As the Life Sciences industry continues to evolve and grow, there are myriad new opportunities for entrepreneurs to develop innovative product solutions for our most challenging problems, both industrially and clinically.
However, starting and growing your first business can be a daunting task for even the most experienced professionals. Fortunately, there are several resources available to help and I’ve compiled my top five tips to help you successfully navigate the start-up journey:
- Understand and validate the unmet need you are solving – before assembling your team, developing new innovations or crafting a business plan, ensure you have a deep understanding of the problem you are solving and why. Conduct extensive market research, both primary (e.g. feedback from key opinion leaders in the field who can be contacted via LinkedIn and other platforms) and secondary (e.g. online via PubMed, market research reports etc).
- Map your addressable market in detail – not all unmet needs present commercially attractive markets so it’s essential to thoroughly assess and define the market you plan to enter. This includes researching potential competitors (both direct and indirect) with platforms like Crunchbase, clarifying the regulatory landscape, and exploring future trends to align your efforts with where the market is heading, not only where it is today. This will help you make better decisions and increase your chances of success. Remember that the industry is constantly evolving, and entrepreneurs should stay current on new developments in order to stay competitive.
- Build a strong and diverse team that’s fit-for-purpose – you’ll need a diverse group of people with different skills and expertise to help you achieve your goals. Team building starts with understanding your own skillsets, capability gaps, working style and motivation. Look for team members who are passionate about the field, have relevant experience, and can complement your strengths. Building a strong team will not only help you develop your product or service, but it will also give you a support system to rely on when times get tough. Warm introductions from your network is a great way to meet and vet potential team members. Importantly, several studies have demonstrated that diversity drives success and should be prioritised so be sure to include a range of ethnicities, genders, neurodiverse, ages and industry sector backgrounds in your candidate pool.
- Who you know is just as important as what you know – the old adage is true so invest time in cultivating your professional network. The most effective way to build fruitful relationships is by meeting people at networking events run by student groups or professional bodies (e.g. One Nucleus and the Biotech Industry Association in the UK) and being introduced to new connections by existing ones. A common mistake made by entrepreneurs is failing to follow-up with the contacts – an initial meeting may reveal several ways that you could collaborate but it is up to you to maintain contact, provide semi-regular updates and advance discussions if you want to benefit from the opportunity.
- Raise finance from value-add investors – there are several sources of both non-dilutive and dilutive funding for start-ups to access but choose wisely; not all capital is created equally. Whether you are approaching grant-awarding bodies, institutional investors or strategic partners from Pharma and Biotech, each has requirements and motivations, which may not align with your own. Research the backgrounds of potential investors to ensure you understand their primary focus areas, track record and style of working with founders. Next, shortlist those funds who have greatest alignment with your vision and start building a relationship with their analysts and partners early in your fundraising process. Though you should always express gratitude for any funds you receive, the best investors are also thankful that you’ve allowed them to support your journey and will treat you with respect.
Starting a business in the life sciences industry can be a challenging but rewarding endeavour. By understanding the market, building a strong team, developing a solid business plan, securing funding, staying current on industry developments and being patient and persistent, entrepreneurs can increase their chances of success. While there are no guarantees in our field, tenacity and embracing a ‘growth mindset’ can help you achieve your goals.