows third parties to be notified if a significant event occurs in the product’s dispensing activity. The notification service supports notifications by e-mail, telephone, fax or pager. This service can be configured to contact the user in addition to third parties.

3.2 Competitive Comparison

There are two options for organizing daily medications: the traditional weekly plastic pillbox and an electronic version of the weekly pillbox. Both options rely on someone manually separating the pills into the proper location and do not account for multiple medications that are consumed at different intervals.

If someone is having trouble remembering to take their medications, a number of compliance aids are available; ranging from simple pillboxes to services that will call to remind them to take their pills.

• Daily or weekly pillboxes permit distribution of medications into individual compartments based on the time of day the pills are to be taken. These can be obtained from a pharmacist – sometimes free.
• Various electronic devices are available, including stands and caps that fit on the bottle and clocks or watches that can be set to alert a user when it is time to take their medicine.
• Automated dispensers will meter out pills and alert a user to take them.
• Computer programs and pagers are available to remind a user of medication times.
• Some pharmacies and home health agencies offer telephone reminder services .

The cost varies widely – from zero for free pillboxes to several hundred dollars for automated dispensers and reminder services.

The closest product to the MedCabinet is the MED-Pharmacy II, or MP.2, developed by Home Medical Services LLC.

3.3 Fulfillment

Sunapto is a technology company that develops product concepts, and supplies the intelligence to these products in the form of software development. The establishment and maintenance of a partnership to manufacture their products will be crucial. There are multiple contract manufacturers in the marketplace. Sunapto will look to form a partnership with one of these manufacturers to develop and produce the MedCabinet. Some of the essential attributes that the partner Sunapto selects will have are listed below.

• Experience in the medical device field.
• Experience dealing with the FDA.
• Product development capabilities from product design/engineering to design for manufacturability.
• Manufacturing.
• Order Fulfillment.
• Distribution.
• Depot and Repair.

3.4 Technology

Technology affects Sunapto, its manufacturing partner and the MedCabinet in a variety of ways. As mentioned in the Fulfillment section, the contract manufacturer plays a crucial role in Sunapto’s success. A part of the evaluation of their contract manufacturer will be how the manufacturer monitors and implements changes in manufacturing technology.

The MedCabinet will use both hardware and software technology to perform its function. The technology chosen in these areas will be carefully selected to match a determined price and performance point. The technology in the MedCabinet will be updated as needed to keep a competitive price and performance point, but it is not anticipated to change as rapidly as today’s technology market.

The companion monitoring and notification service for the MedCabinet relies on Internet and database technologies. As changes occur in these technologies, Sunapto will incorporate these changes to benefit their customers.

The MedCabinet will contain patentable items that will require proper filings by a registered patent attorney once created. Utility patents currently provide owners of the patent a 20-year window from the time of filing to exclude others from using the technology.

3.5 Sales Literature

Sales literature for Sunapto and the MedCabinet remains to be developed.

3.6 Future Products and Services

Plans for future development by Sunapto include additional capabilities and enhancements to the MedCabinet product line. It is the objective of Sunapto to both innovate and market its products. Once an industry reputation has been achieved and marketing channels opened, expansion into other healthcare and medical device areas becomes potentially rewarding.

Market Analysis Summary how to do a market analysis for your business plan.">

Medication compliance in home settings to insure proper drug administration is a major unsatisfied need. As medication usage and life expectancy increase, and the shift towards more in-home healthcare proliferates, this need will only be accentuated. The MedCabinet will surpass the challenges imposed by this unsatisfied need and serve as a major asset to the target market.

4.1 Market Segmentation

The potential customers of Sunapto are both domestic and foreign. This plan focuses on Sunapto’s potential domestic customers. Once established, the expansion into foreign customers becomes potentially rewarding.

Individuals 65 and over residing in the U.S. that are using medications in an independent living situation are the main customer group for the MedCabinet. About two-thirds of the 65 and over age group use prescription and over-the-counter (OTC) medications, and account for about one-third of all prescription drug use. At any time, an average elderly person uses four to five prescription drugs and two OTC drugs and fills 12 to 17 prescriptions a year.

Secondary customer groups for the MedCabinet are those under the age of 65 that need assistance in medication compliance. This group includes individuals ranging from those taking multiple medications to those needing help remembering when to take their medication. Some of these individuals would include patients recovering from brain surgery, patients taking a drug cocktail to combat HIV/AIDS, or Parkinson’s Disease.

The following chart illustrates projected U.S. populations for various age segments; the numbers in the table are in thousands. Many are potential buyers of the MedCabinet, but Sunapto will initially concentrate on the 65 and over age group.

4.2 Target Market Segment Strategy

Sunapto’s choice of target markets is strategic. The 65 and over market have difficulty with memory and in dealing with complicated dosage instructions for multiple medications. They have a large unsatisfied medical compliance need. This is an expanding age group. The U.S. Census Bureau estimates the 65 and over segment of the population will grow 3.7% from 2001-2005 and 9.2% from 2005-2010.

4.2.1 Market Needs

The elderly often have multiple disease states and/or chronic conditions. They consume over one-third of the prescription medications in the United States. The average individual in Sunapto’s target market consumes four to five prescription drugs and two OTC drugs per day. The risk of hospitalization due to adverse medication outcomes in elderly patients is estimated at 17%, almost six times greater than that for the general population.

Cognitive impairment may play a major role in drug-related problems in the elderly, making it difficult or impossible to correctly follow directions of appropriately prescribed medications. Other factors include the lack of primary care provider help with medication management; financial considerations that affect the purchase and regular use of medications; and decline in vision that impairs the ability to correctly read directions. Nearly 67% of all patients fail to follow important dosage instructions for their medications. Thirty-three percent of patients take all their medicine, 33% take some and 33% do not take their medication at all. Some of the negative outcomes resulting from drug-related problems are:

• Additional healthcare encounter.
• Additional medication.
• Emergency department or Urgent Care visits.
• Allied health professional visit (e.g. dietitian, physical therapist).
• Additional laboratory or radiology procedure.
• No treatment.

The main customer need is medication compliance. In order for compliance to occur, medication needs to be more easily organized and administered. The MedCabinet will address this need.

4.2.2 Market Trends

The population in the United States is generally becoming older and is projected to continue to do so. The reason for this is three fold. First, improvements in medication (both numbers and types) and general healthcare has extended the average life-span of Americans to 79.5 years for women and 74.1 years for men according to a 2001 report by the National Center for Health Statistics. The United State’s average life span has increased by approximately eight years over the past half-century, and it is expected to continue to increase in the future (at a lower rate). Second, people have taken more self-interest in their health, and thus found ways to prolong and enhance their lives. Finally, the baby boomer generation, the largest single group in the U.S., is approaching 65 years of age.

4.2.3 Market Growth

There is little doubt that the population in the United States is aging. The U.S. Census Bureau estimates that the mean age of the population will increase from 36 to 36.7 years during the period of 2001-2005. This increase can be partially attributed to their estimates that the 65 and over segment of the population will grow approximately 1% each year from 2001-2005. This amounts to approximately 350,000 individuals per year entering this age group, all potential MedCabinet users.

Although the population is aging, more of the population is leading independent lives. Merck & Co., Inc. reports in their Manual of Geriatrics that the percentage of elderly persons residing in nursing homes has decreased to 5.2%

4.2.4 Market Concept Test

Sunapto’s preliminary concept test showed a market penetration potential of 10%. While they realize that this cannot be translated into actual market share, it does provide solid evidence that their product would be viewed favorably. Sunapto estimates an initial market penetration of 2%. This market penetration rate was estimated using the following formula.

Market Penetration = Market Share 1 x Awareness 2 x ACV 3 1 Market Share is determined using the top two box method. It is the percentage of people who indicated in a product concept test that they “definitely would buy” or “probably would buy” the product under concept testing. In Sunapto’s case, this number was 10%. 2 Awareness is the percentage of the target market that is aware of your product. This number is a measure of the effectiveness of your advertising and product recall by a consumer. Sunapto used a conservative 45%. 3 ACV (All Commodity Volume) is a measure of distribution reach. 70% ACV, for example, means that a product is distributed in stores which represent 70% of sales volume of all products in the same category in that area. Sunapto used a conservative 45%.

4.3 Service Business Analysis

The medication compliance industry is extremely fragmented. The market consists of small companies selling both electronic and traditional pill dispensers and organizers. There are no major medical device companies making or distributing devices similar to the MedCabinet. The consumer is generally unaware of available options, especially electronic products. These consumers rely on expert advice from their physicians and pharmacists when making a purchasing decision.

4.3.1 Distributing a Service

The majority of electronic devices in this industry are sold over the Internet with a few also being listed in medical order guides. Non-electronic devices are sold in major retail outlets, pharmacies, and through mail order. In general, distribution patterns in the healthcare industry are such that the large buying and influencing groups dictate what products are used throughout their sphere of influence. Thus, Sunapto’s products could be mandated or forced out for thousands of patients due to their health plan or hospital group. Other buying and influencing groups recommend several alternatives that require physician and pharmacist education and intervention, similar to pharmaceuticals.

4.3.2 Competition and Buying Patterns

Consumer awareness of automated pill dispensers is very low. Sixty-seven percent of the respondents in Sunapto’s market research indicated that the MedCabinet was unique. Consumer awareness of the plastic pill holders (the seven compartment ones marked Sunday through Saturday) is high. These holders are sold through a variety of means including mass retail outlets like Wal-Mart.

4.3.3 Main Competitors

Sunapto faces competition on three main fronts in the medication compliance market. These fronts are reminder devices, automated medication dispensers and compliance services. The most important competitor to be considered is Home Medical Services LLC. Its strength is that it has a similar product in the automated medication dispenser and compliance service market. Its weaknesses are its cost, limited dosage days, and its weak marketing and distribution channels. This makes it vulnerable to a new, improved entry.

4.3.4 Business Participants

Currently, there are no major medical device companies making or distributing devices similar to the MedCabinet. The market is very fragmented and is made up of smaller companies selling both electronic and traditional (non-electronic) pill dispensers and organizers. Many of the companies compete in the electronic compliance/reminder device arena; few compete in the automated medication dispensers and compliance reminder service arena.

Strategy and Implementation Summary

Sunapto will pursue specific, definable, market segments with a multi-tiered, multi-channel approach. Marketing will follow from broad awareness campaigns to specific target customer campaigns. Sunapto will sell directly to customers directed to them from their marketing campaigns.

5.1 Value Proposition

Sunapto’s value proposition is quite different from others. The MedCabinet is the only product that will allow for prescription dosage and timing to avoid common compliance problems prevalent in the primary target market. The companion services for the MedCabinet offer third parties (e.g. healthcare providers, caregivers and/or family members) secure access to vital information to help ensure proper medication compliance.

5.2 Marketing Strategy

Marketing will follow from industry/trade, and physician/pharmacist awareness campaigns to specific executions directed at specific customer segments. Once the product has gained acceptance by individuals and care providers, Sunapto will initiate the second phase of their marketing strategy. Stage 2 will comprise three steps.

• Cast wider sales net over healthcare providers.
• Begin advertising campaign focusing on the elderly.
• Facilitate and rely on a strong word-of-mouth campaign.

5.2.1 Distribution Strategy

MedCabinet production will be outsourced to a contract manufacturer. Once an order is placed with Sunapto, their order-taking system will automatically notify the production company regarding shipping details. Software using Internet technology will provide an efficient mechanism for streamlining the ordering, production and delivery process.

Their product will initially be shipped directly from the contract manufacturer at the customer’s expense. The MedCabinet manufacturer will include receipts, instructions and other Sunapto literature.

Once the MedCabinet requires distribution to a wider array of buyers, Sunapto will consider a separate distribution center(s) to handle additional demand.

5.2.2 Marketing Programs

Specific marketing programs for Sunapto and the MedCabinet remain to be developed.

5.2.3 Pricing Strategy

Sunapto plans to price the MedCabinet at $700 in order to encourage both medically insured as well as non-insured consumers to buy the product. It is their intention to lobby insurance providers to help cover some or all of the cost of the MedCabinet.

The MedCabinet Monitor and Notification Service is priced at $19.95 per month.

5.2.4 Promotion Strategy

Public relations and industry media will help in Sunapto’s over-all industry awareness plans. Feature articles and product reviews will help launch awareness. Direct mail to buying and influencing groups and ads in trade and consumer target publications will help with buyer impressions.

Sunapto will work closely with physicians and home nursing professionals to design its product and services. The importance of working with physicians is well known. As an outgrowth of their Physician, Pharmacist and Home Nursing Advisory Board, Sunapto will actively recruit physicians, pharmacists and home nursing professionals with sponsored events and seminars.

5.3 Competitive Edge

Sunapto has a competitive edge in three areas: technology, marketing/distribution and their management team and advisory boards.

Technology : The MedCabinet will employ technology to enhance as much of the medication process as possible. This will reduce the amount of human error in using the product. The more user-friendly the product is, the more likely the user will maintain the proper medication practices and thus avoid the need to see the doctor due to drug non-compliance.

Marketing and distribution : Sunapto believes that it is essential for the target market to be exposed to the product via live demonstrations, doctor office visits or a friend in order to remove the possible apprehension of technology. In order to get this desired exposure; they need to get a large number of MedCabinets out in the market quickly, which means that the pricing needs to be reasonable. Once the product has become established, Sunapto would look to find a retail sales partner that would create even greater exposure and distribution of their product.

Management team/Advisory boards : Sunapto’s management team and advisory boards bring a variety of skills and experiences to the table. Their Physician, Pharmacist and Home Nursing Advisory Board consisting of individuals experienced in the areas of healthcare, medical devices and elder care will help guide Sunapto to meet the growing and diverse needs of the home healthcare marketplace. Sunapto’s Business Advisory Board will support, mentor and enhance Sunapto’s management team. Please refer to section 7.2 for the management team listing.

5.4 Positioning Statement

For the person, or caregiver of a person, who is on a medication plan, the MedCabinet helps avoid many of the pitfalls associated with medication non-compliance by providing the right medication at the right time.

5.5 Sales Strategy

Sunapto’s initial strategy is to sell the MedCabinet directly to consumers. Once sales have reached a respectable level, Sunapto will begin discussions with retail sales outlets to stock and sell their product(s).

5.5.1 Sales Forecast

No sales are anticipated throughout Year 1 of operations, as the MedCabinet is developed. The first sales are expected to begin in Year 2. The annual sales forecast for Year 2 is 11,077 MedCabinet units with 7% of the sold units purchasing the companion services. For Year 3, the expected sales forecast is 13,419 units, again with 7% of the sold units purchasing the companion services. It is anticipated that at the end of Year 3, Sunapto will have 1,716 subscribers to the MedCabinet companion services. The estimates presented in this section were derived using a conservative statistical methodology for estimated market penetration for a medical product of this type. For additional details reference section 4.2.4 Market Concept Test.

5.5.2 Sales Programs

Direct sales will be by personal contact, direct mail, public relations and media directed at key industry and customer segments. In addition, electronic marketing will be deployed whenever it fits with the buying or influencing patterns of a key group. A website and electronic commerce site will be utilized to cultivate direct sales to key industry groups and end consumers.

5.6 Strategic Alliances

Sunapto will depend upon strategic alliances in the following areas.

• Contract sales organization to position and sell their product in the national healthcare market.
• Contract design and manufacturer to develop and consistently deliver a quality product. 
• Website developer and host to provide continuous access to Sunapto’s current and potential customers.

Web Plan Summary

The Sunapto MedCabinet website will be the virtual business card and portfolio for the company, as well as their online “home.”

It will highlight the MedCabinet and provide access to the monitor and notification service. The website is part of Sunapto’s overall marketing mix. Its main purpose will be to provide information and service to existing customers. It will have a commerce section to allow new customers to purchase Sunapto’s offered products and services.

The website needs to be simple yet classy, and well-designed at the same time, and is in keeping with the latest trends in user interface design. A site that is too flashy, or tries to use too much of the latest Shockwave or Flash technology can be overdone.

Sunapto plans to contract out the development and hosting of the initial MedCabinet website.

6.1 Website Marketing Strategy

The MedCabinet content/commerce site will focus on providing customer service, access to the MedCabinet Monitor and Notification service, products and product information to the healthcare community, caregivers and customer segments. The site will also provide informational and educational content relating to medication compliance/adherence issues.

Sunapto’s website will have a fast loading, extremely user-friendly user interface (UI). The UI will be key to the Web strategy, as it needs to appeal to the audience and at the same time be simple and clean.

6.2 Development Requirements

Sunapto plans to contract out the development and hosting of the initial MedCabinet website. Sunapto will work closely with a selected website developer to develop a simple, classy, yet Internet focused site that satisfies the needs of Sunapto’s target groups.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Sunapto is owned and operated by its founders. It is a small company with a minimum command hierarchy and a maximum of community spirit and cooperation. Despite the loose style, Sunapto is organized by function, and the business is done with logic and order. Management of the company is based upon the following foundation.

• Build and Maintain a Cohesive Leadership Team.
• Create Organizational Clarity.
• Over-Communicate Organizational Clarity.
• Reinforce Organizational Clarity Through Human Systems.

Several key people are actively being sought. These are summarized in the Management Team Gaps section.

7.1 Organizational Structure

The general organization structure of Sunapto is displayed in the chart below.

7.2 Management Team

John P. Brush , President: 41 years old, founded Sunapto in 2002 to focus on using technology to enhance home healthcare. John spent sixteen years at SCS, Inc. before returning to school to obtain his MBA. John was part of the management team that grew SCS from 4 to 55 employees with sales of $5 million. John opened SCS’s first remote office and grew it to 37% of corporate sales in four years. He earned his MBA from the University of Notre Dame’s Mendoza College of Business, and BS (Computer Science) from Rose-Hulman Institute of Technology. 

Resumes for the management team may be found in the appendix.

7.3 Management Team Gaps

Sunapto has a good team for covering the main points of the business plan.

At present, Sunapto is weakest in the area of marketing capabilities to position their company and product in the medical marketplace. Sunapto also needs to find technical capabilities to manage the engineering portion of product development.

Sunapto plans to build two advisory boards. One will be the Physician, Pharmacist and Home Nursing Advisory Board consisting of individuals experienced in the areas of healthcare, medical devices and elder care. The second will be an advisory board consisting of individuals with expertise in business development and growth along with medical device product development. The advisor boards will be used to support and supplement the management team.

Listed below are the key management positions that will need to be filled. Each position listed also contains a brief job description and background requirement.

Sales and Marketing Director – Develops strategic sales and marketing objectives, establishes sales territories and quotas, manages budgets and evaluates sales performance. Manages and develops marketing programs and materials such as, advertising, event support and promotions. Requires a bachelor’s degree with at least 7-10 years of sales and marketing experience. Must be familiar with both medical and Internet business models and technologies. Experience must include product/brand management where the emphasis was on managing, developing, and implementing product-marketing activities to maximize sales of an assigned product line.

Controller – Responsible for directing the accounting functions. These functions include establishing and maintaining accounting principles, practices and procedures. Prepares financial reports and presents findings and recommendations. Requires a bachelor’s degree and at least 7 years of direct experience in the field.

Engineering Manager – Plans and directs all aspects of engineering activities within the organization. Ensures all engineering projects, initiatives and processes are in conformance with organization’s established policies and objectives. Requires a bachelor’s degree in engineering and 8 to 10 years of experience in various engineering fields.

7.4 Personnel Plan

The Personnel Plan reflects the need to bolster Sunapto’s capabilities to match their positioning. Sunapto’s total employment should increase to 10 during Year 1 and to 16 by Year 3. Detailed monthly projections are included in the appendix.

Financial Plan investor-ready personnel plan .">

Sunapto desires to finance growth through a combination of equity investment and internally generated cash flow. Because of the cost of initial product development and marketing costs of establishing a market presence, the business will be financed primarily by investment in the early stages and is expected to burn cash.

The company intends to raise an amount of seed capital before launch and an secure additional outside investment after prototype development.

8.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The important underlying assumptions are:

• A recovering economy.
• No changes in technology to make products immediately obsolete.
• Access to equity capital and financing sufficient to maintain Sunapto’s financial plan as shown in the tables.

8.2 Break-even Analysis

Sunapto’s break-even analysis assumes approximate running costs per month based o the average of Year 2 and Year 3 expenses, which includes their full payroll, rent, utilities, and an estimation of other running costs.

Margins are harder to assume. Sunapto’s overall average is based on projected total sales in Year 2 and Year 3.

The chart shows what Sunapto needs to sell per month to break-even, according to these assumptions.

8.3 Projected Profit and Loss

Barring any unforeseen circumstances, Sunapto is anticipated to break-even by Year 2 of operations. Profits for the company in subsequent years will accelerate with the increase in anticipated sales volume, yielding good net profit in Year 2 and better in Year 3.

8.4 Projected Cash Flow

It should be noted that the company’s cash flow will be steadily declining for the first year of operations. This is expected due to large capital investments and no sales. Sunapto anticipates having negative net cash flows throughout Year 1 as they incur expenses for prototype development during the first half and as they get ready for production by their contract manufacturer during the second half. Two infusions of capital will get Sunapto through the cash flow drain as they build up for production and sales to begin in Year 2. A monthly breakdown of Year 1 cash flow may be found in the appendix.

8.5 Projected Balance Sheet

The table below presents the Balance Sheet for Sunapto.

8.6 Business Ratios

The table follows with Sunapto’s main business ratios. The Industry figures come from the Standard Industry Classification (SIC) Index Code 3845, Electromedical Equipment.

8.7 Exit Strategy

Sunapto is in business to earn a higher than normal return for its business partners. They intend to seek a fair, yet aggressive profit, which will allow the company to be financially healthy for the long term as well as provide compensation to both owners and investors for their money and risk. Sunapto’s founders intend to be part of the ownership and management of Sunapto. Sunapto recognizes that all of its investors will eventually want to reap the rewards of their investments. The following exit strategies are possible ways that Sunapto may choose to reward its early round investors.

• A sale to a strategic buyer.
• A leveraged recapitalization.
• A new round of financing.

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