
Blog | 3/11/2025
The Hard Truth About Scaling a Life Science Tools Company
By Daniela Hristova-Neeley, PhD
Every company is looking to grow and many executives feel the pressure to scale quickly - expanding sales teams, entering new markets, and launching new products. However, sustainable growth requires strategic expansion. Without the right foundation, even the most promising life science tools (LST) companies can plateau.
Most LST companies don’t struggle because their science isn’t strong enough. Challenges arise when growth efforts are mismanaged—scaling too soon or in the wrong way.
We have worked with executives of small and mid-size LST companies to help them scale profitably while avoiding common pitfalls. Here are some of the strategic approaches that drive success—and the missteps that can create obstacles along the way.
Which of these growth challenges is your company facing?
1. Establish Strong Product-Market Fit Before Scaling
Expanding too early can quickly drain resources and stall momentum.
The pressure to grow is always present, but increasing sales efforts before establishing repeatable demand can create long-term challenges.
- Sales cycles vary widely - some deals close in two months, while others take 18.
- Customers express enthusiasm but struggle with adoption after purchase.
- Growth depends on founder relationships rather than a scalable sales process.
- Validate demand through key opinion leaders (KOLs) and non-KOLs before investing in large-scale expansion.
- Track retention and usage data. If customers aren’t actively using the product, increasing sales efforts may amplify churn.
- Run small pilots before significantly increasing go-to-market (GTM) investment.
Scaling prematurely won’t solve underlying challenges - it often magnifies them.
2. Leverage Scientific Expertise as a Competitive Advantage
In life sciences, credibility is essential.
For many LST companies, the greatest advantage isn’t price, scale, or even technology - it’s scientific expertise.
- Sales teams lack deep scientific knowledge, making it harder to earn customer trust.
- Limited technical support leads to challenges in implementation.
- Thought leadership is underdeveloped, missing an opportunity to shape the market.
- Hire technical sales reps and application scientists who can serve as trusted advisors.
- Use technical content to engage and educate customers.
- osition the company as a go-to resource, not just a vendor. Scientists often seek partners rather than traditional salespeople.
A strong scientific reputation is a key driver of growth and differentiation.
3. Optimize the Go-to-Market (GTM) Strategy for Scalability
A company’s growth potential is closely tied to the scalability of its sales strategy.
- The founding team continues to handle most major deals.
- Sales processes lack consistency, with each deal structured differently.
- Customer data is underutilized in sales and outreach efforts.
- Transition from founder-led sales to a structured, repeatable process.
- Automate lead qualification and customer onboarding. Some companies, for example, use real-time demand analysis to optimize sales funnels.
- Leverage digital channels to expand efficiently. In some cases, self-service trials or digital marketing can accelerate adoption.
A repeatable and scalable GTM strategy is essential for sustained growth.
4. Align Strategy with Customer Segments
Not all customers have the same needs - tailoring strategy to key segments is essential.
- Attempting to serve too broad of an audience instead of focusing on high-value segments.
- Treating all customers the same, despite differences in academia, biotech startups, and large pharma.
- Failing to adjust messaging, pricing, and support based on customer segment.
- Define an ideal customer profile (ICP) and prioritize the highest-value segments.
- Customize sales and marketing strategies for academia, biotech startups, and pharma separately.
- •Align product development with customer needs—some segments value affordability, while others prioritize premium services.
A clear segmentation strategy ensures resources are focused where they have the most impact.
5. Implement a Flexible Pricing and Business Model
Rigid pricing structures can limit adoption and growth.
High upfront costs can be a barrier for smaller biotech firms and academic institutions.
- Lack of pricing flexibility across different customer segments.
- Overreliance on one-time instrument sales rather than recurring revenue.
- Use data-driven pricing models tailored to different segments. Pricing strategies for academia, for example, may differ from those for commercial biotech.
- Introduce subscription-based or pay-as-you-go models.
- Bundle consumables, reagents, and software with instruments to increase customer lifetime value (LTV).
A flexible approach to pricing can improve adoption and long-term revenue growth.
6. Expand Through Strategic Partnerships Instead of Overinvesting Internally
External partnerships can accelerate growth more efficiently than building everything in-house.
- License technology to accelerate commercialization.
- Partner with distributors to expand reach while minimizing fixed costs.
- Use contract manufacturing before investing in infrastructure.
Strategic partnerships allow companies to scale faster while maintaining financial flexibility.
7. Balance R&D Investment with Commercial Execution
Strong science alone does not guarantee success—commercialization is just as important.
- Align R&D funding with clear commercialization milestones.
- Encourage collaboration between sales, marketing, and R&D teams early in the process.
- Validate new products with real-world customer feedback before full-scale launch.
Successful companies integrate R&D with market needs to maximize impact.
8. Expand Global Market Reach Without Overextending
International expansion can be a key growth driver - but only if managed carefully.
- A distributor-first model can be a cost-effective entry strategy, but selecting the right partners is crucial.
- Regulatory readiness must be addressed before entering new markets.
Expanding strategically ensures growth without unnecessary risk.
9. Expand Beyond Core Products Through Adjacency Expansion
Diversification can prevent stagnation and unlock new revenue streams.
- Bundling instruments with reagents and software.
- Targeting new market segments with the same core technology.
- Leveraging existing customer relationships for cross-sell opportunities.
Companies that remain reliant on a single product may eventually hit a growth ceiling. Expanding thoughtfully into adjacent areas can create new opportunities for long-term success.
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Growth in the LST Industry Requires Strategy and Execution
Scaling a life science tools company is challenging, but a well-defined strategy can significantly improve the chances of sustained success. The most successful companies take a structured, data-driven approach to growth, ensuring they allocate resources effectively and avoid common pitfalls.
If these challenges resonate with your company, we’ll be happy to discuss how leading LST companies navigate them successfully. Feel free to reach out to explore strategies tailored to your specific goals.