How to Start a Pharmaceutical Business
It is estimated that the global pharmaceutical industry is over $1.5 trillion. The U.S alone accounts for over 45% of the market. Advancement in science and technology are driving innovation and opening exciting opportunities for people that want to invest in or start their businesses. It does not matter if you wish to repurpose the existing drugs or manufacturing new ones, this is the right time to start your company.
Evaluate Your Options
You need to carry out thorough research before starting a pharmaceutical business. This will help you to assess the various options you have. Taking into account your budget and goals, you can decide to market medicines and drugs under your brand name or even start a manufacturing company. A lot of investors are partnering with drug manufacturers in distribution and supply. There are various types of start-ups in this sector that have unique characteristics. They include the following:
- Import companies
- Specialty companies
- Export companies
- Franchises
- Distributors
- OTC companies
- Branded companies
For instance, you can start a pharmaceutical enterprise that is involved in manufacturing and promoting its products. This needs a considerable investment and a lot of paperwork. Thus, if budget is an issue, you should start a distribution business. In this case, you can start small and expand your operations over time. Another option is to begin a franchise business. The good thing about a franchise business is that it needs minimal investment.
Develop a Business Plan
After choosing the type of pharmaceutical company you want to start, you should develop a business plan. Moreover, you need to consider the licenses and investment required to start this type of enterprise in your area of interest. For instance, if you want to invest in manufacturing, you will need a production facility, lab equipment, and machinery. Also, you need machine workers, office supplies, and technical staff. It is a good idea to obtain approval from FDA. Other things you require include water, electricity, and HVAC unit.
Usually, the license requirements will differ depending on the business operations. Various online portals and websites can help you determine the permits and licenses you need. Ensure that any distributor or manufacturer you work with is licensed. You should choose whether the distribution will be outsourced or done in-house. The business plan ought to cover various aspects such as funding, operational costs, competitive analysis, and objectives.
