How to Start a Home Health Medical Supply Store Business

Start a home health medical supply store business by following these 10 steps:

1. Plan your Home Health Medical Supply Store Business
2. Form your Home Health Medical Supply Store Business into a Legal Entity
3. Register your Home Health Medical Supply Store Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Home Health Medical Supply Store Business
6. Get the Necessary Permits & Licenses for your Home Health Medical Supply Store Business
7. Get Home Health Medical Supply Store Business Insurance
8. Define your Home Health Medical Supply Store Business Brand
9. Create your Home Health Medical Supply Store Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your home health medical supply store business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourHome Health Medical Supply Store Business Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a home health medical supply store business?

If your business plan includes a storefront, finding a location should be one of your top priorities. Average retail showrooms are approximately 1,500 square feet, with an additional 500 to 1,000 square feet for storage, etc. Studies indicate the most profitable locations are in strip malls or shopping centers that are close to medical offices and hospitals. Your storefront, along with inventory, licensing and insurance, promotional materials, and a website average approximately $15,000 for a small showroom. Initial start-up costs to open a medium-sized business increase to almost $200,000, while a large-sized medical supplies business required over $450,000 in start-up capital.

What are the ongoing expenses for a home health medical supply store business?

For a smaller home health medical supply store, estimated fixed costs average approximately $2,500. This includes marketing expenses, rent and overhead costs, insurance and legal expenses, and accounting. This does not include inventory, which will vary from month-to-month, or payroll expenses. To keep payroll at a minimum, many shop owners pay salespeople a modest salary with commission and/or bonus incentives.

Who is the target market?

While your target market is anyone who requires home health medical supplies, entrepreneurs emerging in this industry would benefit from targeting Home Care patients and Assisted Living facilities.

How does a home health medical supply store business make money?

Your medical supply retail store will generate revenue from each sold item, with a 45-55% markup on inventory. Some businesses choose to expand their services to include delivery for a nominal fee.

How much can you charge customers?

Durable medical equipment varies in price, depending upon the item. A walker can cost anywhere from $25 to $250, while a hospital bed can cost upwards of $1,500. Conduct research on what the competition is charging and set your prices accordingly.

How much profit can a home health medical supply store business make?

Industry leaders offer several formulas for determining annual revenue. One benchmark is gross sales generated per employee, which averages $140,000/employee in this industry. Another formula is to multiply your showroom’s square footage by $800 per square foot per year. With these numbers and minimal ongoing costs, many home health medical supply stores break even before the end of the first year, generating up to $400,000 in profit after the third year.

How can you make your business more profitable?

In this industry, it is important that you know your target market well. Once you understand the requirements of that particular niche, you can expand into other medical supply needs. Hosting an online store with competitive pricing is a great way to expand your reach and boost profits. One successful entrepreneur found success implementing the “hub-and-spoke” business model, offering multiple locations in one geographic territory.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as anLLCorcorporation保护你从被关押如果承担个人责任your home health medical supply store business is sued.

You can金宝搏188是什么公司yourself and pay only the minimal state有限责任公司成本or hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a业务的信用卡helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with ourLLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

有几种类型的保险政策克雷亚ted for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

For long-term success, home health medical supply business owners should understand the intricacies and terminology of the medical community and feel passionate about helping others live with dignity and grace. Because of the low upfront costs and untapped niche markets, the organized and compassionate entrepreneur stands to generate significant profits early into building their network.

What happens during a typical day at a home health medical supply store business?

Your store is considered a retail business, making customer care and interaction a top priority. Purchasing inventory, changing out displays, and re-stocking shelves will also be a part of your day-to-day activities. In addition to nurturing customer relationships, you and your staff will need to network within the community and build sound relationships with supply manufacturers. Staying on top of emerging trends, comparative pricing, and educating the public on your findings should also be an integral part of your business-building strategy.

What are some skills and experiences that will help you build a successful home health medical supply store business?

Historically, industry leaders are successful business managers, delegating sales responsibilities to their sales staff. Leadership skills such as communication and interpersonal skills are critical, and it is equally important to be a strong delegator and detail-oriented. Your ability to interact with a wide variety of people will prove invaluable, as you will need to communicate and connect with customers, employees, colleagues, and vendors. For business and marketing advice, consider joining amedical equipment suppliers associationthat serves your geographical area.

我s the growth potential for a home health medical supply store business?

While your target niche is home healthcare, this doesn’t mean you are limited to homebound patients only. The Homecare and Assisted Living market offers an annual earning potential of $59.6 million revenue, while the Assisted Living market offers $17.6 million in annual revenue. And, with an increase in the world population over the last decade, the industry is poised for continued growth.