Steps To Starting A Biotech Company- A Guide For Entrepreneurs
Starting a biotech company is very hard. There are a lot of things that go into setting up a biotech company. Hence I have tried making a business guide for you if you are looking to open a biotech company. #ThinkWithNiche
Biotechnology is a unique industry that offers a huge opportunity for entrepreneurs. It’s a massive industry with countless business ideas that you can choose from. But unlike other industries, biotech is a knowledge-based industry since it depends on the very specific field of biology, physics, and chemistry. One cannot simply decide and venture into this business. There are many important things to think about before one decides to step into this industry.
Since biotech depends on the study and development of living microorganisms, you must take care of a few things before you set up your own biotech business. You can’t rush into things as it will result in a massive catastrophe, sooner or later. So we have prepared a guide which will give you an idea about the various aspects you must take care of before venturing into this industry.
1. Research Your Idea
One day you bang your head on the wall and out comes a wonderful idea. But you just can’t go to the respective institutions and register your company. First, you’re going to have to thoroughly research your idea just to see whether it already exists or not. Biotech companies run on certain specified formulas and if your formula already exists in the market, you will have to pay a certain fee to the individual or entity that owns the idea to run your business. And if your formula is indeed an original one, then you should hurry and get it patented so that no one can steal it from you for free. This is how it is.
2. Read The Pulse Of The Market
All good ideas don’t turn into good business. You will have to make peace with this fact. Unless your idea fulfills the need or requirement of the market and has substantial scope for demand, then only your business will bear profits. Be absolutely sure of the fact that there is some real demand for the product your company will be producing otherwise it’s probably best to not go ahead with your idea and look for something else.
3. Get Necessary Permits And Licenses
Like every possible business, you will have to secure a few permits and licenses before venturing into this business. Biotech is quite a complicated field that deals with public health on a mass level and because of that, the Government doesn't allow everyone to open a biotech company. This is why there are certain requirements and standards that you will have to meet first to venture into this business. Medical products are heavily regulated and checked for quality and thus before anything, you’ll have to get certain specific permits and licenses. Only after you secure them will you be allowed to run a biotech company.
4. Build A Good Team
Biotech companies require not only a marketing team or management team, but also requires a talented bunch of academic researchers and developers. Since biotech products have certain specified formulas, you have to have a talented research team in place. They will also make sure that your idea isn’t too far-fetched or something that already exists. So get a good research team and the rest will automatically follow.
5. Choose A Competent Business Model
You aren’t running an NGO therefore you will have to come up with a business strategy that suits your company. Biotech is a tricky business, as you would have figured out already, so you cannot be careless in this regard. A major decision that you and your company will have to make is whether to produce and distribute the product on your own or join hands with another company and distribute the work accordingly. Once you make this decision, it’ll be easy to take care of the marketing of the product and you will have more financial assistance. It will also decide whether your company would come into a small-scale business or would end up becoming a large-scale company.
6. Pick A Good Attorney
As already stated in this blog, biotech companies rely heavily on formulas that have to be patented. This requires a certain expertise that you cannot gain overnight. Thus it is advisable to team up with a good attorney who will look after all your legal requirements and will ensure all the permits and licenses. You will have to treat this attorney as a partner and thus have to be completely transparent to him. A good attorney can take a lot of burden off your shoulders.
These 6 steps form the base of everything a biotech entrepreneur must be aware of before venturing into this business. Starting a biotech company can take a huge time and that is how it is supposed to be. Therefore don’t rush into things and hit your head with a hammer. Take your time and fulfill all the requirements before you launch your company.