Drug Testing BLOG

So, you have decided to enter the Drug & Alcohol Testing business. You have made an initial assessment of the market share, did a lot of research on the key players in the industry, and somehow managed to draft a business plan. You’re almost ready except for one thing: should you buy a business franchise or take advantage of business opportunities?

Understanding the difference between a franchise and a business opportunity enables you to choose the right path to take. In the franchise business model, an individual or a group is granted the rights to market a company’s goods or services in a specific geographic area. All units operate and perform under a common brand, using a standardized operating system. The goal of the franchise is to ensure that all franchisee is doing the same thing at the same quality. One of the advantages of this business model is that a proven business formula is already in place and that the products or services have already been established.

A business opportunity, on the other hand, is not as structured as the franchise business model. There is no requirement to operate under a common brand; instead, it focuses on providing you the things you need to know to get started. Additionally, it doesn’t involve ongoing fees or royalties which are typical of the franchise model.

In the Drug & Alcohol Testing business, you have the option to enter either a franchise contract or a business opportunity. Some of the drug & alcohol testing companies that offer franchise & business opportunities are A & D Tests, Inc., ArcPoint Labs, Lab Test MD, Rapid Drug Test Systems, ANY LAB TEST NOW, and USA Mobile Drug Testing. These businesses are members of the Drug & Alcohol Industry Association (DATIA). Evaluating each type of opportunity allows you to decide which one best fits your business goals and objectives.

Hiring a consultant is also helpful to get you started with your business set up. There are quite a number of consultants in the Drug & Alcohol Testing business that can offer you relevant assistance in setting up and running your business.

To further explore on this topic and find out more details on how to avoid common pitfalls learn from Joe Reilly’s 2012 white paper, Getting into the Business – Drug & Alcohol Testing. The paper provides a wealth of information on how you can get started in the Drug & Alcohol testing business, the right way. It also talks about the common terms and the industry players that you need to know in order to identify the suitable business path for you.

As an expert on workplace drug testing issues, Joe Reilly served for nine years on the DATIA Board of Directors and was Chairman of the Board from 2004–2008. He was the Founder and the former President and CEO of Florida Drug Screening, Inc – a nationwide provider of drug & alcohol testing and drug-free workplace programs – until he sold the business to CBC Companies in 2007. After retiring from the firm in 2009, Joe Reilly continues to actively assist buyers and sellers in the drug testing industry as a private consultant. He regularly provides training and consulting services for people entering the drug and alcohol testing industry.