A recent report from Ernst and Young acclaimed that the biotechnology industry finally reached profitability for the first time in history with a net income
Most would-be entrepreneurs believe that they will one day start a company, however they usually don’t know how. Starting a company cannot be haphazard. Beginning
WHAT IS IT… that propels some entrepreneurs to succeed and other to fail?
Defining Success and Failure
In order to talk about the traits of successful entrepreneurs, we must first start with a better understanding of “success” and “failure”. Success is often erroneously defined as—everything you do produces a favorable outcome. If “success” is equated with never having an idea that did not work, never having a business shut-down, or never encountering insurmountable product development problems, then there are very few successful entrepreneurs in this world, and it is near certain that you too will not be “successful”.
Most technically-oriented individuals believe that once their beloved product, (which is of great technical value) reaches commercialization, multitudes will clamor to buy their product or service. This nearsighted condition is termed “entrepreneurial myopia”. It is an ocular disease notorious for destroying promising enterprises. Entrepreneurial myopia is highly contagious, and the individuals most susceptible to this debilitating condition are typically those employed within the same organization.
What is a Value Proposition? It is NOT how the science or technology works. Moreover, it is NOT the neat things the science or technology can do. It is how your product fulfills the acute needs of the customer; it is the way your product solves a problem for its customers—the more acute the customer’s need, the greater the market will be for your product.
When starting a company, it is absolutely essential to find a good attorney experienced in biotechnology start-ups! Yes, there are boilerplate forms you can use for most every type of document, which can be found on the internet — sometimes free. However, remember you are paying for expertise and sound advice, therefore, find someone you can work with that has plenty of experience in the biotechnology industry.
Discouraging news was announced about the unlawful practices of Pfizer in marketing its drugs to physician’s using free golf, massages, and resort junkets, along with promoting off-label uses for several of their drugs (read complete story). The Justice Department said that Pfizer’s sales people created sham requests from physicians asking about unapproved drug uses and then the company mailed the information to doctors. This $2.3 billion settlement is the largest ever paid by a drug company.
Starting a biotechnology company can be invigorating, exciting and frightening all at the same time. Where will I find the money? How can I compete for world-class employees? What about lab space? I have never written a business plan before! These are a few of the myriad of issues a biotech entrepreneur must wrestle with in order to see the success envisioned by developing a life-saving product or service. If you are a first-time entrepreneur in the biotech industry, do not be disheartened.