Clinical Research Centers are one of the key components of healthcare, medical and pharmaceutical industries. To successfuly release a new medical drug, a treatment, or a device , clinical researches are needed and these researches assure different aspects such as risk factors, side effects or dosage.
Clinical Research Center Business Plan
Clinical Research Centers are one of the key components of healthcare, medical and pharmaceutical industries. To successfuly release a new medical drug, a treatment, or a device , clinical researches are needed and these researches assure different aspects such as risk factors, side effects or dosage.
Since this is a highly profitable industry and since the industry is expanding, there is a huge demand for new treatments, devices and drugs. Opening a clinical research center can provide a bright financial path to an entrepreneur or an investor.
Writing a comprehensive business plan for your clinical research center will allow you to see the process clearly, test your idea and vision, will let you to minimize risks and to maximize the possibility of getting funded or receiving an investment.
How to write a clinical research center business plan?
Executive Summary:
This is the first seen but last written part of any business plan. Executive summary is a brief description of your business from all aspects which are written in your business plan. These include an overall and short summary of: vision, mission, goals, your company, industry, marketing, Pricing, competition, your team, organization and financials. At the very end of the executive summary, write your funding ask. The amount of funding you need and in which form it is needed. (such as a loan or an investment, etc.)
Company overview:
In this section, describe your mission and vision, also include your values. Write when your company is (or will be) established, where it is located, the structure of your company (LLC, Inc, etc.), how many employees you have, how many partners there are. Include information about the ownership of the company. Describe your business and revenue model too. Give details about how many partners there are, how each partner got involved into this business, how many shares each partner has and the amount of each partners’ investment, etc. Also include a funding scheme or summary which states out the startup expenses and assets. Note that assets stand for long term investments such as equipment, machinery, etc. and expenses stand for short term costs such as lease, wages, marketing expenses, etc.
Market analysis:
Before entering into clinical research center business, you need to conduct a through market analysis. A comprehensive market analysis is made by first defining your target customers. First, define your target customers and then, make a customer segmentation. identify various segments of a customers.
Try to find answers to below questions for a customer segmentation:
- What are the demographics of my target audience? (age, gender, location, income, etc.)
- What are their interests and buying habits?
Segments can include specific types of people, demographics, locations, etc.
After defining your target customers and making your customer segmentation, make a research about the industry itself. Include specific and statistics information about clinical research industry.
Some industry statistics are:
- How is the industry?
- How big is it?
- Is it growing, or shrinking?
- What are the average numbers in this industry? (number of businesses, average margin percentage, average break-even points, etc).
- How my competitors are doing business?
You can also include a SWOT analysis at the end of this section.
Services and products:
In this section give all the details of your specific services and products, including the types of clinical trials conducted, the patient population served, and the equipment and facilities needed.
Marketing and sales strategy:
This is a very important section in your clinical research center business plan. This section outlines how your clinical research center will gain clients, generate revenue, and increase brand awareness.
Using the information in section 3 (market analysis), you can create brilliant marketing and sales strategies.
With your budget in place, you can begin to define specific marketing strategies that will address your goals, reach your target audience and build your client base.
Each strategy should be related to a specific goal and should be made up of numerous actions.
Some examples of marketing strategies are:
- Social media advertising,
- Search engine optimization,
- Word of mouth,
- Blogging,
- Print ads, flyers,
- YouTube videos,
- Webinars,
- Networking events,
- Trade unions and chambers
- Radio, Television ads, etc.
Operations and management:
Here, define your day-to-day operations, including Management team, employees, equipment and technology needs, and regulatory compliance.
- Define which partner(s) will be in which role(s)
- Define the main employees
- How many employees will be
- Which equipment will be used, for what and at what cost
- How you will conduct the Daily operations, how does a typical day look like
- Include any payment systems that you will have
- Include partners and suppliers information and how you will conduct relations with them
- Include customer relationships, etc.
Financial plan:
The financial plan starts with sales projections and goes on with the expenses side and ends with profit/loss over a specific period.
In this section, you have to estimate the sales for the next 3-5 years. Include the last 3 years’ financials if you are an already established business.
Start with 1st year’s sales estimations (preferably on a monthly basis). Make realistic estimations and link them with your sales and marketing strategies. After finishing the 1st year, make projections fort he 2nd and 3rd years (on an annual basis).
After sales projections, start to estimate expenses such as salaries, rent, utilities, Management expenses, etc.
At the end of the table, you have a result of net profit/loss for that year.
Also include the details of your funding needs, cash flow, and financial statements.
Appendices:
Include any additional information that supports the business plan, such as legal documents, resumes, and marketing materials.
Sources of funding for clinical research center business:
There are 3 main funding options for a clinical research center: Self funding, investors, banks and/or Lenders.
You can search for investors such as private investors, angel investors or venture capital firms. You can also think of a bank loan, an SBA Loan, a line of credit, etc.
Visit us at : https://peakplans.co/ and Schedule a free of charge consultation if you need a well written, Professional business plan. At Peak Plans, we understand that a solid business plan is the foundation of any successful venture. Contact us today to learn more about our business planning services and how we can help you achieve success.