Fargo Medical Laboratories

A lab business plan for the start-up company Fargo Medical Laboratories, a blood testing facility. The information provided in this case study is intended to shed light on the considerations taken when modeling a lab business.

See External References to access the full business plan.

Objectives

1. Securing 60% of the physicians in the Main Street Professional Building as customers.
2. Develop 20% of their revenue from physicians who practice in the nearby vicinity.
3. Reach profitability with 12 months.

Market

FML has identified 2 market segments they serve.

Services

Comprehensive battery of in-house blood tests for physician’s patients including the following:

*Other types of blood analysis can be done with a specimen sent to a central lab for testing through a courier service that transports the specimens in an ice cooler and returns the results to FML via encrypted email.

Mission

“It is Fargo Medical Laboratories’ mission to serve local physicians with fast, accurate, private, reasonably priced blood testing services. Fargo Medical Laboratories exists to exceed all of their customer’s expectations.”

Keys to Success

1. Lease space in the Main Street Professional Building, the location of our primary target market.
2. Set up a strong contract with a large local laboratory to outsource the more difficult tests, ensuring fast service and good rates.
3. Follow a strict regime of accounting controls to help ensure profitability.

Competition

There are a total of 7 blood drawing laboratories in Fargo.

The Closest competitor is Mednet, located four miles away. This is the facility that 95% of the physicians in the Main Street Professional Building currently use.

Sales Strategy

Most forms of insurance accepted

This is important because the vast number of patients that will have their blood tested will not be self-paying.

Quick turn-around

A doctor’s diagnosis and treatment is often based on the results of the test.

Convenience

There is no other alternative that is more convenient than sending the patients to an office within the building.

Customer Service Goals

• The receptionists and phlebotomists are friendly.
• A satisfactory specimen is secured on the first try.
• Patient discomfort is minimized.
• The phlebotomist was able to personify the laboratory and promote a positive impression between the lab and the patient.

Marketing Strategy

Fargo Medical Laboratories will undertake a marketing strategy employing three means of communicating its new service offering:

1. Direct mail: Local physicians will receive a flyer announcing the opening of Fargo Medical Laboratories and detailing the services offered. A list of physicians is easily obtained through the local licensing board.
2. Personal introductions: to Main Street Professional Building tenants. A representative from Fargo Medical Laboratories will visit all of the medical offices within the building as a way of introducing FML to the doctors. This will provide FML with an opportunity to develop a personal relationship with doctors, something that is useful and valuable for service providers within a licensed industry.
3. Advertisements: Ads will be placed in the regional flyer that all licensed physicians receive as members of their local chapter of the American Medical Association (AMA).

Personnel Plan

• Lab manager will handle business development, sales, marketing, accounting, courier, customer service, and assorted lab tech work.
• Two phlebotomists on staff at any one time to draw blood.
• One Lab technician will be responsible for doing onsite blood tests. This will be a part-time position. Lav manager will be able to fill in as needed in this capacity