Because of their nature, pharmaceutical business plans can be a little more complex than other business plans. You still need to describe your business model and the markets you serve – you still have to outline the marketing strategies your business uses, and provide an intelligent financial pro forma showing the business opportunity. But you also need to address federal regulations and FDA protocols you'll need to fulfill. You should also create an integrated financial model that clearly demonstrates the impact of sales falling below your benchmarks (by 15-20%, for example) in the event a competing drug takes market share from you. Your business plan should also speak to patent issues, and make sufficient contingency allowances for lawsuits or investigations which could hamper your market penetration. Some other tips for a pharmaceutical business plan:
1) Provide as much information on your drug as possible – product labels, chemical specifications, trial results, intended uses, active ingredients, etc.
2) If your product description feels too dense, move the less germane details to an appendix for interested investors
3) Analyze the market both nationally and globally, drawing on competing products for market share and penetration metrics
4) Ensure that your marketing strategy accords with industry standards and regulations
5) Highlight any key advisors or scientists who were instrumental to the drug's development
You should also be able to prepare a financial model with a five-year forecast that shows the market potential for the drug. This means pinning to underlying assumptions as closely as possible in the revenue and expense tables. If you need assistance with the market analysis portion of the business plan or want to outsource the cumbersome task of developing a working model for savvy investors or corporate boards, contact the expert consultants at MasterPlans.com. Since 2002 we have been working on venture capital and investment level business plans for clients in a range of industries, including pharmaceutical development and medical services. Call a consultant today at 877-453-2011.
