How to start up a biotech company? This is how you become Rich and Iconic
Biotech is a broad term. So broad it could be the next El Dorado for smart entrepreneurs and businessmen. This cluster of companies that use technological applications, biological systems, living organisms, or derivatives, to make or modify products or processes for a specific use, has been around for some time. But don’t let that discourage you. In the business world being first to the game is not always a guarantee. There is always room for improvement. Tesla was only about 100 years late to the car game, and look at them now.
Biotech is so hot right now because the companies already involved in the industry seem to provide compelling solutions to problems, that have plagued humanity for years. Like the promise of personalized medicine, or smart molecule pharmaceuticals. And a solution is exactly what your company should bring to the table if you want to turn it into the next unicorn in the business.
How do you start and develop a biotech company? And what is the easiest path to success for a new entrepreneur or investor?
Well, we are going to talk about all that and much more, but first, let’s talk about motivation and how can such an enterprise bring you not only recognition but also a lot of cash.
The first and most compelling argument for most people is money. But what is it about the money in biotech that makes this industry so alluring? To put it simply, Pfizer spent over $600 mil in the last few years investing in biotech companies and startups and is not the only pharmaceutical giant to do so. And this is just the beginning for biotech and bioengineering medical applications. But apart from healthcare, Biotechnology operates in other three major industrial areas, crop production and agriculture, non-food (industrial) uses of crops, and environmental products (biodegradable plastics, vegetable oil, or biofuels).
With such a wide area of industrial uses, starting up a biotech company could be the best business tip you ever got. Whether you start your company out of a passion for science and technology, because you want to help the world, or just to grow it and sell it at the right time, there will be no better time to do so than right now. It’s true that there are a lot of biotech companies in the world, that put out tonnes of products, but volume is not everything.
If I were to ask you what country is the main manufacturer of goods in the world, you would be quick to respond that China. And rightfully so. But in comes the "volume is not everything" part, China is manufacturing goods using precision machinery that it buys from Germany. And that comes at a price.
There are a multitude of ideas and areas that your future company can exploit when entering the biotech industry. Choose any of the respective fields, but make sure you come up with a great idea and build up enough motivation to strive and struggle your way to the top.
1. Start off with a great idea
Easier said than done, but there is some method behind the madness of coming up with a great idea that can stand behind a biotech company.
Prioritize the field that you are more passionate about, or that you find more lucrative, and narrow down your search to that area.
A great idea is always an easy and simple solution to something that people encounter daily but don’t invest enough time to find a quick fix. And here is where you come in.
Dedicate enough time and creativity to systematically go through your possible business segment, and look for the common things that people have not addressed yet.
Make sure there is a market for your product. The fact that you find it very useful, doesn’t mean that other people will have a need for it. It is important to focus your searches on things that are simple, that you are passionate about, and on products or services that provide a good revenue model from the very beginning. Treat this carefully. Not finding the correct motivation and drive will not end well.
2. Plan every step
Before you think about how your idea is going to make you a rich and influential entrepreneur, think about how you can organize your steps. As with all startups, being organized and efficient will help you better visualize the road ahead and point out any potential problems. People have been doing this for ages. It’s called a business plan. And although it sounds boring, having a good business plan will help you get a clearer view of your strategy. A good plan will check the following boxes:
- What the market needs
- How your product is going to solve that need?
- How much money your product needs to attract?
- How will the money you attract be spent?
- The details of early product development and testing and the key personnel that will handle it.
- What return will the investors have, alongside an exit plan?
You need to be the first one convinced that this plan is viable, so rushing or expediting any of the points is not a valid option. What you need to take into account is that there are attorneys that specialize in helping entrepreneurs put together plans such as this. So if you feel like writing a business plan is not your best asset, you can turn to professionals. Just remember that when it comes to pitching and upholding your plan the best professional you can turn to is yourself.
3. How to attract investment?
To grow and launch your idea you will need to monetize it. That is to attract investors that are interested in financing your new venture. Research and development of any new product will cost a pretty penny. For example, depending on the level of testing required, developing a new drug can set your company back $10-15 million and in some cases much, much more. This is not a step you should miss, even if you have the money to do it yourself. And the explanation is simple. If your product can not convince investors, it will be equally flawed in attracting customers. But neither of those are things that you can do on your own. Bringing on board good people will be critical to your companies success. So, first try to look for partners that can help you put your idea onto paper, visualize it and work out the cost factor behind it.
This will be your first leadership test. You need to identify people and understand their interest and commitment to the future of the company. Not everybody you need at this stage is interested in working full time or becoming a partner, and not all people that want to become partners should be equally compensated. Be careful when choosing the people you start with. They will influence the way and speed your company and product develops.
To attract the investment needed for developing your promising idea, be it a new drug, or a groundbreaking research tool, you need to put together a team with at least minimum biotech experience. That should give you an idea about how a startup biotech company works. And that is not all. You also need to patent your idea and have the intellectual rights to it. No investor will risk money if you can not prove you own the rights to the very thing you are trying to sell.
Last but not least, you need some kind of proof of principle. A working example, or preliminary test, will go a long way into convincing your potential backers that your product is legit, and can be marketed as it appears in your presentations.
4. The easy path to success
After you’ve secured funding your main concern should be to develop and launch the product. As with any startup company, you need a very tight and efficient calendar to make sure that happens fast enough and that investors don’t start losing their patience. This is the part where new companies tend to fail by not delivering on term and start trading confidence for time.
To avoid being caught up in the emotional and creative roller-coaster that is dealing with unhappy investors and disappointed distributors, try to set up and negotiate intermediate development steps that are to your advantage. It is easier to convince an investor of the importance of reaching an intermediate product development milestone than to ask him to pour money into your business for an extended period of time without seeing any results.
Setting up product development steps makes everything easier to manage. Each of them will mean a deadline for a different part of your product development. These need to be completed at the same time as product testing. For example, you can set a deadline for finding the best wrap design and continue testing and upgrading your product's capabilities at the same time.
This will not only take away some of the stress and pressure on your way to your final goal but also give your team and investors more insight and a positive attitude.
5. Start online first
The best way to start up a biotech company is keeping it all online at first. You will need your team to help you send the right message to would-be distributors and consumers. You will also need to approach various distributors early, and tell them all about your project. It will give you room to come back and negotiate a contract once your product nears completion, and you have mustered enough hype around it.
There will be plenty of time for the brick and mortar side of your business. For the moment, you need to concentrate on looking professional, trustworthy and innovative, online.
Don’t expect people to just appear out of thin air. The fact that you found am investor, means your idea is good. But, an idea is never so good that it is able to market itself.
Make a complete list of strengths and potential side effects, especially if your biotech product is a new drug or supplement. Use professional video support and devise a marketing plan. This would be a great time to bring a marketing person on board, or at least consult one when making decisions. Maybe one with previous biotech experience.
If things are running smoothly enough you can even keep your current job, until you make the final tweaks, and see how the product fairs on the open market. Just make sure you use all your positive drive and commitment to the project you’ve worked so hard on.
Biotech still expands at about 3,5% a year and there is a lot of money to be made in this industry sector for daring iconic individuals with great ideas and awesome work drive.
Biotechnology is one of the most active fields of research and development, and the market size alone, measured by revenue, is around $112.4bn in 2019. So if you are done fantasizing about having your own business someday, start right now by doing something about it. Use our detailed advice and set out on the road to becoming rich and iconic, while doing something you are passionate about.
Biotech is so hot right now because the companies already involved in the industry seem to provide compelling solutions to problems, that have plagued humanity for years. Like the promise of personalized medicine, or smart molecule pharmaceuticals. And a solution is exactly what your company should bring to the table if you want to turn it into the next unicorn in the business.
How do you start and develop a biotech company? And what is the easiest path to success for a new entrepreneur or investor?
Well, we are going to talk about all that and much more, but first, let’s talk about motivation and how can such an enterprise bring you not only recognition but also a lot of cash.
Why would you want to get into Biotech?
The first and most compelling argument for most people is money. But what is it about the money in biotech that makes this industry so alluring? To put it simply, Pfizer spent over $600 mil in the last few years investing in biotech companies and startups and is not the only pharmaceutical giant to do so. And this is just the beginning for biotech and bioengineering medical applications. But apart from healthcare, Biotechnology operates in other three major industrial areas, crop production and agriculture, non-food (industrial) uses of crops, and environmental products (biodegradable plastics, vegetable oil, or biofuels).
With such a wide area of industrial uses, starting up a biotech company could be the best business tip you ever got. Whether you start your company out of a passion for science and technology, because you want to help the world, or just to grow it and sell it at the right time, there will be no better time to do so than right now. It’s true that there are a lot of biotech companies in the world, that put out tonnes of products, but volume is not everything.
If I were to ask you what country is the main manufacturer of goods in the world, you would be quick to respond that China. And rightfully so. But in comes the "volume is not everything" part, China is manufacturing goods using precision machinery that it buys from Germany. And that comes at a price.
There are a multitude of ideas and areas that your future company can exploit when entering the biotech industry. Choose any of the respective fields, but make sure you come up with a great idea and build up enough motivation to strive and struggle your way to the top.
How do you start and develop a biotech company?
1. Start off with a great idea
Easier said than done, but there is some method behind the madness of coming up with a great idea that can stand behind a biotech company.
Prioritize the field that you are more passionate about, or that you find more lucrative, and narrow down your search to that area.
A great idea is always an easy and simple solution to something that people encounter daily but don’t invest enough time to find a quick fix. And here is where you come in.
Dedicate enough time and creativity to systematically go through your possible business segment, and look for the common things that people have not addressed yet.
Make sure there is a market for your product. The fact that you find it very useful, doesn’t mean that other people will have a need for it. It is important to focus your searches on things that are simple, that you are passionate about, and on products or services that provide a good revenue model from the very beginning. Treat this carefully. Not finding the correct motivation and drive will not end well.
2. Plan every step
Before you think about how your idea is going to make you a rich and influential entrepreneur, think about how you can organize your steps. As with all startups, being organized and efficient will help you better visualize the road ahead and point out any potential problems. People have been doing this for ages. It’s called a business plan. And although it sounds boring, having a good business plan will help you get a clearer view of your strategy. A good plan will check the following boxes:
- What the market needs
- How your product is going to solve that need?
- How much money your product needs to attract?
- How will the money you attract be spent?
- The details of early product development and testing and the key personnel that will handle it.
- What return will the investors have, alongside an exit plan?
You need to be the first one convinced that this plan is viable, so rushing or expediting any of the points is not a valid option. What you need to take into account is that there are attorneys that specialize in helping entrepreneurs put together plans such as this. So if you feel like writing a business plan is not your best asset, you can turn to professionals. Just remember that when it comes to pitching and upholding your plan the best professional you can turn to is yourself.
3. How to attract investment?
To grow and launch your idea you will need to monetize it. That is to attract investors that are interested in financing your new venture. Research and development of any new product will cost a pretty penny. For example, depending on the level of testing required, developing a new drug can set your company back $10-15 million and in some cases much, much more. This is not a step you should miss, even if you have the money to do it yourself. And the explanation is simple. If your product can not convince investors, it will be equally flawed in attracting customers. But neither of those are things that you can do on your own. Bringing on board good people will be critical to your companies success. So, first try to look for partners that can help you put your idea onto paper, visualize it and work out the cost factor behind it.
This will be your first leadership test. You need to identify people and understand their interest and commitment to the future of the company. Not everybody you need at this stage is interested in working full time or becoming a partner, and not all people that want to become partners should be equally compensated. Be careful when choosing the people you start with. They will influence the way and speed your company and product develops.
To attract the investment needed for developing your promising idea, be it a new drug, or a groundbreaking research tool, you need to put together a team with at least minimum biotech experience. That should give you an idea about how a startup biotech company works. And that is not all. You also need to patent your idea and have the intellectual rights to it. No investor will risk money if you can not prove you own the rights to the very thing you are trying to sell.
Last but not least, you need some kind of proof of principle. A working example, or preliminary test, will go a long way into convincing your potential backers that your product is legit, and can be marketed as it appears in your presentations.
4. The easy path to success
After you’ve secured funding your main concern should be to develop and launch the product. As with any startup company, you need a very tight and efficient calendar to make sure that happens fast enough and that investors don’t start losing their patience. This is the part where new companies tend to fail by not delivering on term and start trading confidence for time.
To avoid being caught up in the emotional and creative roller-coaster that is dealing with unhappy investors and disappointed distributors, try to set up and negotiate intermediate development steps that are to your advantage. It is easier to convince an investor of the importance of reaching an intermediate product development milestone than to ask him to pour money into your business for an extended period of time without seeing any results.
Setting up product development steps makes everything easier to manage. Each of them will mean a deadline for a different part of your product development. These need to be completed at the same time as product testing. For example, you can set a deadline for finding the best wrap design and continue testing and upgrading your product's capabilities at the same time.
This will not only take away some of the stress and pressure on your way to your final goal but also give your team and investors more insight and a positive attitude.
5. Start online first
The best way to start up a biotech company is keeping it all online at first. You will need your team to help you send the right message to would-be distributors and consumers. You will also need to approach various distributors early, and tell them all about your project. It will give you room to come back and negotiate a contract once your product nears completion, and you have mustered enough hype around it.
There will be plenty of time for the brick and mortar side of your business. For the moment, you need to concentrate on looking professional, trustworthy and innovative, online.
Don’t expect people to just appear out of thin air. The fact that you found am investor, means your idea is good. But, an idea is never so good that it is able to market itself.
Make a complete list of strengths and potential side effects, especially if your biotech product is a new drug or supplement. Use professional video support and devise a marketing plan. This would be a great time to bring a marketing person on board, or at least consult one when making decisions. Maybe one with previous biotech experience.
If things are running smoothly enough you can even keep your current job, until you make the final tweaks, and see how the product fairs on the open market. Just make sure you use all your positive drive and commitment to the project you’ve worked so hard on.
Biotech still expands at about 3,5% a year and there is a lot of money to be made in this industry sector for daring iconic individuals with great ideas and awesome work drive.
Biotechnology is one of the most active fields of research and development, and the market size alone, measured by revenue, is around $112.4bn in 2019. So if you are done fantasizing about having your own business someday, start right now by doing something about it. Use our detailed advice and set out on the road to becoming rich and iconic, while doing something you are passionate about.
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Loves to play with new ideas, binge writing, traveling and gourmet coffee. Professional writer of non fiction with over 8 years experience in putting words to paper. Fan of iconic movies, sports, The Arctic Monkeys and city breaks. Yes, he knows how good his coffee is.