A medical waste disposal company disposes medical waste, and medical waste is basically comprised of wastes generated in hospitals, laboratories, clinics, diagnostic centers et al and this waste can be harmful to human beings if not properly handled.

Data made available by IBISWorld shows that there are 160 Medical Waste Disposal Services in the US as of 2022, an increase of 1.8 percent from 2022. The industry rakes in $4 billion annually with an employee strength of 14,100 people.

The number of businesses in the Medical Waste Disposal industry in the US has grown 1.8 percent per year on average over the five years between 2017 – 2022. California (103,000,000 businesses), Texas (91,000,000 businesses), and Florida (43,000,000 businesses) are the States with the greatest number of Medical Waste Disposal businesses in the US.

Steps on How to Start a Medical Waste Disposal Business

  1. Conduct Market Research

If you are considering starting a medical waste disposal business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process is to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source information that will help you maximize your business, give you a reliable clue on what your potential market will be looking for from a medical waste disposal business, and also help you operate your medical waste disposal business with less stress.

a. Who is the Target Market for Medical Waste Disposal Business
  • Hospitals and medical facilities.
  • Nursing homes
  • Maternity homes
  • Medical laboratories
  • Pharmacies
  • Dental clinics
  • Optics clinics
  • Botox clinics
  • Blood banks.
b. Is Medical Waste Disposal Business a Profitable Business?

Yes, the medical waste disposal business is very profitable. Available data shows that U.S. healthcare facilities spend $10 billion annually to dispose of waste materials, including solid, medical, HIPAA, pharmacy, pathology, chemotherapy, nuclear, chemical, electronic waste, among others.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the medical waste disposal business because the medical waste disposal business is a subset of the waste disposal and recycling industry.

d. Who are the Major Competitors?
  • Stericycle Inc.
  • Sharps Compliance Inc
  • Waste Management (WM)
  • Citiwaste
  • Sanpro Waste
  • MedPro Waste Disposal.
  • BioServeUSA
  • BioMedical Waste Solutions
  • PureWay Total Compliance
  • Medasend
  • Go Green Solutions, LLC
  • Total Med Transportation Corp
  • Advowaste Medical Services
  • Daniels Health
  • MedAssure Services.
e. Are There County or State Regulations or Zoning Laws for Medical Waste Disposal Business?

Yes, there are county and state regulations for the medical waste disposal business. It should be noted that medical waste is regulated by state environmental and health departments. EPA has not had authority, specifically for medical waste, since the Medical Waste Tracking Act (MWTA) of 1988 expired in 1991. Contact your state environmental protection agency and your state health agency for more information regarding your state’s regulations on medical waste.

Other federal agencies have regulations regarding medical waste. These agencies include the Centers for Disease Control (CDC), Occupational Safety and Health Administration (OSHA), U.S. Food and Drug Administration (FDA), and potentially others.

f. Is There a Franchise for Medical Waste Disposal Business

Yes, there are franchise opportunities for the medical waste disposal business, and here are some of them;

  • Bio-One (Total investment: $75,500 – $85,150)
  • Stericycle
  • Rumpke Consolidated Companies Inc.
  • Advanced Disposal Services LLC
  • Clean Harbors
  • Waste Management Inc
  • Citiwaste
  • Sanpro Waste
  • MedPro Waste Disposal
  • Waste Connections Inc
  • Progressive Waste Solutions Ltd
  • Sharps Compliance
  • BioServeUSA
  • BioMedical Waste Solutions
  • PureWay Total Compliance.
g. What Do You Need to Start a Medical Waste Disposal Business?
  • A Feasibility Report
  • Business and Marketing Plans
  • Business Licenses and Permits
  • Waste Trucks
  • Source of Supplies
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Insurance
  • EIN (Employer Identification Number)/Federal Tax ID Number.
  • A Corporate Bank Account
  • Employees
  • Operational Capital (For Ongoing Expenses)
  1. Memorable Name ideas for Medical Waste Disposal Business

  • Stripes© Medical Waste Disposal, Inc.
  • Lone Trail® Medical Waste Disposal, LLC
  • Reliable© Medical Waste Disposal, Inc.
  • Medic Waste Solutions® Medical Waste Disposal, Inc.
  • Clean Up™ Medical Waste Disposal, Inc.
  • Green Dos™ Medical Waste Disposal, LLC.
  • Block Watson© Medical Waste Disposal, LLC
  • No Smell® Medical Waste Disposal, Inc.
  • Go Green© Medical Waste Disposal, Inc.
  • City Clean© Medical Waste Disposal, Inc.
  • Bio Space® Medical Waste Disposal, LLC
  • Maine One® Medical Waste Disposal, LLC
  • Waste Takers™ Medical Waste Disposal, LLC
  • Up Takers© Medical Waste Disposal, Inc.
  • Clean Up® Medical Waste Disposal, Inc.
  • Wednesday ™ Medical Waste Disposal, Inc.
  • Medic Link™ Medical Waste Disposal, Inc.
  • Waste Pro© Medical Waste Disposal, Inc.
  • Metropolitan Waste® Medical Waste Disposal, LLC
  • Medic Plus™ Medical Waste Disposal, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for Medical Waste Disposal Business?

When it comes to the business structure of a medical waste disposal business, the one most players in this line of business 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 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 Waste Disposal Business
  • Business License (Medical and Hazardous Waste Disposal License)
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Zonal Permits
  • Signage Permit
  • Operational State Facility Inspections
d. What Type of Certification is Needed to start a Medical Waste Disposal Business

You don’t need any special certifications to start and operate a medical waste disposal business.

e. What Documents are Needed to Open a Medical Waste Disposal Business
  • DBA
  • EIN
  • Business and liability insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval (Certificate of Occupancy (CO))
  • Certificate of Incorporation
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document
  • Contract Document
  • Company Bylaws
  • Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a medical waste disposal business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Medical Waste Disposal Business

The startup cost for a medical waste disposal business is not uniform. But basically, a medical waste disposal business will cost from $10,000 to over $100,000 to start, and that can easily go higher depending on your overall business goals and objectives.

b. What are the Cost Involved in Starting a Medical Waste Disposal Business
  • The Fee for registering the business in the United States – $725.
  • The budget for legal fees, insurance, permits, and license – $5,000
  • The cost of leasing a parking facility – $50,000
  • The amount needed to renovate your Facility (electrical, furnishings, plumbing, painting, and landscaping) – $10,000.
  • The Cost for the purchase of furniture and equipment (Flat Screen TVs, computers, printers, and cabins et al) – $10,000
  • Phone and utility deposits – $3,500
  • The Cost for the purchase of waste disposal trucks – $25,000.
  • Cost for payment of salaries for the first 3 months of operations – $50,000
  • Additional Expenditure (Business cards, Signage, Adverts, and Promotions et al) – $5,000
  • The cost of launching an official website – $600
  • Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening a Medical Waste Disposal Business?
  • The size of the medical waste disposal business
  • The choice of location
  • The required licenses and permits
  • 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 medical waste disposal business operational facility
  • The cost for insurance policy covers
  • The cost for registering the business
  • 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 waste disposal business especially if you are not recycling medical waste. But, if you have the required finance, it will pay you to build your parking facility and administrative office. 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 waste disposal business
  • Gas and lubricants
  • Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
  • Salaries of employees
  • Waste truck maintenance
  • Insurance
  • Marketing and business promotion costs
f. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $68,000 Per Year
  • Admin and HR Manager – $48,000 Per Year
  • Transport and Logistics Manager – $48,000 Per Year
  • Marketing and Sales Executive (Business Developer) – $38,000 Per Year
  • Accountant $38,000 Per Year
  • Waste Truck Drivers – $36,800 Per Year
  • Customer Service Officer (Receptionist) – $26,100 Per Year
g. How Do You Get Funding to Start a Medical Waste Disposal 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 your friends.
  1. Write a Business Plan

a. Executive Summary

Medic Plus™ Medical Waste Disposal, Inc. is a U.S based medical waste disposal company with a strong bias for recycling medical waste. We have been able to secure a standard and well-positioned facility in an industrial estate in Scranton – Pennsylvania; a facility that is highly suitable for the kind of medical waste recycling plant that we want to build.

We are in the waste management and recycling industry to contribute our quota in saving the earth and also to compete in the highly competitive waste management and recycling industry not only in Scranton – Pennsylvania but also throughout the United States market.

Medic Plus™ Medical Waste Disposal, Inc. will initially be involved in the collection and disposal of medical waste but will in the nearest future engage in the recycling of medical waste.

b. Products and Service
  • Medical waste collection
  • Medical waste treatment and disposal
  • Returns and recall management.
c. Mission Statement

Our mission is to ensure that we build a successful medical waste disposal business that will operate not just in Scranton – Pennsylvania but in the whole of the United States of America.

Vision Statement

Our Vision is to become one of the preferred choices for individuals and organizations when it comes to medical waste disposal in the United States of America.

d. Goals and Objectives

The goals and objectives of a medical waste disposal business are to properly dispose of medical waste to eliminate unwanted pollution in the environment.

e. Organizational Structure
  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Transport and Logistics Manager
  • Marketing and Sales Executive (Business Developer)
  • Accountant
  • Waste Truck Drivers
  • Customer Service Officer (Receptionist)

Marketing Plan

a. SWOT Analysis
Strength:
  • Excellent operational history
  • Attention to detail.
  • Accurate estimates with no hidden costs.
  • Experience and trained professionals.
  • Excellent customer testimonials.
  • Reliable and efficient waste trucks and service.
Weakness:
  • Not enough existing clientele to run at full capacity immediately
  • The owner is new to large scale marketing
  • We will need a loan to purchase brand new waste trucks
  • Lack of economies of scale.
Opportunities:
  • A growing number of medical facilities generate medical waste.
  • Favorable government policies
  • Build upon existing clientele
  • Online market, new services, new technology, and of course the opening of new markets.
  • An increase in the services offered by hospitals due to the current coronavirus pandemic hence more medical waste will be generated.
Threat:
  • Loans diminish profitability until they are paid off
  • The first year will be financially tight while we gain customers and pay off loans
  • Competition in the area could increase
  • Management of employees requires time, money, and efforts
  • The government could change its regulatory status and decide to enforce strict regulations that can strangulate our business.
b. How Do Medical Waste Disposal Companies Make Money?

Medical waste disposal companies make money by offering services like;

  • Medical waste collection
  • Medical waste treatment and disposal
  • Returns and recall management.
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
  • Introduce Your medical waste disposal business by sending introductory letters alongside your brochure to blood banks, dispensaries, hospitals, clinical labs, medical facilities, pharmacies, and key stakeholders in and around your city and state
  • Use friends and family to spread the word about your business
  • Post information about your company and the services you offer on bulletin boards in places like schools, libraries, and local coffee shops et al
  • Place a small or classified advertisement in the newspaper, or local publication about your company and the services you offer
  • Leverage on referral networks such as agencies that will attract clients who would need your services
  • Advertise your business in relevant health magazines, newspapers, TV, and radio stations.
  • Attend relevant expos, seminars, and business fairs et al to market your services
  • Engage in direct marketing approach

Financial Projection

a. How Much Should You Charge for your Product/Service?

Most medical waste disposal companies charge based on the volume and distance of medical waste to be disposed of. Depending on volume, a monthly pickup will often cost less than a weekly pickup. Volume can significantly increase or decrease the per-box rate. On average, a medical facility will ship about two boxes a month—resulting in approximately $40 to $80 per month for medical-related waste disposal.

b. How Much Profit Do Medical Waste Disposal Business Owners Make a Year?

It depends, but the available report shows that on average, a medical waste disposal business owner should net between $120,000 to over $300,000 per year assuming they have a steady clientele.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the medical waste disposal business
  • The location the medical waste disposal business is covering
  • The management style of the medical waste disposal business
  • The business approach of the medical waste disposal business
  • The advertising and marketing strategies adopted by the medical waste disposal business.
  • The number of years the medical waste disposal business is in business
d. What is the Profit Margin of a Medical Waste Disposal Business?

The profit margin of a medical waste disposal business is not fixed. It could range from 40 percent to 75 percent depending on the distance of the waste to be transported.

e. What is the Sales Forecast?
  • First Fiscal Year (FY1): $250,000
  • Second Fiscal Year (FY2): $400,000
  • Third Fiscal Year (FY3): $600,000
  1. Set Up your Office

a. How Do You Choose a Perfect Location for Medical Waste Disposal Business
  • The demand for the services offered by medical waste disposal companies in the location
  • The purchasing power of businesses in the location
  • Accessibility of the location
  • The number of medical facilities and medical waste disposal companies in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security et al
b. What State and City is Best to Open a Medical Waste Disposal Business
  • Warwick, Rhode Island
  • Mount Pleasant, South Carolina
  • Los Angeles, California
  • San Antonio, Texas
  • Cambridge, Massachusetts
  • Chattanooga, Tennessee
  • Lewiston, Maine
  • Grand Rapids, Michigan
  • Chandler, Arizona
  • Colorado Springs, Colorado
c. What Equipment is Needed to Operate a Medical Waste Disposal Business

You should be prepared to purchase logistics and transport management software and waste trucks. You will also need computers or laptops, an internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others, and all these can be gotten as fairly used.

  1. Hire Employees

When it comes to hiring employees for a standard medical waste disposal business, you should make plans to hire a competent chief executive officer (you can occupy this position), admin and HR manager, transport and logistics manager, marketing and sales executive (business developer), accountant, waste truck drivers, and customer service officer (receptionist).

  1. Launch the Business Proper

You can choose to organize an opening party to officially launch your 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 business, you will officially inform people in your city that your medical waste disposal business is open for business.

a. What Makes a Medical Waste Disposal Business Successful?
  • Choose a good location and reliable waste trucks
  • Partner with medical facilities
  • Hire only competent, hardworking, and trustworthy staff
  • Be deliberate with your marketing sales approach
  • Encourage the use of word of mouth to promote your medical waste disposal business
  • Leverage all available online and offline platforms to promote your medical waste disposal business.
b. What Happens During a Typical Day at a Medical Waste Disposal Business
  • The business is open for the day
  • The waste trucks are deployed to the field for the day’s collections and disposal
  • Scheduled maintenance and servicing of waste trucks are carried out
  • Marketing/website upkeep
  • Administrative duties
  • The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Medical Waste Disposal Business
  • Good driving skills
  • Excellent waste management skills
  • Good marketing and sales skills
  • Customer services skills
  • Interpersonal skill
  • Business management skills
  • Bargaining skill
  • Work experience in the medical waste disposal industry
  • Experience in managing people
  • Experience in business administration
  • Experience in handling logistics and transportation software.