biotechnology business plan example

How to Write a Business Plan for Your Biotech Startup

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Last updated on August 9, 2022 by Excedr

Do you always need a written business plan? Keeping track of every part of your business in your head is an impossible task, and the components of cash flow–sales, costs, expenses, assets, liabilities, capital, and profits–are much easier to understand and manage when laid out in an organized way.

Not only that, having everything documented will help show others that you have a good idea on your hands, one worthy of investment—whether that be labor or capital.

There are many different types of business plans, however, each type generally falls under one of two categories: traditional or lean startup. Whichever you choose, writing a business plan can give you a roadmap, guiding you through each stage of starting and managing your company, and can help convince people to invest in or lend to you.

That said, does a business plan guarantee success? Sadly, it does not. If all you needed to succeed was a business plan, then everyone with a business plan would be successful. Nonetheless, it is an excellent exercise and decision-making tool, and will help you flesh out a solid business strategy. In fact, scientific studies have shown that many successful businesses planned ahead.

In this article, we’ll review the traditional business plan format used to outline the company’s mission statement, structure, products or services, growth strategy, and more—information that will all be necessary if you’re going to secure outside investment, such as investor funding and business loans. Furthermore, we’ll provide a few examples of business plan templates we stand behind.

How Does a Business Plan Help?

If you’e starting a small business, your business plan can be a highly useful tool to help you run your business. It can be the blueprint for how you structure, run, and grow your company.

They’re also an excellent way to flesh out key elements of your company, such as capital needs, product-to-market fit, competition, marketing plans, and potential to make a profit. Documenting all this will give you a much better grasp on your chances for success.

Most importantly, traditional business plans are an essential part to securing funding or bringing on new business partners. By providing in-depth detail on how you plan to operate your business, you make it that much more attractive to prospective investors or lenders.

This is because any investor is more likely to put their money and resources into someone who has made the effort to think out and document how the business will run—the business owner is more likely to be viewed as committed, thoughtful, and strategic.

Furthermore, creating a business plan lets you spot opportunities and challenges as you grow. This is due, in large part, to the fact that business plans have become less static.

(It used to be the case that many business plans were long, formal, and static documents that did not change much.)

Nowadays, many business owners revisit and revise their business plan as the company grows, as they gather new and different information and experience, and as the market changes. This allows for more flexibility and strategic planning and pivoting.

Now, some people may see writing a business plan as a chore or necessary “evil” required to attract financing or investors.

It may be seen as a chore, but it should also be seen as a low-cost—if not free—way to explore the viability of your potential business and avoid costly mistakes. At the end of the day, it’s not just about funding, it’s about the process.

By writing a plan out, you show not only yourself but those around you that you have a good idea on your hands, one worthy of time, effort, and money.

What Does Your Business Plan Need to Include?

Traditional business plans, or standard business plans, are highly detailed and provide a comprehensive look at the inner workings of your business.

These types of plans are necessary when requesting funding from an prospective investor or lender. They can be dozens of pages long, and usually take more time to write than other types of business plans, such as a lean startup plan.

Lean startup plans are typically shorter, focusing on key elements from a high-level. They are useful tools for measuring performance regularly and tracking your financials and milestones against what you projected so you can respond to opportunities and react to challenges quickly.

This type of business plan is faster to write, but doesn’t always provide enough information to potential investors or lenders. Nonetheless, it is a great option for startups looking to move quickly and decisively.

When writing a traditional business plan, the outline should include these topics:

Executive summary

Company description.

The order in which the topics are included is not incredibly important. The level of detail is what investors are looking at. Let’s briefly review each section.

This is one of the most important sections of your business plan, as many investors will make a decision to invest in your business based on this summary.

Often, these investors won’t read the rest of the business plan unless your executive summary is convincing enough. It shouldn’t be longer than one page, and should provide a high-level overview of your business idea that persuades an investor to continue reading.

Your executive summary should include every section described below, but condensed to include the most important information so a busy reviewer can get the idea quickly.

This is where you’ll go into detail about your business concept and company, explaining what you do, why you do it, and the problems you plan to solve.

You should include information regarding your business’s structure, goals and objectives, as well as the consumers or businesses you plan on serving. You can also include your cultural philosophy, principles, and ideals.

All this should be written to explain why your business is a good investment bet.

Company Structure & Management

If you plan on raising money from investors, they will want to know how you structure your business and who runs it. This means determining how your business is structured legally, and including that information in your business plan.

State whether or not you are or plan to incorporate as a C-corporation, S-corporation, or limited liability company (LLC), and show who will be running each part of the business and describe how each member will contribute to the company..

Documenting the legal structure and management team in your business plan regardless of fundraising strategies will ultimately be helpful, as you will have all your business entity information recorded for any future needs.

Products or Services

Explain what you plan to sell and why. How will it benefit your customers or the businesses you plan to serve? In the life sciences sector, sharing how you plan to handle intellectual property is incredibly important.

If you’re performing research and development, you’ll want to include comprehensive details.

Market Analysis

Many investors will want to know an analysis of your target market, the size and growth of that market, and why you’re targeting it.

Market research—specifically, researching your competitors—should give you a good idea of what your target industry and market looks like. It will show you what other businesses are doing and whether or not it’s working.

This type of competitive analysis will also help you understand their strengths and weaknesses, and how you can position yourself.

Looking for themes and trends can help you get an idea of what successful companies do, why they do it, and how you can improve on it. Including this information in your business plan will help investors see how your business fits into the target market, and whether or not you have any competitive advantages.

Sales & Marketing Plans

Creating these two documents is extremely important because it will define how exactly you will market to customers, as well as how you will convince them to purchase the product or service you’re offering.

While sales strategies and marketing strategies are somewhat different, they are often talked about together, as sales and marketing departments work closely to achieve business goals.

Although there is no single way to approach creating a marketing strategy, there are some best practices that many entrepreneurs in various industries typically follow. These best practices include:

Include your marketing and sales strategy in your business plan by outlining your current marketing plan. Explain what your ideal customer demographics are and why, show how your strategy fits that actual or potential customer, and include your value propositions. Incorporate how you plan to attract and retain their business as well.

As well, this section should also describe how you’ll actually make a sale. Refer back to this section when describing your financial projections.

Funding Requests

If you’re looking for outside investments to fund or finance your company, you’ll need to include a funding request section. If you’re not planning to ask, you can skip this section entirely.

Although investors are an excellent resource (large cash injections, wide network to leverage), there are other ways to fund your business without using investors.

Use this section to include important information on your business’s funding needs, as well as future financial plans and projections.

Include how much funding you may need and when you’ll need it, whether you prefer equity or debt, the terms you’d like, and the length of time this request will cover. Furthermore, describe how you’ll use your funds.

Specify whether it’s for hiring and salaries, equipment and supplies, or bills that need to be paid. (It could be for all of these.)

Include a description of your future financial plans. It should include any loan repayment schedules and plans to sell the business. You’ll also want to include your exit strategy , letting investors know how they will be able to exit the deal should they wish.

An exit strategy can be a number of things, from initial public offering (IPO) or merger and acquisition (M&A) to a management buyout.

Financial Plan & Projections

The financial plan section is used to illustrate your projected financial position, as well as a number of financial statements.

It can be used to supplement your funding request and should show your company’s stability.

You’ll want to include the most important views of your financials, to showcase your business’s financial health. If you have income statements , balance sheets , and cash flow statements you can provide, make sure you do.

Depending on your audience, it may also be helpful to provide a financial forecast for the next five years. Include projected income statements, balance sheets, cash flow statements, and capital expenditure budgets, and describe your projected cash-flow statement.

It can identify gaps or negative cash flow, helping you adjust your operations accordingly. Lastly, match these projections with your requested funding so investors understand why you’re requesting that specific amount.

Business Plan Template Examples

You can use a business plan template to write an effective business plan. These templates typically provide step-by-step instructions, or enough detail about each section, to help guide you through the process.

We’ve gone ahead and collected a few resources we believe in, and have provided them here for you:

In conclusion

As tedious as it may sound, writing a great business plan can help convince others that you have a viable business idea on your hands.

With an excellent business plan, you’ll likely have an easier time getting people to work with you, whether as a fellow founder, an employee, or as an investor.

Lastly, even if you’re not actively seeking out funding, it’s an excellent exercise that will leave you understanding your business inside and out.

These articles are designed to be informational and do not represent legal advice. Before making any legal or financial business decisions, you should consult with a professional who can advise you based on your individual situation.

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Writing your business plan

Lorin Cohen 1

Nature Biotechnology volume 20 , pages BE33–BE35 ( 2002 ) Cite this article

Metrics details

Lorin Cohen describes what you need to include in your business plan to ensure that it is an effective tool for fundraising.

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After three years in the laboratory, your research team has made an unprecedented scientific breakthrough. Further evaluation confirms the value of this discovery, the potential of which is even greater than you first expected. In fact, the research has so much potential, you are certain investors and angels will be falling over themselves to fund your work and turn it into a commercial venture. Think again.

Like many other bioentrepreneurs, you are now about to experience one of the most challenging aspects of product development—securing the capital and resources needed to bring a technology to market. Although there will always be investors interested in exciting opportunities, you will have to be well prepared and patient to successfully raise capital today.

Commercialization of science, especially the development of a new drug, costs hundreds of millions of dollars and can take 15 years or more. The majority of these expenses are typically underwritten by outside sources, which must be solicited and secured by the management team. Whether you are soliciting venture capitalists, strategic partners, investment bankers, or private equity, you will need a business plan with which to initiate the dialogue.

However, most “professional” investors see more than a hundred plans every week—so if your plan does not grab the reader's interest, you may not even make it to the initial analysis round. To that end, it is imperative that your plan provide potential investors with confidence that your technology will lead to revenue, profit, and significant market share, based on the company's fundamentals and the marketplace.

Although each plan is as unique as the business it describes, there are key elements that should be present in any plan. Here we offer an overview of the most common topics and key strategic elements that should be included in your business plan. These suggestions are based upon a proven methodology that has been used to successfully complete hundreds of business plans over the past two decades (see also “ Business plan do's and don'ts ”).

Executive summary

Your plan should start with a brief (two- to five-page) summary providing the reader with a solid overview of your business. The opening paragraph should be strong, giving the reader an instant understanding of your ultimate goals. An effective summary should be able to stand alone, and should entice the reader without giving too much proprietary detail away. Specifically, an executive summary should include an overview of the technology, the company's near- and long-term objectives, the key points of the strategic plan achieve those goals, the revenue model, and summary financial projections.

The market section should discuss the parameters of the key sector in which the company operates. There may be many potential applications of your innovation, but if your parameters are too broad, most investors will see the flip side—that you will be spread so thin that you will not have enough resources to apportion a sufficient amount to each goal. Therefore, limit your efforts to one or two objectives in the near term.

It is also important that these sectors be well defined. Is the target market substantial and sustainable? Who are the customers—are they patients, doctors, drug manufacturers, clinical research organizations (CROs)? What trends and regulations might influence this sector in the future: for example, are certain brand-name pharmaceuticals soon to come off patent?

If there are no figures available for the size of the market in question, you can lead the reader to the appropriate conclusion using anecdotal information. For example, a client developing a new diagnostic for Alzheimer's disease cited the increasing size of the population of people over 65 years of age, as baby boomers reach the age of onset of the disease, as an indicator of the projected market.

Investors will expect you to be well informed about the competitive environment. Do not make the mistake of stating that you have no competitors—you certainly do. Your customers are already meeting their needs in some manner, even though they may not be achieving the level of satisfaction or efficacy that your new solution will provide. For example, the drug they take today may provide some relief for their symptoms, whereas your pill will eliminate them. Perhaps your diagnostic is accurate in 98% of cases, as compared with the competition's 87% accuracy rate.

Your objective in the business plan is to illustrate the current unmet need within the market and how your product fills this gap. Specifically, explain how your product is, for example, faster, more reliable, and more cost-effective than what is already available and how those advantages will benefit the user and other members of the market, making a clear case that there is a demand for this benefit. For example, you would not be justified in taking five years and $100 million to develop a digital thermometer for consumers that is accurate to the thousandth of a degree. It is also important that you indicate how long you anticipate maintaining your competitive advantage; for example, you may hold a patent that puts you 18 months ahead of the competition.

You are probably thinking, “At last, science, that's the easy part”; but remember your audience. You are writing a business plan, not a white paper or peer-reviewed journal article. Whereas you want to generate interest in, and support for, your work, the readers of this business plan are looking for evidence that your technology could generate income—the more, and the sooner, the better.

You will certainly need to describe your technology within the business plan; however, it should be explained in clear, familiar terms. Like most bioentrepreneurs, you are likely quite passionate about your technology, having lived with it for quite some time. It might be best to have a “detached” party read the science section before you submit your plan. Make sure they can understand it and can recount it to you accurately.

A strategy for growth

The strategy for the growth of the company is the essence of your business plan. How are you going to achieve your goals? How will you differentiate your product from the competition? What efforts are you going to undertake in the pursuit of these objectives? Common activities include the sale of a product in less regulated international markets, pursuit of licensing agreements in unrelated sectors, securing “fee-for-service” research contracts, establishing joint ventures with strategic partners, and the like. Each campaign must be geared toward achieving the company's long-term objectives.

Be specific—establish milestones that can be measured. Investors will want to know how long their financial contributions will last you, and what they will be used for. Your chance of success with investors improves substantially if they feel you can account for the funds. Thus, if you tell investors you need $2 million to hire a manager to take a product into phase 3 trials, recruit patients, and commence manufacturing of the product for these trials, and you achieve those objectives within the budget, they are far more likely to provide you with additional capital when you move on to the next phase of development. If you miss the mark and do not accomplish your goals, you will have to return to your supporters hat in hand, and spend much time explaining your shortcomings rather than your successes.

Investors will also want a detailed account of how much capital you need, the timing of the infusions, and your intentions for “their” money. Be sure that all items discussed in your growth strategy are accounted for in the projections. What will additions to the management team cost (e.g., benefits, stock options, advisor fees)? What are the expenses associated with engaging an experienced CRO? What type of travel will be required to oversee your operations in, say, the Pacific Rim? What will it cost you to manufacture your product under Good Manufacturing Practice guidelines so that you can complete phase 3 trials? If you are fortunate enough to have an application that is or will soon be generating revenue, what is or will be your revenue model (product sales, licensing fees)?

Often the best way to get a handle on these expenses is to tie them together in a flow chart. Map out each of the activities necessary to achieve your goal and assign a cost to every one. This will enable you to visualize and prioritize all the efforts that must be undertaken to reach your goals. Do not forget to include the day-to-day expenses, or “burn rate,” associated with running your operation. Often companies underestimate these needs during a time of growth. How much space will you need for another laboratory to initiate testing of a new compound, and can a team of three truly oversee your national sales drive effectively?

It may be a cliché, but it is true that whereas some investors bet on the horse, others bet on the jockey. You should therefore show that you have a management team with the skill set necessary to execute the action plan, and that they have the necessary commitment to succeed. Provide short biographies of key members of senior management and key advisors, including all relevant experience and associations. It is not, however, necessary to provide a 12-page résumé on each board member; that information can be forwarded to interested parties on request.

Financial projections

The financial projections essentially present your business plan in dollars and cents. You should include three- to five-year “Statements of Operations and Cash Flow.” If your company is beyond the research and development stage (that is, it is operational and is generating revenue), you will also want to include a balance sheet.

Potential investors will want to see financial projections; however, they may be equally interested in the underlying assumptions. An investor reviewing your plan may have questions regarding your projections, and if they have to contact you to ask questions and review figures, that may be enough of an inconvenience to stop the process. It therefore is critical that your plan include a comprehensive overview of the factors used to generate your projections. These figures do not need to be refined down to the cent, but they should enable the reader to determine, for example, your pricing, units sold, operating expenses, and items included in research and development costs.

This information enables the reader to challenge the projections provided, adjusting the assumptions based on their own experience. For instance, a potential strategic partner might evaluate your projections differently knowing that their purchasing capabilities would reduce the price of raw materials by 25%.

Raising capital is a difficult and time-consuming task. Investors will not typically provide you with funding much beyond a 12–18 month horizon. They will likely feel that their funds will perform better under their own management rather than in your bank account. Because the expenses associated with the commercialization of a new technology typically range into the hundreds of millions of dollars, it is likely that you will have to go back to the “well” several times during your development process. Even if you find a powerful strategic partner with deep pockets, you will regularly have to justify your budgets. This process can be daunting, even for experienced business professionals, but a clear and concise business plan will serve you well in many ways. The mere exercise of creating one should provide you with insight into your company's strengths and weaknesses.

Be sure to get the input of key personnel in the various divisions of your business in writing the business plan, because if they do not “buy into” the plan, your chances of success are reduced. If you do not feel that your team is capable of developing an effective plan in a timely manner, do not hesitate to contract a professional to manage the project on your behalf. Professionally written plans are common within all industries and will serve you far better than an internally generated plan that is incomplete.

Finally, remember that this is a business plan —it is not scientific document and it is not written in stone. With an open mind and an aptitude for flexibility, you will be able to raise capital and pursue viable opportunities. The resulting document not only will be a valuable tool in raising capital, it can be used to secure strategic partners, recruit, and serve as an internal roadmap for growth.

Box 1: Business plan do's and don'ts

• Highlight the business opportunities associated with the venture's science

• Be realistic in establishing milestones

• Create the plan around “moderate” assumptions

• Plan an infrastructure that will accommodate growth

• Write clearly and use graphics when appropriate

• Mistake an exciting technology for a business

• Ignore the weaknesses in your company or plan

• Overlook the competition

• Include untruths, semi-truths, or wishful thinking

• Write anything you cannot defend in meetings with investors

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Biotech Business Plan Sample

Biotech Business Plan Sample

Biotechnology has helped to improve the lives of millions if not billions of people from all across the globe. The high demand for biotech products and services has resulted in an influx in the number of individuals want to venture into this industry. If you are planning to travel this road, it is important that you hire an expert to write a professional business plan for biotech for you.

For many years, OGSCapital has been helping entrepreneurs like you who have a goal and a dream to run a profitable business succeed. One of the corner pillars that our biotech startup business plan service packages are founded on is professionalism. Over the years, we have worked smart to come up with a set of protocols and processes that enable us to deliver nothing but the best biotech startup business plans to our clients. Our team undertakes regular training courses that help them to stay abreast of the new business plan writing techniques. Unlike other business writing firms, we do not use or have any business templates in our possession. Instead, we use our deep understanding of the business world and inherent ability to write quality biotechnology business plans.

Here are the primary reasons why you need an expertly written biotechnology business plan.

Biotech Business Plan Sample

Scale Up Existing Business

If you already have a business already, but you want to focus on biotechnology to scale it to greater heights, you can do that by using a business plan as the roadmap to your success. The plan will clearly articulate the specific amount of resources that you should allocate to the new business as well help you create a winning strategy to help you achieve your short and long-term goals and objectives. Our professional business analysts, researchers, and writers will come together and write a quality business plan that will elevate the business to the next level.

Support Loan Application

Submitting loan application forms to the financial institution or individual lender does not guarantee you financing. You need to show the bank or investor that you have what it takes to ensure that the biotech business takes off successfully and becomes profitable. Ultimately, the bank will need you to service the loan, and the investors will want a return on the investment group with a business plan after a given period.

When you contact us, we will carefully evaluate your business proposal and come up with a plan that you can present to the finances as proof that you are committed and capable of establishing and running the business like a professional in the biotech industry. The business plan for biotech company will cover all the main point and explain why your idea is feasible to the investors.

Chronologic Steps of Creating a New Business

One of the major hurdles that companies are faced with when launching a new business is knowing the specific steps that they should take to avoid pitfalls and regrets along the way. By trusting a legally accredited and reputable business writer with your plan, you will be able to identify the right steps that you should take during the initial stages and even after the business is fully operational. For instance, we will use of expertise, knowledge, and skills to determine the specific resources that you will need at every stage of the business. We will also go an extra mile and explain to you some of the scenarios that you can expect along the way and how you should respond to them.

Guidance When Hiring Professionals

It is not possible to biotech company on your own. You need to have a team of experts to help you make solid decisions that will catapult and point your business in the right direction. For example, you need accountants to help you budget and file tax returns at the end of the financial year correctly. The company will also need a group of legally accredited and reputable attorneys to deal with all legal matters. With a group of committed, highly trained and well-educated business plan biotech writers and consultants on your side, you will be able to know the professionals that you should hire.

The plan will also give you clear guidelines on how to go about the hiring process to get the best candidates from the job market. If you need expert assistance to interview applicants, our experts can come to your rescue and conduct the interviews for you without charging you a fortune.

Bring On Board Business Partners

If you want to scale up the business faster and more conveniently, it is recommended to look for business partners who can work with you to establish and grow the business. The ideal partners should have similar business goals and objectives as you, and committed to ensuring that the business achieves the set goals and objectives. With a biotech startup business plan roadmap, you will be able to discuss all the business strategies with the partners before signing the agreement. To avert any inconveniences along the way, our team can come in and collect all the views and recommendations put across by the partners and use them to come up with a comprehensive and implementable plan for the company.

Cementing New Business Deals and Alliances

Once the business is up and running, many enterprises will present proposals to join you as business partners. It is paramount to make sure that such alliances are made diligently and carefully to ensure that all the decisions agreed upon in the boardroom meets are informed and incapable of spelling doom for your business.

We take pride in the fact that we have a task force of professionals who have the past helped oversee alliance business meetings. Using their vast knowledge and understanding of the process, they will help you make intelligent decisions. We will also give you a detailed plan on how to set targets for the new partnerships as well as recommend the most appropriate channels that you should use to communicate with the alliances to foster good co-existing and a favorable working environment.

Propose Professional Ways of Dealing with Displacement

Displacement is a valuable and an essential business concept that you need to understand and deal with professionally at different stages of the business growth. Our business experts will help you to understand the plausible active and negative impacts that this concept could have on your business. They will also give you a set of clear recommendations to help you deal with displacement like a professional. All this information will be chronologically included in the business plan. For more details about this practical business concept, contact us today. We will also give you a few biotechnology business plan examples to help you understand the concept better and how it can affect your business.

Raising enough capital to meet all the business operating costs is a major problem to most startup in the biotechnology industry. We can assist you to jump this hurdle by not only giving you ideas on where you can get financing. Our financial experts will also help you manage the capital that you get from investors and financial institutions in form of loans well.

Here are tips for raising startup capital for your new biotech startup business. We have tested and used them in the recent past to secure capital for our clients.

Get to Know the Investor Audience

This is one of the most crucial yet a staggering number of people who want to venture into the biotechnology pay little attention to. The two ways of knowing your audience are by evaluating the investor’s firm and the partner which in this case is you. The ideal investment firm should have at least managed to raise a fund over the last four years or so. If not, there is a high probability that they are just out to meet you to stay relevant and credible in the market. Our professionals will give you a list of investment firms that are trusted and reliable. We also help you write a credible business plan to increase your chances of getting funding.

Understand your Strengths and Weakness

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

The most successful companies in the world today are owned and managed by business experts who understand their strengths and weaknesses. You need to have a vivid mental picture and understanding of what you are and what you are not. Trying to do everything in this industry is counterproductive and will most likely result in wastage of resources. Focus on one thing and be true to it. Unlike other business writing firms that shoehorn business plan biotechnology templates to a conventional biotech startup script with the hope that it will appeal the investors is a prescription for failure.

Our expert business plan writers will help you to discover your strengths and weakness. They will work smart and hard to come up with a script that is based on an in-depth understanding of the target audience and your capabilities.

Base your Business Valuation Expectations on the Current Economy

Just a few years ago, the world economy collapsed and depressed virtually all valuations of biotech startups business. Luckily, the current lively IPO market is encouraging investors to channel money to the future biotech businesses across the globe. The current market clearing price is the right valuation for your startup. That said; it is important to note that the current market trends are very volatile. They can change at any time, and so it is imperative to put in place plans for ensuring that your business stands the test of time when the economic tide changes course. We will help you come up with an accurate valuation that will promote sustainability of your business. To do this, our professionals will spend time evaluating the current economy and the various factors that have a direct impact on the success of companies in this niche.

How you introduce the Business to Venture Firms Matters

Biotech Business Plan Sample

Gone are the days when cold calling would help a new business to get funding. Another strategy that is no longer relevant is hiring an investment advisory firm to help you raise your first round of financing in a bid to get to the top level venture firms. Use your creativity and zeal to come up with a unique and exciting way of introducing your business idea to the trading partners or investment firms that you want. This being probably your first time to try this new method of presenting your company to venture firms, it is understandable to be confused at first. However, that should not hold you back. We will help place you miles ahead of the competition by giving you tested and proven ways of introducing yourself to venture firms.

Consider the Long Term Capital Needs of your Business and its Liquidity Paths

If you look at the biotech startup business plan example that we sent you, you will clearly see the great lengths that our teams go to create a long-term business plan for our clients. In addition, we make sure that the plan puts into consideration the liquidity paths. One of the strategies that we use to ensure that the plan is as close to reality or the situation on the ground as possible is by coming up with plausible descriptive scenarios of a liquidity event that could rock your business such as an IPO. Our business consultants will carry out liquidity and funding analysis and use the results to come up with a solid plan that you can count on to safeguard the financial stability of your business.

Focus on Science and Research Studies Data

One of the main reasons why most biotech business plans fall short of expectations is because they concentrate on discussing why particular conditions such as heart failure and Alzheimer are “big” diseases that need to be resolved. The venture firms that you want to engage most likely have this information. To avoid your proposal being rejected, you should focus more on the investment decisions. The investor needs to know that the company will have a real positive impact on patients. We will help you do this by professionally framing your business plan. We will also collect, analyze, and layout the data supporting your business idea in a thoughtful and easy to understand way.

Take Legal Advice Seriously

Skimping on legal advice when laying out the foundations for your business will make it difficult to achieve your entrepreneurial skills. Nothing compromises a new biotech business fundraising momentum during the initial stages than weak corporate fundamentals, cap tables, unusual structures, and poorly designed licensed agreements. By hiring us, we will make sure that all legal matters are well-taken care of. Over the years, we have fostered good working relationships with experts in the biotechnology industry whom we reach out to for advice when writing business plans.

Also, our legal team of experts will carefully review the options and the proposed license framework before submitting it to the venture firms to ensure that it meets all the requirements. Doing so will greatly help in ensuring that your business succeeds and eliminate unnecessary hurdles along the way.

Laser Sharp Understanding of Risk Management and Mitigation Mechanisms

Just like any other business venture, you will need to take calculated risks once in a while. Knowing how to mitigate the risks will help your business to stand the test of time. Our risk management experts will help you come up with the plans. We will also create a “de-risking” timeline to encourage investors to come on board and invest in your company before the next risk reduction phase. Concisely, we will craft a business plan that will paint a thoughtful image of your company to the venture firms.

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biotechnology business plan example

A new portfolio model for biotech

Article"> Article (7 pages)

Until recently, biotech companies tended to be founded with a focus on a single technology or biological pathway. An early exemplar of this was Genentech, founded in 1976 on the promise of recombinant DNA to generate proteins relevant for human health. 1 1. Sally Smith Hughes, Genentech: The Beginnings of Biotech , Chicago, IL: University of Chicago Press, 2011. Proof of concept came with the production of the hormone somatostatin in 1977, and the company made its synthetic insulin breakthrough in 1978, alleviating the need to harvest the protein from animal pancreases.

Over the past five years, however, an innovative business model has emerged for biotech. In it, a portfolio manager controls a set of companies spanning multiple technologies and disease areas. Instead of focusing on a single technology or in the traditional way, the portfolio manager uses a distinctive form of expertise—such as in fundraising, investment, venture creation, R&D, manufacturing, commercial management, leadership, and broad credibility—to start a suite of subsidiaries, each dedicated to an individual drug program.

That portfolio model is being pioneered by companies such as BridgeBio and Roivant Sciences. Each has a central management team with a distinctive skill set and a diversified portfolio of programs covering different therapeutic areas, indications, and technologies. The portfolio managers not only make investment decisions but also play critical roles in managing the portfolio companies, with varying levels of direct control over decision making in them. Similar portfolio models have been adopted by other companies, including Biohaven Pharmaceuticals, ElevateBio, Gossamer Bio, Nimbus Therapeutics, and PureTech. As of August 2020, such companies had raised approximately $6 billion in capital and had an estimated public- and private-market valuation of approximately $20 billion (Exhibit 1).

A number of venture-capital investors, such as Atlas Venture and Flagship Pioneering, share some similarities with the portfolio model for biotech because they engage in venture creation and early-stage-company management and may sometimes have some direct control. While there are both advantages and disadvantages to employing a portfolio model, the approach is gaining in use and reshaping the R&D landscape for biotech.

What are the advantages of the portfolio model?

In the traditional biotech-investment model, investors bet on a company’s technology or understanding of a disease. That can be a risky bet, with roughly one in 20 preclinical-stage biotech assets making it to launch. 2 2. Joseph A. DiMasi, Henry G. Grabowski, and Ronald W. Hansen, “Innovation in the pharmaceutical industry: New estimates of R&D costs,” Journal of Health Economics , May 2016, Volume 47, pp. 20–33, sciencedirect.com. In the portfolio model, investors put capital behind a central management team that offers a distinctive edge and harnesses its expertise to pursue many different bets. Investors can leave their capital invested in a management team over the long term. Individual entities within a portfolio may reach an IPO or be sold off, but the portfolio-management team continues.

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The new model can also allow a portfolio manager to raise capital from a broader group of investors, such as those that seek exposure to early-stage biotech, lack the technical-due-diligence capabilities or risk appetite for individual bets, and wish to diversify their risk. Investors that believe in the success of an individual subsidiary can sometimes follow up with direct investments at a later stage. Investors without biotech or life-science expertise can also rely on the portfolio manager’s expertise, saving themselves the time of performing due diligence on each new play executed by the portfolio manager.

Companies within a portfolio each focus on a narrow program, often a single drug. Whereas large companies have multiple assets in development at any one time, each company in a portfolio can be dedicated to a single asset or small family of assets. With a team focused exclusively on one program that determines the success or failure of the whole business, governance and resource allocation are simplified. Asset valuation may be more accurate, too, since investors valuing early-stage companies tend to focus on the lead asset, with the rest of the pipeline sometimes being unfairly discounted.

The single-asset focus of individual portfolio companies also gives the portfolio managers flexibility in capital financing. Portfolio managers can raise funds centrally through private markets or IPOs. The same options are available for individual companies. Portfolio managers with Wall Street or venture-capital expertise have been particularly creative in their financing strategies.

The portfolio model is also highly attractive to employees. Portfolio companies have successfully recruited top biomedical personnel who sometimes have little previous experience into their executive roles because the resources and expertise of the portfolio managers’ central teams can complement the new executives’ deep biomedical expertise. Portfolio managers have also attracted a growing number of skilled professionals from Wall Street, consulting firms, and even the biopharma industry. The roles available to people with those backgrounds are attractive in responsibility, learning opportunities, and compensation.

A single-asset company structure creates clear financial incentives for employees because performance-related pay is directly tied to one program. Such a structure seems to appeal to senior talent seeking greater financial benefits with less bureaucratic complexity than they might see at a large pharma company. It also appeals to junior talent looking for start-up experience with some financial upside but less risk than in an independent venture. If a company should fail, its employees may be able to pursue other options in the portfolio.

Portfolios also offer flexibility in resourcing when general and administrative functions are managed centrally and a portfolio-management team can tap into relevant expertise. For example, a central team could bring in biopharma veterans from an operations or commercialization team to support subsidiaries in making critical decisions at inflection points. More broadly, the portfolio model allows early-stage R&D platforms to access scaled-up capabilities and resources such as procurement functions, lab software subscriptions, and leasing.

Finally, there is some emerging evidence that the portfolio model is an effective R&D machine. In 2020, BridgeBio reported more than 20 disclosed programs in its pipeline, more than ten investigational-new-drug applications submitted since 2015, 16 ongoing clinical trials, and two product launches expected in 2021. 3 3. R&D Day , BridgeBio, September 29, 2020, investor.bridgebio.com.

What are the disadvantages of the portfolio model?

Any portfolio could accumulate risk and give rise to systemic failure. Diversifying based on a central team’s strength is a challenge. A portfolio manager in cell-therapy manufacturing, say, would need to place bets across a range of manufacturing methods, cell types, indications, and locations. Even then, the potential for a portfolio-wide failure would remain. That is true of any specialism—especially, perhaps, those focused on a biology or disease hypothesis. For instance, a portfolio based on the amyloid hypothesis for Alzheimer’s disease would have failed.

Portfolios may also create inefficiencies by sustaining programs that should fail. Portfolio managers have more cash on hand than an individual biotech would, though not necessarily on a per-asset basis. That allows managers to fund programs for longer than may be prudent. Diligence and discipline in resource allocation are needed to prevent such waste. Similarly, too many maturing clinical programs can rapidly expand the capital needs of a portfolio, creating an urgent need for private or public fundraising.

Another potential downside is that, with a central portfolio-management team and distributed asset-leadership teams, decision-making clarity can suffer. Portfolio managers need to be clear as to where their CEOs’ autonomy begins and ends, who controls the allocation of centrally held resources, and how disputes should be resolved.

Finally, centralizing critical functions has both advantages and disadvantages. Centralized functions can bring economies of scope and scale and foster an environment centered on customer needs. That enables capability developers to focus on creating value and opens up a rich testing ground for refining and improving offerings, as seen in projects such as Roivant Science’s Datavant and VantAI. On the downside, a company has to compete for time and resources with other companies in the portfolio and may not get the service it needs from central functions. Moreover, some internal high-need use cases may be given lower priority than larger use cases for external customers. As portfolio managers work to create efficient core functions, they may also shortchange functions, such as pharmacovigilance and quality, that tend to mature in later-stage biotech companies.

What is driving the growth of portfolio-model use in biotech?

A traditional biopharma-innovation model is based on a specific technology, a biological insight, or both (for example, using exon-skipping technology to treat Duchenne muscular dystrophy). By contrast, the portfolio model in biotech is based on more abstract propositions, such as neglected monogenic diseases, abandoned drug arbitrage, expertise in developing and manufacturing cell therapies, and excellence in business development. Raising capital to pursue options like those requires a portfolio structure.

Venture creation is maturing as managers and investors build portfolios and the supply of talent grows. The new generation of flexible junior operators and investors makes for ideal employees for a portfolio manager. Such workers have the right training to dedicate time to a subsidiary, float it within a portfolio, and support an investing team.

Many early-stage biotech companies are keen to retain control and keep as much value for themselves as possible, rather than ceding ground to pharma companies. They represent growing shares of innovation and originators launching their own drugs (Exhibit 2).

A portfolio manager with access to pooled capital offers asset developers an alternative to the pharma-company route. When a portfolio manager acquires or seeds a new company, that company will likely have access to a larger pool of capital, which provides the originator with financing options outside pharma-company acquisition and IPO. Even so, pharma companies are likely to offer high premiums for strategic acquisitions, as well as compelling liquidity options, for biotech shareholders. Competition for assets looks likely to increase as portfolio managers enter the field. At the end of the day, portfolio managers will be also looking for liquidity, but with their ability to hold assets longer, they may give originators the option of holding their stakes deeper into development.

In spite of the downturn associated with the COVID-19 crisis, pharma companies still have significant capital at their disposal: the top ten companies have a near-record $116 billion in cash on hand (Exhibit 3). Meanwhile, venture-capital investors continue to invest at scale, spending $16.6 billion in 2019 across 866 pharma and biotech deals. 4 4. Venture Monitor: Q4 2019 , joint report by National Venture Capital Association and PitchBook Data, January 27, 2020, pitchbook.com. Private-equity investors have entered life sciences too. 5 5. Henny Sender, “How private equity overcame its fear of dabbling in drugs,” Financial Times , July 7, 2019, ft.com. All in all, plenty of investment dollars are available for biotech companies at various stages of development.

Innovative asset classes are in high demand, as seen in a number of large gene-therapy acquisitions in the past few years. AveXis was bought by Novartis for $8.7 billion, Spark Therapeutics by F. Hoffmann-La Roche for $4.8 billion, Audentes Therapeutics by Astellas Pharma for $3.0 billion, and Nightstar Therapeutics by Biogen for $0.8 billion. 6 6. “Astellas completes acquisition of Audentes Therapeutics,” Astellas Pharma, January 16, 2020, astellas.com; “Biogen completes acquisition of Nightstar Therapeutics for approximately $800 million,” Biogen, June 7, 2019, investors.biogen.com; “Spark Therapeutics enters into definitive merger agreement with Roche,” Spark Therapeutics, February 25, 2019, sparktx.com. Those deals were not only large, they also commanded high premiums. Both Audentes Therapeutics and Spark Therapeutics were acquired at a more than 100 percent premium over the previous day’s close. 7 7. Angus Liu, “The top 10 largest biopharma M&A deals in 2019,” FiercePharma, January 6, 2020, fiercepharma.com.

How could the portfolio model disrupt R&D in biotech?

The impact of using the portfolio model will differ for biotech companies, pharma companies, pharma-service providers, and investors.

For biotech companies, the portfolio model represents an alternative to an acquisition or IPO. Companies have traditionally funded maturing pipelines through a combination of public investment and industry partnerships. Portfolio models—with their access to leading talent from discovery to launch, shared services, and subsidiary-level focus on individual assets—may be able to shepherd a program all the way to commercialization without a pharma-company partner. Partnerships can still be pursued but primarily to reduce a portfolio manager’s risk exposure to an asset, rather than to satisfy a need for expertise or capital.

For pharma companies, the portfolio model represents a two-pronged threat. It could increase competition not only for innovative assets, as mentioned previously, but also for talent. As a preemptive move, pharma companies could emulate portfolio managers by introducing equity-based incentive structures for their own internal-asset teams to reward winners for the success of their programs. This would be similar to an internal version of the earnout or licensing models that pharma companies use for external partnerships. We see some early evidence of that change emerging—for example, when Bayer acquired BlueRock Therapeutics, Bayer left the cell therapy company operating as an independent company. 8 8. “Bayer acquires BlueRock Therapeutics to build leading position in cell therapy,” Bayer, August 8, 2019, media.bayer.com.

Competition among pharma-service providers could increase as central functions are externalized. Companies such as Datavant and VantAI, as well as those with a central manufacturing capability, such as ElevateBio, are emerging as important forces in the pharma-services landscape. In this way, a new wave of vendors could emerge to compete with existing contract research organizations, contract development-and-manufacturing organizations, and data and analytics specialists.

For investors, the portfolio model offers three benefits. First, the stability provided by portfolio-management teams may appeal to investors with long horizons, such as pension funds and sovereign wealth funds, that are seeking attractive ways to invest in a traditionally risky asset class. Second, the portfolio model expands the options for biotech investment beyond those offered by an asset- or platform-based approach, allowing investors to support otherwise unattainable areas, such as abandoned asset arbitrage. And third, those two benefits may attract new classes of investors that see exciting opportunities in an industry they have not previously considered investing in.

The portfolio model has emerged as an innovative solution to biotech financing and operations—and a way for a strong central team to maximize its impact. While portfolio managers have experienced some clinical-trial setbacks over the past few years, the world will learn more about the long-term success of the model in the next few years, with pipelines developing and regulatory and commercial success being tested. As companies mature and clinical-trial data flow in, the industry will be able to judge how well the portfolio model performs compared with others. If the signs are positive, changes in the dynamics of biotech investments and operations are likely to accelerate.

About the author(s)

Joachim Bleys is a partner in McKinsey’s New York office, where Jonathan Coravos is a consultant and David Quigley is a senior partner; Edd Fleming is a senior partner in the Silicon Valley office.

The authors wish to thank Asli Aksu, Minyoung Kim, Angela McDonald, Joey Merrill, and Sheeba Soin for their contributions to this article.

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A Sample Biotech Company Business Plan Template

Are you about starting a biotech company? If YES, here is a complete sample biotech business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a biotech company.

We also took it further by analyzing and drafting a sample biotech company marketing plan template backed up by actionable guerrilla marketing ideas for biotech companies. So let’s proceed to the business planning section.

Why Start a Biotech Company?

No matter the profession you find yourself in, you can still become your own boss, as there are several business opportunities available in your field of study / training. In essence, if you are a scientist and you wish to start your own business, you can decide to start your own biotech company; it is an industry that is still green and open to creative scientist cum investors.

Starting a biotech company requires trainings, experience, creativity, reasonable startup capital, license and detailed business plan. The truth is that you can’t just wake up and launch your own biotech company; you must follow establish protocols.

This industry is highly regulated because of the potential risk involved; it is all about making use of living organism and system to develop new products. To start with, one might want to ask, what does biotech companies produce?

There are several fields that need the input of biotech companies. Fields like medicine and pharmacy, agriculture (hybrid food production, hybrid bird production and hybrid animal production et al.) and non-food industries (used in the production of biodegradable plastics and bio – fuels et al).

Although some people still have their reservation when it comes to the use biotechnology in agriculture, but the fact remains that it has contributed in no smaller measure in the increase and ease of cultivating crops and rearing of birds and animals.

If you are sure this type of business is what you truly want to do after you must have undertaken your research, the next step to follow is to write a good business plan. Below is a sample biotech company business plan template that will help you successfully write yours without much stress;

1. Industry Overview

Companies that operate in the Biotechnology industry primarily make use of living organisms or molecular and cellular techniques to provide chemicals, food and services that meet human needs. It is important to state that the Biotechnology industry does not include companies that are involved in developing small-molecule pharmaceuticals, performing contract research or manufacturing biological equipment.

A close study of the Biotechnology industry shows that the industry is growing rapidly, with revenue increases over the last five years driven by rising use of ethanol, demand for improved crop yields and the increasing medical needs of an aging population.

Even though the industry has grown, a consolidation trend has emerged as large pharmaceutical companies have increasingly targeted industry firms for acquisition, to expand their product portfolios ahead of impending patent expirations. Sustained spending on research and development, including by the federal government, will benefit the industry going forward, driving growth in revenue generation and of course profit.

The Biotechnology Industry is indeed a thriving sector of the economy of countries like Israel, Japan, India, China, United Kingdom, Germany and the united states of America. Statistics has it that in the United States alone, the industry generates a whooping sum of well over $109 billion annually from more than 2,230 registered and licensed biotechnology companies scattered all around the United States of America.

The industry is responsible for the employment of well over 218,610 people. Experts project the industry to grow at a 1.8 percent annual rate from 2011 to 2016. AbbVie, Amgen Inc., Genentech Inc., Monsanto and Gilead, have the lion share of the available market in the Biotechnology industry in the United States of America.

A recent report published by IBISWORLD shows that in the Biotechnology industry’s short history, its diversity of product offerings, markets, company sizes and funding sources have largely buffered it against major volatility from market fluctuations.

The report further stated that, high labor costs and the need for significant upfront investment in research and development (R&D) render the industry somewhat vulnerable to declines in venture capital and government funding. In the years following the recession, cutbacks across these funding sources caused industry revenue to fall.

However, growth boomed in 2015 as companies began to experience returns on their research, which can take years to develop into fully approved products. Capital markets have recovered from the recession, moderately improving the availability of industry investment capital.

The bottom line is that; the Biotechnology industry is still very much open for new entrant; the competition within the industry is not as stiff as similar industry. If your product is good, it can gain fair share of the available market in any country or region you intend launching the business.

2. Executive Summary

Bennie Polestar® Biotechnology, LLC is a licensed and standard generic biotechnology company that will be located in an industrial area in Saint Paul – Minnesota. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of a long-term renewal on an agreed terms and conditions that is favorable to us.

The facility has government approval for the kind of production business we want to run and the facility is easily accessible and we are deliberate about that because we want to facilitate easy movement of raw materials and finished products.

Bennie Polestar® Biotechnology, LLC is in the biotechnology industry to make use of living organisms or molecular and cellular techniques to provide chemicals, food and services that meet human needs. We will engage in DNA coding, mapping and sequencing, processing biotechnologies, sub cellular organisms engineering, cell and tissue culture engineering, protein sequencing, and synthesis and engineering.

We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our biotech products the opportunity to be part of the success story of our brand.

We are aware that there are several big scale and small scale biotechnology companies scattered all around the United States and Canada whose products can be found in every nooks and crannies of The United States and Canada, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that can easily accept our products and brand.

We ensured that our facility is easy to locate and we have mapped out plans to develop a far-reaching distribution network for wholesalers of biotech products all around Saint Paul – Minnesota and throughout the United States of America.

Much more than producing quality, effective and safe biotech products, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase any of our biotech product and also to become our loyal customers and ambassadors.

Bennie Polestar® Biotechnology, LLC will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our factory. We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to.

We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Bennie Polestar® Biotechnology, LLC is a family business that will be owned and managed by Dr. Bennie Polestar (PhD) and his immediate family members. Dr. Bennie Polestar who is the Chief Executive Officer of the Company has PhD in Biotechnology.

He has well over 20 years of experience working in related industry as a senior production manager prior to starting Bennie Polestar® Biotechnology, LLC. He will be working with a team of professionals to build the business and grow it to enviably height.

3. Our Products and Services

Bennie Polestar® Biotechnology, LLC is going to run a standard and licensed biotechnology company whose products will not only be sold in Saint Paul – Minnesota but also throughout the United States of America and Canada. We are in the Biotechnology industry to make profits and also to give our customers value for their money.

We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goal and objective. These are some of the products that we will be offering;

4. Our Mission and Vision Statement

Our Business Structure

Bennie Polestar® Biotechnology, LLC is a business that is established with the aim of competing favorably with other leading biotech product brands in the industry. This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Executive Officer (Owner)

Senior Research Fellow / Biotech Scientist

Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

Accountant / Cashier

Client Service Executive

Laboratory Assistant/ Plant Breeder / Glass washer:

Distribution Truck Drivers

6. SWOT Analysis

We are quite aware that there are several biotechnology companies both large and small in the United States of America and Canada which is why we are following the due process of establishing a business so as to compete favorable with them. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Bennie Polestar® Biotechnology, LLC employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Bennie Polestar® Biotechnology, LLC;

Part of what is going to count as positives for Bennie Polestar® Biotechnology, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, our state of the art biotech machines and equipment, the wide varieties of biotech products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new biotech company in the United States and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like AbbVie, Amgen Inc., Genentech Inc., Monsanto and Gilead et al are already determining the direction of the market both in the United States and in the global market.

Opportunities:

The opportunities available to biotech companies with a wide range of products that cuts across many industries are enormous. As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for biotech products and also to create our own new market. We know that it is going to requires hard work, and we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face are economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new biotech company in same location where ours is located and where our target market exists.

7. MARKET ANALYSIS

Market Trends

A close study of the trends in the Biotechnology industry shows that the industry is growing rapidly, with revenue increases over the last five years driven by rising use of ethanol, demand for improved crop yields and the increasing medical needs of an aging population.

The fact that there are several fields that need the input of biotech companies boost production makes it an industry that is worth paying attention to. Fields like medicine and pharmacy, agriculture (hybrid food production, hybrid bird production and hybrid animal production et al.) and non-food industries (used in the production of biodegradable plastics and bio – fuels et al).

8. Our Target Market

When it comes to selling biotech products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just an industry, but all the industries that make use of biotech products. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to engage in developing and producing biotech products, marketing and distributing biotech products and gaining regulatory approval for biotech products. Hence our target markets are;

Our competitive advantage

A close study of the biotech industry reveals that the market has become much more intensely competitive over the last half decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other biotech companies in Saint Paul – Minnesota and throughout the United States and Canada. Bennie Polestar® Biotechnology, LLC is launching a standard biotech product brand that will indeed become the preferred choice of residence of Saint Paul – Minnesota and every city where our biotech product will be sold.

Part of what is going to count as competitive advantage for Bennie Polestar® Biotechnology, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, our state of the art biotech production machines and equipment, the wide varieties of biotech products that we produce our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups biotech companies) in the biotechnology industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

Sources of Income

Bennie Polestar® Biotechnology, LLC is established with the aim of maximizing profits in the biotech industry in both the United States of America and Canada and we are going to go all the way to ensure that we do all it takes to sell a wide range of biotech products to a wide range of customers.

Bennie Polestar® Biotechnology, LLC will generate income by selling the following biotech products;

10. Sales Forecast

One thing is assured when it comes to biotech company, if your products are meet the expected industrial standard and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Saint Paul – Minnesota and every city where our biotech products will be sold and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the biotechnology industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Saint Paul – Minnesota.

Below is the sales projection for Bennie Polestar® Biotechnology, LLC, it is based on the location of our business and other factors as it relates to small scale and medium scale biotech company start – ups in the United States;

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing same biotech products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

Before choosing a location for Bennie Polestar® Biotechnology, LLC and also the kind of biotech products we will produce, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading biotech brands in the United States of America and Canada.

We hired experts who have good understanding of the biotechnology industry to help us develop

In other to continue to be in business and grow, we must continue to sell our biotech products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Bennie Polestar® Biotechnology, LLC will adopt the following sales and marketing approach to sell our biotech products;

11. Publicity and Advertising Strategy

In spite of the fact that our biotech manufacturing plant is a standard one with a wide range of biotech products that in few years from now will favorably compete with other leading brands in the industry like AbbVie, Amgen Inc., Genentech Inc., Monsanto and Gilead we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Bennie Polestar® Biotechnology, LLC.

Bennie Polestar® Biotechnology, LLC has a long-term plan of distributing our biotech products in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted first in Saint Paul – Minnesota before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand.

Here are the platforms we intend leveraging on to promote and advertise Bennie Polestar® Biotechnology, LLC;

12. Our Pricing Strategy

When it comes to pricing for products such as biotech products, there are two sides to the coin. We are aware of the pricing trend in the biotech industry which is why we have decided to produce various sizes of biotech products as regulated by the industry.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various biotech product brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our generic pharmaceutical product brands.

Payment Options

The payment policy adopted by Bennie Polestar® Biotechnology, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Bennie Polestar® Biotechnology, LLC will make available to her clients;

In view of the above, we have chosen banking platforms that will enable our client make payment for biotech products purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

Starting a standard biotech company is indeed a capital – intensive business. This is so because the amount required in setting up a biotech production plant is not a piecemeal. The bulk of the start – up capital will be sent on leasing or acquiring a facility, acquiring license and in purchasing biotech lab machines and equipment.

Aside from that, you are not expected to spend much except for purchase and servicing of distribution trucks, purchasing raw materials, paying of your employees and utility bills. These are the key areas where we will spend our start – up capital;

We would need an estimate of $500,000 to successfully set up our biotech company in Saint Paul – Minnesota. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Funds / Startup Capital for Bennie Polestar® Biotechnology, LLC

Bennie Polestar® Biotechnology, LLC is a family business that is owned and financed by Dr. Bennie Polestar (PhD) and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of any business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Bennie Polestar® Biotechnology, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our biotech products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Bennie Polestar® Biotechnology, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

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How to Write a Business Plan for Your Biotech Startup
Business Plan Template Examples. You can use a business plan template to write an effective business plan. These templates typically provide step-by-step instructions, or enough detail about each section, to help guide you through the process. We’ve gone ahead and collected a few resources we believe in, and have provided them here for you:
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The impact of using the portfolio model will differ for biotech companies, pharma companies, pharma-service providers, and investors. For biotech companies, the portfolio model represents an alternative to an acquisition or IPO. Companies have traditionally funded maturing pipelines through a combination of public investment and industry ...
Biotech Company Business Plan [Sample Template for 2023]
If you are sure this type of business is what you truly want to do after you must have undertaken your research, the next step to follow is to write a good business plan. Below is a sample biotech company business plan template that will help you successfully write yours without much stress; A Sample Biotech Company Business Plan Template 1.