With the ever-rising demand for drug and substance abuse screenings in the United States, starting a drug testing business is a rewarding venture. Research shows that out of the over 20 million Americans with substance addiction, more than 70% of them are employed. According to the statistics, they constitute about 9% of the working population.
Without testing and treatment, workers with a substance use disorder predispose themselves and others to accidents. Ultimately, this leads to a reduction in productivity, high medical costs, and sometimes lost lives. Owing to these reasons, drug testing in the workplace is indispensable.
The fact that companies and schools are always looking for drug testing services to foster drug-free and safe environments explains the high demand for the services. Here at DTC Medical Supplies, Inc, we partner with drug testing service providers by providing reliable and diverse drug test kits and other relevant supplies to meet the market needs.
If you are wondering whether starting a drug testing business is worth it, continue reading for pros and cons plus tips to help you make an informed decision.
Benefits of Starting a Drug Testing Business
Drug testing is a lucrative business. Thanks to the availability of a vast network of connections, the simplicity of the business model, and a load of other benefits, the field is ripe with opportunities. Below are some of the benefits running a drug testing business offers.
A Wide Network
The drug testing industry boasts a vast network of players. From hospitals to rehabilitation centers, schools, and businesses, the need for drug testing services cuts across many organizations. Once you reach out and establish connections, you can have a constant stream of clients coming your way within no time.
Simple Business Model
The drug testing business has a simple model. All you require to get started is to acquire the right equipment and supplies, set up the laboratory, and obtain the necessary certifications. Besides that, you can run the business with as minimal overheads as possible since you do not need to set up several departments to start operating.
Short Learning Curve
Starting a drug testing business has a short learning curve. With a wealth of relevant information available online on what you need to know and how to set up, you can start the business with minimal learning. However, like any other business, you must keep abreast with regulations and industry trends to remain relevant and compliant.
Positive Contribution to the Community
Perhaps, one of the highlights of running a drug testing business is its impact on the community. Substance use addiction affects families, institutions, and workplaces. Reduced productivity, increased safety risks, high medical costs, etc., are all negative implications of substance abuse on society.
By running a drug testing business, you contribute to the efforts of eradicating alcohol and substance abuse and rehabilitating addicts.
Challenges of Starting a Drug Testing Business
While there are immense benefits of offering drug testing services, you need to be aware of the potential downsides to mitigate them for a smoother operation. Let us look at some of them.
High Competition
The drug testing field is a crowded space. With many drug testing businesses competing for the same clients, you must be strategic when mapping the market to identify the unreached. Also, you can edge yourself against the competition by offering various testing options (urine, saliva, blood, breathalyzer, hair) to attract a broader client base.
Low-Profit Margins
Another setback of the drug testing business is its low-profit margins. To remain profitable, you should strive to keep your expenses low. Nonetheless, since it is a high-volume business, you can quickly boost your profits once you establish several contacts to give you a constant stream of business.
Finding the Right Supplier
As with any other business, reliable supply is key to its smooth running. While there are many suppliers in the nation, finding the right one is a challenge faced by drug testing businesses.
Here at DTC Medical Supplies, Inc., we make it easier for clients to get timely supplies through convenient ordering and shipping.
How to Start Drug Testing Business
Despite the challenges of the drug testing business, the opportunities thereof are immense. Once you make the necessary contacts and partner with a reliable supplier, you can weather most of the challenges with time.
That said, here are steps to guide you as you set up.
Understand the Industry
As much as the drug testing business is simple to operate, there are compliance requirements that you must observe. One way of remaining compliant and operating profitably is by familiarizing yourself with the industry. For example, seek to understand the testing guidelines – which types of jobs require testing, when are the tests needed, what substances are tested for, which are the most common tests, what is the drug testing gold standard, etc.
Research the Market
Before you set up, you need to conduct thorough market research. For instance, find out which areas in the country have the highest demand for testing services and the concentration of providers in those regions. In addition, after identifying the fields that require drug testing, research the services they seek most and how much your competitors charge for them.
Diversify Your Services
To remain competitive, you should offer various services to cater to the different needs of the target market. Once you identify your ideal market, ensure you provide them with alternative testing services such as hair, saliva, blood, urine, and breathalyzer.
The quicker tests like saliva and hair tests can encourage test uptake while offering the more involving ones like urine and blood test ensures you do not lock out employers or institutions that require them.
Write a Business Plan
Making a business plan is an essential step before setting up any business. It is a blueprint that outlines your business goals and how you intend to achieve them. In other words, it guides you as you map out how to leverage your strengths and mitigate your weaknesses as you harness the opportunities your target market presents.
On the same note, it details your financial strategy, including managing cashflows, sourcing for funding, pricing model, etc.
Offer a Reliable Testing Service
With the stiff competition in the drug testing industry, you need to distinguish yourself as a provider who can be relied on for accurate results. From sample collection to evaluation and reporting procedures, your service should be thorough and error-free.
Besides earning the trust of your connections and clients, guaranteeing accurate testing ensures you do not fall into compliance pitfalls.
Provide Convenient Services
In the same way, you should prioritize service convenience and flexibility to the clients to win more business. Sometimes, the clients will have to come to your premises for testing, while other times, it would be more convenient for them to do the tests on site.
For example, when a client is conducting pre-employment testing on a single or a few employees, sending them to your location would be more appropriate. However, when conducting continuous random testing, setting up at their premises would be more convenient for them as it would ensure minimal interruption to their business operations.
As you set up, ensure you create the means to offer mobile and onsite testing to clients to make your business more attractive to them.
Offer Competitive Prices
As you set your pricing model, ensure the prices are as competitive as possible. For instance, you could discount the price based on the number of panels tested or the number of people taking the drug tests. You could also offer competitive prices for businesses or institutions that have an ongoing contract with you as opposed to one-off clients.
Partner with DTC Medical Supplies, Inc. for Reliable and Accurate Test Supplies
As earlier mentioned, finding a reliable supplier is one of the challenges faced by drug testing businesses. At DTC Medical Supplies, Inc., we help drug testing businesses overcome this setback by offering reliable drug test kits and other testing supplies. For instance, our rapid tests are easy to use and accurate and loved by professionals for yielding fast results.
Our delivery is also seamless – our team ensures you receive the supplies in excellent condition and on time. From drug tests (hair, saliva, urine, etc.) to Covid-19 tests, we provide same-day shipping for all the testing products in stock.
Why choose us?
Despite operating in a highly competitive drug testing supplies industry, our three pillars have kept our business thriving. These include;
- Impeccable customer service – We strive to satisfy and retain lifetime customers
- Solid and dependable supply chain – Our rich network allows us to provide competitive prices, ultimately saving costs for the end-users
- Product education and helpful advice – We are keen on offering extensive product education and helpful advice that enlighten not just our customers but the end-users as well
If you are ready to start your drug testing business, explore our shop to see the supplies available, place your orders and enjoy prompt shipping.