Determining your business/market

It sounds simple, but focusing your idea can be a challenge. A basic rule is to keep things simple, as a common pitfall is to try to pursue too many ideas at once. Conducting some market research and running your idea by some trusted advisors is helpful. Deciding on an initial market application and determining the size of the market for that application is critical in the early stages of business development. Engaging with UW TechTransfer early in the process is strongly encouraged to obtain guidance and resources.

Is my innovation at the right stage? More often than not, university research is at such an early stage that further development is necessary to explore the commercial potential of the innovation. Funding resources exist to help researchers create prototypes of their innovation and conduct testing in order to attract potential licensees wishing to commercialize the innovation.         -Technology Gap Innovation Fund (TGIF)         -Washington Research Foundation (WRF)         -Small Business Innovation Research Program (SBIR)

Writing a business plan

Your business plan will serve many purposes and should be well developed, as potential business partners, employees, and investors will use the business plan to better understand your business and make important decisions such as financing based on the information outlined. And be prepared for your business plan to change throughout the startup process.

There are many resources available, from books to consultants, to help you prepare an effective business plan. Your business plan should clearly describe your business, outline the market potential and demonstrate how your business is going to become profitable.

• Small Business Administration website
• Your UW TechTransfer contact can also suggest resources and provide guidance and feedback as appropriate.

Understanding the legal issues

There are a number of legal issues that need to be considered when starting a company. Should you be a corporation or a partnership? What will your ownership structure look like? Will you offer stock to your employees? To understand your options and the downstream impact of these legal decisions, it is important to engage early on with legal professionals who have experience working with startups.

Because UW TechTransfer works with legal professionals on a daily basis, we can offer recommendations when you are at this stage of forming your business.

Forming the business team

Putting the right people together to run your business is as important as putting an effective research team together. You will potentially work with these people on a daily basis or periodically, depending on your involvement in the company. If you have determined your most effective role in the company is not as the CEO, it is critical that you find someone who has the know-how and experience to lead the company. This person will need to understand how to execute the milestones laid out in the business plan, be able to recognize potential problems, and make adjustments as needed.

Understanding your role in the startup and learning how to find and hire the right people is the first step. UW TechTransfer professionals and networking through professional organizations are good resources to help you form your team. The process of forming a team can take some time to find the right people who will develop the optimum commercial potential of your innovation.

Finding funding sources

When it comes to financing your business, there is no one-size-fits-all approach. Every startup is unique, and so is the path to finding funding. Your comfort level with the various choices and what works best for your business are important factors in seeking funding. There are pros and cons for each but with the proper research and guidance you and your management team should be able to decide what will work best for your company. Your UW TechTransfer contact will help you determine what funding sources are appropriate for your company to pursue. We have listed Funding Sources on our Resource page.