UC Alternative Careers Seminar Science Careers in Small Business Health Science Graduate Student Association April 21, 2

1. UC Alternative Careers Seminar • Science Careers in Small Business • Health Science Graduate Student Association • April 21, 2009

2. Overview • Power of Small Business • Definition of Entrepreneur • Entrepreneurial Drivers • Entrepreneurial Attributes • Entrepreneurial Myths • Classic Entrepreneurial Mistakes • Entrepreneurial Survival Skills • Getting Started

3. Power of Small Business 1 • Small business is a powerful engine of • opportunity and economic growth • “Golden Goose” of job creation • Of all net new jobs created over half created by 1-4 employee businesses • Jobs created by new firms account for • > 60% of the total employment increase

4. Power of Small Business 2 • Builds wealth • 80% of the current Forbes 400 list of wealthiest Americans are first generation entrepreneurs who “started with nothing and built major enterprises creating enormous wealth” • This entrepreneurial dominance of the list of America’s wealthiest has been the case every year since the magazine was first published in 1982.

5. Power of Small Business 3 New and small firms play a crucial role in experimentation and innovation that leads to technological change and productivity growth

6. Power of Small Business 4 • Three key trends • Transformation of large businesses • Creation of new and small businesses • Role of women, minorities and immigrants and • veterans • Women and minority owned businesses continue to increase at rates exceeding the average rate of increase in US firms

7. In Summary….. Small business is here to stay!

8. Definitions • Start-Up • A new business venture • A risky enterprise • In business for about ten years or less • May or may not have achieved profitability in that time span • Small Business • A business that is independently owned and operated that is not dominant in its field of operation, provided it has annual receipts not in excess of $500,000 and has fewer than 500 employees

9. Definitions • Entrepreneur • A person who organizes and manages a business • undertaking, assuming the risk for the sake of profit • (Webster) • Creation and/or recognition of opportunities • followed by the will and initiative to seize these • opportunities (Spinelli) • Entrepreneurs devise ingenious strategies to • marshal their limited resources (Timmons)

10. Entrepreneurial Drivers • Dreams • Passion for Change • Hope for Future • Desire to Succeed • Downsized • Accidental • Crisis-Driven • Social Cause • Career Changing

11. Entrepreneurial Attributes

12. Committed / Determined • Willing to do whatever it takes • Decisive • Persistent in problem solving

13. Leadership Driven • Self-starter • Team-builder • Honest, reliable, trustworthy, fair

14. Opportunity Obsessed • Understands customer needs and wants • Market driven • Value creation

15. Tolerant of Risk, Ambiguity and Uncertainty • Calculated risk taker, minimizes/shares risk • Manages paradoxes and contradictions • Tolerates uncertainty, lack of structure, stress, conflict

16. Creative, Self-Reliant and Adaptable • Non-conventional thinker • Quick, superior learner • Flexible, quickly adapts to change

17. Motivated to Excel • Outstanding achievement • Goal and results oriented • Aware of weaknesses and strengths • Maintains perspective and sense of humor

18. Entrepreneurial Myths • Entrepreneurs are born, not made • Anyone can start a business • Entrepreneurs risk everything • Entrepreneurs want to run the show • Entrepreneurs are their own boss and completely • independent • Entrepreneurs are motivated only by money • Talented entrepreneurs are successful in a year or two • Entrepreneurs with a good idea can raise capital

19. Classic Entrepreneurial Mistakes • Technology in search of a market • Failure to transform a technology into a product • Product never ready for market • Focus on product features instead of benefits • Unrealistic about product’s unfair advantage • Underestimating customer willingness to change • Underestimating the competition • No commercialization experience • Underuse of professional advisors to save money • Undesignated or inexperienced leadership • Insufficient capital

20. Founder Mistakes • Lack of focus • How to tell the good guys from the bad guys • Failure to admit a mistake • Ignoring the handwriting on the wall • Reluctance to seek help

21. Importance of Attributes, Myths, Mistakes • Understanding the realities improves the probability • of success a new venture • An entrepreneur or employee of a small business • may need to modify his/her own traits to have a • higher probability of success • Some attributes can be acquired, some cannot – • build or join the small business team accordingly

22. Entrepreneurial Survival Skills • Addressing Unmet Market Need • Business Plan • Advisory Board • Mentors • Network • Apprenticeship

23. Addressing Unmet Market Need • Unique • Solves real problem – clinical, economic, patient care • Improvement over current practice • Saves time, money

24. Business Plan • What • Comprehensive picture/model of business • Who, what, where, when, how, how much? • An adventure story-makes reader want to know more • Why • Sell yourself on the business • Raise capital • Secure customers • Attract employees • Motivate management team • Guide operations

25. Components • Overview of Company • Products / Services • Market Opportunity • Intellectual Property • Sales Awareness and Strategy • Management Team and Advisors • Financial Projections • Investment Opportunity • Exit Strategy

26. Advisory Board • Small group of experts • May be paid or volunteer • People who will tell you the truth • Skills and experience that compliment your own • Care and feeding of advisory boards

27. Mentors • Someone you want to learn from • Possess coaching skills • Ask hard questions and expects real answers • Challenge you to challenge yourself • Cultivate mentors throughout your life • Care and feeding of mentors

28. Network • Local Opportunities • Young Entrepreneurs Organization • Collegiate Entrepreneurs Organization • National Collegiate Inventors and Innovators Alliance • Kauffman Entrepreneurial Internship Program

29. Apprenticeship • Successful entrepreneurs are outstanding learners • Takes 7-10 years to gain sufficient judgment, • instinct, experience to develop a successful business • Work for a large company • Work with a successful entrepreneur • Work with an emerging entrepreneur

30. Getting Started • Research, Ask Questions, Listen, Learn • Feasibility Assessment • Concept Statement • Test the Waters (Ask. Listen, Learn) • Write the Plan • Test the Plan (Ask. Listen, Learn) • Sell the Plan • Implement the Plan • Ask, Listen, Learn

31. Advice from Successful Entrepreneurs • Do what gives you energy - have fun! • Anything is possible if you believe you can do it • Make opportunity and results your focus - not money • Make your team the hero - a team builds a business, • an individual makes a living • Integrity and reliability = longevity • Sweat the details that are critical for success • Play for the long term - it is rarely possible to get • rich quick! • Give back

32. Local Examples • William Motto, PhD, Meridian Biosciences • Timothy Schroeder, PhD, Clinical Trial and Consulting Services • Candace Kendle, PhD, Kendle International

33. Working in a Small Business • Advantages • Disadvantages • Finding Opportunities • What to Look For • Local Opportunities • Resources

34. Rewards of Small Business Careers • Multi-faceted, wear multiple hats, variety • Exposure • Satisfaction / ability to see results • Teamwork • Work independently • Apply creativity and problem solving skills • Constantly learning new things • Working with other imaginative people – social advantages • Success depends on being able to think differently • No sacred cows – no baggage – nothing to protect • Empowering, invigorating to know you impact success • Less structure • More flexibility • Responsibility, autonomy, opportunity, initiative • Profit sharing, stock options

35. Risks of Small Business Careers • Company may run lean and mean • May go under, run short of funds, overestimate growth • May trade off pay and benefits for upside potential • Less opportunity for specialization • Differences in professional advancement • Professional development opportunities more limited • Equipment – used, jury rigged, use what does the job • Seek out role models and mentors • Less financially stable?

36. How to Find Opportunities • Career fairs • Job/career web portals • Alumni networks • Portfolios of venture capital firms • State life science association company directories • Networking

37. What to Look For • Founder /CEO Vision and Experience • Business Plan • Board of Directors • Scientific Advisory Board • Financial Projections • Funding Sources • Organizational Structure / Plans to Build Out Team • Employee History • Burn Rate • Website • Press • Analyst Reports

38. Local Opportunities • Regulatory • Clinical Research Planning • Clinical Trials • Bio-manufacturing • Product Development • Research and Testing • Other Professional Consulting

39. Resources #1 www.BioOhio.com Biomedical and pharma career fair May 14, 2009 1:30-6 pm TechSolve http://www.biospace.com/jobs/homepage/ Start-ups www.ScienceCareers.org alternative career section Bioentrepreneur – from benchtop to boardroom http://www.nature.com/bioent/startup/index.html Profiles of small businesses hiring science positions

40. Resources #2 Commercializing Successful Biomedical Technologies: Basic Principles of the Development of Drugs, Diagnostics and Devices, Shreefal S. Mehta, 2008 High Tech Start-Up by John Neisbaum, 2000 Commercializing New Technologies: Getting from Mind to Market Vijay Jolly 1997 Start-Up: An Entrepreneur’s Guide to Launching and Managing a New Business by William J. Stolze, 1999. New Venture Creation – Entrepreneurship for the 21st. Century by Jeffrey Timmons, 2004 Money Hunt – 27 New Rules for Creating and Growing Breakaway Businesses by Miles Spencer, 1999

41. As a catalyst, BIOSTART empowers young life science companies with a proven mix of business and scientific know-how, effective services and cutting edge laboratory facilities • As a community, BIOSTART engages clients and partners in a stimulating, supportive entrepreneurial culture.  This enables vital connections for successful commercialization. 

42. Snapshot • Cincinnati’s Life Science Catalyst and Community • Affiliate of BioOhio, state life science industry association • Operates life science start-up center in Hoxworth Center • Serving pharmaceutical, medical device and diagnostic firms • Independent 501 c 3 not-for-profit • 11 year proven track record • Assisted 125 companies • Raised $180 million • Public/private partnership

43. THANK YOU! • Carol J. Frankenstein • President • BIOSTART • 3130 Highland Ave. • Cincinnati, OH 45219 • cfranken@biostart.org • 513-475-6610 • www.biostart.org • http://dialedin.org