Should You Go for a Lab Franchise or Set Up Your Own Lab?

Adding a diagnostic lab to your OPD practice is a smart move. It improves patient convenience and increases your clinic’s income. But the big question is—should you go for a lab franchise (authorized collection center) or start your lab?

Let’s help you decide with a simple comparison.

✅ Benefits of Taking a Lab Franchise

Also known as an authorized collection center, a lab franchise offers many advantages:

Brand Recognition and Trust: Patients often feel more confident giving samples to a well-known lab name.
Low Investment and Risk: You don’t need to invest in expensive lab machines or hire lab technicians.
Quick Setup: Most franchises provide training, a working system, and ready logistics.
No Compliance Worries: The main lab handles NABL accreditation, biomedical waste disposal, and quality control.
Tech Support: Franchises offer digital systems for test bookings, report sharing, and records.

❌ Disadvantages of a Lab Franchise

While it’s easy to start, there are a few downsides:

Lower Profit Margins: You earn a commission per test (usually 20-40%), not the full amount.
Less Control: Pricing, test timing, and even service quality depend on the franchise lab.
Reputation Risk: If the main lab’s brand gets affected, your center may also lose trust.

✅ Advantages of Setting Up Your Diagnostic Lab

Running your lab gives you full control and higher profits:

Better Profit Margins: You keep 100% of the revenue from each test.
Control Over Operations: You decide pricing, test list, quality, and turnaround times.
Business Growth: You can market your lab services beyond your OPD patients and reach the wider community.

❌ Challenges of Starting Your Lab

Starting from scratch has its hurdles:

High Initial Investment: You’ll need to buy lab equipment, set up space, and hire experienced lab staff.
Regulatory Burden: NABL accreditation, biomedical waste rules, and government approvals are your responsibility.
Quality and Compliance: You must maintain quality control and hire trained professionals to ensure accurate results.

🩺 What Should You Choose?

If you are just starting, or if you don’t have much capital or lab experience, taking a lab franchise is a safe and easy option.

However, if your OPD gets many patients daily, and you want to build a long-term diagnostic business, setting up your own lab gives better returns over time.

📣 Ready to Take the Next Step?

Whether you choose a lab franchise or want to build your diagnostic lab, make sure to think about your clinic size, patient volume, budget, and future goals. If you’re unsure, we’re here to guide you.

To register for our next masterclass please click here https://linktr.ee/docpreneur