Advice You - Business

Angel Investors are considered by many to be the best type of investor in your business. Angels are usually successful business owners and entrepreneurs who can also bring you valuable industry experience, executive knowledge, cre

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ative ideas and contacts. They can usually afford to indulge their love or risk and are often seeking new business challenges. To be an angel in the USA, one must be an "accredited investor," which the Securities and Exchange Comm

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ssion defines as someone with a net worth of at least $1 million or an annual salary of at least $200,000. Similar rules exist in other countries.

So how do you attract and investor to your business and are they really what you wa

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

t?

Build a Convincing Case: Angel investors may be willing to take on more risk than most, but they still need to see a well thought out business plan with a proven product that has a recognizable and eager market need back

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

d by a competent management and development team.

Establishing Your Market: Your angel will need to be convinced that your business will meet the market need and that there is a clear “barrier to entry” from competing compa

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ies. They will hardly want to invest in your company only to see your marketing advantage disappear. Typical barriers to entry are: patents, cost of development and proprietary processes.

Your Management Team: Angels they

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ill want to know that their investment is in safe hands. They will want to know the quality and experience of your managers and that they are all committed to your company.

A Great Business Plan: This defines your business

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

, market, potential customers and your goods and services as well as the strength of your management team. It lets your angel have a good idea of your financials and how they will profit from investing in your business. Your busin

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ss plan is not only a great selling tool it also assists you in planning and developing your business, placing it on a firm foundation. Consider using a professional business planning service for this. Not only will they work wit

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

you in producing a great business plan, but a good company will identify your business weaknesses and suggest better ways to do things. By a good business planning company – that is not one that charges less than $500 – you’ll ge

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

a plan and nothing more. Look for a company that charges a rate that allows them to offer you consultancy, advice and assistance as well.

Put Your Money where your Mouth is: If you want to start a business, be prepared to

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

nvest your own money. Entrepreneurs who expect angels to risk money in their venture, should be as confident about their own money. Entrepreneurs who are not willing to assume such a risk are not considered serious by investors and

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

will probably not receive funding.

Find the Right Angel: Angels typically invest in companies that they know something about. Identifying appropriate angels will increase your chances of success. When pitching, ask them wh

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

t they look for in a company, how much they typically invest, what kind of return they expect on their money.

Expect the Angel to be Involved: Entrepreneurs should also be choosy about whom they take money from. Make certai

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

n that you really know your Angel, understand their motivation and expectations for exit strategy and ROI (return on investment). Your angel will probably want a seat on the board and definitely a say in how you spend their money.

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

Be prepared for this – not only do they need to protect their investment but they also will have knowledge and experience that your company will greatly benefit from. Being able to answer angel questions without feeling threatened

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

s crucial to building a professional and mutually profitable relationship. Knowledgeable angels with good connections can jump start a company and keep it thriving. Well-connected angels can even make it easier to get additional ro

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

nds of financing including venture capital.

Professionalism Persistence and Patience: Raising capital is a time-consuming, ego-challenging process. It is not unusual for a startup entrepreneur to spend 50%-70% of his time r

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ising capital from angel investors, a process that can average 3-6 months and in an uncertain market, it take even longer. Efforts to horde stock, inflate valuations or produce unbelievable financials will make the company less at

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ractive to suitors. Let experienced professionals - produce your financials and manage your legal activities.

Lastly entrepreneurs must be determined, passionate about their business and thick skinned. Remember this and good luck

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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These easy techniques, when applied consistently, are guaranteed to get you results in achieving everything from increased business success, to improved sales and personal success. Consistency is key. Be specific, realistic, and practice these strategies daily. Ideal for salespeople, managers, executives, business owners, entrepreneurs, team leaders and supervisors.

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Tired of getting up during the night to give Buckwheat a drink, Burns created the Drinkwell after observing a decorative desktop water fountain that seemed to offer a solution for faucet-drinking cats. The initial investment was less than $3,000 for a vacuum-formed mold, some initial inventory and an ad in Cat Fancy magazine. The sales really took off, with just over $3 million a year.

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Advice You - Angel Investors – How to Interest Them in Your Business

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