Starting a company and becoming an entrepreneur has become a pinnacle of success in today’s age, and rightly so. With so many successful leaders out there motivating others to take the plunge and numerous online content teaching how to become one, it all looks easy. When in fact, it is far from the things like comfort, easy, and smooth sailing.
For once, starting a company requires a significant amount of planning. More than that, you need to ensure that all the events converge and happen at the right time. There is so much to be established during your company’s initial years that the grind itself can be challenging but very rewarding if things work as planned.
Now, unless you are a serial entrepreneur, you would be familiar with the process of starting a company and the amount of resources it requires. Otherwise, if you are new to the playfield, then you are not expected to know everything – it is more of a process and often includes failures in some parts of your journey as an entrepreneur.
Worry not! We have got it covered for you about the essentials steps required for you to start a biotechnology company.
Step 1: Determine the Market Need
This is an absolute must before you dive head-on into the game of startups. Determine whether there is a market need in the first place. Your idea, goals, and objectives you wish to achieve from your company should match the market value and demand. Good ideas are just ideas until they have a specific demand or need within the respective marketplace. You could bring in a revolutionary product, but if the consumer does not find the need to purchase, then it is as good a failed idea.
This is why, be absolutely sure that there is a real market need for your product or service, if not at the moment, then in the long run. Which is why an extensive planning is going to save you future failures.
Other than the market value and need, you need to be sure the technology of interest is protected by IP, also known as ‘Intellectual Property.’ Not just this, you need to make sure that your assets, IP rights, and commitments from the investors and key personnel are going to support your venture.
Once the main players, resources, and assets are locked and solidified, then you can move on to the next step of expanding your startups.
Step 2: Identify Key Members and Founders
Great and reliable people who would commit to a new startup’s vision and longer-term plan are hard to find. This is one of the most crucial steps of starting a biotech company. Identifying the right people for your business is not an easy feat. In fact, it takes much from you, as the wrong appointed people can do more harm than good to a company that hasn’t even taken off the ground. So, carefully identify these people and remember that not everyone showing interest is a great fit to be a founder, and not every founder requires equal compensation.
There is more to the identification of crucial personnel than what has been explained here. According to your requirements and need to have a group of founders on board, you need to devise a proper strategy and a place for everyone.
Step 3: Find a Good Attorney and Biotech Consultant Firm
An attorney and a great consultant firm are key partners that you will be going to for advice, guidance, counsel, management-related help, and of course, for legal answers. These two parties will help you navigate through the corporate and business issues during all stages of your company.
Considering during the initial stages of your company, you would have these two people as your constant support; you are required to choose wisely—a professional or a team of professionals with many years of expertise in advising startup biotechnology companies. A great biotech consulting firm will ensure all your concerns are met and catered to with expert solutions.
Step 4: Incorporate Your Company as a C Corporation
Once your founders, including the right biotech consultant, have been decided and done with. You then need to move on to the part where you raise enough money or secure federal SBIR (Small Business Innovative Research) grants.
There are many reasons to incorporate early; one of the reasons being that you get the chance to issue founders stock without having to pay hefty sums of money for the shares as the valuation of the company at this stage is extremely low.
As you must know, normally, the companies start as an LLC and then later move to a Delaware C Corporation. The corporate laws are more favourable toward the C Corporation. Once you gain traction and begin to have investors start investing in, biotech companies should become C Corporations.
Step 5: Devise a Winning Marketing and Business Strategy
Any company, let alone a startup cannot survive if there isn’t a proper money-making plan in place. It is impossible to create a money flow without having a well-curated business plan in place. If you have the market need down to the last letter and believe that your product is in high demand along with the money that it will be generating, you are on the right track.
This is one of the many places a great biotech consulting firm will come in handy – they will help you determine the best course of a business action plan for your startup and also help you lay solid foundations.
Step 6: Operate on Virtual Basis
When you are in the early stages of your startup, it is advised not to risk it all and play it safe initially. How can you do that? Keeping your organization virtual and not have a physical presence. This way, you are not risking your organization with additional expenses without having all the other necessary foundations in place.
Not to mention you also save a massive amount on renting and other bills. In today’s digital age, if you have a computer, a fast internet connection, and the necessary devices, that includes a smartphone.
Step 7: Keep Growing After Receiving Seed Capital
Your progress doesn’t stop at one point. When you are a startup and have enough capital and funds, you need to keep investing in your company. If the investment translates into acquiring new technologies to further the projects and scope of those projects, or you are to plug in your money in other marketing-related activities – you are required to do that without question.
It is great and ideal to have investors see the companies they invested in make steady progress along with a sharp development pathway planned. But what is more important is meeting the timely milestones and then identifying additional needs at the right time, and invest when the time calls.
Once you start making the right decisions of investments, the growth and positive results are certain.
So there you have it. These are the seven steps that are crucial in order to start a biotech company. Of course, they are not in the order defined and can be followed according to your own growing need.
Paul M Stevens is an experienced digital marketer with a passion for building brands and giving them the recognition they deserve within the marketplace. He also dabbles in blog writing and is an expert copywriter.