Blood is needed in the U.S every couple of seconds.
According to Red Cross, about 36,000 red blood cell units are required in the U.S. daily. This translates to a lot of blood.
A single victim of an auto accident may require about 100 blood pints. On the other hand, sickle cell patients or those diagnosed with cancer need blood transfusion throughout treatment.
However, blood can neither be manufactured nor made. Therefore, patients rely on blood donors for the blood they need to save their lives.
Large mobile blood banks with accompanying posters, including community blood drives, are usually everywhere.
A single blood donation can save the lives of up to three patients, depending on their specific needs. Blood donation is beneficial for both the donor and the recipient.
It saves the lives of blood recipients.
Whether one donates blood regularly or not, they stand to benefit from the following:
- Improved liver health
- Potential health problems made known
- Reduced risk of a heart attack
- Reduced harmful iron stores in people with excess iron in the blood
- Lowered risk of developing cancer
- Imparted psychological benefits for a better mental state
The Blood Bank Industry
The global blood bank industry is expected to hit almost $46 billion by 2022. This has been attributed to the increasing demand for immunoglobulins and plasma derivatives, rising diseases, and for-profit blood donation.
It’s expected that the number of blood banks that’ll rely on paid donations will rise.
Commercialization of the blood banking industry has also been pinpointed to people increasingly donating blood for pay instead of altruistic reasons.
In turn, the number of blood donors has increased.
The United States is a leader in the global blood banking market. This has been attributed to the following reasons:
- Well-developed and coordinated healthcare infrastructure
- Implementation of advanced technologies
- High standards of care
- Favorable reimbursements policies
- Strong government support
However, Asia-Pacific has the fastest growth rate in the blood bank industry for the following reasons:
- Under-served blood services, hence failure to meet the needs of patients
- Growing per capita healthcare spending
- Increasing demand for medical tourism
- Better healthcare infrastructure development
Economic Analysis
Statistics show that a single blood pint can save up to 3 lives.
And…
Every one in seven hospital admission cases needs blood.
In Canada and the U.S., over 40,000 blood pints transfusion occurs daily.
Despite the donation process taking less than 60 minutes, only 10% of Americans eligible for blood donation actually make a donation every year.
Valued at over $2 billion worldwide, plasma is the fastest growing blood product in the industry. What’s more, 60% of blood donated globally at 15 million liters, occurs in the U.S.
Donated blood undergoes five tests to test for hepatitis and AIDS. Computer systems also help track blood donors to find those who’ve tested positive for diseases due to lack of central blood donor data.
Blood and organ banking in the U.S., according to IBISWorld, experienced a 0.1% growth between 2012 and 2017. However, the industry generates about $11 billion in revenue every year. The country is home to 1,500 blood and organ banks that employ over 77,000 people.
Revenue is expected to increase by 2022.
Despite the high demand for blood and its products, the industry relies on blood donations. However, the shortage of supply lowers the industry’s revenue-generation potential.
Whole blood costs anything from $100 to $200.
14% of blood pints donated go into waste because platelets take only 5 days and blood cells 42 days in storage. Wastage occurs in hospitals and during shipping.
Hiring more staff, upgrading or building facilities, doing research on blood supply protection, and buying more equipment to start a blood bank center requires huge capital.
Demography, Niche, and Level of Competition
Blood banks provide for the needs of individuals irrespective of personality, race, wealth level, or status. People who need blood services include:
- Accident victims
- Cancer patients under treatment
- Patients undergoing orthopedic surgeries
- Organ and marrow transplant patients
- Patients undergoing cardiovascular surgeries
- Patients under treatment for inherited blood orders
Some specialty niche ideas in the industry include:
- Health screening services
- Blood banking and related products
- Human blood services
- Blood components and plasma
Red Cross and other non-profit blood blanks dominate the industry. But new entrants and existing players fight for a share of the market, heightening industry competition.
Blood and related products are handled and screened properly for storage and easy access whenever a client makes an order.
Requirements to Start a Blood Bank Business
Some important considerations include:
- Accreditations
- Security requirements
- US FDA and state regulations
- Lab and storage equipment
Franchise or Start Your Blood Bank from scratch.
You can buy a franchise or build your blood business from nothing. However, the industry has no franchise opportunities.
It takes a huge capital, a sound business structure, and regulations compliance to begin the business.
Requirements
- Legal matters such as:
- Partnership
- Sole proprietorship
- Limited Liability Company (LLC)
- Corporation
- A catchy and related business name
- Trademark or intellectual property protection
- The right location near donors and target clients – the building, should be compliant with regulations such as FDCA and CGMP.
- Competent workers such as a blood bank technician
- Equipment and repair tools. The equipment you need to vary based on the services you intend to offer. They include a refractometer and automated blood typing. You may also need various tools such as flux core welders with a wire feed to repair your equipment or help fix your business before it starts. Alternatively, multiprocess welders may be the all in one tool you’ll need to accomplish various welding and repair jobs.
- Legal documents include:
- A business plan
- Employer identification number (EIN)
- Certificate of incorporation
- Employment agreement
- The operating agreement for LLCs
- Insurance policy
- Federal tax identification number (TIN)
- Business certification and license
- Insurance policies such as
- Errors and omission
- Umbrella
- Commercial property
- Product liability
- Casualty
- Business auto
- Contents coverage
- General liability
- Workers’ compensation
Business Financing
Some ways to source financing for your blood bank business include:
- Startup capital from an investor
- Properties or stock sale
- Bank loan