Scrubs 'n Essentials

We  provide Scrubs (medical apparel) to medical professionals. This is done through a retail store, on-line sales and at pop up sales at hospitals.

 Statement of Purpose

Scrubs ‘n Essentials, located in Canton, GA was founded in 2007, and purchased in 2018 by the current owner. At this time,  we would like to buy my partners out and grow the business to be the strongest supplier of scrubs and accessories in Georgia through the retail store as well as the outside sales team.

  

 

 

1.      One year ago, Scrubs ‘n Essentials purchased our biggest competitor, and as the hospitals have opened back up, the on-site sales for these facilities have increased and we are now booked well into 2023, but we lack inventory to run this business successfully. As of Sep 2022, trailing sales are at 400k, but we could easily have sales closer to 1 million dollars with adequate funding.

2.      We have grown this business from less than 200k per year to just over 500K in 2021. We now now has the opportunity to bring on a new partner who has extensive experience as a COO in large corporations and with his expertise, take this business to the next level.

3.      Over the past year, the business has expanded from the state of Georgia to sales in Indiana, Alabama, and now has requests to provide services in Florida, and Arkansas. We are ready to take this step providing we can obtain the funding.

We are driven by the opportunity to give back to the community through our hospital fundraisers. We love what we do, but we also love to make money while our hospital volunteers make money to purchase products: such as wheelchairs and X-ray equipment for their hospitals.  The medical industry is growing daily. Hospitals are expanding, physicians’ offices are popping up everywhere and we are even seeing a trend for schools, hotels, and hairdressers starting to purchase our products. We are driven by the opportunity to grow exponentially with our business, while giving back to our community.

 

B.  Description of the Business:

Scrubs ‘n Essentials is a medical apparel (scrubs) business that has been open to the public for over a decade. The business was purchased in 2018 and  an outside sales team was added at that time.  The store sales have grown by at least 15% each year and the added outside sale doubled sales after just two years of purchase.

 

Scrubs ‘n Essentials sells medical apparel and accessories including: scrubs, long and short sleeve tee shirts, compression socks, shoes, stethoscopes, lab coats and jackets. 

 

The business is comprised of:

1.      Storefront- Retail business 

a.       Foot traffic from existing customer and referrals

b.      Outside sales through office fittings: We target offices of 25 or more employees for these sales.

2.      On-site Hospital Fundraising- 2-4 day sales set up in hospitals.  These events typically range in Sales from 10k-40k each

3.      E-commerce: Scrubsnessentials.com

C.  Products/Services

·         Cherokee

·         Greys Anatomy

·         Purple Label

·         Heart Soul

·         Med Couture

·         Sketchers

·         Wink

 

Shoes include:

·         Dansko & Alegria

Embroidery- Logos and customization of credentials on apparel

D.   Market Analysis

 

·         The medical scrub business is $10 Billion industry in the US

·         Average spending per person is $410.83 on scrub tops, bottoms, jackets, lab coats, footwear, accessories. (Based on a study done by the uniform retailers association in 2018)

·         There are 187 hospitals in the state of GA.  20 of these hospitals make up 80% of Superior Scrubs 1.5 million dollars (average) generated in sales per year.  

 

Pune, April 30, 2020 (GLOBE NEWSWIRE) -- The global medical clothing market is set to gain momentum from the rising incidence of hospital-acquired infections. Besides, the rising awareness campaigns regarding the benefits of clinical clothing would affect the market positively. Fortune Business Insights™ provided this information in a recent report, titled, “Medical Clothing Market Size, Share & Industry Analysis, By Product (Surgical Drapes, Medical Scrubs and Gowns, Gloves, Facial Protection, Sterilization Wraps, Protective Apparels and Others), By Application (Hospitals & Physicians’ Offices, Outpatient Facilities, and Others), and Regional Forecast, 2020-2027.” The report further states that the medical clothing market size was USD 63.3 billion in 2019 and is projected to reach USD 99.9 billion by 2027, exhibiting a CAGR of 5.9% during the forecast period.

https://www.globenewswire.com/news-release/2020/04/30/2025560/0/en/Medical-Clothing-Market-to-Reach-USD-99-9-Billion-by-2027-Rising-Cases-of-Hospital-acquired-Infections-to-Propel-Growth-Fortune-Business-Insights.html

 

 

E.  Marketing Plan

 

First things first: We need inventory. The store needs to be stocked in full and the warehouse needs to be replenished after the major supply chain issues we have faced. Our vendors are stocked back up at 95% and shipping is close to pre-covid delivery. Based on the current schedule of sales we have on our books, we have the potential to end 2022 at 1 million dollars. In October, we have the opportunity to attend and event in Arkansas that will allow us to be the preferred vendor for hospital sales in the state of Arkansas.  Should this happen, we will need a second outside sales team, which will ramp up our projected sales to 2 million dollars in 2023. By 2025, we should easily have sales a 3.62 Million dollars. We also have plans to go national with an outside sales team that would start off with current sales reps who are already targeting physicians offices and will be a commission only position for these sales reps. The reps would create an online account for the offices they sell to through our website and offer a small discount for their purchase.  In turn the reps will get a commission for the sales that are purchased through the designated website. We have also researched SEO companies and are ready to implement Key words through a provider of this service to ramp up Web-sales as these sales will add to our bottom line profits quickly.

 

 

 

·         Merge Superior, and Scrubs ‘n Essentials quarter 1, 2021. Get back in the hospitals with scrub sales: either by pop up sales or by the use to the E-commerce site. Grow the Georgia teams by adding more sales and possibly adding a second team to do the hospital sales in Georgia.

·         Start a rewards program in store.  

·         Ramp up sales with Scrubs on the Run, and maintain the current relationships with established vendors, and learn everything we can from the current owners as they are willing to stay onboard as consultants.

·         Continue to grow and market the website.

 

·         Grow Georgia team to 50 hospital sales per year

·         Grow Team TWO to 20 hospital sales per year by adding Arkansas, Florida, and Indiana

·         Continue to grow and market the website.

·         Add an outside salesperson to Scrubs ‘n Essentials- Target Dr.’s offices of 25 employees or more

 

·         Grow Georgia team to 60 hospital sales per year

·         Grow Team TWO to 40 hospital sales per year

·         Continue to grow the team by expanding into regions of Alabama, Northern Florida and Tennessee.

·         Continue to grow and market the website.

·         Expand the outside sales team into the north east and mid west.

 

·         Add a second hospital sales team to Georgia team: Goal of 60 hospital sales this year.

·         Add a second hospital sales team to Team TWO: Goal of 60 hospital sales this year.

·         Continue to grow the office fittings for Georgia, Alabama. And Tennessee.

·         Hire a regional Sales manager and expand the Dr.’s office sales to Florida, North Carolina,

      South Carolina, and Tennessee.

·         Continue to grow and market the website.

·         Expand the outside sales team into the West Coast.

 

·         Purchase our first trailer that will expand to a mobile store by expandable sides.  Market as: Scrubs On The Run!

·         Add our own line of scrubs: Living Comfort

·         Grow both Georgia Hospital teams to 100 sales per year. (50 sales per year per team)

·         Grow both Team TWO Hospital teams to 100 sales per year. (50 sales per year per team)

·         Continue to grow Dr.’s office direct sales

·         Continue to grow and market the website.

·         Sale the business for 5 Million dollars.