Five Criteria for a Successful Business Plan in Biotech

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Five Criteria for a Successful Business Plan in
Biotech

• Roger Laurent Bernier, Ph.D., P.Ag.

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The Five Criteria are

• Management
• Management
• Management
• Management
• Luck

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Seriously, What About Those for a Start

• Information gathering
• Technology or product fit in the market place
• Intellectual property management e.g. protection
  and freedom to operate
• Sound financing strategy and revenue model
• Strong management corporate governance

LUCK
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Information Gathering
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The Dilbert Principe A Cubicles Eye View of
Bosses, Meetings, Managemend Fads Other
Workplace Afflictions - by Scott Adams, Harper
Business, 1996
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About Information Gathering
The Dilbert principle states   There are two
major steps to building a business plan 1.
Gather information. 2. Ignore it.
The Dilbert Principe A Cubicles Eye View of
Bosses, Meetings, Managemend Fads Other
Workplace Afflictions - by Scott Adams, Harper
Business, 1996
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Information Gathering

• The market place and your competition
• Market pull or technology push?
• Current market
• Emerging products and technologies
• Product positioning
• Business and revenue model
• Virtual, vertically-integrated, contract
  manufacturing organization, etc.
• Financial information
• Budget
• Proformas
• Use of proceeds
• Exit strategy

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Technology or Product Fit
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The Dilbert Principe A Cubicles Eye View of
Bosses, Meetings, Managemend Fads Other
Workplace Afflictions - by Scott Adams, Harper
Business, 1996
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Technology Fit

• Too late in a given market (innovative versus
  me-too product)
• Too early in a given market
• Improved functionalities
• High COGS
• Product cycle too short
• Competition
• Pricing market share

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Intellectual Property Management
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The Dilbert Principe A Cubicles Eye View of
Bosses, Meetings, Managemend Fads Other
Workplace Afflictions - by Scott Adams, Harper
Business, 1996
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Intellectual Property Management

• Is your intellectual property properly protected?
  Properly licensed?
• Do you have freedom to operate?
• Litigation strategy
• Plan the appropriate human and financial
  resources

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Sound Financing Strategy Revenue Model
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The Dilbert Principe A Cubicles Eye View of
Bosses, Meetings, Managemend Fads Other
Workplace Afflictions - by Scott Adams, Harper
Business, 1996
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Good Financing Strategy and Revenue Model

• Money is like any other commodities in your
  company
• Timing and value
• Assess all kind of financing debt, equity,
  grants, etc.
• Investors interest and exit
• Sound revenue model
• Realistic revenue forecast
• Margins
• Cashflow operating budget

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• Strong Management
• Corporate Governance

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The Dilbert Principe A Cubicles Eye View of
Bosses, Meetings, Managemend Fads Other
Workplace Afflictions - by Scott Adams, Harper
Business, 1996
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Strong Management Corporate Governance

• Think like a public company and adopt the
  appropriate measures
• Surround yourself with seasoned managers and
  directors for governance and mentorship purposes
• LISTEN and LISTEN and LISTEN

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The Ideal Business Plan

• Dont over describe the technology
• Be concise and accurate
• Patents versus applications
• FTO licensing rights and obligations
• Realistic projections including underlined
  hypothesis
• Budget always too low and sales too high!
• Avoid the We can do better unless you can prove
  it
• Never contradict yourself
• Dont be afraid to say I dont know

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In Summary, a Good Business Plan Should Answer
the Following Questions

• Who are your customers?
• How will you reach these customers?
• What is it that your customers want and how do
  you know this?
• How does your business provide customer wants?
• Do you know your business and how it should
  operate?
• Do you know your industry and the current trends
  in the market?
• How are you qualified to do what you want to
  accomplish?
• Do your assumptions make sense to someone
  unfamiliar with your business?
• Are your financial projections believable and do
  they make sense?
• How will you measure your progress financially
  and in other ways?
• What will you do to make it easy for people to do
  business with you?
• What differentiates your business from all the
  others in your industry?

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My Humble Opinion
The value of a given business plan does not
reside in the final document itself but in the
process that led to its writing.
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In Summary
The single most important aspect of a good
business plan is that it must be based on your
market and your customers' desires. What you
want, and think, as a business owner is much less
important than what your customers want and
think. The reason for your business to exist is
to create and service customers.
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THANK YOU