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Key Takeaways
- Success hinges on managing high fixed costs, totaling over $112,000 monthly in 2026, while rigorously maintaining the targeted Gross Margin above 85%.
- Aggressively increasing Practitioner Capacity Utilization above the initial 57% average is the primary lever to accelerate the 26-month timeline to profitability, projected for February 2028.
- The financial model requires significant capital runway to cover the projected negative cash flow period before achieving the Year 3 EBITDA target of $435,000.
- Operational efficiency must be tracked weekly via Total Tests Performed and ARPT ($177 average), while financial health requires monthly validation of the Gross Margin Percentage.
KPI 1 : Total Monthly Tests Performed
Definition
Total Monthly Tests Performed shows your operational throughput and how deep you are penetrating the market. It’s simply the sum of every DNA analysis completed across all your client segments, like healthcare screening or agricultural verification. This number is the fundamental measure of your service delivery volume.
Advantages
- Directly measures market penetration and physical service delivery scale.
- It is the primary input for calculating total monthly revenue potential.
- Drives capacity planning; you can’t schedule practitioners without knowing required volume.
Disadvantages
- Volume alone doesn't tell you if you're charging enough (ignores Average Revenue Per Test).
- It masks profitability issues if variable costs per test are too high.
- Focusing only on volume can lead to accepting low-value jobs just to boost the count.
Industry Benchmarks
For specialized, on-site diagnostic services, there isn't a universal benchmark for raw test volume; it depends entirely on your practitioner density and service area size. What matters more is the growth rate. You must show consistent, aggressive month-over-month increases to prove scalability, especially when targeting ~493 tests/month by 2026.
How To Improve
- Aggressively scale practitioner hiring to unlock more available service slots.
- Improve Practitioner Capacity Utilization Rate to ensure existing staff are fully booked.
- Target specific, high-volume client types, like corporate wellness programs, for large batch orders.
How To Calculate
To find your total monthly volume, you sum the tests performed across every service line you offer. This ensures you capture the full operational scope, whether it’s a quick agricultural verification or a complex healthcare screening.
Example of Calculation
Say in a given month, you completed 310 tests for healthcare clients and 183 tests for agricultural clients. You add these two figures together to get your total operational volume for that period.
Tips and Trics
- Review this metric weekly; waiting a month means you miss critical growth dips.
- Segment the results by service line to see which vertical is driving volume growth.
- If utilization is below 57%, increasing practitioner count won't help revenue much.
- Your 2026 starting goal is 493 tests; track your actual performance against that baseline defintely.
KPI 2 : Average Revenue Per Test (ARPT)
Definition
Average Revenue Per Test (ARPT) tells you exactly how much money you collect, on average, for every single DNA analysis you complete. This metric is crucial because it measures your pricing power and the quality of your client mix. If volume is high but ARPT is low, you’re busy doing low-value work.
Advantages
- Directly reflects success in selling premium services.
- Shows if you are shifting volume toward higher-paying segments.
- Helps forecast revenue stability independent of raw test volume fluctuations.
Disadvantages
- Can hide poor operational efficiency if high prices cover high variable costs.
- Averages obscure the specific profitability of individual service lines.
- It’s backward-looking; it doesn't predict future pricing acceptance.
Industry Benchmarks
For specialized, on-site diagnostic services, ARPT benchmarks vary widely based on regulatory burden and speed guarantees. For this business, the 2026 target average of ~$177 sets the immediate internal benchmark. Falling below this suggests a mix shift toward less profitable, perhaps routine, testing jobs.
How To Improve
- Aggressively push the high-value Research Support segment, priced at $400/test.
- Implement tiered pricing structures based on required turnaround time (TAT).
- Review and potentially raise prices on standard Healthcare Clinic screenings if utilization is high.
How To Calculate
To find your ARPT, you divide your total income generated in a period by the total number of analyses you completed in that same period. This calculation is simple but powerful for tracking revenue quality.
Example of Calculation
Imagine your first full month in 2026. You brought in $87,500 in total revenue while your practitioners completed 493 tests. Here’s the quick math to see if you hit the target:
This result lands right on the $177 target, showing good initial pricing alignment with volume goals.
Tips and Trics
- Track ARPT segmented by service line (e.g., Agri vs. Wellness).
- If utilization nears 80%, use that leverage to test price increases.
- Watch out for 'low-hanging fruit' clients that pull the average down.
- Ensure pricing models correctly capture the practitioner's travel time cost; defintely do this before scaling.
KPI 3 : Practitioner Capacity Utilization Rate
Definition
Practitioner Capacity Utilization Rate shows how efficiently you use your mobile testing teams. It measures the actual number of DNA analyses performed against the maximum number of tests your practitioners could complete in a given period. Getting this right means you're maximizing revenue from your fixed overhead, like practitioner salaries and device maintenance.
Advantages
- Pinpoints wasted time when practitioners aren't testing.
- Shows how quickly fixed costs are covered by revenue generation.
- Guides hiring decisions to meet demand without overstaffing.
Disadvantages
- Focusing only on volume can encourage rushed, low-quality service.
- It might mask inefficiencies in routing or client scheduling.
- It doesn't account for non-billable but necessary administrative time.
Industry Benchmarks
For specialized, high-touch field services like on-site diagnostics, utilization benchmarks vary widely based on travel time allocation. A starting point of 57%, as seen in 2026 projections, is common when scaling up new routes. The goal of reaching 80% utilization by 2030 is aggressive but necessary to achieve strong operating leverage in this model.
How To Improve
- Implement dynamic routing software to cut non-billable travel time.
- Tie practitioner bonuses directly to achieving monthly utilization targets.
- Prioritize securing anchor clients in specific zip codes for density.
How To Calculate
You calculate this by dividing the actual number of tests completed by the total number of tests your team could have done if every practitioner worked at 100% capacity for the entire month. This metric is key because your fixed costs—like the salaries for your certified practitioners—don't change if utilization moves from 50% to 75%.
Example of Calculation
Say you have 10 practitioners, and each one can realistically perform 200 tests per month, setting your Maximum Possible Tests at 2,000. If your team only completes 1,140 tests in a given month, your utilization is 57%. We need to push that denominator higher to cover the $112,492 monthly operating expense burn.
Tips and Trics
- Review utilization weekly, not just monthly, to catch scheduling gaps fast.
- Ensure your 'Max Possible Tests' calculation includes realistic travel buffers.
- Track utilization by individual practitioner to spot training needs.
- If utilization hits 95%, you probably need to hire the next practitioner defintely.
KPI 4 : Gross Margin Percentage (GM%)
Definition
Gross Margin Percentage (GM%) shows how much money you keep from sales after paying for the direct costs of delivering that service. It’s the purest measure of your core service profitability. For GeneGo Diagnostics, this metric tells you if the fee-for-service model is fundamentally sound before overhead hits.
Advantages
- Shows true unit economics before fixed costs apply.
- Directly links operational efficiency to margin health.
- Helps assess pricing power versus cost control effectiveness.
Disadvantages
- Ignores fixed overhead, potentially masking overall losses.
- Can be misleading if COGS definitions aren't strictly applied.
- A high GM% doesn't guarantee market viability or sales volume.
Industry Benchmarks
For specialized, high-touch service delivery like on-site analysis, margins must be high to cover practitioner travel and specialized equipment amortization. We are targeting maintaining GM% above 85%. This aggressive target reflects the premium pricing for speed, though the 2026 starting point is noted at 870%, which suggests a specific internal accounting treatment for that year.
How To Improve
- Negotiate volume discounts on primary testing reagents quarterly.
- Implement preventative maintenance schedules to lower emergency repair costs.
- Review practitioner travel and logistics costs monthly to insure they stay outside COGS.
How To Calculate
Gross Margin Percentage is calculated by taking total revenue, subtracting the Cost of Goods Sold (COGS), and dividing that result by the total revenue. COGS here primarily includes direct costs like reagents and necessary equipment maintenance tied directly to running the test.
Example of Calculation
If GeneGo Diagnostics generates $177,000 in revenue in a month, and the direct costs (reagents and maintenance) total $15,000, the gross profit is $162,000. This calculation shows the core profitability before factoring in fixed overhead like salaries or rent.
Tips and Trics
- Track reagent cost per test daily, not just monthly.
- Ensure maintenance contracts are clearly separated from variable COGS.
- If GM% dips below 85%, immediately review the last 30 days of supply chain invoices.
- Use the Average Revenue Per Test (ARPT) of $177 to model margin impact of segment mix shifts.
KPI 5 : Variable Cost Per Test
Definition
Variable Cost Per Test (VCPT) measures how efficiently you use inputs that change with volume, like supplies and direct sales costs. It tells you the direct cost tied to delivering one DNA analysis. Keeping this low is crucial for scaling profitability, especially since your target starts at 20% of revenue in 2026.
Advantages
- Pinpoints exact cost drivers for each service delivery, separating them from fixed overhead.
- Directly impacts the contribution margin on every test performed, showing true unit profitability.
- Highlights immediate savings opportunities when negotiating reagent and calibration contracts.
Disadvantages
- Ignores fixed overhead costs like core lab equipment depreciation or administrative salaries.
- Can be misleading if marketing spend is misclassified as variable when it’s actually brand building.
- A low VCPT doesn't guarantee overall business success if Practitioner Capacity Utilization Rate is low.
Industry Benchmarks
For specialized diagnostic services, variable costs often range from 15% to 35% of revenue, depending heavily on reagent costs and commission structures. High-throughput labs might see this dip below 15% due to massive volume discounts on consumables. If your VCPT consistently exceeds 30%, you’re likely paying too much for direct inputs relative to your Average Revenue Per Test (ARPT) of $177.
How To Improve
- Negotiate volume discounts with reagent suppliers based on projected annual test volume targets.
- Review calibration schedules quarterly to ensure maintenance isn't over-servicing the portable devices.
- Optimize practitioner routing to reduce travel time, which lowers effective commission or mileage costs per test.
How To Calculate
You calculate this by summing up all costs that fluctuate directly with the number of tests performed and dividing by the total tests completed in that period. This gives you the variable cost dollar amount associated with one unit of service.
Example of Calculation
Let's assume in 2026 your Average Revenue Per Test (ARPT) is $177, and you are tracking toward the target VCPT of 20%. This means your target variable cost per test is $35.40. If, for a given month, your total reagents, calibration, commissions, and marketing equaled $18,000 across 507 tests, here’s the quick math to see if you hit the target:
This result of $35.50 is slightly over the $35.40 target, meaning you need to find $100 in savings across those 507 tests to meet the 20% goal.
Tips and Trics
- Track reagent cost per test segment-by-segment (e.g., Agri vs. Health).
- Ensure marketing spend is clearly tied to specific test acquisition costs, not general awareness.
- Build vendor contracts that automatically trigger lower pricing tiers at volume milestones.
- If onboarding takes 14+ days, churn risk rises, defintely impacting the denominator (Total Tests) unfairly.
KPI 6 : Monthly Operating Expense (OpEx) Burn
Definition
Monthly Operating Expense (OpEx) Burn shows how much cash you spend monthly just to exist, before accounting for variable costs like reagents. It combines your fixed overhead costs with all employee wages. Tracking this number is crucial because it sets the baseline cost you must cover before you make a single dollar of profit. For GeneGo Diagnostics, this is the cost of maintaining the labs, paying the core team, and keeping the mobile units ready to deploy.
Advantages
- Shows the true baseline cash requirement each month, regardless of sales volume.
- Directly measures progress toward achieving operating leverage by scaling revenue over fixed costs.
- Allows precise calculation of the revenue volume needed to cover fixed costs and reach break-even.
Disadvantages
- It ignores variable costs, potentially masking poor unit economics if revenue grows slowly.
- If revenue growth stalls, this fixed number quickly becomes a dangerous cash drain on runway.
- Wages are often sticky; cutting staff takes time, making this figure hard to reduce quickly.
Industry Benchmarks
For high-growth, asset-light service models like portable diagnostics, successful companies aim to keep OpEx Burn below 20% of projected revenue once they hit scale. Early stage, this ratio will be much higher, but the goal is rapid dilution of this fixed cost base. If your burn is over 40% of revenue for too long, you’re defintely overstaffed or underpricing your fee-for-service analysis.
How To Improve
- Strictly enforce the target of keeping total monthly burn stable at $112,492 through 2026.
- Drive Practitioner Capacity Utilization Rate up toward 80% to spread those fixed costs over more tests performed.
- Scrutinize every non-essential fixed contract (software, office space) for immediate reduction opportunities before hiring more staff.
How To Calculate
You calculate the Monthly OpEx Burn by summing up all costs that do not change based on the number of DNA tests you run that month. This is your true fixed cost floor. It must include all salaries, even if practitioners are only partially utilized.
Example of Calculation
If your fixed overhead (rent, utilities, core software licenses) totals $45,000, and total monthly wages (salaries plus benefits) are $67,492, your burn is calculated as follows. This matches the 2026 target baseline.
Tips and Trics
- Review the actual burn against the $112,492 target every single month without fail.
- Ensure wages include all associated costs like payroll taxes and benefits, not just base salary.
- If utilization dips below the target 57%, immediately freeze non-essential hiring to protect the burn rate.
- Define fixed costs strictly; marketing spend tied to volume is variable, not part of this fixed OpEx calculation.
KPI 7 : Months to Breakeven
Definition
Months to Breakeven (MTBE) tells you exactly how long your startup will operate at a loss before its monthly profits cover all prior losses. It’s the finish line for the initial cash burn phase. For GeneGo Diagnostics, the current projection shows reaching this point in 26 months, specifically February 2028.
Advantages
- Sets a clear, hard deadline for achieving operational self-sufficiency.
- Forces management to focus on contribution margin dollars, not just revenue growth.
- Directly informs fundraising needs and the required cash runway.
Disadvantages
- It relies heavily on accurate, stable contribution margin forecasts.
- It can mask underlying operational inefficiencies if utilization is low.
- It doesn't account for future capital expenditures needed post-breakeven.
Industry Benchmarks
For venture-backed service businesses like this, reaching breakeven in under 30 months is often considered successful, though this varies based on initial capital raised. If your MTBE extends past 48 months, investors will question the efficiency of the operating model and the path to positive cash flow.
How To Improve
- Aggressively increase practitioner utilization rate toward the 80% target.
- Negotiate better volume pricing on reagents to boost contribution margin per test.
- Focus sales efforts on high-value segments, like Research Support at $400/test, to increase monthly contribution dollars faster.
How To Calculate
This metric requires knowing your total accumulated deficit and how much profit each month contributes toward erasing that deficit. The review cadence for this metric should be quarterly to track acceleration efforts.
Example of Calculation
Here’s the quick math showing how improving utilization impacts the timeline. If the total cumulative loss needing to be covered is $3 million, a
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Frequently Asked Questions
The most critical metrics are Practitioner Capacity Utilization, Gross Margin % (starting at 870%), and Months to Breakeven (currently 26 months) Focus on scaling tests performed (starting at ~493/month in 2026) while controlling the $112k monthly fixed operating expense