Buying vs. Starting a Durable Medical Supply Company: A Strategic Perspective
For business entrepreneurs venturing into the world of durable medical supplies, a common dilemma arises: Should you buy an existing DME (Durable Medical Equipment) company or start a brand-new one from scratch? The answer to this question is not one-size-fits-all and depends on various factors.
The Pros of Buying an Existing DME Company
If you have the financial resources and are prepared to invest in an existing DME company, there are several advantages to consider:
- Established Track Record: Start by evaluating how long the existing DME company has been in business. A well-established track record indicates stability and a proven customer base.
- Accreditation: Accreditation is a critical factor in the DME industry. Check if the existing company holds relevant accreditations, which can streamline your entry into the market.
- Product Line and Infrastructure: Visiting the company's physical location allows you to assess their product offerings and the overall appearance of its business. A well-organized setup can save you time and resources in building your own infrastructure.
- Bonds and Insurance: Verify if the existing DME company has an active surety bond and insurance coverage. Ensure that there are no lapses or issues with their bonds or liability insurance.
- Medicare and Medicaid Enrollment: A crucial aspect of the DME business is Medicare and Medicaid enrollment. Confirm that the existing company has the necessary enrollments in place.
- Legal and Regulatory Compliance: Investigate if the company has a clean legal record, free from sanctions, lawsuits, or pending orders. A clean compliance record is a significant asset.
The Efficiency of Purchasing an Existing Business
Purchasing an existing DME business with a strong background and profile can offer significant efficiency benefits. You can save time as the transition of ownership is typically faster compared to starting a new venture from scratch. Additionally, existing businesses often have established billing processes in place, allowing you to start generating revenue more quickly.
Starting a New DME Business
On the other hand, if you opt to establish a new DME business, be prepared for a more extended timeline. This process typically takes about 6 to 8 months, involving steps such as accreditation, Medicare and Medicaid enrollment, and building your client base from the ground up.
Consult with WCH for Informed Decisions
Whether you choose to buy an existing DME company or embark on the journey of creating a new one, it's essential to make informed decisions. Consult with our experts, who can provide invaluable guidance and support for your DME business endeavors.
If you are financially prepared and find an existing DME company with a clear background, it can be a strategic move. However, if you prefer to build a business from the ground up, be prepared for a longer journey to establish your presence in the market. Regardless of your choice, WCH is here to consult and assist you on your path to success in the DME industry.