It is by no means easy to start any company, more so a biotechnology company where the barriers to entry are high and the risks are formidable. However, the goal of making a tangible difference to the lives of consumers has attracted many to the scene. Here are seven steps that most biotechnology start-ups take:
- Make absolutely sure that your idea has a true market need
- Identify founders and key personnel
- Find a good attorney and incorporate your company
- Conceive a business plan and marketing strategy
- Bootstrap until you reach proof-of-concept
- Find paying customers and/or raise seed capital
- Advance the technology through successive product development milestones
Good ideas are just that: good ideas. At this stage, it is absolutely crucial that you speak to scientists, venture capitalists and any potential customers to assess whether there is a genuine market need for your product.
Look for people who share your vision for the company, and who see themselves as stakeholders rather than just employees.
Incorporating your company protects you, the founder, from liabilities incurred by the company and makes it easier for you to raise capital through the sale of equity.
Your technology might be revolutionary, but be realistic about how much it will cost to bring your product to market, what your business model is, and whether your product is truly unique.
Don’t quit your day job! Keep your expenses low and work towards a minimum viable product.
Bootstrapping has its limits, of course. It is crucial that you are continually on the lookout for new streams of revenue.
Which brings us to our last point. It is important that you set tangible, achievable development milestones to boost investor confidence and make it easier for you to secure your next round of funding.
——
To read more, subscribe to Asian Scientist Magazine in print and receive four issues of Asian Scientist Magazine delivered directly to your mailing address for 12 months, inclusive of taxes and postage.
