five criteria for a successful business plan in biotech roger laurent bernier, ph.d., p.ag

Five Criteria for a Successful Business Plan in BiotechRoger Laurent Bernier, Ph.D., P.Ag.

The Five Criteria are…

Management Management Management Management Luck…

LUCKLUCK

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

Seriously, What About Those for a Start:

Information Gathering

The Dilbert Principe – A Cubicle’s Eye View of Bosses, Meetings, Managemend Fads & Other Workplace Afflictions - by Scott Adams, Harper Business, 1996

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 Cubicle’s Eye View of Bosses, Meetings, Managemend Fads & Other Workplace Afflictions - by Scott Adams, Harper Business, 1996

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

Technology or Product Fit

The Dilbert Principe – A Cubicle’s Eye View of Bosses, Meetings, Managemend Fads & Other Workplace Afflictions - by Scott Adams, Harper Business, 1996

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

Intellectual Property Management

The Dilbert Principe – A Cubicle’s Eye View of Bosses, Meetings, Managemend Fads & Other Workplace Afflictions - by Scott Adams, Harper Business, 1996

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

Sound Financing Strategy& Revenue Model

The Dilbert Principe – A Cubicle’s Eye View of Bosses, Meetings, Managemend Fads & Other Workplace Afflictions - by Scott Adams, Harper Business, 1996

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

Strong Management &

Corporate Governance

The Dilbert Principe – A Cubicle’s Eye View of Bosses, Meetings, Managemend Fads & Other Workplace Afflictions - by Scott Adams, Harper Business, 1996

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

The Ideal Business Plan

Don’t 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 Don’t be afraid to say “I don’t know”

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?

My Humble Opinion…

The value of a given business plan does not reside inthe final document itself but in the process that led toits writing.

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.

In Summary:

THANK YOU