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Medical Device Business Plan

NOV.06, 2023

Medical Device
 Business Plan

Medical Device Business Plan Sample

A medical device business plan is a document that outlines how to start and run a successful company that produces and sells products that diagnose, treat, or prevent diseases or injuries. Navigating the vast and expanding medical device sector presents thrilling opportunities alongside complex hurdles. A well-crafted business plan illuminates the route to success. Articulate your vision, milestones, tactics, and budgetary forecasts.

A business plan should also demonstrate how you will stand out from the crowd, satisfy users, adhere to regulations, and uphold ethical standards. A medical billing business plan is a specific type of medical device business plan that focuses on how to provide billing and coding services for healthcare providers.

In this article, we will provide you with a medical device business plan sample that you can use as a template or a reference for your business plan. We will cover the following sections:

  • Executive Summary
  • Company Overview
  • Industry Analysis
  • Customer Analysis
  • Competitive Analysis
  • Marketing Plan
  • Operations Plan

Management Team

  • Financial Plan

Executive Summary Section of Our Medical Device Business Plan

Business overview.

Medix is a medical device company that develops and sells innovative and affordable devices for diabetes management. We aim to enhance the well-being and health results of those managing diabetes. We aim to offer user-friendly and dependable products that assist in tracking and regulating blood sugar levels.

Products and Services

Medix offers two main products:

  • Medix Glucometer – A smart glucose meter that connects to a mobile app via Bluetooth and provides accurate and instant readings of blood glucose levels.
  • Medix Patch – A wearable patch that continuously measures blood glucose levels through the skin without needing finger pricks or test strips.

Customer Focus

Medix focuses on serving people with diabetes, seeking convenient and affordable solutions to manage their condition. According to the IDF Diabetes Atlas 10th edition report , 537 million adults (20-79 years) live with diabetes – 1 in 10. Experts predict that this number will rise to 643 million by 2030 and 783 million by 2045. Therefore, there is a huge demand for effective and accessible diabetes care products.

Leo Clark and Aria Bennett, two experienced entrepreneurs with biomedical engineering and business administration backgrounds, founded Medix. Leo is the CEO and head of product development, while Aria is the COO and head of marketing and sales. A team of qualified engineers, designers, developers, marketers, salespeople, and advisors supports them.

Success Factors

Medix has several competitive advantages that will enable it to succeed in the medical device industry:

  • Innovation with cutting-edge technology to create novel devices
  • High standards of quality and safety in every aspect of devices
  • Customer satisfaction by providing user-friendly devices
  • Social impact by addressing a major health problem globally

Financial Highlights

Medix seeks $5 million in seed funding to launch its products and scale its operations. The company projects to generate $1.2 million in revenue in the first year, $3.6 million in the second year, and $10.8 million in the third year, with a gross margin of 60% and a net profit margin of 20%. The company expects to break even in the second year and reach a valuation of $50 million by the end of the third year.

Company Overview Section of Our Medical Device Sales Business Plan

medical equipment business plan pdf

Who is Medix Medical Supply?

Medix dedicates itself to developing and selling innovative, affordable, and reliable devices for diabetes management. Our products help people with diabetes to monitor and control their blood glucose levels with ease and effectiveness, leading to better health outcomes and an improved quality of life.

Medix Medical Supply History

Medix is a company that provides innovative solutions for diabetes care. It was founded by Leo Clark and Aria Bennett in 2023, who both personally experienced the challenges and frustrations of living with diabetes. These challenges included frequent finger pricks, expensive test strips, inaccurate readings, and complicated insulin injections.

They started Medix with their personal funds and an incubator grant to address these issues. Medix developed two products – the Medix Glucometer and the Medix Patch – to make diabetes monitoring and treatment easier, more accurate, and more affordable.

The Medix products have received regulatory approvals from the Food and Drug Administration (FDA) and the European Medicines Agency (EMA). They are now ready for launch in the US and European markets. For more information, please refer to our dentistry business plan .

Legal Structure

Medix, an LLC registered in Delaware, USA, has obtained ownership by Leo Clark (60%) and Aria Bennett (40%). Additionally, the company has applied for a patent for its products in the US Patent and Trademark Office (USPTO).

Industry Analysis Section of Our Medical Device Business Plan

The medical device industry is one of the world’s most innovative and dynamic sectors. Fortune Business Insights reported that the global medical device market was valued at $512.29 billion in 2022 and can grow from $536.12 billion in 2023 to $799.67 billion by 2030, at a CAGR of 5.9%.

The medical device industry is driven by several factors, such as:

  • The increasing prevalence of diseases and the aging population
  • The rising demand for minimally invasive and personalized treatments
  • The advancement of technology and digitalization
  • The emergence of new markets and segments

Customer Analysis Section of Our Medical Supply Business Plan

Demographic profile of target market.

Medix’s target market is the US market, which ranks third for the highest number of people with diabetes. We target diabetic people looking for convenient, affordable solutions to manage their condition. 

According to the National Diabetes Statistics Report by CDC, here are some interesting stats about why the US market is best for Medix:

  • 37.3 million people have diabetes (11.3% of the US population)
  • 28.7 million people are diagnosed, including 28.5 million adults
  • 8.5 million people are undiagnosed (23.0% of adults)
  • 96 million people aged 18 years or older have prediabetes (38.0% of the adult US population)
  • 26.4 million people aged 65 years or older (48.8%) have prediabetes

The demographic profile of our target market is as follows:

  • Age – We target all ages, mainly the young and middle-aged, who are tech-savvy and have more money to spend. A CDC report says 34.1 million adults aged 18 years or older—or 13.0% of all US adults—have diabetes.
  • Gender – We target both males and females, as diabetes does not discriminate by gender. A NIDDK (NIH) report says a higher percentage of men (41%) than women (32%) have prediabetes.
  • Income – We target all income levels, mainly the low and middle-income who need better healthcare solutions. An NCBI (NIH) report says 80% of the adults worldwide with diabetes live in low- and middle-income countries (LMICs).

Customer Segmentation

Based on our market research and customer feedback, we have identified four main customer segments for our products:

  • Segment A – Tech-savvy innovators who value quality, performance, and convenience. They share their views online.
  • Segment B – Cost-conscious buyers who seek affordable and effective products. They trust their peers’ recommendations.
  • Segment C – Health-conscious improvers who want products that motivate and support them. They join online health communities.
  • Segment D – Compliance-driven users need products that ensure safety, security, and simplicity. They depend on their health providers and caregivers.

The table below summarizes our findings:

Based on the table, we have decided to target segments A and B as our primary segments, and segments C and D as our secondary segments.

Competitive Analysis Section of Our Medical Equipment Producer Business Plan

Direct and indirect competitors.

Our direct competitors are other medical device companies that offer similar or substitute surgical medical equipment for diabetes management. Some of the major players in this category are:

1. Abbott – A global healthcare company that offers a range of products for diabetes care with mobile apps for real-time data and insights.

  • Strong brand recognition
  • Global presence
  • Innovation capabilities
  • Customer loyalty

Weaknesses:

  • Limited availability
  • Technical issues

2. Dexcom – A medical device company specializing in CGMs for diabetes management. These devices use sensors to record and transmit data to a receiver or a smartphone.

  • High accuracy
  • Reliability
  • Convenience
  • Customer satisfaction
  • Short sensor lifespan
  • Skin irritation

3. Medtronic – A medical technology company that offers a range of durable medical equipment for diabetes care, such as insulin pumps, CGMs, and APSs. The system connects to a mobile app to monitor and control settings.

  • Leadership position
  • Advanced technology
  • Clinical evidence
  • Customer support
  • Safety concerns
  • Regulatory hurdles
  • Competition

Our indirect competitors are other healthcare providers or solutions that offer alternative or complementary ways to manage diabetes, such as medications, diet plans, exercise programs, coaching services, etc. Refer to our hospital business plan to learn more.

Competitive Advantage

Medix’s unique value proposition and competitive advantage over its competitors are:

  • Medix is more innovative
  • Medix is more convenient
  • Medix is more versatile
  • Medix is more affordable
  • Medix is more user-friendly

Marketing Plan Section of Our Medical Device Business Plan

Promotions strategy.

We will promote our products using online and offline channels to attract and retain customers. Our promotional mix consists of:

  • Advertising – Online platforms (e.g., Google Ads, Facebook Ads) and offline media (e.g., newspapers, billboards) to deliver relevant and engaging messages.
  • Public Relations – Press releases, media interviews, podcasts, webinars, etc., to generate positive publicity and exposure. Social media platforms (e.g., Facebook, Twitter) to interact and communicate with customers and stakeholders.
  • Sales Promotion – Discounts, coupons, free samples, free trials, referrals, loyalty programs, etc., to stimulate sales and repeat purchases. Contests, sweepstakes, giveaways, etc., to create excitement and buzz.
  • Personal Selling – Direct sales, telemarketing, email marketing, etc., to contact and persuade customers to buy our products. Online platforms (e.g., Amazon, eBay, Shopify) to sell our products directly.

We will use a value-based pricing strategy that reflects the value and benefits of our products and our competitive advantage. We will also offer competitive pricing that matches or undercuts our competitors’ prices.

We will charge $100 for each Medix Glucometer and $50 for each Medix Patch. We will also generate recurring revenue from the sales of test strips ($0.5 each) and insulin cartridges ($10 each). We estimate that each customer will use an average of 100 test strips and 12 insulin cartridges per year.

Operations Plan Section of Our Medical Device Business Plan

Operation functions.

We do these core activities to offer our products and services to our customers:

  • Product Development – We research, design, test, and improve our products using agile methods, customer feedback, market trends, and tools like GitHub, Jira, Figma, etc.
  • Manufacturing – We produce our products on a large scale and high quality by outsourcing to a reliable contract manufacturer.
  • Distribution – We deliver our products to our customers quickly and cheaply using direct and indirect channels in different regions or countries.
  • Customer Service – We support and assist our customers before, during, and after their purchase using various channels and methods.

Milestones and Timeline

We have these specific goals and objectives to track our progress and success in our operation functions:

  • June 2024: Complete R&D, testing, prototyping of products
  • September 2024: Obtain regulatory approvals and certifications
  • December 2024: Launch marketing campaign and product launch in the US
  • March 2025: Market research for Europe entry
  • December 2025: Launch Europe marketing, market entry
  • March 2026: Invest in production capacity
  • June 2026: Expand manufacturing workforce
  • December 2026: Evaluate production, increase to 100k units/month

Management Team Section of Our Medical Device Business Plan

Founders and co-founders.

Leo Clark, a biomedical engineer with type 1 diabetes, and Aria Bennett, the daughter of a type 2 diabetic and a business administrator, founded Medix. Leo is responsible for the product development function, while Aria leads the marketing and sales function. Both have several years of experience working in their respective fields and personal and professional experience with diabetes.

Other Key Team Members

  • Alice Lee – Our chief engineer
  • Bob Chen – Our chief developer
  • Carol Wang – Our chief designer
  • Dave Jones – Our chief marketer
  • Emma Smith – Our chief salesperson

Financial Plan Section of Our Medical Device Business Plan

Key revenue and costs.

Medix’s main sources of revenue, along with pricing, are:

  • Medix Glucometer – $100 for each Glucometer
  • Medix Patch – $50 for each Patch
  • Test Strips – $0.5 for each test strip
  • Insulin Cartridge – $10 for each cartridge

We estimate that each customer will use an average of 100 test strips and 12 insulin cartridges per year.

Medix’s main categories of expenses are:

  • Cost of Goods Sold (COGS) – Our main cost of goods sold is the cost of materials, components, parts, and additional supplies. We estimate that the COGS per unit is $40 for the Medix Glucometer, $20 for the Medix Patch, $0.1 for the test strip, and $2 for the insulin cartridge.
  • Operating Expenses (OPEX) – Our main operating expenses are the costs we incur for running and operating our business, such as salaries, rent, utilities, marketing, advertising, R&D, etc. Our OPEX will be 40% of our revenue in the first year, 35% in the second year, and 30% in the third year.

Funding Requirements and Use of Funds

Funding Requirements – We seek $5 million in seed funding to launch our products and scale our operations. We have already raised $500,000 from our savings and a small grant from a local incubator. We need an additional $4.5 million to cover our expenses for the next 18 months until we reach the break-even point.

Use of Funds – We will use the funds for the following purposes as highlighted in the below chart:

Projected use of funds of medix - Medical Device Business Plan Sample

Key Assumptions

  • Market size for our products is 10% of the total number of people with diabetes in the US and Europe
  • Market share is projected to grow from 107,000 customers in 2024 to 444,000 customers in 2026
  • Sales volume is projected to grow from 321,000 units in 2024 to 1.33 million units in 2026
  • Gross margin is projected to be 60% in all three years
  • Net margin is projected to grow from 20% in 2024 to 30% in 2026

Financial Projections

Based on the above assumptions, we have prepared the following financial projections for the next three years:

Income Statement

Projected Income Statement for Medix - Medical Device Business Plan Sample

OGSCapital – Your Partner for Medical Device Startup Success

With over a decade of experience, at OGSCapital, we have helped various entrepreneurs craft winning business plans. Our consultants provide end-to-end support – from market research and competitor analysis to realistic profitability forecasts. We understand the medical device industry inside-out, including regulations, manufacturing, and distribution.

Whether you need help with your hospital feasibility study , medical equipment manufacturing business plan, or medical supply store business plan, we tailor our approach to your specific product and goals. Partner with us to launch your startup on the path to profitability and rapid growth.

Frequently Asked Questions

How to start a medical device business.

A strategic business plan is a key ingredient in a startup medical device company. But that alone won’t cut it – the company also requires a talented group of professionals, structured product development procedures, a plan for meeting regulatory guidelines, and effective marketing tactics. A distributor or a medical equipment supplier can help distribute the devices.

How profitable are medical devices?

The medical equipment industry is booming with high growth potential. The average operating margin for medical equipment and supplies companies averages 2.87%. The medical device market will grow at a CAGR of 5.5% to 5.9% from 2022 to 2030.

How do I market my medical device?

As highlighted in our Medical Clinic Business Plan , some popular marketing channels to market a medical device include online platforms, social media, trade shows, conferences, webinars, publications, referrals, and testimonials. A medical equipment rental company can also help market the device.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

medical equipment business plan pdf

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ProfitableVenture

Medical Supply Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Medical Supply

Medical Supply Business

Are you about starting a medical supply company and need to write a plan? If YES, here is a detailed sample medical supply business plan template & FREE feasibility report.

If the idea of owning a medical related business sounds good to you, then this is indeed the time to start your own medical supply business, create financial freedom, and be your own master.

Any known medical practitioner needs specific supplies to do their duties and these equipment need to be manufactured and supplied by a firm.

Businesses that supply these equipment are growing on a daily basis. Below is a sample medical supply business plan template that will help you successfully write yours without much stress.

A Sample Medical Supply Business Plan Template

1. industry overview.

Players in the Medical supplies wholesaling industry purchase medical and surgical equipment, instruments and supplies, store these items at distribution centers, and deliver them to medical practitioners, clinics and hospitals.

A close study of the Medical Supplies Wholesaling industry reveals that revenue has increased steadily as the number of age-related non – elective procedures performed in the united states has increased. Rising product prices have also supported industry growth.

Revenue is projected to rise over the five years to 2022 as healthcare providers continue to invest in new equipment to keep up with growing demand for healthcare services. New product development by medical device manufacturers will also contribute to industry growth by offering new solutions to health issues.

The Medical Supplies Wholesaling industry is indeed a thriving in most countries of the world. In the United States of America, the industry generates over $194 billion annually from more than 13,223 medical supplies wholesaling companies.

The industry is responsible for the employment of over 218,294 people. Experts project that the industry will grow at a 1.9 percent annual rate between 2012 and 2017. The establishments in this industry that have dominant market shares in the United States of America are Cardinal Health Inc. and Owens & Minor Inc.

A recent report published by IBISWORLD shows that the barriers to entering the Medical Supplies Wholesaling industry are moderate. The importance of brand identity is minimal, because customers are concerned more with quality and price.

The low cost of customer switching will further ease the entry of new companies into the market. Switching costs are incidental and associated with changing transportation and communication systems.

Low switching costs encourage greater industry competition because new companies can more easily entice customers away from existing operators. The report also stated that, however, operators experience stringent regulatory controls and relatively high fixed costs , including warehousing technology, transportation equipment and complex machinery.

If you are contemplating starting your own medical supplies business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies. If you get some key factors wrong before starting your any business, then you are likely going to struggle to stay afloat.

2. Executive Summary

Phil Jason® Medical Supplies, Inc. is a registered medical supplies wholesaling business that will be located in one of the busiest streets in Cape Coral – Florida. We settled for Cape Coral because it is one of the top 50 markets in the country for the coveted millennial renter.

An appreciable percentage of current tenants are millennials because of close proximity to employment, retail and recreation hubs.

We have been able to lease a facility that can fit into the kind of standard medical supplies wholesaling business that we intend launching and the facility is located in a corner piece property close to the largest commercial hub in Cape Coral – Florida.

Phil Jason® Medical Supplies, Inc. will supply a wide array of medical and surgical equipment, instruments and supplies from different manufacturers (brands) from the United States and abroad. We are set to services a wide range of clientele in and around Cape Coral – Florida.

We are aware that there are several medical supply wholesaling businesses all around Cape Coral – Florida, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to compete with our competitors.

Phil Jason® Medical Supplies, Inc. will ensure that all our customers are given first class treatment whenever they do business with us. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they grow to. We will ensure that we get our customers involved in the selection of brands that will be in our supply chain.

Phil Jason® Medical Supplies, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.

Phil Jason® Medical Supplies, Inc. is owned by Phil Jason and his immediate family members. Phil Jason has Degree in Pharmacy and an MBA, with over 15 years’ experience in the medical supplies industry, working for some of the leading brands in the United States.

Although the business is launching out by concentrating only in Cape Coral – Florida, but there is a plan to engage in supplies all around major cities in the United States.

3. Our Products and Services

Phil Jason® Medical Supplies, Inc. is in the medical supplies business to service a wide range of clients and of course to make profits, which is why we will make available a wide range of medical and surgical equipment, instruments and supplies from top manufacturing brands in the United States and other countries of the world.

Our product offerings are listed below;

  • Nonelectronic medical, surgical, dental and veterinary instruments and apparatus, such as syringes, anesthesia apparatus, blood transfusion equipment, catheters, surgical clamps and medical thermometers, electromedical and electrotherapeutic apparatus, X-ray apparatus
  • Surgical appliances
  • Surgical instruments
  • Hospital beds and other specialized hospital furniture
  • Personal safety equipment

4. Our Mission and Vision Statement

  • Our vision is to become one of the leading brands in the medical supplies line of business in Florida and to establish a one stop medical supplies wholesaling company in Cape Coral – Florida and other key cities in the United States of America.
  • Our mission is to establish a world-class medical supplies wholesaling business that will make available a wide range of medical and surgical equipment from top manufacturing brands at affordable prices to businesses in and around Cape Coral – Florida and other key cities in the United States of America.

Our Business Structure

Our intention of starting a medical supplies wholesaling business is to build a standard company in Cape Coral – Florida. Although our company might not be as big as Cardinal Health Inc. and Owens & Minor Inc. et al, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Store Manager
  • Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

  • Accountants/Cashiers
  • Sales Agents/Customer Services Executive

Truck and Van Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office activities.

Warehouse Manager:

  • Responsible for managing the daily activities in the warehouse
  • Ensures that proper records of medical and surgical equipment are kept and warehouse does not run out of products
  • Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
  • Control medical equipment and instrument distribution and supply chain inventory
  • Supervise the workforce in the warehouse.
  • Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Help to ensure consistent quality of medical and surgical equipment from different manufacturers are purchased and retailed in good price
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.
  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identify, prioritize, and reach out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Document all customer contact and information
  • Represent the company in strategic meetings
  • Help increase sales and growth for the company

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
  • Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
  • Make suggestions and encourage purchase of products
  • Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
  • Assists in loading and unloading goods/medical supplies
  • Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
  • Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
  • Assists the transport and logistics manager in planning their route according to a pick – up and delivery schedule.
  • Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Reports defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several medical supplies wholesaling businesses all over Cape Coral and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Phil Jason® Medical Supplies, Inc. employed the services of an expert HR and Business Analyst with bias in distribution to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Phil Jason® Medical Supplies, Inc.;

Our business is located in a city with heavy medical activities and also, we can boast of having good business relationship with top manufacturers in the medical and surgical equipment manufacturing industry in and around Cape Coral – Florida.

A major weakness that may count against us is the fact that we are a new medical supplies wholesaling business in Cape Coral – Florida and we don’t have the financial capacity to compete with multi – million dollars medical supplies wholesaling outlets like Cardinal Health Inc. and Owens & Minor Inc. when it comes to supplying at a rock bottom prices.

  • Opportunities:

The fact that we are going to be operating our business close to the largest commercial hub in Cape Coral – Florida provides us with unlimited opportunities to sell our medical and surgical equipment to a large number of hospitals and other medical facilities.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they contact us; we are well positioned to take on the opportunities that will come our way.

A major threat that we are going to face as a medical supply business operating in the United States of America is uncertainty in government policies as it relates to price control and influx of medical and surgical equipment manufactured outside the United States of America.

When the prices charged by manufacturers to wholesalers’ declines, wholesalers typically have to reduce their selling prices to retailers. This results in subdued revenue growth for wholesalers, even if demand expands.

7. MARKET ANALYSIS

  • Market Trends

If you are conversant with medical supply business, you will quite agree that most medical supply businesses usually locate their warehouse close to medical facilities; it enables them make quick sales.

So also, the need to meet up with international best practices and conforming with the regulatory authority will result in revenue growth, but profit margins will stagnate as medical supplies wholesaling businesses keep prices low to attract more sales amid growing competition.

A close watch on the medical supplies business activities reveals that the industry has indeed done pretty well due to the strong demand for latest and efficient medical and surgical equipment, instruments and supplies. As part of marketing strategies, medical supplies wholesaling companies engage in massive clearance sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

We have positioned our medical supplies wholesaling business to service businesses in the healthcare industry in and around Cape Coral – Florida and every other location where franchise cum supplier will be located all over key cities in the United States of America and Canada.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to supply a wide range of medical and surgical equipment, instruments and supplies to the following customers;

  • Medical laboratories
  • Medical colleges
  • Dental clinics
  • Optical centers
  • Medical and surgical equipment retailers

Our Competitive Advantage

A close study of the medical supplies wholesaling industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other leading businesses in Cape Coral – Florida.

One thing is certain; we will ensure that we have a wide range of medical and surgical equipment, instruments and supplies from leading manufacturers available in our showroom and warehouse at all times. It will be difficult for customers to visit our showroom and warehouse and not see the type of equipment they are looking for.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Phil Jason® Medical Supplies, Inc. is in business to retail a wide range of medical and surgical equipment, instruments and supplies in and around Cape Coral – Florida. We are in the industry to maximize profits and we are going to ensure that we achieve our business goals and objectives. Phil Jason® Medical Supplies, Inc. will generate income by supplying the following products;

10. Sales Forecast

One thing is certain when it comes to medical supplies wholesaling business, if your showroom and warehouse are stocked with various types of medical and surgical equipment and is centrally positioned, you will always attract customers cum sales.

We are well positioned to take on the available market in Cape Coral – Florida and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base.

We have been able to examine the medical supplies wholesaling industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Phil Jason® Medical Supplies, Inc. it is based on the location of our business and other factors as it relates to medical supplies wholesaling startups in the United States;

  • First Fiscal Year (FY1): $450,000
  • Second Fiscal Year (FY2): $950,000
  • Third Fiscal Year (FY3): $1.850 Million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location for Phil Jason® Medical Supplies, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for hospitals and healthcare facilities in and around Cape Coral – Florida.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the medical supplies wholesaling industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Cape Coral – Florida.

In summary, Phil Jason® Medical Supplies, Inc. will adopt the following sales and marketing approach to win customers over;

  • Introduce our medical supplies wholesaling by sending introductory letters alongside our brochure to hospitals, dental clinics, optical centers, medical laboratories, medical and surgical equipment retailers and key stakeholders in Cape Coral – Florida
  • Ensure that we have a wide range of medical and surgical equipment, instruments and supplies from different brands at all times.
  • Make use of attractive handbills to create awareness and also to give direction to our showroom
  • Position our signage / flexi banners at strategic places around Cape Coral – Florida
  • Create a loyalty plan that will enable us reward our regular customers
  • List our business and products on yellow pages ads (local directories)
  • Leverage on the internet to promote our business
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)
  • Join local chambers of commerce and industries to network and market our products

11. Publicity and Advertising Strategy

Despite the fact that our medical supply showroom is well located, we will still go ahead to intensify publicity for the business.

Phil Jason® Medical Supplies, Inc. has a long-term plan of opening outlets in various locations all around Florida and key cities in the United States, which is why we will deliberately build our brand to be well accepted in Cape Coral before venturing out. Here are the platforms we intend leveraging on to promote and advertise Phil Jason® Medical Supplies, Inc.;

  • Place adverts on community based newspapers, radio and TV stations.
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around Cape Coral – Florida
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Contact hospitals, dental clinics, optical center, medical laboratories and other health facilities by calling them up and informing them of Phil Jason® Medical Supplies, Inc. and the products we sell
  • Advertise our medical supplies wholesaling business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and distribution vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to a medical supplies wholesaling business, which is why big players like Cardinal Health Inc. and Owens & Minor Inc. and co will attract loads of clients.

We know we don’t have the capacity to compete with market leaders in the industry, but we will ensure that the prices and quality of all the medical and surgical instruments and supplies that are available in our supply chain are competitive with what is obtainable in the industry.

  • Payment Options

The payment policy adopted by Phil Jason® Medical Supplies, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Phil Jason® Medical Supplies, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment via credit cards / Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for their purchases without any stress on their part.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have come up with a detailed budget for establishing a standard medical supplies business and here are the key areas where we will spend our start-up capital;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Phil Jason® Medical Supplies, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
  • The cost for warehouse remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory (stocking with a wide range of medical and surgical equipment, instruments and supplies from different manufacturing brands) – $550,000
  • The cost for the purchase of distribution trucks – $29,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs: $10,000
  • The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
  • The cost of launching a website: $600
  • Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our medical supplies wholesaling business in Cape Coral – Florida.

Generating Funds/Startup Capital for Phil Jason® Medical Supplies, Inc.

Phil Jason® Medical Supplies, Inc. is a private registered business that is solely owned and financed by Phil Jason and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Phil Jason® Medical Supplies, Inc. is to ensure that we continue to make available a wide range of medical and surgical equipment, deliver quality services, and improvise on how to do things faster and cheaper. We are not going to relent in providing a conducive environment for our workers.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our supply chain. We will not waste time in adopting new technology, best practices and diversifying our services.

Phil Jason® Medical Supplies, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the shop: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Compilation of our list of products that will be available in our supply chain: Completed
  • Purchase of supply trucks and vans: Completed .
  • Establishing business relationship with vendors – manufacturers and suppliers of medical and surgical equipment, instruments and supplies : In Progress

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Medical Supplies Business Plan Template & Guidebook

Starting a medical supplies business is an excellent way to serve a growing segment of the health industry and become your own boss in the process. With the #1 Medical Supplies Business Plan Template & Guidebook, you can create a step-by-step plan to help you launch and grow your business. From researching the market to setting goals and objectives and finding the right legal structure, this guidebook takes you through every step of the journey so that you can become a success in medical supplies.

Nick

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

  • How to Start a Profitable Medical Supplies Business [11 Steps]
  • 10+ Best & Profitable Medical Supplies Business Ideas [2023]

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

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

The first step to writing your business plan is to describe the purpose of your medical supplies 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 supplies business:

Our mission is to provide effective, reliable, and affordable medical supplies and services to both individuals and organizations, empowering them to confidently manage their own health and wellness. By delivering high-quality products and services, we strive to improve the quality of life of our customers.

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

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

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3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your medical supplies 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 supplies 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 supplies 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!

medical equipment business plan pdf

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 supplies business?

  • Business license
  • Medical Supplies
  • Computers and other office equipment
  • Business insurance
  • Employee payroll software
  • Point-of-sale system for tracking orders and inventory levels
  • Accounting software to manage accounts receivable, accounts payable and payroll
  • Certifications or other credentials required to operate a medical supplies business

5. Management & Organization of Your Medical Supplies Business.

The second part of your medical supplies 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 supplies 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 Supplies 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 supplies business varies based on many different variables, but below are a few different types of startup costs for a medical supplies 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 supplies 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 supplies 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 supplies 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.

medical equipment business plan pdf

Frequently Asked Questions About Medical Supplies Business Plans:

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

A business plan for a medical supplies business is needed to help plan operational and financial strategies, set goals and objectives, gain investor backing or financing, and act as a roadmap for the future of the business. It outlines the vision and goals of the business, the market it operates in, a detailed SWOT analysis, an evaluation of potential competitors, strategies for marketing and sales, financial projections, how the company will be structured and managed, profit margins, staffing requirements and other critical elements to ensure successful operations.

Who should you ask for help with your medical supplies business plan?

The best person to ask for help with a medical supplies business plan is an experienced business consultant or mentor who has experience in the medical supplies industry, as they will be best placed to provide you with expert advice and guidance. Additionally, you could seek advice from your local chamber of commerce or small business association, as they may be able to provide resources and insights.

Can you write a medical supplies business plan yourself?

Yes, it is possible to write a medical supplies business plan yourself. However, it is highly recommended to consult with an experienced professional who can provide guidance and support throughout the process. Additionally, there are a number of resources available online that can provide helpful tips, advice and information on writing a business plan, creating a financial plan, and understanding the legal aspects of running a medical supplies business.

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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.

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Medical Device Business Plan Template

Written by Dave Lavinsky

Medical Device Business Plan

Medical Device Business Plan

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

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

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

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Medical Device Businesses

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

Finish Your Business Plan Today!

How to write a business plan for a medical device business.

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

Executive Summary

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

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of medical device business you are running and the status. For example, are you a startup, do you have a medical device business that you would like to grow, or are you operating an established medical device business that you would like to sell?

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

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

Company Overview

In your company overview, you will detail the type of medical device business you are operating.

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

  • Class 1 medical device: This type of medical device is one that poses low risk to end-users and does not have too many regulatory controls. Stethoscopes and tongue depressors are some examples of Class 1 medical devices.
  • Class 2 medical device: This type of medical device could pose higher risk to end-users than Class 1, thus requiring the company to submit a Premarket Notification 510(k) form to the FDA before the product can be sold. Examples of Class 2 medical devices include catheters and surgical tools.
  • Class 3 medical device: This type of medical device poses more of a risk to the end-user than Class 1 or Class 2 devices. For this reason, companies selling Class 3 devices must go through a more stringent FDA approval before the product can be sold. Examples of Class 3 devices include cochlear implants and pacemakers.

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

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, the number of products sold, or reaching $X amount in revenue, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

The following questions should be answered in the industry analysis section of your medical device business plan:

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

Customer Analysis

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

The following are examples of customer segments: individuals, schools, families, and corporations.

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

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

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

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Competitive Analysis

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

Direct competitors are other medical device businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes alternative medical devices and other types of medical device retailers. You need to mention such competition as well.

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

  • What types of customers do they serve?
  • What type of medical device business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

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

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

  • Will you make it easier for customers to acquire your product?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

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

Marketing Plan

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

Product : In the product section, you should reiterate the type of medical device company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide surgical instruments, implants, or test kits?

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

Place : Place refers to the site of your medical device company. Document where your company is situated and mention how the site will impact your success. For example, is your medical device business located in a busy retail district, a business district, a standalone building, or purely online? Discuss how your site might be the ideal location for your customers.

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

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

Operations Plan

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

Everyday short-term processes include all of the tasks involved in running your medical device business, including answering calls, meeting with potential customers, scheduling shipments, billing customers and collecting payments, etc.

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

Management Team

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

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

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

Financial Plan

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

Income Statement

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

In developing your income statement, you need to devise assumptions. For example, will you keep 300 devices on-hand and will sell and restock your inventory every 3 months? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

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

Cash Flow Statement

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

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

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

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your business location lease or a list of medical devices in your inventory.  

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

Medical Device Business Plan FAQs

What is the easiest way to complete my medical device business plan.

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

Where Can I Download a Medical Device Business Plan PDF?

You can download our medical device business plan PDF here. This is a business plan template you can use in PDF format.

How Do You Start a Medical Device Business?

Starting a medical device business is easy with these 14 steps:

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

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

OR, Let Us Develop Your Plan For You

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

Other Helpful Business Plan Articles & Templates

Business Plan Template For Small Businesses & Entrepreneurs

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DME/HME Business Start-up Guide

The Durable Medical Equipment or Home Medical Equipment Business Start-Up Guide is the essential primer for anyone who plans on opening a durable equipment business. Step-by-step guidance and helpful forms assist you in quickly obtaining all necessary licenses and accreditations, including receiving Medicaid and Medicare approval specific to your state.

Areas covered include:

  • DME business licensure requirement
  • The licensure application process for DME business type and state
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The Durable Medical Equipment or Home Medical Equipment Business Start-Up Guide is available in e-book (instant download) format and paperback book.

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DME/HME Policies And Procedures Manual

Be inspection ready with the DME/HME Policies and Procedures Manual. This manual has all the sample policies and procedures ready to be customized to navigate the Medicare certification process. The book comes with cross-references that match the applicable accreditation standards.

The manual is compliant with the following accrediting agencies:

  • ACHC – Accreditation Commission For Health Care, Inc.
  • CHAP – Community Health Accreditation Program
  • The Joint Commission
  • Medicare Conditions of Participation (CoPs)
  • CMS Quality Strategy (CMSQS)
  • . and much more.

This manual is available in e-book (instant download) format and Flash Drive for easy editing.

medical equipment business plan pdf

DME/HME policies and procedures manual table of contents:

Section 1 - ethics, rights and responsibilities.

  • Advance directives
  • Foregoing or withholding life-sustaining treatment and/or resuscitation
  • Authorization to treat/informed consent
  • Authorization/agreement for services form
  • Authorization to treat form - mechanical ventilator
  • Authorization to treat form - apnea monitor
  • Authorization to treat form - enteral nutrition equipment
  • Client bill of rights policy
  • Client bill of rights and responsibilities
  • Code of ethics
  • Ethics committee
  • Confidentiality of client information
  • Confidentiality statement form - staff
  • Conflict in care
  • Conflict of interest
  • Experimental treatments
  • Client concerns/grievances
  • Client perception of care report form
  • Client concerns/grievance process flowchart
  • Non-english speaking clients - cultural considerations
  • Photographing/videotaping clients
  • Authorization and consent form - photograph and publication
  • Sensory impaired clients
  • Identification of person(s) responsible for care, treatment and service delivery
  • Clinical decision-making and financial incentives
  • Cms medicare dmepos supplier standards
  • Cms medicare dmepos estandares para suplidores

Section 2 - Provision of care, treatment and services

  • admission/assessment
  • Acceptance policy
  • Assignment of staff
  • Referral process
  • Referrals to other organizations/individuals
  • Assessment of clients
  • Physical assessment - respiratory services
  • Order intake form
  • Client abuse - adult
  • Client abuse - child
  • Suspected adult or child abuse report form
  • Planning care, treatment and services
  • Plan of care
  • Plan of treatment
  • Plan of treatment form
  • Plan of care form
  • Plan of care forms:
  • Oxygen equipment
  • Respiratory equipment
  • Apnea monitor equipment
  • Ventilator equipment
  • Infusion pump equipment
  • Providing care, treatment and services
  • Client emergency
  • Clinical respiratory services
  • Death in the home
  • Follow-up visits
  • Nutritional product storage
  • Medical supervision
  • Oxygen delivery systems
  • Oxygen concentrator training checklist
  • Oxygen concentrator maintenance checklist
  • Required emergency backup oxygen system for concentrator clients consent form
  • Pentamidine aerosol for treatment of pneumocystis carinii pneumonia
  • Traction and related traction services
  • Physician's prescription
  • Physician's telephone orders
  • Confirmation of physician's orders form)
  • Pneumocardiogram
  • Predischarge visits to clients in hospital
  • Pulse oximetry
  • Specimen collection
  • Telephone order taking
  • telephone and communication log
  • Tracheostomy care
  • Multidisciplinary client education
  • Client instruction
  • Aerosol therapy
  • Aerosol therapy training certification form
  • Aspiratory (suction unit)
  • Aspirator (suction unit) - installation and assembly instructions
  • Cardiopulmonary resuscitation
  • Disinfection of respiratory breathing circuits - instructions
  • Home equipment - instructions checklist
  • Humidifier cleaning instructions
  • Postural drainage therapy
  • Respiratory client education
  • Cpap/bipap client orientation checklist
  • Ippb training certification form
  • Clients who smoke with oxygen in use
  • Minor troubleshooting - oxygen concentrator
  • Nasotracheal and tracheostomy suctioning
  • Suction training instructions form
  • Discharge/transfer
  • discharge policy
  • discharge summary
  • discharge worksheet
  • discontinuance of service against medical advice form
  • home care services discharge summary form
  • transfers to other organizations

section 3 - medication management

  • Medication administration and transcription
  • Medication profile form "a"
  • Medication profile form "b"
  • Medication administration record form
  • Medication management - clinical respiratory services
  • Medication orders for clinical respiratory therapy
  • First dose medications
  • Drug reactions
  • Investigational medications
  • Infection control
  • Infection control definitions
  • Identification and reporting of infectious diseases
  • Standard precautions
  • Hand hygiene
  • Personal protective equipment
  • Personnel guidelines for use of personal protective equipment
  • Bloodborne pathogens exposure control
  • Report of exposure to bloodborne pathogens form
  • Bloodborne pathogens - post-exposure evaluation and follow-up
  • Hepatitis b vaccination policy
  • Employee health - employee illnesses
  • Infection control plan
  • Infection risk assessment
  • Exposure control plan
  • Organizational plan and response to a potential or actual infectious pandemic outbreak
  • Pandemic risk assessment tool for home care organizations policy
  • pandemic infection outbreak planning and preparedness risk assessment tool for home care organizations

section 4 - improving organization performance

  • Organizational performance improvement plan
  • Durable & home medical equipment - pi monitoring and evaluation plan
  • Durable & home medical equipment - pi trending sheet
  • Durable & home medical equipment - pi outcome evaluation
  • Durable & home medical equipment - pi volume measures/statistics
  • Performance improvement reporting form
  • Performance improvement committee minutes form
  • Corrective action plan form
  • Annual company evaluation
  • Incident reporting
  • Incident report form
  • Performance improvement department notification form
  • Product incident reporting
  • Product incident report form
  • Perception of care/satisfaction surveys
  • Perception of care/satisfaction survey form
  • Sentinel event review
  • Root cause analysis flowchart
  • Self-evaluation of service
  • Home care medical services self-evaluation diagram

section 5 - leadership

  • Scope of service
  • Services provided - hours of operations
  • On-call services
  • Geographical service area
  • Medical advisor
  • Communication of information
  • Client safety program
  • Organization and structure
  • Local management and administration (for companies with multiple locations, satellite offices, etc.)
  • Governance - board of directors/management company
  • Governance - sole proprietorship
  • Annual operating budget and capital expenditure plan
  • Professional advisory committee
  • Physician license verification
  • Staff recruitment, retention and education
  • Contracted services
  • Role of leadership in performance improvement
  • Registration process - sterilizer of bedding and upholstered furniture
  • Environmental safety
  • Employee safety/security
  • Employee job-related injuries
  • Electrical safety release form
  • Safety hazard surveillance
  • Security plan
  • Hazardous materials and waste plan
  • Hazardous materials emergency response communication
  • Identification, handling and disposal of hazardous materials
  • Emergency management plan
  • Bomb incident plan
  • Bomb threat report form
  • Detecting suspicious packages/letters
  • Natural disaster management plan
  • Terrorism response plan
  • Hazard vulnerability analysis
  • Emergency management - hazard vulnerability analysis worksheet
  • Fire safety
  • Fire drill report form
  • Safe medical devices
  • Medical device problem and recall
  • Utility systems management plan
  • Lockout/tagout procedures
  • Lockout/tagout training
  • Equipment delivery/receipt
  • Entering the client's residence
  • Equipment set-up procedure
  • After-hours delivery
  • Backup equipment
  • Delivery procedure
  • Delivery invoice
  • Receiving equipment
  • Sample tags
  • Pick-up procedure
  • Equipment and bed cleaning guidelines
  • Equipment maintenance and repairs
  • Non-routine (non-pm) equipment maintenance record
  • Preventive maintenance - apnea monitors
  • Nebulizer/compressor service / cpap/bipap service form
  • Preventive maintenance - feeding pump
  • Preventive maintenance - oxygen regulators
  • Vendor repair service
  • Equipment warranty policy
  • Return of purchased or rental equipment
  • Delivery route sheet form
  • Service call report form
  • Vehicles/drivers
  • Vehicle policy
  • Compliance with dot laws
  • Insurance coverage for employee-owned vehicles
  • Motor vehicle accidents
  • Motor vehicle accident report by driver form
  • Point system for vehicle accidents and moving violations
  • Company driver - motor vehicle violation report certification
  • Company driver - motor vehicle violation report certification form
  • Restrictions regarding vehicle use
  • Drivers transporting compressed medical gases (cmg)
  • Vehicle markings and appearance
  • Vehicle files
  • Vehicle maintenance/repairs
  • Vehicle preventive maintenance schedule log
  • Outfitting vehicles containing liquid storage units used for transfilling (stationary, portable or vehicle units)
  • Vehicles used to transport high-pressure medical gas
  • Operation assessments and hazardous manifest form
  • Bill of lading (hazardous manifest) form
  • Driver's vehicle use (driving) competency evaluation form
  • Sample of your state/county "written examination for drivers"
  • Compressed medical gas (oxygen)
  • Compressed medical gas compliance regulations
  • Oxygen equipment standards
  • Compressed medical gas record keeping
  • Oxygen/combustible gas storage
  • Delivery of compressed gas cylinders to client's home
  • Cmg cylinder delivery record form
  • Oxygen tracking log
  • Batch quality control log - liquid oxygen
  • Assigning batch and/or lot numbers
  • Equipment calibration
  • Oxygen analyzer calibration record form
  • Scale calibration record form
  • Inspections by fda
  • Liquid oxygen fda regulation compliance checklist
  • Master control record - bulk tank oxygen test
  • Labeling procedure
  • Liquid oxygen sample batch record tag
  • Sample precautionary label - liquid oxygen
  • Receiving procedure for liquid oxygen and high-pressure gas from supplier (not for bulk locations)
  • Oxygen testing procedures bulk tank locations - new shipment
  • Transfilling guidelines - oxygen cylinder
  • Hydrostatic testing standards
  • Oxygen cylinder pre-fill procedure
  • Oxygen testing procedures when transfilling cylinders - compressed gas (high pressure)
  • Transfill record form - compressed gas cylinder
  • Oxygen transfill inspection report form
  • Oxygen testing procedures for liquified gas in vehicle storage system
  • Filling (liquid oxygen) portable cryogenic vessels from bulk storage or vehicle storage systems
  • Filling of vehicle storage system
  • Handling oxygen products which do not meet specifications
  • Compressed medical gas storage - cylinders
  • Oxygen storage (bulk)
  • Refrigerated liquid oxygen form
  • Portable gas cylinders form
  • E cylinders flow chart

Section 6- Management of human resources

  • Position description/performance evaluation
  • Performance evaluation - age-related competency - dme operations manager
  • Annual competency clinical skills assessment - dme operations manager
  • Position description/performance evaluation - dme customer service supervisor
  • Performance evaluation - age-related competency - dme customer service supervisor
  • Annual competency skills assessment - dme customer service supervisor
  • Position description/performance evaluation - dme customer service representative
  • Performance evaluation - age-related competency - dme customer service representative
  • Annual competency skills assessment - dme customer service representative
  • Position description/performance evaluation - dme billing collection coordinator
  • Annual competency skills assessment - dme billing collection coordinator
  • Position description/performance evaluation - dme receptionist
  • Performance evaluation - age-related competency - dme receptionist
  • Annual competency skills assessment - dme receptionist
  • Position description/performance evaluation - dme marketing representative
  • Annual competency skills assessment - dme marketing representative
  • Position description/performance evaluation - dme respiratory care supervisor
  • Performance evaluation - age-related competency - dme respiratory care supervisor
  • Annual competency clinical skills assessment - dme respiratory care supervisor
  • Position description/performance evaluation - dme warehouse supervisor
  • Performance evaluation - age-related competency - dme warehouse supervisor
  • Annual competency skills assessment - dme warehouse supervisor
  • Dme driver/service technician
  • Performance evaluation - age-related competency
  • Annual competency skills assessment
  • Staff selection
  • Current licensure, certification and registration
  • Staff orientation checklists
  • Orientation checklists:
  • Administrative/management
  • Office staff
  • Driver/service technician
  • Home care clinical staff
  • Respiratory care - competency checklist
  • Infusion therapy - competency checklist
  • In-service and continuing education
  • Continuing education attendance record form
  • In-service attendance record form
  • Performance evaluations
  • Applications for employment

Section 7 - Management of information

  • Information management plan
  • Privacy and confidentiality of information
  • Unacceptable abbreviation and symbol list
  • Approved symbols and abbreviations list
  • Client record policy
  • Client record home care notes form
  • Client information form
  • Medical record audits
  • Durable medical equipment medical records audit form
  • Durable medical equipment record review summary form
  • Answering service

Customized HME/DME Policies And Procedures Manual

Don’t worry about creating your own DME business policies and procedures. Have us do it for you! We have over 18 years of experience in building our accreditation focused Customized HME/DME Policies and Procedures Manual. 

The policies we write will meet current CMS quality standards and accreditation requirements. When you purchase our service, you complete a brief questionnaire during which we gather essential information about company. One of our experts will then review your responses, call you to discuss the requirements if we have any questions, and then create and deliver a comprehensive manual tailored to your HME/DME company. We also include your company-specific information such as name, logo, and much more. Our quality assured five-step review process ensures that your book will be accurate and up to date. A simple cross-reference guide is provided to match and successfully fulfill all the requirements.

The Customized HME/DME Policies and Procedures Manualis available in e-book format for initial review and use by your team, and a hard copy 3-ring binder for licensing or accreditation review and approval.

medical equipment business plan pdf

Infusion Policies And Procedures Manual

The Infusion Policies and Procedures Manual was developed for agencies to comply with the latest version of Infusion Nursing Standards of Practice. It’s crucial for every hospital, home healthcare agency, long term care, and skilled nursing facility, and clinic to comply with these standards and to update their policies on infusion.

The Infusion Policies and Procedures Manual are customized by certified consultants to comply with state, federal, and local laws and accreditation standards, including:

  • URAC’s Medicare Home Infusion Therapy Supplier Accreditation; or
  • ACHC Home Infusion Therapy Accreditation; or
  • JCAHO Home Infusion Pharmacy Accreditation.

This manual also comes with optional training to explain the regulatory and policy guidelines and to review the frequent changes to URAC, ACHC, or Joint Commission standards that may impact your processes or workflows.

The Infusion Policies and Procedures Manual will address Infusion Standards, Procedures for Home Infusion, Parenteral Pain Management, Administration of Inotropic Therapy, Total Parenteral Nutrition, Anti-Microbial Administration, Vascular Access Devices, Pediatric Infusion Therapy, and Competency Evaluation Program, Human Resources, Financial Management, Billing and much more.

This manual is available in e-book format for initial review and use by your team, and a hard copy 3-ring binder for licensing or accreditation review and approval.

medical equipment business plan pdf

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Top 10 Medical Supply Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)

Top 10 Medical Supply Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)

Deepika Dhaka

author-user

All healthcare practitioners, ranging from veterinarians and midwives to ophthalmologists, require specialized equipment to perform their duties. Typically, these essential medical supplies are procured from specialized companies focusing on specific equipment types. Despite the presence of well-established medical supply corporations, smaller independent medical supply businesses have the potential to thrive within this industry. Why?

The demand for medical supplies experienced a significant increase due to the pandemic and our aging population. Over the past decade, this has led to a 50% market expansion. Initiating a medical supply enterprise involves collaborating with manufacturers and distributing medical supplies at resale prices through online platforms, physical stores, or your own retail space. Operating online or by directly servicing healthcare facilities enables you to run the business from the comfort of your home, offering a lucrative opportunity, even as you meet the critical needs of caregivers and patients with life-saving equipment. But, before you get started, it is essential to gain a comprehensive understanding of how to launch and manage a successful business. This is why you need to create a well-researched business plan. 

On this note, enter SlideTeam’s Medical Supply Business Plan Template. We present a full-fledged business plan ppt covering crucial elements of attracting investors and stakeholders and launching a successful business. Let’s see what it offers!

Table of Contents

  • Executive Summary
  • Company Overview
  • Industry Analysis
  • Customer Analysis
  • Competitor Analysis
  • SWOT Analysis and Porter’s Framework
  • Operational Plan
  • Financial Plan
  • Management Summary

You will get a 57-page file in PDF, Word, and XLS format that will help you assess the feasibility of your venture, raise funds from investors/banks, plot your course and focus your efforts, enter a new market, and launch a new product/service. Whether you want assistance for prescription drugs distribution strategy, retail pharmacy business strategy , or a typical chemist store business strategy, this document is fit for all because of its customizable features.

Also, if you are looking for a Pharmacy Business Plan in a PowerPoint Format, you must explore this handy template with well-researched content and visual graphics. Click Here.

Pharmacy Business Plan

Download it now!

1. Executive Summary

Including an executive summary in your Medical Supply Business Plan is crucial because it provides a snapshot of your business to potential investors, partners, and lenders. It's like the cover of a book – it grabs their attention, highlights key details, and helps them assess the business's viability. In the competitive healthcare industry, a well-crafted executive summary is your elevator pitch, summarizing your unique value proposition (USP), market opportunity, financial projections, and why your drugstore start-up plan is a worthwhile investment. 

In the executive summary section of our Medical Supply Business Plan Template, you will get:

1.1 The Quick Pitch: A concise and engaging statement that captures the essence of your chemist store business, designed to pique interest.

1.2 The Entity: An introduction to your business's legal structure and ownership, providing a snapshot of your organizational setup and key personnel.

Executive Summary

Download this Business Plan

2. Company Overview 

This section serves as the blueprint for your business, helping you and potential investors grasp your mission, vision, and the core values that underpin your operation. It provides a glance of your business structure and key players, instilling confidence and ensuring clarity in a field where precision and trust are paramount. 

In the company overview section of the Medical Supply Business Plan, you will find templates for:

2.1 Vision and Mission - Defining the overarching purpose and goals of your business.

2.2 Company Goals and Objectives - Setting clear milestones and targets to measure your business's progress.

2.3 Start-up Summary - Providing a snapshot of financial essentials required to launch your venture.

2.4 Market Gap and Business Statement - Identifying unmet needs in the market and articulating your core business message.

2.5 Services Offered - Detailing the range of medical supply services your business will provide.

2.6 Key Success Factors - Outlining critical elements that will drive the success of your medical supply business.

Company Overview

Here’s another blog with Top 5 Pharmacy Business Plan Templates containing content-rich pages with the latest data and insights.

3. Industry Analysis

The Industry Analysis section provides a realistic roadmap for entrepreneurs with its insights into market trends, regulations, and competition. It's an essential tool for those planning to start this business as it helps identify opportunities, navigate regulatory hurdles, and adapt to evolving healthcare needs. Without it, entering the medical supply industry is like performing surgery in the dark, leaving your business vulnerable to unexpected challenges and missed opportunities.

The industry analysis part of this Pharmacy Supply Services Plan includes templates for:

3.1 Market Analysis - Revealing the dynamics and potential of the pharmacy supply market.

3.2 Market Trends - Highlighting current and emerging trends influencing the industry.

3.3 Major Challenges - Identifying key obstacles that businesses in this field must navigate.

3.4 Growth Drivers - Pinpointing factors propelling the growth and success of pharmacy supply services.

3.5 Geographical Analysis - Analyzing location-specific factors that affect business operations.

Industry Analysis

4. Customer Analysis

Incorporating a Customer Analysis in your Medical Supply Business Plan or even Online Pharmacy is like fitting a customized medical brace – it ensures a perfect match between your offerings and the healthcare providers who rely on them. This section is essential for aspiring business owners as it delves into understanding your target customers, their specific needs, and buying behaviors. It enables you to tailor your product range, pricing, and marketing strategies to meet these requirements, ensuring that healthcare professionals turn to your business as their trusted supplier. Without it, you risk offering generic solutions in a field that demands precision, causing your business to miss out on critical opportunities and strong customer relationships.

In the Customer Analysis Section of this business plan, you will find templates for:

4.1 Target Market - Identifying the specific healthcare providers your business aims to serve.

4.2 Buyer Persona - Creating detailed profiles of your ideal customers understanding their preferences and behaviors.

4.3 Market Sizing - Gauging the potential size and value of your customer base to discover growth opportunities for your medical supply business.

Customer Analysis

We also bring you this rich collection of Medical Marketing PowerPoint Templates to help you publicize your online or physical drugstore business well. These layouts are completely editable and are designed with colorful and vibrant infographics. 

5. Competitor Analysis 

Customer Analysis is crucial for prospective business owners as it unveils the strengths and weaknesses of existing competitors. It helps identify market gaps, potential partnerships, and areas to differentiate your services in this competitive industry. 

In the Competitor Analysis section of this Medical Supply Business Plan, you will find templates for:

5.1 Major Players - Identifying and profiling key competitors in the medical supply industry.

5.2 Attributes Comparison - Evaluating and comparing the strengths and weaknesses of competitors to guide your strategy and differentiation.

Competitor Analysis

6. SWOT Analysis and Porter’s Framework

These strategic tools are essential because they provide a comprehensive and practical understanding of your business environment. The SWOT Analysis delves into your internal strengths and weaknesses, along with external opportunities and threats, helping you craft a tailored strategy to leverage advantages and address challenges. Meanwhile, Porter's Five Forces Framework assesses the competitive landscape, identifying supplier power, buyer power, competitive rivalry, threat of substitution, and threat of new entrants. This knowledge equips you to address industry dynamics, safeguard profitability, and thrive in a highly regulated and competitive sector. 

In this business plan section, we provide a pre-designed SWOT Analysis Template and Porter's Framework Template , facilitating a strategic evaluation of the medical supply business. These tools help you identify strengths, weaknesses, opportunities, threats, and competitive dynamics to make informed decisions and ensure long-term success.

SWOT Analysis and Porter's Framework

7. Marketing Plan

A marketing plan outlines your strategies for reaching healthcare providers. This plan includes your approach to marketing, medical trade shows, and relationships with medical professionals, ensuring your business gets noticed and trusted. Without a clear marketing strategy, you're like a medication without proper dosage instructions - your business may have the potential, but it won't reach its full efficacy, risking obscurity in a crowded healthcare industry.

In the Marketing Plan section of the Medical Supply Business Plan Template, you will find templates for:

7.1 Sales Strategy - Outlining a comprehensive approach to drive sales for your medical supply business.

7.2 Promotional Strategy - Detailing strategies to promote your products effectively within the healthcare sector.

7.3 Pricing Strategy - Defining competitive pricing structures for your medical supplies.

7.4 Sales Funnel - Mapping the customer journey from awareness to conversion, optimizing your sales process.

Marketing Plan

8. Operational Plan

The operational plan is vital as it outlines how your business functions, covering aspects like inventory management, supplier relationships, and staffing. It provides an achievable roadmap for efficiency and cost-effectiveness in sourcing, storing, and delivering medical supplies, which is crucial in the healthcare industry. 

Additionally, our Medical Supply Business Plan Template's Operational Plan section includes a dedicated page for the milestones , helping you track progress, celebrate achievements, and maintain accountability as you navigate the complexities of this sector. Without such a plan, your business could face inefficiencies and errors and potentially jeopardize the quality and timely delivery of crucial medical products.

Operational Plan

9. Financial Plan

The financial plan covers startup costs, revenue projections, and cash flow management, which are crucial in a capital-intensive industry like healthcare. Moreover, potential investors and lenders rely on this plan to gauge the financial viability of your business, making it a key tool for securing funding. 

In the Financial Plan section of this business plan, you will get templates for:

9.1 Financial Assumptions - Laying out the key financial expectations driving your medical supply business.

9.2 Revenue Model and Sales Forecast - Projecting income sources and expected sales over time.

9.3 Break-Even Analysis - Determining the point where your business becomes self-sustaining financially.

9.4 Projected Profit and Loss Account - Offering a comprehensive overview of your anticipated financial performance.

9.5 Projected Cash Flow Statement - Charting the inflow and outflow of funds to manage your finances effectively.

9.6 Projected Balance Sheet - Showcasing your business's financial position at a given point in time.

9.7 Scenario Analysis - Planning for business scenarios to ensure financial flexibility.

9.8 DCF Valuation - Calculating the intrinsic value of your medical supply business using discounted cash flow analysis.

Financial Plan

10. Management Summary

Management Summary introduces the key personnel responsible for steering your business toward success. It provides a snapshot of their qualifications, expertise, and roles, instilling confidence in potential investors and stakeholders. It also demonstrates the collective knowledge and experience required to navigate the complexities of the healthcare industry. Without a solid Management Summary, your medical supply business may lack the capable leadership it needs, leading to operational inefficiencies, compliance issues, and a lack of strategic direction.

The Management Summary section of this business plan includes feature-packed templates for:

10.1 Organizational Structure - Defining the hierarchy and roles within your medical supply business.

10.2 Professional Summary - Presenting concise yet compelling profiles of key team members, highlighting their expertise.

10.3 Roles and Responsibilities - Outline each team member's specific duties and responsibilities to ensure smooth operations.

Management Summary

The Best Business Plan Available on the Internet

Our all-encompassing Medical Supply Business Plan is your holistic solution, featuring finely tuned templates, expert guidance, and a proven roadmap for entering in this pivotal sector. This is your moment to secure the future of your physical storefront or online pharmacy investment. Download it now to get started and equipped to deliver vital medical supplies. 

Don’t forget to subscribe to our monthly, semi-annual, or annual plan to access these premium resources.

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Sample Medical Supply Business Plan

Medical supply business plan pdf sample.

Do you wish to start or franchise a medical supply business?

One of the most important things you’ll need is a plan that guides your operations.

As such, this medical supply business plan sample will prove useful in helping you create a comprehensive plan for your business operations.

Medical supplies could be bought from a variety of niche companies. These range from equipment to consumables which are then sold to hospitals , nursing homes , health aides, etc.

Without further delay, let’s get to business.

Executive Summary

EZ Medicals is a medical supply company that specializes in the supply of a variety of medical equipment.

These range from life support equipment, medical laboratory equipment, diagnostic equipment, treatment equipment, and durable medical equipment. These are broad categories consisting of lots of other sub-categories.

We are located in Tallahassee and serve medical establishments within and around Florida.

Although currently located in Florida, we hope to soon open up new outlets in the neighboring states of Georgia and Alabama.

Our Services

As a medical supply business, EZ medicals deals in a long list of medical supplies that include hospital beds, manual and electric wheelchairs, mobility assistive equipment (like canes, walkers, and crutches) as well as traction equipment.

Others include oxygen ventilators and concentrators, pressure mattresses, breast pumps, insulin pumps, patient lifts, nebulizers, kidney machines, bili lights & blankets as well as stationary & portable oxygen tanks among others.

These medical supplies are sourced from reputable manufacturers and supplied to a wide range of medical facilities and personnel.

At EZ medicals, we are growth-driven and seek to expand our current capacity within a short time.

We seek to grow beyond our current location to cover more cities across Tallahassee as well as the neighboring states of Alabama and Georgia.

Our Mission

Our mission at EZ Medicals is to provide state-of-the-art medical equipment from top manufacturers. Thus, making positive contributions to quality healthcare.

We aren’t only profit-driven, but also seek to impact the quality of healthcare services available to people in need of them.

Capital Requirement

The medical supply business is capital intensive and requires significant investment. Thus, adequate financing is required. We’ve been in operation for over 5 years and seek to embark on further expansion.

Such expansion will include opening up and serving more locations.

We’ll be setting up shop in other major cities in Florida like Miami, Orlando, Tampa, and Jacksonville. The cost of such an expansion drive will amount to about $5,000,000.00.

We’ll be applying for a loan with Wells Fargo Bank. This is a trusted financial institution and business partner.

By taking advantage of the current low-interest-rate regime, we hope to create a reliable funding strategy for our expansion plans.

SWOT Analysis

Despite the many successes we’ve had over the years, such has not come without corresponding challenges. Nevertheless, the positives have far outweighed the negatives.

Also, we have sought to identify our underlying strengths and weaknesses to help consolidate the gains made.

To achieve this, a reputable business consulting firm was hired to analyze key areas that include strengths, weaknesses, opportunities, and threats.

The following results were obtained;

The strength of our operations as a medical supply business stems from our industry experience.

Also, our thorough knowledge, expertise, and established contacts with both product manufacturers and end-users have placed us at an advantage over a lot of competitors.

These have proven to be crucial to our growth plans, with a reliable brand being created as a result. We see this as a starting point and are poised to further consolidate on the gains made to grow our operations.

Our weakness lies in our limited financial strength as a company. This has restricted our ability to compete favorably with bigger and more established medical supply brands within Florida.

However, we’re a work in progress and hope to surmount these challenges with the right partnerships in addition to the implementation of effective growth strategies.

Opportunities

Opportunities in the medical supply industry are massive. There’s a growing demand for medical supply services across the United States.

While sourcing this equipment from both domestic and foreign manufacturers, we have plans of entering into manufacturing. This will be in partnership with existing companies to further consolidate on gains made.

A financial crisis is likely to up-end the smooth operations of our medical supply business. Although this is a real threat, the good news is that it doesn’t happen all the time.

Plus, we are seeking effective ways to handle such problems to limit the negative fallout and impact such well have on our business operations.

Competitive Advantage

The medical supply industry is a highly competitive one. This means that lots of other medical supply businesses exist. At EZ Medicals, we aren’t afraid of competition.

Rather, we see this as an opportunity to grow and expand our services to meet global best practices.

We’ve identified our areas of strength include our thorough understanding of the industry in addition to our expertise. We’ve been able to establish strong relationships with medical supply manufacturers as well as end-users.

This has helped to ensure that we stay ahead of our competition with lots of incentives at our disposal to impact positively on our overall operations.

  • Sales Projection

To guarantee profitability as a business, we are determined to adopt a wide range of marketing strategies. These will enhance our overall sales.

Within three years  of implementing our expansion plans, we hope to see a significant jump in our revenues as seen in our projected sales;

  • First Fiscal Year $700,000.00
  • Second Fiscal Year $1,500,000.00
  • Third Fiscal Year $3,600,000.00

Marketing and Sales Strategies

Marketing our medical supply business will take different forms. This will include direct marketing to our clients, creating targeted ads about our business in addition to setting up a world-class marketing department.

This arm of our business will constantly create effective campaigns that promote our operations and services.

There you go! This medical supply business plan sample has touched on the key areas that must be included in a good plan. Without a great plan, your medical supply business will hardly perform or meet expectations.

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18+ Best Medical Business Plan Examples & Templates [Download Now]

medical business plan examples and templates

You cannot start and run a successful medical business without writing and implementing a comprehensive business plan.   A business plan gives you a complete framework for researching and analyzing the market, identifying possible opportunities, financing the project, and scaling it all together. Here are some of the best examples of medical business plans worth having a look.

Medical Practice Business Plan Template

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Best Medical Business Plan Examples & Templates

 medical business plan example.

1

Size: 8.86 MB

If writing a medical business plan were easy, every business aspirant would do it with ease. To be clear, a comprehensive business plan for a new healthcare facility takes time to put together. But, what if you are green in this in the first place? The best thing to do is to look at a sample plan to get a clear picture of what a comprehensive strategy for a health facility looks like. This PDF file is a unique sample of a well-written business strategy for a healthcare facility. The plan covers everything you need to know about establishing a healthcare center, from business objectives and guiding principles to demographic analysis and their access to care.

Printable Medical Business Plan

2

Size: 780 KB

It doesn’t make sense to start a medical business without a strategy in place. You need to identify your audience, sturdy the market, conduct a SWOT analysis , and develop a marketing technique. This calls for a comprehensive business plan and here is an example that you can download and use as a guide to writing your own strategy. This sample will help you to understand a few things. First, you’ll learn how to write a clear summary of the proposed medical business. Second, you will see what a detailed business description looks like. Third, you will dive deep into learning and understanding the competition. Then, you will learn about financial strategy, which is important for starting and running a healthcare business at scale.

Free Medical Business Plan Example

3

Size: 88 KB

It is important to understand that a business plan does not have to be complicated. It doesn’t have to be dozens or hundreds of pages either. In fact, you can set up and run a successful medical business with a very simple business plan . This PDF document is an example of a very simple business strategy, which a clear indication that even lean business plans can help you take a step in the right direction. This plan covers a number of sections, including an executive summary for the proposed business, proposed services, market evaluation, and marketing approach. Click the link above to download the PDF file.

Medical Practice Business Plan Example

4

Size: 237 KB

This PDF document is one of the most comprehensive medical business plans that you can read to understand what a professionally written business strategy looks likes. The 37-page file features a unique outline, which makes the entire document easy to scan. This file has a lot of information. From the executive summary and market sturdy to SWOT and market analysis , there is quite a lot to learn. The author uses a simple language throughout the document. So, whether you are green to writing a business proposal or you just need a simple example for reference, this is a good template to download.

Medical Startup Business Plan Example

5

Size: 219 KB

You cannot start and run a successful business without a plan. In fact, many businesses that begin to operate without a strategy often close within the first six months. This happens across various industries, even in medical business. Now that you have made up your mind to start a medical business, you first need to write a business plan. If you have never written one before, don’t worry. You can just download this PDF file, read the entire strategy example, and then use the same knowledge that you pick from it to write a comprehensive business plan of your own. Click the link above to download this template.

 Medical Business Plan Example for Clinic

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Size: 262 KB

Ask every serious entrepreneur what it takes to start and run a successful business and they’ll tell you that the first thing you need is a business plan. This tells you that a successful business depends on a comprehensive strategy . Now that you have made up your mind that it is time for you and your stakeholders to start a clinic in your locale, it’s important to write a business plan before investing money in the project. The plan will enable you to determine whether the business is feasible to pursue. By finding, connecting with, and studying the target market, it becomes easy to understand your business even before starting it. Download this medical plan for the clinic to learn more.

 Private Hospital Business Plan Example

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Size: 2.15 MB

Even if you have enough funding to start a private hospital, you’ll need to do in-depth research and then come up with a solid business plan that will help you set up the enterprise. At the end of the day, your goal is to run a successful business . This is something you can’t do if you start with a proper strategy. Remember, the success of your private medical startup will depend on the structure of the plan. The success of the upcoming business will depend on the structure of the plan. In other words, a business plan is a must-have.

 Simple Medical Business Plan Example

8

Size: 141 KB

You already know that it is difficult to run a successful business without a plan. So, if you want to set up a new medical facility in your area, first start by writing a business plan for the foreseen startup. The PDF file above is a unique example of a business plan that you can use for reference. This guide is important because it focuses on the most important elements that make up a comprehensive business plan.

 Comprehensive Business Plan for Medical Facility

9

You can use this sample template to write a comprehensive business plan for a medical facility. Some of the highlights include identifying challenges and determining their respective opportunities. This gives you a clear understanding of the market that you would like to target so that you can align your medical services to their needs once you start operation.

 Short Medical Business Plan Example

10

Size: 264 KB

If you are the kind of a medical business enthusiast who prefers to write a short business plan, this example is suitable for you. The content of the file includes an executive summary, market analysis, business growth, marketing strategy, and financial projection.

medical equipment business plan pdf

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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.

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Medical Equipment Developer Business Plan

Start your own medical equipment developer business plan

Medquip, Inc.

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

Medquip, Inc. is a medical device development company that intends to design, patent, and market medical devices related to endoscopic surgical niche markets. Three devices have already been designed with the participation of leading physicians and surgeons in gastroenterology. Seven patents are initially incorporated. The company projects $16 million in sales in year three. The company expects to have $50 million in revenue by year five. Patent applications on its first three market entries have already been accomplished using a top patent law firm.

The market segments are clearly defined and all are subject to a high growth trend. One market is projected to exceed $160 million in the next three years. That is the endoscopic variceal ligation market. One of the founders of Medquip participated in the design of the current market leader in that field and has improved upon the product significantly. Another market addresses a well-defined and unanswered need in endoscopic surgery: the clearing of fundal pools of blood and tissue during surgical procedures. A new and innovative design has been created to answer the needs of surgeons.

This market should begin at $20 million but could expand to several hundred million as soon as approvals are obtained for many varied surgical procedures. Medquip intends to license this technology to a larger company. The company becomes mature in year three. The company is potentially profitable in year one only if a proposed licensing agreement can be closed.

The mission of Medquip, Inc. is to design, develop, and market new patented technologies in the medical device field. The technologies will fill market niches that each account for a minimum of $20 million dollars in potential sales. Each technology will fill a current need in medical procedure by improving upon an existing technology or device, or by designing a device to serve a need that is clearly defined and acknowledged by medical professionals. Each product shall be priced to appeal to a managed-care market that stresses lowest cost of total treatment parameters.

Medical equipment developer business plan, executive summary chart image

Keys to Success

The keys to success for Medquip, Inc. are as follows:

  • Initial capitalization obtained.
  • All patent applications filed.
  • The ability to generate early revenue from non-regulated markets in Europe.
  • Licensing at least one technology and application to a major medical device corporation.
  • Getting low interest loans and/or grants to fully fund product development and prototype manufacture.
  • Recruiting top-notch CEO prior to second round financing and market roll-out.
  • Successful 510k approval from FDA to market Visi-Band in the U.S.
  • Successful implementation of sales and marketing plan to U.S. managed care market to obtain a minimum 10% market share in the second full year to generate $16 million in revenue.
  • Increased product development and continued market share gains to produce a $50 million revenue company by year five.

The principal objectives of Medquip, Inc. are as follows:

  • To achieve a 10% market penetration in the endoscopic variceal ligation market by year three.
  • To achieve $16 million in revenue by year three.
  • To raise $1 million in private seed capital in the first six months.
  • To win low interest loans and grants from the government of Puerto Rico totaling $1.2 million in year one.
  • To license its technology for the obliteration/suction/irrigation market for $1 million dollars in year one.

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

Medquip, Inc. will develop and market endoscopic medical devices through multiple distribution channels both foreign and domestic. The company is currently developing its patent-applied technologies to final product and approval stage. It is also seeking to establish its corporate identity in the medical products field. Growth strategy calls for one joint venture license as well as the following objectives:

  • Complete the patent process.
  • Establish corporate identity, brand names, trademarks.
  • Establish a medical advisory board.
  • Build staff, infrastructure, and retain consultants for trial and compliance issues.
  • Conduct animal trials.
  • Prepare for FDA clinical trials.
  • Continue R & D and product development.
  • Explore options for 2nd round financing (venture capital, corporate alliance, licensing, public offering) to maximize value to shareholders.

Note: Management believes that accelerated FDA approval process will be available on the band ligation device since it involves only modifications on an existing, approved device. There is past precedent in 510k approvals (in an average of 3 months) in documented cases.

Start-up Summary

The key elements in the Start-up plan for Medquip, Inc. are:

  • The legal expense for filing all patent applications.
  • The establishment of Corporate Identity.
  • The location and place of doing business.
  • Funding of additional capital raising alternatives.
  • Salary for the two key managers and founders.
  • Formulation of Strategic Plan. Costs of raising capital through private placement.

$215,000 was raised from the initial two investors for these purposes. This funding came in in early 1998 and these tasks have either been completed successfully or are in the final process of completion. These are treated purely as start-up expenses by this plan.  $128,000 is treated as cash-on-hand as of the start of this plan on January 1, 1998. The remainder of the start-up capital required as well as capital required for the continuation of operations in the first six months will be provided by selling the shares in the private placement. The capital obtained from these sales is expected to total an additional $850,000 and the plan calls for this cash to be infused in May and June, 1998.

Medical equipment developer business plan, company summary chart image

Company Ownership

Medquip, Inc. is a South State “C” corporation.

Its founding shareholders are:

Eric Smith (2,545,000 shares) Timothy Jones (500,000 shares)

At the date of this plan, two additional shareholders are of record:

Arthur C. Clark (50,000 shares) Genesis Corp. (14,000 shares)

Company Locations and Facilities

Medquip, Inc. business offices are at 1234 Main Street, Anytown, U.S.A. Phone is …. Fax is …. These offices are leased month-to-month on a temporary basis. This business plan calls for the establishment of corporate offices, R&D facilities, and prototype and small-run manufacturing facilities. These facilities are to be located in Puerto Rico with 10,000 sq. ft. initially expandable to 30,000 sq.ft. Rental costs in Puerto Rico range from $1.75 to $4.00 per sq. ft. Currently available space in Puerto Rico may also be used on a joint-venture basis to be negotiated.

Medquip, Inc. will initially market three distinct products.

  • The Visi-Band, a disposable device that is used in endoscopic variceal ligation procedures.
  • The Visi-Gator, a partially disposable device that is used to remove blood clots during various endoscopic surgical procedures.
  • The Visi-Lyser, a suction/irrigation device for laparoscopic procedures.

The technology used in these products is the subject of seven patents in the application process.

These three product areas may be more generally defined as follows:

  • Endoscopy Devices–used for esophageal variceal ligation, hemorrhoidal ligation . The Visi-Band: Consisting of ligating bands with greater stretchability and grip (Super-Elastic bands incorporated into a multi-band dispensing device).
  • Endoscopy Devices–used for lysis (tissue dissolving). The Visi-Gator: Consisting of a rotary cutting tool to clear fundal pools of blood in the stomach.
  • Endoscopy Devices–used for suction/irrigation and tissue removal. The Visi-Lyser: Consisting of a suction/irrigation tool to remove tissue effectively.

Product Description

A detailed and technical description of the Medquip, Inc. initial product line follows:

Multiple Ligating Band Dispenser: The Visi-Band

Application is endoscopic variceal ligation which is a rapidly growing surgical procedure quickly replacing sclerotherapy for the removal of polyps in both upper and lower gastro-intestinal exploration.

Scope: This innovation applies to the internal technology of ligating bands independent of the dispenser or delivery system. Visi-Band is a pre-loaded delivery device for applying multiple ligating bands remotely from the distal tip of an endoscope. (The leading current product in this category is the Speedband made by Boston Scientific).

Clinical Advantages: A perceived clinical advantage of these bands is ligation of a greater range of tissue sizes with a single band. These ligating bands stretch easily over the largest tissue to be ligated and yet will grip securely even the tiniest tissue to be removed. These bands can have an inner diameter near zero so that even tiny varices are gripped firmly.

Current State of the Art Technology: Market-leading bands today are molded of homogeneous rubber materials. Material properties of elasticity have limited the stretch of conventional ligating bands to a range of about seven-fold. A typical market-leading band for esophageal variceal ligation has an inner diameter of 1.8mm. This band can stretch to a maximum inner diameter of 12.4 mm to ligate a varix. This maximum size roughly corresponds to the endoscope diameter. A varix of 1.8 mm would not be ligated because the band would be loose around the tissue.

Medquip Technology: The Super-Elastic Band innovation effectively engineers the band material stresses in a way that increases the apparent stretchability of the band many times. We have created bands with proximate zero inner diameters, which can be stretched at least as large as conventional bands with large inner diameters. Bands created with this technology can also hold their elasticity for longer periods of time. The basis of our technology is an internal compressive pre-stress at the band inner diameter. This can be achieved in at least five practical ways covered in our patent documentation. The true zero inner diameter band is a result of the compressive forces creating small scale creasing or wrinkling which fill the band interior. Bands made to date exhibit an effective elasticity of 20 times and more versus the seven times stretch in the market-leading band.

Medquip ligation devices should have an unprecedented and superior range of application to meet ligation requirements. Super-Elastic Bands can mean fewer special sized devices to manufacture, purchase, specify, and stock. This fits well in a managed-care environment through lower costs with inherent clinical advantages. Medquip and the health care system could benefit from higher volumes of a smaller number of different products.

Further Clinical Advantages:

  • Visi-Band is designed for multiple band ligations with a single scope insertion.
  • Visi-Band delivers maximum visibility with zero “tunnel vision” during insertion and exploration, a limitation of all competitors.
  • Visi-Band delivers maximum mobility by being nearly flush with the distal end of the endoscope during insertion and exploration.
  • Visi-Band should be significantly faster to install to the endoscope by having many fewer assembly parts and steps than the competition.
  • Visi-Band is smaller in diameter than Speedband for patient acceptance and comfort.
  • Visi-Band patient entry is smoother and protected at all times from miss-fires by a smooth, transparently clear outer shield.
  • Visi-Band can ligate smaller varices with the super-elastic bands as described above.
  • Visi-Band can be supplied in a single configuration with multiple bands, seven or eight, at a cost similar to the competition’s three or six band unit.

Note: Today’s multiple ligating band dispensers release bands off a tube at the distal endoscope end with typically two filaments for each band. This tube is at least as long as the endoscope diameter and creates severe “tunnel vision” because the bands typically cover the outside surface of the clear plastic tube. This added length also reduces the mobility of the distal tip. Each filament must be precisely assembled and triggered for each band. Bands exposed on the outside of the tube are prone to miss-fire as evidenced by a clear shield with instruction to remove just prior to insertion into the patient. A conically tapered dispenser is typical and necessary to help bands roll off the distal end. This taper increases the diameter of the ligating unit. Installation is a complex, multiple step process often involving a separate ligating unit, handle unit, a trip wire, scope fastener, and irrigation catheter. Actuating a competitive unit can cause the distal tip to move from the tension of the trip wire.

Medquip Technology: The Medquip Visi-Band multiple band ligator is planned to have two components, the ligating unit and handle. The Ligating Unit comprises a clear tubular base with bands stretched around the distal end, a clear sleeve outside of and concentric with the base, and a trip tube which passes through the biopsy channel of the scope. The ligating unit mounts in a retracted position around and substantially flush with the distal tip of the endoscope. The ligating unit is placed on the distal tip of the scope by pushing the trip tube through the biopsy channel. The handle is then snapped on the free end of the trip tube. The unit is extended distally prior to ligation, and the sleeve is moved axially to load then deliver a single band at a time. No individual filaments are required for each band so manufacturing cost is low. The unit is “digitally” actuated by repeated axial motion of the sleeve rather than small incremental displacements. The tip of the scope should not move because a compressive force in the tube cancels the tension in the trip wire internal to the trip tube.

Summary of advantages over currently available products:

  • Better visibility due to side-mounting of band dispensing device.
  • Smaller band, more stretch, enabling banding of smaller varices.
  • Internal loading of bands, enabling protection (bands are not dislodged).
  • Capable of carrying more bands (8 vs. 6).
  • Significant reduction in manufacturing and assembly costs.

Lysis (tissue dissolving) Rotary Cutting/Suction Tool: The Visi-Gator

Applications include the removal of blood clot and stray tissue during suction irrigation in laparoscopic surgery, examination of bleeding ulcers in the stomach, hematoma, clot in the fallopian tube, or cerebral aneurysm. Current solutions employ crude tubes that incorporate a few holes for anti-clogging combined with drug treatments which are largely ineffective.

Scope: An uncleared fundal pool of retained blood in the stomach precludes complete visualization of the stomach in 5.6% of cases of acute upper gastrointestinal bleeding. According to an October 1997 article in Gastrointestinal Endoscopy: “In conclusion, the results of this study provide evidence that the inability to clear a fundal pool of blood at the time of emergent upper endoscopy for acute UGI bleeding is associated with substantial morbidity and mortality and … Aggressive mechanical and/or pharmacological measures to clear the fundus of blood are warranted in patients undergoing urgent endoscopy for acute UGI bleeding.”

Clinical Advantages: The Visi-Gator tool may be inserted from the outside into the biopsy channel of the endoscope as needed. The scope does not need to be withdrawn to install and use the Visi-Gator.

Current State of the Art Technology: Lavage with suction is frequently ineffective due to clot integrity and clogging of suction channels. High-pressure water jets penetrate beyond the clot, potentially penetrating and damaging soft tissues.

Medquip Technology: Visi-Gator is a thin, ultra-flexible, spring-like device that is introduced through the biopsy channel to the distal end of the endoscope. High-speed rotations of one or more of many concentric spiral elements both drive rotating lysing filaments and positively pump solids and liquids out. Centripetal force expands and stiffens the filaments from a stored position during insertion to a generally planar and circular path. Vacuum may also be applied. A hollow central channel may also be provided for irrigation, access, or other therapy.

  • Visi-Gator clot dissolving aggressiveness varies from mild to intense and is proportional to the adjustable input speed control.
  • Visi-Gator actively draws fluid and solids up through the biopsy channel with a positive pumping action.
  • Visi-Gator continues to dissolve solids even as they pass through the biopsy channel.
  • Visi-Gator will tend to be non-clogging and self-cleaning.
  • Visi-Gator does not rub high-speed surfaces against the biopsy channel and cause high rates of wear.
  • Visi-Gator provides a central channel for clear water irrigation, additional suction or other therapy.
  • Visi-Gator motor driver is envisioned to be reusable. The fluid path and lysis head is likely to be disposable.
  • Visi-Gator dissolving action and lysing head is transparent. One can see through the scope real time in the zone of clot lysis continuously as the lysing progresses.
  • Visi-Gator appears to be capable of rapid clot lysis yet is gentle to tissue.
  • Visi-Gator tip is soft and pliant to flex over any non-clot tissues.
  • Visi-Gator lysis zone is generally a defined planar disc perpendicular to the axis of the distal end of the scope.
  • Visi-Gator allows lysis not to penetrate beyond the disc boundaries.

Suction Irrigation Device for General Laparoscopic Surgery: (incorporated into Visi-Gator): The Visi-Lyser

Scope: Visi-Lyser suction irrigation device includes a self contained, stand-alone suction/irrigation device to aid the surgeon during laparoscopic surgical procedures. Clinical Advantages: Lysis of the clot or tissue at the entry point, which will tend to be clog resistant. A likely disposable fluid path and reusable power head.

Current State of the Art Technology: Conventional suction irrigation devices are prone to clog when presented with a clot during surgery.

Medquip Technology: Similar to the Visi-Gator tool with the lysing filaments contained within a perforated suction tube.

Note: The Visi-Lyser is designed to work with the Visi-Gator in laparoscopic procedures but may also be used by itself in distinct procedures.

One embodiment inserts into the working channel of an endoscope as an accessory. A flexible spiral spring-like element rotates at several thousand RPM inside of a close spiral spring tube of opposite hand wind. A tiny motor on the outside proximal end of the endoscope spins the spiral element. Liquid or solid material inside the spiral element windings is drawn from distal to proximal positions by the interaction of the rotating and stationary spiral geometry. Suction is preferably applied at the proximal end of the spiral element before the motor. At the distal end of the spiral element, a generally spherical ball tip covers the spiral end to protect soft tissues from the spiral screwing into tissue and causing trauma. Projecting from the tip is a single or multiple of filaments, which spin at the high speed of the spiral element. The filaments lyse the unwanted clot or soft tissue fragments, depending on speed of rotation, diameter, material, and construction details. The filaments may optionally be extended or retracted from the outside to lyse differing diameters or body cavity sections. Rotation speed of the motor is a direct way to control aggressiveness of lysis dynamically from the outside. A flexible tube may be placed at the center of the rotating spiral element to carry water or saline to flush the cavity being lysed. A single or multiple of apertures near the distal end of the water tube may spray a jet sideways to clear potential clogs. The water center tube is preferentially not rotating.

In a second embodiment, designed for suction irrigation of a surgical site, the rotating filaments and spiral are placed in a tube with small apertures. The filaments rotating inside server to lyse clot and tissue which would normally clog the apertures. A rotating jet of water inside could also serve to clear any clogs. The spiral element could also be present inside.

Advantages over currently available products: No Products Currently Available.

Note: A variety of medical journal articles and research studies are available that cover both potential product areas.

Patent searches and filings are under way with Sidley and Austin. Opinion is that as many as seven distinct patents may be available and obtainable on the three devices cumulatively. Mr. Smith has assigned these patents (as obtained) and any future issued patents in the medical device arena to Medquip, Inc.

Competitive Comparison

The leading product currently available in the endoscopic variceal ligation market is the Speedband made by Boston Scientific. Other product entries are from C.R. Bard and Wilson-Cook. The Speedband from the Microvasive division of Boston Scientific is far and away the market leader with an estimated 60% market share. The Six Shooter from Wilson-Cook has a 20% market share. Rapid-Fire made by C.R. Bard has a 10% market share. All of the devices are disposable (single patient use).

Eric Smith, a founder of Medquip and the developer of Medquip’s patented technologies had significant participation in the design of the Speedband. He is aware of both its strengths and shortcomings. The Visi-Band is a much improved product in a rapidly growing market application. Many of the product advantages were highlighted in the previous section of this plan. To summarize the key advantages:

  • Band itself enables smaller varices to be banded.
  • Smaller hole plus more stretch in band.
  • Device has better field of view.
  • Device has better mobility.
  • Bands are fired internally vs. externally.
  • Significant cost reductions in mfg.

The Visi-Gator and the Visi-Lyser represent an entirely new application with no current competition. Their use can potentially range from stomach procedures to heart procedures and a variety of other surgical procedures. Together they solve the well documented and acknowledged problem of lack of visibility in endoscopic procedures where blood clots are involved. The Visi-Lyser also allows an improved and more efficient means of removing fundal pools of clotted blood and tissue.

Sales Literature

Sales literature for Medquip, Inc. remains to be developed.

Primary raw materials needed for Medquip products are as follows:

  • Molded plastic parts.
  • The tooling and molds (capital expenditure).
  • Band material (polymer).
  • Small electric motor.

All of these components are easily sourced and multiple suppliers have been identified. In addition, injection molders have been identified to manufacture the molded components for Medquip products. There are multiple potential sources.

A potential source for additional research and design help and compliance is Valnet in Puerto Rico.

Medquip will perform final assembly and distribution from its own facility in Puerto Rico or utilizing contract manufacturing depending on the extent of financial support from the government of Puerto Rico.

Sidley and Austin is patent attorney for Medquip, Inc. Seven patents have been authored and filed. All patents take into account both offensive and defensive postures in their claims. Opinion of legal counsel is strong and firm that all of Medquip’s patent applications are enforceable and defensible.

The principal areas (general descriptions) of the patents applied for are as follows:

  • The ligating band itself.
  • The movable dispenser.
  • The dispenser itself.
  • Two additional alternative dispensers.
  • The tissue dissolving device.
  • The transporting catheter.
  • The dispenser control device.

Care has been taken to take into account all potential claims of the inventions as well as to protect them from possible competition from other technologies (including inferior ones). All patent application documents are available for examination by potential investors. The first document is entitled “A ligating structure having greater stretchability, greater shelf life, and greater ligating characteristics and method of manufacture.” It lists more than 40 independent claims.

Also available is the assignment of all patents in the medical device field (above listed and future developed) by Eric Smith to Medquip, Inc. The first four patents listed above relate to the Visi-Band. The last two relate to the Visi-Gator.

Trademark application has been filed on the name Medquip. Trademark applications are in process on the names Visi-Band, Visi-Gator, and Visi-Lyser. No conflicts or other use of these names has been found in an initial search.

Future Products

Plans for future development by Medquip include additional ideas and technologies to be created by Eric Smith as VP of R&D for Medquip. In addition Medquip may seek to acquire technologies developed by others once it attains sufficient capitalization to do so. It is the objective of Medquip to both innovate and market its products. Once an industry reputation has been achieved and marketing channels opened expansion into other medical device areas becomes potentially rewarding.

A recent article in Red Herring indicates the bio-tech field in general is a current hotbed of activity and most of the companies involved are early-stage development companies.

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

The two key factors influencing discussion of Medquip Inc.’s market are the medical procedures and product usage statistics and the customer or chain of distribution considerations.

In both cases the trends are upwards in the favor of Medquip. Banding is growing rapidly replacing sclerotherapy and managed care stresses lowest cost of total treatment. The following sections explain how both offer great market potential to Medquip.

Market Segmentation

The potential customers of Medquip, Inc. are both domestic and foreign.

Domestic customers include managed care groups, hospital buying groups, physician groups, independent physicians, and other (catalogues) and medical supply houses. The market is dominated by managed care groups. More than 50% of all purchases of medical devices are made by these groups and that is forecast to reach 75% by the year 2000.

The foreign market includes many of the above segments but also includes key distributors. For example, only four distributors are required to penetrate the European, Middle Eastern, African, Central and South American and Japanese markets. These distributors have already been identified.

The following chart illustrates the approximate total number of these buying groups that exist. But initial concentration may be more defined by targeting the largest 50 customers in each segment. This data is clearly definable and available.

Medical equipment developer business plan, market analysis summary chart image

Industry Analysis

The health care industry in the United States has been dominated by managed care and hospital buying groups. Lowest total cost treatment has been the evolution of the pricing model. Medquip is ideally positioned to capitalize on this trend. There has been a rapid trend to endoscopic variceal ligation from the previous norm of sclerotherapy for the following reasons:

  • Fewer post-op complications.
  • Better control of bleeding.
  • Lower risk of re-bleeding.
  • Reduction of over-all treatment cost.
  • Positioned ideally for managed care.
  • Current research studies available.

The growth of banding has been as high as 30% per quarter according to IMI. The top 25 to 50 customers in each market category may account for as much as 70% of the potential business, making it easy to target customers with a multi-channel tiered strategy. The foreign markets may be penetrated initially with as few as four key distributors.

Competition and Buying Patterns

Large companies with established brand names and distribution patterns have a distinct advantage in the medical device arena. But new small companies are succeeding on a regular basis dependent on their technology and its over-all cost-of-treatment advantages. Product cost in and of itself is not paramount but education and training are. The product must deliver performance as promised in order to do a procedure more effectively with the fewest complications.

Time saving and effectiveness are the key economic parameters. Medquip will succeed based upon the capability of its products. They are already competitively priced…except they are more effective. After initial market resistance to any new product, Medquip’s products can grow to dominate a market segment…in this case distinct surgical applications.

Variceal ligation is a huge and growing market. The market for the band dispenser is a currently existing one with accurate, up-to-date data from IMI. This clearly defined market represents one of the fastest growing segments in the medical device industry. The reason is that doctors are transitioning rapidly from the old and traditional sclerotherapy surgical protocol to banding procedures.

The entire endoscopic market is a $1 billion annual market. Nationally, upper GI endoscopy accounts for more than 1.2 million procedures per year according to MDI. The trend from endoscopic sclerotherapy (ES) to endoscopic variceal ligation (EVL) has been rapid.

In dollars the Endoscopy–Misc. Supplies category has been growing by 30% per quarter. The most recent qtr. ending June ‘97 was $18.8 million (IMI). The market segment exceeds $70 million in annual sales. This growth can be pegged almost exclusively to the market share gained by EVL at the expense of ES. Best estimates indicate that the percent of EVL procedures to total procedures is still in the 30% to 40% range. Thus, the potential market for EVL could be as high as $180 million.

Main Competitors

The most important competitor to be considered is Microvasive (Boston Scientific). Its strengths are its reputation, current market position, and its entrenched loyalty among physicians using its products. Its weakness is that it is not particularly innovative, normally depending on other companies to develop and perfect its technologies. This makes it vulnerable to a new, improved entry.

Eric Smith did significant design work for the company that perfected the Speedband for Microvasive. He is well aware of the performance gaps in the product.

Industry Participants

The major companies in the endoscopic device field directly competitive with Medquip proposed products are Microvasive (Boston Scientific), Bard, and Wilson-Cook.  No manufacturer has a product competitive with the Visi-Gator although a company like Johnson and Johnson could be a likely joint venture partner or licensee. 

Managed care providers such as Humana, Kaiser, Blue Cross, etc. are easily identified. Hospital groups are also easily identified as are physician groups.

However, buying methods are diverse, and there is significant overlap of decision making between these segments. That is why it is imperative that Medquip have an experienced CEO and an experienced Sales and Marketing Manager to effectively attack these channels.

Distribution Patterns

Distribution patterns in the health care industry are such that the large buying groups dictate what products are used for certain procedures throughout their sphere of influence. Thus, our products could be mandated or forced out for thousands of patients due to their health plan or hospital group. Others recommend several alternatives which require physician education and intervention, similar to pharmaceuticals.

Distributors are key for foreign markets.

Strategy and Implementation Summary

Medquip, Inc. will pursue specific, definable, market segments with a multi-tiered, multi-channel approach. We will leverage our technologies with a licensing agreement in one key area and a direct sales and distribution strategy in the other using established distributors.

We will look to foreign markets first with established distributors for initial revenue. Domestic revenue will follow. Large groups and plans will be targeted first.

Marketing Strategy

Marketing will follow from industry and trade and physician awareness campaigns to specific executions directed at specific customer segments. The top tier of 20 to 30 customers in each segment will be attacked first. Only a few sales hits in these top tiers will enable achievement of targeted forecasts. Medquip will achieve its initial sales goals from direct and distributed sales of the Visi-Band. This product is targeted first since it is an existing, well-defined market and 510k approval is anticipated. Worldwide sales through distributors will provide needed cash flow.

Promotion Strategy

Public relations, industry media, will help in over-all industry awareness plans. Feature articles and product reviews will help launch awareness. Direct mail to buying groups and ads in trade publications will help with buyer impressions. Finally, all will be integrated with physician materials and training video tapes once approval has been obtained to increase point-of-surgery usage.

Medquip has already worked closely with physicians to design its products. The importance of working with physicians is well known. As an outgrowth of our Physician Advisory Board, Medquip will actively recruit allied physicians with sponsored events and seminars. Every major market area will be targeted. An annual event will also be sponsored.

Pricing Strategy

Pricing for the Visi-Band is $250 per unit. Terms are 2% 10 days, net 30. All collections in this plan for cash flow purposes are based on an average 45 day collection span. Our 80% gross margin allows for factoring receivables if that should become viable or necessary.

A 30% discount will be offered to distributors. Quantity discounts are not included but remain possible in negotiations with major buying groups.

The Visi-Gator is priced in two components:

  • The motorized unit at $1,000.
  • The cutting/irrigation/suction component at $200 (disposable).

Note: These are suggested retail prices. They represent ten times our estimated cost of manufacture. However, the strategy is to license these products for a 10% royalty. Pricing would be negotiated with the licensee.

Sales Strategy

Medquip’s sales strategy is to open foreign markets on a limited basis at the end of ’98. To fully exploit them in ’99 along with initial penetration of the US market with the Visi-Band (assuming 510k approval). Then to grow both markets in 2000 up to a 10% penetration.

Additionally, the strategy is to license the Visi-Gator to a major company such as J&J due to its increased regulatory requirements and initial marketing costs due to the fact that it is a new segment entry. The objective for the license is a $500,000 fee, $500,000 in advance royalties and a 10% royalty level per unit. Royalty projections are included in ’99 and ’00 sales forecasts.

Sales Forecast

This sales forecast includes small unit sales into the international market. The product is the Visi-Band. Unit sales are at $250 US. Product cost of direct sales is 20% while product cost through distributors is 50%.

It is important to note that $500k license fee and $500k advance royalties are the target figures for a license on the Visi-Gator. If these figures are not attainable or turn out to be a lesser number (but still acceptable to the Medquip board) then they should not be considered for cash flow purposes.

Investment money sought for Medquip will still be based on a sales forecast that does not include a successful license sale.

Medical equipment developer business plan, strategy and implementation summary chart image

Sales Programs

Sales programs include direct wholesale sales to international distributors. Sales materials, video training tapes, and support materials will be produced. Physician materials will be included.

Direct sales will be by personal contact, direct mail, public relations, and media directed at key industry segments.

In addition electronic marketing will be deployed whenever it fits with the buying patterns of a key group.

A website and electronic commerce site will be utilized to cultivate direct sales to key industry groups.

The following are the key milestones for the first year of operations.

  • All patents will be applied for by the May 1st date. The total legal fees are expected to be less than the $50k allocated.
  • Start-up capital was successfully raised.
  • The business plan has been completed.
  • The government of Puerto Rico has been presented on April 8, 1998.
  • All other first year milestones are currently on target time wise and budget wise.

Medical equipment developer business plan, strategy and implementation summary chart image

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

The founders of Medquip, Inc. are Eric Smith and Timothy R. Jones. Eric will serve the company as Vice-President of Research & Development. Tim will serve as Vice-President of Corporate Development. Their biographies follow in the Management Team section.

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

Organizational Structure

Medquip, Inc. will have a CEO to be recruited (see Management Team Gaps) who will have Eric Smith reporting to him as well as Timothy R. Jones and a V.P. of Sales and Marketing (see Management Team Gaps).

Eric will handle responsibility for R&D, design, compliance, and initial manufacturing and sourcing.

Tim will handle strategic growth plans, capitalization, and serve as CFO initially.

Reporting to Eric will be additional design engineers and compliance documentation personnel. Some of these tasks can also be handled by outside consultants in the early going. The ramp-up of essential personnel and tasks are included in the Personnel Plan that follows.

Management Team

Eric Smith (40)

BS, Mechanical Engineering, M.I.T., 1980

Eric Smith began his training in mechanical engineering at MIT and has a broad background in leading edge medical, semiconductor, biotechnology, and cleanroom product design and management. Creatively integrating technologies from diverse fields and transforming these elements into world class product solutions is his specialty. He has spent the past two years developing two medical devices, a full visibility ligating band dispenser and a revolutionary tissue dissolving lysis technology. Recent accomplishments include innovations for the Boston Scientific Speedband multiple ligating band dispenser. He was also responsible for the mechanism design of the Boston Scientific Corp. Alliance esophageal balloon inflation device through their supplier, ACT Medical Corp. Both devices have rapidly attained significantly greater than a 50% world market share for Boston Scientific Corp. Smith pioneered the application of high-energy particle beams to titanium hip and knee implants to increase their life by a factor of ten and for this work received an Industrial Research and Development IR100 award for one of the 100 best technology products. He initiated the development of a peritoneal dialysis system for Millipore Corporation, which incorporated ultra pure water and sterile connection technologies. Earlier research and development on the first Nitinol blood clot filter at Harvard Medical School was in cooperation with Dr. Morris Simon. Mr. Smith also was a founder of ABS, Inc., in 1995, a bio remediation products company currently manufacturing and cross licensing technology sold worldwide.

Ten United States Patents have been issued to Smith to date. Several more have also been granted internationally. A total of sixty-four subsequent United States patents granted to corporations including IBM, Medtronics, Northrop Grumman, Applied Materials, Eaton, Hitachi, and others cite these ten patents granted to Smith, a strong indication of the strategic significance of his diverse body of work. A number of biotechnology patent applications are currently being prosecuted in the United States and in several other countries. Patents issued to Smith include a medical X-ray system, clean room laminar airflow systems, chemical and thermal transfer processes, and robotic mechanisms for semiconductor and medical particle accelerators used worldwide by leading corporations such as Intel, IBM, Hitachi, Fujitsu, Motorola. A detailed list is below.

Mr. Smith has led new product developments for the past 17 years as Director of Engineering and Technology and various Research and Development positions. He led the systems design team for a $3 million production particle accelerator with a $50 million product development budget as Mechanical Systems Manager for Varian Associates, a large multinational technology corporation. He has managed an international staff of engineers and successfully transferred leading edge technology from Far East joint venture partners. His responsibilities have also included manufacturing management for a supplier of critical production equipment to IBM, Intel, and Eastman Kodak CD. Systems plagued by months of installation, rework, and errors performed flawlessly the first time and every time at Intel wafer fabrication cleanrooms after Smith re-designed the product and assumed full manufacturing responsibility.

An invited speaker at a worldwide technical conference in Kyoto, Japan, publications include a recent cover story for “Cleanrooms” magazine, and numerous technical articles related to high purity manufacturing, robotics, heat transfer, and mechanism designs.

United States Patent Numbers and Titles Currently Issued to Eric Smith as inventor:

5040484 Apparatus for retaining wafers [Semiconductor]. 4997606 Methods and apparatus for fabricating a high purity thermally-conductive polymer. 4927438 Horizontal laminar air flow work station [Semiconductor and medical applications]. 4899059 Disk scanning apparatus for batch ion implanters. 4836733 Wafer transfer system [Robot]. 4832781 Methods and apparatus for thermal transfer with a semiconductor wafer in a vacuum. 4817556 Apparatus for retaining wafers. 4580058 Scanning treatment apparatus [Application: human hip and knee implants]. 4531821 Item transporting [medical X-ray].

Timothy R. Jones (50)

BBA, Marketing, U. of Notre Dame, 1970 MBA, Finance, Executive Program, Loyola University, 1972

Mr. Jones has more than 27 years of business management experience. He is the founder of Plinth Capital in Ourtown, USA. He has successfully assisted early stage companies in capital formation, strategic planning, and business growth. His background includes management positions with two Fortune 500 companies, Lever Brothers Company, and the LCR Division of Squibb, Inc. Mr. Jones has previously been an executive in three start-up ventures and one turn-around.

His experience includes working with two investment banking firms, one that focused on privately held companies and the other on early stage publicly traded companies in development stage. Additionally, the management team of Medquip, Inc. includes a physician advisory board which is already being assembled. The Board of Directors is currently open.

Management Team Gaps

An experienced CEO is actively being sought. Timothy Jones is presently conducting the search. The desired profile is for a CEO experienced in the medical device arena, ideally who was part of a previous start-up venture that grew to exceed a minimum of $20 million in sales and had a successful exit strategy.

The CEO will help to identify and bring in a VP of Sales and Marketing.

Eric Smith is actively searching for design engineers and consultants. Several have been identified and are available.

Personnel Plan

The Personnel Plan chronicles the growth of the organization to 31 employees in the first three years. The third year could require a few additional people besides those indicated especially if sales reach or exceed $20 million. Production assembly people are grouped together at approx. $15k per person. Payroll costs and benefits are pegged at 22% although they could be lower in Puerto Rico.

Financial Plan investor-ready personnel plan .">

The value of the patents and the size of their potential markets enables several back-up plans of action if this plan doesn’t work as indicated. Venture funds are available early on and historically investments of $3 to $5 million are common for similar companies.

Even after successfully completing the start and seed stage as indicated, second round venture or mezzanine funding is potentially available in the $5 million range. We have planned for additional capital input in years two and three as a safety net for cash flow/cash balance. 

However, cash flow achievement within the parameters of the indicated plan plus further funding on the senior debt side will lead to the best value for shareholders. Then, strategy can dictate the best valuation for ramp-up and roll-out.

Important Assumptions

The following are the key financial assumptions for this plan. However, it’s important to note that several of the assumptions could be considerably less than those indicated if the business is located in Puerto Rico. The personnel burden could go from 22% to 12%. The short term interest rate could go from 10% to 5% or less. The tax rate could go from 25% to less than 10%. So, all of the bottom line projections in this plan could improve appreciably.

However, the plan is still based on the following assumptions as if it were a U.S. based Georgia operation.

Key Financial Indicators

All of our benchmarks being attained will allow expansion strategies of merger, acquisition, roll-up or IPO. The following chart illustrates our planned performance in the most critical profit variables.

Medical equipment developer business plan, financial plan chart image

Break-even Analysis

Medquip, Inc. has calculated a break-even maintenance point for sales once full management staffing and facility costs are reached. Included are payroll and rent considerations.

The break-even target can sustain Medquip, Inc. in operation in late ’98 and throughout ’99 even if expansion and capitalization plans are late in materializing. It is anticipated that direct sales can produce these numbers and more in Europe, Middle Eastern, and African markets since those markets are not as dominated by managed care, there is more direct purchasing. A distributor has been identified for those markets as well as a distributor for Latin and South America, and a distributor for Japan. No Japanese sales are included, however, since regulatory barriers are more pronounced there.

The break-even analysis is restricted to this late ’98 and early ’99 time frame since the early ramp-up phase in business development is characteristic of most cash-flow shortages that represent exposure to early stage investors.

Medical equipment developer business plan, financial plan chart image

Projected Profit and Loss

The profit in each of the first two years of operation is expected to be minimal. However that includes $1 million in revenue in the first year from the sale of a license. If that does not occur, then over $800k will be burned in year one. That must come from investment infusion. The third year profit reflects the performance of a mature company. Over-all gross margins are excellent.

Medical equipment developer business plan, financial plan chart image

Projected Cash Flow

We began the year with $128,000 in cash from initial sales of shares to investors. This provided our start-up capital. The private placement to 13 or fewer investors is expected to bring in another $450,000 in May and $400,000 in June. We are targeting an additional equity investment from Puerto Rico and long term loans.

Thus, our cash flow will be sufficient in year one even if we can’t conclude a licensing agreement.

Second round financing will include venture, mezzanine, or IPO options. If sales and profits hit targets then further investment needs will be limited to higher value options to roll-up a national level and world-wide company.

Medical equipment developer business plan, financial plan chart image

Projected Balance Sheet

The highlights of the balance sheets are a solid cash position and net worth at the end of year three.

Business Ratios

By year three the return on equity should be very attractive to early investors. All ratios are in good shape for traditional borrowing to fund further growth. Industry profile ratios based on the Standard Industrial Classification (SIC) code 3841, Surgical and Medical Instruments, are shown for comparison.

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medical equipment business plan pdf

IMAGES

  1. Sample Medical Equipment Business Plan

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  2. Medical Equipment Management Plan

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  3. Medical Equipment Business Plan PPT and Google Slides

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  4. Best Medical Business Plan Examples

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  5. Create a Winning Medical Equipment Business Plan for Success

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  6. Medical Equipment

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VIDEO

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  4. Layanan Radio Frequency Electro Surgical Treatment

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