There’s no simple “yes” or “no” answer that goes into answering whether or not you should start an ultrasound business. Just like any business type, there are a seemingly infinite number of factors that go into whether or not a business will be successful, and no amount of analyzing will give you a perfect “sure-fire” confirmation that it’ll work out.
So how do you figure out if it’s a good idea? While it’s impossible to predict success with 100% accuracy, you can look at various “identifiers” in business and your market to help analyze just how good (or bad) your potential is as a business owner!
Analyze Your 3D/4D Ultrasound Market
First start by learning more about your local market. You’ll want to look at key “tells” in your market that will provide you with more information about your market, like potential customers, competition, supply and demand, and more. These are known as the Porter’s 5 Forces.
Threat of New Entrants
When starting any venture or trying to break into any market, if it’s highly profitable, it will inevitably invite other aspiring business owners to tap into profit potential in your market, just like you are. As more people attempt to open businesses in the market you are in, the lower the overall profitability becomes for that industry.
Threat of Substitutes
When there’s a chance that a customer might find an alternative to your product or service (3D ultrasound business), then you are facing the Threat of Substitutes. Even with competitors, the Threat of Substitutes “hurts” both you and the competitors in your space, because a customer is switching to a completely different product or doing business in a different industry.
Bargaining Power of Buyers
At the end of the day, it’s up to the customer to choose whether or not they will do business with you. When a buyer/customer has “high power,” they typically have more alternative purchase choices, other competitive pricing to work with, and otherwise has any reason to get what they need without going to you.
Businesses can implement “loyalty programs” and other incentives and deals to help keep the “buying power” low and keep customers in their own store. In a 3D ultrasound business, this could be impacted by the ultrasound machine cost or how much you will charge for ultrasound machine rental.
Bargaining Power of Suppliers
When businesses rely on suppliers, whether it’s of a particular service, physical products (like your 3D ultrasound machine equipment), or other raw materials, they will generally have more “power” over the business. This allows them to manipulate their prices to force you to pay more for the same product or service, simply because there is no-where else to get it.
For the customer, Industry Rivalry is a good thing, but as a business owner, this will impact just how much profit you are able to generate in your market. Not all competitors in your space will try to squeeze you out of the market, but some may have large advertising budgets, bigger teams, and other factors that will allow them to be more aggressive about pushing you out of the market.
So, Should I Start an Ultrasound Business?
I can’t tell you yes or no, because you want to analyze your own business potential and market conditions. Only when you’ve done a little market research will a financier be able to assist with the financial backing of any and all of your equipment, capital needs, and whatever other financial needs you have.
Ready for a free Ultrasound Equipment Financing quote?
Click the link below! or Call 866-458-4777