Bayou Home Medical Supply

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Bayou Home Medical Supply is a home medical equipment supplier in Louisiana. We sell and rent hospital beds, wheelchairs, walkers, lifts, oxygen concentrators and bathroom safety items, and we supply diabetic, incontinence and wound care products by order. We deliver, set up and teach families how to use the equipment, so people recovering at home or aging in place can stay safe and comfortable.

Why this fits. When someone comes home from the hospital, the family often needs a bed, a wheelchair or oxygen the same day, and they have no idea where to start. Doctors, hospital discharge planners and home care agencies look for a local supplier that answers the phone, delivers fast and handles the paperwork. A reliable local supplier earns steady referrals and repeat orders.

Here is what our numbers show. In Year 1 we plan about 600 equipment sales, 800 equipment rental-months and 1,500 supply orders. That brings in sales of $433,400, growing to $1,403,514 by Year 5 as referral partners and customers grow. We expect a loss of about $34,600 in Year 1 because the rental fleet, the van and the staff are paid before payments arrive, then a profit of about $16,600 in Year 2, $89,300 in Year 3 and $211,800 by Year 5. Insurance and Medicare often pay about 58 days after delivery, so the plan holds a lot of cash for unpaid claims.

We need $290,000 in total. Of that, $151,600 is startup costs (the rental fleet, a delivery van, a showroom, billing software, opening stock, licensing and accreditation, a surety bond, attorney fees and insurance), and the rest is cash to cover the first months and the wait for payments. I am putting in $100,000 of my own savings and asking for a $190,000 SBA 7(a) loan.

I am Renee Thibodeaux, the owner and general manager, with eleven years in home health and medical equipment, including six years as an operations manager for a medical equipment supplier. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Bayou Home Medical Supply is a small, independently owned home medical equipment supplier in Louisiana, planned as a limited liability company (LLC). We serve patients, families, doctors, hospitals and home care agencies in our metro area and the parishes or counties around it from a leased showroom and warehouse.

Our mission. To get people the right equipment quickly and safely, and to take the confusion out of recovering or aging at home.

What we believe. Medical equipment is not a normal retail product. It must be the right kind, set up correctly and used safely. We ask about the patient's needs, check the doctor's order, deliver and set up the equipment, train the family and clean and inspect every rental between customers. We follow the rules for medical suppliers, keep clear records and never pay or accept payment for referrals.

What we offer:
- Equipment sales. Wheelchairs, walkers, canes, lifts, bath safety items, braces and other equipment sold in the showroom or delivered.
- Equipment rentals. Hospital beds, oxygen concentrators, wheelchairs and other items rented by the month, with delivery, setup and pick-up.
- Supply orders. Diabetic supplies, incontinence products and wound care supplies, ordered and delivered on a schedule.
- Paperwork help. We check the doctor's order, verify insurance and handle the claim.

Who we serve. Patients and families, seniors who want to stay at home, doctors and hospital discharge planners, home care agencies and assisted living communities.

What we do not do. We do not provide medical advice, supply a product without a required order, bill an insurer for items not delivered, pay for referrals or take work we are not accredited or licensed to do.

How we are run. I am the owner and general manager and I handle referrals, compliance and finance. A delivery and setup technician works with me from Year 1. A billing and intake specialist and a referral sales representative join in Year 2. A health care attorney and an accountant advise us.

Where things stand today. We have toured two buildings and have a lease offer on one, quotes for the rental fleet, the van and the software, a draft compliance plan reviewed by an attorney and early interest from a hospital discharge planner, two home care agencies and an assisted living community. (Replace this with where you really are.)

Problem & Opportunity

When a patient comes home, the family often has to find a bed, a wheelchair or oxygen within a day. Hospital staff may hand them a list of suppliers, and calls may go to voicemail. Equipment may arrive late or not be set up correctly. Families may not understand what insurance covers and may be billed for items they did not expect.

Doctors and discharge planners have the same problem. They need a supplier that delivers fast and fills out the paperwork correctly, because a delay can keep a patient in the hospital longer or lead to a fall at home.

Running a medical equipment business is also hard. Suppliers must be licensed and accredited, meet strict standards, hold a surety bond and keep careful records. Insurers and Medicare pay slowly, may deny claims for small errors and audit suppliers. A supplier must buy a lot of inventory and rental equipment before it is paid.

For a new owner, the hard parts are the cost of the fleet and inventory, the time it takes to get accredited and enrolled, building referral relationships and waiting about two months for payments. A company can have many customers and still run short of cash.

We want to be clear about what we know and do not know. Home medical equipment is a real and growing need as more people recover and age at home. We do not know how fast referrals will build, so our plan assumes a loss in Year 1 and a large cash cushion. We will use current local numbers on seniors, hospitals and competing suppliers in our final plan and will not overstate them.

Products & Services

Bayou Home Medical Supply will deliver the right equipment fast, set it up and handle the paperwork.

How it works, step by step:
1. Referral or call. A doctor, discharge planner, agency or family member calls with the patient's needs. A person answers the phone.
2. Order and insurance check. We confirm the doctor's order, check insurance coverage and tell the family what they owe before we deliver.
3. Choose the equipment. We recommend a product that fits the patient's size, home and ability, and show alternatives.
4. Deliver and set up. Our technician delivers, sets up and tests the equipment and removes packaging.
5. Teach. We show the patient and family how to use the equipment safely, leave a simple guide and give a number to call.
6. Bill. We file the claim, track payment and handle questions from the insurer and the family.
7. Service and clean. For rentals, we service and sanitize each item between customers and respond to repairs the same or next day.
8. Pick up and follow up. When the equipment is no longer needed, we pick it up and ask for feedback.

Why this approach is strong. Families remember a supplier that arrives quickly and shows them how to use the equipment. Doctors and agencies refer to the supplier whose paperwork is right and whose service is reliable.

Market Analysis

Who we serve: patients and families, seniors, doctors, hospital discharge planners, home care agencies and assisted living communities in our metro area and the counties or parishes around it.

Our primary group is patients coming home from the hospital or surgery and seniors who want to stay in their homes. Our secondary group is home care agencies, doctors' offices and assisted living communities that need a reliable supplier. We will use the most recent local numbers on seniors, hospitals and competing suppliers in our final plan.

How we sized our plan. We plan about 600 equipment sales, 800 rental-months and 1,500 supply orders in Year 1, growing to 1,470, 3,200 and 4,200 by Year 5. A rental-month is one item rented for one month. Our Year 1 prices are about $380 per equipment sale, $118 per rental-month and $74 per supply order, rising about 3% a year. Prices are an average across insurance and self-pay customers.

Demand data. Early interest from a hospital discharge planner, two home care agencies and an assisted living community covers part of the first months. We do not count on any one source. Referral work grows slowly and depends on trust.

We do not take every order. We decline items we are not accredited to supply, orders without a required prescription and requests that would break the billing rules.

Competitive Landscape

Other choices for patients and referral sources, and what makes us different.

- National medical equipment suppliers. They have large networks and long contracts with insurers. We offer a local owner and fast delivery.
- Other local suppliers. Some are very good. We compete on response time, setup and paperwork.
- Pharmacies and big retail stores. They sell some items. We offer rentals, setup and full service.
- Hospital and agency-provided equipment. It may be limited. We offer equipment for home use after discharge.
- Online retailers. They are cheap but give no setup or help. We offer delivery and training.

What makes us different.
- An answered phone and same-day or next-day delivery where possible.
- Setup, training and a simple guide with every delivery.
- Clean, inspected rental equipment.
- Careful paperwork and a clear explanation of what the family owes.

What we do not claim. We are new. Larger suppliers have bigger inventories and more insurance contracts. We plan to earn referrals one patient at a time.

Marketing & Sales Strategy

How we will reach customers.

Hospital discharge planners and doctors. We will visit discharge planners, case managers, therapists and doctors' offices, bring a one-page guide and offer a same-day delivery promise. We will follow all rules about marketing to health care providers and will not give anything of value for referrals.

Home care agencies and senior communities. We will meet agency directors and assisted living managers and offer a standing supply and equipment arrangement.

Families and community. We will offer simple guides on choosing a wheelchair or bed, host a table at senior fairs and church health days and keep a showroom open for walk-in customers.

Online. A website with a product list and an easy contact form, a Google business listing and reviews.

Pricing. About $380 per equipment sale, $118 per rental-month and $74 per supply order in Year 1, based on insurance allowable amounts or our self-pay price list.

Operations Plan

How the business will run.

Setup (the 6 to 9 months before opening). We will form the LLC, get an EIN and open a business bank account, confirm the state license and the federal supplier standards, begin accreditation and Medicare enrollment, buy a surety bond, sign the lease, buy the rental fleet and showroom stock, set up the billing and inventory software, write our compliance plan and hire and train staff. We will not bill any insurer until we are properly licensed, accredited and enrolled.

The showroom and warehouse. A leased building of about 3,500 square feet with a small showroom, a storage and cleaning area and a loading dock. Rent is $36,000 a year in Year 1.

Staffing. In Year 1: I serve as owner and general manager and handle referrals, compliance and billing questions. A delivery and setup technician, paid $34,000 a year, works with me. A billing and intake specialist, paid $38,000 a year, and a referral sales representative, paid $40,000 a year, join in Year 2. A second delivery technician joins in Year 3 and a second billing specialist in Year 4.

Costs. Product costs, repairs and cleaning are about $245 per equipment sale, $24 per rental-month and $49 per supply order in Year 1. Insurance is about $9,000 a year, delivery van fuel and maintenance about $8,400, a billing service and software about $7,200, referral marketing about $12,000 and accreditation, compliance and training about $6,000.

Compliance. We keep records of every order, delivery and claim, train staff on privacy and billing rules and review our records every month. We do not pay or accept payment for referrals.

Payments. Insurers and Medicare often pay about 58 days after delivery. Self-pay customers pay at delivery. Our plan holds about $69,344 in unpaid claims at the end of Year 1.

Insurance. We carry general liability, product liability, commercial auto, workers' compensation and professional coverage.

Management & Organization

The people who will run Bayou Home Medical Supply.

Renee Thibodeaux, owner and general manager. Eleven years in home health and medical equipment, including six years as an operations manager for a medical equipment supplier, where she handled deliveries, billing, accreditation and compliance. She leads operations, referrals, compliance and finance. (Replace this paragraph with your own background.)

Delivery and setup technician (from Year 1). Delivers, sets up, trains families and services equipment. A second joins in Year 3.

Billing and intake specialist (from Year 2). Checks orders, verifies insurance and files claims. A second joins in Year 4.

Referral sales representative (from Year 2). Builds and keeps relationships with doctors, hospitals and agencies, following all legal rules on referrals.

Outside advisors. A health care attorney, an accountant, an insurance broker, a physical therapist and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner and general manager $52,000, delivery and setup technician $34,000, billing and intake specialist $38,000 and referral sales representative $40,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (6 to 9 months ahead): sign the lease, confirm the state license and federal standards, begin accreditation and Medicare enrollment, buy the surety bond, buy the rental fleet and stock, set up the billing software and book at least 5 referral partners.
- Year 1: about 600 equipment sales, 800 rental-months and 1,500 supply orders, with one technician; $433,400 in sales and a loss of about $34,600.
- Year 2: a billing and intake specialist, a referral sales representative and about 1,500 rental-months; $725,120 in sales and a profit of about $16,600.
- Year 3: a second delivery technician and about 2,200 rental-months; $990,261 in sales and a profit of about $89,300.
- Year 4: a second billing and intake specialist and about 2,800 rental-months; $1,220,569 in sales and a profit of about $145,700.
- Year 5: about 3,200 rental-months and 1,470 equipment sales; $1,403,514 in sales and a profit of about $211,800.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: referrals received, deliveries made, time from call to delivery, claims sent, claims paid and denied, unpaid claims and their age, rental fleet in use and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $290,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $151,600, listed item by item in the Startup Costs section: $52,000 for rental fleet: hospital beds, wheelchairs, walkers, lifts and oxygen concentrators; $21,000 for used delivery van with a ramp and lift; $6,500 for cleaning and sanitizing equipment, tools and testing gear; $7,500 for showroom fixtures, shelving and counters; $5,500 for billing, inventory software and computers; $24,000 for stock for sale: braces, supplies and mobility aids; $7,800 for lease deposit and first month of rent; $9,500 for state license, accreditation, Medicare enrollment and surety bond premium; $6,500 for attorney: compliance program, patient forms and LLC setup; $5,500 for sign, brochures and a website; $5,800 for insurance down payment.
- The cash the business uses before it breaks even, about $68,100. Insurers and Medicare often pay about 58 days after delivery, and the rental fleet and stock are bought before payments arrive, so a lot of cash is tied up before the business breaks even.
- A cash cushion of about $46,500: three months of Year 1 operating costs.
- Together, the cash used before break even and the cushion come to about $114,600, and the three pieces add up to about $266,150, rounded up to the nearest $500: $266,500.
We are raising $23,500 more than that, $290,000 in all, to cover a slower first year than planned, claims that are delayed or denied and the cost of adding staff in Year 2. With this funding, the lowest year-end cash balance is about $59,100, at the end of Year 2.

Where the money comes from:
- My own money: $100,000.
- SBA 7(a) loan: $190,000.

Kind of funding we are looking for. An SBA 7(a) loan from a lender that finances health care supply businesses, backed by my own savings and the equipment and stock as collateral.

How we will pay it back. We expect a loss of about $34,600 in Year 1, a profit of about $16,600 in Year 2, a profit of about $89,300 in Year 3, a profit of about $145,700 in Year 4 and a profit of about $211,800 in Year 5. With this funding, the business has money in the bank at the end of every year of the plan. Our loan is the SBA 7(a) loan at 12.5% over 10 years, about $2,781 a month. That payment is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: the equipment and stock as collateral and my personal guarantee.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: open with a smaller rental fleet, no showroom and a rented van for the first months, supplying only the equipment our first referral partners need, which lowers startup costs and the loan.
- Phase 2: once the first accreditation and referrals are in place, add the showroom, the van and the billing specialist and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and a personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Your state license, accreditation and enrollment applications.
- Your surety bond quote and insurance quotes.
- Quotes for the rental fleet, van, stock and software.
- Your compliance plan, patient forms and delivery records.
- Letters of interest from discharge planners, doctors and agencies.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Equipment Sales (per item): about $380 in Year 1, rising to $428; about $245 in direct costs, rising to $276; about 600 in Year 1, growing to 1,470.
- Equipment Rentals (per rental-month): about $118 in Year 1, rising to $133; about $24 in direct costs, rising to $27.01; about 800 in Year 1, growing to 3,200.
- Supply Orders: Diabetic, Incontinence and Wound Care (per order): about $74 in Year 1, rising to $83.29; about $49 in direct costs, rising to $55.15; about 1,500 in Year 1, growing to 4,200.
- A rental-month is one item rented for one month. Equipment sales average about $380 in Year 1 with about $245 in cost; rentals about $118 per month with about $24; supply orders about $74 with about $49. Prices are an average across insurance and self-pay customers and rise about 3% a year.
- We add rental equipment and replace the van as the business grows ($14,000 in Year 2, $16,000 in Year 3, $20,000 in Year 4 and $16,000 in Year 5).
- Pay (a full year, per person): owner and general manager $52,000; delivery and setup technician $34,000; billing and intake specialist $38,000; referral sales representative $40,000.
- Other yearly costs in Year 1: rent $36,000, insurance $9,000, delivery van fuel and maintenance $8,400, billing service and software $7,200, referral marketing to doctors, hospitals and home care agencies $12,000, accreditation, compliance and training $6,000, accounting and legal $5,400, payroll taxes and benefits $16,000. These grow between 3% and 12% a year.
- Startup equipment and later purchases ($92,500 in Year 1, then $14,000, $16,000, $20,000 and $16,000) are spread evenly over five years in the plan's books.
- Customers and payers pay about 58 days after service, so at the end of Year 1 about $69,344 is still owed to us. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs