Enterprise Dann

A Framework for
Enterprise Development
and Entrepreneurship
A Resource Pack for Bioscience
Lecturers and students
By Zo Dann and Jeff Gaskell
(Version June 06)
Funded by the Centre for Bioscience
Study Pack Guide
Aims, Learning Outcomes,

Content, Session Structure,
Syllabus
Study pack aims 1
1. To emphasise the economic importance of the
need to introduce new Bioscience products and
services to market in the UK, EU and other
parts of the world
2. To prepare the minds of Bioscientists for

enterprise. To improve the knowledge and
understanding of enterprise and
entrepreneurship in the UK HEI Bioscience
community
A Framework for Enterprise Development and Entrepreneurship 3

Study pack aims 2
3. To improve the confidence and capability of UK
Bioscience students to identify potentially
viable, innovative ideas and bring them to
market successfully
Either as independent entrepreneurs
Or as part of an intrepreneurial business

development team working in an established
organisation

Learning outcomes
Students who participate in this activity

should be able to:
Understand and reflect on entrepreneurial activity
and personal aptitude towards entrepreneurship
Identify and evaluate potential business ideas in
the Bioscience sector
Construct and present a business case for the
exploitation of their own business idea
NB: No previous knowledge of business is

required but would be advantageous
Teaching, Learning & Assessment
(TLA) framework 1
Context &
Group
Formation
Self Awareness
Idea/Concept
Generation
Idea/Concept
Selection Proposal
Project Business plan and

Management presentation
Teaching, Learning & Assessment
(TLA) framework 2
Business Business Financial

strategy planning forecasting
and risk
Intellectual The
Property management
Rights team
Market and Operations and

Marketing
competitor commercial
strategy
analysis strategy
The pitch
Study pack content
1. Learning material for 12 teaching sessions

Lecture slides with delivers notes
A short illustrative video clip
Suggested small group exercise
Extended exercise - Part completion of the Business
plan assignment
2. An assignment: Development, presentation of a
business plan in Biosciences
3. Resources and references
4. Guide for deliverers

Study topics x 12
1. The context and group formation

2. Self awareness
3. Idea generation and selection
4. Project management
5. Intellectual property rights: Patents and Trade Marks
6. Market and competitor analysis
7. Business strategy and risk analysis
8. Marketing strategy
9. Operational strategy
10. The management team
11. Financial forecasting planning
12. Pitching the idea
Where observation is concerned, chance favours
only the prepared mind
Louis Pasteur (1854)

1. Context
The Nature, Importance and

Potential of Start-Up Businesses in
the Biosciences and the Role of
Business Planning
Learning outcomes
By the end of this session students should be able

to:
Realise the importance and potential of the Biosciences
and Biotechnology particularly for the UK
Understand the meaning of entrepreneurship and
intrapreneurship and classification of business entities
Recognise some of the particular difficulties and success
factors of start up businesses in the Biosciences
Recognise the role of business planning in increasing
business success

TLA framework
Context and
Group
Formation
Self awareness
Idea/Concept
Generation
Idea/Concept
selection Proposal

management presentation

What is Bioscience and why
is it important?
The Biosciences: Definitions
Any of the branches of natural science dealing

with the structure and behaviour of living
organisms.
Synonym: life science
The application of scientific and engineering

principles to the processing of materials by
biological agents to provide goods and services

DTI classification of business sectors
for biotechnology pharmaceuticals
and healthcare
Pharmaceutical
Biotech
Medical Devices and Diagnostics
Industrial
Agri
Non-Food crop and
Marine Biotechnology

UK performance in
pharmaceuticals
Biggest sector investor in R&D in the UK accounting for
around 24% of total investment by business
In 2004, 18% of the world's top 100 prescription
medicines originated in the UK
In world terms, the UK industry has 9% of
pharmaceutical R&D expenditure: only the USA (49%)
and Japan (15%) are ahead
The UK is the largest European recipient of pharma R&D,
accounting for 23% of total; followed by France (20%),
Germany (19%), and Switzerland (11%)
Employs around 73,000 people with about 27,000 in
R&D and generates 250,000 jobs in related industries
Source: DTI, 2006

What is Biotechnology and why
is it important?
Difficulties in defining Bioscience/
Biotechnology
Biotechnology generally considered a subset of
the Biosciences although terminology is often
used interchangeably
Not strictly sectors as extremely diverse in
application
Inconsistent definitions across countries and
studies
Shifting knowledge base of what is considered
state of the art and therefore have moving
boundaries

What is Biotechnology? Some
definitions
The integration of natural sciences and organisms,
cells, parts thereof, and molecular analogues for
products and services (European Federation of
Biotechnology)
Technology in which biological systems,
established and controlled through the application
of molecular biology, cell biology or microbiology
are used for practical purposes
Biotechnology is a range of enabling technologies
offering a set of new processes employed in
existing industries to produce new products or
processes i.e. new drugs, diagnostic tools, plants,
animals and industrial processes
Traditional v new Biotechnology
Traditional Biotechnology
Conventional techniques used for centuries to
produce beer, wine, cheese, bread and in the
treatment of sewage
New Biotechnology
Genetic modification by recombinant DNA and
cell fusion techniques and the modern
development of traditional biotechnological
processes. New Biotechnology revolution
began in 1970s, 1980s

Classification of
modern Bioscience
Biotechnology companies:
Encompassing entrepreneurial biotechnology companies
using modern biological techniques to develop products
and services
Suppliers and service companies:
Including suppliers of chemicals, glassware and related
plastic disposables, research products, imaging
analytical and automated equipment, contract research
organisations, companies who employ a niche R&D
function
Diagnostic and device companies:
Including companies producing bioanalysis, test kits,
medical diagnostic kits relating to biotechnology, medical
devices and surgical implant developers
Source: Ernst and Young, in DTI BIGT, 2003
Outputs of biotechnology
Information process, research and development

Drugs and therapeutic products
Veterinary drugs
Diagnostics
Genetically engineered seeds and plants
Bioherbicides and pesticides
Foods and Animal foods
Food additives and processes
Waste-treatment processes and micro-organisms
Fuel alcohol and other biological sources of energy
Educational kits
Intermediates, enzymes, feedstocks and reagents
Source: Walsh and Green, 1993

UK performance in the
biotechnology
UK is the Biotechnology industry leader in Europe

It is number two in world after USA
There are approximately 455 dedicated biotechnology
businesses in the UK employing around 22,400, with
revenues of around 3.6bn in 2003
UK biotech companies spent 1.23bn on R&D in 2003
The UK is well placed in the European biotechnology
scene because of its greater maturity and much stronger
product pipeline
Source: DTI, 2006

What key technological developments
are driving the Bioscience revolution?
Technology drivers of the
Bioscience revolution
Gene sequencing
E.g. mapping of human genome to understand
human physiology
E.g. sequencing of genomes of viruses and
bacteria to help fight against infection
The development of molecular techniques
E.g. manipulation of genes to study function
for industrial or therapeutic purposes
E.g. gene chip arrays to determine gene
activity

Technology drivers of the
Bioscience revolution
Advances in imaging techniques
E.g. fluorescence to observe genes in real time
The IT revolution
Bioinformatics: data capture, analysis,
modelling and sharing for very large
international teams collaborating and sharing
Nanotechnology
E.g. for Biosensors and drug delivery methods
Source: DTI, BIGT, 2003

What is entrepreneurship?
Entrepreneurship defined
The act of starting or growing a business through

innovative risk assuming management
The creation of a new economic entity centred on a novel
product or service or, at the very least, one which differs
significantly from products or services offered elsewhere
(Curran & Stanworth, 1989)
The process of creating something different with value by
devoting the necessary time and effort, assuming the
accompanying financial, psychic and social risk and
receiving the resultant rewards of monetary and personal
satisfaction (Fry, 1996)

Intrapreneurship defined
Intrapreneurship is entrepreneurship by
employees in existing organisations
Source: Antoncic and Hirsh, 2003

What businesses do
entrepreneurs create?
Businesses as legal entities
A classification
Unlimited liability
Sole traders
Partnerships (can also have Ltd. status)
Limited liability (Incorporated)

Private: Shares not traded in public. Have
company name and suffix Ltd
Public: Shares traded in public have company
name and suffix PLC

Classification of Social Enterprise
Co-operative
Owned and controlled by members, incorporated
under the Industrial and Provident Societies Act
Regulated by FSA
Company limited by guarantee

Similar to Limited Liability described above but
with members not shareholders
Liability is limited to a nominal sum

What is limited liability?
Liability of the owners for the debts of their companies is

limited to the paid-up value of the shares they own i.e.
the amount they agreed to pay for the shares when they
bought them
Reduces risk of business failure on owners and transfers
it to customers and suppliers who would not receive
goods/services or payments

Company evolution in the
Biosciences
Stages of company evolution in
the Biosciences
1. Idea generation and validation
2. Early stage
3. Late stage

1. Idea development
and validation
Secure assignment from University of Intellectual
Property
Technology validation Proof of concept
Develop commercial prototype products
Early pre-clinical trials

2. Early stage - Start up
Start developing technology platform/product

pipeline
Broaden Intellectual Property base
Hire a management team and scientific group
Start to engage in corporate partnering
Secure premises and build company
infrastructure

3. Late stage Expansion/public
company
Build scale, role out technology platform.
continue with clinical development (even launch)
and prepare exit (likely IPO Initial Public
Offering)
Continue with expansion stage activities, with
ultimate aim of cash flow, break even,
profitability

Example: Typical route of
commercialisation from university
Technology Transfer
University Incubator Start-up
Seed capital Venture Capital

Difficulties and success factors
for Bioscience start ups
Difficulties for Bioscience
start-ups 1
Long lead time from concept to market e.g.

typically 10 -15 years for some pharmaceutical
products
High cost e.g. $1B/year for some
pharmaceutical products
High risk. Failure rates can be high e.g. 9/10
pharmaceutical products fail to make it to
market at Astra Zeneca
Low cash flow stream in early years
Difficulty in accessing funding

Difficulties for Bioscience
start-ups 2
Rigorous and dynamic legislative and regulatory
framework at national, trading block and world
levels e.g. Federal Drug Administration, patent
law
Dynamic competitive environment e.g. many
mergers, take-overs, alliances, new business
start-ups
Negative public sentiment towards some products
and testing procedures e.g. GM crops, transgenic
animals, animal testing
Lack of management/business expertise of
scientists

Success factors for Bioscience 1
The company must efficiently develop viable

products or services
The companys Intellectual Property (IP) must be
defensible and other patents cannot block the
path to commercialisation
A clear business strategy for generating a
significant profit
Target a large and/or rapidly growing market.
Management should have the skills to implement
the business plan
Source: Ithaka Life Sciences, 2004

Success factors for Bioscience 2
An organisational culture that encourages and
nurtures enterprise and entrepreneurship
Strong management team and company board
Clear business plan with realistic targets that can
be met before cash runs out
A route to market identified and costs covered
Competition identified and assessed
Valuable accessible market
Credible business and revenue model
Technology that provides customer benefits
Cutting-edge technology that is well protected
Source: NatureBio, 2003
The importance and nature of
business planning
What is a business plan?
A document that explains and justifies the

business concept.
It attempts to answer three questions:
Where are we now?

Where do we intend going?
How do we get there?

Three basic objectives of
business plans
To identify the nature and the context of the
business opportunity why does the opportunity
exist?
To present the approach the entrepreneur will
take to exploit the opportunity
To recognise the factors that will determine
whether the venture will be successful

Role of business planning in
business success
1. It enables the entrepreneur to understand an
opportunity and what it will take to exploit
2. It provides a framework for managing the
business in the future
3. It will help recruit partners and management
team
4. It should be capable of attracting new capital to
the venture
5. It can refocus and rejuvenate a business after
start up

Typical requirements of
business plans 1
To clearly identify product, service and unique
selling point (USP)
Justify its competitive advantage through patent
search data and competitor analysis
Determine market attractiveness i.e. size and
potential growth through identification of
potential customers, market trends
Determine route to commercialisation including
technical development, patenting, licensing and
marketing

Typical requirements of
business plans 2
Justify potential income and expenditure for
products, IPR, licenses, human resources,
patenting, equipment and running costs
Demonstrate credibility of management team
Demonstrate financial rewards and loan
requirements for potential investors

Key point summary 1
Bioscience/Biotechnology enterprises are an

important part of a rapidly expanding part of the
economy
Bioscience and Biotechnology have a wide range
of applications in health care, agriculture, food &
beverage and chemical production
USA leads the way in Biotechnology; Europe is
second; Japan Third
UK is an important player globally

Key point summary 2
Start up is considered the main mechanism for

entrepreneurs to exploit their business ideas
There are a range of businesses legal entities that
entrepreneurs can use as vehicles for enterprise
Biosciences have particularly long and complex
new product development and commercialisation
routes
Business planning vital in setting new business
entity and exploiting ideas

2. Self Awareness
Entrepreneurial Traits
and Motivation
Learning outcomes
By the end of this session students should
be able to:
Recognise the typical aptitudes and motivations
of entrepreneurs and difficulty in evaluating them
For the assessment students should:

Evaluate their own competencies against traits
and motivations of entrepreneurs
Identify ways in which competencies, aptitude
and skills can be developed to enhance
entrepreneurialism

TLA framework
Group
Formation and
Context
Self awareness
Idea/Concept
Generation
Idea/Concept
selection Proposal

management presentation

Who are entrepreneurs?
What is an entrepreneur?
Meaning of the word entrepreneur: one who

takes between (French)
An individual who establishes and manages a

business for the principal purpose of profit and
growth. The entrepreneur is characterised by
innovative behaviour and employs strategic
management practices in the business.
(Cartland, 1984)

Well known entrepreneurs
Julian Richer Less well known

Richer sounds women
Richard Branson
Virgin Meg Whitman
Stelios founder of e-bay
Easy Jet Ann Gloag
Alan Sugar Stage coach
Youre fired
Anita Roddick
Body shop

Who are well known entrepreneurs in
the Life Sciences?
Sir Christopher Evans

Dr Andy Richards
Dr Jonathan Milner
Dr Keith McCullagh
Source: Centre for Bioscience, 2006

What is the typical profile
of an entrepreneur?
There is a strong gender bias towards male
founders. Men are twice as likely to set up a
business as women
There is a distinct age-launch window of business
start ups (30-40)
Family support is a significant factor for success
The majority are reliant on personal equity for
start up finance
Source: Deakins, 1996

Women entrepreneurs in the UK
Gender Gap - Under representation 15% of
businesses are majority women owned compared
to 60% male owned
However, in the US, 30% of businesses are
majority female owned. Number of women
owned businesses grow at twice the rate of all US
firms
Encouraging signs that entrepreneurial activity is
increasing more self employed women in UK
over last 20 years
Source: DTI, Promoting Female Entrepreneurship, 2005

What motivates people to
become entrepreneurs?
Typical triggers to the start up
decision - Pull factors
It works
A product that finally works after many years e.g.
Dyson
Eureka
An idea out of the blue, but which is often simply a new
way of packaging old ideas e.g. Ben and Jerrys Ice
Cream
If only
Dissatisfaction with existing goods and services. If only
I could buy products in smaller packages (Anita
Roddick, Body Shop)
High Comfort Level
Goal fulfilled with lots of support from family and
friends

Typical triggers to the start up
decision - Push factors
Friendly Push
The path is made clear for some one who has talked
about setting up a business for a long time
Misfit
Leaves large organisation because of dissatisfaction to
set up a new business
Unfriendly Push
Redundancy or unemployment
No alternative
Brought about by illness or disability
Grey to White
Moonlighter selling products on the fringe of the black
market economy whilst in full employment

Why be an entrepreneur?
Rewards of Entrepreneurship
Profit Freedom
Independence
Financial gain
proportionate to Power to make own Escape from
personal achievement decisions undesirable situation
Personal Personal
Satisfaction Fulfilment
Enjoyment of a Contribution to the
satisfying way of life community
Source: Entrepreneurial Incentives - Lockerneck et al, 2006

Potential drawbacks of
entrepreneurship
Uncertain income
Risk of losing entire invested capital
Long hours hard work
Low quality of life until business gets established
High levels of stress
Complete responsibility discouragement

What skills/traits/characteristics do
entrepreneurs have?
Building blocks of successful
entrepreneurship
Technical Skills Management

Competencies
Product/service
knowledge
Marketing
Market/industry Finance
understanding Human relations
Personal
Attributes
Innovation
Determined
External focus Source: Stokes, 2002

What are the traits or
characteristics of entrepreneurs?
Achievement orientation: Strong desire for
Ability to see and act on independence
opportunities High energy
Committed to others Emotional stability
High propensity for risk Creative and innovative
taking ability
Calculated risk taking Conceptual ability
Ambiguity tolerance Assertiveness
Visionary Ability to network
Self-confidence Measurement of success
Flexibility by wealth
Confidence of success

Psychometric tests for
entrepreneurs
General personality traits
Myers Briggs type assessment
Hermann Brain Dominance Instrument
LAB profile
Examples of on-line entrepreneurial assessment

http://www.potentielentrepreneur.ca/client/questionnairenews
ection1en.asp
http://www.wid.org/equity/2004/05/Entrepreneurs%20Quiz.do
c

Observed characteristics of
entrepreneurs: The 10 Is model
I Characteristics I Characteristics
Independence Inspiration
Interest Involvement
Insight Instigation
Ideas Insistence
Invention I - will

The 10 I characteristics in action
in the entrepreneurial process
Step I Characteristic
A Recognition Independence
Insight
B Formulation Interest
Ideas
Invention
C Initiation Inspiration
Involvement
D Development Instigation
and Growth Insistence
I - will
Mapping the ten I characteristics
Plotting overall average scores for a sample of 20 successful
entrepreneurs. Indicated by
1 Independence 1
2 Interest 10 2
3 Insight
4 Ideas 9 3
5 Invention 0
6 Inspiration 8 4
7 Involvement
8 Instigation 7 5
6
9 Insistence
10 I will
Criticism of psychometric tests
Characteristics are not stable and change over

time
Not easily measured characteristics
Also environmental and cultural influences can
effect enterprises and management decisions
Management needs of the business might change
through time i.e. different characteristics for start
up to managing a mature business
Education training and learning can be very
valuable
Skills can be acquired
Key point summary 1
Key traits are that entrepreneurs are risk taking,

innovative, growth and profit drive
Entrepreneurial activity is not limited purely to
private enterprise. It can exist in public
organisations and large multinationals. In the
later case this is called intrapreneurship
The characteristics approach to identifying the
potential successful entrepreneur can be widely
criticised
Although women are under represented in the
number of entrepreneurs, numbers are
increasing in UK

Key point summary 2
Other factors such as environmental conditions

and experience play an important role in
determining the successful entrepreneur
Motivations and triggers for start up vary widely
Entrepreneurs start business not only for selfish
reasons but for welfare considerations too
Entrepreneurs are both pushed and pulled into
new business start up
Psychometric tests are used to evaluate
characteristics of entrepreneurs but have been
widely criticised
3. Idea Generation
and Selection
Thinking Creatively and Screening
Potential Business Ideas in the
Biosciences
Learning outcomes

be able to:
Identify a range of methods for developing and
selecting business ideas

Use frameworks to generate business ideas
Carry out an evaluation of business idea to
establish whether it should be considered for full
business planning

TLA framework
Group
Formation and
context
Self awareness Druckers seven

Environmental sources
scanning of innovation
Idea/concept
generation
Creative swiping
Idea/concept
selection Proposal
Project Business plan

management

Idea Generation
Sources of start up ideas
Personal experience work or home

Hobbies
Accidental discoveries - serendipity
Deliberate search
Druckers seven sources of
opportunity/innovation
Environmental scanning
Creative swiping

Technology push or market pull?
Big Bang
Completely New Response To A
Process Or Product Major Order In
New Market
Structured/Planned
Major Strategy
Opportunistic
Shift eg Switch To Add New New Products
E.Business Brands Or Styles In Existing
To Range Markets
Add New Existing

Features To Products In New
Products Markets
Major Product Most Minor

& Process Product & Process
Innovation Incremental Innovation

Idea Generation
Druckers 7 sources of innovation

Druckers seven sources of
opportunity/innovation
1. Unexpected happenings
2. Incongruous happenings
3. A need for process improvements
4. Changes in industry or market structures
5. Changes in population demographics
6. Changes in perception, mood and meaning
7. New knowledge

1. Unexpected happenings
+ examples
Unanticipated events that lead to either enterprise
success or failure:
Increasing real and perceived threat of terrorist
attack at home and overseas
Major unpredictable shifts in weather patterns
The unexpected unavailability of cheap domestic fuel
supply
The unexpected unavailability of cheap raw materials
and other essential commodities
Pet pharmaceuticals have been very successful in the
US with more that 30% of dogs and cats now taking
medication

2. Incongruous happenings
+ examples
Where there is a discrepancy between actual
results and what was expected:
Low fat ice cream was developed for those trying
to lose weight
Introduction of new Coke caused a huge upsurge
in demand for original Coke (Classic)
Some people who have taken nicotine chewing
gum have become addicted to it. Others use it
when they are non-smokers!

3. A need for process
improvements + examples
Current technology is insufficient to address
emerging challenges.
Improved process yields in food, beverage and
pharmaceutical product production
Increased shelf life of perishable goods
Reductions in land fill volume
New fuels to deal with rising energy costs and
pollution
Increasing use of non food crops for fuel
production
Increased efficacy of drugs

4a. Changes in industry or market
structures + examples
Industries are in a constant state of change as
economic and other forces act on individual firms
Porter identified five critical forces:

Rivalry between the firms in all industries
The buying power of customers
The buying power of suppliers
The threat of new entrants
The threat of customers moving to substitute products
or services

4b. Changes in industry or market
structures + examples
Porters Five Forces Model
Suppliers
Supplier
Buying
Power
New
Potential Entrant
Industry Substitute
Threat
Substitutes
Entrants Threat Rivalry
Buyer
Buying
Power
Buyers

4c. Changes in industry or
markets + examples
Changes in NHS structure and funding to more
localised units NHS trusts
Changes in the nature of education management
funding foundation status meaning more
autonomy on major spending decisions
PPP - Public private partnership PPP funding
packages for infrastructure building

5. Changes in population
demographics
Shifts in population size, age structure, ethnicity, and
income distribution e.g.:
Ageing but still healthy and active baby boom generation
born - born in the west in anglophone countries between
1946-1963. Powerful consumer group beginning to
retire from contributory economic activity but with no
diminishing power of spending. Rapidly growing group with
time, disposable income and increasing political influence
Generation X born between 1965 1975 and
Generation Y born between 1976 1994 much smaller
cohorts than the baby boom generation with more liberal
attitudes to work, leisure and spending than their forebears
Consistently low EU and UK birth rate
The influence of economic migrants from the new eastern
accession EU states

6. Changes in perception, mood
and meaning + examples
Healthy eating particularly with obesity on the
rise
Generational different between baby boomers
generation X and generation Y
The direct and indirect influences of the global
War on Terror
The state pension age debate and to working
beyond the age of 1965 (in UK)
The effect of changes in world weather patterns
Attitudes of host populations to economic
migrants
7. New knowledge + examples
Learning opens up the door to new product

opportunities with commercial potential
Gene sequencing - mapping of human genome
The development of molecular techniques
Advances in imaging techniques
Advances in fuel cell and electricity storage
capacity
The IT digital revolution
Nanotechnology
Source: DTI BIGT Report, 2005

Idea generation
Environmental scanning
PESTEL analysis
What is environmental scanning?
The ability to identify and interpret strong and
weak signals from the trading environment
An essential skill
When looking for new enterprise
opportunities
To ensure the survival of established
businesses

What environmental influences are
there on a business?
Environment
Infrastructure E.g. Tsunami, green products
E.g. More roads, cheap flights
broadband
Demographics
Social Business E.g. aging population
E.g. Discerning customer,
greater disposable income
Technology
Politica
E.g. Internet,
l
E.g. Employment law Economic genetic engineering
e.g. Low Interest rates,
Taxes
The PESTEL framework
Scanning the trading environment can be used to
categorise and measure the shifting forces that
continually act on all traders
These forces are in a constant state of flux and can

provide both new opportunities and new threats to
survival. These are:
Political forces
Economic forces
Social forces
Technological forces
Environmental forces
Legal and regulatory forces
The PESTEL forces act and influence at a number
of different geographical levels:
At world level (WTO, Kyoto protocol, World Bank)

At trading bloc level (EU, NAFTA, ASEAN)
At national level (UK government, Bank of
England, UK judiciary)
At regional level (Regional development agencies)
At district level (Local Authority area)
At sub-district level (Ward level activists and
communities)

Entrepreneurs and enterprisers seek out
opportunities through:
Looking for new experiences

Meeting poorly addressed needs e.g. Malaria treatment.
Making things better e.g. increased yield on beers.
Matching emerging technologies to new potential users
needs e.g. Diagnostics for breast cancer using rDNA
technology
Matching older technology or failed products to new
markets e.g. aspirin for blood thinning

Political forces
Employment legislation
Foreign trade regulation
Government political orientation and stability
Government policy to creating new knowledge
Lobbying mechanisms
Monopoly policy
Taxation policy
E.g. Increased support and government

initiatives for Bioscience exploitation

Economic forces
Business cycles
Capital availability
Credit control
Commodity and raw material cost & availability
Government economic policy
Energy costs and supply continuity
Exchange rates
Interest rates
Unemployment and workforce skill levels
E.g. Increasing energy costs, embryonic stage of

biotechnology growth
Social forces
Attitude and perception changes of populations

Censorship and press freedoms
Demographic trends (at world, trading block
national and regional levels)
Education and skills levels
E.g. Negative public sentiment towards some

Biotech products

Technological forces
New developments & discoveries

Reducing product life cycles
Increasing rates of obsolescence
Rates of technological diffusion
E.g. rDNA manipulation, digital technology

Environmental forces
Energy policies (domestic supply and transport)

Environmental protection policies
Governmental commitment to environmental
protection
Waste disposal and recycling policies
Weather pattern change
E.g. Increasing cost of domestic power supply,

global warming

Legal and regulatory forces
National employment legislation

National health and safety legislation
Intellectual property protection legislation
National monopoly policy
National planning policy
National product safety law
Speed of national legislative process & the vigour
of enforcement forces
E.g. Protection offered by patents

Idea generation
Creative swiping
Creative swiping
A technique advocated by Tom Peters for stealing
good (unprotected) ideas from competitors. The
accumulation of lots of these ideas creating a
uniqueness and differentiation for the stealing
enterprise
In his words:
Uniqueness comes from an accumulation of
thousands of tiny enhancements
The entirely unique product does not exist. Everything

stands on previous technology and established
precedent
Its all about the relative novelty of innovation

Idea Screen/Selection
Product development funnel
filtering in an R&D environment
Source: Wheelwright, 1992

Product development funnel
filtering in a start-up enterprise
Screen 1 Screen 2
Source: Wheelwright, 1992

Idea screening 1
Some organisations use filtering processes to
screen new ideas and projects
Used as projects progress through from concept
to full scale development in the product pipeline
Typically used in R&D environment
Uses employee facilitators who seek out and
attract other employees to offer ideas for
innovation.
The ideas are then initially screened by specialist
gatekeepers against given criteria

Idea screening 2
Success or selection criteria can be used to filter

projects at various points of the development
funnel or pipe line
Each review point is called a gate
A go/kill decision is made based on meeting the
success criteria
If further funds are committed at the gate then
they are often called toll gates
Fulfilment of the success criteria means a
commitment of resources to further development

Idea screening 3
Typically:
40% get through the initial screening process
18% are supported through a subsequent
selection procedure by in house champions and
4% may be realised commercially
Successful examples of idea screening processes

need to be subject to commonly understood
group rules, be open, be systematic and iterative

Filtering criteria
What makes a potentially

successful business idea
Filtering/selection criteria
Ideas can be screened on the following criteria:

Market factors
Competitive advantage
Management capability
Fatal flaws
Usually a mixture of these proves to be beneficial

in selecting prospective business propositions
Source: Longenecker, 2006

Market factors
Well identified need for the product
Reachable, receptive customers
Significant value created by product or service or
customer
Long life of product
Emerging industry not highly competitive
Significant market size
Significant growth rate

Competitive advantage
Low cost producer?
Moderate to strong control over prices costs and
channels of supply
Barriers to entry i.e.. Factors that prevent new entrants
into the market
Have or can develop proprietary information or
regulatory protection
Have or can develop, a good response/lead time
advantage
Proprietary or exclusive legal or contractual advantage
Contacts and networks

Economics
Good return on investment
Low investment requirements
Time requirement to break even or to reach positive
Management capability
Management team with diverse skills and proven
experience
Fatal flaws
No circumstance or development that could, in and of
itself, make the business unsuccessful

How to select a reasonable idea
Brainstorm or systematically generate several

(say 3/4) ideas
Use a selection method to determine the best
prospect (Kepner-Tregoe Method)
You may need to carry out a further investigation
into your business idea to accurately evaluate
them
Return to the selection method again and screen
until you have finalised your selection and are
focusing on one idea

Key point summary
Ideas are usually generated from a grounding of

technical competency or market need (technology
push v market pull)
Systematic idea generation and brainstorming are
both viable routes to generating ideas
Druckers sources of innovation, PESTEL analysis
provide systematic means of generating ideas
Product screening is an integral part of the
commitment of resources through the various
phases of product development
Need to evaluate idea against filtering/selection
criteria for enterprises before committing further
resource to development

4. Project Management
Controlling and Completing the

Business Plan Project on Time
Learning outcomes

be able to:
Recognise the nature of business planning as a
project
Build an awareness of skills and mechanisms for
planning and monitoring projects

Use time management and project management
skills within the context of delivery of the
business plan
Reflect on this activity as part of a journal

TLA Framework
Context &
Group
Formation
Self awareness
Idea/Concept
Generation
Idea/Concept
selection Proposal

Management presentation

What is project management and
why is it important to business
planning?
What is project management?
Project management is concerned with the overall

planning and co-ordination of a project from
inception to completion aimed at meeting the
client's requirements and ensuring completion on
time, within cost and to required quality
standards
Source: www.ecbp.org/glossary.htm

What is a project?
Any unique venture with a beginning and an end

conducted by people to meet established goals
within parameters of cost, time (or schedule) and
quality.
Source: Buchanan and Boddy ,1992

Project key features
A unique undertaking each one differing from

every other in some respect
Project have specific objectives to achieve
Projects require budgets
Projects have schedules
Projects have budgets
Projects require the efforts of people drawn from
different disciplines
Projects should have quality measures

Why is project
management needed?
The process of bringing IP to market can be a
complex process requiring leadership skills of the
highest order
There are numerous tasks that interrelate and
need to me integrated into the business plan
Time is critical in bringing the business ideas to
market
Resources are finite. A small team is bringing the
plan together
There are numerous ways in which this business
planning can be completed
Project players and management
skills
Project players
Sponsor: the person providing the resources for

the project and ensuring that the project is
successful at the business and institutional level
Champion: The advocate for the project
promoting the cause of the project or proposal
Client or customer: The individuals or
organisation paying for the contractual project
services
Stakeholder: Individuals who are directly or
indirectly involved with the project, for whom the
success of the project is important in any terms
Key project manager skills
Negotiation, obtaining agreement on the scope,
aim and objectives of project
Ensuring resources are accurately estimated and
readily available
Effective communication with project
stakeholders
Identifying clear roles and responsibilities for all
team members
Establishing ways to maintain project progress
when problems arise
Being able to fit all the pieces together

Key project management
techniques
Milestones
Gantt charts
Responsibility charts
Team meetings
What are milestones?
A key point in the project, perhaps when

something has been achieved, for which a
deadline was set
A mechanism to monitor progress
Short-term goals which are far more tangible
than the foggy, distant completion of the entire
project
Maintain the momentum and encourage effort
They allow the team to judge their own progress
and to celebrate achievement throughout the
project rather than just at its end
Why use milestones?
Identifying main goals

Establishing time and cost targets
Identifying intermediate decision points
Agreeing management information
requirements
Agreeing reporting intervals
Identifying feedback mechanisms
Focusing on critical variables
Source: http://www.wiley.co.uk/

What is a Gantt chart?
Simple chart also known as a bar chart showing

task activities in chronological order and timings
The length of the bar represents the length of the
task (in time). Gantt Charts should include
milestones
Used to plan resources over time
Used in the project planning and execution phase
for monitoring progress against objectives and
task completion
Can be used to identify sequence and
interrelationship of activities
Gantt chart example
Source: www.smartdraw.com/tutorials/gantt/index.htm

What is a responsibility chart?
Helps you determine who-does-what-and-who-

helps
Can be useful as teams are forming, or as new
work emerges as part of a teams responsibilities
Can be used to clarify understandings, improve
the distribution of work, and build agreements
that involve all and therefore can last

How are they used? 1
By the team as a group
This method may be somewhat time-consuming
but will result in a high degree of commitment
and understanding
By a sub-group of the team
This may be a bit more efficient. A review by the
full team and agreement on the chart content
would be an important second step
Source: http://web.mit.edu

How are they used? 2
By each team member
The team would then need to confirm areas of
agreement and discuss areas of difference to
reach agreement
By the team leader
While probably the most efficient method in
terms of time, discussion by the whole team is
needed to ensure clear understanding and
accountability

What are responsibilities?
R - This person is responsible for carrying out the task, or
accountable to see that the task is done. Every task must
have an R.
Then assign letters A, C, and/or I as needed:
C - This person consults to the R person for the task.
Consulting means that the two work collaboratively, with
both having significant responsibility for doing the work
A - This person assists the R person with the task.
Assisting means this person helps carry out the work but is
not as involved in making decisions about what is to be done
or how.
I - This person is informed about the status of the work,
including when it is done, but is not directly involved in
planning or doing the work
Source: http://web.mit.edu/

How to construct a
responsibility chart
1. Purpose Defining exactly what project or work
you want to understand is a vital first step in
employing the chart. The purpose appears at the
top of the chart
2. Across the columns, list the people involved
3. Next, list the tasks to be done. List these at the
level of detail that seems right to you. You can
increase or decrease that level as needed, and
every task does not need be listed at the same
level of detail. Look for the amount of detail that
will ensure understanding and good distribution of
responsibility

Example chart (incomplete)
Task Person or Person A Person B Person C

role
Idea
r c a
generation
Concept
c r a
selection
Technical
c c r
Feasibility
Patent Search
r c a
a r a
etc

Team meetings
Meetings used to progress the project using

agendas and minutes
They allow regular opportunities for:
Monitoring of progress of the project
Problem solving and conflict resolution

Successful meeting
To ensure the meeting is successful, the leader should:

Generate an agenda to all involved in the meeting
Start the discussion and encourage active participation
Work to keep the meeting at a comfortable pace not
moving too fast or too slow
Summarise the discussion and the recommendations at the
end of each logical section
Circulate minutes to all participants
Source: www.mindtools.com/CommSkll/RunningMeetings.htm

Meeting minutes
Meeting minutes should contain the following

information:
Called by The person who called the meeting
Meeting Date/Time The time the meeting
occurred
Project - The formal name of the project
Purpose - Describe meeting purpose
Invitees/Attendees - Meeting attendees
Meeting Agenda A copy of the meeting agenda
Meeting Minutes A summary of the discussion
and action items from the meeting clearly specify
any decisions that were made at the meeting
Key point summary
Business planning can be viewed as a project

because there is a defined goal, a set of activities
and a specific resource
It is critical particularly for complex technological
developments where there are numerous
participants working together
For business planning it is vital as there are
typically limited resources and a complex body of
information to investigate
Responsibility and Gantt charts are commonly
used tools that can aid project planning and
execution to direct and monitor the project team
Select a team leader, use minutes and agendas for
regular team meetings
5. Intellectual Property
Rights (IPR): Patenting
and Trade Marks
Nature, Importance of IPR in

Bioscience Entrepreneurship
Learning outcomes
be able to:
Understand the role of IPR in determining their
USP and protecting and exploiting business
ideas in the Biosciences

Carry out a simple patent search on their
business idea to determine unique selling
point/competitors
Establish an approach for protecting intellectual
property for your proposed business

TLA framework

and risk
Intellectual The
Property management
Rights team

Marketing
strategy
analysis strategy
The pitch
What is IPR and why is it
important?
Why consider Intellectual
Property Rights (IPR)?
Bioscience entrepreneurs need to consider what
intellectual property can be protected and where,
as soon as they begin to develop their business
idea and considering their business and
marketing strategy
IPR offer significant competitive advantage and in
the context of this learning pack includes:
Patent registration to protect the invented product or
process
Trade mark registration to protect the identifying
product or process marks

What is IPR?
An intellectual property is:

Any product of the human intellect that is
unique, novel and unobvious that has some
application in the market place
Output of creative endeavour of literary artistic,
industrial, scientific and engineering fields
E.g. Unique name, chemical process, drugs,
publication, computer programme, multimedia
products

What is IPR?
A cluster of legally recognised rights to protect
intellectual property
Depend on nature of the property
Can be registered or unregistered
Vary in length of the protection
Usually involve a trade-off and requirement for
the right holder
Part of nations policy to encourage innovation
and dissemination of knowledge

Types of IPR
Registered IP Rights Unregistered IP

Rights
Patents Copyright
Designs Unregistered Design
Trade Marks Rights
Plant Breeders Rights Trade Marks and
Reputation
Traditional Knowledge
Database rights
Publication rights

International framework for IPR
WTO TRIPS Agreement
Paris convention for the protection of IP
Patent Cooperation Treaty (PCT) streamlined
process for international patent making
Budapest Treaty for Deposit of Micro-organisms
Strasbourg Agreement concerning International
Patent Classification (IPC)
International convention for the protection of new
varieties of plants
Other agreements which affect IP:
Convention on Biological Diversity (CBD)
Food Agriculture Organisation (FAO)
International Treaty on Plant Genetic Resources

Four main types of IPR for
Biosciences
Patents
For new and improved products and processes that are capable
of industrial application
Plant Breeders Rights
Offers legal protection for the investment plant breeders make
in breeding and developing new varieties. Open to breeders of
any species of plant; agricultural, horticultural and ornamental.
Trade marks
For brand identity of goods and services allowing distinctions
to be made between different traders
Designs
For product appearance - of the whole or a part of a product
resulting from the features of, in particular, the lines, contours,
colours, shape, texture or materials of the product itself or its
ornamentation

Why is IPR important
to businesses?
IP gives a competitive advantage by preventing
competitors from using the protected property
IP seen as asset and be a large percentage of the
market value of the business
IP can attract investors
IP is a potential source of income e.g. licensing

Patents
What is a patent?
A disclosure of an invention for exclusive
exploitation by patent owner
Limited period of protection for invention generally
lasts for 20 years
Means of preventing others making, using or selling
an invention unless permission granted e.g. by
license
Contains sufficient detail so some one skilled in the
art can reproduce that invention
Granted by government e.g. UK Patent Office under
UK Patent Act 1977
Usually only cover single country some collectives
exist (e.g. Europe, Africa)

Where is the protection valid ? 1
In the UK
A UK patent filed at the Patent Office gives
exclusive rights only in the UK, Isle of Man and
the British protectorates Botswana & Swaziland
In Europe
For protection in two or more EU countries that
are members of the European Patent Convention
the application must be filed with the European
Patent Office specifying which states the patent
should cover. European patents must be
maintained in each designated state separately
which means lots of translation costs

Where is the protection valid? 2
In the rest of the world

If you consider the potential market for your
invention covers a geographical area beyond
Europe then a Patent Cooperation Treaty makes it
possible to seek patent protection in over 100
countries with one application

What is patentable?
Only an invention can be patented. To be an
invention and patentable it has to be:
New
Something that was not known before as has not been
published anywhere else in the world - prior art
Involve an inventive step
Not obvious to those skilled in the technical field to
which the invention relates; i.e. there must be an
intellectual jump
Be capable of industrial application
E.g. must be capable of being used as a product or in an
industrial process
Not be among the list of excluded inventions

Excluded inventions
The excluded list consists of:

Scientific theories
Mathematical methods
Animal and plant varieties
Computer programmes
Works of art or literature
Computer programmes and works of art and

literature are covered by separate IP legislation
.Copyright

Biotechnological inventions
unpatentable on moral grounds
Process of cloning human beings
Process of modifying the germ line genetic
identity of human beings
Use human embryos for industrial or commercial
purposes
Processes for modifying the genetic identity of
animals which are likely to cause them suffering
without any substantial medical benefit to man or
animal, and also animals resulting from such
processes
Source: DTI, 2006

Basic patent concepts
Prior art
Published documents anywhere in the world and
common general knowledge in the field of technology of
invention before the priority date of patent application
Priority date
Date an inventions validity is assessed normally first
time an application for the invention is filed anywhere in
the world. In US date of actual invention is used
Person skilled in the art (PSA)
A skilled technician or worker in a field of knowledge
who is aware of all common lab/workshop techniques
and general knowledge in the field

UK patent application
process overview
Initial Application Form 1/77 submitted to Patent Application terminated if
Office (PO) no further action taken
Within 12 months Submit set of claims, abstract Develop idea and

and form 9A/77 request for PO examine viability. PO
conducts search.
search
Within 18 months Application published. If any Third parties can petition

attempt made to copy invention PO to reject application
damages can be sought.
Within 24 months Submit detailed examination of Detailed examination

must be submitted
invention, form 10/77 and fee.
within 6 months of
publication
Within 36 months PO examines application and
petitions from third parties
Application republished as
granted

Patent application process 1
Making the application
It takes between three and four years to obtain
a UK patent.
The first step in submission
1. An completed application for Request for grant
of patent on Form 1/77 at UK Patent Office.
2. A descriptive specification of the invention:
An abstract: describing how the invention solves
problems
One or more claims defining what the invention does
and areas that will be protected by patent.
Drawings of specification

Patent application process 2
The specification
The detail of the invention must be very specific
and comprehensive. Including descriptions of:
All the features that could be incorporated.
Surplus ones can be deleted from latter stages of
application procedure
Advantages of the invention over previous
products or processes
How the invention can be put into practice.
Written description can be supplemented with
drawings
Patent application procedure 3
The Patent Office allocate a patent number to

successful initial applications
The application submitter is allowed to use
patent pending or patent applied for when the
patent number is allocated
This gives application precedence over all other
applications submitted for similar inventions
Initially for the first 12 month phase of the
application procedure

Typical Patent contents
Document identification
Domestic filing data
Priority data, i.e. the original country filing details
Technical and classification data including, title, search
report i.e.. Prior art and abstract written by the applicant
giving a full description of the invention
Identification of the parties. Applicant, inventor, patent
agent. Address information.
Designated countries. This usually applies to European
Patent Convention or Patent Cooperation Treaty
specifications
Drawing

Example: IP and lifecycle
of a new product
Example of a new product being brought to
market from a university research project
Research planning phase

Use patents to:
Identify competitors
Determine the state of the art in existing
research prior art
Find niche opportunities
Avoid duplication of research efforts

IP and life cycle of a new product
Research Phase
Confidentiality and the law of trade of secrets to
safe guard:
Research direction and outcomes
Agreements with research partners
Confidentiality within the enterprise institution
Patent law considerations essential with respect
to:
Publications
Participation in trade fairs

Research breakthrough
Outcomes must be kept confidential until patent
application is filed
A patent filing strategy needs to be adopted
Associated developments may be protected by industrial
designs and copyright
Development phase
An IPR licensing strategy is required
Trade marks may need to be developed
International patent strategy is required
Patents may be required to improve original idea
Cross licensing

Marketing phase
Monitoring marketplace for infringement and
enforcement
Continuing evaluation of effective means of
using IPR
Continuing issues of licensing and valuation
Source: www.dfat.gov.au/publications/biotech/downloads/Module01.pdf

On-line patent databases
Extensive list of country and region specific

databases can be found at:
World Intellectual Property Association

http://www.wipo.int/ipdl/en/resources/links.jsp

Trade Marks
What are trade marks?
Signs used to differentiate the goods and services

of one business from another in the eyes of
potential customers
In consumer markets customers may recognise
the goods and services offered by your business
through the distinctive trade marks which may
consist of words, logos, 3 dimensional shapes,
colour combinations or sounds
Prevent others passing off their goods and
services as yours
The legislation that covers this intellectual
property in the UK is the Trade Marks Act 1994

Where is trade mark
protection valid?
A trade mark registered in the UK does not give
automatic protection overseas
For EU protection in all 25 member states
Additional applications can be made to the
Office of Harmonisation in the Internal Market
(OHIM) through the UK Patent Office
For World protection in up to 77 countries
UK applications can be used as a basis for
international applications through the World
Intellectual property Organisation (WIPO)

Trade mark application process
Your UK trade mark design must be subject to a

Trade Mark Register search to establish its
originality and that no other similar marks are in
use in similar enterprises
The Patent Office offer a search and advisory
service which will check if the application meets
all necessary submission criteria
If search is successful then form TM3 can be
submitted to the Trade Marks Registry at the
Patent Office. Approval takes six months,
protection lasts for 10 years renewed every
decade

Registering intellectual property
Registering intellectual property
The legislation that surrounds Intellectual

Property Right protection in the UK, EU and rest
of the world is very complex
The registration procedures should not be taken
likely and professional advice should be sought
from as many sources as early as possible
including university based specialists and
independent accredited professionals
For:
Patents applications Chartered Patent Agents
Trade mark registration Trade Mark Attorneys &
Chartered Patent Agents
Support for registering
intellectual property
The legislation that surrounds Intellectual
Property Right protection in the UK, EU and rest
of the world is very complex
The registration procedures should not be taken
likely and professional advice should be sought
from as many sources as early as possible
including university based specialists and
independent accredited professionals
Patents applications- Chartered Patent Agents
Trade mark registration -Trade Mark Attorneys &
Chartered Patent Agents

The additional considerations
of IP protection
What mechanisms will the enterprise have in
place to police potential IPR infringement?
Owners initiate action against infringers
Typically for Biotech organisations right owner initiates
civil procedure
How will the defence of IPR infringement be

funded?
This can be very expensive and needs to be factored in
to the business plan

Key point summary
IPR are a complex set of rights which protect a variety of

creative outputs
Protect intellectual property is vital in the Biosciences in
creating income streams and preventing use of technology
created
Patent searches can be used to identify:
Whether the product is truly novel
Competitors
Potential collaborators
Consider using Trade marks for business/product names
and logos
Seek help from Patent Office and Agents in this complex
and vital area of business development
Factor in the cost of defending your IPR as it can be expensive

6. Market Research and
Competitor Analysis
Identifying your Target Market,
Market Attractiveness and
Competitive Advantage
Learning outcomes
By the end of this session students should be able
to:
Determine the information requirements and purpose of
market analysis and competitor analysis
Identify sources of secondary data
For the assessment student should:

Determine the target market and market attractiveness
Evaluate the competition and determine your business
competitive advantage
Hence determine positioning of their product or service

TLA framework

and risk
Intellectual The
Property management
Rights team
Market and
Marketing Operational
competitor
strategy strategy
analysis
The pitch
Why look at markets?
It is vital to determine who will want your

product, to describe them clearly in terms of their
characteristics so that you can approach them
through various media and tailor your products
and services to suit them.
Investors will want to know that the chosen
product/service and customer group is attractive
in terms of size, growth and value.
Market analysis brings all these points to bear

Why look at competitors?
Frequently entrepreneurs (and students!) ignore

the reality of competition for their new venture
believing that it has no close substitutes and that
their success will not attract other entrepreneurs.
This is not the case.
Examining competitors allows the product/service
to be differentiated in some way and help focus
you on providing enhanced benefits to customers

Key questions when identifying the
market and analysing competitors
For your business plan you will need to find out:

Who wants this product/service?
What characterises them what is their market
segment?
What is the anticipated value of the market?
Is the market likely to grow?
What are the competition doing?
What are their strengths and weaknesses?
How are we positioning our product/service
offering?

Identifying the target market
What is your target market?
A group of people or organisations that share a

common set of attributes, a particular set of
needs and wants that distinguishes your product
or service

Why segment markets?
Better focus on customer needs

Promotes new product ideas
Helps develop effective marketing mix strategy
i.e. place, price, product, promotion
Allocation of marketing resources to different
products depending upon segment attractiveness

What are segments? 1
Subgroups of the potential population who may
purchase your products.
Geographic segments:
Regionalising to accommodate local tastes
Demographic segments:
What consumer characteristics are? (e.g. age, gender,
income)
Psychographics segments:
Why do consumers buy? (e.g. lifestyle, social class)

Top down approach to define
target market
1. Segment
divide up the market into groups of buyers
2. Target
evaluate the attractiveness of each segment
and select target/s. A different approach will
be needed in each segment
3. Position
select the market position which differentiates
it from competitors

What are segments? 2
Behavioral segments:
Usage occasions
Kodak single-use cameras from underwater
use to baby pictures and weddings
Usage Rates
80-20 rule, e.g.beer drinkers
Loyalty Status
Hard-core loyals: A A A A A A
Switchers: A B E A D B
Variety Seekers A B C B A C B

Criteria for successful
segmentation
Measurable
Measurable Size, purchasing power, profiles
of segments can be measured.
Accessible
Accessible Segments must be effectively
reached and served.
Substantial
Substantial Segments must be large or
profitable enough to
serve.
Differential
Differential Segments must respond
differently to different marketing
mix elements & actions.
Actionable
Actionable Must be able to attract and serve
the segments.

Positioning
Positioning = Segmentation + Differentiation

Segment = a division of the market
Differentiation = how your product is different from the
competition
Slotting the product in the consumers mind

Who am I?
Why buy me?

Positioning
Against competition
e.g. Pepsi Challenge in Pepsi vs Coca Cola
Position with the competition
e.g. Dixons own brand for electronic equipment
Grab an unoccupied position i.e.market niche
e.g. SMART cars
Using your endowment
e.g. Number one position - Microsoft

Market potential/attractiveness
Market analysis
For you business plan you will need to determine:

Size of market in terms of overall sales expected
per annum for that product/service
Identify major players and sales for product/service
Identify total potential sales for that product/service
given a percentage up take product/service
Desired market share for your organisation
State drivers and trends of demand in your target
market
NB/ MINTEL and KEYNOTE reports are extremely

useful here
Trends: Industry life cycle
3. Renovation
Saturation
Maturity
2. Stagnation
Growth
Development
1. Decline
Revenue
Sales Trend Line

Stream
Profits Trend Line

0
TIME
-
Phase 1 2 3 4 5

Changes in industry or market
structures:
Porters five forces model
Suppliers
Supplier
Buying
Power
New
Potential Entrant
Industry Substitute
Threat
Substitutes
Entrants Threat Rivalry
Buyer
Buying
Power
Buyers

Industry life cycle &
competitive forces
Intro. Growth Maturity Decline
New Few Bandwagon Consolidate Exit

Entrants effect
Power of Low Low, Its a Increasing High, Its a
Buyers sellers buyers market
market
Power of Medium High Declining Low
Suppliers
Threat of Non Low Growing Substitutes
Substitutes Existent may cause
decline
Rivalry Low Low, focus on Intense, firms Declining as
amongst growth grow at rivals firms exit.
Firms expense
Analysing the Competition
Key Success Factors

Analysing competitors 1
Analysis of competitors will be far less

detailed than own business. However it
will help owner managers and investors
understand existing and future rivals
The following checklists - Key Success
Factor criteria and BBSRC - should provide
a good basis for comparison

Key Success Factors (KSF)
The KSF scores of the KSF competitor ranking can
be plotted graphically and will indicate the overall
competitive strength of each competitor in
relation to their own business

Aakers Key success factors
A model for measuring a business against
competitors using no more than 10 key success
factors or KSFs
In this example eight KSFs are chosen:
Market Share Product variety

Distribution Patents
Brand Image Research &
Product Quality Development
Financial Resources

Graphic representation of firms relative KSFs
Firm A
Firm B
Firm C
Own Firm

Key criteria to evaluate
competition 1
Resource strength
Management
Supplier relationships
Distribution capability
Financial
Breadth and depth of intellectual property
Manufacturing
Strategic partnerships/alliances
Source: BBSRC, 2006

competition 2
Market position
Market share
Reputation
Breadth of product/service portfolio ability to
offer a one stop shop
Brand image
Service delivery
Responsiveness
Consistency
Flexibility
Source: BBSRC, 2006

competition 3
Customers
Customer inertia general unwillingness or
lack of propensity to change
Customer lock in customer investment
in competitors system/products so great
as to make switching difficult/costly or
otherwise unattractive
Source: BBSRC, 2006

Market research
Why market research is needed?
You will need to justify the statements you

make about the market and the
competition backing up your argument
with data from reports or from research
that you have carried out.
Gut feel is not enough!

Types and sources of
market data
Primary
Non published current market and competitor
information gleaned by the entrepreneur using
tested methods and based on recorded
observations
Secondary
Published information sources available from
libraries in hard copy, disc and more frequently
on-line
They will include information on markets and
competitors
Planning market research
Define What information you need to know
Carry out Desk (secondary) research using library
sources
Establish Field (primary) research method best

suited to your needs
Develop Your primary research study

methodology & test thoroughly!
Carry out Field research

Analyse The collected data
Incorporate The results in the marketing plan

Primary market
research methods
Focus groups:
Gathering a representative sample of potential
customers together and measuring their reaction to
your offering
Observations:
Watching and recording what potential customers are
buying and what competitors offer
Surveys:
Formalised information gathering exercise that provide
valuable intelligence on potential customers
Test marketing:
Developing your offering as fully as possible and then
letting it loose in a restricted market place
Web based news groups:
A useful way of gauging customers reaction to
offerings and reaching potential customers cheaply

Sources of secondary market
data
Sources of secondary market
research information
Market research companies and
governmental sources offer reports on the
following:
The structure of the markets
Identifying the major players in the market
Identifying customers through demographic
profiles, spending and disposable income
Major market trends
How products are marketed and distributed
Future developments in the market due to
technological advances and changes in typical
customer profiles

Sources of secondary marketing:
Specific sector information in
UK and Europe
Mintel Reports:
Media, product & consumer intelligence for UK Europe & US
markets
Euromonitor:
Consumer, industrial and service sector intelligence worldwide
scope
Key Note:
Information on 370 UK sectors
Jordans Ltd:
Information on UK industry
Frost and Sullivan:
High specification research on industrial sectors world wide
MSI Marketing Research for Industry:
industrial and business to business markets in healthcare,
environmental services and others

Sources of secondary market related
information: Biotechnology/Bioscience
Biotechnology handbook
(available from libraries)
Bioindustry Association website
http://www.bioindustry.org/
Patent databases
World Intellectual Property Association
http://www.wipo.int/ipdl/en/resources/links.jsp
Biotechnology Industry portals and networks
http://www.europabio.org/
On line biotechnology publications for business
news

information: Europe and Worldwide
NOMIS: On Line Government Statistics

(U.Durham)
OECD: Organisation for Economic Cooperation
& Development
ONS (UK): Office of National Statistics
Databank
World Consumer Markets
Eurostat
Comext: Monthly Digest of EU Trade
CORDIS: Community Research and
Development Information Service

information: UK government
The Guide To Official Statistics

Products, Sales and Trade Reports
The Annual Abstract of Statistics
Regional Trends
Economic Trends
Labour Market Trends
Population Trends
Social Trends
Living in Britain

Sources of Other Secondary World,
EU, UK and Regional Information
Benns Media
Clover Newspaper Index
Wilings Press Guide
McCarthy Cards: Indexing national and
regional newspapers
Trade Associations
Chambers of Commerce
Dun and Bradstreet

Sources of UK
company information
UK Kompass Register
Contains company profiles & financial
information
Who Owns Whom
Key British Enterprises
Listing the top 50,000 companies in Britain
Kellys Business Directory
Listing a wide range of suppliers, products and
contact details

Sources of UK household, area
and trade information
Dun and Bradstreet
Credit reports for all UK trading business
Mosaic
Used by credit reference agencies to divide UK
population into 60 categories and track social
trends
Office for National Statistics
The-List.co.uk
Search engine for market reports and publications
UpMyStreet.com
Local area statistical information

Key point summary
Key to establishing your market is understanding

your customer typically, who they are and what
they want and what affects their buying decisions
It is important to determine your positioning by
answering the question which
segment/segments am I serving and why buy
me?
Competition is a key threat to the business. They
must not be ignored. Their strengths and
weaknesses need to be determined to identify
threats and your businesss competitive edge.

Key point summary 2
Using structured means to analyse the business

will allow such as Key Success Factors (KSFs),
allows a systematic evaluation of the competition
Numerous sources of data exist for gathering of
market and competitor information. It is vital to
scan these for the data that you need before
embarking on time consuming primary data
gathering exercises

7. Business Strategy and
Risk Analysis
Exploiting IPR and Establishing

Routes to Market in the
Biosciences
Learning outcomes 1

be able to:
Appreciate the meaning of the term strategy
Understand the changing nature of strategy in
the growth of an organisation and a range of
approaches specifically used in Bioscience
exploitation i.e. the route to commercialisation
Recognise a range of generic strategies that
business adopt
Recognise the use of SWOT and scenario
planning in determining strategies
Learning outcomes 2

Determine key growth strategies for their
organisation and how they might change with the
development of their product or service i.e. the
route to commercialisation
Carry out a SWOT analysis and scenario planning
to determine a range of strategies to deal with
RISK presented to the business

TLA framework

and risk
Intellectual The
Property management
Rights team

Marketing
strategy
analysis strategy
The pitch
What is strategy?
What is strategy?
There is no single, universally accepted definition:
the determination of how an organisation, in

its entirety, can best be directed in a changing
world
The direction and scope of an organisation over

the longer term which seeks to match its
resources to its changing environment,
particularly its markets, customers or clients so
as to meet stakeholder expectations
What is strategy?
Knowing where you are now
Knowing where you want to be
Preparing a road-map of
how to get to where you want to be

Emergent and realised strategies
The planned Applied through What actually
strategy force happens
Intended Strategy Deliberate Strategy Realised Strategy
egy l t
rat n a
e n egy
St to t er nm rat
ed ble t
i en Ex iro St
l is s v nt d
a os m En e n
e p ple g a l
nr Im im er m fu
U m o
E n d er
w
Ra po
Source: Brunet, J.P.,Mintzberg,H and Water J.(1986)

Emergent and realised strategies
Business strategies are subject to the constantly

changing external and internal forces
Much of what is planned strategy is not
implemented because of the strength of the
influence of the external environment
Although enterprises need to have strategic aims
they must also have the capability to adapt and
reject the elements of their intended strategy
that are impossible to implement
Embrace the opportunities that the changing
environment offer

Strategy and its relation to
operational activities
Top
Corporate Down
e.g.Marketing results directives
e.g.Marketing Communications Bottom

Up

Porters Generic Strategies
Three generic strategic options
Cost leadership
Strives to be the lowest cost compared to its
competitors in the industry e.g. Netto
Differentiation
Strives to build customer loyalty by making
products/services that are different from the
competition
Focus
Aims to fulfil needs. Wants or interest of a
clearly defined group of people. Niche.

Narrow
Porters generic strategies
Market
1.Segmented Or Focussed Strategy
Firms concentrate on a select few
Segmentation (Or Focus) target markets targeting
effort on one or two segments.
Strategy A strategy most suited to relatively
small firms
Strategic Scope
2. Differentiation Strategy
Involves creating an offering
Cost
Differentiation perceived as unique.
Leadership Providing superior value and
Strategy
Market
customers brand loyalty.

Broad
Strategy Additional cost associated with

differentiation needs premium pricing.
Requires innovation and marketing skills.
Uniqueness Low Cost 3. Cost Leadership Strategy

emphasises efficiency, through
Competency Competency economies of scale and experience.
Constant focus on cost reduction.
Strategic Strength Requires market share advantage
or easy access to important raw
materials. e.g
Easyjet, Kwik Save

Growth strategies in the
Biosciences
What are growth strategies?
Organic v Acquisition Growth strategies
Internal/Organic Growth
R&D: new and improved
products Acquisition Growth
Exporting and licensing
Outright Purchase
Expanding capacity: new
premises, equipment Joint Ventures
Strategic Alliances
Improving efficiency:
making processes faster,
cheaper and more accurate

Key strategic options for the
Biosciences development
1. Collaborative research
2. Licensing
3. Selling IP outright
4. Strategic alliances
5. Joint venture
6. Start-up

1. Collaborative research
E.g. transfer of personnel between non-competitive
industries
Advantages
No financial risk to academic partner
Low financial return to academic partner
Can allow commercialisation to take place with different
levels of involvement of academic partner (though most
likely to be limited involvement
Disadvantages
Unlikely to have control over the commercialisation of the
technology
Source: BBSRC, 2006

2. Licensing
Allowing third party to use of Intellectual property
Advantages
Can allow researcher to continue academic research or
explore other routes to commercialisation
Can produce a royalty income stream
License can be assigned exclusively to one licensee or to
many licensees
Disadvantages
Requires specialist expensive IPR legislation expertise.
Terms and conditions of the licensing contract are crucial
Source: BBSRC, 2006

Types of licences
Exclusive:
This type of license gives the licensee exclusive rights to
exploit the technology (including exclusion of the
licensor)
Non-exclusive:
Here, the licensor can license the technology to more
than one licensee
Sole:
Here, there is only one licensee, but the licensor also
retains the use of the technology
Source: BBSRC, 2006

Negotiated terms of a license
The timescale of the license, when does it start, when does

it finish, under what circumstances may the license may be
terminated (by either party)
What exactly is being licensed
What can be done with the technology, are there any
restrictions on the use?
Where the technology can be utilised, are there any
geographical, market sector or other constraints on its use
The payment terms; what payments will be made, when,
and on what basis will they be calculated?
Source: BBSRC, 2006

3. Selling IP outright
The outright transfer of IP from academic researchers to

another owner for a substantial sum.
Advantages
Can be lucrative if the potential of idea has been thoroughly
researched and identified
Academic researchers could still operate under licence
agreement with new owner
Disadvantages
Academic originators have no control over the future
commercialisation of IP
Source: BBSRC, 2006

4. Strategic alliances
Collaboration with partners on joint research programme

under clear and negotiated terms and conditions.
Advantages
Little/no financial risk to academic partner
Can allow commercialisation to take place with different
levels of involvement of academic partner
Disadvantages
Modest financial return to academic partners
Limited control over the commercialisation of the technology
Source: BBSRC, 2006

5. Joint Ventures
A negotiated contractual alliance between academic IPR
originators and commercial partners to develop that IPR and
bring it to market. Usually infers a new start up business is
created.
Advantages
The skill sets of alliance partners are used to mutual advantage,
partners concentrate on their strengths
Disadvantages
Significant effort involved in the search for a alliance partner
Requires a great deal of trust between alliance partners
Source: BBSRC, 2006

6. Start-up 1
Starting a new business to harvest the most
benefit of the commercialisation of IPR.
Advantages
Can offer the most financial and career
development rewards
The academic founder(s) have more control over
the exploitation of the technology than via other
exploitation route, depending on role chosen in
the company
Source: BBSRC, 2006

6. Start-up 2
Disadvantages
Requires a high level of financial and personal
involvement and risk from the academic business
founders. The level of involvement and risk can vary
depending on the legal structure of the new
company
Requires a the deployment of a much larger set of
skills from IPR originators than other options.
Requires significantly more investment than other
exploitation routes
Academic start up founders take the full burden of
venture risk
Source: BBSRC, 2006

A typical route to Commercialisation in
the Biosciences
Applications
End-customer &
Well supplier alliances
Defined
Licence agreements
and joint ventures
Test & development

agreements with
licence option
Research partnerships:
Government/universities/
companies
Early stage
Core
Imprecisely licensing Technology
Defined Status
Fluid Well
Source: Ithaka Life Sciences, 2004 Developed
SWOT analysis
What is SWOT analysis?
A SWOT analysis is a simple framework aimed at
analysing the strengths and weaknesses of the
organisation in relation to the opportunities and
threats in the present and future environment
It aims to provide strategic options which:

Take advantage of the opportunities
Overcome or circumvent the threats
Remedy weaknesses
Capitalise on strengths

Strengths and weaknesses
Strengths and weaknesses are internal to the

business
There are a number of frameworks that can be
used to carry out an internal audit of the business
to determine strengths and weaknesses e.g.
McKinsey 7s, Key Success Factors
Here we suggest a simple framework: 10Ps
You will need to determine how your business
performs currently on all the criteria

The 10 Ps of internal risk analysis
Policies:
Need to be developed to meet and exceed statutory
requirements
Planning:
At strategic and operational level, clarifying purpose and
involvement
Product/Service:
Design or for purpose and eventual disposal.
Process:
Risk associated with all production processes
Premises:
Location, size, lease stability suitability

The 10 Ps of internal risk analysis
People:
Skill training, creation of apt organisational culture, risk
reduction and supervision
Protection:
People premise, materials, intellectual property, data
Procedures:
Are they apt for organisation, monitored, measured and
evaluated
Purchasing:
Continuity of supply, quality standards of suppliers,
manual handling
Performance:
Benchmarked against others in sector, measurement of
risk

Opportunities and threats
These can be established through environmental

scanning:
PESTEL analysis
Market analysis
Industry forces Porters five forces

TOWS Matrix
Strengths Weaknesses
Opportunities SO Strategies WO Strategies
Use strengths to take Overcome

advantage of weaknesses by
opportunities taking advantage of
opportunities
Threats ST Strategies WT Strategies
Use strengths to avoid Minimise

threats weaknesses and
avoid threats
Example: BioBurp
See example in pack (In class exercise,

page 8)

Risk analysis and scenario
planning
Risk analysis matrix
Impact
Low High
High
Low Impact High Impact

High Probability High Probability
Probability
PESTEL Factors PESTEL Factors
Low Impact High Impact

Low Probability Low Probability
PESTEL Factors PESTEL Factors
Low

Scenario planning (what if)
Consider high impact, highly probably PESTEL factors
Each of these factors can then be given two or three

contrasting development path scenarios to identify ways of
minimising their negative influence and maximising the
potential that each path might have.
The combination of PESTEL analysis and scenario planning

techniques can be used to generate a picture of the
anticipated future environment which the business may
have to operate

Key point summary
There are numerous growth strategies that can be used on

the route to commercialisation for the Biosciences -
Collaborative research, Licensing ,Selling IP outright,
Strategic alliances, Joint venture and start-up
Growth strategies change over the development of the
business
SWOT analysis enables the identification of a range of
strategies that will allow the business to grow and defend
itself against potential threats
RISK analysis enables the key external factors to be
identified and prioritised according to their probability and
severity of impact
Scenario planning can be used to prepare the business for
a range of risks that are perceived in the external
environment
8. Marketing Strategy
Defining the Marketing Mix

for your Business
Learning outcomes

be able to:
Recognise the elements required in developing a
marketing strategy

Develop a marketing strategy through
formulation of the marketing mix for their
product/service

TLA framework

and risk
Intellectual The
Property management
Rights team
Market and
competitor
strategy strategy
analysis
The pitch
The marketing mix
The 7Ps
The marketing mix: 7 Ps
Product
The traditional Price
mix elements
Place
Promotion
People
Additional service
organisation specific Process
mix elements
Physical
Source: Bitner, M. J., Boom, B. H. and Tetrealt (1995)

Unique Selling Proposition (USP)
The marketing mix blended together

becomes your USP
Typically business add and subtract
ingredients from the mix to keep the
product/service in the customers mind

Product 1
Comprising of:
Product architecture and design

Product positioning
Product development and planning
There is no right price for the wrong product

Product 2
Consider the following for you business

plan:
Product variety
Quality
Design/Features
Brand name
Packaging/Sizes
Services
Warranties and Returns

Price
PRICE provides PROFIT
Profit indicates your success in finding,
satisfying and keeping customers. However, for
your customers its not just about the monetary
price of your offering.
Customers also consider the other costs of the
purchase that they may incur, including:
Time involved in selecting purchase
Physical effort involved in selecting purchase.
Sensory and psychic costs
Customers perceptions are all important

Price 2
Needs to cover costs

Cost + approach i.e. total cost/ number of
products sold PLUS something for profit
may be too rigid
How does your price compare with the
competition
Consider whether your customer will pay a
premium based on their perception of the
product/service - reassuringly expensive

How profit is defined
Cost of
sales
Sales
Operating
Gross costs
profit
Net profit

Place
Place is about having your product or service in
the right place at the right time
Making it as easy as possible for customers to
buy
3 main methods:
Transported direct to the user
Using one distribution channel, stockist or
retailer
Using multiple distribution channels including
factors, concessionaires, wholesalers, retailers
and franchisees

Promotion
What many new businesses consider as the sum
total of the marketing effort, it includes:
Traditional mass media advertising, press, T.V.,

radio, posters, etc
Sales promotion
Personal selling
Public relations
Sponsorship
Direct marketing
Telemarketing
Electronic media channels

The timing of responses to
promotion investments
Rapid Return Delayed Return
on Investment on Investment
Advertising
Personal
Selling
Public
Increases Relations
in
Sales Promotions
Time After
Investment
People
All the people directly involved in the

consumption of a service
Knowledge workers, employees, management
and other consumers often add significant value
to the total product or service offering, including:
Staff attitudes and internal relations
Consistency of appearance of staff
The level of service mindedness of the organisation
Accessibility of people
Customer to customer contacts

Process
The procedures, mechanisms and flow of

activities by which services are consumed
(customer management services) are an essential
element of the marketing strategy, including:
The degree of customer contact
Application of quality assurance methods and control
standards
The convenience of payment methods
Lead or waiting times

Physical evidence (ambience)
The ability and environment in which the service

is delivered
Tangible goods that help communicate and
perform the service and intangible experience of
existing customers
The ability of the business to relay that existing
customer satisfaction to potential new customers
For example:
Building design and layout
Furnishings and dcor
Goods associated with the service (e.g. packaging and
promotional material)

Customer behaviour and the
importance of service
Market type, customer
behaviour & indicators
Market Embryonic Mature Declining

Type
Customer Early Followers Traditionalist
Behavior Adopters
Principle Security Security Security

Motivation Belonging Belonging Belonging
Indicator Esteem Esteem Esteem

The loyalty ladder
The customer loyalty continuum
Enterprises should Advocates

aspire to be
continually
developing their Clients
relationship with
customers. From
the first point of Customers
contact as
Suspects moving Prospects
up the loyalty
continuum
to Advocate status Suspects

Reasons for customer erosion
68% Move because of 5% Develop other

poor customer business
service relationships
14% Move because of the 3% Relocate

poor quality of
offering
9% Are claimed by 1% Death of principal

aggressive contact
competitors

Reasons why business fail?
42% Poor marketing 6% Skills gap
18% Poor cash flow 3% High interest rates
10% Compliance 2% Bad management
9% Raising finance 1% Materials
9% Tax problems

Key point summary
The traditional view of the marketing mix is to

determine the product, price, place and
promotion
The Service element is vital in the overall
approach to defining a product and therefore the
mix has been extended to include people,
physical evidence and process
It is possible to outsource aspects of the
marketing activity such as promotion/
packaging/brand building to ensure that the
business can focus on core activities e.g.
R&D/technical development

9. Operational Strategy
Determining How Your Business

Will Run and How It Can Be
Simplified
Learning outcomes 1
be able to:
Recognise the key elements of operations using a
value chain framework
Recognise the role incubators in supporting
Biotechnology/Bioscience start-up
Consider the role of outsourcing to simplify
business operations

Learning outcomes 2

Determine their product/service operational
requirements

TLA framework

and risk
Intellectual The
Property management
Rights team
Market and
competitor
strategy strategy
analysis
The pitch
Operational planning
Many new starts in the biotechnology sector will

require some funding from external sources (e.g.
banks, business angels, venture capitalists)
It is essential that owners/managers can convince

those potential professional investors that every
aspect of the businesss operations has been
planned, costed and will be managed in the most
effective and efficient manner

It might sound obvious but anyone who starts a business

needs to plan how their business will work and how the
individual elements of that business will be managed to
produce the desired resultsGoods and services that can
be sold to enthusiastic and loyal customers for as much as
they will pay
This is especially true if the business is capital intensive,
operates in a very competitive market place and requires
significant amounts of time and cash investments before it
turns a profit
Unfortunately many new starts dont have as
comprehensive an operational plan as they should have and
suffer the consequences

Porter has developed a framework that can be
used to examine how the various elements of a
business should interact along the whole
business value chain from:
1. The selection and purchase of raw materials
2. Through the process of adding value to
3. Getting the goods or services to customers then
managing their satisfaction
He describes five primary activities and four
support activities or cross cutting themes which
can be applied to any business
Source: Porter, 1985

Porters value chain: Overview
Understanding Where To Explore
Infrastructure
Support Activities
Financial
Human Resources
Management
Primary Activities
Sales
Inbound Outbound
Process & Aftercare
logistics Logistics
Marketing
Source: Porter,1985
Porters value chain:
Primary activities
The primary business activities are:
Inbound logistics: Including purchasing systems, raw
material quality and continuity of supply contingency
Process: Including administration systems, plant and
equipment maintenance, quality assurance
Outbound Logistics: Including ordering mechanisms,
customer delivery
Aftercare: Including complaints and warranty
management
Sales and Marketing: Including marketing and
communications strategies, sales force management, CRM,
intelligence gathering

Porters value chain:
Support activities
The support activities, or cross cutting themes, are:
Infrastructure elements: Including buildings, operational
equipment, administrative systems, plant, tools and
vehicles
Financial elements: Including capitalisation, purchasing
systems, debt management systems, cash management
Human Resources elements: Including selection
procedures, HR policies and procedures
Management elements: Including compliance and
monitoring systems, management structures, management
and staff skills mix, staff development & training

Porters value chain
The value of the Porter model is that it provides a

framework to:
Break down the business proposal into five major
elements or primary activities
Examine each individual primary activity against
each support activity and make an assessment
about whether they are robust enough for the
purpose of running and managing the business

Porters value chain 1
Infrastructure
Sales
Inbound Outbound
Process & Aftercare
logistics Logistics
Marketing
Infrastructure
Financial
Sales
Inbound Outbound
Process & Aftercare
logistics Logistics
Marketing
Infrastructure
Financial
Human Resources
Sales
Inbound Outbound
Process & Aftercare
logistics Logistics
Marketing
Infrastructure
Financial
Human Resources
Management
Sales
Inbound Outbound
Process & Aftercare
logistics Logistics
Marketing
Outsourcing
Simplifying the business by using

external resources
In house or outsource ?
To make or buy ?
It is very unlikely that a new start business in the
biotechnology sector will possess all the
capabilities and resources it needs to develop its
offering ready for market
It may be more economical and time efficient to
subcontract some development work or processes
out to other businesses
However the decision to outsource must be given
careful consideration especially if the new offering
is particularly innovative and will offer significant
competitive advantage

Outsourcing in Pharmaceuticals
800M UK outsourcing in pharmaceutical industry

Used for clinical trails, software and applied
research
Driven by lack of expertise, time and cost
reduction
Concerns over unintentional IPR leakage, R&D too
central to outsource
Source: Howells, 2006

Factors for successful outsourcing
Potential subcontractors obviously must be

subject to an initial screening process through the
application of a due diligence test, to examine
their capability to complete the required contract
Although contracts are subject to stringent legal

terms and conditions, it is the mutual trust
between principal and subcontractor and similar
organisational cultures that are key success
factors when outsourcing

Incubators
Business incubator defined
Business incubation is a unique and highly

flexible combination of business development
processes, infrastructure and people designed to
nurture and grow new and small businesses by
supporting them through the early stages of
development and change
Source: UK Business Incubation, 2004

Business incubators
Business incubation is a process to deliver

stronger new businesses, create jobs and
produce firms developing new ideas and
technology
Incubators usually consist of a property with
small units
Provides support, access to a range of business
skills

Key features of incubators
Some form of selection or entry qualification

based on business viability and growth potential
via a business plan
The incubator director has close, hands on
relationship with client business
Businesses are encouraged to leave on
graduation when they have established sufficient
market share or maturity
Judged not just by number of companies but on
their performance

Incubator services:
Benefits to clients 1
Incubator directors and staffs knowledge,
experience and skills as well as emotional support
Close proximity to other entrepreneurs from
whom experience and skills can be gained
Access to business training and educational
programmes
Access to systems which can provide financial
support or investment

Incubator services:
Benefits to clients 2
Knowledge, skills and experience of a network of
experts in business or technology
Physical services of incubator
Atmosphere of business innovation and growth
Clear and marketable image which adds
credibility and enhances image with clients

Location of Bioincubators
in the UK
E.g.
Manchester
Liverpool
Imperial College, London
Cambridge
Oxford
Porton Down
York
Norwich

Considerations for your
business plan 1
Location and premises
Why that location?
Own or rent the property or Bioincubator? Why?
Production/Research facilities
What equipment will you be using?
How modern is it? Does it have the capacity to meet
expected demand?
In house or outsource activities?
Management Information systems
How are you managing stock control, financial accounts,
product information?
How are you sharing information with partners?

Considerations for your
business plan 2
Key suppliers
Who are they and why choose them?
Quality control
What legislative requirements, procedures and protocols
will you be using in ensuring product and service
quality?
Health and safety
What health and safety concerns are there and how are
you dealing with them?
Staff
What staff do you need to operate the business?

Key point summary
Porters value chain allows the systematic

considerations of the operational requirements of
the business. Research into best practice in each
of these areas is required.
Both outsourcing and use of Bioincubators are
prevalent in the Bioscience industry
Consider using incubators or outsourcing
activities to simplify operational aspects of your
business
Ensure that all elements of operations are
effectively costed

10. The Management
Team
Building a Credible
Management Team
Learning outcomes

be able to:
Appreciate the scope and difficulty of setting up
a credible management team

Determine proposed titles, duties and
responsibilities of the management team
Determine external support e.g. advisory panel
and consultants
Demonstrate their credibility through the
inclusion of CVs

TLA framework

and risk
Intellectual The
Property management
Rights team
Market and
competitor
strategy strategy
analysis
The pitch
The importance of a strong
management team
It is extremely difficult to grow a higher potential

venture by working single handily. Higher
potential entrepreneurs build a team,
organisation and a company
Source:

The Limited Liability Company
Treated as an individual in law with rights and

responsibilities.
External Stakeholders Traditional Hierarchy Roles

OwnThe
Own TheCompany
Company
Shareholders
Shareholders
Collaborators
Collaborators IdentifyStrategic
StrategicObjectives
Objectives
Board Identify
Competitors
Competitors Board HaveOverall
OverallResponsibility
Responsibility
Have
Customers
Customers SeniorManagement
Senior Management InterpretStrategic
Interpret StrategicObjectives
Objectives
Funders
Funders Team
Team DevelopTactical
Develop TacticalResponse
Response
Government
Government
Suppliers Middleand
Middle andJunior
Junior ImplementTactical
Implement TacticalResponse
Response
Suppliers
RegulatoryAuthorities
Authorities Management
Management
Regulatory
DoThe
Do TheGraft
Graft
Workers
Workers
The management team
Board of directors
Usually five or six members
Elected by stock holders
Set and approve management policies
Consider results on operating results
Declare dividends
Brings supplementary knowledge
Non-executive director

Who could be a director?
Lawyer
Banker
Accountant
Other Business Executives
Local management consultants
Expert in the field
Often paid through an annual retainer, board
meeting fees and pay for committee work
Share option packages offered depending on
industry practice and plans for growth
The due diligence test also applies to potential
directors. Checks for disqualification and character
references are essential.

What is due diligence?
Process where your business, your financial

records and your business plan in minute detail,
checking the validity of almost every known fact
about your business - including your past
performance and the credentials of you and your
fellow directors
Investigation of the records to support its value
and find out whether there are "skeletons in the
cupboard"
Process is covered by confidentiality undertakings

Management the reality
Finding good directors and CEOs is not easy

Founding scientists rarely make good CEOs
Management needs evolve as company develops
Long-term vision from the start: identify skill
gaps
Plan ahead: be receptive to learning opportunities
Use experienced help from the start (e.g.
mentors, consultants etc)

Typical profile of a CEO
Board experience in technology-based company.
Fund raising experience.
Deal maker with a successful track record.
Marketing and business development skills.
Ability to work with academic and industrial
scientists.
Strong presentation and inter-personal skills.
Strategic vision.
International experience, preferably in the US
market.
Ability to take products from R&D to market.
Entrepreneurial spirit !!!

5 Phases Of Growth
Phase 1 2 Source: Greiner,
3 1996 4 5
Crisis
Of
???
Large Evolution (Growth) Stages
Crisis Growth
Of Through
Revolution Stages Red Tape Collaboration
Crisis Growth
Stage Of Organisation
Of Through
Control Coordination
Crisis Growth
Of Through
Autonomy Delegation
Crisis
Growth
Of
Through
Leadership
Direction
Growth
Through
Creativity
Age Of Organisation
Small
Typical CEO start-up package
Salary: 120-150k p.a. (full time)

Share options: 5-10% vesting with time
Bonus: 10-20% of annual salary
Relocation package: up to 7.5k tax-free
Additional benefits: pension, health insurance etc

Your external support team
Professional advisors
Consultants
Advisory board
Can be an alternative to a board of directors
Qualified outsiders are asked to serve on the
council

Key point summary
It is important to create a support team for the

business through assigning a board of directors,
identifying consultants and /or an advisory board
Roles of the management team and staff must be
clearly defined
It is unlikely that scientists will have the
capability of managing their own business making
the team approach vital
The skills required to establish a company may
not be the same as those required to steer it
through the early stages of growth
The selection procedures for managers and other
key staff take this into account

10. Financial Planning
Funding in the Biosciences and

Projecting Financial Performance
of the Business
Learning outcomes 1

be able to:
Determine possible funding sources appropriate
to the stage of development
List and cost the resources required to establish
an enterprise
Understand the purpose of the three financial
forecast documents
1. Cash flow forecast
2. Profit and loss
3. Balance sheet
And break even analysis and establish loan
requirements

Learning outcomes 2

Estimate sales projections and other sources of
income
Estimate costs
Demonstrate funding required through a cash
flow forecast
Identify funding sources
Demonstrate the attractiveness to investors
through calculation of payback and breakeven
Justify all assumptions made in determining the
financial requirements of the business

TLA framework

and risk
Intellectual The
Property management
Rights team
Market and
competitor
strategy strategy
analysis
The pitch
What investors want
You will need to be able to provide potential

investors with :
Estimated sales projections based on the
marketing strategy and estimates of anticipated
share of targeted market
Estimated start up and initial running costs
Cash flow forecasts (usually three - five years)
Profit & loss and balance sheet forecasts
Any other potential sources of finance

What do potential funders want to
know about your business ?
The eventual choice of funder will depend on
many different objective (and some subjective)
factors, including:
Attitudes to risk
Application of the due diligence test
Experience of lending to the sector
Expected return on investment
Institutional lending policy
Rapport between lender and borrower

Funding enterprise development
in the Biosciences
Funding the Biosciences
The creation of top tier US Bioscience companies

has historically required $600-700 million dollars
prior to profitability
Companies need these finds to finance lengthy,
risky drug development
Even in the US, the best funded Bioscience
market in the world, Bioscience companies have
historically taken 10 years to reach profitability
Source: DTI, BIGT,2003

Funding rounds for the Biosciences
Initial Seed 1st VC

Formation
finance finance round
Founders,
Business angels; University
family &
Challenge Funds; specialist
friends
Venture capitalists

Sources of funding
Self, family and friends

Shareholders and directors
Internal company sources
Banks
Second tier finance
Special financial institutions
Venture Capitalists
Mergers and Acquisitions
Grants
Business Angels
Funding sources in Bioscience
commercialisation process
1: Idea development
and validation
Requires typically 50,000 to 1 million
University Challenge Seed Funds: up to 250,000
Family/friend/angel funding (e.g. Cambridge Angels):
typically 100,000
Venture Capital (seed specialists e.g. Avalar, Sitka and
some broader biotech specialists e.g. Merlin, Apax, Advent
BBSRC Small Business Research Initiative: grants of
100,000 -200,000 over 2-3 years, second call of 1.4M
Investment funds aligned alongside research bodies
Catalyst BioMedica (Wellcome Trust)
Cancer Research Technology Ltd (CRC)
MVM (MRC)

2: Early stage Start up/first
stage venture capitalists
Requires typically 1M -10 million
Start-up focused on broader venture capitalists
e.g. Abingworth Schroder Ventures, Apax, Merlin,
Advent
Very high net worth angels
SMART: grants for 50,000 - 400,000, out of a
ttal funds of 2 million
LINK programme: collaboration between industry
and research base funding 50% of R&D costs
over 2-3 years

3: Later stage
Multiple rounds of venture capital

funding 10 -50 million per round
Institutions willing to invest in private
companies
Pharma/biotech partners
Public markets: AIM,LSE,NASDAQ

Business Angels
Who are business angels?
One of the sources of funding available to

businesses with high growth potential is through
Business Angels, high net worth individuals with
cash to invest and skills that can be utilised
Attracting investment from these individuals
requires more than a high quality business plan
Business angels examine every aspect of a
business proposal before they decide to invest
The disciplines required to prepare an investment
case for these individuals can be applied to other
potential funders

Business angels Who are they? 1
High net worth individuals with cash to invest on their

own or as part of a syndicate in high growth
businesses
They also make their own skills, experience and
contacts available to company
They rarely have previous connections with companies
before they invest but will have very a strong
experience of its industry or sector
The motives for their investment may be purely
financial but there may be many more reasons why a
business angel will choose to invest

Business angels - Who are they? 2
A typical business angel may have investments

which last for three years under the Enterprise
Investment Scheme (EIS)
In the UK most business angels belong to a trade
association The British Business Angel Association
all of whose members will have signed up to the
BBAA best practice Code of Conduct

Business angels - What do
they look for? 1
A return of between 35% and 40% per year
through dividend and share value growth
An opportunity to influence the strategic direction
of the enterprise and also operational issues
The enthusiasm, expertise, motivation, track
record and integrity of the business founders
The business competitive edge and growth
potential of the business target market

Business angels - What do
they look for? 2
Compatibility between the management, business
proposal the business angel skills and investment
preferences
The financial commitment of the business
founders
An exit strategy i.e. How you wish to reap the
benefit of your business in the long term
E.g. closing the business, selling the business,
floating the business, merging

Business angels What should
you look for?!
That the enterprise management team and
business angel are compatible and will be able to
work together
That the business angels skills match the
companies needs
You are within your rights to apply the due
diligence procedure to any potential BA or other
investor

Business angels What should
you provide?
Basic information about the business product and
service range, number of employees and trading
history
A comprehensive business plan containing all the
essential elements
Historical trading and financial information the
previous 3-5 years (where applicable)
Amount of money sought and its use
Access to your financial and legal representatives
to enable the Business Advisor to conduct a due
diligence test
A valuation of the enterprise
The financial forecast documents
and Break even point
Costing start up
Cash flow forecast
Profit and loss forecast
Balance sheet forecast
Break even point
The financial forecast documents
Whoever is approached to provide the cash for

enterprise start up and early trading will want to
evaluate the business plan including the
comprehensive financial forecasts and the
assumptions used in their construction

Costing the start up
Costing the start up:
The shopping list
The enterprise shopping list will consist of five
elements:
1. Premises
2. Operational needs
3. Administrative needs
4. Intangible needs
5. Working capital

Costing the start up -
Premises
Example selection criteria:
Floor size
Location
Rateable value
Security
Service costs
Utility costs

Operational needs
Communications hardware
Health and Safety equipment
Marketing costs
Monitoring equipment
Process equipment
Tools: hand, powered and associated
consumables
Pre start and early trading trading

Administrative needs
Office equipment
Communications systems
ICT Systems for compliance monitoring,
customer relationship management (CRM)
financial control and process quality
measurement
Stationery and consumables

Costing the start up 4 -
Intangible needs
Critical breakdown covers
Insurances
Licences and permissions
Professional fees, legal, accountancy, surveying etc.

Costing the start up Working
capital and contingency needs
Cash in the bank to fund the running of the

business and the additional contingency element

The costing exercise will require subsequent

review as the business plan is developed and
more options become available:
Leasing equipment rather than outright
purchase of new or second hand examples
Subcontracting some less critical parts of the
business process may be an alternative to
doing everything in house providing that
subcontractors can meet both the hard and the
softer sub contracting qualifications

Cash flow forecast
What is it for?
How do we construct one?
What are cash flows for? 1
An attempt to forecast the future viability of

the business in terms of cash flowing into and
out of the business, utilising the most realistic
assumptions possible
Remember
Measuring the business performance by
turnover is insanity
Profit is vanity
Cash is reality

You are trying to predict the future performance

of your business over a 12, 24, 36 month or even
longer period of time
The longer the prediction period the less the
probability of accuracy
The finished result should be consistent with all
other elements of your business plan and
obviously convince you (the entrepreneur) of
potential viability

To anticipate the amount of working capital
(cash in the bank) required to start the
business
Most businesses do not make enough
provision for working capital at the start of
trading and never recover from that initial
lack of investment
Bioscience based businesses have long
gestation periods. There must be a
commitment to the provision of sufficient
working capital until revenues flow into the
business from sales

To anticipate the flow of cash into and out of
the business. The timing of inflows and
outflows of cash from the business account
are as important as the quantities involved
To anticipate when net cash flows and more
importantly, monthly closing balances are
likely to be negative
The business manager can arrange
supplementary short term loans (overdrafts)
or additional injections of cash well before
they are needed

Cash flow forecast
construction 1
Identify how much money you need to cover
the cost of your shopping list, in terms of:
Premises requirements
Operational needs: Tools, equipment,
staffing requirements, marketing, etc
Administration needs: ICT systems
Intangible needs: Professional fees etc
Working capital: Cash in the bank

Cash flow forecast
construction 2
Determine how you will fund your start up
shopping list including all the important
elements:
Will it be from grants, soft unsecured loans,
secured loans, your own money or a mix of all
four?
If funding is from loans from external sources
what is the rate of interest demanded by
lenders?
What is the probability of interest rates rising
during the loan period?

Cash flow forecast
construction 3
Start the cash flow forecast by determining
what it will cost to run the business in terms
of:
1. Direct Costs
The raw materials and other consumables
that are used at a rate directly proportional
to income (takings) from sales
2. Indirect Costs or Overheads
All other business expenses that are not
directly proportional to income (takings)

Cash flow forecast
construction 4
One of the easiest overheads to work out is
your own monthly drawings or salary
requirement: The amount you need to draw
out of the business to meet your own
personal, survival budget requirements
An example survival budget layout is shown in
the word document that accompanies this
presentation

Cash flow forecast
construction 5
By calculating your total business costs you can
then work out how much income you need to
generate from your customers
Be generous with your business cost forecasts!!
Then be conservative with your business
income forecasts!!
If your first draft cash flow doesnt look viable
(and you may need to do more than one) start
looking at:
Ways to reduce your costs
Increase income by positioning your product or
service at markets that might provide better returns
(takings)

Applying sensitivity analyses
[Looking at the what ifs???]
An examination of the sensitivity of the
business to fluctuations in costs and income
from sales
The longer the forecast period the more valid
the application of this analysis

Cash flow forecast assumptions
Cash flows are only as valid as the

assumptions made in their construction
Potential investors, business angels and
venture capitalists will always question the
validity of all the assumptions made during
the construction of the forecast
State them in your business plan

Profit and Loss forecast
Profit and Loss (P&L) forecast 1
The P & L forecast or income statement captures,

over a specific period all the sales and costs
associated with achieving either a profit or loss
for that period
Sales Revenue (recorded net of any tax) relates
to all sales in a specific trading period (in this
case 1 year)
Costs of Sales are the direct costs associated with
achieving the sales revenue
Gross Profit = Sales revenue - Costs of sales

Profit and Loss (P&L) forecast 2
Operating Costs also known as indirect costs or
overheads do not vary with the volume of sales
Operating profit = Gross Profit Total
Operating Costs
However there are other non-operating costs and
income sources that need to be taken into
account:
Depreciation and amortisation
Interest charges and interest derived income
Profit before tax take these non operating costs
into account and this is the figure that is subject
to corporation tax leaving Profit after Tax

Profit and Loss account
- Typical layout
ACME Pharmaceutical s Ltd
Profit & Loss for the year ended 31 March 2006
Cost () Income ()
Sales Income 500,000
Cost of Sales
Raw materials 50,000
Sub Contract Costs 120,000
170,000
Gross Profit (Sales less Cost of Sales) 330,000
Overheads
Employment Costs 150,000
Depreciation 20,000
Other Operating Costs 80,000
250,000
Profit before interest and tax 80,000
Interest payable 10,000
Profit before tax 70,000
Tax 15,000
Profit after tax 55,000
Dividends 5,000
Net profit or retained earnings 50,000

The Balance Sheet
See Excel example

What is the balance sheet?
It is a financial snap shot that summarises the

value of the business at a particular point in time
although it is usually carried out on annual basis.
The balance sheet does provide an indication of

The accounting value of the business, (assets less
liabilities).
How the business is financed and
How solvent the business is i.e. how quickly
assets can be converted into cash

The balance sheet 2 -
What it doesnt do
Balance sheets do not:
Show the profitability of the business

Represent the true market value of assets which
may be more or less than the figures on the
balance sheet
Show the market value of the business which
depends on many other factors including
profitability and the current value of assets

How to build a Balance sheet
Estimate value of fixed assets at year end (asset)

Estimate value of stock if any (asset)
Estimate how much is owed to the business
including VAT (liability)
Estimate how much the business owes to
suppliers of materials and services including
unpaid VAT, PAYE and NI (liability)
Estimate borrowings from bank and other sources
(liability)
Calculate net current assets by deducting current
liabilities from current assets
Balance Sheet Typical Layout
Fixed Assets (1)
BALANCE Tangible Assets
SHEET
Equipment 40,000
AS AT
Buildings 95,000
31 MARCH 06
Intangible Assets
Goodwill 5,000
140,000
Current Assets (2)
Stock 10,000
Debtors 20,000
Cash at bank 5,000
35,000
Current Liabilities (3)
Loans 23,000
Creditors 7,000
Tax 2,000
32,000
Net Current Assets (2 minus 3) 3,000
Total assets minus current liabilities (1 + 2 minus 3) 143,000
Creditors (Falling due after one year) (100,000)
Net Assets 43,000
Capital and reserves
Shareholders 30,000
Reserves 13,000
Net Worth 43,000

Break Even Point
What is Break Even Point (BEP) ?
The point at which the cost of producing an
offering, a good or service equals the income
made from selling that particular offering
Total costs of production consist of two

elements:
1. Fixed costs (remain fixed whatever the
output)
2. Variable costs (vary according to output)
Income increases with increased output (sales)
Break Even Point occurs when total costs

equal income
Break Even Point
Income
Break Even Point Total Costs

s
Variable Cost Element
Fixed Cost Element
Number of units output

Break Even Point 1
= Fixed Costs
Selling Price Unit Variable Costs

Break Even Point 2
Gross Profit = Sales - Cost of Sales
Gross Profit % = Gross Profit x 100

Sales
Break Even = Total Fixed Costs x 100

Gross Profit %

Key point summary
There are numerous sources of income for the

Bioscience start up firm which vary overtime
depending on the amount of money required and
the stage development of these products
A number of documents are needed to present
the business case to investors inc. cash flow, P&L
and balance sheet
The most important document for the business
plan is the cash flow forecast as it determines
whether the business has money or not and
funding requirements

12. Pitching the Idea
Presenting the Business Case to

Potential Investors
Learning outcomes
These notes should enable students

to:
Recognise needs of investors
Define the scope of a presentation of a business
plan
Recognise factors that make a successful
presentation
Prepare and present their business plan to
potential investors

TLA framework

and risk
Intellectual The
Property management
Rights team
Market and
competitor
strategy strategy
analysis
The pitch
The Pitch What is it?
A presentation of your business plan to attract

potential investors, staff, collaborators,
management team
Each stakeholder will require different aspects of

the business to be explained to them to
determine whats in it for them?

The Pitch Who are potential
investors?
Could possibly be drawn from:
Friends
Family
Bank
Business Angel
Venture Capitalists
For this learning framework you need to consider
presenting your business plan to potential
investors

Preparation
Know your investor

Decide how much money you want
What else do you want contacts, management
expertise
Know your business inside out and cover any
weak points
What are you giving in return? A share of the
business how much are you prepared to give
away?

What are investors looking for?
Maximising potential return on investment

through cash flows that will be received, while
minimising risk exposure
World class management - proven track record
Products that address major needs

Content of business presentation
1. The companys background and its product and

services
2. A market analysis and description of the
opportunities present
3. The companys competitive edge and the
marketing strategies it will use to promote that
edge
4. The management team and its members
qualifications and experience
5. The financial analysis that shows lenders and
investors an attractive payback or pay off
Successful presentation
Be enthusiastic but not over emotional

Quick upfront explanation of the new venture
the Hook!
Discuss benefits and the opportunity rather than
detailed aspects of the product/service
Avoid detailed technical discussion
Use visual to punctuate the presentation rather
than to explain all
Be sure to answer the question whats in it for
the investor
Follow up with each investor

Key point summary
Preparation as with any presentation is key here

Investors want to know that any investment they
might make offers an attractive reward and is off
set by recognition and action against potential
risks
Do not attempt to present your entire plan. Pick
out the key elements that investors will want
answers to i.e.. the following questions
what is your product/service
why will it succeed
what is in it for the investor
Good luck!

If you want to take it further
University Business Support Unit

Business Link
www.businesslink.gov.uk
YES Young Enterprise Scheme in the
Biosciences
www.Bioscienceyes.co.uk/
NES Programme New Entrepreneur Scholarship
programme
www.nesprogramme.org/

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A Framework for

Aims, Learning Outcomes,

2. To prepare the minds of Bioscientists for

A Framework for Enterprise Development and Entrepreneurship 3

Either as independent entrepreneurs

Or as part of an intrepreneurial business

A Framework for Enterprise Development and Entrepreneurship 4

Students who participate in this activity

NB: No previous knowledge of business is

Project Business plan and

Business Business Financial

Market and Operations and

1. Learning material for 12 teaching sessions

A Framework for Enterprise Development and Entrepreneurship 8

1. The context and group formation

Louis Pasteur (1854)

A Framework for Enterprise Development and Entrepreneurship 10

The Nature, Importance and

By the end of this session students should be able

A Framework for Enterprise Development and Entrepreneurship 12

Project Business plan and

A Framework for Enterprise Development and Entrepreneurship 13

Any of the branches of natural science dealing

Synonym: life science

The application of scientific and engineering

A Framework for Enterprise Development and Entrepreneurship 15

A Framework for Enterprise Development and Entrepreneurship 16

Source: DTI, 2006

A Framework for Enterprise Development and Entrepreneurship 17

A Framework for Enterprise Development and Entrepreneurship 19

A Framework for Enterprise Development and Entrepreneurship 21

Information process, research and development

Source: Walsh and Green, 1993

A Framework for Enterprise Development and Entrepreneurship 23

UK is the Biotechnology industry leader in Europe

Source: DTI, 2006

A Framework for Enterprise Development and Entrepreneurship 24

A Framework for Enterprise Development and Entrepreneurship 26

Source: DTI, BIGT, 2003

A Framework for Enterprise Development and Entrepreneurship 27

The act of starting or growing a business through

A Framework for Enterprise Development and Entrepreneurship 29

Source: Antoncic and Hirsh, 2003

A Framework for Enterprise Development and Entrepreneurship 30

Limited liability (Incorporated)

A Framework for Enterprise Development and Entrepreneurship 32

Company limited by guarantee

A Framework for Enterprise Development and Entrepreneurship 33

Liability of the owners for the debts of their companies is

A Framework for Enterprise Development and Entrepreneurship 34

1. Idea generation and validation

Source: DTI, BIGT, 2003

A Framework for Enterprise Development and Entrepreneurship 36

Source: DTI, BIGT, 2003

A Framework for Enterprise Development and Entrepreneurship 37

Start developing technology platform/product

Source: DTI, BIGT, 2003

A Framework for Enterprise Development and Entrepreneurship 38

Source: DTI, BIGT, 2003

A Framework for Enterprise Development and Entrepreneurship 39

University Incubator Start-up

Seed capital Venture Capital

A Framework for Enterprise Development and Entrepreneurship 40

Long lead time from concept to market e.g.