Life after Pharmacy School

[Vahshi]

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Vahshi, could I ask you for some advice on what I should look out for when going to investors for private capital funding? I just don't want to make mistakes in my first outting.

Thanks!

A few points off the top of my head...

Like anything else, research is what can make or break you. Study the business plan they offer inside out, then have a survey of the business's competition, area and have as much info on them as possible. Alway make them invest their own money too, it increases the incentives for them to succeed.

Try and invest in businesses that you like and understand, it makes a lot of sense, you will enjoy what youre doing and it wont seem as much a chore or work if you like whats being done with your money. Chances of you failing at a business that you dont understand are huge!

Always sign a contract, no matter who they are and what they promise, business and friendship must never mix. A contract and terms set within can make a huge difference down the road. This includes who gets what when you sell or break up, how profits are shared and how its paid out etc. so make sure you get a good lawyer and have it done well, you dont want to save here, get the best money can buy, its well worth it.

Like anything else, start small, and never put all your eggs in one basket (much like how youre suppose to diversify your portfolio). Try and have several LOB's (lines of business) that way you will never get hurt or be at someones merci if things go sour in one sector of the economy etc.

Luckily for us, healthcare is a sector that hardly ever gets hit, since people are bound to get sick anyway, and in case of a recession (chances are high we are heading towards one), when everyone is out of money, guess who spends more? the government! Thats always a plus for us 🙂

Hope this helped.

 

[MSG]

A few points off the top of my head...

Like anything else, research is what can make or break you. Study the business plan they offer inside out, then have a survey of the business's competition, area and have as much info on them as possible. Alway make them invest their own money too, it increases the incentives for them to succeed.

Try and invest in businesses that you like and understand, it makes a lot of sense, you will enjoy what youre doing and it wont seem as much a chore or work if you like whats being done with your money. Chances of you failing at a business that you dont understand are huge!

Always sign a contract, no matter who they are and what they promise, business and friendship must never mix. A contract and terms set within can make a huge difference down the road. This includes who gets what when you sell or break up, how profits are shared and how its paid out etc. so make sure you get a good lawyer and have it done well, you dont want to save here, get the best money can buy, its well worth it.

Like anything else, start small, and never put all your eggs in one basket (much like how youre suppose to diversify your portfolio). Try and have several LOB's (lines of business) that way you will never get hurt or be at someones merci if things go sour in one sector of the economy etc.

Luckily for us, healthcare is a sector that hardly ever gets hit, since people are bound to get sick anyway, and in case of a recession (chances are high we are heading towards one), when everyone is out of money, guess who spends more? the government! Thats always a plus for us 🙂

Hope this helped.

Hey Vashi,

Sort of, but I was thinking more along the lines of looking for angel funding myself. I would like to know, if I wanted to get financing through angels, for my business/product ideas, what should I look out for. I've read that signing deals with angels should be called signing a pact with the devil, cause in the end, most of these guys screw you out of alot of profits. I'm just curious as to your opinion on this, and if I pitch my business plan to an angel, what I should look out for before signing any contracts. The last thing I want is, working hard to make someone else happy. 🙂

 

[Vahshi]

Hey Vashi,

Sort of, but I was thinking more along the lines of looking for angel funding myself. I would like to know, if I wanted to get financing through angels, for my business/product ideas, what should I look out for. I've read that signing deals with angels should be called signing a pact with the devil, cause in the end, most of these guys screw you out of alot of profits. I'm just curious as to your opinion on this, and if I pitch my business plan to an angel, what I should look out for before signing any contracts. The last thing I want is, working hard to make someone else happy. 🙂

Well, now you know what an angel looks for, and how they try to screw you, so just make sure you dont get as screwed. You see angels know how valuable they are to you, and so they will try and get you in every way possible.
For starters, you can look up an angel chapter in the city you live in, they have a list of qualified angels in the vicinity, makes it easier if the angel is local.
As you know, the contract is VERY important, so like the angel, the same advice goes to you, get the best lawyer you can for the money you have and always negotiate as much as you can, rarely will a first offer by an angel be anything good for you.
Always go with qualified/certified angels (Ive posted a link to the SEC page in this thread), versus some rich dude/gal who just wants to invest. It makes it a lot easier and is done in a mature manner.

Hope this helped a little more.

 

[nikegiwa]

Just my two cents....

I think that it would be beneficial to most new PharmD's to apply some of these investment tips to the best of one's ability (as it is unlikely that many new grads will have enough disposable income to do it "full-fledged"). Pharmacy school is expensive, but the starting salary is decent enough that a person could afford to put aside some of their income for investing even very early on. Even if it was only done to acquire supplemental income at best, it still is very wise...and could be a way to help offset the cost of pharmacy school loans if the investments are profitable. Rather than taking offense that the field of pharmacy didn't appeal to him/her, it would be better to filter out that part if it doesn't apply while still taking in any useful information that s/he provided.