Image Credits: pixabay.com
The biotech industry, especially in Singapore, is one of the most exciting and challenging industries to be a part of today. Successful biotech startups go on to develop solutions to some of the world’s most pressing problems and are able to turn a tidy profit while doing so. However, many biotech startups also fail to make it off the ground due to strict regulation, stiff competition, a lack of sustainable funding sources and many other factors. In such a tough business environment, new companies need to be functioning at the top of their game to succeed.
If you’re interested in starting a biotech business of your own, you’ve probably already done some preliminary research on what you need in order to succeed. Maybe you’ve already started looking for a laboratory space for rent to sidestep the cost of building your own facilities, at least while you’re just starting out. Perhaps you’ve already begun looking into research grants you can apply for or private investors you can pitch your product to. It’s in your best interest to support these preparations by developing a solid business strategy and hiring the right people to execute it.
Here are 5 tried-and-true steps you can take to set your biotech startup up for success:
Find a Place for Your Technology in the Industry
In the biotech sector, creating technologies that improve upon existing solutions is simpler and more cost-efficient than carving out an entirely new niche. Securing regulatory approval, pitching to investors, marketing and other essential business processes will be much easier if technologies similar to your product already exist. Familiarise yourself with high-performing, frequently used products in your industry to identify which ones, if any, might be comparable to yours.
Choose a Commercially Viable Concept
Ideas that seem promising in theory may not necessarily have feasible commercial applications in practice. Your concept might be too expensive to develop on a commercial scale, for instance, or your chosen research area might be too obscure to generate much profit. The existence of well-established competing technologies may also make it more difficult for you to develop a new solution that consumers will prioritise over existing alternatives, even if your own product might be safer, cheaper, or more effective.
Fortunately, there are many ways to investigate whether your idea has feasible commercial applications. You can start by reading trade and regulatory journals or researching official guidelines from organisations like the US Food and Drug Administration (FDA) or Singapore’s Health Sciences Authority (HSA). Connecting with other startups and venture capital firms in your sector may also net you some much-needed insight on the real costs of rolling out a new product or solution.
Develop a Compelling and Cohesive Story
Educating the public about your presence and about the value of your research is one of the biggest challenges for any young biotech startup. Besides cancer and other well-known scientific and health issues, the general public is generally unaware of the many problems that biotech companies work to solve. It’s best to work on crafting a striking, cohesive message from the beginning and then focus on getting the word out about your work once you have your story nailed down. This will make it easier for you to get potential investors, industry experts, and employees on board with your business concept.
Hire the Right Team
When staffing your biotech startup, keep in mind that hiring too much for technical skill over fit may have costly repercussions in the long run. Consider other attributes like ambiguity tolerance, risk tolerance, and the ability to work well in a team before you make the final call on whether a particular job candidate is a good fit for your company. As replacing an employee that turns out not to fit in well with the rest of your team can cost you a lot of time and money, it’s critical to make the right hiring decisions from the get-go.
It also makes sense to build a team for your biotech startup based on the challenges you anticipate facing as your organisation grows, rather than simply looking for people who can meet your needs in the present. Starting with only a small pool of technicians and scientists may backfire later when you start needing people to liaise with regulators, oversee manufacturing, administrate clinical trials and accomplish other duties. If you wait too long to hire such people, you may find yourself with a limited, sub-par pool of options.
Engage with Regulators Early
Biotech companies need to provide regulatory bodies with extensive data on the safety and effectiveness of their offerings before they’re allowed to bring these to market. Though many startups find it daunting to engage directly with regulators, doing so early on can help you quickly get on the right track to secure the approvals you need. Many successful biotech entrepreneurs have found regulators in Singapore much more helpful and cooperative than they would have imagined previously, so don’t be afraid to reach out to them once you’re ready to start working.
New biotech startups face considerable challenges, but learning from the accomplishments and mistakes of their predecessors can help these fledgling organizations find their footing. Following the steps above will help your startup survive and even thrive in the most competitive, fast-paced markets.
