Depending on the quantity of equipment acquired and the number of personnel, starting a mobile phlebotomy business might cost anywhere from $10,000 to $100,000 or more. Note that this amount comprises the pay of all employees for the first month of the business.
A mobile phlebotomy business as the name implies is a business that doesn’t operate from a fixed facility. It provides its service to clients in their homes, offices, school, hotel, or in any location where they want – mobile phlebotomy business provides on-site blood collection services to individuals or healthcare facilities.
With that in mind, it is safe to say that starting a mobile phlebotomy business is less expensive when compared to starting a regular phlebotomy business that operates from a lab facility.
Aside from the estimate above, note that there are certain key factors that can determine the amount it will cost you to start your own mobile phlebotomy business, and that is what we will discuss in this article.
Estimated Cost Breakdown for Opening a Mobile Phlebotomy Business
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $1,300.
- Marketing, Branding, and Promotions – $1,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $70,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Start-up Inventory – $25,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Vehicles – $45,000
- Website: $600
- Opening party: $4,000
- Miscellaneous: $5,000
Ongoing Expenses for Running a Mobile Phlebotomy Business
- Staffing costs (salaries, benefits, and training for physicians, and administrative staff)
- Facility expenses (rent, utilities, property taxes, maintenance, and insurance)
- Medical Supplies and Equipment such as phlebotomy needles, tourniquets, blood collection tubes and carriers, vacutainer tubes, bandages or adhesive strips, alcohol swabs or antiseptic wipes, gloves, and basic medical supplies.
- Marketing and advertising
- Administrative expenses (office supplies, legal fees, accounting services, and software or technology systems)
- The cost of purchasing pharmaceuticals and maintaining an inventory of commonly prescribed medications.
- Taxes
- Compliance and Regulatory Costs.
3-Year Sales Forecast and Breakeven Analysis
Initial Capital: $100,000
Fixed Cost: Monthly expenses such as rent for a small office, salaries, utilities, insurance, and vehicle-related costs.
- Office Rent: $1,000 per month
- Salaries (including one full-time phlebotomist and part-time admin): $4,000 per month
- Utilities and other fixed costs: $500 per month
- Vehicle lease and maintenance: $1,000 per month
- Insurance: $500 per month
- Total Fixed Cost per Month: $7,000
- Total Fixed Cost per Year: $84,000
Variable Cost: Costs that vary directly with sales, such as medical supplies, fuel, and test processing fees.
- COGS: 20% of sales
Revenue: Average Fee per Service: $50 per visit
Growth Rate:
- Year 1: Starting with an average of 200 visits per month.
- Year 2: 20% increase in total sales from Year 1.
- Year 3: 15% increase in total sales from Year 2.
Year 1:
- Monthly Visits: 200 visits x $50 = $10,000
- Total Annual Sales: $10,000 x 12 = $120,000
- Variable Costs: $120,000 x 0.20 = $24,000
- Fixed Cost: $84,000
- Total Cost: $24,000 + $84,000 = $108,000
Year 2:
- Total Annual Sales: $120,000 x 1.20 = $144,000
- Variable Costs: $144,000 x 0.20 = $28,800
- Fixed Costs: $84,000
- Total Costs: $28,800 + $84,000 = $112,800
Year 3:
- Total Annual Sales: $144,000 x 1.15 = $165,600
- Variable Costs: $165,600 x 0.20 = $33,120
- Fixed Costs: $84,000
- Total Costs: $33,120 + $84,000 = $117,120
Breakeven Point
Breakeven Sales Monthly = Fixed Costs per Month ÷ (1−Variable Cost Percentage)
: = 7,000 ÷ (1 − 0.20)
Breakeven Sales Monthly = $8,750
Factors That Influence the Cost of Opening a Mobile Phlebotomy Business
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Licensing and Permits
If you are considering starting a mobile phlebotomy business in the United States of America or in any country of the world, the first thing to do is to secure all the needed licenses and permits.
Please note that the costs associated with obtaining the necessary licenses and permits to operate a mobile phlebotomy business can vary from one location to another. So, it is important to research the requirements specific to the location you intend to start your business.
The licenses, and permits needed to operate a mobile phlebotomy business include business licensing fees, medical laboratory permits, vehicle licenses, etc.
Note that in the United States, you should have an estimate of $500 to $5,000 or more to get all the needed licenses and permits for this business.
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The Cost of Purchasing Phlebotomy Equipment and Supplies
Another major factor that can influence the overall cost of starting a mobile phlebotomy business is the cost of acquiring equipment and supplies. The truth is that phlebotomy equipment and supplies are a crucial aspect of your business.
If you are planning to start a phlebotomy business, you should have a budget for equipment and supplies such as mobile phlebotomy chairs, blood collection supplies (needles, tubes, gloves, etc.), personal protective equipment (PPE), specimen transportation supplies, centrifuges, biohazard containers, and mobile storage units.
You should have a budget estimate of $5,000 to $10,000 or more to purchase the needed phlebotomy equipment and supplies.
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The Cost of Purchasing or Leasing a Vehicle
Starting a mobile phlebotomy business means that you will need a vehicle to transport your equipment. If you don’t already have a vehicle to start the business with, then you should create a budget for acquiring one.
The cost of purchasing a vehicle suitable for a phlebotomy business is significant and it can significantly impact the overall cost of starting the business.
The cost of purchasing a suitable vehicle for a phlebotomy business will depend on whether you choose to lease or purchase. Whatever decision you settle for, you should budget an estimate of $10,000 to $50,000 or more.
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The Cost of Marketing and Advertising
Another major factor that will influence the overall cost of starting a mobile phlebotomy business is the cost of marketing and advertising your business.
Trust me, establishing a strong online presence, creating a website, developing marketing materials, and advertising your mobile phlebotomy business will incur reasonable expenses.
Depending on how big you want to announce your presence in the market, you should have a budget estimate of $1,000 to $5,000 or more.
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The Cost of Purchasing Insurance Policy Coverage
If you are considering starting a mobile phlebotomy business, then you should budget for insurance. Trust me, the amount you will spend in purchasing insurance coverage for your mobile phlebotomy business can be significant and will influence the overall cost of starting the business.
Please note that the costs of purchasing insurance policy coverage for your mobile phlebotomy business will depend on your location and the coverage options you choose. But generally, you should have a budget estimate of $1,000 to $3,000 per year.
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Staffing Cost
Another factor that will greatly influence the overall cost of starting a mobile phlebotomy business is your staffing cost. If you plan to hire phlebotomists or other medical professionals, you should consider their salaries, benefits, and training costs.
Please note that your staffing expenses will vary because it will depend on the number of staff you have, and of course, their qualifications.
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Operational Costs or Ongoing Expenses
Lastly, another major factor that will determine the cost of starting a mobile phlebotomy business is your operational costs or ongoing expenses.
Although, there is no fixed amount you are expected to spend when it comes to operational costs, but the truth is that it can be a significant part of your budget especially if you are going to be operating a standard mobile phlebotomy business.
Your operational costs will include ongoing expenses such as office supplies, laboratory testing fees (if applicable), transportation costs, and maintenance expenses for your equipment and vehicle.
We cannot give an estimate of what you should budget for your operational costs because it will vary based on your business size and the volume of clients you handle.