Are you looking to start a biotechnology business? here is a complete guide to starting a biotech business with no money and no experience .
Ok, so we’ve provided you with a detailed sample biotech company business plan template. We also took it a step further by analyzing and writing a sample biotech business marketing plan backed by actionable guerrilla marketing ideas for biotech companies. In this article, we will cover all the requirements for starting a biotech business. So put on your entrepreneur hat and let’s move on.
Why start a biotechnology business?
Did you know that no matter what career you belong to, you can always become your own boss? The reality is that there are several business opportunities in your area of study / training. If you are a scientist looking to start your own business, one of the many businesses that you can start successfully is a biotechnology company; it is still largely green and open to creative scientists and investors.
Before moving forward, it is important to make it clear that setting up a biotech business requires extensive training, experience, creativity, reasonable start-up capital, licensing and a plan. detailed business. The truth is, you can’t just wake up and start your own biotech business in the United States; You must follow established protocols. This industry is highly regulated due to the potential risks; it’s about using living organisms and systems to develop new products.
There are several areas that require the participation of biotechnology companies. Areas such as medicine and pharmacy, agriculture (hybrid food production, hybrid bird production and hybrid animal production) and non-food industry (used in the production of biodegradable plastics and biofuels, etc.).
If some people still have reservations about the use of biotechnology in agriculture, the fact remains that it has contributed to a large extent to the increase and the ease of cultivation and breeding of birds and animals.
Much more than being a scientist, the first step to take if you plan to start your own biotech business is to spend time researching the industry; If you want to successfully start your own biotech business, detailed research is essential. The truth is, you save a lot by spending time doing research; you will receive information to help you make vital business decisions.
One thing about high tech companies is you have to follow the trend or you end up making obsolete products. Below is an article that will give you the advice you need to start your biotech business in the United States and possibly around the world.
The Complete Guide to Starting a Biotech Business
- Industry overview
Companies in the biotechnology industry primarily use living organisms or molecular and cellular techniques to deliver chemicals, foods, and services that meet human needs. necessary. It is important to clarify that the biotechnology industry does not include companies that develop low molecular weight pharmaceuticals, conduct contract research, or manufacture biological equipment.
Close examination of the biotech industry reveals that the industry is growing rapidly, with revenues increasing over the past five years due to the increasing use of ethanol, the demand for increased crop yields and the growing health needs of an aging population.
As the industry has grown, there has been a trend towards consolidation, with large pharmaceutical companies increasingly targeting industry companies in acquisitions in order to expand their product portfolios ahead of the upcoming expiration of patents. Sustained research and development spending, including from the federal government, will benefit the industry, spurring revenue growth and, of course, profits.
The biotechnology industry is indeed a thriving economic sector in countries like Israel, Japan, India, China, United Kingdom, Germany and United States of America. In the United States alone, the industry generates more than $ 109 billion per year from more than 2,230 registered and licensed biotech companies spread across the United States of America, according to statistics.
The industry is responsible for the employment of more than 218,610 people. Experts predict that the industry will grow by 1.8% per year from 2011 to 2016. AbbVie, Amgen Inc., Genentech Inc. Monsanto and Gilead capture the lion’s share of the biotech industry market available in the United States from America.
A recent report published by IBISWORLD shows that in the short history of the biotech industry, the diversity of its product offerings, markets, company size and sources of funding has largely shielded them from significant volatility. caused by market fluctuations.
The report also pointed out that high labor costs and the need for a large initial investment in research and development (R&D) make the industry somewhat vulnerable to declining venture capital and funding. government. In the years following the recession, the decline in these sources of funding resulted in declining revenues for the industry.
However, growth accelerated in 2015 as companies began to benefit from their research, which could take years before moving to fully approved products. Financial markets recovered from the recession, which slightly improved the availability of industrial investment capital.
Some of the factors and incentives that motivate aspiring entrepreneurs to take risks and start a biotech company are that the market for various products is produced by biotech companies on a fairly large scale and out of season, which allows entrepreneurs qualified interested in business to enter the industry at any time. when they want; the barriers to entry are quite high, but that does not prevent a serious entrepreneur from starting a business.
The bottom line is that the biotechnology industry is still very open to new entrants; competition in the industry is not as fierce as in similar industries. If your product is good, it can gain a significant market share available in the country or region in which you want to start a business.
Beginning of market and feasibility studies in biotechnology
- Demography and psychography
The people who use the products made by the biotech companies work in multiple industries, so the demographics of a biotech company cover everything, especially when they also manufacture a large number of products.
So, if you are considering starting a biotech business, you need to cover your target demographics. It should include pharmaceutical and pharmaceutical companies, hybrid food processing and manufacturing companies, hybrid growers, hybrid animal breeders, breeders of hybrid birds and birds, and the non-food industry.
List of niche ideas in the biotech industry that you can specialize in
There are several niche ideas (areas) that you can specialize in as a biotech business owner or you can participate in all aspects of biotech. You can focus on the medical / pharmacy industry (drug manufacturing), you can choose the agriculture industry and decide to go to the food industry.
The truth is, if you do the Research and Marketing survey, you will be good at targeting the industry and the product to be manufactured. Whatever decision you make, make sure that decision will give your business an edge in the market.
However, here are some of the niche ideas you can pursue if you decide to run a specialty biotech company;
- DNA coding, mapping and sequencing
- Biotechnological treatment
- Engineering of subcellular organisms
- Cell and tissue culture engineering
- Protein sequencing, synthesis and engineering
- Human health technologies
- Animal health, marine and terrestrial microbial technologies
- Environmental restoration and restoration of natural resources
- Agricultural and aquaculture technologies
- Industrial technology
The level of competition in the biotechnology industry
The fact that biotechnology activity is considered to be developing and therefore respectful of the environment does not exclude the fact that there are competitions in the biotechnology industry. The truth is that there is hardly an industry or industry in the world without competition; In fact, it is competition that breeds innovation in business.
If you want to start a biotech business, you have to prepare for competition in the industry because you have to compete with it. small and large companies in the biotechnology sector. That’s why most biotech companies are constantly looking for safe products that will be accepted by the general public.
Undoubtedly, the fact that competitions are increasing in the biotech industry in no way interferes with the work of new entrants, as most of them know how to recreate and restructure to attract or attract more customers, even if they are only craft businesses and farmers in their immediate environment. environment.
List of renowned brands in the biotechnology industry
Every industry has a standard, there are always brands that perform better or are better perceived by buyers and the general public than others. Some of these brands are the ones that have been around the industry for a long time, while others are best known for the way they run their business and the results they have achieved over the years.
These are some of the leading biotechnology companies in the United States of America and around the world;
- AbbVie Biotech Company
- Amgen Inc.
- Genentech Inc.
- Monsanto Biotech Co.
- Gilead Biotech Company
- Novozymes North America Inc.
- Neurotech Inc.
- Syros Pharmaceuticals
- Amyris Inc.
- Lonza Biologics Inc
- Abbott Diagnostics Division
- Canon US Life Sciences, Inc.
- Agenus Inc
- Nitto Denko Avecia Inc.
- QLT USA Inc
- Santa Cruz Biotechnology Inc
- Codexis Inc.
- Cosmo Bio USA, Inc.
- Epeius Biotechnologies Corporation
The fact that the barrier to entry into the biotech industry is high means that this is a business that cannot be started without due diligence, it is a business that requires economic analysis. and careful costs – feasibility studies and market research if you want to make a profit in the industry.
Part In this line of business you need to focus on how to build a standard biotechnology and production laboratory, get reliable distribution networks, get the necessary commercial licenses and permits, the brand and of course how to maintain your machinery and equipment; and take care about your overhead costs before your business becomes profitable. Other costs to consider when planning and budgeting are chemical supply, packaging materials, maintenance costs, etc.
To avoid the risks associated with investing, it is important that you engage the services of knowledgeable business consultants and practical economists to help you perform in-depth economic and cost analysis before you channel your resources into the business. even if you intend to start a small standard biotech business.
Starting your biotech business from scratch vs buying a franchise
If you want to start a biotech business, you have to start at the very beginning, because according to the available research, you can hardly buy a biotech business franchise; seems unreachable. Plus, the fact that you can start a business in any capacity means that business is open to skilled and experienced entrepreneurs with a variety of financial capabilities.
Note that most of the large, successful biotech companies in the United States and other parts of the world started from scratch and were able to build a strong commercial brand. Success in business takes dedication, hard work, and determination, and of course you can start your own biotech business to become a successful brand with your distribution network spread across the United States of America.
Threats and potential challenges you will face when starting a biotechnology business
If you decide to jump into the biotech business today, one of the main challenges you are likely to face is having well-established brands in the biotech industry in the United States of America. America and other parts of the world. The only way to avoid this problem is to create your own market (distribution network).
Some other issues and threats that you are likely to face are partial acceptance of biotech products and unfavorable government policies.The fact is that partial acceptance of unfavorable products and government policies can hinder the growth of your biotech business. . There is nothing you can do about these threats and challenges except to make sure that all is well with you.
Take legal action in the field of biotechnology
- The best legal entity to use in this type of business
It is important to be clear that if you are considering starting a business, especially a biotech business, the entity you choose will go a long way in determining the size of the business.
You can choose a general partnership or a limited liability company for the biotechnology business. Generally speaking, a full partnership should have been the ideal business structure for a small biotech company, especially if you are starting out with a small start-up capital in a small region and only for the production of specific biotech products.
But if your intention is to grow your business, manufacture large amounts of biotech products, and have distribution networks spanning the United States of America and the rest of the world, choosing a general partnership may not not suit you. Limited Liability Company, LLC will cut it for you.
Choosing a limited liability company for your biotech business has many advantages. Setting up an LLC protects you from personal liability, so if something goes wrong with the business, only the money you put into the limited liability company is at risk. Limited liability companies are simpler and more flexible to manage, and you don’t need a board of directors, shareholder meetings or other formal management formalities.
Here are some factors to consider before choosing a legal entity for your biotech business; limitation of personal liability, ease of transfer, acceptance of new owners and investor expectations, and of course taxes. If you take the time to critically examine the different legal entities that will be used for your biotech business with the possibility of exporting your products and opening distribution chains in the United States of America and in other countries of the world, you agree that the limited liability company is a liability; LLC is the most appropriate. You can start this type of business as a limited liability company (LLC) and in the future turn it into a “C” company or an “S” company,
The truth is, promotion to a C or S company will give you the opportunity to grow your biotech business to compete with the major players in the industry; you will be able to receive capital from venture capital firms, you will have a separate tax structure and you can easily transfer ownership of the business; you will benefit from flexibility in ownership and in your management structures.
Catchy Trade Name Ideas Suitable For A Biotech Company
In the business world, when it comes to choosing a name for your business, you have to be creative because the name you choose for your business will go a long way in creating an idea of what the business is. It is generally the norm for people to follow the trend of the industry in which they intend to operate when naming their business.
So, if you are planning to start your own biotech business, here are some catchy names you can choose from.
- Fritz Lackey® Biotech Company, LLC
- Travis Brown and Co® Biotech Company, LLC
- TY Gusto Group® Biotech Company, Inc.
- Young Brains® Biotech Company, Inc.
- Charles Bronwyn and Sons® Biotech Company, Inc.
- Arizona Connect ™ Biotech Company, Inc.
- Scientist Minds © Biotech Company, Inc.
- Bennie Polestar® Biotechnology, LLC
- Kingston DeMint Group © Biotech Company, Inc.
- Outer space © Biotech Company, Inc.
It is known that in the United States and most countries around the world, you cannot run a business without some of the basic insurance policies required by the industry in which you want to work. Therefore, it is important to budget for insurance and perhaps consult an insurance broker. to help you choose the best insurance policies for your biotech business.
Here are some basic insurance coverages you should consider purchasing if you are looking to start your own biotech business in the United States of America;
- General insurance
- Health / medical insurance
- Risk insurance
- Liability insurance
- Building insurance
- Workers compensation
- General disability insurance
- Group insurance for business owners
Protection of intellectual property / registered trademark
If you are planning to start your own biotech business, you should seek intellectual property / trademark protection as the nature of the business does not allow it to be successfully carried out without any reason to take a person to court for illegal use of your intellectual property. companies. In addition, biotechnology products are the inventiveness of an inventor / group, and no inventor would want his products to be used by people who intend to profit from their work without adequate remuneration.
So, if you want to protect your inventions (biotech products), your company logo and other documents or software that are unique to you, or even conceptual and production multimedia materials, then you need to apply for intellectual property. protection.
Do you need professional certification to run a biotechnology business?
Apart from the results you get, because it is associated with creating effective, safe and well-received biotech products, professional certification is one of the main reasons some biotech companies stand out. If you want to make an impact in the biotech industry, you and your teammates should strive to achieve all the required certifications in your area of specialization.
We strongly recommend that you obtain professional certifications; this will go a long way to show your commitment to the business. The certification validates your competence and shows that you are highly qualified, engaged in your career and up to date in the market.
Here are some of the certifications you can aspire to if you want to run your own biotech business;
- Chemist certificate
- Biotechnology Management Certificate
- Specialized certificate in biotechnology project management
- Degree or diploma in chemistry, or microbiology or biochemistry and related courses
Please note that you cannot successfully start a biotech company in the United States and around the world without obtaining professional certifications.
List of legal documents required to run a biotechnology company
You are A biotechnology company is not expected to operate without registering the company with your country’s government and obtaining the necessary legal documents. If you are caught illegally operating this type of business, you will likely end up in jail.
Therefore, it is important to contact the corporate affairs department in your country to register your biotech company and request information on the legal documents you will need to act freely. You can use the services of a lawyer to help you through the process.
Once you have completed registering your business, you can apply for federal and state licenses and permits. The truth is, the industry is highly regulated and therefore proper procedures must be followed if you want to run your own biotech business.
Here are some of the basic legal documents you need to have if you want to legally operate your own biotech business in the United States of America;
- Business and liability insurance
- taxpayer ID
- fire certificate
- chemical operator certificate
- registration certificate
- business license
- Business plan
- Non-disclosure agreement
- Employment contract (letters with proposals)
- Employee Handbook
- Operating Agreement for LLC
- Insurance policy
- Company charter
- Memorandum of Understanding (MoU)
- Construction license
- Franchise or brand license (optional)
Fund your biotechnology business
Starting a biotech business requires a lot of capital investment, so you should plan to raise your start-up capital. If you have a good business plan, it will be easier for you to get start-up capital from the bank and angel investors. A good thing about biotech companies is that they attract grants from most federal governments, crowdfunding, and international funds.
So be sure to research all available funds to raise seed money to start your biotech. Business – It can be tricky, but keep doing it until you get the amount you need to be successful in starting your biotech business. Here are some of the options you can explore when looking for a source of start-up capital for your biotech business:
- Collect money from personal savings and sell personal stocks and property
- Raise funds from investors and business partners
- sale of shares to interested investors
- apply for a loan from your bank
- submit your business idea and apply for business grants and seed funding from donor organizations and angel investors
- Source of concessional loans from family and friends
Choosing a suitable location for a biotechnology company
There are zoning laws in the United States and around the world that determine the location of biotech businesses, so it’s important to speak with a qualified real estate agent before choosing a location for your biotech business. In most countries, you don’t have to start a biotech business in a residential area.
Despite the fact that biotech products are used by households, farmers and many companies in various industries, it is important to choose a location that allows you to save weight; a place that will give you the opportunity to compete profitably in the industry as a newcomer and generate a reasonable profit.
Before choosing a location for your biotech business, be sure to do a thorough feasibility study and market research first. It cannot be excluded that you will come across a similar business that will simply close the store in the place where you want to open yours. That is why it is very important to collect as many facts and figures as possible before choosing a location for your business.
First steps with information on the technical and human resources of the biotechnology company
If you are planning to start a biotech business, you should plan to set up a standard biotech lab and production workshop. So, you should have basic biological laboratory equipment and tools that are used daily, such as microscopes, test tubes, beakers, Bunsen burner, densitometers, DNA sequencers, DNA synthesizers. DNA, a hotplate, a micropipette, an autoclave, an incubator, a complex light microscope. Graduated cylinder and electronic scales / Digital scales, etc.
Even though you can fairly use the above equipment and machines, it is recommended that you use new and up-to-date machines and equipment that can serve you for a long time, especially if you have the finances to make a purchase. Even if you do not have the required amount, you can make an agreement with the suppliers of these machines and equipment and spread the payment over a certain period of time.
In terms of acquiring an object, if you have the financial means, you can buy real estate or rent an object intended for your biotechnology laboratory; This usually gives you the freedom to design the installation as you wish and to install the safety devices as you wish. But if you are short on money, you have no choice but to rent the property.
When it comes to creating a workforce structure for a standard biotech company, you should seek to acquire skills and competent people to fill the following roles; CEO (owner), senior scientist / biotechnology scientist, plant manager, head of quality control, human resources and administration, product manager, sales and marketing manager, accountants / cashiers, laboratory assistant / breeder / washer, production workers / machine operators, truck drivers and cleaners.
Additionally, you will need a minimum of 5-20 employees to successfully run a small, standard biotech company. Please note that in some cases you are expected to hire experts to help with any key research work, so always budget for this.
Beginning of activities in the field of biotechnology.>
- Marketing ideas and strategies
When you have a product, it is your responsibility to sell and promote the product. The truth is, there are competitions in the biotech industry; everyone is trying to stay ahead of their competition, so you need to develop a good marketing strategy to get your own share of the existing market. You need to make every effort to use strategies that will help you attract customers, otherwise you will be more likely to struggle with the business as there are some well known brands that are setting the market direction for the biotech industry.
People and organizations will buy and use your biotech products if they know they will get their money’s worth.
In fact, your marketing strategy will focus on safety, quality, efficiency, pricing, and most importantly, great customer service. The truth is, if you can apply the above on the spot, you won’t have a hard time keeping your old customers and gaining new customers at the same time.
Nowadays, businesses realize the power of the Internet and therefore will do their best to maximize the Internet to promote their services or products. In other words, a greater percentage of your marketing efforts will go to internet users and your site will become your number one marketing tool.
Here are some ideas and marketing strategies you can use for your biotech business;
- Introduce your biotech business by sending cover letters with your brochure to pharmaceutical and pharmaceutical manufacturing companies. , hybrid food processors and processors, hybrid growers, hybrid breeders, hybrid bird and bird breeders, non-food industries and other key stakeholders within and outside the country. outside the city where your biotech company is located.
- Advertise on the internet in blogs and forums, as well as on social networks such as Twitter, Facebook, LinkedIn, to get your message across so that social media users or blog readers are aware of your biotech product
- Create a basic website for your business that gives your business an online presence
- Direct marketing of your products
- Take part in roadshows from time to time in targeted communities to raise awareness about biotechnology and promote your business
- Join local biotechnology associations for industry trends and advice.
- Offer discount days to your customers
- Advertise our business in local newspapers and on local television. and radio stations
- List your business on yellow ad pages (local directories)
- Encourage the use of word of mouth marketing (referrals)
Strategies to increase biotech brand awareness and corporate identity
If you are in business and have no intention of building brand awareness and spreading your corporate identity, you need to be prepared to embrace what the company means to your business. One of the secrets of great companies is that they are willing to spend fortunes year after year to increase their brand awareness and continue to convey their corporate identity the way they want people to see it.
If your intention to start a biotech business is to develop a business outside the city in which you intend to operate to become a national and international brand by opening up distribution channels and exporting your products, then you must be prepared to spend the money to promote and market your brand.
No matter what industry you belong to, the truth is that the market is dynamic and requires continuous brand awareness and promotion to continue to attract your target market. Here are the platforms you can use to build brand awareness and build brand identity. style for your biotech business;
- Advertise on print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community events
- Use social and online media platforms such as Instagram, Facebook, Twitter, YouTube, Google + and others to promote your biotech business
- Install your billboards at strategic locations in your city or state
- Occasionally participate in roadshows to targeted farming communities to market your biotech company
- Distribute leaflets and flyers in targeted areas
- Connect with pharmaceutical and pharmaceutical companies, hybrid feed production and processing companies, hybrid growers, hybrid breeders, hybrid poultry and poultry farms, as well as the non-food industry and others key stakeholders in the city where your biotech company is located to inform them about your biotech business and the products you sell
- List your biotech company in local directories / yellow pages
- Promote your biotech business on your official website and implement strategies that will help drive traffic to your site
- Place your Flexi banners in strategic positions where the biotech company is located
- Make sure all your employees are wearing your branded shirts and all your vehicles and trucks / vans with your company logo