15 Simple Steps to Start a Medical Courier Service Business

Last updated on September 21st, 2024 at 10:28 am

 

Offering medical courier services to medical facilities and patients in the community is in high demand today. Planning to start a medical courier service business, it is not too late?

The courier and local service delivery industry in general is a multi-billion dollar industry worth $165 billion in revenue in the United States. The movement of medical equipment, medicine, and samples from one place to another requires transportation.

Medical courier services bring about convenience in the medical sector by ensuring timely delivery of medical supplies to different places. Since medical items must be handled with proper care, qualified service providers are hired to do the work.

Courier service in the medical sector is a fast-growing industry due to population increase in different states hence the need for more service providers.

Despite other types of businesses, starting a medical courier service is quite different. Let’s get into a simple step-by-step guide on how to get started.

What Is Medical Courier Service?

This is service delivery that involves the movement of medical supplies to different places. Items could be transported from one health facility to another or health facility to patients.

There are different types of items transported for example medical documents, samples, medical equipment, and body organs.

Pros and Cons of Starting a Medical Courier Service

Like most businesses, there are pros and cons associated with starting a medical courier service hence you need to be aware of them from the beginning.

Pros

• Availability of opportunities since it’s a growing industry
• It’s a profitable business where you can make over $35 per hour
• Convenience in working time since you are the business owner with a defined work schedule
• You don’t need a lot of money to get started as long as you have a personal vehicle or scooter

Cons

• It is a competitive industry hence you need to offer the best service to take advantage of the available opportunities in the growing industry
• Medical courier service is much more regulated compared to other businesses
• To start offering service you must enroll in a regional training program for certification

Types of Medical Courier Services

The services offered define the medical courier service type in business. In brief, let’s look at some types of medical courier services in the industry.

• Pharmaceutical Courier Services

They specialize in secure transportation of medical items like vaccines and drugs with strict storage requirements to their destinations.

• Medical Records Courier Services

These medical courier types focus on the transportation of medical records and documents to different places like healthcare facilities and laboratories.

• Long Distance Medical Courier Services

These focus on the safe transportation of medical items of several types to different regions or at the international level. However, this type of courier service requires efficient transport means for effective service delivery.

• Emergency Medical Courier Services

These are the types of medical courier services that normally work 24/7 to provide instant transportation of medical items during emergencies.

Simple Steps to Start a Medical Courier Service Business

In this simple steps guide, we are going to look at how to start a successful medical courier business from scratch. But a profitable courier business requires a proven approach to the process, let’s get into it now.

1. Market Research

Researching the type of business in which you are going to invest your money is what will give you an edge in the industry compared to your competitors hence taking advantage of available opportunities.

Through market research, you get to identify your competitors, how they cope with the changing business environment, the size of the market, strategic location, market analysis, and more.

You will be able to identify potential customers with a ready market for the services offered in the industry like pharmaceuticals, clinics, and laboratories.

There are different types of medical courier services, but depending on where you want to locate business you can decide on the perfect option based on research.

With market research, you can identify the strengths, weaknesses, opportunities, and threats of competitors in the industry.

Therefore, market research is one of the most important steps that any entrepreneur should take into consideration in the first place before getting started.

2. Choose a Business Model

Meeting the needs of the target market is the intention of the medical delivery service, but this comes down to choosing an appropriate business model.

In the medical courier business there are three business models to consider, let us briefly look at each below.

• Business-to-Consumer

This involves the transportation of medicines, reports, and other related items from medical facilities like pharmaceuticals, laboratories, and clinics to individuals or patients. People find it convenient to use medical courier service providers to make deliveries for them.

• Business-to-Business

It is a formal courier service model in which the transportation of medical items is made from one medical facility to the other. It’s another profitable business model with lots of opportunities for new courier startups.

To sustain business here you must keep up with the standard operating procedures while making deliveries for clients. Some of the items transported include medical reports, research papers, and samples

• Hybrid Model

This is a combination of business-to-business and business-to-consumer medical courier service models. Since it’s an all-in-one model, management is quite complex but it’s characterized by diversified opportunities.

3. Make a Business Plan

Starting a medical courier service you need to come up with a business plan. This contains a list of components that support operations for effectiveness in service delivery.

Here are some components of a business plan to put into consideration for a medical courier service startup.

• Executive summary

  Briefly, it is a summary of the medical courier business plan to mirror the future strategic plans to impact development.

• Company description

  This contains details about the medical courier business goals, missions, and visions hence giving a clear picture of the future. Company description helps clients to understand the courier business in detail at first sight.

• Market analysis

  The medical courier business requires a marketing plan in place to let clients know about the services offered. Through market analysis, you can understand the market potential for the business.

• Competitive analysis

  Competitive analysis helps you to get a clear understanding of competition depending on business type or in the entire industry. You can know where to start and whether the business is worth the investment in the long run.

• Financial plan

  Capital expenditure and projected revenue for the medical courier service are planned here. There should be a future financial plan for sustaining business operations over its lifetime.

• Organizational structure

  This is a detailed legal structure with a team of business partners for the medical courier service. Contains the hierarchy of authority in the courier business setup

Like most other businesses, you must come up with a thorough business plan for effectiveness and efficiency in service delivery.

4. Business Registration

The medical courier business should be registered with the appropriate authorities to officially start operations. It’s by law in different states that all businesses are registered to the authorities for proper planning by the government.

This is where selecting an appropriate business structure as an entrepreneur for the medical courier service comes into play. Let’s check out a list of business structures to consider.

• Sole proprietorship

  It is a one-man business with full control and hence liable to any business proceedings during its existence.

• Partnership

  Business registration includes other partners and everyone is accountable for business proceedings. Starting up a partnership requires quite more paperwork compared to a one-man business.

• Limited liability Company

  Under this type of business structure members enjoy tax and liability protection benefits. Compared to a partnership, setting up a limited liability company needs more paperwork.

• Corporation

  This is a separate legal entity from its owners hence all business proceedings are done in the name of the business. Profits made are shared as dividends to members accordingly as agreed.

Choose an appropriate business structure for the medical courier service during registration for effectiveness in service delivery. Besides, get a business name and reserve it with the registrar of companies in the preferred state.

5. Tax Registration

The medical courier business must register for taxes to the government authorities. Tax registration is mandatory in all states since collections are revenue to the government.

The business will file returns at the end of the financial year for accountability purposes to the government. An Employer Identification Number (EIN) and a Social Security Number for a sole proprietorship are key requirements for tax purposes.

Consider a tax year for a medical courier business that starts during a chosen month of the calendar year. This is what will help the business keep in check with government taxes during the financial year.

The medical courier business has to keep up with the tax laws of the state to avoid fines and penalties due to poor practices like late payment, under-declaration, and more.

6. Business Bank Account

A bank account is used to make official business transactions for example tax payments and other dealings that must be tracked for reconciliation.

To get a business account consult your service provider about the requirements for opening up depending on the business structure. With a company account in place, tracking income and expenditure for the business becomes easier.

Employer Identification Number (EIN) or Social Security Number (SSN), Directors, Articles of Incorporation, and Business address are among the main items requested by service providers at account opening.

7. Get Appropriate Licenses and Permits

The medical courier business should acquire appropriate licenses and permits from responsible bodies to start operations. However, the mode of licensing and permit acquisition in different states is not the same.

In the United States, in different states, you need to acquire federal business licensing, state licensing, and local licensing for the medical courier business to operate.

Understand licensing requirements in your state to keep up with the standard operating procedures for courier services in the same line of business.

Consult with different sources about courier service licensing requirements for example MyCorporation’s Business Licensing Package. There are different licensing documents you can access through the platform in line with the medical courier service.

Acquisition of licenses and permits can sometimes be complex for starting businesses. Talk to a business expert for professional guidance on how to work things out with best practices.

8. Business Funding

As an entrepreneur, the business has to be funded to keep operating while delivering service in the long run. Here are some proven ways to look out for funds to facilitate business activities for effective service delivery

• Government grants

  Platforms like grants.gov are a good start for government funding to acquire investment capital for the business. However, you need to be updated about the available government funding opportunities.

• Family members and friends

  Talk to family members or friends about your business idea to request loans or business partnerships. Some members will be ready to support with loans or are interested in becoming business partners.

• Crowdfunding

  Through Crowdfunding sites like Fundable, Wefunder, and others you can access potential investors and request funding.

• Personal savings

  Another great way to get capital without borrowing money with interest rates is through money saved for investment. You won’t need to request money from anyone since you saved up for the business venture.

An appropriate mode of funding will enable you to raise enough capital for investment according to urgency and business structure.

9. Business Location

For effectiveness and efficiency in service delivery, the medical courier business should get a physical location. This is where strategic planning for day-to-day deliveries of clients is done.

Despite online platforms, some potential clients need to physically locate your business for inspection and personal interactions for business purposes.

Though the business has to get a physical location, certain things must be put into consideration before deciding on a place as below.

• Rental costs

  No matter where you want to put the business office, you must save money on rent. Put offices in a place where the cost of rent is cheap but convenient

• Competition

  There are competitors in the industry hence you must be very strategic to locate business offices in a place where there are many competitors. Decide on a business location with potential clients but limited competition for service.

• Accessibility

  Medical courier services must be located in a place that is convenient and easy to access by staff and clients. Drivers can easily move from office to go and make deliveries for clients on time.

• Operational laws

  There are laws concerning medical courier services in your location, make sure that they are in line with your type of business.

  In some states to start a medical courier business acquiring a physical location is mandatory. When you are just starting is a cost to the business that should be minimized.

10. Operational Planning

The medical courier service requires an operational plan to manage daily activities for effective service delivery in business.

There should be arrangements for the day, week, month, or year to meet targets in an organized manner. Operational planning in a medical courier service can be presented in different ways.

• Scheduling Pickup and Delivery

  In any courier business pickup and delivery is the order of the day. There should be a clearly defined approach to managing deliveries by type, destinations, time, and more.

• Planning Routes

  Prioritizing route planning is not a waste of money despite being an expense to the business. Deliveries must be made using the shortest routes to save time and money on fuel or gas using efficient route planning software.

• Customer Support

  The business must draft an organized plan of how to handle customers and their complaints about service delivery. This would then require an effective customer support system in place.

• Transport Maintenance

  Whether you are using a motor vehicle or a motorcycle to make deliveries, there should be a management plan for transport. This will save the business from unplanned costs that may delay deliveries during working hours.

Proper operational planning leads to effectiveness and efficiency in service delivery. Pickup and delivery, route planning, customer support, and transport maintenance are some of the main components of operational planning.

11. Staffing

Hiring staff to offer service is an expense to the medical courier business but worth it. Whether it’s a sole proprietorship or not you need people to work with to share responsibilities.

However, when the business is just starting it would be wise not to fill posts that are not productive to save.

Some of the most important positions that you need to fill in the startup stage include a driver, customer support personnel, and a marketer. Other positions can be filled along the way when business expands or in the future.

Since the business needs people with the required skills use Fiverr, Upwork, Facebook, and other online platforms to source for staff. You don’t have to waste money on paid advertisements when these platforms can save you the costs.

As an entrepreneur you want to offer service to clients in the best way possible hence this can only be achieved as a team with a combined effort to effectively meet demand.

12. Establish an Online Presence

A business without social media platforms and a business website is like one having no address. Besides being an online address or location, it serves as a marketing platform for the business.

Online platforms serve as alternative means of communication for the business with clients. At the same time, act as marketing platforms for services offered.

Designing a business website and social platforms comes at a cost when you are not tech-savvy. But when you have some tech skills like web design and social media development skills it saves the costs.

To hire a tech expert in social media development and web designing, consult with platforms like Upwork and Fiverr for quality service providers at a cheaper cost.

Consider an online presence that matches the medical courier service business industry. Some social media platforms for business purposes include Facebook, Twitter, LinkedIn, TikTok and Instagram.

13. Business Insurance

Insurance is protection against any unpredictable events that may cost the business. Business property like cars, office equipment, and staff need insurance coverage.

Not all insurance covers are relevant in the beginning hence consider those that matter to a new business to save. Look out for insurance service providers with the best offers in the industry to reduce insurance premiums paid out.

Consult a service provider about the list of available covers to choose those that are worth spending money on to insure the business. Here are some policy covers to consider for a new business.

• Workman’s Compensation 

  This insurance policy is meant to cover workers against injuries obtained while offering service at work.

• Business Property Insurance 

  The insurance policy covers equipment and supplies of the medical courier business against damage and theft.

• Commercial Auto Insurance

  This policy covers vehicles of a medical courier business against accidents and other related incidents.

• Liability Insurance

  It is an all-in-one policy that covers injuries and property damage. Liability insurance helps you to bundle covers for cheaper premiums.

Insurance is an expense to the medical courier business besides being a cover from unpredictable incidents that may cost it when they happen. Some insurance covers in certain states are part of business startup requirements.

14. Transport and Route Planning

To save time and money in the medical courier business, there should be transport planning for effective service delivery.

This would involve taking into consideration appropriate transportation means and route optimization software.

You need to save money on fuel or gas while delivering to clients. Making deliveries to their destinations should be done on time to avoid complaints.

There are route planning software service providers, decide on one that is right for you in terms of costs. Also, choose appropriate transport means which are within your budget to save.

Medical courier business is a transport business hence transport and route planning must be prioritized to manage time and transport costs on deliveries.

15. Medical Courier Service Marketing

To get recognition in the industry you have to market the services offered by the business to the target audience.

Therefore, some things must be put into consideration for successful marketing. So, let’s get into the 7P of a marketing mix.

• Product or Service 

  The service offered by the medical courier business should match the client’s interests in terms of time management, quality design, packaging, and more.

• Price 

  Offer service at competitive prices compared to the industry to boost sales. When prices are low you are most likely to attract more clients for business.

• Promotion 

  Let the target market know about your business and the services offered. Use online platforms like a business website, social media, and traditional awareness such as banners and posters for promotion.

• Place 

  The medical courier business should be strategically located to ease accessibility to business offices. When a business is not strategically located it will be hard for people to physically find you for business

• People

  You need people to work with to share responsibilities in business for effective service delivery. Recruit staff with the required skills for a medical courier service business like drivers, virtual assistants, and office assistants.

• Packaging 

  The nature of Packaging for deliveries matters a lot to clients hence packaging should be unique, informative, and quality.

• Process 

  Having a service delivery strategy in place is what will give you an edge in the industry compared to your competitors.

Strategies to consider for effective marketing of courier services and the entire business to the target audience.

• Market research

This involves collecting information about the target audience and competitors in the medical courier business to analyze market potential. Businesses offering courier services to pharmacies, hospitals, clinics, and health facilities or individuals in need of the service.

• Profiling the target audience

Another effective strategy is gathering data about the target audience according to consumer behavior, demographics, location, and more for marketing purposes. Effective marketing through audience profiling requires proper planning.

• Unique selling proposition

Let customers have reasons for considering your services instead of the competitor’s. Yes, this can be put in writing or demonstrating efficiency in service delivery over some time.

• Branding

Despite other components, business branding is paramount in marketing. This is what the public has in mind about the services offered and the company in general.

• Marketing channels

These are platforms that a business uses to reach out to the audience for awareness. Some appropriate marketing channels for a medical courier business include social media, blogs, a business website, and networking.

• Budgeting and funding

Last but not least, strategic marketing requires budgeting and funding. Get to know which marketing activities need to be facilitated to mobilize funds for example social media services, web designing, SEO, advertising, and more.

Closing – How to Start a Medical Courier Service Business

Starting a medical courier service business is a step-by-step process but requires commitment for things to play out profitably in the future.

From the time you carry out market research to the marketing phase, you must give in enough to walk the journey. The medical courier service industry still has lots of business potential today and in the future.