Fargo Medical Laboratories

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Laboratory Business Plan

Executive Summary

Fargo Medical Laboratories (FML) is a start-up company committed to providing the most convenient, friendliest blood testing service to the physicians of the Main Street Professional Building and the surrounding area. Fargo Medical Laboratories has been founded as a single member L.L.C. registered in North Dakota by Dave Gigsted. Fargo Medical Laboratories will quickly gain market share serving the Fargo medical community.

Objectives
Fargo Medical Laboratories has established three significant objectives to pursue. The first is securing 60% of the physicians in the Main Street Professional Building as customers. The second objective is to develop 20% of their revenue from physicians who practice in the nearby vicinity. The third objective is the desire to reach profitability with 12 months. This is especially important since Fargo Medical Laboratories will be using bank debt would like to see a positive ROI fairly soon.

Market
Fargo Medical Laboratories has identified two market segments they will serve. First is the large number of physicians that have a practice in the Main Street Professional Building, where Fargo Medical Laboratories will lease space. This customer segment has 128 potential customers with a growth rate of 3%. The second group is physicians that have medical practices in other nearby facilities. There are 115 potential customers in this segment with a 5% annual growth rate.

Services
Fargo Medical Laboratories offers a comprehensive battery of blood tests for physician's patients. Several tests will be done in-house including:

  • CBC- A complete test of red blood cell count, white blood count, and a platelet count. Each of these three can be ordered individually if needed.
  • Blood sugar test- Frequently requested for diabetics or possible diabetics.
  • Electrolyte testing- For patients who are on diuretics and there is concern that they may be losing too many of their electrolytes.
  • Creatine- Often used to check kidney functioning or to determine if there is heart or kidney problems.

Other types of blood analysis can be done with the specimen sent to a central lab for testing.

Management
Fargo Medical Laboratories has been founded and will be led by Dave Gigsted. Dave received an undergraduate degree in small business management.  After graduation Dave got his laboratory technician certification and went to work for a laboratory. He was eventually elevated to lab manager, staying with the lab for five years.

Dave then moved with his wife to Fargo where he worked for a year in a lab. Surveying the business environment with the thought of opening up his own blood laboratory, he recognized the great need for a lab in the Main Street Professional Building, and developed a plan and secured financing for the venture.

1.1 Objectives

  • To gain 60% of the Professional Building's blood testing work.
  • Develop 20% of the revenues from offices outside the Professional Building.
  • Reach profitability within 12 months.

1.2 Mission

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

1.3 Keys to Success

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