Faculty/Staff Startup Guide for technology-based businesses: Making the transition from research to a commercial enterprise.

Main Overview
Business Development
Technology Development
Intellectual Property
ISU Administrative Responsibilities
Startup Guide (PDF)

Business Development

Overview

The primary areas of business development include: Market Assessment, Business Plan Development, Company Financing, Company Formation/Networking, and Physical Space Needs. The ISU Pappajohn Center for Entrepreneurship has significant experience and expertise in guiding ISU researchers through the process of starting a business and can provide you with direct assistance along the way. The process is started by arranging a confidential meeting where you can discuss your research and the related business opportunity. ISU business development staff will then help you understand the process of launching a business. There are no fees involved when meeting with the facilitators.

Facilitators

Cheryl Kamman
Plant Sciences Institute
1077 Roy J. Carver Co-Laboratory
Phone: 515-294-3945
Email: kamman@iastate.edu

Mike Upah
Pappajohn Center for Entrepreneurship
2501 North Loop Drive, Suite 1615
Phone: 515-296-6532
Email: mjupah@iastate.edu

Market Assessment

An important step in creating a business or developing a technology is to gain an understanding of the market and the potential applications for your technology. The focus should be on customer benefits provided by the new technology, such as faster performance, longer life and/or greater accuracy, compared to competitive products. The Pappajohn Center staff will assist with market research to determine market size, acceptance, market entry strategies, partnership opportunities, competitive issues and other market-related information. These activities will provide some assurance that potential buyers do exist and may have some impact on the design of the final product based on market feedback. In addition, market research is a critical component of the business plan.

Business Plan Development

Business plans are documents that provide the logic to convince others that your new company will be successful and how you plan to make that happen. These documents are critical for interacting with the business community, especially to obtain financial resources. More than just descriptions, business plans must validate the probability that events described in the plan are likely to happen. Key components of the business plan include product descriptions, competitive analysis, marketing strategies, and distribution information. Business development staff will take an active role in helping to shape the design and contribute to the content of the business plan.

Company Financing

Financing for startup companies is a challenging and highly competitive process. Targeting the right funding source at the right time is a key part of the business planning process. Sources include the federal and state government, banks and private investors. Each source has its own pros, cons, and limitations of availability depending upon the type of business, scale, risk, collateral, and other important considerations. Business development staff will assess the likelihood of success with each source, and where appropriate, help the company pursue funding options.

Company Formation and Networking

Company formation (the legal creation of the business entity) is typically triggered by an event such as purchasing equipment, selling products, licensing technologies, development agreements, hiring employees, or a number of other events. However, it is typical that much of the business development process occurs before forming a legal business entity. Pappajohn Center staff can help you determine the appropriate time for company formation, the options available, and introduce you to professionals capable of providing high-quality assistance. Incorporation of the business also sets in motion a series of on-going events needed to keep a business up and running. For example, there may be legal issues to address, such as employment agreements with key personnel, patent or other intellectual property issues, and contracts with sub-contractors or strategic partners.

Many facets of business are best handled by people with the appropriate training and experience. The Pappajohn Center can connect you with a network of professionals, such as accountants, lawyers, human resource specialists, and other advisors, who are familiar with the needs of technology start-up companies.

Locating the Company - Wet Lab and Office Space Needs

At some point your business will likely need some office space and/or wet lab space. The business development facilitators are available to assist you in determining the appropriate space needed for your company. There are two primary locations on campus that lease space to faculty start-up companies: the ISU Research Park and Incubator (Iowa State Innovation System) and the Innovations Development Facility. Additional campus locations, including the Center for Crops Utilization Research, have temporary space available for existing companies or collaborative research projects with ISU.

The ISU Research Park, located just south of campus at the intersection of Elwood Drive and Airport Road, offers both office and wet-lab incubator facilities, as well as many opportunities to accommodate business growth. Many different office sizes are available in both the office and wet-lab incubation facilities. Tenants have access to common amenities, including conference rooms, copiers, computers, LCD projectors, dark rooms, ISU facilities, university expertise, and research compliance services.

The Innovations Development Facility is a business incubator for early-stage businesses. The IDF is located in the Roy J. Carver Co-Laboratory on campus in order to facilitate faculty, staff, and student’s transition into business activities. The incubator space includes five 185 sf. laboratories, one 380 sf. laboratory, and three 135 sf. offices. The Co-Laboratory includes the Pioneer Hi-Bred International Genomics Laboratory, a proteomics facility, computer laboratories, environmentally-controlled growth chambers, and some of the top plant science laboratories on campus.

The Center for Crops Utilization Research (CCUR) has established a CCUR Industry Incubator Program. CCUR’s pilot plants provide commercial enterprises a cost-effective way to test new products and processes without interrupting their own full-scale operations. Resident businesses can occupy laboratories for short periods (up to two years) to network with faculty and access expertise and other services. These companies are provided assistance to develop successful, permanent off-site operations.