Business Idea

Start A Medical Device Company

About

Starting a medical device company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell medical device, or selling medical device online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a medical device company ➜

Key stats

market size
$443B
revenue (monthly)
$80K
starting costs
$46.8K
gross margin
20%
avg product price
$150
time to build
12 months
growth
SEO
business model
E-Commerce
time investment
Side project

About

Starting a medical device company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell medical device, or selling medical device online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a medical device company ➜

Key stats

market size
$443B
revenue (monthly)
$80K
starting costs
$46.8K
gross margin
20%
avg product price
$150

 

time to build
12 months
growth
SEO
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $10 $2,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $550 $6,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $150 $2,794
Advertising & Marketing Costs $75 $9,536
Other Expenses $0 $800
Training & Education Expenses $0 $850

Successful Businesses

Business URL Rank
Analog Devices analog.com #20,773
Electronic Medicines Compendium medicines.org.uk #27,801
Medgadget medgadget.com #53,104
Medex Supply medexsupply.com #175,239
Medical Device Network medicaldevice-network.com #183,827
ZOLL Medical Corporation zoll.com #238,612
Agiliti agilitihealth.com #257,145
Freyr freyrsolutions.com #317,418
Med-Tech Innovation med-technews.com #366,513
Molecular Devices moleculardevices.com #386,065
Smiths Medical smiths-medical.com #408,463

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a medical device company. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the medical device company, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Control of workload With starting a medical device company, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A medical device company can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your medical device company are typically around 20%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the medical device company, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a medical device company, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

Marketing Ideas

  • 1

    Direct sales

    You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

    Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Partnerships

    A partnership is a formal agreement between two or more entities to oversee business operations and share profits and liabilities.

    Creating strategic partnerships with an existing business can be a huge win for a startup.

    This is considering that a partnership creates a new slate of future options for your startup.

    On the other side, pursuit of partnerships could suck up a ton of time, and bunch of resources, and fail to materialize.

    Therefore, entrepreneurs need to do proper research and evaluate the possibilities of achieving success through partnerships.