Starting a health-based business can be harder compared to other industries owing to strict health standards set by the government that needs to be adhered to at all times. Additionally, business owners need to follow sound financial planning to keep costs in check. For entrepreneurs looking to start a business in the healthcare niche, this article by Nutrii will provide a step-by-step process to do just that.
Find a Profitable Healthcare Niche
Healthcare is a vast industry where companies sell everything from medicines and online therapies to commercial-grade equipment. As a newcomer to this industry, your first step will be to find a profitable niche that allows the business to earn profits for the long term. According to Tateeda, the following is a list of current, profitable, and prominent healthcare trends:
- Smart Implants
- Healthcare management software
If you’re looking for a low-cost business, becoming a fitness trainer, starting a meal prep service or a healthcare blog are the go-to ideas.
Set Accurate Financial Expectations
Creating accurate financial expectations plays an important role in the success of your health business. Financial planning will not only include revenue streams but various types of costs as well, such as:
- Business registration
- Raw materials and manufacturing
- Promotional activities and more
When creating financial projections, it’s best to develop them based on bad, ideal, and good business performance assumptions. Having three sets of projections allows you to prepare for all possibilities and take swift corrective action.
The typical ways small businesses can raise funds are as follows:
- Bank Loan: This involves submitting a loan application to the lender of your choice, provided that you have a good credit score and a sound business plan.
- Venture Capital: Raising funds from venture capitalists will require a stunning business plan and product idea that convinces them to invest in your business in exchange for a percentage of equity.
Regardless of the option you choose, remember to create a strong curriculum vitae (CV), as it will serve an integral role in the application. Here is a curriculum vitae template to help you get a head start on the process.
Protect Your Business from Cyber Threats
According to research by Embroker, 43% of cyberattacks are aimed at small businesses, of which less than 15% have the tools and knowledge to protect themselves. A cyberattack can cripple day-to-day operations, hamper the business's ability to generate revenue, and in extreme cases, lead to closure. Hence, investing in reliable cybersecurity solutions such as Tausight is a business priority.
Additionally, here are a host of cybersecurity steps you can take to keep the business protected at all times:
- Daily, backup your data to secure servers that are accessible by only a handful of authorized individuals.
- Install anti-virus and anti-malware software on all office devices.
- Restrict access to harmful websites on office devices.
- Conduct regular cyberattack simulations to practice your response and supervise the procedure of using the backup to restore business operations
- Encrypt all secure information, such as passwords and email IDs, and make two-factor authentication (2FA) mandatory.
- Update passwords every two weeks and mandate that they include a combination of uppercase, lowercase, and special characters. This makes passwords harder to guess by humans or bots.
Comply with Government Health Standards
Depending on the type of business you choose to operate, you may or may not need to obtain local, state, and federal-level licenses. This is because, when it comes to selling health products, the industry is heavily regulated. However, starting a healthcare blog will not require dealing with regulations of any kind (apart from basic business registration procedures).
In the event you do need to obtain certifications from the FDA, ISO, or other organizations, taking into account the investment of time and money. Failure to comply with health regulations can lead to fines being levied against the business and, in extreme cases, a ban on your license.
Starting a successful health-based business will require careful consideration of numerous factors, including financial expectations and creating a great CV plus application to obtain external funding. Additionally, investing in a cybersecurity solution is a must to keep your data confidential and safe from bad actors.