How to Plan for a Home Health Medical Supply Store Business?

The most appropriate way to sell and distribute health care equipment used in a patient’s home is to start a home health medical supply store, also known as a durable medical equipment (DME) business.

You can sell items exclusively online, at a physical storefront, or a combination of the two; the choice is yours. Commencing a business involves more than just registering it with the state. Here we’ll discuss how to plan for your home health medical supply store business.

Planning for Durable Medical Equipment Business

To run a successful business, you require a clear plan. DME business startup guide will help you outline the essential business aspects. A few vital topics to consider are:

1.    Startup Costs Involved in Commencing a DME Business

 

Find an ideal location for your business if your plan includes a storefront. On average, retail showrooms are 1,500 square feet in size, with another 500 to 1,000 square feet for storage. Strip malls or shopping centers near medical offices and hospitals are the most profitable locations.

 

A small showroom typically costs $15,000, including a storefront, inventory, licensing, insurance, and promotional materials. In order to commence a medium-sized business, start-up costs are around $200,000, while to open a large medical supplies business, the costs reach over $450,000.

 

2.    The Ongoing Expenses for DME Business

 

The average fixed cost of a smaller home health medical supply store is about $2,000. It includes marketing expenses, rent, overhead costs, insurance, and legal fees. However, it doesn't involve inventory, which varies monthly. Also, to reduce payroll costs, many DME business owners pay salespeople a modest salary with commissions or bonuses.

 

3.    The Target Audience

 

Any person who needs home health medical supplies is your target customer. As an entrepreneur, you would benefit the most if you steer towards Assisted Living Facilities and Home Care patients.

 

4.   The Amount to Charge Customers

 

The cost of durable medical equipment can vary significantly, depending upon the product. A hospital bed can cost you more than $1,200; on the other hand, a walker will range from $35 to $200. To set appropriate prices for your business, you should consider what your competition is charging.

 

5.    The Name of your Business

 

It can be challenging to choose an appropriate name for your DME business. If you find it hard, you can take help from the business startup guide. When registering a business name, research the name by checking:

 

·         Records of federal and state trademark

·         Records of your state’s business

·         Social media platforms

·         Availability of web domain

 

Secure your domain name before someone else does.

 

6.   Ways to Make Your Business More Profitable

 

In the DME business industry, you must target your audience appropriately. It is easy to expand into other medical supply essentials once you comprehend the needs of that particular niche. In order to expand your reach and boost profits, you can host an online store with reasonable pricing.

Wrapping Up

DME business startup guide can help you commence your home health medical supply store business and determine whether it is the correct option for you or not.