Drug testing services are now increasing in demand as more and more companies are adopting policies that seek to reduce absence and theft rates by mandating periodic testing of employees. In addition, many private and public organizations ensure that new employees pass through a drug test for safety purposes.

If you have adequate knowledge of laboratory test procedures as well as the required funding, you can make money by starting a government-approved drug testing center. So I advice you read the steps below to find out how to start one.

How to Start a Drug Testing Center – Sample Business Plan Template

1. Write your business plan

Starting a business requires adequate planning, and a drug-testing center is no exception. So you should figure out the areas that you are interested in serving as well as the type of testing you will provide. Also, you must figure out what assets and personnel you need to provide those services and run your business effectively and efficiently.

You need to figure out your target market. You can cater to companies, homes, schools, sporting organizations, or a combination of two or more. While companies use drug testing services to check their employees, families use these services to check their children, and schools and sports organizations usually test their athletes for performance-enhancing drugs.

Another factor to consider is how you will reach your clients. Will you bring your drug testing service to your clients, or will they come to you? Many clients love the convenience of having the drug testing service brought over to them, and you may want to adopt this method because it can save the costs of office and laboratory.

But you will have to send samples to a reputable laboratory for testing. The other option—that is, having your clients come to you; offers credibility as a company, but requires higher startup costs to cover for office location and laboratory.

While there are easy-to-use kits that test for illicit drugs, your business will most likely require sophisticated equipment for procedures that cannot take place at home or in a doctor’s office. Such equipment produce results that are more accurate.

Your business plan should also indicate the list of drugs you will be testing for, as well as the equipment and supplies required for testing for each drug. Your required startup and running costs, projected income, marketing strategies, and unique selling points are other important information that should go into your business plan.

2. Fulfill legal requirements

It is important that you contact your local health authority and other appropriate agencies to find out what licenses and other requirements you need in order to open a drug testing center. These requirements vary between states and countries, so you need to find out what applies in your location. You may also consider involving a seasoned attorney when taking this step.

However, you must bear in mind that you will also need to register your business name with your local business registration office.

3. Choose a good location

You will need to find a location if your business model requires that clients come to you. This may not be necessary if you are running a mobile drug testing service, in which case a vehicle large enough to carry your equipment would suffice.

While you don’t need a large facility, your location must have multiple bathrooms or cubicles for client privacy—since urine samples for testing will be taken at the location. However, you need to be sure that individuals being tested don’t have access to water or other substances that can tamper with urine, and ultimately affect test results.

4. Buy the necessary equipment

You will need specimen collection and drug kits—which are the most basic equipment—as well as specialized laboratory equipment that promise better results in terms of accuracy. You will also need a computer for keeping client records, a reliable phone line, and a vehicle for conveying your equipment—if you are running a mobile drug testing service.

5. Get liability insurance

Because drug test results are usually contested, leading to legal action, you will need to obtain liability insurance to cover your legal costs in the event of a lawsuit. So you need to contact a seasoned insurance agent or attorney to find out more about this.

6. Hire staff

If you are planning to start a drug testing center that conducts tests for a long list of drugs, or you don’t have enough drug testing skills yourself, then you need to hire skilled individuals to work with you. However, you must ensure that these individuals are highly skilled and experienced in specimen collection and testing.

7. Market your business

Advertise your drug testing business at places where schools or other places where you can easily attract your target clients.