A medical scrub business is a business that produces different designs and types of medical scrubs. Medical scrub is a protective garment designed to be worn by the doctor, nurse, and others in the operating room. The garment was originally a gown.
Scrubs now include the shirt and pants worn by those who scrub in for surgery. The wearing of scrubs extends outside surgery in some hospitals and clinics. Four main fabric fibers appear regularly on scrubs’ tags: cotton, polyester, spandex, and rayon.
Statistics have it that the global scrub suits market was valued at US$ 21,722.45 million in 2020 and is projected to reach US$ 39,253.71 million by 2028; it is expected to grow at a CAGR of 7.68% from 2020 to 2028. Scrub suits are used highly in the medical and healthcare sectors.
Steps on How to Start a Medical Scrub Business
Table of Content
Conduct Market Research
The first step in the market research process for your medical scrub business is to develop market-based research questions in line with your overall business goal and objective. Please note that market research helps businesses measure their brand reputation among their target audience over a period of time.
It is a great way to measure progress for your business as well as compare your status to your competitors to see where you are trailing or where you have an advantage.
a. Who is the Target Market for Medical Scrub Business?
- Healthcare centers
- Medical Research institutes
- Health Workers
- Veterinary clinics
- Dental clinics
- Medical Students
b. Is the Medical Scrub Business a Profitable Business?
Yes, the medical scrub business is profitable because scrubs are needed at clinics and hospitals. Therefore, those who sell medical scrubs will make excellent profits.
c. Are There Existing Niches in the Industry?
Although there is no niche area in the medical scrub business, it is common for medical scrubs manufacturers to specialize in any of the following;
- Surgical Scrubs
- Nursing Scrubs
- Maternity and Patient Scrubs.
d. Who are the Major Competitors?
- Dress A Med
- Careismatic Brands
- Barco Uniforms
- Prestige Medical
- Tafford Uniforms
- Cambridge Fashion Inc.
- DiscoForms – Discount Uniforms & Scrubs
- Fydoo Uniforms LLC
- Patel Textiles INC.
- Northwest Scrubs
- Eagle Work Clothes
- Hampton Affirmations
- Sheehan Sales, Inc
- Lotsa Luxe, LLC
- Scrubs N Towels 4u
e. Are There County or State Regulations or Zoning Laws for Medical Scrub Business
Yes, there are county or state regulations and zoning laws for medical scrubs manufacturers and apparel manufacturers generally, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.
Please note that if you are planning to house your production factory in a purpose-built facility or propose an extension to an existing building, you must apply to your local planning department for approval.
f. Is There a Franchise for Medical Scrub Business?
Yes, there are franchise opportunities for the medical scrub business, and here are some of them;
- Scrub Superstore Franchise
g. What Do You Need to Start a Medical Scrub Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Production facility
- Computers, Laptops, and Servers
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Sewing Machines, Equipment, and Tools
- Startup Capital
Memorable Medical Scrub Business Names
- One Apparel© Medical Scrubs, Inc.
- MT Connect® Medical Scrubs and More, LLC
- Lilly Brownie Apparel© Medical Scrubs, Inc.
- Scrub Solutions® Medical Scrubs, Inc.
- Scrubs’ Expats™ Medical Scrubs, Inc.
- Judi Apparels™ Medical Scrubs, LLC.
- Sonia Kent© Medical Scrubs, LLC
- Shane Given® Medical Scrubs, Inc.
- Scrub Pros© Medical Scrubs Inc.
- Wike Bros© Medical Scrubs, Inc.
- Mili Cent® Apparels and Scrubs, Inc.
- Clarine® Medical Scrubs, LLC
- Stretch Prop® Medical Scrubs, Inc.
- International Scrubs Corporation, Inc.
- Gary Grass® Medical Scrubs USA LLC.
- Sol Shannon® Apparels and Scrubs, Inc.
- Denver Porto® Medical Scrubs USA LLC
- Greg Mohites® Medical Scrubs, LLC
- Starlings® Medical Scrubs USA LLC
- North Pole® Medical Scrubs USA LLC.
Register Your Business
a. What Type of Business Structure is Best for Medical Scrub Business
Even though there are several options when it comes to the business structure of a medical scrub business, the one that most players consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Medical Scrub Business?
- General Business License
- Fire, Health, and Safety Permit
- Zonal Permits (Applicable in some cities)
- Signage Permit
- Operational State Facility Inspections
d. What Type of Certification is Needed to Open a Medical Scrub Business?
You don’t need any special certification to go into the production of medical scrubs.
e. What Documents are Needed to Open a Medical Scrub Business
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting your own medical scrub production business, usually you may need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for someone to infringe on your work or copy your designs.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Medical Scrub Business
When it comes to starting a medical scrub business, the startup costs could range from $50,000 to over $250,000 depending on how much equipment the business owner decides to purchase and the production facility and space leased. Please note that this amount includes the salaries of all the staff for the first month of operation.
b. What are the Cost Involved in Starting a Medical scrub business?
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services Promotional expenses for the grand opening of the facility, in the amount of $3,500, and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring a business consultant – $2,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $75,600.
- The cost for facility remodeling and equipping the facility – $50,000.
- Other start-up expenses include stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
- The cost for start-up inventory (sewing materials) – $50,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs: $3,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Medical scrub business?
- The size of the medical scrub business
- The choice of location
- The required licenses and permits
- The type of facility
- The additional services offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing
- The cost for furnishing and equipping the facility
- The cost for insurance policy covers
- The cost for registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Actually, it is not compulsory to build a new facility for your medical scrub production business, but, if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.
e. What are the Ongoing Expenses of a Medical Scrub Production Business?
- Rent and lease
- Supplies and inventory (materials, sewing supplies, packaging supplies et al)
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Maintenance of machines
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (President) – $40,000 Per Year
- Factory Manager – $30,000 Per Year
- Merchandise Manager – $29,630,000 Per Year
- Fashion Designers – $29,000 Per Year
- Accountant (Cashier) – $28,500 Per Year
- Marketing and Sales Executives – $28,000 Per Year
- Tailors – $26,100 Per Year
- Customer Service Executive – $26,000 Per Year
- Security Guard -$24,000 Per Year
g. How Do You Get Funding to Start a Medical Scrub Production Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Judi Apparels™ Medical Scrubs, LLC.is a registered medical scrub production business that will be located in an industrial area in Fort Wayne, Indiana. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of long-term renewal. The facility has government approval for the kind of business we want to run and it is easily accessible.
We are in the medical scrub production business cum fashion industry to engage in the production of different types of medical scrubs and apparel. We are also in business to make profits and at the same to give our customers value for their money.
b. Products and Service
- Medical scrubs
- Medical Robes and Uniforms
c. Mission Statement
Our mission is to build a highly successful, profitable business venture whose brand will be known all around key cities in the United States of America and the globe.
Our vision is to be among the top 3 medical scrub production companies in the world.
d. Goals and Objectives
The goals and objectives of a medical scrub production business are to produce medical scrubs for the healthcare industry.
e. Organizational Structure
- Chief Executive Officer (President)
- Factory Manager
- Merchandise Manager
- Fashion Designers
- Accountant (Cashier)
- Marketing and Sales Executives
- Customer Services Executives
- Security Guard
a. SWOT Analysis
- Ideal location for a medical scrub production business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Excellent customer testimonials.
- Unique design and styles
- Financial Constraints
- A new business that will be competing with well-established medical scrub production brands.
- Inability to retain our highly experienced and qualified employees longer than we want
- A rise in the demand for medical scrubs is due to the ongoing Covid19 pandemic
- Online market, new services, new technology, and of course the opening of new markets
- Increase in the number of health workers within our target market area.
- The arrival of new medical scrub production business within our market space
- Unfavorable government policy and regulations.
- Economic uncertainty
- Liability problems
b. How Do Medical Scrub Production Businesses Make Money?
Medical scrub production businesses make money by selling a wide range of medical scrubs, medical uniforms, and apparel.
c. Payment Options
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Place adverts on both print (newspapers and healthcare magazines) and electronic media platforms
- Sponsor relevant community-based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
- Install your Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills in target areas
- List your medical scrub production business in local directories / yellow pages
- Advertise your medical scrub production business on your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions where your medical scrub production business is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo et al.
a. How Much Should You Charge for your Product?
Generally, the price of medical scrubs depends on the type, size, and brand of the product.
b. How Much Profit Do Medical scrub production business Owners Make a Year?
It depends, but available reports show that the national average earnings for medical scrub production business owners are approximately $51,000 per year. Medical scrub production business profits can average between $23,751 and $140,935, depending on your location, line specifics, expenses, marketing efforts, and company size.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the medical scrub production business
- The location the medical scrub production business is covering
- The management style of the business
- The business approach of the medical scrub production business
- The advertising and marketing strategies adopted by the business.
- The number of years the medical scrub production business is in business
d. What is the Profit Margin of a Medical Scrub Production Business?
Typically, medical scrub production businesses gain a handful of profit from all their products – margins usually range from 20% to around 60-70%. So, the revenue you would be making will be based on sales made by you monthly and the expenses that you incur while running the business.
e. What is the Sales Forecast?
- First Fiscal Year (FY1): $340,000
- Second Fiscal Year (FY2): $550,000
- Third Fiscal Year (FY3): $680,000
Set Up your Office
a. How Do You Choose a Perfect Location for Medical Scrub Production Business?
- The demography of the location
- The demand for scrubs in the location
- The purchasing power of businesses in the location
- Accessibility of the location
- The number of medical scrub production businesses and other medical uniforms production outlets in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Medical Scrub Production Business?
- Las Vegas, Nevada
- Los Angeles, California
- Chicago, Illinois
- Boston, Massachusetts
- Silver Spring, Maryland
- Rowland Heights, California
- Portland, Oregon
- New York City, New York
- Atlanta, Georgia
- Dallas, Texas
c. What Equipment is Needed to Operate a Medical Scrub Production Business?
- Industrial sewing machines
- Pattern makers for crafting designs.
- Women and men dress forms used for garment building.
- Hole punchers
- Straight and curved rulers
- Measuring tapes
- Notchers for marking seams.
- Dotted pattern paper.
- Sewing machine needles
- Hand sewing needles.
- Sketching books.
- Drapings tools.
- Dressmaking Stickpins
- Style tapes
- Fabric shears
- Soft lead pencil
- Marking pen
- Pattern plotter.
- Pattern-making software.
- CAD tools for designs
- Digital drawing tools
- Digitizer board for pattern scanning.
- Heat transfer machines for T-shirts.
- Print tables.
- Slat wall
- Labels and Tags
- Packaging materials
- Industrial pressing irons
- Supply of fabrics
When it comes to hiring employees for a standard medical scrub production business, you should make plans to hire a competent chief executive officer (president), factory manager, merchandise manager, accountant (cashier), marketing and sales executives, tailors, fashion designers, and security guard.
Launch the Business Proper
In recent times, no medical scrub production business opens its door without first organizing a party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the medical scrub production business, you will officially inform people in your city that you are open for business.
a. What Makes a Medical Scrub Production Business Successful?
- Choose a good location and showroom facility to launch the business
- Make sure your medical scrubs are unique and the finishing is topnotch
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your medical scrub production business
- Leverage on all available online and offline platforms to promote your medical scrub production business
b. What Happens During a Typical Day at a Medical Scrub Production Business?
- The production factory is open for the day’s work
- The facility is cleaned and well-arranged
- Factory swings into action (production of medical scrubs)
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Medical Scrub Production Business?
- Good fashion design sense
- Excellent tailoring skills
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining and bidding skill
- Work experience in a medical scrub production business environment
- Experience in managing people
- Experience in business administration.