Free Medical Equipment Distributor Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
Until Aug. 31, any purchase of a completed business plan template will come with our 425 Page Funding Sources Directory absolutely FREE (a $39.95 Value)!
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $250,000 for the development of a medical equipment distributor while showcasing the expected financials and operations over the next three years. Medical Equipment Distributor, Inc. (“the Company”) is a New York based corporation that will distribute medical equipment devices and soft medical supplies to physicians, consumers, and hospitals in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The revenues of the Company will come from the sale of durable medical equipment and soft medical supplies to a number of different consumers, doctors, outpatient centers, and hospitals. The Company will specialize in the sale of standard durable medical equipment as well as computerized systems for healthcare management. In addition to the above products, the Company will have the ability to source any piece of medical equipment that it does not carry in its inventory lines. This can be especially lucrative for major medical equipment pieces such as X-Ray machines, CT scanners, MRI machines, and other computerized diagnostic equipment that the Medical Device Distributor can broker between manufacturers and buyers. The third section of the business plan will further describe the services offered by the Medical Equipment Distributor.
1.2 The Financing
Mr. Doe is seeking to raise $250,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Management’s mission is to become the recognized leader in its targeted market for distributing/brokering medical equipment and soft medical goods.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the healthcare industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals, physicians, and hospital settings within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Medical Equipment Distributor, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Medical Equipment Distributor, Inc. requires $250,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Medical Equipment Distributor, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Medical Equipment Distributor. Based on historical numbers, the business could fetch a sales premium of up to 4 to 6 times earnings.
3.0 Products and Services
Below is a description of the products of the Medical Equipment Distributor.
3.1 Sales of Durable Medical Equipment
The primary revenue center for the business will come from the sale of durable medical equipment pieces such as wheelchairs, hospital beds, and computerized monitoring and healthcare equipment directly to physicians, hospitals, outpatient facilities, assisted living facilities, and from time to time directly to customers. As stated in the executive summary, the Company will also have the ability to source any medical equipment piece sought by a practice/hospital directly from a number of manufacturers. This could be a potentially lucrative aspect to the Company’s operations as the business will act more in a brokering capacity rather than a distributor.
3.2 Sales of Soft Medical Products
The business will also carry an extensive line of soft medical products such as scrubs, linens, bandages, and disposable medical equipment (such as tools, syringes, etc.). Management expects that this segment of the business will account for approximately 25% of the Medical Equipment Distributor’s aggregate sales. Additionally, this segment of the business will cater directly to patients/consumers.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the medical equipment industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. Medical equipment distributors typically operate with a great degree of economic immunity as patients/doctors/hospitals continue to require medical supplies and new equipment in any economic environment.
4.2 Industry Analysis
The specialty medical supply industry generates more than $100 billion dollars on a yearly basis. The aggregate number of market suppliers is approximately 12,000. The industry also employs almost 200,000 people. The industry is expected to grow significantly over the next twenty years as the baby boomer population begins to reach elderly demographics. During this time, Management expects that the industry will see explosive growth. As stated earlier, the key to surviving within this industry is to develop ongoing relationships with hospitals, assisted living facilities, doctors, and outpatient clinics for referrals.
4.3 Customer Profile
Among hospitals, physician’s offices, outpatient centers, and assisted living facilities, Management has developed the following demographics that it will use in conjunction with the marketing campaigns discussed in the next section of the business plan
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Medical Equipment Distributor, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the business.
5.1 Marketing Objectives
• Establish relationships with hospitals, outpatient facilities, assisted living facilities, and physician offices.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising among consumers.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Medical Equipment Distributor to easily target the demographics discussed in the previous section of the business plan within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Medical Equipment Distributor will also use an internet based strategy. This is very important as many people seeking specialized products, such as medical equipment distributors, now the Internet to conduct their preliminary searches. Mr. Doe will register the Medical Equipment Distributor with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the operations, inventories, contact information, and preliminary pricing information (for some items). The Company will maintain a sizable amount of print and traditional advertising methods among local and regional medical publications so that hospital and practice administrators can become aware of the Medical Equipment Distributor’s operations.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Medical Equipment Distributor, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $250,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, Medical Equipment Distributor should not have a substantial decline in its revenues. This is especially true among its soft medical product business. The high margins generated by the business (and economic immunity) will ensure that the Company remains profitable and cash flow positive at all times.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis