Business Development for young hi growth companies in the field; development & exit perspectives

Many promising product ideas soon turn into new business ventures, either built from scratch, spun off from an existing organization, or developed as an intrapreneurial venture into a new application area or market segment. Regardless of which it is, very soon everyone is confronted with the need for funds for further technology and product development until the venture begins to generate its own cash flow. All potential investors, whether they are private individuals, banks or venture capital firms, will need to see a “business plan”. With our many years experience in Science, Marketing, Sales and Finance, we are able to assist you in preparing plans which will satisfy the most demanding investors.

There are 5 steps in developing such a Business Plan:

 I.      Initial description of the basic idea and its potential benefit to future users

We start out analyzing with you the technology and its potential uses, and even more importantly, its benefits. What counts most is to understand how users currently do their work. Then the following questions must be addressed: How does the new product idea relate to the state of the art? What is its technical, scientific and economic superiority over today’s solutions? What are the entry barriers to new companies and what are the exit barriers for the old ones? How does a company protect itself from imitation by others? And what are the critical success factors?

 II.     Plan for successful market entry

Here, another series of questions must be answered: What more is needed to be prepared to present the new product to opinion leaders? What will have to be done to produce the first prototypes? What would an initial validation look like, and what is the minimum of data required? What regulatory obstacles need to be overcome? And what are the anticipated timelines for the best and worst cases?

 III.    Process Requirements until market launch and beyond

Once the groundwork has been laid, the product must be launched into the market. What is the best way to position the new development in the market? Who will provide it and promote it? How will after-sales and customer service be organized? How will further application data be generated? Who is best to coordinate this, and how will they do it?

  IV.   Assessment and summary

Potential sales need to be estimated as realisticly and as convincingly as possible. This is the most critical element when promoting a new business venture, because this is what builds credibility with the investors. Their concern is whether the promoter has thought of all contingencies and analyzed them thoroughly.

It is essential that a developer think through everything that might happen leading up to the first substantial cash flow from the venture.  It is too easy to become overly optimistic about an idea and just assume that there will be few problems and that those that do turn up will take care of themselves. If a developer has taken the trouble to subject a business plan to the scrutiny of a knowledgeable and unbiased outsider, this builds credibility with investors.

  V.    Drafting and presenting the business plan

Investors naturally have their own interests, which are usually quite different from the enthusiasm of the inventor and product developer. The analysis, language, and format of a Business Plan along with its presentation must be specifically targeted at the potential investor to clearly address all of their concerns.

Life Science Consult escorts the developer through this complex process and offers analytical depth, competence and experience in many matters that at first glance look simple. Using us as devil‘s advocate or sounding board sharpens your understanding of contingencies and prepares you for the critical questions and comments that you can expect from investors. We’ll ensure that you present yourself and your ideas convincingly!