Starting a scrub business is a rewarding venture that combines an eye for design and an understanding of healthcare needs with business savvy. The market for medical apparel is worth billions of dollars, driven by steady demand for quality scrubs from hospitals, dental offices, and veterinary clinics.
This guide will take you through the practical steps of validating your business concept, building supplier relationships, acquiring inventory, and obtaining the right licenses to help you launch a successful scrub business in the U.S.
Step 1: Plan your business and validate your idea
Research your target market
Before you spend a dollar, define who you are selling to. Are you targeting nurses in a large hospital, dental hygienists, or veterinary techs? Each group has different needs for fit, fabric, and pocket placement. A frequent misstep is creating a generic product for everyone.
You can conduct simple surveys with local healthcare workers. Ask about their favorite brands, what they wish their scrubs had, and how much they typically spend. This direct feedback is more valuable than broad market reports and helps you find your niche.
Analyze the competition and estimate costs
Look at what successful brands do. Use a platform like Semrush to see which keywords your competitors rank for online, which shows you what customers search for. Note their pricing, styles, and how they market themselves on social media.
Speaking of costs, your initial investment will likely range from $3,000 to $10,000. The largest portion of this is your first inventory order. You might want to budget between $2,000 and $8,000 for this alone, depending on the quantity and quality you choose.
Other costs include business formation fees, which can be $50 to $500 depending on your state, and setting up an e-commerce site. A basic Shopify plan starts around $30 per month, but you should also factor in potential one-time theme costs.
Here are 3 immediate steps to take:
- Survey at least 20 healthcare professionals in your target niche.
- Analyze the top three online scrub retailers using a keyword research platform.
- Draft a startup budget that breaks down inventory, legal, and website expenses.
Step 2: Set up your legal structure and get licensed
First, choose a business structure. Most new scrub retailers form a Limited Liability Company (LLC). This structure protects your personal assets if the business faces debt or lawsuits. Profits pass through to your personal tax return, which simplifies your accounting.
Federal, state, and local requirements
You will need an Employer Identification Number (EIN) from the IRS. It is free and you can apply online to get it instantly. Think of it as a Social Security number for your business. You need it to open a business bank account.
Next, get a seller’s permit from your state’s tax agency. This allows you to collect sales tax from customers. The permit is often free but can take a few weeks to process. Without it, you cannot legally sell products or buy wholesale inventory tax-free.
Your city or county will also require a general business operating license. Costs vary widely, from $50 to $400, depending on your location. A frequent mistake is forgetting this local step, which can lead to fines. Also, check the FTC’s Textile Act for labeling rules.
Here are 3 immediate steps to take:
- File for an LLC with your state’s Secretary of State office.
- Apply for a free EIN on the official IRS website.
- Contact your city clerk to ask about the specific business license application process.
Step 3: Secure your business insurance
Key policies for a scrub business
Your foundational coverage is a general liability policy, which should include product liability. This protects you if your scrubs cause harm, like an allergic reaction. A frequent oversight is assuming a basic policy covers this, so confirm it is explicitly included.
Expect to need at least $1 million in coverage. Annual premiums for a small online scrub business typically run from $400 to $1,500. This investment shields your business from potentially devastating claims.
Once you have inventory, add commercial property insurance to protect it from theft or damage. If you hire even one employee, you must get workers' compensation insurance. For an e-commerce site, cyber liability insurance is also a smart move to protect customer data.
Finding the right provider
You can get quotes from providers that specialize in small business and e-commerce. Companies like Hiscox, The Hartford, and Next Insurance are familiar with the risks of online retail and can get you set up quickly. An online broker like CoverWallet can also compare options for you.
Here are 3 immediate steps to take:
- Request quotes for a general liability policy from two different providers.
- Ask each agent to confirm in writing that product liability for apparel is included.
- Research your state’s requirements for workers' compensation if you plan to hire staff.
Step 4: Source your inventory and set up operations
Find your manufacturing partner
Your first task is to find a reliable supplier. Explore platforms like Alibaba for overseas manufacturing or Thomasnet for U.S.-based apparel factories. You can find partners for private label, where they produce your design, or wholesale, where you resell an existing brand.
When you talk to suppliers, focus on the Minimum Order Quantity (MOQ). This can range from 50 to 200 units per style. Many new owners make the mistake of placing a huge order for an unproven design just to get a lower per-unit cost. It is better to start small.
Prepare your storage and shipping space
You do not need a commercial storefront at first. A spare room or a 5x5 foot storage unit provides about 25 square feet, which is plenty for your initial inventory. This setup avoids the high cost and commitment of a commercial lease.
You will need some basic equipment. Plan to spend $100 to $300 on industrial shelving and another $150 to $250 for a thermal label printer like a Rollo. You can take great product photos with a modern smartphone, so you can save on a professional camera.
Here are 3 immediate steps to take:
- Contact two overseas and one domestic supplier to compare their MOQs and pricing.
- Measure your available home space or get a quote for a 5x5 storage unit.
- Create a line-item budget for shelving, a label printer, and shipping mailers.
Step 5: Set up your payment processing
Online and in-person sales
For your e-commerce store, a gateway like Shopify Payments is a standard choice. Most online processors charge around 2.9% plus a $0.30 fee per transaction. This is a straightforward way to handle web-based orders from day one.
Many new owners focus only on their website, but you can miss out on valuable sales at local clinics or medical conferences. You need a way to take payments on the go without clunky hardware. This is where you can be more strategic with costs.
For scrub businesses that need to accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and you are done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for selling at a pop-up event. Other providers often charge closer to 2.7% for in-person transactions, so the savings add up quickly.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done, with no waiting for bank transfers.
Here are 3 immediate steps to take:
- Activate a payment gateway like Shopify Payments for your online store.
- Download the JIM app to prepare for in-person sales opportunities.
- Compare the transaction fees of your online gateway with JIM's rate to understand your costs per channel.
Step 6: Fund your business and manage finances
Secure your startup capital
An SBA Microloan is a strong option for a new scrub business. These loans range from $500 to $50,000 and are designed for startups with limited credit history. Interest rates typically fall between 8% and 13%. You can also explore grants like the Amber Grant for women-owned businesses.
Manage your cash flow
Many new owners focus only on the initial inventory cost and run out of cash for marketing. You should budget $2,000 to $4,000 in working capital for your first six months. This covers your website fees, marketing ads, and shipping supplies before sales become consistent.
Once you have your EIN, open a dedicated business checking account. A frequent mistake is to mix personal and business funds, which creates a major headache for taxes and makes it difficult to track your profitability. Keep every transaction separate from day one.
Here are 3 immediate steps to take:
- Research SBA Microloan lenders in your state.
- Calculate your working capital needs for the first six months, separate from inventory.
- Open a dedicated business checking account as soon as you have your EIN.
Step 7: Build your team and manage operations
Your first hires
You will likely not need staff at first. Once you reach 10-15 orders per day, consider hiring a part-time fulfillment associate. This role handles picking, packing, and shipping. Pay typically ranges from $15 to $20 per hour. No special certifications are required.
A common benchmark for your first hire is when you hit $5,000 to $8,000 in monthly revenue. Many owners wait too long, and their time gets consumed by packing boxes instead of marketing. This can slow your growth significantly.
Operational software
Your e-commerce platform, like Shopify, includes inventory tracking. As you add staff, you might want a dedicated scheduling app. Software like Homebase or When I Work helps manage shifts and hours, and they offer free plans for small teams.
Here are 3 immediate steps to take:
- Draft a job description for a part-time fulfillment associate.
- Research the average hourly wage for warehouse associates in your city.
- Explore the free plan features on the Homebase website.
Step 8: Market your business and acquire customers
Focus on social media and local partnerships
Start with Instagram and TikTok. Use short-form video to showcase the fit, fabric, and unique features of your scrubs. You can collaborate with healthcare micro-influencers who have 1,000 to 10,000 followers. Their audience is highly engaged and their rates are more affordable.
Do not just focus on online sales. You can contact nursing schools or private clinics to host a pop-up sale. This strategy puts your product directly in front of your target audience and helps you get valuable, immediate feedback.
Track your key marketing numbers
Aim for a website conversion rate of 1% to 2%. Your Customer Acquisition Cost (CAC) should ideally be under $40. If you spend $200 on ads and get five customers, your CAC is $40. A frequent misstep is ignoring these numbers and spending blindly.
You should also build an email list from day one. Offer a 15% discount for new subscribers. Email marketing often provides a higher return on investment than social media ads because you are communicating directly with an interested audience.
Here are 3 immediate steps to take:
- Identify five healthcare micro-influencers on Instagram to contact for collaboration.
- Draft an email template to send to local clinics about hosting a pop-up event.
- Set up a 15% discount code for email sign-ups on your website.
Step 9: Price your products for profit
Calculate your markup
First, determine your landed cost, which is your product cost plus shipping and any import fees. A standard starting point in apparel is Keystone pricing. This is a 100% markup, so if a scrub top costs you $15 landed, you would price it at $30.
Most scrub brands operate with a gross profit margin between 50% and 70%. That $30 price on a $15 item gives you a 50% margin. This buffer is what covers your marketing, website fees, and other overhead, so do not underestimate its importance.
Analyze your competitors
Look at what brands like Figs and Jaanuu charge for similar items. You can also use Google Shopping to quickly compare prices across different online stores. Many new owners make the mistake of pricing too low, which can signal poor quality and leave no room for profit.
If your scrubs have superior fabric or more functional pockets, you can justify a higher price point. This is value-based pricing. You might also test psychological pricing, such as $49.95 instead of $50, as it can sometimes lead to more sales.
Here are 3 immediate steps to take:
- Calculate the landed cost for one of your core products.
- Research the retail price of a comparable scrub set from two major brands and one smaller competitor.
- Apply a 100% markup to your landed cost to find your baseline retail price.
Step 10: Control your quality and scale your operations
Establish your quality standards
Your brand's reputation rests on consistent quality. Create a simple quality control (QC) checklist for every shipment. You should inspect for colorfastness, fabric shrinkage, and seam strength. A good target is a defect rate below 2% for each batch you receive from your manufacturer.
Many new owners rely solely on the factory's inspection. Instead, you should personally inspect at least 5-10% of the units from every order. Check for loose threads, faulty zippers, and sizing that matches your technical specifications. This prevents negative reviews from damaging your brand early on.
Know when to scale
Growth should be deliberate. Once you consistently process 20-25 orders per day, it is time to move fulfillment out of your home and into a small commercial space or use a third-party logistics (3PL) provider. This is also the point where you should hire your first part-time fulfillment associate.
When your monthly revenue surpasses $10,000, your basic e-commerce inventory tools may not be enough. You might want to look at dedicated inventory management software like Cin7 or Skubana. These systems help prevent stockouts and manage multiple sales channels as you expand.
Here are 3 immediate steps to take:
- Create a quality control checklist with at least five inspection points for your products.
- Set a daily order volume benchmark for when you will hire your first fulfillment help.
- Research the pricing for a 3PL service in your area to understand future costs.
Conclusion
You have the steps to launch your scrub business. Success in this space comes from listening to healthcare workers and solving their real-world needs with your designs. Your attention to detail will set you apart. Now, go make it happen.
And as you grow, keep your payments simple. JIM turns your phone into a card reader for a flat 1.99% fee, with no extra hardware. It is perfect for pop-up sales at clinics. Download JIM to get started.
