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Advice Pool - Lack Of Business Isn't Always The Problem
When you're just starting out in business, it's a safe bet that you need more clients. But what if you have been up and running for a while, and you're still not making as much money as you would like? You may be in
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
the habit of thinking that attracting new clients is the answer, but this isn't always the case.
There are many reasons why a professional services business might not be earning enough, but they typically fall into f
There are many reasons why a professional services business might not be earning enough, but they typically fall into f
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
our categories: not enough revenue, not enough profit, not enough customers, or not enough time.
Start by looking at your gross revenue -- the total amount your customers pay you over the course of a year. How does i
Start by looking at your gross revenue -- the total amount your customers pay you over the course of a year. How does i
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 compare to others in the same line of business? Ask some trusted colleagues or check with your professional association for any statistics they may have.
What percentage of your gross revenue remains after you cove
What percentage of your gross revenue remains after you cove
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
r cost of sales? This is your gross profit. As a service business, you may have no cost of sales. If, however, you are selling books, tapes or software, or accepting credit cards, your inventory cost and credit card f
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
es need to be deducted from your earnings before making other calculations.
Now deduct your business expenses from your gross profit. What percentage of gross profit remains? Is this a typical percentage for your ind
Now deduct your business expenses from your gross profit. What percentage of gross profit remains? Is this a typical percentage for your ind
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
ustry? If you can't gather comparable data from colleagues, your professional association, or a published source like Dun & Bradstreet's "Industry Norms & Key Business Ratios," compare your profit margin (net income d
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
ivided by gross profit) to a desired goal of 70%.
LOW REVENUE - If your gross revenue seems low for your industry, your profit margin is at least 70%, and you have about as many customers as you can comfortably serve
LOW REVENUE - If your gross revenue seems low for your industry, your profit margin is at least 70%, and you have about as many customers as you can comfortably serve
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
, concentrate on increasing your revenue, rather than trying to improve your profit margin or bring in new customers.
Consider raising your rates, which may mean finding a market that is willing to pay more. Look for
Consider raising your rates, which may mean finding a market that is willing to pay more. Look for
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
customers who will give you higher dollar volume contracts or place larger orders. Think about hiring more administrative help, which would free up more of your time to charge out at professional rates. You should al
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
o work to increase your passive income by selling products created by you or others, reselling some of your existing work, or licensing a process you have developed.
LOW PROFITS - If you are spending more than 30% of
LOW PROFITS - If you are spending more than 30% of
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
your gross profit on overhead and marketing, work on improving your profits. Look for ways to cut expenses by reducing your overhead, or focusing on your most profitable line of business.
In addition, if more than 1
In addition, if more than 1
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
5% of your gross profit is spent on marketing alone (assuming you are not a start-up business), consider cutting back on advertising or mailings, and using more referral-based marketing strategies. Seek out customers
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
who will give you repeat business or long-term contracts.
TOO FEW CUSTOMERS - Low revenue combined with not enough billable work to keep you busy means you really don't have enough customers. If you don't have a mark
TOO FEW CUSTOMERS - Low revenue combined with not enough billable work to keep you busy means you really don't have enough customers. If you don't have a mark
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
eting plan, it's time to create one. Focus your plan on the most attractive service you have to offer and the most lucrative market, rather than diffusing your energy by marketing several different service lines to mo
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
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
e than one type of customer.
If you already have a marketing plan, but it's not paying off, you may need to break into a new market, look for a more appealing way to package your services, or form an alliance with so
If you already have a marketing plan, but it's not paying off, you may need to break into a new market, look for a more appealing way to package your services, or form an alliance with so
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
meone who can send a steady stream of business your way.
TOO LITTLE TIME - It's possible that you simply don't have enough time to earn more money. When you are consistently spending over 25 hours per week serving cl
TOO LITTLE TIME - It's possible that you simply don't have enough time to earn more money. When you are consistently spending over 25 hours per week serving cl
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ients, with more potential customers in the pipeline than you can realistically serve, it's time to hire an employee or bring in a junior partner. If you're not ready to take that step, think about subcontracting work
.
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
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
to a trusted associate, and keeping a percentage of their billings.
In reading the suggestions above, you may have discovered that you don't have enough information to diagnose your earnings problem. There are six s
In reading the suggestions above, you may have discovered that you don't have enough information to diagnose your earnings problem. There are six s
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
tatistics every service business owner should know: revenue, expenses, profit margin, number of customers, average sale amount, and billable time. If you don't have the answers, start tracking these measurements today
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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