DNA Testing Lab Business Plan, Marketing Plan, How To Guide, and Funding Directory
The DNA Testing Lab Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a DNA Testing Lab business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be available for download after your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
DNA testing labs are always able to remain profitable and cash flow positive in any economic climate given that this is a known medical and healthcare focused business. Additionally, many people also use DNA testing labs for ancillary services such as ancestry tracing, paternity tests, and forensic pathology. As such, this is a unique medically focused business given that they can generate revenues not only from the prescriptions that are being fulfilled by physicians but also from the general public that needs DNA testing services from time to time. These businesses typically have moderate starting startup costs given that they do not need to maintain a highly sterile laboratory facility in order to carry out their operations. However, it should be noted that most DNA testing labs have a start up costs ranging anywhere from $300,000 to $500,000 depending on the type of equipment being purchased that will be used in conjunction with business operations. The gross margins generated from these tests are extremely high with most services generating margins of 75% to 90%. However, it is imperative that the DNA testing lab maintain a staff of scientists and know how to properly sample and sort these types of biological tissues. The barriers to entry for a new DNA testing lab are considered a moderately high given the required startup costs and ongoing licensure that is needed in order to operate these businesses. Most importantly, it is imperative that the owner operator of a DNA testing lab maintain strong relationships with hospitals, physicians, paternity testing clinics, forensic pathologists, and other entities that have the ongoing need for DNA testing. One of the nice things about owning this type of business is that the marketing campaigns that are needed in order to develop client relationships are considered to be moderately low given the highly specialized nature of the services.
Given the highly economically secure nature of the revenues generated from a DNA testing lab, almost all banks and lenders are willing to provide the necessary capital in order to complete the facility build out and acquire the proper equipment to carry out these operations. The state-of-the-art medical equipment that needs to be purchased for this business usually is sufficient to act as the appropriate collateral for any bank or financial institution. Of course, a DNA testing lab business plan is going to be required by a financial institution that may be providing capital for the startup of this business. This document should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that focuses on industry-standard statistics that would be normally associated with a medical testing laboratory. One of the things that can be kept to a minimum within the document is the demographic profile. Typically, when examining the target demographics of companies that will be using the DNA testing lab services – it is important to focus on the anticipated revenues, net profits, and expected monthly charges that will be rendered to these companies. Within this document there should also be a discussion relating to whether or not health insurance were reimbursements from publicly funded health systems will be accepted by the DNA testing lab. There are certain instances especially as it relates to genetic testing that allows these firms to generate significant incomes from patient co-pays as well as health insurance reimbursements. In addition to all the above information, is very important that the underlying personnel costs are discussed as well. This is going to be the largest ongoing expense for a DNA testing lab given that highly educated and trained scientists are going to be hired in order to render the service to the general public.
A DNA testing lab marketing plan should be included as well but this document does not need to be an extremely comprehensive and in-depth view of how these businesses will conduct their marketing operations. Again, the foremost method for ensuring that revenues can be generated from the onset of operations is to have ongoing relationships with hospitals, physicians, and other medical entities that will call upon the business for us specific types of DNA testing. This includes also developing strong relationships with genetics counselors are dealing with people that are planning on having a child and need to have an understanding of what potential disorders they may carry in their genes. Given the rapid advancement of this technology, it is now much more commonplace for these businesses to offer the service to the general public. In fact, some DNA testing labs will actually have a genetic counselor on staff so that people from time to time can come in and have these matters dealt with directly by the company. This is one of the ways that these businesses can develop and expand their brand-name visibility within any specific local or regional market.
A proprietary website should be developed that showcases the operations, types of equipment use, type of DNA tests offered, contact information, location information, and other similar pertinent facts regarding the business. On the website there should also be a discussion as to whether or not health insurance accepted for certain types of genetic testing. A presence on social media is not really needed can boost visibility over a long period of time.
A DNA testing lab SWOT analysis should be included as well especially if the owner operator is seeking capital from a financial institution or private investor. As a release of strengths, these businesses are able to generate income from a number of different sources and a number of the different DNA tests that are in demand among physicians and the general public. As it relates to the weaknesses of these businesses, the operating expenses are very high as well as the barriers to entry. However, once established in revenue generation begins these risks are substantially ameliorated by the high-margin income generated by the business. As it relates to opportunities, these businesses can grow through the addition of secondary laboratory locations. There are really no outside threats that would impact a DNA testing lab at this time.