Business Model Canvas

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The business model canvas is a tool allowing to identify all the essential aspects to start a business. This method is very useful and by presenting all the components of the company, the business model canvas asserts itself as a strategic tool. The structure of the document makes it easy to check the coherence of the project and to highlight its added value.

The central bloc presents the value proposition, which means the selling propositions of the startup. In our case the Cerberus solution is an innovative method to functionalize cellulose using a cellulose- binding protein. We would provide advice and support in the design of linkers and on the cellulose fiber functionalizing function.

The four following blocs deal with external aspects, they are mainly linked to the market environment.

1 . Customer segments: Corresponds to the various market groups that would be interested in our Cerberus solution. They could be plant cellulose producers who want to add properties to their fibers. Because cellulose is present in various textile types such as clothing or bandages, we could target both the textile industry and health industry. One of our proof of concept is to confer magnetic properties to cellulose. We also considered adding graphen or carbon nanotubes (CNT) to confer conductivity properties to cellulose. Therefore, we could also target the electronic component industry.

2 . Customer relationship: Because we would provide advice and conception design, our start-up would be a business to business company. We would establish three types of contract:

• Support and advice contracts: We will offer our advice and accompaniment to the clients, and we will charge it per day.
• R&D contract: Providing the design of a linker in terms of the client needs.
• Production contract: Providing the linker produced by a partner.

3. Channels: This corresponds to the wide channels allowing the business to be discovered, deliver the value proposition, provide after-sales service. In our case it would be web sites, scientific publications, prospection, specialized forum or startup forum, and finally our professional network.

4. Revenue stream: Corresponds to the type of revenue generated from each customer segment. It would be product sales, patent sales, or right of exploitation. But it we could also collect money from bank loan of public investment.

Four blocs concern internal aspects.

5. Key partners: Corresponds to the network of partners and key suppliers the business model relies on. On the one hand, we need sub-contractors to scale up production of the linker before selling it to industrials. We would also need a research laboratory and a start-up incubator such as Toulouse White Biotechnology, allowing to continue R&D to improve the products and produce raw materials. On the other hand, we need partners such as an accounting firm, investors a business lawyer firm to protect our ideas and a health agency to prevent all possible risks.

6. Key activity: Corresponds to the most important things an organization needs to do to make its business model work. We identified two mains scientific activities: R&D and production. However, to run a business, we also need various activities such as Human resources, marketing, legal or financial activities.

7. Key resources: The most important assets required to run the organization’s business model. We identified four main aspects that correspond to the four main profiles of the co-founders of Cerberus business. However, the four co-founders have all done scientific studies, so marketing expertise will be missing. To begin the business, we will then either hire someone with a commercial profile or we will collaborate to have another co-founder.

8. Cost structure: This corresponds to the different costs inherent in the economic model. We identified various types such as basic reagent costs (molecular biology reagents, purification kits, culture media, …), equipment costs (PCR machines, electrophoresis apparatus, protein purification systems…) but also salaries and charges, certification audit and taxes. The distribution, the travel expenses to meet new customers by the sales representatives.

Market Analysis

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The SWOT is a strategy tool allowing to put into perspective the internal characteristics of the business organization with the state of the environment in which it evolves. The SWOT makes it possible to anticipate strategic risks, to decide on a commercial positioning, or to refine an economic model.

One the main opportunity is the iGEM exposure in an international level. Indeed, we built a web site where we reported our entire project, from design to the demonstration of our work. Moreover, there is a real development of the financial contributions to help startup especially biotech research¹. There is also a real demand for new fabrics, and textile market is constantly evolving to develop innovation². The ecological aspect is more and more present and will be one of the major aspects that industries would have to consider. Also, one of the advantages of our project is the wide range of market and clients we would target. Therefore, the team has a strong formation in science and will have a large network from their university INSA, UPS and the After iGEM community.

Otherwise, we are not graduated yet and we have a lack of experience. Because we are scientists, we need to hire a marketing profile in order to have a different vision and a business expertise. Moreover, the field of biotechnology requires major investments for R&D and the risk is rather high, therefore companies are generally important laboratories with global influence. After the iGEM competition, which is open source, we will have some problems to effectively protect our work. Also, people have strong suspicions about GMO’s.

References

1. Moedas, C. La biotechnologie industrielle, facteur de développement durable et de croissance verte. Annales des Mines - Réalités industrielles Février 2017, 5–7 (2017).
2. Croissance du marché des textiles techniques: quelques tendances chiffrées. Mode in Textile (2018).

Business Plan

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Before considering starting a business, we need to structure our idea to make it more concrete for ourselves, our future partners and our funders. Writing a business creation project consists of building a business plan. The business plan is a founding document that summarizes the essential element of the project including:

• Market research
• Commercial positioning
• Economic model
• Quantified projections

Perspectives

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The combination of all our efforts has lead us to gain enough confidence to start our entrepreneurship journey. We started from scratch and through the month that we spent working on our project, asking experts and planning our future, we gained solid experience in the domain of Synthetic Biology, applied in the domain of new materials. We can now go one step further, optimizing the production of our Cerberus, investigating new designs and starting to build our start-up.

As our design has been demonstated by several proofs of concept, we can now think of all the possibilities that can emerge from it. As bacterial cellulose is a very promessing material, we are probably at the beginning of the next trend in fashion or next generation materials. No matter what, we are determined to go on and expand our concept to a concrete business.

The frightened student that entered the iGEM Toulouse Team have now evolved into lab scientists, project managers, accountants and molecular modeller. Of course we still would need strong competence to achieve our company but we are all excited about the range of the possibilities that concieving this entrepreneurship approach has offered to us.

As iGEM has taught us, the key of success lies in hard work and strong determination to achieve your dreams. We will never forget this lesson as it has built the scientist we are today.