In Bangladesh, there is no information on the market for biotech products. However, Bangladesh’s local demand for biotech drugs is estimated to be around BDT 600 crore. Because of the urgent need for biotech products to achieve human medicine self-sufficiency, Bangladeshi pharmaceutical companies are gradually shifting to biotech and high-tech products. Several companies have already launched anti-cancer, anti-HIV/AIDS, and human insulin drugs, and many more are planning to launch biotech and high-tech products in order to keep up with the global pharma market trend, meet local biotech demand, and export those products to other countries.

In fact, considering its high technology, expenses, time consumption, investment return, and other factors, the basic development of biotech molecules/products through research would be practically impossible for the private sector without active government support. Alternatively, foreign investment or a partnership with a foreign biotech company could make it happen.

Step 01:   Double-check that the concept meets a genuine market need.

There are numerous biotech-related issues and yet-to-be-perfected biotech processes in our daily lives that are awaiting resolution by potential biotech entrepreneurs. These are high-potential business opportunities for biotech start-ups because you don’t have any extra modification or variation costs because you’re starting from scratch! Many of our dear entrepreneurs out there, it is understood, have a plethora of ideas to address the aforementioned. Working on these concepts ensures that you will be able to tap into an existing market with a fresh perspective, thereby creating a blue ocean.

You must ensure that the technology you are interested in is protected by intellectual property in order to protect your goose that lays the golden egg (IP). In Bangladesh, there are three ways to obtain IP for your product: a patent, copyright, or trademark. Then secure the assets, intellectual property rights, and commitments from investors and key personnel.

Step 2: Make a list of the company’s founders and key personnel.

We should all take great care in identifying potential candidates and learning about their motivations and commitments to the future organization. Aside from that, you should figure out what percentage of the company each person will own to avoid future conflicts. This should be decided ahead of time because you do not want a shareholder to receive identical equity ownership who will not be working with the new business but will maintain a secure position while receiving high monthly returns.

Step 3: Locate a Reputable Attorney

This individual is crucial to the success of your biotech company. They should ideally be a key collaborator. This is the person to whom you will turn for legal advice, guidance, and counsel. They’ll help you navigate corporate and business challenges at every stage of your business’s development and growth. Your lawyer must be able to advise you on how to stay in compliance with the law while maximizing profit. Within the first week of starting a biotech business, you’ll have this person’s phone number memorized. Because of the importance of this person in your company, choose someone you can trust and collaborate with.

Step 4: Form a Corporation for Your Business

When starting a biotech business, you’ll need to raise funds or apply for a federal small business innovative research grant. Aside from that, you should incorporate your business to avoid paying astronomical fees when issuing founders’ stock. The fees are necessary because the company’s value at this point is extremely low.

 Step 5: Create well-thought-out marketing and business strategy.

As you are all aware, starting a biotech business in Bangladesh necessitates financial resources. That’s where this step comes into play. A well-written business plan can assist you in raising funds. This is because your business plan explains the needs of society in detail, as well as how your product addresses them. It will also explain the numbers that will pique the interest of your potential investors. Furthermore, this is the time to discuss your future plans, such as what you intend to do with the money, the expected returns, and the exit strategy for an investor.

Include your attorney in the development of your business plan so that they can assist you in turning it into a fundraising document. A comprehensive business plan that includes, among other things, your strategic product development, effective marketing strategies, and a realistic cash flow will assist you in persuading investors. You’ll hold a meeting with the interested investor groups once the business plan is complete. Things that are legal are included! You could also hire a corporate service provider in Bangladesh to assist you with this.

Step 6: This is optional! You could try running it as a virtual company first

Instead of forming a company and then discovering that your business plan does not work, role-playing your business plan with a group of potential partners is a good way to simulate your business plan virtually. This may not provide you with the details of real-life experience, but it will assist you in identifying loopholes and potential pitfalls in your business plan, particularly in the areas of development and business processes. Before finalizing your business plan for securing funding, it wouldn’t hurt to have those documents revised and improved.

Step 7: Improve Your Technology As Your Product Advances

Make sure to highlight the major value-increasing product development milestones throughout the entire product development process. Then, for the first milestones, demonstrate consistent growth by meeting these projections. Investors are interested in hearing about companies that are following a predetermined development path.

There you have it: a step-by-step guide to starting a biotech company. Don’t forget to register your biotech company with the Bangladesh Trade Registry. If you require assistance, Network BD can help you form a company in Bangladesh.

The biotech industry is full of untapped potential, and starting a company can be difficult. Our company formation specialists can help you with the incorporation of your business, even if it seems daunting. If you’re thinking about starting a biotech business in Bangladesh as a corporate service provider, get in touch with us and we’ll do everything we can to make sure everything goes smoothly for you!