The pandemic and the fact that our population is getting older have made it clear that we need more medical goods. This has recently led to a half market expansion. You could start a medical stockpile business by partnering with a manufacturer and offering medical goods at resale prices online, in person, or from your own store. As long as you sell online or directly to medical offices, you can run the business from home and make a lot of money while making sure parents and patients have the life-saving tools they need.
Before you start, though, you should know how to close a business. This step-by-step guide gives you all the information you need to start a successful medical stockpile business.
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
| For people and groups who need it Profit margins are high for medical goods. Flexibility: Work from home and set your own hours. | Partner Needed – It may be hard to find a trusted maker. Market saturation: It will be hard to compete with businesses that have been around for a long time. |
Industry Trends
- Size and growth in the past: After five years of yearly growth of 2.4%, the US medical products wholesale market will be worth $279 billion in 2022. In the last ten years, the industry has grown by 50%.
- In the United States, the wholesale market for medical products is expected to grow by nearly 4% by 2022.
- In the United States in 2021, there were 14,067 companies that sold medical products in bulk.
- Number of people hired: In 2021, 255,219 people were working in the US hospital products wholesaling business.
Cost of Starting Medical Supply Business
Starting prices for a medical equipment business range from $12,000 to $25,000. The most expensive item in your collection is the first one you buy.
Is Medical Supply Business Profitable?
Prices for medical products vary a lot depending on what it is. The average price used in these figures is $100, but some things may cost a lot more than that. Your profit margin should be somewhere around 50%.
If you work from home and sell 20 things per week in your first year or two, you could make $104,000 a year. Using a 50% profit rate, this would bring in $52,000. As you get better at promoting, you might start selling 60 things a week. At this point, you’d rent a business place to store your inventory and hire staff, which would cut your total income by about 30%. With $312,000 in annual sales, you would make a nice profit of $94,000.
Entry Barriers
- The first costs of stock and a website
- There is a lot of competition in the business.
- Finding a partner in manufacturing
Step 2: Create a Strategy
Identify a Gap
Find a chance by researching local and online companies that sell medical supplies to learn about their goods, prices, and best sellers. You want to fill in a gap in the market. For instance, it’s possible that the local market doesn’t have anyone who sells hospital beds, long-term medical tools, or medical gadgets.
This could get your word-of-mouth marketing going again and start getting you people right away.
Solutions
There are a really huge number of things you could sell. Work in a certain type of materials is probably best.
Pricing
Costs will vary from thing to thing. Check market prices to make sure you’re serious. After you take out the price you paid the maker, you should aim for a profit margin of about 50%.
When you know your costs, you can use this Bit by Bit net income number cruncher to figure out your rise and final sticker costs. Keep in mind that the prices you use at send-off should be based on what you think will happen in the future, if the market justifies it.
Target Market
If you decide to sell to clinics, hospitals, and other healthcare centers, you can find them on LinkedIn and Google Maps. If you decide to sell to your customers directly, they are likely older and on Facebook.
Location
Choose a place for your business In the beginning, you might want to start your business from home in order to save money. But as your business grows, you may need to rent a place to store your goods and hire people for a variety of jobs. On Craigslist, Crexi, and Instant Offices, you can look for business space for rent in your area.
If you’re looking for a commercial place, you might want to follow these basic rules:
- Focal area accessible by public vehicle
- Ventilated and big, with a lot of natural light
- Flexible rent that can be raised as your business grows.
- Ready-to-use place that doesn’t need major changes or fixes
Step 3: Write a Business Plan
A plan is important for any business. This will help you guide your new business through the launch process and keep your eye on your main goals. A business plan also helps possible partners and investors understand your business and its goals better:
- Executive Summary: A brief outline of the whole business plan that should be written after the plan is done.
- Business Overview: A summary of the company’s goals, vision, purpose, assets, and control structure.
- What we make and what we do: Explain in detail what you’re selling.
- Do a SWOT analysis and look at market trends like changes in demand and growth opportunities.
- Competitive Analysis: Look at your key rivals’ strengths and flaws and make a list of what makes your services better.
- Sales and Marketing: Look at the unique selling points (USPs) of your business and come up with sales, marketing, and promotion plans.
- Management Team: An overview of the team’s tasks and professional backgrounds, as well as a business structure.
- Operations Plan: Your company’s operational plan includes how it will get supplies, where it will put its office, what its most important assets and tools are, and other practical details.
- Financial Plan: A three-year plan for money, including start-up costs, a break-even analysis, predictions of profits and losses, cash flow, and a balance sheet.
- Appendix: Add any other papers related to money or business.
Step 4: Create a Marketing Plan
Some of your customers will buy from you just because they see you or find you online, but you should still spend money on advertising! For new companies, getting the word out is very important because it will bring in more customers and help people recognize the brand.
Connect your website to your social media accounts once it’s up and running. Social media is a great way to market your business because you can share interesting content and sell your things.
- Facebook is a great place to put paid ads because you can target specific groups, like guys under 50 in the Cleveland area.
- Instagram has similar perks as Facebook, but it is for a different crowd.
- Website: Search engine optimization (SEO) will help your site show up better in related search results. This is an important part of selling more. Make sure there are clear calls to action on your site. Change the size, color, and placement of calls to action like “Book Now” to attract a lot more people.
- Google and Yelp: Getting a mention on Yelp and Google My Business can be very important to getting people to know about your business and buy from you.
- In-Person Sales: Give your medical goods to the nearby medical centers.
- Newsletters and email marketing: Send users and potential buyers regular emails. Make them stand out.
- Create a blog: Start a blog and post to it often. Change up your content and share it on different sites.
- Paid social media ads: Run focused ads on sites where your target audience is.
- Pay-per-click advertisements – Use Google AdWords to do better in look. Study the topic first.
- Testimonials: Have your clients write letters about how your medical goods helped them.