Are you about starting a DNA testing laboratory? If YES, here is a detailed sample DNA testing center business plan template & FREE feasibility report.
Okay, so we have considered all the requirements for starting a DNA testing business. We also took it further by analyzing and drafting a sample DNA testing center marketing plan template backed up by actionable guerrilla marketing ideas for DNA testing businesses. So let’s proceed to the business planning section.
Table of Content
- Why Start a DNA Testing Business?
- DNA Testing Business Plan – Executive Summary
- DNA Testing Business Plan – SWOT Analysis
- DNA Testing Business Plan – MARKET ANALYSIS
- DNA Testing Business Plan – SALES AND MARKETING STRATEGY
- DNA Testing Business Plan – Publicity and Advertising Strategy
- DNA Testing Business Plan – Sustainability and Expansion Strategy
Why Start a DNA Testing Business?
One of the businesses that you won’t find loads of people involved in is one that requires detailed technical scientific skills and one of such businesses is a DNA testing business or a genetic laboratory business. The fact that loads of people are not involved in this type of business does not mean that it is not profitable.
The truth is that if your lab is located in an area with loads of hospitals and medical facilities and vehicular traffic and you have competent and highly qualified DNA testing specialists and scientists under your payroll, you may not have to struggle to get people to patronize your services.
If you are sure this type of business is what you want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services amongst others.
It is one thing to have a fantastic idea cum business plan, it is another thing for the business plan to translate to money (profits) that is why it is important to assemble a team of dedicated workers to work with if you want to be successful with your DNA testing business. Here is a sample DNA testing business plan that is capable of leading you all the way;
A Sample DNA Testing Business Plan Template
- Industry Overview
Players in the DNA and DNA Forensic Laboratories industry are responsible for carrying out Discretionary paternity testing, legal forensic services, veterinary DNA testing and ancestry and family relationship testing et al.
The global forensic technologies market is segmented on the basis of service, product, and region. The product category includes DNA testing, biometric devices, ballistic forensics, digital forensics, and others. Based on service, the market is divided into DNA profiling, fingerprinting analysis, chemical analysis, and firearm analysis.
Geographically, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, France, and rest of Europe), Asia-Pacific (Japan, China, India, Australia, and Rest of Asia-Pacific), and LAMEA (Brazil, south africa, Saudi Arabia, and Rest of LAMEA).
A recent report published shows that over the five years to 2019, the projected revenue for the DNA Forensic Laboratories industry will grow at an annualized rate of 5.1 percent to $3.3 billion, including growth of 4.4 percent in 2019 alone. Over the past five years, the industry has benefited from improved accessibility and declining prices, which have made DNA testing more common and affordable.
Furthermore, the industry has benefited from the long-term trend of an increasing number of babies being born outside of wedlock. Babies born outside of wedlock are more likely to need DNA paternity testing because proof is often required to make men financially responsible for their offspring under the law.
Recent statistics has it that the DNA and DNA Forensic Laboratories industry in the united states of America, is worth over $3 billion, with an estimated growth rate of 5.1 percent between 2014 and 2019. There are about 1,268 DNA forensic laboratories spread across different regions in the United States and they are responsible for employing about 17,795 people.
It is important to state that Laboratory Corporation of America Holdings is the only company that can boast of having a lion share of the available market in the United States. Despite that, the industry is still pretty open for fair competitions.
There are several barriers that dissuade entry to this industry. Some of the barriers include heavy regulation, high investment costs, a high level of competition and a fast rate of technological change. The industry is capital intensive. In addition to acquiring, maintaining and updating specialized laboratory equipment, companies must have access to highly qualified scientist.
If you are considering starting your own DNA and DNA forensic laboratory in the United States, then you should try and work around the industry barriers. The truth is that, the barriers to entry in the business are high due to the significant regulatory requirements and the experience and strength of incumbents. For example, medical licensure creates a barrier to entry in the healthcare sector.
As a matter of fact, it is absolutely compulsory for any investor who is looking towards starting a DNA forensic laboratory to meet extensive federal, state and local laws and regulations. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures.
Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly for aspiring entrepreneurs to enter the industry.
In conclusion, if you are certain and you are ready to go all the way, you will surely succeed in establishing your own DNA forensic laboratory in the United States of America.
DNA Testing Business Plan – Executive Summary
Antônio Gerald® DNA and DNA forensic laboratory, LLC is a licensed and certified DNA and DNA forensic laboratory that will be located in the heart of Sterling Heights, Michigan – United States of America. Our laboratory facility is adjacent one of the biggest medical clinics in the whole of Michigan.
Antônio Gerald® DNA and DNA Forensic Laboratory, LLC is in the industry to offer discretionary paternity testing, legal forensic services, veterinary DNA testing and ancestry and family relationship testing et al. We are well trained and equipped to service the market segments that require our services.
We are in the DNA forensic laboratory business to deliver excellent forensic testing related services to all those who will patronize our services. We will also ensure that when carrying out our duties, we will comply with the laws and health regulations in Michigan and The United States of America. Our employees are well trained and qualified to handle the wide range of DNA forensic services.
Antônio Gerald® DNA and DNA forensic laboratory, LLC will operate 24 hours 7 days a week; our laboratory facility will be opened round the clock to attend to clients (patients). We have a standard medical call center that is manned by trained health workers. Our workforce will be well trained to operate within the framework of our organization’s culture and also to meet the needs of all our customers.
Antônio Gerald® DNA and DNA forensic laboratory, LLC will ensure that all our patients cum customers are given first class treatment whenever they visit our DNA and DNA forensic laboratory. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they grow to.
Antônio Gerald® DNA and DNA forensic laboratory, LLC is a family business that is owned and managed by Dr. Antônio Gerald who graduated with First Degree, MSc and PhD in Biochemistry and Molecular Genetics from Michigan State University.
A native of Poughkeepsie, New York, Dr. Antônio Gerald a notable lab scientist also ran track at Penn State. He started his career at one of the leading DNA forensic clinics in Michigan as a lab technologist. Subsequent roles at the company included Head DNA forensic lab, and lead researcher of lab scientists.
- Our Services Offering
Antônio Gerald® DNA and DNA forensic laboratory, LLC is in the business to service a wide range of clients and of course to make profits, which is why we will ensure that we hire competent forensic laboratory technicians and scientists.
We will ensure that we do all that is permitted by the law of the United States to achieve our aims and ambition of starting the business. We will be involved in the following services;
- Discretionary paternity testing
- Legal forensic services
- Veterinary DNA testing
- Ancestry and family relationship testing and tracking
- Other services related to human genetics
Our Vision Statement
Our vision is to become one of the leading brands in the DNA and DNA forensic laboratory line of business in Michigan and to establish a one stop forensic laboratory in Sterling Heights – Michigan and in other key cities in the United States of America.
- Our Mission Statement
Our mission is to establish a world – class DNA and DNA forensic laboratory business that will carry out trusted and reliable services maintaining international best practices as stipulated in our industry.
- Our Business Structure
At Antônio Gerald® DNA and DNA forensic laboratory, our intention of starting is to build a standard DNA forensic laboratory in Sterling Heights – Michigan. We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Lead DNA Forensic Lab Scientists (Manager)
- Forensic DNA Analyst
- Accountant / Cashier
- Marketing and Sales Executive
- Client Service Executive
Roles and Responsibilities
Lead DNA Forensic Lab Scientist (Manager):
- Responsible for providing direction for the business
- Responsible for fixing prices and signing business deals and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Accountable for managing the daily activities in the organization
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Prepares budget and reports for the organization
- Defines job positions for recruitment and managing interviewing process
- Regularly holds meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Forensic DNA Analyst (Technicians and Scientist)
- Responsible for conducting discretionary paternity testing, legal forensic services, veterinary DNA testing and ancestry and family relationship testing et al
- Strictly follow safety procedures and other laboratory rules and regulations
- Analyze and interpret data
- Identify problems that may affect test performance and correct those problems
- Interact with investigative personnel through forensic casework
- Implement and adhere to quality assurance programs
- Provide court testimony when required
- Perform routine maintenance and quality control checks. They maintain each piece of equipment, check for damages, and request replacement equipment as needed
- Handles any other duty as assigned by the manager.
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents Antônio Gerald® DNA and DNA forensic laboratory, LLC in strategic meetings
- Helps to increase sales and growth for Antônio Gerald® DNA and DNA forensic laboratory, LLC
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Antônio Gerald® DNA and DNA forensic laboratory, LLC
- Serves as internal auditor for Antônio Gerald® DNA and DNA forensic laboratory, LLC
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ services to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives parcels / documents for the company
- Distributes mails in the organization
DNA Testing Business Plan – SWOT Analysis
We are quite aware that there are a number of DNA forensic laboratories all over the United States of America, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Antônio Gerald® DNA and DNA forensic laboratory, LLC employed the services of an expert HR and Business Analyst with bias in startups to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Antônio Gerald® DNA and DNA forensic laboratory, LLC;
Some of the positives that we are bringing to the fore in terms of strength is the fact that we can boast of having some of the most competent and qualified forensic lab technologist and scientists in and around Sterling Heights – Michigan under our payroll. We are not ruling out the fact that we robust business network with security agencies, courts and hospitals and medical clinics all across the city.
A major weakness that may count against us is the fact that we are a new DNA forensic laboratory business in Sterling Heights – Michigan and we don’t have the financial capacity to compete with multi – million dollar forensic laboratories when it comes to working for a wide range of high paying clients.
Many of the tests performed by this industry are not medically or legally required. For example, individuals may seek paternity testing services out of curiosity rather than from a court order. Since the cost of tests is relatively high, an increase in per capita disposable income will boost demand from such parties.
Per capita disposable income is expected to increase in 2019, presenting a potential opportunity for the industry; we are well positioned to take on the opportunities that will come our way.
An increase in the number of births will boost the number of individuals seeking paternity testing services. The number of births is expected to increase in 2019. However, volatility in the number of births poses a potential threat to the industry. So also, unfavorable government policies may also pose a threat for businesses such as ours.
DNA Testing Business Plan – MARKET ANALYSIS
- Market Trends
In 2014, National Institute of Justice (NIJ) and National Science Foundation (NSF) jointly initiated an Industry/ University Cooperative Research Center to improve university and industry collaboration in forensic science R&D and education.
Furthermore, NIJ has established a partnership with the National Science Foundation (NSF) and the National Institute of Standards and Technology (NIST) to promote innovation in forensic science. In addition, NIJ funds forensic science projects to promote fundamental forensic science research.
In recent time, employing the services of DNA forensic analysts to sort out legal cases that has to do with crimes and parental denial or claims is now the norm and it has proven to be highly effective and reliable. Going forward, improved technology and declining costs will foster industry revenue growth.
- Our Target Market
We have positioned our DNA and DNA forensic laboratory to service businesses in the healthcare industry in and around Sterling Heights – Michigan and every other location where outlets of our forensic laboratory will be located.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to offer a wide range of DNA and DNA forensic laboratory services to the following customers;
- Medical laboratories
- Families and individuals
- Crime Investigators
- Security agencies
Top on the list when it comes to the competitive advantages that we will be bringing to the table are access to a highly skilled workforce, a good technical knowledge of our services, access to the latest technology and of course establishing an economy of scale.
So also, we are a well-equipped DNA and DNA forensic laboratory business that has loads of complimentary business offerings that can easily assist us in attracting customers to our facility. We can confidently say that the location of our DNA and DNA forensic laboratory business will definitely count as a positive for us amongst any competitor that might start a business in same location where ours is located.
For the time being, Antônio Gerald® DNA and DNA forensic laboratory, LLC has no real competitors that can compete with the quality of service we offer and our business offerings et al.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
DNA Testing Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
Antônio Gerald® DNA and DNA forensic laboratory, LLC is in business to attend to a wide range of clients in and around Sterling Heights – Michigan. We are in this line of business to maximize profits and we are going to ensure that we achieve our business goals and objectives.
Our source of income will come from offering the following services;
- Discretionary paternity testing
- Legal forensic services
- Veterinary DNA testing
- Ancestry and family relationship testing and tracking
- Other services related to human genetics
One thing is certain when it comes to DNA forensic laboratory business, if your facility is centrally positioned where you have a good number of health facilities, you will always attract customers that will sure translate to increase in revenue generation for the business.
We have been able to critically examine the DNA and DNA Forensic Laboratories industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Sterling Heights – Michigan.
Below are the sales projections for Antônio Gerald® DNA and DNA forensic laboratory, LLC. It is based on the location of our business and other factors as it relates to DNA and DNA forensic laboratory startups in the United States;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $600,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Antônio Gerald® DNA and DNA forensic laboratory, LLC we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for courts, investigators, hospitals and healthcare facilities in and around Sterling Heights – Michigan.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the DNA and DNA Forensic Laboratories industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Sterling Heights – Michigan.
In summary, Antônio Gerald® DNA and DNA forensic laboratory, LLC will adopt the following sales and marketing approach to win customers over;
- Introduce our DNA and DNA forensic laboratory by sending introductory letters alongside our brochure to hospitals, courts, security agencies, crime investigators, medical laboratories and key stake holders in Sterling Heights – Michigan
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like hospitals, schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our DNA and DNA forensic laboratory in relevant health magazines, newspapers, TV and radio stations.
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services.
DNA Testing Business Plan – Publicity and Advertising Strategy
Despite the fact that our DNA and DNA forensic laboratory is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our business.
Antônio Gerald® DNA and DNA forensic laboratory, LLC has a long-term plan of opening outlets in key cities in the United States which is why we will deliberately build our brand to be well accepted in Sterling Heights before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Antônio Gerald® DNA and DNA forensic laboratory, LLC;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that we position our banners and billboards in strategic positions all around Sterling Heights – Michigan
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our DNA and DNA forensic laboratory business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the DNA and DNA Forensic Laboratories industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Sterling Heights – Michigan.
- Payment Options
The payment policy adopted by Antônio Gerald® DNA and DNA forensic laboratory, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Antônio Gerald® DNA and DNA forensic laboratory, LLC will make available to her clients;
- Payment via bank transfer
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for all services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
Startup Expenditure (Budget)
These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in the Unites States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Antônio Gerald® DNA and DNA forensic laboratory, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $75,600.
- The cost for laboratory remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory – $100,000
- The cost for counter area equipment – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs: $7,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- Miscellaneous: $5,000
We would need an estimate of $350,000 to successfully set up our DNA and DNA forensic laboratory in Sterling Heights – Michigan.
Generating Funds/Startup Capital for Antônio Gerald® DNA and DNA forensic laboratory, LLC
Antônio Gerald® DNA and DNA forensic laboratory, LLC is a private registered business that is solely owned and financed by Antônio Gerald and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
DNA Testing Business Plan – Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Antônio Gerald® DNA and DNA forensic laboratory, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our wide range of forensic laboratory services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Antônio Gerald® DNA and DNA forensic laboratory, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- 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
- Leasing of facility and remodeling the DNA and DNA forensic laboratory facility: In Progress
- 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
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed equipment and machines, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: 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
- Establishing business relationship with hospitals, courts, security agencies, crime investigators, medical laboratories and other health facilities: In Progress