Setting up your own laboratory: 10 points you should definitely consider

Step 2: Market research and target group analysis

Before you start setting up your laboratory, it is essential to thoroughly understand and analyze the market. This will not only help you to better tailor your services to the needs of your customers, but also to differentiate yourself from your competitors.

• Market analysis: Start with a comprehensive analysis of the market to identify trends, growth opportunities and potential challenges. Examine the existing demand in your area of expertise and evaluate your competitors' offerings.
• Target group definition: Define who your main target group is. Are they medical institutions, pharmaceutical companies, research institutes or perhaps private individuals? Understand the specific needs of these groups and how your laboratory can meet them
• Competitor analysis: Take a close look at your competitors. What do they offer? Where are they successful, and where do they possibly leave gaps that you could fill?
• Pricing strategy: Develop a pricing strategy based on your understanding of the market dynamics and your cost structure. Take into account how much your target customers are willing to pay and what your competitors are charging
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Pro tip: Use digital tools and resources for market research, such as Google Analytics, industry reports and social media, to gain deeper insights into your target audience and adapt your strategies accordingly. Additionally, it's worth attending specific trade events to get a feel for the market players and expand your professional network. These events often provide not only valuable market information, but also opportunities to network with industry leaders and potential clients. Remember, take the time to do thorough market research. In the end, it will be worth the effort and you will minimize unnecessary risks.

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Further resources: If you would like to learn more about the German laboratory market, we recommend two comprehensive studies on the topic of "Industry Analysis Laboratory Analytics" by the Hans Böckler Foundation. These studies provide detailed insights and up-to-date data that can help you further refine your market strategy. You can find the studies under the following links: Link to the first study and Link to the second study.

Step 3: Define product and service offering

A successful laboratory needs a clearly defined range of services. Before you open your laboratory, you should define exactly which services or products you want to offer and how you can stand out from the competition. A well thought-out offer is the key to targeting customers and being economically successful in the long term.

• Determine the range of services: What type of laboratory do you want to operate? Is it a medical diagnostic laboratory, a chemical or analytical testing laboratory, a forensic laboratory or a specialized research facility? Define the exact analytical procedures and services you want to offer.
• Develop specialization and unique selling propositions (USP): In a competitive market, it is important to position yourself clearly. Consider whether you can specialize in certain analyses or technologies in order to serve a niche in which there is less competition.
• Understand your target customers and their needs: Who are your main customers? Pharmaceutical companies, food manufacturers, research institutes or doctors' surgeries? Tailor your offering specifically to their requirements.
• Technology and method selection: Depending on the laboratory area, you need to decide which technologies and methods you want to work with. Not only the acquisition costs, but also long-term operating costs and maintenance requirements play a role here.
• Pricing and billing: Calculate your prices realistically by taking into account both fixed and variable costs. Make sure that your services remain competitive but profitable at the same time.
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 Pro tip: Bear in mind that in the laboratory sector you may be faced with strong competition from large laboratory chains. Differentiate yourself from these providers! Larger chains often concentrate on the automated mass processing of samples, which often leads to deficits in the area of specific advice and interpretation of results. Use this as an advantage: focus on excellent quality and outstanding customer service to set yourself apart from these laboratories. 

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‍Practicalexample: "Successful for decades despite powerful competition"

Despite increasing competition from large laboratory chains in the field of environmental laboratories, there are always very successful small regional laboratories that stand out from the much more powerful competition by providing excellent service and carrying out specialized analysis. We have already had the pleasure of getting to know laboratories that have successfully occupied analytical niches for decades and have held their own in the market with highly specialized services. Their success shows that customers are often not only looking for the cheapest provider, but also for specialist knowledge, personal service and precise analyses.

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Step 4: Find the right premises for your laboratory

The location and equipment of your laboratory are crucial to its long-term success and cost structure. A laboratory has special requirements for premises that must take into account both legal and operational factors.

• Size and layout: The area must provide sufficient space for workstations, storage areas, office areas and technical equipment. Also consider separate areas for different activities to avoid cross-contamination. Tip: At this stage, you should already plan your future equipment requirements in order to be able to estimate the exact space needed. The manufacturers can usually provide you with the relevant installation requirements with all the important key figures.
• Technical requirements: Check the existing infrastructure: Are there sufficient water, gas and electricity connections? What ventilation systems are required? Are there any special fire protection requirements? The same applies here: coordinate with the manufacturers of your equipment at an early stage to avoid unplanned additional costs later on.
• Load-bearing capacity of the ceilings: Analytical systems such as mass spectrometers, X-ray fluorescence devices or special testing machines can weigh several hundred kilograms. The load-bearing capacity of the building structure must be sufficiently dimensioned to allow these devices to be set up safely. This is a particularly critical point for laboratories on upper floors.
• Choice of location: Depending on the type of laboratory, proximity to clinics, surgeries, companies, research facilities or industrial parks can be an advantage. Logistical accessibility for suppliers and customers also plays a role.
• Official permits: Depending on the location and type of laboratory, certain permits may be required. Check at an early stage whether your planned activities comply with local building and environmental regulations.
• Expandability and flexibility: Your laboratory should not only meet your current needs, but also offer room for future growth. If scaling is planned, rental agreements and structural conditions should allow for this possibility.
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Pro tip: The choice of premises can turn out to be a hidden cost trap. You are playing it safe if you move into a building that was built specifically for research and laboratories. Subsequent changes, particularly in the areas of exhaust air, gas supply or safety systems for handling explosive substances, can be ruinously expensive and put a considerable strain on your liquidity. Exhaust air and air conditioning systems are particularly important for mass spectrometers and other sensitive laboratory equipment. Plan for these requirements at an early stage to avoid costly retrofitting. 

‍Example from practice: "Ceiling load underestimated"

‍Alaboratory in a time-honored building planned to purchase a Q-TOF system. Only after the purchase did it turn out that the load-bearing capacity of the ceiling was not sufficient. As the system had already been purchased, the laboratory had no choice but to make costly structural adjustments. A mistake that could have been avoided if the location had been checked at an early stage.

Practical example: "Laboratory in old premises"

A few years ago, a laboratory wanted to conduct research into cannabis in an old university building. When the THC standards were ordered, the authorities pointed out that a specially secured cabinet for narcotics was required. However, due to the structural conditions, the installation of such a cabinet was not possible. As a result, THC analysis could not be carried out in this building. While this was very annoying for the university, such a mistake would have had fatal economic consequences for a private company.

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Step 5: Choose the right suppliers

Choosing the right suppliers is a crucial factor for the smooth operation of your laboratory. Whether chemicals, consumables or high-precision analytical instruments - quality, reliability and service are essential to avoid operational interruptions and delays.

• Reliability and delivery times: Choose suppliers that guarantee fast and reliable delivery. Especially in a laboratory environment, bottlenecks in reagents or consumables can hinder the entire workflow.
• Quality assurance: Check whether the supplier's products are certified (e.g. ISO standards, GMP or GLP standards). The quality of the materials used has a direct influence on the reliability of your analyses.
• Price-performance ratio: The cheapest provider is not always the best choice. Look for a good balance between cost and quality, especially for devices that require regular maintenance and more intensive service support.
• Build long-term partnerships: A stable cooperation with trustworthy suppliers can bring you benefits such as discounts, preferred delivery times or better support.
• Alternative sources of supply: To protect yourself against possible supply bottlenecks, you should always have at least one alternative supplier at the ready.
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Pro tip: Especially at the beginning, it is tempting to always opt for the cheapest supplier. When selecting a supplier, pay attention to certain criteria such as service, delivery times and quality. While there are many suppliers for chemicals, the choice for equipment is more limited. Work with decision matrices if you are still unsure. These help you to objectively evaluate different suppliers based on weighted criteria. This allows you to clearly compare quality, price and service and make an informed decision. Unsuitable equipment, like unsuitable premises, can turn into a cost trap!

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‍Practical example: "The cheapest wins"

‍Alaboratory was faced with the decision to purchase a state-of-the-art mass spectrometer. The choice fell on the cheapest supplier - a manufacturer that offered attractive prices but had no established service in Germany. It quickly became apparent that this was a costly mistake: the device was technically sophisticated, the operation was complex and the learning curve for the staff was correspondingly steep. Without sufficient training and support, the introduction took significantly longer than planned, which caused considerable disruption to laboratory operations. Things became even more problematic when the device began to experience technical failures - customer support was difficult to reach, spare parts had to be ordered from abroad and repairs took weeks. To this day, the laboratory suffers from recurring problems and long downtimes. The supposedly inexpensive purchase turned out to be one of the company's most expensive decisions. This example impressively demonstrates that the long-term costs of a device do not only depend on the purchase price - service quality, training and fast repairs are just as crucial for cost-effective operation. 

Step 6: Select the right personnel

Like most companies, the success of a laboratory stands and falls with its team. Choosing the right staff is crucial to success, as expertise, experience and teamwork have a significant impact on day-to-day operations.

• Check professional qualifications: Different qualifications are required depending on the type of laboratory. While a medical diagnostics laboratory requires specialized MTAs or laboratory physicians, an analytical testing laboratory may need chemists or laboratory technicians.
• Don't underestimate soft skills: In addition to technical expertise, the ability to work in a team, independently and with precision are also crucial for laboratory operations. In smaller laboratories in particular, employees often have to cover several areas of responsibility.
• offer training opportunities: Technology in the laboratory environment is developing rapidly. Regular training and further education are essential to keep pace with new methods and equipment.
• Leadership and corporate culture: Good leadership ensures motivation, efficiency and a pleasant working environment. Clear responsibilities and transparent communication are particularly important in safety-critical laboratory areas.
• Induction and quality standards: Each laboratory has its own work processes, documentation requirements and quality specifications. A well thought-out induction program ensures that new employees are quickly trained and errors are avoided.
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Professional tip: The labor market for qualified laboratory staff is tight. Use your network to find good specialists and offer attractive conditions such as flexible working hours, further training or modern workplaces. Especially in specialized laboratories, a good team can make all the difference.  

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‍Example from practice: "Satisfaction as a guarantee of success"

‍Asmall environmental laboratory in Saxony-Anhalt has successfully established itself on the market for years. A key factor in its long-term success is the high level of employee satisfaction. The owner pursues a modern management culture based on trust and personal responsibility, and in conversation he emphasized that a certain degree of flexibility is crucial for the motivation and loyalty of his employees. He does not mind if employees occasionally attend to private matters or use their cell phones for a short time - as long as the quality of work does not suffer as a result. This trusting working atmosphere means that the team identifies with the company and supports each other. A particular advantage of this working atmosphere becomes apparent in critical situations: Even during illness or vacation, employees are often willing to answer questions about certain systems or support colleagues at short notice. This high level of commitment is not the result of pressure, but of genuine commitment to the company - clear proof that employee satisfaction and company success are closely linked.

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Step 7: Break down laboratory costs

Realistic cost planning is essential for the long-term success of a laboratory. Many founders underestimate the ongoing laboratory costs or calculate too tightly, which can quickly lead to financial bottlenecks. A detailed cost breakdown helps to avoid surprises and create a solid financial basis. By reducing laboratory costs, you ultimately have two options: either to offer lower prices or to generate a higher margin. Here is a list of the costs to consider:

• Acquisition costs: These include laboratory equipment, furniture, IT infrastructure and all other necessary investments to get started. High-quality equipment is expensive, but can be stretched by leasing or financing models.
• Ongoing operating costs: In addition to rent, electricity and water, consumables, maintenance costs for equipment and software licenses must also be factored in. The energy consumption of laboratory technology can also play a significant role.
• Personnel costs: Labor costs make up the largest share of fixed costs in many laboratories. In addition to salaries, social security contributions, insurance and, where applicable, training costs must also be taken into account.
• Regulatory costs and insurance: Laboratories are often subject to special legal requirements that are associated with additional fees. These include official permits, certifications and liability insurance for laboratory operations.
• Unforeseen expenses: A financial cushion for emergencies is essential. Unplanned repairs, regulatory adjustments or supply bottlenecks can otherwise quickly become a financial burden.
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Pro tip: Many laboratory founders focus on the acquisition costs but forget the long-term operating costs. Plan ahead and calculate not only the investment, but also maintenance costs, consumables and energy costs over several years. Also take the issue of automation seriously. 

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Practical example: Reducing personnel costs through laboratory automation

‍Anofficial environmental laboratory was faced with a strategic decision: an experienced laboratory technician was retiring, but finding a replacement was proving extremely difficult due to the shortage of skilled workers in the region. Instead of continuing to search for a suitable specialist, the laboratory - despite initial skepticism - opted for an alternative solution: it invested in a fully automated sample preparation machine for GC-MS analysis.After the successful implementation of this technology, it turned out that the machine not only took over the tasks of the missing lab technician, but also achieved significantly more precise dilution results. In the long term, the laboratory saved an entire laboratory technician position and was able to improve the quality of the analyses at the same time. This example shows that targeted investments in automation can reduce long-term costs and compensate for staff shortages to a certain extent. 

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Step 8: Form strategic partnerships

Building a successful laboratory requires not only expertise and equipment, but also strong partnerships. By cooperating with other companies, research institutions or service providers, laboratories can exploit synergies, reduce costs and increase their competitiveness.

• Cooperation with research institutions: Universities and institutes are valuable partners for joint research projects, access to expert knowledge and possibly also for the use of specialized laboratory equipment.
• Networks with industry partners: Pharmaceutical companies, food manufacturers or environmental laboratories often have a need for specialized analyses or methods. Through strategic cooperation, your laboratory can position itself as a reliable partner
• Cooperation with equipment and chemical suppliers: Some manufacturers offer not only products, but also training, technical support and special conditions for long-term partnerships
•  Participation in trade associations and industry organizations: Memberships in laboratory or industry associations can facilitate access to market trends, funding programs and business contacts.
• Partnerships for logistics and sample handling: Depending on the type of analyses, it may make sense to work with specialized logistics service providers or external samplers to increase quality and efficiency
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Pro tip: A good network can make all the difference in the laboratory sector. Establish contacts at an early stage and examine opportunities for cooperation - be it through joint projects, shared resources or complementary services.

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‍Practical example: Cooperation between industry and analytics laboratory

A small contract analysis laboratory has had a close, historically grown partnership with a medium-sized chemical company in the immediate vicinity for many years. This long-term cooperation is based on mutual trust and brings considerable benefits for both sides: the chemical company provides the laboratory with decommissioned but fully functional analysis systems, which enables the laboratory to reduce costly new purchases. In return, the laboratory offers stable prices for analyses and short-term test capacities when the partner company needs quick results. Through this partnership, the laboratory benefits from a steady flow of orders, while the chemical company has access to a reliable local analytical service provider at all times.This example shows how strategic partnerships not only bring financial benefits, but can also ensure the long-term competitiveness and stability of a laboratory.

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Step 9: Clarify laboratory organization

Efficient organization is crucial for smooth processes in the laboratory. A clear structure not only ensures higher productivity, but also reduces sources of error and makes it easier to comply with quality and safety standards.

• Optimize workflows: Standardized processes and clear responsibilities help to make operations efficient. A well-designed laboratory management system can document and automate processes.
• Documentation and traceability: Complete documentation is essential in many laboratories. Electronic laboratory notebooks (ELN) or laboratory information and management systems (LIMS) can help to manage data centrally and prepare for audits.
• Establish quality management: Whether ISO certifications, GMP or GLP standards - a functioning quality management system ensures that laboratory processes are carried out efficiently, comprehensibly and in accordance with regulations.
• Warehousing and materials management: Consumables, chemicals and reference standards must be available at all times. A well-organized warehouse with inventory monitoring avoids bottlenecks and unnecessary costs.
• Safety and emergency concepts: In addition to general occupational safety, emergency plans for chemical accidents, power failures or technical defects are essential. Regular staff training contributes to safety in everyday laboratory work.
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‍Professional tip: Many laboratories underestimate the importance of structured equipment management. Yet analytical systems form the foundation of the company and are essential for reliable results. Introduce an asset management system at an early stage to plan maintenance, minimize downtime and extend the service life of your equipment. Some systems are even available free of charge. We recommend LabThunder as a solution for professional equipment management.

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Practical example: "Increasing efficiency through centralized management of laboratory equipment"

A medium-sized laboratory was able to increase its productivity by 30% following the introduction of an asset management system. Prior to implementation, equipment management was time-consuming and maintenance was inefficient, often leading to unnecessary equipment breakdowns. The new system centralized critical equipment knowledge and made it accessible to all employees, optimizing the handling and use of equipment.

In addition, service costs were almost halved as maintenance work was better planned and ad-hoc repairs were reduced. The central collection and analysis of operating data enabled preventive maintenance strategies, which saved further costs and improved work processes in the laboratory. This example underlines how modern technologies can contribute to a significant increase in efficiency in laboratories.

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Step 10: Meet legal and regulatory requirements

Anyone wishing to set up a laboratory must comply with a large number of legal provisions and regulatory requirements. These relate not only to laboratory operations themselves, but also to the handling of chemicals, data protection and environmental regulations.

• Business registration and legal form: Decide on the appropriate business form (e.g. GmbH, UG or sole proprietorship) and officially register your laboratory with the trade office.
• Permits and regulations: Depending on the type of laboratory, you will need different official permits. Medical or pharmaceutical laboratories are subject to particularly strict requirements.
• Occupational health and safety and safety guidelines: Compliance with occupational health and safety laws (e.g. Hazardous Substances Ordinance, Biological Substances Ordinance) is essential. Regular training for staff is mandatory.
• Environmental and disposal regulations: The handling of chemicals requires proper disposal in accordance with the applicable environmental regulations. Violations can result in severe penalties.
• Data protection and IT security: If your laboratory processes personal or business-critical data, you must comply with the GDPR and implement suitable security measures for your IT systems.
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Professional tip: We recommend the GmbH legal form as the safest choice for setting up a laboratory. It offers a limitation of liability to the share capital (at least EUR 25,000) and is recognized by business partners and authorities as a reputable corporate form. It also facilitates financing, cooperation and the conclusion of long-term contracts, which is essential for a professional laboratory environment.

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Conclusion: Successfully setting up a laboratory and surviving on the market in the long term

Setting up a laboratory is a challenging but rewarding undertaking - provided that the planning is well thought out and all key aspects are considered at an early stage. If you want to open your own laboratory, you not only have to deal with the right legal form, the selection of suitable premises and financing, but also with the right equipment, laboratory organization and quality assurance.

Competition in the laboratory sector is fierce, especially from large laboratory chains. However, specialized laboratories with excellent service, individual advice and high analysis quality still have their raison d'être. Through smart strategic partnerships, well-structured equipment management and the use of modern technologies such as LabThunder , a laboratory can remain competitive and profitable in the long term.

If you want to become self-employed as a chemist and open a laboratory, the following applies: take your time for detailed planning, analyze the market carefully and invest in a strong team and a future-proof laboratory infrastructure. This will help you avoid costly mistakes and lay the foundations for a successful business.

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We wish you every success with your start-up!