Thinking about opening a paternity testing business? We tell you what you need to know to get started.
Business Models for Paternity Testing Startups
Paternity and genetic testing have provided a plethora of lucrative business opportunities for entrepreneurs. Despite the diversity of the paternity testing marketplace, startup businesses typically fall into one of two broad business models.
Some paternity testing startups focus on creating an in-house laboratory, allowing them to perform paternity tests on-site. As you might expect the capital and expertise requirements for these types of startups are extensive, but entrepreneurs who target this business model have the highest profit potential.
The other paternity testing business model relies on outsourcing lab services to a third-party provider. Since the startup doesn't necessarily need to maintain a facility, it's not unusual for providers to sell their products online and forward do-it-yourself DNA collection kits to the testing company.
Online Opportunities for New Paternity Testing Businesses
An online paternity testing business is a natural fit for entrepreneurs who lack lab expertise or extensive startup funding. With a good business website and handful of online skills, it's possible to launch a business that features mail-in customer samples, outsourced lab testing and remote follow-up.
The catch is that hordes of entrepreneurs have flocked to the online paternity testing business model. To break into the market, you will need to differentiate your startup through pricing, marketing, SEO and other critical business activities. If you aren't sure how to raise your startup's visibility with online customers, we recommend consulting an experienced online marketing firm for assistance.
How to Accept Credit Card Payments in Your Paternity Testing Startup
Whether your paternity testing startup is lab-based or web-based, the ability to accept credit card payments is an important issue that needs to be addressed ASAP. Since most customers will pay with a credit card, you will need to work out your credit card payment issues before you accept your first customer.
The process begins by applying for merchant status with major providers like Visa, MasterCard and American Express. To do this, you'll need to contact a bank or an independent credit card processor for application requirements. Next, you will want to shop around and make sure your credit card system integrates with your companies backend solutions (e.g. accounting).
The final step of the process involves communicating to customers which credit cards your paternity testing operation accepts via logos and/or decals at your physical location or on the business's website.
Writing Tips for a Paternity Testing Company Business Plan
Your new paternity testing business needs a business plan. But if you've never drafted a business plan before, the process can be intimidating.
But here's the good news: With a few tips, any entrepreneur can create a successful plan for their business. If you can get past the mystique, you'll see that a business plan just describes where your paternity testing business is headed and how you intend to get there.
Once your business plan is in place, you can use it for a variety of funding and planning functions.
If you still aren't sure where to begin, consider taking a look at several sample business plans to get the creative juices flowing.
Evaluate the Competition
Prior to launching a paternity testing business in your town, it's a smart move to find out how you will fit in the competitive landscape. Use the link below to find competitors nearby. Just enter your city, state and zip code to get a list of paternity testing businesses in your community.
It's important to be aware of what the competition is doing. Take the time to visit the competition to properly assess their strengths and weaknesses.
A Good Source of Advice
Once you've finished assessing the competion, be sure to have a conversation with someone who is in the business. If you think your local competitors will give you advice, you're being overoptimistic. The last thing they want to do is help you to be a better competitor.
Fortunately, somebody who runs a paternity testing business outside of your community can be a great learning resource for you, after they realize you reside far away from them and won't be stealing their local customers. In that case, the business owner may be more than happy to discuss the industry with you. It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
How does one go about finding an entrepreneur who is running a paternity testing business that lives outside of your area?
It's easy. Here's a link you can use to find a mentor outside of your area.
How to Buy a Paternity Testing Business
Many experts advise against starting a paternity testing business if you can buy an established operation. Yet the process of buying a paternity testing business introduces a new set of challenges.
As you would expect, there are a number of steps in buying a business. For most prospective business buyers, the first step is to contact a business broker.
A good business broker serves a number of useful purposes. From locating available companies to helping seal the deal, your broker will have the experience and skills to help you successfully navigate the purchase process.
Don't Rule Out Franchising
Your chances of achieving the entrepreneurial goal of doing well in business are substantially improved if you become a franchisee and leverage their successful brand and track record.
Before you get too far along in your plan to open a paternity testing business, you ought to check out whether franchise opportunities in your space might make your life much easier.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding starting a business may be of interest to you.
If you already are in business and came here to learn about growing an existing paternity testing business, these resources will come in handy:
If you came here to learn about selling to paternity testing businesses, you're in the wrong place. These resources are more appropriate for you:
If you are interested in starting a different kind of business, please browse our directory of guides below.