Generating a business plan is an important part of the entrepreneurial process. However, different business concepts require different strategies in order to generate successful ROI.
The business of life sciences is an important example in this regard. The commodity being cashed here is the intellectual ideas and there are a number of technicalities to be realized.
First of all, starting up a business in life sciences requires a defined target. This segment is being described here because a lot of commercial ventures are blooming in this area. Life sciences may go on to translate into a bio-based economy that will become a major part of the business growth cycle.
With life sciences, an important area is defining the intellectual property state of the idea. By intellectual property, not only the idea of patent is being applied, but also the worth in terms of actual profit. Taking the example of Genentech, it’s a company that started on a very small scale with the goal to commercialize insulin. Genetech is now a market giant that has cashed in using its intellectual asset.
This brings to the need for investment and the question of how to appropriately manage the ROI. Managing ROI and accounts for intellectual property can get overwhelming for businesses short in budget, but it’s possible to reduce workload as there are websites for accountants, HR managers and other departments in business available. These kinds of sites provide tools and services that makes the management process much easier.
In life sciences, knowing the right scientists/researchers is very important. Your breakeven period would be made much smaller if you have a number of scientists in your interaction sphere. Their intellectual endorsement defines how quickly your product/service gets sold.
Based on this idea, it’s a wise ploy to mention the intellectual assets in your business plan as your strength. Venture capitalists can be convinced based upon the experience of your R&D team.
A vital part of the business plan for life sciences is to present the concept in a simple manner. This approach has been wonderfully demonstrated by companies that are planning to bring plants that glow to the market.
The project has been picked up for crowd funding and is now in process to commercialization. The important element was that the science was held back, and the aesthetic charm of the product was sold.
When starting a life sciences business, it’s also important to consider the legislative impact of your product/service. For understanding this approach, agribusinesses are a good example with genetically modified products. There are a lot of health considerations which you should be able to foresee before bringing the product/service to the market.
Another worthwhile tip is getting your product endorsed. Certifications are important, and you can get your product/service certified by a distinguished lab because doing so is important to increase its credibility and it also increases trust of the buyers.
Life science ventures are mostly done in a partnership manner where generally one person offers the science while the other is the science manager. The science related portion is defined by the impact factor of the researcher and the science manager bit is defined by the ability to turn it to profit.
Life science ventures are attractive in the sense that if commercialized, they’re literally a gold mine. This is demonstrated by pharmaceutical industry selling lifesaving drugs. Technology has reformed the innovation process and expanded life sciences more than ever. It does incite the entrepreneurial spirit, but has to be handled with caution.
The ideas mentioned above can be safely categorized as workable business ideas if the business plan is made carefully with all considerations in mind.
Article contributed by Jenna Smith