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Stage – ID5: Distribute the Product

This stage includes not only manufacture, quality control, packaging and distribution throughout the product's lifecycle, but also legal, financial, business development, training and other support activities.

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Task Overview

If you have made a successful product introduction and demonstrated an initial market position through sales (and thus revenue), the next key step is securing second stage venture capital funding.

What you need to do:

  • Firstly, gauge your investor confidence:
    • Have you increased your investors' confidence in the business?
    • Will potential new investors be secure in the knowledge that your product, if not entirely risk-free, is commercially viable?
    • Will investors want to sell their shareholding? Oftentimes they work on short timescales to see their return.
  • Clearly define the grounds for new funding:
    • Expanding the manufacturing capacity to meet growing demand and to provide cash to finance such expansion.
    • Securing patents
    • Post-market clinical testing costs
    • Embarking on procedures to meet overseas regulatory requirements (eg FDA approval). This can be expensive, but now that the product is on the market, the overseas business opportunity is much more likely to justify a return on investment. Also, strategic business partners might offer to buy the option to market the product in certain territories.