Molecules to Market finale for FCP201 Students

Last week, second year Faculty of Science students presented their business posters for assessment in the University's (relatively) newly refurbished Council Room. The sun was shining, the room was buzzing and we were fortunate to have Dr. Geoff Wainwright from 2Bio (that's their "impact science" logo left), along to provide a professional level of interrogation! As in previous years, student teams, or as we call them committees, will have spent a semester developing an initial idea into a robust business plan. Some ideas fall by the wayside and some become tweaked and re-worked until the idea seems reasonable enough to stand up and defend. Readers of my earlier posts will be aware of the range of assessment instruments used when delivering Mols2Mkt to students at different levels. The most advance assessments come in multiple parts and include submission of detailed business plans, marketing and promotion materials and videos, but for level two undergraduates, with a"catchment" that may include undergraduates from any of the seven departments from the University of Sheffield's Science Faculty, the poster session works really well. 

This year, 11 committees formed the same number of companies and the biggest difference from previous years has been the development of Science Education ventures. Two committees chose quite different approaches to promoting engagement in Science in schools. The other companies included anti-aging solutions (both Pharmaceutical and Personal Care related), companies in the AMR domain for detection of microbes versus viruses and the development of novel anti-microbials....not to mention an interesting take on the opportunity to provide healthy burgers from stem cell advances. (I shall update the post, with a gallery of this year's posters, now that the assessment is over). 

This year's winners were the educational outreach organisation called Science Ignite, whose innovative ideas and enthusiastic commitment to taking experimental Science (from Physics to Biology) into schools was palpable. As a reward, the team will be invited to a large school on Merseyside to trial their ideas. I am hoping we can keep this momentum going into their third year as well. The more young science undergraduates that engage in education, the better! Those teams who missed out on the Winners' Enclosure, will be invited to a session delivered by 2Bio after the summer vacation, providing a deeper insight into the world of spin outs and IP in today's economic and technological climate, thanks to our judge Dr. Geoff Wainwright. 

What were the judges looking for on the day? As you can tell from the brief account of the company ideas, a diversity of ideas prevailed. This is usually the case. So the judges are not usually that concerned about the area of Science, but rather about the team (an impression that has to be conveyed in around 20 minutes), the appeal of the poster, the enthusiasm of the presenters and the way they demonstrate their engagement with the concept. In fact, I have never seen any evidence that business ideas and start ups are advantaged by age and experience. In fact quite the opposite, some 15 year old school students are capable of formulating an idea and developing a convincing business case that is as good as many that comes from experienced academics or inventors.

It was clear on the day that most students engaged with the course, although most only ever means at best 85%. In view of the fact that the course relies heavily on the development of a team spirit, the emergence of a team leader and a general interest in Science: students who prefer the conventional lecture format to learning, are generally the 15% or so. It is important to recognise of course that this teaching format doesn't work for everyone, but I do take the view that we must expose our undergraduates (and school students) to these situations, for at least some of their time before they leave University or School. After all, at Sheffield, in a department like my own, where the major part of our undergraduate coursework is delivered in the form of laboratory classes and projects; a few student led modules can only help with their preparation for life after exams!

Ever since I first introduced this method into teaching into the Department nearly ten years ago, I have become increasingly convinced by its value. Perhaps the most important consequence is that this approach promotes an holistic approach to course material.Hopefully creating a new wave of polymaths! It amazes me how many students choose a scientific basis of their business that is outside of the curriculum material and yet in doing so, can draw on core material in a way that they rarely do "these days" (or so it seems to me and my network of colleagues). Somehow, this approach seems to capture the imagination of the majority of the students and this is followed by a strong motivation to learn in a way that complements our more traditional teaching methods.

The course is delivered by a small team that includes MBB staff, Emma and Liz and a small number of "guests" who provide enterprise related master-classes, which we tend to vary year by year in order to keep the course as vibrant as possible. So thanks to all who have played a role, but mostly to everyone who created such impressive ideas and made this year's Molecules to Market another memorable experience.

01-04-0-2016: Calendar Reminder: "Buy her flowers"

Today's preliminary business-pitch session with FCP201 students was memorable. The title refers to a certain student's suggestion for Band 9 (a healthcare-lifestyle, mobile app company) to add value to their main product: a wearable, hormonal sensor for women having difficulties conceiving. It was one of those "you had to be there moments", but his idea was to provide a "his" (as a complement to "hers") Band, which would monitor his partner's hormone levels, wirelessly and, when the good new arrives, prompt him to acknowledge the joyful response, in the time honoured way, by sending flowers! Who says romance is dead, in the digital app world of undergraduates?This year's companies included an outreach business, targeting primary school children and their teachers, with inspirational Science projects (Science Ignites) and a related company producing "glow-in-the-dark" lilies, as a vehicle for funding an educational activity to persuade school children of the value of GMOs (Glowses). We had a couple of references to the mythology: Hebe, the Greek Goddess of Youth, and the Macrobian tribe, who legend has it, ejoyed unusual longevity. Both companies (FDDC and Macrobian), were promoting their products that would distract the grim reaper, and provide an improved quality of life to boot.By now the audience were thoroughly engaged and the Q&A session was difficult to squeeze in as the teams were quizzed thoroughly, from both technical and business perspectives. It was relaxed and informal, but at the same time the enthusiasm and professionalism was there for all to see. Thanks to all the teams for a fascinating insight into how you respond to a not-insignificant-challenge for the first time! We (Emma and Liz and me) all acknowledged the engagement and we are in for a treat when the final pitches are firmed up after the Easter Vacation. I will post some more specific feedback in the next post, which will hopefully help you all improve for the final pitch. 

Taking a step back

I assume all FCP201 teams are now fine tuning their pitches for Wednesday! I thought it might be helpful to step back from the intensity of the discussions and the last minute planning, by looking at the diversity of businesses. From the simple corner shop and newsagent, to the complex multinational oil companies: there are some common elements and of course there are also some major differences. I wonder if the only difference between such companies is the scale of initial investment, at start-up phase? Let's see.

When I think of big business, I think of manufacturing industries such as oil, mining, motor cars; and for service industries I think of airlines, train companies, McDonalds. In terms of finance, I immediately think of the big banks and Lloyds of London. Of course the majority of businesses in the UK are SMEs (small to medium sized enterprises, although this acronym is less used today, it defines a company with around 50-100 staff). How do I know? Well Companies House provides access to individual company information, including date of incorporation, broad financial position and who's who at the top. A company check online can also tell you a little more, such as cash in the bank and the history of the Directors etc. All of this information is available online, free of charge. The first thing to note is that as of 2010 (the last survey from Companies House), there were 4.5m companies registered in the UK, with an average of just over 5 employees per company. This immediately tells you something about the Business culture in the UK. The population is (approximately) 65m, with 22.5m employed by SMEs and a relatively small number of "big players". In fact the NHS is Europe's biggest single employer, and in any city, the Education Institutions come a close second. The figures, however imply that most companies are, what are often called, micro-SMEs. Some might employ one other person. Take a University Biotech spin-out. I looked up Absynth Biologics via Company Check. It looks like they have around 10 employees and they have a base at the former Astra Zeneca Science Park south west of Manchester. Their business is predicated on IP in the vaccine/antimicrobial area. I think the data give an indication of the financial status of a company of this kind. You should take a look, maybe search for companies you know! It can be very enlightening!

Let's look at the investment issue. As I said at the beginning, companies come in all shapes and sizes, but let's think about one of the most critical, and largely traditional, industries that has been around since early civilisation: mining. Mining has been fueled by the search for precious metals (which is of course somewhat arbitrary, historically), the extraction of minerals for manufacturing, during the iron age, the bronze age and, right up to date, the quest for components of mobile computing devices. The current top 5 precious metals are: number 1 Rhodium ($40 000/kg), Platinum ($39K), Gold ($38K), Palladium ($26K), Osmium ($12K), with Silver way down the pack at $450: and coal sells at a mere $0.05/kg! However, just stop for a minute and think of what it would take to set up a mining business. A quick brainstorm with your group would yield the following (not in any particular order, and certainly not a comprehensive list): 

• Land acquisition (purchase, lease, steal!)
• Capital equipment (diggers, trucks and rails, distribution via train, road, waterways)
• Work force (from manual labour through surveyors, engineers, mineralogists, sales and marketing)
• Security (depending on location, this can be a major expense)

Not, I imagine an industry to get into lightly. I couldn't begin to imagine the investment costs of a mining start-up and the length of time before it becomes a break even business. And then how sustainable is it? I suppose coal mining has been around a few hundred years: it is simply that the focus on renewables makes us view coal mining as a "dinosaur" of an industry. I suppose that's inevitable for a fossil fuel business? (Sorry couldn't resist). The same logic would apply to any start-up of this kind; oil gas etc. 

 

I mentioned "service" industries, such as McDonalds and that started as a single restaurant, specialising in speedy service. The global organisation we know today grew out of a fairly hostile takeover of the original family company, which illustrates one of the most common ways a company expands. An original, innovative idea becomes an ideal business opportunity for an aggressive and ambitious investor. The rest is history! I think the key point here is that McDonalds was a very attractive prospect for investment, and although I used the words aggressive and hostile, this is possibly a retrospective view. I expect the McDonald's brothers were reasonably compensated for their small group of outlets, and the new owners have been responsible for the global success of the company. (I believe the company is facing some significant financial challenges recently).

 

So, are there any successful small scale businesses? Of course there are: it is largely a question of aspiration. I know for example, that many microbreweries enjoy not only commercial popularity, but make a healthy profit. The expectations and aspirations of the founders of a business are another major factor in labelling a business successful or otherwise. I believe the motivation of the company founder(s) at the outset, often determines whether a business is branded successful, or not. It might be worth considering what you want your company and you as a founder, to achieve, both personally and finacially!

Business Plans: Common sense and pragmatism meet Blue Skies

Today's session is being delivered by the University of Sheffield's Enterprise Unit (USE). Their focus is in supporting the development of business skills amongst students, most of whom engage with USE voluntarily. Here, I want to introduce you to the concept of a Business Plan, which I hope to persuade you is something to be embraced rather than feared! A good Business Plan is critical to pursuing an idea, whether it is "near market" or Blue Skies.

Let's look at definitions first. The noun "business" is associated with the commercialisation of an activity; usually making a living out of the work you do (think successful business). Hence, "s/she is in the newspaper business", or "the music business": selling newspapers or records. I would take a slightly different view on the word, I think it describes the application and integration of an idea or a group of ideas that lead to some form of output that can provide financial support to the individuals associated with the business. It is perhaps not surprising then that everyone wants you to provide a Business Plan, to persuade them to support you either in research, in your sporting life, or in raising funds for a good cause etc. A Business Plan is simply a document that links an idea to a financial outcome that follows a series of milestones. The whole document is structured around a budget, which is divided between investment to cover the  costs of premises, salaries, consumables, administration etc., together with some income forecasts. This forecasted balance sheet, which provides an honest assessment of the amount of investment required before the first revenue is earned, and the prospects for the following few years, will often be the key factor in determining the likelihood of attracting investment. The key to writing a successful Business Plan is critical self-assessment. Ask yourself the question: would you invest everything in your bank account in your own Business? If there is any doubt: it isn't a good plan!

The key elements of any business plan that you should consider include (not in any particular order):

• The Team

• The Idea

• The Infrastructure

• The Market

• The Competition

• The Budget

• The Timetable to Profitability  

• Return on Investment

• Future Prospects (Growth or Exit)

During the session tomorrow, make sure you are comfortable with all of the above issues and if not, ask strategic questions.