Business ideas
8 min read

How to Start a Profitable Medical Scrubs Business [11 Steps]

Learn how to start your own medical scrubs business in 11 simple steps. Get tips from professionals on how to choose the right products, price your items, and profitably scale your business.
Newfoundr

By Nick Cotter
Updated Feb 02, 2024

medical scrubs business image
This page may feature products from our affiliate partners, which could influence the products we discuss due to potential compensation. Despite this, our evaluations are impartial, based solely on our independent analysis. The content here is intended for informational purposes and should not be seen as legal advice. For professional guidance, consulting with a legal expert is recommended.
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1. Perform market analysis.

Starting a medical scrubs business requires a thorough understanding of the current market to identify opportunities and challenges. A comprehensive market analysis is the first step towards crafting a strategic plan that addresses customer needs, competitive landscape, and industry trends. Here's how to get started:

  • Research the existing medical scrubs market to identify key players, their market share, and the strategies they employ.
  • Analyze the demographic data of your target market, including healthcare professionals across hospitals, clinics, and other institutions.
  • Investigate the latest trends in medical scrubs, such as antimicrobial fabrics and eco-friendly materials, to understand consumer preferences.
  • Understand the pricing strategy of competitors to ensure your products are competitively priced without compromising on quality.
  • Assess the distribution channels used by current medical scrubs providers, which may include online platforms, medical supply stores, or direct sales to healthcare organizations.
  • Conduct surveys or focus groups with healthcare professionals to gather insights on desired features, styles, and improvements they seek in medical scrubs.
  • Monitor industry reports and publications to stay updated on regulatory changes that could affect the manufacturing and sale of medical scrubs.
medical scrubs business image

Are Medical Scrubs businesses profitable?

Yes, medical scrubs businesses can be profitable. Many companies have been able to find success by offering a wide selection of medical scrubs in various styles, colors, and sizes to meet the needs of their customers. Additionally, by offering competitive prices and good customer service, medical scrubs businesses can increase their profits.

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2. Draft a medical scrubs business plan.

Starting a medical scrubs business requires a well-thought-out plan to ensure its success. The business plan is a roadmap that outlines your business objectives, strategies, and the steps you need to take to achieve your goals. Here's a concise guide to drafting your medical scrubs business plan:

  • Executive Summary: Briefly describe your business, the mission statement, and the products (medical scrubs) you plan to offer. Highlight your business goals and the market need you aim to fulfill.
  • Market Analysis: Research and document the size of the healthcare apparel market, trends, your target audience, and competitor analysis. Identify your unique selling proposition.
  • Marketing and Sales Strategy: Outline how you will attract and retain customers. Include plans for branding, advertising, pricing, and distribution channels.
  • Operations Plan: Detail the day-to-day operations, including the location of your business, suppliers, manufacturing processes, and inventory management.
  • Management and Organization: Describe the structure of your business, the management team, and the roles and responsibilities of each member.
  • Financial Plan: Present projected financial statements, including income statements, balance sheets, and cash flow statements. Include startup costs and funding strategies.

How does a Medical Scrubs business make money?

A medical scrubs business typically makes money by selling scrubs, uniforms and other related items to medical professionals and other customers. They can also offer custom embroidery, personalized labels and other services for an additional fee. Additionally, some medical scrubs businesses may offer additional services like repairs, alterations, and cleaning.

3. Develop a medical scrubs brand.

Creating a distinctive medical scrubs brand is essential for standing out in the healthcare apparel market. It involves identifying your unique selling proposition, targeting the right audience, and crafting a brand message that resonates with healthcare professionals. Consider the following steps to develop your medical scrubs brand:

  • Conduct market research to understand your competition, identify gaps in the market, and pinpoint the needs and preferences of your target audience.
  • Develop a brand identity that includes a memorable name, logo, and color scheme that reflects the professionalism and reliability required in medical environments.
  • Create a mission statement and brand values that emphasize the quality, comfort, and functionality of your scrubs, while also highlighting any unique features or ethical practices.
  • Choose a brand voice and messaging that will consistently communicate your brand's personality and values across all marketing channels.
  • Consider partnerships with medical professionals or institutions to gain credibility and showcase the practicality of your scrubs in real-world settings.
  • Focus on product differentiation, such as offering customizable options, eco-friendly materials, or advanced fabric technologies, to set your brand apart.

How to come up with a name for your Medical Scrubs business?

When coming up with a name for your Medical Scrubs business, it is important to consider the overall message you want to portray. Consider the qualities that make your business unique and think of a name that resonates with those qualities. Brainstorm with friends, family, and even potential customers to get ideas for a name. Additionally, do some research to make sure your desired name is not being used by another business.

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4. Formalize your business registration.

Formalizing your business registration is a crucial step in launching your medical scrubs business, as it gives you legal recognition and helps protect your personal assets. This process varies by region, but generally involves a few key steps to ensure your business is compliant with local laws and regulations. Here's what you need to do:

  • Choose a Business Structure: Decide whether your scrubs business will be a sole proprietorship, partnership, LLC, or corporation. Each has different implications for liability, taxes, and ongoing requirements.
  • Register Your Business Name: Register the name of your business with the appropriate state agency. If you're using a name that's different from your own, you may need to file a 'Doing Business As' (DBA) form.
  • Obtain Necessary Licenses and Permits: Research and secure any required local, state, or federal licenses and permits needed to operate a medical apparel business.
  • Get an EIN: Apply for an Employer Identification Number (EIN) through the IRS for tax purposes, especially if you plan to hire employees.
  • Register for State Taxes: If applicable, register with your state's revenue agency to handle sales tax, payroll tax, and any other state tax obligations.
  • File Organizational Documents: If forming an LLC or corporation, file the necessary articles of organization or incorporation with your state's business filing agency.

Resources to help get you started:

Explore crucial materials for medical scrubs entrepreneurs, including publications, industry reports, newsletters, and more, for insights on market trends, operational best practices, and strategic business growth:

  • The Uniform Retailers Association (URA): Offers access to industry-specific reports, networking opportunities, and events that focus on the uniform market, including medical scrubs. Visit the URA website at uniformretailers.org.
  • Modern Healthcare: Provides healthcare business news and research, including insights relevant to the medical apparel market. Subscription information can be found at modernhealthcare.com.
  • Scrubs Magazine: Focuses on the needs and interests of nurses and allied health professionals, offering perspectives that can help tailor products and services. Online content is available at scrubsmag.com.
  • Medical Apparel Market Reports by Market Research companies such as Grand View Research or Allied Market Research: These reports provide deep insights into industry trends, market size, and competitive analysis, critical for strategic planning. Find detailed market analysis at grandviewresearch.com or alliedmarketresearch.com.
  • Small Business Administration (SBA): Offers extensive guides on starting a business, financial planning, and marketing strategies, which can be beneficial for establishing and growing a medical scrubs business. Access resources at sba.gov.

5. Acquire necessary licenses and permits for medical scrubs.

Starting a medical scrubs business requires compliance with various regulations to ensure legal operation. It is essential to acquire the necessary licenses and permits, which may vary depending on your location and the specific nature of your business. Here's a step-by-step guide to help you navigate this process:

  • Research Local Requirements: Check with your city, county, and state to understand the specific business licenses and permits required for apparel retail businesses in your area.
  • Register Your Business: Before you can apply for licenses, you need to have your business entity properly registered. This could be as a sole proprietorship, an LLC, a partnership, or a corporation.
  • Obtain a Sales Tax Permit: Most states require businesses to collect sales tax on goods sold. Apply for a sales tax permit through your state's department of revenue or taxation.
  • Apply for an EIN: If you plan to hire employees, you'll need an Employer Identification Number (EIN) from the IRS for tax purposes.
  • Check Zoning Laws: Ensure your business location is zoned for retail and doesn't have restrictions that could affect your operation.
  • Specialty Permits: Depending on your business model (e.g., if you're manufacturing scrubs), you may need additional permits related to health and safety, environmental regulations, or import/export if dealing with goods from overseas.
  • Stay Current: Licenses and permits need to be renewed periodically. Keep track of renewal dates to maintain compliance.

6. Open a business bank account and secure funding as needed.

Opening a business bank account is an essential step in managing your medical scrubs business's finances effectively, while securing funding can provide the necessary capital to scale your operations. Here are some key points to consider when accomplishing these critical steps:

  • Choose the right bank: Research banks that offer business banking services with benefits such as low fees, online banking, and good customer service. Consider also if they have experience with healthcare-related businesses.
  • Gather required documentation: Typically, you'll need your business registration documents, EIN (Employer Identification Number), ownership agreements, and possibly a business plan when opening your account.
  • Understand your funding needs: Determine how much funding you will need to start and grow your business, including purchasing inventory, marketing, and other operational expenses.
  • Explore funding options: Look into various funding sources such as small business loans, lines of credit, healthcare industry grants, angel investors, or crowdfunding platforms that are receptive to new entrepreneurs in the medical supplies field.
  • Prepare a solid pitch: If you're seeking investors, develop a compelling pitch that outlines your business plan, market analysis, and projected financials to demonstrate the potential for a return on their investment.
  • Financial management: Once your accounts are set up, use accounting software to keep track of your finances and consult with a financial advisor to make informed business decisions.

7. Set pricing for medical scrubs services.

Setting the right pricing for your medical scrubs services is crucial for balancing competitiveness and profitability. Consider the cost of materials, labor, and other expenses as you determine your price points. Below are key considerations to guide you in establishing your pricing strategy:

  • Assess the Costs: Calculate the total cost of producing your medical scrubs, including fabric, production, labor, and overheads to ensure your prices cover these expenses and yield a profit.
  • Know Your Market: Research competitors’ pricing to understand the going rate for medical scrubs in your target market. Aim to offer competitive rates without devaluing your product.
  • Value Proposition: If your scrubs offer unique features, such as better fabric or customization options, factor these into your pricing.
  • Volume Discounts: Consider offering discounts for bulk purchases to medical institutions, which can increase sales volume and customer loyalty.
  • Flexible Pricing Model: Implement a flexible pricing strategy that can be adjusted based on feedback, sales performance, and changes in cost or demand.
  • Legal Compliance: Ensure compliance with all regulatory requirements regarding pricing in your region to avoid legal issues.

What does it cost to start a Medical Scrubs business?

Initiating a medical scrubs business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $24000 for launching such a medical scrubsbusiness. Please note, not all of these costs may be necessary to start up your medical scrubs business.

8. Acquire medical scrubs equipment and supplies.

Starting a medical scrubs business requires careful selection of quality equipment and supplies to ensure that you can produce durable, comfortable, and functional scrubs for healthcare professionals. Here are some essential items you'll need to acquire:

  • Fabric: Purchase high-quality, medical-grade fabric that is comfortable, breathable, and easy to clean. Common materials include cotton, polyester, and spandex blends.
  • Sewing Machines: Invest in industrial-grade sewing machines that can handle heavy use and various fabric types.
  • Embroidery Machines: For custom logos and personalization, an embroidery machine is essential.
  • Cutting Tools: Acquire sharp, durable cutting tools like scissors and rotary cutters, as well as cutting mats and rulers for precision.
  • Patterns and Sizing Charts: Develop or purchase patterns for different scrub styles and sizes to maintain consistency in production.
  • Thread and Notions: Stock up on high-quality threads, buttons, zippers, and elastic that can withstand frequent washing and use.
  • Packaging Supplies: Ensure you have packaging materials such as bags, boxes, and labels for a professional presentation and safe delivery.
  • Inventory Management System: Implement an inventory management system to keep track of materials, finished products, and supplies.

List of Software, Tools and Supplies Needed to Start a Medical Scrubs Business:

  • Medical Scrubs
  • Computer
  • Design Software
  • Printer
  • Thread
  • Embroidery Machine
  • Fabric
  • Scissors
  • Measuring Tape
  • Business Plan
  • Website
  • Social Media Platform
  • Budgeting Software
  • Inventory Management System

9. Obtain business insurance for medical scrubs, if required.

Securing the right business insurance is an essential step in protecting your medical scrubs business against potential risks. It can safeguard your inventory, cover liability issues, and ensure the well-being of your employees. Consider the following types of insurance that might be required or advisable for your business:

  • General Liability Insurance: This protects against common business risks like customer injury or property damage.
  • Product Liability Insurance: Essential if you're manufacturing scrubs, as it covers damages related to product defects.
  • Commercial Property Insurance: It safeguards your business premises and inventory in case of fire, theft, or natural disasters.
  • Workers' Compensation Insurance: If you have employees, this is typically required by law and covers medical costs and lost wages for work-related injuries.
  • Business Owner's Policy (BOP): Often a cost-effective option, this combines general liability and commercial property insurance.
  • Professional Liability Insurance: Also known as errors and omissions insurance, it can be crucial if you’re providing consulting services within the healthcare industry.
  • Cyber Liability Insurance: If you're selling online, this can protect against data breaches and cyber attacks.

10. Begin marketing your medical scrubs services.

Marketing your medical scrubs services is crucial for attracting customers and establishing a strong brand presence. A strategic marketing plan should leverage both online and offline platforms to reach potential clients effectively. Here are some targeted steps to begin marketing your medical scrubs business:

  • Develop a professional website with an online store to showcase your products, making it easy for customers to browse and purchase your medical scrubs.
  • Utilize social media platforms like Facebook, Instagram, and LinkedIn to engage with your audience and share content related to your scrubs, including promotions and new arrivals.
  • Implement search engine optimization (SEO) techniques to improve your website's visibility in search engine results, attracting more organic traffic.
  • Partner with medical institutions and healthcare professionals to promote your scrubs through referrals and co-branded marketing efforts.
  • Offer discounts and incentives to first-time buyers and establish a loyalty program to encourage repeat business.
  • Attend medical conferences, trade shows, and networking events to showcase your products and build relationships with potential clients.
  • Invest in targeted advertising, both online through Google Ads and Facebook Ads, and offline in industry-related publications and local media.
  • Collect customer testimonials and reviews to build trust and credibility among prospective buyers.

  • Medical Scrubs
  • Computer
  • Design Software
  • Printer
  • Thread
  • Embroidery Machine
  • Fabric
  • Scissors
  • Measuring Tape
  • Business Plan
  • Website
  • Social Media Platform
  • Budgeting Software
  • Inventory Management System

11. Expand your medical scrubs business.

As your medical scrubs business grows, it’s crucial to scale your operations to meet increasing demand while maintaining the quality of your products and services. Here are some strategies to successfully expand your business:

  • Analyze market trends to identify new opportunities for product diversification, such as offering scrubs in a wider range of sizes, styles, or sustainable materials.
  • Strengthen your online presence through improved e-commerce capabilities, search engine optimization, and targeted social media advertising to reach a broader audience.
  • Collaborate with healthcare institutions for bulk orders and establish a loyalty program that encourages repeat business from healthcare professionals.
  • Explore international markets by researching regulations and consumer preferences, and adjust your offerings accordingly for global sales.
  • Enhance your supply chain efficiency with better inventory management systems and by establishing relationships with reliable suppliers to ensure consistent product availability.
  • Invest in marketing campaigns that highlight the unique qualities of your scrubs, such as comfort, durability, or fashion-forward designs.
  • Consider franchising or opening brick-and-mortar stores in high-demand areas to increase local visibility and accessibility.
  • Regularly collect and analyze customer feedback to continuously improve your products and customer service experience.