How to Start a Drug Testing Service

Contact your local health authority to find out what licenses you need in order to start a drug testing service.

Complete an accredited course for drug testing and take the state exam to become a licensed drug test provider. If you plan to offer full service drug testing, this will involve laboratory training in order to process blood, urine, and hair tests.

Determine what your market is. Many companies use drug testing services to check their employees. Families may use drug testing services in order to check their children. Usually, they are referred to drug testing services by a counselor. Schools and athletic organizations may require that their athletes take drug tests.

Decide whether you want to bring your drug testing service to your clients, or whether you want them to come to you. Many clients prefer that the drug testing service come to them. For the beginning entrepreneur, this can save substantially on the costs of office and laboratory space. However, you will have to send blood samples to an official laboratory for testing. Having your clients come to you offers credibility as a company, but involves a much higher initial investment to cover the costs of a location.

Write a business plan that includes your start-up costs, operation strategy, costs of staff, marketing, and materials. Calculate your projected income for the first 2 years.

Obtain the capital you need to start a drug testing service by applying for a small business loan from your bank or seeking funding from private investors.

Register your company with your city to obtain a business license. If you are hiring employees, apply for an employer's identification number, also referred to as EIN.

Choose your location, if appropriate. Make sure it has multiple cubicles for client privacy. If you're running a mobile drug testing service, make sure you have a vehicle that is large enough to carry your equipment, such as a minivan or SUV.

Buy equipment. The most basic equipment consists of specimen drug test kits, but for a more elaborate service, you'll need specialized laboratory equipment. You'll also need a good computer to keep records of every client.

Purchase liability insurance. Drug tests are often contested, and liability insurance will cover your legal costs in the event that you're sued.

Advertise your drug testing service at companies, counseling centers, schools, and sports clubs.

Open your drug testing service.