Thinking about opening a medical equipment service and repair business? We tell you what you need to know to get started.
Medical Technology Industry Snapshot
Medical technology is a rapidly growing segment of the U.S. healthcare industry. The reasons for the meteoric rise in medical technology sales, repair and service aren't difficult to discern. By the year 2030, it's estimated that more than 70 million Americans will be over age 65 -- and the majority of them will require diagnoses or procedures that employ sophisticated medical equipment.
As the demand for healthcare increases, healthcare providers are facing increasing pressure to manage costs. For many hospitals, labs and medical clinics, that means making equipment last longer through routine maintenance and service activities, and repairing (vs. replacing) technology whenever possible.
Entrepreneurs interested in getting into medical equipment service and repair are advised to enter the industry earlier rather than later, capturing as much market share as they can before the industry is glutted with repair providers. The caveat is that entrepreneurs need to make sure they have adequately capitalized their startups before launching their repair and service operations.
Revenue Streams for Medical Equipment Service & Repair Startups
Revenue streams play a central role in the financial health of any business startup. Medical equipment service and repair businesses have many revenue streams to choose from, including some that hold promise as sources of recurring revenue.
- Equipment Repair. Equipment repair is a mainstay business activity for medical technology service providers. To be effective, you'll need to develop competencies on a wide range of technologies and create workflows to deliver seamless repair services to your customer base.
- Preventative Maintenance. Preventative maintenance is becoming more common in healthcare and is frequently outsourced to specialists. With a little effort, you can create regularly scheduled maintenance contracts to provide your startup with recurring revenue.
- Safety Inspections. Healthcare providers are required to have their equipment inspected on a periodic basis. If you aren't familiar with safety inspection schedules in your geography, contact local healthcare professionals to identify inspection requirements and become certified as an inspector for multiple technology categories.
- Veterinary Equipment. Many medical equipment repair and service providers expand their businesses by also servicing veterinary equipment. Although the patients are vary different, the technology is similar and requires the same level of attention as human healthcare technology.
Successful Business Plans for Medical Equipment Service & Repair Businesses
As a startup small business owner, you need to have a business plan you can rely on for both external and internal purposes.
A shoddy business plan is a major misstep for a startup medical equipment service and repair business. The evidence overwhelmingly supports the fact that your startup can't achieve long-term success without an accurate business plan.
As a rule, don't exit the business planning process until you are completely satisfied with the scope and content of your business plan.
Don't Overlook the Competition
Long before you open a medical equipment service and repair business within your community, it's a good idea to determine how strong the competition is. Use the link below to find competitors in your city. Complete the form by entering your city, state and zip code to get a list of medical equipment service and repair businesses that are close by.
If there's too much competition, it may be wise to consider starting the business in a less competitive marketplace.
Finding a Non-Competitive Business Mentor
If you want to open a medical equipment service and repair business it's essential that you learn from folks who are already in business. If you think owners of nearby medical equipment service and repair businesses will give you advice, think again. Why would they want to educate a future competitor?
On the other hand, an individual who has a medical equipment service and repair business in a location that is not competitive to you will be much more likely to talk with you, given that you don't compete with them in their area. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. If you are persistent, you can find a business mentor who is willing to help you out.
How would you find an entrepreneur who is running a medical equipment service and repair business in another community?
We can help. Follow the link below, try a few city/state combos or zipcodes, and then start calling!
Business Brokerage for Medical Equipment Service & Repair Business Entrepreneurs
Business owners are decision makers. And the first decision you'll need to make is between a medical equipment service and repair business startup and an acquisition. For medical equipment service and repair business entrepreneurs, there are many reasons why a purchase is more logical than a startup.
Although you could navigate a business acquisition on your own, most prospective medical equipment service and repair business owners enlist the services of a business broker.
By leveraging the skills, expertise and network of a first-rate business broker, you eliminate the hassles commonly associated with the business buying experience.
Don't Forget About Franchising As an Option
The odds of achieving your primary goal of growing your business are greatly increased when you join the ranks of franchisees and leverage their successful brand and track record.
Before you get too far along in your plan to open a medical equipment service and repair business, a smart move is to assess whether buying a franchise could make it easy to get started.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding getting started as an entrepreneur may be of interest to you.
If you already are in business and came here to learn about growing an existing medical equipment service and repair business, these resources will come in handy:
If you sell to medical equipment service and repair businesses, you're in the wrong place. Try these resources instead:
If you are interested in starting a different kind of business, please browse our directory of guides below.