This economy’s hitting small businesses hard. It’s not uncommon to see store closing and going out of business signs adorning the windows of your local shopping center. Still, in these tough times, hope remains. There are brave souls out there looking to transition into a new career or determined to make their mark in the business sector.
There are two businesses that come highly recommended to these new proprietors:
- Franchises
- Leasing durable medical equipment (DME)
Neither of these investments looks like much on the surface, but dig a little deeper and you may be surprised at what you find out. We don’t have enough time to cover both possibilities in one article, so for clarity’s sake, this one will focus on investing in a DME business.
Getting the Wheels Turning
When you think about starting your own business, a lot of possibilities come to mind. It’s doubtful that most of you jumped right onto the DME bandwagon, but you can always join in later on, especially when you find out how to plan for success.
Running a successful DME business requires three things:
- A business plan
- Funding
- Equipment
Don’t cross this possibility off of your list because you think these things are too hard to acquire. Truthfully, every startup should have a business plan and the funding to back it up.
A business plan gives you a budget and a model to follow. These two things are very important, especially in the beginning. The best way to draft a business plan is to approach your small business association for help. Also, find out what your DME competitors are up to. It will help you get business ideas and set competitive pricing.
Once your business plan has been drafted, it’s time to retain financial backing. For an unknown startup company, there are two basic ways to go about this:
- Investors
- Bad credit business loans
Even in a booming economy, investors are hard to find if you don’t have a reputation in your chosen field. That leaves us with the second option: unsecured financing.
The Value of a Recession-Proof Business
The reason you’ll probably need bad credit business loans is because the success of your idea is still unproven. In the early stages of the startup game, your best bet for financing is the unsecured route. You may not have much to recommend you, but don’t forget about your business plan.
You’ll still have to meet some basic eligibility requirements, but a business plan shows the lender you’re serious, responsible, and innovative. These three qualities will translate into ROI later on. How can you be sure? People will always need DME. That’s why it’s considered a recession-resistant business. In fact, once you receive bad credit business loans, you can use the funds however you choose:
- Purchase or rent a property
- Obtain licensing/permits
- Get equipment from distributors
- Partner with insurance companies
The funding will give you a leg up in recession-resistant industries.
