business plan for medical store

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.

Looking to create a online business and get started with e-commerce ? Take Wix’s eCommerce website builder for a spin.

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.

Interested in other business ideas?

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

How to start a T-shirt business

How to start a jewelry business

How to start a subscription box business

How to start a beauty business

How to start a frozen food business

How to start a DJ business

How to start a flower business

How to start a plumbing business

How to start a baking business

How to start a babysitting business

How to start a virtual assistant business

How to start an eCommerce business

How to start a dropshipping business

How to start a farming business

How to start a food prep business

How to start a rental property business

Want to create another type of business plan?

How to create a real estate business plan

How to create a flower business plan

How to create a car wash business plan

How to create a contractor business plan

How to create a DJ business plan

How to create a dog walking business plan

How to create a clothing line business plan

How to create a construction business plan

How to create a painting business plan

How to create a plumbing business plan

How to create a rental property business plan

How to create a bar business plan

How to create a photographer business plan

How to create a cleaning business plan

How to create a restaurant business plan

How to create a coffee shop business plan

Related Posts

How to create a gym business plan

How to create flower business plan

Was this article helpful?

Home » Healthcare » Medical Supply

A Sample Medical Supply Business Plan Template

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 and related services to medical and dental practitioners, clinics, hospitals, etc.

Statistics made available show 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. The United States is home to nearly 11,000 medical supply companies.

Steps on How to Write a Medical Supply Business Plan

Executive summary.

Shannon McKenzie© Medical Supply Company, Inc. is an American-based and licensed medical supply business that will be located in a well-furnished and centrally located warehouse facility in the heart of Fort Wayne, Indiana.

At Shannon McKenzie© Medical Supply Company, Inc., we 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 serve a wide range of clientele in and around Fort Wayne, Indiana.

Shannon McKenzie is the founder and CEO of Shannon McKenzie© Medical Supply Company, Inc.

Company Profile

A. our products and services.

Shannon McKenzie© Medical Supply Company, Inc. will be involved in the sale and supply of;

• 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
• Dental instruments and supplies
• Hospital beds and other specialized hospital furniture
• Personal safety equipment.

b. Nature of the Business

Our medical supply company will operate the business-to-business model.

c. The Industry

Shannon McKenzie© Medical Supply Company, Inc. will operate under the medical supply industry.

d. Mission Statement

Our mission is to partner with leading medical equipment, devices, and related supplies manufacturing companies to become their preferred business partner when it comes to distributing their products in and around Fort Wayne, Indiana.

e. Vision Statement

Our vision is to become the leading medical supply company in the whole of Fort Wayne, Indiana.

f. Our Tagline (Slogan)

Shannon McKenzie© Medical Supply Company, Inc. – The preferred Medical Supply Company!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Shannon McKenzie© Medical Supply Company, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

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

i. Ownership/Shareholder Structure and Board Members

• Shannon McKenzie (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Garry Button (Board Member) 18 Percent Shares
• Christian Norman (Board Member) 10 Percent Shares
• Carty Bright (Board Member) 10 Percent Shares
• Lilian Thomas (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• 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.

b. Weakness

• 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

c. 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

i. How Big is the Industry?

Trust me, the market for medical supplies is massive in the United States of America. This can be supported by the fact that the medical supply market in the United States is currently worth $85 billion according to industry analysts.

ii. Is the Industry Growing or Declining?

The medical supply line of business is growing because medical and dental practitioners, clinics, and hospitals et al. cannot operate their business without medical equipment and devices. Come to think of it, with the recent outbreak of coronavirus and the stress meted on the health system globally, the importation of medical equipment has experienced a boom and it will continue in the upper trajectory for a long time to come.

iii. What are the Future Trends in the Industry

The future trends when it comes to the medical supply business will revolve around technology. Software that is meant to predict what customers want from a medical supply company and also to create online markets where people can order medical equipment and devices from the comfort of their offices.

iv. Are There Existing Niches in the Industry? 

No, there are no existing niche ideas when it comes to the medical supply business.

v. Can You Sell a Franchise of your Business in the Future?

Shannon McKenzie© Medical Supply Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving markets in the United States of America.

• 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.

i. Who are the Major Competitors?

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

ii. Is There a Franchise for Medical Supply Business?

Yes, there are franchise opportunities for the medical supply business, and here are 20 of them;

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

iii. Are There Policies, Regulations, or Zoning Laws Affecting Medical Supply Business?

Yes, there are county or state regulations or zoning laws for medical supply businesses. Players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.

Please 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.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market are medical businesses who have the finance to purchase medical supplies from us.

ii. Level of Educational

We don’t have any restriction on the level of education of those we will welcome to our medical supply company or who will purchase medical supplies from us.

iii. Income Level

There is no cap on the income level of those we are looking to sell medical supplies.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that will purchase medical supplies from us.

v. Language

There is no restriction when it comes to the language spoken by the people that will purchase medical supplies from us.

vi. Geographical Location

Anybody from any geographical location is free to purchase medical supplies from us.

vii. Lifestyle

Shannon McKenzie© Medical Supply Company, Inc. will not restrict any customer from purchasing medical supplies from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Brand All Our Delivery Vans and Trucks.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the health care industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Shannon McKenzie© Medical Supply Company, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the health care industry , and freelancers (medical reps) to help refer customers to us.

Shannon McKenzie© Medical Supply Company, Inc. will also leverage the 4 Ps of marketing which is a place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need to stock up our warehouse with different types of medical supplies per time means that Shannon McKenzie© Medical Supply Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

Shannon McKenzie© Medical Supply Company, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Shannon McKenzie© Medical Supply Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• 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

d. Return Policy, Incentives, and Guarantees

At Shannon McKenzie© Medical Supply Company, Inc., our customers are our top priority hence if you receive any medical equipment or device that is different from your receipt, we will sincerely apologize. Please call us as soon as you notice that there was an error in your order, and you may come to pick up the correct item.

For credit card payments, you will be refunded the sales price amount associated with the error and recharged for the new items’ price. For cash payments, you will be asked to pay the difference of the balance if the new product has a greater value than the product received in error.

In the same way, you will receive the difference of the balance back as credit for the new item if less than the products received in error. In some cases, we may offer you store credit. Your order will be a priority if you come to pick it up. In all cases, please return the medical supplies order in the original container(s) to our host.

e. Customer Support Strategy

Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to all our clients and investors, it will help us to first understand their needs, experiences, and pain points.

Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainership deals that will enable the firm to boost our sales and support revenue growth.

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

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

b. Production Process (If Any)

The nature of the medical supply business doesn’t give room for a production process.

c. Service Procedure (If Any)

The service procedure for a medical supply company starts with a customer (medical and dental practitioners, clinics and hospitals et al) requesting or ordering medical devices and equipment.

Once the request is gotten, it will be processed and the order delivered to a location as requested.

d. The Supply Chain

Shannon McKenzie© Medical Supply Company, Inc. will rely on key players in the medical device and equipment manufacturing industry to partner with for steady supplies at an affordable rate. So also, we have been able to establish business relationships with medical and dental practitioners, clinics and hospitals et al to be their major suppliers of medical devices and equipment.

e. Sources of Income

Shannon McKenzie© Medical Supply Company, Inc. will make money from selling;

• Nonelectronic medical, surgical, dental, and veterinary instruments and apparatus

Financial Plan

A. amount needed to start your medical supply company.

Shannon McKenzie© Medical Supply Company, Inc. would need an estimate of $2.5 million successfully set up our medical supply company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• 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 – $1.5 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: $7,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Shannon McKenzie© Medical Supply Company, Inc. will not build a new facility for our medical supply company; we intend to start with a long-term lease for a standard warehouse facility and after 5 years, we will start the process of acquiring our warehouse facility in a centralized location in the city.

d. What are the Ongoing Expenses for Running a Medical Supply Company?

• Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees
• Trucks and vans maintenance
• Marketing costs

e. What is the Average Salary of your Staff?

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

f. How Do You Get Funding to Start a Medical Supply Company.

• 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 friends.

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; we will supply based on the commission stipulated by the equipment manufacturing company.

b. Sales Forecast?

• First Fiscal Year (FY1): $1.3 million
• Second Fiscal Year (FY2): $2.4 million
• Third Fiscal Year (FY3): $3.5 million

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): $450,000
• Second Fiscal Year (FY2) (Profit After Tax): $950,000
• Third Fiscal Year (FY3) (Profit After Tax): $1.75 million

d. Profit Margin of a Medical Supply Company Product/Service

The ideal profit margin we hope to make at Shannon McKenzie© Medical Supply Company, Inc. will be between 5 percent and 15 percent depending on the product and the brand (medical device and equipment manufacturing company).

Growth Plan

A. how do you intend to grow and expand .

Shannon McKenzie© Medical Supply Company, Inc. will grow our medical supply company by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Shannon McKenzie© Medical Supply Company, Inc. plans to expand first to Miami, Florida, Houston, Texas, New York City, New York, Oklahoma City, Oklahoma, Chagrin Falls, Ohio, Kaysville, Utah, Cedar Rapids, Iowa, Las Vegas, Nevada, Los Angeles, California and Dallas, Texas.

The reason we intend to expand to these locations is that available statistics show that the cities listed above have the most thriving market for medical supply companies.

The founder of Shannon McKenzie© Medical Supply Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another without hitches.

More on Medical Supply

How to write a business plan for a medical and orthopaedic goods store?

Writing a business plan for a medical and orthopaedic goods store can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a medical and orthopaedic goods store business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a medical and orthopaedic goods store?

What information is needed to create a business plan for a medical and orthopaedic goods store.

• What goes in the financial forecast for a medical and orthopaedic goods store?
• What goes in the written part of a medical and orthopaedic goods store business plan?
• What tool can I use to write my medical and orthopaedic goods store business plan?

Having a clear understanding of why you want to write a business plan for your medical and orthopaedic goods store will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a medical and orthopaedic goods store business plan.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your medical and orthopaedic goods store. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your medical and orthopaedic goods store to be in the next three to five years.

Once you have a clear destination for your medical and orthopaedic goods store, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your medical and orthopaedic goods store's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your medical and orthopaedic goods store business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your medical and orthopaedic goods store's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

Crafting a comprehensive business plan for your medical and orthopaedic goods store, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your medical and orthopaedic goods store has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your medical and orthopaedic goods store, let's delve into the necessary information needed to craft an effective plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

Writing a medical and orthopaedic goods store business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a medical and orthopaedic goods store

As you consider writing your business plan for a medical and orthopaedic goods store, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your medical and orthopaedic goods store.

You might find that customers increasingly prefer to purchase medical and orthopaedic goods online, as more shoppers are turning to digital outlets for their medical and orthopaedic needs. Additionally, you could discover that customers may be more likely to purchase products that are customized to suit their particular needs.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your medical and orthopaedic goods store.

Developing the marketing plan for a medical and orthopaedic goods store

Before delving into your medical and orthopaedic goods store business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a medical and orthopaedic goods store

As you embark on starting or expanding your medical and orthopaedic goods store, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

Staffing costs may include wages for sales assistants, a manager, and an accountant. Equipment costs may include computers, printers, and a cash register. Additionally, the store may need to pay for insurance and other overhead expenses, such as rent and utilities.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

What goes into your medical and orthopaedic goods store's financial forecast?

The financial forecast of your medical and orthopaedic goods store's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a medical and orthopaedic goods store are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a medical and orthopaedic goods store shows how much revenue and profit your business is expected to make in the future.

A healthy medical and orthopaedic goods store's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established medical and orthopaedic goods store.

The projected balance sheet of your medical and orthopaedic goods store

The balance sheet for a medical and orthopaedic goods store is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your medical and orthopaedic goods store's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your medical and orthopaedic goods store's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a medical and orthopaedic goods store is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your medical and orthopaedic goods store business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the medical and orthopaedic goods store is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a medical and orthopaedic goods store.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the medical and orthopaedic goods store, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your medical and orthopaedic goods store business plan, let's have a look at the written part of the plan.

The written part of a medical and orthopaedic goods store business plan

The written part of a medical and orthopaedic goods store business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a medical and orthopaedic goods store business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your medical and orthopaedic goods store's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your medical and orthopaedic goods store's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

The second section in your medical and orthopaedic goods store's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your medical and orthopaedic goods store, you could emphasize its accessibility to a large population. The store could be located in a densely populated area, or potentially even in a shopping center frequented by a large number of customers. You could also highlight the potential for growth in the local economy, as the store could benefit from a larger customer base due to local population and economic growth. Additionally, the store might be situated in a desirable neighborhood with high visibility and accessibility, which could increase its appeal to prospective customers. Lastly, you could emphasize the store's proximity to other medical and orthopaedic goods stores, as this could help to draw new customers to your business.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your medical and orthopaedic goods store business plan should include a detailed description of what your company sells to its customers. 

For example, your medical and orthopaedic goods store could offer customers a range of products such as orthotic braces, compression garments, and assistive devices. It could also provide services such as fitting and sizing services, customized product recommendations, and aftercare advice. These products and services would help customers to find the right medical or orthopaedic product that fits their individual needs, and provide them with the necessary support to ensure they are using the products correctly and safely.

The reader will want to understand what makes your medical and orthopaedic goods store unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When you present your market analysis in your medical and orthopaedic goods store business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your medical and orthopaedic goods store, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your medical and orthopaedic goods store aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include elderly individuals who need specialised orthopaedic and medical supplies. These customers would likely require assistance in researching and navigating the proper equipment to meet their needs. Additionally, they would need advice on the best prices and products available.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your medical and orthopaedic goods store.

5. The strategy section

When crafting the strategy section of your business plan for your medical and orthopaedic goods store, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your medical and orthopaedic goods store could face the risk of theft of valuable goods, as well as a risk of damage to inventory due to environmental factors such as fire, flooding, or extreme temperatures. The store may be vulnerable to a cyber attack, which could result in the loss of confidential customer information. Additionally, the store might be exposed to legal risks if the medical and orthopaedic goods it sells do not meet safety standards or are not properly labeled.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your medical and orthopaedic goods store.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your medical and orthopaedic goods store's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You may have key assets and IP such as the products you sell and the brand you have created. These could include medical equipment like wheelchairs, crutches, and walkers, as well as orthopaedic goods like braces, casts, and orthotics. You might also have trademarks, patents, or copyrights that protect your store's name, logo, and other intellectual property.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a medical and orthopaedic goods store business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my medical and orthopaedic goods store's business plan?

In this section, we will be reviewing the two main options for writing a medical and orthopaedic goods store business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your medical and orthopaedic goods store's business plan

Using online business planning software is the most efficient and modern way to create a medical and orthopaedic goods store business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your medical and orthopaedic goods store's business plan

Outsourcing your medical and orthopaedic goods store business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your medical and orthopaedic goods store business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your medical and orthopaedic goods store's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a medical and orthopaedic goods store business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my medical and orthopaedic goods store business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a medical and orthopaedic goods store business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a medical and orthopaedic goods store. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start a medical and orthopaedic goods store? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Create a convincing business plan

Assess the profitability of your business idea and create a persuasive business plan to pitch to investors

500,000+ entrepreneurs have already tried our solution - why not join them?

Not ready to try our on-line tool ? Learn more about our solution here

Need some inspiration for your business plan?

Subscribe to The Business Plan Shop and gain access to our business plan template library.

Need a professional business plan? Discover our solution

Write your business plan with ease!

It's easy to create a professional business plan with The Business Plan Shop

Want to find out more before you try? Learn more about our solution here

• Start A Blog
• Start Business
• Grow Business
• Earn Online

How to Start a Profitable Medical Store Business

Do you want to open a medical shop? If so, you are in the right place. Here we will find a detailed medical store business plan guide for beginners with costs, profit margin, licenses, setup, and much more.

The medical store business opportunity is perfect for those who are a chemist or has years of experience as a pharmacist. In this business, there are so many types of commercial options available apart from only medicine selling.

Here are the 10 Steps to Start a Medical Store Business

1. understand the local market.

Like any other business, it is essential to collect as much information as possible regarding the local demand and level of competition around your location of the shop.

Conduct market research and find out the gaps that exist in the current market scenario. Accordingly, plan your medical shop business to utilize those gaps to your advantage.

2. Write a Medical Store Business Plan

Create a detailed plan for your business. Decide what range of medicines you will be keeping. What other services you will be offering to your clients? Calculate fixed costs and working capital. Decide the entire startup budget and expected revenue earnings.

Some of the basic aspects that your medical shop business plan must address are the following:

• Startup & recurring costs
• Your target customers
• Pricing Strategy
• How do you plan to sell medical shop products?

3. Name Your Business

Determine a memorable and easy-to-spell name for your medical store business. Do remember, that an attractive and catchy name is extremely critical to creating a long-term medical store brand in your locality.

Read:   How to Name Your Business

4. Register Your Business

Decide on the business structure under which you are going to run your medical shop. Every country and state offers different business structure formations based on your resources and scale of operation.

In the United States, some of the popular business structures are sole proprietorship, partnership, and LLC. It is advised to talk to a local attorney and ask for suggestions and advice. Select the business structure that perfectly fits your business venture.

If you are from India, the popular options are proprietorship, LLP, and Private limited company.

5. Procure Licenses and Permits

In most countries, you need several licenses and permits to open and run a medical shop. Talk to local concerned authorities or take advice from professionals and obtain the required licenses. Register for Goods and Services Tax (GST) and any other applicable taxes to comply with tax regulations.

6. Learn More on Medical Store Profit Margin

The profit margin for a pharmacy shop can be divided into two categories. One is branded medicines and the other is generic medicines. It is generally around 15-25% for branded medicines. For generic medicines, it can be as high as 50%.

The profit also depends on the type of medicines and the price offerings of drug companies.

7. Medical Shop Setup

Location selection is an important factor in the medical store business. It is preferred to choose a location with a high density of residential population, not a commercial area. Choose a strategic location for your medical store, preferably near hospitals, clinics, or in a densely populated area with easy access for customers.

Create a detailed floor plan layout of the storeroom, cash counter, customer waiting area, and doctor’s chamber, and get your shop’s interior decorations done accordingly. Accounting software and POS is a must for running day to day activities of a medical shop.

Design an organized and well-lit interior layout with shelves, storage cabinets, and a counter for dispensing medications. Ensure the store complies with safety and hygiene standards.

8. Procure Medical Items from Suppliers

Contact the local wholesaler or medicine manufacturing company to have the products. If you go for direct company supply you will get a better margin but they will ask you for a higher-order quantity. To start with, it is advisable to go with the medicine stockiest.

9. Hire Manpower

Hire skilled personnel having experience in the medicine retail segment. If you are not a chemist and starting your medical store business, then always remember, that it is mandatory to keep a pharmacist on a full-time basis. Keep women employees. Your lady clients would prefer to interact with a lady about their requirements.

Hire a registered pharmacist who can provide expert advice to customers and handle prescription medications. Employ support staff for tasks like billing, customer service, and maintaining the store’s cleanliness.

10. Promote Your Medical Store business

You can start the promotion by giving some local newspaper advertisements. You can think of some value-added services like an online order system and delivery at the client’s doorsteps.

Do not forget a create a website as it is a must nowadays for promoting your business.

Aged persons, who have regular requirements of medicine, will prefer this service. Offer discounts on the maximum retail price. Also, you can offer some promotional gifts for a certain amount of purchase.

Frequently Asked Questions

Is medical store business profitable.

Every year it is seen that the medical industry is growing all across the globe. It is only for increasing demand for medicine and related health care products and supplements. In the medical store business, the retail margin is very inspiring.

One can start a medical store business with extra value-added services like a doctor’s chamber, and some testing facilities like blood pressure, oxygen supply, etc. As a startup, you can buy a franchise of established brands or you can start your own from scratch.

Can I sell both prescription and over-the-counter (OTC) medications in my medical store?

Yes, you can sell both prescription and OTC medications, but you must have a qualified pharmacist to dispense prescription drugs.

How do I ensure the authenticity of pharmaceutical suppliers?

Work with registered and reputable pharmaceutical distributors who can provide you with genuine and certified medications.

What are the ethical guidelines for running a medical store?

Ensure patient confidentiality, never dispense medications without a valid prescription and follow all applicable laws and regulations.

How can I compete with larger pharmacy chains?

Focus on personalized customer service, product availability, and niche offerings to differentiate your store.

Can I offer home delivery services for medications?

Yes, offering home delivery services can be a valuable addition to your business, especially for customers with limited mobility.

What are the key trends in the pharmacy business?

Trends include integrating technology for prescription management, expanding into online sales, and offering health and wellness services.

About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.

Share This Article:

How To Write a Business Plan for Medical Supply Store in 9 Steps: Checklist

By henry sheykin, resources on medical supply store.

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

Welcome to our blog! Are you considering starting a medical supply store but are unsure where to begin? Look no further! In this article, we will guide you through the process of writing a comprehensive business plan for a medical supply store using our 9-step checklist. But before we dive into the steps, let's take a moment to understand the incredible growth of the medical supply industry.

The medical supply industry in the US is experiencing rapid expansion, with a projected growth rate of 7.3% annually over the next five years. This surge is driven by the increasing demand for both essential medical equipment and advanced technological devices. As the industry continues to evolve, it presents numerous lucrative opportunities for aspiring entrepreneurs like yourself.

Now that we have an understanding of the industry's potential, let's get started on the first step: researching the market and analyzing your competition.

First and foremost, it is crucial to thoroughly research the market landscape to assess the demand for medical supplies in your area. Understanding the needs of your potential customers will enable you to tailor your product offerings and marketing strategies effectively. Equally important is analyzing your competition to identify gaps in the market and differentiate your business from existing players.

Next, you'll need to identify your target market and potential customers. This involves defining the demographic profile of your ideal customer, including their age, gender, income level, and specific medical needs. By understanding your target market, you can curate a selection of products and services that precisely match their requirements.

After identifying your target market, you'll want to determine the location and size of your store. While an online retail model eliminates the need for a physical store, you may still need a storage space for inventory or a central hub for order fulfillment. Considering factors such as proximity to suppliers, accessibility for customers, and cost-effectiveness will be vital in making this decision.

As with any business venture, start-up costs and financial requirements are crucial considerations. Developing a detailed budget that covers expenses such as inventory acquisition, website development, marketing, and staffing will help you plan and secure the necessary funding. Additionally, exploring financing options, such as business loans or grants, should also be part of your financial planning process.

A comprehensive pricing strategy is essential to remain competitive in the medical supply industry. Factors such as product cost, profit margins, and customer affordability need to be carefully balanced. Conducting market research and analyzing competitor pricing will provide valuable insights into establishing a pricing structure that maximizes your profitability while attracting customers.

Defining your product and service offerings is a significant step in establishing your medical supply store's unique identity. Decide on the range of medical supplies you wish to offer, whether it be general supplies or specialized equipment. Additionally, consider supplementary services that could enhance your customers' experience, such as product customization, fast shipping, or exceptional customer support.

No business can thrive without a well-thought-out marketing and advertising plan. Utilize digital marketing channels such as search engine optimization (SEO), social media, and email marketing to raise awareness about your medical supply store. Craft persuasive messaging that highlights the benefits of your products and entices customers to choose your store over competitors.

The success of your medical supply store heavily relies on establishing strong relationships with reliable suppliers and forging valuable partnerships. Identifying reputable suppliers who offer competitive prices and quality products will ensure your store can consistently meet customer demand and maintain high customer satisfaction.

Lastly, it is crucial to understand the legal and regulatory requirements for operating a medical supply store. This includes obtaining the necessary licenses and permits, adhering to health and safety standards, and complying with any industry-specific regulations. Staying informed and in compliance will help you build a trustworthy and reputable business.

With our 9-step checklist, you're well on your way to creating a thorough business plan for your medical supply store. Stay tuned for our upcoming articles in which we provide in-depth insights and expert tips for each step, helping you transform your business idea into a successful reality.

Research The Market and Competition

Researching the market and competition is an essential step in creating a successful business plan for a medical supply store. This research will help you gain a comprehensive understanding of the industry and identify opportunities for growth and differentiation.

When conducting market research, it is crucial to gather data and insights on the current state of the medical supply market. This includes factors such as the size of the market, growth trends, and key players in the industry. Look for information on the demand for medical supplies, emerging technologies, and any specific challenges or regulations that may impact the market.

Additionally, it is important to analyze the competitive landscape to identify existing medical supply stores and their offerings. Assess their strengths, weaknesses, pricing strategies, and target markets. By understanding your competition, you can identify potential gaps in the market and develop a unique value proposition that sets your medical supply store apart.

• Utilize online resources such as industry reports, market research studies, and trade publications to gather insights on the medical supply market.
• Conduct surveys or interviews with potential customers to understand their preferences, needs, and pain points when it comes to purchasing medical supplies.
• Visit trade shows or conferences related to the medical industry to stay updated on the latest trends and innovations.
• Consider seeking guidance from industry experts or professionals who can provide valuable insights and advice.

By thoroughly researching the market and competition, you can make informed decisions about your medical supply store's positioning, pricing, and marketing strategies. This research will serve as a solid foundation for the rest of your business plan and increase your chances of success in a highly competitive market.

Identify Your Target Market And Potential Customers

In order to run a successful medical supply store, it is crucial to have a clear understanding of your target market and potential customers. By identifying and targeting the right audience, you can tailor your product offerings, marketing strategies, and customer service to meet their specific needs and preferences.

Here are some key steps to help you identify your target market and potential customers:

Conduct Market Research:

Segment your market:, understand customer needs:, analyze competitors:, identify key influencers:.

By taking the time to identify your target market and potential customers, you can ensure that your medical supply store is focused on meeting their specific needs and preferences. This will help you attract and retain loyal customers, ultimately leading to the success and profitability of your business.

Determine The Location And Size Of Your Store

Choosing the right location for your medical supply store is crucial to the success of your business. It is essential to consider factors such as accessibility, visibility, and proximity to your target market. Research the demographics of the area to ensure that there is a demand for your products.

Consider the size of your store carefully, as it should be able to accommodate your inventory as well as provide a comfortable shopping experience for your customers. Take into account the number of products you plan to sell and ensure that there is adequate space for storage and display.

Tips for determining the location and size of your store:

• Conduct a thorough analysis of potential locations, considering foot traffic, nearby competition, and the presence of healthcare facilities.
• Consider leasing options and negotiate favorable terms to minimize overhead costs.
• Take into account future expansion plans and ensure the space can accommodate growth.
• Create a floor plan that maximizes efficiency and allows for easy navigation for customers.
• Consult with an architect or interior designer to optimize the layout and design of your store.

By carefully considering the location and size of your medical supply store, you can position yourself for success in the competitive market. Remember to stay focused on the needs of your target market and create a shopping experience that ensures customer satisfaction.

Assess The Startup Costs And Financial Requirements

Before launching your medical supply store, it is crucial to assess the startup costs and financial requirements involved. This step will help you determine the amount of capital needed to establish your business and ensure its smooth operation.

1. Identify the essential startup costs:

• Rent and utilities: Determine the cost of leasing a warehouse or office space, utilities such as electricity and water, and any related deposits or fees.
• Inventory: Calculate the initial investment required to stock your medical supplies, including various product categories and quantities.
• Equipment and technology: Consider the cost of purchasing or leasing equipment, such as shelving, display cases, office furniture, computers, and software.
• Website development and maintenance: If you plan to operate an online store, allocate funds for website creation, hosting, maintenance, and security features.
• Marketing and advertising: Estimate the expenses for promoting your medical supply store through digital marketing, social media campaigns, print media, and other advertising channels.
• Professional services: Factor in the fees for legal, accounting, and consulting services required during the setup and ongoing operation phases.
• Staffing: Determine the cost of hiring and training employees, including salaries, benefits, and payroll taxes.
• Overestimate your startup costs to ensure you have a buffer for unforeseen expenses.
• Consider leasing equipment instead of purchasing it outright to minimize initial investment.
• Explore potential grants or loans specifically tailored for small businesses in the medical supply industry.

2. Evaluate the financial requirements:

After identifying the startup costs, it is vital to determine the ongoing financial requirements of your medical supply store. This evaluation will help you establish how much capital is necessary to sustain operations and achieve profitability.

• Monthly expenses: Calculate the anticipated recurring expenses, including rent or mortgage payments, utility bills, employee salaries, insurance premiums, and inventory replenishment.
• Sales projections: Develop a realistic sales forecast to estimate the revenue your store is likely to generate based on market research, industry trends, and projected customer demand.
• Breakeven analysis: Analyze the point at which your monthly revenue equals your operating expenses to determine how long it will take to cover your initial investment and reach profitability.
• Capital reserves: Set aside a contingency fund to handle unforeseen expenses, emergencies, or fluctuations in market conditions without jeopardizing the stability of your business.
• Seek guidance from a financial advisor or accountant to ensure accurate estimation of ongoing financial requirements.
• Regularly review and adjust your financial projections as your medical supply store grows and market conditions change.
• Explore potential funding options, such as business loans, venture capital, or angel investors, to secure the necessary capital for your startup.

Develop A Pricing Strategy

When developing a pricing strategy for your medical supply store, it is important to consider several factors that will help maximize your profitability while remaining competitive in the market. Here are some key considerations to keep in mind:

• Research the market: Conduct thorough research to understand the pricing trends in the medical supply industry. Look at your competitors' pricing strategies to gain insights into what price points are successful.
• Set competitive prices: Consider offering competitive pricing to attract customers. Ensure that your prices are in line with or slightly lower than the market average. However, be cautious not to undervalue your products and sacrifice your profit margins.
• Consider value-based pricing: Take into account the unique value proposition that your medical supply store offers. If you provide exceptional customer service, fast delivery, or exclusive products, you may be able to justify a higher price point.
• Bundling and discounting options: Explore bundling products or offering discounts for bulk purchases to incentivize customers to buy more. This strategy not only encourages customers to spend more but also helps you move inventory quickly.
• Monitor costs: Keep a close eye on your production and operational costs to ensure that your pricing strategy allows for a healthy profit margin. Regularly review your cost structure, including supplier prices, shipping costs, and overhead expenses, to adjust your prices accordingly.

Tips for developing a successful pricing strategy:

• Regularly benchmark your prices against your competitors to stay competitive in the market.
• Consider offering tiered pricing options to cater to different customer segments.
• Offer incentives for customer loyalty, such as discounts for repeat purchases or referral programs.
• Keep an eye on market trends and adjust your prices accordingly to remain relevant.

By carefully developing a pricing strategy that aligns with your business goals and customer expectations, you can optimize your profitability and attract a loyal customer base to your medical supply store.

Define Your Product And Service Offerings

Defining your product and service offerings is a crucial step in writing a business plan for a medical supply store. This will help you clearly outline what you will be selling and the services you will provide to your customers.

First and foremost, you need to determine the type of medical supplies you will offer. Conduct thorough research to identify the most in-demand and profitable products in the market. Consider offering a wide range of supplies such as personal protective equipment (PPE), durable medical equipment (DME), wound care products, and mobility aids. By diversifying your product offerings, you can cater to a larger customer base and increase your chances of success.

In addition to products, consider whether you will provide any value-added services. For instance, you may offer product customization, assistance with insurance claims, or free educational resources related to the medical supplies you sell. These additional services can set your medical supply store apart from competitors and attract more customers.

• Research the most in-demand and profitable medical supplies in the market
• Diversify your product offerings to cater to a larger customer base
• Consider providing value-added services to differentiate your store from competitors

Tips for Defining Your Product and Service Offerings:

• Stay updated with the latest trends and advancements in the medical field to identify potential new products and services to offer.
• Conduct surveys or polls to gather feedback from potential customers about the types of products and services they would like to see in a medical supply store.
• Regularly evaluate the performance of your product offerings and make necessary adjustments based on customer demand and market trends.
• Consider partnering with manufacturers or suppliers who offer high-quality products and reliable customer service to ensure customer satisfaction.

Create A Marketing And Advertising Plan

Creating a comprehensive marketing and advertising plan is essential for the success of your medical supply store. It will help you promote your products and services, reach your target audience, and differentiate yourself from competitors. Here are some important steps to consider:

• Identify your target audience: Conduct market research to understand the demographics, preferences, and needs of your potential customers. This will help you tailor your marketing efforts and messages accordingly.
• Set clear goals: Define specific, measurable, achievable, realistic, and time-bound (SMART) marketing objectives. Whether it's increasing brand awareness, driving website traffic, or boosting sales, establishing clear goals will guide your marketing strategies.
• Develop a marketing mix: Determine which marketing channels and tactics are most appropriate to reach your target audience. Consider a mix of online and offline strategies such as social media marketing, search engine optimization (SEO), email marketing, content marketing, print advertisements, and attending relevant industry events.
• Create compelling content: Develop high-quality content that educates, informs, and engages your target audience. This could include blog posts, videos, infographics, and customer testimonials. Highlight the benefits of your products and services and how they can improve the healthcare experience.
• Build an online presence: Establish a professional website that showcases your products, services, and company information. Optimize your website for search engines to increase visibility. Additionally, leverage social media platforms to engage with your audience, share valuable content, and promote your store.
• Utilize targeted advertising: Consider using online advertising platforms such as Google Ads or social media advertising to reach a larger audience. Segment your ads based on demographic factors, geography, and interests to ensure your marketing messages are relevant to potential customers.
• Measure and analyze results: Regularly track and analyze the effectiveness of your marketing campaigns. Use tools like Google Analytics to monitor website traffic, conversion rates, and customer behavior. Make data-driven adjustments to optimize your marketing efforts for better results.
• Consider offering discounts or promotional offers to attract new customers and encourage repeat business.
• Collaborate with healthcare professionals or organizations to gain credibility and reach a wider audience.
• Request customer reviews and testimonials to build trust and social proof.
• Stay updated with industry trends and adapt your marketing strategies accordingly.

Identify Suppliers And Establish Partnerships

When starting a medical supply store, it is crucial to identify reliable suppliers and establish strong partnerships. The success of your business largely depends on the quality and availability of your products. Here are some steps to help you find suppliers and build partnerships:

• Research: Begin by researching suppliers in the medical supply industry. Look for well-established companies with a good reputation for providing high-quality products. Consider factors such as product range, pricing, delivery options, and customer reviews.
• Attend Trade Shows and Conferences: Trade shows and conferences are excellent opportunities to network with potential suppliers. These events often gather industry professionals and suppliers who can showcase their products and services. Take advantage of these occasions to meet suppliers in person, discuss your requirements, and negotiate deals.
• Contact Manufacturers and Distributors: Reach out to manufacturers and distributors directly to inquire about becoming a supplier. Many medical supply manufacturers have dedicated sales teams that handle these inquiries. Establish a line of communication, provide information about your business, and inquire about their product range, pricing, and delivery options.
• Join Industry Associations: Participate in industry associations and groups that cater to medical supply professionals. These associations often provide resources, networking opportunities, and access to a network of suppliers. By joining these groups, you can connect with potential suppliers and gain valuable insights into the industry.
• Establish Partnerships: Once you have identified reliable suppliers, it is important to establish strong partnerships. This involves negotiating favorable terms, such as competitive pricing, payment options, and reliable delivery schedules. Building a good relationship with your suppliers can lead to discounts, preferential treatment, and even exclusive access to certain products.
• Consider working with multiple suppliers to ensure a steady supply of products and to have backup options in case one supplier faces issues.
• Regularly communicate with your suppliers to stay updated on new products, promotions, and any changes in supply or pricing.
• Consider signing contracts or agreements with your suppliers to outline expectations, responsibilities, and terms of partnership.
• Monitor the performance of your suppliers, and address any concerns or issues promptly to maintain the quality and reliability of your products.

By carefully selecting and partnering with reliable suppliers, you can ensure that your medical supply store offers top-quality products and meets the needs of your customers. Strong partnerships also contribute to the overall success and growth of your business in the long run.

Determine The Legal And Regulatory Requirements For Operating A Medical Supply Store.

Operating a medical supply store comes with various legal and regulatory requirements that you must comply with to ensure smooth and legal operations. Here are some important considerations:

• Licensing and Permits: Research and obtain the necessary licenses and permits required to operate a medical supply store in your jurisdiction. This may include a business license, tax registration, and specific permits related to selling medical equipment and supplies.
• Health and Safety Regulations: Familiarize yourself with the health and safety regulations specific to selling medical supplies. Ensure that your store meets all the necessary requirements, such as proper storage, handling, and disposal of medical products.
• Product Liability: Understand the product liability laws in your area and take necessary steps to ensure the safety and quality of the medical supplies you sell. This may involve conducting thorough product testing, maintaining accurate records, and having product liability insurance.
• Privacy and Data Security: If you handle personal or medical information of your customers, ensure compliance with privacy laws and regulations. Implement robust data security measures to protect sensitive information.
• Advertising and Marketing: Familiarize yourself with the advertising and marketing regulations specific to the healthcare industry. Advertisements for medical supplies must be accurate, truthful, and in compliance with guidelines set by governing bodies.
• Employee Regulations: Understand the employment laws and regulations related to hiring, training, and managing employees. Comply with labor laws, including minimum wage, working hours, and benefits.
• Consult with a lawyer or legal advisor specializing in healthcare or business law to navigate through the legal requirements specific to operating a medical supply store.
• Stay updated with any changes or updates in regulations to ensure ongoing compliance.
• Maintain comprehensive documentation of your compliance efforts to respond to any regulatory audits or inquiries effectively.

In conclusion, starting a medical supply store, whether it be a physical store or an online retailer, requires careful planning and consideration. By following these 9 essential steps, you can create a comprehensive business plan that covers all aspects of your venture. Researching the market, identifying your target audience, determining the store location and size, assessing financial requirements, developing a pricing strategy, defining product offerings, creating a marketing plan, establishing partnerships, and understanding legal requirements will set you on the path to success.

$169.00 $99.00 Get Template

Related Blogs

• Starting a Business
• KPI Metrics
• Running Expenses
• Startup Costs
• Pitch Deck Example
• Increasing Profitability
• Sales Strategy
• Rising Capital
• Valuing a Business
• How Much Makes
• Sell a Business
• Business Idea
• How To Avoid Mistakes

Leave a comment

Your email address will not be published. Required fields are marked *

Please note, comments must be approved before they are published

Medical Shop Business Plan: How To Start Pharmacy Business

With the increasing need for medical assistance, the medical shop business is definitely flourishing with each passing day. The Pharmacy field provides the entrepreneurs with a profitable business idea as the margin of the products is really high.

Another perk of starting your own medical shop business in India is that the business doesn’t get affected by the economical crisis meaning you will never stop earning a profit, and also the medical shop is a kind of idea that can never go out of business .

Although there are a number of things that you must consider first before indulging yourself in the idea. As easy as it sounds, starting a medical shop is a bit complicated than you may think, but nothing that you can not manage. Being a part of the medicinal field, the medical shop business plan requires a high level of authenticity as it can put the lives of thousands of people at risk if you are not careful.

But there’s nothing to be worried about because in the article below we are going to introduce you with every aspect of starting your own pharmacy in India along with each and every requirement and how to convert your business in a profitable one.

First Things First

The first and most important thing to keep in mind before starting your own medical shop business is the degree of B. Pharma or M. Pharma. Do you possess the degree that is the compulsion for starting your own pharmacy? If yes then you can proceed with the plan and if no, then you must hire someone with the degree or you are not allowed to run the medical store.

Before hiring a professional to run the store for you, you must consider the following things. Apart from being qualified with a complete degree of B. Pharma or M. Pharma, the person should fulfill either of the conditions given below:

• The graduate should be a registered pharmacist approved by the pharmacist department.
• He must have the experience of at least one year working in the pharmacy before running the store.
• He should have passed S.S.L.C with years of experience in dealing with drugs that are approved by the department of drug control.

Licensing and Permits Required

Licensing is kind of a big deal when it comes to any business plan concerning the medical field. For running your own medical store you need to acquire the following licenses:

1. Registration of Business

Before starting your own pharmacy, first, you need to decide which kind of firm you want to open. This includes sole proprietorship firm, private limited company or a partnership firm. For business registration in India, you need to visit the Ministry of Corporate affairs or click on this link .

2. Drug License

The drug license for your medical store can be obtained from the State Drug Control Department. This is different for each state. Although the procedure is the same for each.

After you apply for registration, it can only be used for a single store. As soon as you fill out the application form, the procedure will get started. Along with the application form, you will also have to send the required documents mentioned on the official site attached to the document.

Now in some time, the department will conduct an investigation on your store and as soon as it is completed you will receive your license.

3. Land Permit

A land permit is required for setting up a commercial unit. For your manufacturing business , you will need to contact the municipal corporation of your state. The whole list of the municipal corporations of different states of India is listed here .

4. GST Registration

GST Registration is the service tax registration of India. You need to visit the official government website for GST registration by clicking here .

Setting Up The Commercial Unit

Location plays a big role in making your business successful there you should be extra careful while choosing one for your business plan. The location of your medical store should be available within the approachable range of the maximum number of your potential clients.

For example, a medical store near a hospital or a clinic will be the ideal location, but apart from this choosing a moderately populated residential area could also be great for the business. Also, don’t go for the area that is not saturated with the same kind of business as yours because it will make your medical store difficult to sustain.

The area of your commercial unit, however, depends on the scale of the business that you are going for. Although here we can give you an estimate of the basic requirement. If you want to open a small scale medical shop business then you are going to need an area of at least 10 sq. meters.

But if you are going for a slightly bigger version, like the wholesale retail business then you will require more than 15 sq. meters of area.

Taking up the franchise is not a requirement for starting a medical shop business rather an idea. This makes the beginning of your business plan really easy, however, it also restricts your success in some way and you will have to abide by all the customs as per the rule of the franchise that you decide to take.

The idea will also require you to invest a little more but on the bright side will save from most of the hassles. So if investing is not a problem for you, you can take the franchise of some successful drug store chain.

Investment is often a hurdle for many entrepreneurs starting their own business plan. Not everybody has tons in deposits for the idea that they are pursuing. To solve this problem you can take help from the various investment sources that can help you in starting your own business plan.

You will need approximately 3 to 4 lakhs if you are thinking about starting a small scale business and will have to invest at least Rs. 7 to 8 lakhs to open a wholesale store.

For financing your business, you have three options, first is to take your business to the private investors and present your idea in front of them in an impressive manner and if they like your idea, they will provide you with required funding for your business.

Your next option is the venture capitalist . This is where people come to for large scale investment business plan. But it is also harder to get. The process of getting investment is the same as private investors.

The last and most reliable business investment source is bank loans. Banks provide business on the basis of the potential of your business idea. If they liked the idea, they will provide you with 70% of the required amount needed for the bank. These are online links to apply for business loans at bank  SBI , Bank Of Baroda , Axis Bank , ICICI , and HDFC Banks.

For starting a medical store in India the first thing you are going to need is medicines. The supply of medicines could be difficult as many are unfamiliar with the field so they have a hard time figuring out which medicines to keep or which manufacturing companies to contact. You have basically two options here:

You can either buy the required medicines from retailers or online stores individually or you can contact the companies that can make you available all the required medicines. It is suggested that you contact the companies directly as this will provide you a higher profit margin.

For storage purposes, you are going to need different shelves and drawers. The medicines should be stored carefully and you should differentiate between the medicines serving a different purpose to remove the possibility of confusion. They should also be labeled and stored in different boxes.

Apart from this, the refrigerator is a must for your drug store as some of the medicines require you to store them in a cool environment. These medicines include doses of insulin, vaccines, and antibiotics. The drug store overall should be really organized as drug store owners must be extra careful for obvious reasons.

Profit Margin

Profit Margin should be predefined before starting your own medical store. Although it varies from store to store and brand to brand. The profit margin in the drug stores could be anywhere starting from 20% and it could go as high as 1000% on the MRP.

The profit of your drug store depends on the success of your business but the profit margin could vary as per your accordance. You will get the most profit from selling the supplements of vitamins and proteins such as salines, contraceptives., multivitamins, proteins, etc.

You must do your research before defining the profit margin in your business. You should also consider the competition in your nearby area and get the idea of the profit margin that they are using. Because too much or too low will affect the success of your business.

Informal Partnership with Doctors

Tieing up with medical professionals and doctors is only formal when you are a part of a hospital. If you work individually you will have to make an informal tie-up with the doctors to make some extra profit. You can set up some kind of commission between you and the doctor in a way in which you both can be profited.

The idea will only work if you have a clinic or hospital in the area nearby because nobody is going to travel to a long distance to reach your store even if the doctor recommended.

Building a Customer Base

Building a customer base is necessary to ensure that your store never goes out of business. You can use various marketing strategies to spread the word about your business and then you will have to manage those customers so that they keep coming back to you.

You can provide some discount to your regular customers or could start some coupon schemes for the ones who are first-timers at your store. This will ensure the regularity of the customers as well as will help you make the new ones.

You can also include some additional services like home delivery which is the prime requirement in today’s world for people who can’t get out of their houses such as elder people or ones with some serious issues. These tactics will definitely help you in the long run.

If you are looking for more medical business ideas to start your business, then please read our article on most profitable health care business ideas .

Running a medical store is not only a profitable business idea but it is also a great responsibility. There are many ways to make this business plan a successful one, but nothing will prove right if you are not careful while dealing with a business like this.

Above we have stated everything concerned with starting your own medical shop in India. If you follow these steps properly there is nothing that can stop you from making this business idea successful. If you have any questions or suggestions you can give it to us by commenting in the section below. We would be more than happy to help you. Also, let us know if you find this article helpful.

How to Start a Medical Supply Business

Starting a medical supply business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful medical supply business.

Importantly, a critical step in starting a medical supply business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Medical Supply Business :

• Choose the Name for Your Medical Supply Business
• Develop Your Medical Supply Business Plan
• Choose the Legal Structure for Your Medical Supply Business
• Secure Startup Funding for Your Medical Supply Business (If Needed)
• Secure a Location for Your Business
• Register Your Medical Supply 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 Medical Supply Business
• Buy or Lease the Right Medical Supply Business Equipment
• Develop YourMedical Supply Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Medical Supply Business
• Open for Business

1. Choose the Name for Your Medical Supply Business

The first step to starting a medical supply business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own medical supply business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your medical supply business.

2. Develop Your Medical Supply Business Plan

One of the most important steps in starting a medical supply business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your medical supply business.
• Company Overview – this section tells the reader about the history of your medical supply business and what type of medical business you operate. For example, are you a medical equipment retailer, wholesale distributor, or online medical supply store?
• Industry Analysis – here you will document key information about the health care industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your medical supply business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What are the startup costs?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your medical supply business.

Next you need to choose a legal business structure for your medical supplies business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the medical equipment business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a medical supply business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a medical supply business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a medical supply business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your medical supply business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Medical Supply Business (If Needed)

In developing your medical supply business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a medical supply business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a medical supply business that they believe has high potential for growth.

5. Secure a Location for Your Business

There are a few things to consider when looking for a location for your medical equipment business. First, you’ll want to make sure the location is accessible and convenient for your customers. You’ll also need to have enough space to store your inventory and equipment. Finally, it’s important to find a location that is affordable. 

6. Register Your Medical Supply Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your medical supply business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your medical supply business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

You will need a business license, a permit to operate as a medical supply business, and a permit to sell medical supplies. You may also need a sales tax permit. Check with your local business licensing office to find out what licenses and permits are required in your area.

10. Get Business Insurance for Your Medical Supply Business

The type of insurance you need to operate a medical supply business depends on the scope of the operation. 

Some business insurance policies you should consider for your medical supply business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Medical Supply Business Equipment

Medical supply companies need essential office equipment, such as computers, phones, printers, and fax machines. You may require other equipment depending on the scope of your operation. For instance, if you operate a warehouse for wholesale distribution, you may need a forklift to move inventory around. If you deliver medical supplies, you’ll need a vehicle for transport. It’s important to research the specific equipment you need to run your business.

12. Develop Your Medical Supply Business Marketing Materials

Marketing materials will be required to attract and retain customers to your medical supply business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your medical supply business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional medical supply business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your medical supply business.

13. Purchase and Setup the Software Needed to Run Your Medical Supply Business

To run a medical supply business, you need software to manage inventory, track sales, and manage customer relationships. You’ll also need accounting software to manage finances. There are many options available for medical supply business software. Some software companies offer all-in-one programs made specifically for medical supply stores. So, with a bit of research, you should be able to find one that suits your needs. 

14. Open for Business

You are now ready to open your medical supply business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Ultimate Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your medical supply business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start a Medical Supply Business FAQs

Is it hard to start a medical supply business.

No, it’s not too difficult to start a medical supply business. However, it does require some basic knowledge and understanding of the industry. The most important thing you'll need to get started is a good business plan.

How can I start a medical supply business with no experience?

The best way to start a medical supply business with no experience is to do some research. Learn about the industry, what products are in demand, and what prices to charge. You can also join an industry organization or attend trade shows to learn more about the business. You may want to consider working for a medical supply company and network with medical professionals before starting your own business. This will give you a chance to learn about the industry and gain some experience. Finally, create a business plan and secure financing before starting your business.

What type of medical supply business is most profitable?

The most profitable type of medical supply business is one that manufactures and distributes disposable medical supplies. These large medical supply companies can be exceptionally lucrative because there is a constant demand for their products and they typically have low overhead costs.

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

To start a small medical supply business, it will cost you approximately $5,000-$10,000. This includes the cost of setting up your business, getting inventory, and marketing your new business. Costs will be greater for a larger operation.

What are the ongoing expenses for a medical supply business?

Medical supply businesses have a few common ongoing expenses. The most significant expense is the cost of the supplies themselves. This can include anything from bandages and gauze to surgical equipment. Medical supply businesses must also account for the cost of delivering or shipping their supplies. In addition, these businesses often pay for ongoing advertising and marketing to make sure their products are seen by potential customers.

How does a medical supply business make money?

Medical supply businesses make money by selling products to hospitals, doctors' offices, and other medical facilities. They also make money by providing services such as equipment rentals and repairs. Some business owners also earn by taking their medical supply business online.

Is owning a medical supply business profitable?

A medical supply business can be profitable because it meets a fundamental human need. People will always need medical supplies, whether it is for themselves or for a loved one. Additionally, the demand for medical supplies is growing as the population ages and more people require treatment for chronic illnesses.

Why do medical supply businesses fail?

There are many reasons medical supply businesses can fail. A common one is that the company doesn’t understand the needs of its target market and lacks the right products and services to meet those needs. Additionally, many businesses do not have a clear marketing plan or strategy, which can doom them to fail.

Other Helpful Business Plan Articles & Templates

Medical & Health Business Plans

Dental practice business plans.

• Dental Office Business Plan

Health Administration Business Plans

• Benefits Administration Business Plan
• Health Plan Administration Business Plan
• Medical Billing Business Plan

Medical Equipment Business Plans

• Eye Surgery Equipment Maker Business Plan
• Hearing Testing Systems Business Plan
• Lift Bed Manufacturer Business Plan
• Medicine Dispenser Business Plan
• Medical Equipment - Supplies Business Plan
• Medical Equipment Business Plan
• Medical Equipment Developer Business Plan
• Sports Medical Equipment Business Plan
• Surgical Medical Equipment Business Plan
• Voice Recognition Software Business Plan

Medical Practice Business Plans

• Chiropractic Business Plan
• Chiropractic Clinic Business Plan
• Chiropractic Services Business Plan
• Family Chiropractic Business Plan
• Family Medicine Clinic Business Plan
• Occupational Health Business Plan
• Physical Therapy Massage Business Plan
• Psychological Health Center Business Plan
• Sports Therapy Business Plan
• Home Health Care Business Plan

Medical Support & Laboratories Business Plans

• Dental Laboratories Business Plan
• Laboratory Business Plan
• Medical Internet Marketing Business Plan
• Medical Language Translation Business Plan
• Medical Scanning Lab Business Plan
• Medical Services Management Business Plan
• Medical Software Business Plan
• Medical Transcription Business Plan
• Personnel Management Business Plan

Nursing Home Business Plans

• Home Health Care Services Business Plan
• Nursing Home Business Plan

Pharmacy Business Plans

• Agriculture Farm Business Plan
• Pharmacy Business Plan

Psychological Therapy Business Plans

Veterinary practice business plans.

• Horse Training Business Plan
• Veterinary Clinic Business Plan

Looking for a free sample business plan for a medical billing, chiropractic, dental, hospital, or another health care businesses? You’ve come to the right place!

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• Business Performance Improvement
• Legal Compliances
• Market Linkage
• Newsletters
• Professional Services
• Proposal Creation & Funding
• Research & Policy advocacy
• Yashaswi Udyojak

Essentials Of A Medical Shop Business Plan

The pharmacy business is an evergreen business that is unaffected by any economic slowdowns or unfavorable market conditions. The statistics also point towards the exponential growth of the pharmacy business over the past decade, and as per analysis, the global pharmacy market is expected to display a robust growth of approximately 4.94% during 2018 to 2023, which is in the next few years. All of this indicates that the medical business is a great business opportunity to invest in, for all the entrepreneurs who are looking for a rewarding business idea that promises growth as well.

The other advantage of starting a medical shop is that it is one of those few businesses that is noble in nature as it provides medication to those in need and helps people recover from illnesses and diseases.  Medical shops are thus a must for the well-being of the community. Also, with the growing number of speciality hospitals and clinics and medical professionals for specific illnesses and body parts, there is an equally growing demand for medical shops to meet the rising demand. The modern stressful and hectic lifestyle has further increased the number of health problems troubling people and this too adds to the rising demand for medical shops for lifestyle diseases and conditions too. 

In order to open a medical store, entrepreneurs need to carry out planning for the business in advance as several vital elements and factors can be forgotten when a plan is not in place. A medical store business plan ensures that the objectives and goals of the business are noted down and a clear path has been chalked to achieve the said objectives and goals instead of having a vague business idea that exists only in the mind of the entrepreneur. A business plan is defined as a formal written document containing the details of the business, it’s goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved. Business planning is vital because

• It helps to set up a structured business.
• A well-defined business plan helps save time and resources while setting up the business and also in the long run.
• The business plan is the first step to secure funding as it addresses all concerns of funding institutions.
• Business planning and the projections made in the business plan helps give an understanding of how the business will operate in the future.
• It helps to validate the assumptions made about the business and also determines if there is a need for the product or service.

These are some of the benefits of having a business plan in place before starting any business, including the medical shop business. 

However, what is included in the business plan is also as important as having a business plan ready. There are several essentials that need to be included in the medical shop business plan and in order to ensure all these pointers are present in the plan, business plan services can be sought to help prepare a comprehensive and detailed document. Some of the factors to be included are discussed here.

Medical Shop Business Plan

Type of medical business.

There are a number of medical stores present in the market and starting one more store is an addition to the list. However, the business plan must elaborate on how is this medical store different, and on the exact type of store. There are a few different types of medical shops, such as-

• Hospital medical store which is located inside a hospital. This type of medical shop caters to the needs of the patients mostly inside the hospital.
• A standalone medical store which is the most commonly found form of medical store and is usually present in a residential area, catering to the residents in the area.
• Chain Pharmacy/ Franchise outlets is a medical store that is present in the malls and is usually part of a chain of pharmacies.
• Township medical store is a medical set-up in a township that helps cater to the needs of the people residing there.

The business plan can elaborate on the type of medical store that the entrepreneur wishes to setup.

Analysis Of The Location Of The Medical Store

The next important aspect to be included in the medical shop business plan is the location decided for setting up the medical shop. A study of the area and its community must be conducted and included in the business plan, to justify the location selected. The community study will include analysing the demographics, the economics of the locality, the presence of hospitals and doctor’s clinics in the area, the presence of competition in the area, etc. This will give an idea if the locality has the majority of geriatric patients or high-income families, etc and can help decide the kind of stock to keep in the store. 

Additionally, the location must be easily accessible by customers. The store must be visible to people, even from a distance, and the store must also have parking space for the customers’ and the owner’s vehicles. The place must also have storage space to store the medicines as well as a display and counter space where the staff can attend the customers.  

Also, while considering a commercial space for the medical shop, the price of the place, whether rent or purchase price, also needs to be considered and it should fit within the budget decided by the entrepreneur for the business. These criteria and analysis of the location must be mentioned in the medical shop business plan.

Financing The Medical Shop

The financial plan is an important aspect to consider and the details of it must be included in the medical shop business plan. The first part of it enlists all the capital requirements for the business. This includes details regarding the purchase or renting of the commercial space for the medical shop, the capital investment required for procuring the medicines. These medicines can be bought in bulk for lower rates directly from the manufacturer (provided there is a need for medicines in higher quantity) or the medicines can be bought from wholesalers and distributors who provide the stock at a higher price, as compared to manufacturers, but take orders for low quantities too. The other financial requirement includes the cost of furnishing the shop and purchasing the equipment. This includes the purchase of shelves, counters, cash registers, computers to maintain records, bags, inventory for the front of the store such as paper towels, OTC drugs and products, food, cleaning supplies, etc. Also, costs involved in hiring employees for the shop such as a pharmaceutical technician, a salesperson, an accountant must be accounted for and included in the business plan. The day to day recurring costs while running the business also need to be considered, such as electricity bills, phone bills, fuel bills while providing home delivery etc. All of these financial requirements need to be accounted for and mentioned in the business plan.

The next aspect includes details of how the capital requirements will be fulfilled. Entrepreneurs can either opt for bank loans or take loans from NBFCs (non-banking financial institutions) or even look for investors or open the shop from savings or borrowings from friends and family or approach institutions to help them procure funding. 

While applying for loans, the business plan often needs to be presented to the authorising officials and therefore the business plan must be made meticulously, especially the financial details of the business must be mentioned in detail. 

Legal Requirements For The Business

Information regarding the necessary registrations and permits required for the business and the steps taken to procure them must also be mentioned in the medical shop business plan. A pharmacy business, just like every other business, requires a business registration. It could either be a sole proprietorship or a partnership or a one person company or even a limited liability partnership, depending on the entrepreneur’s preference. The details of the business entity selected must be mentioned in the business plan. 

The medical shop also requires a drug license or a pharmacy licence and this licence is provided based on the area of the shop, the storage facility and the technical staff at the shop. The details of this licence and it’s procurement must be mentioned in the business plan. Additionally, the business requires a GST registration as well as a Shop Act License, both of which must be mentioned in the business plan.

The mention of the required medical store licenses in the business plan displays that the entrepreneur is aware of the legal requirements for the business and has a plan to obtain the same. Also, since most of these registrations are mandatory, the mention about them in the business plan acts as a reminder to the entrepreneur to procure them at the earliest. 

Additionally, the business plan for the medical shop must also include details about the proposed management for the business as well as the marketing of the business because these are vital elements of the business. Entrepreneurs can opt for business plan services from experts such as those at deAsra if they are unsure of how to start a medical shop . 

Are You Choosing the Right Exhibition for Your Business? Find Out How!

Venturing into the exhibition scene can feel like navigating a minefield for small enterprises eager to make an impact. The goals are clear: unveiling an innovative product, masterfully expanding your...

Building Networks and Support Systems: The Importance of Women’s Entrepreneurial Communities

In the world of entrepreneurship, where challenges and opportunities coexist, the power of community cannot be overstated. This sentiment rings even truer for women entrepreneurs, especially in India....

Why Indian Sellers Should Join the ONDC Network

In an era of digital transformation, Indian sellers are continually looking for platforms that not only enhance their market reach but also streamline their business operations. The Open Network for D...

Empowering Women at Home – Top 6 Work from Home Business Ideas for Housewives

In today's dynamic world, the concept of entrepreneurship has dramatically evolved, opening doors to numerous opportunities, especially for housewives looking to step into the business realm. With the...

Join the Celebration: deAsra’s Entrepreneur Excellence Awards 2024 – Support and Inspire

As the calendar flips to 2024, the entrepreneurial spirit among women in India will be celebrated grandly through deAsra Foundation's Entrepreneur Excellence Awards. This prestigious event not only sp...

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Step 1 of 2

All fields marked* are mandatory

To continue reading further, please provide us the below details

• Name * First Last
• Country Code *
• Facilitator Email
• External Handholder Email
• Selected Service
• EHH Engaged Consent Stay Engaged with EHH only
• LS Response
• Business Rule
• Response Message
• UTM Campaign

wrong OTP try again!!

Medical Scrubs Business Plan Template & Guidebook

This step-by-step guide will walk you through how to write a business plan for your medical scrubs business in just 7 steps. Striking out on your own and opening a medical scrubs store? You want to know if it's the right choice for you, and to do that, you need to understand the basics of how to write a business plan.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Medical Scrubs Business [11 Steps]
• 25 Catchy Medical Scrubs Business Names:
• List of the Best Marketing Ideas For Your Medical Scrubs Business:

How to Write a Medical Scrubs Business Plan in 7 Steps:

1. describe the purpose of your medical scrubs business..

The first step to writing your business plan is to describe the purpose of your medical scrubs business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a medical scrubs business:

Our purpose at ScrubUp is to provide medical professionals with high-quality, durable, and stylish medical scrubs that meet their needs and preferences. Our mission is to become the leading provider of medical scrubs in the region, offering a wide range of styles, colors, and sizes to suit every need. We are committed to using only the finest materials and latest technology, and to providing exceptional customer service, with knowledgeable and friendly staff who can help medical professionals find the right scrubs for their needs. We aim to provide a comfortable, welcoming environment where medical professionals can shop and learn about the latest advancements in medical scrub technology, and to deliver exceptional results that exceed our customers' expectations. We believe that everyone deserves to have access to high-quality, durable, and stylish medical scrubs, and we strive to provide our customers with the best products and services available.

2. Products & Services Offered by Your Medical Scrubs Business.

The next step is to outline your products and services for your medical scrubs business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your medical scrubs business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your medical scrubs business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your medical scrubs business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a medical scrubs business?

To run a medical scrubs business, you will need a few key pieces of equipment, supplies, and permits. These include:

• Medical scrubs and uniforms
• Point of sale (POS) system and cash registers
• A permit to operate your business (depending on location)
• Business licenses and permits for business activities (if applicable)

You may also need to hire and train staff to manage the medical scrubs sales and provide customer service.

5. Management & Organization of Your Medical Scrubs Business.

The second part of your medical scrubs business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your medical scrubs business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Medical Scrubs Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a medical scrubs business varies based on many different variables, but below are a few different types of startup costs for a medical scrubs business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your medical scrubs business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your medical scrubs business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your medical scrubs business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Medical Scrubs Business Plans:

Why do you need a business plan for a medical scrubs business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your medical scrubs business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your medical scrubs business?)

To build a business plan for your medical scrubs business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written medical scrubs business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a medical scrubs business plan yourself?

Yes, you can write a medical scrubs business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

Related Business Plans

Home Inventory Business Plan Template & Guidebook

Home Inspection Business Plan Template & Guidebook

Home Decor Business Plan Template & Guidebook

Health And Wellness Business Plan Template & Guidebook

Hauling Business Plan Template & Guidebook

Hardware Business Plan Template & Guidebook

Handyman Business Plan Template & Guidebook

Hair Extension Business Plan Template & Guidebook

Handbag Business Plan Template & Guidebook

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.