Advice You - Business

Among the small businesses that I coach, I find that the more effective entrepreneurs recognise that planning and managing success has three parts:

They depend on measuring the past accurately.
They stri

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

ve to follow their plans in the present.

They build flexible plans for the future.

Looking back

You need numbers to count what you have achieved over the last business cycle. Clearly perf

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

Examples of combination products may in

rmance is not numbers alone: their meaning needs to be interpreted before you can decide how to respond to them. Examining your business goals and market conditions will determine the right measures for your business: (some

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

examples in random order)

Return on Investment (RoI) - this ignores the contribution that individual sales make when used too narrowly.
Employee productivity - this is effective when 90% c

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

ost is wages, it is less good when your infrastructure costs predominate.

Customer satisfaction - the ‘golden glow’ is subjective, fickle and fashion-ridden.

"Gross margin = Revenue – Cost

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

Combination pro

" - this can be distorted where the overheads are apportioned inappropriately and some goods are carrying an unfair amount of shared costs.

Employee Turnover - this can be useful when skills are critical

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

o the business.

Market share - this measure is good in stable conditions but the past is a poor guide to the future when your competitors are active.

Inventory Turnover - this is used to

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

control working funds and to reduce dwell times for retail stock.

Burn Rate - this was used by Dot.Coms to estimate how soon all their capital might be spent. It was effective in warning people how soon th

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

y needed to find a new job.

Customer Loyalty (retention, repeat sales) - this measures sales effectiveness.

Cost of Sales (CoS) - this tends to become distorted as manual effort is automat

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

Median credit time - this useful when your profit margin is achieved by living on your creditors’ stock.

Return on Capital Employed (RoCE) - this is similar to RoI but devalues any 'un

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

mployed' capital that you own.

Shaping the future

With care, you can find a couple of measures that suit your company and help you understand how your business works. Then you need to set your goa

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

Following aspects would a

ls: "Where do I want to go and how do I plan to get there?"

Please remember that good plans are regularly re-drafted. If your current results are worse than you expected, face reality, get past your defensiveness an

dd to the challenges in developing combination products:

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

ask: "Why did I get that result and what do I need to change in the future?"

Running in the present

In the present, you need to follow your plans as far as possible. However if you need to re-plan, drop you

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

old ideas and make new assumptions. Remember that all your costs to date are sunk and can rarely be recovered. You can only plan forward from today.

You need to ask yourself: "How well am I sticking to my plan and how

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

closely do current market conditions relate to my planning assumptions?"

Building options for the future

As you build combinations of new and old ideas into your plans, you can estimate where you think you will

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 by the end of your next trading cycle. This is where the value of the plan is clear: if you work out your options and preferences beforehand, when unplanned events impact your business, you will be able to respond quickl

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

Professional from academic institutions, pharmaceutical industries, health care indust

and keep your delivery on course.

You need to ask yourself: "What changes in my assumptions would invalidate my plans and how can I easily create new options in order to get back on track?"

Putting the three pa

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

rts together

Big companies have managers who are dedicated to delivery; smaller companies have owners and entrepreneurs who try to combine technical, production, marketing and sales roles.

Managers in all companies ca

.

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

become locked into the present and to forget to work through all three parts equally: past, present and future. Then they need to step back, stop working in the business and work on the business.

I encourage my cli

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

Companies that provide selfless information through particip

nts to review their plans at least annually, possibly with external and independent help. Then they can to assess their business against the results, tune up their plans, and work for the results they want to achieve

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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After you've walked across the stage, did a little legwork, paid your dues, or received your doctorate, many entering the work force are looking to apply for high paying job position.

It is a great idea to want to start a business, but a person has to analyze and estimate if he has the qualities that are essential for being a successful entrepreneur.

If you wanting to increase your profitability follow the following Top Ten as a guide.

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