Good morrow, it’s been a minute. Today we are looking at a niche healthcare business: the consumer first aid kit market. Healthcare components have good margins combined with a low-cost supplier a business that assembles and sells first aid kits can be a lucrative endeavor provided you can market it properly.
Structurally two things come together to make this a good business. On a macro level in trading we have a concept of “transformations in form” and this can be processing, blending and of course the more resource-intensive manufacturing. Most small businesses (that are not vertically integrated) will engage in the more common packaging and repackaging. And usually this refers to the process of buying physical commodities in the packaging they are shipped in, let’s say 25kg bags and repackage them in the more consumer friendly 500g, 1kg, 2kg, 2.5kg etc. And this can be for flour, sugar, coffee, popcorn etc.
But there is another repacking business that I like that has better margins, one that brings together disparate items that people buy for convenience. I like this because not a lot of people think in this way when assessing business opportunities and business models. Thinking in terms of DIY kits, same logic, you have all these different things that will cost more (because you have to buy higher volumes) or take more time to assemble in one – and even though the entrepreneur gets to sell at a premium it is still a good deal. The value addition is clear. That is my message to you this Human Rights Day.
BusinessOpportunities.co.za had an opportunity for affordable first aid kits. Click here to see it. I think it’s a good starting point to a niche healthcare business providing you can get it into a busy sales channel or hustle the whole day. The good thing is that you can use the same supplier for most of the Food Hygiene Products so that will bring some variety to your product mix.
