A business plan is required for all owners of new businesses, including those who wish to work with durable medical equipment. The business plan is a large plan that shows the desired direction of the business and suggests marketing and production methods that will allow the business to reach short-term and long-term objectives. Although the business plan is written during the business start-up phase, it can be revised when necessary.
The business plan must include a basic business history and profile, so the reader knows what type of business it is. Explain whether the business will provide durable medical equipment directly to end users or whether it will act as a supplier for smaller businesses or local stores. The profile must also explain whether the products sold are covered by insurance plans such as Medicare. Provide information about the owner and the general purpose of the medical equipment business, along with any partners with whom the business plans to collaborate.
The business plan must also provide a list of products or services the business will offer. These include iron lungs, catheters, nebulizers, wheelchairs and medical equipment making living at home easier for patients. Equipment includes medical blood monitors or heart rate monitors. Detailed business plans include prices, sizes and measurements.
Part of the business planning is determining the direct need for the durable medical equipment on the market and analyzing competitors who are offering similar or identical products. The industry needs and market potential must be examined and discussed in the business plan, in case investors or shareholders are interested in the business. The market potential also reveals the expected or potential revenue for the business. In this regard, the company must develop marketing strategies or methods that differ from those of the competitors.
A solid business plan must also include a breakdown of the financial information of the durable medical equipment company. The financial information includes an operational budget that shows the cash flow of the business by identifying the expenses and sales of medical equipment. This section also includes short-term and long-term financial objectives, such as increasing sales growth targets and expanding the existing product line of durable medical equipment.