Monday, 09 February 2015 / Published in Market Strategies

The Four P’s of Marketing for Medical Devices

If you have ever studied Marketing 101, the concept of the four P’s is one that you will be familiar with. Before successful commercialisation, inventors need to consider how to position their medical device in the market. The 4P’s of marketing is a simple tool for determining how to put the right product in the right place, at the right price, at the right time.

Product

This refers to the medical device itself, which will be on sale to the target market. This includes the quality of the product, design, features, packaging, customer service, branding. Other questions to consider include how is your medical device differentiated from competitors in the market? How and where will the customer use it? Do the features of your device meet their needs?

Place

Place is in regards to distribution, location and methods of getting your medical device to the end consumer. For customers to purchase your device, you need to consider the most appropriate distribution channels. This means finding well-aligned distributors and deciding whether you want to distribute locally and/or internationally.

Price

This is concerning the appropriate price to which your target market must pay in order to purchase your medical device. There are multiple things to consider in choosing your price point. This may include price sensitivity, competitor prices, profit margin and expenses such as delivery, licensing fees, distribution fees, etc.

Promotion

The final step to successful commercialisation is communicating the benefits and value of your medical technology to the target market. Common methods include attending medical trade shows, product launches, training sale representatives to sell your product to health professionals and marketing material such as brochures and pamphlets.

At Inner Maven, we can assist throughout all stages of the marketing mix. We’ve assisted early stage medical device companies to find distributors, developed financial models to determine price points, managed the product development process and had heavy involvement in promoting medical devices, including visiting health professionals and setting up launch events.

Friday, 30 January 2015 / Published in Knowledge

Developing a Business Plan

Planning is always the first step in developing a business. A good business plan will provide direction and foresight as to future barriers that need to be overcome throughout the commercialisation process. A business plan should be a living document which evolves over time as you research your market, your IP position and understand your financial and market entry requirements. Consider the following headings when writing a business plan:

  • Background & Introduction: This should be a short overview of the invention highlighting the innovation and providing a brief introduction to the rest of the business plan
  • Technology overview: This should be a detailed overview of the medical device and its features.
  • Target Milestones: What and when do you want to achieve particular objectives? For a medical device, this may be obtaining TGA approval or securing a certain amount of funding through capital raising
  • Timeline & Deliverables: This can be outlined in a table or GANTT chart
  • SWOT analysis: Perform an analysis of the strengths, weaknesses, opportunities and threats facing your technology
  • Market strategy: This should involve an assessment of the market size, market opportunity, competitive advantages, identified market need, market segmentation and target market applications.
  • Distribution strategy: This section should highlight which jurisdictions that you want to target, and any key partners to which discussions have commenced.
  • Intellectual Property: This section should highlight any patents, design registrations and trademarks associated with the medical device.
  • Manufacturing strategy: Which parties will be involved in manufacturing the medical device and the key stages of the manufacturing process?
  • Regulatory strategy: Any key bodies and key certificates that must be obtained before market release
  • Risk Analysis: Understanding the risks and showing you are aware of them is an advantage to you and to your potential investors
  • Financial Strategy: How much funding do you have and how much more will you need? How do you intend to raise capital?
  • Key personnel and organisational chart: Understand how to best play to the strengths and weaknesses of your team (even if its just you) and know when/where you will need help

At Inner Maven, we can assist to compile and present targeted business and marketing packs.

Friday, 16 January 2015 / Published in Market Strategies

Distribution Strategy

One of the crucial parts of the commercialisation process is implementing a distribution strategy for a new product. The inventor has put in the hard- yards (both in capital and time) and now it’s time to determine how and where the consumer will buy your product through the most appropriate distribution channels. Reaching your target market is crucial for successful market entry and commercialisation. These are the key points to consider in a distribution strategy:

Target Market

Consider the target market, e.g. market size, market opportunity, market segmentation and target market applications. Decide which territories both locally and/or internationally you wish to sell your product.

Exclusivity

Some distributors will request for exclusive rights to distribute your product within a set territory or market segment. Consider the commercial implications of this type of agreement and whether this will impact your product’s ability to reach the market.

Price of the Product

What price will the distributor pay to the manufacturer for the product?

Past experience

Consider the size and relevance of the distributor. A distributor that distributes medical devices in your chosen speciality or has existing products that are compatible with your device will have experience and a proven track record in reaching targeted markets.

Protect your IP

In the search for the perfect distributor, you may have to reveal commercially sensitive information regarding features of your medical device. Ensure confidentially or non-disclosure agreements are signed prior to undertaking these discussions.

Performance Measurement

How will you test, monitor and measure the performance of your chosen distributor? If a distributor is not up to scratch, clauses that allow for termination for cause and convenience should exist in the distribution agreement.

Draft a distribution agreement

These are the agreed upon terms and conditions upon which the distributor agrees to distribute the goods. Inner Maven can provide assistance with this.

At Inner Maven, with our links to industry in Australia and in key markets around the world, we can assist inventors in implementing an effective distribution strategy and to find the right distributors for your medical device or technology.

Tuesday, 06 January 2015 / Published in Funding

Funding Sources for Commercialisation

The Achilles heel to any great invention is obtaining sufficient levels of capital to fund different phases of commercialisation. With medical devices and therapeutics, costs can skyrocket as regulatory fees, legal fees and the most costly of all – running clinical trials, build up. How you finance your business can be the difference between success and failure. These are the most common sources of funding for entrepreneurs:

Personal Funds

This is the most obvious source for inventors, but very few of us have unlimited cash reserves. Using excessive amounts of personal funds can cause financial stress to yourself and your family. Personal funds can quickly dry up and is the least feasible long-term option. Family and friends are another option, but be prepared for tensions in relationships, if the business doesn’t go to plan.

Bank Loans

Another obvious source of financing is obtaining a bank loan. This is easier if your company has been set up as a partnership and borrowing capacity is increased. This is particularly helpful during the startup phase.

Grants

Check your state and federal government for a diverse range of government grants designed to support start-ups and SMEs. For example, in Victoria, grants range from the Accelerating Commercialisation Grant designed to support the development and implementation of new technologies, to manufacturing and travel grants. Grants are also available from many esteemed research organisations, but these may be more difficult to obtain. Inner Maven can guide you through this process and assist in grant writing.

R&D (Research and Development) Tax Incentive

At the federal level, tax incentives can be accessed if your business is conducting activities that fit the ATO’s definition of Research and Development. For eligible activities, companies that have an aggregated turnover of less than $20 million may receive a 45% refundable tax offset. If you are unsure of whether certain activities are eligible, it is best to seek the advice of an R&D tax accountant, Inner Maven can recommend people we trust.

Angel equity

Angel investing is a type of equity financing where an individual investor will invest in your company in return for a percentage of ownership. This can be a good option for inventors looking to offset their risks, but you need to be very certain to attract the right angel investor.

Venture capital

This is another type of equity financing, where venture capital firms provide seed funding to companies at the early stage with a high potential to grow.

Inner Maven has experience with resourcing many different sources of funding to raise capital and can guide you through this process. 

Tuesday, 06 January 2015 / Published in Knowledge

The Value of an Idea

Everyone has ideas, but few people have the tenacity to convert their idea into a commercial product. How many times have you come across a product thinking ‘ Hey… I thought of that idea?’ Commercialisation is a long and complex process, particularly for medical devices and pharmaceuticals that face the additional challenge of dealing with regulatory authorities. Medical devices have the potential to really impact lives and healthcare. But getting to the next step and understanding what to do in order to be successful is not always simple.

Consider the following points in defining the value of your idea:

  • What problem are you solving for customers? What specific issue are you addressing where customers will feel a need to buy your product?
  • Define your value proposition
  • How critical is your technology to the solution of solving this problem?
    Are there better, more affordable alternatives?
  • What is the competitive advantage of your product? What are the
    strengths and weaknesses of your product compared to potential
    competitors?
  • What customer segments are you targeting?
  • How will you successful demonstrate that your technology works? For
    medical devices, it must also be safe and comply with medical regulation.
  • The most important question of all: Do you have the strength and persistence to stick to your idea, take on valuable feedback and experience the ups and downs of commercialisation?

Inventors require access to specialist skills, knowledge and resources to develop and take a product to market. These may include challenges with IP, distributors, funding, negotiating agreements and a whole range of issues requiring specialist expertise. Inner Maven specialises in mentoring and guiding entrepreneurs from that one idea, towards a path of successful commercialisation.

Tuesday, 06 January 2015 / Published in Knowledge

The Qualities of a Successful Entrepreneur

Commercialisation is a long and arduous process. Inventing a medical device or new technology is just the first step. The ultimate goal may be to license your idea to a larger company, sell your company or raise more capital for even more inventions. The journey is a rollercoaster ride, and many inventors fail to persist with commercialisation. It is important to consider whether you are willing to make the sacrifices and to work out how you will balance the long hours with your personal life. These are the top qualities that successful entrepreneurs possess:

  1. Passion

Commitment and dedication is pivotal for an entrepreneur. It might sound like a cliché to love what you do, but having passion for your product and idea will definitely help to sustain an inventor through the highs and lows. When your developing yet another prototype or submitting yet another regulatory submission, inventors with passion think about why they started this business, pushing through and refusing to give up.

  1. Seeking help when you need it

No one is an expert on everything. Successful entrepreneurs know when to seek assistance and are not afraid to ask for help when they need it. This is particularly true for medical inventors, who may be experts in their technical field, but may have limited experience in the finer details, which may involve intellectual property, financing, finding distributors and general business advice. At Inner Maven, we have assisted countless entrepreneurs with the finer details of the commercialisation process.

  1. Strong Leadership Qualities 

A leader has vision and can see the big picture of running a business. They set goals and objectives, whether that is to increase annual sales, develop a product or to solve a particular problem. Not only do they have vision but they also have the drive and skills to see it through. Leaders are known for having a forward-looking approach, rather than dealing with the nitty gritty details of the business.

  1. Willingness to fail

As Henry Ford once said, ‘Failure is simply the opportunity to begin again, this time more intelligently’. Entrepreneurs are risk takers; they take action on their ideas and accept that sometimes not everything goes to plan. They are not reckless, but make calculated decisions on the information that is available. Think of the Richard Bransons of the world, they aren’t sitting on their couches thinking ‘what if’.

  1. Serial Innovators

A head full of ideas drives entrepreneurs. Having one idea is great, but having a constant flow of ideas inspires further product development and the next steps for the business.

  1. Effective Time Management

Running a business is hard work. It can take a toll on your health and personal life if the stress becomes overbearing. Effective time management and a willingness to delegate tasks to others are essential to prevent burnout.

Entrepreneurs may require access to specialist skills, knowledge and resources to develop and take a product to market. These may include challenges with IP, distributors, funding, negotiating agreements and a whole range of issues requiring specialist expertise. Inner Maven specialises in mentoring and guiding entrepreneurs from that one idea, towards a path of successful commercialisation.

Tuesday, 06 January 2015 / Published in Funding

The Role of Venture Capital

The lack of seed funding in early technology development is a key barrier for many medical device inventors during the early stages of commercialization. This equity gap is something that only a few specialist investors have been able to bridge, but leading universities have found developing relationships with venture capitalists invaluable as a source of advice and expertise. Competition is heavy in this field, here are some tips when approaching a Venture Capitalist (VC) firm.

  1. Be Open Minded: The most successful entrepreneurs are open-minded and appreciate honest feedback. If you walk in being open to changes and suggestions, you are more likely to get a win or at least a referral to other investors. The worst thing to do is to walk in with an inflated ego and act defensively to feedback.
  1. Solid Business Plan: So you want $1 million for the development of your medical device? Inventors need to demonstrate what the funds will be specifically used for, the purpose and why. You need to have a strong business and financial plan in place. Venture capitalists will interrogate you with questions, it is important to be prepared to show you are experienced and smart.
  1. Speed: Your pitch should be direct and to the point. Steve Jobs hardly used any words for his presentation slides; he used his passion to communicate the message. Seeking the interest of a Venture Capitalist is like dating, you need to foster the relationship over time or they will lose interest. Provide them with ‘good news’ updates and be highly responsive. After all, there are plenty of fish in the sea.
  1. Choose the right Venture Capitalist Firm: Perform detailed research on the firms you are approaching. Each VC firm is different with different investment ranges, specialties and regions. Some may prefer investing in seed capital, some may prefer later stage developments. Some firms may specialise in particular industries such as medical devices. Look at the existing portfolio companies. Approach the lead investor if you can. By researching and being more selective, you can narrow your VC targets to ensure your medical device or technology is a match to their strategy and goals.
  1. Consider other options: VC funds are one of the hardest to obtain. In parallel, seek other sources of funding such as grants, government funding, banking loans, etc.

At Inner Maven we have assisted many firms in preparing pitches that have led to successful funding. We have also successfully raised millions of dollars in grants and shareholder funds.

Tuesday, 06 January 2015 / Published in Market Strategies

Market and Competitor Intelligence

The commercialisation process is an arduous and complex one. You invest your heart, energy and your finances, funding an invention hoping to be the next popular innovation in medical devices. Before implementing a market entry strategy, however, it is crucial that extensive market research is performed on potential competitors and whether similar products already exist. Armed with this valuable information, it is then possible to position your product more competitively.

To perform a competitor analysis, consider the following points about your own invention:

  • How is your invention better than others?
  • What are the key features and benefits of your technology?
  • Can it be manufactured to a higher standard?
  • Is there a strong market need for your product?

Once you have reflected on your own invention, it is time to perform external research on your competitors. Consider:

  • What prices are your competitors selling their products?
  • What are the advantages and disadvantages of their technology?
  • What territories are they in and how big of a market player are they?
  • Is their IP or patents associated with their technology and how?
  • What stage of development are their products?
  • Do they have a portfolio of products that is aligned with your technology? If so, you could consider a potential license agreement, partnership or even a joint venture to get your product to market.

At Inner Maven, we perform extensive competitor analysis to assist clients in understanding the market and developing an effective market entry strategy.

Tuesday, 23 December 2014 / Published in Knowledge

What is Commercialisation?

Commercialisation is the process of introducing a new technology or idea to market. The path to successful commercialisation can be a complex and challenging one, with medical devices facing the additional challenges of R&D expenses and regulatory hurdles. For instance, a surgeon may have an idea for a new surgical device or a researcher might have developed a new diagnostic.

There are a few fundamental elements that an inventor must consider in taking their product to market:

  • Clarifying the product or service and the problem it will solve for the target markets
  • Protecting IP and finding a patent lawyer
  • Proving the concept
  • Route to market
  • Researching your market in terms of customers, market players and competing technologies.
  • Designing and completing a working prototype
  • Determining your ‘Go-to-market strategy’ – will you form a new company, partnership, joint venture, etc.
  • Gathering a reliable team that can assist in the commercialisation process. This may include a trusted advisor or consultant that can assist you to identify a commercialisation pathway
  • Write a business plan with a commercialisation strategy, this may also include other important strategies such as marketing, distribution, financing.
  • Funding – Will you use personal funds, grants, venture capitalists, external investors, etc.

At Inner Maven, we specialise in technology commercialisation. We work closely with inventors and organisations in developing and implementing the best go-to market strategy for your company or technology. We understand and have worked through the complex issues that face entrepreneurs in the complex path of commercialisation with many success stories.

Friday, 19 December 2014 / Published in Market Strategies

Go To Market Strategies – Partnerships

A partnership is an association of people who carry on a business as partners and receive income jointly (ATO). The partners are all joint owners of a business and equally responsible for decisions made on behalf of the company. In other words, all profits, losses and responsibilities are equally shared, unless specified otherwise in a partnership agreement. One such example for an inventor looking to commercialise an innovative medical device, would be entering a partnership with a medical institution. This would foster medical device innovation and provide access to patients during the early stages of product development. At Inner Maven we can assist inventors to consider the pros and cons of embarking on a partnership.

Pros

  • Ability to raise funds for the commercialisation process is enhanced, as multiple partners are able to contribute personal funds if necessary and borrowing capacity is increased. This is particularly helpful during the startup phase capital requirements are high.
  • Partnerships allow people from different areas of expertise to pool together knowledge and experience to run a mutually beneficial business.
  • Responsibilities and workload are shared amongst partners.

Cons

  •  Profits are shared between the partners and an agreement must be reached as to how funds are distributed fairly and equitably – this can sometime cause friction.
  • Profits are shared between the partners and an agreement must be reached as to how funds are distributed fairly and equitably – this can sometime cause friction.
  • There is unlimited liability. For partnerships with equal responsibility, partners are also equally responsible for the debts and obligations incurred by other partners, during the normal course of business.
  • There is a potential for disputes in decision making, as different partners have different expectations and objectives for the business. Professional advisors or consultants can be valuable in this case to provide independent advice.
  • Decision-making can be slow, as consensus needs to be reached between all partners. You do not have complete control over the business.