The life science industry is thriving. The first reason, information technology has developed and managed to accommodate the needs of the global community. Second, education has directed the mass to believe in science as the most precise and accurate solution for resolving problems in life. Third, the cross-discipline nature of today’s technology has given a lot of opportunities for more people to get involved in bio-entrepreneurship.
Here, we will discuss lifesci business from the financial aspect. You will learn how to get the funding, manage the incomes, and predict the possible risks.
The Fundraising Strategy
The first step you must make when you want to start a business in any field is to raise get the funding. And today, the crowdfunding platforms on the Internet have enabled business enthusiasts of all backgrounds to gather the money they need. The most inspiring and successful story in the life science field was the Scanadu Scout. The company, Scanadu, is a Silicon Valley-based company that specializes in tests, devices, and services that can optimize healthcare.
Scanadu Scout was a project published on Indiegogo platform, and it managed to reach 8509 backers with $1,661,988 fund. It was a portable health device that can measure body temperature, heart rate, blood oxygenation, respiratory rate, ECG, and diastolic/systolic blood pressure through a skin contact on fingers or forehead. Ever since the success of the crowdfunding, media have marked Scanadu Scout as the next evolutionary step that all other health tracking gadgets should take.
However, doing things the old way can still give you some inspiration and unique opportunities. For instance, consulting with a financial advisor like LifeSci Advisors can get you access to the potential life science investors and business-to-business clients. This service also provides safer coverage for legal issues regarding the investment agreements. Consulting with an expert advisor is your most reliable option if you want to avert unnecessary risks.
Maintaining a Balance Portion of Quality and Development
The challenge in running a life science business is that you need to innovate and develop your products relentlessly. Otherwise, your competitors will catch up, and you may suffer a substantial loss in the market. Besides, some tech innovations in life science bear the inherent risks of being unethical to be commercialized. And you should not expect to contain such an issue because journalists will surely get their hands there.
Therefore, you need to allocate your budgets to develop new techs. You cannot rely only on the profits generated by a particular patented product.
Investing in Legal Security
The risk that you must be concerned with is the legal actions against your business. Your product or service may create a dissatisfied customer by mistake. And if he/she files a lawsuit and wins, your company can be at risk of bankruptcy. Therefore, you should always have all of your terms reviewed by expert lawyers who are specialized in the life science industry.
Liability insurance is another form of protection that you have to consider. When a lawsuit is processed in the court, the bureaucracy can be lengthy and redundant. With a business liability insurance, you can save your company from having to seek lawyers and deal with the paperwork by yourself. Although this step can cost you a significant amount of money, it will be worth the price.