Tips and insights from an industry veteran
Starting a medical distributor business can be both profitable and rewarding. Here at EnVogue, we’ve successfully worked with some of the biggest aesthetic companies in the world for the last 20 years. In this time and with hands-on experience in the industry, I’ve gained a wealth of knowledge and insight into the intricacies of the medical distribution business model. My expertise spans product selection, regulatory compliance, market trends, and strategic business planning.
This guide is based on my many years of experience and aims to give you the steps and things to think about that you need to start and grow a successful distributor. If you are new to this field or just want to improve the way you do things now, this advice will help you feel confident as you move through it.
First, what’s your business model?
Decide whether you want to be a wholesale distributor, supplying products in bulk to various healthcare facilities, or a specialised distributor, focusing on a specific type of medical equipment or a particular market segment. Your business model will guide your operations and marketing strategies.
Research the market
It’s a great idea to get a deep understanding of the customers you will distribute to. Most likely, as a distributor, you will have a business to business model, and your target market will consist of dermatologists, plastic surgeons, cosmetic clinics and some exclusive medi-spa’s.
- What areas are they located in?
- How do they service their customers?
- Do they want to order online or via phone?
- Do they expect one-on-one contact and training or are they happy with virtual services?
Know what the market wants, what the current trends are, and who your competitors are. Find the big players in the market and learn about the products and business models they use. With this information, you’ll be able to find market gaps and openings.
Make use of online research and marketing analysis reports such as this one https://www.mordorintelligence.com/industry-reports/australia-aesthetic-devices-market
From the outset, having a deep understanding of how health and medical clinics run will work wonders for your business progression.
How about a business plan?
A well thought out business plan is another key item for the success of your medical distributor business.
Your business plan should touch on point 1 – your business model. Once you have your business model in place, there are many other items to consider.
Goal setting
State your business’s purpose and core values via a mission statement. This will guide you and your team for years to come.
I’ve come up with: “Medical aesthetics is an ever-changing business with many new products and technologies appearing each year, EnVogue is committed to bringing you the best and brightest of these new products.”
Objectives
Outline your short-term and long-term goals. Include action steps on how you will achieve each goal. Provide as much detail here as possible. Include performance indicators and time frames for achieving these.
From my experience, if you don’t set time frames and completion dates, you lose a bit of momentum in achieving the goals. Even if you need to push the due date out for whatever reason, setting completion dates is important for goal delivery.
Financial planning
Planning your finances is an important part of making a business plan. Think about these financial considerations:
- How much will it cost to start up?
- What is the cost of goods?
- How much will warehouse storage cost?
- Do you require transportation or delivery?
- What will your employment costs be?
- Being medically regulated, what are the licence fees?
- Do you need legal agreements and contracts in place?
- What happens when a dispute arises? Ensure that you have your house in order and solid legal representation on hand.
Set prices in a way that will help you make money and stay competitive. Make financial estimates for at least the first three years to see how much money you expect to make, how much you expect to spend, and your profit margins. This planning will help you get money for your business and help it grow.
What brands will you carry?
It’s very important for the success of your medical distributor business that you choose the right brands and goods. Here are some important things to think about.
Quality and reliability
- Choose brands with a strong reputation for quality and reliability. Check customer reviews and industry ratings.
- Ensure the products meet all necessary certifications and regulatory standards.
Product range
- Offer a diverse range of products to cater to various customer needs. This can include consumables, diagnostic equipment, surgical instruments, and more.
- Choose products that complement each other, allowing you to offer comprehensive solutions to your customers.
Innovation
- New technologies. Stay ahead by distributing innovative and cutting-edge products. For example, we secured a competitive advantage in the market by distributing PDO threads at the start of their popularity.
- Feedback. Regularly seek feedback from healthcare professionals to understand their needs and preferences for new products.
EnVogue is committed to bringing the best, clinically proven, latest medical aesthetic brands to Australia and New Zealand. Our brands include:
- 3k+ Manuka Clinicals
- Elasty Micro Cannula
- Mondeal Micro Toxin Syringe
- MINT Lift
- MINT Mono Threads
- Oxygenetix
- VSkin
- VIVACY Laboratories Products
- Revision Skincare
Marketing is key
Marketing is an essential part of your business and it’s important to get your marketing fundamentals right.
Online marketing
Build a professional online presence, with a user friendly website and strong socials and SEO to back up your brands.
- Create an informative and user-friendly website showcasing your products and services. Check out our distributor website here https://www.envogueskin.com.au/
- Optimise your website with relevant keywords to improve search engine rankings.
- Social media. Use platforms like LinkedIn, Facebook, and Instagram to reach and engage with potential clients.
Content
Invest in content marketing and thought leadership articles.
- Write articles on industry trends, product features, and best practices in medical distribution.
- Case studies. Share success stories and testimonials from satisfied customers.
- Guest posts. Write up informative articles about your brands and your business and try to get these published on business or industry blogs in your name. Getting your name out here is important and having content authored to you is a great way to do this.
Attend industry events
- Trade shows. Attend medical and healthcare trade shows to meet possible partners and clients.
- Attend gatherings in your field to stay up-to-date and meet important people.
- Meet-ups. Take part in or host webinars to share your knowledge and build your reputation.
Invest in your own professional development
This is key, as too often I’ve focussed too much on business development and clients (and yes, your clients are essential!) however investing in your own professional development is crucial to unlocking new skills sets and allowing you to grow and scale personally and professionally.
Summary
Starting a medical distributor business is an exciting yet daunting endeavour. With over 20 years of experience in the medical aesthetics industry, I understand the challenges and opportunities that come with this venture. This article touched on the importance of thorough market research, detailed financial planning, strategic marketing, and effective goal setting. Each of these points come together to help you in building a successful business.
Author: Ian Carroll. EnVogue is committed to bringing the best, clinically proven, medical aesthetic brands to Australia and New Zealand. Our owner, Ian Carroll, has over 20 years of experience working with some of the biggest aesthetic companies in the world, and he is continually looking for new products that deliver the best outcomes for you.
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