business plan for food testing laboratory

Food Testing Lab Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Food Sector

Are you about starting a food testing business? If YES, here is a detailed sample food testing lab business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a food testing business. We also took it further by analyzing and drafting a sample food testing marketing plan template backed up by actionable guerrilla marketing ideas for food testing companies. So let’s proceed to the business planning section.

If you are a scientist and you intend starting your own business, you can decide to start a food testing lab business; this industry is open to certified lab scientists cum investors.

Starting a food testing lab business requires training, experience, creativity, reasonable startup capital, license and detailed business plan. The truth is that you can’t just wake up and launch your own food testing lab business; you must follow established protocols. This industry is highly regulated because of the potential risk involved.

Below is a sample food testing lab business plan template that will help you successfully write yours without much stress.

A Sample Food Testing Lab Business Plan Template

1. industry overview.

Food testing labs engage in food testing, and food testing is a process used to check whether a food is safe and that it does not contain harmful contaminants, or that it contains only permitted additives at acceptable levels, or that it contains the right levels of key ingredients and its label declarations are correct, or to know the levels of nutrients present.

Food testing lab business is a subset of the Laboratory Testing Services industry and establishments that operate in the Laboratory Testing Services industry perform physical, chemical and other analytical testing for commercial purposes.

Such testing may occur in a laboratory or an on-site facility (i.e. where the product is manufactured or developed). Most results from industry-led tests are checked against government regulations and environmental, industrial and product standards. Please note that this industry does not include medical and veterinary testing labs.

In an increasingly regulated society, pressure on operators to ensure the safety and quality of their products is higher than ever. A greater number of government safety regulations and consumer lawsuits have led to rigorous testing of manufacturers’ goods prior to sale.

The industry has grown over the past five years, driven by renewed consumer spending and corporate investment in the development of new products. As companies accommodate stricter environmental regulations and invest in new products over the next five years, demand for laboratory testing services is expected to grow.

The Laboratory Testing Services Industry is indeed a thriving sector of the economy of countries like Israel, Japan, Canada, India, China, United Kingdom , Germany and the united states of America. Statistics has it that in the United States alone, the industry generates over $20 billion annually from more than 10,837 registered and licensed laboratory testing services companies (food testing labs included).

The industry is responsible for the employment of over 150,989 people. Experts project the industry to grow at a 2.0 percent annual rate from 2014 to 2019. Bureau Veritas, Intertek Group PLC and SGS SA are the companies with the lion shares of the Laboratory Testing Services industry in the United States of America.

A recent report published by IBISWORLD shows that capital expenditure in the Laboratory Testing Services is low. For every $1.00 spent on labor, an estimated $0.07 is allocated toward capital. The majority of work requires specialized, high-cost equipment to conduct certain types of tests. Additionally, depreciation expenditure is expected to account for 3.8 percent of industry revenue in 2018.

Nonetheless, the industry is heavily labor intensive. Industry employees perform a range of activities, from simple manual tasks and automated experimental procedures to high-tech testing. Since the industry requires a highly skilled labor force, wages are high. Labor costs account for about 50.7 percent of industry revenue in 2018 and have risen substantially over the past five years.

The bottom line is that the laboratory testing services industry is still very much open for new entrants; the competition within the industry is not as stiff as similar industries. If your food testing lab is well – staffed and equipped, it can gain fair share of the available market in any country or region you intend launching the business.

2. Executive Summary

Nicole Williams® Food Testing Lab, Inc. is a licensed laboratory testing services company with bias in food testing that will be located in an industrial area in Bowling Green – Kentucky. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of long-term renewal on terms and conditions that are favorable to us.

The facility has government approval for the kind of business we want to run and the facility is easily accessible to our target market.

Nicole Williams® Food Testing Lab, Inc. is in the laboratory testing industry to perform physical, chemical and other analytical food testing for commercial purposes. Such testing may occur in a laboratory or an on-site facility (i.e. where the food product is manufactured or developed). We are also in business to make profits at the same time to give our customers value for their money.

We are aware that there are several food testing labs scattered all around the United States, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that can easily accept our services and brand.

Much more than offering highly regulated scientific services, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our services.

Nicole Williams® Food Testing Lab, Inc. will ensure that all our customers are given first class treatment whenever they bring their food items/products for testing in our food testing lab. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Nicole Williams® Food Testing Lab, Inc. will be owned and managed by Dr. Nicole Williams (PhD) and her immediate family members. Dr. Nicole Williams has a PhD in Molecular Science. She has over 20 years’ experience working in related industry as a senior research director prior to starting Nicole Williams® Food Testing Lab, Inc. She will be working with a team of professionals to grow the business.

3. Our Products and Services

Nicole Williams® Food Testing Lab, Inc. is going to run a standard and licensed food testing lab whose services will not only be accepted in Bowling Green – Kentucky but also throughout the United States of America. We are in the Laboratory Testing Services industry to make profits and also to give our customers value for their money.

We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goal and objective. These are some of the services that we will be offering;

• Food allergen testing
• Food chemical analysis
• Food contact tests
• Food contaminant testing
• Nutritional analysis and testing
• GMO testing
• Melamine contamination testing
• Microbiological tests
• Spiral plating for bacterial count
• Pesticide residue testing
• Veterinary drug residue testing
• PCR food testing

4. Our Mission and Vision Statement

• Our vision is to establish a standard food testing lab whose services will be not only be accepted in Bowling Green – Kentucky, but also throughout the United States of America.
• Our mission is to establish a standard and world class food testing lab that in our own capacity will favorably compete with leaders in the industry. We want to build a business that will be listed amongst the top 20 food testing labs in the United States of America.

Our Business Structure

Nicole Williams® Food Testing Lab, Inc. is established with the aim of competing favorably with other leading food testing labs in the industry. This is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind.

We will ensure that we only hire people that are qualified, honest, hardworking, 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 five years or more depending how fast we meet our set target.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Senior Research Fellow / Lab Scientist

Human Resources and Admin Manager

Sales and Marketing Manager

• Laboratory Assistant
• Accountants/Cashiers
• Customer Care Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization.

Senior Research Fellow/Lab Scientist

• Responsible for research and development in collaboration with others on projects. He or she makes detailed observations, analyzes data, and interprets results. Research associates prepare technical reports, summaries, protocols, and quantitative analyses.
• Responsible for identifying patentable inventions and acting as principal investigator in conducting his or her own experiments.
• Performs a variety of food testing research tasks and experiments. He or she may be required to make detailed observations, detecting food poisoning problems, and instituting corrective action.
• Determine optimal cultural requirements and perform tasks related to food related disease prevention; they often are required to collect, record, and analyze data, as well as interpret results.
• Participate in scientific conferences and contribute to scientific journals.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the lab meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversee the smooth running of the daily office and chemical lab activities.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Help increase sales and growth for the company

Accountant/Cashier

• 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
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Welcomes guests and clients 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 company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for the company
• Distribute mails in the organization

Laboratory Assistant:

• Responsible for performing a wide variety of research laboratory tasks and experiments, making detailed observations, analyzing data, and interpreting results. He or she maintains laboratory equipment and inventory levels for laboratory supplies. He or she may also write reports, summaries, and protocols regarding experiments.
• Performs limited troubleshooting and calibration of instruments.
• Responsible for handling agriculture and food testing, environmental testing, product performance and safety testing and product certification
• Responsible for handling food allergen testing, food chemical analysis, food contact tests, food contaminant testing, nutritional analysis and testing, GMO testing, Melamine contamination testing, microbiological tests, spiral plating for bacterial count, pesticide residue testing, veterinary drug residue testing and PCR food testing
• Performs routine maintenance of equipment and other related duties as required.

6. SWOT Analysis

We are quite aware that there are several food testing labs in 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.

Nicole Williams® Food Testing Lab, Inc. employed the services of an expert HR and Business Analyst with bias in startup business 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 Nicole Williams® Food Testing Lab, Inc.;

Part of what is going to count as positives for Nicole Williams® Food Testing Lab, Inc. is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.

So also, our state of the art food testing lab machines and equipment, the wide varieties of food testing services we conduct, our large national network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new food testing lab in the United States and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like AbbVie, Amgen Inc., Genentech Inc., Monsanto and Gilead et al are already determining the direction of the market both in the United States and in the global market.

• Opportunities:

The opportunities available to food testing labs cum laboratory testing services are enormous and this is anchored on the fact that it is compulsory for any chemical related products and food to undergo mandatory testing in the United States.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for food testing services and also to create our own new market. We know that it is going to requires hard work, and we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face are economic downturn and unfavorable government policies . It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new food testing lab in same location where ours is located and where our target market exists.

7. MARKET ANALYSIS

• Market Trends

A close study of the trends in the Laboratory testing industry shows that the industry is growing rapidly, with revenue increase over the last five years driven by rising use of chemical based products. Even though the industry has grown, a consolidation trend has emerged as large laboratory testing companies have increasingly targeted industry firms for acquisition, to expand their services portfolios ahead of impending patent expirations.

Sustained spending on research and development, including by the federal government, will benefit the industry going forward, driving growth in revenue generation and of course profit. The fact that there are several fields that need the input of food testing services to boost production makes it an industry that is worth paying attention to.

The industry has thrived due to higher government regulation of consumer and food products, government regulation across a range of industries has stimulated demand and aided by the projected expansion of the economy, experts expect industry revenue to grow. Lastly, external factors such as research and development expenditure and consumer spending in the Laboratory Testing Services industry will impact industry performance.

Lastly, consumer and industrial manufacturers are major users of laboratory testing services, and a decline in corporate profit can lead to a reduction in R&D expenditures. As companies choose in-house product testing instead of outsourcing such services to laboratories, demand for this industry can also diminish. Corporate profit is expected to increase in 2019, representing an opportunity for the industry.

8. Our Target Market

When it comes to the services offered by food testing labs, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just an industry, but all the industries that manufacture food – based products.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. Hence our target markets are;

• All manufacturing companies that manufacture food based products
• Food processing and preservation companies
• Medicine and pharmaceutical manufacturing companies
• Hybrid food processing and production companies
• Hybrids crop cultivators
• Hybrid animal breeders
• Hybrid bird/poultry farmers
• Hotels and restaurants
• Dormitories and schools where foods are served

Our competitive advantage

A close study of the laboratory testing industry reveals that the market has become much more intensely competitive over the last half decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the competition and we are prepared to compete favorably with other laboratory testing services companies in Bowling Green – Kentucky and throughout the United States.

Nicole Williams® Food Testing Lab, Inc. is launching a standard food testing lab that will indeed become the preferred choice for businesses in and around Bowling Green – Kentucky. We have easy access to highly skilled workforce, proximity to key markets and recommendation/accreditation from authoritative sources.

Part of what is going to count as competitive advantage for Nicole Williams® Food Testing Lab, Inc. is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow a business from the scratch to becoming a national phenomenon. So also, our state of the art food testing machines and equipment (laboratory), the wide varieties of services that we offer, our large and far reaching national network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups food testing labs) in the laboratory testing services industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Nicole Williams® Food Testing Lab, Inc. is established with the aim of maximizing profits in the laboratory testing services industry in the United States of America and we are going to ensure that we do all it takes to offer our services to a wide range of customers.

Nicole Williams® Food Testing Lab, Inc. will generate income by offering the following services;

10. Sales Forecast

One thing is assured when it comes to food testing lab, if your laboratory and services meet the expected industrial standard and if your laboratory is centrally positioned and easily accessible, you will always attract customers.

We are well positioned to take on the available market in Bowling Green – Kentucky and every city where our services will be offered and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the laboratory testing services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Nicole Williams® Food Testing Lab, Inc., it is based on the location of our business and other factors as it relates to small scale and medium scale food testing lab startups in the United States;

• First Fiscal Year (FY1):  $250,000
• Second Fiscal Year (FY2):  $550,000
• Third Fiscal Year (FY3):  $950,000

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 offering same services as we do 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 Nicole Williams® Food Testing Lab, Inc. and also the kind of services we will offer, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market in our target market locations.

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 and also for our services to favorable compete with other leading laboratory testing brands in the United States of America.

We hired experts who have good understanding of the laboratory testing 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 Bowling Green – Kentucky and other cities in the United States of America.

In summary, Nicole Williams® Food Testing Lab, Inc. will adopt the following sales and marketing approach to attract clients;

• Introduce our food testing lab brand by sending introductory letters to manufacturers of food – based products, hotels, boarding schools and other stakeholders in Bowling Green – Kentucky and other cities in the United States of America
• Advertise our services in community – based newspapers, local TV and radio stations
• List our business and products on yellow pages’ ads (local directories)
• Leverage on the internet to promote and market our food testing lab services – brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)
• Join local chambers of industry and commerce with the aim of networking and marketing our services.

11. Publicity and Advertising Strategy

In spite of the fact that our food testing lab is a standard one with a wide range of laboratory testing services that in few years from now will favorably compete with other leading brands in the industry. We will still go ahead to intensify publicity for all our brand. We are going to explore all available means to promote Nicole Williams® Food Testing Lab, Inc.

Nicole Williams® Food Testing Lab, Inc. has a long-term plan of attracting clients all around the United States of America which is why we will deliberately build our brand to be well accepted first in Bowling Green – Kentucky before venturing out. Here are the platforms we intend leveraging on to promote and advertise Nicole Williams® Food Testing Lab, Inc.;

• Place adverts on both print (community – based newspapers and food science magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our food testing lab brand
• Install our billboards in strategic locations all around major cities in the United States of America
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in our target location
• Ensure that our staff members wear our customized clothes, and all our official cars are customized and well branded.

12. Our Pricing Strategy

Nicole Williams® Food Testing Lab, Inc. will work towards ensuring that all our services are offered at highly competitive prices compared to what is obtainable in the United States of America.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our services are offered a little bit below the average price of various laboratory testing services in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.

• Payment Options

The payment policy adopted by Nicole Williams® Food Testing Lab, Inc. 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 Nicole Williams® Food Testing Lab, Inc. 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
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part.

13. Startup Expenditure (Budget)

Starting a standard food testing lab is indeed capital intensive. The bulk of the startup capital will be sent on leasing or acquiring a facility, acquiring license and in purchasing chemical lab machines and equipment. Aside from that, you are not expected to spend much except for the purchase of chemical supplies, paying of your employees and utility bills.

These are the key areas where we will spend our startup capital;

• The total fee for registering the Business in the United 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) – $1,300.
• Marketing promotion expenses for the grand opening of Nicole Williams® Food Testing Lab, Inc. 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.
• The cost for 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 $76,600.
• The cost for construction of a standard chemical testing lab – $100,000.
• 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) – $100,000
• The cost for start-up inventory (laboratory equipment, chemical supplies, and packaging materials et al) – $80,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
• The cost of launching a website – $600
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our food testing lab in Bowling Green – Kentucky.

Generating Funds/Startup Capital for Nicole Williams® Food Testing Lab, Inc.

Nicole Williams® Food Testing Lab, Inc. is owned and financed by Dr. Nicole Williams (PhD) and her immediate family members. They do not intend to welcome any external business partner which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) 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.

14. Sustainability and Expansion Strategy

The future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Nicole Williams® Food Testing Lab, Inc. 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 food testing 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.

Nicole Williams® Food Testing Lab, Inc. 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 all these are 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.

Check List/Milestone

• 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 construction of standard food testing lab: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members and friends: 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 food testing lab machines and equipment, 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 food manufacturing companies, and other related stakeholders: In Progress

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Food Testing Lab Business Plan Template

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Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management.

• Start a Laboratory
• Laboratory Buildout & Design
• Infectious Disease
• Lab Consulting Services
• Pathology Lab Solutions
• Lab Licensing Applications
• Test Menu Design
• Test Validation Services
• Commercialization
• Lab Growth Strategy
• Lab Management Services
• Remote Data Review
• Instrument Services
• Instrumentation & Supplies
• LCMS Instrument Solutions
• Chemistry & Immunoassay Analyzers
• Lab Instrument Refurbishment
• Recruiting & Staffing Services
• Temp/Traveler Lab Staffing
• Pathologist Recruitment
• Job Seeker Services
• Lab Director Services
• Technical Consultant Services
• RCM Solutions
• Payer Strategy Solutions
• Laboratory Billing Audit
• RCM Spotlight
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Industry Insights

by lighthouselab | Jun 30, 2022 | Clinical Laboratory , Consulting Services , Industry Insights , Tips for New Lab Owners | 41 comments

Medical laboratories bear an important responsibility in the healthcare field. Labs’ tests and analyses help doctors diagnose and treat patients’ problems, and labs help healthcare workers understand a patient’s conditions throughout the course of treatment.

Starting a lab business requires extensive research and planning. And it’s important to hire professional staff members who can follow the proper procedures so that your lab can maintain or earn accreditation. Learn more about the process with this step-by-step guide to starting your own laboratory business .

1. Research and Create the Business Plan

Every great business starts with research. Then, you compile this research into a business plan. Your business plan helps you plan for success, outlining your goals and how you will achieve them.

Knowing the parts of a business plan will help guide and then organize your research. The key components of any successful laboratory business plan are:

• The executive summary : This is the largest part of your plan and highlights key parts from the entire plan. After reading the executive summary, the reader should know your mission statement, what your business does, how it does it, who it’s targeting, and what differentiates It from the competition.
• Products and services : This includes pricing and unique features and benefits.
• Market analysis: This includes information about your target market, your coemption, and potential changes in the industry that could impact your business.
• Marketing strategy : A marketing strategy determines how your lab will attract and retain customers.
• Budget and financial planning : These concerns cover potential costs and how to manage them. Include a pro forma statement that projects future income and expenses. The pro forma is helpful for attracting lenders and investors.

2. Establish the Business Structure

Next, decide on your lab’s business structure. The structure determines the activities your business can do, legal responsibilities, and your lab’s tax obligations. Seek legal and tax advice from experts to help you determine which structure best suits your business goals and needs.

The four main types of business structures are sole proprietorship, partnership, corporation (C or S), and limited liability company (LLC). Here is basic information about each business structure type.

• Sole proprietorship: This is the simplest structure, with one individual responsible for operating the business. Business income and expenses are included on the owner’s tax return.
• Partnership: This is the simplest structure for a business with two or more owners. The partners are personally liable for business debts.
• Corporation: This complex business structure requires owners to meet more tax requirements and follow more regulations. But this gives your business a separate entity from the owners. Choose between a C-corporation or an S-corporation.
• LLC: This structure combines elements of partnerships and corporations. It gives owners personal liability protection and reduces tax requirements.

3. Fund the Lab

The next step in this guide to starting your own laboratory business is to determine who will fund your business. If you want to self-fund, you might rely on people you know for capital or take money from your savings or investments.  But you’ll likely want to finance your lab with investor money or by taking out bank loans. Seek expert financial advice while you make the important decision on how to finance your lab.

Getting venture capital from investors involves sharing your business plan and working out the terms of your financial agreement. The potential investors will look through your business plan, so it’s a good idea to create a presentation that includes visuals that highlight why they should invest in your company. And to get a business loan, expect to share your business plan and financial projections for the next five years with banks or other lenders.

4. Secure the Lab Facility

After financing your lab, it’s time to find your facility and get equipment. When looking over your facility options, think of the site location. Choose a location that supports rather than hinders your work. For example, think of how far samples will need to travel to and from your lab and where they need to go.

Another thing to consider is the facility’s size. You want to avoid space that’s too small for your future growth, but you want to balance your space needs with cost.

Also think about your lab’s utilities, including electrical and plumbing needs. Labs need greater electrical capacity than most facilities. And you need to outfit your space for uncommon plumbing fixtures such as handwash sinks, emergency shower stations, and floor drains.

5. Purchase Equipment

Once you have decided on the space, it’s time to purchase lab and office equipment. Think strategically about what you want your lab equipment to accomplish so that you buy equipment with features you’ll use.

Next, find vendors. You could choose to buy new equipment directly from the manufacturer. This way, you’ll benefit from the warranty and service contract. Or you could buy discounted devices from third-party vendors. These sellers often sell products from multiple manufacturers, making it easy for you to compare features and costs.

Ask your vendors to demonstrate equipment. Once you’ve narrowed down your vendor options, negotiate between the vendors so you can get competitive pricing, longer warranties, or better service contracts in case the equipment malfunctions after the warranty expires.

Office equipment includes ergonomically designed chairs and tables. You’ll also need to purchase software to handle things such as billing, reporting, and managing data.

6. Hire Personnel

Follow federal and state employment and labor laws as you create employee benefits, write job descriptions, and draft communication resources like employee handbooks. Using a laboratory consulting firm gives you access to the best candidates for every job position.

You can work with a lab consulting agency to staff your lab at all levels, from technicians to directors. You’ll quickly build a team of professionals that can perform all the duties your lab needs. And moving forward, as your business grows and your staff needs further develop, the agency can help you fill more positions or hire seasonal or traveling employees.

Get Business Support from Lighthouse Lab Services

If you’re starting a medical laboratory business , keep in mind that you’ll also have to address administrative tasks such as credentialing for required state and CLIA certificates and implementation of your standard operating procedures. Fortunately, the industry experts at Lighthouse Lab Services will get your lab going in as little as 90 days using our six-step startup process. No matter where you are in your business journey, contact us today for a free consultation .

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41 Comments

How much does it cost to get all the permits needed in Florida?

Hi Mauricio, thanks for your question. The total cost will depend greatly on the type of testing you’d like to perform and a number of other variables. If you’d like to reach out to us directly at [email protected] , we’d be happy to have an initial free consultation with you.

If there are only normal testing going on for example: LFT,KFT, hemoglobin , CBC, then how much is cost to open a pathology laboratory??

Thanks for your question, Anusha. We’re reaching out to our team for a general estimate and will get back to you once we have a response!

Here is the response from our internal expert: “There are two primary factors: 1. Specimen volume, which impacts equipment and the size of the space 2. The actual physical structure where the lab will be located, as construction can vary dramatically. On average, the startup costs to open a pathology lab could range from $300K to $500K.”

Don’t hesitate to let us know if you have any follow-up questions!

Do you have to be a licensed provider to own a clinical lab?

An owner personally does not have to be a licensed provider to own a clinical lab, however, there are many regulatory and compliance checks you have to complete prior to going live. We’d be happy to walk you through the process in more detail if it’s something you’re considering.

Please can you help me with what it requires to open a laboratory in Libya, Zawiya to be precise.

Hi Azuli! Unfortunately, we only currently assist labs within the U.S. and Canada.

Please can you help me with what it requires to open a laboratory in Camden, New Jersey to be precise.

Thanks for your question, Shamir, and for providing some location information for our team to go off! We’ve passed your email on to our business development team so they can follow up with you directly and provide some initial information. Regulations and necessary certifications can also vary depending on the type of testing and complexity of your lab, so our team will be better equipped to provide you with specifics.

what LIS software do you use or do you recommend any software to manage the samples?

We offer our own LIS solution with Beacon LIS, and you can learn more about its benefits here: https://www.lighthouselabservices.com/lis-software-solutions/ . However, depending on the size and volume of your lab, another LIS may be more beneficial to your lab. Feel free to reach out to us directly if you’d like a free consultation.

What license do you need to open a lab? How about opening lab outside united state? Do I need a PHD?

Hi Naica, thanks for your question. The type of licensure you need to successfully open a lab depends on the state or country you’ll be located in. Typically, the lab owner does not need a PhD to operate a lab, however, you will need individuals who meet certain qualifications in various technical and oversight roles. We currently only assist labs in the US in Canada, so feel free to email us at [email protected] if you’d like to discuss your idea further.

Do you also help in opening a new testing laboratory in environmental testing sector?

Hi Krishna! Could you email us at [email protected] with a few more details so we can better understand the scope of your project? Thanks!

I work for a laboratory now but I want to open my own lab. I do have a doctor who will be helping with an office space. I want to be able to collect blood and urine samples only and have a courier collect or drop them off. what all would I need to do to get this started?

Hi Lisa, that’s great to hear you’re exploring opening your own lab and have already explored office space. We’d be happy to provide a free consultation about what you need to get started and next steps to consider if you’d like to reach out to us at [email protected] and schedule a time to talk!

Which lab equipment do I need to purchase to start my small lab

Hi Nana, thanks for reaching out to us with your question. Equipment needs will vary great, especially for smaller labs, depending on your exact needs. However, here are some baseline items and costs for you to consider. These are just estimates and examples, so please don’t hesitate to follow up with us directly for more accurate estimates.

-Benchtop Chemistry Analyzers – $25,000-$45,000 -Floor-Model Chemistry Analyzers – $40,000-$80,000 -PCR Instrument – $25,000-$125,000 -Automated Extraction – $25,000-$75,000 -LCMS – $120,000-$300,000 -Next-Generation Sequencer – $100,000-$500,000 -Ancillary Equipment – $15,000-$50,000

HI I*M LIVING IN VIRGINIA AND IM SPECIALIST I WANT TO MAKE SPECIAL LAB WHAT TYPE OF OFFICIAL CERTIFICATES REGULATORY BODIES DI I NEED IM LIVING IN FAIRFAX COUNTY

Hi! Thanks for reaching out to us. We’ll need to know more about the specifics of the lab you’d like to start to accurately answer your question. Someone from our team will be reaching out to you shortly at your email address.

Is there any opportunity to open a Quest Franchise in US? How much it costs ?

Thanks for you question. Unfortunately we do not have a business relationship with Quest and can’t help you open a franchise with them. For more information on that, you would have to reach out to them directly. However, can assist lab start-ups of any kind if you’re interested in opening your own laboratory business. Feel free to reach out to us directly if you’d like to learn more or schedule a free consultation!

Hello I am 75 years old , working as a lab supervisor in New York and Illinois I would like to continuing working at the lab but is not easy due to my age , can you help me ? Do you know any company where I can applied ?

Hi Yolanda,

We may be able to help you, depending on your qualifications and our current openings! Feel free to send a resume along with any other relevant info about yourself to [email protected] and someone with our team will connect with you.

are the requirements for a non-medical lab the same as a medical lab?

Thanks for your question. Requirements for scientific vs medical labs have some overlap, but in general, there are numerous differences depending on the type of testing you’re performing and the state you’re doing it in. We primarily assist medical/clinical labs, so if you have any questions with regard to starting that type of lab, don’t hesitate to follow up with us!

Hey, I am a phlebotomist/lab assistant. I have been working in lab for 9 years and now I’m looking to open my own lab. I want to offer some urine and blood testing services, respiratory testing, and some clia waived test. What all will I need to get started?

Hi Ladinah! A lot of what you’ll need will depend on the state(s) you’re planning to operate your lab in. If you’d like to reach out to us by emailing [email protected] with that additional information, we can connect you with someone who can give you a better idea of the scope and requirements for your potential lab!

Coming from primary care as a cma, my clinic has a lab and uses quest and lab pro how can I use these companies for my own lab?

Thanks for the question. Are you wondering about using Quest as a potential reference laboratory? We also likely have solutions for your lab if there’s a specific area of need you have! If you’d like to provide a bit more background, we’d be happy to connect you with a rep from our Business Development Team for a free consultation.

Hi there, What is the procedure and eligibility for acquiring a medical laboratory license and operating a medical laboratory company for a specimen collection center in Ontario?

Hi Emmanuel, our Business Development Team would be happy to speak with you about the steps for establishing a medical lab in Ohio. Since there are different rules depending on the complexity of testing you’ll be performing, I want to connect you with an expert instead of laying out general requirements. You can reach out to us directly at [email protected] , or you can let me know if you’d like for me to set up a free exploratory meeting.

Can you help open my own mobile phlebotomy? Would I still need license equipment ? Can I just draw an spin blood and ship out or ask a courier to pick samples?

Hi Belinda, we can definitely assist with opening a mobile phlebotomy service or lab. Even if you won’t be testing samples on-site, you will still need some certification and licensing depending on the state(s) you plan to operate in. If you’d like to email us with some more information we would be happy to schedule a free consultation! You can reach out to [email protected] .

What insurance companies would a start up lab in Florida want to credential with if they want to go after primary care offices

Hi EJ, thanks for reaching out to us with your question. That question would be best answered by our payer strategy team after they have a sense of the type of testing you’re looking to perform, volume, and complexity. If you want to provide some initial details to us at [email protected] , we can get you scheduled for a free consultation to get a better sense of the best payers to target.

Do I have to get a collection certification if I’m a licensed MLT and have worked in hospitals collection urine specimen and running waived drug tests to open my own drug lab

In many states, yes, you will still need that certification! If you’d like to reach out to our recruiting team by emailing [email protected] , you can provide more details and they will be able to better guide you.

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How to Start a Laboratory Business from Scratch

9/30/2020 | 16 Likes | Verticals & Applications , Casework , Chemical Resistant , Cleanroom , ESD Environments , Healthcare , IT & Computers , Monitoring Applications , Pharmaceuticals , Sample Processing , Tech Lab , Wet Lab ,

What can you do to make your new laboratory startup venture a success? We take a look at the top 10 questions everyone should ask themselves before green-lighting a new laboratory venture.

1. What is the Business Case for Your New Laboratory Startup?

Take the time to create a detailed business plan upfront — one that addresses the difficult questions — before expending scarce financial and human resources .

A good place to start is by researching the market demand and identifying the business case for your new venture.

Here are a couple of business case examples – but yours will need to be more detailed, backed up by solid technical and market research.

• To take advantage of new research/testing opportunities, such as those created by the Covid pandemic.
• Use new lab technologies to serve unmet demand in the market by out-competing/displacing other laboratories relying on older technology.

2. Who Needs Your Laboratory Services, e.g. Who is the Customer?

The next step in creating a solid laboratory business plan is to identify “ who is the customer? ”

In reality, there are often multiple answers to this question, so perhaps we should rephrase the question as “ who are the stakeholders? ”

Startup laboratories will need to identify what products and services they are offering to prospective customers in the market place.

But they will also need to treat their investors (e.g. the angel and VC firms making substantial upfront investments) as key stakeholders by delivering on the promises they have made in terms of project milestones and product and service deliveries.

3. What is the Funding Model and Return on Investment (ROI) for Your New Laboratory Project?

In normal times, commercial laboratories with a recurring revenue stream would find answering questions about funding sources and return on investment (ROI) to be fairly straightforward.

However, we don’t live in normal times right now.

The current Covid pandemic has shifted demand across many sectors of the economy, including the lab sector, which makes these economic models and investment calculations more difficult.

For example, demand for clinical healthcare testing (including Covid virus and vaccine trials testing) is up, while demand in other areas (such as petroleum well testing) is down.

This puts additional pressure on lab startups to identify viable funding sources to support the business after the initial funding runs out — by signing long-term customer contracts, obtaining multi-phase government research grants, or pursuing direct sales opportunities, such as direct sales of home testing kits sold to consumers over the internet.

It also puts greater pressure on controlling costs and justifying expenditures.

Fortunately, there are clever, cost-effective solutions available, such as efficient storage and flexible furniture options (such as mobile carts) that can help you get the most use out of your available square footage — while maximizing ROI at the same time.

Some lab startups may also benefit from taking advantage of local startup accelerators, which offer shared workspaces during the early venture stages.

4. Which Regulatory Regimes will Govern Your Laboratory Operations?

Every business is subject to some form of federal, state, or local regulations.

Broadly speaking, most of these regulations have to do with public safety; for example, does your facility meet fire regulations? Is it structurally sound? Are there enough emergency exits? etc.

In contrast, laboratory facilities tend to be highly regulated, often falling under one or more regulatory regimes that are either mandated by government agencies or set forth by industry trade groups that issue “certifications.”

The intended use of your laboratory will determine which sets of regulations or certification guidelines apply.

For example, laboratories designed for pharmaceutical or food manufacturing testing will need to comply with the FDA’s Current Good Manufacturing Practice (cGMP) regulations.

Laboratories designed to handle potentially dangerous materials are subject to even more stringent regulations. Facilities handling radioactive materials must comply with the Department of Energy regulations, while labs handling potentially dangerous biological pathogens fall under CDC biosafety regulations, which classify labs according to four biosafety levels, BSL-1 through BSL-4.

(Only a few laboratories around the world qualify for the BSL-4 rating, designated for handling the most dangerous pathogens. These labs must incorporate highly redundant safety systems, including isolated clean room chambers where lab personnel wear special PPE, such as “spacesuit” type protective garments.)

5. What Kind of Lab Facilities Do You Need to Achieve Your Goals?

Now that we’ve identified the business case, the customer, the funding sources, and the regulatory regimes that govern your new laboratory startup, it’s time for the facility project managers to begin working with the architects and designers to develop a list of “architectural programming requirements“ for the new laboratory.

One useful piece of advice: avoid “reinventing the wheel.”

There are many well-documented laboratory designs that can provide inspiration for your projects. Evaluate as many as you can to identify what would work for you and what you’d like to do differently.

Another useful resource is the publication Forensic Science Laboratories: Handbook for Facility Planning, Design, Construction, and Relocation , published by the National Institute of Standards and Technology (NIST). While (as the title suggests) its focus is forensic science laboratories, it clearly documents a set of best practices for managing laboratory construction projects.

From a design perspective, laboratory facilities generally include one or more of these components:

In the language of laboratory design, wet labs are the areas that handle liquid chemicals. Designers need to pay particular attention to specifying chemically resistant surfaces, a sufficient number of wet sinks (often with their own special waste handling drainage system), as well as fume hoods to protect workers from potential exposure to noxious gases or dangerous particulates.

Dry Labs / Tech Labs

The term “dry lab” traditionally refers to laboratory zones that handle dry chemicals in small amounts.

Thanks to the revolution in scientific computing, however, the role of dry labs has expanded tremendously over the past few decades to incorporate computer systems as well. This has led to the rise of the “ tech lab ,” where lab researchers access and manage computer workstations or provide IT services to the organization. The computer systems can be a major source of heat, so these areas will usually need beefed up HVAC systems. Redundant power systems (such as backup generators or batteries) are also typically required.

Laboratory Clean Rooms

An increasing number of laboratories, such as those supporting the manufacture of printing microelectronics onto silicon wafers, require the use of cleanrooms to prevent microparticles from contaminating surfaces or to protect lab personnel from dangerous pathogens.

Electronics Labs

Microelectronics can be damaged by even small amounts of electricity, such as static shocks. Laboratories engaged in prototyping and testing electronic equipment need to be equipped with anti-electrostatic discharge (ESD) systems to prevent inadvertent damage to electronic equipment.

6. How Will Your Laboratory Needs Change Over the Next 10 Years?

Predicting the future is always difficult, but if we were to make one forecast, it would be that change is inevitable.

Laboratory equipment is changing year-by-year, experimental methods are evolving rapidly, and computer-based scientific discovery methods are becoming one of the dominant forces in laboratory science.

So, given that change is inevitable, what can you do today when designing your laboratory to prevent it from becoming obsolete in 10 years?

The answer is to design in flexibility so that you can make changes over time without having to endure the interruptions caused by extensive renovation projects.

It’s this need for flexibility that is driving many laboratory customers toward specifying modular furniture solutions for their new lab projects. Unlike traditional casework installations, modular laboratories are built out of standardized components (including wet sink installations, fume hoods, workbenches, storage units, etc.) that can be installed on-site using ordinary hand tools.

As your needs change in the future, the task of rearranging the modules to meet your current requirements is greatly simplified. If you need to expand, you simply contact the factory (e.g. Formaspace) to order additional matching components to complete your lab expansion project.  And, if you need to move, you can also easily disassemble and move the entire laboratory furniture set up to a new location without losing your initial investment.

7. What’s the Best Approach for Choosing a Lab Location?

The high cost of laboratory real estate, particularly in the so-called science clusters (located in the Boston and  New York regions on the East Coast and the San Francisco Bay Area and San Diego on the West Coast), can be a determining factor when deciding where to locate your new lab startup.

In a departure from past practices, many new lab operations are opening in facilities originally designed for other purposes, such as underutilized retail locations, which can be leased at a relative discount compared to facilities that were originally purpose-built for laboratory operations.

If you’re evaluating the potential of converting an existing space into a lab facility, we recommend looking at our patented FabWall system. The modular FabWall system bolts securely into the floor, allowing you to divide open spaces into functional areas quickly and efficiently. Simply attach modular elements (such as wet sinks, workbenches, fume hood, and the like) directly to the FabWall.

The use of mobile lab furniture is another trend that facilitates the quick conversion of open spaces not originally designed for laboratory use.

Entire spaces can be kitted out quickly with workstations mounted on heavy-duty industrial-strength casters. Each workstation can support its own storage systems, shelving, as well as built-in electrical and networking connections.

8. How Can You Assure Laboratory Safety, Security, and Sustainability?

Safety first is the right mantra for laboratory design.

Here, details matter.

Double-check all safety requirements and make sure you are in compliance.

Questions you should ask yourself include: Are the fume hoods sized appropriately to protect lab workers? Are there a sufficient number of eyewash stations and first aid kits available? Is access to PPE well-thought-out – to encourage proper use? Is there adequate storage for potentially dangerous chemicals or fragile scientific equipment? Have you provided easily accessible drying racks for highly breakable glassware?

In many cases, specifying mobile storage carts can help prevent accidents when transporting heavy equipment; these can also make it easier to safely transport equipment in need of maintenance or service away from heavily trafficked areas to a dedicated service bay.

Protecting personnel from the Covid-19 virus is also another important consideration. Are lab workbenches spaced far enough apart to encourage social distancing? Are lab employees protected from one another by the use of transparent shields when they need to work in close quarters? Is the HVAC system designed to provide enhanced ventilation, ideally pulling air up and out of the facility rather than pushing it down toward the floor? Can you offer outdoor work areas for employees to conduct some of their work activities outside as well as provide pleasant outdoor areas for taking breaks and eating meals?

Greater emphasis is also being placed on lab security, especially given recent reports of foreign espionage directed at pharmaceutical research labs developing Coronavirus vaccines. Are your computer system sufficiently isolated and protected? Also, given that more employees will be accessing the outdoors, does the facility’s security perimeter policy take this into account?

Sustainability is another major concern in laboratory design. As we mentioned earlier, modular furniture designs can be reconfigured without difficulty, even moved to new locations if needed. This not only protects your original investment, it can also help you accrue LEED credits when performing future renovations or moving to a new facility.

Laboratory energy use is another important sustainability issue, especially given that most laboratories use energy at a greater rate than comparable office buildings (due to higher airflow requirements from fume hoods or cleanroom installations). Reducing energy use in laboratories remains a challenge, but new designs are showing it is possible, by increasing natural ventilation or redesigning the airflow in cleanroom installations for greater efficiency.

9. Will You be Able to Attract and Retain Lab Expertise/Talent?

The ability to attract and retain talent is a major concern for all companies, and laboratory facilities are no exception.

There’s a simple test you can take:  Would you want to work in the new laboratory you’re planning?

Does your design provide enough of the in-demand features that today’s employees are looking for, including open sightlines, plenty of natural light, good noise control to prevent distractions, even some connection to the outside world, such as green plants or other natural elements?

Are you providing enough amenities to retain today’s workers? Keep in mind that wellness on-the-job is important these days, and offering a comfortable, ergonomic workspace is as good for you as it is for your employees. Formaspace can help you specify lab seating that is both easy to clean and maintain in lab conditions but also provides workers with enhanced back support as well as the ability to change positions throughout the day. That’s also a feature that’s available in Formaspace desks, tables, and workstations. Our optional sit-to-stand furniture allows employees to change from working in a seated position to a standing position throughout the day for increased blood circulation and reduced fatigue.

10. Where Can You Find the Right Laboratory Partners?

This brings us to our final question to ask when you are making plans to launch a new laboratory facility.

Where can you find the right laboratory partners who can share their experience?

One approach is to join one or more lab trade associations that represent your industry sector and speak to other members about whom they can recommend as reliable partners to work with.

It’s these kinds of word-of-mouth recommendations that may lead you to Formaspace.

Formaspace stands ready to help make your new lab project venture a success. We build all our lab furniture here in Austin, Texas, at our factory headquarters, using locally produced steel and other American-made raw materials.

We have built furniture systems for hundreds of laboratories nation-wide; our client list includes Abbot Laboratories, Amgen, Baxter, Bayer, GlaxoSmithKline, Johnson&Johnson, Merck & Co., Novartis, Pfizer, Roche, and Quest Diagnostics Inc.

Formaspace is also a great resource to turn to when you have questions about laboratory design. Our Design Consultants are standing by to answer any questions you have. We can also provide full-service assistance in designing your next laboratory project – even it’s your first one.

Will your project be next? We hope so.

Take the next step.

Talk to your Formaspace Design Consultant today and see how we can partner with you to make your next lab project a success.

How to Start a Profitable Laboratory Testing Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a laboratory testing business plan., 3. develop a laboratory testing brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for laboratory testing., 6. open a business bank account and secure funding as needed., 7. set pricing for laboratory testing services., 8. acquire laboratory testing equipment and supplies., 9. obtain business insurance for laboratory testing, if required., 10. begin marketing your laboratory testing services., 11. expand your laboratory testing business..

Starting a laboratory testing business requires a comprehensive understanding of the market dynamics. It's crucial to assess the demand for testing services, identify potential competitors, and understand customer needs. Here's how you can perform an effective market analysis:

• Research your target market to determine the size, growth trends, and demographic characteristics of potential clients.
• Analyze competitors by looking at their market share, strengths, and weaknesses to identify gaps in the market.
• Explore industry trends, such as regulatory changes or technological advancements, which can create new opportunities or challenges.
• Understand customer requirements by engaging with potential clients or conducting surveys to gather feedback on their needs and preferences.
• Assess the pricing strategies used by existing laboratories to establish a competitive yet profitable pricing model for your services.
• Identify potential barriers to entry, like high initial investments or stringent regulatory requirements, to prepare a risk mitigation strategy.

Are Laboratory Testing businesses profitable?

Yes, laboratory testing businesses can be very profitable. The size and scope of the laboratory business will determine how profitable it can be. Factors such as location, services offered, and the number of clients serviced may also affect the profitability of the business.

Starting a laboratory testing business requires careful planning and a well-thought-out strategy. A robust business plan is crucial for outlining your business goals, securing financing, and guiding your operations. Here’s a guide to drafting your laboratory testing business plan:

• Executive Summary: Begin with a concise overview of your business, including your mission statement, the testing services you will offer, and your target market.
• Market Analysis: Research your industry, identify your competitors, and understand your potential customers. Highlight the demand for laboratory testing services in your chosen niche.
• Organization and Management: Outline your business structure, detail the experience of your management team, and describe the operational workflow of your lab.
• Services Offered: Clearly define the types of tests and services you will provide, along with any unique selling propositions (USPs) or specialized capabilities.
• Marketing and Sales Strategy: Explain how you will attract and retain clients, including your marketing channels, sales tactics, and pricing strategy.
• Funding Request: If applicable, specify the amount of funding needed to start and expand your operations, detailing how the funds will be used.
• Financial Projections: Provide an estimate of your financial outlook for the next few years, including projected income statements, balance sheets, and cash flow statements.

How does a Laboratory Testing business make money?

A laboratory testing business can make money by charging a fee for each test it performs. The fees charged can vary depending on the type of test and the complexity of the test. The laboratory may also offer consulting services or laboratory equipment for an additional fee. Additionally, the laboratory may receive grant funding or other forms of financial support from government agencies or private entities to help cover costs.

Creating a strong brand for your laboratory testing business is crucial as it helps to establish credibility and attract customers. Your brand should communicate your company's values, expertise, and differentiate you from competitors. Follow these steps to develop a compelling laboratory testing brand:

• Identify Your Unique Value Proposition: Determine what sets your lab apart, whether it's specialized services, cutting-edge technology, or exceptional customer service.
• Choose a Memorable Name: Select a name that is relevant to your services, easy to remember, and resonates with your target audience.
• Design a Professional Logo: Your logo should be distinctive and convey your brand's essence. Consider hiring a professional designer to ensure quality.
• Create a Consistent Visual Identity: Use a cohesive color scheme, typography, and imagery across all marketing materials to reinforce your brand identity.
• Develop a Brand Voice: Decide on the tone and language that reflect your brand's personality, whether it's authoritative, friendly, or informative, and use it consistently in all communications.
• Launch a Website: Establish an online presence with a professional website that provides information about your services, qualifications, and how clients can contact you.
• Engage in Marketing: Utilize online and offline marketing strategies to promote your brand and reach your target audience effectively.

How to come up with a name for your Laboratory Testing business?

When coming up with a name for your Laboratory Testing business, it is important to choose one that is memorable and easy to pronounce. Consider incorporating words like “lab”, “testing”, “analytics”, or “solutions” into your business name to indicate the type of services you offer. Additionally, you may want to include words that reflect the values that are important to you, such as “reliable”, “accurate”, or “innovative”. Finally, it’s a good idea to run a search on the internet to make sure the name isn’t already taken.

Starting a laboratory testing business requires not only expertise in the field but also ensuring that the business is legally recognized. Formalizing your business registration is a critical step to establish your lab's legitimacy and to comply with local, state, and federal regulations. Below are the key bullet points to guide you through this process:

• Choose a business structure: Decide whether your lab will be a sole proprietorship, partnership, LLC, or corporation. Each structure has different legal, tax, and financial implications.
• Register your business name: If your business name is different from your own, you'll need to register a 'Doing Business As' (DBA) name.
• Obtain an Employer Identification Number (EIN): Apply for an EIN via the IRS website. This number is necessary for tax purposes and to open a business bank account.
• Apply for licenses and permits: You'll need to obtain the necessary licenses and permits specific to laboratory operations, which can vary by location and type of testing.
• Register for state taxes: Depending on your location, register your business with your state's taxation department to handle sales tax, income tax, and other state taxes.
• Comply with OSHA regulations: Ensure your lab meets Occupational Safety and Health Administration (OSHA) requirements to protect the well-being of your employees.

Resources to help get you started:

Explore vital publications, industry reports, and newsletters providing laboratory testing entrepreneurs with insights on market trends, operational best practices, and strategic business growth advice:

• CLIA Lab Navigator : A comprehensive guide and database for navigating the complexities of the Clinical Laboratory Improvement Amendments (CLIA) certification and lab setup. No direct link provided.
• Lab Manager Magazine : Offers articles, webinars, and product news to help laboratory professionals manage their operations more effectively. Available at: https://www.labmanager.com/
• Dark Daily : An electronic resource featuring breaking news and trends in laboratory and diagnostics, including operational strategies for profitability. Visit: https://www.darkdaily.com/
• The Journal of mHealth : Provides insights into technological advancements, market trends, and regulatory changes affecting the mobile health sector, relevant for labs involved in digital health. Check out: https://www.thejournalofmhealth.com/
• Bioinformatics Review : Offers information on the latest tools and techniques in bioinformatics, crucial for labs engaged in genetic and molecular testing. For more information, go to: https://bioinformaticsreview.com/
• Medical Laboratory Observer : Provides clinical lab professionals with peer-reviewed articles, product news, and industry reports to enhance lab services. Access at: https://www.mlo-online.com/

Starting a laboratory testing business requires adherence to various regulations to ensure safety, quality, and compliance. The process of acquiring necessary licenses and permits can be intricate, depending on your location and the types of tests you'll offer. Here are the steps you should follow to obtain the proper documentation:

• Determine the specific regulations that apply to your type of laboratory by consulting with local, state, and federal health departments.
• Apply for a business license with your city or county clerk's office to legally operate in your area.
• Contact the state's Department of Health or similar regulatory body to apply for a clinical laboratory license if conducting medical or diagnostic testing.
• For specialized testing, such as environmental or food testing, obtain the necessary permits from the Environmental Protection Agency (EPA) or the Food and Drug Administration (FDA).
• Ensure compliance with the Clinical Laboratory Improvement Amendments (CLIA) by applying for certification if your lab will be processing human specimens for health assessment or diagnosis.
• Consider obtaining accreditation from professional organizations, such as the College of American Pathologists (CAP) or the American Association for Laboratory Accreditation (A2LA), for credibility and quality assurance.

What licenses and permits are needed to run a laboratory testing business?

Licenses and permits required to operate a laboratory testing business may vary depending on the jurisdiction and type of business, but generally include a business license, laboratory permit or certification, occupational safety permits, and any necessary special permits or certifications for specific types of tests. You will also need to become certified or registered with the state and federal agencies that regulate the specific type of testing you will be providing (e.g., water quality testing). Depending on your location and the nature of your business, other permits may also be required.

Establishing a solid financial foundation is crucial for the successful launch of your laboratory testing business. Opening a business bank account will help you manage your finances effectively, while securing funding will enable you to cover startup costs and maintain operations. Follow these steps to navigate this phase of your business setup:

• Research banks that offer business banking services and compare their account options, fees, and perks. Choose a bank that aligns with your business needs and offers beneficial services such as online banking and low transaction fees.
• Prepare the necessary documentation, such as your business license, EIN, ownership agreements, and personal identification, to open a business bank account.
• Consider your funding needs and create a comprehensive business plan that clearly outlines your financial projections and funding requirements.
• Explore different funding options such as small business loans, investors, grants, and crowdfunding platforms to find the best fit for your laboratory testing business.
• Apply for funding with a well-prepared pitch or proposal that highlights the potential profitability and growth of your business within the laboratory testing industry.
• Once funding is secured, manage your finances diligently, keeping business and personal expenses separate, and regularly review your financial statements to ensure you remain on track.

Setting the right prices for your laboratory testing services is crucial to ensure business viability while remaining competitive. Careful consideration of various factors will help you arrive at a pricing strategy that reflects the value of your services and covers operational costs. Follow these guidelines:

• Analyze Costs: Determine all costs involved in performing each test, including equipment, supplies, labor, maintenance, and overhead expenses.
• Market Research: Investigate competitor pricing to understand where your services fit within the current market landscape.
• Value-Based Pricing: Consider the value your services provide to customers, such as faster turnaround times or higher accuracy, and price accordingly.
• Volume Discounts: Offer discounts for high-volume customers to encourage bulk orders and repeat business.
• Dynamic Pricing: Be prepared to adjust prices as market conditions, technology, and cost structures change.
• Regulatory Compliance: Ensure your pricing complies with any applicable laws or regulations in your region.
• Transparent Billing: Provide clear and itemized billing to maintain trust and avoid confusion with clients.

What does it cost to start a Laboratory Testing business?

Initiating a laboratory testing business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $172000 for launching such an business. Please note, not all of these costs may be necessary to start up your laboratory testing business.

Establishing a laboratory testing business requires careful selection of equipment and supplies to ensure accurate and reliable results. The equipment you purchase should meet industry standards and be suitable for the types of tests you plan to conduct. Here are some important steps to guide you in acquiring the right laboratory testing equipment and supplies:

• Identify the types of tests your laboratory will perform and the equipment required for these tests, such as microscopes, centrifuges, spectrophotometers, and chromatography systems.
• Consider purchasing both new and certified pre-owned equipment to balance cost and quality. Pre-owned equipment can be cost-effective, provided it is from a reputable supplier and comes with a warranty.
• Choose suppliers with good after-sales support and maintenance services to ensure ongoing reliability and accuracy of your equipment.
• Stock up on consumables like reagents, test tubes, pipettes, gloves, and other items that will need regular replenishment.
• Invest in calibration standards and quality control samples to validate your equipment and keep it running accurately.
• Ensure that your laboratory complies with all required safety equipment, including fume hoods, biosafety cabinets, fire extinguishers, and personal protective equipment.

List of Software, Tools and Supplies Needed to Start a Laboratory Testing Business:

• Computers, software and printers
• Testing and measuring equipment
• Laboratory safety equipment
• Equipment maintenance, calibration and testing supplies
• Laboratory consumables and supplies
• Data storage and analysis software
• Laboratory furniture and fixtures
• Quality assurance and control software and systems
• Laboratory software and communications systems
• Laboratory security systems

Securing the right business insurance is a crucial step in protecting your laboratory testing venture against unforeseen risks. It not only safeguards your financial stability but also provides peace of mind as you focus on growing your business. Here are several types of insurance you might consider:

• General Liability Insurance: Covers injuries or property damage caused by your business operations.
• Professional Liability Insurance (Errors and Omissions): Protects against claims of negligence or harm due to professional services or advice.
• Property Insurance: Insures your laboratory equipment and premises against damage from fires, theft, and other disasters.
• Workers' Compensation Insurance: Provides benefits to employees who suffer work-related injuries or illnesses.
• Product Liability Insurance: Covers damages related to products you've tested, should they cause harm post-release.
• Business Interruption Insurance: Compensates for lost income and pays for operating expenses if your business is temporarily halted.
• Data Breach Insurance: Protects against losses resulting from breaches of sensitive data, which is critical for labs handling confidential information.

Consult with an insurance agent who specializes in scientific or medical fields to tailor a policy that fits the unique aspects of your laboratory testing business.

Launching a marketing campaign for your laboratory testing services is crucial for establishing your presence in the market and attracting clients. A well-planned strategy will not only raise awareness of your services but also build trust with potential customers. Below are some key steps to promote your lab effectively:

• Develop a Strong Brand: Create a professional logo and consistent branding materials that reflect the quality and reliability of your services.
• Build a Professional Website: Ensure your website is informative, easy to navigate, and includes clear calls to action for potential clients to get in touch or request services.
• Utilize SEO: Optimize your website for search engines to increase visibility for those looking for laboratory testing services online.
• Engage on Social Media: Use platforms relevant to your target audience to share informative content, news, and updates about your services.
• Network with Industry Professionals: Attend conferences, workshops, and networking events to build relationships with potential clients and referral sources.
• Offer Promotions: Introduce your services with special promotions or discounts to encourage first-time clients to choose your lab.
• Invest in Advertising: Consider paid advertising in industry publications, online platforms, or local media to reach a broader audience.

Expanding your laboratory testing business is crucial for long-term success and sustainability. Whether you're looking to offer new services, reach more clients, or improve efficiency, growth strategies must be thoughtfully planned and executed. Here are some actionable steps to help you scale up your laboratory testing enterprise:

• Diversify Testing Services: Introduce new tests and services to meet emerging market needs and attract a broader client base.
• Invest in Technology: Upgrade to advanced testing equipment and software to increase capacity, improve accuracy, and reduce turnaround times.
• Enhance Marketing Efforts: Boost your online presence, attend industry conferences, and engage in networking to promote your services.
• Build Partnerships: Form strategic alliances with other healthcare providers, research institutions, and businesses to expand your reach.
• Train and Hire Staff: Ensure your team has the expertise to support new services by providing training or hiring additional specialized personnel.
• Seek Accreditation: Obtain certifications from relevant bodies to enhance credibility and meet regulatory requirements.
• Explore Geographic Expansion: Open new locations or offer remote services to access untapped markets.

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"I am a startup online bakery in California. Trying to navigate the nutritional labeling world and requirements was daunting. I did not know the first thing about getting nutritional labels done for my products. I was beyond grateful when I found RL Food Testing Laboratory. I do not know what I would have done without there incredible help, knowledge and professionalism. They were kind and patient with all of my questions and help needed. Something not common in todays market place is an actual phone call. I can speak to anyone if I have questions. They are also very fast in returning emails. The end product looks fantastic and I have peace of mind these were done correctly and their rates are exceptional. They also email important information and changes coming. I appreciate this!! I have had multiple labels done and I would not trust this to anyone else. Thank you all at RL Food Testing Laboratory."

"We started our company with nothing more than a few great recipes, business experience, an optimistic outlook, but we had absolutely NO KNOWLEDGE of the food industry. Many calls were made and R.L. was the only one who returned my call in less than 24 hours. RL not only has made what others in the industry have described to us as a very difficult process simplified and easy, but also something we could afford as well. Their friendly team goes above and beyond what we ask as well as pay for. As our favorite R.L. team member Maria says, "We are here to grow with you!" R.L. is fast, reliable, well priced, always available, and completely dedicated to your companies needs. We are truly grateful for this company and more importantly their team!"

"Working with Maria and the entire team at RL has been a genuine pleasure. We've worked them for a few years now, and have received nothing but the best quality service, professionalism, and results. I've recommended RL to several other small business owners and will continue to do so in the future. Using RL makes us feel like we're using our money wisely, we feel valued as people, and we can't recommend them enough."

"For the past 5 years, Cinnaholic has partnered with RL Food Testing Laboratory to ensure our compliance with the FDA nutrition labeling guidelines. The process is easy and our main point of contact, Maria, is quick to respond and provide assistance as needed. The team at RL Food Testing Laboratory completes requests in a timely manner and proactively assists in managing label requirement updates. These are just a few highlights of why we're thankful for our partnership!"

"We have worked with RL Food Testing Laboratory team on a few client’s nutrition and ingredients labels and the team was very helpful and supportive. We also work with them on our all-natural nutrition and ingredient label which we thought was going to be a nightmare but Maria was very knowledgeable and everything turn out great."

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Food safety testing – All you need to know

Food safety testing is a scientific-based method that evaluates the safety of food based on microbiological, physical, ...

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• Food safety testing is a scientific-based method that evaluates the safety of food based on microbiological, physical, or chemical composition.
• Food safety testing must be accurate, specific, reproducible, established, and cost-effective.
• Proper food safety testing contributes as a solution to the growing demand for safe food and sustainability of supply all over the world.

Risking food safety can cost lives. Every year, countries all over the world suffer from economic losses due to food safety problems. It has been estimated that low to middle-income countries suffers at least $100 billion in losses per year as a result of foodborne illnesses. The importance of having access to a clean, safe, and sustainable food supply is a necessity for humans. To preserve the safety of the food supply, the food industry has established a set of food safety testing procedures.

The fact that no one can survive without proper nutrition shows how important access to safe food is. For everyday consumers, there is no way of telling if a product is safe other than through sensory or physical analysis. So how would they know if the food they are eating is safe? This point is where the role of food businesses in ensuring food safety comes in. As part of the human right to adequate food, every food industry body is mandated to ensure the safety of the public through food safety.

Learn what types of food safety testing do a food product must go through before reaching households in this article and get to know the best way t manage your food safety testing results.

Why is food safety testing important?

When we talk about any foodborne disease , the first factor that comes to mind is contamination by disease-causing microorganisms such as viruses, parasites, bacteria, and molds. In reality, chemical substances, as well as physical articles, can cause foodborne diseases or related injuries. 

To detect these hazards respective food safety testing procedures are used. Through these scientific methods, food businesses ensure and verify that their products are free from food hazards that can harm public health. Food safety testing programs are also part of the solution to achieve global harmonization of food safety and security and to address the enormous demand for safe food all over the world. With proper food safety testing and quality assurance, food loss and production of unsafe food are minimized along with the other challenges of foodborne illnesses.

Food safety testing can also be used to evaluate foods that have been altered to withstand drastic conditions. Results from such tests can be used to inform and educate the public about the safety or dangers of such foods.

What is the goal of food safety testing?

The main goal of conducting food safety testing is to analyze food products and determine if they are safe for consumption. Testings support the claim of food businesses regarding their compliance with food safety regulations and laws and that their operations are up to food safety standards. These activities are essential in providing the best and safest consumption experience and ensuring food quality. The requirements for conducting food safety testing highlight the importance of food safety .

Food safety testing procedures are the responsibilities of food handlers and food manufacturers. Every food business is mandated to conduct particular food safety testing and to have a food safety testing lab to achieve the following specific goals:

Safety and prevention of illnesses

As mentioned, food safety testings evaluate food products for their safety. Procedures for detecting whether the correct doneness of the food was achieved can be backed up by further testing. Such testing can be done by acquiring samples or a food ingredient from the processed batch and testing them for the presence of target microorganisms. The results from these evaluations can be used as a basis for whether to release products to market safely. Food safety testings are specific, precise, and reproducible. Therefore, credible food safety testing procedures can be used on an honest basis.

Inform consumers

Perhaps the best example for the function of food safety testing as a form of educating everyday consumers is the case of genetically modified foods (GMO). As an answer to the never-ending concerns of consumers regarding GMOs, the FDA has concluded that all genetically modified food products require special safety testing and food safety testing laboratories. Through proper food safety testing, newly developed consumer products can be evaluated before their release in the market to reduce consumer exposure and preserve their safety. Results from such evaluations are commonly peer-reviewed to ensure accuracy.

Sustainability

Scientific food safety testing methods are part of the answer to sustainability and the growing food demand. By ensuring that the produced foods are safe, losses are reduced and the consistent production of food can keep up with the growing food demand. To achieve a sustainable future, the complementing features of food safety and security must be thoroughly emphasized. 

Increased productivity

In relation to sustainability, the lack of foodborne illnesses also ensures that all members of the community can perform their tasks without interruptions. Foodborne illnesses contribute to the major factors that use up medical services and lower service in any industry. Food safety testing provides an accurate basis to ensure the safety of all members of the community.

All of these goals are only achievable if food safety testing is conducted consistently with precision and accuracy.  As such, the importance of regularly updating the results as a response to potential changes must be emphasized for all food industry segments. To ensure that the results of your food safety testing are always organized and updated, use digital solutions offered by FoodDocs. We will explain more later in this article. 

What are the main types of food safety testing?

Food safety testings normally deal with the chemical composition of food, the presence of pathogens, the physical properties of food, and the potential presence of unwanted and potentially unsafe ingredients or adulterants. Established and respective testing methods are available for each target concern such as traditional agar methods for detecting the presence of unwanted microbial growth. Proper identification of the presence of potential hazards is part of a comprehensive HACCP plan and food safety management system. The correct execution of accurate testing methods is essential to achieve this goal and requires testing experience.

Here are some of the most common food safety testing conducted in food safety labs:

Microbiological testing

A wide variety of pathogenic microorganisms or those that can cause foodborne illnesses are the primary sources of food problems. Some pathogens can manifest signs of spoilage in foods, whereas some can be undetectable unless with a food safety test. Some of the common foodborne illness-causing pathogens include:

• Escherichia coli  (causes traveler's diarrhea)
• Staphylococcus aureus

This type of food safety testing takes time but is accurate and is often used as a solid basis for food safety. Each foodborne pathogen has its microbiological testing protocol but all methods involve acquiring a sample of food from each batch and testing for the presence of the target foodborne pathogen. The presence of pathogenic microorganisms can be an indication of inadequate or inappropriate processing, problems with raw materials, damaged packaging, or inappropriate storage temperature for storage.

Alternatively, swab testing is also conducted to test for the level of sanitation on food contact materials and surfaces such as tables, conveyor belts, and plastic crates for storage. More advanced food testing laboratories also offer DNA-based tests which yield instant results when compared with traditional agar-based methods.

Chemical testing

This type of testing is commonly used to detect problems such as the presence of adulterants, excessive cleaning agents, or even indications of processing abuse in the form of chemical by-products. Chemical tests can also be used to establish standard processing operations by determining if unsafe byproducts are produced within certain ranges of parameters. Examples of chemical tests that are common in various food industry segments include:

• Trace element or contamination detection
• Food safety testing kits for the presence of sanitizing agents on food contact materials and surfaces
• Detection of pesticide residues
• Chemical property tests such as proper acidity levels in canned foods

Although not very obvious, food safety testing can also include nutritional analyses of foods. This type of testing involves an approximation of the nutritional composition of a product which includes fat, protein, carbohydrates, caloric value, and other major compositions. This analysis can be considered chemical testing but is more commonly used for labeling requirements.

Physical testing

The presence of filth, sharp objects, and insect parts are all considered physical contaminants and are potential carriers of foodborne illnesses and related injuries. Food safety testing involved in this type of analysis can include the use of machines such as metal detectors or x-rays. More traditional testing methods such as using a sifter with different mesh sizes to detect pieces of any physical hazard during raw material receiving. Additionally, sensory evaluations, mostly aroma and visual observation, are also part of physical food safety testing. This, perhaps, is the most convenient way of food safety testing. Some food contaminants such as microbial growth can produce unwanted odor and can serve as signs of spoilage. Although, consumption of finished products for analysis of safety is not very advisable especially for past due food items. 

Depending on the analyzed food safety hazards of a food product and food process operations, food safety testing can significantly vary. Testing procedures are established after the identification of the potential hazards and their significance in processing.

Characteristics of a good food safety testing

There is a lot at stake when conducting an actual test method. A poorly designed food safety testing procedure can result in false-negative results which can release finished products that are potentially contaminated. As such, food safety tests must be standardized and have particular characteristics for application to be considered effective.

Below are some characteristics every test procedure should have to solve food safety challenges:

• Specific.  A food safety testing must be able to identify its target contaminant. A broad-range food safety test can sometimes confuse and may lead to incorrect diagnoses. If you are keen on using multi-target food safety testing methods, make sure that your test procedures have specific markers to measure your desired target. Specificity also indicates that the food safety test must not cross-react with other food substances which can indicate a false-positive result.
• Accurate. The results of an analysis for food safety must be able to read beyond the acceptable food safety standards of a parameter for clarity but offer accurate readings. Your testing procedure must be able to give results that are not vague and can be easily distinguished for ease of use. If a testing procedure gives a very wide range of results, then the purpose of the testing is defeated.
• Reproducible.  Food safety tests are routine tasks. This means that they have to be repeated to ensure the consistency of food quality and safety of food production. As such, the test must be precise in producing results.
• Established.  Regulatory bodies and concerned organizations have also established guidelines for food safety tests and their acceptable results. Any deviation from these established steps must be justified in your food safety management system manual.
• Cost-effective.  Some food tests, cost quite a bit, especially the ones with the technology to give instant or rapid results. This fact is because faster results mean the faster release of finished products. Make sure that the benefits agree with your means to sustain continuous use of this test. Although, opting to buy affordable food safety sensing supplies must not mean sacrificing effectiveness.

Food testing procedures are usually established through a series of tests conducted by food industry experts and are commonly designed to be used by food processing plants. As the food industry moves toward globalization and away from traditional methods, more advanced technology and efficient food safety tests become available. The results of these tests can become too much to handle given the frequency of testing for some procedures. Additionally, it may become hard to keep up with them if you have a lot of tests for your food manufacturing practices. Allow our food safety management feature with a built-in HACCP plan builder to help you organize and consistently monitor these tests.

Digital solution to help in food safety testing

A single food establishment can have a variety of food safety testings for its food manufacturing practices. Not to mention, if you are dealing with GMOs, you would have to submit to a stricter approach to food safety as the FDA has concluded that all genetically modified food products require special safety testing. It would be crucial if you miss a scheduled food safety test as this can mean a higher risk of causing an outbreak of foodborne disease. As such, it must be part of your food safety management system and HACCP plan to establish the necessary food safety testing.

At FoodDocs, our food safety experts have developed a digital Food Safety Management System (FSMS) which can help you organize and monitor your food safety testings and make sure that not a single test is missed. Our digital FSMS allows food manufacturers and any food establishment to switch from your traditional manual FSMS to a completely digital system in just 15 minutes. Our digital FSMS provides you with complete monitoring forms, checklists, and food safety testing procedures based on your food business operations.

Let us help you achieve continuous compliance and solve your challenges with food safety regulations and achieve sustainability with our systems. When you join us at FoodDocs, you can also gain the following benefits:

• Our machine-learned system suggests the most important food safety testing and laboratory evaluations related to your food business.
• We automatically set up the standard frequency required for specific tests and the corresponding monitoring form for these food tests that are automatically prefilled for your convenience. Your only remaining task is to verify the logged entries.
• Ensure the quality and safety of your foods by never missing any of your food safety tasks as our system automatically notifies through our mobile app.
• Under our built-in HACCP plan builder, all automatically generated testing procedures and appropriate frequencies are mentioned in your  analysis plan  section. The general tests that we include depend on your food business but will include water quality, air, and other environmental analyses.
• Monitor your food processes and testings using our real-time dashboard that reflects your everyday progress. This report can be downloaded for documentation. 
• As a complementary feature of food safety testing, our FSMS also has a food production traceability feature that will allow you to track down any non-compliant batches based on your tests.
• Keep all information and documents in your cloud storage for easier accessibility and more efficient organization.

Remaining compliant with food safety laws and regulations while fulfilling the goals of food safety testing has never been this easy. Our objective at FoodDocs is to create a safe food supply chain by making digital FSMS more accessible and efficient for all food businesses.

Signing up with us at FoodDocs also means you get 20% more free time on managing food safety tasks. You can use this time to focus on managing your business with very minimal involvement in food safety tasks. Our user-friendly system was built to accommodate every food business owner's needs. You can easily set up your digital FSMS after you sign up for our free 14-day trial . 

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• Microbiological testing: what food businesses need to know
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A properly designed microbiological testing plan is vital for small businesses if they are to achieve their objectives and avoid wasting time and money, writes Roy Betts

Food producers frequently need to do microbiological testing. Some producers will have a good knowledge of what to do in these situations, for others it will be challenging journey into the unknown. Here we try to shed some light onto the process of getting foods tested for microorganisms, hopefully making that journey a little less fearful for the uninitiated. The first thing to make clear is that testing will never  assure safety. You can never ‘test’ a food safe. Safety is designed and manufactured into foods, and this involves the correct use of risk assessment and risk management procedures. The classic risk management procedure is correct implementation of HACCP and testing plays a role as a HACCP verification activity.

As a testing laboratory we will often get requests from producers to test their products for ‘full micro’. This term has no meaning and would tend to suggest that the requester has no real understanding of what they need, what the significance of the tests are and more importantly, what they will do with the results. On occasion, even producers who have long standing sampling and testing plans may find that they have not revisited their plans for many years and may be doing unnecessary testing, or worse not testing for something that they really need to. So, what are the steps when thinking of undertaking microbiological testing?

1. Define the need

The first requirement is to understand the need: ‘why do I want to test? This may be driven by legislation, or customer specifications, or simply that the producer has identified a requirement to do a particular test. There must be a reason why a test is required, and this must be understood. It may be for safety reasons: testing for a pathogen to verify the HACCP plan is working, or for the presence of a viable microorganism in a sterile food. It may be for quality reasons: testing for a spoilage organism that would reduce shelf life, or it could be to check hygiene in production by looking for ‘hygiene indicators’. Never set out to test a food until you know the objective of why you are testing.

2. Determine the goal

Before you start to test, you must know what you will do with the results. When you get a test result you will have information that you did not have before, and you must know how you will use that information. If you test for a pathogen, never assume that every test will be negative. What will you do when you get a positive pathogen result? What action will you take. You need to determine and document this before you start testing. Similarly, if the test is for a spoilage organism or hygiene indicator organism, you will need to have set ‘accept/reject’ criteria and maybe also an ‘action level’, but the question is what action will you take. Again, this must be determined and documented before you start to test.

3. Establish the criteria

It is usual for companies that undertake microbiological testing to set out their ‘microbiological criteria’. These are important statements that document several key points about the microbiological testing that you do. Some of the items that must be included in any microbiological criterion are listed here:

a) The test item: is this a product at the start of its shelf life; an end of life sample; a work in progress sample; an ingredient; an environmental sample from a particular point in production. Basically, what are you going to test.

b) What are you going to test for: This may be a single organism, or a whole range of organisms and groups. This part of the criterion may be driven by legislation, customer specification, a need for HACCP verification or simply a perceived risk, but the decision must be based around the Step 1 noted above: you must know why you are testing

c) How are you going to test it: what test method do you want to use? It is possible that the test method will be defined in legislation, or in a supplier specification, but it is up to you to decide how the test will be conducted and what method will be used. If you don’t feel that you have the right knowledge and expertise to do this, it may be worth calling in a reputable consultant to help.

d) Sampling: how many samples are you going to test, and how often? This is an important consideration as it can have major cost implications. Again, you may be driven to a particular testing frequency by legislative or customer requirements, but it’s important to understand why you are testing at the frequency you choose and the implications of testing too frequently, or infrequently. Frequent testing may give a greater confidence that HACCP is working well but could be costly. However infrequent testing could be more costly. Take an example of monthly testing for a pathogen, you’ve been getting negative results, then you suddenly obtain a positive- you need to recall. But does this mean you have to recall all production over the month as you have no data to prove the pathogen was absent since the last negative test. If you were testing daily, then your consideration may only be recalling a day’s production. This is only a hypothetical situation but shows how carefully you must consider test frequency when setting a microbiological criterion.

e) ‘Accept/reject’ criteria: You now know what you are going to test, how you are going to test it and how often, but the next question is, what will you do with the results? What does acceptable look like and why? What does unacceptable look like and why? If an unacceptable result occurs, what action are you going to take? Depending on the test you’ve done, actions may range from doing a production line audit and some extra cleaning and testing right through to informing the authorities and doing a full public recall. The action you take will depend on the type of test you’ve done and in some cases the level of organism detected, but you must document your intended actions in the criteria you set.

4. Confident testing

After understanding the need for testing and the treatment of results, you can now start to think about getting testing done. Some food producers will have their own on-site laboratories, others will use contract laboratories to do the work. Whichever you use, you must have confidence that the laboratory will deliver a high-quality service that is consistent with your requirements.

If you have your own on-site laboratory, how do you know that it is using the most appropriate methods or handling the samples in the correct way? Basically, how do you know you have confidence in its results. You can achieve this in several ways: employing previously trained microbiologists with a proven track record; sending your staff on appropriate training courses; ensuring your laboratory takes part in proficiency testing for all the test methods it operates; ultimately and perhaps the target for all testing laboratories would be accreditation. Accreditation offers the best assurance that a laboratory is operating to a high standard of quality, that staff are trained, methods are appropriate, equipment serviced and calibrated and quality assurance systems in place.

If you are going to use a contract testing laboratory, you will be looking for one that is accredited by the national accreditation body within the country that it is sited (e.g., UKAS in the UK and INAB in Ireland), but you must also ensure that the methods it will use on your tests are appropriate. Check that the methods are included within the scope of that laboratory’s accreditation. Do the methods they use fulfil the requirements that you will have detailed in section 3(c).

A good example may be that a laboratory is accredited and has a method for Listeria detection within its accreditation scope, however you are testing to a legal requirement that states the use of one very specific method for Listeria detection. It’s up to you to ensure that the specific method noted in legislation is used, or your test result may well be unacceptable for its intended use.

When using contract laboratories, you also must check how the samples will be transported and delivered to that laboratory. Remember that microorganisms are living, and it is unlikely that they will remain at static numbers in your sample for long periods of time, they will either grow to higher levels or die off. You must ensure that the way the sample is handled from the point it is taken in your factory, to the point the microbiological test is initiated, allows the absolute minimum change in microbial number. This may require chilled storage and rapid transport to the laboratory, and an assurance from the laboratory that they will test the sample immediately on arrival or use chilled storage for the minimum time before testing commences.

Finally, you must also agree how results will be transmitted from contract laboratory to you. You will undoubtably want to have any result that is above your ‘accept/reject’ criteria (3e) reported to you with all haste, as you may have major actions to take.

Final thoughts

Setting out to do microbiological tests on foods may initially sound easy, but it is not. It is not unusual to see food producers waste enormous sums of money on testing approaches that are poorly designed, and give inappropriate, unwanted, or unacceptable results. Spending time on planning a good testing approach, asking ‘why am I doing this?’, ‘what will the results show me?’ and ‘what am I going to do with any out of specification results that I obtain?’, will be time very well spent. Once you have spent that time, then document all those factors and reasons. It will be important in the future to fully understand why you made the decisions that you did, documentation is the only way to do this. You may find that talking to an expert that can help you design the testing regime and the criteria that best fit your needs, will be of benefit to you. Finally keep in close contact with your testing laboratory, they are your partner in doing this work, you will rely on their competency to get correct results.

Remember, testing does not make a food safe, that is the job of a well-constructed and implemented HACCP system, but a properly designed microbiological testing plan will complement this and give confidence that the system is operating as expected.

About Roy Betts

Roy Betts is a Fellow at Campden BRI, an independent international food consultancy and research organisation. His role is to ensure that the industry maintains a full awareness of all microbiological concerns and to help companies respond to and manage microbiological issues relevant to them and their products.

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• Introduction: Food Testing Laboratory

In recent times, witnessing the massive rise of covid-19 cases has made us realize the significance of testing in our daily lives, especially when it comes to quality checks of food that we consume. Even though the bad quality and processing of food don’t directly affect the transmission of covid, they do contribute to hundreds of other diseases, even the fatal ones. Also, you might have noticed that the food industry of India often comes under the scrutiny of foreign media for its poor quality as compared to global standards. And, this not only damages its reputation but also harms its export figures. All these make prior testing of food by accredited and certified laboratories a must to ensure its safety and hygiene. In this article, we will discuss the roles of a food testing laboratory in a detailed manner, alongside the compliances required to start it in India.

Table of Contents

Food Testing Laboratory in India 

Roles of a food testing laboratory in india, significance of food testing laboratory, techniques used in a food testing laboratory , regulations and norms for food testing laboratory in india .

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Despite being the last step in the food manufacturing chain, the testing of food products stands as the most crucial step, without which the government authority may not let businesses sell their edible products in the Indian market. Food testing has become necessary to determine the safety of edible products for public consumption as it makes sure they are free of any physical, chemical, or biological contamination.

To get a better understanding of it, you can take examples of potentially dangerous food impurities, such as metals, pathogens, cleaning agents, additives, and pesticides. You may here get shocked if we tell you this is just the tip of the iceberg. Besides this, the food testing laboratory also conducts a scientific analysis of the edible products to find out their properties, including structure, compositions, and physicochemical characteristics.

The presence of food testing laboratory is crucial for the food industry of the country and the reason we are saying this is the roles they play, which includes:

• Testing the quality of a food product
• Inspection and grading of food products.
• Testing to check food’s authenticity 
• Testing for any impurities
• Nutritional labeling of food products.
• Analysis of food nutrient contents 
• Shelf-life testing
• Sensory assessment

Throughout the country, over six hundred food testing laboratories are present. This figure considers every NABL ( National Accreditation Board for Testing and Calibration Laboratories ) certified laboratory, as well as those held by FSSAI, food business operators, central-state governments, private key players, etc.

Besides this, several food testing labs are also operating there, which primarily focus on testing raw materials and finished products. Unlike the ones mentioned above, these are comparatively smaller and help food business operators of the country obtain required test reports for concerned food items. If we think of the benefits of it from a consumer perspective, then it protects them from all the potential diseases that can arise from contaminated food.

And what about manufacturers? Well, a food testing laboratory assures the safety of food products of a manufacturer and helps it get regulatory approval to enter the market. Not just this, it also indirectly contributes to the brand reputation, which can ultimately reap high growth for its business.

• Analytical testing

Also known as material testing or analytical chemistry testing, it is used to identify the chemical characteristics of a particular food product. In simple terms, a food testing laboratory does it for identifying and finding the chemical components that are present in a food product, such as pH, additives, adulterants, minerals, preservatives, etc.

• Microbiological analysis and testing

Microbiological analysis of food products takes into use biochemical practices to detect and identify the presence of microorganisms in a food product. Mainly, it is used for the raw materials applied in food preparation and sometimes for the final products as well. And the significance of it can’t be underestimated at any cost because if any contaminated microorganisms enter the food manufacturing and supplying chain, it can lead to a potential outbreak of food poisoning cases among the general public and disruption in food production, which means loss of substantial revenue and stability.

• Nutritional analysis

A food testing laboratory uses nutritional analysis techniques to determine the nutritional contents of a food product. It is a vital part of material testing that helps food business operators get all the required information on nutritional content to mention on the packaging of their food products and comply with the regulatory frameworks, or we should say, saves them from any legal consequences.

The Food Safety and Standards Authority of India leaves no stone unturned when it comes to the proper quality check of food products available in the market for public consumption. It has put several measures in place that every food business operator in the country is obliged to follow. This includes timely mandatory testing from a certified testing laboratory. Here, someone might ask, ‘But what about the regulations and norms for starting a laboratory for food testing?’ Because without them, anyone could start one for himself, which will only compromise their authenticity over time. Considering this, FSSAI has set a certain set of norms for establishing laboratories for food testing in the country, which are as follows:

• As per FSSAI, every food testing laboratory is required to put a Quality Management System (QMS) in place. Besides this, it must also have relevant testing equipment and parameters for quality checks.
• The laboratory is required to operate under the purview of a Government-recognized authority, such as NABL, FSSAI, etc.
• The staff of the laboratory must be trained and well-versed in handling all the testing requirements. 
• There must be at least one certified food analyst present in all the laboratories that are indulged in the testing of food products.
• The FSSAI recognizes three types of labs, namely, Level 1, Level 2, and Referral lab, and mandates them to possess all the testing gear and equipment required as per the scope of their recognition levels. 

Thinking of starting a food testing laboratory? Well, if yes, then let us tell you it can not only result in a successful business with high margins for you but also contribute to making the food industry of the country safer for the general public. Just make sure you follow all the compliances required for it and you’re good to go. In case you need any help with that, feel free to come in contact with Corpseed ITES, which is India’s best business legal and Company and has been working in this field for years.

FSSAI Basic

If you are into food business with revenue below 12 Lakhs, you must obtain an FSSAI Registration before starting operations. Corpseed can help you to obtain FSSAI registration for your business.

FSSAI State

If you are into food business with revenue above 20 Lakhs, you must obtain an FSSAI License before starting operations. Corpseed can help you to obtain FSSAI state license for your business. Guaranteed satisfaction or your money back.

FSSAI Central

FSSAI Central License PAN India in no time. In case you want to import/export or sell your products on an E-Commerce Website, you must obtain an FSSAI Central License. Team Corpseed will help you to obtain FSSAI central license.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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