Are you about starting a diagnostics center? If YES, here is a complete sample medical laboratory & diagnostics business plan template & FREE feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a medical lab & diagnostics center. We also took it further by analyzing and drafting a sample diagnostics center business marketing plan template backed up by actionable guerrilla marketing ideas for diagnostics centers. So let’s proceed to the business planning section.
Table of Content
- Why Start a Diagnostics Center?
- Medical Lab & Diagnostics Business Plan – Executive Summary
- Medical Lab & Diagnostics Business Plan – SWOT Analysis
- Diagnostics Center Business Plan – MARKET ANALYSIS
- Diagnostics Center Business Plan – SALES AND MARKETING STRATEGY
- Diagnostics Center Business Plan – Publicity and Advertising Strategy
- Diagnostics Center Business Plan – Sustainability and Expansion Strategy
Why Start a Diagnostics Center?
Starting a diagnostics center can be a very capital intensive business as you would need to get standard equipment that are most times very expensive to carry out the business. Also, a diagnostic center business is one that requires proper planning before one can start it.
Certification, qualification and experience in laboratory science is very necessary though not compulsory for the entrepreneur as he or she can hire highly trained professionals in laboratory science and make them part of the management team to help run the business.
A diagnostic center is considered a major support for hospitals all over the world, which is why it is highly necessary that everything regarding the business be done right, as a single false result could eventually ruin the reputation of the diagnostics center.
Even though this might be a lucrative business to start up, there are certain things that must first be done, such as conducting a thorough study on the business you intend going into. If you are finding this difficult to achieve, you might then need to engage the services of a business consultant who has thorough knowledge of the industry you are about to go into, to take a look at your business concept and determine if you are likely to make it and thrive against your competitors.
Writing a business plan is very important for your business as it will allow you conduct adequate research that will be focused on the demographic location you intend to start your business.
While, it might not be so easy to write a business plan, you can either hire the services of a business plan writer or go online to download a free business plan template and use that as an aid to write your business plan. In fact, below is a sample diagnostics business plan for you;
A Sample Medical Lab & Diagnostics Business Plan Template
- Business Overview
The diagnostic industry has no companies with a dominant market share value. The industry generated revenue of $18 billion with a negative growth of -0.2 percent within the year 2012 and 2017. While there are about 14,300 diagnostic centers in the united states employing more than 100,000 people, IBIS World expects that proper growth for the industry will start occurring in 2019.
This is because it is expected that advances in science will yield service capabilities that are new and improved as the aging population in the United States will require better diagnostic services. Demand is also expected to be boosted by the growing demand for affordable and accessible healthcare services for a majority of the population.
There are moderate levels of barriers to entry for new businesses in this industry and the highest barrier comes from the high level of capital that is required for start-up. Demand is usually linked to the number of people receiving medical treatment and profitability largely depends on how efficient operations are as well as how effective marketing strategies are.
Most of the large companies get 60 percent of their revenue from routine tests while a few focus on the specialty segment. However, it is expected that as technology improves with advancement in medical knowledge, then specialty tests such as esoteric tests will become more routine.
Medical Lab & Diagnostics Business Plan – Executive Summary
T-Ray Diagnostics Center LLC is a leading and standard medical diagnostic business that will be located in Main Street – North Dakota here in the United States of America and will offer diagnostics services to medical personnel as well as non-medical personnel.
Even though we will be offering major diagnostic services such as clinical pathology, hematology, ultrasound, CT scan, x-ray services, microbiology, and bio chemistry; we will also be offering additional services such as consultancy and advisory services as well as medical support services in order to generate more revenue and boost the bottom line of our business.
Our vision is to ensure that we are able to serve our local physicians as well as other clients with diagnosis that is not only fast and accurate but private as well and also reasonably priced. We intend to ensure that we not only meet but exceed the expectation of our customers and become the preferred diagnostics center here in North Dakota.
In our bid to achieve the above vision, we intend to ensure that we get the right equipment that will be able to run difficult tests accurately. We will also employ a solid business structure that will allow us employ the right amount of professionals to help us attain our intended objective.
We are in the medical diagnostics services to offer quality service to our clients and to also favorably compete against our competitors here in North Dakota. To achieve this, we will go the extra mile to invest in only the best equipment as well as employees to ensure that we keep up to our standard.
We will source for and hire the best employees that are not only capable but have the necessary experience that would be needed to help us rise from an unknown start-up to a force to be reckoned with not only here in North Dakota but also nationally as well.
We will ensure that our employees are well paid and have better welfare packages than their counterparts in similar start-ups such as ours. This will ensure that they remain motivated and dedicated to ensuring that we achieve all our goals and objectives.
Finally, our diagnostics center is being run by two Veterans Ms. Lucy Raymond and Dr. Ellis Tyson. Ms. Lucy Raymond has clinical experience but has been more in managerial roles where she has over 15 years experience. Dr. Ellis Tyson on the other hand has worked in several diagnostics centers with more than 20 years experience. The duo will bring their experience to bear for the progress of the company.
- Our Products and Services
At T-Ray Diagnostics Center LLC, a leading and standard medical diagnostics center, we intend to offer diagnostics services to all our customers from our permanent location here in Main Street – North Dakota.
However, in order to create multiple sources of income in line with our core diagnostic service we will offer medical support services as well as consultancy and advisory services. Our intention is to ensure that we generate as much revenue as we can and also maximize profit so as to boost and sustain our bottom line as is permissible under the laws of the United States of America and within our professional ambition.
Therefore some of the diagnostics as well as other services that we intend to offer at T-Ray Diagnostics Center LLC, are;
- Clinical pathology
- CT Scan
- X-ray services
- Bio chemistry
- Consultancy and advisory services
- Medical support services
Our Vision Statement
Our vision is to ensure that we are able to serve our local physicians as well as other clients with diagnosis that is not only fast and accurate but private as well and also reasonably priced. We intend to ensure that we not only meet but exceed the expectations of our customers and become the preferred diagnostics center here in North Dakota.
- Our Mission Statement
In order to achieve our vision, we intend to get the right equipment that will be able to run difficult tests that are accurate in nature. We will also employ a solid business structure that will allow us employ the right amount of professionals to help us attain our intended objectives and vision.
- Our Business Structure
Due to our desire to build and run a standard diagnostics center here in Main Street – North Dakota, we have therefore ensured that we put in place plans that will make us get it right from the beginning. We will therefore be going the extra mile to ensure that we hire only competent and hardworking employees into all the available positions in our company.
We know how relevant the management team is to any company and so we have gone through a rigorous process to ensure that we hire and select only those that have the industry experience and have also seen and identified with our company vision and objectives and will therefore do all they can to ensure that we are able to achieve our goals and objectives.
Due also to the fact that we intend to run a diagnostics center business that does not conform with the norm of other diagnostics businesses, we would be hiring more employees than is the norm. This is so that we would be able to offer satisfactory services to all our customers and ensure that we adhere to with all the processes and plans of the company.
The business structure that we therefore intend to build at T-Ray Diagnostics Center LLC includes;
- Chief Executive Officer
- Chief Diagnostician
- Human Resources and Admin Manager
- Lab technician
- Marketing Executives
- Customer Service Executives
- Security Guard
Roles and Responsibilities
Chief Executive Officer
- Creates the overall policies and strategies that would ensure the overall growth of the company
- Sources for capital and draws the budget for the company
- Reviews policies by evaluating the success of the company
- Carries out the final diagnosis based on conducted tests
- Ensures that all tests are carried out following the company’s standard protocols as well as in line with industry trends
- Supervises all workers under his department
Human Resources and Admin Manager
- Ensures that all the administrative functions of the company operate smoothly
- Sources for, interviews, hires and conducts orientation for new employees on behalf of the company
- Appraises the performance of employees as often as possible
- In charge of drawing blood at the diagnostic center
- In charge of ensuring proper labeling of the blood samples
- Ensures that the blood is securely stored in preparation for tests and analysis
- Carries out onsite blood tests
- Ensures proper and accurate analysis of blood tests
- Document result and sends to chief diagnostician
- Prepares all the financial statements, information and records on behalf of the company
- Performs financial analysis and also in charge of employees’ payroll
- Conducts internal audit and prepares tax information to submit to tax authorities
- Conducts market research in order to determine new market opportunities for the company
- Creates effective marketing strategies that would generate revenue for the company
- Conducts direct marketing with clients on behalf of the company
Customer Service Executives
- In charge of answering enquiries and providing information to clients via phone, physically and online
- Remains updated as regards company policies in order to be able to offer customers accurate information
- Conducts bookings for clients
- Ensures that the premises is kept clean at all times
- Cleans the restrooms for customers as well as for employees
- Carries out any other duties as determined by the human resources manager
- Carries out official errands on behalf of the company by dropping off results in accurate destinations
- Obeys all traffic rules and regulations while on or off duty
- Carries out preventive maintenance on the vehicle as at when due
- Ensures that the perimeter is adequately secured against theft and trespassers
- Monitors incoming and outgoing traffic in order to detect anything that is out of place
- Patrols the premises during and after work hours
Medical Lab & Diagnostics Business Plan – SWOT Analysis
Due to our intention to run a standard and leading diagnostics center here in Main Street – North Dakota, we have engaged the services of a reputable and one of the finest business consultants here in North Dakota to help look through our business concept and determine how likely we are to succeed and thrive in this business and also favorably compete against our competitors.
In view of this, the business consultant was able to point us to our strengths, weaknesses, the opportunities that are opened to us and also the threats that we were likely to face here in North Dakota and not just in Main Street. The results therefore of the critically conducted SWOT analysis for T-Ray Diagnostics Center LLC are as follows;
There are several strengths that are available to us and the major one is the fact that we are offering a lot of services in addition to our core service. Also, we have procured the latest equipment that are not only accurate but fast as well in ensuring that we not only meet but exceed the expectations of our customers.
We value our customers so well and that is why we have built a solid business structure filled with professionals that have a high understanding of the business and will ensure that we are able to attain all our goals and objectives.
The fact that we are newly established is a weakness for us as we do not yet have the necessary staff or even finances to be able to run against already established and large diagnostics centers. Also, we are not yet known as a brand and so we would need to engage in massive publicity exercises to enable us become well known and gather the momentum we need.
There are several opportunities available to us in this industry as loads of people require diagnosis on a daily basis. We are also engaging in a market research that will enable us to be aware of more opportunities available to us in this business.
Every business no matter its nature faces threats either at start-up or while running the business and our business is not different. We are likely to face threats from competitors who would be running similar services such as ours and who would be located around our area of business.
We are also likely to face threats from largely established hospitals where there is either a diagnostics center or they support a diagnostics center close by. We are however not deterred by any threats to our business as we have measures in place that will ensure that we overcome any challenges and threats to our business.
Diagnostics Center Business Plan – MARKET ANALYSIS
- Market Trends
It has not been a smooth experience for the diagnostics industry as there have been many disruptions in the last few years. The industry is getting consolidated as more of the unorganized settings in the industry are being organized which is slowly evident as the industry is seeing a CAGR of 18%.
The products and services in the diagnostic industry is broken into different levels of classification such as laboratory services, magnetic resonance imaging (mri), diagnostic imaging services, x-ray/radiography imaging, ultrasound imaging, CT scanning, and other diagnostic services.
As at 2014, a total of $51 million was spent on diagnostic imaging centers by the federal government. 187 companies were awarded with 968 contracts, with a company averaging about $275,018 in value based on the contract.
- Our Target Market
When it comes to diagnostic services, there are a whole lot of people that require the services. However, we cannot restrict our target market to a certain types of people, which is why we have decided to conduct a market research that will help us understand and fully know the kind of target market that we would be offering our services to.
The aim of the market research is also to let us know and understand what the target market will expect from us and also what we should expect from them so as to draft the right strategies that would enable us penetrate this target market. In view of this, it is expected that we are in business to offer diagnostic services to the following groups of individuals and institutions
- Medical Practitioners
Our aim of starting T-Ray Diagnostics Center LLC is to ensure that we build a business that will be able to carry out difficult but accurate diagnosis and be the preferred diagnostic center for local physicians, medical practitioners and other clients that would be needing our services here in Main Street – North Dakota. With this in mind, we have set forth strategies that will allow us to favorably compete against our competitors and give us the advantage we need.
We are going to ensure that we procure the best equipment that are not only accurate but also fast in ensuring that we not only meet but exceed the expectations of our customers here in North Dakota.
We know that this industry thrives on privacy and that is one of the structures we have built into our business concept. We are notable to conducting tests and dispatching results in a manner that is very private and this is due to the fact that we hold our customers in high regard and will not seek to break the confidence they have imposed on us.
It is in this regard that we are careful about the people we have hired to come and work for us here at T-Ray Diagnostics Center LLC. Our employees are not only capable and competent but they are professionals who have experience in this industry and therefore know how to carry out their tasks with little or no supervision in a way that will promote the image of the company positively at all times.
We will ensure that our employees are well paid and that they have welfare and hazard packages that are better than what their counterparts in similar start-ups such as ours here in North Dakota are getting. We will also ensure that our employees undergo training whenever necessary so as not to only enhance their skills but make sure that we are at par with the trends in the industry and that the productivity rate for our diagnostics center is boosted as well.
Diagnostics Center Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
T-Ray Diagnostics Center LLC is an already established and leading medical diagnostics business in the medical support service industry that will ensure that it goes all the way to provide medical support services such as diagnostics to all its various customers here in North Dakota.
We therefore intend to offer the following services in order to generate revenue at T-Ray Diagnostics Center, LLC;
- Clinical pathology
- CT Scan
- X-ray services
- Bio chemistry
- Consultancy and advisory services
- Medical support services
The medical diagnostics business is one that will always be a lucrative business not only because of the support they offer to hospitals but because people will always have a reason to want to check what is wrong within their bodies either for good or bad reasons.
Our business is located quite close to that of medical practitioners and physicians; this has placed us in a strategic position that will see us generating enough revenue and also meeting our profit maximization target within the first eight months of operations that will help sustain and grow our business.
We have conducted a critical examination of the medical diagnostics sector cum hospital support service industry in order to analyze our chances of how we are likely to fare and have been able to come up with the following sales forecast. It should be noted that the sales projections are based on the information gotten from verifiable data and assumptions on the field here in Main Street – North Dakota.
Below therefore are the sales projections for T-Ray Diagnostics Center LLC based on several assumptions and verifiable data from our current location;
- First Fiscal Year-: $850,000
- Second Fiscal Year-: $1,500,000
- Third Fiscal Year-: $3,000,000
N.B: The above projections were conducted based on what is obtainable in the industry and on the assumptions that there won’t be the arrival of a major competitor in the same location as ours and that the hospital close to us will not intend to run a diagnostics center of its own for the defined period of time. Should there however be a change in any of these factors within the defined period of time, it would lead to an increase or decrease in the figures that we have projected.
- Marketing Strategy and Sales Strategy
Marketing is a very important aspect of starting and running a business, and so before choosing a location for T-Ray Diagnostics Center LLC, we conducted a thorough market survey that will allow us understand the market we are going into so that we will not only be able to penetrate the market but also position our business in such a way as to compete favorably with our competitors not only here in Main Street but all over North Dakota.
The information and data that we have gathered from the market survey has also enabled us to structure our business in such a way that will attract the number of customers that we would need. It has also opened us up to the various opportunities that abound in the industry and the effective strategies that we can use to help better position our business and generate more revenue that would boost and grow our business.
We have for instance engaged the services of a reputable marketing consultant here in North Dakota who understands the market thoroughly and who also has the necessary industry experience that will help our newly established diagnostics center business to grow.
Having looked through our business concept, the marketing consultant will help us develop winning marketing strategies that will allow us gain a huge share of the available market here in Main Street as well as all over North Dakota.
In order for us to continually meet with our corporate sales and marketing goals, we have empowered our marketing executives to draft effective marketing strategies for our company. Our marketing team has also been empowered to review and modify existing marketing strategies to ensure that they are in line with helping us attain our goals and objectives.
The following sales and marketing strategies are what we intend to adopt at T-Ray Diagnostics Center LLC to attain our corporate sales and marketing goals;
- Ensure that we introduce our diagnostics center business to medical practitioners and physicians, hospitals, clinics and many other stakeholders in the health industry as well as medical support service industry in North Dakota as well as all over the United States of America.
- Throw a unique and medical themed party to launch our business and generate the needed interest for our business.
- Ensure that our diagnostics center business is advertised in local newspapers and in medical magazines as well as on radio and television stations.
- Ensure that our business is listed in yellow pages as well as in popular online medical directories.
- Use our social media platforms such as Facebook, Google Plus and Linkedin to market our services.
- Encourage the use of Word of mouth marketing.
Diagnostics Center Business Plan – Publicity and Advertising Strategy
Our kind of business thrives well on good publicity and so despite the fact that we are running a standard and leading diagnostics center business, we will be engaging in publicity measures that will allow us to compete favorably against our competitors while allowing us to promote and advertise our brand positively to our intended target market.
T-Ray Diagnostics Center LLC will therefore in this regard be hiring the services of a publicity consultant who is vastly experienced industry-wise and knows the environment very well to help us draft effective publicity and advertising strategies that will help boost the brand of our company and allow us to be firmly rooted and be the preferred brand for our target market here in North Dakota.
Therefore, the platforms that we intend leveraging on to promote and advertise T-Ray Diagnostics Center, LLC are;
- Engage in the distribution and pasting of our fliers in strategic locations
- Ensure that we install our billboards in strategic locations all around North Dakota
- Use the internet and other social media platforms such as Facebook, Twitter, Google Plus and Linkedin to vigorously create awareness about our diagnostics business
- Ensure that we place our adverts in local newspapers, in medical and other related magazines as well as on radio and television stations
- Position our flexi banners at strategic and conspicuous locations so as to attract the awareness of our clients
- Attend seminars and medical conferences in other to network and also increase awareness for our diagnostics business
Our Pricing Strategy
Setting a price for services might be difficult to calculate because the rates charged has to be seen to be affordable to the clients and not too low for the business, so that it does not run out of business. When it comes to setting the charges for our different services, a lot of factors will come into play such as what kind of diagnostics service was done, how in-depth was the diagnosis, what does it cost us to run the diagnosis, what our overhead costs were and also what our competitors are setting for same services.
Due to the fact that we are relatively new in this business, we intend to lower our rate in the first three months so as to attract more customers to our business and also increase awareness for our diagnostics business and the services we offer. We have conducted a study to know if we will be operating at a loss during this period, and the results are that even though we will be generating less revenue than we should, we would not be running at a loss.
- Payment Options
T-Ray Diagnostics Center LLC is a leading and standard medical diagnostics business that has the paying comfort and convenience of its clients in mind. This is why we have rolled out several payment options that will suit all our different clients and whatever preferences that they might have.
The payment options that we will endeavour to make available in all our centers are;
- Payment via cash
- Payment via check
- Payment via insurance
- Payment via bank draft
- Payment via Point of Sale (POS) Machine
- Payment via online payment portal
- Payment via credit card
The above payment options were carefully chosen by us because we have the convenience of our customers in mind, not only will it be convenient for our business as well but there will be no hitches whatsoever.
- Start–Up Expenditure (Budget)
In starting and intending to run a diagnostics center business that is up to standard and successful, there are certain things that must be in place especially as the business is a capital intensive one. The bulk of the generated start-up capital for example will be needed to get the necessary equipment which is expensive, lease a place, purchase an official vehicle, and pay the salaries of employees with utility bills for a defined period of time.
The key areas where we would therefore be spending the bulk of our capital on are;
- Total fee for registering our diagnostics business in the United States of America – $750
- Obtaining of business and medical licenses and permits, customer, accounting and inventory software as well as other legal expenses – $3,250
- Cost of hiring a business consultant – $3,000
- Insurance coverage (general liability, workers’ compensation, equipment liability, health insurance) – $2,000
- Marketing promotion expenses for the grand opening of T-Ray Diagnostics Center as well as for general promotional expenses – $5,000
- Operational cost for the first 3 months (salaries of employees and payment of utility bills) – $200,000
- Cost of leasing a facility for 5 years and carrying out renovations – $100,000
- Cost of procuring the necessary equipment for start-up (auto analyzer, scanning machines, EEG, ECG, blood testing machines, centrifuge, freezer unit, x-raying machines) – $300,000
- Other start-up expenses (latex gloves, needles, syringes, portable ice coolers, masks, microscope, balance) – $20,000
- Storage hardware (bins, racks, bottles) – $7,000
- Administrative expenses (furniture, phone, computer, laser printer, broadband internet connection) – $10,000
- Other necessities (signage, ventilation, security) – $5,000
- Cost of procuring an official vehicle – $30,000
- Cost of launching a website – $1,000
- Cost of throwing a party to launch our diagnostics center – $5,000
- Miscellaneous – $15,000
From the above analytical breakdown, it is obvious that we would require the sum of $707,000 in order to set up and run a standard and successful diagnostics center business here in Main Street – North Dakota. It should be noted that the capital available to us in starting this business will cater majorly to buying the necessary medical equipment required, leasing a facility for use, purchasing an official vehicle and also paying for the utility bills and salaries of employees for at least three months.
Generating Funding/Startup Capital for T-Ray Diagnostics Business
T-Ray Diagnostics LLC is a leading and standard medical diagnostics center that will be operated and run by Ms. Lucy Raymond and Dr. Ellis Tyson. The two partners decided to team up to open and run a standard diagnostics center here in Main Street – North Dakota.
Even though the partners do not have the full amount needed to open and run a medical diagnostics center, they do not intend to seek for an external partner to run the business with them and this has therefore caused them to seek for capital elsewhere.
The areas where they therefore intend to use in seeking for start-up capital for their diagnostics business are;
- Generate part of the start-up from sale of stock
- Seek for long term loan from the bank
N.B: We have been able to successfully generate the sum of $200,000 from the sale of some of our personal stock. We have approached the bank for a loan facility of $507,000 to be repaid in 10 years at the rate of 3% per annum and our approval has been granted as all the necessary documents approving the loan has been signed. We have been told that the amount will be credited to our business account by the end of the week.
Diagnostics Center Business Plan – Sustainability and Expansion Strategy
Determining the future of one’s business is very important as this shows the seriousness of the entrepreneur as regarding his or her business and the plans for the business to remain long in existence. There are several factors that one must consider when thinking of ways to sustain and expand a business, such factors are; the re-investment strategy of the business, the way it treats its customers and also the business structure it intends to build.
As a business that plans to remain in existence for a very long time, continually seeking for funds from external sources is not something we desire for our business because it shows that we are not taking our business as seriously as we should, and so we have plans in place to ensure that about a certain percentage of our earnings are but back into our business. This will not only allow us to sustain our business but suitably expand it as well, as we would be able to boost out bottom line to the benefit of our business.
Customers are the lifeblood of any business and we understand this fact that without our customers, not only are we likely to not generate sufficient revenue to cover our overhead expenses, our diagnostics business will also not last for very long.
This is why we have conducted a thorough survey of the target market that will allow us understand the kind of market we would be going into and how best to penetrate this market and capture the attention of our customers. This will also allow us roll out measures – such as incentives for our customers – that will help us retain a large part of our target market.
Finally, regardless of whatever vision we might have regarding our company, or how much expensive equipment we intend acquiring; without building the right business structure, we would eventually be starting a business that will fail. This is why we are going the extra mile to ensure that we source for and hire capable and proficient employees to help run our diagnostics business and help achieve all our intended goals and objectives.
Our employees will be made to undergo training when necessary so as to ensure that their skills are in line with industry demands. Also, we will ensure that our employees are well paid and have the best welfare packages better than what their counterparts in similar start-ups such as ours are getting.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress
- Purchase of trucks: Completed
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