Tapping Into The World of Lab Business
Given the increase in the average aging population, a large number of people will soon need additional medical care, including the services offered by medical laboratories. Regardless of whether you build a medical laboratory from scratch or purchase it from another owner, the services offered are of tremendous help to this growing population of older people.
Nevertheless, if you are interested in starting your medical laboratory business, you should know that they are highly regulated, intimidating to deal with, and expensive to finance.
A business idea wrapped in crucial but small details
There are several laboratories that start out as entrepreneurial ventures with the main goal of innovating and testing new technology. However, the startup lab must meet certain requirements in order to develop as a business organization. Here is a list of the few things a startup lab needs.
1. Developing a business plan
The first step is a business plan that consists of a description of the company, a summary, a market analysis, a management and organizational part, a product or service part and a part for financing applications.
2. Decide on the structure of your business
Will your startup lab be a sole proprietorship or a corporation or an LLC (limited liability company) or a partnership? Each type has its own tax and legal implications that must be understood. Get help from a professional tax advisor before finalizing the business structure.
3. Determining the financing of the lab
There are several budding entrepreneurs who use their personal resources to finance their labs. This is called ‘seed funding’ and helps with arranging the laboratory, paying laboratory rent, overhead costs, employee salaries and other legal and insurance costs.
4. Choose the right LIMS for your laboratory
Laboratory Information Management System (LIMS) has the ability to combine various databases, instruments, applications and systems and provide features that help handle the different facets of laboratory operations. After implementing a LIMS, all kinds of laboratory experiences become more efficient and simpler.
5. Hiring laboratory staff and employees
A laboratory entrepreneur must be aware of labor and employment laws before hiring consultants and employees to ensure compliance. Employment law may include writing appropriate job descriptions, providing benefits to employees, and providing employee manuals.
6. Financing the laboratory
As the laboratory eventually expands, the entrepreneur must look for viable financing options. You can resort to venture capital funds or angel investors. The SBA (Small Business Administration) also offers research grants to small businesses engaged in R&D under the STTR and SBIR programs.
The importance of a laboratory information management system for your start-up lab
LIMS provides the most crucial benefits in terms of accuracy, better efficiency and easier access to data required to produce commendable results. However, choosing a laboratory information management system for your laboratory is a difficult task. Here are a few things to consider when choosing.
1. Consider your current laboratory processes
Do you ever outline your workflow process? Do you know where the disruptions occur? Ask yourself where exactly the ineffective processes are being used. Write down what you are looking for in your LIMS and how you can create a unique environment.
2. Consider the type of laboratory
The industry you operate in is one of the basic factors to consider when choosing a LIMS for your startup lab. There are separate LIMS to support medical device, research, pharmaceutical, biotechnology, environmental and food testing laboratories.
3. Consider expenses
Have you consulted with the relevant departments to determine how much your company can spend? While it’s difficult to put a price tag on effective laboratory management, you need to be sure you’re making the best financial decisions for your business.
So if you are all set to realize your dream of starting a laboratory business, keep all the above-mentioned factors in mind. If necessary, seek the help of a financial advisor.
