Start a biotech business

 Do you want to start a biotech company? If YES, here's a complete guide to starting a biotech business with no money and no experience.

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Okay, so we have provided you with a detailed example biotech company business plan template. We also went further by analyzing and creating a sample biotech company marketing plan backed by actionable guerrilla marketing ideas for biotech companies. In this article, we will look at all the requirements for starting a biotech company. So put on your entrepreneurial hat and let's get on with it.

Why start a biotech business?

Did you know that no matter what career you belong to, you can still become your own boss? The reality is that there are several business opportunities available in your area of ​​study/training. If you are a scientist and intend to start your own business, one of the many businesses that you can successfully start is a biotechnology company; it is an industry that is still largely green and open to creative scientists and investors.

Before moving forward, it is important to clearly state that starting a biotech company requires extensive training, experience, creativity, reasonable startup capital, a license, and a detailed business plan. The truth is that you can't just wake up and launch your own biotech company in the United States; You must follow set protocols. This industry is highly regulated due to potential risks; it's all about using living organisms and systems to develop new products.

There are several fields that require biotech companies to enter. Areas such as medicine and pharmaceuticals, agriculture (hybrid food production, hybrid bird production and hybrid animal production) and non-food industries (used in the production of biodegradable plastics and biofuels, etc.).

Although some people still have their reservations when it comes to the use of biotechnology in agriculture, but the fact remains that it has contributed greatly to the increase and ease of growing crops and raising birds and animals.

Much more than being a scientist, the first step you should take if you intend to start your own biotech company is to spend time researching the industry; If you want to successfully launch your own biotech company, you need to do detailed research. The truth is that you gain a lot by spending time researching; you'll receive information that will help you make vital business decisions.

One thing about technology-intensive companies is that you have to follow the trend or you will end up producing obsolete products. Below is an article that will give you the guidance you need to launch your biotech company in the United States and possibly anywhere in 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 provide chemicals, foods and services that meet human requirements. necessary. It is important to note that the biotechnology industry does not include companies that develop small molecule pharmaceuticals, perform contract research, or manufacture biological equipment.

A close look at the biotechnology industry reveals that the industry is growing rapidly, with revenues increasing over the past five years due to rising ethanol use, demand for improved crop yields, and the growing medical needs of an aging population.

While the industry has grown, there has been a trend toward consolidation as large pharmaceutical companies increasingly target industry firms for acquisitions to expand their product portfolios in anticipation of upcoming patent expirations. Sustained spending on research and development, including from the federal government, will benefit the industry, driving revenue growth and, of course, profits.

The biotechnology industry is indeed a thriving economic sector in countries such as Israel, Japan, India, China, Great Britain, Germany and the United States of America. According to statistics, in the United States alone, the industry generates more than $109 billion annually from more than 2,230 registered and licensed biotechnology companies scattered throughout the United States.

The industry is responsible for employing more than 218,610 people. Experts predict industry growth of 1.8 percent per year from 2011 to 2016. AbbVie, Amgen Inc., Genentech Inc. Monsanto and Gilead have the lion's share of the biotechnology industry's addressable market in the United States.

A recent report published by IBISWORLD shows that in the short history of the biotechnology industry, its diversity of product offerings, markets, company size and funding sources have largely protected them from significant volatility caused by market fluctuations.

The report also pointed out that high labor costs and the need for significant upfront investment in research and development (RD) make the industry somewhat vulnerable to declining venture capital and government funding. In the years following the recession, the decline in these funding sources led to a decline in industry revenues.

However, growth picked up in 2015 as companies began seeing returns from their research, which can take years to move to fully approved products. Capital markets have recovered from the recession, which has somewhat improved the availability of industrial investment capital.

Some of the factors and incentives that encourage aspiring entrepreneurs to take a risk and start a biotechnology company are that the market for various products produced by biotechnology companies is quite large and not seasonal. This allows qualified entrepreneurs who are interested in business to enter the industry at any time. whenever they wish; The barriers to entry are quite high, but this in no way prevents any serious entrepreneur from starting a business.

The bottom line is that the biotech industry is still very much 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 share of the available market in any country or region in which you intend to start a business.

Commencement of biotechnology market research and feasibility studies

• Demographics and psychographics

People who use products made by biotech companies work in multiple industries, so the demographics of a biotech company are all-encompassing, especially when they also manufacture a large number of products.

So, if you are thinking about starting a biotech company, then you should reach your target demographic. It should include drug and pharmaceutical manufacturing companies, hybrid food processing and production companies, hybrid cultivators, hybrid animal breeders, hybrid poultry and poultry farmers, and non-food industries.

List of niche biotech business ideas you can specialize in

There are several niche ideas (areas) that you can specialize in as a biotech company owner or you can be involved in all aspects of biotechnology. You can concentrate on the medical industry/pharmacy (drug manufacturing), you can choose the agricultural industry and decide to go into the food industry.

The truth is that if you do research and marketing Survey, you will have a good focus on the industries and products to be manufactured. No matter what decision you make, make sure that the decision will give your business an edge in the market.

However, here are some of the niche ideas that you can implement if you decide to run a specialty biotech company;

• DNA coding, mapping and sequencing
• Biotechnology Processing
• 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 natural resource restoration
• Agriculture and Aquaculture Technologies
• Industrial technology

Level of competition in the biotechnology industry

The fact that the biotechnology business is considered to be developing and, therefore, environmentally friendly does not exclude the fact that there are competitions in the biotechnology industry. The truth is that there is hardly an industry or line of business in the world where there is no competition; In fact, it is competition that breeds innovation in the business world.

If you want to start a biotech company, you should prepare yourself for the competition in the industry because you have to compete with it. both small and large corporations in the biotechnology sector. This is why most biotech companies continually conduct research to produce safe products that will be accepted by the general public.

Undoubtedly, the fact that competitions are growing in the biotech industry does not in any way hinder the work of new entrants, since most of them know how to recreate and restructure to attract or attract more clients, even if they are just cottage companies and farmers in their nearest surroundings.

List of famous brands in the biotechnology industry

In every industry there is a norm, there are always brands that perform better or are better perceived by customers and the general public than others. Some of these brands are those that have been in the industry for a long time, while others are best known for the way they conduct their business and the results they have achieved over the years.

These are some of the leading biotechnology companies in the United States and around the world;

• AbbVie Biotech Company
• Amgen Inc.
• Genentech Inc.
• Monsanto Biotech Co.
• Gilead Biotech Company
• XBiotech
• 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

Economic analysis

The fact that the barrier to entry into the biotech industry is high means that it is a business that should not be entered into without due diligence, it is a business that requires careful economic and cost analysis - feasibility studies and market research if you want to make a profit in industry.

Part In this line of business, you need to focus on how to build a standard biotech/lab and manufacturing facility, obtain reliable distribution networks, secure the necessary business licenses and permits, branding and of course how to maintain your machines and equipment and take care of about your overhead costs before your business breaks even. Other costs that should be considered while planning and budgeting are supplies of chemicals, packaging materials, maintenance costs, etc.

To avoid risks when investing, it is important that you hire the services of business consultants cum competent practical economists who will help you conduct a thorough economic and cost analysis before committing your resources to the business, even if you intend to start a small and standard biotechnology company.

Launching your biotechnology Business from scratch versus buying a franchise

If you want to start a biotech company, you should start from the beginning. This is because from the available research, you are unlikely to be able to buy a biotech company franchise; seems inaccessible. Additionally, the fact that you can start a business in any capacity means that the business is open to qualified and experienced entrepreneurs with a variety of financial capabilities.

Note that most of the large and successful biotechnology companies in the United States and other parts of the world started from scratch, and they were able to build a strong business brand. Achieving success in business requires dedication, hard work and determination, and of course, you can start your own biotechnology company to become a successful brand with your distribution network spread throughout the United States of America.

Potential Threats and Challenges You'll Face When Starting a Biotech Company

If you decide to get into the biotechnology business today, one of the major challenges you are likely to face is the presence of well-established brands in the biotechnology industry both in the United States of America and in other parts of the world. The only way to avoid this problem is to create your own market (distribution network).

Some other challenges and threats that you are likely to face are partial adoption of biotechnology products and unfavorable government policies. It is a fact that partial adoption of products and unfavorable government policies can hinder the growth of your biotechnology company. There is nothing you can do about these threats and challenges except to be confident that everything will work out well for you.

Starting a legal case in the field of biotechnology

• Best legal entity to use for this type of business

It is important to clearly establish that if you have plans to start any form of business, especially a biotechnology business, the Legal 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 your biotech business. Typically, a general partnership would be the ideal business structure for a small biotech business, especially if you are just starting with a small seed capital in a small area and only to produce specific biotech products.

But if your intention is to grow a business, produce a large number of biotechnology products and have distribution networks spanning the United States of America and other countries around the world, then choosing a general partnership may not be appropriate for you. A limited liability company, LLC will shorten it for you.

There are many benefits when you choose a limited liability company for your biotech company. Forming an LLC protects you from personal liability. If something goes wrong in the business, the only money at risk is the money you invested in the limited liability company. Limited liability companies are simpler and more flexible to manage, and you don't need a board of directors, shareholders' meetings or other formal management formalities.

Here are some factors that you should consider before choosing a legal entity for your biotechnology 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 various legal entities that will be used for your biotechnology business with the ability to export your products and open distribution chains throughout the United States of America and other countries around the world, you will agree that a limited liability company; LLC is the most suitable. You can start this type of business as a limited liability company (LLC) and convert it into a 'C' corporation or 'S' corporation in the future, especially if you have plans to go public.

The truth is that upgrading to a "C" or "S" corporation 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 company; you'll enjoy flexibility in ownership and in your management structures.

Catchy Business 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 the perception of what the business stands for. It is usually the norm for people to follow the trend in the industry they are going to work from when naming their business.

So, if you are planning to start your own biotech company, 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.

Insurance policies

It is known that in the United States and in most countries of the world, you cannot operate a business without having some basic insurance policies that are required by the industry you want to operate from. Therefore, it is important to create a budget for insurance and possibly consult with an insurance broker to help you choose the most appropriate insurance policies for your biotech company.

Here are some basic insurance coverages that you should consider purchasing if you want to start your own biotechnology company in the United States of America;

• General insurance
• Health/medical insurance
• Risk insurance
• Liability Insurance
• Buildings insurance
• Workers' compensation
• Overhead Disability Insurance
• Business Owner's Policy Group Insurance

Intellectual property / trademark protection

If you are planning to start your own biotech company, you need to apply for intellectual property protection/trademark. This is so because the nature of the business makes it impossible to run it successfully without any reason to challenge someone in court for illegally using your intellectual property companies. Moreover, biotechnology products are the creation of the brain of the inventor/group, and no inventor would want his or her products to be used by people who intend to profit from their labor without proper compensation.

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 concept and media production materials, then you should apply for intellectual property. protection.

Do you need professional certification to run a biotech business?

Beyond the results you get as they relate to creating effective, safe, and well-accepted biotech products, professional certification is one of the main reasons why some biotech companies stand out. If you want to make an impact in the biotech industry, you and your teammates should strive to obtain all the necessary certifications in your area of ​​expertise.

We highly recommend obtaining professional certifications; this will go a long way to show your commitment to the business. Certification validates your competency and shows that you are highly qualified, dedicated to your career, and current in the marketplace.

These are some of the certifications you can strive for if you want to run your own biotech company;

• Chemical Handler Certificate
• Biotechnology Management Certificate
• Specialized Certificate Biotech Project Management
• Degree or diploma in chemistry, or microbiology or biochemistry and related courses

Please note that you cannot successfully launch a Biotechnology company in the United States or any country in the world without obtaining professional certifications.

List of Legal Documents Required to Run a Biotechnology Company

You are not expected to operate a biotech company without registering the business with your country's government and obtaining the necessary legal documents. If you are caught operating this type of business illegally, you will likely end up in jail.

It is therefore important to contact your country's corporate affairs department to register your biotech company and request information on the legal documents you will need to act freely. You can use a lawyer to help you through the process.

Once you are done with registering your company, you can apply for both federal and state licenses and permits. The truth is that the industry is highly regulated and therefore proper procedures must be followed if you want to run your own biotech company.

Here are some basic legal documents that you must have in place if you want to legally operate your own biotech business in the United States of America;

• Business and liability insurance
• tax ID
• fire certificate
• chemical operator certificate
• registration certificate
• business license
• Business plan
• Non-disclosure agreement
• Employment Agreement (offer letters)
• Employee Handbook
• Operating Activities Agreement for LLC
• Insurance policy
• Online Terms of Use
• Online Privacy Policy (mainly for the online payment portal)
• Company Charter
• Memorandum of Understanding (MoU)
• Construction license
• Franchise or Trademark License (optional)

Financing your

Biotechnology company

Starting a biotech company requires a lot of capital, so you should plan to raise your startup capital. If you have a good business plan, it will be easier for you to get start-up capital from banks and angel investors. One good thing about biotech companies is that they attract grants from most countries' federal governments, crowdfunding, and international funds.

So, make sure you explore all available means to raise seed capital for your biotech startup. Company: This may be difficult, but keep going until you have the amount needed to successfully set up your biotech company. Here are some of the options you can explore when looking to source startup capital for your biotech company:

• Raising money from personal savings and selling personal shares and property
• Raising money from investors and business partners
• sale of shares to interested investors
• applying for a loan from your bank
• pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
• Source of easy loans from your family members and your friends

Choosing the Right Location for a Biotechnology Business

In the United States and throughout the world, there are zoning laws governing the location of biotechnology companies, and therefore it is important to speak with a qualified real estate agent before choosing a location for your biotechnology company. Most countries do not require you to build a biotech company in a residential area.

Despite the fact that biotech products are used by households, farmers and a variety of companies in various industries, it is important to choose a location that will give you weight savings; a place that will give you the opportunity to compete favorably in the industry as a new entrant and also make a reasonable profit.

Before choosing a location for your biotech company, make sure you first conduct a thorough feasibility study and market research. You cannot rule out the possibility that you will come across a similar business that simply closes shop in the place where you want to open yours. This is why it is very important to gather as many facts and figures as possible before choosing a location for your company.

Getting started with information about the technical and human resources of a biotech business

If you are planning to start a biotechnology company, then you must make plans to set up a standard biotechnology laboratory and manufacturing facility. So, you must have basic biology laboratory equipment and instruments that are used on a daily basis such as microscopes, test tubes, beakers, Bunsen burner, densitometers, DNA sequencers, DNA synthesizers, heating plate, micropipette, autoclave, incubator, compound light microscope, graduated cylinder and electronic scales / Digital scales, etc.

Even if you can fairly use the above-mentioned equipment and machines, but it is recommended to use new and latest machines and equipment that can serve you for a long time, especially if you have the necessary finances to make the purchase. Even if you do not have the required amount, you can enter into an agreement with suppliers of such machinery and equipment and spread the payment over a certain period of time.

In terms of purchasing a facility, if you have the finances, you can purchase property or rent a facility to be used for your biotech laboratory; This usually gives you the freedom to design the property the way you want and install security devices as you wish. But if you don't have much money, you have no choice but to rent a property.

When it comes to creating a workforce structure for a standard biotech company, you should look at getting qualified and competent people to fill the following roles; Chief Executive Officer (Owner), Senior Scientist/Biotechnologist, Plant Manager, Quality Control Officer, Human Resources and Administration, Merchandise Manager, Sales and Marketing Manager, Accountants/Cashiers, Lab Technician/Fabricator/Window Washer, Workers manufacturing / Machine operators, truck drivers and cleaners.

Additionally, you will need a minimum of 5 20 employees to successfully run a small but standard biotech company. Please note that in some cases you will be expected to hire experts to help you with some key research work, so always allocate a budget for this.

Start of activity in the field of biotechnology.>Marketing Ideas and Strategies

When you have a product, you have a responsibility to sell and promote the product. The truth is that in the biotech industry there are competitions; everyone is trying to get ahead of their competitors, so you must develop a good marketing strategy to get your own fair share of the existing market. You must make every effort to use strategies that will help you attract customers, otherwise you will most likely struggle with business because there are well-known brands that determine the direction of the market for the biotech industry.

People and organizations will purchase and use your biotechnology products if they know they will get value for their money.

In reality, your marketing strategy will focus on safety, quality, efficiency, pricing and most of all, excellent customer service. The truth is that if you are able to apply the above on the spot, you will have no difficulty retaining your old clients and at the same time winning new clients.

Nowadays, companies are aware of the power of the Internet, so they will do everything possible to maximize the Internet to promote their services or products. In other words, a greater percentage of your marketing efforts will be directed towards Internet users, and your website will become your number one marketing tool.

These are some marketing ideas and strategies you can use for your biotech company;

• Introduce your biotech company by sending introductory letters along with your brochure to pharmaceutical and pharmaceutical manufacturing companies. , hybrid food production and processing companies, hybrid cultivators, hybrid animal breeders, hybrid poultry and poultry farmers, as well as the non-food industry and other key stakeholders within and outside the city where your biotech company is located.
• Advertise online on blogs and forums, as well as on social networks such as Twitter, Facebook, LinkedIn to get your message across so that social network users or blog readers know about your biotech product
• Create a basic website for your business providing your business with an online presence
• Direct marketing of your products
• Participate in roadshows in targeted communities from time to time to raise awareness about biotechnology and promote your business
• Join local biotech associations for industry trends and tips.
• Provide discount days for your customers
• Advertise our business in local newspapers and on local television. and radio stations
• List your business on the yellow pages classifieds (local directories)
• Encourage the use of word of mouth marketing (referrals)

Strategies for increasing biotechnology brand awareness and corporate identity

If you are in business and have no intention of increasing brand awareness and spreading your signature style, then you must be willing to accept what society envisions for your business. One of the secrets of large corporations is that they are willing to spend fortunes year after year to increase their brand awareness and continue to communicate their corporate identity the way they want people to perceive them.

If your intention of starting a biotech company is to grow the business outside the city you are going to operate from to become a national and international brand by opening distribution networks and exporting your products, then you must be prepared to spend money on promoting and advertising your brand.

No matter what industry you belong to, the truth is that the market is dynamic and requires constant brand awareness and brand promotion to continue to attract your target market. Here are the platforms you can use to increase your brand awareness and create a signature style for your biotech company;

• Advertise on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community events
• Use online and social media platforms such as Instagram, Facebook, Twitter, YouTube, Google+, etc. to promote your biotech company
• Install your billboards in strategic locations throughout your city or state
• Participate in roadshows in targeted farming communities from time to time to increase awareness of your biotech company
• Distribute flyers and flyers in target areas
• Connect with drug and pharmaceutical manufacturing companies, hybrid food manufacturing and processing companies, hybrid cultivators, hybrid animal breeders, hybrid poultry and poultry farms, as well as the non-food industry and other key stakeholders throughout the city where your business is located. biotechnology company located, informing them about your biotechnology company and the products you sell
• List your biotech company in local directories/yellow pages
• Advertise your biotech company on your official website and implement strategies that will help you drive traffic to the site
• Place your Flexi banners in strategic positions where your biotech company is located
• Make sure all your employees wear your branded shirts and all your vehicles and trucks/vans are wearing your company logo