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Most entrepreneurs focus on simple businesses with straightforward business models. And they do well with it. You can make a lot of money running a daycare, plumbing business, or Shopify store.
But when it comes to human progress, it is only the companies operating at the fringes of what’s possible that tend to make the real progress. It is these intrepid souls who somehow manage to do the impossible and come up with ideas that change the world.
What’s more, many achieve greatness while starting from low levels. Steve Jobs and Steve Wozniak set up Apple in a shed.
Biosciences is an industry that’s operating right on the fringes of what’s possible. And breakthroughs in this area are often more critical to humanity than those made elsewhere because they directly affect our bodies and food supply.
But what are the risks and rewards of such a venture? And why don’t we see more people taking the plunge and attempting to succeed in this industry?
The Risks
Bioscience endeavors are full of risks. Here are some of the chief dangers that entrepreneurs in the space face:
Uncertain Outcomes
Most bioscience companies don’t know whether their flashy new idea will work in the real world. Companies might have some empirical or theoretical justifications for their concept, but putting it into practice often requires oodles of R&D and a little luck. Managers, owners, and venture capitalists simply don’t know what’s going to happen next.
Regulatory Hurdles
At the same time, many of these entrepreneurs face severe regulatory hurdles. Because biosciences relate to human life, governments put strict regulations in place to prevent health-related mishaps.
Therefore, many companies must go through years of wrangling before putting a product on the market. Unlike entrepreneurs in the tech sector, they can’t “move fast and break things” or put out a “minimum viable product.” It’s just not possible.
The Costs
Finally, there is the high cost of setting up a biosciences company. It’s not something that firms can do “capital-lite” like many other businesses.
The costs of setting up the R&D section of the business can be extensive. You need all the equipment plus talented individuals who can manage and operate it. You also need to wait several years for revenue to start coming into the business, which is not the same as most other firms.
The Rewards
If you can stomach the risks, the rewards can be significant.
High Growth
Once you have the lab and biosafety equipment in place, the growth potential is substantial. All you need to do is provide the formulation to a manufacturer and give them a few month’s lead to create the medicine or device.
The scalability of your operation doesn’t rely on building out new infrastructure. Existing capital should suffice.
The Intellectual Property
When you create a successful biosciences venture, you also get to keep the intellectual property. Nobody can copy you, even if they know your formulation.
The Impact
Finally, biosciences give you a sense of impact. You feel like you are contributing to the world, which is motivation in itself.
